Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:02/05/2009
ATTENDANCE
Time:10:03 AM to 11:05 AM
Brophy
X
Heath
X
Place:SCR 354
Isgar
*
King K.
*
This Meeting was called to order by
Scheffel
*
Senator Sandoval
Hudak
X
Sandoval
X
This Report was prepared by
Elizabeth Hanson
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB09-139
SB09-126
SB09-076
Amended, Referred to the Committee of the Whole
Referred to the Committee of the Whole
Referred to Appropriations


The meeting came to order. A quorum was present. Senator Sandoval passed the gavel to Senator Hudak to chair the meeting, and Senator Sandoval was excused to present a bill to another committee.

10:04 AM -- Senate Bill 09-139

Senator Shaffer, prime sponsor, presented Senate Bill 09-139. He explained that the bill, which came out of the Uniform Law Commission, has two primary objectives-- clarifying the law after a revenue ruling from the Internal Revenue Service (IRS) about marital deductions, and providing a formula for taxation when a trust is a member of a Limited Liability Corporation (LLC) or partnership. He also distributed a copy of Amendment L.001 (Attachment A) to the members of the committee, stating that the amendment made technical corrections to the bill.

09SenateFin0205AttachA.pdf

The following witness testified on the bill:

10:07 AM --
Mr. Stanley Kent, representing himself, testified in support of the Senate Bill 09-139 and provided background and reasons for the proposed bill. He explained that the bill would help to clarify the uniform trust laws after a revenue ruling from the IRS about marital deductions. Mr. Kent also discussed estate planning and qualifying for the marital deduction. Mr. Kent responded to questions from the committee about trusts, estate planning, and the uniform trust law in general.









10:12 AM

Senator Hudak closed public testimony.
BILL:SB09-139
TIME: 10:13:09 AM
MOVED:Heath
MOTION:Refer Senate Bill 09-139, as amended, 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
Yes
Sandoval
Excused
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:SB09-139
TIME: 10:13:57 AM
MOVED:Heath
MOTION:Adopt Amendment L.001 (Attachment A). The motion passed without objection by the members present.
SECONDED:
VOTE
Brophy
Heath
Isgar
King K.
Scheffel
Hudak
Sandoval
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection













10:17 AM -- Senate Bill 09-126

Senator Newell, prime sponsor, presented Senate Bill 09-126, which extends the voluntary contribution designation benefiting the multiple sclerosis fund that appears on the state's individual income tax forms. Money from the fund, she explained is used to benefit the National Multiple Sclerosis Society. Senator Newell stated that the multiple sclerosis checkoff fund has met the $75,000 threshold required to remain on the state's income tax form. Senator Newell responded to questions from the committee about the multiple sclerosis fund.

The following witnesses testified on the bill:

10:20 AM --
Mr. Michael King, representing the Colorado Chapter of the National Multiple Sclerosis Society, testified in support of the bill. He explained that 72,000 Colorado citizens are afflicted by this disease and that it is unknown why there is such a high incidence of multiple sclerosis in Colorado. He explained that the disease can cause severe economic hardship for individuals and families. He also presented background information to the committee about multiple sclerosis, stating that the disease disrupts the flow of information to the brain, affecting cognitive functioning and causing physical problems with gait and balance. He said that the National Multiple Sclerosis Society awards research grants at the national level and eight of those grants have been awarded in Colorado. Mr. King responded to questions from the committee about multiple sclerosis research, the impacts of altitude on the disease, and research grants.

10:25 AM --
Ms. Carrie Nolan, representing the National Multiple Sclerosis Society, testified in support of the bill. She explained that the money collected from the tax check-off program is used locally in Colorado, and that other dollars are earmarked for research. She also discussed the impacts of altitude on the disease and the impact of multiple sclerosis on young individuals in Colorado.


10:29 AM

Senator Hudak closed public testimony.
BILL:SB09-126
TIME: 10:30:12 AM
MOVED:Brophy
MOTION:Refer Senate Bill 09-126 to the Committee of the Whole. The motion passed 6-0, with one excused.
SECONDED:
VOTE
Brophy
Yes
Heath
Yes
Isgar
Yes
King K.
Yes
Scheffel
Yes
Hudak
Yes
Sandoval
Excused
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS








Senator Sandoval returned as Chair of the Senate Finance Committee.

10:32 AM -- Senate Bill 09-076

Senator Heath, prime sponsor, presented Senate Bill 09-076, which creates the Employment Training and Technology Fund for automation initiatives at the Department of Labor and Employment. The bill diverts 20 percent of employer surcharge taxes to the Technology Fund, which is used as a savings account for future department technology projects. Senator Heath explained that an audit found that the department needs additional funding to improve its aging computer system. Senator Heath responded to questions from the committee about the bill.

The following witnesses testified on the bill:

10:34 AM --
Mr. Michael Cullen, representing the Colorado Department of Labor and Employment, testified and provided background information and reasons for the bill. He stated that the department is operating the unemployment program on old technology. Mr. Cullen responded to questions from the committee about the unemployment tax system and the costs associated with it.


10:42 AM

Senator Heath stated that setting aside a reserve to fund improvements to an aging computer system is a necessary investment. Senator Heath responded to additional questions from the committee about the impacts of the bill on employers paying into the unemployment fund. Discussion also ensued about potential impacts on the state's cash funds.


10:51 AM

Discussion also ensued about the cost employers currently pay for unemployment insurance.

10:57 AM -- Ms. Dara Hessee, representing the Governor's Office of Information Technology (OIT), testified about the bill. She stated that she sees this project as a top priority, and OIT will explore options already available in the commercial market to improve the computer system. Ms. Hessee responded to questions from the committee about technology issues.


11:00 AM


Senator Sandoval closed public testimony.
















BILL:SB09-076
TIME: 11:01:45 AM
MOVED:Heath
MOTION:Refer Senate Bill 09-076 to the Committee on Appropriations. The motion passed 7-0.
SECONDED:
VOTE
Brophy
Yes
Heath
Yes
Isgar
Yes
King K.
Yes
Scheffel
Yes
Hudak
Yes
Sandoval
Yes
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


11:05 AM

The committee adjourned.