Date: 02/17/2009

Final
BILL SUMMARY for HB09-1117

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved amendment L.005 (Attachment A). The motion
Moved to postpone House Bill 09-1117 indefinitely.
Moved to refer House Bill 09-1117 to the Committee		FAIL
PASS
FAIL



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