House Committee on Business Affairs and Labor (04/22/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	04/22/2009	ATTENDANCE

Time:	11:16 AM to 03:55 PM	Balmer	*
		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	*
		Casso	X
		Rice	*
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1349 SB09-223 SB09-258 SB09-243 SB09-223 SB09-254		Referred to the Committee of the Whole Referred to Appropriations Referred to the Committee of the Whole Referred to the Committee of the Whole Referred to Appropriations Referred to the Committee of the Whole

11:16 AM -- House Bill 09-1349

Vice-chairman Casso called the committee to order. Representative Fischer, prime sponsor, presented House Bill 09-1349 concerning a special election period for the continuation of health care coverage after involuntary termination from employment. This bill provides a special election period to certain individuals who were involuntarily terminated from employment between September 1, 2008, and February 16, 2009, to choose health insurance continuation coverage. Employers are required to send a written notice to qualified individuals about the special election period. Coverage must be elected within 60 days of the date of the notice. Health insurance coverage providers are required to give employers the information necessary to fulfill the notification requirements. In addition, the bill extends by 1 day the eligibility period for enrollment in CoverColorado. The bill is effective upon signature of the Governor, or upon becoming law without his signature.

Current law requires group health plans sponsored by employers with less than 20 employees to offer employees and their families the opportunity for continuation coverage in certain instances where coverage under the plan would otherwise end. The American Recovery and Reinvestment Act of 2009 (ARRA) provides a special election period for workers covered by the Consolidated Omnibus Budget Reconciliation Act (COBRA), but states have the option of providing this for state continuation coverage. Under ARRA, a 65 percent premium subsidy is available for continued coverage for workers eligible under COBRA or state continued coverage. The subsidy is to be reimbursed to health insurance coverage providers through a federal tax credit.

11:20 AM -- Denise De Percin, representing the Colorado Consumer Health Initiative, testified in support of the bill. She talked about the importance of health care coverage and mentioned that the bill uses federal stimulus money. Representative Stephens asked how much the bill will cost small businesses. Ms. De Percin said the employer does not pay any of the subsidy, they would only have to cover the administrative costs. There was a discussion about the time frame for coverage provided in the bill. Representative Fischer responded to the concerns over the cost the bill will have on businesses.

11:26 AM -- Dayle Axman, representing the Colorado Division of Insurance, came to the table to respond to questions. Representative Stephens asked whether the bill will cost money to small businesses. Ms. Axman explained that the subsidy is carried by the insurance carrier, the employer does not contribute. The business will only need to provide the information of who is eligible for the program to the insurance company.

11:30 AM

Representative Fischer gave some closing remarks on the bill and talked about COBRA coverage.


BILL:	HB09-1349
TIME:	11:31:14 AM
MOVED:	Gagliardi
MOTION:	Moved to refer House Bill 09-1349 to the Committee of the Whole. The motion passed 9-0-2.
SECONDED:	Soper
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Excused
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Excused

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

11:31 AM -- Senate Bill 09-223 - Recess

Representative Casso announced that the committee would be hearing Senate Bill 09-223 later in the day. The committee took a brief recess.

11:35 AM -- Senate Bill 09-258

The committee reconvened. Representative Scanlan, prime sponsor, presented Senate Bill 09-258 concerning required acts of employee leasing companies by the department of labor and employment pursuant to the "Colorado Employment Security Act". This bill makes employee leasing companies responsible for the payment of unemployment compensation insurance taxes but gives them the option of reporting and paying the taxes as the employing unit, or under the accounts of the work-site employers.

11:37 AM -- Randall Hake, spokesman for a group of Colorado-based Professional Employer Organizations (PEOs) and a representative of Peliton, LLC, testified in support of the bill. Mr. Hake explained the benefits of the bill and talked about Senate Bill 08-114, concerning required acts of employee leasing companies by the Department of Labor and Employment, that was passed last session. Mr. Hake responded to questions from the committee.

11:50 AM -- Vicki Smith, Director of Unemployment Insurance Integrity, representing the Colorado Department of Labor and Employment, testified regarding the bill. She discussed the department's concerns with the bill and addressed the changes made to the bill by the amendment that was added by the Senate Business, Labor and Technology Committee.

11:53 AM

Representative Scanlan gave some closing remarks on the bill.


BILL:	SB09-258
TIME:	11:53:59 AM
MOVED:	Scanlan
MOTION:	Moved to refer Senate Bill 09-258 to the Committee of the Whole. The motion passed 9-0-2.
SECONDED:	Ryden
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Excused
	Casso	Yes
	Rice	Excused

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

11:54 AM -- Senate Bill 09-243

Representative Riesberg, prime sponsor, presented Senate Bill 09-243, concerning payments for workers' compensation benefits. The committee heard testimony previously on April 14. The bill makes changes to workers' compensation insurance benefit procedures. The fee schedule for payment of benefits is extended to services delivered after any final order, final admission, or full or partial settlement of a claim. When determining the maximum amount of temporary and permanent partial disability payments a claimant is eligible to receive, the claimant's mental impairment rating must be combined with the physical impairment rating. Finally, payment for health care services is authorized for claims that are found to be compensable after initially being denied.

11:57 AM -- Bob Summers, Director of the Division of Workers' Compensation, Colorado Department of Labor and Employment, said the department is neutral on the bill. He pointed out a couple of issues in the bill with the fee schedule after a worker goes through the system and what happens when an employer does not designate a medical provider.

11:59 PM

John Sbarbaro, Cathy Wanstrath, and Doug Kotarek came to the table to testify together.

12:00 PM -- John Sbarbaro, President of the Workers' Compensation Education Association, testified in support of the bill. He said the bill clarifies that the fee schedule will apply to the workers compensation benefits, addresses mental impairment and returns the system to pre-2006 before the Supreme Court ruling that changed it.

12:03 PM -- Cathy Wanstrath, representing Pinnacol Assurance, testified in support of the bill. She explained that the bill only includes issues that the three groups agreed on.

12:04 PM -- Doug Kotarek, an attorney, representing the Colorado Self-Insurers Association, testified in support of the bill and talked about the discussions the groups had to reach an agreement on the bill.

12:06 PM

The three witnesses responded to questions from the committee.


BILL:	SB09-243
TIME:	12:08:36 PM
MOVED:	Soper
MOTION:	Moved to refer Senate Bill 09-243 to the Committee of the Whole. The motion passed 8-0-3.
SECONDED:	Gagliardi
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Excused
	Soper	Yes
	Stephens	Excused
	Casso	Yes
	Rice	Excused

Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

12:14 PM -- Senate Bill 09-223

Representative B. Gardner, prime sponsor, presented Senate Bill 09-223 concerning revisions to the retail food establishment inspection process. The bill establishes new fees for establishments offering food to workers at temporary living quarters in the oil and gas development industry (oil and gas camps) and increases fees paid by other retail food establishments. The bill also makes changes to the Food Protection Act as follows:

provides for the uniform statewide administration of food safety;
requires follow-up activities by the Department of Public Health and Environment (DPHE) or county or district board of health if critical violations are found during an inspection; and
establishes a grievance process for retail food establishments that believe that a county or district public health agency is taking inappropriate action.

12:18 PM -- Pete Meersman, the President of the Colorado Restaurant Association, testified in favor of the bill. He discussed negotiations about the bill and the importance of uniform inspections.

12:21 PM -- Kandi Buckland, representing the Public Health Directors of Colorado, testified in support of the bill. She talked about the importance of the bill to El Paso County and the limited resources they have to do inspections.

12:26 PM -- Mary Lou Chapman, President of the Rocky Mountain Food Industry Association, testified in support of the bill. She talked about the increase in fees in the bill.

12:29 PM -- Jeff Lawrence, representing the Colorado Department of Public Health and Environment, testified in support of the bill.

12:33 PM

Representative B. Gardner gave some closing remarks on the bill. Representative A. Kerr came to the table and briefly addressed the bill. Representative B. Gardner responded to questions from Representative Gagliardi regarding who is in support of the bill.


BILL:	SB09-223
TIME:	12:39:53 PM
MOVED:	Soper
MOTION:	Moved to refer Senate Bill 09-223 to the Committee on Appropriations. The motion passed 10-0-1.
SECONDED:	Bradford
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Excused
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:33 PM

The committee recessed.

03:28 PM -- Senate Bill 09-254

The committee was called back to order by Vice-chairman Casso. Representatives Balmer and Scanlan, prime sponsors, presented Senate Bill 09-254 concerning the authority of certain licensed beer manufacturers to use common licensed premises for the production of beer products in this state. The bill authorizes licensed brew pubs and licensed manufacturers of beer products (malt liquor and fermented malt beverages) to obtain approval from the Department of Revenue to use a common licensed premises to manufacture their product. As the state licensing authority, the executive director of the Department of Revenue would adopt rules for the implementation, standardization, and enforcement of alternating proprietor licensed premises.

The bill authorizes the wholesale sale of malt liquors and fermented malt beverages from an alternating proprietor licensed premises, but the retail sale of such alcohol beverages is prohibited from the premises. The state licensing authority may establish fees for applications for alternating use of premises authority. Licensees would report separately on the quantities of malt liquors and fermented malt beverages manufactured or inventoried in, or transferred from, an alternating proprietor licensed premises.

03:31 PM

The sponsors explained that the bill makes the same change to the law as the legislature did last year for wineries. The sponsors responded to questions from the committee.

03:38 PM -- J.B. Shireman, representing the Colorado Craft Brewers Guild and New Belgium Brewing, testified in support of the bill. He stated that the bill is a federal excise tax break for brewers and described how the bill will help brewers and brewpubs. Mr. Shireman responded to earlier questions that came from the committee. Mr. Shireman was asked to explain a brewpub.


BILL:	SB09-254
TIME:	03:49:06 PM
MOVED:	Scanlan
MOTION:	Moved to refer Senate Bill 09-254 to the Committee of the Whole. The motion passed 8-0-3.
SECONDED:	Balmer
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Excused
	Priola	Excused
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Yes
	Casso	Yes
	Rice	Excused

Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

03:55 PM

The Vice-chair announced that the members were asked to return to the House floor at 4:00 p.m. and announced that House Bill 09-1358 would be laid over until Friday, April 24, at 1:00 p.m. The committee adjourned.