· limiting the imposition of the tax on LPG so that, in most instances, the tax is levied when LPG is placed in a motor vehicle's fuel tank, instead of when the LPG is acquired, sold, offered for sale, or used for any purpose whatsoever;

· requiring a distributor that places LPG in a fuel tank to pay the tax or, if none, requiring a nondistributor user to pay it;

· designating the operators of private commercial fleets that use LPG as distributors where no other distribution contract is in place;

· requiring a distributor that uses LPG to propel a cargo tank motor vehicle to pay the tax on the LPG used for this purpose, based on the mileage traveled by the vehicle;

· assessing the tax on the volume of net gallons, rather than gross gallons, of LPG;

· eliminating the 2 percent allowance for LPG lost in transit or handling;

· eliminating the minimum amount, currently $25,000, of a surety bond that an LPG distributor may deposit with the Department of Revenue (DOR) in lieu of evidence of a savings account, deposit, or certificate of deposit; and

· prohibiting the DOR from collecting any penalties or interest related to the tax on LPG sold in calendar years 2014 and 2015.

03:15 PM -- Mark Larson, representing the Colorado Wyoming Petroleum Marketers Association, spoke in favor of the bill. He said that the bill will help align statute with the original legislative intent of HB 13-1110, and that it addresses a number of issues with the taxation of LPG that were created by that bill.

03:22 PM -- Charles Brown, representing the Colorado Propane Gas Association, spoke in favor of the bill. He said that HB 13-1110 created some unintended consequences for the propane industry and that only 5 percent of all propane consumed is used in automobiles. He responded to a question on technological changes within industries that utilize propane.

03:25 PM -- Marshal Youngland, representing the Colorado Propane Gas Association, spoke in favor of the bill. He thanked the DOR for working with the association on the drafting of the legislation.

03:26 PM -- Cabell Hodge, representing the Colorado Energy Office, spoke in favor of the bill.

03:28 PM

Representative Becker discussed the impact of the bill on state revenue. Greg Sobetski, Legislative Council Staff, came to the table to discuss the fiscal impact of the bill. He responded to questions on the amount of tax revenue that the state would lose if the bill passes, how many gallons of LPG are used by automobiles out of the total state consumption of LPG, and how the use of LPG will be confirmed by the DOR.

03:35 PM

Ed DeCecco, Office of Legislative Legal Services, came to the table and responded to questions on the compatibility of the incrementally increasing nature of the excise tax with the Taxpayer Bill of Rights.

03:37 PM

Representative Becker explained Amendment L.001 (Attachment A), which narrows the definition of an LPG distributor under the bill and provides companies with the opportunity to opt out of being treated as a distributor if they are not one.

150304 AttachA.pdf

BILL:	HB15-1228
TIME:	03:37:17 PM
MOVED:	Becker J.
MOTION:	Adopt amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Nordberg
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:38 PM

Representative Becker distributed Amendment L.002 (Attachment B), and explained that it requires distributors to report the mileage on vehicles that deliver propane.

150304 AttachB.pdf

BILL:	HB15-1228
TIME:	03:38:17 PM
MOVED:	Becker J.
MOTION:	Adopt amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Buck
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:38 PM

Representative Becker distributed Amendment L.004 (Attachment C), and explained that it is a simple technical amendment to the bill.

150304 AttachC.pdf

BILL:	HB15-1228
TIME:	03:38:40 PM
MOVED:	Becker J.
MOTION:	Adopt amendment L.004 (Attachment C). The motion passed without objection.
SECONDED:	Buck
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:38 PM

Representative Becker distributed Amendment L.006 (Attachment D), and explained that it requires the reporting of any vehicular consumption of LPG.

150304 AttachD.pdf

BILL:	HB15-1228
TIME:	03:39:30 PM
MOVED:	Becker J.
MOTION:	Adopt amendment L.006 (Attachment D). The motion passed without objection.
SECONDED:	Buck
		VOTE
	Becker J.
	Buck
	Carver
	Coram
	Esgar
	Kraft-Tharp
	Melton
	Moreno
	Neville P.
	Nordberg
	Winter
	Mitsch Bush
	Tyler
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

03:39 PM

The bill sponsors made their closing comments on the bill.

BILL:	HB15-1228
TIME:	03:40:48 PM
MOVED:	Mitsch Bush
MOTION:	Refer House Bill 15-1228, as amended, to the Committee on Finance. The motion passed on a vote of 13-0.
SECONDED:	Becker J.
		VOTE
	Becker J.	Yes
	Buck	Yes
	Carver	Yes
	Coram	Yes
	Esgar	Yes
	Kraft-Tharp	Yes
	Melton	Yes
	Moreno	Yes
	Neville P.	Yes
	Nordberg	Yes
	Winter	Yes
	Mitsch Bush	Yes
	Tyler	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:41 PM

The committee adjourned.