Subpoena powers sought

Bill would boost accounting board

By Arthur Kane
Denver Post Capitol Bureau

Friday, February 14, 2003 - Legislators approved bills that would give accounting regulators subpoena power and government officials more information about their investments as part of a series of corporate corruption measures heard in a House committee Thursday.

But the Business Affairs and Labor Committee killed a bill that holds company directors responsible for their company's environmental and safety violations. It would also have prohibited the shredding of documents by companies under investigation.

Tony Van Westerum, an attorney representing corporate clients, said the bill is too broad and criminal laws already prohibit shredding. "I had lunch today, and I think that was at the expense of the environment," he said of House Bill 1203 by John Pommer, D-Boulder. "Almost everything humans do are at the expense of the environment."

But Rex Wilmouth, of Colorado Public Interest Research Group, said the bill is important to preserve people's retirement plans and keep the economy healthy.

"Our economy prospers only when the honest companies are not disadvantaged by dishonest companies," he said.

The bill failed 8-5 because legislators were concerned that it was too broad.

"Holding a director responsible for any impact on the environment" is too much, said Rep. Angie Paccione, D-Fort Collins.

A bill reinstating subpoena powers to the state Board of Accountancy passed despite misgivings by some legislators.

The state Supreme Court three years ago overturned the board's broad subpoena powers. HB 1197, by Rep. Mike May, R-Douglas County, would reinstate the powers for accountants' work documents if they attest to a company's financial condition.

The committee also passed HB 1204, by Rep. Joe Stengel, R-Littleton. The bill would require investment firms that do business with the state or local government to disclose any financial interests they have in the securities they are selling.

A fourth bill, by Rep. Michael Garcia, D-Aurora, was killed after the sponsor said federal legislation already covers the situation. HB 1277 would have required auditors to wait a year before taking jobs with companies they are auditing.