Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:02/07/2005
ATTENDANCE
Time:01:34 PM to 04:59 PM
Balmer
X
Borodkin
X
Place:HCR 0107
Butcher
*
Carroll M.
X
This Meeting was called to order by
Coleman
X
Representative Marshall
Knoedler
X
Liston
X
This Report was prepared by
Massey
X
Todd Jorgensen
McCluskey
X
Paccione
X
White
X
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB05-1208
HB05-1114
HB05-1144
HB05-1060
HB05-1139
HB05-1145
Referred to the Committee on Appropriations
Tabled - Deemed Postponed Indefinitely
Postponed Indefinitely
Referred to the Committee of the Whole
Referred to the Committee of the Whole
Referred to the Committee on Appropriations


01:34 PM -- House Bill 05-1208

Representative Marshall presented the bill to the committee. She introduced Natalie Mullis and Amy Larsen, Legislative Council Staff, as present to help explain Tabor issues. Representative Marshall explained that the bill changes the way the unemployment insurance solvency tax is calculated for the years 2006 through 2010. She also responded to questions from the committee.

01:39 PM --
Mike Cullen, representing the Department of Labor and Employment Division of Unemployment Insurance, clarified the provisions of the bill. Mr. Cullen explained that the surcharge will continue to increase each year, but that this bill proposes to credit employers that pay the surcharge when the unemployment insurance trust fund is improvin. In essence, the proposal flattens out the amount collected each year. Mr. Cullin answered questions from the committee.

01:43 PM

Representative Marshall made final comments on the bill.
BILL:HB05-1208
TIME: 01:44:32 PM
MOVED:White
MOTION:Moved HB05-1208 to the House Committee on Appropriations. The motion passed 13-0.
SECONDED:McCluskey
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



01:46 PM -- House Bill 05-1114

Representative Butcher provided the committee with a presentation of the bill (Attachment A). She testified that the bill proposes to spread insurance risk throughout state by defining two geographic areas in the state by which rates are calculated. Representative Butcher answered questions from the committee.

02:06 PM

Representative Butcher asked that the committee lay the bill over until May 12, deeming the bill postponed indefinitely. At that time the six witnesses signed-up to testify withdrew their names from the list. Representative Marshall closed witness testimony and took the bill off the table for discussion.

02:07 PM -- House Bill 05-1144

Rep. Benefield presented the provisions of the bill to the committee. The bill establishes regulations for gift cards within the Colorado Consumer Protection Act. Under the bill, gift cards or certificates containing an expiration date cannot be sold, unless certain conditions are met. Representative Benefield answered questions from the committee.

02:19 PM --
Michael Elder, representing himself, spoke in favor of the bill and provided the committee with a copy of his written testimony (Attachment B).

02:28 PM --
Barbara Walker, representing the Independent Bankers Association, spoke in favor of the bill as amended by L.004.

02:31 PM --
JoAnn Groff, representing the Colorado Retail Council, spoke in opposition to the bill. Ms. Groff responded to questions from the committee.

02:48 PM --
Richard Weil, representing the Colorado Restaurant Association, spoke in opposition to the bill. Mr. Weil testified that one of his association's concerns is that the restaurant industry holds cash aside to cover the outstanding liability for gift certificates. Expiration dates provide an incentive for redemption.

02:54 PM --
Don Childears, representing CO Bankers Association, spoke in favor of the bill as amended by L.004.

02:57 PM --
Susan Zeuemke, representing herself as a small business owner, spoke in support of the bill.

02:59 PM --
Debbie Barnhill, representing herself, spoke in favor of the bill.

03:02 PM

Representative Marshall closed the public testimony portion of the hearing and asked for amendments.
BILL:HB05-1144
TIME: 03:02:15 PM
MOVED:Cerbo
MOTION:Moved amendment L.001. What happened to this amendment????
SECONDED:Paccione
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE
BILL:HB05-1144
TIME: 03:09:23 PM
MOVED:Cerbo
MOTION:Moved amendment L.004. The motion passed without objection.
SECONDED:Marshall
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1144
TIME: 03:10:05 PM
MOVED:Cerbo
MOTION:Moved amendment L.005. The motion passed without objection.
SECONDED:Balmer
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


03:16 PM

Representative Benefield made closing remarks.
BILL:HB05-1144
TIME: 03:17:12 PM
MOVED:Borodkin
MOTION:Moved to refer HB05-1144, as amended, to the Committee of the Whole. The motion failed on a 6-7 roll call vote.
SECONDED:Carroll M.
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
No
Knoedler
No
Liston
No
Massey
No
McCluskey
No
Paccione
Yes
White
No
Cerbo
Yes
Marshall
Yes
Not Final YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB05-1144
TIME: 03:23:29 PM
MOVED:Balmer
MOTION:Moved to postpone HB05-1144 indefinitely. The motion passed on a 7-6 roll call vote.
SECONDED:
VOTE
Balmer
Yes
Borodkin
No
Butcher
No
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
No
White
Yes
Cerbo
No
Marshall
No
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS




03:31 PM -- House Bill 05-1060

Representative Marshall provided committee members with background information on the CoverColorado program. This bill increases the tax credit an insurance company may apply for from 100 percent to 103 percent of a qualifying contribution to CoverColorado. The aggregate amount of tax credits is still limited to $5 million per year, and thus, there will be no change in the amount of premium taxes collected. The bill also removes the statutory annual deadline by which an insurance company may apply for the credit. Rather, the Governor's Office of Economic Development will promulgate rules regarding the deadline, as well as for transferring or selling premium tax credits. Representative Marshall answered questions from committee members.

03:39 PM --
Barbara Brett, representing the CoverColorado program, spoke in favor of the bill and distributed a fact sheet describing how the special fee is calculated (Attachment C).

03:44 PM --
Travis Berry, representing the Business Council for Healthcare Competition, spoke in favor of the bill. Mr. Berry testified that the bill creates a stable funding stream for CoverColorado. If there is not a stable source, Mr. Berry contends that insurance companies will pay more.

03:47 PM --
Barbara Brett came back to answer a question from the committee regarding a provision in the original bill regarding the sale or transfer of the credit.

03:49 PM --
Peg Brown, representing the Colorado Association of Health Plans, spoke in favor of the bill and provided the committee with written testimony (Attachment D).

03:50 PM

Representative Cerbo closed witness testimony and opened the amendment phase of the hearing.
BILL:HB05-1060
TIME: 03:50:43 PM
MOVED:Marshall
MOTION:Moved L.001. The motion passed without objection.
SECONDED:Paccione
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1060
TIME: 03:51:06 PM
MOVED:Marshall
MOTION:Moved that HB05-1060 be referred to the Committee of the Whole. The motion passed 13-0.
SECONDED:Paccione
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:54 PM -- House Bill 05-1139

Representative Coleman presented the bill to the committee. It was reported out of the Legislative Audit Committee as a means to strengthen the Division of Workers' Compensation's ability to enforce laws related to workers' compensation insurance. Representative Coleman responded to questions from the committee.

03:59 PM --
Cindy Stetson, representing the Office of the State Auditor, answered questions from the committee.

04:00 PM --
Jennifer Henry, representing the Office of the State Auditor, also answered technical questions from the committee regarding the audit.

04:06 PM --
Mary Ann Whiteside, representing the Workers' Compensation Division answered questions from the committee.

04:11 PM --
John Berry, representing the Workers' Compensation Coalition, spoke in favor of the bill.

04:16 PM --
Robert Ferm, representing American Insurance Association, spoke about a provision in the bill that concerns his organization. Mr. Berry testified that the concern is that it is unclear if violations could be administratively prosecuted by both Division of Insurance and Division of Workers' Compensation.

04:18 PM --
Kim Griffiths, representing Pinnacol Assurance, testified regarding certain provisions of the bill with which Pinnacol has concerns. Representative Marshall urged Pinnacol to work more closely with Representative Coleman.

04:26 PM

Representative Coleman made closing remarks.
BILL:HB05-1139
TIME: 04:29:09 PM
MOVED:Coleman
MOTION:Moved that HB05-1139 be referred to the Committee of the Whole. The motion passed 13-0.
SECONDED:Carroll M.
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE




04:31 PM -- House Bill 05-1145

Representative White presented the provisions of the bill to the committee. The bill creates a registration and corresponding fee for plumbing contractors, and limits journeyman plumbers to three apprentices. In addition, it clarifies laws governing plumbers and changes the penaly for violations of laws governing plumbers from a class 3 to a class 1 misdemeanor. Representative White responded to questions from the committee.

04:35 PM --
Geoffrey Hier, representing the Department of Regulatory Agencies, spoke in opposition to the bill. Mr. Hier testified that the current system works well and that this bill adds another licensing category to the current system. Mr. Hier responded to questions from the committee.

04:40 PM --
Tom Stone, representing plumbing contractors, spoke in favor of the bill. Mr. Stone testified that plumbing statutes should be consistent with electrical statutes and characterized the bill as promoting public safety. Mr. Stone responded to questions from the committe.

04:45 PM --
Bob Booth, representing Total Plumbing, spoke in favor of the bill. Mr. Booth testified that establishing the journeyman to apprentice ratio will provide competitive consistency for the plumbing trade.

04:48 PM --
Mac Terry, representing plumbing contractors, spoke in favor of the bill. Mr. Terry testified that he wanted to clarify the bill proposes registration, not licensure, as Mr. Hier testified.

04:49 PM --
Mark Mitchell, representing himself as a plumber and trainer, spoke in favor of the bill. Mr. Mitchell responded to questions from the committee.

04:53 PM

Representative White made closing remarks.
BILL:HB05-1145
TIME: 04:58:02 PM
MOVED:White
MOTION:Moved to refer HB05-1145 to the Committee on Appropriations. The motion passed 11-2.
SECONDED:Paccione
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS