Date: 02/26/2015

Final
BILL SUMMARY for HB15-1180

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment B). The motion p
Adopt amendment L.002 (Attachment A). The motion p
Adopt conceptual amendment to expand the tax refun
Adopt conceptual amendment. Strike "Business Affai
Refer House Bill 15-1180, as amended, to the Commi		PASS
PASS
FAIL
Pass Without Objection
PASS



11:17 AM -- HB15-1180

Representatives Kraft-Tharp and Wilson, co-prime sponsors, introduced House Bill 15-1180. The bill recreates a sales and use tax refund for clean technology and medical device firms with 35 employees or less. The refund is for sales taxes paid on equipment used for research and development of clean technology or medical technology and is limited to $50,000 per taxpayer per year. Representative Kraft-Tharp noted that surrounding states have similar tax policies. She stated that this bill will help keep existing businesses in Colorado along with helping the industry grow. Representative Wilson noted that this industry contains small businesses that can be located in both urban and rural areas of Colorado.

11:25 AM -- Ms. Natalie Mullis, Chief Economist with Colorado Legislative Council, came to the table to answer questions regarding the fiscal note. She addressed questions regarding a fiscal note of a similar 2009 bill. She stated that the assumptions in the fiscal note are based on data available from both the Department of Revenue and the industry itself. Committee discussion ensued regarding past tax refund claimants and the fiscal implications of the bill.

11:34 AM -- Ms. Leah Lindahl, representing the Colorado Bioscience Association, testified in support of the bill. She noted that the industry consists of a large range of companies. She stated that there are around 300 bioscience companies in Colorado. She discussed the current federal medical device tax.

11:46 AM -- Mr. Brad Amman, Chief Financial Officer of CereScan, testified in support of the bill. He stated that CereScan employs 16 people and that this bill would help them expand. He noted that this bill would help off-set costs.

11:52 AM -- Mr. Chris Votoupal, representing the Colorado Cleantech Industries Association, testified in support of the bill. He stated that the bill would help keep Colorado's cleantech industry competitive with businesses in neighboring states.

11:53 AM -- Mr. Loren Burnett, representing e-Chramic Technologies, testified in support of the bill. He discussed his company's product that is based on research conducted at the National Renewable Energy Laboratory. He stated this bill would help the company attract investors, expand, and stay in Colorado.

12:08 PM -- Mr. Ed DeCecco, Office of Legislative Legal Services, came to the table to answer questions regarding the language of the bill and a proposed amendment. Representative Kraft-Tharp distributed Amendment L.002 (Attachment A).

15HouseFin0226AttachA.pdf15HouseFin0226AttachA.pdf

12:13 PM -- Mr. Votoupal returned to the table to answer questions regarding whether the language in L.002 would include not just clean and medical technology companies, but also traditional energy companies.

12:22 PM -- Mr. Kevin Bronski, representing the Colorado Department of Revenue (department), came to the table to address questions about how provisions of the bill may be interpreted by the department. He stated that the department uses the plain meaning definition of "efficiency" when determining whether companies qualify for a tax refund. He noted that the department considers L.002 a clarifying amendment.

12:27 PM -- Mr. Larson Silbaugh, Colorado Legislative Council, came to the table to answer questions regarding the fiscal note. He noted that the fiscal note is based on information available from previous department refund data and other sources.
BILL:HB15-1180
TIME: 12:31:19 PM
MOVED:Wilson
MOTION:Adopt amendment L.002 (Attachment A). The motion passed on a vote of 11-0.
SECONDED:Roupe
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
YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB15-1180
TIME: 12:35:23 PM
MOVED:Kagan
MOTION:Adopt conceptual amendment. Strike "Business Affairs and Labor" and substitute "Finance." 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:HB15-1180
TIME: 12:38:14 PM
MOVED:Priola
MOTION:Adopt conceptual amendment to expand the tax refund for ten years. The motion failed on a vote of 5-6.
SECONDED:Van Winkle
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:HB15-1180
TIME: 12:40:43 PM
MOVED:Court
MOTION:Adopt amendment L.001 (Attachment B). The motion passed on a vote of 7-4.

15HouseFin0226AttachB.pdf15HouseFin0226AttachB.pdf
SECONDED:Kagan
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
No
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

12: 42 PM -- Committee discussion ensued regarding the fiscal implications of tax expenditure bills, TABOR, and Colorado's budget.
BILL:HB15-1180
TIME: 12:53:05 PM
MOVED:Wilson
MOTION:Refer House Bill 15-1180, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:Van Winkle
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