Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:02/08/2006
ATTENDANCE
Time:01:59 PM to 05:34 PM
Benefield
X
Cloer
*
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
*
Massey
X
McCluskey
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB06-1118
HB06-1129
HB06-1091
HB06-1172
HB06-1132
HB06-1154
HB06-1105		Referred to the Committee of the Whole
Amended, Laid Over
Amended, Referred to Appropriations
Postponed Indefinitely
Referred to the Committee of the Whole
Postponed Indefinitely
Referred to the Committee of the Whole


02:00 PM -- House Bill 06-1118

Representative Larson, prime sponsor, explained the provisions of the bill. He stated the bill allows the Department of Revenue to place a commercial driver's license out of service if the driver's license was revoked for driving while ability impaired (DWAI) for a person under 21 years of age, or for driving under the influence.

The following person testified:

02:02 PM -- Mr. Jerry Pierce, Colorado Department of Revenue, testified in support of the legislation and said that the bill will allow the department more enforcement authority as its changes the periods of revocation for alcohol-related offenses by commercial drivers to match federal law. The legislation also declares it a Class 1 misdemeanor to operate a motor vehicle in violation of an out-of-service work order.

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








BILL:HB06-1118
TIME: 02:09:09 PM
MOVED:Massey
MOTION:Refer House Bill 06-1118 to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:Crane
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


02:11 PM -- House Bill 06-1129 - (For Action Only)

Representative Lundberg, prime sponsor, asked the committee to consider an amendment that would lower the qualifying income threshold for military personnel who could qualify for the active duty exemption under House Bill 06-1129. Representative Lundberg commented that the amendment would lower the fiscal impact to one-quarter of the amount on the fiscal note. The committee discussed the federal program reductions that affect the military. Representative Vigil, Chairman, commented that the committee would need a revised fiscal note before it could take final action on the bill. Given the brief discussion on the amendment, Representative Vigil placed the bill on the table for amendments only. Representative Cloer moved amendment L.004 (the amendment changes the fiscal impact by lowering the qualifying income threshold from $40,000 to $10,000) (Attachment A). The motion passed without objection by those members present. Representative Vigil, Chairman, took House Bill 06-1129 off the table and scheduled it for action only on Thursday, February 9, 2006, upon adjournment to allow staff time to draft a memorandum that addresses the impact of amendment L.004.
















BILL:HB06-1129
TIME: 02:21:27 PM
MOVED:Cloer
MOTION:Moved amendment L.004 (the amendment changes the fiscal impact by lowering the qualifying income threshold from $40,000 to $10,000). The motion passed without objection by those members present. Representative Vigil, Chairman, took House Bill 06-1129 off the table and scheduled it for action only on Thursday, February 9, 2006, upon adjournment to allow staff time to draft a memorandum that addresses the impact of amendment L.004.
SECONDED:Crane
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


02:26 PM -- House Bill 06-1091

Representative McFadyen, prime sponsor, explained that House Bill 06-1091 broadens the existing enterprise zone investment tax credit to include the purchase of commercial vehicles based in an enterprise zone. These purchases are currently excluded under the statutory requirement that the property be used "solely and exclusively" within an enterprise zone. Representative McFadyen explained that to be eligible for the credit, the vehicle must be a 2006 model year or newer commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of at least 16,000 pounds. Representative McFadyen distributed amendments L.001 (Attachment B) and L.002 (Attachment C) to committee members and explained that the amendments change the year of the commercial vehicles that can qualify for the credit from 2005 to 2006 or newer vehicles, and include newer equipment. Representative McFadyen continued by saying that under the bill, vehicles would also have to be licensed and registered in the state and housed or based in an enterprise zone for one year after purchase. The credit would apply to eligible vehicles as well as any parts associated with the vehicle at the time of purchase. The amount of the credit is phased-in and achieves economic parity by making a statutory correction.












The following persons testified:

02:31 PM -- Mr. Greg Fulton, Colorado Motor Carriers Association, testified in support of the legislation and distributed a handout on the trucking industry to the committee (Attachment D). Mr. Fulton commented that House Bill 06-1091 will generate jobs in Colorado and act as a tool for economic development. Mr. Fulton commented that the average annual wage for the trucking industry is 10 percent higher than the state's average annual wage which was $40,276 and pointed out that the trucking industry has seen a steady decline in jobs over the last several years. Mr. Fulton closed by saying that House Bill 06-1091 can reverse this trend and talked about some of the tax incentives that other states give to the trucking industry. Mr. Fulton asked committee members to support the legislation.

02:46 PM -- Mr. Pete Roskop, Governor's Office of Economic Development and International Trade, testified in support of the legislation and distributed a letter from the office advocating the legislation (Attachment E). Mr. Roskop said that he was confident that the legislation will assist the state to attract businesses from other states. This legislation will encourage more trucking businesses to become established in Colorado's enterprise zones which include both urban and rural distressed areas.

02:49 PM -- Mr. Frank Gray, Colorado Economic Leadership Council, testified in support of the bill. Mr. Gray commented that the bill corrects a state statute that was initially intended to benefit the commercial trucking industry.

02:50 PM -- Mr. Joe Kiely, Ports-to-Plains, testified in support of the legislation and distributed a fact sheet to committee members (Attachment F).

02:59 PM -- Mr. Mike Riely, Colorado Motor Carriers Association and Western Express, testified in support of the legislation. Mr. Riely commented that the legislation will create jobs and make Colorado more competitive.

03:06 PM -- Mr. Shaun Egan, Iron Woman Construction, testified in support of the legislation and commented on the legislation's ability to make Colorado more competitive.

03:09 PM -- Mr. Tony Gagliardi, National Federation of Independent Business, testified in support of the bill and said the legislation will provide incentives to small businesses and correct a statutory "glitch."

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


















BILL:HB06-1091
TIME: 03:10:55 PM
MOVED:Massey
MOTION:Moved amendment L.001 (the amendment changes the year of the commercial vehicles that can qualify for the credit from 2005 to 2006 or newer vehicles and equipment). The motion 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:HB06-1091
TIME: 03:11:28 PM
MOVED:Cloer
MOTION:Moved amendment L.002 (the amendment clarifies that the credit shall only apply to new equipment). The motion passed without objection by those members present.
SECONDED:Benefield
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:HB06-1091
TIME: 03:12:02 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1091, as amended, to the Committee on Appropriations. The motion passed on a 11-2-0 vote.
SECONDED:Harvey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
Yes
Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


03:16 PM -- House Bill 06-1172

Representative Decker, prime sponsor, discussed amendment L.001 (strike below) (Attachment G) and explained the provisions of the amendment section-by-section. Representative Decker distributed the following to committee members: an article entitled "Contraband and Smuggling: The Unintended Consequences of Raising Excise Taxes (Attachment H); a map on 40 states and DC that require some form of cigarette retail licensing (Attachment I); a table from the Department of Revenue showing the decline in cigarettes sold in 2005 (Attachment J); and the statutory language for New Mexico that specifies the license necessary to engage in the business of selling cigarettes (Attachment K). Representative Decker discussed the documents and said that the purpose of House Bill 06-1172 is to address leakage.

The committee discussed the excise tax on cigarettes in Colorado and the regulation under amendment L.001 (strike below amendment). Also discussed was if the state is forgoing revenue because of leakage. Ms. Laura Harris from the Department of Revenue was asked to comment on this issue.

The following person testified:

03:38 PM -- Ms. Laura Harris, Colorado Department of Revenue, responded to committee questions and commented on the need for the regulation under House Bill 06-1172. Ms. Harris commented that the department is not aware of a leakage concern.







03:46 PM -- Mr. Chris Howes, Colorado Retail Council, testified in opposition toward the bill and commented that House Bill 06-1172 over-regulates the sale of cigarettes in Colorado and is not needed.

03:50 PM -- Ms. Mary Lou Chapman, Rocky Mountain Food Industry Association, testified in opposition toward the bill. Ms. Chapman commented that the purpose of the bill is to gain undocumented revenue from illegal sales and may not accomplish this goal but will increase the level of state regulation that honest retailers who sell cigarettes must comply with.

03:56 PM -- Mr. Greg Wilson, Philip Morris USA, testified in support of the legislation and distributed a handout on his presentation to the committee (Attachment L). Mr. Wilson pointed out that legal retailers are being adversely affected by illegal cigarette sales and House Bill 06-1172 will help stop this practice.

04:09 PM -- Mr. Terry Gallagher, owner of a smoker friendly gas station, testified in support of the legislation and commented that he supports sections 1 and 2 of amendment.

04:14 PM -- Mr. R. J. Ours, American Cancer Society, testified in support of the legislation and commented on the accountability and sanctions the bill offers in relation to the sale of cigarettes to minors in Colorado.

Representative Decker and the committee discussed the regulation under amendment L.001 and whether there is the need for increased regulation. Representative Decker distributed amendment L.003 (Attachment M) and commented that it makes a technical change.
BILL:HB06-1172
TIME: 04:16:43 PM
MOVED:Judd
MOTION:Moved amendment L.003 (the amendment makes a technical change that affects licensed retailers). The motion passed without objection by those members present.
SECONDED:Vigil
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:HB06-1172
TIME: 04:19:27 PM
MOVED:Judd
MOTION:Moved amendment L.001 (strike below) as amended by amendment L.003. The motion passed without objection by those members present.
SECONDED:Vigil
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:HB06-1172
TIME: 04:20:30 PM
MOVED:Frangas
MOTION:Refer House Bill 06-1172, as amended, to the Committee on Appropriations. The motion failed on a 8-4-1 vote.
SECONDED:Judd
VOTE
Benefield
Excused
Cloer
No
Crane
No
Frangas
Yes
Garcia
No
Harvey
No
Jahn
No
Kerr
No
Marshall
Yes
Massey
No
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 4 NO: 8 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1172
TIME: 04:28:24 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1172 indefinitely. The motion passed on a 9-3-1 vote.
SECONDED:Crane
VOTE
Benefield
Excused
Cloer
No
Crane
Yes
Frangas
No
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
No
Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:29 PM -- House Bill 06-1132

Representative Hoppe, prime sponsor, explained the provisions of the bill. The committee discussed the reasons animals are impounded under the bill and if the bill would affect the treatment of animals.

The following persons testified:

04:32 PM -- Mr. Peg Ackerman, County Sheriff's Association, testified in support of the legislation. Ms. Ackerman commented that once an animal is impounded, the care of the animal can be very costly for public agencies and this bill will help recover some of the costs of impounding an animal.

04:45 PM -- Mr. Sheldon Jones, Colorado Department of Agricultural, testified in support of the legislation and responded to committee questions.

The committee engaged in a discussion on whether the legislation could contribute to animal cruelty. Mr. Jones commented on the department's ability to prosecute animal owners who are guilty of this offense. The committee continued to discuss the legislation's ability to help public agencies recover costs for impounding livestock and other large animals. After a brief discussion, Representative Vigil, prime sponsor, placed the bill on the table for action.










BILL:HB06-1132
TIME: 04:47:37 PM
MOVED:Garcia
MOTION:Moved a conceptual amendment that would prohibit any excess money from the sale of animals to revert back to owners of the animals. Proceeds from the sale of animals are only to be used for paying off any costs incurred when an agency impounds animals. The motion failed on a 10-2-1 vote.
SECONDED:Cloer
VOTE
Benefield
Excused
Cloer
Yes
Crane
No
Frangas
No
Garcia
Yes
Harvey
No
Jahn
No
Kerr
No
Marshall
No
Massey
No
McCluskey
No
Judd
No
Vigil
No
Not Final YES: 2 NO: 10 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1132
TIME: 04:57:35 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1132 to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:McCluskey
VOTE
Benefield
Excused
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: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS




04:58 PM -- House Bill 06-1154

Representative Berens, prime sponsor, explained that as amended by the House Health and Human Services Committee, House Bill 06-1154 allows the State Registrar to establish procedures for issuing heirloom birth and marriage certificates. He explained that under the legislation, fees established for these certificates must cover the actual cost of producing and issuing the certificates plus $10. The fees are to be credited to the Heirloom Birth Certificate Fund or the Heirloom Marriage Certificate Fund, as appropriate. After actual costs, money in the birth certificate fund must be transferred to the Infant Immunization Fund, and money in the marriage certificate fund must be transferred to the Colorado Domestic Abuse Program Fund.

After a brief committee discussion, Representative Berens distributed amendment L.004 to committee members (Attachment N) and explained that it would change the distribution of money in the bill from the Infant Immunization Fund to the Prenatal Care Services Fund. The committee engaged in a discussion about the level of funding for the Infant Immunization Fund and the impact of the amendment on the fund.

The following person testified:

05:05 PM -- Ms. Andi Liapoldus, testified in support of the legislation and commented on some of the events that led to the legislation.
BILL:HB06-1154
TIME: 05:07:47 PM
MOVED:Cloer
MOTION:Moved amendment L.004 (the amendment changes the distribution of money from the Infant Immunization Fund to the Prenatal Care Services Fund). The following substitute motion failed and this subsequent motion also failed on a 7-6-0 vote.
SECONDED:McCluskey
VOTE
Benefield
No
Cloer
Yes
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: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1154
TIME: 05:20:18 PM
MOVED:Garcia
MOTION:Moved a conceptual substitute motion that would strike the extra $10 fee and any provisions that shift money to any fund other than the Heirloom Birth Certificate Fund and the Heirloom Marriage Certificate Fund. The motion failed on a 8-5-0 vote.
SECONDED:Marshall
VOTE
Benefield
No
Cloer
No
Crane
Yes
Frangas
No
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
No
McCluskey
No
Judd
No
Vigil
Yes
Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1154
TIME: 05:24:22 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1154 to the Committee on Appropriations. The following substitute motion passed on a 7-6-0 vote.
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: TIE
BILL:HB06-1154
TIME: 05:24:42 PM
MOVED:Garcia
MOTION:Moved a substitute motion to postpone House Bill 06-1154 indefinitely. The motion passed on a 7-6-0 vote.
SECONDED:Harvey
VOTE
Benefield
Yes
Cloer
No
Crane
Yes
Frangas
No
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
No
McCluskey
No
Judd
No
Vigil
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


05:28 PM -- House Bill 06-1105

Representative McCluskey, prime sponsor, explained that House Bill 06-1105 re-establishes the pilot program initially created through House Bill 05-1046 that allowed for gifts, grants, and donations to be accepted by the Director of Research of the Legislative Council in order to pursue the possibility of creating a dynamic model for analyzing tax policy changes. Upon receipt of at least $120,000 by the Director of Research of the Legislative Council, the director would begin a process to evaluate various options for procuring a dynamic model.

The following person testified:

05:28 PM -- Mr. Preston Gibson, Jefferson Economic Council, testified in support of the legislation and commented on the fiscal note process used by Legislative Council Staff. Mr. Gibson commented on the differences between static and dynamic analysis and the information that dynamic modeling can add to the process. Mr. Gibson commented that dynamic modeling is commonly used in other states and also used by private businesses.















Representative Vigil, Chairman, commented that the process does not change the fact that the up-front cost of a tax policy change must still be absorbed by the state despite the fact that secondary or indirect financial impacts may or may not offset the initial cost of the bill in future years.
BILL:HB06-1105
TIME: 05:32:46 PM
MOVED:McCluskey
MOTION:Refer House Bill 06-1105 to the Committee of the Whole. The motion passed on a 10-3-0 vote.
SECONDED:Massey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
No
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
Yes
Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


05:34 PM

Adjourn.