Final
BILL SUMMARY for SB05-142

HOUSE COMMITTEE ON JUDICIARY

Votes:
Action Taken:
Move Amendment L.010 (Attachment I). The motion p
Move Amendment L.011 (Attachment J). The motion p
Move Amendment L.012 (Attachment K). The motion w
Refer SB 05-142, as amended, to the Committee of t		Pass Without Objection
Pass Without Objection
TIE
PASS


03:17 PM -- Senate Bill 05-142

The chairman announced that testimony for proponents and opponents of SB 05-142 would be limited to 45 minutes per side (additional time was added to account for the witnesses' responses to questions and comments from committee members). Representative Vigil, the prime sponsor of SB 05-142, Concerning Pro Rata Liability Provisions in Construction Agreements, summarized the bill's provisions. Committee members were provided with a letter of support for the bill from the Professional Land Surveyors of Colorado (Attachment G), a fact sheet on the bill (Attachment H), Amendment L.010 (Attachment I), Amendment L.011 (Attachment J), and Amendment L.012 (Attachment K). Representative Vigil explained that the bill represents a bottom-line compromise among those in the industry: whoever is responsible for the damage or injury is financially liable for it, and no other party can assume or be assigned that liability. He responded to questions from the committee.

The following people testified on the bill:

03:20 PM -- Mr. Mike Williams, representing Wood, Ris, & Hames and the Building Owners & Managers Association (BOMA), and Mr. Dan Minzer, representing Continuum Partners and the National Association of Industrial & Office Properties, spoke in opposition to the bill. Mr. Williams elaborated on potential problems should the bill be adopted. Mr. Minzer commented on the same. Both witnesses responded to questions from committee. Committee members were provided with BOMA's position on the bill (Attachment L).

03:45 PM -- Mr. Doug Friednash, and Mr. Mike McCurdy, both representing Fairfield & Woods, spoke in opposition to the bill. Mr. Friednash described his concerns with the bill and its effect on the industry and litigation. Mr. McCurdy described how the bill will impact various parties involved in a project, as well as innocent third parties, and suggested gaps in insurance coverage that may result. Mr. McCurdy responded to questions from the committee. Discussion ensued.

04:03 PM -- Mr. Rick Richter, and Ms. Mary Pierce, both representing the Colorado Association of Homebuilders, spoke in opposition to the bill. Mr. Richter spoke in support of amendments to eliminate broad-form indemnification. He described some potential effects of passing the bill and answered questions from the committee. Ms. Pierce also responded to questions and comments from the committee.

04:33 PM -- Mr. Jim Bosshart, representing the Association of General Contractors of Colorado, spoke in opposition to the bill. He stated support for eliminating broad-form indemnification and spoke about fairness issues. Mr. Bosshart also answered questions from the committee.

04:46 PM -- Mr. Patrick Hilleary, representing Brookfield Properties and BOMA, spoke in opposition to the bill. He spoke to issues raised in previous testimony.

04:55 PM -- Mr. Rob Cooney, representing Preferred Painting, Inc., spoke in opposition to the bill. He discussed his satisfaction as a small business with the existing system. He then asked how liability will be determined under the bill's provisions.

04:59 PM -- Ms. Theresa Wernimont, Mr. Richard Forsberg, and Mr. Gary Engen, all representing the American Subcontractors Association and the Colorado Construction Reform Coalition (CCRC), and Mr. Randy Sewald, representing the International Electrical Contractors (IEC) and the CCRC, came to the table together in support of the bill. Ms. Wernimont responded to prior testimony. She indicated that numerous contractors and insurers support the bill. Mr. Forsberg refuted concerns raised by the opposition and described some of the bill's provisions. He and Mr. Engen responded to questions from the committee. Mr. Sewald spoke about the responsibilities of various parties to a contract and their respective authority over insurance coverage. He responded to questions from the committee. Ms. Wernimont and Mr. Engan responded to questions regarding liability in particular scenarios. Mr. Forsberg responded to questions from the committee.

05:31 PM -- Mr. Michael Levchik and Mr. Tim Van Stelle, both representing the Associated Builders & Contractors, spoke in support of the bill and provided the committee with a contractor/project manager's perspective. Mr. Levchik stated that the bill brings about the best benefit for the industry as a whole. He answered questions regarding the coverage in his contracts and how the bill will effect this coverage. Mr. Van Stelle indicated support for the bill as a solution to the concerns of a number of parties in the industry.

05:39 PM -- Mr. Bob Greene, representing the Colorado Building & Construction Trades Council, spoke in support of the bill and the concept of limited liability contracts.

05:41 PM -- Mr. Mark Hamouz, representing himself and the ACEC-CO, spoke in support of the bill. Committee members were provided with a letter of support from the ACEC-CO (Attachment M) and a letter of support from the American Institute of Architects (Attachment N). Mr. Hamouz responded to earlier testimony.

05:46 PM -- Mr. Gary Frisch, representing the Professional Independent Insurance Agents of Colorado, Inc., spoke in support of the bill. He addressed issues raised in previous testimony.

05:50 PM -- Mr. Narender Kumar, representing the ACEC-CO, spoke in support of the bill. Committee members were provided with information about insurance provisions (Attachment O). Mr. Kumar described his experience with negotiations and establishing contracts with contractors.


05:58 PM

The chairman closed the public testimony portion of the hearing, and the committee began considering amendments.
BILL:SB05-142
TIME: 05:58:46 PM
MOVED:Carroll M.
MOTION:Move Amendment L.011 (Attachment J). The motion passed without objection.
SECONDED:McGihon
VOTE
Boyd
Brophy
Decker
Harvey
Hefley
Jahn
Judd
Kerr
McGihon
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:SB05-142
TIME: 06:00:14 PM
MOVED:McGihon
MOTION:Move Amendment L.010 (Attachment I). The motion passed without objection.
SECONDED:Boyd
VOTE
Boyd
Brophy
Decker
Harvey
Hefley
Jahn
Judd
Kerr
McGihon
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:SB05-142
TIME: 06:01:50 PM
MOVED:McGihon
MOTION:Move Amendment L.012 (Attachment K). The motion was withdrawn after the chair ruled it was a settled question.
SECONDED:Hefley
VOTE
Boyd
Brophy
Decker
Harvey
Hefley
Jahn
Judd
Kerr
McGihon
Carroll M.
Carroll T.
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE

Committee members were provided with Amendment L.013 (Attachment P). The chairman ruled that portions of L.013 were a settled question, and ruled the amendment out of order.


06:07 PM

Representative Vigil made closing comments on the bill.
BILL:SB05-142
TIME: 06:08:09 PM
MOVED:Hefley
MOTION:Refer SB 05-142, as amended, to the Committee of the Whole. The motion carried on a vote of 8-3.
SECONDED:McGihon
VOTE
Boyd
Yes
Brophy
No
Decker
No
Harvey
No
Hefley
Yes
Jahn
Yes
Judd
Yes
Kerr
Yes
McGihon
Yes
Carroll M.
Yes
Carroll T.
Yes
Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



06:09 PM

The committee adjourned.