House Committee on Finance (01/26/2005)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	01/26/2005	ATTENDANCE

Time:	01:38 PM to 04:25 PM	Benefield	X
		Cloer	X
Place:	HCR 0107	Crane	X
		Frangas	X
This Meeting was called to order by		Garcia	X
	Representative Vigil	Jahn	X
		Marshall	X
This Report was prepared by		Massey	X
	Ron Kirk	May M.	X
		McCluskey	X
		Witwer	X
		Judd	X
		Vigil	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB05-1051 HB05-1056 HB05-1053 HB05-1024 HB05-1001		Witness Testimony Only Witness Testimony Only Witness Testimony Only Witness Testimony Only Amended and Referred to the Committee of the Whole

01:39 PM -- Opening Comments

Representative Vigil, Chairman, welcomed everyone to the House Committee on Finance meeting and announced the committee would begin to hear testimony on four of five income tax checkoff measures that would be debated by the General Assembly. He mentioned that the committee would take final action on these measures during a subsequent meeting. Prior to beginning testimony, Representative Vigil requested staff to provide an overview on the state income tax checkoff program called "Colorado Checkoff."

01:44 PM -- Colorado Checkoff Program

Mr. Ron Kirk, Legislative Council Staff, provided an overview of the state income tax program called Colorado Checkoff. In 1977, Colorado was the first state to create a tax "checkoff" allowing taxpayers to voluntarily contribute to an organization on their income tax form. The General Assembly can place a program or organization on the income tax form acting by bill. There is no specific statutory criteria that a program or organization must meet in order to appear on the income tax form. The number of checkoffs that can appear on an income tax form in any given year is limited to twelve. Eleven tax checkoffs are scheduled to appear on the 2004 state income tax form.

Under the sunset provision of the checkoff program, most checkoffs generally expire after three years. Two of the eleven 2004 checkoffs are scheduled to sunset after the 2004 income tax year. In addition to the sunset provision, except for the Western Colorado State Veterans' Cemetery Fund checkoff, checkoffs can drop off the form if they do not receive $150,000 in annual contributions.

There has been a total of 17 different checkoffs since the program's inception. These organizations have received about $27.7 million in contributions since FY 1977-78. The average individual contribution to the checkoffs was about $8.10 for FY 2003-04. The annual average individual contribution amount to the checkoffs has not changed significantly over the past ten fiscal years even though the number of checkoffs appearing on the form has increased over this time.

01:50 PM -- House Bill 05-1051 - Concerning An Extension of the Colorado Watershed Protection Fund Checkoff

Representative Curry, prime sponsor, explained that House Bill 04-1051 extends the period that state income tax forms will include a voluntary contribution for the Colorado Watershed Protection Fund from January 1, 2005, to January 1, 2008. Representative Curry distributed a handout entitled "Colorado Watershed Protection Fund 2003 Projects" (Attachment A) to committee members.

The following persons testified:

01:55 PM -- Mr. Jeff Crane, North Fork River Improvement Association, testified in support of the legislation and explained that the Colorado Watershed Protection Fund is a program that rebuilds irrigation diversions to conserve water for farmlands.

02:00 PM -- Ms. Jen Boulton, Audubon/Trout Unlimited, testified in support of the legislation.

02:01 PM -- Ms. Amee Rathburn, Coalition for the Upper South Platte, testified in support of the legislation. Ms. Rathburn commented the watershed protection program uses volunteers and brings federal moneys into Colorado that can be used to match state grants to conserve water.

02:05 PM -- Ms. Callie Hendrickson, Colorado Association of Conservation Districts, testified in support of the legislation.

02:06 PM -- Mr. Chris Rowe, Colorado Watershed Network, testified in support of the legislation. Mr. Rowe commented that the watershed protection program is a collaborative approach that works with many communities and organizations that work to conserve water and find ways to use it more efficiently.
The committee discussed the sources of funds that the Colorado Watershed Protection Fund receives. Mr. Rowe commented the Watershed's funds come primarily from the income tax checkoff.
.
02:15 PM -- Ms Kalen Berry, Jefferson Conservation District, testified in support of the legislation.

02:18 PM -- Mr. Richard Fox, President of the Colorado Watershed Assembly, testified in support of the legislation and distributed a handout on the Colorado Watershed Assembly (Attachment B). Mr. Fox commented that the Assembly serves to formally link together the growing number of people and entities committed to collaborative, watershed-based approaches to conserving Colorado's land, water, and other natural resources.

The bill was taken off the table. The committee will take final action on the measure on February 9, 2005.

02:31 PM -- House Bill 05-1056 - Concerning the Addition of a State Income Tax Checkoff Program for the Alzheimer's Association Fund

Representative Hefley, prime sponsor, explained that House Bill 05-1056 creates an income tax checkoff program that would benefit the Alzheimer's Association Fund. Representative Hefley began by distributing amendment L.001 (Attachment C), a letter (Attachment D) from a constituent urging support for the program, and a report from the Alzheimer's Association (Attachment E). Representative Hefley commented on the legislation's benefit to both caregivers and patients.

The following persons testified:

02:40 PM -- Ms. Linda Mitchell, Alzheimer's Association, testified in support of the legislation. Ms. Mitchell provided the committee with a brief overview of the association's mission. She commented that 63,000 people in Colorado have Alzheimer's disease and for each person, on average, three other people or family members are affected. The number of affected families and patients will grow over the years. Ms. Mitchell commented that the tax checkoff would provide the Alzheimer's Association with the funding needed to continue the association's work with Alzheimer patients.

02:49 PM -- Ms. Carol Mason, representing self, testified in support of the legislation. Ms. Mason commented that the Alzheimer Association's assistance was invaluable in helping her provide care for her husband.

02:50 PM -- Mr. Bernard Poskus, representing himself, testified in support of the legislation.
02:54 PM -- Mr. Fred Hobbs and Mary Ellen Hobbs, testified in support of the legislation. Mr. Hobbs commented that his wife was recently diagnosed with Alzheimer's disease. He closed by discussing the assistance that the Alzheimer's Association has provided with long-range planning for his wife's illness.

The bill was taken off the table. The committee will take final action on the measure on February 9, 2005.

03:01 PM -- House Bill 05-1053 - Concerning the Addition of a State Income Tax Checkoff Program for the Military Personnel Assistance Fund

Representative Berens, prime sponsor, explained House Bill 05-1053 creates a tax checkoff program for the Military Personnel Assistance Fund beginning January 1, 2005. The program would sunset after three years and moneys in the fund would be used to make grants to provide general assistance to military personnel for housing costs, utilities, medical services, and other basic expenses that members of the United States Armed Forces, the reserves, or the Colorado National Guard incur as they serve their county.

The following person testified:

03:16 PM -- Mr. William Robinson, Department of Military and Veterans Affairs, did not take a position on the bill. Mr. Robinson provided technical information on the number of persons deployed as National Guard and Reservists (about 5,000 for each group).

The bill was taken off the table. The committee will take final action on the measure February 9, 2005.

03:32 PM -- House Bill 05-1024 - Concerning the Addition of a State Income Tax Checkoff Program for the Dropout Prevention Activity Grant Program

Representative Solano, prime sponsor, explained House Bill 05-1023 creates the Dropout Prevention Activity Grant Program in the Department of Education to fund before- and after- school arts-based and vocational activity programs for students enrolled in grades six through 12. Representative Solano distributed a chart titled "Dropouts and Unexplained Attrition from the Class of 2003" (Attachment F).

The following persons testified.

03:41 PM -- Mr. Ken Seeley, Colorado Foundation for Families and Children, testified in support of the legislation. Mr. Seeley distributed a report (Attachment G) from the foundation to committee members and commented on some of the statistics in the report. Mr. Seeley discussed the importance of after school programs. These programs act as an incentive for children to stay in school and promote less drug and alcohol use. Mr. Seeley concluded by discussing data on school dropouts and delinquent behavior.

03:50 PM -- Ms. Marjean Drost, representing self, testified in support of the tax checkoff program.

03:54 PM -- Ms. Lucy Trujillo, Project Director, Colorado Foundation for Families and Children, testified in support of the legislation. Ms. Trujillo distributed a handout on the After School Network (Attachment H) and discussed the advantages of after school programs to help keep children in school. One program goal ensures that there are after school programs statewide. Effective after school programs provide opportunities to students that build on student strengths that extend to both academic and social areas.

04:04 PM -- Mr. Bruce Atchison, Colorado Children's Campaign, testified in support of the legislation and distributed two handouts on the campaign to committee members (Attachments I and J). Mr. Atchison commented that only 60 percent of children who start school graduate. He provided the committee with some statistics on school dropout rates.

The bill was taken off the table. The committee will take final action on the measure on February 9, 2005.

04:09 PM -- House Bill 05-1001 - Concerning the Prohibition of Cash Fund Transfers to the General Fund (For Action Only)

Representative Garcia distributed amendment L.003 (Attachment K). (During the January 19, 2005, meeting, the committee adopted amendment L.001 (Attachment L.) Representative Garcia explained that amendment L.003, a strike below, incorporates amendment L.001 and clarifies the permissible uses of cash fund revenues. The chairman asked Mr. Jason Gelender to explain the provisions of amendment L.003.

04:15 PM -- Mr. Jason Gelender, Office of Legislative Legal Services, explained that under L.003 moneys derived from a charge shall only be transferred to the General Fund or otherwise appropriated from a cash fund for statutorily authorized purposes. The amendment clarifies that moneys in a cash fund may be used for statutorily authorized purposes, even if those purposes may not be directly related to the program for which the fee was imposed. For example, the amendment would allow the Department of State to continue using moneys from business filing fees for elections and other purposes unrelated to business filing, as long as the statute authorizes such uses. With amendment L.003, and the previously adopted amendment L.001, the bill would be assessed as having no fiscal impact.

Representative Garcia commented that the bill would prohibit any new transfers of cash funds to the General Fund, require that cash fund revenues be appropriated for related purposes, and require that fees raise no more than necessary to cover program costs. The bill would also continue to allow cash fund moneys to be transferred or appropriated for any purpose authorized by law.


BILL:	HB05-1001
TIME:	04:24:11 PM
MOVED:	Garcia
MOTION:	Moved Amendment L.003. The motion passed without objection by those members present.
SECONDED:	Frangas
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Jahn
	Marshall
	Massey
	May M.
	McCluskey
	Witwer
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB05-1001
TIME:	04:24:50 PM
MOVED:	Garcia
MOTION:	Refer HB 05-1001, as amended, to the Committee of the Whole. The motion passed on a 12-1-0 vote.
SECONDED:	Cloer
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Jahn	Yes
	Marshall	Yes
	Massey	Yes
	May M.	Yes
	McCluskey	No
	Witwer	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

04:25 PM

Adjourn.