Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE
Date:02/23/2005
ATTENDANCE
Time:01:38 AM to 06:55 PM
Benefield
X
Cloer
E
Place:HCR 0107
Crane
X
Frangas
X
This Meeting was called to order by
Garcia
X
Representative Vigil
Jahn
X
Marshall
X
This Report was prepared by
Massey
X
Ron Kirk
May M.
X
McCluskey
X
Witwer
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Presentation by Mr. Mike Mauer - LCS
HB05-1285
HB05-1253
HB05-1281
HB05-1175
HB05-1258
HB05-1209
HB05-1283		N/A
Amended, Referred to the Committee of the Whole
Amended, Referred to Committee on Appropriations
Amended, Referred to Committee on Appropriations
Amended, Referred to Committee on Appropriations
Postponed Indefinitely
Amended, Referred to Committee on Appropriations
Amended, Referred to Committee on Appropriations


01:39 PM - Presentation by Legislative Council Staff

Representative Vigil, Chairman, called the meeting to order and asked staff to distribute three tables on bills that reduce General Fund revenue that have been heard in the committee. (Table 1; Bills That Reduce General Fund Revenues In The House Finance Committee (Attachment A), Tables 2 and 3; Revised December 2004 General Fund Overviews (Attachments B and C)).

Mr. Mike Mauer, Chief Economist for Legislative Council Staff, explained that line 14 in Tables 2 and 3, show amounts for the state's structural deficit given a scenario that House Bill 05-1194 passes and either all or one quarter of the value of all of the tax cuts passed by the House Finance Committee become law. Mr. Mauer pointed out in Table 2 that if House Bill 05-1194 passes and all of the tax cuts that were approved by the House Finance Committee become law, the structural deficit would grow from $107.7 million in FY 2005-06 to $318 million in FY 2009-10.







Representative Vigil closed by saying that the bills in the appropriations committee that were referred from the Finance Committee would be prioritized and voted on by the committee before they are debated on the House Floor.


01:45 PM -- House Bill 05-1285 - Concerning the Management of Oil and Gas Fund Balances

Representative Buescher, prime sponsor, distributed amendment L.001 (Attachment D) and a fact sheet on House Bill 05-1285 (Attachment E) to committee members. He explained that House Bill 05-1285 combines the Oil and Gas Conservation Fund and the Oil and Gas Environmental Response Fund into the Oil and Gas Conservation and Environmental Response Fund. He stated that the bill requires the Colorado Oil and Gas Commission to ensure that, on and after July 1, 2007, the two-year average of the unobligated portion of the fund does not exceed $2 million at any time and that there is an adequate balance to address environmental response needs.

The following persons testified:

01:53 PM -- Mr. Brian Macke, Director of the Colorado Oil and Gas Conservation Commission, and Ms. Wendy Schultz, Colorado Oil and Gas Conservation Commission, testified in support of the legislation.

01:55 PM -- Mr. Ken Wonstolen, Colorado Oil and Gas Association, testified in support of the legislation. Mr. Wonstolen discussed Colorado's production levels for oil and gas wells and discussed the benefits of a consolidated fund.
BILL:HB05-1285
TIME: 02:03:30 PM
MOVED:McCluskey
MOTION:Moved amendment L.001. (The amendment would add a section that would combine moneys in the new fund.) The motion passed without objection by those members present.
SECONDED:Marshall
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB05-1285
TIME: 02:05:15 PM
MOVED:Garcia
MOTION:Refer HB 05-1285, as amended, to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:Marshall
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


02:07 PM -- House Bill 05-1253 - Concerning an Income Tax Credit for Job Creation

Representative Hall, prime sponsor, distributed amendment L.001 (Attachment F) to committee members. He explained that House Bill 05-1253 provides an income tax credit for businesses that create new jobs in the course of either opening a new business or relocating or expanding an existing business. Credits could be claimed for 2006 income taxes for jobs created in 2005. The credit is based on the average wage of all new employees hired during the tax year for which the credit is claimed. A business may only claim the credit once for each employee hired to fill a new job.

The committee discussed the fiscal note. Representative Hall responded by talking about the secondary and indirect effects of the tax credit that are not addressed in the fiscal note and commented on how these effects could offset the bill's cost in the fiscal note. Representative Vigil asked Mr. Josh Harwood to respond to questions about the fiscal note.

02:21 PM -- Mr. Josh Harwood, Legislative Council Staff, responded to questions regarding the fiscal note.

The following persons testified:

02:29 PM -- Mr. Brian Vogt, Director of the Colorado Office of Economic Development and International Trade, testified in support of the legislation. Mr. Vogt discussed the state incentives that are in place to bring businesses to Colorado.






The committee discussed the ways the state could benefit from new job creation that may result from the bill. The committee discussed the average county wages in Colorado based on primary and secondary employers.

02:45 PM -- Mr. Mike Mauer, Legislative Council Staff, discussed the fiscal note and commented on the number of jobs that were added to Colorado's economy in the recent three years. Mr. Mauer discussed the secondary effects of job creation and the impact of indirect effects on Colorado's economy.

02:51 PM -- Mr. Bill Becker, President of Adams County Economic Developer's Council, testified in support of the legislation. He distributed a letter form the Economic Developers' Council of Colorado (Attachments G) and a letter from the Jefferson Economic Council (Attachment H) on the benefits of House Bill 05-1253.

02:55 PM -- Mr. Chuck Berry, President of the Colorado Association of Commerce and Industry, testified in support of House Bill 05-1253. He commented that House Bill 05-1253 would serve as a significant tool for economic development in Colorado.

02:58 PM -- Mr. John Cody, President of Longmont Area Economic Council, distributed a letter of support from his organization (Attachment I) and testified in support of the legislation.

03:03 PM -- Ms. Vicki Agler, National Federation of Independent Business (NFIB), testified in support of the legislation.

03:06 PM -- Mr. Tom Clark, Denver Metro Chamber, testified in support of the legislation.

03:11 PM -- Ms. Sandra Solin, Colorado Northern Business Alliance, testified in support of the legislation.
























BILL:HB05-1253
TIME: 03:12:08 PM
MOVED:Garcia
MOTION:Moved amendment L.001. (The technical amendment would require that employer information be obtained from the Department of Labor and Employment.) The motion passed without objection by those members present.
SECONDED:May M.
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1253
TIME: 03:16:34 PM
MOVED:Garcia
MOTION:Moved a conceptual amendment that would sunset the credit after 10 years. The motion passed on a 11-1-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
No
Witwer
Yes
Judd
Yes
Vigil
Yes
Not Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:HB05-1253
TIME: 03:23:38 PM
MOVED:McCluskey
MOTION:Refer HB 05-1253, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:Massey
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS


03:29 PM -- House Bill 05-1281 - Concerning an Income Tax Credit for Travel and Tourism

Representative White, prime sponsor, distributed amendment L.001 (Attachment J) and discussed the provisions of House Bill 05-1281 that apply to the promotion of travel and tourism in Colorado. He explained that on or after January 1, 2005, House Bill 05-1281 authorizes an income tax credit equal to 100 percent of the total contribution made to the Colorado Travel and Tourism Additional Source Fund. This fund is continuously appropriated to the Colorado Tourism Office, which is located in the Office of the Governor. Representative White explained that contributions are to be used for travel and tourism promotion. He closed by saying the bill requires that not less than 10 percent of the moneys contributed to the Additional Source Fund be appropriated to the State Council on the Arts which is located within the Department of Higher Education.

The following persons testified:

03:35 PM -- Mr. John Schafer, Denver Metro Chamber, testified in support of the legislation.

03:39 PM -- Mr. Chip Taylor, Colorado Counties Incorporated, testified in support of the legislation and discussed the benefits of House Bill 05-1281 to Colorado.

03:41 PM -- Mr. Chuck Berry, President of the Colorado Association of Commerce and Industry, testified in support of the legislation. Mr. Berry discussed the history of the Colorado Tourism Tax that was in place through 1992.






03:44 PM -- Mr. Pete Meersman, Colorado Restaurant Association, testified in support of the legislation and distributed a handout on tourism (Attachment K) to committee members.

03:48 PM -- Ms. JoAnn Groff, Colorado Retail Council, testified in support of the legislation.

03:51 PM -- Ms. Ilene Kamsler, Colorado Hotel and Lodging Association, testified in support of the legislation.

03:54 PM -- Mr. Rob Perlman, President of Colorado Ski Country USA, testified in support of the legislation.
BILL:HB05-1281
TIME: 03:56:24 PM
MOVED:Massey
MOTION:Moved amendment L.001 (technical amendment). The motion passed without objection by those members present.
SECONDED:Marshall
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
















BILL:HB05-1281
TIME: 03:58:43 PM
MOVED:Garcia
MOTION:Moved a conceptual amendment that would sunset the credit after 10 years. The motion passed without objection by those members present.
SECONDED:Judd
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1281
TIME: 03:59:38 PM
MOVED:May M.
MOTION:Refer HB 05-1281, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:Jahn
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
Yes
Final YES: 10 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS





04:06 PM -- House Bill 05-1175 - Concerning Criminal History Record Information for Emergency Placement of Children

Representative Hodge, prime sponsor, distributed amendment L.003 (Attachment L) and briefly explained the provisions of the bill. She explained that the legislation requires local law enforcement agencies to conduct an initial criminal history record check on a person prior to the county department of social services or local law enforcement officer placing a child in emergency placement.
BILL:HB05-1175
TIME: 04:10:31 PM
MOVED:Benefield
MOTION:Moved amendment L.003. (The amendment makes the program optional for County Departments of Social Services.) The motion passed without objection by those members present.
SECONDED:Massey
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection



















BILL:HB05-1175
TIME: 04:11:12 PM
MOVED:Judd
MOTION:Refer HB 05-1175, as amended, to the Committee on Appropriations. The motion passed on a 12-0-1 vote.
SECONDED:Marshall
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:16 PM -- House Bill 05-1258 - Concerning Property Tax Credits To Support Education

Representative Lundberg, prime sponsor, distributed amendment L.001 (Attachment M) to committee members. He explained that House Bill 05-1258 allows certain taxpayers or renters to claim a property tax credit for costs associated with private school tuition or home schooling. Beginning in the 2005 property tax year, parents or guardians that pay for alternatives to the public school system can claim a credit of up to $1,000 if they meet certain conditions.

The following persons testified:

04:22 PM -- Mr. Ryan Wolff, Colorado Education Association (CEA), testified in opposition to the bill. He commented that CEA opposes the use of tax credits for supporting schools other than public schools.

04:35 PM -- Mr. Tony Salazar, CEA, responded to questions regarding state backfill requirements if the bill were to pass.

The committee discussed the property tax credits under the bill and the cost to fund the bill according to the school finance act.

04:40 PM -- Ms. Margo Brauscomb, representing self, testified in support of the legislation.






BILL:HB05-1258
TIME: 04:45:24 PM
MOVED:May M.
MOTION:Moved amendment L.001 (technical amendment). The motion passed without objection by those members present.
SECONDED:Crane
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1258
TIME: 04:46:14 PM
MOVED:Crane
MOTION:Refer HB 05-1258, as amended, to the Committee on Appropriations. The motion failed on a 9-3-1 vote.
SECONDED:May M.
VOTE
Benefield
No
Cloer
Excused
Crane
Yes
Frangas
No
Garcia
No
Jahn
No
Marshall
No
Massey
No
May M.
Yes
McCluskey
No
Witwer
Yes
Judd
No
Vigil
No
Not Final YES: 3 NO: 9 EXC: 1 ABS: 0 FINAL ACTION: FAIL



BILL:HB05-1258
TIME: 04:47:12 PM
MOVED:Garcia
MOTION:Moved to postpone HB 05-1258 indefinitely. The motion passed on a 8-4-1 vote.
SECONDED:Marshall
VOTE
Benefield
Yes
Cloer
Excused
Crane
No
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
No
McCluskey
No
Witwer
No
Judd
Yes
Vigil
Yes
Final YES: 8 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS


04:48 PM -- House Bill 05-1209 - Concerning Compounding Drugs

Representative McFayden, prime sponsor, distributed amendment L.007 (Attachment N) and explained that House Bill 05-1209 specifies that compounding drugs are included in the practice of pharmacy. The bill removes the sale of compounded drugs from the requirements of the "casual sale" of prescription drugs and removes the requirement that compounded drugs be the result of a practitioner's prescription drug order for the purpose of research, teaching, or chemical analysis.

04:57 PM -- Dr. Melanie Marsden, representing herself, distributed a handout on the random testing of compounding drugs (Attachment O) and testified in opposition to the bill. Dr. Marsden continued by explaining the definition of compounding drugs. She closed by commenting on some quality control issues that could arise should the bill be enacted into law.

05:18 PM -- Ms. Susan Warren, State Board of Pharmacies, Department of Regulatory Agencies (DORA), testified in opposition to the bill and commented that DORA's primary concern is for the safety of Colorado citizens. She commented that the current system allows for drug compounding and discussed regulatory applications that apply to pharmacies. She closed by saying that the bill takes away the requirement that pharmacists compound according to a physicians' orders.











05:39 PM -- Mr. Tom Bader, Compounding Only R/X in Colorado Springs, testified in support of the legislation.

05:53 PM -- Mr. Joe Wise, Wise R/X Compounding, testified in support of the legislation.

05:55 PM -- Mr. Chris Howes, International Academy of Compounding Pharmacists (IACP) of Colorado, testified in support of the legislation.

06:04 PM -- Mr. Jerry Eubanks, Compounding Pharmacists, testified in support of the legislation. He commented that House Bill 05-1209 is about good patient care.

06:13 PM -- Mr. Mark Kinney, R/X Plus Pharmacies, testified in support of the legislation.

06:16 PM -- Ms. Susan Cox, Kaiser Permanente, testified in support of the legislation. She stated that the legislation would centralize the in-house use of compounding drugs for Kaiser and make prescription drugs cheaper for Kaiser members.
BILL:HB05-1209
TIME: 06:19:08 PM
MOVED:Frangas
MOTION:Moved amendment L.007. (The amendment makes a technical clarification.) The motion passed without objection by those members present.
SECONDED:Marshall
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection







BILL:HB05-1209
TIME: 06:29:25 PM
MOVED:Witwer
MOTION:Moved amendment L.006 (Attachment P). (The amendment would have prohibited casual sales.) The motion died for a lack of a second.
SECONDED:
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: TIE
BILL:HB05-1209
TIME: 06:29:48 PM
MOVED:Judd
MOTION:Refer HB 05-1209, as amended, to the Committee on Appropriations. The motion passed on a 11-1-1 vote.
SECONDED:Frangas
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
No
Judd
Yes
Vigil
Yes
Final YES: 11 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS





06:31 PM -- House Bill 05-1283 - Concerning Exemptions from State Income Taxes for U.S. Armed Forces

Representative Witwer, prime sponsor, distributed amendment L.002 (technical change) (Attachment Q) to committee members and discussed the provisions of House Bill 05-1283. He explained that beginning January 1, 2006, House Bill 05-1283 subtracts any income included in Federal taxable income earned by a member of the armed forces of the United States for active duty in calculating the individual's state income tax liability. The bill caps the amount of the deduction at $40,000 for active duty personnel and $6,500 for members of the military reserves of national guard not on active duty. Representative Witwer explained that current law allows this income to be taxed at the state level for all active personnel currently serving in the United States.

The following person testified:

06:37 PM -- Mr. Walter Paul, Department of Military Affairs, distributed a handout on his talking points (Attachment R) and testified in support of the legislation. He commented that junior officers and lower-rank military personnel would benefit the most from the bill.

Representative Witwer provided staff a Department of Revenue fiscal note worksheet on a technical change (Attachment S) that would make it clear that the $6,500 limitation applies to everyone in the military outside of those identified in the legislation.































BILL:HB05-1283
TIME: 06:42:17 PM
MOVED:Witwer
MOTION:Moved amendment L.002. (The amendment makes a technical change that aligns the definition of active service with the federal law.) The motion passed without objection by those members present.
SECONDED:Massey
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1283
TIME: 06:43:26 PM
MOVED:Witwer
MOTION:Moved a technical change that would make it clear that the $6,500 limitation applies to everyone in the military outside of those identified in the bill. The motion passed without objection by those members present.
SECONDED:Massey
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:HB05-1283
TIME: 06:45:43 PM
MOVED:Witwer
MOTION:Refer HB 05-1283, as amended, to the Committee on Appropriations. The motion passed on a 8-4-1 vote.
SECONDED:Frangas
VOTE
Benefield
Yes
Cloer
Excused
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
No
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
No
Final YES: 8 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS


06:55 PM

Adjourn.