Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:11/17/2005
ATTENDANCE
Time:09:11 AM to 12:32 PM
Balmer
X
Borodkin
X
Place:HCR 0107
Butcher
X
Carroll M.
X
This Meeting was called to order by
Coleman
X
Representative Marshall
Knoedler
E*
Liston
X
This Report was prepared by
Massey
X
Susan Liddle
McCluskey
X
Paccione
X
White
A
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Cost-Benefit Analysis by State Agencies
Office of Consumer Counsel
Utility Consumers Board
Division of Insurance Certificates of Authority
Motorist Insurance Database
Board of Architects		Draft Bill Recommended for Introduction
Draft Bill Recommended for Introduction
Draft Bill Recommended for Introduction
Draft Bill Recommended for Introduction
Sunset Review Laid Over Until Session
Sunset Review Laid Over Until Session

09:13 AM -- Introduction to the Sunset Review Process

Representative Marshall introduced the process that would occur today. She indicated that due to a family emergency, she would likely not be here all day, rather Representative Cerbo would serve as chair when she leaves.


09:15 AM

Bruce Harrelson, Director, Office of Policy, Research and Regulatory Reform, Department of Regulatory Agencies, distributed a memo that provides an overview of the sunset review process (Attachment A).




09:16 AM -- Continuing the Cost-Benefit Analysis of Proposed Rules by State Agencies

 Tambor Williams, Executive Director, Department of Regulatory Agencies, came to the table and discussed the provisions governing the preparation of a cost-benefit analysis by state agencies under the State Administrative Procedure Act. A copy of the sunset review entitled "Provisions Governing the Preparation of a Cost-Benefit Analysis by State Agencies under the State Administrative Procedure Act" is available on-line at: http://www.dora.state.co.us/opr/archive/2005RuleReview.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment B.


09:22 AM

Jim Henderson, Region VIII Advocate, U.S. Small Business Administration, distributed two handouts (Attachments C and D), the first was Mr. Henderson's remarks, and the second was a memo from the President of the Colorado Restaurant Association. Mr. Henderson spoke in support of continuing the cost benefit analysis process. He responded to questions from the committee.


09:25 AM

Tony Gagliardi, National Federation of Independent Business (NFIB), stated that his membership has a history of supporting cost benefit analysis. He responded to questions.


09:28 AM

Donnah Moody, Colorado Association of Commerce and Industry, spoke in support of continuing the cost-benefit analysis process and distributed a letter from Chuck Berry, President of CACI (Attachment E).


09:30 AM

Representative Marshall stated that a motion was in order at this point. She reminded the committee that there are two recommendations being proposed in the report and that if there are no objections to either of these recommendations, then they would both be included in the draft bill. Representative Coleman asked about what the notification to businesses looks like, and Bruce Harrelson came back to the table to respond. He responded to additional questions, including whether any regulations had been rejected due to the cost benefit analysis. Mr. Harrelson indicated that some regulations had been denied over time due to this process, he gave the examples of rules in the Division of Racing events and related to respiratory therapy, but indicted that detail about this was discussed in the case studies in the sunset report.



09:38 AM

Representative Coleman expressed concern about the term "plain language" on page 2 of the draft bill. The committee discussed this.
BILL:Introduction to Sunset Review Process
TIME: 09:40:47 AM
MOVED:Borodkin
MOTION:moved to recommend that the bill concerning the continuation of the cost-benefit analysis of proposed rules be drafted and introduced in the 2006 session. The motion passed on an 11-1 roll call vote. The Chair indicated that Representative Borodkin will be the prime House sponsor of the bill. Co-sponsors are: Representatives Butcher, Carroll, Knoedler, Liston, Massey and Paccione.
SECONDED:Massey
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
No
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Absent
Cerbo
Yes
Marshall
Yes
Final YES: 11 NO: 1 EXC: 0 ABS: 1 FINAL ACTION: PASS


09:43 AM -- Sunset Review of the Office of Consumer Counsel

Mr. Harrelson described the role and responsibility of the Office of Consumer Counsel (OCC). A copy of the sunset review entitled "Office of Consumer Counsel and Utility Consumers Board" is available on-line at: http://www.dora.state.co.us/opr/archive/2005OCCandUCB.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment F.



09:47 AM

Rex Wilmouth, Colorado Public Interest Research Group (CoPIRG), whose primary purpose is consumer protection, stated his support for continuing the OCC. He reminded the committee of the types of cases that had come before the OCC in the past and how important the role of this office is. Representative Coleman questioned how effective the consumer's voice still is, and asked about the increasing utility rates. Mr. Wilmouth responded.
BILL:Office of Consumer Counsel
TIME: 09:55:27 AM
MOVED:Coleman
MOTION:moved to recommend that the bill continuing the Office of Consumer Counsel until July 1, 2015 be drafted and introduced in the 2006 session. The motion passed on an 12-0 roll call vote. The Chair indicated that Representative Carroll will be the prime House sponsor of the bill. Co-sponsors are: Representatives Borodkin, Butcher, Cerbo, Coleman, McCluskey and Paccione.
SECONDED:Carroll M.
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Absent
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: PASS



09:57 AM -- Sunset Review of the Utility Consumers Board

Mr. Harrelson described the role of the board, and stated that the sunset review recommends continuing the board until July 1, 2015. A copy of the sunset review entitled "Office of Consumer Counsel and Utility Consumers Board" is available on-line at: http://www.dora.state.co.us/opr/archive/2005OCCandUCB.pdf, and a copy of the draft bill is appended as Attachment G.
BILL:Utility Consumers Board
TIME: 09:59:27 AM
MOVED:Coleman
MOTION:moved to recommend that the bill continuing the Utility Consumers Board until July 1, 2015 be drafted and introduced in the 2006 session. The motion passed on a 9-0 roll call vote. The Chair indicated that Representative Paccione will be the prime House sponsor of the bill. Co-sponsors are: Representatives Borodkin, Butcher, Carroll, Cerbo, Coleman, Liston and Marshall.
SECONDED:Paccione
VOTE
Balmer
Excused
Borodkin
Yes
Butcher
Yes
Carroll M.
Excused
Coleman
Yes
Knoedler
Excused
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Absent
Cerbo
Yes
Marshall
Yes
Final YES: 9 NO: 0 EXC: 3 ABS: 1 FINAL ACTION: PASS


10:01 AM -- Sunset Review of the Division of Insurance Certificates of Authority for Health and Life Insurers

Mr. Harrelson explained the functions of the Division of Insurance related to the issuance of certificates of authority for health and life insurance and explained the recommendations in the report. He explained the changed sunset process that is being recommended in the bill. A copy of the sunset review entitled "The Functions of the Division of Insurance Related to the Issuance of Certificates of Authority for Health and Life Insurance " is available on-line at: http://www.dora.state.co.us/opr/archive/2005HealthandLifeInsuranceProviders.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment H.



Representative Marshall asked for more explanation of recommendation #2. Representative Paccione asked about how many in-state versus foreign companies are regulated based on one of the quick facts in the report. Mr. Harrelson stated that there was a typo in the report.


10:11 AM

Representative Butcher asked about the specifics of recommendation #1. She expressed concern with the new system the bill is setting up to sunset the functions in the future. Mr. Harrelson responded and clarified that the point in the report was that the sunset review function was too restrictive as to be very helpful.


10:20 AM

Mr. Harrelson clarified the new sunset for certificates of authority and the other components the sunset would review. Representative Carroll asked for more specifics abut what other functions would be included in the sunset. There was considerable discussion.


10:25 AM

Debbie Hulstrom, Division of Insurance, came to the table to clarify that the draft bill is seeking to expand the sunset review process to include not just the issuance of certificates of authority, but to include market conduct, issuance of policies, and others regulations as well.. The committee questioned Ms. Hulstrom.



10:32 AM

Representative Butcher asked that a bill just continuing the existing sunset process of certificates of authority be drafted rather than including all of the recommendations in a draft bill. There was discussion. Representative Marshall suggested that the draft bill before the committee today be moved forward, and then encouraged the members to work on amendments for when the bill is introduced during session.
BILL:Division of Insurance Certificates of Authority
TIME: 10:36:15 AM
MOVED:Paccione
MOTION:moved to recommend that the bill concerning the sunset review of the Division of Insurance's functions relating to the issuance of certificates of authority for health and life insurers be drafted and introduced in the 2006 session. The motion passed on an 12-0 roll call vote. Chairman Marshall indicated that she would be the prime House sponsor of the bill. Co-sponsors are: Representatives Coleman and Paccione.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Absent
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 0 EXC: 0 ABS: 1 FINAL ACTION: PASS


10:38 AM

Recess.


10:56 AM -- Notice that Sunset Review of Board of Examiners of Architect Would be Laid Over Until Session

Representative Cerbo stated that the sunset hearing on the Board of Examiners of Architects would be tabled today and be taken up when the session begins. A copy of the sunset review entitled "Colorado State board of Examiners of Architects" is available on-line at: http://www.dora.state.co.us/opr/archive/2005ArchitectsReport.pdf, and a copy of the draft bill that the committee would have reviewed today containing the recommendations in the sunset report is appended as Attachment I.




10:56 AM -- Sunset of Colorado Motorist Insurance Identification Database Program Act

Robert Holden, Department of Regulatory Agencies, reviewed the recommendations in the sunset report and walked through the provisions of the draft bill. A copy of the sunset review entitled "Colorado Motorist Insurance Identification Database Program Act " is available on-line at: http://www.dora.state.co.us/opr/archive/2005MIIDB.pdf, and a copy of the draft bill that the committee would be reviewing containing the recommendations in the sunset report is appended as Attachment J.


11:09 AM

Representative Paccione walked through the process of how a driver proves he or she has insurance, and asked whether, when registering a vehicle, the driver needs to show proof of insurance. Mr. Holden responded. Representative Borodkin expressed concern about what seems to be a disconnect in the systems between law enforcement and the Department of Revenue.


11:17 AM

Representative Knoedler discussed a bill from the 2005 session that sought to make names consistent on driving records and insurance so that tracking people would be easier. Representative Butcher asked about specific parts of the report. Mr. Holden responded.


11:27 AM

Representative Coleman asked a question about the 50 cent surcharge. More questions from the committee. Questions about compliance with in-state versus out-of-state companies. Mr. Holden stated that data is not compiled in that manner, so not available. He walked through Appendix G and what the column headers mean.


11:44 AM

Bruce Harrelson responded to a question from Representative Coleman, and there was considerable discussion between the committee and DORA.


11:50 AM

Joan Green, lobbyist for Explore Information Services, responded to some of the questions that had come up in DORA's testimony regarding law enforcement's access to insurance data and the required coverage at the time of purchase of a vehicle. Phil Casey, VP and General Manager, Explore Information Services, explained how the uninsured motorist database program works and how Explore notifies insurers about their noncompliance. Mr. Casey discussed the objective of the program since its inception. He stated that Explore agrees with the recommendations proposed in the sunset report, stating that they will help refine the program into a more effective one. He stated that approximately 98 percent of the policies currently submitted are matched to the policy holder.



12:02 PM

Representative Carroll questioned the accountability aspect of whether companies that are failing to timely report are actually being referred to the Division of Insurance for penalty. Mr. Casey responded stating that the reports have been sent to the Division of Motor Vehicles. Representative Carroll asked to obtain copies of the reports. Responding to a question from Representative Butcher, Mr. Casey indicated that Explore has held the contract since the inception of the program in 1999 and that the contract amount is approximately $1.2 million. Representative Borodkin expressed her concern again with the disconnect between the departments and agencies involved.


12:12 PM

Representative Paccione commented further on the lack of enforcement of the law that is on the books today. Mr. Casey stated that he agrees that a clear process is needed in order to ensure compliance.


12:16 PM

The committee continued questioning Mr. Casey. Representative Coleman asked to see the contract the state has with Explore in order to determine what the actual number of uninsured drivers is.


12:25 PM

Diane Reimer, Department of Revenue, came to the table and apologized for not having personnel present to respond to the questions, but they had thought that the hearing was at 1:30 p.m. She indicated that Joan Vecchi would be present either at 1:30 p.m. or at a later date if the committee decides not to finish the review today.


12:30 PM

Representative Cerbo stated that he was going to lay over the sunset review and consideration of the draft bill until session in order to allow all of the parties to be present and to allow the committee to get some of their questions answered.


12:32 PM

The committee adjourned.