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March 2, America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.

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“America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.” –

Author Unknown

Days Until Sine Die: 68

Health Benefit Exchange Update

The Colorado Health Exchange Board met again this past Monday. The Board discussed the $17 million federal grant received from the U.S. Department of Health and Human Services last week and said that hiring staff for the exchange would now begin.

The bulk of the meeting focused on policy questions discussed at their previous meeting two weeks ago.

The Board took action on two items.

The first dealt with the administrative structure of the exchange and whether it should operate as one or two entities. The Board staff recommended operating as 1 entity. The Board overwhelming approved this recommendation.

The second action item addressed risk pools and whether the exchange should have separate or combined risk pools for individual and small group markets. Other states have studied this issue and have indicated that separate risk pools are better. The Board staff recommended the approval of separate risk pools and the Board agreed to that recommendation. The Board will, within two years, study its decision and decide if a change needs to be made. The Board expressed its desire to see how the Colorado market will react to creating separate risk pools.

At its next meeting, scheduled for Monday, March 12, the Board will begin discussing

interoperability of the exchange with state health programs. The goals and objectives will be to determine how best to provide customers a seamless opportunity to determine eligibility, evaluate options, and to enroll in a private plan or an appropriate transfer to enroll in state programs. The Board also will look at implementing the Colorado Health Benefit Exchange for enrollment

beginning October 2013, as well as compliance with Senate Bill 200, which established the exchange, and applicable federal laws and state regulations.

Trial Lawyers Push “Public Hazard” Bill

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Last week, Senate Majority Leader John Morse (D-Colorado Springs) introduced Senate Bill 153, which would crate a rebuttable presumption that information concerning a public hazard (information) must be disclosed in a court action.

The Colorado Defense Lawyers Association, the Colorado Civil Justice League, and a large

contingent of the business community strongly oppose the bill, saying it is loosely modeled after a similar act passed in Florida and has the potential to be harmful to all manufacturers, retailers and others involved in product liability lawsuits.

The bill creates an extraordinarily broad definition of a “public hazard,” and then, among other things, invalidates almost all protective orders regarding trade secrets in any case involving a “public hazard.” The bill places such a high hurdle on obtaining a protective order that trade secrets and proprietary business information will likely be quickly released into the public domain.

Opponents also say the bill adds more complexity and issues to lawsuits, resulting in more costly litigation and would make Colorado a less friendly climate for business and job creation.

The bill has been assigned to the Senate Committee on the Judiciary and is expected to be heard this coming Wednesday, March 7.

House Finance Committee Kills Enterprise Zone Reform Bills, Opts to Study to Ensure Reforms are Necessary

On Wednesday the House Committee on Finance took action on three Democrat-led bills regarding enterprise zones.

The Committee on a vote of 7 – 6 killed House Bill 1251 by Representative Dickey Lee Hullinghorst (D-Boulder County). Her bill would have looked at the cost-effectiveness of enterprise zones and limited the amount of an income tax credit that may be claimed in an income tax year.

The Committee on a vote of 8 – 5 killed House Bill 1260 by Representative Jeanne Labuda (D-Denver). This bill also would have limited the amount of an income tax credit that may be claimed in an income tax year.

The Committee on a vote of 12 – 1 passed House Bill 1241 by Minority Leader Mark Ferrandino (D-Denver). His bill was amended to require a comprehensive study of the enterprise zone tax system.

Wednesday’s committee hearing caps a week of political wrangling between House Republicans and Democratic Governor John Hickenlooper where House Republicans were threatening to pass all three bills to force Governor Hickenlooper to either sign or veto them. Either action by the

Governor would send strong signals to the business community about one of their priority issues.

House Republicans have felt they have been unfairly targeted by recent media reports regarding the alleged failure of the state’s enterprise zone system to spark economic development and create jobs.

The House Republicans had hoped that Governor Hickenlooper would stand with them in supporting the enterprise zone tax system. Instead, Hickenlooper’s Office of Economic Development has maintained a neutral position on the three bills.

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The Colorado Public Utilities Commission has capped a two-decade-old fund that’s still paying tens of millions annually to land-line phone companies for providing service in rural areas.

Starting this year, the Colorado High Cost Support Mechanism will top off at $54 million, or $13.5 million per quarter. The high-cost mechanism is funded by a monthly surcharge of about $1 on land-line and cellphone bills. Colorado ratepayers contributed $56 million to the fund in 2011 and were expected to pay $65 million this year, according to the program’s 2011 report.

The Federal Communications Commission is shifting a similar program, called the Universal Service Fund, toward broadband expansion.

The three-member PUC commission cited that move in its decision to cap the state fund.

“Because the federal and state universal service funds are intertwined, capping the fund is both necessary and appropriate,” PUC Commissioners wrote in their Feb. 15 order.

The bulk of the high-cost support mechanism is distributed to CenturyLink, the state’s largest land-line phone company. The high cost program still considers about 30 percent of CenturyLink’s roughly 1.4 million land-line subscribers in the state to be rural and overly expensive to serve, including those in parts of Aurora, Parker and Fort Collins.

In some cases, the program is refunding to CenturyLink and rural carriers for multiple lines that serve one household.

The Colorado Office of Consumer Counsel has pushed for an overhaul of the program, and lawmakers are expected to propose a phase out of the fund this year.

Advocates for change argue that many areas supported by the fund now have access to multiple phone services, which include wireless and Internet-based offerings.

CenturyLink, though, says it would be forced to charge some hard-to-reach subscribers “ungodly amounts” for land-line service without the subsidy.

The PUC order also capped rates carriers can charge one another for access to their networks.

Telecommunications Modernization Act to be Introduced

After nearly a year of deliberations it appears Republican Senator Mark Scheffel (Douglas County) will put forth a massive overhaul of Colorado’s Telecommunications Statutes. The measure is expected to be introduced next week and will likely pit Louisiana-based CenturyLink against cable giant Comcast and other providers. Details will be forthcoming as the measure is introduced.

Creative Industries Measures Move Forward

This week, two measures supporting creative industries in Colorado advanced with bipartisan support.

The first measure, House Joint Resolution 1010 by Representatives Nancy Todd (D-Aurora) and Tom Massey Poncha Springs) and Senators Linda Newell (D-Littleton) and Jean White

(R-Hayden) recognizes the film, television, and video gaming industry in Colorado. The resolution was approved on third reading in the Senate on Monday.

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The resolution must now return to the House for consideration of Senate amendments.

The second measure, House Bill 1286 sponsored by Rep. Tom Massey (R-Poncha Springs) and Sen. Linda Newell (D-Littleton) passed the House Committee on Finance on a vote of 8 – 5. The bill, among other things, would create incentives, including a loan guarantee program to attract and support the film and other creative industries in the state.

The bill now moves to the House Committee on Appropriations for consideration.

Gardner’s Medical Care for Persons in Custody Bill Gets Shelved

Representative Bob Gardner (R-Colorado Springs) and the Chief’s of Police have agreed to postpone indefinitely House Bill 1232, a measure that would have required a person in custody of a

municipality to cover healthcare costs for pre-existing medical conditions. Stakeholders including, cities, counties, local law enforcement and hospitals have agreed to work on solution over the coming interim.

Health Facility Safety Inspection Transfer Bill Passes Committee

House Bill 1268 by Representative Cindy Acree (R-Aurora) passed the house Health and Human’s Services committee late last week and now awaits approval by the house Appropriations

committee. The bill would shift responsibilities of the state fire safety standards for state licensure of health care facilities from the Colorado Department of Public Health and Environment (CDPHE) to the Division of Fire Safety within the Colorado Department of Public Safety (CDPS).

Professional Review Committees Bill Moves Forward

On Thursday the House Committee on the Judiciary voted 11 – 0 to send House Bill 1300 to the full House for consideration. The bill by Representative Bob Gardner (R-Colorado Springs) and Senator Irene Aguilar (D-Denver) would implement recommendations made by the Department of

Regulatory Agencies (DORA) pursuant to DORA’s sunset review report of professional review committees and the committee on anticompetitive conduct.

The bill:

· Continues the functions of professional review committees for 7 years, until 2019; · Authorizes professional review of physician assistants and advanced practice nurses;

· Specifies that the sharing of professional review records and information with regulators and other professional review entities does not waive the professional review privilege or violate applicable confidentiality provisions;

· Requires entities that conduct professional review of physicians or physician assistants to register with the Colorado Medical Board and report on their activities; and

· Requires entities that conduct professional review of the practice of advanced practice nursing to register with the nursing board and report on their activities.

Hickenlooper and Garcia Release Early Childhood Literacy Plan

This week Governor John Hickenlooper and Lt. Governor Joe Garcia announced the state’s plan to help ensure every child in Colorado learns to read. The Colorado Reads: The Early Literacy

Initiative report was released as part of week-long events planned for Colorado Literacy Week, Feb. 27 – March 2.

The plan calls for statewide collaboration between parents, families, caregivers, educators, local school districts, businesses and community groups. Also, state agencies will work to identify and eliminate health and development barriers, educate and empower parents, maximize access to

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preschool programs, improve early learning program quality and strengthen the early childhood workforce.

Legislative priorities in the plan include the creation of an Office of Early Childhood and the co-location of programs strengthening interagency partnerships and collaboration to improve the efficiency, effectiveness and quality of childhood and youth support services and programs in Colorado. Additionally, the Colorado Early Literacy Act, HB1238 sponsored by Representatives Tom Massey (R-Poncha Springs) and Millie Hamner Dillon) and Senators Michael Johnston (D-Denver) and Nancy Spence (R-Centennial) strives to reinforce early literacy policy and education in kindergarten through third grade.

Executive Order Creates Task Force to Examine Oil and Gas Regulatory Jurisdiction Between the State and Local Governments

On Wednesday, Governor John Hickenlooper signed an Executive Order that creates a task force to help clarify and better coordinate the regulatory jurisdiction between the state and local

governments over oil and gas operations.

The task force is expected to report its recommendations and findings to the Governor, the Speaker of the House of Representatives and the President of the Senate no later than April 18, unless the group is either terminated or extended beyond that date by another Executive Order.

The issues that the task force will address include:

· Setbacks of oil and gas facilities or roads necessary for oil and gas operations from any building, public road, above-ground utility line, railroad, or water body, or other restrictions on the location of an oil or gas well and its related production facilities.

· Floodplain restrictions.

· Protection of wildlife and livestock. · Noise abatement.

· Operational methods employed by oil and gas activities. · Air Quality and dust management.

· Traffic management and impacts. · Fees, financial assurance and inspection.

The task force will be chaired by Mike King, Executive Director of the Colorado Department of Natural Resources. The task force members will include: the Executive Director of the Department of Local Affairs, or his or her designee; two members of the Colorado Oil and Gas Conservation Commission as determined by said Commission; the President of the Board of Directors of Colorado Counties Inc., or his or her designee who must also be a member of said organization; the President of the Board of Directors of the Colorado Municipal League, or his or her designee who must also be a member of said organization; the Chief Executive of the Colorado Petroleum Association, or his or her designee; the Chief Executive Officer of the Colorado Oil and Gas Association, or his or her designee; the Executive Director of Colorado Conservation Voters, or his or her designee; one member appointed by the Speaker of the House of Representatives; one member appointed by the President of the Senate; and the Colorado Attorney General or the Attorney General’s designee.

Gessler Names Suzanne Staiert Deputy Secretary of State

On Wednesday Secretary of State Scott Gessler appointed Suzanne Staiert to the Deputy Secretary of State position.

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“I’m excited to bring Suzanne’s strong public sector legal experience to serve our customers and the people of Colorado,” Gessler said. “Suzanne shares my customer-focused agenda aimed at breaking down barriers for Coloradans to their government.”

Most recently, Staiert served as an associate municipal judge for the City of Centennial. Prior to her position there, she served as legal counsel to Arapahoe County and the cities of Littleton and Aurora.

In addition to her local elections experience, Staiert also worked with constituents on licensing and zoning issues.

Staiert replaces Deputy Secretary of State Bill Hobbs, who announced his retirement last year after 12 years in the office. Following his announcement, Gessler convened a search committee to identify a new deputy.

“With an upcoming presidential election and new initiatives scheduled for the Business and Licensing Division, it’s an exciting time to be a part of the Secretary of State’s office,” Staiert said. “I’m looking forward to continuing my public service and helping Secretary Gessler deliver a more efficient office to our customers and the people of Colorado.

Bipartisan Duo Considers Ballot Initiative to Change State's Outdated Personnel Rules

House Minority Leader Mark Ferrandino (D-Denver) and Senator Keith King (R-Colorado Springs) are working together on a measure that would ask Colorado voters to overhaul the state’s rigid personnel rules. The constitutional amendment, yet to be introduced in the legislature, would require a two-thirds vote in each chamber in order to place it on the ballot this fall.

The measure said to be in-line with priorities laid out by Gov. John Hickenlooper whose administration has suggested the personnel system needs a major update.

"Things that might have made sense in the '60s, enough has changed that we need to update our constitution to deal with those changes," said Ferrandino.

If approved by voters, the measure would amend the state constitution to:

· Change the current testing system for job applicants from one that uses a strictly "competitive" test to a "comparative" test.

· Change the current rule that limits the number of finalists for a job that can be considered to three and increase the number to six.

· Increase the amount of time state agencies can employ temporary workers from six months to nine months.

· Change the current requirement that says applicants for most jobs have to be Colorado residents and give the state personnel director some discretion to alter the requirement. The change also would allow out-of-state applicants for jobs that are within 30 miles of the state's border, where requiring only in-state applicants often makes it hard to fill jobs with qualified applicants.

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· Redraw membership on the state personnel board so that members serve three-year, rather than five-year, terms and limits them to two terms. In addition, two members would serve at the governor's pleasure.

Ferrandino and King also are sponsoring a companion piece of legislation to the referred measure that would make changes in state law dealing with the personnel system.

That bill would reform the state's current performance-based pay system and replace it with a system that would be based partly on performance and partly on length of service.

Regardless of the new structure, there still would have to be money to fund any raises and

lawmakers would still have to approve them. State workers have not had pay hikes for four years.

Court Explains Colorado Redistricting Decision

This week the Colorado Supreme Court published its decision explaining the Court’s reasoning for upholding new congressional district lines.

In its decision issued Monday, the Court said that a lower court was right in selecting a map that made many districts more competitive between Democrats and Republicans.

Lawyers aligned with the GOP had argued that it was more important to preserve existing congressional boundaries.

The Supreme Court essentially said it agrees with Democrats that competitive districts can produce lawmakers who work harder because they're not politically safe. The court upheld the map in December.

Justice Allison Eid who dissented from the majority wrote that big changes to congressional lines were "astonishing" because the state didn't gain or lose seats.

Denver Post: Sales of Loveland Water Increasing for Front Range Hydraulic Fracturing Use Tradeoffs abound in the national quest for energy independence and cleaner ways to generate power.

Green-thinking cities including Loveland that own the Platte River Power Authority electric utility are pressing for conversion of its generating plants from dirty coal to clean-burning natural gas.

PRPA policy represents but a tiny portion of the forces driving production of natural gas, a $9 billion Colorado industry that has been pushed ahead by improvements in a technology called hydraulic fracturing, or "fracking."

The technology, more akin to mining than drilling, requires water -- and lots of it.

As gas producers expand their operations into the western fringe of the Wattenberg field in Larimer and Boulder counties, their demands for water reach into municipalities up and down the Front Range, Loveland among them.

"We're not selling as much as other providers, because we're further away from most of the activity," said Loveland water resources engineer Greg Dewey. "But it has become a significant source of income for us."

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The Watercooler

The Colorado Water Congress took no action on bills this week.

The Calculator

House Bills Introduced: 319 Senate Bills Introduced: 155 Number of Bills PI’d: 87 (18%)

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