Page 9 - BOD 4-20-17

CBA Board of Directors, CBA office, Thursday, April 20, 2:00pm-4:00pm Page 9.

• An employer has the responsibility to furnish employees all material determined by the
board and to automatically enroll employees at the rate of 5%. I believe this will create
liability for the employer. What happens when an employee claims they didn’t
understand they had an option to opt-out? What if the employee states they told an
employer to contribute at a rate of 4% instead of 5%, but the account was established at
5%? Who protects the employer and the employee?
• Even part-time, seasonal and paid interns must be enrolled in the state-mandated
plan. This will be extremely burdensome for employers that have seasonal employees
(ski areas, seasonal farm workers, employers that hire only for the holidays…)
• The bill is silent regarding dormant accounts. When are these accounts submitted to the
Treasurer under escheat laws? How are plan participants notified?
• The bill appears to be drafted to place responsibility on employers, while exempting the
state from liability and compliance that private plans are required to have.
• While we agree with proponents that individuals do need to save for retirement, the bill is
not needed. Private industry and the Federal government through MyRA offer numerous
options to save for retirement.

Key Question/Action – Discussion only, the GAC already gave direction to oppose the bill.

Construction Litigation Reform – Several bills have been introduced.
HB17-1169: Construction Defect Litigation Builder's Right To Repair DEAD
Sponsors: T. Leonard / J. Tate - The bill clarifies that a construction professional has the right
to receive notice from a prospective claimant concerning an alleged construction defect; to
inspect the property; and then to elect to either repair the defect or tender an offer of settlement
before the claimant can file a lawsuit seeking damages.
SB17-045: Construction Defect Claim Allocation Of Defense Costs The bill passed first
committee and is scheduled to be heard in appropriations.
Sponsors: A. Williams | K. Grantham / C. Wist | C. Duran - In a construction defect action in
which more than one insurer has a duty to defend a party, the bill requires the court to apportion
the costs of defense, including reasonable attorney fees, among all insurers with a duty to
defend. An initial order apportioning costs must be made within 90 days after an insurer files its
claim for contribution, and the court must make a final apportionment of costs after entry of a
final judgment resolving all of the underlying claims against the insured. An insurer seeking
contribution may also make a claim against an insured or additional insured who chose not to
procure liability insurance for a period of time relevant to the underlying action. A claim for
contribution may be assigned and does not affect any insurer's duty to defend.
SB17-155: Statutory Definition Of Construction Defect The bill has not yet passed first
committee.
Sponsors: J. Tate / L. Saine - The bill separately defines and clarifies the term 'construction
defect' in the 'Construction Defect Action Reform Act'.
SB17-156: Homeowners' Association Construction Defect Lawsuit Approval Timelines
The bill passed the Senate, expected to die in the House.
Sponsors: O. Hill / L. Saine | C. Wist - The bill states that when the governing documents of a
common interest community require mediation or arbitration of a construction defect claim and
the requirement is later amended or removed, mediation or arbitration is still required for a
construction defect claim. These provisions are in section 3 of the bill. Section 3 also specifies

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