s_sa_2017a_2017-05-04t10:40:16z9 Hearing Summary

Date: 05/04/2017

Location: SCR 352

12:07 PM -- HB17-1119



Senator Jahn, co-prime sponsor, presented House Bill 17-1119 to the committee. This reengrossed bill creates the Uninsured Employer Board (board) and the Colorado Uninsured Employer Fund (fund) in the Division of Workers' Compensation (division) of the Colorado Department of Labor and Employment (CDLE). The board oversees the fund, which is designed to pay benefits to injured workers whose employers do not have workers' compensation insurance beginning January 1, 2020.



Uninsured Employer Board. The board must adopt a plan of operation by September 1, 2018, including procedures for carrying out the board's powers and duties, for reimbursing board members, for filing claims, for pursuing actions against uninsured employers, and for contracting with third-party administrators. The board, its agents, or its employees are immune from civil liability in the performance of their duties.



Colorado Uninsured Employer Fund. The fund consists of fines collected from employers failing to carry workers' compensation insurance; other civil penalties, fines, and revenue collected by the division; and any appropriations made to the fund, including earned interest. The bill specifies that, in some instances, penalty revenue from workers' compensation insurance violations go to the fund rather than the Workers' Compensation Cash Fund, the Subsequent Injury Cash Fund, or the General Fund. The fund is authorized to accept gifts, grants, and donations. It is exempt from the statutory limits on uncommitted reserves. The bill establishes procedures for payment of benefits from the fund and collection of benefits from employers whose employees file covered claims with the fund. A performance audit of the fund must be completed by June 1, 2022.



The bill also allows CDLE, in certain circumstances, to enter into settlement agreements with employers who violate sections of workers' compensation law and to negotiate fines lower than the minimum amount. This provision of statute is subject to a sunset review before July 1, 2022.



Senator Jahn discussed amendment L.010 (Attachment H).



17SenateState0504AttachH.pdf



12:11 PM -- Sonia Guenther, representing the Workers' Compensation Coalition, testified against the bill.



12:16 PM -- Tony Gagliardi, representing the National Federation of Independent Business, testified in support of the bill.



12:19 PM -- Edie Sonn, representing Pinnacol Assurance, testified in support of the bill.





12:22 PM



Mr. Gagliardi and Ms. Sonn responded to committee member questions.



12:31 PM -- Shelley Dodge, representing the Worker's Compensation Education Association, testified in support of the bill.



12:33 PM -- Mark Larson, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill and amendment L.010.



12:34 PM -- Nicholas Colglazier, representing the Colorado Competitive Council, testified in support of the bill.



12:36 PM -- Pat Teegarden, representing CDLE, testified in support of the bill.



12:38 PM -- Paul Tauriello, representing the CDLE Workers' Compensation Division, testified in support of the bill.



12:41 PM -- Kjersten Forseth, representing the Colorado AFL-CIO, testified on the bill from a neutral position.





12:44 PM



Mr. Tauriello responded to committee member questions.





12:52 PM



Senator Jahn wrapped up her presentation of the bill.