House Committee on Economic and Business Development (05/15/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Date:	05/15/2012	ATTENDANCE

Time:	11:01 AM to 11:14 AM	Balmer	X
		Holbert	X
Place:	HCR 0112	Miklosi	X
		Priola	X
This Meeting was called to order by		Singer	X
	Representative Liston	Soper	X
		Swerdfeger	X
This Report was prepared by		Szabo	X
	Christie Lee	Tyler	X
		Williams A.	X
		Wilson	*
		Swalm	*
		Liston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12S-001 HB12S-1003		Referred to Finance Postponed Indefinitely

11:02 AM -- Senate Bill 12S-001

Representative Priola, prime sponsor, presented Senate Bill 12S-001 concerning the registration of special mobile machinery fleets. The bill allows owners of 10 or more pieces of special mobile machinery (SMM) to register their entire fleet once a year. SMM includes vehicles commonly used in the construction, maintenance, and repair of roadways, wells, and ditches. Under current law, these vehicles must be registered separately. In addition, the bill:

allows for the use of special plates, indicating that a SMM registration is pending;
removes the requirement for SMM not operating on highways to have an annual validating tab of the sticker;
allows fleet owners to quarterly prorate that registration of each vehicle to accommodate the registration of an entire fleet; and
requires a $7.00 fee per vehicle to register a fleet, in addition to regular taxes and fees paid on each vehicle in the fleet.

In order to register a fleet under the bill, an owner must submit a report to the registering county clerk and the Department of Revenue stating where the SMM was first delivered in the state. The bill does not change current applicable SMM registration fees.

Representative Bradford briefly discussed the bill with the committee.

The following person testified:

11:04 AM -- Scott Meiklejohn, representing United Rentals and Sunbelt Rentals, testified in support of the bill and explained the issue the bill attempts to address.

11:08 AM

Representatives Holbert, Soper, and Liston asked the witness some questions regarding the costs involved in tagging equipment and late fees.

11:10 AM

Representatives Priola and Bradford gave closing remarks on the bill.


BILL:	SB12S-001
TIME:	11:10:34 AM
MOVED:	Priola
MOTION:	Moved to refer Senate Bill 12S-001 to the Committee on Finance. The motion passed on a vote of 13-0.
SECONDED:	Swalm
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:13 AM -- House Bill 12S-1003

Representative Bradford, prime sponsor, presented House Bill 12S-1003. This bill allows owners of 10 or more pieces of special mobile machinery (SMM) to register their entire fleet once per year. Special mobile machinery includes vehicles commonly used in the construction, maintenance, and repair of roadways, the drilling of wells, and the digging of ditches. Under current law, these vehicles must be registered separately. In addition, the bill:

allows for the use of special plates, indicating that a SMM registration is pending;
removes the requirement for SMM not operating on highways to have an annual validating tab or sticker;
allows fleet owners to quarterly prorate the registration of each vehicle to accommodate the registration of an entire fleet; and

requires a $7.00 fee per vehicle to register a fleet, in addition to regular taxes and fees paid on each vehicle in the fleet.

In order to register a fleet under this bill, an owner must submit a report to the registering county clerk and the Department of Revenue stating where the SMM was first delivered in the state. This bill does not change current applicable SMM registration fees.

Under current law, out-of-state SMM that operate in Colorado for less than one month per year can pay Specific Ownership Tax (SOT) and registration fees at a port of entry operated by the Department of Revenue (DOR). All other transactions are processed at county clerk and recorder offices. If SOT is collected at a port of entry, the state retains $0.50 of each transaction, which is credited to the Highway Users Tax Fund (HUTF), and the remainder is distributed to the county for further distribution to other local governments. In addition, rental fleet owners can register vehicles individually through the 'two percent program,' whereby owners can remit monthly payments of two percent of their rental income fees proportional to the counties where the equipment is used

Representative Bradford explained that House Bill 12S-1003 is similar to the bill the committee just passed, Senate Bill 12S-001, and asked that her bill be postponed indefinitely.


BILL:	HB12S-1003
TIME:	11:13:31 AM
MOVED:	Tyler
MOTION:	Moved to postpone House Bill 12S-1003 indefinitely. The motion passed on a vote of 13-0.
SECONDED:	Wilson
		VOTE
	Balmer	Yes
	Holbert	Yes
	Miklosi	Yes
	Priola	Yes
	Singer	Yes
	Soper	Yes
	Swerdfeger	Yes
	Szabo	Yes
	Tyler	Yes
	Williams A.	Yes
	Wilson	Yes
	Swalm	Yes
	Liston	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:14 AM

The committee adjourned.