House Committee on Finance (04/24/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/24/2014	ATTENDANCE

Time:	12:03 PM to 01:21 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	*
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:
HB14-1374 SB14-073 SB14-046 HB14-1369		Amended, Referred to the Committee of the Whole Amended, Referred to Appropriations Referred to Appropriations Referred to Appropriations

12:03 PM -- HB14-1374

Representatives Holbert and Kraft-Tharp came to the table to present House Bill 14-1374, which was considered for action only. They distributed Amendment L.007 (Attachment A) and explained that it incorporates a sunset date to the tax exemption and makes technical changes to the bill. The representatives responded to questions on the amendment, the fiscal note for the bill, and the intent of the bill.

14HseFin0424AttachA.pdf

12:14 PM

Nicole Myers, Office of Legislative Legal Services, came to the table to discuss the drafting of the amendment and the intent of the bill. Committee discussion ensued.


BILL:	HB14-1374
TIME:	12:17:39 PM
MOVED:	Court
MOTION:	Adopt amendment L.007 (Attachment A). The motion passed without objection.
SECONDED:	Melton
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi
	Kagan
	Melton
	Pabon	Excused
	Priola	Excused
	Saine
	Swalm
	Wilson
	Labuda
	Court

YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection

12:18 PM

The representatives made their closing comments on the bill.


BILL:	HB14-1374
TIME:	12:19:22 PM
MOVED:	DelGrosso
MOTION:	Refer House Bill 14-1374, as amended, to the Committee of the Whole. The motion passed on a vote of 11-1, with 1 member excused.
SECONDED:	Saine
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Excused
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	No
	Court	Yes

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

12:20 PM -- SB14-073

Representative Gerou came to the table to present Senate Bill 14-073. She explained that the bill addresses brownfield sites, and creates an income tax credit for individuals, organizations, and "qualified entities" that perform any approved environmental remediation of contaminated property. The total amount of the credit is:

40 percent of the first $750,000 of remediation costs, and

30 percent of costs over $750,000 up to $1.5 million dollars.

The bill allows the Department of Public Health and Environment (CDPHE) to authorize $3 million in tax credits each year the credit is available. No credit shall be allowed for any costs exceeding $1.5 million on any individual project. The bill defines a qualified entity as a county, home rule county, city, town, home rule city, home rule city and county, or a private nonprofit entity. A certificate from the CDPHE verifying the project qualifies for the credit is required to claim the income tax credit. The credit may be carried forward for up to five years, or the taxpayer may choose to transfer all or a portion of the income tax credit to another taxpayer, regardless of whether the transferor received value in exchange for the credit.

Representative Gerou responded to questions on the fiscal note for the bill and the types of site that would qualify for the credit.

12:29 PM

Louis Pino, Legislative Council Staff, came to the table for questions on the fiscal note for the bill.

12:34 PM -- Eliza Schultz, representing CDPHE, spoke in favor of the bill. She summarized how the bill will benefit the state through a volunteer brownfield remediation program that is not available to superfund sites. She responded to questions on the previous state brownfields program that expired in 2010.

12:37 PM -- Jim Spaanstra, representing the Colorado Association of Commerce and Industry, spoke in favor of the bill. He stated that the bill would support economic development in and around brownfield sites. He added that the previous program was a very important tool for brownfield site redevelopment and the bill would extend this benefit for the state.

12:41 PM -- Becky Long, representing Conservation Colorado, spoke in support of the bill. She stated that the expired brownfield program had been instrumental in cleaning up projects that did not qualify as a superfund site.

12:44 PM

Representative Court distributed Amendment L.004 (Attachment B), and explained that it incorporates an expiration date to the bill. Representative Gerou and the committee discussed the amendment.

14HseFin0424AttachB.pdf


BILL:	SB14-073
TIME:	12:49:26 PM
MOVED:	Court
MOTION:	Adopt amendment L.004 (Attachment B). The motion passed on a vote of 7-6.
SECONDED:	Melton
		VOTE
	Becker	Yes
	DelGrosso	No
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	No
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:51 PM

Representative Gerou made her closing comments on the bill.


BILL:	SB14-073
TIME:	12:51:18 PM
MOVED:	Court
MOTION:	Refer Senate Bill 14-073, as amended, to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Pabon
		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: PASS

12:52 PM -- SB14-046

Representative Exum came to the table to discuss the fiscal impact of Senate Bill 14-046. He explained that the bill creates a grant program for local fire departments to invest in equipment and training that increases firefighter safety. The grant program is administered by the Division of Fire Prevention and Control (DFPC) in the Department of Public Safety. Following rulemaking, the DFPC makes grant awards to the governing body of a fire department on the basis of need. To assess the need of grant applicants, the DFPC is required to conduct a Colorado Fire Service Needs Assessment at least every other year. In addition, the DFPC must consider criteria and peer-review of applications as recommended by the Fire Service Training and Certification Advisory Board, as well as the local fire department's other efforts to finance equipment and training.

The bill creates the continuously appropriated Local Firefighter Safety and Disease Prevention Fund (the fund). Each year, for two successive fiscal years starting July 1, 2014, the Department of Local Affairs (DOLA) transfers $3.25 million in federal mineral lease (FML) revenue to the fund. The DFPC is required to make an annual report regarding the use of moneys in the fund and may expend up to three percent of the fund each year for administrative costs, including both direct and indirect costs.

12:57 PM

Representative Exum responded to questions on the source of funding for the program.

01:01 PM

Alex Schatz, Legislative Council Staff, came to the table to speak to FML revenues and how they will be appropriated under the bill. He responded to questions on whether the bill focuses funding in areas affected by oil and gas development.

01:01 PM

Kevin Bommer, Deputy Director of the Colorado Municipal League (CML), came to the table for questions. He stated that the CML is in support of the bill and spoke to how the bill is funded. Committee discussion and questioning ensued. Representative Exum responded to questions on whether the funds for the bill will be effective in ensuring firefighter safety and the types of equipment that could be provided under the bill.

01:11 PM

Bill Clayton, from Colorado Counties, Inc., spoke to the bill and stated that firefighter safety is in need of a source of funding in Colorado.

01:13 PM

Representative Exum made his closing comments on the bill and the committee discussed its merits.


BILL:	SB14-046
TIME:	01:16:41 PM
MOVED:	Court
MOTION:	Refer Senate Bill 14-046 to the Committee on Appropriations. The motion passed on a vote of 10-3.
SECONDED:	Labuda
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	No
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:17 PM -- HB14-1369

Representative Young came to the table to present House Bill 14-1369. He explained that the bill requires durable medical equipment (DME) suppliers that bill Medicare to be licensed with the Secretary of State (SOS). He discussed the fiscal implications of the bill and noted that the SOS does not have the intent of imposing an onerous fee upon DME suppliers.

01:18 PM

The committee discussed the merits of the bill.


BILL:	HB14-1369
TIME:	01:19:23 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1369 to the Committee on Appropriations. The motion passed on a vote of 9-4.
SECONDED:	Pabon
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	No
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:20 PM

The committee was adjourned.