Date: 02/13/2006

Final
BILL SUMMARY for HB06-1316

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved amendment L.001 (Attachment B). The motion Pass Without Objection



01:59 PM -- House Bill 06-1316

Representative Solano, prime sponsor, explained House Bill 1316. The bill requires businesses who employ 3,500 or more employees to report the number of employees they have, and the amount they spend on health care for the employees to the Colorado Department of Labor and Employment. The bill creates a penalty for employers who fail to timely submit the information. Additionally, the bill requires employers who have 3,500 or more employees to spend 11 percent on health care for its employees. The committee asked why the bill set the number of employees at 3,500, and the percentage at 11 percent. Representative Solano stated that 11 percent is the national average from the Bureau of Labor Statistics, and 3,500 was a number that she felt matched Colorado. Representative Solano was asked how many employers in Colorado the bill would effect. Representative Solano estimated about 30 Colorado corporations. Representative Balmer disagreed and stated that he only found 27, and listed some of the corporations the bill would effect. There was a question about whether franchises would be covered under the bill.

02:15 PM

Representative Liston asked for clarification on Representative Solano's previous statement that small businesses are picking up the slack on health care for large businesses. Representative Liston stated that the bill could be a disincentive for businesses to stay or locate in Colorado. There was committee discussion that followed on whether the bill would cause large employers that are able to offer more benefits than smaller businesses, to cut back on other programs.

02:24 PM

Chuck Berry, representing the Colorado Association of Commerce and Industry, testified in opposition to House Bill 1316. He stated that many employers want to offer quality health insurance to their employees but cannot afford to. Mr. Berry stated the bill would cost people their jobs, and would violate the Federal Employee Retirement Income Security Act of 1974 (ERISA) that precludes a mandated health care policy. Mr. Berry stated that the bill would penalize companies that are already doing a good job providing health insurance for their employees. There were committee questions pertaining to profit sharing programs. Representative Paccione asked how many companies with over 3,500 employees already offer health insurance. Mr. Berry was asked how he felt about the 11 percent mandate. Mr. Berry believes it would make a significant impact on the businesses affected.

02:31 PM

Mr. Berry said that if companies are forced to offer health care they could move the jobs to another state or just eliminate most of their jobs altogether. Mr. Berry was asked if any specific employers have stated they will leave if this bill passes. He responded that he was not aware of any. There was committee discussion about whether companies should be responsible for employee health care.

02:38 PM

Representative Penry stated that he was concerned that the bill was part of a strategic national effort to force single payer socialized medicine from the bottom up. Mr. Berry agreed. Representative Solano stated that due to the increased dependency on Medicaid, the nation, by default, is coming closer to socialized medicine.

02:45 PM -- Tony Gagliardi, representing the National Federation of Independent Businesses (NFIB), testified in opposition to the bill. He stated that even though the bill only pertains to large businesses, it is the first step in requiring small businesses to require health care as well. He stated that the 80 percent of NFIB members oppose this legislation. Mr. Gagliardi stated that the bill is side stepping the real problem of access to affordable health care. There was committee discussion that followed about small businesses.

02:53 PM -- Chris Howes, representing the Colorado Retail Council, testified in opposition to the bill. Mr. Howes provided statistics on companies that do and do not provide health care to their employees, and the retail industry. Representative Balmer asked for clarification on the growth of retail jobs. Committee discussion ensued about what the effect on businesses and the cost of goods would be if the bill passed.

03:09 PM -- Tom Clarke, Executive Vice President of the Denver Economic Development Corporation, testified in opposition to the bill. He gave three reasons why the Corporation opposes the bill. Mr. Clarke stated that there are 24 businesses in the Denver-metro region that will potentially be effected by the bill. Of those, 16 are companies that will offer the most employment growth. He spoke to the 11 percent mandate on health care.

03:12 PM -- Robin Kniech, representing the Front Range Economic Strategy Center, testified in support of the bill. Ms. Kniech stated that businesses are attracted to education of the workforce, not laws.

03:21 PM -- Sean Caddle and Eva Henry, representing Colorado for Health Care, testified in support of the bill. Mr. Caddle gave some statistics on the number of insured and uninsured workers in Colorado. Eva Henry, testified in support of the bill. She stated that she was a working uninsured and gave a personal story of the struggles she went through.

03:27 PM -- Duncan Harrington, representing the Communication Workers of America, testified in support of the bill. He talked about his employment with Qwest, and stated that the employees' health care at Qwest was maintained despite the hardships of the corporation.

03:30 PM -- Jeannette Galanis, Executive Director of 9 to 5 Colorado, National Association of Working Women, testified in support of the bill. She stated that lack of access to health care is the reason for poverty. She stated that when the uninsured are billed for health care they are billed top dollar. She urged the committee to support the bill and gave her personal account of a hospital she had to pay when she was uninsured.

03:33 PM -- Anna Flynn, retired Safeway Incorporated employee, representing the United Food and Commercial Workers Local 7, testified in support of the bill. She stated that when big corporations fail to provide health care to their employees, these costs are picked up by the taxpayers.

03:36 PM -- Carolyn Siegel, representing the Colorado AFL-CIO, testified in support of the bill. She talked about who is paying for the uninsured workers in Colorado. She spoke about the earlier discussion about a health care mandate created in the bill. Ms. Siegel stated that all the bill is saying is, 11 percent has to be spent on health care, how it is spent is up to the employer. She stated the bill would not violate ERISA, adding that the companies not offering health coverage are getting an unfair advantage.

03:40 PM

Representative Welker asked what the problem was that they are trying to solve. Ms. Siegel stated that the number of employers providing health care in Colorado is decreasing.

03:45 PM

Irysha Boone, representing the United Food and Commercial Workers Local 7, testified in support of the bill. She stated that affordable health care is an issue, and that the bill would hold employers responsible for adequate and affordable health care.

 03:47 PM -- Sam Polizzotto, citizen of Colorado, testified in support of the bill. He gave some examples of companies that have recently gone out of business, and stated that is why many people are applying for and taking the jobs that do not offer health care.

03:49 PM -- Delmar Beverly, a citizen, testified in support of the bill. He stated that many people are out of work because they were laid off, and that is why many people are applying for and taking the jobs that do not offer health care.

03:51 PM -- Lonna Fisher, citizen, testified in support of the bill.

03:52 PM

Representative Solano distributed amendment L.001 (Attachment B). She explained that the amendment cleans up some language by codifying what was done in an earlier section of the bill.
BILL:HB06-1316
TIME: 03:53:25 PM
MOVED:Coleman
MOTION:Moved amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:Carroll M.
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




03:54 PM

Representative McCluskey asked for clarification on computing the 11 percent. He stated it appears to take 11 percent of the total wages of all employees, including part-time and full-time, no matter how many hours they work. He concluded that the bill would give health care to every employee no matter how many hours they work. Representative Solano stated that she would like to work clarifying the issue with him.

Representative Marshall stated that House Bill 1316 could not be acted on today since the fiscal note had not yet been finished for the bill, thus, the bill was taken off the table to be scheduled for Monday, February 20 for action on the bill.