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HOUSE JOURNAL

SIXTY-SECOND GENERAL ASSEMBLY

STATE OF COLORADO

First Regular Session

Fifty-seventh Legislative Day Wednesday, March 3, 1999

Prayer by the Reverend Patty Lucas, Mile High Church, Lakewood.

The Speaker called the House to order at 9:00 a.m.

The roll was called with the following result:

Present--64.

Absent and excused--Representative Saliman--1.

The Speaker declared a quorum present.

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On motion of Representative Lee, the reading of the journal of March 2, 1999, was dispensed with and approved as corrected by the Chief Clerk.

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REPORTS OF COMMITTEE OF REFERENCE

APPROPRIATIONS

After consideration on the merits, the Committee recommends the following:

HB99-1029 be postponed indefinitely.

HB99-1125 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Amend the Finance Committee Report, dated February 4, 1999, page 1, strike lines 1 and 2 and substitute the following:

"Amend printed bill, page 1, after line 1, insert the following:

"SECTION 1.  Part 3 of article 22 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

39­22­303.3.  Temporary adjustment in the computation of the amount of foreign source income to be apportioned to Colorado for state corporate income tax purposes. (1)  FOR ANY INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, IF, BASED UPON THE FINANCIAL REPORT PREPARED IN ACCORDANCE WITH SECTION 24­77­106.5, C.R.S., THE CONTROLLER CERTIFIES THE AMOUNT OF STATE REVENUES FOR THE STATE FISCAL YEAR ENDING IN THAT INCOME TAX YEAR EXCEED THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION AND THE VOTERS STATEWIDE HAVE EITHER NOT AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OF THE EXCESS REVENUES OR HAVE AUTHORIZED THE STATE TO RETAIN AND SPEND ONLY A PORTION OF THE EXCESS STATE REVENUES FOR THAT FISCAL YEAR, THE AMOUNT OF FOREIGN SOURCE INCOME TO BE EXCLUDED FROM STATE INCOME TAX FOR THAT INCOME TAX YEAR PURSUANT TO SECTION 39­22­303 SHALL BE DETERMINED IN ACCORDANCE WITH SECTION 39­22­303 (10) (b) (III).

(2)  FOR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1, 2000, THE AMOUNT OF FOREIGN SOURCE INCOME TO BE EXCLUDED FROM STATE INCOME TAX FOR THAT INCOME TAX YEAR PURSUANT TO SECTION 39­22­303 SHALL BE DETERMINED IN ACCORDANCE WITH SECTION 39­22­303 (10) (b) (II).

(3)  FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2000, IF, BASED UPON THE FINANCIAL REPORT PREPARED IN ACCORDANCE WITH SECTION 24­77­106.5, C.R.S., THE CONTROLLER FAILS TO CERTIFY THAT THE AMOUNT OF STATE REVENUES FOR THE STATE FISCAL YEAR ENDING IN THAT INCOME TAX YEAR EXCEEDS THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION OR THE VOTERS STATEWIDE HAVE AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OF THE EXCESS REVENUES FOR THAT FISCAL YEAR, THE AMOUNT OF FOREIGN SOURCE INCOME TO BE EXCLUDED FROM STATE INCOME TAX FOR THAT INCOME TAX YEAR PURSUANT TO SECTION 39­22­303 SHALL BE DETERMINED IN ACCORDANCE WITH SECTION 39­22­303 (10) (b) (II).

(4)  THE EFFECTIVE FEDERAL TAX RATE AS DEFINED IN SECTION 39­22­303 (10) (b) (III) TO BE USED IN THE COMPUTATION OF THE AMOUNT OF FOREIGN SOURCE INCOME TO BE APPORTIONED TO COLORADO FOR STATE INCOME TAX PURPOSES PURSUANT TO SECTION 39­22­303 (10) (b) (III), SHALL BE PUBLISHED IN RULES PROMULGATED BY THE DIRECTOR OF THE DEPARTMENT OF REVENUE IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.

(5)  IF ONE OR MORE BALLOT QUESTIONS THAT SEEK AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY PORTION OF THE AMOUNT OF EXCESS STATE REVENUES FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR ARE SUBMITTED TO THE VOTERS AT A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY CALENDAR YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL NOT PUBLISH RULES AS REQUIRED BY SUBSECTION (4) OF THIS SECTION UNTIL SUCH RULES ARE ABLE TO REFLECT THE IMPACT OF THE RESULTS OF SUCH ELECTION ON THE EFFECTIVE FEDERAL TAX RATE AS DEFINED IN SECTION 39­22­303 (10) (b) (III) TO BE USED PURSUANT TO SAID SECTION.".

Renumber succeeding sections accordingly.

Page 2, strike lines 9 and 10 and substitute the following:

"(II)  SUBJECT TO SECTION 39­22­303.3 (2) AND (3), the amount to be excluded shall be determined by multiplying the";

strike lines 19 and 20 and substitute the following:

"(III)  SUBJECT TO SECTION 39­22­303.3 (1), THE AMOUNT TO BE EXCLUDED SHALL BE DETERMINED BY".

Page 3, after line 9, insert the following:

"SECTION 3.  24­77­106.5, Colorado Revised Statutes, is amended to read:

24­77­106.5.  Annual financial report ­ certification of state excess revenues. (1) (a)  For each fiscal year, the controller shall prepare a financial report for the state for purposes of ascertaining compliance with the provisions of this article. Any financial report prepared pursuant to this section shall include, but shall not be limited to, state fiscal year spending, reserves, revenues, and debt. Such financial report shall be audited by the state auditor.

(b)  BASED UPON THE FINANCIAL REPORT PREPARED IN ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1) FOR ANY GIVEN FISCAL YEAR, THE CONTROLLER SHALL CERTIFY TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE NO LATER THAN SEPTEMBER 1 FOLLOWING THE END OF A FISCAL YEAR THE AMOUNT OF STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION, IF ANY, FOR SUCH FISCAL YEAR.

(2)  ANY FINANCIAL REPORT PREPARED AND CERTIFICATION OF STATE EXCESS REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS SECTION SHALL BE AUDITED BY THE STATE AUDITOR. NO LATER THAN SEPTEMBER 15 FOLLOWING THE CERTIFICATION MADE BY THE STATE CONTROLLER FOR ANY GIVEN FISCAL YEAR, THE STATE AUDITOR SHALL REPORT AND TRANSMIT TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE THE RESULTS OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH THIS SUBSECTION (2).

(2) (3)  Notwithstanding any generally accepted accounting principles to the contrary, financial reports prepared pursuant to subsection (1) of this section shall not include any unrealized gains or losses on investments held by the state.".";

line 4 of the Finance Committee Report, strike "2." and substitute "4.".


HB99-1246 be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Amend the Finance Committee Report, dated February 3, 1999, page 1, before line 1, insert the following:

"Amend printed bill, page 1, line 5, strike "ANY" and substitute "FOR ANY INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, IF, BASED UPON THE FINANCIAL REPORT PREPARED IN ACCORDANCE WITH SECTION 24­77­106.5, C.R.S., THE CONTROLLER CERTIFIES THE AMOUNT OF STATE REVENUES FOR THE STATE FISCAL YEAR ENDING IN THAT INCOME TAX YEAR EXCEED THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION AND THE VOTERS STATEWIDE HAVE EITHER NOT AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OF THE EXCESS STATE REVENUES OR HAVE AUTHORIZED THE STATE TO RETAIN AND SPEND ONLY A PORTION OF THE EXCESS STATE REVENUES FOR THAT FISCAL YEAR, ANY";";

line 1 of the Finance Committee Report, strike "Amend printed bill, page 1,";

line 4, strike "(a)";

line 12, strike "(a)";

line 15, strike "(I)" and substitute "(a)";

line 17, strike "(II)" and substitute "(b)";

line 18, strike "RETURN." and substitute "RETURN.".";

strike line 19.

Page 2, strike lines 1 through 8.

after line 10, insert the following:

"after line 9, insert the following:

"(5)  ANY CREDIT ALLOWED PURSUANT TO THE PROVISIONS OF THIS SECTION SHALL BE PUBLISHED IN RULES PROMULGATED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.

(6)  IF ONE OR MORE BALLOT QUESTIONS THAT SEEK AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY PORTION OF THE AMOUNT OF EXCESS STATE REVENUES FOR THE IMMEDIATELY PRECEDING FISCAL YEAR ARE SUBMITTED TO THE VOTERS AT A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY CALENDAR YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL NOT PUBLISH RULES CONTAINING ANY STATE INCOME TAX CREDIT ALLOWED PURSUANT TO THIS SECTION UNTIL SUCH RULES ARE ABLE TO REFLECT THE IMPACT OF THE RESULTS OF SUCH ELECTION ON THE STATE INCOME TAX CREDIT ALLOWED PURSUANT TO THIS SECTION.

SECTION 2.  24­77­106.5, Colorado Revised Statutes, is amended to read:

24­77­106.5.  Annual financial report. (1) (a)  For each fiscal year, the controller shall prepare a financial report for the state for purposes of ascertaining compliance with the provisions of this article. Any financial report prepared pursuant to this section shall include, but shall not be limited to, state fiscal year spending, reserves, revenues, and debt. Such financial report shall be audited by the state auditor.

(b)  BASED UPON THE FINANCIAL REPORT PREPARED IN ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1) FOR ANY GIVEN FISCAL YEAR, THE CONTROLLER SHALL CERTIFY TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE NO LATER THAN SEPTEMBER 1 FOLLOWING THE END OF A FISCAL YEAR THE AMOUNT OF STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF THE ARTICLE X OF THE STATE CONSTITUTION, IF ANY, FOR SUCH FISCAL YEAR.

(2)  ANY FINANCIAL REPORT PREPARED AND CERTIFICATION OF STATE EXCESS REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS SECTION SHALL BE AUDITED BY THE STATE AUDITOR. NO LATER THAN SEPTEMBER 15 FOLLOWING THE CERTIFICATION MADE BY THE STATE CONTROLLER FOR ANY GIVEN FISCAL YEAR, THE STATE AUDITOR SHALL REPORT AND TRANSMIT TO THE GOVERNOR, THE GENERAL ASSEMBLY AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE THE RESULTS OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH THIS SUBSECTION (2).

(2) (3)  Notwithstanding any generally accepted accounting principles to the contrary, financial reports prepared pursuant to subsection (1) of this section shall not include any unrealized gains or losses on investments held by the state.".

Renumber succeeding section accordingly.";

line 11, before "strike", insert "Page 2,".

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PRINTING REPORT

The Chief Clerk reports the following bills have been correctly printed: HB99-1326, 1327, 1328, 1329.

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MESSAGE FROM THE SENATE

Mr. Speaker:

The Senate has passed on Third Reading and returns herewith HB99-1065, 1130, and 1162.

The Senate has passed on Third Reading and transmitted to the Revisor of Statutes: SB99-011, 030, and 201;

HB99-1047, amended as printed in Senate Journal, February 26, page 372, and on Third Reading as printed in Senate Journal, March 2;

HB99-1091, amended as printed in Senate Journal, February 26, page 373;

HB99-1122, amended on Third Reading as printed in Senate Journal, March 2.

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MESSAGE FROM THE REVISOR

We herewith transmit without comment, SB99-011, 030, and 201; and, without comment, as amended, HB99-1047, 1091, and 1122.

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INTRODUCTION OF BILLS

First Reading

The following bills were read by title and referred to the committees indicated:

HB99-1328 by Representative George--Concerning the establishment of the local government growth assistance program to provide financial assistance to growth-impacted local governmental entities, and making an appropriation in connection therewith.

Committee on Finance

Committee on Appropriations

HB99-1329 by Representative Dean; also Senator Lacy--Concerning regulation of bail bonding agents, and, in connection therewith, requiring bail bonding agents for surety companies to post a bond and requiring cash bonding agents to be licensed.

Committee on Judiciary

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LAY OVER OF CALENDAR ITEMS

On motion of Representative Dean, the following items on the Calendar were laid over until March 4, retaining place on Calendar:

Consideration of General Orders--HB99-1316, 1318, SB99-111, 041, HB99-1003, 1015, 1016, 1141, 1207, SB99-044, 066, 135.

Consideration of Resolution--HJR99-1007.

Consideration of Senate Amendments--HB99-1017, 1061, 1073, 1100, 1123, 1156.

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On motion of Representative Dean, the House adjourned until 9:00 a.m., March 4, 1999.

Approved:


RUSSELL GEORGE,

Speaker

Attest:

JUDITH RODRIGUE,

Chief Clerk