House Committee on Finance (02/08/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/08/2012	ATTENDANCE

Time:	02:04 PM to 06:47 PM	Acree	X
		Beezley	X
Place:	LSB A	Conti	X
		Hullinghorst	X
This Meeting was called to order by		Joshi	X
	Representative DelGrosso	Kagan	X
		Kefalas	X
This Report was prepared by		Labuda	X
	Ron Kirk	McCann	X
		Pabon	X
		Swalm	X
		Swerdfeger	X
		DelGrosso	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB12-1045 HB12-1041 HB12-1042 HB12-1069 HB12-1052 HB12-1039		Referred to Appropriations Referred to Appropriations Referred to Appropriations Amended, Referred to Appropriations Referred to Appropriations Postponed Indefinitely

02:07 PM -- House Bill 12-1045 - Sales and Use Tax Exemption for Certain Woods Damaged by Beetles

Representative Bradford, prime sponsor, explained that House Bill 12-1045 creates a sales and use tax exemption for timber products made from trees in Colorado killed by spruce beetles. She continued by noting that wood wholesalers must certify on a Department of Revenue form that a product is lawfully harvested in Colorado and from a salvaged tree killed or infested by spruce beetle. Representative Bradford closed by saying that the sales tax exemption for these timber products is effective July 1, 2012, and would expire on July 1, 2020.

The following persons testified:

02:11 PM -- Mr. Larson Silbaugh, Legislative Council Staff, responded to questions about the fiscal note.

02:20 PM -- Mr. Joseph Duda, representing the Colorado State Forest Service, testified in support of the legislation and discussed the number of acres of land in Colorado that are affected by mountain pine and spruce beetles.
02:29 PM -- Mr. Bruce Ward, representing himself, testified in support of the legislation.

02:34 PM -- Mr. Richard Orf, representing the Associated Governments of Northwest Colorado, testified in support of the bill.


BILL:	HB12-1045
TIME:	02:39:03 PM
MOVED:	Kagan
MOTION:	Refer House Bill 12-1045 to the Committee on Appropriations. The motion passed on a vote of 12-0.
SECONDED:	Swerdfeger
		VOTE
	Acree	Excused
	Beezley	Yes
	Conti	Yes
	Hullinghorst	Yes
	Joshi	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:42 PM -- House Bill 12-1041 - Creation of an Electronic Death Registration System

Representative Labuda, prime sponsor, explained that House Bill 12-1041 requires the Department of Public Health and Environment (DPHE) to create an electronic death registration system to allow persons responsible for reporting death information to the Office of the State Registrar of Vital Statistics to do so electronically. She noted that the proposed system is an alternative to the current paper-based system that relies on the hand delivery of death certificates to required locations, and that requires families to travel to the county in which a death occurs for purposes of obtaining copies of death certificates.

Representative Kefalas distributed Amendment L.002 (Attachment A) and a staff memorandum on the fiscal assessment of the amendment (Attachment B) to the committee. A brief discussion on the fee structure in the bill ensued.

The following persons testified:

02:48 PM -- Mr. Bob O'Doherty, representing Colorado Public Health and Environment, responded to committee questions and testified in support of the bill.

02:51 PM -- Mr. Chuck Bowman, representing the Colorado Funeral Directors Association, testified in support of the legislation.

03:07 PM -- Ms. Lora Thomas, representing the Colorado Coroners Association, testified in support of the legislation.


BILL:	HB12-1041
TIME:	03:08:34 PM
MOVED:	Kefalas
MOTION:	Moved Amendment L.002 (Attachment A). After a brief committee discussion, the motion was withdrawn.
SECONDED:	Kagan
		VOTE
	Acree
	Beezley
	Conti
	Hullinghorst
	Joshi
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:


BILL:	HB12-1041
TIME:	03:14:16 PM
MOVED:	McCann
MOTION:	Refer House Bill 12-1041 to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Pabon
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Hullinghorst	Yes
	Joshi	Yes
	Kagan	Yes
	Kefalas	No
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:17 PM -- House Bill 12-1042 - Income Tax Credit for Agricultural Land

Representative Pace, prime sponsor, explained that for income tax years commencing on or after January 1, 2013, House Bill 12-1042 establishes an income tax credit for a person who inherits agricultural land located in the state equal to the portion of Colorado estate taxes attributable to the transfer of the land.

The committee discussed the federal estate tax and the $5.0 million exemption. A discussion on the fiscal note ensued and staff responded to questions regarding the fiscal impact of the bill.

The following persons testified:

03:41 PM -- Mr. Terry Scanlon, representing the Colorado Fiscal Policy Institute, testified in opposition of the bill. Mr. Scanlon discussed the refundable income tax credit in the legislation.

03:57 PM -- Mr. Troy Bredenkamp, representing the Colorado Farm Bureau, testified in support of the legislation.

04:02 PM -- Ms. Jan Scheimer, representing herself, testified in support of the legislation.


BILL:	HB12-1042
TIME:	04:09:51 PM
MOVED:	Beezley
MOTION:	Refer House Bill 12-1042 to the Committee on Appropriations. The motion passed on a vote of 10-3.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Hullinghorst	No
	Joshi	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	No
	McCann	No
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:23 PM -- House Bill 12-1069 - Concerning Tax Expenditures

Representative Pabon and Representative Miklosi, prime sponsors, discussed the provisions of the bill. Representative Miklosi distributed a letter from the Washington Economics Group (Attachment C) and a letter from Target (Attachment D) that discussed House Bill 12-1069 to the committee.

Representative Pabon explained that this bill creates a "sales tax holiday" on the first weekend in August each year starting in 2012 and ending in 2016. He continued by saying that under the bill, school supplies not exceeding $50, clothing not exceeding $100, and computers not exceeding $1,500 would be exempt from the state sales tax during this three day holiday. Representative Miklosi noted that clothing includes sport and recreational equipment worn in conjunction with a sport or recreational activity, but not clothing accessories like jewelry, handbags, wallets, and hats. He closed by saying that the exemption also applies to use tax for online and catalog orders made during the sales tax holiday.

The committee discussed the fiscal note and asked staff to respond to the impact identified in the note.

The following persons testified:

04:37 PM -- Mr. Larson Silbaugh, Legislative Council Staff, responded to questions about the fiscal note.

04:44 PM -- Mr. Chris Howes, representing the Colorado Retail Council, testified in support of the legislation. Mr. Howes closed by discussing the financial impact of similar legislation in other states.

04:55 PM -- Mr. Andy Mendelsberg, representing himself, testified in support of the bill.

04:59 PM -- Ms. Shannon Clay, representing herself, testified in support of the legislation.

05:03 PM -- Ms. Marilyn Sudbeck, representing herself and small business owners, testified in opposition of the bill. Ms. Sudbeck discussed the concerns that the bill would trigger that are tied to filing business tax returns.

05:14 PM -- Mr. Terry Scanlon, representing the Colorado Fiscal Policy Institute, testified against the bill. He closed by saying that there are other ways to help low-income families than the bill being proposed.

05:20 PM

Representative Pabon and Representative Miklosi made closing comments on the bill and discussed prepared Amendments L.001 (Attachment E), L.004 (Attachment F), and L.006 (Attachment G). Staff distributed a staff memorandum of the fiscal assessment of Amendment L.004 (Attachment H).


BILL:	HB12-1069
TIME:	05:22:46 PM
MOVED:	Pabon
MOTION:	Moved Amendment L.004 (Attachment F). The motion passed without objection.
SECONDED:	Kagan
		VOTE
	Acree
	Beezley
	Conti
	Hullinghorst
	Joshi
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1069
TIME:	05:23:52 PM
MOVED:	Pabon
MOTION:	Moved Amendment L.006 (Attachment G). The motion passed without objection.
SECONDED:	Kagan
		VOTE
	Acree
	Beezley
	Conti
	Hullinghorst
	Joshi
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1069
TIME:	05:34:54 PM
MOVED:	Pabon
MOTION:	Moved Amendment L.001 (Attachment E). The motion failed on a vote of 5-8.
SECONDED:	McCann
		VOTE
	Acree	No
	Beezley	No
	Conti	No
	Hullinghorst	Yes
	Joshi	No
	Kagan	Yes
	Kefalas	No
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	No
	DelGrosso	No

YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1069
TIME:	05:41:59 PM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1069, as amended, to the Committee on Appropriations. The motion passed on a vote of 8-5.
SECONDED:	Labuda
		VOTE
	Acree	No
	Beezley	No
	Conti	Yes
	Hullinghorst	Yes
	Joshi	No
	Kagan	Yes
	Kefalas	No
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	No
	DelGrosso	Yes

Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

06:03 PM -- House Bill 12-1052 - Concerning Health Care Workforce Data

Representative Summers, prime sponsor, distributed a letter from the Colorado Health Foundation (Attachment I) in support of House Bill 12-1052 and discussed the provisions of the bill. He explained that House Bill 12-1052 requires the Department of Regulatory Agencies (DORA) to collect health care workforce data from certain health care professionals when receiving their initial or renewal license applications beginning on or before July 1, 2013. He continued by noting that under the bill, professionals affected include: dentists, dental hygienists, physicians, physician assistants, nurses, psychologists, social workers, marriage and family counselors, licensed professional counselors, and addiction counselors. Representative Summers closed by saying that DORA is authorized to accept and expend gifts, grants, or donations to implement the data collection system.

The following persons testified:

06:06 PM -- Mr. Stephen Holloway, representing the Colorado Department of Health and Public Environment, responded to committee questions and testified in support of the legislation.

06:12 PM -- Ms. Alicia Haywood, representing the Colorado Rural Health Center, testified in support of the bill. Ms. Haywood distributed a letter of support for the legislation to the committee (Attachment J).


BILL:	HB12-1052
TIME:	06:16:33 PM
MOVED:	Acree
MOTION:	Refer House Bill 12-1052 to the Committee on Appropriations. The motion passed on a vote of 12-0.
SECONDED:	Kagan
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Hullinghorst	Yes
	Joshi	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Excused
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

06:19 PM -- House Bill 12-1039 - Concerning Pay-As-You-Go Requirements

Representative Hullinghorst, prime sponsor, explained that House Bill 12-1039 requires that, prior to the passage of the Long Bill, no bill that requires a tax expenditure, or that results in either a decrease in revenue to the state or an increase in General Fund spending, may be passed favorably from the House or Senate Appropriations Committees to second reading unless the bill specifically identifies an equivalent budgetary offset. She continued saying that historically, bills that reduce state General Fund revenue or that increase General Fund spending have been routed through appropriations committees prior to being heard on second reading.

The committee discussed the pay-as-you-go requirements under the legislation. Representative Hullinghorst closed by saying that a tax expenditure is defined as a deduction from taxable income, a tax credit, a tax exemption, the lowering of a tax rate, the elimination of a tax, or the elimination or reduction of a fee.

The following persons testified:

06:33 PM -- Mr. Rich Jones, representing the Bell Policy Center, testified in support of the legislation and distributed a letter of support for the bill (Attachment K).

06:35 PM -- Mr. Terry Scanlon, representing the Colorado Fiscal Policy Institute, testified in support of the bill.


BILL:	HB12-1039
TIME:	06:39:17 PM
MOVED:	McCann
MOTION:	Refer House Bill 12-1039 to the Committee of the Whole. The motion failed on a vote of 6-7.
SECONDED:	Pabon
		VOTE
	Acree	No
	Beezley	No
	Conti	No
	Hullinghorst	Yes
	Joshi	No
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	No
	DelGrosso	No

YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1039
TIME:	06:45:31 PM
MOVED:	Swalm
MOTION:	Moved to postpone House Bill 12-1039 indefinitely. The motion passed on a vote of 7-6.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Hullinghorst	No
	Joshi	Yes
	Kagan	No
	Kefalas	No
	Labuda	No
	McCann	No
	Pabon	No
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

06:47 PM

The committee adjourned.