Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:02/22/2006
ATTENDANCE
Time:09:49 AM to 12:01 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
X
Liston
X
This Report was prepared by
McCluskey
*
Christie Lee
Paccione
X
Penry
*
Welker
*
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB06-1300
HB06-1329
HB06-1256
HB06-1182
HB06-1340
HB06-1202		Postponed Indefinitely
Postponed Indefinitely
Referred to the Committee of the Whole
Postponed Indefinitely
Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole


09:50 AM -- House Bill 06-1300

Representative Vigil, prime sponsor, presented House Bill 1300 and asked the committee to postpone the bill indefinitely.

BILL:HB06-1300
TIME: 09:50:43 AM
MOVED:Knoedler
MOTION:Moved to postpone House Bill 06-1300 indefinitely. The motion passed on a 10-2 vote.
SECONDED:Paccione
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Excused
Cerbo
Yes
Marshall
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS




09:54 AM -- House Bill 06-1329

Representative Harvey, prime sponsor, explained that House Bill 1329 would allow judges to elect to become members of the state defined contribution plan, instead of the Public Employees' Retirement Association (PERA). The bill was originally heard by the committee on Monday, February 20, 2006. There was discussion about the bill adding to the unfunded liability of PERA. There was also discussion about the judges that came to testify in opposition to the bill. Representative Harvey responded to the testimony stating that there would be no impact on PERA and not many judges would choose the optional plan.
BILL:HB06-1329
TIME: 09:59:11 AM
MOVED:Paccione
MOTION:Moved to lay House Bill 1329 over until May 12. The motion passed 9-4, thus House Bill 1329 was deemed postponed indefinitely.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
Yes
McCluskey
No
Paccione
Yes
Penry
No
Welker
No
Cerbo
Yes
Marshall
Yes
Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS




10:00 AM -- House Bill 06-1256

Representative Buescher, prime sponsor, presented House Bill 1256. He stated that the bill was recommended by the Joint Budget Committee. It would clarify the procedure for calculating state employee salaries to ensure that no additional adjustment is made to compenstate for the fact that salaries were frozen in Fiscal Year 2003-04 at the Fiscal Year 2002-03 level. Representative Carroll expressed some concerns with the bill.

10:04 AM -- Jeff Schutt, representing the Departrment of Personnel and Administration, responded to the committee's questions. There was discussion about whether health care costs increased. Mr. Schutt stated that if their recent proposal goes through they would be at 75 percent for health care funding.

10:09 AM

Mr. Buescher stated the bill cleans up inconsistancies in the law.

BILL:HB06-1256
TIME: 10:10:02 AM
MOVED:Borodkin
MOTION:Moved to refer House Bill 06-1256 to the Committee of the Whole. The motion passed on a 12-1 vote.
SECONDED:Coleman
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS




10:11 AM -- House Bill 06-1340

Representative Benefield, prime sponsor, presented House Bill 1340. She stated that the bill came out of the rules committee. The bill would exempt a person, firm, partnership, or corporation subject to explosive regulation under federal mining law from state permit requirements.

10:13 AM

Jeff Woodhouse, representing the Department of Labor and Employment, responded to committee questions pertaining to what brought about the legislation and why the bill is necessary. Mr. Woodhouse stated that the law is duplicative of the federal law. There was committee discussion on whether the statute should remain as a possible back up to federal law, if in the future the state decides to regulate this area. Mr. Woodhouse responded to committee questions pertaining to the current cost of the program and how the state permitting process works.

10:18 AM

The bill was taken off the table until Mr. Piper from the department could be there to respond to questions.

10:19 AM -- House Bill 06-1182

Representative Ragsdale, prime sponsor, presented House Bill 1182. She stated that the bill would limit the number of certain types of liquor licenses on a per capita basis within each county or city and county (one license for every 5,000 residents). Once the maximum number of available licenses have been issued, new licenses would only be issued to persons who transfer an existing license for premises that are equivalent in total square footage to the total square footage of the premises operated under the existing license.


10:20 AM

The committee asked Representative Ragsdale to explain the problem that brought about this legislation. She explained the problem of large businesses buying out liquor licenses and putting small businesses out of business. She stated the bill protects the small business owners.

10:24 AM -- Kevin Bommer, representing the Colorado Municipal League (CML), testified in opposition to the bill. He distributed a handout about the CML's position (Attachment A). Mr. Bommer stated the bill infringes on the authority granted to local licensing authorities. He added that there are already local tools to prevent undue concentrations of liquor stores.

10:29 AM

There was discussion about the cost of a liquor license now, as opposed to if the bill passes. Mr. Bommer stated that the current transfer fee, application fee, and renewal fees would all stay the same. However, if a business wants to sell the business and transfer the license, the cost of selling the business would increase dramatically. There was committee discussion about how liquor licenses are currently issued. Mr. Bommer responded that it is not apportioned by population, it is driven by the people's will.

10:41 AM -- Zack Ford, representing the Colorado Licensed Beverage Association, testified in support of the bill. He stated that in some cases the local governments do not listen to the citizens when they oppose a new liquor license. Mr. Ford responded to committee questions about rural counties and how they can comply with the per capita limit. Representative Knoedler stated that for every 5,000 residents there can be one liquor license, and he feels that would place a burden on rural counties. There was discussion about limiting access to the industry.

10:29 AM

Representative Penry talked about a recent situation in Palisade, Colorado where there was a huge citizen outcry in opposition to a liquor store that was close to a school. He stated that despite the outcry, the city and licensing authorities pressed on and approved the license anyway.
BILL:HB06-1182
TIME: 10:51:30 AM
MOVED:Penry
MOTION:Moved amendment L.001 (Attachment B). The amendment would remove from statute the local licensing authority's ability to eliminate or reduce the distance restrictions between liquor stores and schools. The motion passed on a 9-3 vote.
SECONDED:Marshall
VOTE
Balmer
Yes
Borodkin
No
Butcher
Excused
Carroll M.
Yes
Coleman
No
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
No
Marshall
Yes
Not Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS



BILL:HB06-1182
TIME: 10:59:43 AM
MOVED:Liston
MOTION:Moved to refer House Bill 06-1182, as amended, to the Committee of the Whole. The motion failed on a 5-8 vote.
SECONDED:Coleman
VOTE
Balmer
No
Borodkin
No
Butcher
Yes
Carroll M.
No
Coleman
Yes
Knoedler
No
Liston
Yes
McCluskey
No
Paccione
No
Penry
Yes
Welker
No
Cerbo
No
Marshall
Yes
Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB06-1182
TIME: 11:01:45 AM
MOVED:Knoedler
MOTION:Moved to postpone House Bill 06-1182 indefinitely. The motion passed on an 8-5 vote.
SECONDED:McCluskey
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
Yes
Coleman
No
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
No
Welker
Yes
Cerbo
No
Marshall
No
Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS




11:02 AM -- House Bill 06-1340

Dick Piper, representing the Department of Labor and Employment, Division of Oil and Public Safety, explained to the committee why the bill was brought up. There was committee discussion about leaving the state licensing power in place.
BILL:HB06-1340
TIME: 11:08:49 AM
MOVED:McCluskey
MOTION:Moved to refer House Bill 06-1340 to the Committee of the Whole. The motion passed on a 13-0 vote.
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
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS




11:12 AM -- House Bill 06-1202

Representative T. Carroll, prime sponsor, presented House Bill 1202. He stated that the bill would preclude the imposition of fiduciary duties and obligations on a financial institution or its officers, directors, shareholders, employees, or agents with respect to a depositor, borrower, guarantor, or surety unless the financial institution has expressly agreed to such duties and obligations in writing. Representative T. Carroll was asked to explain what a fiduciary duty is.

11:15 AM

There was discussion about whether allowing banks to get rid of fiduciary duties in writing would allow them to destroy fiduciary duties that already exist through other case law.

11:23 AM -- Barbara Walker, representing the Independent Bankers of Colorado, testified in support of the bill. She stated that the bill is an extension of the statute of frauds. She explained that historically attorneys have added to their list of claims against financial institutions, and that there was a fiduciary duty between the consumer and the lender. She stated that the appellate courts have not ever upheld that there was a fiduciary duty so the bill limits frivolous lawsuits. Ms. Walker was asked when a lender would create a fiduciary duty under the bill. She responded that there is no fiduciary duty so they would not. Representative T. Carroll explained the four situations where a fiduciary duty would exist.

11:36 AM -- David Emerick, representing HSBC, testified in support of the bill. He talked about a conceptual amendment that would include in the definition of financial institution operating affiliates and subsidiaries of those financial institutions.

11:38 AM -- Pete Kirchof, representing the Colorado Credit Union League, testified in support of the bill. He stated that there is uncertainty in the law today and the intent of the bill is to clarify that uncertainty. He responded to a question about when a fiduciary duty would exist.

11:42 AM

Representative M. Carroll expressed her concerns with the bill and stated that she feels it should be clarified in law whether financial institutions should be clarified in law whether financial institutions do or do not have a fiduciary duty in these circumstances. Representative T. Carroll explained that there is no control over the person by a financial institution, only a money and therefore a fiduciary duty does not exist.
BILL:HB06-1202
TIME: 11:47:57 AM
MOVED:Penry
MOTION:Moved a conceptual amendment that would add to the definition of financial institution, or an operating subsidiary or affiliate of such bank, savings and loan association, or credit union. The motion passed on a 10-3 vote.
SECONDED:Knoedler
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
No
Marshall
Yes
Not Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB06-1202
TIME: 11:52:46 AM
MOVED:Coleman
MOTION:Moved to refer HB 06-1202, as amended, to the Committee of the Whole. There was additional committee discussion about the bill as amended. The motion passed 12-1.
SECONDED:Balmer
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS



12:01 PM

The committee adjourned.