House Committee on Finance (03/12/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	03/12/2014	ATTENDANCE

Time:	01:33 PM to 05:01 PM	Becker	X
		DelGrosso	X
Place:	LSB A	Foote	X
		Joshi	X
This Meeting was called to order by		Kagan	*
	Representative Court	Melton	X
		Pabon	X
This Report was prepared by		Priola	*
	Matt Kiszka	Saine	X
		Swalm	*
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB14-126 HB14-1127 SB14-089 HB14-1001		Postponed Indefinitely Referred to Appropriations Amended, Referred to the Committee of the Whole Amended, Referred to Appropriations

01:34 PM -- SB14-126

Representative Sonnenberg came to the table to present Senate Bill 14-126. He explained that under current law, the State Lottery Division operates as a Type 2 agency within the Department of Revenue and under the direction of its executive director, except that the Lottery Commission is empowered to independently promulgate rules related to the lottery. This bill, recommended by the Legislative Audit Committee, reclassifies the division as a Type 1 agency. As a Type 1 agency, the division would be responsible for its financial operations, including contracting and preparation of an annual budget. Representative Sonnenberg described the genesis of the bill, and the committee discussed the effective operation and management of the Colorado lottery.

01:45 PM

The committee went into a brief recess.


BILL:	SB14-126
TIME:	01:52:27 PM
MOVED:	DelGrosso
MOTION:	Lay over until May 17. The effect of the motion is to postpone SB14-126 indefinitely. The motion passed on a vote of 13-0.
SECONDED:	Saine
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

01:53 PM -- HB14-1127

Representative Coram came to the table to present House Bill 14-1127. He explained to the committee that the bill establishes a procedure for a party that obtains a monetary award in court (the judgment creditor) to compel the Colorado Department of Labor and Employment (CDLE) to disclose employment information contained in its wage and employment database about the other party (the judgment debtor).

01:56 PM -- T.A. Taylor-Hunt, representing herself, spoke against the bill. She stated that she was a consumer advocate, and raised some concerns that she had with the fiscal implications of the bill.

02:00 PM -- Scott Allely, representing Wakefield and Associates and the Association of Collections Agencies, and Tom Romola, representing the Association of Collections Agencies, came to the table to speak in favor of the bill. Mr. Romola stated that they had worked with the state on the fiscal note and had improved the revenue impact associated with the bill. He responded to questions on why the bill was brought forth, how the CDLE has access to creditor information, whether the bill will place a greater burden upon the judgment debtor, and how attorneys fees will be affected by the bill. Mr. Allely spoke to the issue of how the bill might affect the costs of collection in the case of a judgment creditor not being able to collect a monetary award from a court case.

02:09 PM

Committee discussion and questioning of the inclusion in the bill of stipulations around attorney fees ensued.

02:19 PM -- Alex Schatz, Legislative Council Staff, came to the table to respond to questions on the fiscal note for the bill.

02:23 PM

Representative Coram made his closing comments and the committee discussed the merits of the bill.


BILL:	HB14-1127
TIME:	02:26:36 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1127 to the Committee on Appropriations. The motion passed on a vote of 11-1, with 1 member excused.
SECONDED:	Becker
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Excused
	Pabon	No
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:27 PM -- SB14-089

Representative Fischer came to the table to present Senate Bill 14-089, which he said was recommended by the Capital Development Committee, and limits the circumstances under which the state may make a payment in lieu of taxes (PILT) for property that it owns or leases. It specifies that the state may not agree to make any form of payment in lieu of property taxes in connection with property that it owns or leases equal to the amount of property taxes payable by a non tax-exempt entity for such property, unless specifically authorized by law. However, the state is permitted to enter into an agreement to mitigate some of the loss of property tax revenue resulting from the ownership of such property. He responded to questions on how the state can use a PILT as a negotiating tool in property purchases and leasings, if the bill prohibits a state agency from making a 100 percent PILT, the situations when a PILT is necessary, and the genesis of the bill.

02:39 PM -- Esther van Mourik, Office of Legislative Legal Services, came to the table to respond to a question on whether state agencies currently have the authority to make PILTs and at what level these payments can be made. Committee discussion of state PILTs and the provisions of the bill ensued.

02:52 PM

Representative Fischer distributed Amendment L.003 (Attachment A), and explained for the committee that it is a technical amendment, and addresses some drafting issues with the bill.

14HseFin0312AttachA.pdf


BILL:	SB14-089
TIME:	02:54:49 PM
MOVED:	Court
MOTION:	Adopt amendment L.003 (Attachment A). The motion passed without objection.
SECONDED:	Kagan
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

02:55 PM

Representative Fischer made his closing comments on the bill and committee discussion of its merits ensued.


BILL:	SB14-089
TIME:	02:59:24 PM
MOVED:	Court
MOTION:	Refer Senate Bill 14-089, as amended, to the Committee of the Whole. The motion passed on a vote of 7-5, with 1 member excused.
SECONDED:	Kagan
		VOTE
	Becker	Yes
	DelGrosso	No
	Foote	Yes
	Joshi	No
	Kagan	Yes
	Melton	Excused
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	Yes
	Wilson	No
	Labuda	Yes
	Court	Yes

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

03:00 PM -- HB14-1001

Representative Singer presented House Bill 14-1001, which he explained establishes a state reimbursement for certain property taxes owed or paid for real property and business personal property that has been destroyed in a natural disaster or by other cause beyond the control of the property owner. After county assessors and county treasurers compile a list of destroyed property and its tax liability, the state treasurer distributes to counties payments from the state General Fund for the tax liability of destroyed property, for the tax year in which it was destroyed. County treasurers, in turn, are required to pay the tax owed or reimburse each affected taxpayer. The bill applies to tax years starting on or after January 1, 2013. Representative Singer distributed Amendment L.001 (Attachment B), Amendment L.003 (Attachment C), Amendment L.004 (Attachment D), Amendment L.005 (Attachment E), and Amendment L.006 (Attachment F).

14HseFin0312AttachB.pdf

14HseFin0312AttachC.pdf

14HseFin0312AttachD.pdf

14HseFin0312AttachE.pdf

14HseFin0312AttachF.pdf

03:05 PM -- Brad Roelens, John Casey, and Terry Mayes, representing themselves, came to the table to speak in favor of the bill. Ms. Mayes distributed a before and after photo of the town of Lyons and the damage that it suffered from the flood of 2013 (Attachment G). She stated that she believes in the payment of property taxes, but that she was unable to do anything with her property because of the damage sustained. Mr. Roelens provided his personal testimony as to how he was impacted by the floods, and how the bill would benefit him personally. Mr. Casey explained his experience in the flood and how the town of Lyons and its community was affected. Mr. Casey responded to a question on the work in the town of Lyons that remained to be done to repair the damages of the floods.

14HseFin0312AttachG.pdf

03:18 PM

Representative Singer responded to questions on whether county assessors currently have the ability to waive the property tax on properties that have been destroyed, whether county assessors are in support of the bill, and the level of damage to a property that must result from a natural disaster in order for it to qualify for the property tax reimbursement.

03:28 PM

Representative Singer responded to questions on whether county assessors can prorate property taxes, and how long the property tax reimbursement is established under the bill. Committee discussion ensued.

03:39 PM -- Nick Shaffer, representing himself, debated the merits of the bill. Mr. Shaffer stated that the bill is timely legislation, but that it does not effectively address the issues it is trying to address. He discussed his reservations with the bill, which included arbitrary guidelines and definitions laid out for county assessors.

03:47 PM -- Jim Everson, representing the Jefferson County Assessor, JoAnn Groff and Curt Settle, representing the Division of Property Taxation within the Department of Local Affairs, and Tim Kauffman, representing the Colorado County Treasurer's Association, came to the table for questions. Mr. Kauffman stated that the Colorado County Treasurer's Association is neutral on the bill. Mr. Everson stated that the Jefferson County Assessor was in support of the bill, and responded to questions on prorating property taxes, the definition of destroyed property, whether definitions of destroyed property laid out for county assessors are too arbitrary, and if statutory guidance for assessors is required. Ms. Groff elaborated on the need for a definition of destroyed property for county assessors.

04:00 PM

Ms. Groff responded to questions on the Assessor's Reference Library for county assessors, and whether a new owner of a property that is destroyed by natural causes could claim the full amount of a property tax reimbursement for a full tax year. Committee discussion of property tax proration and reimbursement ensued.

04:18 PM

Mr. Everson responded to a question on the report of destroyed property that must be prepared by county assessors under the provisions of the bill, and whether the adoption of all of the amendments on the table will satisfy his reservations about the bill. He stated that they would. Mr. Kauffman provided the committee with details on how the bill would impact county treasurers.

04:25 PM -- Mr. Casey made some additional comments on the definition of property in the eyes of county assessors, and spoke to how his property was not adequately covered by flood insurance to fully cover the damage suffered.

04:28 PM

Representative Singer explained the changes made by Amendment L.003 (Attachment C).


BILL:	HB14-1001
TIME:	04:29:12 PM
MOVED:	Court
MOTION:	Adopt amendment L.003 (Attachment C). The motion passed without objection.
SECONDED:	Pabon
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

04:29 PM

Representative Singer spoke to the changes made by Amendment L.004 (Attachment D).


BILL:	HB14-1001
TIME:	04:30:31 PM
MOVED:	Court
MOTION:	Adopt amendment L.004 (Attachment D) The motion passed without objection.
SECONDED:	Foote
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

04:30 PM

Representative Singer explained Amendment L.005 (Attachment E).


BILL:	HB14-1001
TIME:	04:31:00 PM
MOVED:	Court
MOTION:	Adopt amendment L.005 (Attachment E). The motion passed without objection.
SECONDED:	Kagan
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

04:32 PM

Representative Singer described the changes made by Amendment L.006 (Attachment F).


BILL:	HB14-1001
TIME:	04:32:43 PM
MOVED:	Court
MOTION:	Adopt amendment L.006 (Attachment F). The motion passed without objection.
SECONDED:	Foote
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

04:35 PM

The committee discussed the merits of including a sunset clause to the bill.

04:49 PM

The committee discussed the merits of the bill.

04:53 PM

Representative Singer made his closing comments on the bill.


BILL:	HB14-1001
TIME:	04:57:49 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.001 (Attachment B). The motion passed without objection.
SECONDED:	Court
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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


BILL:	HB14-1001
TIME:	04:58:09 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1001, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-1, with 1 member excused.
SECONDED:	Foote
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Excused
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:01 PM

The committee was adjourned.