Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:03/18/2009
ATTENDANCE
Time:10:46 AM to 04:37 PM
Apuan
X
Benefield
*
Place:LSB A
Gerou
X
Kefalas
X
This Meeting was called to order by
Kerr A.
*
Representative Frangas
Lambert
X
Roberts
X
This Report was prepared by
Summers
X
Ron Kirk
Swalm
X
Frangas
X
Judd
E
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1298
SB09-139
HCR09-1002
HB09-1311
SB09-076
SB09-105
SB09-002		Referred to Appropriations
Referred to the Committee of the Whole
Referred to Appropriations
Referred to the Committee of the Whole
Referred to Appropriations
Referred to the Committee of the Whole
Referred to Appropriations


10:47 AM -- House Bill 09-1298 - Concerning Economic Development for the Trucking Industry

Representative McFadyen and Representative Gardner C., prime sponsors, explained the provisions of the bill. Representative McFadyen noted that the bill refunds a portion of state sales and use taxes paid on the sale, storage, or use of Class A motor vehicles, expands the enterprise zone 3 percent investment tax credit, and creates the Green Truck Grant Program. She continued by saying that of the top 100 trucking firms in the nation, none are headquartered in Colorado. Many neighboring states such as Utah, Kansas, and Nebraska, house a number of these firms. Representative McFadyen closed by commenting on the jobs that could be created if the bill was adopted and noted that trucking jobs on average pay about $48,000 per year.

















Representative Gardner C., commented on the economic incentives in the bill and discussed the Green Truck Grant Program's reimbursements and grants.

The following persons testified:

11:12 AM -- Mr. Greg Fulton, Colorado Motor Carriers Association, testified in support of the bill and distributed a packet of handouts on state taxes and fees on new truck purchases (Attachment A). Mr. Fulton spoke to the decline in the industry in Colorado and noted that in neighboring states, trucking firms do not have to pay a sales tax on the purchase of new trucks. He mentioned that House Bill 09-1298 levels the playing field by rebating a portion of the sales taxes paid in Colorado on new truck purchases. Mr. Fulton closed by discussing the expansion of the 3 percent investment tax credit in the bill.

09HouseFin0318AttachA.pdf

11:23 AM -- Mr. Galen Schaller, Concrete Express, testified in support of the bill and commented that Colorado needs to be more competitive in terms of the incentives that it provides to the trucking industry. He closed by saying that the trucking industry pays some of the highest fees in the region when doing business in Colorado.

11:28 AM -- Ms. Wendy Shupe, Colorado Motor Carriers Association, testified in support of the bill and discussed the number of employees that are part of her firm. She mentioned that new interstate trucks cost around $100,000 to purchase new and truck trailers can cost up to $40,000. These purchase prices can trigger large sales tax obligations to the state of Colorado. Ms. Shupe commented that most states that neighbor Colorado exempt the sales of commercial trucks from state sales taxes. In regard to the enterprise zone investment tax credit, Ms. Shupe noted that it is unfair that the trucking industry can not capture the same credit as other businesses claim on equipment. She closed by saying that the industry is operating at a disadvantage in Colorado.

11:33 AM -- Mr. Dan Coleman, Colorado Motor Carriers Association, testified in favor of the bill. He noted that the bill will level the playing field.

11:38 AM -- Mr. Dave Williams, Dairy Farmers of America, testified in support of the bill.

11:45 AM -- Mr. Mark Larson, Colorado Petroleum Association, testified in support of the bill and noted that the bill will pay for itself. He closed by urging the committee to support the bill.




















11:50 AM
BILL:HB09-1298
TIME: 11:50:36 AM
MOVED:Lambert
MOTION:Refer House Bill 09-1298 to the Committee on Appropriations. The motion passed on a 8-0 vote.
SECONDED:Swalm
VOTE
Apuan
Yes
Benefield
Excused
Gerou
Yes
Kefalas
Yes
Kerr A.
Excused
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS


11:55 AM -- Senate Bill 09-139 - Concerning the Uniform Principal and Income Act

Representative McGihon, prime sponsor, briefly explained the provisions in the bill and asked if the committee could hear testimony from Mr. Dennis Whitmer.

The following person testified:

11:57 AM -- Mr. Dennis Whitmer, representing himself, testified in support of the legislation. He explained that Senate Bill 09-139 was recommended by the Colorado Commission on Uniform State Laws. It adopts amendments to provisions of the Uniform Principal and Income Act. Mr. Whitmer closed by saying that the bill addresses state laws governing allocations of payments made by a trustee from a separate fund relating to qualifying for the federal marital deduction, the determination of the internal income of separate funds, and the payment of taxes on a trust's share of an entity's taxable income.















11:59 AM

After a brief committee discussion, the bill was placed on the table for action.
BILL:SB09-139
TIME: 12:00:02 PM
MOVED:Roberts
MOTION:Refer Senate Bill 09-139 to the Committee of the Whole. The motion passed on a 8-0 vote.
SECONDED:Apuan
VOTE
Apuan
Yes
Benefield
Excused
Gerou
Yes
Kefalas
Yes
Kerr A.
Excused
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS


12:01 PM -- HCR 09-1002 - Concerning a Constitutional Rainy Day Fund

Representative Gardner C., prime sponsor, briefly discussed the provisions of the bill. He noted that the resolution refers an amendment to the state constitution to voters in November 2010 to create the State Savings and Trust Fund in the State Treasury. The amendment does not require that any money be allocated to the fund; separate legislation would be needed to put money in the fund. Income and interest earned on money deposited in the fund would be counted as revenue subject to TABOR. The resolution only takes effect if approved by voters.

The committee discussed the mechanisms in the resolution for accessing money. Representative Gardner C. responded by saying that the legislature can access money from the saving account by a majority vote to transfer to the General Fund up to whatever amount is required to allow General Fund appropriations to increase by the allowable growth rate (6 percent) during any year in which there is insufficient revenue for that to occur. He noted that by a two-thirds vote, the legislature could transfer or appropriate money from the fund for any purpose.














On the repayment requirements, Representative Gardner C. noted that the resolution requires the General Assembly to repay or begin repaying the fund in the fiscal year immediately following any year or series of consecutive years during which money is spent from the fund. Specifically, the amendment requires that one-sixth of the allowable increase in General Fund appropriations be used to repay the fund each year until the fund's balance equals or exceeds the balance that existed prior to the first expenditure of money from the fund, adjusted for inflation. Under current law, that would require that growth in General Fund appropriations be limited to 5 percent rather than 6 percent, with the remaining 1 percent deposited into the fund for as many years as it takes for the fund to be fully repaid. After a brief committee discussion, the resolution was placed on the table for action and no amendments were offered.


12:16 PM
BILL:HCR 09-1002
TIME: 12:16:39 PM
MOVED:Roberts
MOTION:Refer House Concurrent Resolution 09-1002 to the Committee on Appropriations. The motion passed on a 8-1 vote.
SECONDED:Lambert
VOTE
Apuan
Yes
Benefield
Excused
Gerou
Yes
Kefalas
Yes
Kerr A.
No
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 8 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS


12:22 PM

Recess.














01:34 PM -- House Bill 09-1311 - Concerning the Single-Factor Apportionment Process

Representative Benefield, prime sponsor, explained the provisions of the bill.

The following person testified:

01:37 PM -- Mr. James Kennedy, Oppenheimer & Company, testified in support of the bill. Mr. Kennedy began by saying that under current law, a mutual fund service corporation that provides management, distribution, and administrative services for a regulated investment company must apportion income to Colorado based on the percentage of shareholders in the regulated investment company that are domiciled in Colorado.

Mr. Kennedy closed by saying that House Bill 09-1311 specifies that the percentage of shareholders in a regulated investment company that are domiciled in Colorado will be used to source mutual fund sales to Colorado, rather than apportion income. The bill also specifies that this sourcing requirement applies to all mutual fund service corporations, not just to those that derive more than 50 percent of gross income from mutual fund advisory services. After a brief committee discussion, the bill was placed on the table for action.


01:41 PM
BILL:HB09-1311
TIME: 01:41:10 PM
MOVED:Benefield
MOTION:Refer House Bill 09-1311 to the Committee of the Whole. The motion passed on a 9-0 vote.
SECONDED:Kerr A.
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Excused
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS













01:42 PM -- Senate Bill 09-076 - Concerning the Employer Tax Surcharge

Representative Court, prime sponsor, briefly explained the provisions in the bill and asked the committee if questions about the bill could be addressed by the Colorado Department of Labor and Employment.

The following persons testified:

01:45 PM -- Mr. Mike Cullen, Colorado Department of Labor and Employment, responded to committee questions about the Unemployment Insurance (UI) benefits computer system. Mr. Cullen continued by saying that this bill creates the Employment and Training Technology Fund for automation initiatives at the Department of Labor and Employment. It diverts 20 percent of employer surcharge taxes to the Technology Fund which reduces to 30 percent the amount of taxes deposited into the Unemployment Compensation Trust Fund.

The committee engaged in a discussion on the UI Trust Fund.

02:17 PM -- Ms. Dara Hessee, Governor's Office of Information Technology, testified in support of the bill and discussed the updating of state computer systems by the Office of Information Technology.


02:47 PM
BILL:SB09-076
TIME: 02:53:30 PM
MOVED:Benefield
MOTION:Refer Senate Bill 09-076 to the Committee on Appropriations. The motion passed on a 9-1 vote.
SECONDED:Kefalas
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 9 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS












02:59 PM -- Senate Bill 09-105 - Concerning Certain Taxes to Fight Fires

Representative Scanlan, prime sponsor, explained that current law allows counties, with voter approval, to impose a special property tax to generate funding for the purpose of fighting both forest and prairie fires. Senate Bill 09-105 allows for an increase in the property taxes imposed by certain counties, if approved by voters. She closed by saying that the actual increase cannot be estimated, but will depend on how much counties choose to seek, and how much voters choose to approve.

The following person testified:

03:05 PM -- Mr. Paul Cooke, Colorado State Fire Chiefs' Association, testified in support of the legislation. Mr. Cooke said that wild fires are a statewide problem and it makes sense to pass this bill to help the state fight fires. He closed by discussing the districts that provide emergency services and commented that counties could fund mitigation efforts through the mill levy increase in this bill.


03:14 PM
BILL:SB09-105
TIME: 03:15:17 PM
MOVED:Roberts
MOTION:Refer Senate Bill 09-105 to the Committee of the Whole. The motion passed on a 10-0 vote.
SECONDED:Benefield
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Excused
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS















03:21 PM -- Senate Bill 09-002 - Concerning Motor Vehicle Fees to Fund Emergency Medical Services

Representative Peniston, prime sponsor, explained the provisions of the bill. She noted that Senate Bill 09-022 increases a motor vehicle registration fee from $1 to $2. The fee increase is credited to the emergency medical services account within the Highway Users Tax Fund. Representative Peniston continued by saying that the emergency medical services account is used to help support the state's emergency medical and trauma network. The account is administered by the Department of Public Health and Environment and supports local emergency service providers through grants. After a brief committee discussion on fee bills, the committee heard testimony.

The following persons testified:

03:25 PM -- Dr. Ned Calonge, Department of Public Health and Environment, testified in support of the bill. Dr. Calonge discussed state funding to support emergency medical services. He also recognized emergency medical service professionals present in the committee room. Dr. Calonge responded to questions from committee members. Dr. Randy Kuykendall, representing the Department of Public Health and Environment, discussed current funding needs for emergency services.

03:34 PM -- Dr. Randy Kuykendall, Department of Public Health and Environment, testified in support of the bill and responded to committee questions about emergency medical system costs. The fee increase will really make a difference to funding emergency care in Colorado.

03:11 PM -- Chief Dan Noonan, representing the Colorado State Emergency Medical and Trauma Advisory Council, testified in support of the bill.

03:17 PM -- Mr. Tim Dienst, Ute Pass Regional Ambulance District, testified in support of the measure and discussed the history of funding for emergency services.

03:54 PM -- Mr. Sean M. Caffrey, EMS Association of Colorado, testified in support of the bill. Mr. Caffrey closed by discussing how the fee increase could aid EMT professionals in rural parts of Colorado.

04:22 PM -- Chief Chris Riley, Colorado State Fire Chiefs' Association, testified in support of the bill. Chief Riley discussed call volume increases over the past twenty years. He closed by discussing the changing role of EMTs as they operate on less and less money. He urged the committee to support the bill.






















04:26 PM

After a brief committee discussion on fee bills before the General Assembly, the bill was placed on the table for action.
BILL:SB09-002
TIME: 04:26:16 PM
MOVED:Roberts
MOTION:Refer Senate Bill 09-002 to the Committee on Appropriations. The motion passed on a 6-4 vote.
SECONDED:Gerou
VOTE
Apuan
No
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
No
Roberts
Yes
Summers
No
Swalm
No
Frangas
Yes
Judd
Excused
Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:37 PM

Adjourn.