House Committee on Finance (02/21/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/21/2013	ATTENDANCE

Time:	10:37 AM to 11:48 AM	DelGrosso	X
		Foote	X
Place:	SupCt	Joshi	X
		Kagan	X
This Meeting was called to order by		May	X
	Representative Court	Melton	X
		Pabon	*
This Report was prepared by		Priola	*
	Ron Kirk	Saine	X
		Swalm	X
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1110 HB13-1205		Amended, Referred to Appropriations Amended, Referred to the Committee of the Whole

10:37 AM -- House Bill 13-1110 - Concerning Special Fuels Revenue

Representative Fischer, prime sponsor, explained that House Bill 13-1110, as amended, alters revenue collected from vehicles propelled by natural gas and plug-in electricity. Representative Fischer continued by noting the differences between current law and HB13-1110. Under current law, in addition to normal registration fees, natural gas-based vehicles pay an annual fee based on the weight of the vehicle in-lieu of paying a special fuel tax. The Department of Revenue issues these vehicles a decal that must be displayed. Under HB13-1110, the decal system is repealed and natural gas-based vehicles will instead pay a reduced special fuel tax rate on a gallon of gas equivalent when the fuel is purchased.

Representative Fischer closed by saying that under HB13-1110, plug-in electric vehicles will pay an annual fee of $50. The Department of Revenue will then issue a decal that is required to be displayed. The committee discussed whether the bill presents a TABOR issue given the increase in revenue in the bill.

10:56 AM -- Mr. Ed DeCecco, Office of Legislative Legal Services, responded to questions about the tax policy change in the bill as it relates to TABOR revenue.

11:00 AM -- Mr. Ryan Brendle, Legislative Council Staff, responded to questions about the revenue impact in the fiscal note.

After a brief committee discussion on the fiscal note, the committee heard witness testimony.

The following persons testified:

11:05 AM -- Mr. Bill Gallagher, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill and distributed a handout in support of the legislation (Attachment A).

13HseFin0221AttachA.pdf

11:12 AM -- Mr. Stan Dempsey, representing the Colorado Petroleum Association, testified in support of the bill.

11:13 AM -- Mr. Jim Cole, representing Chesapeake Energy, testified in support of the bill. Mr. Cole noted that Chesapeake Energy is trying to develop public charging stations. This sticker program is an impediment to station development. It has helped put private stations behind. He closed by saying that they want to move the market place to be more visible, public friendly, and transparent.

11:20 AM -- Mr. Chris Votoupal, representing the Colorado Cleantech Industry Association, testified in support of the bill. He noted that all vehicles should contribute to the HUTF. He closed by saying that there are 80 charging stations statewide open to the program.

11:21 AM -- Mr. R. J. Hicks, representing the Colorado Motor Carriers Association, testified in support of the bill.


BILL:	HB13-1110
TIME:	11:25:45 AM
MOVED:	Kagan
MOTION:	Moved Amendment L.009 (Attachment B). The motion passed without objection. 13HseFin0221AttachB.pdf
SECONDED:	Priola
		VOTE
	DelGrosso
	Foote
	Joshi
	Kagan
	May
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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


BILL:	HB13-1110
TIME:	11:27:09 AM
MOVED:	Kagan
MOTION:	Refer House Bill 13-1110, as amended, to the Committee on Appropriations. The motion passed on a vote of 8-5.
SECONDED:	Priola
		VOTE
	DelGrosso	No
	Foote	Yes
	Joshi	No
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

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

11:31 AM -- House Bill 13-1205 - Concerning Investments by the State Treasurer

Representative Swalm and Representative Pabon, prime sponsors, explained the provisions of the bill. Representative Pabon began by saying that House Bill 13-1205 gives the state treasurer additional flexibility in investing state moneys by allowing the treasurer to exchange or sell an investment at a loss of principal to the public school fund so long as the loss is offset by a gain in the fund within 12 months, invest in securities denominated in U.S. dollars, rather than only in "domestic securities" under current law, and invest in municipal bonds rated in one of the two highest ratings by a nationally recognized rating organization.

The following person testified:

11:41 AM -- Mr. Brett Johnson, Deputy Treasurer, responded to questions about the bill and the bond ratings for certain state investments. Mr. Johnson discussed the backfill requirement under state law that relates to the School Finance Act.


BILL:	HB13-1205
TIME:	11:47:30 AM
MOVED:	Pabon
MOTION:	Moved Amendment L.002 (Attachment C). The motion passed without objection. 13HseFin0221AttachC.pdf
SECONDED:	Swalm
		VOTE
	DelGrosso
	Foote
	Joshi
	Kagan
	May
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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


BILL:	HB13-1205
TIME:	11:47:53 AM
MOVED:	Swalm
MOTION:	Refer House Bill 13-1205, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Pabon
		VOTE
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

11:48 AM

The committee adjourned.