Date: 02/06/2006

Final
BILL SUMMARY for HB06-1174

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved amendment L.005 (Attachment D). The motion
Moved to refer House Bill 06-1174, as amended, to 		Pass Without Objection
PASS



05:24 PM -- House Bill 06-1174

Representative Soper, prime sponsor, stated that House Bill 1174 requires every person performing construction work on a construction site to be covered by workers' compensation insurance. He stated that the bill was brought up last year and vetoed by the Governor, and that this bill addresses the concerns brought up by the Governor.

05:27 PM -- Rick Richtor, representing the Colorado Association of Home Builders (CAHB), testified against the bill. He stated that it creates an unfair business environment for small businesses. Mr. Richtor responded to a question from the committee about how the labor brokers are separated from sub-contractors. Mr. Richtor clarified that the freedom to elect to not have workers' compensation is taken away from workers in the bill. Mr. Richtor was asked what the alternative is for workers who chose not to be covered under workers' compensation. He responded that an alternative would be private health insurance.

05:36 PM -- Jamie Glonek, representing the Colorado Apartment Association, testified against the bill. He stated that the bill would require the small independent owner of an apartment building to cover a handyman to do some work on their building. Representative Soper responded that the bill excludes routine maintenance workers. Mr. Glonek disagreed.

05:40 PM -- Bob Greene, representing the Colorado Building and Construction Trade Council and the Colorado Laborers District Council, testified in support of the bill. He stated it is a fairness issue and that the bill creates a level playing field by not allowing underbidding.

05:41 PM -- Jim Ballard, owner of Rocky Mountain Drywall, testified in support of the bill. He stated it is a good step at leveling the playing field.

05:43 PM -- John Berry, representing the Workers' Compensation Coalition, testified in support of the bill. He said his members are stating they cannot compete with companies that do not cover their workers under workers' compensation. He said the approach is workable. There was a question from the committee about how the contractors are paid. Mr. Berry explained that it varies from construction site to construction site. There was some committee discussion about a current law that already covers the issue.

05:47 PM -- Dennis Jakubowski, representing the Associated General Contractors of Colorado, testified in support of the bill. He stated there are abuses in calling people independent contractors who really are not. He stated that the bill addresses one of their problems.

05:48 PM -- Representative Soper explained that amendment L.005 clarifies that if subcontractors are carrying workers compensation and the contractor exercises due diligence that they are carrying workers' compensation, then they satisfy the requirement in the bill (Attachment D). Representative Soper stated that it is the responsibility of the bidder to check if the subcontractors are covered.
BILL:HB06-1174
TIME: 05:49:39 PM
MOVED:Balmer
MOTION:Moved amendment L.005 (Attachment D). The motion passed without objection.
SECONDED:Coleman
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:HB06-1174
TIME: 05:52:56 PM
MOVED:Coleman
MOTION:Moved to refer House Bill 06-1174, as amended, to the Committee of the Whole. The motion passed 7-6.
SECONDED:Carroll M.
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
McCluskey
No
Paccione
Yes
Penry
No
Welker
No
Cerbo
Yes
Marshall
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS