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Dan Pilcher
CACI Senior Vice
President
& Chief Operating Officer
Phone: 303.866.9600
E-Mail:
dpilcher@cochamber.com
Friday, April 23, 2010
CACI Board Votes to Support Major K-12 Education Reform Bill,
SB-191
Yesterday, the CACI Board of Directors voted to support SB-191,
the education reform bill aimed at linking teacher evaluations
to student academic performance. The proposal, backed by four
current and past governors as well as various business
organizations, underwent two days of lengthy hearings this week
before the Senate Education Committee. This afternoon, the
Committee began work on amending the bill.
SB-191 has bipartisan advocates: the Senate sponsors are
Senators Michael Johnston (D-Denver) and Nancy Spence
(R-Centennial) and the House sponsors are Representatives
Christine Scanlan (Dillon) and Carole Murray (R-Castle Rock).
For stories on the hearing Wednesday and Thursday, click on:
http://www.denverpost.com/ci_14941010
http://www.denverpost.com/education/ci_14925040
CACI’s support of the bill follows from the Board’s decision
last October to endorse
a new business effort to advance educational reform in Colorado
by joining “BizCARES,” a business coalition created by Colorado
Succeeds, which is an organization of business leaders formed to
advance K-12 educational reform. One purpose of BizCARES is to
support Colorado’s proposal to the Federal Government to obtain
a “Race-to-the-Top” grant for further education reform. For
more information on Colorado Succeeds, click on”:
http://www.coloradosucceeds.org/
On Thursday, an Op-Ed signed by Governor Bill Ritter and three
past Governors (Dick Lamm, Roy Romer and Bill Owens) ran in
The Denver Post advocating SB-191:
http://www.denverpost.com/search/ci_14932112
The Denver Post
also has editorialized in support of the bill:
http://www.denverpost.com/editorials/ci_14923144
For more information on this issue and the bill, click on the
following:
http://www.denverpost.com/editorials/ci_14923144
http://www.denverpost.com/editorials/ci_14870314
For further information on the bill, contact Loren Furman, CACI
Vice President of Governmental Affairs, at 303.866.8642 or via
e-mail at
lfurman@COchamber.com
House Finance Committee Approves Bill to Suspend Enterprise-Zone
Investment Tax Credits for Two Years, but Committee Chair Again
“Lays Over” Bill to Eliminate the Credits
On Wednesday, House Finance Committee Chair Joel Judd (D-Denver)
for the third time laid over HB-1396, which he is sponsoring,
that would eliminate the state’s enterprise-zone program, which
is a major tool of state and local economic developers. The
bill is now calendared for action by the Committee for
Wednesday, April 28th.
HB-1396 is strongly opposed not only by CACI but by numerous
companies, local chambers of commerce and local economic
development organizations. This bill would increase taxes on
businesses located in enterprise zones by $37.4 million in
fiscal year 2010-2011 and by $77 million in fiscal year
2011-2012 for a total of $114.4 million over the two fiscal
years.
The Committee,
however, approved HB-1200 on a partisan six-to-five vote, which
sends it to the House Floor for Second Reading. HB-1200 caps
the enterprise-zone investment tax credit at $250,000 per
taxpayer for income tax years beginning 2011 through 2013 and
requires the taxpayer to defer claiming any amount above
$250,000 to tax year 2014. If the taxpayer has to defer credit
exceeding $250,000, the bill allows the taxpayer to carry the
credit forward for 12 income-tax years after the year that the
credit was allowed plus an additional year for the years that
the taxpayer could not take the credit above $250,000.
Currently, any
depreciable equipment purchased and used within an enterprise
zone is eligible for a three percent tax credit. The credit may
be used up to $5,000 of the taxpayer’s tax liability plus fifty
percent of the taxpayer’s liability above $5,000. Here are
CACI’s major concerns with HB-1200:
·
Because HB-1200 caps the enterprise zone credit at $250,000, it
will hurt companies that invest millions of dollars in equipment
to operate their business;
·
If this legislation is adopted, the unfortunate, likely result
will be that companies will not invest in new equipment until
the full credit is available again in three years; and
·
By capping this credit at $250,000 for three years, companies
may either be discouraged from locating in Colorado until the
full credit is available or will look to locate and invest in
other states that offer a higher enterprise-zone credit.
For further information on these two bills, contact Loren
Furman, CACI Vice President of Governmental Affairs, at
303.866.8642 or via e-mail at
lfurman@COchamber.com
Here’s the list of companies, business organizations, towns,
counties and other organizations that have joined the
broad-based business coalition to oppose HB-1396:
Companies, Business Organizations and Other Organizations
A. Marvin Strait, CPA
Action 22
American Furniture
Warehouse
CaridianBCT
Climax Molybdenum
Club 20
Colorado Concern
Colorado Competitive
Council (C3)
Colorado Counties Inc.
Colorado Municipal
League
Colorado Motor Carriers
Association
EnCana Oil & Gas
Evraz Rocky Mountain
Steel
Green Industries
International Association
of Shopping Centers
NAIOP
National Federation of Independent Businesses
Printing Industries of Colorado
Progressive 15
Qwest
St. Mary Land & Exploration
St. Mary’s Hospital Foundation
Suncor Energy
Teague Diversified
Union Pacific
Verizon and Verizon Wireless
Xcel Energy
Economic Development Organizations
Economic Developers' Council of
Colorado
Adams County Economic Developers' Council
Aurora Economic Development Council
Broomfield Economic Development Council
Colorado Springs Economic Development Council
Grand Junction Economic Development Council
Jefferson Economic Development Council
Metro-Denver Economic Development Council
Montrose Economic Development Council
Northern Colorado Economic Development Council
Pueblo Economic Development Council
Region Nine Economic Development District
Rifle Economic Development Corporation
Westminster Economic Development Council
Chambers of Commerce, Business Organizations, Towns and Counties
Akron Chamber of Commerce and Town of
Akron
Arvada Chamber of Commerce
Aurora Chamber of Commerce
Broomfield Chamber of Commerce
Colorado Springs Chamber of Commerce
Colorado Women’s Chamber of Commerce
Douglas County Business Alliance
Fort Collins Chamber of Commerce
Fruita Chamber of Commerce
Grand Junction Chamber of Commerce
Greater Woodland Park Chamber of
Commerce
Highlands Ranch Chamber of Commerce
Metro Denver Chamber of Commerce
Golden Chamber of Commerce
Metro North Chamber of Commerce
Northern Colorado Legislative
Alliance
Phillips County
Rifle Chamber of Commerce
Town of Limon
West Chamber Serving Jefferson County
House Committee Dilutes Bill to Crack Down on Companies Receiving
Economic-Development Incentives
On Wednesday, the House Finance Committee, by a partisan
six-to-five vote, passed a heavily-amended HB-1350 that, in its
introduced form, would have required
businesses to disclose
and rationalize economic development incentives. CACI and many
other businesses and business organizations oppose the bill in
its amended form.
The amended version was sent to the House Floor for Second
Reading. It mandates that any company receiving state economic
development assistance provide to the Colorado Office of
Economic Development and International Trade (OED/IT)
information about the average and median salaries of workers
hired because of the incentives. By this coming January, the
OED/IT must give the legislature a report on how the State can
determine the number of jobs created by the various current
business tax incentives and provisions.
The original intent of Representative Sal Pace (D-Pueblo), the
bill’s sponsor, was to review all of Colorado’s business tax
exemptions and credits and determine whether or not they create
jobs. Representative Pace believes that these provisions should
be eliminated if it cannot be proved that they create jobs.
For more information about this bill, contact Loren Furman, CACI
Vice President of Governmental Affairs, at 303.866.8642 or via
e-mail at
lfurman@COchamber.com
Health-Care
Bills Roundup
Note: the following section
was written by Dan Anglin, CACI Governmental Affairs
Representative.
Bill Requiring Claims Adjusters to be Physicians Dies
HB-1234 was lost on Second Reading of the House on Tuesday.
This bill would have required claims adjusters to be physicians
with an active clinical practice, in good standing, and with
expertise in the same field of medicine involved in the claim or
requested medical service.
The bill was sponsored in the House by Representative Dianne
Primavera (D-Broomfield).
The CACI HealthCare Council opposed HB-1234 based on the
likelihood of an increase of fraudulent claims that might have
occurred if this measure became law. The Council determined that
any measure that removed an insurer’s ability to investigate
claims for fraud would ultimately increase the cost of
purchasing insurance and should be opposed. CACI worked closely
with many leaders of the health-insurance and health-care
industry who opposed this bill to ensure that this measure did
not pass.
Wellness-Incentives Bill Passes the Senate
The Senate this morning passed on Third and final Reading
HB-1160. The bill is sponsored by Senator Linda Newell
(D-Centennial), Senator Shawn Mitchell (R-Broomfield),
Representative Joe Rice (D- Centennial), and Representative Amy
Stephens (R-Monument).
The bill has been heavily amended since its introduction to
address the concerns of the opposition that an incentive for a
person who improves his or her health would be unfair to other
covered persons in the plan who cannot participate in a wellness
program.
The Senate amended the bill to authorize the Commissioner of the
Colorado Division of Insurance to review plans for any type of
unfair practices or rate setting associated with a wellness
program. The bill will now be sent back to the House for
consideration of Senate amendments and will be assigned to a
conference committee.
Bill to Prevent Compensation to Insurance Claims Adjusters to be
Heard Monday
The House Judiciary Committee is scheduled to hear SB-76 when it
meets Monday, April 26th, at 1:30 p.m. in Room 107 at
the State Capitol. The bill is sponsored by Senator Morgan
Carroll (D-Aurora) and Representative Dianne Primavera
(D-Broomfield).
SB-76 defines as an unfair settlement practice and a deceptive
practice of insurance to pay a salary or any kind of
compensation to an insurance carrier employee whose work
directly or indirectly results in the denial or delay of a
claim, or cancellation or rescission of an insurance policy.
CACI’s HealthCare and Government Affairs Councils oppose this
bill and identified it as a priority bill to defeat. The
Government Affairs Council formed a “strike force” to
concentrate efforts to defeat the bill, and the “strike force”
has been engaging members of the Committee to educate them on
the issues surrounding this bill.
For information on health-care bills, contact Dan Anglin, CACI
Governmental Affairs Representative, at 303.866.9641 or via
e-mail at
danglin@COchamber.com
Senate Takes Action on Two Pinnacol Bills while Three Still
Await Action
Today, the Senate passed on Second Reading two of the Pinnacol
Assurance bills:
·
SB-11, “Disclosure of Workers’ Compensation Conflicts of
Interest,” which is sponsored by Senator Morgan Carroll
(D-Aurora).
·
SB-12, “Penalties on Worker’s Compensation Benefits,” which is
sponsored by Senator Lois Tochtrop (D-Thornton). Defeating this
bill is a priority of the CACI Governmental Affairs Council.
SB-12 increases the penalty for
violating the workers’ compensation laws from up to $500 per day
to up to $1,000 per day. The bill allows the Director of the
Division of Workers’ Compensation in the Colorado Department of
Labor and Employment or an administrative law judge (ALJ) to
apportion the proceeds, in whole or in part, to the aggrieved
party, a medical services provider and/or the Workers
Compensation Cash Fund. The bill also changes the mental state
from “willfully” to “knowingly” for denying or delaying payment
of benefits.
Governmental Affairs Council’s Concerns with SB-12
By decreasing the standard from “willfully” to “knowingly” for
denying/delaying payment of benefits, this change creates a
lower standard that could adversely punish insurers for
prudently slowing or stopping a claim in order to pursue proper
proof or fraud investigations. This change will likely increase
the number of penalties assessed.
Currently, if an adjuster “willfully” denies/delays payment, they
are subject to penalties. If the “willfully” standard is changed
to “knowingly,” it removes the adjuster’s intent in a situation.
For example, if an adjuster knows a check is going to be late
because the mail won’t be delivered that day--and obviously
cannot control the U.S. Postal Service schedule—then the
adjuster will be subject to penalties.
SB-12 allows for an apportionment of proceeds, which will increase
costs for all parties, including employers and insurers, and
further incentivize claimants to pursue penalties for the most
minor of infractions, such as a late mail delivery.
This bill gives extraordinary powers to the Director of the
Division of Workers’ Compensation or an ALJ for the assessment
of increased penalties without allowing for a proper hearing.
Members of the Governmental Affairs Council who are actively
working with CACI to defeat this bill include: Property and
Casualty Insurers Association, Pinnacol Assurance, Tri-State
Generation and Transmission Association, Colorado Civil Justice
League, West Chamber Serving Jefferson County, Metro North
Chamber of Commerce, Arvada Chamber of Commerce, Aurora Chamber
of Commerce, Colorado Auto Dealers Association and Colorado
Motor Carriers Association.
Meanwhile, two bills remain on the Senate Calendar for Second
Reading:
·
HB-1009, “Pinnacol Assurance Board of Directors,” sponsored by
Representative Joe Miklosi (D-Denver) and Senator Mary Hodge
(D-Brighton);
·
SB-13, “Workers’ Compensation Accountability,” sponsored by
Senator Hodge and Representative Su Ryden (D-Aurora).
HB-1012, “Limiting Surveillance of Workers’ Compensation
Claims,” sponsored by Senator Carroll, remains in the Senate
Judiciary Committee, which she chairs, but the bill has not yet
been scheduled for a vote. CACI and other business
organizations strongly oppose HB-1012 in its current form.
For more information on the Pinnacol bills, contact Loren Furman
at 303.866.9642 or via e-mail at
lfurman@COchamber.com
or Dan Anglin, CACI Governmental Affairs Representative, at
303.866.9641 or via e-mail at
danglin@COchamber.com
CACI Councils Status Report
Click here to view a status report on the bills that CACI
Councils have taken a position on.
Upcoming CACI Council Meetings
Council meetings will be held at the CACI Office beginning at 12
Noon. These will be the last Council meetings held during the
2010 session of the Colorado General Assembly, which must
adjourn sine die by Wednesday, May 12th.
·
Labor and Employment
Council,
Wednesday, April 28th; lunch sponsored by Mark
Moses, Outback Steakhouse, whose website is
www.outback.com
·
Governmental Affairs
Council,
Tuesday, May 4th; lunch sponsored by
Shayne Madsen,
Jackson Kelly PLLC, whose website is
http://www.jacksonkelly.com |
