Business lobbyists speaking Thursday in Durango said Gov. Jared Polis’ veto of the Wage Theft Bill is a win for Colorado businesses.
During an Eggs and Issues forum hosted by the Durango Chamber of Commerce, Colorado Competitive Council Executive Director Rachel Beck and lobbyist Travis Berry of political works presented information about this year’s legislative wrap up.
Berry and Beck both advocate for business-friendly policies that are supposed to help Colorado’s economy. On Wednesday, both speakers illuminated the importance of Polis’ veto of HB24-1008, Colorado’s Wage Theft Bill and the rejection of short-term rental property tax hikes.
HB24-1008 sought to hold general contractors liable for wage theft committed by subcontractors.
The bill specifies that a general contractor would have be held responsible for wage law violations committed by a subcontractor even if the general contractor was unaware of a claim being made.
Beck’s concern about the bill was that it made little attempt to hold bad subcontractors acting in bad faith accountable and placed all of the responsibility on the contractor.
Beck said while the law was limited to the construction industry, it is rumored that members of Congress planned to recycle the idea and implement it into legislation regarding other industries.
She said there are already extensive penalties that include criminal prosecution for wage law violations in Colorado, and adding more regulation would harm businesses.
Colorado’s short-term rental property tax bill was soundly defeated 6-1 in its first legislative hearing on April 16.
The bill would have boosted the 7.15% residential tax assessment rate on such properties to the 29% rate on commercial properties if owners rented the homes and condominiums out for at least 90 days per year.
Short-term rentals have become a hot topic for tourist-driven economies. Claims have been made that short-term rentals take away from workforce housing.
However, the fear was that tax hikes would take those properties off the market, making fewer lodging options available and deterring tourism as well as the ability to turn those properties into long-term housing solutions if needed.
Beck said Colorado Competitive Council helped multiple chambers of commerce and steering committee partners to draft 9,000 emails to legislators regarding the issues with the bill.
Both speakers addressed Colorado’s increasing litigious environment. Beck said Colorado laws are making it easier to sue businesses.
“Bill after bill that we've seen, especially in the last few years, has resulted in new ways for businesses to be sued, increases in damages that businesses are on the hook for and other costs,” Beck said.
She said the U.S. Chamber Institute for Legal Reform calculated the average cost to the taxpayer on legal reform legislation is $4,011 per person.
“All of these different kinds of (bill) proposals like that have a lawsuit enforcement component to them, rather than having a law in an administrative function that says, ‘Hey, do the right thing and if you don't do the right thing, then we’re going to come after you,’” Barry said.
tbrown@durangoherald.com
