Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:04/18/2005
ATTENDANCE
Time:02:34 PM to 03:52 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
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:
HB05-1318Amended, Referred to the Committee of the Whole


02:35 PM -- House Bill 05-1318

Representative Soper presented HB05-1318 which requires that every person performing construction work on a construction site be covered by workers' compensation insurance, including independent contractors. The bill specifies that it is the responsibility of the person who contracts for the work to either provide the insurance or require proof of insurance.

02:40 PM -- JoAnn Groff, representing the Colorado Retail Council, testified in opposition to the bill. Ms. Groff testified that her concern is that responsibility to comply with the bill lies with the owner of the property rather than the general contractor. Ms. Groff feels that the general contractor should be responsible to ensure the compliance of subcontractors, not the owner. Ms. Groff also wants to clarify that the bill does not apply to routine maintenance work.

02:50 PM -- David Hanson, representing the Colorado Association of Home Builders, testified in opposition to the bill. Mr. Hanson testified that if the intent of the bill is to address noncompliance by independent contractors in providing workers' compensation coverage, there are adequate penalties in current statute. Mr. Hanson believes that this intent can be addressed through better enforcement of the workers' compensation laws. Mr. Hanson responded to questions from the committee.


03:03 PM -- John Berry, representing the Workers' Compensation Coalition, testified in favor of the bill. Mr. Berry's organization proposed the idea for the bill to Representative Soper. Mr. Berry testified that the reason the bill addresses the construction industry in particular is because the industry has historically shown problems with providing workers' compensation insurance. Mr. Berry discussed amendments L.001 (Attachment A), L.002 (Attachment B), L.003 (Attachment C), and L.004 (Attachment D). Amendment L.001 clarifies that the bill does not apply to owners or occupants of residential property who are exempt under current law. Amendment L.002 removes the requirement that premiums are determined according to the federal Davis-Bacon wage rates. Amendment L.003 clarifies that the bill applies to every person with whom the contractor has a direct contract. Amendment L.004 excludes the surveying and inspection of a construction site and the delivery of materials to a site under the definition of construction work. Mr. Berry responded to questions from the committee.

03:25 PM -- Scott Peterson, representing the Associated General Contractors of Colorado, testified in favor of the bill. Mr. Peterson said his organization will support the bill if the proposed amendments are offered. Mr. Peterson's organization has an interest in making sure that subcontractors have proper workers' compensation coverage. Mr. Peterson testified that the bill will promote fair competition among contractors if all of them must meet the same requirement.

03:29 PM -- Bob Green, representing the Colorado Building and Construction Trades Coalition, testified in favor of the bill.

03:32 PM -- Jennifer Bisset, representing the Workers' Compensation Education Association, testified in favor of the bill. Ms. Bisset offered her opinion that the bill would be better with a minor amendment. Her suggestion for the committee is to amend the bill on page 2, line 20 by inserting after the word "liable" the words "under subsection (4) of this section". This amendment would clarify what the person is liable for under the bill.

03:36 PM -- Ron Lundquist, representing himself as a commercial subcontractor, testified in favor of the bill. Mr Lundquist testified that the bill will promote fair competition among subcontractors if all of them must meet the same requirement. Under the current law, many subcontractors use labor brokers to obtain independent contractors as a method of avoiding workers' compensation coverage. Mr. Lundquist responded to questions from the committee.


03:42 PM -- Greg Fulton, representing the Colorado Motor Carriers Association, testified in favor of the bill and for amendment L.004. Mr. Fulton supports L.004 because it removes the delivery of materials under the definition of construction work.
BILL:HB05-1318
TIME: 03:48:39 PM
MOVED:Cerbo
MOTION:Moved amendment L.001 (Attachment A). The amendment 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:HB05-1318
TIME: 03:49:15 PM
MOVED:Cerbo
MOTION:Moved amendment L.002 (Attachment B). The amendment 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:HB05-1318
TIME: 03:49:40 PM
MOVED:Cerbo
MOTION:Moved amendment L.003 (Attachment C). The amendment 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:HB05-1318
TIME: 03:50:08 PM
MOVED:Cerbo
MOTION:Moved amendment L.004 (Attachment D). The amendment 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:HB05-1318
TIME: 03:50:56 PM
MOVED:Paccione
MOTION:Moved the amendment proposed by Jennifer Bisset. The amendment amends the bill on page 2, line 20 by inserting after the word "liable" the words "under subsection (4) of this section". The amendment passed without objection.
SECONDED:Cerbo
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:HB05-1318
TIME: 03:51:25 PM
MOVED:Paccione
MOTION:Moved that HB05-1318 be referred, as amended, to the Committee of the Whole with a favorable recommendation. The motion passed 10-2, with 1 excused.
SECONDED:Butcher
VOTE
Balmer
No
Borodkin
Excused
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: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS