This legislative session, the Chamber weighed in on 85 bills. The success rate of the Chamber this year increased by 15 percent from last year to 75 percent overall. As in the past several years, a balance in political power between the two chambers meant it was easier to kill bills we opposed than it was to pass bills we supported.
While we were pleased by the increase in our overall success rate, we were disappointed by the outcome of our two top priorities: repealing and reenacting the hospital provider fee as an enterprise fund and reforming construction defects litigation. These are two longgame issues that stand to impact our economy for years.
Construction Defects Litigation Reform
For a third year, we came with a broad coalition to the legislature in hopes that making changes would prompt the development of affordable condominiums. In the final days of the session, negotiations to address construction defects and the guaranteed litigation that has led to virtually no new condo construction in the metro area in years fell apart. With the loss of construction defects, we continue to try to address affordable workforce housing in an environment where litigation rules create a market environment that works against our goal of delivering more affordable housing for our workforce. There are long-term economic consequences for our failure to address this issue: We will face the challenge of keeping a diverse, young and qualified workforce here in the long run. Though we supported many bills, including modifications to the Low-income Housing Tax Credit, aimed at increasing opportunities for affordable housing, we could not come to an agreement on this important issue.
Hospital Provider Fee Enterprise Fund
The Chamber was extremely supportive of a bill to repeal and reenact the hospital provider fee as an enterprise fund, which we believe is the accurate way to account for the funds generated through the fee. Colorado now stands to lose $700 million for transportation in the next four years because our legislature did not address this critical issue. Further, Colorado will not be able to reduce the current estimated shortfall in the state budget by $500 million. And, that shortfall will have to be made up for by cutting education funding—both K-12 and higher education.
That said, we had some success at the legislature as well:
Defense of education reform: The Chamber opposed a bill that would have removed 9th grade standardized testing, a critical point for assessing how our kids are doing in school. The Chamber also opposed bills that would have repealed mutual consent for teacher assignment and eliminated the requirement that educator evaluations consider— at least in part—student growth. We believe both are critical to improving education in Colorado.
Defense of public-private partnerships: The Chamber opposed a bill that would have changed the previously agreed to terms of a public-private partnership along U.S. 36 that is already being executed.
Defense of the business community: The Chamber opposed a bill that would have allowed discrimination of the LGBTQ community, which is counter to the inclusive culture of our business community; a bill that would have imposed a fee on employers paying minimum wage that lacked stakeholder engagement and review; and a bill that would have impacted Colorado’s economic development by penalizing legitimate and lawabiding Colorado businesses by requiring Colorado companies to pay taxes in Colorado for any foreign affiliates that are incorporated in tax haven jurisdictions.
Support of critical clarifications: The Chamber supported a late status bill to clarify the validity of special district elections held prior to the Landmark Appellate Court decision in early 2016. The law prevents challenges to the qualifications of special district directors, thereby creating an immediate, sensible and efficient fix to prevent a serious breakdown to our state’s special districts.
Laura Giocomo is the vice president of communications and marketing for the Denver Metro Chamber.
This was originally published in the summer issues of Business Altitude. Click here to read the full issue.