Senate Committee on Business, Labor and Technology (03/04/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY

Date:	03/04/2009	ATTENDANCE

Time:	01:35 PM to 02:16 PM	Foster	X
		Harvey	X
Place:	SCR 354	Mitchell	*
		Scheffel	*
This Meeting was called to order by		Tochtrop	X
	Senator Veiga	Heath	X
		Veiga	X
This Report was prepared by
	Hillary Smith
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1108 HB09-1076		Amended, Referred to the Committee of the Whole Referred to Appropriations

01:35 PM -- House Bill 09-1108

Senator Boyd presented House Bill 09-1108. The bill adds employee protections and employer penalties to the Colorado Wage Act. It addresses situations when an employee's paycheck is not honored by the employer's bank, causing the employee's account to have insufficient funds to pay bills. Senator Boyd explained her reasons for sponsoring the bill. She stated that it is the responsibility of an employer to issue checks that will be honored, and discussed the problems caused when paychecks are not honored. She described the protections added by the bill.

01:38 PM

Senator Tochtrop made comments about the bill. Responding to a question from Senator Scheffel, Senator Boyd discussed protections already in place and explained why the bill is needed. Senator Scheffel expressed his concerns about the state legislature's involvement in private contracts, and Senator Boyd addressed his concerns. Senator Scheffel raised the possibility that the marketplace would lead employees to avoid employers who do not honor their checks. Senator Boyd noted that the current economic climate makes the situation particularly difficult for employees.

01:42 PM

Senator Heath addressed Senator Scheffel's comments and stated that the relationship between employers and employees is unique. He described situations where an employer may inadvertently write bad checks rather than doing so on a consistent basis. Senator Heath discussed a possible amendment that would limit the penalties in the bill to employers who write bad checks twice or more within a twelve-month period. Discussion ensued among the committee concerning the amendments that had been made by the House of Representatives.

01:46 PM

Senator Foster stated that she liked the bill in its current version, and asked about the degree of oversight given to the Director of the Department of Labor and Employment. Discussion continued among the committee. Senator Veiga offered clarification on the penalty provision of the bill.

01:49 PM

Senator Mitchell noted that a penalty of fifty dollars per day per employee would be a strain on a struggling small business. Senator Foster stated that doing nothing would send a message that it is acceptable for an employer to knowingly write bad checks. Discussion continued among the members of the committee.


BILL:	HB09-1108
TIME:	01:54:36 PM
MOVED:	Heath
MOTION:	Moved a conceptual amendment: Page 2, line 14, strike "if" and substitute "if, two or more times within any twelve-month period,". The motion passed without objection.
SECONDED:
		VOTE
	Foster
	Harvey
	Mitchell
	Scheffel
	Tochtrop
	Heath
	Veiga

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


BILL:	HB09-1108
TIME:	01:55:24 PM
MOVED:	Tochtrop
MOTION:	Moved to refer House Bill 09-1108, as amended, to the Committee of the Whole. The motion passed on a 6-1 roll call vote.
SECONDED:
		VOTE
	Foster	Yes
	Harvey	Yes
	Mitchell	Yes
	Scheffel	No
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:57 PM -- House Bill 09-1076

Senator Tochtrop presented House Bill 09-1076. The bill requires that all types of payments a claimant receives when leaving employment be treated the same in calculating when the claimant can begin receiving unemployment insurance (UI) benefits and the maximum allowable benefit. Under the bill, any payments received are divided by the claimant's average weekly wage to calculate postponement of claim payments on a week for week basis. After the postponement, the claimant receives full benefits. Another provision of the bill is that benefits will not be reduced for claimants who also receive social security (SS) payments. Senator Tochtrop explained the bill.

The following individuals testified:

01:58 PM -- Mike Cullen, Director of the Unemployment Insurance Office within the Colorado Department of Labor and Employment, testified regarding the bill. He stated that the current law is hard to administer and is unfair. He explained the original intent of the law and described the changes made by the bill. He stated that the bill would ensure that everyone is treated fairly. Mr. Cullen and Senator Heath discussed a specific constituent situation. Mr. Cullen continued his explanation, and stated that the bill would reduce the deductions taken from UI benefits for SS payments to zero. He discussed the reasons why such a change would be appropriate.

02:08 PM

Senator Mitchell questioned whether now was the time to change UI benefits calculations, given the strains on the budget. Mr. Cullen discussed the savings that would occur and provided information on the current UI trust fund balance and solvency. He stated that the bill would not endanger the solvency of the fund.

02:11 PM -- Dennis Valentine, representing the American Association of Retired Persons (AARP), testified in favor of the bill. He requested that benefits not be reduced for claimants who also receive SS payments. He stated that the bill would simplify the UI benefit process. Mr. Valentine responded to questions from Senator Heath concerning the number of seniors needing to go back to work.


BILL:	HB09-1076
TIME:	02:15:21 PM
MOVED:	Tochtrop
MOTION:	Moved to refer House Bill 09-1076 to the Committee on Appropriations. The motion passed on a 6-0 roll call vote, with one member excused.
SECONDED:
		VOTE
	Foster	Excused
	Harvey	Yes
	Mitchell	Yes
	Scheffel	Yes
	Tochtrop	Yes
	Heath	Yes
	Veiga	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:16 PM

The committee adjourned.