House Committee on Business Affairs and Labor (03/15/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	03/15/2006	ATTENDANCE

Time:	10:53 AM to 12:03 PM	Balmer	*
		Borodkin	X
Place:	HCR 0107	Butcher	*
		Carroll M.	*
This Meeting was called to order by		Coleman	X
	Representative Marshall	Knoedler	X
		Liston	X
This Report was prepared by		McCluskey	*
	Christie Lee	Paccione	X
		Penry	X
		Welker	*
		Cerbo	*
		Marshall	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB06-112 SB06-040 SB06-187		Amended, Referred to the Committee of the Whole Witness Testimony Only Amended, Referred to the Committee of the Whole

10:53 AM -- Senate Bill 06-112

Representative Buescher, prime sponsor, presented Senate Bill 06-112. The bill makes an insured only responsible for the initial copayment, coinsurance, or deductible if the insurance carrier is notified within 12 months of providing a covered health care service. Representative Buescher explained that the bill only applies to situations where preauthorization is not required. The bill also specifies that the insurance must have been effect during the time of the covered medical service. Representative Buescher responded to questions from the committee.

10:57 AM -- Patrick Boyle, representing United Health Care and Pacificare, testified in support of the bill. He explained that the bill addresses situations where an insured, unaware a particular benefit is provided for them, goes to a provider to get treatment, and then when the insured finds out their insurance covers that service, has to pay the out of network cost. He stated that the bill would give an insured up to 12 months to submit a covered medical service. Mr. Boyle spoke about amendment L.002 that would add services that require prior notice to the bill (Attachment A) .

11:02 AM -- Michael Hutari, representing the Colorado Association of Health Plans, testified in opposition to the bill.


BILL:	SB06-112
TIME:	11:04:38 AM
MOVED:	Penry
MOTION:	Moved amendment L.002 (Attachment A). The motion passed without objection.
SECONDED:	Paccione
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston
	McCluskey
	Paccione
	Penry
	Welker
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB06-112
TIME:	11:06:57 AM
MOVED:	Balmer
MOTION:	Moved to refer Senate Bill 06-112, as amended, to the Committee of the Whole. The motion passed 13-0.
SECONDED:	Borodkin
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	Yes
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:08 AM -- Senate Bill 06-040

Representative Buescher, prime sponsor, presented Senate Bill 06-040. He stated that the bill requires contracts that automatically renew and bill to a credit card to clearly and conspicuously disclose:

the material terms of the offer;
the automatic renewal provisions; and
how to cancel the contract.

A violation of the bill would be a class 2 petty offense, punishable by a fine up to $250. Representative Buescher added that a violation of the bill would also constitute a deceptive trade practice under the Colorado Consumer Protection Act, punishable by a civil penalty of up to $2,000 per violation.

Representative Buescher responded to questions from the committee pertaining to the scope of the bill. He stated that the bill addresses companies that are not domiciled in Colorado, and would apply to any company that does business in the state. There was discussion about how the bill would be enforced and how companies would be informed of the new requirement. Representative Buescher stated that the Direct Marketing Association has a great network that will inform the companies.

11:17 AM

There was committee discussion on how contracts are currently canceled and how they would be canceled under the bill. Representative Buescher stated that he anticipates that the companies would include information on how to cancel these contracts with the renewal notice.

11:19 AM -- Garth Lucero, representing the Direct Marketing Association, a national and international trade association that represents businesses and nonprofit organizations that use direct marketing tools and techniques, testified in support of the bill. He explained that the association was involved in the drafting of the bill and distributed a fact sheet (Attachment B). Mr. Lucero talked about the positive aspects of automatic renewal contracts. He stated that the bill requires notice at the time of sale and at the time of renewal. There was committee discussion about why the bill would fall under the unsolicited goods statute. Mr. Lucero responded.

11:31 AM

Representative Marshall asked if the bill would make it harder for a consumer to get out of a contract. Mr. Lucero stated that the bill would protect consumer at the time the contract is created, at the time of renewal, and under the Fair Credit Billing Act if there are any billing errors. Representative Buescher added that the bill would give consumers additional notice of their right to cancel before the contract automatically renews.

11:41 AM -- Bill Imig, representing the Property and Casualty Insurance Association, testified. He stated that the association is concerned that the bill may conflict with some disclosure requirements that already exist in statute and that he is working with the sponsor on an amendment. Mr. Imig explained those conflicts at the request of the committee.

11:43 AM

Representative Marshall pulled the bill off the table until Monday, March 20 in order to allow the sponsor and the committee to work on some amendments.

11:44 AM -- Senate Bill 06-187

Representative Witwer, prime sponsor, presented Senate Bill 06-187. The bill makes several amendments to Title 7 of the Colorado Revised Statutes concerning corporations and associations. He explained that the bill is an annual bill that comes out of the Business Law Section Statutory Drafting Committee within the Colorado Bar Association.

11:48 AM

Anthony VanWestrum, representing the Colorado Bar Association, and Keith Whitelaw, representing the Colorado Secretary of State's Office, testified together in support of the bill. Mr. VanWestrum discussed the changes the bill would make. He stated that the initial language in the bill was broader than intended, so there would be an amendment to limit that language. There was a committee discussion about the section of the bill that pertains to fiduciary duties.

12:00 PM

Representative Witwer explained amendment L.004 and concluded his remarks.


BILL:	SB06-187
TIME:	12:01:04 PM
MOVED:	Coleman
MOTION:	Moved amendment L.004 (Attachment C). The motion passed without objection.
SECONDED:	McCluskey
		VOTE
	Balmer
	Borodkin
	Butcher
	Carroll M.
	Coleman
	Knoedler
	Liston
	McCluskey
	Paccione
	Penry
	Welker
	Cerbo
	Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB06-187
TIME:	12:01:45 PM
MOVED:	Knoedler
MOTION:	Moved to refer Senate Bill 06-187, as amended, 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
	McCluskey	Yes
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:03 PM

The committee adjourned.