Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:02/21/2005
ATTENDANCE
Time:01:36 PM to 05:25 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
*
White
X
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB05-1179
HB05-1297
HB05-1193
HB05-1264
HB05-1204
HB05-1239
HB05-1265		Referred to the Committee of the Whole
Referred to the Committee of the Whole
Witness Testimony Only
Amended, Referred to Committee on Appropriations
Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole
Amended, Referred to Committee on Appropriations


01:37 PM -- House Bill 05-1179

Representative T. Carroll presented the bill which increases the penalty for not paying wages to a terminated employee after 10 days to twice the amount of wages due, or the daily wage times the number of late days, whichever is greater. Current law provides for a penalty equal to 50 percent of the wages due or the daily wage for each day that the payment is late, whichever is greater. Representative Carroll testified that there were over 6,000 complaints filed last year with the Division of Labor regarding this issue. Representative Carroll responded to questions from the committee.

01:42 PM -- Heidi Heltzel, representing the Colorado Association of Commerce and Industry, testified in opposition to the bill. Ms. Heltzel testified that few employers knowingly disobey the law, but rather, refusal to pay wages is usually based on a misunderstanding between the parties involved.
01:48 PM -- Juan Bushillos, representing El Centro Humanitario, testified in support of the bill. Mr. Bushillos' organization represents employees involved in disputes with employers regarding unpaid wages. His organization has seen a dramatic rise in cases in recent months.



01:52 PM -- Freddie Medina, representing himself, testified in support of the bill. Mr. Medina testified regarding his personal situation in which he was unable to recover wages from an employer. The Division of Labor told Mr. Medina that his only option for remedy was small claims court.

01:55 PM -- Colleen Breslin, representing El Centro Humanitario, testified in support of the bill. Ms. Breslin responded to questions from the committee.


02:01 PM

Representative Carroll made closing remarks.
BILL:HB05-1179
TIME: 02:05:08 PM
MOVED:Marshall
MOTION:Moved that HB05-1179 be referred to the Committee of the Whole. The motion passed 7-6.
SECONDED:Coleman
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
No
Paccione
Yes
White
No
Cerbo
Yes
Marshall
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS




02:07 PM -- House Bill 05-1297

Representative Green presented the bill, which exempts insurance on satellites or other devices intended for launch beyond the earth's atmosphere from the statutory provisions governing transactions with nonadmitted insurers. Nonadmitted insurers are insurers who do not have a certificate of authority to transact business in Colorado. Representative Green responded to questions from the committee.
BILL:HB05-1297
TIME: 02:14:23 PM
MOVED:White
MOTION:Moved that HB05-1297 be referred to the Committee of the Whole. The motion passed 13-0.
SECONDED:Balmer
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


02:15 PM -- House Bill 05-1193

Representative Green presented the bill, which requires small group health insurance carriers to offer the same basic and standard health plans and premiums to Multiple Employer Welfare Arrangements (MEWAs) as offered to small employers.

02:19 PM -- Peg Brown, representing the Colorado Association of Health Plans, testified in opposition to the bill. Ms. Brown's organization opposes the bill because they feel the bill creates a mandate on health insurance providers. Ms. Brown responded to questions from the committee.

02:28 PM -- Tom Appelhans, representing the Colorado Group Insurance Association, testified in opposition to the bill. Mr. Appelhans testified regarding the inherent problems with MEWAs. Mr. Appelhans responded to questions from the committee.



02:38 PM -- Jerry McElroy, representing Kaiser Permanente, testified in opposition to the bill.

02:41 PM -- Marcie Miller, representing herself, testified in favor of the bill. Ms. Miller testified that she wished to speak on behalf of small businesses. She characterized the bill as a way to help keep health coverage affordable for small businesses. Ms. Miller responded to questions from the committee.
BILL:HB05-1193
TIME: 02:49:01 PM
MOVED:Paccione
MOTION:Moved amendment L.001 (Attachment A), which amends the bill on page 2, by striking line 12 and substituting "small employers based on a single, same index rate, applicable to all small employers, adjusted for the ages, geographic areas, and family compositions of the members of a multiple employer welfare arrangement." The motion passed without objection.
SECONDED:Butcher
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




02:51 PM

Representative Marshall discussed the need for the bill to be heard by the Commission on Mandated Health Insurance Benefits before action can be taken. Representative Green made closing remarks. Representative Marshall took the bill off the table and announced that the committee would revisit the bill at a later time for action only.

02:53 PM -- House Bill 05-1264

Representative Buescher presented the bill, a Joint Budget Committee bill, which eliminates the Real Estate Recovery Fund. The bill transfers the balance of the Real Estate Recovery Fund to the Division of Real Estate Cash Fund and requires that remaining claims be paid from the balance transferred to the Division of Real Estate Cash Fund first and then to the General Fund. Representative Buescher responded to questions from the committee.
BILL:HB05-1264
TIME: 02:58:24 PM
MOVED:Marshall
MOTION:Moved amendment L.001 (Attachment B), which makes a technical correction to the bill on page 8, line 4, by striking "payment of any claim." and substituting "entry of a civil judgement for damages." 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



02:59 PM -- Carol Richmond, representing the Colorado Association of Realtors, testified in favor of the bill.
BILL:HB05-1264
TIME: 03:04:49 PM
MOVED:McCluskey
MOTION:Moved that HB05-1264, as amended by amendment L.001, be referred to the House Committee on Appropriations. The motion passed 13-0.
SECONDED:Marshall
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


03:05 PM -- House Bill 05-1204

Representative Judd presented the bill which specifies that a person who has a duty to pay wages on behalf of an insolvent employer, and does not, is liable to the employee for unpaid wages. Representative Judd responded to questions from the committee.

03:17 PM -- Evan Lipstein, representing himself as an attorney who represents workers in Colorado, testified in favor of the bill. Mr. Lipstein testified regarding a case where an employer owed its employees unpaid wages, but under current law, the employer was not found liable. He also testified that there are twelve other states that have passed similar legislation. Mr. Lipstein responded to questions from the committee.

03:24 PM -- Heidi Heltzel, representing the Colorado Association of Commerce and Industry, testified in opposition to the bill. Ms. Heltzel testified that the bill would serve as a disincentive for entrepreneurs to start a new business in Colorado.



03:26 PM

Representative Judd responded to questions from the committee and made closing remarks.
BILL:HB05-1204
TIME: 03:35:39 PM
MOVED:Cerbo
MOTION:Moved that HB05-1204 be referred to the Committee of the Whole. The motion passed 7-6.
SECONDED:Borodkin
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
No
Paccione
Yes
White
No
Cerbo
Yes
Marshall
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


03:36 PM -- House Bill 05-1239

Representative Cerbo presented the bill, which clarifies that an employee is eligible for unemployment insurance benefits if the employee's unemployment is due to a lockout by the employer. Representative Cerbo responded to questions from the committee.

03:45 PM -- Don Peitersen, representing the Department of Labor and Employment Division of Employment and Training, testified neither for nor against the bill. Mr. Peitersen responded to questions from the committee. Mr. Peitersen testified that there is currently $60 million in the Unemployment Insurance Trust Fund.

03:57 PM -- James Hautzinger, representing King Soopers, testified in opposition to the bill. Mr. Hautzinger testified that the bill provides state-funding for a union's position in a labor dispute, regardless of fault. Mr. Hautzinger testified that the bill may provide a disincentive for employers to locate in Colorado. Mr. Hautzinger responded to questions from the committee.



04:08 PM -- Chuck Berry, representing the Colorado Association of Commerce and Industry, testified in opposition to the bill. Mr. Berry's organization feels that unemployment insurance should benefit employees who are unemployed through no fault of their own, especially since the trust fund has limited resources. Mr. Berry responded to questions from the committee.

04:13 PM -- JoAnn Groff, representing the Colorado Retail Council, testified in opposition to the bill. Ms. Groff testified that the distinction in current law between a defensive and an offensive lockout is important and should be preserved.

04:23 PM -- Mary Lou Chapman, representing the Rocky Mountain Food Industry Association, testified in opposition to the bill.

04:27 PM -- John Bowen, representing the United Food and Commercial Workers Union, testified in favor of the bill.

04:34 PM -- Anna Flynn, representing herself as a grocery worker, testified in support of the bill. Ms. Flynn testified that grocery employees are generally loyal to their employers and are simply interested in earning a living. Ms. Flynn responded to questions from the committee.

04:37 PM -- Ted Textor, representing the Teamsters Union, testified in support of the bill. Mr. Textor responded to questions from the committee.
BILL:HB05-1239
TIME: 04:40:23 PM
MOVED:Cerbo
MOTION:Moved amendment L.001 (Attachment C) which restores definitions of "lockout" and "strike or labor dispute". 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



04:43 PM

Representative Cerbo made closing remarks.
BILL:HB05-1239
TIME: 04:46:46 PM
MOVED:Cerbo
MOTION:Moved that HB05-1239, as amended by amendment L.001, be referred to the Committee of the Whole. The motion passed 7-6.
SECONDED:Paccione
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
No
Paccione
Yes
White
No
Cerbo
Yes
Marshall
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


04:51 PM -- House Bill 05-1265

Representative Coleman presented the bill, which extends unemployment insurance benefits to spouses of military personnel who are transferred as part of their military responsibilities. Representative Coleman responded to questions from the committee. Representative Balmer suggested that language used in the amendment L.002 (Attachment D) is vague and may not be as precise as other language used by the military.

05:03 PM -- Don Peitersen, representing the Department of Labor and Employment Division of Employment and Training, testified that the amendment L.002, which narrows the focus of covered spouses to those who quit a job due to a medical transfer of a military spouse, is redundant with current law. Mr. Peitersen testified that unemployment benefits would be paid to such an individual under current law, but he added that it would not be paid if a person is out of the country because the department has no way to verify that the person is searching for employment. Mr. Peitersen responded to questions from the committee.



05:15 PM

Representative Coleman responded to questions from the committee.

05:17 PM -- Kathryn Hammerbeck, representing the Colorado Child Care Association, testified in support of the bill as amended by L.002. Ms. Hammerbeck is concerned that the unemployment tax levied against employers would go up as a result of the bill as currently drafted without the amendment.
BILL:HB05-1265
TIME: 05:20:10 PM
MOVED:Coleman
MOTION:Moved amendment L.002 (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



05:20 PM

Representative Coleman made closing remarks.
BILL:HB05-1265
TIME: 05:21:00 PM
MOVED:Coleman
MOTION:Moved that HB05-1265 be referred, as amended by amendment L.002, to the House Committee on Appropriations. 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