House Committee on Business Affairs and Labor (01/16/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	01/16/2006	ATTENDANCE

Time:	02:15 PM to 05:39 PM	Balmer	X
		Borodkin	X
Place:	HCR 0107	Butcher	X
		Carroll M.	X
This Meeting was called to order by		Coleman	X
	Representative Marshall	Knoedler	*
		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:
Motorist Insurance Database Sunset Board of Architects Sunset		Draft Bill Recommended for Introduction Draft Bill Recommended for Introduction

02:18 PM -- Sunset Review of the Colorado Motorist Insurance Identification Database Program

Bruce Harrelson, Director of the Office of Policy, Research and Regulatory Reform, Colorado Department of Regulatory Agencies (DORA), came to the table to answer any questions about the Uninsured Motorist Database sunset report (Attachment A). The House Business Affairs and Labor Committee conducted an initial sunset hearing on this topic on November 17, 2005. Representative Marshall asked Mr. Harrelson to briefly explain the report to the committee again because there were two new members on the committee since the initial hearing in November. In response, Mr. Harrelson called Robert Holden, the author of the report, to the table to go through the DORA recommendations.

02:18 PM -- Robert Holden briefly explained each of the recommendations from DORA's sunset report. Mr. Holden responded to questions from the committee regarding the cost of the program. He explained that the program is paid for by a 50-cent surcharge per motorist. Mr. Holden responded to additional questions from the committee.

02:37 PM -- Joan Vecchi, Director of Motor Vehicles, Colorado Department of Revenue, came to the table to respond to questions. She talked about how the Uninsured Motorist Database was developed to work in sync with a new type of administrative driver's license revocation or suspension. Ms. Vecchi explained how the database allows law enforcement officers to query if a driver does or does not have insurance. If they do not, the officer can, at that time, do an administrative suspension. Ms. Vecchi responded to questions from the committee regarding the effectiveness of the program. In response to a question from the committee, Ms. Vecchi stated it would make more sense and save approximately $1 million dollars a year if the program were brought under the Department of Revenue rather than contracting it out to a private vendor. In response to Ms. Vecchi's comments, Representative Butcher discussed an amendment (Attachment B) to the draft bill (Attachment C) that would bring the database in-house. Mr. Holden and Ms. Vecchi responded additional questions.

03:07 PM -- Philip Casey, General Manager, Explore Information Services, the vendor for the database program, came to the table to testify. He gave a brief history of the database program and explained Explore's role in the program. He added that with the database, Colorado's uninsured driver rate has decreased. He responded to Ms. Vecchi's comments on bringing the program in-house and explained why he disagreed with her comments that it would save the state money to do so. Mr. Casey responded to questions from the committee regarding the accuracy of the insurance company compliance reports Explore creates. Mr. Casey stated that he feels the database needs to expand beyond just stating if a person is insured or uninsured. He suggested that the database should also include whether the person has ignored their first notice that they have no insurance from the state. Representative Liston asked if Explore has been asked to add this extra information and if they are prepared to add it if asked. Mr. Casey stated Explore has not been asked to add the additional information, but they are prepared to do so if asked. Mr. Casey concluded his testimony.

03:31 PM -- Bill Imig, representing the Property and Casualty Insurer's Association, and Allstate Insurance, explained what the database can and cannot do and how the program works with regards to the compliance reports that are prepared by Explore about the insurance companies. He also explained that 89 percent of vehicles are being matched as insured by Explore. He explained that the other 11 percent come up as unmatched by the database. He explained that a car can come up as unmatched in the database when it is insured in another state but driven here in Colorado, or if a vehicle is unregistered but has insurance. Mr. Imig responded to committee questions and concluded his testimony.

03:43 PM -- Rich Gebhardt, representing State Farm clarified the statistical evidence in the sunset report that seems to indicate that State Farm is not compliant. He explained that Explore's compliance reports are inaccurate. Mr. Gebhardt offered some suggestions on how to fix these inaccuracies in the system. He responded to committee questions and concluded his testimony.


BILL:	Motorist Insurance Database Sunset
TIME:	04:00:04 PM
MOVED:	Butcher
MOTION:	moved to recommend that the bill concerning the sunset review of the Colorado Motorist Insurance Identification Database Program be drafted and introduced in the 2006 session. The motion passed 13-0. Chairman Marshall indicated that Representative Butcher would be the prime House sponsor of the bill. Co-sponsors are: Representatives Borodkin, Carroll, Marshall, and Paccione.
SECONDED:	Coleman
		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


BILL:	Motorist Insurance Database Sunset
TIME:	04:04:18 PM
MOVED:	Butcher
MOTION:	Amendment L.002 (Attachment D). The committee discussed the amendment. Representative Carroll stated that the committee would like the actual cost-saving data when it becomes available. The amendment was adopted on an 8-5 roll call vote.
SECONDED:	Paccione
		VOTE
	Balmer	No
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	No
	McCluskey	No
	Paccione	Yes
	Penry	No
	Welker	No
	Cerbo	Yes
	Marshall	Yes
Not Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:19 PM -- Sunset Review of the Colorado State Board of Examiners of Architects

Brian Tobias, Senior Policy Analyst, Department of Regulatory Agencies (DORA) explained the DORA sunset report (Attachment E). He talked about what architects do and why they are licensed. He stated that DORA recommends the continuation of the Architect Board. Mr. Tobias explained each section of the draft bill to continue the regulation of architects (Attachment F). Mr. Tobias stated that the bulk of the bill is the of combining the State Board of Examiners of Architects with the State Board of Licensure for Professional Engineers and Professional Land Surveyors, and the renumbering and restructuring of the applicable statutes. At the request of the committee, Mr. Tobias explained why DORA recommended that the statute be changed to say "licensed architect" rather than "architect" and responded to questions about that issue. The committee asked questions about the notice requirement portion of the bill and why the Department decided to strike the language that regulated the offering of gifts by architects. Mr. Tobias responded that DORA did not feel it was its place to regulate how architects promote their business. Mr. Tobias concluded his testimony.

04:51 PM -- John Yonushewski, Cheri Gerou, and Cornelius DuBois testified together on behalf of the American Institute of Architects (AIA). Mr. Yonushewski stated he was representing the Colorado component of the AIA. He stated that the AIA overall is in favor of the DORA's recommendations. Mr. Yonushewski explained that the AIA is luke warm on the recommendation to combine the boards because it can lead to inefficiency by the board due to the higher work load. He also stated the AIA is opposed to recommendation four, regarding the protection of the term licensed architects versus the term architect. There was more committee discussion about the term architect versus licensed architect. The committee asked what the AIA's position is on the bill striking the regulation of gifting by architects. Mr. DuBois responded that it is already covered in the ethical standards for architect.

05:03 PM -- Sheri Gerou, stated that the AIA would like to continue the Architect Board and listed the other recommendations the AIA agrees with. She reiterated that the AIA is opposed to the recommendation that changes the term architect to licensed architect. Representative Carroll asked Ms. Gerou about her thoughts on striking the gifting regulation from statute. Ms. Gerou stated that gift giving is covered in the ethical standards of the AIA. Representative Carroll stated that currently, the statute has an enforcement mechanism for gifting and if that is removed and given to the board, then the board will have the power.

05:08 PM -- Cornelius (Kin) DuBois also spoke to recommendation number four concerning changing the term architect. He explained that none of the 55 jurisdictions that regulate architects have two terms for architect and he believes it would cause confusion. Mr. DuBois offered some suggestions to the committee for some amendments to the draft bill. He thanked DORA for their efforts and concluded his testimony.

05:12 PM -- Marc Hamouz, Past-President of the American Council of Engineering Companies distributed a position statement of the Council (Attachment G). He stated the position statement was based on the DORA report and not the draft bill. Mr. Hamouz explained that the Council agreed with most of the report but disagreed with the changing the term architect to licensed architect and the repeal from the grounds for discipline the requirement that licensees report to the Board other licensees who have violated the act. Mr. Hamouz responded to questions from the committee.

05:20 PM -- Craig Coronato, representing the Colorado Council of Landscape Architects testified in support of the bill. Mr. Coronato stated that he opposes the recommendation to change the term architect to licensed architect.


BILL:	Board of Architects Sunsets
TIME:	05:23:35 PM
MOVED:	Balmer
MOTION:	Moved to recommend that the bill concerning the sunset review of the Colorado State Board of Examiners of Architects be drafted and introduced in the 2006 session. The motion passed 12-0. Chairman Marshall indicated that Representative Balmer would be the prime House sponsor of the bill.
SECONDED:	Knoedler
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	Yes
	Paccione	Yes
	Penry	Yes
	Welker	Excused
	Cerbo	Yes
	Marshall	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:24 PM -- There was a brief discussion about the members of the board and the language in the bill on page five that states that three of the members must be citizens of the United States and whether that should pertain to all thirteen members. Representative Butcher also stated that she would be interested in having one board member from each congressional district of the state.


BILL:	Board of Architects Sunsets
TIME:	05:26:14 PM
MOVED:	Balmer
MOTION:	Amendment L.003 (Attachment H). The amendment was adopted without objection.
SECONDED:	Knoedler
		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:	Board of Architects Sunsets
TIME:	05:27:08 PM
MOVED:	Butcher
MOTION:	Amendment L.004 (Attachment I). Jery Payne, who drafted the draft bill, responded to questions about the amendment. The amendment passed 11-2.
SECONDED:	Paccione
		VOTE
	Balmer	Yes
	Borodkin	Yes
	Butcher	Yes
	Carroll M.	Yes
	Coleman	Yes
	Knoedler	Yes
	Liston	Yes
	McCluskey	No
	Paccione	Yes
	Penry	Yes
	Welker	Yes
	Cerbo	No
	Marshall	Yes
Not Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	Board of Architects Sunsets
TIME:	05:31:14 PM
MOVED:	Carroll M.
MOTION:	Moved to delete recommendation number five of the sunset report out of the draft bill. This recommendation would have repealed from the grounds for discipline the requirement that licensees report to the board other licensees who violate the law.
SECONDED:	Penry
		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

05:39 PM -- The committee adjourned.