Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:02/22/2006
ATTENDANCE
Time:06:00 PM to 09:19 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
E
McCluskey
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB06-1303
HB06-1241
HB06-1274
HB06-1322
HB06-1297
SB06-012
HB06-1019
HB06-1209
HB06-1279		Laid Over
Postponed Indefinitely
Referred to Appropriations
Amended, Referred to Appropriations
Referred to Appropriations
Referred to the Committee of the Whole
Referred to Appropriations
Amended, Referred to the Committee of the Whole
Postponed Indefinitely


06:00 PM -- House Bill 06-1303 - Concerning the County Environmental Hazard Remediation Fund and County Governments

Representative Plant, prime sponsor, explained that 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. Representative Plant distributed amendment L.003 to committee members (Attachment A) and explained that it reduces the transfer to the fund from $30 to $15 million for FY 2006-07. The money in the Hazardous Substance Response Fund would be made available to counties for certain environmental purposes.








The committee discussed the use of funds by counties in the bill and the figures in the fiscal note.

The following persons testified:

06:18 PM -- Mr. Charles Bayley, Waste Management and Recycle, testified in opposition toward the bill. He explained that money in the bill is not enough to fully fund the environmental cleanup in the state. Mr. Bayley closed by saying that money in the fund could be used to directly compete with his company.

06:28 PM -- Mr. Jim Spaanstra, BFI, testified in opposition toward the bill and commented on the history of the Hazardous Substance Response Fund. Mr. Spaanstra said that money in the fund was initially used for the most dangerous waste locations in the state. House Bill 06-1303 expands the purposes for which fund money can be used. Ms. Spaanstra closed by saying that the money should be used as initially intended.

The committee discussed the use of funds for environmental cleanup in Colorado and federal funds that are used for the same purpose. The committee also discussed the ways that certain counties can benefit from the bill.

06:44 PM -- Mr. Gary Baughman, Colorado Department of Public Health and Environment, responded to committee questions and commented on the state's role in the cleanup of Superfund sites. Generally, the state is responsible to pay 10 percent of the initial cost of the cleanup paid for by federal dollars. Mr. Baughman discussed the department's administration of the fund. Mr. Baughman discussed the phase of cleanup when the state assumes 100 percent of the cleanup costs and closed by saying that the fund will run out of money in 2026. The fund will not have enough money for long-term state cleanup.


06:54 PM -- House Bill 06-1241 - Concerning an Income Tax Checkoff for Mesa Verde National Park

Representative Larson, prime sponsor, explained that House Bill 06-1241 creates the Mesa Verde National Park Visitor Center and Archive Fund in the State Treasury. Representative Larson said that the program would appear on the state income tax form beginning with the 2006 income tax form. The General Assembly would annually appropriate money from the fund to the Department of Revenue for its administrative costs. After subtracting these costs, money in the fund would be transferred to the Mesa Verde National Park Visitor Center and Archive Fund to promote the park.

The following persons testified:

06:54 PM -- Mr. Jessie Farias, Chief Ranger for Mesa Verde National Park, testified in support of the legislation. Mr. Farias closed by saying that donations would be used to build a new visitor and archive center.

07:00 PM -- Mr. Jim Dyer, testified in support of the measure and urged the committee to support the bill.

07:06 PM -- Ms. Melissa McDonald, Mesa Verde Foundation, testified in support of the measure and said that the park estimates that the fund will receive $1 million in donations over the next four years.


07:09 PM

Representative Vigil, Chairman, briefly pulled the bill off the table to continue testimony on other checkoff program bills. (Once testimony was heard on all checkoff bills, the committee voted on each bill.)






07:15 PM

After a brief committee discussion, Representative Vigil, Chairman, pulled the bill off the table and rescheduled it for Thursday, March 9, 2006, to allow the sponsor additional time to have some drafting changes made to the bill.


07:17 PM -- House Bill 06-1274 - Concerning the Pesticide Applicators' Act

Representative Hodge, prime sponsor, explained that House Bill 06-1274 seeks to continue the regulation of pesticide applicators until July 1, 2015. Representative Hodge briefly explained that the bill also makes license and registration changes.

The following person testified:

07:18 PM -- Mr. Sheldon Jones, Colorado Department of Agriculture, responded to committee questions and discussed the history of the pesticide program.
BILL:HB06-1274
TIME: 07:25:29 PM
MOVED:Harvey
MOTION:Refer House Bill 06-1274 to the Committee on Appropriations. The motion passed on a 12-0-1 vote.
SECONDED:McCluskey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS














07:27 PM -- House Bill 06-1322 - Concerning Clean Energy Resources and Severance Taxes

Representative Buescher, prime sponsor, explained that House Bill 06-1322 creates the Clean Energy Development Fund, transfers $6.0 million to it for FY 2005-06 through FY 2007-08, and specifies how the Governor's Office of Energy Management and Conservation will spend it. The $6.0 million shall be transferred from the operational account of the Severance Tax Trust Fund. Representative Buescher said that the intention is to use the money to help support the research and development of advanced clean oil technologies, renewable energy, and energy conservation.

The following persons testified:

07:34 PM -- Mr. Fred Stoffel, Xcel Energy, testified in support of the legislation.

07:38 PM -- Ms. Dianne Orf, Colorado Mining Association, testified in support of the bill. Ms. Orf said that the legislation uses money from the severance tax fund in the spirit that it was intended. The amendment expands the types of projects that can be completed under the legislation.

07:39 PM -- Mr. Michael Bowman, National Agriculture Alliance, testified in support of the bill.
Representative Buescher distributed amendment L.003 (Attachment C) and explained that it broadens the provisions that apply to allowable projects under the bill.
BILL:HB06-1322
TIME: 07:40:42 PM
MOVED:Cloer
MOTION:Moved amendment L.003 ( the amendment broadens the provisions that apply to allowable projects under the bill). The motion passed without objection by those members present.
SECONDED:McCluskey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
Excused
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1322
TIME: 07:41:57 PM
MOVED:Garcia
MOTION:Moved a conceptual amendment that would allow remaining funds under the bill to revert back to the Operational Account of the Severance Tax Fund rather than the General Fund. The motion passed without objection by those members present.
SECONDED:Cloer
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
Excused
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1322
TIME: 07:42:35 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1322, as amended, to the Committee on Appropriations. The motion passed on a 12-0-1 vote.
SECONDED:Benefield
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS




07:44 PM -- House Bill 06-1297 - Concerning an Income Tax Checkoff for Multiple Sclerosis

Representative Decker, prime sponsor, explained that House Bill 06-1297 creates the Multiple Sclerosis Fund in the State Treasury. For income tax year 2006 through tax year 2008, a voluntary contribution designation line for the fund would appear on state individual income tax returns. Representative Decker commented that the General Assembly would annually appropriate money from the fund to the Department of Revenue for its costs of administering money designated as contributions to the fund. After subtracting these costs, money in the fund would be transferred to the Multiple Sclerosis Fund to promote the growth and success of the National Multiple Sclerosis Society. Representative Decker distributed a fact sheet (Attachment D) and a news article (Attachment E) to committee members.

The following person testified:

07:47 PM -- Ms. Kathryn Spritzer, National Multiple Sclerosis Society, testified in support of the legislation and distributed a packet of materials to committee members (Attachment F). Ms. Spritzer described the people who are affected by Multiple Sclerosis and discussed the services that are offered by the national society. (Representative Vigil, Chairman, briefly pulled the bill off the table to continue the testimony phase for the remaining income tax checkoff bills.)


07:54 PM

Representative Vigil, Chairman, placed the bill back on the table for action.


07:55 PM -- Senate Bill 06-012 - Concerning the Family Resource Center Income Tax Checkoff Program

Representative Curry, prime sponsor, explained that Senate Bill 06-012 extends the period that state income tax returns will include a voluntary contribution designation benefitting the Family Resource Centers Fund from tax year 2006 through tax year 2008. Representative Curry commented that since the bill extends an existing checkoff, it would not have a fiscal impact.

The following persons testified:

07:57 PM -- Ms. Carolyn Hardin, Roaring Fork Family Resource Centers, testified in support of the legislation. Ms. Hardin closed by commenting on the services that are provided by the centers and the type of programs offered.

08:07 PM -- Ms. Blanca L. Mata, Family Resource Centers, testified in support the legislation and distributed a packet of materials on centers (Attachment G).

08:09 PM -- Mr. Bill Michaels, Family Resource Center Associations, testified in support of the bill.
BILL:SB06-012
TIME: 08:13:02 PM
MOVED:Frangas
MOTION:Refer Senate Bill 06-012 to the Committee of the Whole. The motion passed on a 11-1-1 vote.
SECONDED:Cloer
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


08:25 PM -- House Bill 06-1019 - Concerning the Colorado Easter Seals Fund Income Tax Checkoff (for action only)

Representative Vigil, Chairman, placed the bill on the table for action. (The committee initially heard testimony on this bill on January 25, 2006.)





















BILL:HB06-1019
TIME: 08:25:19 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1019 to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:Kerr
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
No
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


08:28 PM -- House Bill 06-1209 - Concerning the Special Olympics Fund Income Tax Checkoff (for action only)

Representative Vigil, Chairman, placed the bill on the table for action. (The committee initially heard testimony on this bill on February 17, 2006.)
























BILL:HB06-1209
TIME: 08:31:29 PM
MOVED:McCluskey
MOTION:Refer House Bill 06-1209, as amended, to the Committee of the Whole. The motion passed on a 11-1-1 vote. (During the February 17, 2006, meeting of the House Finance Committee, the committee adopted amendment L.001 which adds a repealer provision and makes a technical name change.)
SECONDED:Cloer
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


08:33 PM

Representative Vigil, placed the bill back on the table for action. Representative Cloer distributed amendment L.002 (Attachment B) and explained that it makes a technical change. The motion passed without objection and the committee made the following motions on the bill as follows.




















BILL:HB06-1241
TIME: 08:35:56 PM
MOVED:Cloer
MOTION:Moved amendment L.002 (the amendment makes a technical change). The motion passed without objection by those members present.
SECONDED:Judd
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
Excused
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1241
TIME: 08:36:25 PM
MOVED:Cloer
MOTION:Moved to add a repealer provision after three years. The motion passed without objection by those members present.
SECONDED:Harvey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
Excused
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:HB06-1241
TIME: 08:38:44 PM
MOVED:Cloer
MOTION:Moved to refer House Bill 06-1241, as amended, to the Committee on Appropriations. The motion failed on a 8-4-1 vote.
SECONDED:Kerr
VOTE
Benefield
No
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
No
Harvey
No
Jahn
No
Kerr
Yes
Marshall
No
Massey
Excused
McCluskey
Yes
Judd
No
Vigil
No
Not Final YES: 4 NO: 8 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1241
TIME: 08:39:50 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1241 indefinitely. The motion passed on a 7-5-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
No
Crane
No
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
Excused
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:HB06-1297
TIME: 08:42:03 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1297 to the Committee on Appropriations. The motion passed on a 11-1-1 vote.
SECONDED:Frangas
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Excused
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


08:45 PM -- House Bill 06-1279 - Concerning Revenue from the Severance Tax Fund

Representative Lundberg, prime sponsor, distributed a fact sheet on House Bill 06-1279 (Attachment H) and explained the provisions of the bill. Representative Lundberg explained that for FY 2006-07 and each fiscal year thereafter, House Bill 06-1279 requires the first $200 million in state revenues from the severance tax imposed on oil shale to be credited, as it is under current law, to the Severance Tax Trust Fund and the Local Government Severance Tax Cash Fund. The bill requires that state revenues in excess of this amount, (inflation adjusted beginning in FY 2007-08) be credited as follows:

● 25 percent to the State Highway Fund for implementation of the strategic transportation project investment program; and
● 75 percent to the Property Tax Relief Cash Fund to provide tax relief in the following order of priority: (1) to taxpayers paying business personal property tax, (2) to taxpayers paying property tax on commercial real property, and (3) to taxpayers paying tax on real property.

The committee engaged in a brief discussion regarding the time period upon which the severance taxes on oil shale would yield $200 million or more.

The following persons testified:

08:58 PM -- Mr. Stan Dempsey, Colorado Petroleum Association, testified in opposition toward the bill. Mr. Dempsey commented on the uses for severance taxes that are tied to the extraction of minerals. He closed by discussing some of the policies that are being debated that spend severance tax revenues and are not tied to the tax on minerals. The state should not spend revenue generated from taxing one industry to benefit another industry.






09:02 PM -- Mr. James Thurman, Shell Oil Company, testified in opposition toward the bill. Mr. Thurman commented that it is premature to make policy changes that are dependent on future events that may or may not occur.

The committee briefly discussed a number of bills pending before the General Assembly that propose to spend severance tax revenues. Representative Vigil, Chairman, placed the bill on the table for action.
BILL:HB06-1279
TIME: 09:09:50 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1279 to the Committee of the Whole. The motion failed on a 7-5-1 vote.
SECONDED:Crane
VOTE
Benefield
No
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
No
Harvey
Yes
Jahn
No
Kerr
Yes
Marshall
No
Massey
Excused
McCluskey
Yes
Judd
No
Vigil
No
Not Final YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1279
TIME: 09:13:24 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1279 indefinitely. The motion passed on a 7-5-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
No
Crane
No
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
Excused
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS


09:19 PM

Adjourn.