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By
Dan Pilcher
CACI Senior Vice President
& Chief Operating Officer
Phone: 303.866-9600
E-Mail:
dpilcher@COchamber.com
Friday, March 16, 2007
Happy St. Patrick’s Day!
CACI Argues for
Comprehensive Approach to Legislation Involving Oil and
Gas Industry in Letter to House Committee and Governor
This session has seen an explosion of bills targeting
the oil and gas industry, including one, HB-1341, which
would drastically change the composition and mission of
the Colorado Oil and Gas Commission, the main entity for
regulation of the industry.
HB-1341, sponsored by Rep. Kathleen Curry (D-Gunnison)
passed the House Agriculture, Livestock and Natural
Resources Committee (which she chairs) Wednesday and was
sent to the House Floor for Second Reading.
CACI is concerned that the net effect of the various
bills will be to damage the industry, which is a vital
part of the state’s economy in terms of jobs and
contribution of tax revenues to state and local
governments. Consequently, CACI President Chuck Berry
sent a letter Wednesday to members of Representative
Curry’s Committee and copied the letter to Governor Bill
Ritter. Here is the text of the letter:
The Colorado Association of
Commerce and Industry (CACI) is becoming increasingly
concerned at the large number of proposals aimed at
issues surrounding oil and natural gas regulation.
Recent press reports and letters of concern from around
the state underscore our interest in the ultimate impact
of these many independent efforts.
Oil and natural gas is
clearly one of Colorado’s most significant industries,
employing tens of thousands of workers and providing
some of the highest paying jobs in this state. The
industry creates billions of dollars of economic
activity throughout the State. Hundreds of millions of
dollars in tax revenue generated by this industry
support state and local government programs and
services, including a significant base of support for a
number of public school districts. As a natural gas
exporting state, Colorado gas production is a
significant part of our domestic national market, and
with America’s goal of becoming energy independent, we
should be encouraging this industry.
CACI defers to
representatives of the oil and gas industry for
specifics on any particular provision and its
impact, but we are in agreement with the assessment that
a comprehensive approach to addressing issues for such
an important industry must occur if all stakeholders,
including industrial consumers are to participate and
understand the impacts of these changes.
CACI is concerned that a
“scatter-shot” approach to these issues could result in
a significant reduction in activity in Colorado,
resulting in lower capital investment, reduced activity
levels and employment and less natural gas
production that would negatively impact supply and
prices paid by consumers. These impacts must be
considered and studied in advance of significant
legislative and regulatory reform for this industry.
HB07-1341 is but one of many
bills that have been or may yet be introduced in this
Session. CACI encourages a thoughtful and comprehensive
approach to a reform measure taking into account the
cumulative impacts of any major proposals affecting this
important industry.
The Rocky Mountain News has published two stories
recently on this issue:
http://www.rockymountainnews.com/drmn/energy/article/0,2777,DRMN
_23914_5413558,00.html
http://www.rockymountainnews.com/drmn/energy/article/0,2777,DRMN
_23914_5418298,00.html
CACI Leads Coalition of
CACI Members in Negotiations on HB-1176
On Monday, CACI Governmental Affairs Vice President
Donnah Moody represented a CACI coalition in a meeting
with Representative Morgan Carroll (D-Aurora) to resolve
differences over her bill, HB-1176, which would grant an
injured worker a choice of two approved workers’ comp
doctors for treatment.
The bill is awaiting Second Reading by the House.
Last week, Moody convened a “stakeholders’ meeting” of
CACI members (individual companies and trade
associations) to discuss the business community’s
response to the HB-1176. Moody proposed a strategy to
work with Representative Carroll, the House leadership
and the Ritter Administration to clarify issues raised
about the bill.
HB-1176 would require that employers offer a choice of
two unaffiliated workers’ comp doctors. The injured
worker could first select one of the doctors but then
switch to the other within 90 days following the injury
and, provided the worker follows certain procedures, the
request could not be denied. Current law allows for
judicial relief for the small number of workers’ comp
cases that can’t be resolved administratively.
Pollock Debates SB-36,
“Mental-Disorders” Benefits Bill, on Colorado Public
Radio
Ralph Pollock, chair of CACI’s HealthCare Council, on
Wednesday debated Chris Hapgood, Vice President of
Public Policy for the Mental Health Association of
Colorado, on the merits of SB-36 on Colorado Public
Radio’s “Colorado Matters,” which can be heard at:
http://www.kcfr.org/index.php?option=com_content&task=view&id=94
Opposed by CACI, SB-36, which would mandate that
employer-provided health insurance be required to cover
“mental disorders,” is still pending in the Senate
Appropriations Committee. The bill, sponsored by
Senator Moe Keller (D-Wheat Ridge), is being advocated
by the Mental Health Association of Colorado.
CACI opposes bills that would mandate additional
coverage on employer-provided health-care benefits
because it drives up the cost of insurance premiums for
companies. CACI members have told CACI HealthCare
Council Chair Ralph Pollock that they are learning from
their heath plans about the probable impact of SB-36,
which could lead to at least double-digit premium
increases.
Business Personal Property
Tax Bill Passes First Hurdle
HB-1325, sponsored by Representative Joe Rice
(D-Littleton) was approved unanimously by the House
Finance Committee on Wednesday and sent to the House
Appropriations Committee.
The bill would increase the exemption from the tax from
the current $2,500 to $7,000 in three steps: $4,000 for
2007 and 2008; $5,000 for 2009 and 2010; and then $7,000
for 2011 and 2012. For 2013 and afterwards, the amount
will be increased to adjust for inflation on a two-year
cycle.
Under current Colorado law, business personal property
is exempt from tax if the depreciated value of the
property is $2,500 or less. A business owner who
owns property in excess of that amount, however,
receives no exemption and owes taxes on the total value
of the property.
To repeat, the first $2,500 of property is not
exempted if the value of the property exceeds $2,500.
Because of this provision, the effect of this bill will
be virtually negligible on the Colorado business
community.
Although CACI Governmental Affairs Vice President Donnah
Moody testified in support of the bill, she pointed out
that it was only a “baby step” in the direction of
addressing the challenge of eliminating the tax. She
urged lawmakers to think beyond HB-1325 and consider a
three-step process to deal with the business personal
property tax:
1. Exempt property that has totally depreciated from
the tax (such property is still subject to the
tax at 15% of the purchase price);
2. Conform Colorado’s business property depreciation
schedule to that of the IRS; and, most importantly,
3. Phase the tax out by reducing it by 5 percent a year
for 20 years.
Other supporters of the bill included the National
Federation of Independent Businesses, the Northern
Colorado Legislative Alliance, and the Economic
Development Council of Colorado.
For More Information on
Bills . . .
CACI members with questions about legislation that CACI
opposes or supports should contact Chuck Berry, CACI
President, at 303.866.9601 or e-mail him at:
cberry@COchamber.com
Questions pertaining to the health-care policy 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
CACI’s Legislative Agenda is a complete listing of bills
that CACI is lobbying, either in support or opposition.
The Legislative Agenda can be found on the CACI Web
site, where it will be updated on a weekly basis:
www.COchamber.com
If you wish to track a particular bill’s legislative
process, you can do so by going to the legislature’s Web
site:
www.leg.state.co.us
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