House panel approves takeover of insurer | SummitDaily.com

House panel approves takeover of insurer

THE ASSOCIATED PRESS

DENVER ” A House committee gave its approval to a bill to take over a state-created workers compensation insurance company to balance next year’s budget. Lawmakers are hoping to use some of Pinnacol Assurance’s reserves to avoid huge cuts in higher education.

The Legislature is searching for dollars amid a big drop in tax revenues because of the recession.

The bill approved Tuesday by the House Appropriations Committee changes the structure of Pinnacol and takes control of its money away from its board.

Rep. Paul Weissmann, D-Louisville, who sponsored the bill, said he wanted to make it clear the state has the same control over the insurance company that it had in 1991, before legislation was introduced that gave the company more power over regulation and finances. He said he opposes any negotiations with the company over who has control.