House Committee on Finance (04/01/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/01/2015	ATTENDANCE

Time:	01:32 PM to 05:43 PM	Becker K.	*
		Conti	X
Place:	LSB A	Garnett	X
		Kagan	X
This Meeting was called to order by		Pabon	*
	Representative Court	Priola	*
		Roupe	X
This Report was prepared by		Van Winkle	*
	Katie Ruedebusch	Wilson	*
		Foote	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1299 HB15-1271 HB15-1236 HB15-1234 HB15-1314 HB15-1181		Referred to the Committee of the Whole Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only Amended, Referred to Appropriations Amended, Referred to Appropriations Amended, Referred to Appropriations

01:34 PM -- HB15-1299

Representative Court, chair, called the meeting to order. Representative Hamner, sponsor, introduced House Bill 15-1299. Under current law, Petroleum Storage Tank Fund moneys may be used as incentives to underground tank owners and operators to update existing systems. This bill extends the eligibility for the incentives to tank owners and operators of aboveground petroleum tanks, and for significant operational compliance for both underground and aboveground petroleum tanks. "Significant operational compliance" means that an owner or operator of an underground or aboveground storage tank is in full regulatory compliance and, through optional best management practices, has prevented or reduced the threat of a release into the environment.


BILL:	HB15-1299
TIME:	01:35:12 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1299 to the Committee of the Whole. The motion passed on a vote of 9-0.
SECONDED:	Roupe
		VOTE
	Becker K.	Excused
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Excused
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

01:36 PM -- HB15-1271

Representative Hamner, co-prime sponsor, introduced House Bill 15-1271. The bill authorizes the Colorado Existing Industry Training Program (program) to fund mobile learning labs. Representative Hamner noted that the bill helps provide workforce education and training, especially in rural Colorado.

Representative Lontine, co-prime sponsor, spoke to the bill. She discussed the need for the inclusion of mobile learning labs in workforce development programs.

01:44 PM -- Mr. Alex Schatz, Legislative Council Staff, came to the table to discuss the fiscal note. He discussed how program funds are currently used and why the bill carries no fiscal impact.

01:49 PM -- Ms. Eloise Hirsch, representing the Colorado Office of Economic Development and International Trade, came to the table to answer questions. She noted that, under this bill, mobile labs will now qualify for the competitive funds.

01:53 PM -- Ms. Patty Erjavec, representing Pueblo Community College, testified in support of the bill. She distributed a handout (Attachment A). She discussed mobile learning labs at Pueblo Community College.

15HouseFin0401AttachA.pdf

02:00 PM -- Mr. Troy Wanek, representing Red Rocks Community College, testified in support of the bill. He discussed the energy training mobile learning lab at Red Rocks Community College.

02:02 PM -- Ms. Pam Packer, representing Red Rocks Community College, testified in support of the bill. She discussed Red Rocks Community College's mobile learning labs.

02:05 PM -- Mr. Frank Waterous, representing the Bell Policy Center, testified in support of the bill. He distributed written testimony (Attachment B). He discussed how mobile learning labs will benefits adult students, employers, and employees.

15HouseFin0401AttachB.pdf

02:09 PM -- Mr. Tony Milo, representing the Colorado Contractors Association, testified in support of the bill. He discussed the shortage of technical workers and how this bill would help grow the workforce.


BILL:	HB15-1271
TIME:	02:10:48 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1271 to the Committee of the Whole. The motion passed on a vote of 10-1.
SECONDED:	Roupe
		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

02:14 PM -- HB15-1236

Representative Winter, sponsor, introduced House Bill 1236. The bill, as amended by the House Transportation Committee, creates a nonrefundable income tax credit for construction, remodeling, and improvement of multi-family residential and commercial buildings and affordable housing projects that attain certain standards of energy efficiency. Representative Winter discussed how the bill creates more energy efficient buildings along with creating options for affordable housing. She noted that the tax credit is capped.

02:22 PM -- Mr. Carey Mott, representing himself, testified in opposition to the bill. He noted that substantial incentives already exist for building owners to invest in energy efficiency. In response to committee questions, he discussed affordable housing, private incentive programs, and federal government incentives.

02:35 PM -- Mr. William "Chuck" Silkman, representing Ameresco, Inc., testified in support of the bill. He discussed how Ameresco tries to reduce paybacks and how the bill would help create jobs in Colorado.

02:43 PM -- Mr. Paul Kriescher, representing the Energy Efficiency Business Coalition and Lightly Treading, Inc., testified in support of the bill. He noted that few energy efficiency incentives exist for builders of multi-family and commercial buildings.

02:46 PM -- Ms. Heidi Morgan, representing Black Hills Corporation, testified in support of the bill. She noted how the money that taxpayers save on utilities would instead be invested in the state's economy in other ways, such as growing businesses. She discussed other incentives available for energy efficiency and the energy efficiency programs Black Hills Corporation offers to its customers.

02:52 PM -- Mr. Benjamin Waters, representing the Colorado Solar Energy Industry Association, testified in support of the bill.

02:53 PM -- Mr. Peter Rusin, representing the Colorado Energy Office, came to the table to answer questions. He discussed private energy efficiency incentive programs.

02:54 PM

The bill was laid over to a future date for action only.

02:55 PM -- HB15-1234

Representative Mitsch Bush, sponsor, introduced House Bill 15-1234. The bill, as amended by the House Agricultural 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. Representative Mitsch Bush noted that the bill helps younger Coloradans stay in the agricultural industry. She distributed amendment L.005 (Attachment C) and amendment L.006 (Attachment D).

15HouseFin0401AttachC.pdf

15HouseFin0401AttachD.pdf

03:05 PM -- Mr. Nicolas Colglazier, representing the Colorado Farm Bureau, testified in support of the bill. He noted that the bill is a small investment that helps beginning farmers or ranchers in Colorado.


BILL:	HB15-1234
TIME:	03:14:25 PM
MOVED:	Court
MOTION:	Adopt amendment L.005 (Attachment C). 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


BILL:	HB15-1234
TIME:	03:19:27 PM
MOVED:	Court
MOTION:	Reconsider the adoption of amendment L.005 (Attachment C). The motion passed on a vote of 10-0.
SECONDED:	Pabon
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Excused
	Foote	Yes
	Court	Yes

YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	HB15-1234
TIME:	03:20:04 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.006 (Attachment D). The motion passed without objection.
SECONDED:	Priola
		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:	HB15-1234
TIME:	03:21:45 PM
MOVED:	Court
MOTION:	Adopt amendment L.005 (Attachment C). 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


BILL:	HB15-1234
TIME:	03:23:25 PM
MOVED:	Van Winkle
MOTION:	Postpone House Bill 15-1234 indefinitely. The motion failed on a vote of 3-7.
SECONDED:	Foote
		VOTE
	Becker K.	Yes
	Conti	No
	Garnett	No
	Kagan	No
	Pabon	Yes
	Priola	No
	Roupe	No
	Van Winkle	Yes
	Wilson	Excused
	Foote	No
	Court	No

YES: 3 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB15-1234
TIME:	03:25:48 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1234, as amended, to the Committee on Appropriations. The motion passed on a vote of 8-2.
SECONDED:	Roupe
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	No
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	No
	Wilson	Excused
	Foote	Yes
	Court	Yes

Final YES: 8 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

03:29 PM -- HB15-1314

Representative Moreno, sponsor, introduced House Bill 15-1314. The bill creates an income tax credit for contributions made to an endowment of a Colorado charitable organization. Eligible endowment funds do not include donor advised funds or fund for a private foundation. The credit is equal to 25 percent of the contribution and the maximum credit allowed is $25,000 per taxpayer per year. The credit is non-refundable, but can be carried forward for five years, and is available starting in tax year 2015. Representative Moreno noted that several other states currently have a similar tax credit.

03:31 PM -- Former Representative Renny Fagan, representing the Colorado Nonprofit Association, testified in support of the bill. He distributed a handout (Attachment E). He explained how the bill would help Colorado nonprofit organizations.

15HouseFin0401AttachE.pdf

03:39 PM -- Mr. David Miller, representing the Denver Foundation, testified in support of the bill. He distributed a handout (Attachment F). He discussed nonprofit endowments and the Denver Foundation's endowment in particular. In response to committee questions, he stated that he does not believe providing taxpayers incentives to invest in endowments will hurt other areas of funding for small nonprofits.

15HouseFin0401AttachF.pdf

03:46 PM -- Mr. John Powers, representing the Alliance for Sustainable Colorado, testified in support of the bill. He noted that nonprofit endowments act as reserve funds to help keep employment stable and also help in one-of-a-kind situations, such as the recent Colorado floods.

03:54 PM -- Mr. Fagan returned to the table to answer questions about the intent of the bill. He stated that the bill encourages any and all donations to Colorado nonprofits.

03:56 PM -- Mr. Christopher Silberman, representing the Phamaly Theatre Company, testified in support of the bill. He discussed the company's current endowment.

03:58 PM -- Ms. Barbara Shaw, representing the Mental Health Center of Denver, testified in support of the bill. She discussed how the bill helps nonprofits raise funds long-term. She discussed how nonprofits take care of the needs of the community without state funds.

04:00 PM -- Ms. Arpie Chucovich, representing the Denver Art Museum, testified in support of the bill. She discussed how the bill will help Colorado's cultural nonprofit organizations.

04:04 PM -- Ms. Bridget Coughlin, representing the Denver Museum of Nature and Science, testified in support of the bill. She discussed how endowments help provide programs and events for the benefit of the community.

04:07 PM -- Mr. Dirk Bird, representing Jewish Colorado, testified in support of the bill. He discussed the culture of permanent asset development for nonprofits in Colorado.

04:11 PM -- Ms. Lydia McCoy, representing the Ray of Hope of Cancer Foundation, testified in support of the bill. She discussed the benefits of the bill to small nonprofits.

04:14 PM -- Mr. Fagan came back to the table to answer committee questions.


BILL:	HB15-1314
TIME:	04:19:01 PM
MOVED:	Court
MOTION:	Adopt amendment L.001 (Attachment G). The motion passed without objection. 15HouseFin0401AttachG.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:	HB15-1314
TIME:	04:26:51 PM
MOVED:	Pabon
MOTION:	Refer House Bill 15-1314, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:	Becker K.
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	No

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:29 PM -- HB15-1181

Representative Keyser, sponsor, introduced House Bill 15-1181. The bill allows a person on active duty in the military that reacquires Colorado residency to receive a tax deduction from his or her state income tax. The person's military home of record must be Colorado and he or she must have changed his or her state of legal residence to Colorado after January 1, 2016. Representative Keyser distributed an unofficial preamended version of the bill (Attachment H) and amendment L.004 (Attachment I). He discussed how the military and the tax code treats active duty military stationed in Colorado. He also discussed the benefits of the bill to Colorado's active duty military who claim Colorado as their home of record. He responded to committee questions regarding which Colorado active duty military would pay Colorado income taxes and what other fees and taxes that they would have to pay in Colorado.

15HouseFin0401AttachH.pdf

15HouseFin0401AttachI.pdf

04:53 PM -- Mr. Louis Pino, Legislative Council Staff, came to the table to answer questions on the fiscal note. He discussed the fiscal implications of amendment L.004.

04:56 PM -- Mr. Kevin Bronski, representing the Colorado Department of Revenue, came to the table to answer questions regarding the traceability of tax exemptions.

05:04 PM

Committee discussion ensued regarding the fiscal note and amendment L.004.

05:21 PM -- Mr. Mike Ragole, representing the United Veterans Committee, testified in support of the bill. He noted that most active duty military do not choose Colorado as their state of residence due to the tax benefits offered by other states.

05:25 PM -- Mr. Steve Rylant, representing the United Veterans Committee, testified in support of the bill. He discussed his personal experience with using another state as his state of residence.

05:29 PM -- Mr. Bernie Rogoff, representing the the Veterans Affair Commission of the City of Aurora, testified in support of the bill. He discussed the experiences of Colorado veterans.


BILL:	HB15-1181
TIME:	05:40:37 PM
MOVED:	Kagan
MOTION:	Refer House Bill 15-1181, as amended, to the Committee on Appropriations. The motion passed on a vote of 10-0.
SECONDED:	Priola
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Excused
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	HB15-1181
TIME:	05:39:28 PM
MOVED:	Conti
MOTION:	Adopt amendment L.004 (Attachment I). 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

05:43 AM

The committee adjourned.