Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS

Date:03/01/2006
ATTENDANCE
Time:01:48 PM to 06:32 PM
Fitz-Gerald
X
Johnson
X
Place:SupCt
Lamborn
X
May R.
X
This Meeting was called to order by
Windels
X
Senator Tupa
Groff
X
Tupa
X
This Report was prepared by
Leslie Herod
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB06-1148
HB06-1077
SB06-191		Laid Over
Laid Over
Laid Over


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.

03:16 PM -- House Bill 06-1077

03:21 PM

Senator Veiga, prime sponsor, reviewed the provisions of Senate Bill 06-1077, concerning risk-shifting provisions in a private construction contract that address the indemnification of a person against liability for damages caused by the sole negligence of the indemnified person. She said this bill would outlaw broad forms of indemnification, but does not go as far as House Bill 06-1148.

03:28 PM -- Karla Nugent, representing the Independent Electrical Contractors, testified in opposition to the bill. She spoke to the role of subcontractors.

03:32 PM -- Rich Forsberg, representing the American Subcontractors Association, testified in opposition to the bill. He said this bill would allow for risk-shifting.

03:40 PM -- Robert Wilson, representing the American Subcontractors Association, spoke in opposition to the bill. He said this bill only provides a "band-aid fix" to the problem.

03:44 PM -- Mark Fisher, representing Green Company testified in opposition to the bill. He spoke to the responsibility of all parties involved in a dispute.


03:47 PM -- Diane Hills, representing Diamond Excavating, testified in opposition to the bill. She spoke to the litigation costs associated with the bill.

03:49 PM -- Theresa Wernimout, representing the American Subcontractors Association, testified in opposition to the bill. She spoke to the broad-form negligence requirements and distributed a document (Attachment F).

03:55 PM -- Roger Buelow, representing Mountain States Mutual, testified in opposition to the bill.

03:58 PM -- Gilbert Egle, representing the American Subcontractors Association, testified in opposition to the bill. He spoke to the standard form used by contractors regarding negligence. He added that sole negligence is hard to prove.

04:03 PM -- Rick Richter, representing the Colorado Association of Home Builders, testified in support of the bill. He said this bill eliminates broad-form indemnification.

04:12 PM -- Patrick Hilary, representing the Denver Metro Building Owners and Mangers Association, testified in support of the bill. He spoke to what might happen if Colorado changed the laws regarding contracting. He said that large contractors will decrease the numbers of subcontractors if they are held responsible for their negligence.

04:18 PM -- Dennis Jakubowski, representing the American General Contractors of America, testified in support of the bill.

04:19 PM -- Mike Williams, representing the Building Owners and Managers Association, testified in support of the bill. He distributed a document (Attachment G).

04:24 PM

Senator Veiga provided closing comments on the bill. She responded to concerns brought up by the opposition regarding risk-shifting.

04:26 PM

This bill was taken off the table.


04:26 PM -- Senate Bill 06-191

Senator Veiga, prime sponsor, reviewed the provisions of Senate Bill 06-191 concerning workers' compensation coverage for an independent contractor working as a driver with a common carrier or contract carrier. She said that this bill would reverse legislation passed in 1992. Further, she testified that the bill would return businesses to Colorado. Senator May asked for clarification of an independent contractor.

04:35 PM -- Greg Fulton, representing the Colorado Motor Carriers Association, testified in support of the bill. He said there are only two other states that require independent contractors to be covered under workers' compensation. He spoke to the regional and national nature of the trucking industry, and how the current law decreases Colorado's ability to compete. Senator Tupa asked about the loss of jobs the current statute caused. Mr. Fulton distributed a document (Attachment H).

04:42 PM -- Michael Kaplan, representing himself, testified in opposition to the bill. He raised opposition to the statement that Colorado has lost jobs. Senator Tupa asked the witness about the fact that other states do not require worker's compensation, and how that affects competitiveness.

04:50 PM -- Todd Amen, representing American Truck Businesses, testified in support of the bill. He spoke to the wages of independent contractors in trucking. Senator Fitz-Gerald spoke to the different types of independent contractors.

04:56 PM -- Bob Greene, representing the Colorado Laborers, testified in opposition to the bill. He spoke to the right of workers to be covered under workman's compensation.

05:02 PM -- Greg Miller, representing HVH Transportation, testified in support of the bill. He said this bill will allow independent contractors the ability to make choices in workers' compensation. He spoke to the competitiveness of the federal market.

05:13 PM -- Ted Texter, representing the Teamsters, testified in opposition to the bill. He spoke to the necessity for all workers in Colorado to have workman's compensation. He said this bill could result in cost-shifting in health care.

05:30 PM -- Mike Werner, representing himself, testified in support of the bill. He spoke to the tax loss if Colorado trucking businesses were to relocate.

05:35 PM -- Michael Kaplan, representing himself as an attorney, testified in opposition to the bill. He spoke to his experiences representing workers on workers compensation claims and responded to liability questions. He specifically spoke to his views on inadequate coverage for workers.

05:43 PM -- Kyle Brown, representing Metro Taxi and Yellow Cab of Denver and Boulder, testified in support of the bill. He said that allowing cab drivers to use the cabs for personal use is important and spoke to the impact of the bill on these drivers, as independent contractors.

05:50 PM -- Edem Archibong, representing Freedom Cab drivers, testified in support of the bill. He said it is extremely hard to pay for workers' compensation as an independent cab driver.

05:57 PM -- Mitchell Davis, representing the Teamsters, testified in opposition to the bill.

05:59 PM -- Marcia Benshoot, representing Pinnacol Assurance, testified in support of the bill. She reviewed the standards defining an independent contractor. She spoke to the issue of cost-shifitng.

06:08 PM -- Tony Milo, representing the Colorado Contractors Association, testified in support of the bill. He spoke to how this is another expense for the taxpayers.

06:10 PM -- Adam Bartolik, representing himself, testified in support of the bill. He spoke to the residual effects of paying for workers compensation has had on his family.


06:16 PM -- Edgar Smith, representing the Colorado Motor Carriers, testified in support of the bill. He spoke to the level of coverage provided by workers' compensation and occupational accident insurance. He responded to questions from the committee regarding coverage levels.

06:21 PM -- John Brown, representing himself, testified in support of the bill. He spoke to cost it takes to run his business as an independent contractor.

06:24 PM -- John Fielding, representing himself, testified in support of the bill. He spoke to his loss of income under the current law.

06:26 PM

Senator Veiga addressed concerns brought up during the hearing, and said she is working on an amendment to satisfy some of the concerns. Senator Tupa took the bill off the table.

06:32 PM

The committee recessed.