Final
STAFF SUMMARY OF MEETING
HOUSE
COMMITTEE ON
FINANCE
Date:
02/24/2005
ATTENDANCE
Time:
09:40 AM
to
11:58 AM
Benefield
X
Cloer
X
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.
E
McCluskey
X
Witwer
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed:
Action Taken:
HB05-1228
HB05-1290
HB05-1050
Amended, Referred to Committee on Appropriations
Referred to the Committee of the Whole
Amended, Referred to Committee on Appropriations
09:39 AM -- House Bill 05-1228 - Concerning Supplemental Educational Services Programs
Representative Paccioni, prime sponsor, explained House Bill 05-1228 creates a new TABOR refund mechanism amounting to $40 million per year in years in which excess TABOR revenue is at least $120 million. She explained that for fiscal years commencing on or after July 1, 2006, the bill authorizes a $500 refundable credit against state taxes for qualifying low-income students in preschool, kindergarten, or the 1st through 3rd grade, who participate in qualifying supplemental educational services programs.
The committee discussed the provisions in the bill that pertain to funding for the administration of the program from gifts, grants, and donations. Representative Paccioni distributed amendments L.001 (Attachment A), L.002 (Attachment B), L.003 (Attachment C), and L.004 (Attachment D).
The following persons testified:
10:03 AM --
Ms. Barbara O'Brien, President of the Colorado Children's Campaign, testified in support of the legislation. She discussed the importance of preschool programs for low-income children and commented that federal studies indicate that preschool programs have a 16 to 1 return on the dollars the state invests in these programs. Ms. O'Brien closed by encouraging the committee to vote for House Bill 05-1228.
10:12 AM --
Mr. Ken Seeley, President of the Colorado Foundation for Families and Children, testified in support of the measure and commented on a Rand Corporation study that contained a cost-benefit analysis of early intervention programs.
10:15 AM --
Mr. Mark Messenbaugh, Colorado Alliance of Girls and Boys Clubs, testified in support of the legislation. He gave the committee a brief overview of the different functions and services provided by the boys and girls clubs in Colorado. Mr. Messenbaugh commented that if the state can invest more moneys in after-school programs, the state will see higher graduation rates and experience other changes that will benefit Colorado's youth.
10:28 AM --
Ms. Laura Hensinger, Colorado Department of Education, responded to committee questions and did not take a position on the bill.
Prior to placing the bill on the table for action, the committee and Representative Paccioni commented on the expenditures in the fiscal note.
BILL:
HB05-1228
TIME:
10:32:51 AM
MOVED:
Garcia
MOTION:
Moved amendment L.001. (The amendment clarifies that the cap for the stipend paid to qualified supplemental educational service providers is $500.) The motion passed without objection by those members present.
SECONDED:
Marshall
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1228
TIME:
10:33:42 AM
MOVED:
Garcia
MOTION:
Moved amendment L.002. (The amendment changes the bill title to clarify that the refundable credit is a refund mechanism.) The motion passed without objection by those members present.
SECONDED:
Judd
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1228
TIME:
10:34:30 AM
MOVED:
Garcia
MOTION:
Moved amendment L.003. (The amendment adds the 21st Century Community Learning Centers Program as an approved provider program.) The motion passed without objection by those members present.
SECONDED:
Marshall
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1228
TIME:
10:35:04 AM
MOVED:
Garcia
MOTION:
Moved amendment L.004. (The amendment adds providers that have a charter affiliation with a national youth development organization.) The motion passed without objection by those members present.
SECONDED:
Marshall
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1228
TIME:
10:35:37 AM
MOVED:
Garcia
MOTION:
Refer HB 05-1228, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:
Marshall
VOTE
Benefield
Yes
Cloer
Yes
Crane
No
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Excused
McCluskey
Yes
Witwer
No
Judd
Yes
Vigil
Yes
Final YES:
10
NO:
2
EXC:
1
ABS:
0
FINAL ACTION:
PASS
10:42 AM -- House Bill 05-1290 - Concerning Incentives for Alternative Fuel Vehicles
Representative Pommer, prime sponsor, explained that state law allows for a state income tax credit for the purchase of alternative fuel and hybrid fuel vehicles. He commented that House Bill 05-1290 extends this credit. Representative Pommer mentioned that the bill's provisions that allowed hybrid and inherently low-emission vehicles to operate on a publicly-financed toll highway without paying a toll were struck from the bill (Section 2) in the House Transportation Committee.
The following person testified:
10:45 AM
-- Mr. Tim Jackson, Colorado Auto Dealers Association, testified in support of the legislation. He commented on the hybrid vehicles that are on the market in Colorado and the high demand for the vehicles. He responded to several committee questions saying that the average hybrid vehicle costs between $35,000 and $37,000 and the tax credits in House Bill 05-1290 will help make these vehicles more affordable.
BILL:
HB05-1290
TIME:
10:50:38 AM
MOVED:
Jahn
MOTION:
Refer HB 05-1290, to the Committee of the Whole. The motion passed on a 11-0-2 vote.
SECONDED:
Marshall
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Excused
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Excused
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES:
11
NO:
0
EXC:
2
ABS:
0
FINAL ACTION:
PASS
10:59 AM -- House Bill 05-1050 - Concerning Economic Development Incentives for Colorado Employers
Representative Garcia, prime sponsor, explained House Bill 05-1050 establishes an incentive for economic development by allowing certain employers to retain a portion of the state income taxes they withhold from their employees' pay. To qualify for the incentive, an employer must be engaged in a "strategic project" that will generate more in state revenue than the value of the incentive within a fiscal year. A strategic project entitles an employer to retain 50 percent of the state income taxes withheld from employees hired exclusively for the project. Once qualified, an employer can keep the remaining 50 percent, as long as an amount equal to the additional incentive is spent on a public infrastructure project and certain other conditions are met.
Representative Garcia distributed amendment L.001 (Attachment E) and a handout on the Colorado Jobs Initiative (Attachment F) to committee members and commented that amendment L.001 would restrict the number of employers who could capture the tax incentive under the bill. He commented that amendment L.001 changes the definition of and places restrictions on primary employers who qualify for the tax incentives in the bill.
Representative Massey commented on a concern that small employers would not be able to capture the tax incentives under the bill. The committee discussed the potential increase in Colorado jobs should House Bill 05-1050 be enacted. Representative Garcia discussed the types of larger employers who might benefit from the legislation and commented on the revenue gains that smaller communities may see should new employers locate in them. The committee discussed the repealer in the bill.
The following persons testified:
11:23 AM --
Mr. John Cody, President of the Longmont Area Economic Council, testified in support of the legislation. Prior to giving the committee a PowerPoint presentation, he distributed a letter from the council (Attachment G) and a handout on job growth in Colorado (Attachment H). He commented that quality jobs are important to Colorado because they bring new wealth into the state. He also discussed the importance of primary job growth in Colorado and talked about net new job growth in Metro Denver and Colorado.
11:39 AM --
Mr. Rocky Scott, Colorado Springs Economic Development Council, testified in support of the legislation. Mr. Scott commented on other states that have provided incentives to primary employers and the need for Colorado to do as much as it can to bring more businesses into the state.
BILL:
HB05-1050
TIME:
11:47:03 AM
MOVED:
Garcia
MOTION:
Moved amendment L.001. (The amendment re-defines employer for purposes of the bill. It also clarifies several requirements for employers who claim tax incentives under the bill.) The motion passed without objection by those members present.
SECONDED:
McCluskey
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1050
TIME:
11:52:44 AM
MOVED:
Garcia
MOTION:
Refer HB 05-1050, as amended, to the Committee on Appropriations. The motion passed on a 10-2-1 vote.
SECONDED:
McCluskey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Excused
McCluskey
Yes
Witwer
Yes
Judd
No
Vigil
Yes
Final YES:
10
NO:
2
EXC:
1
ABS:
0
FINAL ACTION:
PASS
11:58 AM
Adjourn.