House Committee on Finance (03/22/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	03/22/2012	ATTENDANCE

Time:	10:00 AM to 01:26 PM	Acree	X
		Beezley	X
Place:	LSB A	Conti	X
		Holbert	*
This Meeting was called to order by		Hullinghorst	X
	Representative DelGrosso	Kagan	X
		Kefalas	X
This Report was prepared by		Labuda	X
	Ron Kirk	McCann	X
		Pabon	*
		Swalm	X
		Swerdfeger	X
		DelGrosso	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-041 SB12-087 HB12-1119		Referred to Appropriations Amended, Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only

10:01 AM -- Senate Bill 12-041 - Concerning the Commercial Vehicle Enterprise Tax Fund

Representative Priola, prime sponsor, explained that under current law, the Commercial Vehicle Enterprise Tax Fund receives money from fines levied on overweight commercial vehicles. He noted that a portion of the money in the fund is annually appropriated to the Department of Revenue to pay for a partial refund of state sales and use taxes paid on Class A vehicles. Representative Priola continued by saying the appropriation is made because the department administers the refund. He closed saying that Senate Bill 12-041 changes the annual appropriation requirement to a continuous appropriation.

The committee discussed whether the tax incentives that are funded by the continuous appropriation are capped. Representative Priola noted that the tax incentives are capped at the level of money in the fund and no additional General Fund money is used for purposes of paying for the tax incentives.

The following persons testified:

10:06 AM -- Mr. R. J. Hicks, representing the Colorado Motor Carriers Association, testified in support of the bill and distributed a fact sheet on the bill (Attachment A). Mr. Hicks discussed the economic benefits tied to the commercial trucking industry and talked about the incentives that are given to the industry by the state through a state sales tax refund and the expansion of the 3 percent investment tax credit. Mr. Hicks closed by saying that Senate Bill 12-041 is an economic development tool that funds incentives to the commercial trucking industry based in Colorado.

10:18 AM -- Mr. Eric Myers, Colorado Department of Revenue, responded to committee questions.


BILL:	SB12-041
TIME:	10:21:34 AM
MOVED:	Acree
MOTION:	Refer Senate Bill 12-041 to the Committee on Appropriations. The motion passed on a vote of 11-0, with 2 members excused.
SECONDED:	Hullinghorst
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Excused
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Excused
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

10:30 AM -- Senate Bill 12-087 - Concerning Refunds on Property Taxes That Are Erroneously Collected

Representative Kerr J., prime sponsor, distributed a handout on Senate Bill 12-087 (Attachment B) and explained the provisions of the bill. He noted that under current law, any property taxes illegally or erroneously collected, and delinquent interest on that collection, must be refunded to the taxpayer. Generally, interest on the refunded moneys accrues from the date payment of the taxes and delinquent interest was received by the county treasurer. Representative Kerr closed by noting that under the bill, interest on the refunded money will begin to accrue either from the date a complete abatement petition is filed with the board of county commissioners or the date the taxes are paid, whichever is later.

The committee discussed the interest rate that is used for purposes of refunding property taxes that are erroneously collected. Representative Kerr noted that the rate is set at 12 percent.

The following persons testified:

10:48 AM -- Mr. Matt Poling, representing the Building Owners and Managers Association (BOMA), testified in opposition of the bill. The committee discussed the abatement and appeal process used by persons who appeal their property valuation. Mr. Poling closed by discussing the 12 percent interest rate used for calculating property tax refunds.

11:01 AM -- Mr. John Lefebvre, representing the Colorado County Treasurers' Association, testified in support of the bill and discussed the abatement process that is allowed under current law.

11:14 AM -- Mr. Ted Leighty, representing the Colorado Association of Realtors, testified in opposition of the bill. He noted that current law works well and the interest charge of 12 percent is fair to taxpayers.

11:27 AM -- Mr. Steve Ellington, representing the Colorado County Treasurers' Association, testified in support of the legislation.

11:42 AM -- Mr. Paul Jacobs, representing the Colorado Assessor's Association, testified in support of the bill. Mr. Jacobs discussed the abatement process for the City and County of Denver and the interest rate that is used for purposes of refunding money back to taxpayers.


BILL:	SB12-087
TIME:	12:09:30 PM
MOVED:	Labuda
MOTION:	Moved Amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:	Hullinghorst
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB12-087
TIME:	12:11:55 PM
MOVED:	Labuda
MOTION:	Refer Senate Bill 12-087, as amended, to the Committee of the Whole. The motion passed on a vote of 7-5, with 1 member excused.
SECONDED:	Hullinghorst
		VOTE
	Acree	Yes
	Beezley	No
	Conti	No
	Holbert	Excused
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	No
	Pabon	Yes
	Swalm	No
	Swerdfeger	Yes
	DelGrosso	No

Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:32 PM -- House Bill 12-1119 - Concerning Fines Imposed By State Agencies

Representative Coram, prime sponsor, explained that House Bill 12-1119 limits the ability of the Colorado Department of Public Health and Environment (CDPHE) to impose fines for inspection-related or paperwork violations that do not harm or threaten public health or safety. Representative Coram noted that CDPHE may not issue fines for an inspection-related violation if the violator makes a reasonable attempt to comply with state rule or law, unless written notice was provided within 20 business days of the inspection and the violator has not cured the violation within 20 business days of the notice.

The committee discussed the standard used to measure whether a violation threatens public health or safety.
The following persons testified:

12:41 PM -- Ms. Kerry White, Legislative Council Staff, responded to questions about the fiscal note. The committee discussed the FTE staffing numbers in the fiscal note.

01:03 PM -- Mr. Garry Kaufman, Colorado Department of Public Health and Environment, testified in opposition of the bill. Mr. Kaufman discussed the process the department uses to address violations.

After a committee discussion on violations tied to the bill, Representative DelGrosso, Chair, laid over House Bill 12-1119 to Wednesday, March 28, 2012, and noted that CDPHE testimony will be continued.

01:25 PM

The committee adjourned.