NU Online News Service, April 15, 9:51 a.m. EDT
Despite objections by management of Pinnacol Assurance, Colorado's state-chartered workers' compensation insurer, a State House of Representatives committee yesterday narrowly approved a measure giving the state authority to tap the carrier's surplus to balance its budget.
The vote was 18 to 15 to release SB 281. Previously when the bill passed the Senate Pinnacol President and Chief Executive Ken Ross announced that he would campaign to defeat what he called an unconstitutional "raid" on the insurer's assets.
Under the bill Pinnacol is declared a political subdivision of the state, reversing legislation approved in 1991 giving the insurer power over regulation and finances as a quasi-public authority
On Monday hundreds of Pinnacol policyholders turned out for a "Protect Pinnacol" rally at the Capitol.
Mr. Ross had promised to fight against the move after Monday's passage by the state Senate of SB 281 and another designed to permit the transfer of $500 million in Pinnacol surplus for higher education funding. That measure to transfer the funds has been pulled..
Mr. Ross said the Senate measures that were approved are "two ill-advised and shortsighted pieces of legislation that are bad for businesses, bad for injured workers and bad for Colorado."
He mentioned that the vote to pass the bills came despite the fact that Colorado's attorney general accepted a legal opinion from the solicitor general "stating that a plan by Colorado lawmakers to raid Pinnacol Assurance assets is unconstitutional and impairs a vested interest our policyholders have in Pinnacol's assets."
Mr. Ross said Solicitor General Dan Domenico had pointed out that "a long and costly legal battle could ensue" and he did not see how his office could defend the lawmakers' move.
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