Legislative Update April 1, 2010 - NO JOKE!

After passing the arbitrary tax hikes of Ritter’s “Dirty Dozen”, Nanny Statist Democrats in Colorado are now focused on other ways to hurt business and job creation. See the CRBC Legislative Matrix for the names of legislators to contact on the bills. Here’s the latest:

Energy
HB1001 – (Max Tyler D-Golden/Schwartz D –Snowmass Village) Requires public utilities to supply 30% of energy from renewable sources by 2020. This is the most stringent standard in America and will increase the cost of energy for business and residences. Energy from wind and solar are almost impossible to store so traditional sources will still be required. Status: Signed by Gov. Ritter.

HB1365 –Utilities Convert Coal To Natural Gas (Judy Solano D-Brighton/Bruce Whitehead D-Hesperas) Once again, government picks winners and losers. Effectively shuts down two coal-fired power plants and switches Xcel Energy’s fuel source to natural gas. An amendment that would have allowed natural gas to compete with low-emitting fuel technologies was killed in committee. An amendment passed that delays utility rate increases until after the 2012 elections. Status: 4/1/2010 Passed after 3rd reading in Senate, with Republicans Josh Penry, Ken Kester and Greg Brophy voting yes. Ritter will sign soon.

Private Property Rights
SB185 Residential Warrant of Habitability (Brandon Shaffer D-Longmont/Mike Merrifield D-CO Springs) Makes it easier for tenants to sue a landlord by removing the requirement for a tenant to provide written notice prior to a breach of the warranty, and it modifies the standard of condition that would constitute a breach. Additionally, it creates a right of action for tenants, including disciplinary action and treble damages. This bill will lead to an increase in rental housing costs, as well as limit the building of new properties, due to possible litigation. Status: 03/29/2010 Senate Second Reading Laid Over to 04/12/2010

HB 1017, Voluntary Agreements Affecting Rent on Private Residential Property (Dan Kagan D-Denver /Betty Boyd D-) This bill alters current state law, which prohibits counties and municipalities from enacting any ordinance that would allow rent control on private residential property. This opens the door for any remodeling, construction or new development project — regardless of size or scope — to be subject to such requirements – such as ADA compliance - and would decrease investment in rental housing. Status: Passed House, 4/1/2010 passed 2nd reading in Senate with amendments

HB 1107 Urban Renewal Area Ag Lands (Randy Fischer D-Ft Collins /Morgan Carroll D-Aurora) This bill restricts the inclusion of agricultural lands within urban renewal areas and outlines procedures for county assessors when classifying agricultural land for property tax purposes. It damages the prospects of additional job growth in the clean tech industry sector, which often has a sizeable manufacturing component and requires large parcels of land adjacent to rail lines. Status: Passed House, passed Senate; laid over daily for House to consider Senate amendments


Workers Comp
HB1356 Workers' Comp Policyholder Protection Act 2010 (Su Ryden D-Aurora/ Lois Tochtrop D-Thornton) A deal to extort up to $330M from Pinnacol Assurance in exchange for near autonomy has collapsed. The mutual assurance company insures almost 50% of Colorado companies and is owned by the policyholders. But, Pinnacol receives tax breaks as the “insurer of last resort” and has been financially profitable since being managed as a private company. Legislators expect that an audit of Pinnacol in June will give the State more leverage to demand a higher payoff. Status: Introduced in House; assigned to Business & Labor

HB1012 Limit Surveillance Workers’ Comp Claims (Sal Pace D-Pueblo/Morgan Carroll D - Aurora) is another bill aimed to hurt Pinnacol and small businesses. This bill restricts a company’s ability to see if an employee’s workers comp claim of injury is valid with commonly used fraud-detection procedures. Status: 03/31/2010 Senate Committee on Judiciary Witness Testimony and/or Committee Discussion Only

Higher costs to business
HB 1263 Limit Income Tax Benefit for Comp Paid (Jack Pommer D- Boulder /Betty Boyd D-Lakewood) Increases the state income tax on individual total compensation above $250,000 and limits the deductibility of income above that amount for corporations. Company must pay taxes on an amount over $250,000 rather than deducting it as an operating expense. (The federal level is $1million.) This bill creates a disincentive for businesses to locate a national HQ here and create high-paying jobs. Sports teams, airlines, hospitals, telecom companies etc. will see their expenses rise – all passed to consumers, or they’ll move to a more business friendly state. Status: Introduced in House, assigned to Finance Committee

HB 1269 Workplace Fairness Civil Remedies Act (Claire Levy D- Boulder /Morgan Carroll D-Aurora) This bill significantly increases the damages in state employment discrimination lawsuits by adding, for the first time, pain-and-suffering penalties, punitive damage, attorney’s fees and other remedies already available under federal law. Duplicating expanded lawsuit remedies for large businesses already available under federal law is unnecessary and will permit plaintiffs to “forum shop.” Status: House Committee on Judiciary Referred Amended to Appropriations

Some Good Bills
HB1160 – (Amy Stephens R-CO Springs; Joe Rice D- Littleton/Shawn Mitchell R-Broomfield) Allows insurance companies to provide incentives such as reduced policy premiums or co-payments to companies that offer wellness programs. Status: Passed House, assigned to Senate Com on Business Labor Tech

SB 112 (Mike Kopp R-Littleton) Keeps workers compensation insurance rates down by allowing businesses to take advantage of cost savings through highly successful deductible programs. It provides businesses with access to important rate setting data, which can be used to appeal their own insurance rates. Status: Passed, awaiting Ritter signature.

SB 116 Public Contracting Jobs Protection Act ((Mike Kopp R-Littleton) Requires public entities to reimburse contractor for costs incurred from additional work until an agreement can be reached between the two parties. Current practices require contractors to pay upfront labor and materials costs for any additional work until a change order agreement can be reached, which can take months. SB 116 will ensure contractors are paid on a timely basis for change directive work, creating a great stimulus for the Colorado economy and keeping Colorado workers employed. Status: Passed, awaiting Ritter signature.

Posted by Christine Burtt, Chairman, CO Republican Business Coalition smallbizgop@comcast.net