Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:03/16/2006
ATTENDANCE
Time:10:59 AM to 12:36 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:
SB06-116
HB06-1347
HB06-1363		Referred to the Committee of the Whole
Referred to Appropriations
Laid Over


10:59 AM -- Senate Bill 06-116 - Concerning the Tobacco Settlement Program

Representative Schultheis, prime sponsor, explained the provisions of the bill and distributed a fact sheet on the bill (Attachment A). He explained that Senate Bill 06-116 is recommended by the Legislative Audit Committee. Current law requires the committee to design a schedule to review tobacco settlement programs to ensure that each program is reviewed and evaluated at least once every three years. This bill requires the committee to design a schedule for review and evaluation of programs that ensures that each program is reviewed and evaluated as deemed necessary by the committee after consultation with the State Auditor.

The following person testified:

11:03 AM -- Ms. Heather Sanchez, Office of the State Auditor, responded to committee questions. Ms. Sanchez said that currently, there are 10 programs that receive money from the Master Tobacco Settlement Agreement. Under the bill, the State Auditor would work together with the Legislative Audit Committee to determine when to audit programs that receive money from the settlement agreement.

The committee discussed the programs that receive money under the Tobacco Settlement Agreement and the state law as it pertains to auditing programs. After a brief committee discussion, Representative Vigil, Chairman, placed the bill on the table for action.





BILL:SB06-116
TIME: 11:09:36 AM
MOVED:Cloer
MOTION:Refer Senate Bill 06-116 to the Committee of the Whole. The motion passed on a 13-0-0 vote.
SECONDED:McCluskey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:13 AM -- House Bill 06-1347 - Concerning the Identity Theft and Financial Fraud Deterrence Act

Representative McGihon, prime sponsor, explained that House Bill 06-1347 creates the Identity Theft and Financial Fraud Board in the Department of Public Safety (DPS). It creates a task force for the investigation and prosecution of identity theft and financial fraud in the Colorado Bureau of Investigation (CBI) and creates the Colorado Identity Theft and Financial Fraud Cash Fund to be funded by surcharges on certain licenses and uniform commercial code (UCC) filings.

Representative McGihon continued the presentation saying the task force will assist local law enforcement agencies in the investigation and prosecution of identity theft and financial fraud. To accomplish this, the task force will provide educational materials, training, and consultation services to local police and sheriff departments, district attorneys, and the Attorney General. The task force will also collect data and analyze trends and patterns in identity theft and financial fraud. The board will oversee the operations of the task force.

The following persons testified:

11:14 AM -- Mr. Don Childears, Colorado Bankers Association, testified in support of the bill and said that this bill can impact everyone in the room. The legislation has a sunset, provisions for reporting requirements, and provides for a cash-funded program that can accept gifts and grants in addition to cash funding. Mr. Childears discussed the fees in current law that fund the program and commented on the privacy concerns that may affect the sharing of financial information.

The committee discussed the sharing of electronic data. Members of the committee discussed whether a task force is needed given the role of the Attorney General Office. Mr. Childears commented that Colorado would be the first state that creates a national model for a task force that would address the problem of identity theft.

11:31 AM -- Mr. John Stoffelor, Alliance for Retired Americans, testified in support of the bill and pointed out that most of the identity-theft crimes target seniors.

After a brief committee discussion, the bill was placed on the table for action.
BILL:HB06-1347
TIME: 11:33:17 AM
MOVED:Cloer
MOTION:Refer House Bill 06-1347 to the Committee on Appropriations. The motion passed on a 12-1-0 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:38 AM -- House Bill 06-1363 - Concerning Grants for Programs Designed to Prevent Juvenile Delinquency

Representative Benefield, prime sponsor, explained the provisions of the bill and commented on the fees in the bill. Representative Benefield distributed amendment L.004 (Attachment B), and a packet of materials on fees and DUIs (Attachment C). The committee discussed the fees in the bill that are diverted to the clerk of the court administration. Representative Benefield said that provisions in the bill require about 5 percent or about $3.75 of total fees to fund administration through the General Fund. The committee discussed the $75 fee and how it is distributed. Members of the committee questioned whether the portion of money going to the General Fund is necessary and whether a portion of the fee should go for court administration. Representative Vigil, Chairman, discussed the fiscal note with Representative Benefield and Mr. Harry Zeid, fiscal analyst was asked to respond to committee questions.

The following persons testified:

11:54 AM -- Mr. Harry Zeid, Legislative Council Staff, responded to committee questions regarding the fiscal note. Mr. Zeid discussed the revenue projections for fees collected for FY 2006-07 and FY 2007-08.

12:01 PM -- Mr. Eric Philp, State Court Administrators Office, responded to committee questions. Mr. Philp commented on the state programs that benefit juveniles.

12:04 PM -- Mr. Mark Messenbaugh, Boys and Girls Clubs of America, testified in support of the bill and commented on the funding issues in the bill. Mr. Messenbaugh said that the fee as a funding source in House Bill 06-1363 is an appropriate funding source for after-school programs which reduce juvenile crime levels. In our state, crime-prevention is a concern. Mr. Messenbaugh commented that the amendment allows the courts to waive the fee in the bill for persons who commit a crime and are indigent. In general, the bill targets risky driving behavior with an additional fee that offsets the costs that are imposed on society from this behavior. Mr. Messenbaugh closed by saying that for every state dollar invested in school programs, the state receives a 10 to 1 return in the long run. The committee continued to discuss the fee revenue in the bill and in current law. Representative Benefield commented on the correlation between fees and a reduction in juvenile delinquency and other types of risky behavior. After a brief discussion, Mr. Messenbaugh concluded his comments by saying that House Bill 06-1363 can save the state money in the long run. The committee continued the discussion by questioning whether the bill is using the correct funding mechanism to fund programs in the bill.

12:28 PM -- Mr. Gregory Staritzky, citizen, testified in opposition toward the bill. Mr. Staritzky said that there is no nexus between a reduction in crime and after-school programs. The bill is unfair because it allows the state to be able to take away money from people in terms of fees for engaging in criminal behavior. Mr. Staritzky argued that the fee in the bill is a tax and should only be imposed if the penalty fits the crime. Mr. Staritzky closed by saying that the bill discriminates again people because they engage in crimes.

After a discussion on fees between Representative Vigil and Representative Benefield, the bill was pulled off the table and rescheduled for Thursday, March 23, 2006 (upon adjournment in HCR 0107).


12:36 PM

Adjourn.