h_hie_2016a_2016-04-28t14:32:52z0 Hearing Summary

Date: 04/28/2016

02:33 PM -- HB 16-1435



Representative McCann announced that she was laying over Senate Bill 16-135, concerning a pharmacist's provision of health care services that have been delegated by another health care provider, until Tuesday, May 3, 2016.



Representative K. Becker and Representative Duran, co-prime bill sponsor, presented House Bill 16-1435. The bill creates an employment-related public benefits enterprise (enterprise) as a government-owned business and type 1 agency within the Department of Health Care Policy and Financing (HCPF). The enterprise's stated purpose is to improve the health of low-wage workers and their families and thereby benefit low-wage employers by giving them access to a healthier pool of workers. The board of directors of the enterprise consists of seven members appointed by the Governor, representing employers, organized labor, workers receiving assistance under a state-subsidized health care assistance program, and advocates that provide or support health care services for low-income individuals. The bill specifies the various powers of the enterprise.



On and after January 1, 2017, the enterprise must impose a fee on all low-wage employers. For purposes of the fee, a low-wage employer is defined as any entity that employs 250 or more employees in Colorado and pays some of those employees $12 per hour or less (low-wage employees). The enterprise must set the fee as an amount reasonably calculated to reflect the benefit low-wage employers receive from the provision of state-subsidized health care assistance to low-wage employees, but the fee must be between 25 cents and one dollar per hour worked by each low-wage employee. A low-wage employer may credit health care expenditures to or on behalf of a low-wage employee against the fee for each low-wage employee's hours. As long as the enterprise meets the constitutional requirements for enterprise status under the taxpayer's bill of rights, fee revenue does not count against the state fiscal year spending limit.



The employment-related public benefits fee fund (fund) is created in the state treasury, and all fee revenue and interest and income derived from the deposit and investment of the fund is credited to the fund. The enterprise may expend money from the fund to support and improve health care services provided to individuals who are eligible to receive services under the Colorado Medical Assistance Act and to defray its administrative expenses in implementing and administering provisions of the bill. No money in the fund may be transferred to any other state fund or department or agency of state government.



The bill prohibits employers from firing low-wage employees to avoid paying the fee or from deducting the amount of the fee from employees' wages. The bill prohibits employers from retaliating against employees for whistleblowing or taking various other specified actions relating to implementation or enforcement of the bill. Such retaliation is defined as an unfair employment practice, and an employee retaliated against may file a complaint with the Colorado Civil Rights Division within the Department of Regulatory Agencies. The attorney general and district attorneys are concurrently responsible for the enforcement of the bill.



02:39 PM



Representative Becker and Representative Duran answered questions from the committee.



03:10 PM



Committee discussion with the bill sponsors ensued.



03:14 PM -- Ali Mickelson, Colorado Fiscal Institute, testified in support of the bill.



03:17 PM -- Chris Stiffler, Colorado Fiscal Institute, testified in support of the bill. Mr. Stiffler answered questions from the committee.



03:19 PM



Ms. Mickelson, Representative Becker, and Representative Duran answered questions from the committee.



03:30 PM -- Mizraim Cordero, Denver Metro Chamber of Commerce, testified in opposition to the bill.



03:36 PM



Representative Duran referenced amendments L.002 and L.003 (Attachment A and B). Committee discussion with Mr. Cordero ensued.



160428 AttachA.pdf160428 AttachB.pdf



03:40 PM -- Melissa Benjamin, representing herself, testified in support of the bill.



03:45 PM -- Dianna Orf, Associated Governments of Northwest Colorado, testified in opposition to the bill. Ms. Orf answered question from the committee.



03:48 PM -- Edward Augden, Colorado Alliance of Retired Americans, testified in support of the bill. Mr. Augden answered questions from the committee.



03:55 PM -- Rachelle Bainter, representing herself, testified in support of the bill.



03:57 PM -- Caroline Casteel, Colorado Jobs with Justice, testified in support of the bill. Ms. Casteel answered questions from the committee.



04:02 PM -- Dan Shannon, Gary's Auto Service, testified in support of the bill. Mr. Shannon answered questions from the committee.



04:07 PM



Representative Duran made comments to the committee. Committee discussion with Mr. Shannon continued.





04:10 PM



Representative Duran explained amendments L.002 and L.003. Committee discussion about amendments L.002 and L.003 occurred.

04:15 PM



Representative Becker and Representative Duran made concluding remarks about the bill. Committee members made comments about the bill.