House Committee on Finance (02/16/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/16/2012	ATTENDANCE

Time:	09:52 AM to 12:06 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:
HB12-1215 HB12-1273 HB12-1029		Amended, Referred to Appropriations Amended, Referred to Appropriations Amended, Referred to the Committee of the Whole

09:53 AM -- House Bill 12-1215 - Concerning the Nonadmitted and Reinsurance Reform Act

Representative Gerou, prime sponsor, began by explaining that Congress passed the Nonadmitted and Reinsurance Reform Act of 2010 (NRRA), which preempts certain provisions of the Colorado Nonadmitted Insurance Act with regard to the sale of surplus lines of insurance and the collection of surplus line premium taxes. She continued by noting that House Bill 12-1215 conforms to the NRRA and allows the Division of Insurance in the Department of Regulatory Agencies (DORA) to collect all possible premium taxes on multistate insurance policies. Representative Gerou continued by saying that the bill enables the division to collect premium taxes on surplus lines insurance more than once annually. She closed by saying that House Bill 12-1215 will allow the division to recover up to $4.0 million in General Fund revenue from insurance premium taxes on multistate policies through tax sharing agreements. A letter of support for House Bill 12-1215 from DORA was distributed to the committee (Attachment A).

The following persons testified:

10:02 AM -- Mr. Raymond Akers, representing the Division of Insurance, Department of Regulatory Agencies, testified in support of the bill. Mr. Akers noted that the bill states that surplus line policies would be taxed at the correct rate.

10:06 AM -- Mr. Robert Ferm, representing the Surplus Lines Association, testified in support of the bill.


BILL:	HB12-1215
TIME:	10:12:44 AM
MOVED:	Swerdfeger
MOTION:	Moved Amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Acree
		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:	HB12-1215
TIME:	10:14:19 AM
MOVED:	Swerdfeger
MOTION:	Refer House Bill 12-1215, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0 with two members excused.
SECONDED:	Conti
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Hullinghorst	Yes
	Joshi	Yes
	Kagan	Yes
	Kefalas	Excused
	Labuda	Excused
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

10:18 AM -- House Bill 12-1273 - Concerning the Child Care Contribution Credit

Representative Pabon, prime sponsor, explained that HB12-1273 would include approved facility schools that are affiliated with a licensed or certified hospital as eligible child care facilities for the purposes of the child care contribution income tax credit. The facilities would be eligible beginning in income tax year 2012.

The committee discussed the applicability of investments for the state child care contribution credit qualifying for the federal charitable deduction. A spokesperson from the Department of Revenue was asked to respond to committee questions.

The following persons testified:

10:27 AM -- Mr. Mark Couch, Department of Revenue, responded to committee questions about the federal charitable deduction that is allowed in addition to the state income tax credit for qualifying child care expenses. The committee discussed the history of the state income tax credit. Mr. Couch noted that the child care contribution income tax credit was established in 1999 and is authorized through tax year 2019. State income taxpayers, both individual and corporate filers, who contribute money to promote child care in Colorado can claim an income tax credit of 50 percent of the total contribution (non-monetary donations do not qualify for the credit). Mr. Couch closed by saying the amount of the credit cannot exceed $100,000 per taxpayer, and the credit shall not exceed the tax liability for the year and any excess credits may be carried forward to future income tax returns for up to five years.

The committee discussed the child care contribution credit and the facilities that are recognized centers in terms of the state income tax credit. Testimony continued.

10:52 AM -- Mr. John Reid, representing the Kunsberg School, testified in support of the legislation and distributed a handout to the committee on the school (Attachment C). He noted that the school is a K thru 8 facility and is approved by the Colorado Department of Education. He closed by discussing the health of the children who attend the school.

11:10 AM -- Ms. Carmen Heed, representing the Kunsberg School, testified in support of the legislation.

11:14 AM -- Mr. Zach Zaslow and Arletta Swain Cockrell, representing the Children's Hospital Colorado, testified in support of the legislation and distributed a handout to the committee (Attachment D).

11:24 AM -- Ms. Kama Linscome, Colorado Department of Education, stated that the department has not taken a position on the bill. She responded to committee questions saying that approved facilities for purposes of the credit are not part of school districts.

11:28 AM -- Ms. Geri Reinardy, representing National Jewish Health, testified in support of the legislation.


BILL:	HB12-1273
TIME:	11:32:04 AM
MOVED:	Pabon
MOTION:	Moved Amendment L.001 (Attachment E). The motion passed without objection.
SECONDED:	Hullinghorst
		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:	HB12-1273
TIME:	11:33:21 AM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1273, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-2.
SECONDED:	Kefalas
		VOTE
	Acree	Yes
	Beezley	No
	Conti	Yes
	Hullinghorst	Yes
	Joshi	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:39 AM -- House Bill 12-1029 - Concerning Business Incentives

Representative Holbert, prime sponsor, distributed Amendment L.004 (Attachment F) and a staff memorandum noting the fiscal assessment of the amendment (Attachment G) to the committee. He began by explaining that as introduced, the bill exempts business personal property that is purchased at any time during 2013 from taxation. The proposed amendment removes the provision regarding the property tax exemption for locally and state-assessed business personal property purchased in 2013. The amendment instead addresses business incentive agreements (BIAs) for counties, municipalities, and special districts. Under current law, each of these local government entities has the authority to establish incentive payments or tax credits of up to 50 percent of a taxpayer's business personal property liability. This amendment increases that limit to 100 percent of the liability. He closed by saying that thus, the fiscal impact is eliminated.

The following persons testified:

11:49 AM -- Mr. Marc Carey, Legislative Council Staff, responded to questions about the fiscal note and amendment to the bill.

11:55 AM -- Mr. Patrick Boyle, Colorado Competitive Council, testified in support of the legislation.

11:58 AM -- Mr. Tony Gagliardi, National Federation of Independent Businesses, testified in support of the legislation.

11:59 AM -- Ms. Ali Mickelson, Colorado Fiscal Policy Institute, testified in opposition of the introduced bill.


BILL:	HB12-1029
TIME:	12:02:27 PM
MOVED:	Kefalas
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:	HB12-1029
TIME:	12:03:18 PM
MOVED:	Acree
MOTION:	Refer House Bill 12-1029, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Beezley
		VOTE
	Acree	Yes
	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: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:06 PM

The committee adjourned.