Final
STAFF SUMMARY OF MEETING
AUTO INSURANCE SYSTEM
Date:
10/19/2005
ATTENDANCE
Time:
10:17 AM
to
02:53 PM
Cadman
*
Carroll M.
X
Place:
LSB A
Cerbo
X
Cloer
X
This Meeting was called to order by
Gordon
X
Representative
Coleman
McElhany
X
Tochtrop
X
This Report was prepared by
Wiens
*
Todd Herreid
Veiga
X
Coleman
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed:
Action Taken:
Call to Order
Bill 1
Bill 2
Bill 3
Bill 4
Bill 5
Bill 6
Bill 7
Bill 8
Bill 9
Bill 10
-
-
-
-
-
-
-
-
-
-
10:19 AM -- Call to Order
Representative Coleman called the meeting to order. She discussed the procedures that the committee would follow in discussing, amending, and voting on proposed legislation. She also indicated that the committe would skip some bill drafts if amendments were in the process of being drafted by staff from the Office of Legislative Legal Services (OLLS) or if there were questions pending regarding amendments to provisions of specific bills. She clarified that the committee could only approve eight bills for consideration by the Legislative Council.
10:24 AM -- Bill 1
Christy Chase of OLLS described the major provisions of Bill 1 (Attachment A). The bill adds emergency medical care coverage to the list of required coverages for auto insurance policies issued in Colorado. She also described changes to the previous draft that was reviewed by the committee. Senator McElhany had a question regarding the costs of implementing the bill and whether a fiscal note had been prepared. Christy Chase indicated that a fiscal note had not been prepared.
BILL:
Bill 1
TIME:
10:25:38 AM
MOVED:
Tochtrop
MOTION:
Refer Bill 1 to Legislative Council for approval. Representative Cadman proposed an amendment to the bill. Committee discussion ensued. The motion for an amendment failed for lack of a second. The motion on Bill 1 then passed 7-3.
SECONDED:
Carroll M.
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Yes
Wiens
Yes
Veiga
No
Coleman
Yes
Not Final YES:
7
NO:
3
EXC:
0
ABS:
0
FINAL ACTION:
PASS
10:33 AM
Representative Cadman proposed an amendment to Bill 1. Specifically, he wanted to change certain wording on page 2, line 15 of the draft bill to cover only "medically" necessary emergency medical care, rather than "reasonable, necesary, and accident-related emergency medical care". The motion failed due to lack of a second. Representative Carroll spoke in opposition to the amendment.
Senator Gordon had a question regarding the amendment.
Senator Wiens had a question on language used in the prompt pay statutes. In particular, he wanted to know if the prompt pay statutues referred to reasonably necessary medical care or medically necessary care. Christy Chase of OLLS responded that the prompt pay statutes do not use either the terms medically or reasonably necessary
medical care.
BILL:
Bill 1
TIME:
10:34:10 AM
MOVED:
Cadman
MOTION:
Page 2, line 15 strike "reasonable," and add "medically" necessary; motion failed due to a lack of a second.
SECONDED:
VOTE
Cadman
Carroll M.
Cerbo
Cloer
Gordon
McElhany
Tochtrop
Wiens
Veiga
Coleman
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
TIE
10:42 AM -- Bill 2
Christy Chase of OLLS described the major provisions of Bill 2 (Attachment B). Bill 2 adds a $100 surcharge for driving without a valid license and for driving without required auto insurance coverage. Revenue from the additional surcharge would be deposited into the Emergency Medical Services Account within the Highway Users Tax Fund. Representative Coleman had questions regarding certain provisions of the bill. In particular, she asked what the current cost or fine for the infraction specified in the bill? Christy Chase indicated that the current cost or fine was either $35 or $15, depending upon the type of infraction. Senator Tochtrop had questions regarding the TABOR impacts of Bill 2. Representative Cadman suggested using other funding sources to support the trauma system, rather than increasing fines that go towards supporting the existing infrastructure of the trauma system. Senator Carroll had questions as to how money in the fund would be distributed.
10:45 AM -- Bill 2
The committee considered an amendment to Bill 2. Representative Cloer moved an amendment to Bill 2 (Attachment J) and discussed the provisions. The amendment specifies that the additional money deposited into the Emergency Medical Services Account from the $100 surcharge can only be used for reimbursement of trauma care expenses and emergency medical care costs. The surcharge could not be used for administrative expenses.
BILL:
Bill 2
TIME:
10:53:57 AM
MOVED:
Cloer
MOTION:
Amendment to Bill 2, page 2, line 10; specifies that the surcharge can only be used for reimbursement on trauma care expenses, not administrative expenses.
SECONDED:
Veiga
VOTE
Cadman
Yes
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
Yes
Tochtrop
Yes
Wiens
Yes
Veiga
Yes
Coleman
Yes
Not Final YES:
10
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
PASS
BILL:
Bill 2
TIME:
10:54:00 AM
MOVED:
Cloer
MOTION:
Refer Bill 2, as amended, to Legislative Council
SECONDED:
Veiga
VOTE
Cadman
No
Carroll M.
No
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
No
Wiens
No
Veiga
Yes
Coleman
Yes
Not Final YES:
5
NO:
5
EXC:
0
ABS:
0
FINAL ACTION:
TIE
The committee failed to refer Bill 2 to Legislative Council on a 5-5 vote.
11:00:22 AM -- Bill 6
Duane Gall of OLLS described the provisions of Bill 6 (Attachment C). He indicated that the content of Bill 6 was completely revised compared to the prior draft. The bill allows a benefit provider to seek repayment from a person injured in a motor vehicle accident who recovers damages from a third-party who is at fault in the accident. The bill specifies certain conditions for repayment. Representative Cloer and Senator Gordon had questions on the provisions of the bill. Representative Cadman also had a question on Page 4, line 24-26. Duane Gall of OLLS responded to Representative Cadman's question as well as the previous questions of Representative Cloer and Senator Gordon. The committee delayed voting on the bill until later in the meeting when some of the questions could be answered more fully. Representative Cerbo and Senator Gordon agreed to sponsor the bill in the House and Senate, respectively.
11:02 AM -- Bill 5
Kris Forrestal of OLLS described the provisions of Bill 5 (Attachment D), which requires that the prompt pay provisions of health insurance expenses apply to claims made as a result of injuries suffered in a motor vehicle accident. Representative Coleman had a question on the prompt pay provisions of the bill. Senator Viega responded that she was not aware of any problems concerning prompt pay for medical payments coverage.
BILL:
Bill 5
TIME:
11:04:59 AM
MOVED:
Veiga
MOTION:
Refer Bill 5 to Legislative Council
SECONDED:
Coleman
VOTE
Cadman
Yes
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
Yes
Tochtrop
Yes
Wiens
Yes
Veiga
Yes
Coleman
Yes
Final YES:
10
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
PASS
11:06 AM -- Bill 3
Christy Chase of OLLS described the provisions of Bill 3 (Attachment E). There were only slight changes from the prior draft. The bill requires auto insurance policies to provide a minimum amount of medical payments coverage, unless it is denied in writing by the insured. Insurance carriers must provide certain disclosures to the insured if they deny medical payments coverage. Representative Cadman had questions on the disclosure requirements noted on Page 4 of the bill, lines 15-20. Representative Cadman also had questions regarding the disclosure requirements on lines 10-23, Page 4. Representative Cloer proposed a conceptual amendment suggested by Christy Chase of OLLS, that lines 10-23, page 4 be phrased in the positive rather the negative. In particular, the disclosure could indicate that if medical payments coverage is accepted, then passengers in a person's vehicle would be covered. Representative Carroll had questions regarding medical payments coverage for passengers in an at-fault vehicle. Representative Coleman had questions regarding the $5,000 level of medical payments benefits noted on page 3, line 16, and the connection between Bills 3 and 4, both of which concern disclosure requirements for auto insurance carriers. The committee vote on Bill 3 was delayed until later in the meeting.
11:21 AM -- Bill 4
Kris Forrestal described the provisionsof Bill 4 (Attachment F). The bill requires the Insurance Commissioner to promulgate rules regarding uniform disclosure requirements for auto insurance policies issued in the state. Senator Viega described the major differences between the disclosure provisions of Bills 3 and 4. Representative Cadman had questions on page 5, lines 26-27 of the bill, regarding the initialization requirements. In particular, he wanted to know how this would affect on-line or electronic disclosures.
BILL:
Bill 4
TIME:
11:30:12 AM
MOVED:
Coleman
MOTION:
Refer Bill 4 to Legislative Council
SECONDED:
Veiga
VOTE
Cadman
Yes
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Yes
Wiens
Yes
Veiga
Yes
Coleman
Yes
Final YES:
9
NO:
1
EXC:
0
ABS:
0
FINAL ACTION:
PASS
11:31 AM -- Bill 7
Kris Forrestal of OLLS desscribed the provisions of Bill 7 (Attachment F). The bill prohibits the use of credit scoring for auto insurance underwriting purposes. Representative Coleman set Bill 7 aside until later in the meeting.
11:33 AM -- Bill 8
Kris Forrestal of OLLS described the provisions of Bill 8 (Attachment G). The bill establishes a Colorado Consumer Insurance Board to represent the public interest in insurance matters. Representative Coleman distributed amendment L.001 to the bill (Attachment H), which was described by Kris Forrestal of OLLS. Representative Cloer and Senator Viega had questions regarding the amendment to Bill 8. Senator Tochtrop also had questions regarding the amendment, and Representative Cloer moved a conceptual amendment to the amendment. Representative Cloer wanted to clarify in the amendment that indirectly owning stocks through mutual funds should not preclude a person from serving on the board. The committee voted 10-0 to accept Representative Cloer's conceptual amendment to Representative Coleman's amendment L.001.
BILL:
Bill 8
TIME:
11:43:37 AM
MOVED:
Cloer
MOTION:
Amend amendment L.001, lines 7-13. The conceptual amendment would clarify that only direct stock holdings will preclude a person from serving on the board. Stocks held via mutual fund ownership would be exempted. The motion passed 10-0.
SECONDED:
Tochtrop
VOTE
Cadman
Yes
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
Yes
Tochtrop
Yes
Wiens
Yes
Veiga
Yes
Coleman
Yes
Not Final YES:
10
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
PASS
BILL:
Bill 8
TIME:
11:45:59 AM
MOVED:
Tochtrop
MOTION:
Moved amendment L.001
SECONDED:
Coleman
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Yes
Wiens
No
Veiga
Yes
Coleman
Yes
Not Final YES:
7
NO:
3
EXC:
0
ABS:
0
FINAL ACTION:
PASS
The committee voted 7-3 to pass Representative Coleman's amendment L.001 to Bill 8. However, Senator Gordon requested that the final vote on Bill 8 lay over until later in the meeting.
11:49 AM -- Bill 10
Kris Forrestal of OLLS described the provisions of Bill 10 (Attachment I), which was suggested by a constituent of Representative Mark Larson. The bill specifies that health insurance coverage is primary for any person injured in a motor vehicle accident. The bill was moved by Representative Coleman, but died due to a lack of a second.
BILL:
Bill 10
TIME:
11:51:07 AM
MOVED:
Coleman
MOTION:
Refer Bill 10 to Legislative Council, died due to lack of second.
SECONDED:
VOTE
Cadman
Carroll M.
Cerbo
Cloer
Gordon
McElhany
Tochtrop
Wiens
Veiga
Coleman
Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
TIE
12:02:57
Recess.
02:17 PM -- Bill 7
The committee came back to order following the lunch recess to discuss Bill 7.
BILL:
Bill 7
TIME:
02:19:26 PM
MOVED:
Carroll M.
MOTION:
Refer Bill 7 to the Legislative Council for approval. The motion failed 2-4-4.
SECONDED:
Coleman
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Excused
Cloer
Excused
Gordon
Yes
McElhany
Excused
Tochtrop
Excused
Wiens
No
Veiga
No
Coleman
No
Final YES:
2
NO:
4
EXC:
4
ABS:
0
FINAL ACTION:
FAIL
02:20 PM -- Bill 3
The committee returned to discussion of Bill 3. Christy Chase, OLLS, described the provisions of a proposed amendment concerning lines 12-23 on page 4 of the bill. Representative Carroll explained that the amendment would clarify the conditions under which passengers may be subject to exposure in a motor vehicle accident. Representative Coleman asked questions of the bill sponsor regarding the amendment.
BILL:
Bill 3
TIME:
02:26:16 PM
MOVED:
Carroll M.
MOTION:
Amend Bill 3, page 4, line 12, after "insured" insert "or passengers in the insured's motor vehicle." On line 23, strike "accident" and substitute "accident if the insured driver is at fault in the accident." The motion passed 7-2-1.
SECONDED:
Veiga
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Excused
Wiens
Yes
Veiga
Yes
Coleman
Yes
Not Final YES:
7
NO:
2
EXC:
1
ABS:
0
FINAL ACTION:
PASS
02:28 PM -- Bill 8
The committee then returned to discussion of Bill 8, as amended.
BILL:
Bill 8
TIME:
02:28:06 PM
MOVED:
Coleman
MOTION:
Refer Bill 8, as amended, to the Legislative Council for approval. The motion passed 5-4-1.
SECONDED:
Carroll M.
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
No
Gordon
Yes
McElhany
No
Tochtrop
Excused
Wiens
No
Veiga
Yes
Coleman
Yes
Final YES:
5
NO:
4
EXC:
1
ABS:
0
FINAL ACTION:
PASS
02:29:00 -- Bill 3
The committee considered Bill 3.
BILL:
Bill 3
TIME:
02:29:06 PM
MOVED:
Carroll M.
MOTION:
Refer Bill 3, as amended, to the Legislative Council for approval. The motion passed, 7-2-1.
SECONDED:
Veiga
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Excused
Wiens
Yes
Veiga
Yes
Coleman
Yes
Final YES:
7
NO:
2
EXC:
1
ABS:
0
FINAL ACTION:
PASS
02:30 PM -- Bill 6
The committee renewed discussion of Bill 6.
BILL:
Bill 6
TIME:
02:33:11 PM
MOVED:
Cerbo
MOTION:
Refer Bill 6 to the Legislative Council for approval. The motion failed 4-5-1.
SECONDED:
Coleman
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
No
Gordon
Yes
McElhany
No
Tochtrop
Excused
Wiens
No
Veiga
No
Coleman
Yes
Final YES:
4
NO:
5
EXC:
1
ABS:
0
FINAL ACTION:
FAIL
02:33:05 -- Bill 9
The committee then considered Bill 9.
BILL:
Bill 9
TIME:
02:34:28 PM
MOVED:
Cloer
MOTION:
Refer Bill 9 to Legislative Council
SECONDED:
Carroll M.
VOTE
Cadman
No
Carroll M.
Yes
Cerbo
Yes
Cloer
Yes
Gordon
Yes
McElhany
No
Tochtrop
Excused
Wiens
Yes
Veiga
No
Coleman
No
Final YES:
5
NO:
4
EXC:
1
ABS:
0
FINAL ACTION:
PASS
02:45 PM
The committee assigned prime sponsors for both houses to each referred bill. The committee recessed briefly to determine the resolution to Representative Cadman's question regarding the number of votes necessary to refer the proposed bills. Representative Coleman determined that under the rules, a majority of committee members present would constitute a positive vote. Bills 8 and 9 were thus passed on 5-4-1 votes.
02:53 PM
The committee adjourned.