Date: 04/29/2013

Final
BILL SUMMARY for SB13-001

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Adopt amendment L.016 (Attachment C). The motion p
Adopt amendment L.023 (Attachment D). The motion p
Refer Senate Bill 13-001, as amended, to the Commi		PASS
PASS
PASS



01:36 PM -- Senate Bill 13-001

The committee was called to order. A quorum was present.


01:37 PM

The committee recessed to wait for the bill sponsor.


01:40 PM

The committee returned to order. Representative Kagan, prime sponsor, presented Senate Bill 13-001, concerning income tax credits to support working families. Representative Kagan explained the effect of the bill, discussed its merits, and explained the effect of some forthcoming amendments. Representative Kagan discussed political opinion on the earned income tax credit (EITC), and the impact of the credit on poverty.


01:52 PM

Representative Kagan continued to discuss the merits of Senate Bill 13-001, explaining the tax structure and how the bill will change this structure to the benefit of those in poverty. Committee members received a handout providing an overview of Colorado state and local taxes (Attachment A). Representative Kagan was asked to justify the costs associated with the bill to the voters, and responded to questions regarding the income level at which the federal EITC applies in comparison to the level contained in Senate Bill 13-001. Discussion ensued regarding the child tax credit in the bill. Representative Kagan responded to questions regarding the number of persons that would be impacted by the EITC provisions of the bill, and the fiscal impact of the bill. Ms. Natalie Mullis, Legislative Council Staff, provided input on the bill's fiscal impact and the number of families that would be impacted by the bill.

13HseState0429AttachA.pdf13HseState0429AttachA.pdf

02:05 PM

Representative Kagan responded to questions regarding Colorado's current version of the EITC, and the events that trigger the dispensation of the credit in comparison to the trigger contained in Senate Bill 13-001. Discussion ensued regarding the ability of the General Assembly to scale back the EITC contained in the bill in the future. Ms. Mullis responded to further questions regarding the population that would be affected by the bill and their tax liability. Discussion ensued regarding this point. Discussion returned to the fiscal impact of the bill in future years.


02:16 PM

The following persons testified regarding Senate Bill 13-001:

02:16 PM -- Ms. Dawn Marquantte, representing 9 to 5 Association of Working Women, testified in support of the bill. Ms. Marquantte discussed the benefits her family enjoys as a result of the federal EITC, and explained how she would use the additional income she would receive under the bill's tax credit.

02:19 PM -- Mr. Rich Jones, representing the Bell Policy Center, testified in support of the bill. Committee members received copies of Mr. Jones' testimony (Attachment B). Mr. Jones read portions of Attachment B, and discussed the benefits of the EITC. Mr. Jones discussed trends in poverty rates in recent years, and the correlation between the EITC and the poverty rate. Mr. Jones discussed the impact of Referendum C, passed by the voters in 2006, on revenues available to fund the EITC under the bill. Mr. Jones responded to questions regarding the impact of the bill on future state budgets during economic downturns. Mr. Jones responded to further questions regarding the number of tax credits available in Colorado, particularly those geared toward low-income households.

13HseState0429AttachB.pdf13HseState0429AttachB.pdf

02:31 PM

Mr. Jones responded to questions regarding the impact of Senate Bill 13-001 on long-term state budgeting.

02:33 PM -- Ms. Chaer Robert, representing the Colorado Center on Law and Policy, testified in support of the bill. Ms. Robert discussed the poverty level in Colorado, and explained the concept of the self-sufficiency standard. She discussed the benefits of the EITC.

02:37 PM -- Ms. Nancy Reichman, representing herself, and Ms. Katie Facchinello, representing Every Child Matters, testified in support of Senate Bill 13-001. Ms. Reichman discussed the problem of poverty and explained how permanently reinstating the EITC would help to ameliorate poverty. Ms. Facchinello discussed the poverty level for children in Colorado, and the benefits of the EITC. Ms. Facchinello related an incidence of a family living in poverty as an example of a family that would benefit from the bill's passage.

02:42 PM -- Ms. Corrine Fowler, representing the Colorado Progressive Coalition, testified in support of the bill. Ms. Fowler discussed the impact of the economic downturn on impoverished Coloradans, her own struggles as a poor parent, and the benefits she experienced due to the EITC.

02:45 PM -- Ms. Anna Davis, representing herself and 9 to 5 National Association of Working Women, testified in support of the bill. Ms. Davis discussed the benefits she experienced from the EITC as a single mother seeking an advanced degree, and the benefits of the tax credit in general.

02:47 PM -- Ms. Courtney Sabine, representing Tax Help Colorado, testified in support of Senate Bill 13-001. Ms. Sabine discussed the services provided by her organization to low-income families, and related some anecdotes about the use of EITC moneys by low-income families.

02:49 PM -- Mr. Solomon Smilack, representing the Denver Asset Building Coalition, testified in support of the bill. Mr. Smilack discussed the services provided by his organization to low-income families, and the economic-stimulation effect of the EITC. Mr. Smilack explained that the EITC helps increase family incomes to the point where it pays for itself.

02:52 PM -- Mr. Chris Stiffler, representing the Colorado Fiscal Institute, testified in support of the bill. Mr. Stiffler explained that the EITC encourages work, and discussed reliance on the EITC on a temporary basis. Mr. Stiffler discussed the benefits of the EITC to the economy, and the use of the EITC as a wage subsidy.

02:55 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in support of Seante Bill 13-001. Ms. Mickelson discussed the potential opportunities for addressing poverty provided by a growing economy and, if the bill passes, the EITC. Ms. Mickelson discussed the benefits of the EITC to poor families.

02:58 PM -- Ms. Margaret Gomez, representing 9 to 5 National Association of Working Women, testified in support of the bill. Ms. Gomez discussed her experiences as an educator, and the impact access to resources has on educational success. Ms. Gomez cited statistics to this effect.


03:01 PM

Representative Kagan explained the effect of prepared amendment L.016 (Attachment C).

13HseState0429AttachC.pdf13HseState0429AttachC.pdf
BILL:SB13-001
TIME: 03:01:30 PM
MOVED:Labuda
MOTION:Adopt amendment L.016 (Attachment C). The motion passed on a vote of 7-4.
SECONDED:Salazar
VOTE
Dore
No
Foote
Yes
Humphrey
No
Labuda
Yes
Melton
Yes
Moreno
Yes
Nordberg
No
Scott
No
Williams
Yes
Salazar
Yes
Ryden
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


03:03 PM

Representative Kagan explained the effect of prepared amendment L.023 (Attachment D).

13HseState0429AttachD.pdf13HseState0429AttachD.pdf
BILL:SB13-001
TIME: 03:03:15 PM
MOVED:Labuda
MOTION:Adopt amendment L.023 (Attachment D). The motion passed on a vote of 7-4.
SECONDED:Salazar
VOTE
Dore
No
Foote
Yes
Humphrey
No
Labuda
Yes
Melton
Yes
Moreno
Yes
Nordberg
No
Scott
No
Williams
Yes
Salazar
Yes
Ryden
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


03:04 PM

Representative Kagan provided closing remarks in support of Senate Bill 13-001.
BILL:SB13-001
TIME: 03:06:50 PM
MOVED:Salazar
MOTION:Refer Senate Bill 13-001, as amended, to the Committee on Finance. The motion passed on a vote of 7-4.
SECONDED:Williams
VOTE
Dore
No
Foote
Yes
Humphrey
No
Labuda
Yes
Melton
Yes
Moreno
Yes
Nordberg
No
Scott
No
Williams
Yes
Salazar
Yes
Ryden
Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:07 PM

The committee recessed.