Date: 03/01/2006
Final
BILL SUMMARY for HB06-1148
SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS
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01:48 PM -- Call to Order
Senator Tupa, chairman, called the committee to order. He addressed the body and explained that the committee would not take final action on any of the bills heard today.
01:51 PM -- House Bill 06-1148
Senator Tapia, prime sponsor, reviewed the provisions of House Bill 06-1148, concerning a prohibition against the shifting of financial responsibility for negligence in construction agreements. He reviewed the history of the bill, which passed the General Assembly the previous year to be vetoed by the Governor. He compared the provisions of House Bill 06-1148 with House Bill 06-1077 (to be heard later in the afternoon). Senator Johnson asked about the shifting of responsibility among contractors and subcontractors.
01:59 PM -- Theresa Wernimount, representing the Colorado Reform Coalition, testified against the bill. She spoke to the problem that has arisen around sole negligence. She said the coalition is asking that everyone take responsibility.
02:06 PM -- Roger Buelow, representing Mountain States Mutual Company, testified in support of the bill. He said the bill makes it public policy to assign negligence to subcontractors. He distributed a document.
02:11 PM -- Mark Fisher, representing Green Company, testified in support of the bill. He said this bill will help avoid lawsuits and promote competition. He said it is unethical to ask others to be responsible for another party's negligible actions.
02:14 PM -- Diane Hills, representing Diamond Excavating, testified in support of the bill. She spoke to an incident that happened involving her company and issues of indemnity.
02:20 PM -- Robert Wilson, representing Zimkor LLC and the American Subcontractors Association of Colorado, testified in support of the bill. He spoke to the problems with the current state of contracting negligence in Colorado.
02:26 PM -- Narender Kumar, representing himself and the American Council of Engineering Companies, testified in support of the bill. He spoke to an instance where his business was held responsible for a suit that was the fault of a subcontractor. He said this is a reasonable and fair bill, and distributed a document outlining the organization's support (Attachment A).
02:32 PM -- Gilbert Egle, representing the American Subcontractors Association, testified in support of the bill and distributed handouts (Attachments B, C, D, and E).
02:40 PM -- Robert Cooney, representing the Building Owners and Managers Association, testified against the bill. He spoke to the responsibilities of the insurance companies.
02:43 PM -- Amy Hawkins, representing Boulder Roofing, testified in support of the bill. She spoke to the issue as it relates to small and large businesses.
02:47 PM -- Karla Nugent, representing the Independent Electrical Contractors, testified in support of the bill. She said this bill is a necessary piece of public policy. She further explained how this bill would provide for prorated negligence.
02:50 PM -- Rick Richter, representing the Western Pacific Network and the Colorado Association of Homebuilders, testified in opposition to the bill. He spoke to the negative impact this bill could have on members of the association. He said any issues related to indemnification should be resolved. He also spoke to the insurance issue surrounding this legislation. It is his opinion that this bill is not practical.
03:01 PM -- Robert Jackson, representing the African American Construction Council, testified in opposition to the bill. He also testified in support of House Bill 06-1077.
03:03 PM -- Dennis Jakubowski, representing the American General Contractors, testified in opposition to the bill. He said there currently is no major problem in commercial construction surrounding indemnity.
03:06 PM -- Mike Williams, representing the Building Owners and Managers Association of Colorado, testified in opposition to the bill. He spoke to the impact this bill would have on insurance and litigation. He also spoke to the unintended consequences of this bill.
03:13 PM
The bill was taken off the table.