Final
STAFF SUMMARY OF MEETING
HOUSE COMMITTEE ON FINANCE
| Date: | 02/25/2009 | ATTENDANCE |
 | | | |
| Time: | 01:33 PM to 05:05 PM | Apuan | X |
| | Benefield | X |
| Place: | LSB A | Gerou | X |
| | Kefalas | X |
| This Meeting was called to order by | Kerr A. | X |
| Representative Judd | Lambert | X |
| Roberts | X |
| This Report was prepared by | Summers | X |
| Ron Kirk | Swalm | X |
| | Frangas | X |
| | Judd | X |
| | X = Present, E = Excused, A = Absent, * = Present after roll call |
| Bills Addressed: | | Action Taken: | |
HB09-1173
HB09-1213
HB09-1242
HB09-1271
HB09-1196 | Amended, Referred to Appropriations
Referred to the Committee of the Whole
Amended, Referred to Appropriations
Postponed Indefinitely
Referred to Appropriations |
01:34 PM -- House Bill 09-1173 - Concerning Contraband Tobacco Products
Representative Riesberg, prime sponsor, explained the provisions of the bill and distributed amendment L.002 (Attachment A), a new article on counterfeit cigarettes (Attachment B), and a letter from the Colorado Association of Distributors (Attachment C). Representative Riesberg noted that House Bill 09-1173 establishes means to reduce the amount of contraband tobacco products entering the state. He continued saying the bill: clarifies that the definition of a "wholesaler" includes any person or entity outside of Colorado that is engaged in the business of selling and shipping cigarettes directly to consumers in Colorado; requires any person or entity in possession of untaxed cigarettes or tobacco products to pay the tax on behalf of the wholesaler or distributor; establishes a civil penalty for failure to pay the tax of up to 500 percent of the payment in addition to the tax owed; requires fine revenue to be deposited in the Tobacco Tax Enforcement Cash Fund for use by the Department of Revenue to enforce the bill; and requires every retailer that is not a licensed distributor to keep records related to the tobacco products it has received and to provide the records to the Department of Revenue upon request.
Representative Riesberg continued by saying that any person who knowingly possesses cigarettes that are not approved for stamping and sale in the departments' directory is subject to a civil penalty of between $100 and $1,000 for the first violation, depending on the quantity of cigarettes in the person's possession. The fine is doubled for the second violation, and tripled for the third or subsequent violation. He continued by saying that fine revenue is to be deposited in the Tobacco Tax Enforcement Cash Fund.
Representative Riesberg discussed the fiscal note and said that for the sale of cigarettes or other tobacco products to a consumer through an internet, telephone, or mail-order transaction, the bill requires the seller to obtain certain information from the consumer. Persons and entities that ship cigarettes or other tobacco products to any person other than a licensed wholesaler or distributor are required to report information about the shipment to the department.
The committee discussed the department's treatment of contraband cigarettes. Representative Riesberg said that the bill provides that rather than the destruction of the tobacco products, a tax could be paid to the department and thus, would allow the contraband cigarettes to still be sold, but for a profit that is reduced by the state taxes owed.
The following persons testified:
01:52 PM -- Mr. Wilson Croom, Colorado Association of Distributors Inc., testified in support of the bill.
02:01 PM -- Mr. Chip Creager, Creager Mercantile, testified in support of the legislation. Mr. Creager discussed the audit process that applies to retailers who sell cigarettes. He closed by saying that 3 percent to 4 percent of all tobacco consumed in Colorado is purchased on the black market.
02:09 PM -- Ms. Mary Szarmach, Smoker Friendly, testified in support of the bill and noted that the bill will level the playing field between cigarette retailers and black market sellers. Given the recent passage of the federal State Children's Health Insurance Program (SCHIP) tax increase of 62 cents, there will be an increase in black market cigarette sales. She closed by saying that catalog and Internet sales also account for a large part of the cigarettes purchased in Colorado.
02:16 PM -- Mr. Grier Bailey, Colorado Wyoming Petroleum Marketers Association, testified in support of the bill.
02:19 PM -- Mr. Harry Zeid, Legislative Council Staff, responded to questions about the fiscal note and the 6.5 FTE required to enforce the provisions of the bill. The committee discussed some of the cash fund balances in the bill's fiscal note.
02:44 PM -- Mr. Ruben Valdez, PhilipMorris USA, testified in support of the bill.
02:51 PM -- Mr. Phillip Horwitz, Colorado Department of Revenue, responded to committee questions and discussed the FTE for enforcement of the bill. The committee engaged in a brief discussion on the Internet sales of cigarettes and other tobacco products.
03:06 PM
The bill was placed on the table for action and amendment L.002 was discussed.
| |
| BILL: | HB09-1173 | |
| TIME: | 03:07:05 PM |
| MOVED: | Benefield |
| MOTION: | Moved amendment L.002. The motion passed on a 8-3 vote. |
| SECONDED: | Frangas |
| VOTE |
| Apuan | Yes |
| Benefield | Yes |
| Gerou | Yes |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | No |
| Roberts | No |
| Summers | Yes |
| Swalm | No |
| Frangas | Yes |
| Judd | Yes |
| | |
Not Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS |
| |
| BILL: | HB09-1173 | |
| TIME: | 03:14:43 PM |
| MOVED: | Frangas |
| MOTION: | Refer House Bill 09-1173, as amended, to the Committee on Appropriations. The motion passed on a 6-5 vote. |
| SECONDED: | Benefield |
| VOTE |
| Apuan | Yes |
| Benefield | Yes |
| Gerou | No |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | No |
| Roberts | No |
| Summers | No |
| Swalm | No |
| Frangas | Yes |
| Judd | Yes |
| | |
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS |
03:23 PM
Recess.
03:30 PM -- House Bill 09-1213 - Concerning the Housing Development Grant Fund
Representative Gagliardi, prime sponsor, explained the provisions of the bill. She noted that the bill creates the Housing Development Grant Fund in the State Treasury to be administered by the Division of Housing in the Department of Local Affairs. The fund will consist of all moneys appropriated to it by the General Assembly, all moneys collected by the division for purposes of the act from federal grants and other contributions, grants, gifts, bequests, and donations received from other governmental entities, individuals, private organizations, or foundations. Representative Gagliardi closed by saying that the bill authorizes the division to solicit, accept, expend, and disburse moneys in the fund to make grants or loans.
The following persons testified:
03:35 PM -- Mr. Bruce Eisenhauer, Colorado Department of Local Affairs, responded to committee questions and discussed the gifts, grants, and donations process for getting money into grant funds under the bill.
03:39 PM -- Ms. Joyce Alms-Ransford, Rocky Mountain Housing, testified in support of the legislation and discussed the use of grant money for affordable housing that may provide homes for the homeless.
03:44 PM -- Ms. Kathy Williams, Colorado Division of Housing, Department of Local Affairs, responded to committee questions and discussed the grant process in the bill.
03:51 PM
| |
| BILL: | HB09-1213 | |
| TIME: | 03:52:04 PM |
| MOVED: | Kefalas |
| MOTION: | Refer House Bill 09-1213 to the Committee of the Whole. The motion passed on a 11-0 vote. |
| SECONDED: | Benefield |
| VOTE |
| Apuan | Yes |
| Benefield | Yes |
| Gerou | Yes |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | Yes |
| Roberts | Yes |
| Summers | Yes |
| Swalm | Yes |
| Frangas | Yes |
| Judd | Yes |
| | |
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS |
03:55 PM -- House Bill 09-1242 - Concerning A State Income Tax Credit for Research Institutions
Representative Summers, prime sponsor, explained the provisions of the bill. He noted that the introduced version of the bill provides for an income tax credit to taxpayers who make contributions to the Department of Higher Education (DHE). Representative Summers distributed amendment L.005 (Attachment D) and explained that it strikes the income tax credit from the bill as a financing tool for higher education institutions and replaces it with a new section that pertains to gifts and bequests.
04:04 PM
After a brief discussion, the bill was placed on the table for action and the following actions were taken by the committee.
| |
| BILL: | HB09-1242 | |
| TIME: | 04:06:28 PM |
| MOVED: | Summers |
| MOTION: | Refer House Bill 09-1242, as amended, to the Committee on Appropriations. The motion passed on a 11-0 vote. |
| SECONDED: | Roberts |
| VOTE |
| Apuan | Yes |
| Benefield | Yes |
| Gerou | Yes |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | Yes |
| Roberts | Yes |
| Summers | Yes |
| Swalm | Yes |
| Frangas | Yes |
| Judd | Yes |
| | |
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS |
04:08 PM -- House Bill 09-1271 - Concerning the Registration of Motor Vehicles
Representative Labuda, prime sponsor, discussed the provisions in the bill and commented on the fee increase in the legislation. After a brief committee discussion on the fee increase in the bill, Representative Judd announced that testimony would be limited because the bill had already had a hearing in a prior committee of reference.
The following persons testified:
04:14 PM -- Ms. Roxy Huber, Colorado Department of Revenue, responded to committee questions about the need for a fee increase in the bill.
04:17 PM -- Ms. Maren Rubino, Colorado Department of Revenue, Division of Motor Vehicles, discussed the need for the fee increase in the bill. The committee discussed the annual payment of the fee and the registration process. Ms. Rubino responded by discussing the electronic storage of titles and registration documents.
The committee discussed the revenue that would be generated by the fee increase in the bill and questioned whether job losses would occur if the fee increase is not adopted by the legislature. Ms. Rubino closed by discussing the need for the annual fee increase and changes in the process of registering a vehicle in the state that are triggering the need for the 60 cent per year fee increase.
04:45 PM -- Mr. Chris Mendez, Colorado Counties Incorporated, testified in support of the bill.
04:47 PM -- Ms. Karen Long, Adams County Clerk and Recorder, testified in support of the bill.
04:49 PM
| |
| BILL: | HB09-1271 | |
| TIME: | 04:49:55 PM |
| MOVED: | Frangas |
| MOTION: | Refer House Bill 09-1271 to the Committee on Appropriations. The motion failed on a 3-8 vote. |
| SECONDED: | Judd |
| VOTE |
| Apuan | No |
| Benefield | Yes |
| Gerou | No |
| Kefalas | No |
| Kerr A. | No |
| Lambert | No |
| Roberts | No |
| Summers | No |
| Swalm | No |
| Frangas | Yes |
| Judd | Yes |
| | |
Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL |
| |
| BILL: | HB09-1271 | |
| TIME: | 04:53:19 PM |
| MOVED: | Gerou |
| MOTION: | Moved to postpone House Bill 09-1271 indefinitely. The motion passed on a 8-3 vote. |
| SECONDED: | Swalm |
| VOTE |
| Apuan | Yes |
| Benefield | No |
| Gerou | Yes |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | Yes |
| Roberts | Yes |
| Summers | Yes |
| Swalm | Yes |
| Frangas | No |
| Judd | No |
| | |
Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS |
04:54 PM -- House Bill 09-1196 - Concerning Penalties Imposed on Nursing Facilities
Representative Gerou, prime sponsor, explained the provisions of the bill. She continued by saying that the bill allows the use of moneys in the Nursing Home Penalty Cash Fund for measures that improve the quality of life for residents in nursing facilities. The committee discussed the fund balance for the current fiscal year. Representative Gerou mentioned that the Department of Health Care Policy and Financing is required to distribute $200,000 in FY 2009-10 and 25 percent of moneys deposited into the fund in future years. She closed by saying that the fund must maintain a balance of at least $1.0 million.
The following person testified:
04:59 PM -- Ms. Penny Cook, Denver Regional Council of Governments, testified in support of the bill.
05:01 PM -- Ms. Ruth Mckee, consumer advocate, testified in support of the bill.
05:02 PM -- Ms. Beth Irtz, Colorado Culture Change Coalition and representing herself, testified in support of the bill.
05:03 PM
| |
| BILL: | HB09-1196 | |
| TIME: | 05:03:27 PM |
| MOVED: | Gerou |
| MOTION: | Refer House Bill 09-1196 to the Committee on Appropriations. The motion passed on a 11-0 vote. |
| SECONDED: | Roberts |
| VOTE |
| Apuan | Yes |
| Benefield | Yes |
| Gerou | Yes |
| Kefalas | Yes |
| Kerr A. | Yes |
| Lambert | Yes |
| Roberts | Yes |
| Summers | Yes |
| Swalm | Yes |
| Frangas | Yes |
| Judd | Yes |
| | |
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS |
05:05 PM
Adjourn.