January 23, 2012

"Liberty has never come from the government. Liberty has always come from the subjects of government. The history of liberty is the history of resistance. The history of liberty is a history of the limitation of governmental power, not the increase of it." – Woodrow Wilson

Days Until Sine Die: 110

Have You Bookmarked Your URL? We here at Axiom Strategies Inc. hope all of you have taken advantage of our new bill tracking system, Capitol Watch. You have been given a tracking URL so you can monitor the progress we are making on your legislative portfolios.

Capitol Watch has greatly increased our efficiency in both the distribution of legislation as it is released as well as our ability to quickly classify bills, take positions and form appropriate strategies for advocacy. The URLs we have sent you will remain valid for the entire legislative term and are updated on a daily basis. They contain not only the bills we are watching for you, but also our thoughts on the bills, the position taken, hearing dates and times. After the bills have been heard, the vote tallies are also available in your URLs as well.

Also, please be on the lookout for an e-mail detailing how you can embed your company or organization’s logo next to ours on the page. Besides being aesthetically pleasing, this allows you to print or present directly from the webpage without having to add your own header or artwork.

We are anxious to receive your feedback on this new system.

Sen. John Morse Says “No” to 6th CD Run Colorado Springs Democrat and State Senate Majority Leader John Morse said on Thursday he’s no longer interested in running for Congress in the 6th District. The 6th Congressional District seat is currently held by Rep. Mike Coffman (R-Aurora).

Morse said that in order to run, he would have to resign his Senate seat and move into the District.

Morse said his statement about having to resign his seat is no reflection on Senate President Brandon Shaffer, a Democrat who has announced he is running in the 4th but recently began looking at the 6th, and Rep. , who already has announced he is running for the Democratic nomination in the Aurora-based district.

Shaffer and Miklosi have said they are not resigning the seats they currently hold in the legislature.

Shaffer’s campaign is currently polling voters in the 6th District.

The district boundaries were redrawn last year and are now evenly divided among Republicans, Democrats and unaffiliated voters. Prior to redistricting, the district was solidly Republican.

In addition to Miklosi, physician Perry Haney has announced he is seeking the Democratic nomination.

Colorado House: Constitutional Convention to Repeal Federal Health Care Reform Law The House of Representatives on Thursday voted 33-31 on a resolution asking Congress to call a constitutional convention to propose an amendment to repeal the Affordable Care Act, which critics have dubbed ―Obamacare.‖ The resolution, HR 1003, was sponsored by Rep. (R-Centennial) who said it was about all the jobs Colorado would lose under the 2010 federal Affordable Care Act.

Balmer’s resolution says the law ―will likely increase taxes, limit economic growth, increase unemployment, and reduce incentives to innovate,‖ among many other complaints listed in the resolution.

Republicans speaking in favor of the resolution, and against the federal law, included Rep. (R- Calhan) and House Majority Leader (R-Monument) who are running against each other as a result of newly drawn legislative district lines.

Stephens has become the target of Tea Party activists for sponsoring a bill last year that set up Colorado’s health care insurance exchange, one of the key provisions of the Affordable Care Act. Conservatives attacked it as ―AmyCare,‖ though it was widely supported by the business community and came despite the fact Stephens said she rejected the Affordable Care Act.

Looper has joined in the attack on ―AmyCare,‖ co-sponsoring a bill to repeal the health care insurance exchange law. That bill is Senate Bill 53.

Democrats challenged Republican assertions that the law would cost Colorado jobs, pointing to other studies showing job creation. They also pointed to Congressional Budget Office data that said the Affordable Care Act would reduce the federal deficit.

Rep. Dan Pabon (D-) offered an amendment essentially praising GOP presidential contender Mitt Romney as the inspiration for the federal law by having passed a similar health reform package as Governor of Massachussetts.

Republicans ruled that amendment out of order, and they managed to scuttle another from Pabon that would have urged the preservation of the health care exchanges — something that likely could have split Republicans had it come to a vote.

The Obama Administration earlier this week said that the health care overhaul is on track in many states but said the Administration is preparing a federal backstop for states in which opposition to the new law has blocked planning.

The federal law calls for states to build new health insurance markets called exchanges, so that millions of middle-class people who are currently uninsured can buy taxpayer-subsidized private coverage. It also expands eligibility for Medicaid so low-income adults who have no dependent children can get government insurance. Under the law, more than 30 million Americans are expected to gain coverage starting in 2014.

But 26 states are asking the Supreme Court to overturn the health care law, and many of those have made little progress in planning their exchanges, even though the deadline clock is ticking.

The law says state plans must be approved by Jan. 1, 2013—a year in advance of the program's launch—or the federal government will step in and run things.

An progress report accompanying the Administration’s announcement said 28 states and Washington, D.C., are "on their way" toward establishing exchanges.

Neville, Looper Seek Repeal of Colorado’s Health Benefit Exchange This week, Senator Tim Neville (R-Littleton) and Rep. Marsha Looper (R-Calhan) introduced Senate Bill 53 which would repeal last year’s law that established Colorado’s Health Benefit Exchange if the federal Affordable Care Act is repealed or found to be unconstitutional.

Looper and House Majority Leader Amy Stephens (R-Monument) will be competing for the Republican nomination in the same House District in this year’s primary election. The two were combined in the same district when the Supreme Court, last fall, approved new district boundaries as part of the reapportionment process.

Rep. Stephens, last year, co-sponsored Senate Bill 200 with Senator Betty Boyd (D-Lakewood) to establish Colorado’s Health Benefit Exchange. Stephens carried the bill with the support of the business community even though she said she opposed the federal health care reform law.

Senate Bill 63: Energy Tax Revenue to Rural Colleges Sen. (R-Wray) has introduced Senate Bill 63 which would establish a $100 million cap, adjusted annually for inflation, on the current allocation of severance tax revenue. Any revenue received above the cap would be first made available to any local government socially or economically impacted by mining or oil and gas development, but only for a serious need. Today, money is distributed to local governments through a formula and then based on specific projects a local government seeks funding for.

Under Sen. Brophy’s bill, the money allocated to local governments would be done through a grant process overseen by the House Local Government Committee and the Senate Local Government and Energy Committee, which would then make recommendations to the Joint Budget Committee.

Whatever moneys remain after the awarding of grants to local governments would be transferred to the newly created rural higher education cash fund and annually appropriated to rural institutions of higher education on a proportionate basis.

The bill would also require that each rural institution of higher education set aside at least 50% of each annual appropriation in a separate trust account in order to build an endowment fund to be used by the rural institution of higher education.

The bill does not yet have a House sponsor.

―We ought not let the severance tax revenues morph into a slush fund that just gets frittered away in great years, and instead put in place a plan for it,‖ said Brophy, who introduced his bill this week.

Severance taxes are levied on the extraction of minerals from the ground, such as oil, natural gas, coal and heavy metals.

Today, half of the revenue goes to the Department of Natural Resources, with half of that specifically for water projects in the state.

The half not going to the Department of Natural Resources is intended for local governments, particularly those most affected by extraction activities. Under the current formula, 30 percent of that half is distributed to local governments based on how many workers in those areas are in the production industry.

The remaining 70 percent is distributed in grants for specific local projects. It’s from this pool the state has taken several million dollars during the past few years to help balance its budget. Brophy’s bill won’t change any of that but instead would impose the $100 million cap on the sum of moneys allocated to the Department of Natural Resources and local governments with the ―spill over‖ going into the rural higher education cash fund.

Colleges eligible for funding under Brophy’s bill include: Colorado Mesa University; Colorado Mountain College; Western State College; Aims Community College; Colorado Northwestern Community College; Front Range Community College, Lamar Community College; Morgan Community College; Northeastern Junior College; Otero Junior College; Trinidad State Junior College; Adams State College; Fort Lewis College; and Colorado School of Mines.

Though Colorado took in nearly $150 million in severance taxes last year, the state is only expected to get about $90 million this year.

The bill has been assigned to the Senate Committee on Finance.

Trans Fat Ban Proposed for Colorado Schools A bill introduced in the legislature this week would impose the nation's toughest ban on unhealthy fats in school foods. Senate Bill 68 by Senator Lucia Guzman (D-Denver) and Representative Tom Massey (R-Poncha Springs) would make margarine, vegetable shortening and other traditional trans fats off limits. The ban would apply to school lunches, school breakfasts, a la carte side items and vending machines. Schools could still serve fried foods but not using traditional oils containing trans fats.

Massey is Chair of the House Committee on Education.

Many school districts have already moved away from trans fats in regular lunches, but the SB 68 would also apply to breakfasts and after-school snacks served in schools.

Delaware currently has the nation's toughest trans fats ban in schools, but a law passed there last year does not address school breakfasts or other meals outside the school day. California bans trans fats during the school day but not beyond 30 minutes of the school day.

Six other states last year considered but did not approve school trans fats bans, according to the National Conference of State Legislatures. Already this year, Indiana and New York state are considering school trans fats bans similar to Colorado's, according to NCSL.

One of the state's most prominent anti-obesity groups, LiveWell Colorado, backs the bill's premise but is withholding an endorsement because of concerns schools wouldn't be ready to make the change by this fall when the bill would take effect.

Colorado's education department currently has no statewide policy on trans fats, and the Boulder Valley school district is thought to be the only district that uses no artificial trans fats.

SB 68 has been assigned to the Senate Committee on Agriculture, Natural Resources, and Energy.

King Bill Aims to Stop Nutrient Criteria Rulemaking Sen. Steve King (R-Grand Junction) has introduced SB 17, concerning the adoption of water quality control rules regarding nutrients. The bill would prohibit the Water Quality Control Commission from adopting numeric criteria for a water control standard or control regulation regarding nitrogen or phosphorus. The bill has been assigned to the Senate Committee on Agriculture, Natural Resources, and Energy.

SB 17 is the first of at least two bills expected this session to limit the Commission’s ability to promulgate nutrient criteria standards for nitrogen and phosphorus. The second bill is expected to be introduced in the House by Rep. Marsha Looper (R-Calhan).

Senator Aims to Curb Mandates Senate Minority Leader Bill Cadman (R-Colorado Springs) this week introduced Senate Bill 26, concerning a state agency rule that creates a mandate on a local government. Cadman wants to give the legislature more oversight on many of the unnecessarily burdensome mandates on local governments passed by state agencies. The bill has been assigned to the Senate Committee on Local Government.

King Bill will Make Getting Your Prescription Easier, Safer Sen. Steve King (R-Grand Junction) introduced SB 37, concerning the ability to dispense a controlled substance based on an electronically transmitted prescription drug order. The bill will allow your doctor to send more prescriptions to your pharmacy electronically – a system that he says is easier for patients and cuts down on fraudulent paper prescriptions. The bill has been assigned to the Senate Committee on Health and Human Services.

Gov. Hickenlooper Signs Executive Order Requiring State Agencies to Review Rules and Regulations On Thursday, Gov. John Hickenlooper signed an Executive Order directing all state agencies to conduct periodic reviews of all of their rules to determine the need, appropriateness and effectiveness of their rules.

The Executive Order is a recommendation from the six-month series of ―Pits and Peeves‖ roundtable meetings held in all parts of Colorado. The governor and his Cabinet crafted the order in consultation with various labor and business groups.

The Governor’s Executive Order acknowledges that predictability and certainty regarding agency rules are important to provide clarity on what is expected by and required of the regulated community. The Order says that in order to address this need while performing ongoing review of rules, state agencies should provide early notice and information to the public, regulated entities, and other stakeholders about such reviews and potential changes to rules. This notice and outreach will provide the opportunity for earlier consultation and input in the review and evaluation process.

The Oder, in part, states: Each principal department and state agency shall conduct a review of all of its rules to assess the continuing need for, appropriateness, and cost-effectiveness of its rules to determine if they should be continued in their current form, modified or repealed. Agencies shall consider whether each rule:  Is necessary and does not duplicate existing rules;  Is written in plain language and is easy to understand;  Has achieved the desired intent and whether more or less regulation is necessary;  Can be amended to reduce any regulatory burdens while maintaining its benefits; and  Is implemented in an efficient and effective manner, including the requirements for the issuance of any permits or licenses.

The Department of Regulatory Agencies is tasked with the development of implementation guidance for this Executive Order.

Denver Post: Colorado Groups Say Pinnacol Ads Touting Privatization Violate Lobbying Moratorium Business groups in Colorado are fuming mad over TV and print ads that ran over the weekend touting the claimed benefits of privatizing Pinnacol Assurance, the state-chartered workers' compensation insurance fund.

The organizations say Pinnacol's ads, one of which ran on TV during the Broncos-Patriots playoff game Saturday night, while the other appeared in The Denver Post on Sunday, violated an agreement by all groups involved to not lobby on the issue while a task force is examining the merits of privatization.

Pinnacol officials, however, denied that and said the agreement was only to not lobby members of the task force.

Privatizing Pinnacol would affect tens of thousands of businesses and their employees, and the proposal under consideration could send millions of dollars into economic development and college scholarships.

Kelly Brough, president of the Denver Metro Chamber of Commerce, said she had suggested the stand-down rule at a meeting late last year with various groups in Gov. John Hickenlooper's office. Brough said she believed there should be no advocacy while the task force, appointed by Hickenlooper, is trying to hold an open discussion about the merits of the plan.

Seeing the ads was surprising, Brough said. The TV ad urged viewers to go to a website to "find out why restructuring Pinnacol Assurance is good for Colorado," while the print ad argued privatization "will help us better benefit our policyholders, their workers and the entire state of Colorado."

"It feels like a violation of a ground rule established in this process," Brough said of the ad campaign. "That's unfortunate."

Others were more blunt.

"This was a blow below the belt," said John Berry, president of the Workers' Compensation Coalition, a group composed of businesses that focuses on workers' compensation issues. "I felt a little betrayed by the ads, actually."

Dave Davia, executive vice president and chief executive of the Colorado Association of Plumbing and Mechanical Contractors, said the ads showed Pinnacol was not making "a full-faith effort to stand down."

In a statement, Pinnacol said its understanding of the agreement was different. The company, which receives tax exemptions in return for serving as the state's insurer of last resort for workers in the riskiest professions, said it was using the ads to inform its 55,000 policyholders about the proposed restructuring.

"The only agreement Pinnacol made was that the company would refrain from lobbying members of the Stakeholders Task Force," the company said. "The agreement did not preclude Pinnacol from communicating with policyholders."

Under the privatization proposal, the state would retain a 40 percent ownership stake in Pinnacol, which would become a mutual assurance company owned by its policyholders and which could eventually turn into a company with publicly held stock.

The state's ownership share would be worth $340 million, and it would receive a $13.6 million dividend each year that could be used for economic development and education efforts, such as college scholarships.

A number of business organizations have balked at the deal, saying Pinnacol's present quasi-governmental status seems to work well, and it is unclear that privatization would benefit them. Policyholders have been fiercely supportive of Pinnacol as it presently exists. Many worry about exchanging a known entity they like for an unknown with new risks.

Some members of the task force have questioned whether the state is getting the best deal. The TV ads started running Friday and throughout the weekend at a cost of $51,000. Pinnacol has purchased more TV time through mid-February at a cost of $141,000. Meanwhile, the print campaign began Sunday in The Post and continues through mid-February at a cost of $52,000.

Additional print ads elsewhere will cost $38,000. Several business groups complained that Pinnacol is essentially using the premiums paid by policyholders — who are members of the business associations — to lobby the policyholders themselves.

Amie Mayhew, executive vice president of the Colorado Association of Homebuilders, said policyholders were only given Pinnacol's arguments for privatization, and business groups now have to decide whether to retaliate with their own information campaigns.

"It's a very clear violation of the agreement," Mayhew said of Pinnacol's ads. "It frankly puts us in the position of considering whether we need to communicate with our members, which would also be a violation of the agreement."

Buzz About Education Funding for K-12 education promises to be a major topic of discussion throughout the legislative session. With the Laboto v. Colorado ruling and the State’s appeal of that decision to the Colorado Supreme Court, a lot of uncertainty remains.

However, based on a higher than expected December budget forecast, Governor Hickenlooper has announced he will request that $89 million go to restore K-12 funding that had been previously cut.

The State Board of Education has also made several budget requests to the Joint Budget Committee (JBC) including $26 million for the creation of new assessments.

Finally, legislation surrounding 3rd Grade Literacy, early childhood development and the ongoing implementation of SB10-191 (Educator Effectiveness) are all expected in the coming weeks.

Support Regional Satellite Office in Colorado As you may be aware, Senators Bennet and Udall pushed for an amendment to federal legislation to create regional, satellite offices for the U.S. Patent and Trademark Office (USPTO). The USPTO has requested comments from the business community as input into their decision about the locations of these satellite patent offices.

The Colorado Association of Commerce and Industry is spearheading a letter-writing campaign. They are asking that each letter be specific to your company to ensure that the USPTO sees the richness and value that Colorado has to a variety of industries.

Some items/topics to consider for your personalized letter:

 The importance of patents and protected intellectual property for the advancement of your industry (in the context of global competition), if appropriate;  Why you chose to locate your administrative and management offices in Colorado and continue to operate here;  How your experience with USPTO will be improved by having a USPTO satellite office in Colorado; and  Any examples/feedback on your ability to attract, hire, and retain a science, technology, engineering, and math (STEM) workforce - whether from Colorado or from outside of Colorado.

Address your letter to:

David Kappos Director US Patent and Trademark Office PO Box 1450 Alexandria, VA 22313-1450

DELIVERY: You can email your letter (PDFs on letterhead preferred) to Monisha Merchant at [email protected], by the end of the business day on Tuesday, January 24th to ensure that your Colorado voice is heard by David Kappos, Director of USPTO.

A Race for the Rest of Us Gov. John Hickenlooper formally announced plans this week for a recreational Eastern Plains bicycling tour called ―Pedal The Plains‖ to take place next fall.

The three-day ride will cover between 30 to 100 miles every day, stopping in multiple towns throughout each day and ending in a new host community each evening. Riders will pedal between entertainment and festivities, eat meals made with local produce, and stay in accommodations ranging from a tent to a bed and breakfast.

The Pedal The Plains tour will be managed by The Denver Post. The Denver Post Community Foundation is the organizer of Ride The Rockies, which is in its 27th year and has a long celebrated reputation as a world-class cycling event in Colorado.

Pedal The Plains’ design and location have attracted support from business leaders throughout the state including, most notably, Fort Morgan-based Viaero Wireless. The rural wireless provider will be the Presenting Sponsor of Pedal The Plains.

Billed as ―the end of the cycling season bash,‖ Pedal The Plains will provide numerous economic benefits and opportunities for host communities, such as lodging stays, restaurant visits and retail, as well as other services including entertainment, community meals, home stays and transportation.

All event proceeds will benefit charitable organizations serving the Eastern Plains.

The ride is scheduled for Sept. 21 – 23. The inaugural route will be unveiled and registration details and fees will be announced this spring. For more information about the event, visit www.pedaltheplains.com and sign-up to receive an e-newsletter.

The Water Cooler This past Monday, Colorado Water Congress took positions on the following bills:

Senate Bill 8 by Sen. Greg Brophy (R-Wray) and Rep. Jerry Sonnenberg (R-Sterling) would postpone the repeal of requirements to replace well depletions to the Denver Basin aquifers. Position: Support

Senate Bill 9 by Sen. (D-Brighton) and Rep. Keith Swerdfeger (R-Pueblo West) would consolidate several funds administered by the Division of Water Resources into a newly created water resources cash fund. Position: Support

House Bill 1010 by Rep. Randy Baumgardner (R-Hot Sulphur Springs) and Sen. Angela Giron (D-Pueblo) would eliminate the current 3 year waiting period for reissuance by a ditch company, mutual ditch share certificates that have been lost by a person with a ditch share. The bill also says that a person who is named in the books of the company as a lienholder on the lost certificate is also entitled to file a request for reissuance of a lost certificate. Position: Support

House Bill 1022 by Rep Jerry Sonnenberg (R-Sterling) and Sen. Gail Schwartz (D-Snowmass Village) would specify that for all permitted mining operations (current law only covers sand and gravel mines), there will be no requirement to replace the amount of historic natural depletion to the waters of the state that was caused by the preexisting natural evapotranspiration on the surface of an area that will be, or that has been, eliminated or made impermeable. Position: Support

House Bill 1078 by Rep. Ed Vigil (D-Fort Garland) and Sen. Gail Schwartz (D-Snowmass Village) would exempt drinking water treatment facilities from the requirement to obtain a certificate of designation from the local municipality or board of county commissioners. Position: Support

Senate Joint Resolution 1002 by Sen. (R-Durango) and Rep. Roger Wilson (D-Glenwood Springs) states that the General Assembly should avoid future diversions of water infrastructure revenues for budget balancing purposes and instead direct these revenues, as intended by existing statute, to protect and develop Colorado’s water resources. Position: Support

The Calculator House Bills Introduced: 105 Senate Bills Introduced: 97 Number of Bills PI’d: 0