House Committee on Finance (04/30/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/30/2014	ATTENDANCE

Time:	01:34 PM to 04:27 PM	Becker	*
		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	X
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB14-1393 SB14-099 SB14-012 HB14-1391 SB14-005 HB14-1389		Referred to the Committee of the Whole Referred to Appropriations Amended, Referred to Appropriations Amended, Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only Amended, Referred to Appropriations

01:35 PM -- HB14-1393

Representative Gerou came to the table to present House Bill 14-1393. She explained the genesis of the bill, and stated that Section 20 of Article X of the Colorado Constitution, the Taxpayer's Bill of Rights (TABOR), excludes federal funds from the definition of a district's fiscal year spending. This bill, recommended by the Joint Budget Committee, clarifies for TABOR purposes that any federal funds that a local government or enterprise receives, regardless of whether those moneys pass through the state, are not included in the district's calculation of its fiscal year spending. She responded to questions on counties spending federal funds and how this interacts with TABOR, and how counties have been reimbursed in the past for federal funds not taken because they would violate TABOR by doing so.

01:46 PM -- Gini Pingenot, representing Colorado Counties, Inc., spoke in favor of the bill.
01:47 PM -- Meghan Storrie, representing the Colorado Municipal League, spoke in favor of the bill.
01:47 PM -- Jane Urschel, representing the Colorado Association of School Boards, spoke in favor of the bill.
01:48 PM -- Evan Goulding, representing the Special District Association of Colorado, spoke in favor of the bill.


BILL:	HB14-1393
TIME:	01:48:48 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1393 to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Foote
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Excused
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:50 PM -- SB14-099

Representative May came to the table and explained that Senate Bill 14-099 allows the Physical Therapy Board in the Department of Regulatory Agencies to issue provisional physical therapy licenses to applicants who submit an application, pay the required fee, and successfully complete a qualified physical therapy program. She responded to questions on the fees levied on physical therapy licenses. Committee discussion of the fees ensued. Representative May responded to questions on the regulation of physical therapists.


BILL:	SB14-099
TIME:	01:56:16 PM
MOVED:	Court
MOTION:	Refer Senate Bill 14-099 to the Committee on Appropriations. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Saine
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Excused
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

01:57 PM -- SB14-012

Representative Exum came to the table to present Senate Bill 14-012. He explained that the bill was recommended by the Economic Opportunity Poverty Reduction Task Force, and requires the Department of Human Services (DHS) to increase the monthly benefit amount for Aid to the Needy and Disabled (AND) program by 10 percent in FY 2014-15. From FY 2015-16 to FY 2018-19, subject to available appropriations, the DHS is encouraged to increase the monthly award until it is equal to the award level in FY 2006-07, and then to increase the award to account for the cost of living in future years. The bill also allows the DHS to promulgate rules permitting counties to waive the requirement that AND applicants first submit a federal Supplemental Security Income (SSI) application. This requirement may be waived for a specified period of time in order to give applicants more time to submit a complete and through SSI application.

02:02 PM

Bill Zepernick, Legislative Council Staff, came to the table to speak to the fiscal note for the bill. He responded to questions.

02:06 PM

Representative Exum responded to questions on qualifications for the program under the bill. Committee discussion of Social Security disability assistance programs ensued. Mr. Zepernick responded to questions on a potential amendment concerning the pilot program and how it would impact the costs of the bill.

02:16 PM

Representative Exum responded to a question on whether the bill expands access to the program and the expansion of the program laid out in the bill.

02:22 PM -- Peter Pike, representing the Colorado Disability Benefits Support Program, spoke in favor of the bill. He detailed the qualifications for the program that each individual must exhibit in order to be eligible. He responded to questions on SSI benefits and how they relate to the AND program, and how the appeals process for SSI and AND benefits works.

02:30 PM -- Nan Morehead, representing the Colorado Center on Law and Policy, came to the table for questions as an expert witness. She stated that she had worked with the DHS for 30 years. She spoke to procedures surrounding AND program benefits and their interplay with SSI benefits. Committee questioning and discussion ensued.

02:39 PM

Ms. Morehead responded to questions on fraud within the AND program. Mr. Pike spoke to the qualification difference between the AND and SSI programs and how the proposed pilot program would examine these differences. Ms. Morehead distributed some written testimonies (Attachments A, B, and C).

14HseFin0430AttachA.pdf

14HseFin0430AttachB.pdf

14HseFin0430AttachC.pdf

02:48 PM -- Jaime Lewis, former mayor of Salida, representing the Colorado Cross Disability Coalition, spoke in support of the bill. He detailed the numerous ways that the bill would benefit those with disabilities in the state. He responded to questions on the application processes for SSI and AND, and the 10-day window laid out by the bill for AND applications following an SSI application. Ms. Morehead returned to the table to discuss the high denial rate of AND applications and responded to questions on the application process.

02:58 PM

Representative Exum explained Amendment L.005 (Attachment D).

14HseFin0430AttachD.pdf


BILL:	SB14-012
TIME:	02:59:57 PM
MOVED:	Court
MOTION:	Adopt Amendment L.005 (Attachment D). The motion passed without objection.
SECONDED:	Melton
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola	Excused
	Saine
	Swalm
	Wilson
	Labuda
	Court

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

03:00 PM

Representative Exum explained Amendment L.006 (Attachment E).

14HseFin0430AttachE.pdf


BILL:	SB14-012
TIME:	03:00:54 AM
MOVED:	Melton
MOTION:	Adopt amendment L.006 (Attachment E). The motion passed without objection.
SECONDED:	Pabon
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola	Excused
	Saine
	Swalm
	Wilson
	Labuda
	Court
YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB14-012
TIME:	03:02:02 PM
MOVED:	Court
MOTION:	Refer Senate Bill 14-012, as amended, to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Melton
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PAS

03:04 PM -- HB14-1391

Representatives Becker and Priola came to the table to present House Bill 14-1391. They explained that under current law, the state treasurer and the treasurer of the University of Colorado make payments by warrant. The bill allows them to also make payments by check.

03:06 PM

Brett Johnson, Deputy Treasurer, representing the Treasurer's Office, spoke in favor of the bill and responded to questions on how the bill alters the method of payments that the office can make and whether the office can do business with the marijuana industry. Representative Becker responded to a question on support for the bill.

03:11 PM

Representative Priola distributed Amendment L.001 (Attachment F), and Representative Becker explained that it incorporates a safety clause into the bill.

14HseFin0430AttachF.pdf


BILL:	HB14-1391
TIME:	03:12:57 PM
MOVED:	Priola
MOTION:	Adopt amendment L.001 (Attachment F). The motion passed without objection.
SECONDED:	Melton
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon
	Priola	Excused
	Saine
	Swalm
	Wilson
	Labuda
	Court

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB14-1391
TIME:	03:13:19 PM
MOVED:	Becker
MOTION:	Refer House Bill 14-1391, as amended, to the Committee of the Whole. 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

03:14 PM -- SB14-005

Representative Singer came to the table to present Senate Bill 14-005. He explained that under current law, employers are required by law to compensate their employees what they are owed for work performance or face civil penalties. To recover wages and penalties from an employer, an employee must submit a written demand to the employer. The Division of Labor in the Colorado Department of Labor and Employment (CDLE) may assess a penalty, payable to the employee, of 125 percent of wages under $7,500 and 50 percent of wages over $7,500 owed for each day of nonpayment. Proof of an employer's willful nonpayment incurs an additional 50 percent penalty.

The bill authorizes the division to establish an administrative process to handle wage claim cases received and requires the division to investigate and adjudicate all wage claim cases up to $7,500 per employee -- which represents the maximum sum in nearly all wage claim cases -- after January 1, 2015. The bill outlines a series of required notices the division must send in writing and response deadlines for those notices. Upon a determination of a wage violation, the division is required to issue a citation and notice of assessment to the employer. An employer’s failure to respond within 14 days creates a rebuttable presumption of willful intent and makes the employer subject to increased penalties, payable to the employee.

The bill creates a fine of up to $50 per day of a wage violation, to be deposited into the newly created Wage Theft Enforcement Fund, which offsets the division's costs. In addition, employers are required to maintain employee wage records for three years, or be assessed a fine of up to $250 per employee per month. These fines can be waived by the division to encourage employer compliance, and are capped at $7,500. If an employer reimburses its employee for the full amount claimed, and the employee accepts the payment, the employee must dismiss any further action against the employer.

Representative Singer responded to questions on who the bill targets.

03:21 PM

Pat Teegarden, Director of Policy and Legislation, CDLE, came to the table to respond to questions on whether CDLE currently has the authority to levy penalties against employers that withhold compensation from their employees, whether the CDLE is adequately staffed, the fiscal note for the bill, and how CDLE could work with employers when levying fines.

03:37 PM

SB14-005 was laid over until May 1, 2014.

03:37 PM -- HB14-1389

Representatives Pabon and DelGrosso came to the table to present House Bill 14-1389. They explained that the bill creates a sales and use tax exemption for information technology equipment used in qualified data centers. The sales tax exemption would apply to computers, data storage equipment, cooling systems, power infrastructure, and racking systems. The representatives responded to questions on how many jobs the bill could create, the companies that would qualify for the exemption, how many people have been employed by data centers already established in Colorado, whether the bill includes a reporting requirement on the tax exemption, and the main operation costs of data centers in Colorado and how they compare to other states. Amendments L.003 (Attachment G) and L.005 (Attachment H) were distributed to the committee, and the sponsors responded to a question on the tax exemption cap provided in Amendment L.003.

14HseFin0430AttachG.pdf

14HseFin0430AttachH.pdf

03:54 PM

Committee discussion ensued on why the tax exemption will attract companies and talent to Colorado. The representatives responded to questions on the exemption, how many other states have a similar tax exemption, and whether the exemption has proved fruitful for those states. Discussion of the value of attracting data center and associated companies to Colorado ensued.

04:11 PM

The representatives responded to questions on the investment of tax dollars in jobs that would be created by the bill.

04:14 PM

The committee discussed Amendment L.003 (Attachment G).


BILL:	HB14-1389
TIME:	04:14:37 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.003 (Attachment G). The motion passed on a vote of 9-2, with 2 members excused.
SECONDED:	DelGrosso
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Excused
	Wilson	Yes
	Labuda	No
	Court	Yes

YES: 9 NO: 2 EXC: 2 ABS: 0 FINAL ACTION: PASS

04:18 PM

Representative Pabon explained Amendment L.005 (Attachment H), which alters the bill to include data center compliance with Office of Economic Development and International Trade requirements.


BILL:	HB14-1389
TIME:	04:19:41 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.005 (Attachment H). The motion passed without objection.
SECONDED:	DelGrosso
		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

04:19 PM

The sponsors made their closing comments and the committee discussed the merits of the bill.


BILL:	HB14-1389
TIME:	04:25:23 PM
MOVED:	Pabon
MOTION:	Refer House Bill 14-1389, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-4, with 2 members excused.
SECONDED:	DelGrosso
		VOTE
	Becker	No
	DelGrosso	Yes
	Foote	No
	Joshi	Excused
	Kagan	No
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Excused
	Wilson	Yes
	Labuda	No
	Court	Yes

YES: 7 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS

04:26 PM

The committee was adjourned.