House Committee on Finance (03/05/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	03/05/2014	ATTENDANCE

Time:	01:35 PM to 04:55 PM	Becker	X
		DelGrosso	X
Place:	LSB A	Foote	X
		Joshi	E
This Meeting was called to order by		Kagan	*
	Representative Court	Melton	X
		Pabon	X
This Report was prepared by		Priola	X
	Matt Kiszka	Saine	*
		Swalm	*
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB14-024 SB14-031 HB14-1173 HB14-1072 HB14-1207 HB14-1105		Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to Appropriations Amended, Referred to Appropriations Referred to Appropriations Referred to the Committee of the Whole

01:36 PM -- SB14-024

Representative Court, Chair, called the meeting to order.

Representative Scott came to the table to present Senate Bill 14-024. He explained that it is a clean-up bill, and is recommended by the Police Officers' and Firefighters' Pension Reform Commission.

01:38 PM -- Kevin Lindahl, representing the Fire and Police Pension Association (FPPA), spoke in favor of the bill. Mr. Lindahl stated that the bill makes changes in the procedures and allocation of responsibilities related to volunteer firefighter pension plans affiliated with the FPPA. He responded to questions on why the bill was needed.


BILL:	SB14-024
TIME:	01:43:37 PM
MOVED:	Melton
MOTION:	Refer Senate Bill 14-024 to the Committee of the Whole. The motion passed on a vote of 11-0, with 2 members excused.
SECONDED:	Priola
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Excused
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:43 PM -- SB14-031

The committee went into a brief recess.

01:46 PM

Representative Rosenthal came to the table to present Senate Bill 14-031. He explained that the bill modifies financial obligations and procedures related to the administration of old hire pension plans by the FPPA, and noted that it was an interim committee bill.

01:48 PM -- Kevin Lindahl, representing the FPPA, testified in favor of the bill. He responded to questions on the genesis of the bill, the specific pension plans it would impact, whether the state has any liability for unfunded plans covered by the bill, the level of autonomy of the FPPA Board, and the frequency of the actuarial review of the pension plans. Mr. Lindahl made an additional comment on the importance of the Police Officers' and Firefighters' Pension Reform Commission, which has oversight for the FPPA.


BILL:	SB14-031
TIME:	02:02:36 PM
MOVED:	Melton
MOTION:	Refer Senate Bill 14-031 to the Committee of the Whole. The motion passed on a vote of 10-0, with 3 members excused.
SECONDED:	Priola
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Excused
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Excused
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

02:04 PM -- HB14-1173

Representatives McCann and Ginal came to the table to present House Bill 14-1173. They explained that the bill targets prescription drug abuse, extends the Colorado Licensing of Controlled Substances Act within the Department of Human Services (DHS) until September 1, 2019, and implements the recommendations of the Department of Regulatory Agencies' (DORA) 2013 sunset review. Representative Ginal described the different programs and controlled substances that are covered by the act, as well as the specific changes to the program that the bill makes. They responded to questions on the proposed program fee increase, and the fiscal note for the bill.

02:15 PM -- Dave DeNovellis, Legislative Council Staff, came to the table to speak to a question on the proposed fee increase.

02:17 PM -- Bryan Jameson, representing DORA, came to the table to speak to the DHS' needs in regulating the act. He responded to questions on the fiscal note for the bill, the purpose of the program's registry, and how privacy is ensured in the registry.

02:28 PM

Representative Ginal distributed Amendment L.005 (Attachment A) to the committee and explained the changes that it makes. Jane Ritter, Office of Legislative Legal Services, came to the table to address the amendment.

14HseFin0305AttachA.pdf


BILL:	HB14-1173
TIME:	02:30:30 PM
MOVED:	Court
MOTION:	Adopt amendment L.005 The motion passed without objection.
SECONDED:	Labuda
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi	Excused
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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


BILL:	HB14-1173
TIME:	02:30:52 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1173, as amended, to the Committee on Appropriations. The motion passed on a vote of 10-0, with 3 members excused.
SECONDED:	Melton
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Excused
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Excused
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

02:32 PM -- HB14-1072

Representatives Pettersen and Exum came to the table to present House Bill 14-1072. Amendment L.012 was distributed, along with a memorandum prepared by Legislative Council Staff (Attachment B). The representatives explained that the bill, recommended by the Economic Opportunity Poverty Reduction Task Force, creates a new child care tax credit for Colorado taxpayers who have a federal adjusted gross income (FAGI) of $25,000 or less. The credit is equal to 25 percent of the taxpayer's child care expenses with a maximum amount of $500 for a single dependent or $1,000 for two or more dependents. The tax credit is refundable, which means the amount of the credit that exceeds the taxpayer's income tax liability must be refunded to the taxpayer. The taxpayer may claim the credit beginning in tax year 2014.

14HseFin0305AttachB.pdf

02:38 PM -- DeAna Jimenez, representing herself, spoke in favor of the bill. She explained the child care costs that she incurs on a regular basis, and how the tax credit would benefit her family. She responded to a question on an association she is a member of.

02:41 PM

The bill sponsors responded to questions on how the state should fund the costs of the tax credit, the fiscal note for the bill, which families will benefit from the new tax credit, the refundability of the tax credit, and how much of a refund the credit could potentially provide.

02:56 PM

The sponsors responded to further questions on the fiscal note for the bill, whether there are other child care programs in the state, how the bill might affect different individuals, and who would qualify for the credit.

03:04 PM -- Terry Scanlon, representing the Colorado Center on Law and Policy, spoke in favor of the bill. Mr. Scanlon distributed a handout summarizing how the bill would benefit the state (Attachment C), and explained that the average cost of child care can exceed the cost of tuition in school, which can be extremely challenging for families in Colorado.

14HseFin0305AttachC.pdf

03:08 PM -- Chaer Robert, representing the Colorado Center of Law and Policy, spoke in favor of the bill. Ms. Robert provided the committee with a handout (Attachment D) summarizing the benefits received by families under current and proposed law, and spoke to different child care cost scenarios. She responded to questions on how certain individuals with no tax liability could receive a tax refund, and other child care assistance programs in the state.

14HseFin0305AttachD.pdf

03:20 PM

Committee discussion of who can claim the tax credit, and under what circumstances, ensued. Ms. Robert responded to further questions on the potential sociological impacts of the bill, the scenarios she had explained to the committee. Mr. Scanlon responded to questions on data he had provided in his handout, and the return on investment of the tax credit.

03:33 PM

Committee discussion of the different individuals eligible for the tax credit, and the overall taxes paid by these individuals, ensued. Mr. Scanlon responded to a question on the property taxes paid by eligible individuals.

03:41 PM -- Marlana Wallace, representing the Colorado Fiscal Institute (CFI), and Rich Jones, representing the Bell Policy Center, spoke in favor of the bill. Written testimony was distributed to the committee by Mr Jones (Attachment E). Ms. Wallace stated that the CFI sees the bill as an effective way of helping needy individuals in the state, and as a sound economic investment in Colorado's children. Mr. Jones stated that the bill will help make childcare more affordable for certain families in the state, and responded to questions on what drives the high cost of childcare in Colorado. Ms. Wallace responded to questions on why the CFI was in support of the bill, and how the income tax credit for child care expenses is considered a tax credit, and not a welfare benefit, when an individual has no income tax liability.

14HseFin0305AttachE.pdf

04:01 PM

Committee discussion of the tax credit and who it targets ensued.

04:07 PM -- Megan Smith, representing herself, spoke in favor of the bill. She described her own personal experiences and challenges in paying for child care, and the difference that the child care tax credit would have made to her if she had had access to it.

04:11 PM -- Angela Schmitz, representing the Denver Asset Building Coalition and the Colorado Women's Bar Association, spoke in favor of the bill. Ms. Schmitz stated that she believes the bill will allow Colorado citizens to work more, and provided some context on refundable credits in the state. She responded to questions on tax liability and tax credits. Committee discussion ensued.

04:18 PM

Representative Pettersen explained the changes made by amendment L.012 (Attachment B).


BILL:	HB14-1072
TIME:	04:19:31 PM
MOVED:	Court
MOTION:	Adopt amendment L.012 The motion passed without objection.
SECONDED:	Melton
		VOTE
	Becker
	DelGrosso
	Foote
	Joshi	Excused
	Kagan
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

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

04:20 PM

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


BILL:	HB14-1072
TIME:	04:36:15 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1072, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-5, with 1 member excused.
SECONDED:	Melton
		VOTE
	Becker	Yes
	DelGrosso	No
	Foote	Yes
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

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

04:37 PM -- HB14-1207

Representative Young came to the table to present House Bill 14-1207, which he explained creates a household Medication Take-Back Program in the Colorado Department of Public Health and Environment (CDPHE).

04:40 PM -- Eliza Schultz, representing CDPHE, spoke in favor of the bill. Ms. Schultz stated that the bill codifies the program, which the CDPHE has been running for a number of years. She stated that the program costs roughly $50,000 per year to administer, and that the bill does not call for an appropriation to run the program, which is funded through gifts, grants, and donations.

04:43 PM

Dave DeNovellis came to the table to speak to the fiscal impact of the bill.


BILL:	HB14-1207
TIME:	04:43:52 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1207 to the Committee on Appropriations. The motion passed on a vote of 11-1, with 1 member excused.
SECONDED:	Swalm
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

04:48 PM -- HB14-1105

Representative Mitsch Bush presented House Bill 14-1105, and stated that the bill authorizes a governmental entity that holds a fuel tax exemption certificate to sell to or purchase gasoline or special fuel from another governmental entity that also holds a fuel tax exemption certificate. The bill clarifies that a governmental entity that sells gasoline or special fuel to another governmental entity is not required to be licensed under the provisions of current law. She responded to a question on the House Transportation Committee vote on the bill.


BILL:	HB14-1105
TIME:	04:52:16 PM
MOVED:	Kagan
MOTION:	Refer House Bill 14-1105 to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Saine
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Excused
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

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

04:54 PM

The committee was adjourned.