Denver Metro Chamber of Commerce Hosts 2021 State of the State Presented by Xcel Energy
Virtual Event Featured Remarks from Gov. Jared Polis, Commentary from the Chamber’s Kelly Brough and a Panel of Business Leaders for a Discussion on Economic Development and Policy
DENVER – Today, the Denver Metro Chamber of Commerce gathered to reflect on an historic legislative session that saw leaders tackle issues from health care to transportation. The annual event – regularly attended by elected officials and business leaders – highlighted the many ways business engaged in Colorado policy during the 2021 legislative session. Gov. Jared Polis also shared his thoughts on the session, which concluded last week.
Gov. Polis focused on some bright spots of the legislative session such as stimulus relief for small businesses and transportation. He noted the business community’s partnership as a key factor for the state’s focus on economic recovery following the pandemic.
“We are also prioritizing Colorado’s future by leaving our state’s budget in the healthiest state it’s ever been,” said Gov. Polis. “We’re prepared to weather whatever storms might be headed our way through thoughtful input and partnership with the business community.”
At her last State of the State as President and CEO of the Denver Metro Chamber of Commerce, Kelly Brough contrasted the remarks of Gov. Polis with a reminder of the need for collaboration and stakeholder engagement to craft good policy, and the ways in which legislators failed to work alongside the business community to achieve the goals that all Coloradans share for the state.
“We can’t say it enough. We need policy that recognizes it takes all of us to be successful. That the health of our state budget, our nonprofits and our public sector depend on a thriving private sector,” said Brough. “Just as the private sector relies on strong education, transportation, health care and the support of a nonprofit ecosystem to be successful. It takes us all.”
Brough highlighted examples of collaboration on issues of data privacy and transportation but overall emphasized the need for more stakeholder engagement on issues that impact all Coloradans. This engagement is particularly important when it comes to understanding the long-term consequences of policy on different sectors or communities. Brough warned of the pitfalls that exist when one party is in control at the Capitol. Read Brough’s full remarks.
Business leaders echoed Brough’s focus on the need for more interaction between business leaders and elected officials earlier in the legislative process. J. J. Ament, CEO of the Metro Denver Economic Development Corporation, moderated a discussion between Carla Dore, president, Workplace Resource, Helen Drexler, president & chief executive officer, Delta Dental, Mowa Haile, president, Sky Blue Builders, LLC, and Alice Jackson, president, Xcel Energy.
“Colorado’s sun isn’t necessarily shining everywhere,” remarked Ament. “We’re increasingly hearing from executives and site selectors that they are concerned with where Colorado is headed when it comes to policy – that the cost and regulatory burden of doing business in our state is going up.”
Dore and Haile spoke to challenges that the small business community has experienced due to recent legislation, and how they prepare for the impact of these changes as business owners. Drexler and Jackson added the perspective of large employers in the state and discussed the challenges they – and their employees – have faced over the past year.
All of today’s speakers touched on the fact that Colorado is a great place to live – and should remain a great place to do business for both employers and employees – as the legislature continues to tackle tough issues that impact organizations from all sectors and Coloradans across the state. In addition to Xcel Energy, today’s event was also sponsored by Southwest Airlines and Delta Dental.
View a recording of today’s event.
About the Denver Metro Chamber of Commerce: For 153 years, the Denver Metro Chamber of Commerce has been a leading voice for Colorado’s business community. With a membership that spans the state and includes 3,000 businesses and their 400,000 employees, the Chamber is an effective advocate for small and large businesses. The Chamber’s family of organizations includes the Metro Denver Economic Development Corporation, the Denver Metro Chamber Leadership Foundation, the Denver Metro Small Business Development Center, the Colorado Competitive Council, B:CIVIC, Prosper Colorado and the Denver Opportunity Youth Initiative. For more information, go to denverchamber.org.
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House Bill 1232, “Standardized Health Benefit Plan Colorado Option,” and Senate Bill 175, “Prescription Drug Affordability Review Board,” both advanced despite hours of opposition testimony.
House Bill 1232 passed the Senate on Wednesday with a vote of 19-16. It will now return to the House for a review of the amendments. Ahead of that vote, House Bill 1232 underwent further changes. Amendments included lowering the premium reduction goals from 18% to 15%, removing fines for doctors who do not participate in the state option and eliminating the threat of revoking a hospital’s license for not participating. These amendments do not resolve our concerns with the bill regarding cost-shifting and rate-setting, reaffirming that, although we are committed to working to reduce health care costs in Colorado, the Colorado Option is not the solution.
Senate Bill 175 also aims to solve the high cost of health care – through the artificial price-setting of prescription drugs. This bill passed House Health & Insurance last week and was set to be heard on the House floor this morning. We are opposed to artificial price-setting in any industry, and this bill fails to acknowledge the number of programs that already exist to assist Coloradans with the high cost of prescription drugs. Laura Giocomo Rizzo, Chamber senior vice president of external affairs, testified last week against the bill. You can read that testimony here.
We’ve been incredibly focused on these bills over the past few weeks, and while we support efforts to reduce health care costs that work for both consumers and employers, we feel strongly that these bills do not address the root drivers of rising expenses. We will continue to work with sponsors and advocate for the business community at the Capitol.
Continued Concerns about Details of the Workers’ Rights Act
Earlier this month, we told you about a top priority bill making its way through the legislature. Senate Bill 176, “Protecting Opportunities and Workers’ Rights Act,” creates and expands definitions and processes for harassment and discrimination claims. We know employers do not condone harassment of their employees and that employers must take steps to ensure the safety of workers. However, several provisions of this legislation are problematic to employers and could result in greatly increased liability and litigation without clear benefit to employees.
While a number of our concerns have been addressed, including changes to restrictions on confidentiality agreements and the implications of workplace harassment training, we continue to have conversations with bill sponsors about additional challenges.
Sponsors seek to change the standard by which harassment claims are determined and move away from the current law of severe, which means the harassment may happen in one episode if it involves a particularly offensive incident, or pervasive, which means the harassment involves less serious conduct but happens frequently over a long period of time. We must ensure the law is predictable for employers and removing the current standard, which has legal precedent and provides that stability, will lead to confusion and could open the floodgates to increased litigation.
Additionally, the inclusion of independent contractors in this legislation has been an ongoing concern for us. We’ve seen numerous instances both in legislation and regulatory rulemakings where there is an attempt to expand the definition of “employee” to include independent contractors. Independent contractors are not employees, and all legislation and rules must provide that continued clear distinction between the two.
Senate Bill 176 passed on third reading in the Senate with no amendments. We’ll continue to work with bill sponsors on additional amendments and track this one closely as it moves through the House.
Governor Releases Plans for Federal Funds as Legislators Consider Bills that Raise Taxes
For the last couple of weeks, we’ve been updating you on House Bills 1311 and 1312 that would raise taxes for businesses and certain Coloradans. Lawmakers are considering this legislation to increase taxes at the same time that Gov. Jared Polis announced an influx of federal relief dollars for businesses.
On Monday, Gov. Polis and other legislative leaders held a press conference to announce how Colorado will spend $3.8 billion in American Rescue Plan Act funds to “power the Colorado Comeback.” Through the plan, the state will spend $2 billion this legislative session and $1.8 billion at the beginning of the next session.
Here’s how the funds will be used:
So far, none of the funding is allocated to shoring up the Unemployment Insurance Trust Fund. The state borrowed $1 billion in federal loans to keep the fund solvent.
We think it is illogical and inefficient to provide emergency relief to employers on the one hand, while simultaneously rewriting the tax code to increase their taxes with the other.
House Bill 1311, "Income Tax," would impact personal and corporate income taxes and limit a variety of specific federal deductions. The bill would change the way state taxes are determined for C corporations and limit deductions, including 199A Qualified Business Income deductions, contributions to 529 plans, food and beverage expenses and the capital gains subtraction. Revenue would go to the expansion of the Earned Income Tax Credit (EITC) and Child Care Tax Credit.
House Bill 1312, "Insurance Premium Property Sales Severance Tax," would change certain rules, definitions, procedures and exemptions related to business personal property tax. This bill would substantially impact the home office insurance premium tax rate deduction and significantly reduce tax credits and exemptions on coal.
Funds generated by both bills would be used to expand the business personal property tax exemption from $7,000 to $50,000.
Legislators’ goals of providing tax relief to working families by expanding the EITC and Child Tax Credit are admirable – and ones we strongly support because we know they help the same working families that businesses employ. But legislators are setting up a false and unnecessary choice. With our state budget in a strong position and the influx of federal stimulus dollars providing additional cushion, Colorado has the opportunity to provide tax relief to families, without eliminating tax credits for businesses.
Both bills passed out of Senate Finance on Wednesday on a party line vote. Read Rizzo’s testimony. We will continue to work with lawmakers to push additional amendments.
Colorado’s Stimulus Plans
Colorado’s local reporters have been covering the story about how the state will use its American Rescue Plan funds closely, and we’ve rounded up a selection of their articles, detailing how the funds will be spent:
Join Us June 15 for State of the State Presented by Xcel Energy
The 2021 legislative session is one that we won’t forget for a long time. From stimulus funding to public option to transportation, the business community was in the thick of discussions when it came to policy. At this virtual State of the State, you’ll have the opportunity to hear Colorado Gov. Jared Polis’ thoughts about what crossed his desk – or didn’t cross his desk – in 2021 and what he sees for the future of our state. We’ll also convene a panel of business leaders to talk about the deep connections between our workforce, economic development and policy changes, and Denver Metro Chamber President and CEO Kelly Brough will share the business perspective on this unprecedented session and what it means to Colorado’s economy. Register today.
Chamber Takes Positions on Two Bills
This week, the Chamber also took a position on two bills.
Support
Visit our current legislation page to see all our positions and testimony so far this session.
Take action now - support construction defects litigation reform.
We need your help on a top legislative priority: construction defects. Senate Bill 156 is to be assigned to a House Committee today or tomorrow and we need you to help key legislators understand the importance of granting this important bill a fair hearing – so act now.
Many of you know that for four years we have battled to make changes to construction defects litigation law. These changes would encourage more development of entry-level for-sale real estate, a desirable housing option for our workforce that is not being built today because of the litigation environment. This is of particular importance to millennials, now the largest portion of workers in our economy. Senate Bill 156 requires alternative dispute resolution before filing a lawsuit if written into the governing documents of a homeowner’s association; requires that all condo owners receive notification of a lawsuit prior to filing; and requires that a majority of owners support a lawsuit prior to filing. We believe these critical components of addressing construction defects litigation will increase more for-sale workforce housing while still protecting consumers. The Chamber supports this process, which allows for a quick resolution of construction issues that is fair to homeowners who need repairs, while also protecting the rights of all owners in a community. The business community is not alone in our support of this bill – a broad coalition of community leaders and affordable housing advocates support this solution.
Senate Bill 156 passed the Senate last week, but it now faces a hurdle in House committee assignments today or tomorrow. Our hope is it will be assigned to the most appropriate committees in the House – Business Affairs and Finance. We are encouraging House leadership to give their colleagues who specialize in analyzing business and financial policy the opportunity to represent their constituents on this critical issue and need you to ask House leadership to do the same. The Business Affairs Committee and Finance Committee are the most suitable committees for this hearing as they are composed of legislators who have the expertise to vet this legislation fairly.
Our democracy of representative government involves a great amount of trust and respect for elected officials. As members of the business community, we trust our elected officials to represent our voice as they create the right policy. That’s why it’s particularly frustrating when our elected officials aren’t given the opportunity to weigh in on an issue of importance for us. Join us in respectfully urging House leadership to give Senate Bill 156 a fair hearing and a fair vote on the House floor. Ask leadership to give the state House of Representatives, as a whole, the opportunity to voice their opinion on this critical matter.
Kelly Brough is the president and CEO of the Denver Metro Chamber.
The Denver Metro Chamber of Commerce has taken positions on eight bills that are working their way through the Colorado General Assembly.
HB15-1065 Regulatory Reform Act of 2015
Sponsored by Rep. Libby Szabo (R-Arvada) and Sen. Tim Neville (R-Littleton)
Summary: This bill would direct state regulatory authorities to issue a written warning rather than a fine to any small business (fewer than 100 employees) in violation of a new rule of the agency, so long as the violation is not related to health or safety.
The Chamber supports HB15-1065 because it gives small businesses an opportunity to remedy violations of new, complicated rules before receiving fines without compromising health or safety.
SB15-064 Application of State Water Law to Federal Agencies
Sponsored by Sen. Jerry Sonnenberg (R-Sterling)
Summary: The bill states basic tenets of Colorado water law concerning water as a transferable property right, acknowledges that the federal government has maintained deference to state law with respect to water rights and prohibits the United States Forest Service and the Federal Bureau of Land Management from placing conditions on special use permits for, or rights-of-way on, federal land.
The Chamber supports SB15-064 because it allows our state’s water laws to be governed locally, resulting in water law that meets the unique needs and challenges of our region. The Chamber has supported similar bills in the past and supports this bill as it preserves Colorado’s authority over its own water.
SB15-093 Compensate Owners Mineral Interests Restricted by Extraction Regulations
Sponsored by Sen. Jerry Sonnenberg (R-Sterling)
Summary: The bill specifies that whenever a local government adopts or implements an ordinance, resolution, rule, regulation or other form of official policy concerning mineral extraction operations that has the effect of reducing the fair market value of the owner's mineral interest by at least 60 percent, the owner's interest will be deemed to have been taken for a public use. The bill allows the owner to obtain compensation from the local government for the full diminution in the fair market value of the owner's interest caused by the regulatory impairment of the local government.
The Chamber supports SB15-093 because it recognizes the private property rights of mineral owners and compensates owners for the negative financial impact of regulatory changes.
HB15-1066 Repeal of the Health Benefit Exchange
Sponsored by Rep. Janak Joshi (R-Colorado Springs) and Sen. Kevin Lundberg (R-Berthoud)
Summary: The bill would repeal the Colorado Health Benefit Exchange, which was created in 2011 by SB11-200. The bill requires the state treasurer to transfer any unencumbered moneys that remain in the exchange to the general fund.
The Chamber opposes HB15-1066 because it would repeal the Colorado Health Benefit Exchange, which is supported by the Chamber. The Chamber acknowledges the value of having a state-run exchange rather than participating in the federal exchange. Additionally, the Chamber recognizes the significant investment that health insurance providers have made to align with the state exchange and understands that repeal of the exchange would result in significant cost and uncertainty for these businesses.
HB15-1083 Patient Contribution to Rehabilitation Services
Sponsored by Rep. Dianne Primavera (D-Broomfield) and Sen. Larry Crowder (R-Alamosa)
Summary: The bill prohibits an insurance carrier from classifying an office visit for physical rehabilitation services provided by a physical therapist, occupational therapist or chiropractor as a specialty service. The bill limits the copayment that may be charged for physical rehabilitation services to 50 percent of what the provider is paid for the visit by the carrier.
The Chamber opposes HB15-1083 because it is a mandate that will raise health care costs for businesses in the state and interferes with private insurance contracts.
HB15-1093 Exemption of Efficient Plumbing Fixture Requirements
Sponsored by Rep. Tim Dore (R-Elizabeth)
Summary: The bill repeals a prohibition that would go into effect on Sept. 1, 2016, that disallows the sale of certain plumbing fixtures unless they are water-efficient plumbing fixtures.
The Chamber opposes HB15-1093 because it repeals bipartisan legislation from 2014 that was not only supported by the utilities, but also by manufacturers. The Chamber is committed to water conservation and efficiency initiatives, and recognizes low-flow fixtures as a cost-effective strategy for conserving water.
SB15-034 Reduce Finance Charges Limit for Credit Cards
Sponsored by Sen. Jessie Ulibarri (D-Commerce City) and Rep. Steve Lebsock (D-Thornton)
Summary: This bill limits the finance charge allowed on a credit card issued by a Colorado lender to 12.5 percent in the Colorado Uniform Consumer Credit Code (UCCC).
The Chamber opposes SB15-034 because it arbitrarily puts an interest rate in statute, governs a regulation currently effectively managed at the federal level and puts local lenders at a disadvantage.
SB15-059 Use of Unmanned Aerial Vehicles
Sponsored by Sen. Linda Newell (D-Aurora)
Summary: The bill clarifies, restricts and adds limits to the types of equipment law enforcement can use. The bill also creates parameters for individual, recreational, civil and industrial use of Unmanned Arial Vehicles.
The Chamber opposes SB15-059 due to industry concerns that privacy rights are already addressed through existing statutes. Additionally, we are concerned that the bill is not aligned with existing Federal Aviation Administration regulations and puts unrealistic restrictions on potential law enforcement use.
Click here to view all the Chamber’s positions this session.
Jennifer Jones is the director of public affairs for the Denver Metro Chamber of Commerce.
[Photo by: Ken Lund]
The Denver Metro Chamber of Commerce has taken positions on three bills that are working their way through the Colorado General Assembly.
The Statewide Initiative Process (HB15-1057)
Sponsored by Rep. Lois Court (D-Denver) and Sen. Jerry Sonnenberg (R-Sterling)
Summary: The bill would require the Colorado Legislative Council’s director of research to prepare an initial fiscal impact statement for each initiative submitted to the title board and to further summarize the abstract into a two-sentence fiscal impact summary. The bill also requires the designated representatives of the initiative to appear at all review and comment meetings. If either designated representative fails to appear at a review and comment meeting, the initiative is considered withdrawn, but the proponents are permitted to resubmit the initiative for another review and comment meeting.
The Chamber supports HB15-1057 because we believe these requirements are important in ensuring ballot measures are thoughtful and that the voters know the fiscal impact the measures will have on the Colorado budget, our economy and ultimately on business. It also brings the ballot initiative process in line with that of referendums.
Prohibited Communication Concerning Patents (HB15-1063)
Sponsored by Rep. Dan Pabon (D-Denver) and Sen. David Balmer (R- Centennial)
Summary: This bill requires the Colorado attorney general's office to prosecute anyone who threatens litigation for patent violations with bad-faith patent-infringement claims.
The Chamber supports HB15-1063 because it should help to reduce frivolous and intimidating claims against businesses that follow the correct to use or invest in intellectual property.
Educator Evaluations Fifty Percent Academic Growth (SB15-003)
Sponsored by Sen. Michael Merrifield (D-Colorado Springs)
Summary: Senate Bill 10-191, which addresses educator effectiveness, included a requirement that at least 50 percent of a teacher's or principal's performance evaluation be determined by the academic growth of the teacher's students or the students in the principal's school. This bill eliminates that requirement.
The Chamber opposes this bill because it would remove a key provision of SB10-191, which created an evaluation system to develop greater accountability for educators and principals. The Chamber has long supported education as one of the pillars for a healthy and thriving economy. We also support a high-performing education system and quality instruction. Because of that, the Chamber continues to be supportive of SB10-191 in its entirety.
The Chamber will share its positions on policy that impacts the business community weekly while the legislature is in session. Click here to view all the Chamber’s positions this session.
Jennifer Jones is the director of public affairs for the Denver Metro Chamber of Commerce.
[Photo by: Ken Lund]
