Date: 03/04/2015

Final
BILL SUMMARY for HB15-1206

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt amendment L.003 (Attachment E). The motion p
Adopt amendment L.004 (Attachment F). The motion p
Adopt amendment L.005 (Attachment D). The motion p		Pass Without Objection
Pass Without Objection
Pass Without Objection



02:49 PM -- HB15-1206

Representative Singer, sponsor, introduced House Bill 15-1206. The bill creates a refund for sales and use taxes paid on machinery and equipment used for recycling or reprocessing of waste products. Representative Singer responded to a question about the scope of the bill and stated that a proposed amendment changes the bill from a refund to an exemption. The proposed amendments also limit the bill to qualified institutions regulated by the Colorado Department of Public Health and Environment.

02:53 PM -- Ms. Marjorie Griek, representing the Colorado Association for Recycling, testified in support of the bill. She distributed a handout to the committee (Attachment C). She stated that, in Colorado, some materials are imported to be recycled and reused in manufacturing, so this bill would help the growing industry.

15HouseFin0304AttachC.pdf15HouseFin0304AttachC.pdf

03:06 PM -- Mr. Tom Lincoln, representing A1 Organics, testified in support of the bill. He discussed how the bill would have helped his business in the past and how it can help his business in the future.

03:10 PM -- Ms. Anita Comer, representing Waste-Not Recycling, testified in support of the bill. She stated that recycling is a low profit margin business and this tax exemption would have a large positive impact on her business.
03:13 PM -- Mr. Steve Derus, representing Momentum Recycling, testified in support of the bill. He stated the his company is seeking to expand into Colorado. He noted that the reduction in sales and use tax could lead the company to pay a higher rebate to the people bringing them recyclable material. He stated the bill would help create both primary and secondary jobs in Colorado.

03:20 PM -- Mr. Larson Silbaugh, Legislative Council Staff, came to the table to discuss the fiscal note. He stated the information in the fiscal note is based on prior year tax data in Colorado.

03:22 PM -- Mr. Steve Derus returned to the table to discuss the fiscal note and noted that the information regarding Momentum Recycling's proposed expansion in Colorado was not available to the fiscal analyst. He noted that the proposed facility is a one-time initial investment by Momentum Recycling in Colorado.

03:26 PM -- Mr. Alek Orloff, representing Alpine Waste & Recycling, testified in support of bill. He noted that the recycling business is nascent in Colorado because the state still has a good amount of space for landfills. He stated the demand for services has increased. He noted this bill would help his business expand and hire new employees.
BILL:HB15-1206
TIME: 03:35:11 PM
MOVED:Court
MOTION:Adopt amendment L.005 (Attachment D). The motion passed without objection.
15HouseFin0304AttachD.pdf15HouseFin0304AttachD.pdf
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


03:40 PM -- Mr. Kevin Bronski, representing the Colorado Department of Revenue (DOR), came to the table to answer questions regarding the fiscal note. He stated that recycling is considered processing, so most recycling equipment does not qualify for the manufacturing exemption currently in statute. He noted the bill and proposed amendments will assist DOR in determining who qualifies for exemptions.

03:42 PM -- Mr. Larson Silbaugh, Legislative Council Staff, returned to the table to discuss the fiscal note. He noted that it is hard to determine the number of organizations that could potentially qualify for this exemption, especially since numerous recycling operations are owned by local governments who already qualify for exemptions. Committee discussion with Mr. Silbaugh and Mr. Bronski ensued.
BILL:HB15-1206
TIME: 03:58:42 PM
MOVED:Court
MOTION:Adopt amendment L.003 (Attachment E). The motion passed without objection.
15HouseFin0304AttachE.pdf15HouseFin0304AttachE.pdf
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


BILL:HB15-1206
TIME: 04:00:12 PM
MOVED:Kagan
MOTION:Adopt amendment L.004 (Attachment F). The motion passed without objection.
15HouseFin0304AttachF.pdf15HouseFin0304AttachF.pdf
SECONDED:Court
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



04:03 PM

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