Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:01/29/2010
ATTENDANCE
Time:08:03 AM to 01:09 PM
DelGrosso
X
Frangas
X
Place:LSB A
Gerou
*
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:
HB10-1195
HB10-1196
HB10-1197
HB10-1198
HB10-1199		Amended, Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole
Postponed Indefinitely
Amended, Referred to the Committee of the Whole


08:03 AM -- House Bill 10-1195 - Concerning the Sales and Use Tax Exemption for Agricultural Compounds

Representative Ferrandino, prime sponsor, explained the provisions of the bill. He explained that the bill temporarily suspends the sales and use tax exemption for the sale or storage, use, or consumption of agricultural compounds used in caring for livestock, semen for agricultural and ranching purposes, and pesticides for use in the production of agricultural and livestock products. The exemption is suspended through the end of FY 2012-13.

Representative Ferrandino noted that agricultural compounds include insecticides, fungicides, growth-regulating chemicals, enhancing compounds, hormones, and vaccines. They also include drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock, and animal pharmaceuticals that have been approved by the Food and Drug Administration. He closed by noting that the bill does not apply to sales and use tax in any town, city, county, or special district unless the local jurisdiction expressly subjects such products to its sales tax.

The committee engaged in a discussion on the profitability of the agricultural industry in Colorado.

The following persons testified:

08:29 AM -- Mr. Troy Bredenkamp, Colorado Farm Bureau, testified in opposition toward the bill. He noted that only five states tax some of the items that are exempted from sales and use taxes in Colorado. This bill will put Colorado agricultural producers at a competitive disadvantage when compared to producers in other states. Mr. Bredenkamp noted that the bill would affect a farm operation's bottom line by imposing an extra $11,000 in taxes per year for large farm operations. He closed by encouraging the committee to oppose the bill.




The committee discussed the option of imposing a sales tax on food up to 2.9 percent in lieu of the tax bill package. Mr. Bredenkamp stated that the bureau did not oppose taxing food. The committee continued to discuss the exemption in the bill.

09:16 AM -- Mr. Steve Holdren, Colorado Livestock Association, testified in opposition toward the bill.

09:23 AM -- Mr. Matt Arnold, representing himself and Clear the Bench Colorado, testified in opposition toward the bill. He noted that the bill conflicts with Article 10, Section 20 of the State Constitution.
BILL:HB10-1195
TIME: 09:26:02 AM
MOVED:Benefield
MOTION:Moved amendment L.008 (Attachment A). The motion passed without objection by those members present.

10HseFin0129AttachA.pdf
SECONDED:Labuda
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:HB10-1195
TIME: 09:26:56 AM
MOVED:Benefield
MOTION:Moved amendment L. 007 (Attachment B). The motion passed without objection by those members present.

10HseFin0129AttachB.pdf
SECONDED:Labuda
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:HB10-1195
TIME: 09:28:13 AM
MOVED:DelGrosso
MOTION:Moved amendment L.002 (Attachment C). The motion failed on a 6-5 vote.

10HseFin0129AttachC.pdf
SECONDED:Swalm
VOTE
DelGrosso
Yes
Frangas
No
Gerou
Yes
Kagan
No
Kefalas
No
Labuda
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
No
Judd
No
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL



























BILL:HB10-1195
TIME: 09:29:57 AM
MOVED:Benefield
MOTION:Refer House Bill 10-1195, as amended, to the Committee of the Whole. The motion passed on a 6-5 vote.
SECONDED:Labuda
VOTE
DelGrosso
No
Frangas
Yes
Gerou
No
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
No
Summers
No
Swalm
No
Benefield
Yes
Judd
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


09:36 AM -- House Bill 10-1196 - Concerning Category 7 Motor Vehicles

Representative Ferrandino, prime sponsor, briefly explained the provisions of the bill and the bill was placed on the table for action.

























BILL:HB10-1196
TIME: 09:38:30 AM
MOVED:Benefield
MOTION:Moved amendment L.006 (Attachment D). The motion passed without objection by those members present.

10HseFin0129AttachD.pdf
SECONDED:Labuda
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:HB10-1196
TIME: 09:39:13 AM
MOVED:Benefield
MOTION:Moved amendment L.005 (Attachment E). The motion passed without objection by those members present.

10HseFin0129AttachE.pdf
SECONDED:Labuda
VOTE
DelGrosso
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:HB10-1196
TIME: 09:39:35 AM
MOVED:Benefield
MOTION:Moved to reconsider amendment L.006. The motion passed on a 11-0 vote.
SECONDED:Labuda
VOTE
DelGrosso
Yes
Frangas
Yes
Gerou
Yes
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
Yes
Judd
Yes
Not Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

BILL:HB10-1196
TIME: 09:47:48 AM
MOVED:Judd
MOTION:Moved to adopt L.006. The motion failed on a 11-0 vote.
SECONDED:Benefield
VOTE
DelGrosso
No
Frangas
No
Gerou
No
Kagan
No
Kefalas
No
Labuda
No
Roberts
No
Summers
No
Swalm
No
Benefield
No
Judd
No
Not Final YES: 0 NO: 11 EXC: 0 ABS: 0 FINAL ACTION: FAIL





BILL:HB10-1196
TIME: 09:53:31 AM
MOVED:Benefield
MOTION:Moved to refer House Bill 10-1196, as amended, to the Committee of the Whole. The motion passed on a 6-5 vote.
SECONDED:Labuda
VOTE
DelGrosso
No
Frangas
Yes
Gerou
No
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
No
Summers
No
Swalm
No
Benefield
Yes
Judd
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


09:55 AM -- House Bill 10-1197 - Concerning the Conservation Easement Tax Credit

Representative Ferrandino, prime sponsor, distributed amendment L.009 (SBEC) (Attachment F), as the revised bill from the introduced version. He indicated that the amendment would cap the amount of state income tax credits at $26 million for tax years 2011, 2012, and 2013. The committee engaged in a brief discussion and the bill was placed on the table for action.

10HseFin0129AttachF.pdf



















BILL:HB10-1197
TIME: 10:04:46 AM
MOVED:Benefield
MOTION:Moved amendment L.009. The motion passed without objection by those members present.
SECONDED:Labuda
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:HB10-1197
TIME: 10:05:35 AM
MOVED:Benefield
MOTION:Moved amendment L.008 (Attachment G), as amended, to conform to L.009 (SBEC). ( The Chair ruled that the amendment was out of order (no vote)).

10HseFin0129AttachG.pdf
SECONDED:Labuda
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:HB10-1197
TIME: 10:20:50 AM
MOVED:Benefield
MOTION:Moved to refer House Bill 10-1197, as amended, to the Committee of the Whole. The motion passed on a 6-5 vote.
SECONDED:Labuda
VOTE
DelGrosso
No
Frangas
Yes
Gerou
No
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
No
Summers
No
Swalm
No
Benefield
Yes
Judd
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:29 AM -- House Bill 10-1198 - Concerning the Alternative Minimum Tax

Representative Ferrandino, prime sponsor, offered amendment L.007 (Attachment H), and explained that it would broaden the title to conform to the provisions of the bill. He noted that as drafted, the bill suspends the state alternative minimum tax (AMT) and the state AMT credit. As drafted, the title of the bill only addresses the AMT credit.

10HseFin0129AttachH.pdf

The committee engaged in a brief discussion regarding amending the title. The following actions were taken.
















BILL:HB10-1198
TIME: 10:40:05 AM
MOVED:Frangas
MOTION:Moved amendment L.007 (Attachment H). The motion failed on a 10-1 vote.
SECONDED:Kagan
VOTE
DelGrosso
No
Frangas
Yes
Gerou
No
Kagan
No
Kefalas
No
Labuda
No
Roberts
No
Summers
No
Swalm
No
Benefield
No
Judd
No
Not Final YES: 1 NO: 10 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:HB10-1198
TIME: 10:43:20 AM
MOVED:Summers
MOTION:Moved to postpone indefinitely, House Bill 10-1198. The motion passed on a 10-1 vote.
SECONDED:Gerou
VOTE
DelGrosso
Yes
Frangas
No
Gerou
Yes
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
Yes
Judd
Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS








10:45 AM -- House Bill 10-1199 - Concerning Net Operating Losses

Representative Ferrandino, prime sponsor, explained that under current law, a corporation may reduce its Colorado taxable income by carrying forward its net operating loss (NOL). There is no limit on the amount of NOL that may be carried forward to reduce a corporation's taxable income. He continued saying that for tax years 2011, 2012, and 2013, this bill limits the amount of NOL that may be carried forward to $250,000. A NOL may be carried forward one additional year for each year that a corporation is prohibited from carrying forward a portion of its NOL resulting from the $250,000 cap.

The following person testified:

11:20 AM -- Ms. Ali Mickelson, Colorado Fiscal Policy Institute, testified in favor of the bill and distributed a handout on her presentation (Attachment N). She noted that there are many states that have capped their NOL deduction. She urged the committee to support the legislation.

10HseFin0129AttachN.pdf

11:32 AM -- Mr. John McCormick, Quest, testified in opposition toward the bill. He noted that Quest will pay a disproportionately high dollar amount of taxes as a result of the bill. Mr. McCormick noted that the bill would result in a $20 million tax increase that will cost Qwest up to 120 jobs. Mr. McCormick closed by suggesting a modification of the suspension that would allow corporations to claim up to 50 percent of NOLs in a given year in place of the $250,000 cap in the bill.

12:19 PM -- Mr. Matt Arnold, Clear the Bench Colorado, testified in opposition toward the bill and noted that the bill is in violation of Article 10, Section 20, of the State Constitution. He urged the committee to oppose the bill.


























BILL:HB10-1199
TIME: 12:40:27 PM
MOVED:Benefield
MOTION:Moved amendment L.008 (Attachment I). The motion passed without objection by those members present.

10HseFin0129AttachI.pdf
SECONDED:Labuda
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:HB10-1199
TIME: 12:41:56 PM
MOVED:Summers
MOTION:Moved amendment L.002 (Attachment J). The motion failed on a 6-5 vote.

10HseFin0129AttachJ.pdf
SECONDED:Gerou
VOTE
DelGrosso
Yes
Frangas
No
Gerou
Yes
Kagan
No
Kefalas
No
Labuda
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
No
Judd
No
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


























BILL:HB10-1199
TIME: 12:49:03 PM
MOVED:Gerou
MOTION:Moved amendment L.001 (Attachment K). The motion failed on a 6-5 vote.

10HseFin0129AttachK.pdf
SECONDED:Summers
VOTE
DelGrosso
Yes
Frangas
No
Gerou
Yes
Kagan
No
Kefalas
No
Labuda
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
No
Judd
No
Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL



























BILL:HB10-1199
TIME: 12:51:41 PM
MOVED:Gerou
MOTION:Moved amendment L.009 (Attachment L). The motion passed on a 10-1 vote.

10HseFin0129AttachL.pdf
SECONDED:Summers
VOTE
DelGrosso
Yes
Frangas
Yes
Gerou
Yes
Kagan
Yes
Kefalas
Yes
Labuda
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Benefield
Yes
Judd
Yes
Not Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS



























BILL:HB10-1199
TIME: 12:59:50 PM
MOVED:Gerou
MOTION:Moved amendment L.006 (Attachment M). The motion passed without objection by those members present.

10HseFin0129AttachM.pdf
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:HB10-1199
TIME: 01:01:44 PM
MOVED:Benefield
MOTION:Motion to refer House Bill 10-1199, as amended, to the Committee of the Whole. The motion passed on a 6-5 vote.
SECONDED:Labuda
VOTE
DelGrosso
No
Frangas
Yes
Gerou
No
Kagan
Yes
Kefalas
Yes
Labuda
Yes
Roberts
No
Summers
No
Swalm
No
Benefield
Yes
Judd
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


01:09 PM

Adjourn.