House Committee on Finance (04/19/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/19/2006	ATTENDANCE

Time:	02:00 PM to 03:12 PM	Benefield	X
		Cloer	X
Place:	HCR 0107	Crane	X
		Frangas	X
This Meeting was called to order by		Garcia	X
	Representative Vigil	Harvey	X
		Jahn	X
This Report was prepared by		Kerr	X
	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:
SB06-211 SB06-122 HCR06-1005		Referred to the Committee of the Whole Referred to Appropriations Postponed Indefinitely

02:00 PM -- Senate Bill 06-211 - Concerning the Determination of Dual Resident Trust Taxation

Representative Witwer, prime sponsor, explained the provisions of the bill and the practice of double taxation on trusts. Representative Witwer explained that the bill creates a method of determining the income taxes owed on trusts that are moved to Colorado from other states on or after January 1, 2006. It does so by calculating and applying a credit against Colorado state income taxes owed. The credit calculation would be as follows:

Taxable Income times Colorado Income Tax Rate times Other State Income Tax Rate divided by Sum of Colorado Income Tax Rate and Other State Income Tax Rate

Representative Witwer closed by saying that the incentive in the bill is to lower the disincentive of moving a trust from another state to Colorado.

The following persons testified:

02:04 PM -- Mr. Earl Wright, AMG National Trust, testified in support of the bill and addressed the issue of double taxation on trusts moved from another state to Colorado. Mr. Wright closed by commenting on the benefits of the legislation in terms of fair tax policy.

02:11 PM -- Ms. Kelly Berg, AMG National Trust, testified in support of the legislation.

02:12 PM -- Ms. Sheryl Bollinger, AMG National Trust, responded to committee questions.


BILL:	SB06-211
TIME:	02:12:40 PM
MOVED:	McCluskey
MOTION:	Refer Senate Bill 06-211 to the Committee of the Whole. The motion passed on a 10-0-3 vote.
SECONDED:	Benefield
		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

02:16 PM

Recess.

02:18 PM -- Senate Bill 06-122 - Concerning Adolescent Substance Abuse Prevention

Representative Weissmann, prime sponsor, explained that the bill creates the Adolescent Substance Abuse Prevention and Treatment Fund to consist of revenue from surcharges imposed on persons convicted of certain underage drinking crimes. Moneys in the fund are to be appropriated by the General Assembly to the Division of Alcohol and Drug Abuse in the Department of Human Services for adolescent substance abuse prevention and treatment programs. The bill establishes a $25 surcharge on criminal convictions for certain underage drinking crimes, raising an estimated $55,978 in FY 2006-07 and $88,290 per year thereafter. All revenue would be credited to the newly-created Adolescent Substance Abuse Prevention and Treatment Fund.

After a brief committee discussion, Representative Vigil, Chairman, placed the bill on the table for action.


BILL:	SB06-122
TIME:	02:31:33 PM
MOVED:	Benefield
MOTION:	Refer Senate Bill 06-122 to the Committee on Appropriations. The motion passed on a 8-1-4 vote.
SECONDED:	McCluskey
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	No
	Frangas	Excused
	Garcia	Yes
	Harvey	Excused
	Jahn	Yes
	Kerr	Excused
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 8 NO: 1 EXC: 4 ABS: 0 FINAL ACTION: PASS

02:35 PM

Recess.

02:40 PM - House Concurrent Resolution 06-1005 - Concerning the Suspension of the State Gasoline Tax

Representative Cloer, prime sponsor explained the provisions of the resolution. Representative Cloer said that the concurrent resolution requests voter approval for a constitutional amendment to allow the Joint Budget Committee (JBC) of the General Assembly to temporarily reduce or suspend the excise tax on gasoline and other motor fuels for a period of up to 90 days on one or more occasions. The committee engaged in a discussion about the fiscal note and the cost of the bill. Staff distributed a memorandum on gasoline taxes to committee members (Attachment A). The committee discussed the cost of the bill in terms of less money spent on transportation projects as compared to the gas savings that individuals would reap from the resolution. Representative Cloer commented that on average, drivers would save about $14 per month from the proposed suspension. The committee continued to discuss the projects that would receive less funding under the bill. A spokesperson from the Colorado Department of Transportation commented on the foregone revenues for certain transportation projects (see following testimony).

The following persons testified:

02:41 PM -- Mr. Herman Stockinger, Colorado Department of Transportation, testified in opposition toward the bill. Mr. Stockinger said that if the gas tax was suspended, it would benefit individuals by about $14 per month. Mr. Stockinger commented on the financial loss that governments and the state patrol would incur under the resolution. Mr. Stockinger closed by commenting on the list of transportation projects that would receive less funding under the resolution.

02:45 PM -- Mr. Mike Braaten, Colorado Municipal League, testified in opposition toward the bill. Mr. Braaten commented that the resolution would leave less money for the Highway Users Tax Fund and cost local governments money that fund vital transportation projects. Mr. Braaten closed by saying that the gas tax is a user fee that pays for the construction and upkeep of the local government transportation infrastructure.
02:49 PM -- Mr. Tony Milo, Colorado Contractors Association, testified in opposition toward the resolution. Mr. Milo said that the measure will carry a much greater cost than the benefit it provides Colorado taxpayers.

02:52 PM -- Mr. Stan Dempsey, Colorado Petroleum Association, testified in opposition toward the resolution. Mr. Dempsey discussed the impact the bill would have on local communities especially on the upkeep of roads and bridges. Mr. Dempsey discussed the negative impact on the state transportation infrastructure the measure would impose should it become law. Mr. Dempsey closed saying that gasoline distributors would find the collection and remitting process much more work if the tax is intermittently suspended. Colorado needs a good transportation infrastructure to move goods from production to the public.

02:59 PM -- Ms. Sheila Hicks, Colorado Cross-Disability Coalition, testified in support of the measure. Ms. Hicks talked about the dependency that persons with disabilities have on secondary modes of transportation. Lower gasoline prices can mean that persons with disabilities will have more transportation options should the legislation pass.

03:01 PM -- Ms. Carolyn Myers, representing self, testified in support of the legislation and discussed the financial burden that high gas prices place on middle-class citizens.

After a brief committee discussion, the bill was placed on the table for action.


BILL:	HCR 06-1005
TIME:	03:06:56 PM
MOVED:	Cloer
MOTION:	Refer House Concurrent Resolution 06-1005 to the Committee on Appropriations. The motion failed on a 9-4-0 vote.
SECONDED:	Benefield
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	No
	Frangas	Yes
	Garcia	No
	Harvey	No
	Jahn	No
	Kerr	No
	Marshall	No
	Massey	No
	McCluskey	Yes
	Judd	No
	Vigil	No
Not Final YES: 4 NO: 9 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HCR 06-1005
TIME:	03:11:37 PM
MOVED:	Garcia
MOTION:	Moved to postpone House Concurrent Resolution 06-1005 indefinitely. The motion passed on a 9-4-0 vote.
SECONDED:	Judd
		VOTE
	Benefield	No
	Cloer	No
	Crane	Yes
	Frangas	No
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	No
	Judd	Yes
	Vigil	Yes
Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:12 PM

Adjourn.