House Committee on Economic and Business Development (05/03/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	05/03/2012	ATTENDANCE

Time:	01:38 PM to 03:10 PM	Balmer	X
		Holbert	X
Place:	HCR 0112	Miklosi	E
		Priola	X
This Meeting was called to order by		Singer	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	X
	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:
SB12-086 SB12-177 SB12-027		Referred to Legislative Council Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole

01:38 PM -- Senate Bill 12-086

Representative Szabo, prime sponsor, presented Senate Bill 12-086. The bill creates a legislatively appointed task force to study the cost of regulatory compliance for businesses in Colorado. The task force will consist of nine members appointed by leadership of the Senate and the House of Representatives. Task force membership will include representation from private industry, academia, small or medium business, research and advocacy groups, individuals with expertise in the cost of regulatory compliance, and a Colorado citizen of the State of Colorado. No legislative members will be appointed to the task force.

The task force will review the state's regulatory system and determine the annual cost of compliance by businesses in the state, including: the annual cost of regulatory compliance based on the type of regulation; the cost per employee for all firms; and the cost of compliance per employee based on the size of the firm. The task force must make a written interim report to the General Assembly by August 5, 2013, and issue a final report by August 6, 2014.

The directors of the Legislative Council, the Office of Legislative Legal Services, and the State Auditor may supply staff assistance as deemed appropriate within existing appropriations. If staff assistance is not available within existing appropriations, the staff assistance may only be supplied if moneys become available to the Legislative Department Cash Fund through gifts, grants, or donations from private or public sources. The task force may also accept staff support from the private sector.

01:41 PM

Representative Szabo responded to questions from the committee regarding the makeup of the task force. Representative Tyler asked whether the sponsor would be open to an amendment adding a consumer and a worker to the task force. Representative Wilson asked some questions regarding the scope of the regulation of businesses that will be reviewed. Representative Tyler discussed adding the benefits of regulation to the bill. Representative Szabo distributed a handout from the Small Business Association (Attachment A). Representative Swalm asked about the votes for the bill in the Senate.

01:59 PM -- R.J. Hicks, representing the Metro North Chamber of Commerce, testified in support of the bill. He listed a number of other chambers of commerce and organizations that supported the bill as well. Mr. Hicks talked about the multiple levels of regulation.

02:14 PM -- Jen Boulton, representing Audubon and Trout Unlimited, testified against the bill. Ms. Boulton responded to questions from the committee.

02:30 PM -- Tony Gagliardi, Colorado State Director of the National Federation of Independent Business, spoke in support of the bill and talked about the impact regulations have on the cost of business. Mr. Gagliardi responded to questions from the committee. Representative Soper asked how Colorado compares to other states regarding business regulation.


BILL:	SB12-086
TIME:	02:46:16 PM
MOVED:	Wilson
MOTION:	Moved to adopt amendment L.002 (Attachment B). The chair ruled the amendment does not fit under the title.
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:


BILL:	SB12-086
TIME:	02:51:30 PM
MOVED:	Szabo
MOTION:	Moved to refer Senate Bill 12-086 to the Committee on to Legislative Council. The motion passed on a vote of 9-3.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Excused
	Priola	Yes
	Singer	Yes
	Soper	No
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	No
	Williams A.	Yes
	Wilson	No
	Swalm	Yes
	Liston	Yes

YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:53 PM -- Senate Bill 12-177

Representatives Liston and Pabon, prime sponsors, presented Senate Bill 12-177. Under current law, the Colorado Housing and Finance Authority (CHFA) has the authority to issue revenue bonds on behalf of the unemployment insurance (UI) program in the Colorado Department of Labor and Employment (CDLE). In the event of a bond issuance, Senate Bill 12-177 allows special assessments charged to employers for bond principal repayment to be deposited in the UI Trust Fund rather than paid directly to CHFA, thus allowing these assessments to count toward improving the experience rating of employers. The bill also authorizes assessments for interest and bond costs, conforms UI bonding statutes with CHFA bonding statutes, and accelerates the date for the creation of the Division of Unemployment Insurance to June 1, 2012.

The bill requires that the Governor, State Treasurer, and the Executive Director of the CDLE certify that:

the issuance of bonds is the most cost-effective means for the division to maintain adequate balances in the UI Trust Fund or to repay loan balances;
the amount of money required to maintain adequate balances in the UI Trust Fund or to repay loan balances; and
the amount of bonds to be issued.

In addition, the Executive Director must certify that the issuance of bonds will not:

result in decertification of Colorado's UI program;
impact any cap application; affect the receipt of emergency UI compensation funds;
create an ineligibility for receipt of federal funds; or

result in other penalties or sanctions under the Federal "Social Security Act", or the Federal Unemployment Tax Act.


BILL:	SB12-177
TIME:	03:03:52 PM
MOVED:	Liston
MOTION:	Moved amendment L.003 (Attachment C). 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:	SB12-177
TIME:	03:04:09 PM
MOVED:	Liston
MOTION:	Moved amendment L.004 (Attachment D). 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:	SB12-177
TIME:	03:04:41 PM
MOVED:	Liston
MOTION:	Moved amendment L.005 (Attachment E). 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:	SB12-177
TIME:	03:06:11 PM
MOVED:	Liston
MOTION:	Moved to refer Senate Bill 12-177, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0.
SECONDED:	Szabo
		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

03:08 PM -- Senate Bill 12-027

Representative Ramirez, prime sponsor, presented Senate Bill 12-027. The bill, as amended by the Senate Judiciary Committee, increases notice to certain members of the General Assembly for rules adopted as a result of legislation. Under the bill, the Office of Legislative Legal Services (OLLS) of the Colorado General Assembly, upon adoption of each rule on or after November 1, 2011, as a result of legislation enacted on or after January 1, 2011, is required to provide written notification to the prime sponsors and cosponsors of the enacted legislation, as well as members of the applicable house or senate committee of reference, that a rule has been adopted as a result of the legislation.

The bill also directs that any cost-benefit analyses of rules, as required under current law, be posted on the department's website.


BILL:	SB12-027
TIME:	03:09:28 PM
MOVED:	Priola
MOTION:	Moved to refer Senate Bill 12-027 to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Holbert
		VOTE
	Balmer	Excused
	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: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

03:10 PM

The committee adjourned.