Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:04/22/2015
ATTENDANCE
Time:01:38 PM to 06:22 PM
Becker K.
X
Conti
X
Place:LSB A
Garnett
X
Kagan
X
This Meeting was called to order by
Pabon
*
Representative Court
Priola
X
Roupe
X
This Report was prepared by
Van Winkle
X
Katie Ruedebusch
Wilson
X
Foote
X
Court
*
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1346
HB15-1366
HB15-1258
HB15-1301
HB15-1332
HB15-1247
HB15-1236
HB15-1226		Amended, Referred to Appropriations
Amended, Referred to the Committee of the Whole
Amended, Referred to Appropriations
Amended, Referred to Appropriations
Amended, Referred to Appropriations
Amended, Referred to the Committee of the Whole
Amended, Referred to Appropriations
Referred to the Committee of the Whole

01:39 PM -- HB15-1346

Representative Foote, vice-chair, called the meeting to order. Representatives Foote and Pettersen, co-prime sponsors, introduced House Bill 15-1346. Conditional on voter approval, the bill requires that corporations filing a Colorado combined income tax return add income from affiliated corporations incorporated in tax haven jurisdictions. The bill lists jurisdictions that are considered tax havens and requires the Department of Revenue to biennially report to the finance committees in the General Assembly with an update of countries that may be considered tax havens. In addition, the bill allows corporations indirectly owned by an parent C corporation to be included as part of an affiliated groups of corporations. The money will be transferred from the General Fund to the State Education Fund. Representative Foote distributed a photo of a building in the Cayman Islands that houses over 140 affiliated companies (Attachment A). He also distributed an article from the Denver Post (Attachment B), amendment L.001 (Attachment C), amendment L.002 (Attachment D), and amendment L.004 (Attachment E).

15HouseFin0422AttachA.pdf15HouseFin0422AttachA.pdf 15HouseFin0422AttachB.pdf15HouseFin0422AttachB.pdf 15HouseFin0422AttachC.pdf15HouseFin0422AttachC.pdf

15HouseFin0422AttachD.pdf15HouseFin0422AttachD.pdf 15HouseFin0422AttachE.pdf15HouseFin0422AttachE.pdf






01:50 PM -- Mr. Brian Tanner, representing the Colorado Education Association, testified in support of the bill. He discussed how the bill will help reduce the negative factor and help fund Colorado schools.

01:58 PM -- Mr. Tyler Rauert, representing the World Trade Center Denver, testified in opposition to the bill. He noted that the bill could create a flight of foreign investment out of Colorado. In response to committee questions, he discussed federal and other state initiatives regarding corporate tax havens.

02:07 PM -- Mr. Danny Katz, representing the Colorado Public Interest Research Group, testified in support of the bill. He discussed the advantages of the bill to small businesses. He distributed a handout (Attachment F) to the committee.

15HouseFin0422AttachF.pdf15HouseFin0422AttachF.pdf

02:14 PM -- Ms. Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), testified in opposition to the bill. She discussed the possible effects of the bill on the Colorado economy.

02:15 PM -- Ms. Rhonda Sparlin, representing the CACI Tax Council, testified in opposition to the bill. She spoke about the tax consequences of the bill. She responded to numerous questions from the committee regarding corporate taxes in Colorado.

02:31 PM -- Mr. Richard Eidlin, representing the American Sustainable Business Council, testified in support of the bill. He discussed how tax havens disadvantage local small businesses.

02:36 PM -- Mr. Phillip Horowitz, representing the Colorado Department of Revenue (DOR), came to the table to answer questions.

02:39 PM -- Mr. Patick Boyle, representing the Colorado Competitive Council and Greater Denver Chamber of Commerce, testified in opposition to the bill. He discussed how the bill title is misleading for the voters.
02:43 PM -- Ms. Heather O'Connor, representing Colorado Fair Share, testified in support of the bill. She discussed the opinions and personal experiences of several Colorado small business taxpayers.

02:50 PM -- Ms. Cardine Gasteal, representing the Colorado Progressive Coalition, testified in support of the bill. She discussed how the bill creates tax fairness in Colorado.

02:56 PM -- Mr. Dan Shannon, representing Gary's Auto Service, testified in support of the bill. He noted his personal experience with running a small business in Colorado. He discussed how this bill will bring tax fairness to small businesses in Colorado.

03:06 PM -- Mr. Horowitz, representing DOR, returned to the table to answer committee questions. He discussed corporations doing business in Colorado and other tax issues. Committee discussion ensued.

03:20 PM -- Mr. Louis Pino, Legislative Council Staff, came to the table to answer questions regarding the fiscal note.









03:26 PM

Representatives Foote and Pettersen discussed committee questions that arose during witness testimony. Committee discussion ensued.
BILL:HB15-1346
TIME: 03:43:07 PM
MOVED:Foote
MOTION:Adopt amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:Garnett
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:HB15-1346
TIME: 03:43:48 PM
MOVED:Foote
MOTION:Adopt amendment L.002 (Attachment D) 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

BILL:HB15-1346
TIME: 03:44:27 PM
MOVED:Foote
MOTION:Adopt amendment L.004 (Attachment E). The motion passed without objection.
SECONDED:Garnett
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








03:44 PM

Representative Priola distributed amendment L.006 (Attachment G) and amendment L.007 (Attachment H). Representative Court ruled that both amendments do not fit under the bill title.

15HouseFin0422AttachG.pdf15HouseFin0422AttachG.pdf 15HouseFin0422AttachH.pdf15HouseFin0422AttachH.pdf
BILL:HB15-1346
TIME: 03:48:44 PM
MOVED:Foote
MOTION:Refer House Bill 15-1346, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:Court
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


03:54 PM -- HB15-1366

Representative Pabon and Willett, co-prime sponsors, introduced House Bill 15-1366. The bill changes the job growth incentive tax credit for taxpayers who enter into a partnership with a state institution of higher education. In particular, this bill allows the credit to be refundable under certain conditions and relaxes the requirements to qualify for the credit. Representative Pabon noted that this bill strives to connect state institutions of higher education and new start-up companies. Representative Willett noted how this bill will help higher education institutions and economically disadvantaged areas in Colorado.

04:07 PM -- Mr. Steve VanNurden, representing the University of Colorado and the Fitzsimons Redevelopment Authority, testified in support of the bill. He discussed the benefits of the bill to research institutions and start-up companies.

04:19 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in opposition to the bill. She noted that it is her opinion that the tax credit is a reward for businesses that work with higher education institutions.




BILL:HB15-1366
TIME: 04:23:42 PM
MOVED:Court
MOTION:Adopt amendment L.002 (Amendment J). The motion passed without objection.
15HouseFin0422AttachJ.pdf15HouseFin0422AttachJ.pdf
SECONDED:Roupe
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:HB15-1366
TIME: 04:28:07 PM
MOVED:Pabon
MOTION:Adopt amendment L.001 (Attachment I). The motion passed without objection.
15HouseFin0422AttachI.pdf15HouseFin0422AttachI.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































04:29 PM

Esther van Mourik, Office of Legislative Legal Services, came to the table to discuss what types of higher education institutions qualify under this bill.
BILL:HB15-1366
TIME: 04:30:44 PM
MOVED:Pabon
MOTION:Adopt amendment L.003 (Attachment K). The motion passed without objection.
15HouseFin0422AttachK.pdf15HouseFin0422AttachK.pdf
SECONDED:Kagan
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:HB15-1366
TIME: 04:33:18 PM
MOVED:Pabon
MOTION:Refer House Bill 15-1366, as amended, to the Committee of the Whole. The motion passed on a vote of 9-2.
SECONDED:
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
No
Pabon
Yes
Priola
Yes
Roupe
Yes
Van Winkle
Yes
Wilson
Yes
Foote
No
Court
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

































04:39 PM -- HB15-1258

Representatives Winter and Salazar returned to the committee to present House Bill 15-1258. The bill was previously heard on April 16, 2015. Representatives Winter and Salazar distributed amendment L.005 (Attachment L).

15HouseFin0422AttachL.pdf15HouseFin0422AttachL.pdf
BILL:HB15-1258
TIME: 04:41:06 PM
MOVED:Court
MOTION:Adopt amendment L.005 (Attachment L). The motion passed on a vote of 7-4.
SECONDED:Roupe
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
Yes
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS




















BILL:HB15-1258
TIME: 04:46:45 PM
MOVED:Court
MOTION:Refer House Bill 15-1258, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-4.
SECONDED:Garnett
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
Yes
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


04:49 PM -- HB15-1301

Representative Williams, sponsor, introduced House Bill 15-1309. The bill creates a credit against tobacco excise tax equal to Colorado excise taxes paid on tobacco products other than cigarettes sold by a distributor to an out-of-state consumer.

04:54 PM -- Mr. John Vecchiarelli, representing the Colorado Department of Revenue (DOR), came to the table to answer questions regarding the tax implications of the bill.

05:01 PM -- Mr. Kevin Bronski, representing DOR, came to the table to discuss cigarette excise taxes. Representative Williams discussed other states that provide an excise tax exemption.


















BILL:HB15-1301
TIME: 05:03:59 PM
MOVED:Court
MOTION:Adopt conceptual amendment to change the reference to the "Business Affairs & Labor Committee" to "Finance Committee" The motion passed without objection.
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:HB15-1301
TIME: 05:05:23 PM
MOVED:Court
MOTION:Adopt amendment L.002 (Attachment M). The motion passed without objection.
15HouseFin0422AttachM.pdf15HouseFin0422AttachM.pdf
SECONDED:Kagan
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




05:07 PM -- Mr. Vecchiarelli, representing DOR, returned to the table to answer committee questions.
BILL:HB15-1301
TIME: 05:08:43 PM
MOVED:Priola
MOTION:Refer House Bill 15-1301, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:Garnett
VOTE
Becker K.
No
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Van Winkle
Yes
Wilson
Yes
Foote
Yes
Court
No
FINAL YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


05:10 PM -- HB15-1332

Representative Pabon, sponsor, introduced House Bill 15-1332. The bill, as amended by the House Transportation and Energy Committee, creates a state income tax credit for a taxpayer who purchases and installs the equipment necessary to generate electricity using hydroelectricity or wind resources. To qualify, the taxpayer must be an end-user electric customer of a cooperative electric association or municipal electric utility and production must be located on the taxpayer's side of the meter.

05:23 PM -- Mr. Mike Bergey, representing the Distributed Wind Energy Association, testified in support of the bill. He discussed how this bill would benefit rural energy investment. In response to a committee question, he discussed the success of similar programs in other states.

05:33 PM -- Mr. Louis Pino, Legislative Council Staff, came to the table to answer questions regarding amendment L.002's effect on the fiscal note.













BILL:HB15-1332
TIME: 05:36:15 PM
MOVED:Pabon
MOTION:Adopt amendment L.002 (Attachment N). The motion passed without objection.
15HouseFin0422AttachN.pdf15HouseFin0422AttachN.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:HB15-1332
TIME: 05:48:19 PM
MOVED:Pabon
MOTION:Refer House Bill 15-1332, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:Garnett
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
No
Van Winkle
No
Wilson
Yes
Foote
Yes
Court
No
YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


05:50 PM -- HB15-1247

Representative Saine returned to the committee to present House Bill 15-1247. The bill was previously heard on March 25, 2015. The committee had previously adopted amendment L.001. Representative Saine distributed amendment L.003 (Attachment P) and amendment L.004 (Attachment O). She discussed the changes made to the bill by both amendments.

15HouseFin0422AttachP.pdf 15HouseFin0422AttachO.pdf15HouseFin0422AttachO.pdf


















BILL:HB15-1247
TIME: 05:52:08 PM
MOVED:Priola
MOTION:Adopt amendment L.003 (Attachment P) The motion passed without objection.
SECONDED:Wilson
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:HB15-1247
TIME: 05:55:25 PM
MOVED:Priola
MOTION:Adopt amendment L.004 (Attachment O). The motion passed without objection.
SECONDED:Wilson
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:HB15-1247
TIME: 05:56:57 PM
MOVED:Priola
MOTION:Refer House Bill 15-1247, as amended, to the Committee on Whole. The motion passed on a vote of 11-0.
SECONDED:Becker K.
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


06:00 PM -- HB15-1236

Representative Winter returned to the committee to present House Bill 15-1236. The bill was previously heard on April 1, 2015. Representative Winter distributed amendment L. 006 (Attachment Q), amendment L.007 (Attachment R), and a fiscal note memorandum (Attachment S).

15HouseFin0422AttachQ.pdf15HouseFin0422AttachQ.pdf 15HouseFin0422AttachR.pdf15HouseFin0422AttachR.pdf

15HouseFin0422AttachS.pdf15HouseFin0422AttachS.pdf

















06:06 PM -- Mr. Greg Sobetski, Legislative Council Staff, came to the table to discuss the fiscal note memorandum.
BILL:HB15-1236
TIME: 06:08:13 PM
MOVED:Foote
MOTION:Adopt amendment L.006 (Attachment Q). The motion passed without objection.
SECONDED:Garnett
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:HB15-1236
TIME: 06:08:39 PM
MOVED:Foote
MOTION:Adopt amendment L.007 (Attachment R) The motion passed without objection.
SECONDED:Becker K.
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






02:33 PM

Representative Priola requested to be excused from the vote pursuant to House Rule 21(c).
BILL:HB15-1236
TIME: 06:09:05 PM
MOVED:Becker K.
MOTION:Refer House Bill 15-1236, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-3.
SECONDED:Garnett
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
Roupe
No
Van Winkle
No
Wilson
Yes
Foote
Yes
Court
Yes
Final YES: 7 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS




























06:12 PM -- HB15-1226

Representative Becker, K., sponsor, introduced House Bill 15-1226. The bill, as amended by the House Public Health and Human Services Committee, creates a stakeholder group, administered through the Department of Public Health and Environment, to study and report on retail food establishment fees.
BILL:HB15-1226
TIME: 06:19:25 PM
MOVED:Becker K.
MOTION:Refer House Bill 15-1226 to the Committee of the Whole. The motion passed on a vote of 9-2.
SECONDED:Pabon
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
Yes
Van Winkle
No
Wilson
Yes
Foote
Yes
Court
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


06:22 PM

The committee adjourned.