CLICS/CLICS2022A/commsumm.nsf
PUBLIC
BILL SUMMARY For HB22-1317
HOUSE COMMITTEE ON JUDICIARY
Date Apr 6, 2022
Location HCR 0107
HB22-1317 - Amended, referred to the Committee of the Whole
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01:38:15 PM |
The committee was
called to order. A quorum was present. Representative Tipper,
prime sponsor, presented House Bill 22-1317. Representative Tipper
explained the effect of the bill and discussed its need. She also
discussed case law impacting non-compete covenants for employment. Representative
Tipper responded to questions regarding the scope of the bill in terms
of types of employment covered, including law enforcement, and the definition
of certain terms in the bill. Discussion ensued regarding some forthcoming
amendments.
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02:10:26 PM |
Rachel Arnow-Richmond,
representing herself, testified in support of HB 22-1317. Written
testimony may be found in Attachment A.
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02:19:06 PM |
Loren Furman, representing the Colorado Chamber of Commerce, testified in opposition to HB 22-1317.
Michael Greco, representing the South Metro Denver Chamber of Commerce and Fisher & Phillips LLC, testified on the bill from an "amend" position.
Tony Gagliardi,representing the National Federation of Independent Business, testified in opposition to the bill.
Josh Ewing, representing the Colorado Hospital Association, testified on the bill from a neutral position.
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02:35:00 PM |
Evan Starr, representing himself, testified in support of HB 22-1317. Professor Starr responded to questions regarding the $100,000 salary threshold for noncompete agreements, and nonsolicitation agreements for lower-salary workers. Professor Starr responded to further questions regarding the time frame within which employees sign noncompete agreements.
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02:46:13 PM |
David Seligman, representing Towards Justice, testified in support of HB 22-1317.
Sundeep Vaheesan, representing the Open Markets Institute, testified in support of the bill.
Terri Gerstein, representing herself, testified in support of the bill.
Mr. Seligman responded to questions regarding the ability of employers to recoup investments in employees, such as education, under the bill, and pro-rating these investment costs. Discussion ensued regarding how the bill would protect trade secrets and other proprietary information, particularly with respect to those who are not highly compensated. Discussion followed regarding use of customer lists upon employment separation under the bill.
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03:20:10 PM |
Nina DiSalvo, representing Towards Justice, testified in support of HB 22-1317.
Brian Moore, representing Jester Gibson & Moore LLP, testified in support of HB 22-1317.
Edith Mata, representing 9to5 Colorado, testified in support of the bill.
Meredith Munro, representing herself, testified in support of the bill.
Discussion ensued regarding the potential economic impact of the bill, and the remedies available in the bill for violations. Mr. Moore responded to questions regarding the types of noncompete covenants that would be voided by the bill, and porting customer lists after employment separation under the bill. Discussion followed regarding disclosures associated with signing noncompete and nondisclosure covenants.
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03:52:53 PM |
Representative Tipper
explained the effect of amendment L.001 (Attachment B).
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03:56:40 PM
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Motion |
Adopt amendment L.001 |
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| Moved |
Tipper |
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| Seconded |
Weissman |
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Amabile |
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Bacon |
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Benavidez |
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Bockenfeld |
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Carver |
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Daugherty |
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Luck |
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Lynch |
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Roberts |
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Tipper |
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Weissman |
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YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection |
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03:56:59 PM |
The committee discsussed
L.002 (Attachment C).
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03:57:12 PM
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Motion |
Adopt amendment L.002 |
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| Moved |
Tipper |
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| Seconded |
Weissman |
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Amabile |
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Bacon |
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Benavidez |
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Bockenfeld |
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Carver |
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Daugherty |
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Luck |
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Lynch |
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Roberts |
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Tipper |
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Weissman |
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YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection |
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03:57:15 PM |
Representative Tipper
explained the effect of amendment L.003 (Attachment D).
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03:58:41 PM
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Motion |
Adopt amendment L.003 |
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| Moved |
Tipper |
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| Seconded |
Weissman |
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Amabile |
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Bacon |
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Benavidez |
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Bockenfeld |
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Carver |
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Daugherty |
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Luck |
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Lynch |
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Roberts |
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Tipper |
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Weissman |
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YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection |
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03:58:43 PM |
Representative Tipper
explained the effect of amendment L.004 (Attachment E).
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04:01:53 PM
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Motion |
Adopt amendment L.004 |
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| Moved |
Tipper |
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| Seconded |
Weissman |
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Amabile |
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Bacon |
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Benavidez |
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Bockenfeld |
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Carver |
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Daugherty |
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Luck |
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Lynch |
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Roberts |
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Tipper |
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Weissman |
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YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection |
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04:01:56 PM |
Representative Tipper provided closing remarks in support of HB 22-1317. Various committee members provided their positions on the bill.
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04:11:08 PM
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Motion |
Refer House Bill 22-1317, as amended, to the Committee of the Whole. |
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| Moved |
Tipper |
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| Seconded |
Weissman |
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Amabile |
Yes |
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Bacon |
Yes |
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Benavidez |
Yes |
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Bockenfeld |
No |
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Carver |
No |
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Daugherty |
Yes |
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Luck |
No |
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Lynch |
No |
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Roberts |
Yes |
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Tipper |
Yes |
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Weissman |
Yes |
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Final |
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS |
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