Dan Pilcher

CACI Senior Vice President

& Chief Operating Officer

Phone: 303.866.9600

E-Mail: dpilcher@COchamber.com

www.COchamber.com

Friday, January 30, 2009

CACI Strongly Opposes HB-1210, the “Healthy Families and Workplaces Act,” which Would Mandate that Employers Provide Paid Sick Leave

Introduced in the House yesterday, the bill is sponsored by Representative Anne McGihon (D-Denver), an attorney, who specializes in employment law, among other areas:

http://www.mcgihonlaw.com/firm.htm

The Senate Sponsor is Senator Morgan Carroll (D-Aurora), a trial attorney:

http://www.bradleyandcarroll.com/?Morgan_Carroll

HB-1210 has been assigned to the House Business Affairs and Labor Committee.  CACI members are urged to go to the Headlines section of the CACI Web site to print out or download this bill and study its provisions.  Please e-mail your comments as soon as possible to Loren Furman, CACI Vice President of Governmental Affairs, at lfurman@COchamber.com

The bill sets for the idea forth the first time that “All employees working Colorado have the right to paid sick leave as specified in this Article.”

Specifically, the bill would require that companies provide the leave according to the following schedule:

• For companies with more than 15 workers, one hour of sick leave for every 30 hours worked up to a total of 72 hours paid sick leave in a twelve-month period;

• For employers with at least six workers and up to 15, one hour of sick leave for every 60 hours worked up to a total of 40 hours in a 12-month period.

The bill would require employers to roll forward into the next 12-month period any unused sick leave.  It would also force employers to allow the workers to use the sick leave for a specified number of purposes, including obtaining “preventive medical care,” and caring for a “family member.”  A “family member” is defined in a number of ways, including “a person who resides with the employee and has resided with the employee for more than six months.”

Employers would be required to begin accruing sick leave from the first day of a new worker’s employment, thus not allowing an employer to exercise a probationary period before the worker receives the mandated benefit.  Employers would be strictly regulated in how they maintain records and would be barred from taking any “retaliatory” action against a worker who receives sick leave.  The Division of Labor in the Colorado Department of Labor and Employment would be responsible for enforcing the law.

CACI Opposes Bill to Allow Trial Lawyers to Feast on Employment Lawsuits

SB-110 is a so-called “sunset” bill that would reauthorize the Colorado Civil Rights Commission and the Colorado Civil Rights Division until 2018.  If this were the only purpose of the bill, CACI would not be concerned with it.

Currently, a plaintiff who wins an employment discrimination claim can recover such actual economic damages as lost wages.

This bill, advocated by trial attorneys, would allow employment lawsuits to be diverted from the Federal courts, where they are now considered as federal EEOC cases and where juries and judges decide awards, to state district courts.

In practical terms, trial attorneys would be able to go after employers in state courts for larger settlements and awards.

This bill would allow a plaintiff in an employment lawsuit for the first time to recover compensatory and punitive damages up to certain amounts, according to the following schedule based on the size of the business:

• 14 or fewer workers, $25,000;

• 15 to 100, $50,000;

• 101 to 200; $100,000;

• 201 to 500, $200,000; and

• 501 or more, $300,000.

Federal law exempts small businesses because they face significant financial costs to defend themselves against these lawsuits.  As the above schedule demonstrates, however, this bill opens small businesses up to substantial damage awards that could put them out of business.  A plaintiff would also be able to recover attorneys’ fees.

The bill is scheduled to be heard Monday by the Senate Judiciary Committee, which will meet at 1:30 p.m. in Senate Committee Room 356.  It is sponsored by Senator John Morse (D-Colorado Springs).

In opposing the bill, CACI is working closely with the Colorado Civil Justice League, the tort-reform coalition, with which CACI is mutually affiliated.  The CCJL has created a fact-sheet on this bill, which can be found on the CCJL Web site along with a CCJL press release on the bill:

http://www.ccjl.com/

CACI-Opposed “Colorado Shareholder Protection Act” Set for Hearing Tuesday

HB-1117 is scheduled to be heard Tuesday by the House Committee on Business Affairs and Labor which begins its meeting at 1:30 p.m. in Room 112.  The bill is sponsored by Representative Jerry Frangas (D-Denver).

The bill is aimed at prohibiting, or recovering, “unearned compensation” from the top five executives at publicly-traded firms who earn more than $1 million per year when the firm is failing by being “undercapitalized.”  HB-1117 allows shareholders, creditors, the Colorado Attorney General and others to try to recover the compensation.  HB-1117 doesn't specify the types of damages that can be obtained.  This bill also would likely encourage lawsuits against corporations by executives because it would negate or modify their employment contracts or agreements.

Once Again, CACI Opposes Bill to Mandate that Employers Use the Federal “E-Verify” Program to Determine Work-Eligibility Status of Prospective Employees

Sponsored by Senator Dave Schultheis (R-Colorado Springs), SB-23 is calendared to be heard Wednesday by the Senate State, Veterans and Military Affairs Committee, which meets at 1:30 p.m. in Senate Committee Room 353.

SB-23 would repeal existing state law governing how employers screen prospective new workers and impose the “Fair and Legal Employment for Coloradans Act.”  This proposal would mandate that Colorado private-sector employers participate in the voluntary federal electronic verification program called E-Verify to determine the legal eligibility for employment of prospective workers.

CACI’s primary objection is that the underfunded E-Verify program is neither accurate nor provides for timely verification of work-eligibility status.  Requiring Colorado’s 500,000 private-sector businesses to participate or face significant fines and penalties places an undue burden on them, does not accomplish the goal of eliminating illegal workers, and, therefore, does not make sense.

SB-23 is modeled on a controversial, stringent Arizona law that is being fought by employers in federal court.  Among other things, SB-23 allows a co-worker to bring up a complaint against an employer if the worker thinks that a co-worker is an illegal immigrant.  The bill also includes a ten-day business license revocation if it is proved that the company hired an illegal worker.  If there is a subsequent offense, the business could lose its business license permanently.

CACI opposed similar legislation in milder forms in the 2007 and 2008 sessions as well as during the special session on illegal immigration in the summer of 2006.  CACI also is participating in an amicus curiae brief with eleven other state chambers of commerce and manufacturing associations in the case before the U.S. Court of Appeals for the Ninth Circuit challenging the Arizona law.

Mandated Parental Leave Bill Placed in a Holding Pattern

Although HB-1057 was scheduled yesterday by the House Education Committee to be voted on following consideration of amendments, the bill was laid over.  HB-1057 would require companies that employ more than 10 workers to provide up to six hours of unpaid leave per month and up to 40 hours in an academic year to workers who want to attend parent-teacher conferences or other academic activities related to the educational achievement of the employee’s child.

Thanks to our members for helping on this bill . . .

On Wednesday morning, Bonnie Finley, CACI Program Director, activated the CACI Grassroots Program and sent out an e-mail to those concerned with this bill to contact their lawmakers.  We also want to especially thank the following local chamber executives for reaching out to legislators on the House Education Committee based on their concerns with this bill:

• Kevin Hougen, President, Aurora Chamber of Commerce;

• Amy Sherman, President, West Chamber Serving Jefferson County;

• Stephannie Finley, President, Government Affairs and Public Policy, Colorado Springs Chamber of Commerce

• Sharon Russell, Executive Director, Summit County Chamber of Commerce

And a clarification and more thanks . . .

In last Friday’s issue of The Colorado Capitol Report, concerning CACI’s testimony in opposition to the mandated parental-leave bill, HB-1057 before the House Education Committee on January 22nd, I overlooked one CACI member who also spoke in opposition to the bill: Dan Block, an attorney with the law firm of Robinson Waters & O'Dorisio, PC, Denver.  We appreciate Dan taking the time to attend the hearing and testify.

 

CACI Testifies in Support of Governor’s Tax-Credit Incentive Bill

On Wednesday, the House Business Affairs and Labor Committee heard HB-1001, the job-creation tax credit bill advocated by Governor Bill Ritter, and passed it unanimously, thus sending it to the House Floor for Second Reading.

CACI Vice President of Governmental Affairs Loren Furman testified in support of the bill:

On behalf of CACI, we applaud Representative Rice and the Legislature’s efforts to create new jobs in this economic climate.   We believe that this tax credit will persuade companies to expand their operations in Colorado or even encourage companies to move their operations to our state, which will increase the availability of jobs here.

Right now, Colorado has some onerous taxes such as the business personal property tax that makes it difficult to recruit companies to our state.  This bill could help provide a tax incentive for business that is long overdue. 

Again, we think this bill sends a good message that the state is willing to give tax credits to businesses to encourage economic development.   And, it is our hope that we will see more of this type of legislation in the future. 

The bill is sponsored by Representative Joe Rice (D-Littleton), who chairs the House Business Affairs and Labor Committee.

The bill is intended to provide an incentive for businesses to create jobs.  To participate in the 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 percent 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 has to prove that if it wasn’t for this program that the company would not move or expand its operations in Colorado.

CACI Sends Letter to Governor and Legislative Leaders about Business Personal Property Tax

Senate Republican Leader Josh Penry (R-Grand Junction) discusses business issues Wednesday with CACI’s Chuck Berry and Loren Furman.

This session, there are a couple of bills that have been introduced concerning the business personal property tax.

One of these bills is SB-85, which is calendared for a hearing Monday, February 9th, by the Senate Business Labor and Technology Committee and which meets at 1:30 p.m. in Senate Committee Room 354.  The bill is sponsored by Senator Mark Scheffel (R-Parker).  As of today, CACI has not taken a position on this bill as introduced.

SB-85 would create an 18-year phase-out of the tax, but it would exempt the centrally-assessed companies.  CACI’s research has found that the top 100 companies in Colorado pay about 46 percent of the business personal property tax, and the centrally-assessed companies fall into this category.  CACI traditionally opposes bills that favor one segment of the business community over another.

Meanwhile, CACI President Chuck Berry this week sent letters to Governor Ritter and the legislative leadership about CACI’s policy on the business personal property tax.  Here is the body of the letters:

As state government seriously considers the challenge of creating private-sector jobs in this very economically difficult time, the Colorado Association of Commerce and Industry would strongly urge you to seriously consider making the phase-out of the business personal property tax part of this effort.

CACI’s long-term policy has been to advocate elimination of this onerous tax on manufacturers and other Colorado capital-intensive businesses.  We recognize that a simple repeal of the tax is unrealistic, however, and would impose serious fiscal burdens on school districts and local governments.

Nonetheless, in recent years, CACI has favored a gradual phase-out to give localities the time to develop alternative revenue sources.  A thoughtful phase-out would send a very strong message to existing business in the state and business investors around the country that Colorado is anxious to retain and compete for high-paying jobs, especially for those companies that have substantial capital investments.

A starting approach might be several of the proposals that came out of the 2004 interim committee on the business personal property tax.  I recall a substantive discussion about a phase-out bill with statutory triggers to vary the rate of annual reduction based on economic conditions.

At a minimum, the Legislature could begin this year by eliminating the business personal property tax on fully depreciated equipment.  There is simply no reason that businesses should continue to pay a property tax on equipment that in many cases they are no longer using and simply storing on their property.  Taking this step will alleviate one of the major frustrations that the business community has with this tax.

We also recognize that the phase-out legislation would need to address the situation in some of the rural counties that substantially rely on the revenue they receive from such large business facilities as power plants.

Through our Tax Council, CACI would be willing to participate in any working group that is set up to develop legislation.  Our Tax Council includes the state and local tax managers of most of Colorado's large, private-sector employers as well as most of the leading state and local tax lawyers and accountants who represent businesses in our state.

Upcoming CACI Council Meetings

The Energy and Environment Council meets at 12 Noon on Wednesday, February 4th, and the featured guest will be Representative Buffie McFadyen (D-Pueblo West), who chairs the House Committee on Transportation and Energy.

Representative Joel Judd (D-Denver), Chair of the House Finance Committee, will be the featured guest speaker at the CACI Tax Council meeting at 12 Noon, Friday, February 6th. 

NOTE:  All meetings will be held in the Conference Room at the CACI Office.  Information about all Council meetings and agendas can be accessed on the CACI Web site.  If you, as a CACI member, are not a member of these councils and want to join, please e-mail Misty Fox at mfox@COchamber.com

Second Audio Report by CACI President Chuck Berry Available on CACI Web Site

Today, CACI President Chuck Berry and Loren Furman, CACI Vice President of Governmental Affairs, participated in the second recorded telephone conference call this session with local chamber of commerce executives to discuss business issues and bills before the legislature as well as CACI’s Legislative Agenda.  You can listen to this briefing on the CACI Web site Home Page or download it as an MP3 file.  Chuck will participate in such conference calls every other Friday, and the next one will be Friday, February 13th.

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

Western Climate-Change Policy Forum Scheduled for February 26 in Denver

Governor Bill Ritter will headline a western regional conference on greenhouse gas reporting and regulation on February 26 in Denver that will be attended by representatives of state governments, businesses, environmental organizations and other stakeholder organizations.

Sponsored by the Climate Change Registry, the Forum--one of three to be held across the country--is scheduled for the Hyatt Regency Denver at the Colorado Convention Center.  For more on the Climate Change Registry and to register for the Forum (whose cost is $250 for businesses that are members of the Registry and $325 for non-members), visit:

http://www.theclimateregistry.org/

Confirmed speakers include:

• William Becker, Executive Director, Presidential Climate Action Project, University of Colorado (Denver).

• Linda Adams, Secretary for Environmental Protection, California Air Resources Board

• Rick Adcock, Senior Vice President, CAMCO

• Steve Anderson, Executive Director, British Columbia Climate Change and Intergovernmental Relations

• Randy Armstrong, Environmental Issues Director, Shell

• John Corra, Director, Wyoming Department of Environmental Quality

• Leo Drozdoff, Administrator, Nevada Environmental Protection

• Kevin Doran, Senior Fellow, Center for Energy & Environmental Security, University of Colorado

• Fiji George, Manager, Corporate Strategy and Development, El Paso Western Pipelines

• Gary Gero, President, California Climate Action Registry

• Jim Martin, Executive Director, Colorado Department of Public Health and Environment

• Wendy Pulling, Director Environmental Policy, PG&E

• Cathy Woollums, Senior Vice President, Environment, Pacificorp

• Carl Zichella, Director, Sierra Club