Date: 01/29/2010

Final
BILL SUMMARY for HB10-1199

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Motion to refer House Bill 10-1199, as amended, to
Moved amendment L.001 (Attachment K). The motion
Moved amendment L.002 (Attachment J). The motion
Moved amendment L.006 (Attachment M). The motion
Moved amendment L.008 (Attachment I). The motion
Moved amendment L.009 (Attachment L). The motion 		PASS
FAIL
FAIL
Pass Without Objection
Pass Without Objection
PASS
TIE



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.