House Committee on State, Veterans, & Military Affairs (03/04/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Date:	03/04/2010	ATTENDANCE

Time:	09:54 AM to 01:22 PM	Casso	X
		Court	*
Place:	HCR 0112	DelGrosso	*
		Hullinghorst	X
This Meeting was called to order by		McCann	*
	Representative Todd	Miklosi	X
		Murray	*
This Report was prepared by		Nikkel	X
	Bo Pogue	Waller	*
		Labuda	X
		Todd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB10-1328 HB10-1209 HB10-1272 HB10-1249 HB10-1111		Amended, Referred to the Committee of the Whole Amended, Referred to Finance Referred to Appropriations Amended, Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only

09:54 AM

The committee was called to order. A quorum was present.

09:54 AM -- House Bill 10-1328

Representative Miklosi, prime sponsor, presented House Bill 10-1328, concerning the "New Energy Job Creation Act of 2010." The committee heard testimony on the bill at its March 2nd meeting.


BILL:	HB10-1328
TIME:	09:56:01 AM
MOVED:	Miklosi
MOTION:	Moved prepared amendment L.007 (Attachment A). The motion passed without objection.
SECONDED:	Casso
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray	Excused
	Nikkel
	Waller	Excused
	Labuda
	Todd

Not Final YES: 0 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1328
TIME:	09:56:31 AM
MOVED:	Miklosi
MOTION:	Moved prepared amendment L.008 (Attachment B). The motion passed without objection.
SECONDED:	Casso
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray	Excused
	Nikkel
	Waller
	Labuda
	Todd

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1328
TIME:	09:57:44 AM
MOVED:	Miklosi
MOTION:	Moved prepared amendment L.011 (Attachment C). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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


BILL:	HB10-1328
TIME:	09:58:46 AM
MOVED:	Miklosi
MOTION:	Moved prepared amendment L.012 (Attachment D). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

09:59 AM

Representative Miklosi explained the effect of prepared amendment L.006 (Attachment E). Discussion ensued regarding the fact that the audits required by the amendment start after the sunset review required by an amendment already passed by the committee. Mr. Jason Gelender, Legislative Legal Service, provided clarification regarding the potential conflict, and suggested a compromise amendment to amendment L.006.


BILL:	HB10-1328
TIME:	09:59:20 AM
MOVED:	Miklosi
MOTION:	Moved prepared amendment L.006 (Attachment E), as amended. The motion passed without objection.
SECONDED:	Casso
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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


BILL:	HB10-1328
TIME:	10:03:38 AM
MOVED:	Miklosi
MOTION:	Moved to amend prepared amendment L.006, page 2, line 15, strike "2016," and substitute "2014,". The motion passed without objection.
SECONDED:	Todd
		VOTE
	Casso
	Court
	DelGrosso	Excused
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

10:04 AM

Representative Miklosi provided closing remarks in favor of HB 10-1328. Committee members explained their reasons for their votes on the bill.


BILL:	HB10-1328
TIME:	10:04:35 AM
MOVED:	Miklosi
MOTION:	Moved to refer House Bill 10-1328, as amended, to the Committee of the Whole with favorable recommendation. The motion passed on a 7-4 roll call vote.
SECONDED:	McCann
		VOTE
	Casso	Yes
	Court	Yes
	DelGrosso	No
	Hullinghorst	Yes
	McCann	Yes
	Miklosi	Yes
	Murray	No
	Nikkel	No
	Waller	No
	Labuda	Yes
	Todd	Yes

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

10:09 AM -- House Bill 10-1209

Representative Balmer, prime sponsor, presented House Bill 10-1209, concerning authorization to place voluntarily an identifier of a branch of the United States Armed Forces on certain identification documents issued by the Department of Revenue. Representative Balmer explained the effect of the bill. Comments were directed toward prepared amendment L.001 (Attachment F), a strike-below amendment. Representative Balmer explained the fiscal impact of the bill. Representative Balmer discussed the potential for other identifiers to be placed on driver's licenses and state identification cards through future legislation, and the fees associated with having an armed forces identifier placed on identification. Discussion ensued regarding the potential for future symbols to be placed on state identification, and where the military symbol will be placed on the identification.

10:19 AM

Discussion continued regarding the physical placement of the military identifier on state identification. Representative Balmer responded to questions regarding legal issues associated with placing armed forces branch seals on state identification cards, and the forms issued by the U.S. Department of Defense when a service member is dishonorably discharged. Discussion ensued regarding the fiscal impact of the bill, and the potential for armed forces personnel and veterans to update their state identification before it expires. Representative Balmer responded to questions regarding the intent of the legislation.

10:29 AM

Discussion continued regarding the intent of House Bill 10-1209, and various identifiers that indicate a service member is affiliated with the military. Representative Balmer provided background on the costs associated with renewing state identification when it expires or requires replacement, and the costs associated with renewing state identification for military-affiliated persons under the bill. Mr. David Porter, Legislative Council Staff, provided clarification regarding these costs. Discussion ensued regarding the potential to amend state law to allow service members and veterans to renew their licenses before expiration for a full ten years. Mr. Porter provided clarification regarding this point. Mr. Porter responded to questions regarding the process by which he arrived at the figures in the bill's fiscal note.

10:37 AM

The following persons testified regarding House Bill 10-1209:

10:37 AM -- Mr. Tony Milo, representing the Colorado Contractors Association, testified in favor of the bill. Mr. Milo discussed the impact of the bill on funding for road infrastructure. Discussion ensued regarding the opinion of military service members, veterans, and public safety officials on the bill.

10:40 AM -- Mr. Nate Gorman, representing the United Veterans Committee of Colorado, made himself available for questions on the bill.

10:41 AM

Representative Balmer responded to questions regarding how the layout of state identification is determined, and the process by which the organ donor identifier was placed on state identification. Discussion ensued regarding safeguards against individuals not affiliated with the military posing as military-affiliated individuals.


BILL:	HB10-1209
TIME:	10:44:16 AM
MOVED:	Court
MOTION:	Moved prepared amendment L.001 (Attachment F), as amended. The motion passed without objection.
SECONDED:	Nikkel
		VOTE
	Casso
	Court
	DelGrosso
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

10:44 AM

Discussion ensued regarding fee payment for renewal of a military-designated driver's license or state identification card.


BILL:	HB10-1209
TIME:	10:44:31 AM
MOVED:	Court
MOTION:	Moved prepared amendment L.003 (Attachment G). The motion passed without objection.
SECONDED:	Nikkel
		VOTE
	Casso
	Court
	DelGrosso
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

10:49 AM

Committee members expressed support for or opposition to House Bill 10-1209.


BILL:	HB10-1209
TIME:	10:49:20 AM
MOVED:	Todd
MOTION:	Moved to refer House Bill 10-1209, as amended, to the Committee on Finance with favorable consideration. The motion passed on a 10-1 roll call vote.
SECONDED:	Murray
		VOTE
	Casso	Yes
	Court	Yes
	DelGrosso	Yes
	Hullinghorst	Yes
	McCann	Yes
	Miklosi	Yes
	Murray	Yes
	Nikkel	Yes
	Waller	Yes
	Labuda	No
	Todd	Yes

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

10:50 AM -- House Bill 10-1272

Representative McCann, prime sponsor, presented House Bill 10-1272, concerning the establishment of contribution limits under the "Fair Campaign Practices Act" for candidates for certain elected director positions. Representative McCann explained her reasons for sponsoring the legislation, and the effect of the bill. Representative McCann discussed the campaign contribution limits in the bill, and explained the effect of forthcoming amendment L.002 (Attachment H). Discussion ensued regarding the amount of money spent on political campaigns, and the contribution limits in the bill. Discussion followed regarding the bill's relation to a recent U.S. Supreme Court decision on campaign finance, and the impact of the bill on campaign spending habits.

11:00 AM

The following persons testified regarding House Bill 10-1272:

11:00 AM -- Mr. Frank Sullivan, representing himself, testified in favor of the bill. Mr. Sullivan related his experiences with financing of political campaigns, and the importance of campaign finance disclosure. Mr. Sullivan also discussed increasing costs associated with political campaigns, and the lack of campaign finance restrictions for school board and Regional Transportation District races. Mr. Sullivan then discussed state constitutional campaign contribution limits on certain statewide races. Mr. Sullivan responded to questions regarding the use of so-called 527 organizations to circumvent campaign spending limits.

11:09 AM -- Ms. Jeannie Kaplan, representing herself as a Denver school board member, testified in favor of House Bill 10-1272. Ms. Kaplan discussed increasing spending associated with school board campaigns, the sources of the spending, and the divisiveness associated with this spending. Ms. Kaplan discussed the importance of placing limits on campaign contributions.

11:14 AM -- Ms. Elena Nunez, representing Common Cause, testified regarding the bill from a neutral position. Ms. Nunez expressed concerns with the levels of the contribution limits in the bill, and discussed the benefits of setting low contribution limits. Ms. Nunez then discussed the impact of contribution limits on the amount of money channeled to 527 organizations. Discussion ensued regarding the impact of low campaign contribution limits on the number of small contributions received by campaigns.

11:19 AM


BILL:	HB10-1272
TIME:	11:19:50 AM
MOVED:	McCann
MOTION:	Moved prepared amendment L.002 (Attachment H). The motion failed on a 5-5-1 roll call vote.
SECONDED:	Todd
		VOTE
	Casso	Yes
	Court	No
	DelGrosso	No
	Hullinghorst	Absent
	McCann	Yes
	Miklosi	Yes
	Murray	Yes
	Nikkel	No
	Waller	No
	Labuda	Yes
	Todd	No

Not Final YES: 5 NO: 5 EXC: 0 ABS: 1 FINAL ACTION: TIE

11:21 AM

Discussion ensued regarding the burdens placed on those running for school boards by the reporting requirements in the bill.


BILL:	HB10-1272
TIME:	11:21:46 AM
MOVED:	McCann
MOTION:	Moved to refer House Bill 10-1272 to the Committee on Appropriations with favorable recommendation. The motion passed on a 7-4 roll call vote.
SECONDED:	Todd
		VOTE
	Casso	Yes
	Court	Yes
	DelGrosso	No
	Hullinghorst	Yes
	McCann	Yes
	Miklosi	Yes
	Murray	No
	Nikkel	No
	Waller	No
	Labuda	Yes
	Todd	Yes

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

11:24 AM

The committee recessed.

11:29 AM -- House Bill 10-1249

The committee returned to order. Representatives Labuda and Primavera, prime sponsors, presented House Bill 10-1249, concerning expedited residential foreclosure sales. Representative Primavera discussed the need for the legislation, and explained its effect. Committee members received a time line for the bill's provisions.

11:34 AM

The following persons testified regarding House Bill 10-1249:

11:34 AM -- Ms. Carol Snyder, representing the Colorado Public Trustees' Association, testified in favor of the bill. Ms. Snyder discussed the conditions under which foreclosure sales would be expedited under the legislation, and explained the time line for such foreclosure sales. Ms. Snyder also explained the effect of forthcoming amendments L.005 (Attachment I) and L.006 (Attachment J). Ms. Snyder explained certain acronyms associated with the foreclosure process.

11:44 AM -- Mr. Mike Prosser, representing himself, testified in favor of House Bill 10-1249. Mr. Prosser discussed the importance of expediting the foreclosure process in certain situations.

11:46 AM -- Mr. Ron Leonard, representing the Jefferson County Sheriff's Office, testified in favor of the bill. Mr. Leonard discussed the impact of foreclosed vacant houses on communities, and provided anecdotes of problems associated with such properties. Mr. Leonard also commented on the increasing number of foreclosures in recent years.

11:54 AM -- Mr. Chad Otto, representing the Grant Ranch Homeowner's Association, testified in favor of House Bill 10-1249. Mr. Otto discussed problems associated with foreclosed vacant homes and the impact of such properties on area property values.

11:57 AM -- Ms. Bea Scott, representing herself, testified in favor of the bill. Ms. Scott discussed the responsibilities of communities and homeowner's associations with respect to vacant foreclosed houses. Ms. Scott also commented on the dangers of vacant homes. Discussion ensued regarding notifying authorities of abandoned properties.

12:01 PM -- Mr. Ed Kahn, representing the Colorado Center on Law and Policy, testified in favor of House Bill 10-1249. Mr. Kahn discussed the benefits of expediting the foreclosure process, and explained the benefit of forthcoming amendments.

12:04 PM

Representative Labuda provided an overview of the amendments offered.


BILL:	HB10-1249
TIME:	12:04:30 PM
MOVED:	Labuda
MOTION:	Moved prepared amendment L.005 (Attachment I). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Casso
	Court
	DelGrosso
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

12:05 PM

Representative Labuda explained the effect of prepared amendment L.006.


BILL:	HB10-1249
TIME:	12:05:35 PM
MOVED:	Labuda
MOTION:	Moved prepared amendment L.006 (Attachment J). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Casso
	Court
	DelGrosso
	Hullinghorst
	McCann
	Miklosi
	Murray
	Nikkel
	Waller
	Labuda
	Todd

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

12:06 PM

Representative Labuda provided closing remarks in favor of House Bill 10-1249.


BILL:	HB10-1249
TIME:	12:06:53 PM
MOVED:	Labuda
MOTION:	Moved to refer House Bill 10-1249, as amended, to the Committee of the Whole with favorable recommendation. The motion passed on an 11-0 roll call vote.
SECONDED:	Waller
		VOTE
	Casso	Yes
	Court	Yes
	DelGrosso	Yes
	Hullinghorst	Yes
	McCann	Yes
	Miklosi	Yes
	Murray	Yes
	Nikkel	Yes
	Waller	Yes
	Labuda	Yes
	Todd	Yes

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

12:07 PM -- House Bill 10-1111

Representative Miklosi, prime sponsor, presented House Bill 10-1111, concerning the creation of low-profit limited liability companies (L3Cs). Representative Miklosi provided background on L3Cs and his reasons for running the bill, and explained the bill's effect.

12:12 PM

The following persons testified regarding House Bill 10-1111:

12:13 PM -- Mr. Rick Zwetcsh, representing himself, testified in favor of the bill. Mr. Zwetcsh discussed the work of an L3C he helped to form, and explained the benefits of forming L3Cs. Mr. Zwetsch also explained the purpose of L3Cs, and provided examples of the work performed by such business entities. Discussion ensued regarding the ability of for-profit companies to engage in social missions without House Bill 10-1111, and the benefits of using the L3C business entity to support such missions. Discussion followed regarding the federal Internal Revenue Service's (IRS) treatment of L3Cs, and the need to recognize such business entities in Colorado. Mr. Zwetsch discussed the penetration of L3Cs nationwide.

12:24 PM

Mr. Zwetsch responded to questions regarding the need for charitable organizations to attract capital, and the ability of L3Cs to participate in the political arena. Discussion ensued regarding participation of nonprofits in politics, and the potential for the L3C entity to be used for restricted purposes. Mr. Zwetsch provided clarification on the reasons for creating the L3C business entity, and the ability of an L3C to accept grants and donations. Mr. Zwetsch responded to questions regarding the ability to enforce an L3C's focus on social mission over profit making, and the potential for shareholders in L3Cs to influence the L3C to focus on profit making.

12:35 PM

Mr. Zwetsch responded to questions regarding the operation of a particular L3C formed under Vermont's laws. Mr. Zwetsch explained why people would make an investment in an L3C, and responded to questions regarding the opinion that the missions of L3Cs can be accomplished under current law. Discussion ensued regarding this point.

12:44 PM -- Mr. Bernie Buescher, Secretary of State, testified in opposition to House Bill 10-1111. Secretary Buescher provided background on how business entities are created in Colorado. Secretary Buescher expressed reservations with the branding concept for L3Cs, and explained the concept of purpose-related investments (PRIs) made by certain entities. Secretary Buescher suggested that PRIs will not be any easier to make as an L3C than under current law, and the treatment of L3C transactions as charitable transactions. Secretary Buescher urged further discussions about creating the L3C entity.

12:53 PM

Mr. Zwetsch responded to questions regarding the potential for holding the determination on creating the L3C designation until the IRS takes further action on the concept. Mr. Zwetsch addressed earlier testimony pertaining to L3Cs making PRIs. Mr. Zwetsch responded to questions regarding the tax ramifications of creating an L3C. Discussion ensued regarding the parameters around the types of companies that may create L3Cs under the bill.

01:02 PM -- Ms. Rebecca Saltman, representing herself, testified in favor of the bill. Ms. Saltman discussed the benefits to her work of forming an L3C, and the ability to solve issues through the L3C concept. Ms. Saltman discussed the work of her production company. Ms. Saltman responded to questions regarding the benefits to her work that would accrue as a result of operating an L3C.

01:08 PM -- Ms. Mary Joe Westin, representing herself and her law firm, testified in favor of House Bill 10-1111. Ms. Westin discussed the need for certain entities to work in both the for-profit and nonprofit environments.

01:10 PM -- Mr. Greg Romberg, representing the Colorado Press Association, testified in favor of the bill. Mr. Romberg discussed the potential for newspapers to be organized as L3Cs, and certain newspapers that currently operate as nonprofit organizations in Colorado. Mr. Romberg responded to questions regarding the benefits of operating a newspaper as an L3C.

01:14 PM -- Mr. Lon Howell, representing himself, testified in favor of House Bill 10-1111. Mr. Howell explained how he became interested in the L3C concept as a home builder, and discussed the possibility of creating L3Cs in the area of energy-efficient construction. Mr. Howell explained how the L3C entity will keep Colorado at the forefront of green building technology. Mr. Howell responded to questions regarding the potential for the green building sector to seek federal American Recovery and Reinvestment Act dollars under the L3C designation.

01:22 PM

The committee adjourned.