Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:04/17/2014
ATTENDANCE
Time:10:41 AM to 01:14 PM
Becker
X
DelGrosso
X
Place:LSB A
Foote
X
Joshi
X
This Meeting was called to order by
Kagan
X
Representative Court
Melton
*
Pabon
X
This Report was prepared by
Priola
X
Matt Kiszka
Saine
X
Swalm
X
Wilson
X
Labuda
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB14-117
SB14-029
SB14-129
HB14-1371		Referred to Appropriations
Referred to Appropriations
Referred to Appropriations
Referred to the Committee of the Whole


10:43 AM -- SB14-117

Representative Court, Chair, called the meeting to order.

Representative Fischer came to the table to present Senate Bill 14-117, and explained that it corrects an oversight from Senate Bill 13-155 and extends the repeal date of the Board of Real Estate Appraisers in the Department of Regulatory Agencies (DORA) through September 1, 2022. The current repeal date was July 1, 2013. The bill also re-enacts the provisions from SB 13-155, allowing the board to continue to implement DORA's recommendations from the 2012 real estate appraisers sunset report. He responded to questions on the technical changes made by the bill and the fiscal note for the bill.


10:47 AM

Marcia Waters, Director of DORA's Division of Real Estate, came to the table for questions surrounding any additional funding required under the bill. She stated that no additional revenue was required, and that the bill simply extends the repeal date of the board. She responded to a question on the fees required by the bill.










BILL:SB14-117
TIME: 10:49:19 AM
MOVED:Court
MOTION:Refer Senate Bill 14-117 to the Committee on Appropriations. The motion passed on a vote of 13-0.
SECONDED:Priola
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


10:50 AM -- SB14-029

Representative Fischer next presented Senate Bill 14-029. He explained that it creates a statewide paint stewardship program for the recycling, reuse, and disposal of post-consumer architectural paint. Effective July 1, 2015, in order to sell or distribute architectural paint in Colorado, each producer must implement or participate in a paint stewardship program that has been approved by the executive director of the Department of Public Health and Environment (DPHE). Paint stewardship plans are submitted to the DPHE by January 1, 2015. Producers may submit individual program plans or coordinate with other producers to create a joint paint stewardship program. The bill provides related definitions and the minimum requirements a paint stewardship program must meet to be approved by the DPHE.

In response to a question, Representative Fischer explained that each architectural paint stewardship program is self-funded through a paint stewardship fee that a producer charges to retailers and distributors for each container of paint sold. The retailers and distributors add fees to the purchase price of the paint. All fees will be remitted to the Paint Stewardship Program Cash Fund, created in the bill. Each producer is responsible for education and outreach to communicate to retailers and consumers about the program. The aggregate amount of fees charged to consumers cannot exceed the actual cost of maintaining the program. Paint stewardship programs are not allowed to impose fees directly on customers for the collection of paint.

Representative Fischer responded to questions on industry support for the bill, the fees associated with the program, guardrails within the bill to prevent the cost of the program from being passed on to the consumer, how paint stewardship programs will be regulated, and whether programs held in rural areas will be cost-prohibitive.





11:06 AM

Marjorie Griek, Executive Director of the Colorado Association for Recycling, came to the table to discuss the cost differentials of operating a paint stewardship program in urban versus rural areas of Colorado. She spoke to how other states had made similar programs cost effective, and responded to questions on the differing types of paint collection sites, and whether permanent sites are more cost effective than temporary collection sites. At the request of one of the members, Ms. Griek described Paint Care, a non-profit organization that will oversee paint stewardship programs in the state. Committee discussion ensued.


11:22 AM

Representative Fischer responded to questions on whether the paint stewardship program will emulate the waste tire recycling program in the state, how fees will be incorporated into the overall cost of paint, the different types of paint drop-off locations that could result from the bill, and how much paint is sold in Colorado each year.


11:28 AM

Anne-Marie Jensen, from the American Coatings Association, came to the table to respond to a question on the fines levied for violations of a paint stewardship program. She discussed industry associations and their willingness to comply with requirements for paint recycling in Colorado. She responded to a question on whether surrounding states have similar programs in place. Representative Fischer spoke to questions on how the price of paint could increase under the bill and committee discussion ensued.


11:38 AM

Ms. Griek responded to a question on Paint Care's involvement in paint recycling programs in other states. Committee discussion of the potential efficiencies created by a statewide paint recycling program ensued. Ms. Griek responded to questions on the costs associated with paint recycling and improper disposal of paint, how the bill could generate additional business in the state, and how the paint recycling process will work from consumer to recycler.






















BILL:SB14-029
TIME: 11:51:07 AM
MOVED:Court
MOTION:Refer Senate Bill 14-029 to the Committee on Appropriations. The motion passed on a vote of 7-6.
SECONDED:Melton
VOTE
Becker
Yes
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
Melton
Yes
Pabon
Yes
Priola
No
Saine
No
Swalm
No
Wilson
No
Labuda
Yes
Court
Yes
YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:52 AM -- SB14-129

Representative May came to the table to present Senate Bill 14-129. She explained that the bill affects a number of laws related to criminal penalties for offenses involving marijuana. The bill adds consumption and possession of marijuana and possession of marijuana paraphernalia to the crime of underage possession or consumption of alcohol. She responded to a question on whether the bill only addresses underage consumption and possession of marijuana or if it also deals with those who are 21 and older.

11:56 AM -- Alexander Steel, representing himself, spoke in favor of the bill. He stated that marijuana usage by youth imposes external costs onto society as a whole and should therefore be regulated by the government. He responded to a question on state governments and the externalities that they should be responsible for regulating.


BILL:SB14-129
TIME: 12:00:55 PM
MOVED:Court
MOTION:Refer Senate Bill 14-129 to the Committee on Appropriations. The motion passed on a vote of 13-0.
SECONDED:Melton
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


12:01 PM -- HB14-1371

Representative Young came to the table to present House Bill 14-1371. He explained that under current law, for property tax purposes, the production value from oil and gas leases that are located in more than one local governmental taxing district (county, municipality, special district, or school district) must be allocated between the districts in proportion to the surface acreage of the lease within each district's boundaries. This bill specifies that, instead, the wellhead is the point of valuation and taxation for property tax purposes. He responded to questions on why he is bringing the bill, why the method of appraisal laid out by the bill was chosen, and if any industry organizations are in opposition to the bill.

12:07 PM -- Travis Holland, representing Anadarko Petroleum Corporation, the Colorado Petroleum Association, and the Colorado Oil and Gas Association, spoke in favor of the bill. He stated that the legislation is logical and simple, and that the situation surrounding its need is unique to Colorado because of its special district system of taxation. He stated that the bill does not affect the valuation of a mineral estate. He described the complexities involved in the valuation and taxation of wellheads. He stated that the bill deems that the point of taxation is the same as the point of valuation.











12:23 PM

Mr. Holland responded to questions on how valuation and taxation is performed in other states, how taxes are collected on wellheads, and whether the bill could result in less tax receipts from special districts. Committee questioning and discussion of wellheads, valuation, and taxation ensued.

12:40 PM -- John Lefebvre, representing the Colorado County Treasurers' Association, spoke in support of the bill. He spoke to the issues experienced by the Treasurer's Office with current oil and gas lease taxation and valuation requirements. He responded to questions on city taxation of wellheads under the bill.

12:47 PM -- Jim Yellico and Christopher Woodruff, representing the Colorado Assessors Association, came to the table for questions. Mr. Woodruff spoke to questions on how the bill could affect a city's ability to collect tax revenue from an oil or gas lease. Mr. Yellico stated that his association is neutral on the bill, and is not in support of the bill as had previously been suggested. The witnesses responded to questions on the typical size of an oil or gas lease.

12:57 PM -- MaryAnn McGeady, representing McGeady Sisneros, the Beebe Draw Community, the Pioneer Community, and the Godding Hollow Community, spoke in favor of the bill. She discussed the complexities of the valuation and taxation of oil and gas leases by different taxing districts and how the bill would simplify these processes. She responded to questions on the ability of different tax districts to collect revenue under the bill.

01:06 PM -- Curt Settle, representing the Department of Local Affairs' Division of Property Taxation, came to the table for questions, and spoke to the genesis of the bill.


01:09 PM

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


























BILL:HB14-1371
TIME: 01:13:00 PM
MOVED:Court
MOTION:Refer House Bill 14-1371 to the Committee of the Whole. The motion passed on a vote of 12-1.
SECONDED:Pabon
VOTE
Becker
No
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: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


01:14 PM

The committee was adjourned.