House Committee on Business Affairs and Labor (03/13/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	03/13/2006	ATTENDANCE

Time:	01:42 PM to 03:46 PM	Balmer	X
		Borodkin	X
Place:	HCR 0107	Butcher	X
		Carroll M.	*
This Meeting was called to order by		Coleman	X
	Representative Marshall	Knoedler	X
		Liston	X
This Report was prepared by		McCluskey	X
	Christie Lee	Paccione	*
		Penry	X
		Welker	X
		Cerbo	X
		Marshall	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB06-180 SB06-107 SB06-006 SB06-014 HB06-1197		Referred to the Committee of the Whole Referred to the Committee of the Whole Referred to the Committee of the Whole Referred to the Committee of the Whole Postponed Indefinitely

01:42 PM -- Senate Bill 06-180

Representative Green, prime sponsor, presented Senate Bill 180. The bill specifies that the average premium rates charged by CoverColorado must be at least the average rate for health benefit plans charged by the five largest carriers in the state for a comparable plan, unless an individual is participating in the premium discount program, and not greater than 150 percent of the premiums charged by private carriers. Representative Marshall asked whether the funding levels of CoverColorado are currently high enough to reduce premiums. Representative Green responded.

01:45 PM -- Barbara Brett, Executive Director of CoverColorado, testified in support of the bill and distributed a handout (Attachment A). She responded to the previous question regarding funding levels and the cost of premiums. Ms. Brett stated that through the unclaimed property fund, the state has made a significant amount of money available to CoverColorado, and that money can help fund the gap that would be created if premiums were lowered. She explained that there are currently 5,000 people enrolled in CoverColorado and it has remained at 5,000 for the last 3 years because the rates are 150 percent of the standard market rate. Ms. Brett talked about the average costs for a person enrolled in CoverColorado. She stated that by allowing CoverColorado to drop its rates, more people will be able to afford to enroll in the program.

01:52 PM

There was a discussion about the premium discount program listed in Attachment A and CoverColorado's Health Savings Account plan. In response to a question from the committee about how the premiums are set under CoverColorado, Ms. Brett explained that they are based on the private insurance market and not actuarially like most insurance premiums.

01:55 PM -- Steve Bieringer, representing the American Diabetes Association, testified in support of the bill. He talked about the make-up of the association and that there are currently 453 people with diabetes enrolled in CoverColorado. He explained how CoverColorado provides Coloradoans with diabetes with the proper resources to manage the disease which results in lower overall expenses of short and long-term expenses attributed to diabetes and urged the committee to support the bill.

01:57 PM -- R.J. Ours, representing the American Cancer Society, testified in support of the bill. He stated that Senate Bill 06-180 will provide citizens with preexisting conditions more affordable health care.

01:59 PM -- Carrie Curtiss, Policy Director, Colorado Consumer Health Initiative, testified in support of the bill. She stated that the coalition receives numerous calls from consumers who are unable to find health care coverage due to preexisting conditions. Ms. Curtiss stated that the coalition directs these consumers to CoverColorado where some obtain coverage and others do not due to the costly premiums. She stated the if the bill passes, premiums would be reduced, thus more people would have access to health care.

02:01 PM

Representative Green gave her closing remarks on the bill.


BILL:	SB06-180
TIME:	02:04:32 PM
MOVED:	Borodkin
MOTION:	Moved to refer Senate Bill 06-180 to the Committee of the Whole. The motion passed 12-0.
SECONDED:	Coleman
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	Excused
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:05 PM -- Senate Bill 06-107

Representative Boyd, prime sponsor, presented House Bill 06-107. The bill allows small business group sickness and accident insurance carriers to vary the minimum participation and employer contribution requirements by product rather than the size of the group.

02:10 PM -- Melissa Hall and Rebecca Weiss, representing Anthem Blue Cross and Blue Shield, testified in support of the bill. Ms. Hall stated that the bill would reach out to uninsured businesses by breaking down the obstacles. Ms. Hall responded to committee questions pertaining to the current restrictions on small businesses.

02:18 PM -- Tony Gagliardi, representing the National Federation of Independent Businesses, testified in support of the bill. He stated the bill would give the employer and the employee the flexibility to pick an insurance plan that best suits them.


BILL:	SB06-107
TIME:	02:19:40 PM
MOVED:	Balmer
MOTION:	Moved to refer Senate Bill 06-107 to the Committee of the Whole. The motion passed 12-0.
SECONDED:	Coleman
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	Excused
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:21 PM -- Senate Bill 06-006

Representative White, prime sponsor, presented Senate Bill 06-006 and explained that the bill was recommended by the Legislative Audit Committee. The bill would give the Public Employees' Retirement Association (PERA) the authority to deny employment to an individual who has been convicted of a felony or other specified offense if the person would have access to PERA investment information, PERA assets, or other information relating to PERA members or beneficiaries.


BILL:	SB06-006
TIME:	02:26:28 PM
MOVED:	Knoedler
MOTION:	Moved to refer Senate Bill 06-006 to the Committee of the Whole. The motion passed 12-0.
SECONDED:	Coleman
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	Excused
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:29 PM -- Senate Bill 06-014

Representative White, prime sponsor, presented Senate Bill 06-014. He stated that the bill was recommended by the Legislative Audit Committee after a performance audit of the Department of Regulatory Agencies, Division of Real Estate. He explained that under current law, the Real Estate Commission is required to seek out and make available to brokers a group errors and omissions policy. The bill would remove the exception that if the Real Estate Commission is unable to find a policy at a reasonable rate, brokers are not required to carry errors and omissions insurance for that year. There was committee discussion on the cost of errors and omissions insurance.

02:37 PM -- Becky Richardson, representing the State Auditor's Office responded to questions. She stated that the current concern is, if the commission is unable to obtain a group policy, consumers would be not be protected by the errors and omissions insurance.

02:40 PM -- Jon Goodman, representing Metro Brokers Inc., testified against the bill in part. He explained four problems with the bill: there would be no gain in efficiency; the bill only covers brokers who are licensed, therefore creating a disincentive to become licensed; under the bill there would be no incentive to report claims for fear that rates will increase; and there will be brokers who cannot get coverage and it could drive small brokers out of business.

02:49 PM

There was committee discussion about what recourse the consumer would have if a broker does not have errors and omissions insurance. Mr. Goodman stated that the consumer would have to sue the broker.

03:03 PM -- Sonny Banka, representing the Colorado Association of Realtors, testified in opposition to section one of the bill that deals with the duties of the Real Estate Commission.

03:08 PM -- Debbie Campagnola, representing the Division of Real Estate, testified in support of the bill. At the committee's request, Ms. Campagnola explained the history of mandatory errors and omissions insurance in Colorado and the contracts and carriers that have been and are being used. There was committee discussion about why the bill is necessary. Representative White stated that the bill provides a safety net for consumers if the Real Estate Commission cannot negotiate an insurance plan. The committee discussed whether companies voluntarily cover themselves and how brokers are notified of changes in coverage or law by the Real Estate Commission. Ms. Campagnola explained the various methods the division uses to notify brokers of these changes such as through their quarterly newsletter, and license renewal notices.

03:16 PM

There was committee discussion about who the bill would affect.


BILL:	SB06-014
TIME:	03:20:21 PM
MOVED:	Penry
MOTION:	Representative Penry offered an amendment to insert, "after a thorough, good faith effort," after the word "if" on page 2, line 6, of the bill. Following committee discussion, Representative Penry decided to withdraw his amendment and work with the sponsor on a second reading amendment.
SECONDED:
		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: WITHDRAWN


BILL:	SB06-014
TIME:	03:26:53 PM
MOVED:	Butcher
MOTION:	Representative Butcher offered an amendment to strike lines 21-27 on page 3, and strike lines 1-6 on page 4 of the bill. The amendment failed on a 5-8 roll call vote.
SECONDED:	Knoedler
		VOTE
	Balmer	Yes
	Borodkin	No
	Butcher	Yes
	Carroll M.	No
	Coleman	No
	Knoedler	Yes
	Liston	No
	McCluskey	No
	Paccione	No
	Penry	Yes
	Welker	Yes
	Cerbo	No
	Marshall	No
Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB06-014
TIME:	03:30:00 PM
MOVED:	McCluskey
MOTION:	Moved to refer Senate Bill 06-014 to the Committee of the Whole. The motion passed 8-5.
SECONDED:	Coleman
		VOTE
	Balmer	No
	Borodkin	Yes
	Butcher	No
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	No
	Liston	Yes
	McCluskey	Yes
	Paccione	Yes
	Penry	No
	Welker	No
	Cerbo	Yes
	Marshall	Yes
Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:31 PM -- House Bill 06-1197

Representative McGihon, prime sponsor, presented House Bill 1197 concerning increased protection for consumers who contract with movers of household goods. She stated that the Colorado Motor Carriers Association (CMCA) has worked with her to create the bill and would like to continue to work with her on creating an improved bill for next session.

03:33 PM -- Greg Fulton, President of the CMCA, stated that there are still weaknesses that need to be worked on in the bill and therefore would ask the bill be postponed indefinitely so those weaknesses can be addressed. Mr. Fulton explained to the committee that the CMCA would like to conduct a cooperative study relating to improving consumer protection in the household moving industry. The study would be overseen by the Public Utilities Commission, along with the Attorney General's Office, the Better Business Bureau, representatives of the moving industry, and other interested parties. He explained that the study group would examine the effectiveness of existing regulatory efforts, rules and programs in other states, and efforts in other consumer areas that have helped to curb fraud. Mr. Fulton stated that the projected completion date for the study would be August 1, 2006, and that the findings should provide a good framework for any legislation that may be needed to improve consumer protection next session.

03:40 PM

Representative McGihon asked the committee to postpone the bill indefinitely so that the CMCA can conduct its study.


BILL:	HB06-1197
TIME:	03:45:10 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 06-1197 indefinitely. The motion passed 10-0.
SECONDED:	McCluskey
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Excused
	Knoedler	Yes
	Liston	Excused
	McCluskey	Yes
	Paccione	Yes
	Penry	Excused
	Welker	Yes
	Cerbo	Yes
	Marshall	Yes
Final YES: 10 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

02:41 PM

The committee adjourned.