Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:03/11/2015
ATTENDANCE
Time:01:33 PM to 06:03 PM
Becker K.
X
Conti
*
Place:LSB A
Garnett
X
Kagan
*
This Meeting was called to order by
Pabon
X
Representative Court
Priola
*
Roupe
X
This Report was prepared by
Van Winkle
X
Katie Ruedebusch
Wilson
*
Foote
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1245
HB15-1205
HB15-1143
HB15-1227		Referred to the Committee of the Whole
Amended, Referred to Appropriations
Postponed Indefinitely
Amended, Referred to Appropriations


01:34 PM -- HB15-1245

Representative Vigil, sponsor, introduced House Bill 15-1245. The bill allows the State Board of Land Commissioners (state land board) to spend up to $1 million from the Investment and Development Fund for certain asset maintenance purposes. Representative Vigil discussed the current appropriation for the state land board and their need for maintenance funds.

01:37 PM -- Mr. Bill Ryan, representing the state land board, testified in support of the bill. He noted that the state land board owns several farm and ranch assets that include fences and barns. He stated that the state land board needs funds from the existing Investment and Development Fund to keep up with maintenance on the lands it oversees.

01:44 PM -- Mr. Tobin Follenweider, representing the state land board, came to the table to answer questions regarding the board's budget. He discussed the details of the board's budget and their various funds.

01:52 PM -- Mr. John Knapp, representing himself, testified in support of the bill. He discussed the drought in Colorado and its effects on the land.

01:54 PM -- Mr. Bruce Caughey, representing Colorado Association of School Executives (CASE) and Children's Land Alliance Supporting Schools (CLASS), testified in support of the bill. He discussed school trust lands.








01:55 PM -- Mr. Ryan returned to the table to answer questions regarding the determination of the $1 million figure. He stated the figure was determined by an analysis of current improvements needed along with incorporating an average depreciation schedule. He noted the state land board's increased emphasis on stewardship.
BILL:HB15-1245
TIME: 02:02:30 PM
MOVED:Court
MOTION:Refer House Bill 15-1245 to the Committee of the Whole. The motion passed on a vote of 10-1.
SECONDED:Becker K.
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Van Winkle
No
Wilson
Yes
Foote
Yes
Court
Yes
Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


02:09 PM -- HB15-1205

Representative Becker, K, co-prime sponsor, introduced House Bill 15-1205. The bill creates the Tax Expenditure Evaluation Committee (committee), a year-round joint committee of the General Assembly. The committee is responsible for reviewing evaluations of state tax expenditures to be prepared by the Office of the State Auditor (OSA) or its contractor, and for making recommendations or authoring legislation regarding improvements to the state's administration of tax expenditures. Representative Becker, K. discussed the state's budget and the need for a review of prior tax expenditures. She noted the need for a non-partisan review process using the expertise of OSA. Representative Becker distributed amendment L.005 (Attachment A).

15HouseFin0311AttachA.pdf15HouseFin0311AttachA.pdf

Representative Saine, co-prime sponsor, spoke to the bill. She noted the benefits of a non-partisan review process. She stated the bill aims to make sure every tax expenditure is still needed and doing its job. She noted amendment L.005 reduces the fiscal note.









02:21 PM -- Mr. Robert Zahrachih, representing the Pew Charitable Trust, testified in support of the bill. He discussed how other states review economic development projects and tax expenditures. He stated that reviews provide independent and reliable data to help make tax expenditures work better for the state and its taxpayers. He stated the bill improves the effectiveness of tax expenditures. In response to committee questions, he discussed methodologies of evaluating tax expenditures.

02:32 PM -- Mr. Tony Gagliardi representing the National Federation of Independent Business (NFIB), testified in support of the bill. He noted that while NFIB members disagree on the policies behind tax expenditures, they fully support the study of tax expenditures.

02:38 PM -- Mr. Patrick Boyle, representing the Colorado Competitive Council, testified in support of the bill. He stated the organization is supportive of the tax expenditure committee, but is concerned that tax expenditures for individual taxpayers will not be evaluated. He discussed the Gallagher Amendment and property taxes in Colorado. He noted that a review could serve as useful guidance in assessing the value of tax expenditures.
02:45 PM -- Representatives Becker, K and Saine discussed the benefits of studying tax expenditures in conjunction with other state laws and the Colorado State Constitution.

03:01 PM -- Mr. Charles Ward, representing the Denver Metro Chamber of Commerce (chamber), took a neutral position on the bill. He discussed the mission of the chamber and that this bill could help attract, retain, and grow Colorado businesses.

03:06 PM -- Mr. George Awuor, representing the Bell Policy Center, testified in support of the bill. He discussed the importance of reviewing tax expenditures to make sure they are achieving their intended goals.

03:09 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in support of the bill. She noted the value of reviewing state tax expenditures and discussed the use of tax expenditures as public policy.


























BILL:HB15-1205
TIME: 03:16:32 PM
MOVED:Becker K.
MOTION:Adopt amendment L.001 (Attachment B). The motion passed without objection.
15HouseFin0311AttachB.pdf15HouseFin0311AttachB.pdf
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




























BILL:HB15-1205
TIME: 03:17:15 PM
MOVED:Becker K.
MOTION:Adopt amendment L.002 (Attachment C). The motion passed without objection.
15HouseFin0311AttachC.pdf15HouseFin0311AttachC.pdf
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




























BILL:HB15-1205
TIME: 03:22:33 PM
MOVED:Becker K.
MOTION:Adopt amendment L.005 (Attachment A). The motion passed without objection.
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


03:24 PM -- Ms. Diane Ray, Colorado State Auditor, came to the table to answer a question.
BILL:HB15-1205
TIME: 03:26:45 PM
MOVED:Becker K.
MOTION:Refer House Bill 15-1205, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:Conti
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Van Winkle
Yes
Wilson
Yes
Foote
Yes
Court
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS






03:29 PM -- HB15-1143

Representative Conti, sponsor, introduced House Bill 15-1143. As amended by the House Health, Insurance, and Environment Committee, the bill provides a state income tax credit for up to $3,000 per year for out-of-pocket costs for durable medical equipment, telehealth equipment, home modifications, or home health care services incurred by a taxpayer who is 75 years of age or older. Representative Conti distributed handouts to the committee (Attachments D, E, and F). She noted the aging population in Colorado and discussed their care needs. She stated that keeping people in their homes can save the state money. She also discussed the fiscal notes and other fiscal impacts of the bill.

15HouseFin0311AttachD.pdf15HouseFin0311AttachD.pdf 15HouseFin0311AttachE.pdf15HouseFin0311AttachE.pdf

15HouseFin0311AttachF.pdf15HouseFin0311AttachF.pdf

03:32 PM -- Ms. Arlene Miles, representing Colorado Health Care Association, testified in support of the bill. She stated the bill creates incentives for people to stay in their homes instead of living in nursing facilities. She discussed the financial burdens of seniors in Colorado.

03:37 PM -- Mr. John Baumgarten, representing Virtual Care Works, testified in support of the bill. He spoke about his company's ability to provide home health care medical equipment. He discussed the savings benefits of persons staying in their homes instead of utilizing the emergency room or other services.

03:43 PM -- Mr. Corky Kyle, representing the Colorado Assisted Living Association, testified in support of the bill. He discussed the growing need for services and associated costs for seniors in Colorado.

03:46 PM -- Ms. Diane Protipapa, representing the Alzheimer's Association, testified in support of the bill. She discussed the benefits of keeping people in their homes. She noted that there is a wait list for people waiting to get into cognitive assisted living.

03:50 PM -- Ms. Ellen Caruso, representing Home Care Association of Colorado, testified in support of the bill. She discussed the benefits of the bill to seniors in Colorado.

03:51 PM -- Ms. Betsy Murray, representing Accessible Systems, testified in support the bill. She discussed the personal experiences of people who would benefit from this bill.

03:52 PM -- Mr. Ed Shackelford, representing the Colorado Senior Lobby, testified in support of the bill. He discussed the rising costs of senior care in Colorado. He also discussed the benefits of keeping people in their homes longer.

04:05 PM -- Ms. Natalie Mullis, Legislative Council Staff, came to the table to answer questions regarding the fiscal note.









04:09 PM -- Mr. Kevin Bronski, representing the Colorado Department of Revenue (DOR), came to the table to discuss the FTE numbers in the fiscal note. He discussed the hiring needs of DOR.

04:14 PM -- Mr. John Vecchiarelli, representing DOR, came to the table to discuss programming costs. He noted that the whole programming system at DOR is contracted.
BILL:HB15-1143
TIME: 04:20:19 PM
MOVED:Conti
MOTION:Adopt amendment L.002 (Attachment G). The motion passed without objection.
15HouseFin0311AttachG.pdf15HouseFin0311AttachG.pdf
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection






















BILL:HB15-1143
TIME: 04:21:04 PM
MOVED:Conti
MOTION:Refer House Bill 15-1143, as amended, to the Committee on Appropriations. The motion failed on a vote of 5-6.
SECONDED:Priola
VOTE
Becker K.
No
Conti
Yes
Garnett
No
Kagan
No
Pabon
No
Priola
Yes
Roupe
Yes
Van Winkle
Yes
Wilson
Yes
Foote
No
Court
No
YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:HB15-1143
TIME: 04:27:21 PM
MOVED:Court
MOTION:Postpone House Bill 15-1143 indefinitely. The motion passed on a vote of 6-5.
SECONDED:Foote
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
No
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS







04:28 PM -- HB15-1227

Representative Becker, K, sponsor, introduced House Bill 15-1227. The bill creates a state income tax credit for employers that help qualified employees repay their student loans. The employee must have earned a bachelor or an associate's degree in science, technology, engineering, or mathematics (STEM) or a vocational certificate related to industry, manufacturing, or information technology at a Colorado higher education institution after 2020. The bill requires that the employee be retained for one year and be paid less than $60,000 per year in order for an employer to qualify for the credit. Representative Becker, K. noted that the intent of the bill is to help Colorado graduates stay in Colorado. She noted that the bill helps Colorado businesses and Colorado higher education institutions attract and retain valuable talent. She spoke about differences between the federal ordinary business expense tax credit and the tax credit addressed by the bill. Committee discussion ensued regarding higher education funding in Colorado, student loan debt, and specific aspects of the bill.

04:55 PM -- Ms. Fiona Arnold, representing the Colorado Office of Economic Development and International Trade (OEDIT), testified in support of the bill. She discussed STEM workforce issues in Colorado. She noted that the bill also helps employers seeking students in trade and vocational fields.

05:07 PM -- Mr. Ken Jensen, representing OEDIT, came to the table to answer questions. He discussed the process for determining the allocation of funds if the cap is reached.

05:08 PM -- Ms. Lisa Severy, representing the University of Colorado, testified in support of the bill. She discussed how the bill helps keep STEM graduates in Colorado. She noted STEM graduates typically have more student loan debt due to differential tuition and lab fees.

05:17 PM -- Mr. Kevin McCasky, representing the Jefferson County Economic Development Corporation and Jefferson County Business Lobby, testified in support of the bill. He noted the benefits of the bill to businesses, employers, and employees in Jefferson County.

05:19 PM -- Mr. Noel Ginsberg, representing the Colorado Advanced Manufacturing Alliance and Intertech Medical, testified in support of the bill. He discussed the workforce development aspects of the bill. He views the bill as being a demand-driven bill that promotes technical education.

05:30 PM -- Mr. Jeff Weist, representing the Colorado Competitive Council and the Denver Metro Chamber of Commerce, testified in support of bill. He noted the workforce development benefits of the bill.

05:35 PM -- Mr. Ken Jensen returned the table to answer questions regarding the certification of businesses in the proposed program and a proposed lottery. He also discussed the bill's limits and the waiver process.
















BILL:HB15-1227
TIME: 05:41:43 PM
MOVED:Becker K.
MOTION:Adopt amendment L.001 (Attachment H). The motion passed without objection.
15HouseFin0311AttachH.pdf15HouseFin0311AttachH.pdf
SECONDED:Foote
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




























BILL:HB15-1227
TIME: 05:42:13 PM
MOVED:Kagan
MOTION:Adopt amendment L.003 (Attachment I). The motion passed without objection.
15HouseFin0311AttachI.pdf15HouseFin0311AttachI.pdf
SECONDED:Pabon
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection






























05:45 PM -- Committee discussion ensued.
BILL:HB15-1227
TIME: 06:00:18 PM
MOVED:Becker K.
MOTION:Refer House Bill 15-1227, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:Roupe
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


06:03 PM

The committee adjourned.