Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:04/28/2015
ATTENDANCE
Time:02:07 PM to 04:53 PM
Holbert
X
Johnston
X
Place:SCR 354
Kerr
X
Hill
X
This Meeting was called to order by
Neville T.
X
Senator Neville T.
This Report was prepared by
Kori Donaldson
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Conf 15-Advisory Committee on Governmental Accounting
HB15-1100
HB15-1234
HB15-1261
HB15-1132
SB15-274
HB15-1063
SB15-210		Refer to the Full Senate
Postponed Indefinitely
Postponed Indefinitely
Amended, Referred to the Committee of the Whole
Postponed Indefinitely
Referred to Appropriations
Referred to Appropriations
Amended, Referred to Appropriations


02:07 PM -- Confirmation Hearing: Advisory Committee on Governmental Accounting

The committee was called to order. A quorum was present. Mr. Kevin Collins, Ms. Jeanne Soderberg, and Mr. James Rae, appointees to the Advisory Committee on Governmental Accounting, came to the table. The appointment letter may be found in Attachment A. Their applications and resumes are available at the State Archives. The appointees introduced themselves and explained their interest in serving as members of the Advisory Committee. Mr. Rae addressed questions from the committee about government accountability and about reporting on pension plans.

15SenateFin0428AttachA.pdf15SenateFin0428AttachA.pdf














BILL:Confirmation Hearing: Advisory Committee on Governmental Accounting
TIME: 02:16:43 PM
MOVED:Hill
MOTION:Refer the reappointment of Kevin Collins and the appointment of Jeanne Soderberg and James Rae to the Advisory Committee on Governmental Accounting to the full Senate with a favorable recommendation and with a recommendation that it be placed on the consent calendar. The motion passed on a vote of 5-0.
SECONDED:
VOTE
Holbert
Yes
Johnston
Yes
Kerr
Yes
Hill
Yes
Neville T.
Yes
Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


02:18 PM -- HB15-1100

Senators Crowder and Ulibarri, co-prime sponsors, returned to continue the presentation of House Bill 15-1100. The bill was first heard by the committee on April 23, 2015. Under current law, 85 percent of state sales and use taxes are allocated to the Old Age Pension Fund and 15 percent to the General Fund, except that $10 million is diverted to the Older Coloradans Cash Fund. The bill increases the diversion by $4 million to a total of $14 million per year. Ms. Natalie Mullis, Legislative Council Staff, Mr. Kevin Neimond, Joint Budget Committee Staff, and Mr. Ed DeCecco, Office of Legislative Legal Services, provided background about the Old Age Pension Fund and the Older Coloradans Cash Fund. Discussion ensued on the amount of moneys deposited to and transferred from the funds and the statutory and constitutional provisions related to the administration of the funds.
























02:27 PM

Senators Crowder and Ulibarri made some closing remarks on the bill.
BILL:HB15-1100
TIME: 02:31:00 PM
MOVED:Johnston
MOTION:Refer House Bill 15-1100 to the Committee on Appropriations. The motion failed on a vote of 2-3.
SECONDED:
VOTE
Holbert
No
Johnston
Yes
Kerr
Yes
Hill
No
Neville T.
No
YES: 2 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:HB15-1100
TIME: 02:31:40 PM
MOVED:Hill
MOTION:Postpone House Bill 15-1100 indefinitely using a reversal of the previous roll call. There was no objection to the use of the reverse roll call, therefore, the bill was postponed indefinitely. The motion passed without objection.
SECONDED:
VOTE
Holbert
Johnston
Kerr
Hill
Neville T.
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection













02:33 PM -- HB15-1234

Senator Jerry Sonnenberg, prime sponsor, presented House Bill 15-1234. This bill, as amended by the House Finance Committee, creates an income tax deduction for taxpayers that lease an agricultural asset, defined as land, crops, livestock, livestock facilities, farm equipment, grain storage, or irrigation equipment, to a beginning farmer or rancher satisfying certain qualifications.

02:34 PM -- Mr. Bill Midcap, representing the Rocky Mountain Farmer's Union, testified in support of the bill.

02:36 PM -- Mr. Nick Colglazier, representing the Colorado Farm Bureau, testified in support of the bill. Mr. Colglazier addressed a question from the committee.


02:41 PM

Senator Sonnenberg made closing remarks on the bill.
BILL:HB15-1234
TIME: 02:42:50 PM
MOVED:Johnston
MOTION:Refer House Bill 15-1234 to the Committee on Appropriations. The motion failed on a vote of 2-3.
SECONDED:
VOTE
Holbert
No
Johnston
Yes
Kerr
Yes
Hill
No
Neville T.
No
YES: 2 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: FAIL

















BILL:HB15-1234
TIME: 02:43:23 PM
MOVED:Hill
MOTION:Postpone House Bill 15-1234 indefinitely using a reversal of the previous roll call. There was no objection to the use of the reverse roll call, therefore, the bill was postponed indefinitely. The motion passed without objection.
SECONDED:
VOTE
Holbert
Johnston
Kerr
Hill
Neville T.
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


02:48 PM -- HB15-1261

Senator Grantham, prime sponsor, presented House Bill 15-1261. The bill, recommended by the Joint Budget Committee and as amended by the House Finance Committee, makes changes to state law governing the amount that may be held in reserve in cash funds that collect revenue from fees. Under current law, an amount up to 16.5 percent of such a cash fund's expenditures may be retained in the fund as a target reserve, unless an alternative reserve balance is established in the Colorado constitution or in statute. Committee members received Amendment L.009 and Amendment L.010 (Attachments B and C, respectively).

15SenateFin0428AttachB.pdf15SenateFin0428AttachB.pdf 15SenateFin0428AttachC.pdf15SenateFin0428AttachC.pdf

02:50 PM -- Mr. Gary Baughman, representing the Colorado Department of Public Health and Environment, testified in opposition to the bill.

02:54 PM -- Mr. Paul Cooke, representing the Division of Fire Prevention and Control, testified about the bill and possible amendments. Mr. Cooke spoke about fees administered by his office and funds that the division would like exempted from the bill.

02:57 PM -- Ms. Heather Copp, Deputy Executive Director, Department of Revenue, testified about the bill and possible amendments. Ms. Copp discussed funds that the department would like exempted from the bill.

02:59 PM -- Mr. Ron Sloan, representing the Department of Public Safety, Colorado Bureau of Investigation, testified about the bill and possible amendments. Mr. Sloan discussed funds that the department would like exempted from the bill.








03:02 PM -- Mr. Matthew Blackmon, representing the Department of Labor and Employment, testified about the bill and about a fund that the department would like exempted from the bill.


03:04 PM

Mr. Ed DeCecco, Office of Legislative Legal Services, came to the table to answer a question raised by Mr. Blackmon about whether a particular fund is exempted from the requirements of the bill.

03:06 PM -- Mr. Paul Tauriello, Director, Division of Worker's Compensation, testified about the bill and about a possible amendment to exempt a fund from the bill.

03:10 PM -- Mr. Danny Tomlinson, representing the Department of Agriculture, testified about the bill and about a possible amendment. Mr. Tomlinson discussed the origin of various fees collected by the department and how the fees adjust over time.

03:16 PM -- Mr. Justin Rutter, representing the Department of Natural Resources, testified about the bill and about a possible amendment. Mr. Rutter discussed various funds administered by the department that it would like to be exempted from the bill.

03:17 PM -- Ms. Susan Beckman, representing the Department of Human Services, testified about the bill and about Amendment L.010 (see Attachment C). Ms. Beckman discussed various funds administered by the department that it would like to be exempted from the bill.

03:20 PM -- Mr. Jim Cole, representing the Colorado Oil and Gas Association, testified in support of Amendment L.010.


03:22 PM

Senator Grantham and Mr. DeCecco discussed Amendment L.009 and Amendment L.010.

























03:28 PM

Senator Grantham addressed questions from the committee.
BILL:HB15-1261
TIME: 03:30:58 PM
MOVED:Hill
MOTION:Adopt amendment L.009 (Attachment B). The motion passed without objection.
SECONDED:
VOTE
Holbert
Johnston
Kerr
Hill
Neville T.
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB15-1261
TIME: 03:35:43 PM
MOVED:Kerr
MOTION:Adopt amendment L.010 (Attachment C). The motion failed on a vote of 1-3.
SECONDED:
VOTE
Holbert
No
Johnston
Excused
Kerr
Yes
Hill
No
Neville T.
No
YES: 1 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB15-1261
TIME: 03:36:12 PM
MOVED:Hill
MOTION:Refer House Bill 15-1261, as amended, to the Committee of the Whole. The motion passed on a vote of 4-0.
SECONDED:
VOTE
Holbert
Yes
Johnston
Excused
Kerr
Yes
Hill
Yes
Neville T.
Yes
Final YES: 4 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


03:37 PM -- HB15-1132

Senators Hodge and Scott, co-prime sponsors, presented House Bill 15-1132. This bill creates an income tax credit for qualified improvements that increase the energy efficiency of residential property. The tax credit is based on the level of energy savings achieved. Taxpayers apply for the credit through the Colorado Energy Office.

03:40 PM -- Mr. Peter Rusin, representing the Colorado Energy Office, testified in support of the bill. Mr. Rusin responded to questions from the committee about the amount and type of tax credits available for improvements to homes of various ages.

03:44 PM -- Ms. Jeani Frickey, representing the Colorado Rural Electric Association, testified in support of the bill. Ms. Frickey addressed a question from the committee.

03:48 PM -- Mr. Todd Gamboa, representing the Building Trust LLC, testified in support of the bill. Mr. Gamboa responded to a question from the committee about why a tax credit is the best incentive to offer for residential energy efficiency improvements.

03:54 PM -- Mr. Adam Perry, representing the Platte River Power Authority, testified in support of the bill.


















03:56 PM

Senator Hodge made some closing remarks about the bill.
BILL:HB15-1132
TIME: 03:57:10 PM
MOVED:Hill
MOTION:Refer House Bill 15-1132 to the Committee on Appropriations. The motion failed on a vote of 2-3.
SECONDED:
VOTE
Holbert
No
Johnston
Yes
Kerr
Yes
Hill
No
Neville T.
No
YES: 2 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: FAIL

BILL:HB15-1132
TIME: 03:57:27 PM
MOVED:Hill
MOTION:Postpone House Bill 15-1132 indefinitely using a reversal of the previous roll call. There was no objection to the use of the reverse roll call, therefore, the bill was postponed indefinitely. The motion passed without objection.
SECONDED:
VOTE
Holbert
Johnston
Kerr
Hill
Neville T.
Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection













03:57 PM -- SB15-274

Senator Balmer, prime sponsor, presented Senate Bill 15-274, which reenacts the sales and use tax exemption for soft drinks that are consumed off premises. The exemption applies for sales that occur on or after July 1, 2016.

04:01 PM -- Mr. Chris Howes, representing the Colorado Beverage Association, testified in support of the bill. Mr. Howes distributed an informational document about the bill (Attachment D) and responded to questions from the committee.

15SenateFin0428AttachD.pdf15SenateFin0428AttachD.pdf

04:05 PM -- Mr. Mark Johnson, representing Jefferson Public Health, and Ms. Susan Motika, representing Boulder County Public Health, testified in opposition to the bill. Mr. Johnson distributed a fact sheet about the bill (Attachment E) and discussed healthy food choices. Ms. Motika spoke about the increased health care costs associated with the consumption of sugary beverages.

15SenateFin0428AttachE.pdf15SenateFin0428AttachE.pdf

04:11 PM -- Mr. Gabriel Kaplan, representing the Colorado Department of Public Health and Environment, testified in opposition to the bill. Mr. Kaplan discussed the costs associated with obesity and other health problems such as diabetes.

04:15 PM -- Mr. Grier Bailey, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill. Mr. Bailey discussed the bill's prepared fiscal note and the history of when and how the sales and use tax for soft drinks was implemented. He also responded to a question about whether cash registers would need to be reprogrammed if the bill passes in order to account for the new sales and use tax exemption.

04:22 PM -- Ms. MaryLou Chapman, representing the Rocky Mountain Food Industry Association, testified in support of the bill. Ms. Chapman discussed the history and motivation of the implementation of the sales and use tax for soft drinks.



















04:26 PM

Senator Balmer addressed questions from the committee.
BILL:SB15-274
TIME: 04:28:20 PM
MOVED:Neville T.
MOTION:Refer Senate Bill 15-274 to the Committee on Appropriations. The motion passed on a vote of 3-2.
SECONDED:
VOTE
Holbert
Yes
Johnston
No
Kerr
No
Hill
Yes
Neville T.
Yes
Final YES: 3 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


04:29 PM -- HB15-1063

Senator Balmer, prime sponsor, next presented House Bill 15-1063. The reengrossed bill establishes a framework for communications between private parties concerning patent rights. The bill prohibits bad faith communications concerning alleged infringement of a patent. The bill permits certain other communications, and establishes a cause of action for the Attorney General's Office (AGO) in the Department of Law to enforce the bill.

04:31 PM -- Ms. Leah Curtsinger, representing the Colorado Association of Commerce and Industry, testified in support of the bill.























04:37 PM

Senator Balmer addressed questions from the committee.
BILL:HB15-1063
TIME: 04:39:04 PM
MOVED:Holbert
MOTION:Refer House Bill 15-1063 to the Committee on Appropriations. The motion passed on a vote of 4-0.
SECONDED:
VOTE
Holbert
Yes
Johnston
Excused
Kerr
Yes
Hill
Yes
Neville T.
Yes
Final YES: 4 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:39 PM -- SB15-210

Senator Woods, prime sponsor, presented Senate Bill 15-210. The bill creates the Title Insurance Commission (commission) in the Division of Insurance (division) in the Department of Regulatory Agencies (DORA) to serve as an advisory body to the Commissioner of Insurance (commissioner) in matters of title insurance. Senator Wood distributed Amendment L.010 (Attachment F).

15SenateFin0428AttachF.pdf15SenateFin0428AttachF.pdf

04:43 PM -- Mr. Robert Howe, representing the Land Title Association of Colorado, testified in support of the bill. Mr. Howes discussed the need for the advisory commission created under the bill.



















04:50 PM

Senator Woods explained Amendment L.010 and made closing remarks on the bill.
BILL:SB15-210
TIME: 04:52:21 PM
MOVED:Holbert
MOTION:Adopt amendment L.010 (Attachment F). The motion passed without objection.
SECONDED:
VOTE
Holbert
Johnston
Kerr
Hill
Neville T.
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:SB15-210
TIME: 04:52:43 PM
MOVED:Holbert
MOTION:Refer Senate Bill 15-210, as amended, to the Committee on Appropriations. The motion passed on a vote of 3-1.
SECONDED:
VOTE
Holbert
Yes
Johnston
Excused
Kerr
Yes
Hill
No
Neville T.
Yes
Final YES: 3 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:53 PM

The committee adjourned.