Businesses take home legislative victories

DENVER - Democrats declared small businesses and the new energy economy the winners of the 2008 legislative term. Republicans say trial lawyers should have been added to the list.

Gov. Bill Ritter joined House Speaker Andrew Romanoff and Senate President Peter Groff to tout the success of Democrats' business agenda Wednesday after the Legislature adjourned Tuesday night.

Leading it off was the repeal of the business personal property tax. More than 30,000 small businesses with $4,000 or less in business equipment will no longer have to pay taxes on it when the $2,500 exemption is raised next year.

The exemption will be increased to $7,000 by 2011.

The bill to repeal the tax was co-sponsored by Rep. Bernie Buescher, D-Grand Junction. He said the tax raises relatively little money for the state, but it can take small companies days to calculate what they owe. Eliminating the tax will remove an annoying burden, Buescher said. Ritter has said he will sign the bill, which the Legislature passed unanimously.

Democrats also touted measures they hope will create greater demand for renewable energy technology. One measure will allow counties and municipal districts to finance loans to residents and businesses who wish to install solar power generators. Another would require utilities to reimburse customers for the extra energy their solar systems generate that goes into the power grid.

Members of both parties have supported the tax cut and renewable energy initiatives; two efforts to regulate the insurance industry have been far more controversial.

HB1407, sponsored by Romanoff, would penalize insurers who are found to unreasonably deny or delay payment of a customer's claim.

HB1389, sponsored by Rep. Morgan Carroll, D-Aurora, would give the state insurance commissioner the power to reject medical insurance rate hikes. Carroll said her measure would help small businesses because insurance costs are "the biggest uncontrolled growth area in their budget."

Republicans attacked the bills for adding more regulations and opening the door to more lawsuits. Rep. Cory Gardner, R-Yuma, said that will drive up rates and drive away business.

"A very strong and clear message was sent that we're going to tax you, we're going to regulate you and we're going to litigate you," he said.

Local business leaders view the term as having mixed results, said Stephannie Finley, the president of the government affairs division of the Greater Colorado Springs Chamber of Commerce. The tax break will help some businesses, but aside from getting the funds to finish building new laboratories at the University of Colorado-Colorado Springs, there wasn't much else for them to cheer for, she said.

"Sometimes success is not what you passed, it's what you stopped from happening," she said.

By that measure, business won the battle on two of the term's most controversial bills. SB164 would have increased the amount of money medical malpractice victims can receive. The state medical association said the bill would have led to more lawsuits and higher insurance rates and fought hard to defeat it.

Business also won the fight over HB1310, which would have limited the interest rates and transaction fees payday lenders could charge. Industry supporters say the changes would have driven them out of business.