Date: 04/14/2009

Final
BILL SUMMARY for HB09-1311

SENATE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 09-1311 to the Committee of the WPASS



02:11 PM -- House Bill 09-1311

Senator Veiga, prime sponsor, presented House Bill 09-1311. This bill specifies that the percentage of shareholders in a regulated investment company located in Colorado will be used to source mutual fund sales to Colorado, rather than apportion income. She said that after House Bill 08-1380 was passed last year, the Department of Revenue found difficulties in implementing it. Senator Veiga explained that House Bill 09-1311 would make the necessary technical changes needed to implement the intent of the original law.

The following persons testified on the bill:

02:15 PM -- Mr. James Kennedy, representing Oppenheimer Funds Inc., testified in support of the bill. He explained that the language in the statute passed last year included an income tax apportionment rule, which was not the original intent. Mr. Kennedy explained that the technical corrections in House Bill 09-1311 are needed in order to promulgate regulations to reflect the statutory intent of the law.

02:17 PM -- Mr. Phillip Horwitz, representing the Colorado Department of Revenue, was available to answer the committee's questions. He stated that a sales sourcing rule for mutual fund companies was intended in House Bill 08-1380, and what was passed instead was an income apportionment rule. Mr. Horwitz explained that this distinction is important to how mutual fund income is taxed.


02:19 PM

Senator Sandoval closed public testimony.
BILL:HB09-1311
TIME: 02:19:10 PM
MOVED:Heath
MOTION:Refer House Bill 09-1311 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed 6-0, with one excused.
SECONDED:
VOTE
Brophy
Yes
Heath
Yes
Isgar
Yes
King K.
Yes
Scheffel
Yes
Hudak
Excused
Sandoval
Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS