House Committee on Economic and Business Development (02/21/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	02/21/2012	ATTENDANCE

Time:	11:41 AM to 05:36 PM	Balmer	*
		Holbert	X
Place:	HCR 0112	Miklosi	*
		Priola	*
This Meeting was called to order by		Singer	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	*
	Christie Lee	Tyler	X
		Williams A.	X
		Wilson	X
		Swalm	X
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1174 HB12-1288 HB12-1116 HB12-1170 HB12-1134 HB12-1110 HB12-1129		Postponed Indefinitely Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Postponed Indefinitely Postponed Indefinitely Witness Testimony and/or Committee Discussion Only Amended, Referred to Appropriations

11:42 AM -- House Bill 12-1174

Representative Kagan, prime sponsor, presented House Bill 12-1174. The bill prohibits manufacturers and wholesalers of children's products containing bisphenol-A (BPA) from selling or offering those products in Colorado beginning July 1, 2012. As of July 1, 2013, no person, including business entities and government agencies, may sell or provide these products. Children's products are defined as pacifiers, cups, and other containers for food and drink intended for children under the age of three years. The bill does not apply to used children's products. Representative Kagan distributed a fact sheet and a letter of support from the American Academy of Pediatrics (Attachments A and B, respectively).

11:47 AM

Representative Balmer talked about market forces handling this issue and the fact that manufacturers are already slowing their use of BPA. Representative Kagan said while that is true, it is not happening evenly across the board. Representative Soper asked why there is a safety clause in the bill. Representative Tyler asked what scientific evidence there is that BPA is hazardous. Representative Kagan responded to additional questions regarding the Colorado Department of Public Health and Environment and whether there are any labeling requirements for BPA products.

12:00 PM -- Danny Katz, representing the Colorado Public Interest Research Group, testified in favor of the bill. He said the bill would help protect the health of children and that 11 states have already banned BPA from baby bottles and sippy cups. Mr. Katz distributed a handout from the Breast Cancer Funds (Attachment C). Mr. Katz responded to questions from the committee regarding the federal government's involvement in regulating the use of BPA and interstate commerce. A discussion ensued regarding similar regulations on other products and in other states. Representative Swalm cited a letter from the Grocery Manufacturers Association (Attachment D).

12:13 PM -- Dr. Steven Hentges, representing the American Chemistry Council, testified against the bill and distributed a handout of his testimony (Attachment E). Dr. Hentges talked about the use of BPA in various products and the reasoning behind it. Representative Wilson asked whether the amount of BPA can vary in products and how much leaks out and about the products created in China. Representative Liston asked about the number of deaths linked to BPA. Dr. Hentges explained that there have been no deaths linked to BPA. Representative Singer brought up the interstate commerce issue that was discussed earlier.

12:34 PM -- Dr. Scott Phillips, representing the American Chemistry Council, testified against the bill. He mentioned he specializes in medical toxicology. Dr. Phillips mentioned there are about 6,700 studies on this issue and discussed the findings of those studies. Representative Liston asked roughly how much these studies tend to cost. Dr. Phillips said it depends on the type of study and said it can vary from a few thousand to tens of millions of dollars. Dr. Phillips responded to additional questions from the committee regarding the number of these products in Colorado. Representative Singer asked about studies on younger animals. Dr. Phillips stated that the FDA has conducted studies on monkey fetuses.

12:48 PM -- Shayne Madsen, representing the Colorado Association of Commerce and Industry (CACI), testified against the bill. She stated that CACI is in favor for a national standard, but not a state by state standard. Representative Singer asked what type of national standard CACI's national standard it would like to see.


BILL:	HB12-1174
TIME:	12:52:03 PM
MOVED:	Williams A.
MOTION:	Moved to adopt amendment L.001 (Attachment F). The motion passed without objection.
SECONDED:	Singer
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

12:59 PM

Representative Kagan gave some closing remarks on the bill.


BILL:	HB12-1174
TIME:	01:05:02 PM
MOVED:	Tyler
MOTION:	Moved to refer House Bill 12-1174, as amended, to the Committee of the Whole. The motion failed on a vote of 4-8.
SECONDED:	Williams A.
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Excused
	Priola	No
	Singer	Yes
	Soper	Yes
	Swerdfeger	No
	Szabo	No
	Tyler	Yes
	Williams A.	Yes
	Wilson	No
	Swalm	No
	Liston	No

YES: 4 NO: 8 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1174
TIME:	01:06:51 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 12-1174 indefinitely. The motion passed on a vote of 7-5.
SECONDED:	Holbert
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	No
	Soper	No
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	No
	Williams A.	No
	Wilson	No
	Swalm	Yes
	Liston	Yes

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:07 PM -- House Bill 12-1288

Representative Murray, prime sponsor, presented House Bill 12-1288. The bill requires the Governor's Office of Information Technology (OIT) to develop a comprehensive risk assessment to apply to all new information technology (IT) projects in order to assess a project's risk level and to determine whether the project should be classified as a major IT project. The bill also requires OIT to establish project budgets for projects of all sizes. State agencies are required to consult with and obtain OIT approval before undertaking a major IT project. State agencies are further directed to include the following components in the plan for any major IT projects:

a project manager;
the information security requirements and best practices;
a disaster recovery plan;
the inclusion of the project in the agency's business continuity plan;
an independent third party verification and validation of the project; and
a funding strategy for the ongoing maintenance and eventual disposal of the system.

Finally, the bill expands the definition of capital construction to include the purchase of services from OIT.

01:12 PM -- Todd Olson, Chief Financial Officer, Office of Information and Technology, testified in favor of the bill and responded to questions from the committee regarding current law. The committee discussed the impact the bill will have on IT projects.


BILL:	HB12-1288
TIME:	01:25:19 PM
MOVED:	Swalm
MOTION:	Moved to adopt amendment L.004 (Attachment G) . The motion passed without objection.
SECONDED:	Liston
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1288
TIME:	01:27:23 PM
MOVED:	Tyler
MOTION:	Moved to adopt amendment L.001 (Attachment H) . The motion passed without objection.
SECONDED:	Wilson
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1288
TIME:	01:30:56 PM
MOVED:	Swalm
MOTION:	Moved to adopt amendment L.002 (Attachment I). The motion passed without objection.
SECONDED:	Wilson
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1288
TIME:	01:31:13 PM
MOVED:	Szabo
MOTION:	Moved to adopt amendment L.003 (Attachment J). The motion passed without objection.
SECONDED:	Swalm
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1288
TIME:	01:31:46 PM
MOVED:	Wilson
MOTION:	Moved to refer House Bill 12-1288, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0.
SECONDED:	Swalm
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:33 PM -- House Bill 12-1116

Representative Murray, prime sponsor, presented House Bill 12-1116. The bill was previously heard in committee on February 9, 2012, and laid over for action only. The bill adds disclosure requirements to real estate transactions involving the resale of time share properties. Agreements to transfer time share resale interests must include a description of any residual interests retained by the seller, a list of costs for time share resale services, a statement regarding any other person who may use the time share after the interest has been transferred, and various other disclosures. Time share contracts and time share resale services covered by the bill do not include professionals (e.g., attorneys, escrow agents) providing certain transactional services or the developer or association managing a time share community according to an existing plan.

The bill creates a new cause of action under the Colorado Consumer Protection Act for deceptive trade practices. Deceptive trade practices occur when time share resale entities fail to provide disclosures as required by the bill. These time share resale entities may rely upon information provided by the owner, developer, or association managing the time share.


BILL:	HB12-1116
TIME:	01:35:57 PM
MOVED:	Liston
MOTION:	Moved to adopt amendment L.001 (Attachment K). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1116
TIME:	01:36:27 PM
MOVED:	Liston
MOTION:	Moved to adopt amendment L.003 (Attachment L). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1116
TIME:	01:37:01 PM
MOVED:	Liston
MOTION:	Moved to adopt amendment L.008 (Attachment M). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1116
TIME:	01:38:56 PM
MOVED:	Szabo
MOTION:	Moved to refer House Bill 12-1116, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0.
SECONDED:	Liston
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:41 PM -- House Bill 12-1170

Representative Peniston, prime sponsor, presented House Bill 12-1170. The bill requires persons under the age of 18 to have the consent of a parent or legal guardian prior to patronizing an establishment for purposes of using an artificial tanning device. The consenting parent of a minor under 14 years of age must remain on site for the duration of any tanning session. Unless withdrawn by a parent or legal guardian, a consent form is valid for 6 months.

The Department of Public Health and Environment (DPHE) is required to develop a standard consent form. The form must be made available on the DPHE web site and be available for download at no charge. The DPHE must establish guidance on required proof-of-age documentation to be provided by a minor seeking access to a tanning facility or artificial tanning device.

The DPHE may assess a penalty of up to $200 per day if it finds that an owner, employee, or operator has failed to comply with the bill's requirements. Penalty fees are credited to the Tanning Device Education Fund. The State Board of Health may adopt rules, at its discretion, to implement the bill.

01:42 PM

Representative Peniston stated that her bill needed additional work and asked the committee to postpone the bill indefinitely.


BILL:	HB12-1170
TIME:	01:44:12 PM
MOVED:	Soper
MOTION:	Moved to postpone House Bill 12-1170 indefinitely. The motion passed on a vote of 11-0.
SECONDED:	Swalm
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Excused
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:45 PM -- House Bill 12-1134

Representative Pabon, prime sponsor, presented House Bill 12-1134. The bill prohibits employers or their agents from advertising for any job vacancy that includes a requirement for applicants to be currently employed. Employers who violate the provisions of the bill are subject to a penalty of up to $1,000 for the first violation, $5,000 for the second violation, and $10,000 for each subsequent violation. It does not create a private right of action by an aggrieved person against an employer. Representative Pabon explained that people are getting denied the ability to even apply for some jobs.

01:59 PM

Representative Pabon responded to questions from the committee regarding the unemployment situation in Colorado. Representative Pabon clarified that most employers are not doing this and that the bill simply allows . Representative Holbert expressed his concerns with the bill regarding the freedom of employers being able to express themselves.

02:15 PM

The committee recessed.

02:40 PM -- Phil Hayes, representing the Colorado AFL-CIO, testified in support of the bill and distributed a handout from the National Employment Law Project (Attachment N). Mr. Hayes responded to questions from the committee.

02:53 PM -- Michael Kadovitz, representing himself, testified in support of the bill. He talked about his experience being unemployed and underemployed over the last few years. Mr. Kadovitz responded to questions from the committee.

03:04 PM -- Linda Meric, representing 9 to 5, testified in support of the bill. Ms. Meric responded to questions from the committee. The committee discussed the impact the bill will have on Colorado businesses.

03:33 PM -- Kelly Weedimer, representing 9 to 5, testified in support of the bill. She talked about her experience being unemployed over the last few years.

03:45 PM -- Tracey Stewart, representing the Colorado Center on Law and Policy, testified in support of the bill. She talked about a petition that was signed and given to Careerbuilder.com and Monster.com that asked them to remove a posting that stated the unemployed need not apply.

03:51 PM -- Jennifer Levin, representing the Legal Center, testified in support of the bill.


BILL:	HB12-1134
TIME:	03:54:15 PM
MOVED:	Soper
MOTION:	Moved to adopt amendment L.001 (Attachment O). The motion passed without objection.
SECONDED:	Tyler
		VOTE
	Balmer
	Holbert
	Miklosi	Excused
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

03:57 PM

Representative Pabon gave some closing remarks on the bill. Members of the committee also gave some remarks about the bill.


BILL:	HB12-1134
TIME:	04:05:07 PM
MOVED:	Wilson
MOTION:	Moved to refer House Bill 12-1134, as amended, to the Committee of the Whole. The motion failed on a vote of 5-7.
SECONDED:	Soper
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Excused
	Priola	No
	Singer	Yes
	Soper	Yes
	Swerdfeger	No
	Szabo	No
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	No
	Liston	No

YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1134
TIME:	04:11:46 PM
MOVED:	Holbert
MOTION:	Moved to postpone House Bill 12-1134 indefinitely . The motion passed on a vote of 7-5.
SECONDED:	Swalm
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	No
	Soper	No
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	No
	Williams A.	No
	Wilson	No
	Swalm	Yes
	Liston	Yes

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:12 PM -- House Bill 12-1110

Representative A. Williams, prime sponsor, presented House Bill 12-1110. She asked that the bill be laid over. The bill redefines the legal meaning of appraisal management companies (AMC) and establishes a licensure program for AMCs in the Division of Real Estate (division) in the Department of Regulatory Agencies (DORA). An AMC license may be given to an individual or any third party entity that, in connection with an appraisal for a mortgage transaction, oversees a network or panel of certified appraisers. The composition of the Board of Real Estate Appraisers (board) is modified to include a representative of an AMC. To receive a license, AMCs must:

follow application procedures established by the board and pay a fee;
designate a controlling appraiser to be responsible for the licensed activities of the entity;
maintain errors and omissions insurance;
post a surety bond in the amount of $25,000 with the board; and
submit to a fingerprint-based criminal history check for the controlling appraiser and each principal owner of the entity.

The board may deny a license application based on the outcome of the background check, or based on past disciplinary actions against a controlling appraiser or principal owners. The bill details prohibited acts for licensees and gives the division the authority to investigate and take disciplinary actions, including imposing fines up to $2,500 per offense. The bill establishes misdemeanor penalties for both persons and entities that operate without a valid license.

The bill also requires that applicants for a real estate appraiser license, registration, or certification submit to a fingerprint-based criminal history background check and pay the fee. The board may deny the authority to practice based on the outcome of the background check.

04:23 PM -- Jayne Bail, representing the Colorado Association of Mortgage Professionals, testified in support of the bill and distributed a handout on the bill (Attachment P).

The bill was laid over until February 23.

04:35 PM -- House Bill 12-1129

Representative Tyler, prime sponsor, presented House Bill 12-1129. The bill matches the federal funds provided to Small Business Development Centers with state general funds of up to $300,000 per year, for the next two years. If adequate federal funds are available, then the state funds will be distributed to the Office of Economic Development and International Trade (OEDIT), and then redistributed equitably to the Small Business Development Centers for their expenditure, and used to re-establish centers closed since December 2006. Up to 15 percent of the general funds distributed to OEDIT can be used to increase awareness of the centers. Under this bill, OEDIT must report each year to the legislature describing the disbursements, capital formation, and any jobs created by the bill. The Small Business Development Center program of OEDIT receives approximately $1.5 million in federal funds each year, but may need additional funds in order for this $300,000 to be drawn. Representative Tyler listed some organizations that supports the bill, including the Denver Metro Chamber of Commerce and the National Federation of Independent Businesses.

04:45 PM -- Kelly Manning, representing the Office of Economic Development and International Trade, testified in support of the bill. She explained how Small Business Development Centers work.

04:58 PM

Ms. Manning responded to questions from the committee.

05:06 PM -- Dan Clark, representing himself, testified in support of the bill. He talked about the development of Small Business Development Centers.

05:19 PM -- Patrick Crawford and Charlie Berger, representing the Denver Beer Company that just opened in August, testified in support of the bill. They talked about their use of a Small Business Development Center and the return on investment their company has given the community.

05:22 PM -- Todd Matia, representing Stinky Kid Math, a math tutoring company, testified in support of the bill and talked about his use of a Small Business Development Center to start his business.

05:26 PM -- Lynnea Louison, representing her son, who started a business when he was 6 years old, testified in support of the bill. She talked about her experience creating a business plan for her son's business and her use of Small Business Development Centers.

05:31 PM -- Travis Berry, representing the Colorado Competitive Council and the National Federation of Independent Businesses, testified in support of the bill.


BILL:	HB12-1129
TIME:	05:33:16 PM
MOVED:	Tyler
MOTION:	Moved to adopt amendment L.001 (Attachment Q). The motion passed without objection.
SECONDED:	Liston
		VOTE
	Balmer
	Holbert
	Miklosi
	Priola
	Singer
	Soper
	Swerdfeger
	Szabo
	Tyler
	Williams A.
	Wilson
	Swalm
	Liston

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


BILL:	HB12-1129
TIME:	05:35:01 PM
MOVED:	Tyler
MOTION:	Moved to refer House Bill 12-1129 to the Committee on Appropriations. The motion passed on a vote of 10-3.
SECONDED:	Wilson
		VOTE
	Balmer	No
	Holbert	No
	Miklosi	Yes
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	No
	Liston	Yes

YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:36 PM

The committee adjourned.