Senate Committee on Finance (02/10/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:	02/10/2009	ATTENDANCE

Time:	02:06 PM to 04:22 PM	Brophy	X
		Heath	X
Place:	SCR 354	Isgar	X
		King K.	X
This Meeting was called to order by		Scheffel	X
	Senator Sandoval	Hudak	X
		Sandoval	X
This Report was prepared by
	Elizabeth Hanson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1002 SB09-016 SB09-133 SB09-085 SB09-157		Amended, Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Referred to Appropriations Referred to Appropriations Referred to the Committee of the Whole

02:06 PM

The committee came to order. A quorum was present.

02:07 PM -- House Bill 09-1002

Senator Tapia, prime sponsor, presented House Bill 09-1002, concerning the operation of the State Lottery, and provided the committee with background and reasons for the proposed bill. The bill makes clarifying amendments to statutory provisions related to the duties and powers of the Colorado Lottery Commission. He explained that the bill addresses recommendations by the Office of the State Auditor. In 2004, the General Assembly changed the Colorado Lottery to a Type 2 agency, but other sections of the law were not modified at that time, he said. Senator Tapia stated that the bill allows the State Lottery to sell tickets for less than one dollar, which is currently prohibited, and further clarifies the regulatory framework for governing instant scratch games. The bill, he stated, will also allow drawings to be reviewed by an independent auditor instead of a certified public accountant (CPA).

The following witness testified on the bill:

02:12 PM -- Mr. Tom Kitts, representing the Colorado Lottery, testified about the bill and responded to questions from the committee about the lottery's operations and the presence of a CPA versus an independent auditor. He stated that the lottery always has an independent auditor present during its operations, and that the current law requiring a CPA be at the lottery every night for oversight is expensive to the lottery.

02:24 PM

Senator Sandoval closed public testimony.

02:25 PM

Discussion ensued about the lottery's operations and Senator Hudak offered an amendment, which she later withdrew.

02:38 PM

Discussion also ensued about the required qualifications of the independent auditor reviewing the lottery's activities.


BILL:	HB09-1002
TIME:	02:24:46 PM
MOVED:	Heath
MOTION:	Refer House Bill 09-1002, as amended, to the Committee of the Whole, with the recommendation that it be placed on the consent calendar. The motion passed 7-0.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	Yes
	Isgar	Yes
	King K.	Yes
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB09-1002
TIME:	02:38:43 PM
MOVED:	Isgar
MOTION:	Amend the reengrossed bill, page 9, line 20, after "AUDITOR", insert "EMPLOYED BY A CERTIFIED PUBLIC ACCOUNTANT FIRM". The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1002
TIME:	02:25:06 PM
MOVED:	Hudak
MOTION:	WITHDRAWN: Amend the reengrossed bill, page 9, line 17, reinstate current law on lines 17-19. After some discussion ensued, Senator Hudak withdrew the amendment.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE

02:40 PM

The committee recessed.

02:44 PM -- Senate Bill 09-016

The committee reconvened.

Senator Kopp, prime sponsor, presented Senate Bill 09-016, which provides incentives to encourage the restoration of forest areas affected by bark beetles. He distributed two amendments to the committee: L.001 (Attachment A) and L.002 (Attachment B). Senator Kopp further discussed the amendments to the bill, stating that he was working with Governor's office on economic development and saying that with L.001 and L.002, the bill does not require an appropriation. Discussion ensued about issues affecting the business personal property tax, which businesses qualify in the bill, and access to the business personal property tax exemption.

02:48 PM

The committee briefly recessed.

02:50 PM

The committee reconvened. Senator Kopp continued responding to questions about the bill's impact on the business and personal property tax. Discussion ensued about the impacts of the proposed amendments to Colorado tax law.

02:58 PM

The committee recessed briefly then reconvened.

The following witnesses testified on the bill:

02:59 PM -- Mr. Todd Herreid, Legislative Council Staff, responded to questions about the business personal property tax in general and the tax exemption included in Senate Bill 09-016.

03:05 PM -- Mr. Richard Homann, representing the Colorado State Forest Service, testified about the bill. He responded to questions about bark beetles, the species of pine affected by infestation, and the fire hazards of bark beetle kill.


BILL:	SB09-016
TIME:	03:07:11 PM
MOVED:	Heath
MOTION:	Refer Senate Bill 09-016, as amended, to the Committee of the Whole. The motion passed 6-0, with one excused.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	Yes
	Isgar	Yes
	King K.	Excused
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-016
TIME:	03:12:31 PM
MOVED:	Heath
MOTION:	Amend the printed bill, page 3, strike lines 15 through 18. The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB09-016
TIME:	03:07:44 PM
MOVED:	Heath
MOTION:	Adopt Amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB09-016
TIME:	03:10:41 PM
MOVED:	Heath
MOTION:	Adopt Amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:12 PM

The committee recessed.

03:13 PM -- Senate Bill 09-133

The committee reconvened.

Senator Spence, prime sponsor, presented Senate Bill 09-133. The bill would increase the surcharges for any traffic violation that are credited to the Colorado Traumatic Brain Injury Trust Fund. The bill will increase these surcharges by $5.00 for driving under the influence (DUI) and speeding. Senator Spence began by providing background information about the bill and the Colorado Traumatic Brain Injury Trust Fund. The trust fund, she explained, receives money only from the proceeds of fines that are collected from certain speeding, motorcycle, and drunk driving violations. Senator Spence responded to questions from the committee about the trust fund balance.

The following people testified on the bill:

03:20 PM -- Ms. Nancy Smith, representing the Colorado Department of Human Services, responded to questions from the committee about the services that are provided to traumatic brain injury victims. She stated that the department has a waiting list of 250 people needing patient services. Committee discussion ensued about legislative spending authority.

03:29 PM -- Mr. Kenneth Hosack, Colorado Traumatic Brain Injury Trust Fund, testified in support of the bill. He stated he has worked to assist victims of traumatic brain injuries for over 30 years, and said that about 5,000 citizens are hospitalized every year in Colorado for these injuries. He also provided background about the Colorado Traumatic Brain Injury Trust Fund, stating that about 65 percent of the money goes toward services, 30 percent toward research, and 5 percent toward education.. Mr. Hosack responded to questions from the committee about the program's current balance and the reasons for raising the fines.

03:36 PM -- Mr. William Levis, representing the Brain Injury Association of Colorado, testified in support of the bill. He stated that he is a father of a son that suffers from a traumatic brain injury. He stated that the critical time to address these traumatic injuries is within two years of the event, and the current wait list makes it difficult for victims to get the help they need within this timeframe.

03:38 PM -- Ms. Nadine Lund, representing herself, testified in support of the bill. While displaying a picture of her daughter, Ms. Lund explained that her daughter suffers every day from a traumatic brain injury. Ms. Lund stated that she did not know about the existence of the brain injury fund until she heard about it in a newscast. The fund, she stated, has helped her daughter and provided financial assistance to her family.

03:43 PM

Senator Sandoval closed public testimony.


BILL:	SB09-133
TIME:	03:44:45 PM
MOVED:	Hudak
MOTION:	Refer Senate Bill 09-133 to the Committee on Appropriations. The motion passed 5-0, with 2 excused.
SECONDED:
		VOTE
	Brophy	Excused
	Heath	Yes
	Isgar	Yes
	King K.	Excused
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

Final YES: 5 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

03:46 PM

The committee recessed.

03:48 PM -- Senate Bill 09-085

The committee reconvened.

Senator Scheffel, prime sponsor, presented Senate Bill 09-085, which eliminates the business personal property tax in Colorado. Senator Scheffel provided background about the bill and his ongoing discussions with individuals in Colorado about this issue. He said that the bill phases out the tax over a 20-year period, and excludes state-assessed property in an effort to decrease the bill's fiscal impact. He said that businesses have expressed the tax inhibits job growth and economic development. Senator Scheffel responded to questions from the committee about the bill's impact on school finance.

04:00 PM

Discussion ensued about phasing out the tax and the resulting impact on education, school finance and local governments. Discussion also ensued about the personal property tax's burden on different types of businesses, including those in the service and manufacturing sectors. Committee members expressed interest in looking at the tax system as a whole, TABOR, and the six percent spending limit.

The following person testified on the bill:

04:05 PM -- Mr. Tony Gagliardi, representing the National Federation of Independent Businesses (NFIB), testified about the bill. He stated the business personal property tax has been an issue for years for small businesses in Colorado. Mr. Gagliardi stated that he will continue working to address this tax issue and its implications for small businesses.

Discussion continued about repealing the personal property tax and the extensive dialogue and process in moving this idea forward.


BILL:	SB09-085
TIME:	04:10:49 PM
MOVED:	Scheffel
MOTION:	Refer Senate Bill 09-085 to the Committee on Appropriations. The motion passed 5-1, with one excused.
SECONDED:
		VOTE
	Brophy	Excused
	Heath	Yes
	Isgar	Yes
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	Yes

Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:12 PM -- Senate Bill 09-157

Senator Sandoval passed the gavel to Senator Hudak to chair the meeting.

Senator Sandoval, prime sponsor, presented Senate Bill 09-157. The bill specifies that certain employees of the University of Colorado will be members of the university's retirement plan, including the university president, chancellors, deans, some faculty, and other professionals exempt from the state personnel system. She provided background on the proposed legislation. Senator Sandoval responded to questions from the committee about why the bill does not have a fiscal impact. Discussion ensued about contributions to the Public Employees' Retirement Association (PERA).

The following person testified on the bill:

04:16 PM -- Mr. Jeremy Hueth, representing the University of Colorado, testified in support of the bill. He stated that university employees have the option to make a one-time choice about participation in PERA. This bill, he explained, clarifies the university's existing interpretation. He further explained that this issue impacts a small amount of employees, approximately one percent.

04:21 PM

Senator Hudak closed public testimony.


BILL:	SB09-157
TIME:	04:21:24 PM
MOVED:	Isgar
MOTION:	Refer Senate Bill 09-157 to the Committee of the Whole, with a recommendation that it be placed on the consent calendar. The motion passed 6-0, with one excused.
SECONDED:
		VOTE
	Brophy	Excused
	Heath	Yes
	Isgar	Yes
	King K.	Yes
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:21 PM

The committee adjourned.