Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:03/15/2006
ATTENDANCE
Time:01:37 PM to 02:20 PM
Benefield
X
Cloer
E
Place:HCR 0107
Crane
X
Frangas
E
This Meeting was called to order by
Garcia
X
Representative Vigil
Harvey
X
Jahn
X
This Report was prepared by
Kerr
E
Ron Kirk
Marshall
X
Massey
X
McCluskey
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB06-070
SB06-124
SB06-126		Referred to the Committee of the Whole
Referred to the Committee of the Whole
Referred to Appropriations


01:37 PM -- Senate Bill 06-070 - Concerning Excess Personal Property Tax Refunds

Representative Plant, prime sponsor, explained the provisions of the bill. He explained that Senate Bill 06-070 assures that companies who finance the leasing of equipment in Colorado (lessors) will pay back any excess personal property tax payments that are collected in excess of property taxes owed.

The following person testified:

01:41 PM -- Mr. Bob Hullinghorst, Boulder County Treasurer, testified in support of the bill and distributed a fact sheet on the legislation (Attachment A). He explained the events that led to the bill. Mr. Hullinghorst said that taxpayers in Boulder County who overpaid personal property taxes to a lessor who were not reimbursed for the overpayment, led to the legislation. Mr. Hullinghorst commented that some companies abuse the personal property taxing system and it has led to the requirements under Senate Bill 06-070. He explained further saying that most leases specify that there is a "charge back" on property taxes that are paid on an annual basis. The charge back can either be paid on a monthly or annual basis depending upon the lease. Mr. Hullinghorst closed by saying that mostly smaller businesses are more effected by the collection and rebate process than larger businesses.

The committee questioned whether the rebate issue is more prevalent with larger companies. Mr. Hullinghorst responded by saying that the size of the company may not matter but the issue is a matter of responsiveness and accountability. There are companies that abuse the collections of personal property taxes, in fact, some companies are charging an additional "handling charge" for the collection. Representative Plant concluded by saying that the abuses are the reasons for the penalties in the bill.


BILL:SB06-070
TIME: 01:51:21 PM
MOVED:Judd
MOTION:Refer Senate Bill 06-070 to the Committee of the Whole. The motion passed on a 10-0-3 vote.
SECONDED:Garcia
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Excused
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Excused
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 10 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS


01:53 PM -- Senate Bill 06-124 - Concerning the Transfer of Electronic Benefits to the General Fund

Representative Hall, prime sponsor, explained the provisions in the bill and distributed a fact-sheet on the bill (Attachment B). Representative Hall explained that Senate Bill 06-124 corrects a technical omission from the language of Senate Bill 05-202. The bill authorizes the State Treasurer to transfer any remaining fund balance of the Electronic Benefits Transfer Service Fund, after its repeal, into the General Fund.

The committee discussed the payment of fees related to the bill. After a brief committee discussion, Representative Vigil, prime sponsor, placed the bill on the table for action.



















BILL:SB06-124
TIME: 02:02:31 PM
MOVED:McCluskey
MOTION:Refer Senate Bill 06-124 to the Committee of the Whole. The motion passed on a 9-1-3 vote.
SECONDED:Massey
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Excused
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Excused
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 9 NO: 1 EXC: 3 ABS: 0 FINAL ACTION: PASS


02:05 PM -- Senate Bill 06-126 - Concerning the Use of Money Appropriated to the State Veterans Trust Fund

Representative Buescher, prime sponsor, explained the provisions in the bill and discussed the State Veterans Trust Fund. The Colorado State Veterans Trust Fund was created to accept one percent, up to $1 million, in money the state receives from the tobacco settlement agreement. These funds are administered by the Colorado State Veterans Board (CSVB) and are used for capital improvement projects for veterans nursing homes and veteran cemetery costs. A portion of the funds are also available to nonprofit veterans programs through a grant process. Representative Buescher explained that Senate Bill 06-126 extends the current allocations of trust fund monies - 75% available for expenditures and 25% held in the trust fund - for one year and proposes a new allocation schedule for the out years.

The following persons testified:

02:06 PM -- Mr. Ralph Bozelle, State Board of Veterans Affairs, testified in support of the legislation. Mr. Bozelle commented that the bill will allow more money to go to veteran services and allow the state to provide more programs for veterans. Mr. Bozelle closed by saying that the Veterans Trust Fund should receive more funding if the state securitizes its revenue under the tobacco settlement agreement.

02:14 PM -- Mr. Warren Tellgren, United Veterans Committee of Colorado, testified in support of the legislation. He urged the committee to support the legislation in a bipartisan fashion.

02:15 PM -- Mr. Marvin Meyers, Colorado Board of Veterans Affairs, testified in support of the legislation. Mr. Meyers closed by discussing the history of cash flows related to the veterans trust fund and urged committee members to vote for the legislation.




BILL:SB06-126
TIME: 02:19:30 PM
MOVED:Judd
MOTION:Refer Senate Bill 06-126 to the Committee on Appropriations. The motion passed on a 10-0-3 vote.
SECONDED:Jahn
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Excused
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Excused
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 10 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS


02:20 PM

Adjourn.