House Committee on Finance (02/24/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/24/2010	ATTENDANCE

Time:	10:40 AM to 05:18 PM	DelGrosso	*
		Frangas	X
Place:	LSB A	Gerou	X
		Kagan	X
This Meeting was called to order by		Kefalas	X
	Representative Judd	Labuda	X
		Roberts	X
This Report was prepared by		Summers	X
	Ron Kirk	Swalm	X
		Benefield	X
		Judd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB10-1295 HB10-1329 HB10-1280 HB10-1220 HB10-1186		Postponed Indefinitely Amended, Referred to the Committee of the Whole Amended, Referred to Appropriations Amended, Referred to Appropriations Postponed Indefinitely

10:40 AM -- House Bill 10-1295 - Concerning Income Tax Credits for Nonpublic Education

Representative Lambert, prime sponsor, explained the provisions of the bill and discussed the fiscal impact. He continued by saying that the bill creates an income tax credit for individuals who enroll their dependent child in a home-based or private school and to any taxpayer who offers a scholarship to a child who enrolls in a private school. In order to qualify, the child must have been enrolled in a public school immediately before enrolling in the private school or a home-based school. Children continue to qualify for the credit each year until they return to a public school. The credit is not refundable but can be carried forward for three years.

The following persons testified:

10:44 AM -- Ms. Karen Wick, Colorado Education Association, testified in opposition toward the bill. She continued by saying this bill will reduce state General Fund revenue by $24 million in FY 2010-11 and not save school districts money. She continued her presentation discussing the home-schooled portion of the credit and the differences between nonpublic and public schools. She closed by saying Colorado has a very vibrant charter school system and her organization does not believe public money should fund nonpublic education.

10:51 AM -- Ms. Treon Goossen, RO8-28, testified in support of the bill. Ms. Goossen noted that House Bill 10-1295 will not encourage families to leave the public school systems but will offer options. Ms. Goossen noted that the home-school option is not an inferior education when compared to the public school option. She closed by urging the committee to support the legislation.

10:55 AM -- Ms. Jenny Kraska, Colorado Catholic Conference, testified in support of the bill. She closed by saying that the bill will give families the option to select a school that best meets the needs of their children.

11:00 AM -- Ms. Jane Urschel, Colorado Association of School Boards (CASB), testified in opposition of the bill. She said that CASB opposes the use of public funds to fund private or parochial schools. Ms. Urschel closed by noting that nonpublic schools are not subject to uniform standards.

11:04 AM -- Ms. Natalie Mullis, Legislative Council Staff, responded to questions about the State Education Fund. She commented that most of the increase in school funding for next year will have to come out of the General Fund.

11:11 AM


BILL:	HB10-1295
TIME:	11:12:42 AM
MOVED:	Roberts
MOTION:	Refer House Bill 10-1295 to the Committee on Appropriations. The motion failed on a 4-6 vote.
SECONDED:	Gerou
		VOTE
	DelGrosso	Excused
	Frangas	No
	Gerou	Yes
	Kagan	No
	Kefalas	No
	Labuda	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	No
	Judd	No

Not Final YES: 4 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB10-1295
TIME:	11:23:46 AM
MOVED:	Labuda
MOTION:	Motion to postpone House Bill 10-1295 indefinitely. The motion passed on a 6-4 vote.
SECONDED:	Benefield
		VOTE
	DelGrosso	Excused
	Frangas	Yes
	Gerou	No
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	No
	Summers	No
	Swalm	No
	Benefield	Yes
	Judd	Yes

Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:24 AM -- House Bill 10-1329 - Concerning Solid Waste User Fees

Representative Peniston, prime sponsor, explained that House Bill 10-1329 includes a number of provisions related to the Hazardous Substance Response Fund, the Solid Waste Management Fund, and the fees which support both the Solid Waste Management Program and the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), which is commonly referred to as the Superfund program. The repeal date for the solid waste user fee is extended by the bill to July 1, 2017.

The following persons testified:

11:32 AM -- Mr. Gary Baughman, Colorado Department of Public Health and Environment, provided background information on the bill, distributed a handout from the department (Attachment A), and responded to committee questions.

11:48 AM -- Mr. James Cole, Colorado Legislative Services, testified in support of the bill and discussed the history of fees in the bill.

11:53 AM -- Ms. Pat Ratliff, Colorado Counties Inc., testified in support of the legislation.

11:54 AM -- Mr. Jim Spaanstra, David J. Joseph Company, testified in support of the bill and discussed the work of the largest facilities in Colorado that recycle materials.

11:59 AM -- Mr. Dan Miller, Department of Law, testified in support of the bill. He stated the bill is important to the department to fund the cleanup of the state.

12:10 PM -- Attorney General John Suthers, testified in support of the bill.

12:17 PM

The bill was placed on the table for action. Representative Peniston distributed amendments L.001 and L.003 (Attachments B and C).


BILL:	HB10-1329
TIME:	12:17:55 PM
MOVED:	Benefield
MOTION:	Moved amendment L.001 (Attachment B). The motion passed without objection by those members present.
SECONDED:	Labuda
		VOTE
	DelGrosso	Excused
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1329
TIME:	12:19:11 PM
MOVED:	Benefield
MOTION:	Moved amendment L.003 (Attachment C). The motion passed without objection by those members present.
SECONDED:	Summers
		VOTE
	DelGrosso	Excused
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1329
TIME:	12:19:46 PM
MOVED:	Benefield
MOTION:	Refer House Bill 10-1329, as amended, to the Committee of the Whole. The motion passed on a 10-0 vote.
SECONDED:	Frangas
		VOTE
	DelGrosso	Excused
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	Yes
	Judd	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:21 PM

Recess.

01:32 PM -- House Bill 10-1280 - Concerning an Incentive for Nonprofit Jobs

Representative Summers, prime sponsor, explained the provisions of the bill. He noted that for tax years 2011 through 2016, the bill establishes a state income tax credit for contributions to fund new jobs at Colorado nonprofit organizations. The credit is equal to 25 percent of the contribution. The total amount of credits that can be claimed by all taxpayers in one year is capped at $1 million. Any credit amount that exceeds a taxpayer's income tax liability cannot be refunded to the taxpayer, but may be carried forward and used on future tax returns for up to seven years.

The following persons testified:

01:46 PM -- Mr. Renny Fagan, Colorado NonProfit Association, testified in support of the bill and distributed a packet of materials on nonprofit organizations (Attachments D through F). He noted that nonprofit organizations provide essential services in every county in Colorado. He continued by pointing out that the bill provides an incentive to provide jobs that work to provide essential services. Mr. Fagan said that the economy has had a significant impact on nonprofit organizations and for many, they are seeing their demand for services increase while seeing donations drop. He closed by urging the committee to support the legislation.

Attachment E can be viewed at State Archives

Attachment F can be viewed at State Archives

02:06 PM -- Mr. Dave DeForest-Stalls, Big Brothers Big Sisters, testified in support of the bill.

02:12 PM

After committee discussion, the bill was placed on the table for action.


BILL:	HB10-1280
TIME:	02:21:41 PM
MOVED:	Summers
MOTION:	Moved amendment L.001 (Attachment G). The motion passed without objection by those members present.
SECONDED:	Roberts
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

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


BILL:	HB10-1280
TIME:	02:28:30 PM
MOVED:	Summers
MOTION:	Refer House Bill 10-1280, as amended, to the Committee on Appropriations. The motion passed on a 7-4 vote.
SECONDED:	Gerou
		VOTE
	DelGrosso	Yes
	Frangas	No
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	No
	Judd	No

Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:38 PM -- House Bill 10-1220 - Concerning the Sunset Review of the Functions of the Division of Insurance

Representative Priola, prime sponsor, explained the provisions of the bill. He noted that House Bill 10-1220 implements the recommendations of the sunset review by the Department of Regulatory Agencies to continue the Division of Insurance's regulation of property and casualty insurance.

The following persons testified:

02:40 PM -- Mr. Saul Larsen, Department of Regulatory Agencies, responded to questions about the sunset review process and explained the 13 sections of the bill.

02:50 PM -- Ms. Kelly Campbell, Property Causality Insurers Association of America (PCI), testified in support of the bill.


BILL:	HB10-1220
TIME:	02:51:29 PM
MOVED:	Roberts
MOTION:	Moved amendment L.004 (Attachment H). The motion passed without objection by those members present.
SECONDED:	Gerou
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

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


BILL:	HB10-1220
TIME:	02:54:26 PM
MOVED:	DelGrosso
MOTION:	Refer House Bill 10-1220, as amended, to the Committee on Appropriations. The motion passed on a 11-0 vote.
SECONDED:	Roberts
		VOTE
	DelGrosso	Yes
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	Yes
	Judd	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:55 PM -- House Bill 10-1186 - Concerning the Sales of Alcohol Beverages

Representative Liston, prime sponsor, explained that currently, there is a separate license category for establishments that sell beer with an alcohol content of 3.2 percent. House Bill 10-1186 permits the sale of full strength beer in convenience stores. These stores are defined as retail businesses of less than 5,000 square feet that offer quick purchases of food, beverages, or gasoline, and that do not have a pharmacy or employ pharmacists. The bill establishes annual local license fees of $150 for a convenience store located within municipal boundaries, and $250 for a convenience store located in an unincorporated area of a county. Eighty-five percent of the fee will be credited to the state's Old Age Pension Fund. Representative Liston closed by noting that retail liquor stores of less than 5,000 square feet are authorized to sell nonperishable food items.

Representative Judd, Chair, noted that testimony would be limited.

The following persons testified:

03:08 PM -- Mr. Ken Horn, Colorado Beverage Association, testified in opposition toward the bill. He said he has worked in all three tiers of the industry and closed by discussing the nonperishable food provision in the bill.

03:19 PM -- Mr. Eugene Kahng, a liquor store owner in Wheatridge, testified against the bill. He talked about the safety issues tied to underage drinkers.

03:24 PM -- Mr. Eric Wallace, Colorado Brewers Guild, representing Left Hand Brewery, testified against the bill. He talked about the fact that each liquor store can only have one license. He talked about other craft brewers in the state. Mr. Wallace handed out a picture of a liquor store and pointed out the number of craft beers sold by the store (Attachment I). He said chain stores decide from out of state what type of beer they sell. Mr. Wallace talked about the importance of local craft brewers. The committee discussed the distribution of craft beers. Mr. Wallace responded to the discussion and closed by talking about the people that make the decisions of what goes in their stores.

03:38 PM -- Dennis Dinsmore, owner of Wilbur's Liquor Store, testified against the bill and distributed a handout to the committee (Attachment J). He talked about the number of regulations placed on liquor and the fact that the bill would allow 18-year-old employees to sell beer. Mr. Dinsmore talked about a conversation he had with the City of Fort Collins Liquor Enforcement Agency. Representative Benefield asked whether Mr. Dinsmore could sell 3.2 beer, and he said he cannot.

03:42 PM -- Mr. Bill Gallagher, Offen Petroleum, testified in support of the legislation.

03:57 PM -- Mr. Hassan Mahjour, store owner, testified in support of the bill.

04:03 PM -- Mr. Mohammed Al-Najar, 7-Eleven, testified in support of the bill.

04:04 PM -- Mr. David Harper, a franchisee, testified in support of the bill. He talked about the impact Sunday sales have had on his business.

04:08 PM -- Mr. Jim Bamford, Colorado Beverage Organization, testified against the bill and commented on the licensing revenue estimated in the fiscal note.

04:21 PM -- Ms. Susan Duffy Schwall, representing herself, took a neutral position and responded to questions on fiscal perspectives in the bill.

04:25 PM -- Ms. April Crumley, Concerned Citizens for Barnum, testified in opposition toward the bill and distributed a handout to the Committee (Attachment K).

04:29 PM -- Ms. Laura Harris, Department of Revenue, responded to committee questions about license fees in the bill.

The committee engaged in a discussion regarding the licensing fees in the bill. A packet of materials was distributed by the Colorado-Wyoming Petroleum Marketers Association (Attachment L).

Attachment L can be viewed at State Archives

04:47 PM


BILL:	HB10-1186
TIME:	04:48:10 PM
MOVED:	Judd
MOTION:	Moved amendment L.012 (Attachment M). The motion passed on a 7-4 vote.
SECONDED:	Benefield
		VOTE
	DelGrosso	No
	Frangas	Yes
	Gerou	No
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	No
	Summers	Yes
	Swalm	No
	Benefield	Yes
	Judd	Yes

Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1186
TIME:	04:50:51 PM
MOVED:	Gerou
MOTION:	Moved amendment L.011 (Attachment N). The motion passed without objection by those members present.
SECONDED:	Summers
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

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


BILL:	HB10-1186
TIME:	04:56:04 PM
MOVED:	Gerou
MOTION:	Moved amendment L.015 (Attachment O). After a brief committee discussion, the motion was withdrawn.
SECONDED:	Summers
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

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


BILL:	HB10-1186
TIME:	04:57:52 PM
MOVED:	Gerou
MOTION:	Moved amendment L.009 (Attachment P). The motion passed without objection by those members present.
SECONDED:	Summers
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

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


BILL:	HB10-1186
TIME:	05:02:20 PM
MOVED:	Gerou
MOTION:	Refer House Bill 10-1186, as amended, to the Committee of the Whole. The motion failed on a 3-8 vote.
SECONDED:	Swalm
		VOTE
	DelGrosso	No
	Frangas	No
	Gerou	Yes
	Kagan	No
	Kefalas	No
	Labuda	No
	Roberts	No
	Summers	No
	Swalm	Yes
	Benefield	No
	Judd	Yes

Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB10-1186
TIME:	05:17:59 PM
MOVED:	Labuda
MOTION:	Moved to postpone House Bill 10-1186 indefinitely. The motion passed on a 10-1 vote.
SECONDED:	Benefield
		VOTE
	DelGrosso	Yes
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	No
	Benefield	Yes
	Judd	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:18 PM

Adjourn.