FOLLOWING THE LEADERS... An up to date review of Colorado government and politics as they relate to the clients of Axiom Strategies Inc.

Transcription

1 Axiom Strategies, Inc. 225 E. 16 th Avenue, Suite 260 DENVER, COLORADO TELEPHONE (303) FAX (303) FOLLOWING THE LEADERS... An up to date review of Colorado government and politics as they relate to the clients of Axiom Strategies Inc. No political party has exclusive patent rights on prosperity. Franklin D. Roosevelt Days Until Sine Die: 103 State Budget Office Submits Amended Spending Request to JBC The Governor s Office of State Planning and Budgeting (OSPB) on Friday submitted an amended spending request to the Joint Budget Committee. The request details how excess funds from the December revenue forecast should be spent. The forecast originally indicated $142 million was available for additional allocation in FY Subsequent to that projection, a Congressional deal related to the fiscal cliff resulted in a downward revision of $145 million for income tax revenue for fiscal years and Even with these changes, additional funds remained available for allocation. This amended request stays true to the Governor s intent on spending increased revenue on education, public health, safety and infrastructure, said OSPB Director Henry Sobanet. We look forward to working with the Joint Budget Committee in the coming weeks as it reviews our proposed budget. In the General Fund operating budget, the Governor recommends the following new expenditures: An increase to the Nov. 1, 2012, request for K-12 education in the amount of $12.8 million. If this request is adopted, the average per pupil funding in FY will increase to $6,707.67, or $ over FY levels; The Department of Human Services is developing a comprehensive proposal to improve various aspects of Colorado s child welfare system. While final estimates will be available soon, the amended budget proposal leaves room for up to $22 million in FY for the plan; A new $10.3 million allocation to the Department of Natural Resources for a grant program that would match local dollars for improving forest health and wildfire prevention in wildland-urban interface areas; Two initiatives in the Office of Information Technology (OIT): The first would allocate $1,394,368 for improvements to the main data network operated by OIT; the second calls for $300,000 for OSPB to contract for an in-depth analysis of the billing and financial allocation methodologies employed by the Office; As a means to understand better the impact of oil and gas exploration and development on air quality, the Governor recommends $492,776 General Fund for the Department of Public Health and Environment (CDPHE) to conduct a targeted survey of the impacts of specific oil and gas extraction operations on environmental

2 air quality (there is also a $567,000 capital component to this request, explained below). Separately from the General Fund, the Governor recommends $1.3 million in cash fund spending authority for CDPHE to enter into a collaborative partnership with Colorado State University to begin collecting data for a broader study of the impacts of oil and gas operations on air quality in the northern Front Range. In the capital construction budget, the Governor recommends the following items: In the Office of Information and Technology, an appropriation in the amount of $3,726,190 as the first installment of a new annual financing model for maintenance and necessary upgrades to the statewide Digital Trunked Radio system; In response to a recommendation by the Office of the State Auditor, $2 million to finalize a facilities master plan for the Capitol Complex; As noted above, $567,000 to purchase equipment associated with the air quality survey in CDPHE; and Approximately $2 million to amend the Department of Personnel and Administration s request for scanning equipment to improve the efficiency of Colorado s Tax Revenue Pipeline. In FY , the total available General Fund is $8.8 billion. Requested expenditures total $7.7 billion General Fund, leaving an ending balance of $1.1 billion. Of this ending balance, $372 million is associated with the 5 percent reserve calculation, leaving $728.4 million General Fund available for transfer to the State Education Fund. In FY , the total General Fund available is $8.6 billion. Requested expenditures total $8.2 billion General Fund, leaving an ending reserve of $389.2 million, equal to 5 percent of General Fund appropriations subject to reserve requirements. Colorado Health Benefit Exchange will become Connect for Health Colorado Colorado s new health insurance marketplace for individuals, families and small employers will be called Connect for Health Colorado. The non profit entity that is building the marketplace, the Colorado Health Benefit Exchange, will coordinate an official launch of the new name with a public education campaign this Spring in preparation for opening in October. We re creating a new way for Coloradans to compare and shop for health plans and it is important to have a name that conveys what we do, said Executive Director Patty Fontneau. We thank our Board, stakeholders and community for helping us to identify a name that fits our mission to increase access, affordability and choice for individuals and small businesses purchasing health insurance in Colorado. Starting in October, Connect for Health Colorado will provide an independent, easy to use online shopping tool for Colorado families and small businesses along with high quality customer support to help them choose the right plan and take advantage of new financial assistance. Going forward, the organization will be doing business as Connect for Health Colorado. The Colorado Health Benefit Exchange name will remain on legal documents. Colorado Health Benefit Exchange Presents Annual Report to Legislature Patty Fontneau, Executive Director and Chief Executive Officer, and Gretchen Hammer, Chair of the Board, of the Colorado Health Benefit Exchange presented the Exchange s 2012 Annual Report at a joint meeting of the House Health, Insurance, and Environment

3 Committee, House Public Health Care and Human Services Committee and the Senate Health and Human Services Committee on Thursday. The executive summary from the report follows. In 2012, Colorado emerged as one of the national leaders in the development of a state solution to help residents access health insurance. The Colorado Health Benefit Exchange is on track to turn Colorado s vision for a competitive health insurance marketplace set forth in Senate Bill into reality. Led by Executive Director Patty Fontneau, the organization grew from a team of five to a cohesive staff of 18. The Exchange, which will have a new name in early 2013, established rigorous financial management systems to manage approximately $62 million in federal grants that were approved in February and September by the U.S. Department of Health and Human Services (HHS). An independent audit conducted over the summer resulted in top marks. The Exchange is supporting Colorado s economy through direct hiring and contracting with businesses that are creating local jobs. We followed a thorough, fair and competitive process to contract with technology partners, led by CGI Group Inc., which has offices in Lakewood and Denver, to build a sophisticated webbased health insurance marketplace. A contract is still under negotiation to put a customer service center in Colorado to assist residents with shopping for health plans. We have collaborated closely with the Colorado Department of Health Care Policy and Financing, the Division of Insurance and the Governor s Office on topics such as essential health benefits, insurance market reforms and the development of a shared eligibility determination system. In the area of governance, the Board met more than 40 times in 2012, including in committees, to discuss policy questions about how the Exchange will serve Coloradans and fulfill governing responsibilities. The Board and Legislative Implementation Review Committee met to discuss grant applications, which were submitted to HHS and approved. In compliance with transparency and accountability expectations outlined in SB , the Exchange s work has been conducted in open partnership with stakeholder organizations across Colorado. In June, the Board appointed more than 100 individuals, representing businesses, insurance carriers, consumer advocates, brokers and health care providers, among others, as members of four Advisory Groups. The Exchange convened nearly 50 Advisory Group meetings and seven broad stakeholder meetings to obtain feedback about a range of topics, including shopping portal design, Navigator Program development, and health plan quality measures. All Board and Advisory Group meetings were open to the public, with conference call capabilities provided for stakeholders outside of the Denver area. Exchange staff and Board members traveled across the state to conduct presentations to more than 140 groups, reaching an audience of over 6,500 people. The Exchange also developed plans to intensify and broaden outreach in 2013 to encourage participation when we open. With the support of partners and stakeholders, the Exchange reached a significant milestone in December, when Colorado became one of the first six states to receive approval of our initial plan from the federal government to open an Exchange for Colorado. To read the full report, go to Legislative Push to Expand Gaming Scientific Games, the company which manages the Colorado Lottery, is supporting a bill to allow Keno to be played in bars and restaurants throughout Colorado. The proposal would allow patrons to purchase Keno tickets, drawings would occur four times every minute with results displayed on a large LED screen in the premises. The proposal conflicts with Colorado's constitution which authorizes gaming only in three mountain towns. Blackhawk, Central City and Cripple Creek.

4 Denver Post: Bill Giving Colorado Illegal Immigrants In-State Tuition Passes Test Four years ago when two tearful, undocumented high school students testified in favor of a bill to give illegal immigrants in-state tuition, supporters of the legislation had to hide the girls later because some opponents wanted to deport them. But on Thursday, only one person showed up to testify against Senate Bill 33, a virtually identical bill that passed the Senate Education Committee on a 6-3 vote even picking up one Republican vote from Sen. Owen Hill, a freshman from Colorado Springs. Absent were opponents like the one in a prior year who asked sergeants-at-arms to clear a hearing room of all illegal immigrants. "The tone has changed from one of hostility to a hiring fair," said state Sen. Mike Johnston (D-Denver) who along with Sen. Angela Giron (D-Pueblo) sponsored the bill. "We no longer see these people as threats but view them as assets." Several Republican business people testified in favor of the bill, but GOP lawmakers openly supporting the legislation are still hard to find. After published reports that Hill, a member of the committee, said he would support the bill, a firestorm started on his Facebook page the last several days. Former state Sen. Dave Schultheis (R-Colorado Springs), a key supporter of Hill's in a GOP primary for the Senate seat, ripped him and said he "would not have endorsed" Hill had he known his position on the issue. "We've always been a nation of immigrants," Hill said after the vote. "I know I'm not going to be the only Republican who votes for this." Under Senate Bill 33, students who graduate from high school and have attended a Colorado school for at least three years would be eligible for the in-state tuition rate regardless of immigration status. Compromise versions of the bill the last two years excluded the illegal immigrant students from getting something called the College Opportunity Fund scholarship, which is a subsidy given to all Colorado students who get the in-state rate. This year, Democrats want to give the College Opportunity Fund to the students, but say they hope to pick up some Republican votes. Legislative analysts estimate there are approximately 1,500 high school graduates each year in Colorado without legal immigration status, and of those, about 500 will attend college the first year the law takes effect. An additional 250 will take advantage of the new law each year after that until 2017, analysts predicted. Based on those numbers, the new students would generate an additional $2 million in tuition for colleges and universities in the first year and $3 million the following year, money which also would be spent to educate those students. But because the 2013 version of the bill includes the College Opportunity Fund for the immigrant students, the state would spend $930,000 to subsidize the students the first year and $1.4 million the following year, the analysis said. The bill now must head to the Senate Appropriations Committee before it can go the full Senate, where it is expected to pass easily and possibly pick up more Republican support.

5 Denver Post: As Expected, Senate Committee Passes Colorado Civil Unions Bill A Senate committee on Wednesday passed a bill allowing gay couples to form civil unions despite protests it violates religious freedoms and overrides the will of Coloradans. The Senate Judiciary Committee approved Senate Bill 11 on a 3-2 party-line vote with both Republican senators opposed. "Today has been years in the making," said Sen. Lucia Guzman (D-Denver) one of four gay lawmakers sponsoring the bill. "There are those here today who spent years hiding, hiding the truth from their parents, friends, bosses, even hiding from themselves." The outcome of civil unions this session is not in doubt: Democrats control the Senate, House and the Governor's mansion. But that didn't stop a string of witnesses from testifying for more than four hours, urging the bill's passage or its death. Kellie Fiedorek with the Alliance Defending Freedom said the bill "fails to provide significant safeguards for the religious liberties of all Coloradans." Carrie Gordon Earll with CitizenLink, an arm of Focus on the Family, said the bill isn't about benefits, but about moving toward redefining marriage. Senate Bill 11 now heads to the Appropriations Committee, one of a number of steps before the measure makes it way to the Governor's desk. It is expected to be signed into law by Gov. John Hickenlooper in March and become law on May 1. A number of opponents pointed out that voters in 2006 rejected a civil-unions type measure while approving a ballot measure defining marriage as between one man and one woman. But Sen. Jessie Ulibarri (D-Commerce City) pointed out much has changed since then, including attitudes toward gays and civil unions. "Our laws are living and breathing," he said. And Sen. Irene Aguilar (D-Denver) noted voters in 2006 also rejected legalizing marijuana, which brought a laugh from crowd. Voters in November approved a measure that legalizes the sale and use of marijuana. A portion of the testimony dealt with the plight of a Lakewood baker who refused to make a cake for a gay couple and could face fines and a one-year jail sentence. The bill doesn't protect the constitutional rights of Coloradans, the baker's attorney, Nicolle Martin testified. The issue provided a string of light-hearted tweets and a remark from Ulibarri to the bill opponents. "Let them eat cake," he said. Perhaps the most poignant testimony came from Denver Mayor Michael Hancock, who talked about his brother's death from AIDS and how his mother was discriminated against. Mario Nicolais, spokesman for Coloradans for Freedom, a group of Republicans supporting civil unions, cited the movie "Lincoln" and the first Republican president's quest for liberty. "The so-called homosexual agenda is nothing more than a desire to participate in the American dream the rest of us are already afforded," he said.

6 This year's measure no longer includes a provision that exempts adoption agencies from placing children with same-sex couples. Mark Rohlena, with Catholic Charities of Central Colorado, said similar groups in other states were "forced out of the adoption-care business" when civil-unions like measures passed. But Steadman noted even when the bill contained that exemption Catholic leaders still testified against his measure, so he decided not to include it this year. Colorado Community Access Alliance: Club 20, Action 22, Counties, Cities and AGNC Send Letters to Governor Hickenlooper, PUC Voicing Concerns about Rural Rulemaking Leading regional advocacy groups including Club 20, Action 22 and Associated Governments of Northwest Colorado have joined several counties and cities to voice their concerns over the rural telecommunications rulemaking currently underway at the Public Utilities Commission (PUC). The PUC in December issued its initial decision on a rule that would, over time, phase out the state s high cost fund eventually eliminating subsidies for telecom providers who serve high cost areas. An appeal, lead by the Colorado Telecommunications Association and supported by other telecommunications providers, aims to stop the elimination of the fund. Letters to the PUC objecting to the phase out of the high cost fund also came from the 17 municipalities of the Region 10 advocacy group. According to Region 10 s letter: "Given the increased need across all sectors of society for greater access to more advanced telecommunications services, we believe the PUC must obtain input regarding the need for an updated definition of basic service...."redefining basic service in Colorado should not be delayed further. It is time for regulators and legislators to recognize the changes that are taking place and out pacing current rules and regulations...."colorado s rural citizens and businesses are being left behind the nation in favor of special interests and competitors that have no intention of serving rural communities fully and completely...."we respectfully request that the recent PUC rulemaking decision be vacated in favor of a full and transparent review of the definition of basic service." The PUC has until February 13 to issue its decision on the appeal. Amendment 64 Update The Amendment 64 Implementation Task Force working groups have been gathering between meetings of the Task Force. These working groups include: Consumer Safety/Social Issues; Criminal Law Issues; Local Authority and Control; Regulatory Framework; and Tax/Funding and Civil Issues. The Tax/Funding and Civil Issues group is responsible for employment-related discussions, particularly concerning employee drugtesting policies. At its last meeting on Wednesday, January 23, the group discussed what they are calling the majority recommendation and the minority recommendation on the employee drug policy issue. The majority recommendation is: The plain language of Amendment 64 Section 6(a) makes It clear that the intent of the voters was to maintain the status quo for employers and employees and also that employers may create or modify new policies in response to the passage of Amendment 64.

7 The minority recommendation is essentially that Amendment 64 changes the status quo and recommends enacting legislation or regulations that prohibit private employers from taking adverse employment actions against employees because of off-duty exercise of Amendment 64. The group deferred voting on these recommendations to a later meeting. The next meeting of the Tax/Funding and Civil Issues working group is scheduled for next Wednesday, January 30, from 11:00-1:00 at the new Ralph L. Carr Judicial Center. The Full Task Force will meet again on Tuesday, February 5, from 1:00-5:00 at the Ralph L. Carr Judicial Center. For more information on the Amendment 63 Implementation Task Force and the working groups, go to: Main/XRM/ Bipartisan Team Introduces Bill to Allow Substitution of Biosimilars On Friday, January 18, Representatives Sue Schafer (D-Wheat Ridge) and Carole Murray (R- Castle Rock) introduced House Bill 1121 which would give pharmacists the ability to dispense safe and less expensive biologic medications to patients by substituting an interchangeable biosimilar for an innovator brand biologic. Biotechnology drugs (biologics) are becoming increasingly important in the treatment of serious illnesses such as cancer, rheumatoid arthritis, multiple sclerosis, heart disease, HIV/AIDs, and other complex diseases. The molecules that comprise biologics, which are often produced from genetically engineered living cells, are larger and much more complex than traditional, chemicallyderived pharmaceuticals. Recognizing the complexity of biologics, the Affordable Care Act created a new pathway for the approval of biologics that are biosimilar to biological products already approved by the Federal Food and Drug Administration. Inherent in their name, these new biosimilars are not identical to their innovator counterparts. While state laws control pharmacists ability to make traditional, generic drug substitutions without physician consent, these laws don t yet address the new categories of medicines biosimilars so state laws must be updated to clarify substitution rules for these new products. House Bill 1121 would amend the Colorado Pharmacy Practice Act to: Allow pharmacists the ability to substitute an interchangeable biosimilar drug for an innovator brand product; Ensure physicians retain the authority to prohibit substitution by directing pharmacists to dispense as written ( DAW ); Require patients to be notified of substitution orally and in writing; Require pharmacists to notify a patient s physician that a substitution has been made, ensuring the substitution information gets into the patient s medical record; Colorado is among approximately twenty states across the country that are attempting to address biosimilar substitution this year. The bill is sponsored by Senators Rollie Health (D-Boulder) and Ellen Roberts (R-Durango) in the Senate. House Republicans Introduce Bills to Protect Victims, Prevent Crime

8 Republicans in the Colorado House of Representatives introduced four bills last week to protect victims and prevent future crimes from occurring. Premier among them is Rep. Libby Szabo s bill requiring mandatory sentencing for sex offenders, otherwise known as Jessica s Law. Szabo s House Bill 1149 would prompt Colorado to join more than two dozen other states that have enacted mandatory sentencing for convicted sex offenders. The Arvada lawmaker s bill requires 25 year sentencing for adults who sexually assault a child less than 14 years of age. The bill also requires the offender to remain on lifetime parole if they are released. Also included in the House Republicans legislative package are two bills sponsored by Rep. Frank McNulty of Highlands Ranch. House Bill 1020 lays out standards to collect and test forensic evidence collected after an alleged sexual assault. A 2011 report by the National Institute of Justice showed that in a span of five years, 18 percent of unsolved alleged sexual assault cases contained untested forensic evidence that remained in police custody. In Colorado, hundreds of rape kits remain untested across multiple counties, even though the Colorado Bureau of Investigations offers to test the collected evidence free of charge. McNulty s other bill included in the legislative package, House Bill 1127, reverses the burden of proof for defendants who plead not guilty by reason of insanity, so that the prosecution or the victim s family no longer needs to prove beyond reasonable doubt that a defendant is sane. House Bill 1112, sponsored by Rep. Polly Lawrence of Littleton, seeks to prevent images captured on public monitoring devices from falling into the wrong hands. Currently, anyone in Colorado can make an open records request to obtain recorded images from public surveillance cameras, opening the door wide for abuse by registered sex offenders or people with restraining orders served against them. We cannot have a free and healthy society without a criminal justice system that works to protect victims and prevent crime, said House Minority Leader Mark Waller, a former prosecutor from Colorado Springs. House Republicans are committed to strengthening Colorado and protecting opportunity for everyone who calls this state home. The Watercooler On Monday Colorado Water Congress took positions on the following bills: Senate Joint Resolution 005 by Senators Ellen Roberts (R-Durango) and Mary Hodge (D- Brighton) and Representative Jerry Sonnenberg (R-Sterling) concerning the adverse effects that the diversion of revenues has had on water infrastructure in Colorado. Position: Support House Bill 1012 by Representatives Cheri Gerou (R-Evergreen) and Claire Levy (D- Boulder) and Senators Ellen Roberts and Jeanne Nicholson (D-Black Hawk) concerning the extension of financial incentives for wildfire mitigation. Position: Support House Bill 1044 by Representative Randy Fischer (D-Ft. Collins) and Senator Gail Schwartz (D-Snowmass Village) concerning the authorization of the use of graywater. Position: Support House Bill 1100 by Representative Libby Szabo (R-Arvada) concerning a standard that makes a ballot title easier to understand. Position: Monitor

9 House Joint Resolution 1007 by Representative Fischer and Senator Schwartz concerning approval of water project revolving fund eligibility lists administered by the Colorado Water Resources and Power Development Authority. Position: Support The Calculator House Bills Introduced: 151 Senate Bills Introduced: 79 Number of Bills PI d: 6 (3%)