House Committee on Finance (02/10/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/10/2009	ATTENDANCE

Time:	10:16 AM to 11:59 AM	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:
HB09-1215 HB09-1265 HB09-1219		Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole

10:16 AM -- House Bill 09-1215 -- Concerning a State Stabilization Fund

Representative Ferrandino, prime sponsor, distributed amendment L.001 (Attachment A) and a fact-sheet on House Bill 09-1215 (Attachment B) and explained the provisions of the bill. He explained that the bill is recommended by the Joint Budget Committee. It creates the State SSI Stabilization Fund to help the Department of Human Services (DHS) meet the federal target for state spending for assistance to recipients of the federal SSI benefits. The stabilization fund receives moneys recovered by adult assistance programs due to overpayments to recipients.

Representative Ferrandino continued by saying that money in the stabilization fund is continuously appropriated to the DHS. The DHS is required to report annually to the JBC on whether expenditures are made from the stabilization fund, the date and amount of any of expenditures, and the programs for which the expenditures are made. Funds in excess of $1.5 million at the end of any fiscal year are transferred to the General Fund. After a brief committee discussion, the committee heard testimony.

The following person testified:

10:23 AM -- Ms. Jeanette Hensley, Colorado Department of Human Services, responded to questions regarding programs that are administered by the department and impacted by the bill. Ms. Hensley discussed the administration of the State SSI Stabilization Fund. She closed by commenting on the federal target for state spending regarding assistance to recipients of federal SSI benefits.

10:36 AM

The bill was placed on the table for action and amendment L.001 was acted upon.


BILL:	HB09-1215
TIME:	10:36:10 AM
MOVED:	Kefalas
MOTION:	Moved amendment L.001. The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1215
TIME:	10:36:56 AM
MOVED:	Benefield
MOTION:	Refer House Bill 09-1215, as amended, to the Committee of the Whole. The motion passed on a 10-1 vote.
SECONDED:	Kefalas
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	Yes
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	Yes
	Judd	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:43 AM -- House Bill 09-1265 -- Concerning Certain Abatement Interest

Representative Liston, prime sponsor, explained that whenever a county, a court, the Board of Assessment Appeals in the Department of Local Affairs (DOLA), or the Division of Property Taxation in the DOLA determine that a nonprofit organization was mistakenly charged property tax, an interest refund may be awarded; however, such interest shall only be calculated for two years, and at an amount equal to that charged to delinquent taxpayers (i.e., up to 12% annually). Refunds, including interest, may be awarded if there is evidence that the nonprofit organization made the error that caused the mistaken collection of the tax. After a brief discussion, testimony was taken by the committee.

The following person testified:

10:45 AM -- Ms. Sandra Damron, El Paso County Treasurer's Office, testified in support of the bill. Ms. Damron noted that under current law a property tax abatement is given to religious, educational, and charitable organizations among other exempt nonprofits. When a taxing authority mistakenly collects taxes on these properties they can be required to refund the tax and interest. She closed by saying that there is no limit on the number of years for which the tax abatement refund can include interest payments.

10:51 AM

The bill was placed on the table for action and no amendments were offered.


BILL:	HB09-1265
TIME:	10:51:12 AM
MOVED:	Frangas
MOTION:	Refer House Bill 09-1265 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

10:52 AM -- House Bill 09-1219 -- Concerning Interest Paid to Taxpayers on Certain Overpayments

Representative Judd, prime sponsor, distributed amendments L.001 (Attachment C) and L.002 (Attachment D) and explained the circumstances that result in the Department of Revenue paying out interest on overpayments associated with corporate returns.

The following persons testified:

11:08 AM -- Ms. Sheryle Hutter, Equal Justice Foundation (EJF) and representing herself, testified in opposition toward the bill.

11:11 AM -- Mr. Phillip Horwitz, Colorado Department of Revenue, responded to committee questions and discussed the amendments. The department has been looking at this issue for a long time. There are three different rules for paying interest in statute and this bill will consolidate these rules into one method. Thus, the bill will change the interest calculation to one calculation for all taxpayers. Mr. Horwitz noted that under current law, for corporations that have the cash, overpayments receive a generous rate-of-return on money that is overpaid as estimated tax payments. Mr. Horwitz closed by saying that the bill will save the state some money and reduce the intentional overpayment of taxes by certain corporations.

The committee engaged in a discussion about whether the bill imposes an unfair burden on certain corporate taxpayers. Mr. Horwitz responded by discussing some of the taxpayer-related circumstances that triggered the need for the bill.

The committee continued the discussion on the taxpayer data that was used to generate the numbers for the $2.3 million in savings under the bill. Mr. Horwitz responded by saying that the bill simply brings the treatment of corporate taxpayers in line with individual taxpayers. The committee continued the discussion on the option of following federal law that would change the "prime plus three" interest rate in current state law to a lesser rate. Mr. Horwitz responded by saying that the department considered just lowering the rate but would place some taxpayers at an unfair advantage. Mr. Horwitz closed by saying that the bill will not result in taxpayers underpaying their taxes.

11:53 AM

The bill was placed on the table for action and the following actions were taken.


BILL:	HB09-1219
TIME:	11:53:55 AM
MOVED:	Judd
MOTION:	Moved amendment L.002. The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1219
TIME:	11:54:55 AM
MOVED:	Judd
MOTION:	Moved amendment L.001. The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1219
TIME:	11:57:03 AM
MOVED:	Judd
MOTION:	Refer House Bill 09-1219, as amended, to the Committee of the Whole. The motion passed on a 9-2 vote.
SECONDED:	Benefield
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	No
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	Yes
	Judd	Yes

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:59 AM

Adjourn.