BREAKING: AG Coffman Upholds Hospital Provider Fee Change

UPDATE #2: Senate Minority Leader Lucia Guzman’s hilarious response to today’s opinion–hilarious if you’ve seen Senate President Bill Cadman’s original below, that is:



UPDATE: The Colorado Independent’s Corey Hutchins:

Whether to reclassify the program isn’t a novel idea this year. Last year, the state’s Democratic House Speaker brought forward a bill, late in the session, and Republicans killed it.

The fight last year and this time around has oddly pitted Republicans against a near monolithic voice of the state’s business community that includes the Denver Chamber of Commerce, the Colorado Association of Commerce and Industry, Associated General Contractors, the state Wheat Growers Association and chambers from Aurora to Grand Junction, and others.

Last year, when the hospital provider fee issue was being debated late in the legislative session, 307 lobbyists had signed up to work in support of reclassifying it. Only one group was opposed: Americans for Prosperity, the prime political arm of the billionaire industrialist Koch brothers. This year in Colorado’s legislature, AFP has made its top priority defending TABOR and keeping revenue generated by the hospital provider fee inside the economic structure that can trigger TABOR refunds. The group has asked lawmakers to sign a pledge saying they won’t vote to reclassify the program.


State Sen. Bill Cadman (R-Koch Brothers) loves the word "NO."

State Sen. Bill Cadman (R-Koch Brothers) loves the word “NO.”

Big news this Monday morning on a question that’s critical to this year’s–and future years’–Colorado budgets. Providing guidance on the question of whether the state can reclassify the 2009 hospital provider fee to exclude the revenue from caps imposed by the Taxpayer’s Bill of Rights, thus sparing the budget from large unnecessary cuts elsewhere, Republican Attorney General Cynthia Coffman has released her long-awaited opinion requested by Gov. John Hickenlooper.

GOP Senate President Bill Cadman, who began this year’s legislative session by declaring any such fix a nonstarter, isn’t going to like it.

Question: Under current case law interpreting the requirement that enterprises be “government-owned businesses,” may the General Assembly establish a TABOR-exempt enterprise to collect and administer the Hospital Provider Fee?

Answer: Yes. Considering both judicial interpretations of TABOR and the General Assembly’s prior decision to classify the HPF as a fee rather than a tax, organizing the HPF as an enterprise would not contravene the three considerations that determine an entity’s status as a government-owned business: an HPF enterprise would (1) lack the power to tax, (2) provide government services in exchange for involuntary fees levied on service recipients, and (3) be financially distinct from its parent agency.

You’ll recall that Cadman blew up negotiations over the hospital provider fee at the beginning of the session by circulating an opinion from the nonpartisan Office of Legislative Legal Services suggesting the fix wouldn’t pass muster under TABOR. No one is impugning the credibility of OLLS’s staffers, but the fact is that their opinion is strictly advisory and nonbinding. Cadman was on shaky ground to summarily declare the hospital provider fee fix dead on the strength of this one nonbinding opinion.

As of now, Cadman has no legal leg left to stand on.

13 Community Comments, Facebook Comments

  1. notaskinnycook says:

    Bless Cindy’s pointy little head! She did something right!

  2. bullshit! says:

    Watcha gonna do now, Billy boy? Cynthia Coffman just left you with your ass flapping in the breeze.

  3. BlueCat says:

    Well there's a surprise.  Now Moderatus is going to have to tear up the response he had all prepared for when she stood up for TABOR and said "no" and start from scratch. Probably with saying something pithy like "real classy, notaskinnycook".  

  4. FrankUnderwood says:

    Perhaps this time a delegation led by Bill Cadman, Steve House and Marilyn Marks needs to visit Cynthia for some career counseling.   

  5. Moderatus says:

    Who do you think you're kidding, Pols? AG Coffman's opinion is no more binding than anyone else's. Besides, don't you hate her after "Coffmangate?"

    • Colorado Pols says:

      Are you confused by the words "Attorney" and "General"? This isn't some random person weighing in on the HPF.

    • Wong21fr says:

      Not binding, but as the chief law officer of the state, the Coloardo Attorney General provides legal opinions upon request to designated state and local public officials and government agencies on issues arising in the course of their duties. The formal legal opinions of the Attorney General have been accorded "great respect" and "great weight" by the courts.


      Eh, what do you know?  You're a political operative in a party that's imploding.

  6. Voyageur says:

    Even more basically the blessing of a Republican AG gives vital political cover to Republican legislatprs who want to heed the pl eas of the business community to pass this to save our infrastructure without a tax increase.  As the top Republican in the state, she speaks with real authority on the subject.


Leave a Reply

Comment from your Facebook account

You may comment with your Colorado Pols account above (click here to register), or via Facebook below.