Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR
Date:03/30/2005
ATTENDANCE
Time:11:17 AM to 12:44 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
Massey
*
Todd Jorgensen
McCluskey
X
Paccione
X
White
X
Cerbo
X
Marshall
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB05-095
HB05-1193
Amended, Referred to the Committee of the Whole
Postponed Indefinitely


11:18 AM -- Senate Bill 05-095

Representative Buescher introduced SB05-095 which expands the definition of limited winery to include persons who produce wine from agricultural products other than grapes and fruit, such as honey. The bill also attempts to clarify limits on crop utilization and production in response to litigation in other states. Licensed limited wineries and licensed manufacturers may use a label on bottles that states that the products used to make the wine are grown in Colorado.

11:22 AM --
Matt Cook, representing the Colorado Liquor Enforcement Division, testified in support of the bill. Mr. Cook testified that the bill is the result of a collaborative effort between the division and the wine industry.

11:25 AM --
Matt Cookson, representing the Winery of Holy Cross Abbey, testified in opposition to the bill. Mr. Cookson testified that he opposes the labeling provision of the bill. The new label requirements represent a cost burden to the industry. Representative Buescher added that an amendment he will offer addresses this concern.


11:29 AM

Representative Buescher introduced amendment L.009 (Attachment A). Representative Buescher and stated that amendment L.009 makes the labeling provision consistent with, rather than more restrictive than, federal law regarding labeling and it corrects drafting errors.


11:30 AM --
Mark Beran, representing Medovina Winery, testified in support of the bill. Mr. Beran testified that the bill resolves several problems in the current statute regarding limited wineries. He testified that the labeling requirement provides information regarding the origin of the grapes or other fruit used in the wine. Mr. Beran testified that the provision was brought forth by local Colorado growers interested in promoting locally grown products.

11:36 AM --
John Garlich, representing Brook Cliff Vineyards, testified in support of the bill. Mr. Garlich believes that the industry can resolve the problem with the labeling provision after the law passes. He testified that there may be other means to provide information regarding the origin of the ingredients.

11:39 AM --
Doug Caskey, representing the Colorado Wine Industry Development Board, testified in support of the bill. Mr. Caskey testified regarding the value of the work done by the Wine Board in developing this legislation. Mr. Caskey believes that the industry will be able to resolve the issue over labeling. He testified that amendment L.009 provides for consistency with federal law regarding labeling.

11:45 AM --
David Myers, representing Redstone Meadery and the International Mead Association, testified in support of the bill. Mr. Myers provided the committee with information about the mead industry. He believes that the bill allows the mead industry to equitably participate in the Colorado market along with the rest of the wine industry.

11:48 AM --
Fred Strothman, representing Centre Cellars, testified in opposition to the bill. Mr. Strothman supports all provisions of the bill except the labeling provision. Mr. Strothman testified that the labeling requirement would require that he discard his current labels and make new ones. He believes this will be very costly. Mr. Strothman provided the committee with copies of two letter that summarize his position (Attachments B and C). Mr. Strothman responded to questions from the committee.

12:00 PM --
J.P. Sicotte, representing Cottonwood Cellars, testified in opposition to the bill. Mr. Sicotte does not support the labeling provision. He believes that the outcome of industry negotiations on rules regarding labeling is too vague at this time.



12:04 PM -- Matt Cook returned to discuss the concerns with the labeling provision. Mr. Cook clarified that the requirement was initiated by the industry. Colorado grape growers want to insure that if a winery represents to consumers that it uses Colorado grapes, that it indeed does. Mr. Cook testified that the United States constitution allows Colorado to be more strict than federal law regarding labeling requirements. Representative Buescher made additional comments regarding compromises that have been achieved within the industry through amendment L.009. Mr. Cook and Representative Buescher responded to questions from the committee.
BILL:SB05-095
TIME: 12:11:04 PM
MOVED:Marshall
MOTION:Moved amendment L.009 (Attachment A). The amendment passed without objection.
SECONDED:Paccione
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:SB05-095
TIME: 12:12:01 PM
MOVED:White
MOTION:Moved that SB05-095 be referred, as amended, to the Committee of the Whole with a favorable recommendation. The motion passed 10-3.
SECONDED:Marshall
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
Yes
Massey
Yes
McCluskey
No
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


12:15 PM -- House Bill 05-1193

Representative Green presented HB05-1193 which requires small group health insurance carriers to offer the same basic and standard health plans and premiums to Multiple Employer Welfare Arrangements (MEWA) as offered to small employers. The committee first heard the bill on February 21. The bill was scheduled for action only on March 14. The bill was laid over at that time in order for Representative Green to prepare an amendment. The bill was scheduled for action only on March 23 but was laid over again. Representative Green asked the committee to consider amendment L.004 (Attachment D).
BILL:HB05-1193
TIME: 12:15:33 PM
MOVED:Marshall
MOTION:Moved amendment L.004 (Attachment D) Amendment L.004 clarifies that the bill pertains to fully insured multiple employer welfare arrangements (MEWAs) rather than just self-funded MEWAs. The amendment passed without objection.
SECONDED:Coleman
VOTE
Balmer
Borodkin
Butcher
Carroll M.
Coleman
Knoedler
Liston
Massey
McCluskey
Paccione
White
Cerbo
Marshall
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:HB05-1193
TIME: 12:18:10 PM
MOVED:Carroll M.
MOTION:Moved amendment L.002 (Attachment E). Amendment L.002 exempts from the provisions of the bill those health maintenance organizations (HMOs) that provide services only in limited areas within the state. Kristen Forrestal, Legislative Legal Services staff and drafter of amendment L.002, responded to questions from the committee. Some members of the committee requested clarification regarding which companies this amendment would exempt and which that it would not. Ms. Forrestal stated that the statute does define limited service areas as there are currently nine service areas in the state. The amendment would exempt HMOs that do not offer services in a particular service area. The amendment passed 9-4.
SECONDED:Cerbo
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
Yes
Paccione
Yes
White
Yes
Cerbo
Yes
Marshall
Yes
Not Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



12:31 PM

Representative Green made closing remarks and responded to questions from the committee. She distributed informational materials that provide data on the small group insurance market in Colorado (Attachment F) and data on the insured and uninsured in Colorado (Attachment G).
BILL:HB05-1193
TIME: 12:40:17 PM
MOVED:White
MOTION:Moved that HB05-1193, as amended, be referred to the Committee of the Whole with a favorable recommendation. The motion failed 6-7.
SECONDED:Butcher
VOTE
Balmer
No
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
No
Liston
No
Massey
No
McCluskey
No
Paccione
Yes
White
No
Cerbo
Yes
Marshall
No
Not Final YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB05-1193
TIME: 12:41:32 PM
MOVED:Coleman
MOTION:Moved that HB05-1193 be Postponed Indefinitely. The motion passed 9-4.
SECONDED:Balmer
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
No
Carroll M.
No
Coleman
Yes
Knoedler
Yes
Liston
Yes
Massey
Yes
McCluskey
Yes
Paccione
No
White
Yes
Cerbo
No
Marshall
Yes
Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS