Senate Committee on State, Veterans & Military Affairs (02/09/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON STATE, VETERANS & MILITARY AFFAIRS

Date:	02/09/2009	ATTENDANCE

Time:	01:42 PM to 05:38 PM	Boyd	X
		Cadman	X
Place:	SCR 356	Schultheis	X
		Bacon	X
This Meeting was called to order by		Williams	X
	Senator Williams

This Report was prepared by
	Geoff Johnson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB09-028 SB09-023 SB09-099 SB09-095 SB09-037		Postponed Indefinitely Postponed Indefinitely Amended, Referred to Appropriations Amended, Referred to Appropriations Amended, Referred to Appropriations

01:43 PM

Senator Williams, Chair, called the meeting to order. She put Senate Bill 09-028 on the table for reconsideration. The committee acted on Senate Bill 09-028 at its previous meeting of February 4, 2009.

01:43 PM -- Senate Bill 09-028


BILL:	SB09-028
TIME:	01:43:50 PM
MOVED:	Williams
MOTION:	Having voted on the prevailing side, moved to reconsider committee action of February 4, 2009, to refer Senate Bill 09-028 to the Committee of the Whole. The motion to reconsider passed on a 5-0-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	Yes
	Schultheis	Yes
	Bacon	Yes
	Williams	Yes

Not Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-028
TIME:	01:44:12 PM
MOVED:	Boyd
MOTION:	Moved that Senate Bill 09-028 be postponed indefinitely. The motion passed on a 3-2-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	No
	Schultheis	No
	Bacon	Yes
	Williams	Yes


Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:46 PM -- Senate Bill 09-023

Senator Schultheis, prime sponsor, reviewed Senate Bill 09-023, concerning the verification of the work eligibility status of new employees through the federal electronic verification program. Witness testimony on Senate Bill 09- 023 was taken on February 4, 2009. Senate Bill 09-023 was on the committee's calendar for action only. Senator Schultheis said that there are an increasing number of employers who would like to participate in the federal E-Verify system. He said that illegal employment of undocumented immigrants hurts poor citizens of the United States the most. He commented on the potential fiscal impact of Senate Bill 09-023.


BILL:	SB09-023
TIME:	02:11:14 PM
MOVED:	Schultheis
MOTION:	Moved a prepared amendment to Senate Bill 09-023 (Attachment A), L.001. The motion passed on a 5-0-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	Yes
	Schultheis	Yes
	Bacon	Yes
	Williams	Yes

Not Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-023
TIME:	02:12:10 PM
MOVED:	Schultheis
MOTION:	Moved that Senate Bill 09-023 be referred to the Committee on Appropriations, as amended. The motion failed on a 2-3-0 roll call vote.
SECONDED:
		VOTE
	Boyd	No
	Cadman	Yes
	Schultheis	Yes
	Bacon	No
	Williams	No

Not Final YES: 2 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-023
TIME:	02:14:08 PM
MOVED:	Williams
MOTION:	Moved that Senate Bill 09-023 be postponed indefinitely. The motion passed on a 3-2-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	No
	Schultheis	No
	Bacon	Yes
	Williams	Yes


Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:14 PM -- Senate Bill 09-099

Senator Morse, prime sponsor, presented Senate Bill 09-099, concerning centralized databases to aid the delivery of state procurement services. He said that it will be difficult to estimate the magnitude of future costs savings that will result from Senate Bill 09-099. He said that Senate Bill 09-099 was initiated by the Colorado Department of Personnel and Administration.

The following persons testified in regard to Senate Bill 09-099:

02:17 PM -- Jim O'Neill, representing the City of Fort Collins, opposed Senate Bill 09-099. He said that the additional vendor and local government fee is unnecessary. Senator Morse noted that these fees are voluntary.

02:25 PM -- Adrienne Benavidez, Director, Division of Finance and Procurement, in the Department of Personnel and Administration, said that Senate Bill -09-099 will modernize purchasing in the state. She described the current purchasing process in Colorado state government. She said that the proposed fee could generate approximately $1.3 million in revenue annually.

02:32 PM -- John Utterback, State Purchasing Director, described "E-Procurement" to the committee, noting that it is "an electronic product and services catalog." He said that a goal of Senate Bill 09-099 is to make the purchasing process as efficient as possible. He said that state price agreements will provide an average 15 percent savings. He said that the proposed system will provide much better information regarding state procurement, and commented on the state of Georgia and Florida's recent adoption of E-procurement. He commented on his experience in creating E-procurement systems.


BILL:	SB09-099
TIME:	02:44:00 PM
MOVED:	Boyd
MOTION:	Moved a prepared amendment to Senate Bill 09-099, L.001 (Attachment B.) The motion passed on a 5-0-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	Yes
	Schultheis	Yes
	Bacon	Yes
	Williams	Yes




Not Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-099
TIME:	02:51:08 PM
MOVED:	Bacon
MOTION:	Moved that Senate Bill 09-099 be referred to the Committee on Appropriations, as amended. The motion passed on a 3-2-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	No
	Schultheis	No
	Bacon	Yes
	Williams	Yes


Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:52 PM -- Senate Bill 09-095

Senator Tapia, prime sponsor, presented Senate Bill 09-095, concerning payment of amounts due under a construction agreement. He said that the Colorado construction industry employs about 9 percent of the state's work force. He said that construction companies must be paid in a timely manner in order to meet payrolls in the industry. He noted that it takes from 53 to 90 days, on average, to receive payment at present in Colorado and that this time frame is problematic given the current state of credit markets. He said that Senate Bill 09-095 would establish a common set of rules for the making of such payments in Colorado. He noted that Senate Bill 09-095 does not apply to single family residential construction. He said that, nationally, 49 states have prompt payment statutes.

The following persons testified in reagrd to Senate Bill 09-095:

03:08 PM -- Pat Ratliff, representing the Colorado Water Congress, opposed Senate Bill 09-095 due to its inclusion of public entities.

03:12 PM -- Jim O'Neill, representing the City of Fort Collins, opposed Senate Bill 09-095, and commented on the city's contract documents. He said that the City of Fort Collins only delays payment on a contract in the case of disputes in billing.

03:15 PM -- John McCormick, representing Quest, opposed Senate Bill 09-095. He said that the requirements of Senate Bill 09-095 would negatively influence current contracting practices of his company.

03:17 PM -- Jim Johnson, representing the GE Johnson Construction and Colorado Concern, opposed Senate Bill 09-095. He said that he supports prompt payment, but that he believes that Senate Bill 09-095 will not stop "bad actors." He said that the bill interferes with private contracting and that prompt pay is not good business practice for the state.

03:20 PM -- David Broadwell, representing the City and County of Denver, said that the city has opposed this legislation in recent years. He questioned whether a statewide solution should be imposed. He commented on the impact that Senate Bill 09-095 would have on the city's contracts.

03:23 PM -- Don Eberle, representing the Special District Association of Colorado, opposed Senate Bill 09-095, and said that it will affect a public entity's control of its projects. He said that the problem of prompt pay for public entities is already addressed in Colorado law.

03:27 PM -- MaryAnn McGeady, representing the Special District Association of Colorado, commented on the impact of the current recession on local governments. She commented on protections for payment of contracts in the public sector. She said that Senate Bill 09-095 will complicate the existing local government process for the payment of contracts.

03:31 PM -- Chris Piper, representing the Denver Water Department, opposed Senate Bill 09-095. He said that Senate Bill 09-095 will result in the payment for contracts before a job may be satisfactorily completed.

03:35 PM -- Amy Harmon, Denver, representing herself, opposed Senate Bill 09-095, and commented on her experiences with payment on an underperforming contract.

03:39 PM -- Gary Megisson, representing the Associated General Contractors of Colorado, commented on receivables due at his company. He said that late payment is a common problem in the industry, and that accounts are much more current in the State of Arizona, a state that has recently adopted the prompt pay practice.

03:47 PM -- David Morrill, representing Concrete Frame Association, Inc., said that prompt payment is an issue in Colorado, and that the current system in the state is not working. He said that these slow payments affect credit and bonding of companies. He said that Senate Bill 09-095 is "a collaboration," and will be good for the Colorado construction industry.

03:51 PM -- Helga Grunerud, representing the Hispanic Contractors of Colorado, she said that there are greater opportunities in the private sector for minority contractors. She said that prompt pay is important for small minority-owned businesses because they have less access to capital.

03:54 PM -- John Meza, representing Meza Construction Company, said that opponents of Senate Bill 09-095 propose to do nothing to address the problem of late payments in Colorado. He said that the City of Fort Collins has a good reputation in regard to prompt payment of contract obligations.

04:02 PM -- John Logan, representing the National Association of Industrial and Office Properties, supported Senate Bill 09-095 and said that the bill was negotiated in good faith.

04:05 PM -- Dave Davia, representing the Colorado Association of Mechanical and Plumbing Contractors, said that 52 to 90 days is an excessive period of time for a company to forgo payment. He said that this issue is "large and systemic."


BILL:	SB09-095
TIME:	04:34:03 PM
MOVED:	Boyd
MOTION:	Moved a prepared amendment to Senate Bill 09-095, L.001 (Attachment C). The motion passed on a 4-1-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	Yes
	Schultheis	No
	Bacon	Yes
	Williams	Yes


Not Final YES: 4 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-095
TIME:	04:35:27 PM
MOVED:	Boyd
MOTION:	Moved that Senate Bill 09-095 be referred to the Committee on Appropriations, as amended. The motion passed on a 3-2-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	No
	Schultheis	No
	Bacon	Yes
	Williams	Yes


Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:41 PM -- Senate Bill 09-037

Senator Kopp, prime sponsor, presented Senate Bill 09-037, concerning funding for certain worker's compensation funds.

The following persons testified in regard to Senate Bill 9-037:

04:53 PM -- Cary Kennedy, State Treasurer, commented on the balances in the Major Medical Fund and the Subsequent Injury Fund. She said that Senate Bill 09-037 may result in a future forced sale of securities and a corresponding loss of capital.

05:07 PM -- Henry Sobanet, representing the Denver Metro Chamber of Commerce, supported Senate Bill 09-037.

05:11 PM -- Richard Giles, representing the Worker's Compensation Coalition of Colorado, supported Senate Bill 09-037, and asked that this "tax be eliminated."

05:14 PM -- John Berry, representing the Worker's Compensation Coalition of Colorado, said that, in 2002, $170 million was taken from these funds just before the funds were about to be determined actuarially sound. He supported Senate Bill 09-037.

05:17 PM -- Dennis Jakubowski, representing the Associated General Contractors of Colorado, supported Senate Bill 9-037.

05:18 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry, commented on the deterioration of the Colorado economy and said that Senate Bill 09-037 will relieve a burden on industry in the state.

05:20 PM -- Sandra Solin, representing the Northern Colorado Business Alliance, commented on the impact of these assessments on business.

05:24 PM -- Tony Gagliardi, representing the National Federation of Independent Business, said that small business are at "the lowest point of optimism" that has occurred in the last 35 years. He said that many small businesses are laying off employees and need assistance.

05:28 PM -- Henry Sobanet, said that proposed amendment L.002 (Attachment D) would render the program "cash-in cash-out." He said that the amendment would permit proposed transfers from these funds to meet the state's current budget crisis to proceed.

05:33 PM -- Cary Kennedy, State Treasurer, expressed concern with the impact of the proposed amendment on the TABOR (Taxpayer's Bill of Rights) reserve requirement.


BILL:	SB09-037
TIME:	05:36:55 PM
MOVED:	Cadman
MOTION:	Moved a prepared amendment to Senate Bill 09-037, L.002 (Attachment D.) The motion passed without objection.
SECONDED:
		VOTE
	Boyd
	Cadman
	Schultheis
	Bacon
	Williams


Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB09-037
TIME:	05:37:44 PM
MOVED:	Cadman
MOTION:	Moved that Senate Bill 09-037 be referred to the Committee on Appropriations, as amended. The motion passed on a 5-5-0 roll call vote.
SECONDED:
		VOTE
	Boyd	Yes
	Cadman	Yes
	Schultheis	Yes
	Bacon	Yes
	Williams	Yes


Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:38 PM

The committee meeting adjourned.