By

Dan Pilcher

CACI Senior Vice President

& Chief Operating Officer

Phone: 303.866-9600

E-Mail: dpilcher@COchamber.com

Friday, February 1, 2008

CACI Sends Governor’s Office Recommendations on Single-Sales Factor Bill

Yesterday, CACI sent to the Governor’s Office a letter that explains in great detail recommendations to improve the original draft of the single-sales factor bill.  A subcommittee of the CACI Tax Council worked hard this week with CACI Governmental Affairs Director Loren Rachel Furman on the letter of recommendations.

The Administration is planning on introducing the second version of the bill before the end of next week.  CACI will make this version available to its members as soon as it is received by putting it on the CACI Web site.

CACI members with questions about CACI’s letter of recommended changes to the original bill draft should contact Loren at 303.866.9642 or via e-mail at lfurman@COchamber.com

CACI, Bill Sponsor and Colorado Department of Revenue Reach Agreement to Amend HB-1091, the “Information Document Request” Bill

This morning, CACI, Representative Joel Judd (D-Denver), and the Colorado Department of Revenue reached an agreement on an amendment to HB-1091, the so-called “Information Document Request Bill.”  The CACI Tax Council opposed the bill in its original form, but is now neutral on the bill.

The bill, as introduced, would have authorized the Colorado Department of Revenue to demand production of information from a taxpayer by issuing an “information document request” (IDR) in order to determine tax liability.  Failure by the taxpayer to provide the information upon receipt of the IDR would preclude the taxpayer from later introducing the information in an administrative proceeding or court proceeding.

Over the last two weeks, however, Tax Council members and CACI staff have worked on the bill with Representative Judd and the Colorado Department of Revenue to reach a compromise.  The original eight-page bill has been reduced significantly, and the language is now permissive for the Department as opposed to being a mandate.  The compromise does not contain the new IDR process that was proposed in the original bill.  The threshold for the amount of taxpayer sales, for which the Department could seek information, has been set extremely high: $500 million.  The CDOR has argued that it needs this bill because some large companies were being unresponsive to its tax audits.  A sunset clause has been added so the bill will sunset in three years.

The bill is scheduled to be heard Wednesday in the House Finance Committee, which is chaired by Representative Judd.  The Senate Sponsor is Senator Jennifer Veiga (D-Denver). 

CACI members who want more information on this proposal should contact Loren Rachel Furman, CACI Director of Governmental Affairs, at 303.866.9642 or via e-mail at lfurman@COchamber.com

CACI Commends Health-Care Reform “208 Commission” Report for Building Recommendations upon the Existing System

In a press release issued statewide yesterday, CACI commended the Blue-Ribbon Commission for Health Care Reform for building its recommendations upon the existing system and addressing the chief concern of the business community: the rising costs of health care.  While health-insurance premiums continue to increase, a significant number of Colorado companies struggle to find affordable ways to provide health-care coverage for their workers. 

The Commission yesterday issued its report to the Colorado General Assembly.  CACI lauded the Commission for its hard work over many months to analyze the state’s health-care system and develop recommendations.

The CACI HealthCare Council and its Steering Committee will now study the Commission’s recommendations and, in particular, health-care legislation that is introduced during this session of the Colorado General Assembly.  The Council recommends policy positions to the CACI Board of Directors, which decides CACI’s policy positions and directs its lobbying at the State Capitol.

CACI believes that increasing flexibility for employers and minimizing state-imposed mandates and regulations will strengthen the private-public health-care system. Specifically, CACI:

• Opposes measures that require employers to provide health-care coverage for their workers and dependants;

• Opposes measures that mandate additional coverage in health-care insurance plans for certain illnesses or conditions not now required to be included in such policies; and

• Opposes the weakening of ERISA by the U.S. Congress under the guise of giving the states more flexibility.

Four members of the so-called “208 Commission,” named after SB-208, which the legislature passed in 2006 to establish the Commission, are members of the CACI HealthCare Council’s Steering Committee:

• Ralph Pollock, Member, CACI Board of Directors, and Chair of the CACI HealthCare Council;

• Steven Summer, President and Chief Executive Officer, Colorado Hospital Association;

• Steve Erkenbrack, Chair of the Club 20 Health Care Committee; and

• Bill Lindsay, President, Benefits Group, Lockton Companies of Colorado, who chaired the 208 Commission.

For more on the 208 Commission’s report, visit:

http://www.denverpost.com/legislature/ci_8131002

http://www.rockymountainnews.com/news/2008/feb/01/hagedorn-no-state-mandates-coming-on-issue-of/

Bill Favoring Plaintiffs in Civil-Court Settlements Moves through the Senate

The Senate Judiciary Committee Monday approved, with amendments, HB-1020, a bill that favors plaintiffs in settlement offers in civil-court cases, and the bill is now awaiting Second Reading by the full House.

HB-1020 changes Colorado’s balanced litigation system by requiring a defendant to pay pre-offer costs of a plaintiff who rejected a reasonable offer to settle a case but who still won something at trial.  This will discourage settling cases and increase litigation, wasting time and money of the judge, jury, taxpayers and defendants. 

HB-1020 creates a disincentive for a plaintiff to accept a reasonable offer of settlement because even a nominal finding in favor of the plaintiff would require that the defense pay all the plaintiff’s pre-offer costs.  If the plaintiff recovers in a judgment after the defense made an offer, the defense may still be required to pay the costs incurred by the plaintiff.

CACI, the Colorado Civil Justice League, the Northern Colorado Legislative Alliance (which represents the Fort Collins, Greeley and Loveland chambers of commerce, all of which are CACI members), the National Federation of Independent Businesses (NFIB) and the Colorado Contractors Association, among others, oppose the bill.

The bill is sponsored by House Majority Leader Alice Madden (D-Boulder) and Senator Jennifer Veiga (D-Denver).

CACI Still Opposes Bill Expanding Audit Scope of County Assessors

Although CACI continues to work with the bill’s proponents on its concerns, the CACI Tax Council today voted to oppose the HB-1258 as introduced mainly because it would reverse a court decision by allowing county tax assessors to reassess property values from prior years.

The bill, introduced yesterday and assigned to the House Finance Committee, is sponsored by Representative Debbie Benefield (D-Arvada) and Senator Steve Johnson (R-Fort Collins). 

The CACI Tax Council had expressed to the proponents its concerns about the original bill draft before introduction because it contained contingency-fee language as well as a broadening of the scope of the audit.  Based on CACI’s concerns, the proponents eliminated the contingency-fee provision. 

Governor’s Bill to Advance Bioscience Discoveries and Commercialization Clears First House Committee

HB-1001, which would use limited gaming funds to encourage bioscience research grants and advancements, passed the House Finance Committee Wednesday on a seven-to-four vote and has gone to the Appropriations Committee for consideration.

The bill would allow early-stage bioscience companies to apply for grants from the existing Bioscience Discovery Evaluation Grant Program, which already provides grants to technology transfer offices at higher-educational research institutions.  Total funding for the Program would be $3.5 million.  The Program also would support partnerships between the bioscience industry and research institutions to commercialize various research efforts.

CACI supports the bill, whose sponsors are Representative Jim Riesberg (D-Greeley) and Senator Bob Bacon (D-Fort Collins). 

Governor Ritter Presents Blue Ribbon Panel’s Transportation Report to Legislators

One of the objectives in CACI’s new strategic plan calls for strengthening “Colorado’s critical infrastructure (roads, water, telecommunications and energy).”  Consequently, CACI is monitoring developments in the transportation-funding arena.  In the coming weeks, the CACI Board of directors will discuss funding proposals as they are put forth in the legislature.

On Wednesday, Governor Ritter presented his Blue Ribbon Transportation Panel’s final report to the legislature’s joint Transportation Caucus.  The report can be found at:

http://www.colorado.gov/cs/Satellite?c=Page&cid=1185266445450&pagename=GovRitter%2FGOVRLayout

The 32-member Panel was co-chaired by Bob Tointon, Colorado State Treasurer Cary Kennedy and Colorado Transportation Commissioner Doug Aden.  For more on the issue of transportation funding, visit:

http://www.rockymountainnews.com/news/2008/jan/07/motorists-others-face-wallet-shock/

http://www.denverpost.com/search/ci_8133548

http://www.denverpost.com/commented/ci_8124936

Bill to Ban Strikes by State Workers Advances to Senate

The House yesterday on Third Reading passed HB-1189, sponsored by Representative Jim Riesberg (D-Greeley), which applies to only state workers who are covered by the State Personnel System.  CACI supports the bill.  The bill now moves to the Senate for consideration.  The politics of this bill have been interesting, to say the least, with Republicans and Democrats voting both for and against the bill:

http://www.denverpost.com/search/ci_8121272

The bill’s supporters say it is needed to clarify that the Governor’s November 3rd Executive Order does not allow public employees to strike, which could negatively affect the ability of businesses and the general public to receive key state services.

Governor Ritter has said he will sign such a bill in the wake of an opinion by Attorney General John Suthers that state workers have the right to strike. 

The Governor’s early November Executive Order that allows unions to represent state workers in creating “partnership agreements” with the managers of state departments and agencies has provided the political context for the bill.  Another bill, which would have prohibited strikes by all public workers and their employee organizations at either the state or local level, died earlier in the House State, Veterans and Military Affairs Committee.

Bill to Increase CDPHE Flexibility to Enforce Hazardous-Waste Laws Passes Senate

The Senate gave final passage to SB-37 on Tuesday and sent it to the House, where it was assigned to the Health and Human Services Committee.

The bill is sponsored by Senator Ron Tupa (D-Boulder) and Representative Randy Fischer (D-Fort Collins).  Following negotiations with the Colorado Department of Public Health and Environment, the CACI Industrial Waste Committee recommended that the CACI Board of Directors remain neutral on the bill.

SB-37 is a CDPHE omnibus bill that would make a change requested by the legislature’s Capital Development Committee regarding the time-frame for funding for “brown-field” cleanup.  The bill revamps hazardous-waste fees to fairly allocate Federal dollars by removing the caps and changing the formula, but maintaining the concept behind the fee structure.  The bill also proposes to revamp the environmental covenants to allow institutional controls when dealing with the Federal Government.  The environmental-use restriction is an effort to develop mechanisms short of litigation to resolve institutional-control issues at Federal-facility cleanup sites.  CACI’s Industrial Waste Committee was concerned about the unilateral imposition of environmental use restrictions on Colorado private-property owners.

CACI’s 2008 Lobbying Team

For the 2008 legislative session, CACI is fielding its strongest lobbying team of recent years.  CACI’s lobbying effort is headed by Chuck Berry, CACI President and former Speaker of the Colorado House of Representatives.  Berry joined CACI in June 2000 as CACI President, having served 14 years in the House.

Directing the CACI lobbying team at the State Capitol on a daily basis is CACI’s Vice President of Governmental Affairs, Donnah Moody.  Donnah is lobbying her third legislative session for CACI.  Prior to joining CACI in October 2005, she had served the four years prior as the lead lobbyist for the Colorado Rural Electric Association.

In a recent issue of The Colorado Capitol Report, CACI members were introduced to CACI’s newest full-time lobbyist, Loren Rachel Furman, CACI Director of Governmental Affairs.

Assisting with CACI’s lobbying efforts are Steve Balcerovich and Larry Hudson.  Steve is working his tenth session as a contract lobbyist for CACI while Larry is working his third session.  Larry is devoted full-time to lobbying and is “Of Counsel for Governmental Affairs” with the law firm of Greenberg Traurig, LLP.  Larry previously worked in the policy office of Colorado Governor Bill Owens.

Local Chambers of Commerce Critical to CACI’s Success

Local chambers of commerce play a vital role in CACI’s mission of championing a healthy business climate at the Colorado State Capitol and with the U.S. Congress.  About 30 local chambers of commerce across Colorado are dues-paying members of CACI.  A list of these chambers, with links to their Web sites, can be found on the CACI Web site.

CACI also houses and supports the Colorado Chamber of Commerce Executives (CCCE), a statewide association of local chamber executives, which provides CACI with policy input.  A CCCE representative serves on the CACI Board of Directors.  This representative is Amy Sherman, President and CEO of the West Chamber Serving Jefferson County.

About CACI’s Legislative Alerts

During the legislative session, the CACI lobbying team may decide that its effort on working a particular bill could be helped significantly if CACI members were to contact their respective legislators, depending on whether the bill is being heard in a committee or on the House or Senate Chamber floor.  In this case, CACI will send a Legislative Alert e-mail to its members, urging them to contact key legislators about the bill and providing the relevant contact information (name, district, party affiliation, phone number, fax number and e-mail address).  In addition, CACI may send out a Legislative Alert when an important bill on the CACI Legislative Agenda passes a critical vote or is killed, either in a committee or on a chamber floor, or when it passes the legislature and when the Governor takes action on the bill, either signing it into law or vetoing it.

For More Information on Legislation . . .

CACI members with questions about legislation that CACI opposes or supports should contact Chuck Berry, CACI President, at 303.866.9652 or e-mail him at cberry@COchamber.com

Questions pertaining to health-care bills should be directed to Ralph Pollock, Chair of the CACI HealthCare Council, at 303.866.9657 or via e-mail at ralph@apaccess.com