Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:04/13/2006
ATTENDANCE
Time:11:46 AM to 01:22 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:
HB06-1395
HB06-1050
HB06-1164
HB06-1114
SB06-045
HB06-1163
HCR06-1002
SB06-173
HB06-1394		Referred to Appropriations
Amended, Referred to Appropriations
Postponed Indefinitely
Postponed Indefinitely
Referred to Appropriations
Postponed Indefinitely
Amended, Referred to the Committee of the Whole
Referred to Appropriations
Referred to the Committee of the Whole


11:46 AM -- House Bill 06-1395 - Concerning Residential Child Health Care

Representative Buescher, prime sponsor, distributed a fact sheet on the bill (Attachment A) and explained the provisions in the bill. This bill is recommended by the Joint Budget Committee. It includes the following provisions regarding residential child health care:

• defines psychiatric residential treatment facility (PRTF) for purposes of the program for residential child health care;
• authorizes the program for residential child health care to provide services to Medicaid-eligible children residing in PRTFs;
• requires the Medical Services Board to define in rule the staff permitted to order, monitor, and assess seclusion and restraint in PRTFs, and the corresponding restrictions on the use of seclusion and restraint;
• for FY 2006-07 and the first half of FY 2007-08, specifies that the 20 percent county share shall be reduced to the county's FY 2004-05 actual contribution;





• on or before February 1, 2007, requires the Department of Human Services to submit recommendations to the Joint Budget Committee on a county share for the actual cost of providing residential child health care services for the last half of FY 2007-08;
• for FY 2008-09 and each fiscal year thereafter, requires that the county share be 20 percent;
• authorizes the department to seek supplemental funding related to the implementation of the placement of children in a residential child health care program for both FY 2006-07 and FY 2007-08;
• defines residential child care facility to include community-based residential child care facilities, shelter facilities, and therapeutic residential child care facilities (TRCCFs); and
• establishes a provisional license for specified mental health professionals who are working in residential child care facilities.

Representative Buescher closed by commenting on the fiscal impact of the bill on the General Fund.

The following persons testified:

11:53 AM -- Ms. Pat Ratliff, Colorado Counties Incorporated, testified in support of the bill.

11:53 AM -- Ms. Holly Stevenson, Colorado Health Care Policy and Financing, testified in support of the bill.

11:54 AM -- Ms. Judy Rodriguez, Colorado Department of Human Services, testified in support of the legislation.
BILL:HB06-1395
TIME: 11:54:37 AM
MOVED:Cloer
MOTION:Refer House Bill 06-1395 to the Committee on Appropriations. The motion passed on a 13-0-0.
SECONDED:Judd
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









11:55 AM -- House Bill 06-1050 - House Bill 06-1050 - Concerning A Budget Stabilization Fund - (for action only)

House Bill 06-1050 was initially heard by the committee on March 8, 2006. (During this meeting, Representative Buescher and Representative Hall explained that House Bill 06-1050 creates a rainy day fund from several funding sources. Representative Buescher distributed amendment L.003 and said the amendment changes the funding sources for the rainy day fund and also allows money in the fund to be used for any purpose with a two-thirds vote of the legislature. Funding sources include: an annual General Fund appropriation of $5 million (appropriation is optional if the fund balance is at least 5% of total General Fund appropriations under the 6% limit of the preceding fiscal year or if General Fund revenue is estimated to limit General Fund appropriations to growth of less than 4%.); $10 million of the tobacco settlement money that is credited to the General Fund annually; and 10% of excess General Fund reserves.)

During the April 13 meeting, the committee heard the bill for action only, Representative Buescher distributed amendment L.008 (Attachment B), a preamended version of House Bill 06-1050 incorporating amendment L.008 (Attachment C), and a summary sheet on amendment L.008 from the Office of Legislative Legal Services (Attachment D). Representative Buescher explained the following. The amendment provides for the funding sources for the Budget Stabilization Fund in House Bill 06-1050 beginning FY 2006-07. The three primary funding sources are: from the General Fund, for FY 2006-07, an appropriation in the amount of any difference between the 6 percent limit and the amount of General Fund appropriations actually made, for each subsequent year, $5 million; plus, 10 percent of the amount of any General Fund surplus that is credited to the Highway Users Tax Fund and the Capital Construction Fund (2/3, 1/3 diversion); plus, from the tobacco litigation settlement moneys, $10 million per year unless the state does a full or partial tobacco securitization, in which case the first $150 million of net proceeds.

Representative Buescher continued to discuss the provisions in the amended version of the bill that would allow the General Assembly to access money from the Budget Stabilization Fund. When General Fund revenue will limit General Fund appropriations under the 6 percent limit to growth of less than 4 percent, the bill allows the General Assembly to access an amount less than or equal to 1/2 of the difference between 4% General Fund appropriations growth and the amount below 4% that General Fund appropriations are able to increase. In addition, with an affirmative vote of 2/3 of the General Assembly, the fund can be used for any purpose, including to maintain the 4% statutory reserve. There is no limit on the amount that is used when the fund is used with an affirmative vote of 2/3 of the General Assembly.

The committee discussed the amendment as a change that would allow for a funding source from tobacco litigation settlement moneys should the state securitize the revenue stream from the Master Settlement Agreement. (In order for the committee to adopt amendment L.008, it reconsidered amendment L.003 which was adopted at a previous meeting. Once the amendment was reconsidered, a substitute motion to adopt amendment L.008 passed without objection by those members present. The committee took final action on the bill and referred it to the Committee on Appropriations as amended, on a 12-1-0 vote (see following vote sheets).













BILL:HB06-1050
TIME: 12:10:09 PM
MOVED:Judd
MOTION:Moved to reconsider amendment L.003 (Attachment E). (On March 8, 2006, the House Finance Committee adopted amendment L.003. The amendment changes the funding sources for the rainy day fund and also allows money in the fund to be used for any purpose with a two-thirds vote of the legislature. Funding sources include: an annual General Fund appropriation of $5 Million (appropriation is optional if the fund balance is at least 5% of total General Fund appropriations under the 6% limit of the preceding fiscal year or if General Fund revenue is estimated to limit General Fund appropriations to growth of less than 4%.); $10 million of the tobacco settlement money that is credited to the General Fund annually; and 10% of excess General Fund reserves.) The motion to reconsider amendment L.003 passed on a 13-0-0 vote.
SECONDED:Cloer
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
Not Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS





















BILL:HB06-1050
TIME: 12:11:01 PM
MOVED:Cloer
MOTION:Moved a substitute motion to adopt amendment L.008. The amendment provides for the funding sources for the Budget Stabilization Fund in House Bill 06-1050 beginning FY 2006-07. The three primary funding sources are: from the General Fund, for FY 2006-07, an appropriation in the amount of any difference between the 6 percent limit and the amount of General Fund appropriations actually made, for each subsequent year, $5 million; plus, 10 percent of the amount of any General Fund surplus that is credited to the Highway Users Tax Fund and the Capital Construction Fund (2/3, 1/3 diversion); plus, from the tobacco litigation settlement moneys, $10 million per year unless the state does a full or partial tobacco securitization, in which case the first $150 million of net proceeds. The substitute motion to adopt amendment L.008 passed without objection by those members present.
SECONDED:McCluskey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB06-1050
TIME: 12:11:32 PM
MOVED:Frangas
MOTION:Refer House Bill 06-1050, as amended, to the Committee on Appropriations. The motion passed on a 12-1-0.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
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


12:13 PM -- House Bill 06-1164 - Concerning the Creation of a Rainy Day Fund - (for action only)

Given the House Finance Committee's adoption of House Bill 06-1050, as amended, Representative Hall, prime sponsor, asked the committee to postpone House Bill 06-1164 indefinitely.
BILL:HB06-1164
TIME: 12:13:15 PM
MOVED:Cloer
MOTION:Moved to postpone House Bill 06-1164 indefinitely. The motion passed on a 13-0-0 vote.
SECONDED:Judd
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


12:14 PM -- House Bill 06-1114 - Concerning the Creation of a Rainy Day Fund - (for action only)

Given the House Finance Committee's adoption of House Bill 06-1050, as amended, Representative Lundberg, prime sponsor, asked the committee to postpone House Bill 06-1114 indefinitely.
BILL:HB06-1114
TIME: 12:14:56 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1114 indefinitely. The motion passed on a 10-2-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:17 PM -- Senate Bill 06-045 - Concerning the Investigation of Child Care Providers

Representative Solano, prime sponsor, explained that Senate Bill 06-045 was recommended by the Early Childhood and School Readiness Commission and includes the following provisions regarding the investigation of child care providers:

• requires a fingerprint-based criminal history records check (FCC) for exempt family child care home providers who contract with counties as Colorado Child Care Assistance Program (CCCAP) providers and adults 18 years of age or older living in an exempt family child care home be conducted through the Colorado Bureau of Investigation (CBI) if the persons have lived in Colorado for more than two years;
• specifies that for those persons living in Colorado less than two years, the FCC shall include both a CBI and Federal Bureau of Investigation (FBI) records check; and
• strikes language requiring that all licensed child care providers be subject to a FCC that includes both a CBI and FBI records check.

Representative Solano concluded by saying that under current law, the FCC is required for licensed child care providers through the CBI and the FBI for persons living in the state less than two years. The bill as amended effectively maintains current law for licensed child care providers and establishes the same FCC requirement for exempt child care providers.

The committee and Representative Solano briefly discussed the fiscal note.


BILL:SB06-045
TIME: 12:21:38 PM
MOVED:Judd
MOTION:Refer Senate Bill 06-045 to the Committee on Appropriations. The motion passed on a 11-1-1 vote.
SECONDED:Benefield
VOTE
Benefield
Yes
Cloer
Excused
Crane
No
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:22 PM -- House Bill 06-1163 - Concerning the Securitization of Tobacco Litigation Settlement Revenues - (for action only)

Given the House Finance Committee's adoption of House Bill 06-1050, as amended, and a new bill that will be introduced that deals with the same issues, Representative Penry, prime sponsor, asked the committee to postpone House Bill 06-1163 indefinitely.






















BILL:HB06-1163
TIME: 12:23:07 PM
MOVED:Harvey
MOTION:Moved to postpone House Bill 06-1163 indefinitely. The motion passed on a 12-0-1 vote.
SECONDED:Kerr
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:26 PM - House Concurrent Resolution 06-1002 - Concerning a Constitutional Rainy Day Fund (for action only)

The House Finance Committee initially heard House Concurrent Resolution 06-1002 on March 8, 2006. During this meeting Representative Gardner, prime sponsor, explained the provisions of the resolution that create a rainy day fund. He distributed amendment L.001 (Attachment F) to committee members. Representative Gardner explained that the resolution would use General Fund revenue retained by the state under Referendum C in excess of the amount estimated to be retained in the Blue Book during state fiscal years 2005-06 through 2009-10 as a funding source. Additional money from any legal source can be transferred or appropriated to the fund. He explained that there is no funding cap in the resolution. Representative Gardner said that beginning in FY 2010-11, money can be transferred from the fund to the General Fund if revenue is insufficient to allow for at least 5 percent growth in General Fund appropriations. The transfer would require an affirmative vote of two-thirds of each house of the General Assembly.

The committee discussed the funding sources in the resolution and the amendment that if adopted would change the funding sources. After a brief committee discussion, Representative Frangas moved amendment L.001. Representative Gardner explained that the amendment removes this initial funding mechanism in the resolution. The motion passed without objection by those members present.

Representative Garcia distributed amendment L.004 (Attachment G) and an "Unofficial Preamended Version of HCR 06-1002 with amendment L.004 (Attachment H) to committee members. He explained that the amendment would allow the General Assembly to access the rainy day fund with a 2/3 majority vote of each chamber and a majority vote if revenues are insufficient to meet the 6 percent General Fund appropriations limit. The committee discussed the need to access money in the rainy day fund should state revenues not allow the state to fund General Fund appropriations up to the six percent limit.




Representative Harvey discussed the need to take a more constrained approach to accessing the rainy day fund by majority vote and discussed an amendment to L.004 that would reduce the "6 percent" trigger to 5 percent. The committee discussed the reduced trigger and concern that future caseload growth for programs that are funded with General Fund appropriations may grow at a higher rate than 6 percent. Representative Marshall commented that the 5 percent trigger would not allow the General Assembly flexibility during an economic downturn to restore program funding to the current 6 percent limit, which may ultimately fall short of future expected funding needs. The committee continued to discuss each trigger and advantages to each.

(Prior to taking action on additional amendments to HCR 06-1002, the bill drafter informed the committee that provisions in amendment L.004 included the same "non-funding" provisions in amendment L.001. Thus, because of the settled question issue, the committee reconsidered amendment L.001. The motion passed on a 12-0-1 vote. Representative Garcia moved amendment L.004. Prior to the vote, Representative Harvey moved to amend L.004 to reduce the 6 percent trigger to 5 percent. The motion failed on a 7-5-1 vote and amendment L.004 subsequently passed on a 11-1-1 vote.

The committee discussed the constitutional protections afforded to a state rainy day fund by HCR 06-1002. As amended by the committee, the resolution does not contain a specific funding source. The funding sources are now contained in House Bill 06-1050, which was adopted by the committee as a previous bill. HCR 06-1002 was referred to the Committee of the Whole. The motion passed on a 10-2-1 vote.
BILL:HCR 06-1002
TIME: 12:36:57 PM
MOVED:Frangas
MOTION:Moved amendment L.001. (During the March 8, 2006, committee meeting, Representative Gardner explained that the resolution would use General Fund revenue retained by the state under Referendum C in excess of the amount estimated to be retained in the Blue Book during state fiscal years 2005-06 through 2009-10 as a funding source. Amendment L.001 removes this initial funding mechanism in the resolution. The motion passed without objection by those members present. (The following motion to reconsider amendment L.001 was made after the drafter pointed out that subsequent amendments discussed by the committee would be a settled question.)
SECONDED:Massey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:HCR 06-1002
TIME: 12:37:59 PM
MOVED:Garcia
MOTION:Moved to reconsider amendment L.001. The motion passed on a 12-0-1 (see above note).
SECONDED:Frangas
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Not Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:HCR 06-1002
TIME: 12:43:14 PM
MOVED:Harvey
MOTION:Moved a substitute motion to adopt amendment L.004. The amendment would allow the General Assembly to access the rainy day fund with a 2/3 majority vote of each chamber and a majority vote if revenues are insufficient to meet the 6 percent General Fund appropriations limit. The motion passed on a 11-1-1 vote after the following amendment to amendment L.004 failed.
SECONDED:Marshall
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Not Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS
jason 3 and 4 incorporated changes in 1


BILL:HCR 06-1002
TIME: 12:55:55 PM
MOVED:Harvey
MOTION:Moved to amend amendment L.004 by lowering the appropriations limit trigger from 6 to 5 percent. Thus, if revenues were to allow appropriations to only grow by 5 percent rather than 6 percent, the General Assembly could access revenue in the rainy day fund by a majority vote. The motion failed on a 7-5-1 vote.
SECONDED:McCluskey
VOTE
Benefield
No
Cloer
Excused
Crane
Yes
Frangas
No
Garcia
No
Harvey
Yes
Jahn
No
Kerr
Yes
Marshall
No
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
No
Not Final YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HCR 06-1002
TIME: 01:00:45 PM
MOVED:Harvey
MOTION:Refer House Concurrent Resolution 06-1002, as amended, to the Committee of the Whole. The motion passed on a 10-2-1 vote.
SECONDED:Garcia
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
No
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS




01:02 PM -- Senate Bill 06-173 - Concerning Mileage Allowances for State Officers and Employees

Representative Marshall, prime sponsor, explained that Senate Bill 06-173 increases the state reimbursement rate for mileage traveled by state employees in a personal vehicle on official state business. Under the bill, the state would provide a portion of the IRS rate rounded to the rounded to the nearest cent. Beginning January 1, 2006, the IRS rate is $0.445 per mile. Representative Marshall discussed the fiscal note and said it reflected a reimbursement rate of $0.33 for two wheel drive vehicles and $0.36 for four wheel drive vehicles in FY 2005-06.

The following person testified:

01:03 PM -- Ms. Christine Watson, League of Women Voters of Colorado, testified in support of the legislation.
BILL:SB06-173
TIME: 01:06:38 PM
MOVED:Marshall
MOTION:Refer Senate Bill 06-173 to the Committee on Appropriations. The motion passed on a 12-0-1 vote.
SECONDED:Garcia
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS















01:08 PM -- House Bill 06-1394 - Concerning the Payment of Specific Ownership Taxes by Rental Companies of Class A Motor Vehicles

Representative Vigil, prime sponsor, explained that House Bill 06-1394 authorizes companies renting Class A motor vehicles for periods of less than 45 days to pay 2 percent of the rental fees in place of paying normal specific ownership tax (SOT) on this type of vehicle. Class A vehicles are trucks, truck tractors, trailers, or semitrailers that are classified as interstate commercial carriers and used to transport persons or property over public highways in the state. Representative Vigil discussed the fiscal note expenditure and said that the $5,214 expenditure may be contained in the long bill for the Colorado Department of Revenue.

The following persons testified:

01:09 AM -- Mr. Greg Fulton, Colorado Motor Carriers Association, testified in support of the legislation and discussed the administration of the specific ownership tax.

01:14 AM -- Mr. Justin Frank, U-Haul Colorado, testified in support of the legislation and commented that the bill changes the timing for payment of the specific ownership tax from an annual basis to a monthly basis.
BILL:HB06-1394
TIME: 01:19:38 PM
MOVED:Vigil
MOTION:Moved to refer House Bill 06-1394 to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:McCluskey
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


01:22 PM

Adjourn.