Bill Summary for Bill Number HB06-1155

Date: 02/07/2006

Final
BILL SUMMARY for HB06-1155

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Prepared amendment L.002 (Attachment H). The moti Refer the bill to the Committee of the Whole. See Substitute motion to postpone the bill indefinitel	FAIL TIE PASS

04:28 PM -- House Bill 06-1155

Representative Gardner, bill sponsor, explained the provisions of HB 06-1155 which provide a process by which a private business can receive tax breaks when a finding is made that a government agency has been providing services in competition with the private business (Attachment F). Representative Gardner responded to committee questions regarding the kinds of businesses being hurt by competing government operations. In response to a committee question regarding the effect the bill would have on the Division of Correctional Industries in the Department of Corrections, and the effect of the loss of sales tax revenue on localities, Representative Gardner noted he would have an amendment to address this issue. Representative Gardner also responded to committee questions regarding the fiscal note and regarding the bill's effect on state revenues. Representative Gardner responded to numerous committee questions regarding governmental entities and whether or not they are in competition with private enterprise.

04:51 PM

Sam Mamet, Colorado Municipal League, spoke in opposition to the bill. He spoke to ongoing efforts by the municipal league to look at ways in which government services can be contracted out to private entities and the degree to which such contracting already exists. He questioned the practical impacts of implementing the bill's provisions.

05:00 PM

Tony Gagliardi, National Federation of Independent Businesses, spoke in support of the bill. He provided statistics on the number of small businesses in the state and the number of individuals employed by those businesses. He spoke to the degree to which outside competition affects the profitability of small businesses. In response to a committee comment, Mr. Gagliardi suggested the definition of "local government" on page 3, line 15 of the bill, be amended to include special districts. Mr. Gagliardi responded to committee questions on examples of government services that can be privatized.

05:17 PM

Douglas Moore, American Medical Response, spoke in support of the bill. He spoke to the degree to which government ambulance services compete with private services. He described his company's operations and spoke to his company's accreditations and certifications.

05:24 PM

Andre Ransom, Colorado Child Care Association, spoke in support of the bill. She spoke to the degree to which government unfairly competes with private child care facilities. She compared the costs for private entities to provide child care services with the cost for government to provide those same services.

05:29 PM

Donnah Moody, Colorado Association of Commerce and Industry, spoke in support of the bill. She spoke, in particular, to the degree to which the bill eliminates the tax burden on private businesses.

05:32 PM

Bruce Nelson, Colorado Department of Revenue, responded to a committee question regarding the fiscal impact of the bill speaking to the difficulty in quantifying the bill's impact. Mr. Nelson spoke to the degree to which nonprofit entities pay taxes other than income tax.


BILL:	HB06-1155
TIME:	05:39:15 PM
MOVED:	May M.
MOTION:	Prepared amendment L.002 (Attachment H). The motion failed on a 4-6-1 roll call vote.
SECONDED:	Berens
		VOTE
	Berens	Yes
	Cerbo	No
	Curry	No
	Decker	Yes
	Massey	Yes
	May M.	Yes
	Merrifield	No
	Soper	No
	Stafford	Excused
	Lindstrom	No
	Hodge	No
Not Final YES: 4 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL

05:40 PM

Representative Gardner provided closing comments on the bill.

Representative Lindstrom recommended that Representative Gardner propose an interim committee on this issue.


BILL:	HB06-1155
TIME:	05:45:22 PM
MOVED:	May M.
MOTION:	Refer the bill to the Committee of the Whole. See substitute motion below.
SECONDED:	Berens
		VOTE
	Berens
	Cerbo
	Curry
	Decker
	Massey
	May M.
	Merrifield
	Soper
	Stafford
	Lindstrom
	Hodge
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: SEE SUBSTITUTE MOTION


BILL:	HB06-1155
TIME:	05:45:37 PM
MOVED:	Curry
MOTION:	Substitute motion to postpone the bill indefinitely. The motion carried on a 6-4-1 roll call vote.
SECONDED:	Merrifield
		VOTE
	Berens	No
	Cerbo	Yes
	Curry	Yes
	Decker	No
	Massey	No
	May M.	No
	Merrifield	Yes
	Soper	Yes
	Stafford	Excused
	Lindstrom	Yes
	Hodge	Yes
Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:46 PM

The meeting was adjourned.