B4CC3589886C915F87258251007E3214 Hearing Summary

The committee recessed.

The committee returned to order. Representative Weissman, prime sponsor, presented House Bill 18-1261, concerning the "Colorado Arbitration Fairness Act".  Committee members received a packet of supporting information (Attachment D), and amendment L.001 (Attachment E).  Representative Weissman explained the effect of the bill and discussed its need.  Representative Weissman responded to questions regarding the potential for the bill to increase court dockets by redirecting arbitration cases to the courts, and the model for the disqualification language in the bill.

Discussion continued regarding the disclosure language in HB 18-1261.

Mr. Kevin Rhoades, representing himself, testified in support of the bill. Mr. Rhoades discussed a recent scandal during which certain private information was stolen from a credit reporting agency, including his private information, and the arbitration clause included with the agency's products. He discussed arbitration clauses associated with the products of other companies.

Ms. Christina James, representing 9to5, and Mr. Ben Lebsack, representing the Colorado Trial Lawyers' Association and the Plaintiff Employee Lawyers Association, testified in support of the bill.  Ms. James discussed the benefits of the bill in terms of employment sexual harassment cases. Mr. Lebsack discussed what causes certain disparities in experiences when using various arbitration services.  Mr. Lebsack responded to questions regarding the need for legislation at the federal level to address arbitration issues. Discussion ensued on this point.

Mr. Ed Shackelford, representing the Colorado Senior Lobby, and Mr. Danny Katz, representing COPIRG, testified in support of HB 18-1261. Mr. Shackelford discussed the potential impact of the bill on cases involving assisted living facilities and condominiums, and related his experience with arbitration. Mr. Katz explained that the bill creates high standards of impartiality

Ms. Melody Moreshed, representing herself, testified in support of the bill. She discussed a student loan provider's control over arbitration and fees associated with the process. Ms. Anne Meier, State Long-term Care Ombudsman, testified in support of HB 18-1261. Ms. Moreshed responded to questions regarding her experiences with arbitration.

Ms. Alma Jones, representing herself, and Mr. Sean Dormer, representing the Colorado Trial Lawyers Association, testified in support of the bill. Ms. Jones drew on her testimony for HB 18-1262 concerning an auto accident, and discussed her difficulties with the company involved. Mr. Dormer discussed the impact of arbitration legislation in other states, and pressure that companies apply in the arbitration process. Discussion ensued regarding arbitration as a cost driver in the housing market, and the impact of insurance costs.

Ms. Marianne Lizza-Irwin, representing the Colorado Bar Association, testified in opposition to HB 18-1261. Ms. Lizza-Irwin expressed some concerns about the bill, and discussed some amendments that may improve the bill. Ms. Lizza-Irwin responded to questions regarding the potential for the bill to be amended to her satisfaction.

Mr. Daniel Combs, representing the Colorado Civil Justice League, the Denver Metro Chamber of Commerce, the Colorado Competitive Council, and the Colorado Association of Commerce and Industry, testified in opposition to the bill. He discussed the breadth of the injunctive relief language in HB 18-1261

Mr. Barry Roseman, representing the Plaintiff Employee Lawyers Association, testified in support of the bill. Mr. Roseman compared ethical considerations between arbitrators and judges, and addressed concerns with the bill raised during earlier testimony. Discussion ensued regarding the potential conflict of HB 18-1261 with current laws that address recusal.

Representative Weissman explained the effect of amendment L.001.

The committee recessed.

The committee returned to order.

Representative Herod provided her position on HB 18-1261. Representative Weissman provided closing remarks in support of the bill.