House Committee on State, Veterans, & Military Affairs (03/21/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Date:	03/21/2012	ATTENDANCE

Time:	01:31 PM to 05:06 PM	Baumgardner	X
		Casso	X
Place:	HCR 0112	Court	*
		Duran	X
This Meeting was called to order by		Joshi	X
	Representative Kerr J.	Liston	X
		Todd	*
This Report was prepared by		Coram	X
	Bo Pogue	Kerr J.	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1211 SB12-093		Postponed Indefinitely Postponed Indefinitely

01:32 PM -- House Bill 12-1211

The committee was called to order. A quorum was present. Representative Jones, prime sponsor, presented House Bill 12-1211, concerning the requirement that a title insurance agent doing business in this state maintain an office within this state that is staffed by the designated responsible producer. Representative Jones provided background on the title insurance business, and explained the effect of the bill. The following persons testified regarding House Bill 12-1211:

01:34 PM -- Mr. Robert Howe, representing the Land Title Association of Colorado, testified in support of the bill. Mr. Howe provided an example of a real property transaction that included extra fees assessed by an out-of-state title company; the transaction included other deficiencies such as improper disclosures. He explained how the bill will help to address such issues by creating avenues of communication between local parties to real estate transactions and out-of-state companies. Mr. Howe responded to questions regarding how requiring a local representative for an out-of-state title company would affect fees charged by the company. He responded to further questions regarding how the physical size of Colorado may alter knowledge of local real estate markets.

01:44 PM

Mr. Howe responded to questions regarding the reasons an out-of-state title company was selected for the real estate transaction he discussed at the beginning of his testimony, and the responsibilities of the realtor in the transaction. Discussion ensued regarding how a title company is selected in a real estate transaction, and the party held liable when a title deficiency is revealed. Mr. Howe responded to questions regarding the physical scope of a responsible title business, and the reasons an out-of-state title company would be selected for a Colorado real estate transaction. Mr. Howe responded to additional questions about the ability of his title company to do business in states other than Colorado, and the licensing required to do business in multiple states.

01:58 PM -- Mr. Richard Evans, representing Stewart Title Company, testified in support of House Bill 12-1211. Mr. Evans explained how the bill would help consumers address concerns with title insurance during real estate transactions. Mr. Evans explained how title companies enter into interstate agreements for title insurance during transactions across state lines, and explained some of the problems associated with using out-of-state companies during transactions. Mr. Evans addressed concerns about the potentially protectionist nature of the bill for existing in-state title companies, and responded to questions about title company requirements in other states similar to those required by the bill. Discussion ensued regarding the number of complaints about title companies filed with the Division of Insurance. Mr. Evans responded to questions regarding how a title company is selected in a real estate transaction.

02:07 PM -- Mr. George Sutherland, representing the Land Title Association of Colorado, testified in support of the bill. Mr. Sutherland discussed the requirements that title companies must adhere to in real estate transactions, and explained how out-of-state title companies are not equipped to navigate Colorado law on these matters. Mr. Sutherland also explained how the bill will ensure that out-of-state companies comply with Colorado's title requirements, leading to more efficient real estate transactions. Mr. Sutherland responded to questions regarding the number of out-of-state and in-state title companies licensed to do business in Colorado, and the differences in title insurance practices among the states. Mr. Sutherland responded to further questions about the number of complaints filed with the Division of Insurance against out-of-state title companies.

02:18 PM

Mr. Sutherland responded to questions about the function of the Division of Insurance in enforcing title insurance requirements. Discussion ensued regarding the preventative nature of the bill, and the benefits of this approach to the consumer.

02:21 PM -- Mr. Jack Pretti, representing the Colorado Association of Realtors, testified in support of House Bill 12-1211. Mr. Pretti discussed the increased number of problems experienced in Colorado based on out-of-state title companies participating in Colorado real estate transactions, and explained the reasons for the increase in problems. Mr. Pretti discussed the increase in complaints about title insurance companies filed with the Division of Insurance, and detailed some of the issues associated with out-of-state title companies doing business in Colorado. Discussion ensued regarding how a title company is selected during a real estate transaction. Mr Pretti explained the definition of "REO" or real estate-owned.

02:32 PM -- Ms. Cindy Compton, representing the Land Title Association of Colorado, testified in support of the bill. Committee members received copies of comments forwarded by Mr. Bob Reece (Attachment A). Ms. Compton read the comments.

02:37 PM -- Ms. Jennifer Waller, representing the Colorado Bankers Association, testified in opposition to House Bill 12-1211. Ms. Waller discussed the anti-competitive nature of the bill, and explained how the market corrects problems associated with title insurance. Ms. Waller responded to questions regarding how a bank would address a complaint brought by a party in a real estate transaction based on the title company being an out-of-state entity. Discussion ensued regarding the number of complaints about out-of-state title companies that are filed with the Division of Insurance, and the number of annual foreclosures in Colorado.

02:41 PM -- Mr. Tim Killcoyne, representing the Real Estate Services Providers Council, testified in opposition to the bill. Mr. Killcoyne explained how existing title insurance regulations provide adequate consumer protections, and detailed the requirements in these regulations. He provided an overview of recent discussions about physical office requirements engaged in by the Colorado Land Title Association, and discussed the protectionist nature of the bill. Mr. Killcoyne discussed potential unintended consequences of passing the legislation. Mr. Killcoyne provided an anecdote about flawed title work produced by a company based in Colorado. Mr. Killcoyne clarified who he represents.

02:52 PM -- Ms. Meghan Pfanstiel, representing the Land Title Association of Colorado, testified in support of House Bill 12-1211. Ms. Pfanstiel explained how title companies are selected in real estate transactions, and discussed the need for consumer protections in these matters. Ms. Pfanstiel addressed issues raised during previous testimony, and provided anecdotes about local title companies correcting deficiencies in title work produced by out-of-state title companies. She discussed the consumer protections that would be created by requiring local representatives for title companies. Discussion ensued regarding the anecdotes cited by Ms. Pfanstiel.

03:05 PM -- Mr. Greg Wolff, representing the Land Title Association of Colorado, testified in support of the bill. Mr. Wolff explained the process for hiring a title insurance company in a real estate transaction, and discussed the anecdote provided by Ms. Pfanstiel.

03:09 PM

Representative Jones explained the effect of prepared amendment L.001 (Attachment B).


BILL:	HB12-1211
TIME:	03:10:24 PM
MOVED:	Todd
MOTION:	Moved prepared amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Court
		VOTE
	Baumgardner
	Casso
	Court
	Duran
	Joshi
	Liston
	Todd
	Coram
	Kerr J.

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:10 PM

Representative Jones explained the effect of prepared amendment L.002 (Attachment C).


BILL:	HB12-1211
TIME:	03:10:43 PM
MOVED:	Todd
MOTION:	Moved prepared amendment L.002 (Attachment C). The motion passed without objection.
SECONDED:	Court
		VOTE
	Baumgardner
	Casso
	Court
	Duran
	Joshi
	Liston
	Todd
	Coram
	Kerr J.

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:11 PM

Representative Jones provided closing remarks in support of House Bill 12-1211. Representative Jones responded to questions about the potential for amending the bill to allow part-time, in-state title company representation. Committee members explained their positions on the bill.


BILL:	HB12-1211
TIME:	03:21:17 PM
MOVED:	Todd
MOTION:	Moved to refer House Bill 12-1211, as amended, to the Committee of the whole with a favorable recommendation. The motion failed on a vote of 4-5.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1211
TIME:	03:21:54 PM
MOVED:	Liston
MOTION:	Moved to postpone indefinitely House Bill 12-1211. The motion passed on a vote of 5-4.
SECONDED:	Joshi
		VOTE
	Baumgardner	Yes
	Casso	No
	Court	No
	Duran	No
	Joshi	Yes
	Liston	Yes
	Todd	No
	Coram	Yes
	Kerr J.	Yes

Final YES: 5 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:22 PM

The committee recessed.

03:31 PM -- Senate Bill 12-093

The committee returned to order. Representative Duran, prime sponsor, presented Senate Bill 12-093, concerning a requirement that a licensed hospital provide notice to patients of any service not provided by the hospital because of moral convictions based on religious beliefs. Representative Duran explained the effect of the bill, and the effect of prepared amendment L.006 (Attachment D). Representative Duran responded to questions regarding the need for the legislation.

03:36 PM

The following persons testified regarding Senate Bill 12-093:

03:36 PM -- Ms. Janet Stephens, representing the Colorado Hospital Association, testified in opposition to the bill. Ms. Stephens discussed the costs that the bill will impose upon hospitals, and the circumstances under which a hospital is required to provide emergency services. Ms. Stephens discussed the patient admission process, and the reporting requirements that hospitals must follow in the area of services provided by the hospitals. Ms. Stephens responded to questions regarding the list of services provided by a given hospital, as maintained by the Department of Public Health and Environment (DPHE). Ms. Stephens responded to questions about inter-hospital agreements that allow for patient transfers in cases where a service is not provided by a hospital. Discussion ensued regarding the need for patient services notifications in cases of medical emergency. Discussion followed regarding the provision of emergency services in rural areas. Representative Duran discussed the types of medical services that are not listed in the DPHE's list of services provided by a given hospital, and explained the effect of amendment L.006.

03:48 PM -- Mr. Ed Kahn, representing the Colorado Center on Law and Policy, testified in support of Senate Bill 12-093. Mr. Kahn explained that the bill would provide needed information to consumers at a small cost to hospitals, and discussed the bill's constitutionality. Mr. Kahn responded to questions about the effect of hospital consolidations on patient notifications.

03:54 PM -- Ms. Lois Schafer, representing the League of Women Voters, testified in support of the bill.

03:55 PM -- Ms. Betty Proctor, representing the Senior Lobby, testified in support of the bill. Ms. Proctor provided examples of seniors who have received end-of-life treatments they did not want. Ms. Proctor responded to questions regarding the inability to transfer certain patients to a different hospital offering a desired range of treatments due to the patients' critical conditions. Discussion ensued regarding living wills.

04:01 PM -- Mr. Bob Semro, representing the Bell Policy Center, testified in support of Senate Bill 12-093. He discussed the benefits of the bill in the area of transparency for patients.

04:04 PM -- Mr. Tim Schultz, representing the Ethics in Public Policy Center, testified in support of the bill. Mr. Schultz discussed the federal Religious Freedom Restoration Act, and a court ruling that preserves the right to practice religion as the practitioners see fit. He compared the circumstances in the court ruling to the bill's requirements, raising first amendment issues. Mr. Schultz responded to questions regarding how prepared amendment L.006 may address his concerns.

04:11 PM -- Ms. Peggy Gonder, representing herself, testified in support of Senate Bill 12-093. Ms. Gonder discussed the circumstances surrounding making end-of-life decisions for her mother. She discussed a situation where a patient was provided a feeding tube by a hospital in opposition to the family's wishes, and explained how the bill would require notification of such practices. Ms. Gonder discussed the minimal costs associated with the bill. Ms. Gonder responded to questions regarding the anecdotes she discussed.

04:19 PM -- Ms. Melinda Reed, representing the American Association of University Women, testified in support of the bill. Ms. Reed provided an anecdote about a child delivery service not provided by a particular hospital.

04:21 PM -- Ms. Jaren Ducker, representing Compassion and Choice, testified in support of the bill. Ms. Ducker discussed the importance of allowing consumers and their families to make informed end-of-life health care choices, and explained how Senate Bill 12-093 would assist in making informed choices. Ms. Ducker listed certain consumer disclosures that should be required of hospitals.

04:26 PM -- Ms. Toni Panetta, representing NARAL Pro Choice Colorado, testified in support of Senate Bill 12-093. Ms. Panetta explained that the bill is a transparency bill, and provided examples of situations in which women would be denied certain reproductive services. Ms. Panetta explained that the bill preserves religious liberty, and that hospitals have an ethical responsibility to inform consumers of the services they provide. She expressed support for a forthcoming amendment.

04:30 PM -- Mr. Mel Sabey, representing Centura Health, testified in opposition to the bill. Mr. Sabey discussed the title of the bill, and commented on changes to the bill and its title that would be made by amendment L.006. He suggested that the bill unconstitutionally targets religious organizations, and explained how broadening the bill's scope would be unworkable due to the burdens that would be placed upon hospitals. Mr. Sabey discussed the potential broadening of the bill's title by amendment L.006, and provided background on the hospital notification requirements pertaining to end-of-life decisions. Mr. Sabey discussed the availability of hospital services throughout the state. Ms. Panetta provided information about the services provided, and not provided, by hospitals throughout the state, as discussed by Mr. Sabey.

04:41 PM

Mr. Sabey discussed the number of hospital beds under ownership by religious organizations in Colorado.

04:42 PM

Representative Duran addressed the issue of the broadening of the title of Senate Bill 12-093 by amendment L.006, and discussed the importance of informing patients about services not provided at hospitals. Representative Duran addressed concerns raised during testimony, and discussed the receipt of public funds by hospitals that do not provide certain services. Discussion ensued as to whether amendment L.006 broadens the title of the bill.


BILL:	SB12-093
TIME:	04:49:25 PM
MOVED:	Duran
MOTION:	Moved prepared amendment L.006 (Attachment D). The motion failed on a vote of 4-5.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL

04:51 PM

Discussion ensued as to whether prepared amendment L.007 (Attachment E) fits under the title of the bill.


BILL:	SB12-093
TIME:	04:51:54 PM
MOVED:	Duran
MOTION:	Moved prepared amendment L.007 (Attachment E). The motion failed on a vote of 4-5.
SECONDED:	Todd
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL

04:52 PM

Representative Duran provided closing remarks in support of Senate Bill 12-093. Members of the committee expressed support for, or opposition to, the bill. Discussion ensued regarding who provides consumers information about the services provided, and not provided, by a given hospital.

05:02 PM

Committee members continued to express support for, or opposition to, Senate Bill 12-093. Representative Duran provided additional closing remarks in support of the bill.


BILL:	SB12-093
TIME:	05:04:57 PM
MOVED:	Duran
MOTION:	Moved to refer Senate Bill 12-093, as amended, to the Committee of the Whole with a favorable recommendation. The motion failed on a vote of 4-5.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	No
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB12-093
TIME:	05:05:28 PM
MOVED:	Baumgardner
MOTION:	Moved to postpone indefinitely Senate Bill 12-093. The motion passed on a vote of 5-4.
SECONDED:	Coram
		VOTE
	Baumgardner	Yes
	Casso	No
	Court	No
	Duran	No
	Joshi	Yes
	Liston	Yes
	Todd	No
	Coram	Yes
	Kerr J.	Yes

Final YES: 5 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:06 PM

The committee adjourned.