341891E4DACCD61887258964007121A6 Hearing Summary

The committee was called to order. A quorum was present. Representative Weissman, prime sponsor, presented House Bill 23-1192, concerning the creation of additional protections in the consumer code. Committee members received a packet of supporting information for the bill (Attachment A).  Representative Weissman read a statement defining a class of consumer protection laws. Representative Weissman explained the effect of the bill and discussed its need. Representative Weissman responded to questions regarding the potential for litigation as a result of the bill, and the scope of the bill. Representative Weissman responded to further questions regarding the removal of a "knowingly and recklessly" standard by the bill, and the ability of people to access claims under the Colorado Consumer Protection Act. Discussion ensued regarding consumer protection legislation that passed in 2019.

Steve Kaufmann, representing himself, testified in support of the bill.

David Seligman, representing Towards Justice, testified in support of HB 23-1192.

Melissa Mejia, representing Community Economic Defense Project, testified in support of the bill. Mr. Seligman responded to questions regarding what constitutes a deceptive trade practice that is unconscionable under the bill, and the removal of the mens rea element by the bill. Discussion ensued regarding the stakeholder process in crafting the bill. Representative Weissman provided input on this discussion. Discussion returned to the unconscionable deceptive trade practice language in the bill. Mr. Kaufmann responded to questions regarding what constitutes "unfairness" under the bill. Ms. Mejia responded to questions regarding how the bill impacts the public. Mr. Kaufmann responded to questions regarding a change in the definition of "recklessly" by the bill.

Carolyn Carter, representing National Consumer Law Center, testified in support of the bill. Mrs. Sara Gagliardi, representing herself, testified in support of the bill. Ms. Isabel Cruz, representing Colorado Consumer Health Initiative, testified in support of the bill. Ms. Gagliardi responded to questions regarding the removal of the "knowingly and recklessly" language by the bill. Ms. Carter responded to questions regarding how HB 23-1192 compares to consumer protection laws in other states.

Ted Leighty, representing Colorado Association of Home Builders, testified on HB 23-1192 from an "amend" position.

Alison Morgan, representing Colorado Bankers Association, testified to amend the bill.

Betty Knecht, representing the Colorado Morgage Association, testified on the bill from an "amend" position. Mr. Leighty responded to questions regarding potential unintended consequences should the bill pass, and the removal of public impact requirements by the bill. Discussion ensued regarding a reduction in the amount of home building that might occur if the bill were to pass.

Austin Blumenfeld, representing Centennial State Prosperity, testified in support of the bill.

Mr. Michael Gifford, representing AGC Colorado, testified in opposition to the bill.

John Mill, representing Associated General Contractors of Colorado, testified in opposition to the bill.

Mr David Dazlich, representing Colorado Springs Chamber & Economic Development Corporation, testified in opposition to the bill. Mr. Mill responded to questions regarding the potential growth of construction defects lawsuits as a result of the passage of HB 23-1192, and the potential for "bad actors" to be held more strictly accountable by the bill. Mr. Mill responded to further questions regarding the defrauding of individuals under the Colorado Consumer Protection Act.

Mr Matthew Osborne, representing himself, testified in support of the bill. Catherine Ordonez, representing American Civil Liberties Union of Colorado, testified in support of the bill. Ms. Karen Cody-Hopkins, representing herself, testified in support of the bill. Mr. Osborne responded to questions regarding the fact pattern of a case he discussed.

Nina DiSalvo, representing Towards Justice, testified in support of the bill.

Jan Zavislan, representing Department of Law, testified in support of the bill. Mr. Zavislan responded to questions regarding the impact of HB 23-1192 on the number of consumer protection lawsuits in Colorado, and the potential impact of the bill on residential construction.

Representative Weissman explained the effect of amendment L.001 (Attachment B). Representative Weissman responded to questions regarding certain definitions in the bill.

Representative Weissman explained the effect of amendment L.006 (Attachment C). Representative Weissman responded to questions regarding the placement of the language in the amendment in HB 23-1192.

Discussion ensued regarding creating a potential amendment to HB 23-1192 for a future hearing. Representative Weissman provided closing remarks in support of the bill. Various committee members provided their positions on the bill.