House Committee on Finance (05/05/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	05/05/2015	ATTENDANCE

Time:	06:58 PM to 07:21 PM	Becker K.	X
		Conti	X
Place:	HCR 0112	Garnett	X
		Kagan	X
This Meeting was called to order by		Pabon	X
	Representative Court	Priola	X
		Roupe	X
This Report was prepared by		Van Winkle	X
	Damion Pechota	Wilson	X
		Foote	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB15-001 SB15-135		Postponed Indefinitely Postponed Indefinitely

06:59 PM -- SB15-001

Representative Lundeen presented Senate Bill 15-001 concerning the refunding of state revenues in excess of the state fiscal year spending limit. The bill creates a sales tax rebate and changes how money in excess of the state's constitutional revenue limit (TABOR limit) is refunded. Specifically, the bill creates a sales tax rebate equal to anticipated revenue in excess of the TABOR limit each year beginning in FY 2015-16. The rebate would be administered identically to the three-tier sales tax refund created by this bill. It would be provided to taxpayers simultaneous with any sales tax refund of excess revenue collected during the prior year and is based on the Legislative Council Staff (LCS) economic and revenue forecast published during September of the fiscal year in which the excess revenue is expected to be collected. Although the rebate is provided to taxpayers using the income tax return, the bill specifies that the rebate is a partial repayment of state sales taxes paid on transactions occurring during the first half and a partial payment in advance of state sales taxes anticipated during the second half of the fiscal year during which the rebate is made. In addition, the bill changes how money in excess of the state's constitutional revenue limit (TABOR limit) is refunded. It repeals the temporary income tax rate reduction and replaces the six-tier sales tax refund mechanism with a three-tier sales tax refund mechanism. The earned income tax credit refund mechanism is not affected. The bill does not change the administration of the sales tax refund; however, it changes the distribution of the refund. Under current law, the sales tax refund is required to be distributed among six tiers of taxpayers as it was distributed during tax year 1999. Each individual taxpayer within each of the six tiers receives the same refund amount. Under the bill, the sales tax refund is equal to a certain percentage of income. The Department of Revenue is required to calculate this percentage each year such that the estimated refund is equal to the amount required by TABOR to be refunded.

07:02 PM -- Rich Jones, representing The Bell Policy Center, spoke in opposition to the bill.


BILL:	SB15-001
TIME:	07:05:30 PM
MOVED:	Van Winkle
MOTION:	Refer Senate Bill 15-001 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:	SB15-001
TIME:	07:06:37 PM
MOVED:	Foote
MOTION:	Postpone Senate Bill 15-001 indefinitely. 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	No
	Foote	Yes
	Court	Yes

FINAL YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

07:07 PM -- SB15-135

Representative Lebsock and Representative Saine presented Senate Bill 15-135 concerning modifications to statutory provisions governing urban redevelopment affecting public bodies in connection with urban renewal projects. The bill amends statutes governing the exercise of urban renewal authority by municipalities. Provisions of the bill include: modifying the composition of the governing board of an urban renewal authority; amending requirements for municipalities that seek to adopt or substantially modify an urban renewal plan; specifying the manner in which certain excess funds are redistributed to other local taxing entities; directing that tax increment financing (TIF) allocations do not apply to taxes or mill levy increases approved by voters after TIF revenue has been allocated under an existing plan; making other changes to facilitate cooperative participation in urban renewal projects; and requiring agencies in the Governor's Office to study TIF projects and prepare a report by the end of 2015.

07:10 PM -- Mark Radtke, representing the Colorado Municipal League, spoke in favor of the bill.

Representative Lebsock presented and summarized amendment L.006 (Attachment A).

15HouseFin0505AttachA(PM).pdf


BILL:	SB15-135
TIME:	07:13:25 PM
MOVED:	Conti
MOTION:	Adopt amendment L.006 (Attachment A). The motion passed without objection.
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

Representative Lebsock presented and summarized amendment L.005 (Attachment B).

15HouseFin0505AttachB(PM).pdf


BILL:	SB15-135
TIME:	07:14:11 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.005 (Attachment B). The motion passed without objection.
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

Representative Lebsock and Representative Saine provided closing comments on the bill.


BILL:	SB15-135
TIME:	07:19:31 PM
MOVED:	Conti
MOTION:	Refer Senate Bill 15-135, as amended, to the Committee of the Whole. The motion failed on a vote of 4-7.
SECONDED:	Roupe
		VOTE
	Becker K.	No
	Conti	Yes
	Garnett	No
	Kagan	No
	Pabon	No
	Priola	No
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	No
	Court	No

YES: 4 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB15-135
TIME:	07:20:38 PM
MOVED:	Kagan
MOTION:	Postpone Senate Bill 15-135 indefinitely. The motion passed on a vote of 7-4.
SECONDED:	Court
		VOTE
	Becker K.	Yes
	Conti	No
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	No
	Van Winkle	No
	Wilson	No
	Foote	Yes
	Court	Yes

FINAL YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

07:21 PM

The committee adjourned.