Date: 03/11/2014

Final
BILL SUMMARY for HB14-1285

HOUSE COMMITTEE ON BUSINESS, LABOR, ECONOMIC, & WORKFORCE DEVELOPMENT

Votes: View--> Action Taken:
Adopt amendment L.001. The motion passed without o
Adopt amendment L.003. The motion failed on a vote
Adopt amendment L.004. The motion failed on a vote
Refer House Bill 14-1285, as amended, to the Commi
FAIL
FAIL
PASS



01:49 PM -- HB 14-1285

Representative Ryden presented House Bill 14-1285, concerning a requirement that a professional tax preparer provide certain disclosures to a client when preparing tax documents for the client. This bill amends the Colorado Consumer Protection Act (CCPA) to include the Colorado Taxpayer Protection Act. Under the bill, the CCPA requires a disclosure by any person paid to complete all or substantially all of an income tax return or a claim for an income tax refund (a tax preparer). The disclosure is provided on a form produced and posted by the Department of Revenue (DOR) on its website, and must be signed by the tax preparer's client. Under the bill's CCPA provisions, violations of disclosure requirements constitute a deceptive trade practice, with civil penalties of up to $50 (or $100, if the violation is against an elderly person) for each client that did not receive a disclosure or provide a signature on the form. Civil penalties are deposited in the General Fund and may not exceed $25,000 for any one tax preparer. The bill also establishes criminal penalties if a tax preparer provides fraudulent information on a disclosure form. For each client receiving such fraudulent information, the tax preparer commits a class 2 misdemeanor.

Representative Ryden distributed Amendment L.001 (Attachment B) and Representative Holbert distributed Amendment L.003 (Attachment C) to the committee. Representative Ryden responded to questions from the committee about tax returns prepared in state for out-of-state individuals, online form capabilities, the need for the bill, penalties prescribed under the bill, and the bill's relationship to federal law.

140311 AttachB.pdf140311 AttachB.pdf140311 AttachC.pdf140311 AttachC.pdf

02:00 PM

Representative Ryden continued to respond to questions from the committee.

The following individuals testified on the bill:

02:02 PM -- Andrew Morehead, representing Public Accountants Society of Colorado, testified in opposition to the bill. Mr. Morehead stated his association's concern that this bill is a solution in search of a problem and discussed the consumer protections already in place in the state. Mr. Morehead responded to questions from the committee.

02:10 PM

Representative Holbert dialogued with the witness about the amendments as they pertained to Mr. Morehead's testimony. Mr. Morehead stated that his organization is still in opposition to the bill if it is amended. The committee continued to ask questions of the witness.

02:20 PM -- Patrick Pratt, representing the South Metro Denver Chamber of Commerce, testified in opposition to the bill. Mr. Pratt discussed concerns of member CPA firms and the chamber's legislative committee. He stated that his organization would be opposed to the bill as amended. Mr. Pratt responded to questions from the committee.

02:30 PM -- Mary Medley, representing the Colorado Society of Certified Public Accountants, testified in opposition to the bill, but neutrally as amended by Amendment L.001. Ms. Medley discussed the standards of the State Board of Accountancy.

02:34 PM -- Ali Mickelson, representing the Colorado Fiscal Institute, testified in support of the bill. Ms. Mickelson stated that a person's hair stylist has more regulation than their tax preparer. She discussed studies related to tax preparation fraud. She stated that it was a common-sense bill and responded to questions from the committee.

02:44 PM

Ms. Mickelson continued to respond to questions from the committee.

02:53 PM -- Laurie Morris, representing Tax Help Colorado, testified in support of the bill. Ms. Morris discussed the work of her organization and shared clients' anecdotes about abuses by paid tax preparers. She said that immigrant populations are often targeted by bad actors.

03:03 PM

Ms. Morris continued to respond to questions from the committee.

03:08 PM -- Bridget Kaminetsky, representing 9-to-5, testified in support of the bill. Ms. Kaminetsky related anecdotes from her organization's membership related to tax preparation abuses.

03:13 PM -- Frank Tapy, representing Together Colorado, testified in support of the bill. Mr. Tapy discussed his organization's support for the bill and state that the five disclosures proposed in the bill are reasonable and will help protect taxpayers.

03:15 PM -- George Awuor, representing The Bell Policy Center, testified in support of the bill. Mr. Awuor distributed a copy of his testimony (Attachment D).

140311 AttachD.pdf140311 AttachD.pdf

03:20 PM -- Jennifer Benda, representing the Colorado Bar Association (CBA), testified neutrally on the bill. She stated that the CBA would support the bill as amended by Amendment L.001. She discussed the rationale behind attorney exemption from regulation.

03:22 PM -- Kevin Bronski, representing DOR, came to the table to respond to questions from the committee.

03:25 PM

The committee entered the amendment phase. Representative Ryden discussed Amendment L.001. Representative Holbert discussed Amendment L.003. Representative Holbert introduced and discussed Amendment L.004 (Attachment E).

140311 AttachE.pdf140311 AttachE.pdf
BILL:HB14-1285
TIME: 03:25:12 PM
MOVED:Ryden
MOTION:Adopt amendment L.001. The motion passed without objection.
SECONDED:Holbert
VOTE
Exum
Hamner
Holbert
Navarro
Nordberg
Rosenthal
Ryden
Szabo
Wright
Kraft-Tharp
Williams
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION:

BILL:HB14-1285
TIME: 03:25:45 PM
MOVED:Holbert
MOTION:Adopt amendment L.003. The motion failed on a vote of 5-6.
SECONDED:Nordberg
VOTE
Exum
No
Hamner
No
Holbert
Yes
Navarro
Yes
Nordberg
Yes
Rosenthal
No
Ryden
No
Szabo
Yes
Wright
Yes
Kraft-Tharp
No
Williams
No
YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB14-1285
TIME: 03:28:49 PM
MOVED:Holbert
MOTION:Adopt amendment L.004. The motion failed on a vote of 5-6.
SECONDED:Wright
VOTE
Exum
No
Hamner
No
Holbert
Yes
Navarro
Yes
Nordberg
Yes
Rosenthal
No
Ryden
No
Szabo
Yes
Wright
Yes
Kraft-Tharp
No
Williams
No
YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL



03:36 PM

Representative Ryden delivered closing remarks.

BILL:HB14-1285
TIME: 03:37:03 PM
MOVED:Ryden
MOTION:Refer House Bill 14-1285, as amended, to the Committee of the Whole. The motion passed on a vote of 6-5.
SECONDED:Kraft-Tharp
VOTE
Exum
Yes
Hamner
Yes
Holbert
No
Navarro
No
Nordberg
No
Rosenthal
Yes
Ryden
Yes
Szabo
No
Wright
No
Kraft-Tharp
Yes
Williams
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS




03:39 PM

The committee adjourned.