Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:02/17/2009
ATTENDANCE
Time:09:34 AM to 10:02 AM
Balmer
X
Bradford
X
Place:HCR 0112
Gagliardi
X
Liston
X
This Meeting was called to order by
Priola
X
Representative Rice
Ryden
X
Scanlan
X
This Report was prepared by
Soper
X
Christie Lee
Stephens
X
Casso
X
Rice
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1117
HB09-1224
HB09-1108		Postponed Indefinitely
Amended, Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole


09:34 AM -- House Bill 09-1117

Representative Frangas, prime sponsor, presented House Bill 09-1117 concerning the authority to recapture unearned compensation given to persons in a publicly traded business entity's governance. HB09-1117 prohibits giving unearned compensation to a principal of a publicly traded business entity if the business is undercapitalized or is reasonably expected to become undercapitalized as liabilities and debts mature. A principal is defined to mean one of the top five highest-paid employees or contractors of a business entity whose total annual compensation exceeds $1 million.

An action may be brought in district court by a shareholder, creditor, receiver, assignee, trustee, or the Attorney General to recover the prohibited payment. The bill authorizes damages and reasonable attorney fees for violations of the principal's fiduciary duty. Retaliation against any person for reporting an alleged violation to the Attorney General is prohibited. A person who retaliates could be liable for treble damages plus reasonable attorney fees to the person subject to the retaliation.


09:35 AM

Representative Frangas said he drafted amendment L.005 to address the Colorado Association of Commerce and Industry's concerns (Attachment A). He said the amendment did not fully address their concerns so he would like the committee to pass amendment L.005 and refer the bill to the Judiciary Committee. The committee discussed their positions on the bill.






BILL:HB09-1117
TIME: 09:40:54 AM
MOVED:Casso
MOTION:Moved amendment L.005 (Attachment A). The motion failed 8-3.
09HouseBus0217AttachA.pdf
SECONDED:Gagliardi
VOTE
Balmer
No
Bradford
Yes
Gagliardi
Yes
Liston
No
Priola
No
Ryden
No
Scanlan
No
Soper
No
Stephens
No
Casso
Yes
Rice
No
Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB09-1117
TIME: 09:42:42 AM
MOVED:Casso
MOTION:Moved to refer House Bill 09-1117 to the Committee on Appropriations. The motion failed 9-2.
SECONDED:Gagliardi
VOTE
Balmer
No
Bradford
No
Gagliardi
Yes
Liston
No
Priola
No
Ryden
No
Scanlan
No
Soper
No
Stephens
No
Casso
Yes
Rice
No
Not Final YES: 2 NO: 9 EXC: 0 ABS: 0 FINAL ACTION: FAIL




BILL:HB09-1117
TIME: 09:43:45 AM
MOVED:Balmer
MOTION:Moved to postpone House Bill 09-1117 indefinitely. The motion passed 8-3.
SECONDED:Stephens
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
No
Liston
Yes
Priola
Yes
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
Yes
Casso
No
Rice
No
Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


09:44 AM -- House Bill 09-1224

 Representative Schaffer, prime sponsor, presented House Bill 09-1224 concerning a prohibition on the consideration of gender in setting rates for individual health insurance policies. This bill prohibits insurance companies from using gender as a factor in determining the rate for an individual health insurance policy. Representative Schaffer distributed amendment L.003 (Attachment B). She explained that after meeting with stakeholders, she would like to study this issue further before passing legislation. Representative Schaffer said the amendment would require the Health Care Task Force to examine and make recommendations concerning issues raised in House Bill 09-1224 regarding gender discrimination in individual health insurance.

09HouseBus0217AttachB.pdf


















BILL:HB09-1224
TIME: 09:47:51 AM
MOVED:Gagliardi
MOTION:Moved amendment L.003 (Attachment B). The motion passed 10-1.
SECONDED:Priola
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
Yes
Liston
Yes
Priola
Yes
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
No
Casso
Yes
Rice
Yes
Not Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS
BILL:HB09-1224
TIME: 09:48:43 AM
MOVED:Gagliardi
MOTION:Moved to refer House Bill 09-1224, as amended, to the Committee of the Whole. The motion passed 10-1.
SECONDED:Priola
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
Yes
Liston
Yes
Priola
Yes
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
No
Casso
Yes
Rice
Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS







09:52 AM -- House Bill 09-1108

Representative A. Kerr, prime sponsor, presented House Bill 09-1108 concerning the failure of an employer's bank to honor an employee's paycheck upon presentment. This 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. If this occurs 2 or more times within a 24 month period, the director of the Department of Labor and Employment will issue a letter to the affected employee, stating the employee is not liable for damages (overdraft fees, insufficient check charges, late fees) from having insufficient funds. The director will also fine the employer $50 per day per employee.


09:55 AM

Representative A. Kerr distributed amendment L.001 (Attachment C). He said the amendment changes the bill from stating that the director "shall investigate complaints" to "may investigate complaints" which will impact the fiscal note because now the director does not have to investigate every complaint. The amendment would also allow the employee to recover actual damages caused by the nonpayment, including associated late fees in addition to the actual paycheck. Representative A. Kerr responded to questions from the committee regarding what happens if a check bounces and the employer is not at fault.

09HouseBus0217AttachC.pdf

09:59 AM -- Jeff Clayton, representing the Department of Labor and Employment, stated that if the amendment passes, there will be no fiscal note.
BILL:HB09-1108
TIME: 09:59:58 AM
MOVED:Casso
MOTION:Moved amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:Gagliardi
VOTE
Balmer
Bradford
Gagliardi
Liston
Priola
Ryden
Scanlan
Soper
Stephens
Casso
Rice
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection






BILL:HB09-1108
TIME: 10:00:21 AM
MOVED:Casso
MOTION:Moved to refer House Bill 09-1108, as amended, to the Committee of the Whole. The motion passed 6-5.
SECONDED:Gagliardi
VOTE
Balmer
No
Bradford
No
Gagliardi
Yes
Liston
No
Priola
No
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
No
Casso
Yes
Rice
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:02 AM

Adjourn.