HEADLINES May 5, 2009

PENDING BILLS

 

BILLS KILLED

 

BILLS PASSED BY THE LEGISLATURE

 

BILLS SIGNED BY THE GOVERNOR

 

  
 
 

 

 

Dan Pilcher

CACI Senior Vice President

& Chief Operating Officer

 

Phone: 303.866.9600

 

E-Mail: dpilcher@cochamber.com

 

Tuesday, May 5, 2009

 

NOTE: It appears that the Colorado General Assembly will not adjourn its 67th Session today as the legislative leaders had hoped.  Tomorrow is the 120th day of the session, and the legislature must adjourn by midnight according to the Colorado Constitution.

 

 

PENDING BILLS

 

Here are a couple of the bills, which CACI is lobbying, that are still alive this afternoon:

 

HB-1170, Unemployment Insurance (UI) union workers lock-out.  The bill awaits House consideration of Senate amendments to the bill.

 

HB-1366, capital-gains bill.  On Friday, the Senate Finance Committee passed an amended bill and yesterday the Senate Appropriations Committee amended and passed the bill.  The bill awaits Senate Second Reading.

 

 

BILLS KILLED

 

Yesterday, the House on Second Reading laid over until August 7th HB-1323, the bill that would have mandated energy-efficiency/conservation programs on Intermountain Rural Electric Association (IREA), which is a CACI member.  Since the legislature will adjourn tomorrow, the bill is effectively dead.  CACI opposed this effort that targeted one company.

 

 

BILLS PASSED BY THE LEGISLATURE,

SENT TO THE GOVERNOR

 

HB-1057, Mandated Parental Leave, Heads to Governor’s Desk

 

Yesterday, following the lead of the House, the Senate agreed to adopt an amended HB-1057, which sends the bill on to the Governor.  The House a week ago Monday had adopted the bill, which contained an amendment from the House-Senate conference committee that pertained to the key provision concerning when an employer could restrict leave.

 

On April 16th, the conference committee agreed to a change to HB-1057.  The language adopted by the conference committee states that an employer can refuse a worker’s request for leave “in a situation where the absence of the employee would result in a halt of services or production.”

 

Before the conference committee met, here’s where the language—for which CACI and other business organizations had lobbied in the Senate--stood on the key provision that stipulated when an employer could restrict leave for a worker:

 

“ . . . . an employer may limit the ability of an employee to take leave pursuant to this section in cases of emergency or other situations that may endanger a person’s health of safety or that necessitate the presence of the employee.”

 

Last month, the Senate Education Committee amended and approved HB-1057 on a partisan five-to-three vote.  The amendment added by the Senate Education Committee reflected the lobbying effort of CACI and other business organizations to strengthen the right of an employer to refuse a worker’s request for leave “in cases of emergency or other situations that may endanger a person’s health or safety or that necessitate the presence of the employee.”  The key word in this sentence is “or,” which replaced “and.”

 

HB-1057 would require companies that employ 50 or more workers provide up to 18 hours of unpaid leave in an academic year in three-hour blocks to workers who want to attend parent-teacher conferences or other academic activities related to the educational achievement of the employee’s child.  The worker could take no more than six hours in one month.  The worker also could elect to take paid sick or vacation leave instead of the unpaid leave.  The leave could be used for parent-teacher conferences and for meetings for a special-education student, to prevent a student from dropping out, or for disciplinary matters.

 

Legislature Approves Amended Pinnacol Assurance Bill, SB-281

 

Yesterday, both the House and Senate approved SB-281 with an amendment approved by the House-Senate conference committee that met last Thursday.  The bill now goes to the desk of Governor Bill Ritter for his consideration.

 

The final bill calls for two things: a “performance audit” this year of Pinnacol and a legislative interim committee to study Pinnacol this summer and fall.

 

The performance audit--to be conducted by the State Auditor but to be paid for by Pinnacol--will look at “executive compensation, premium rate structure, known loss reserves, incurred but not reported losses, and injured workers’ claims experience.”  The State Auditor is given the authority to conduct more performance audits in the future, and Pinnacol will be required to pay for them.

 

An important step by the conference committee was to drop the language that would have allowed the legislative interim committee to open up the entire workers’ comp system and statues to examination.

 

The Study Group is directed to only examine “the operation of Pinnacol Assurance including, but not limited to both the feasibility of the continued operation and the public policy implications of Pinnacol Assurance as a division of state government or the feasibility and public policy implications of selling Pinnacol Assurance to a willing third-party buyer.”

 

The conference committee amendment also expands the size of the legislative interim committee--called the “Worker Safety and Injury Compensation Study Group”—from 13 to 16 by including three more members, all jointly appointed by the legislative leadership: a Pinnacol policyholder, a member of the public knowledgeable about workers’ compensation insurance, and an injured worker.

 

Although the amended bill is much more palatable to the business community than the introduced version, CACI remains opposed to the bill because the interim committee, given its composition and its charge by the legislature, may very likely come up with bill recommendations for the 2010 session that will harm Pinnacol.  CACI strongly believes that Pinnacol performs very well for its policyholders and injured workers, and the legislature should leave it alone.

 

On April 23rd, five Democratic Representatives voted “no”, along with the Minority Republicans, on Third Reading to oppose the more stringent version of SB-281 that called not only for performance audits but for an interim legislative committee to study worker safety and the workers’ comp system:

  • Jerry Frangas (Denver)

  • Daniel Kagan (Cherry Hills Village)

  • Joe Rice (Littleton)

  • Sue Schafer Wheat Ridge)

  • John Soper (Thornton)

 

Thirty-three Democrats voted for the bill, which is the minimum number of votes needed to pass a bill in the House.  Opponents of the bill mustered 30 votes.  Two representatives were excused and not present: Scott Tipton (R-Cortez) and Paul Weissmann (D-Louisville).

 

 

BILLS SIGNED BY THE GOVERNOR

 

Governor Ritter Signs Bill Creating Tax Incentive to Encourage Job Growth

 

Yesterday Governor Bill Ritter signed HB-1001, which CACI supported.  At the invitation of the Governor’s Office, CACI President Chuck Berry joined other business leaders and legislators to attend the bill signing ceremony outside of the World Trade Center in downtown Denver.

 

The bill was the Governor’s top priority this session for economic development.  To participate in the bill’s program, a business would have to meet certain criteria and apply to the Colorado Economic Development Commission.  The firm would be eligible for a corporate income-tax credit of up to half of its annual FICA taxes on new workers.  The tax credit would be calculated on a year-to-year basis for five years according to the number of FTEs on the payroll of the business at the end of the year.  In order for the tax credit to be granted, a company would have to prove that, if it wasn’t for this program, the company would not move or expand its operations in Colorado.

 

For more on this bill, click on:

 

http://www.denverpost.com/legislature/ci_12289160


 
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