Bill Summary for Bill Number Presentation of Draft Interim Legislation

Date: 09/22/2014

Final
BILL SUMMARY for Presentation of Draft Interim Legislation - Bill 2

EARLY CHILDHOOD AND SCHOOL READINESS LEGISLATIVE COMMISSION

Votes: View-->	Action Taken:
Move that Bill 2 be included as one of the bills t	PASS

10:54 AM -- Presentation of Draft Interim Legislation - Bill 2

Ms. Nicole Myers, OLLS, presented Bill 2 (Attachment E). The bill provides an income tax credit to early childhood education providers who hold an Early Childhood Professional Credential from the Colorado Department of Education (CDE), and meet the employment requirements of the bill. Ms. Myers discussed eligibility for the income tax credit and the allowable amount of the credit at each level of the CDE credential.

14EarlyChildhood0922AttachE.pdf

10:56 AM

Representative McCann explained Amendment 1 to the bill (Attachment F). She said that the amendment makes the tax credit non-refundable and allows eligible taxpayers to carry the credit forward for 10 years.

14EarlyChildhood0922AttachF.pdf

10:59 AM -- Ms. Kathryn Hammerbeck, representing the Early Childhood Education Association of Colorado, was asked to come to the table to respond to questions from the commission members. She discussed the income tax credit proposal. She said that the wage of those professionals who would qualify for the credit is about $10 to $12 per hour. She said that the purpose of the bill is to incentivize continuing education. She said that it is difficult to get low-wage earners to return to school and that the credit is envisioned as a financial incentive for these professionals to obtain college degrees. She talked about the proposed amendment, and said that she does not think it will be effective. She said that the goal is to provide the highest-quality, higher-educated teachers even in low-income-serving preschool programs. Commission discussion ensued. Ms. Hammerback stated that individuals must first meet the credential and employment requirements before they can qualify for the credit.

Senator Todd commented that the bill is a way to keep good people in the field working with low-income kids when these same professionals could be making more money in a privately funded school. Ms. Myers responded to questions from the commission. Ms. Hammerbeck said that the people at the highest level of credential make about $14 per hour. She said that Level III of the credential is equivalent to an Associate's degree. She said that pay rates are typically lower in rural communities.

The following person testified:

11:17 AM -- Mr. Eric Myers, representing the Colorado Department of Revenue (DOR), came to the table to respond to questions from the commission. He said that DOR is not taking an official position on the bill. He shared concerns about the provisions of the bill related to the credit's refundability. He said that refundable tax credits have been identified by the Inspector General of the U.S. Department of Treasury because many of the refundable credits are issued improperly. He said that there is potential for fraud and that controls would need to be strengthened. He suggested that an independent agency certify the recipients of the credit. Mr. Myers responded to commission member questions about the income level requirement for the credit, of which there is none, and ways to determine if the cohort of eligible people for the bill's tax credit are also accessing tax credits for low-income workers. Mr. Myers responded that DOR does not currently keep certification data and has no way of knowing if the people accessing the bill's credit are also accessing other income tax credits.

Representative McCann moved Amendment 1, but it failed for lack of a second.


BILL:	Bill 2
TIME:	11:24:55 AM
MOVED:	Todd
MOTION:	Move that Bill 2 be included as one of the bills to be forwarded to Legislative Council. The motion passed on a vote of 4-1, with one member excused.
SECONDED:	Pettersen
		VOTE
	Kefalas	Yes
	Marble	No
	McCann	Yes
	Wilson	Excused
	Todd	Yes
	Pettersen	Yes

Final YES: 4 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:26 AM

The bill will start in the House and Representative Pettersen will be the prime sponsor in the House. Senator Todd will be the prime sponsor in the Senate. Senator Kefalas will be a co-sponsor.