House Committee on Finance (04/06/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/06/2006	ATTENDANCE

Time:	12:29 PM to 01:07 PM	Benefield	X
		Cloer	E
Place:	HCR 0107	Crane	X
		Frangas	X
This Meeting was called to order by		Garcia	*
	Representative Vigil	Harvey	X
		Jahn	X
This Report was prepared by		Kerr	X
	Ron Kirk	Marshall	E
		Massey	E
		McCluskey	X
		Judd	X
		Vigil	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB06-1324 HB06-1303 SB06-197 SB06-201 SB06-202		Postponed Indefinitely Amended, Referred to Appropriations Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole

12:30 PM -- House Bill 06-1324 - Concerning Funding for the State Council on the Arts - (for action only)

(This bill was initially heard by the House Finance Committee on February 23, 2006. During this meeting, Representative Borodkin, prime sponsor explained that under current law 49.8 percent of the funds available for distribution in the Limited Gaming Fund at the end of each fiscal year are transferred to the General Fund and 0.2 percent are transferred to the Colorado Travel and Tourism Promotion Fund. Beginning with FY 2005-06, House Bill 06-1324 eliminates the transfer to the Colorado Travel and Tourism Promotion Fund and allocates 5 percent of the General Fund share remaining after the distribution to the Local Government Gaming Impact Fund to the State Council on the Arts.)

Representative Borodkin, prime sponsor, explained that funding in the bill for the State Council on the Arts is currently being debated by the Senate in another bill and thus, recommended that the bill be postponed indefinitely.


BILL:	HB06-1324
TIME:	12:30:35 PM
MOVED:	Harvey
MOTION:	Moved to postpone House Bill 06-1324 indefinitely. The motion passed on a 9-0-4 vote.
SECONDED:	Benefield
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	Yes
	Frangas	Yes
	Garcia	Excused
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Excused
	Massey	Excused
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 9 NO: 0 EXC: 4 ABS: 0 FINAL ACTION: PASS

12:31 PM -- House Bill 06-1303 - Concerning the County Environmental Hazard Remediation Fund and County Governments - (for action only)

(The following background information on House Bill 06-1303 was provided by Representative Plant during the February 22, 2006, meeting of the House Finance Committee.) As introduced, House Bill 06-1303 was recommended by the Joint Budget Committee and directs the State Treasurer to transfer $30 million on July 1, 2006, from the Hazardous Substance Response Fund to the newly-created County Environmental Hazard Remediation Fund. Money in the new fund would be allocated by the Department of Local Affairs to counties based on population. Representative Plant said that the bill requires the money to be used by counties to identify, clean-up, or remediate environmental hazards. The money in the Hazardous Substance Response Fund would be made available to counties for certain environmental purposes.

(The following discussion and action on amendments L.004 and L.005 took place during the April 5, 2006, House Finance Committee meeting.)

The committee discussed the use of funds by counties in the bill and the figures in the fiscal note. Representative Plant distributed amendment L.005 (Attachment A) and commented that it reduces the bill's fiscal impact and requires that only interest earnings on the money in the Hazardous Substance Response Fund be used by counties for waste management efforts.

Representative Frangas distributed amendment L.004 (Attachment B) to committee members and explained that it establishes a process that enables local governments to apply for grants or other forms of assistance to assist with the impacts associated with superfund sites in the state. The committee discussed amendment L.004 and current law as it applies to a local government's ability to obtain financial assistance to clean up superfund sites.

Representative Frangas moved amendment L.004. Prior to the committee vote, a substitute motion to adopt amendment L.005 was made, but it failed on a 8-5-0 vote. A subsequent motion to amend the legislative declaration in L.004 passed without objection by those members present before the final vote on amendment L.004 was taken. The concluding vote to adopt amendment L.004, as amended, was adopted on a 7-6-0 vote. Representative Vigil, Chairman, took the bill off the table.

(The following final action was taken by the House Finance Committee on Thursday, April 6, 2006.)

Representative Vigil, placed House Bill 06-1303, as amended, on the table for action and it was referred to the Committee on Appropriations. The motion passed on a 5-4-4 vote.


BILL:	HB06-1303
TIME:	12:31:52 PM
MOVED:	Judd
MOTION:	Refer House Bill 06-1303, as amended by the House Finance Committee on April 5, 2006, to the Committee on Appropriations. The motion passed on a 5-4-4 vote.
SECONDED:	Frangas
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	No
	Frangas	Yes
	Garcia	Excused
	Harvey	No
	Jahn	Yes
	Kerr	No
	Marshall	Excused
	Massey	Excused
	McCluskey	No
	Judd	Yes
	Vigil	Yes
Final YES: 5 NO: 4 EXC: 4 ABS: 0 FINAL ACTION: PASS

12:33 PM -- Senate Bill 06-197 - Concerning an Extension for the Nongame and Endangered Wildlife Income Tax Checkoff

Representative Curry, prime sponsor, explained that the Nongame and Endangered Wildlife Income Tax Checkoff was the first program to receive donations from Colorado's income tax checkoff program. In 1977, Colorado was the first state to create a tax "checkoff" program allowing taxpayers to voluntarily contribute to an organization on the income tax form. Representative Curry pointed out that the Nongame and Endangered Wildlife Fund has appeared on the state income tax form each year since 1977. This checkoff has received more donations than any other program each year. During the past ten years, from tax year 1995 through 2004, total collections were $4.2 million for 440,592 returns.

The following persons testified:

12:34 PM -- Mr. Steve Cassin, Chief Financial Officer, Colorado Division of Wildlife, testified in support of the bill and said that the Nongame and Endangered Wildlife checkoff generates about $400,000 for the division each year. Mr. Cassin closed by saying that revenue from the income tax checkoff is used by the division to manage the wildlife that is protected under the bill.

12:36 PM -- Ms. Jen Boulton, Colorado Trout Unlimited, urged the committee to "vote yes" on the bill.


BILL:	SB06-197
TIME:	12:37:14 PM
MOVED:	Benefield
MOTION:	Refer Senate Bill 06-197 to the Committee of the Whole. The motion passed on a 9-1-3 vote.
SECONDED:	Judd
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Excused
	Massey	Excused
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 9 NO: 1 EXC: 3 ABS: 0 FINAL ACTION: PASS

12:38 PM -- Senate Bill 06-201 - Concerning an Extension for the Colorado Domestic Abuse Income Tax Checkoff

Representative Benefield, prime sponsor, explained the provisions of the bill. She noted that the Colorado Domestic Abuse Program Fund first appeared on the 1983 income tax form and has received donations for 21 of 23 subsequent years. During the past ten years from tax year 1995 through 2004, total collections were $3.1 million for 363,226 returns. Representative Benefield said that the fiscal note reflected that average individual donations were $8.58 over this period and discussed the program. The Colorado Domestic Abuse Program Fund provides funding for community-based domestic abuse programs across Colorado. These agencies provide 24-hour crisis line response, emergency safe shelter, and counseling and advocacy services for victims of domestic violence and their children. Agencies also provide extensive community education services to local organizations, schools, and professional groups.
The following persons testified:

12:42 PM -- Mr. Matthew Flora, Department of Human Services, testified in support of the bill and distributed a handout to the committee on Domestic Abuse Assistance Programs (Attachment C). Mr. Flora closed by encouraging the committee to support the legislation.

12:44 PM -- Ms. Emily White, Colorado Coalition Against Domestic Violence, testified in support of the legislation and commented on the success of the program.

Representative Vigil, placed the bill on the table for action. He commented that the extension in the bill on page 2 for ten years should be reduced to three years. The three year extension would provide more uniformity to the existing checkoff programs that already have a three-year duration. The three year continuation allows for more frequent program reviews by the General Assembly. After a brief committee discussion, Representative Crane moved to change the 10-year continuation to three years. The motion passed without objection by those members present. The bill was referred, as amended, to the Committee of the Whole. The motion passed on a 9-3-1 vote.


BILL:	SB06-201
TIME:	12:47:23 PM
MOVED:	Crane
MOTION:	Moved to amend the 10-year extension of the income tax checkoff program to 3 years and make conforming amendments to the repealer provision (page 2, line 6, strike "2017," and substitute "2010,"; line 14, strike "2018," and substitute "2011,".) The motion passed without objection by those members present.
SECONDED:	Harvey
		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:	SB06-201
TIME:	12:48:41 PM
MOVED:	Benefield
MOTION:	Refer Senate Bill 06-201, as amended, to the Committee of the Whole. The motion passed on a 9-1-3 vote.
SECONDED:	Kerr
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Excused
	Massey	Excused
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 9 NO: 1 EXC: 3 ABS: 0 FINAL ACTION: PASS

12:50 PM -- Senate Bill 06-202 - Concerning the "Colorado Fair Debt Collection Practices Act"

Representative Vigil, prime sponsor, explained the provisions of the bill. The bill modifies the process for collecting debts due the state. Representative Vigil said that among other things, the bill:

eliminates the requirement that state agencies refer debts to the State Controller in the Department of Personnel and Administration when payment arrangements have been made;
extends the time for assigning certain debts to private collections agencies;
allows the department to collect debts on behalf of other political subdivisions of the state; and
clarifies that if a debt is litigated, the debtor is liable for attorney fees, costs, and fees in addition to the collection fee.

Representative Vigil closed by saying the bill also specifies that efforts to collect moneys owed to the state are not subject to civil liabilities under the "Colorado Fair Debt Collection Practices Act", and that the controller is subject to disciplinary action if he or she fails to comply with the act.

The following persons testified:

12:52 PM -- Ms. Jennifer Okes, Colorado Department of Personnel and Administration, testified in support of the bill. Ms. Okes said that the bill would allow for more efficient state debt collections.

Representative Judd and Ms. Okes discussed the provisions in the bill (pages 6 and 7) that allow charges for attorney and collection fees. Ms. Okes commented that the 25 percent provision for collection costs is a maximum rate. As an example of state agencies that assess a lower fee, central collections assesses a 15 percent fee when using a private collection agency. Attorney fees in some cases are assessed at an 18 percent fee. Mr. Okes concluded saying that the fee structure in the bill will allow the state to break even when costs are incurred to collect state debt.

Representative Judd asked Mr. Greg Mecham from the department to respond to questions regarding the state debt collection process.

12:57 PM -- Mr. Greg Mecham, Central Collections, Colorado Department of Personnel and Administration, discussed the collections process used by the state. Generally, when looking at damage provisions in the bill, fees may be charged for a check that bounces to cover NSF fees. Mr. Mecham closed by saying since the 1970s or 1980s, debtors owe the state about $300 million in total debt. This amount is much less than total debt owed to states other than Colorado.


BILL:	SB06-202
TIME:	01:04:50 PM
MOVED:	Vigil
MOTION:	Refer Senate Bill 06-202 to the Committee of the Whole. The motion passed on a 10-0-3 vote.
SECONDED:	Frangas
		VOTE
	Benefield	Yes
	Cloer	Excused
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Excused
	Massey	Excused
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 10 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS

01:07 PM

Adjourn.