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I_TaxEval_2019A 10/30/2019 10:00:00 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  TAX EXPENDITURE EVALUATION INTERIM STUDY COMMITTEE
Date 10/30/2019
Attendance
Bockenfeld X
Moreno X
Snyder X
Tate *
Court X
Benavidez X
X = Present, E = Excused, A = Absent, * = Present after roll call
Time 10:00:00 AM to 01:23:38 PM
Place LSB A
This Meeting was called to order by Representative Benavidez
This Report was prepared by Greg Sobetski
Hearing Items Action Taken
Approval of Committee Letter to the Joint Agriculture Committee Committee Discussion Only
Public Testimony on Draft Legislation Committee Discussion Only
Consideration of Draft Legislation Committee Discussion Only

Approval of Committee Letter to the Joint Agriculture Committee - Committee Discussion Only


10:01:01 AM  

Representative Benavidez, chair, called the meeting to order.  The committee took a brief recess to correct technological issues.

10:09:00 AM  

The committee considered a draft letter requesting that the Joint Agriculture Committee review the State Auditor's evaluation of the Agricultural Inputs Sales and Use Tax Exemption.



10:09:05 AM
Motion Approve the Letter to the Joint Agriculture Committee
Moved Snyder
Seconded Moreno
Bockenfeld
Moreno
Snyder
Tate
Court
Benavidez
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection



Public Testimony on Draft Legislation - Committee Discussion Only

10:09:25 AM  

Representative Benavidez invited members of the public to address the committee concerning draft legislation.

10:09:34 AM  

Brian Casey, Kallene West, Marc Solome, and Renee Bernhard testified in opposition to draft Bill 1. Mr. Casey, representing Thrivent, testified in opposition to draft Bill 1 and advocated that the committee retain the insurance premium tax exemption for fraternal organizations. He presented a letter in support of Thrivent from Habitat for Humanity of Metro Denver (Attachment A).

10:15:50 AM  

Ms. Bernhard, representing Foster Source, testified in opposition to draft Bill 1. She explained that her business supports foster parents and purchases insurance from Thrivent, which benefits from the insurance premium tax exemption that would be repealed under draft Bill 1.

10:22:12 AM  

Ms. West, representing Modern Woodmen, testified in opposition to draft Bill 1. Her organization supports youth programming in southern Colorado and also purchases insurance coverage through a fraternal organization.

10:25:09 AM  

Mr. Solome, representing the Knights of Columbus, testified in opposition to draft Bill 1. He presented the history of his organization, which provides insurance coverage to some of its members and their spouses.

10:42:30 AM  

Mr. Casey provided hard copies of a letter from the American Fraternal Alliance that he had previously sent to committee members (Attachment B) and a document entitled "Legislative History of the Fraternal Benefit Society Tax Exemption in Colorado" (Attachment C).

10:54:45 AM  
Chaer Robert, representing the Colorado Center
on Law and Policy, testified in support of draft Bill 16, concerning child
care expenses income tax credits. She testified that the bill would correct
a coverage gap in the two credits available under current law. Ms. Robert
provided a handouts titled "The Self-Sufficiency Standard 2018"
for different counties (Attachment D) and a report titled "The Self-Sufficiency
Standard for Colorado 2018" (Attachment E).
11:03:32 AM  

Michelle Colin, representing the Office of the State Auditor, testified regarding draft Bill 18, concerning the creation of a tax commission. Ms. Colin recommended that the bill be amended to clarify her office's staff assistance responsibilities on page 5, line 17, of the bill draft, and to exclude her office from the ability to receive gifts, grants, and donations as a commission member, which language begins on the bottom of page 11 of the bill draft.

11:08:32 AM  

The committee took a recess.



Consideration of Draft Legislation - Committee Discussion Only


11:18:57 AM  

The committee took up consideration of draft legislation.

11:20:07 AM  

Esther van Mourik and Pierce Lively, representing the Office of Legislative Legal Services, addressed the committee regarding draft bills that could potentially be taken up by the Statutory Revision Committee.  Ms. van Mourik advised that draft Bills 6, 10, 12, and 13 address obsolete provisions in statute and could be repealed with no policy effect.  Further, she advised that draft Bill 7 addresses a tax expenditure that, while not obsolete, has never actually been claimed by a taxpayer.  None of the bills are identified as having a fiscal impact.  Ms. van Mourik advised the committee that all five bills could be taken up by the Statutory Revision Committee so as to avoid counting against the Tax Expenditure Evaluation Interim Study Committee's five bill limit.



11:26:08 AM
Motion Send a letter to the Statutory Revision Committee asking that it draft, consider, and introduce legislation in line with this committee's draft Bills 6, 7, 10, 12, and 13.
Moved Court
Seconded Tate
Bockenfeld
Moreno
Snyder
Tate
Court
Benavidez
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection
11:26:09 AM  

Representative Benavidez, chair, explained that the committee would consider each of the remaining draft bills.  Because the committee was authorized to recommend only five bills to the Legislative Council, the committee would take votes on all bills and then entertain a motion to narrow the approved list of bills to five.  The committee invited Ms. van Mourik and Mr. Lively to briefly present each of the outstanding draft bills.  Ms. van Mourik and Mr. Lively provided brief summaries of each bill and responded to questions from committee members.  After each bill was presented and discussed, a vote was taken.



11:32:08 AM
Motion Recommend draft Bill 1 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno No
Snyder Yes
Tate No
Court Yes
Benavidez Yes
YES: 3   NO: 3   EXC: 0   ABS:  0   FINAL ACTION:  FAIL


11:34:10 AM
Motion Recommend draft Bill 2 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 5   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS


11:35:32 AM
Motion Recommend draft Bill 3 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 5   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS
11:38:26 AM  

The committee discussed whether addressing the tax expenditure contemplated in draft Bill 4 goes beyond the scope of the committee's charge, in that it may extend to licensing and not only taxation.



11:40:05 AM
Motion Recommend draft Bill 4 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


11:41:12 AM
Motion Recommend draft Bill 5 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 5   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS


11:44:04 AM
Motion Recommend draft Bill 8 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


11:46:21 AM
Motion Recommend draft Bill 9 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate No
Court Yes
Benavidez Yes
YES: 4   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS
11:50:06 AM  

Meredith Moon, representing Legislative Council Staff, testified regarding the fiscal impact of Amendment 1 to draft Bill 11. She presented her survey of hotels and motels, which found that these establishments generally do not require 30-day written agreements for long-term lodging, as contemplated in the current statute.



11:57:23 AM
Motion Amendment 1 to draft Bill 11
Moved Moreno
Seconded Tate
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate No
Court No
Benavidez Yes
YES: 4   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS


11:58:21 AM
Motion Recommend draft Bill 11, as amended, to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


12:00:11 PM
Motion Recommend draft Bill 14 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 5   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS
12:03:15 PM  

Larson Silbaugh, representing Legislative Council Staff, answered committee questions concerning the fiscal note for draft Bill 15.



12:13:14 PM
Motion Recommend draft Bill 15 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate No
Court Yes
Benavidez Yes
YES: 4   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS


12:19:02 PM
Motion Recommend draft Bill 16 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


12:25:18 PM
Motion Recommend draft Bill 17 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS


12:36:58 PM
Motion Recommend draft Bill 18 to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld Yes
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 6   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  PASS
12:38:32 PM  

The committee invited Loren Furman, representing the Colorado Chamber of Commerce, and Dianna Orf, representing the Colorado Mining Association, to testify regarding draft Bill 19. Ms. Orf testified that draft Bill 19 would impose a new burden on the claimant of the tax exemption by requiring the installation of a meter in all instances when the exemption is claimed. Ms. Furman testified that draft Bill 19 may make the tax exemption more complicated than the policy consideration identified by the Office of the State Auditor.



12:55:05 PM
Motion Amendment 1 to draft Bill 19
Moved Benavidez
Seconded Moreno
Bockenfeld
Moreno
Snyder
Tate
Court
Benavidez
YES: 0   NO: 0   EXC: 0   ABS:  0   FINAL ACTION:  Pass Without Objection


12:55:53 PM
Motion Recommend draft Bill 19, as amended, to the Legislative Council
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate Yes
Court Yes
Benavidez Yes
YES: 5   NO: 1   EXC: 0   ABS:  0   FINAL ACTION:  PASS
12:55:54 PM  

The committee took a recess.

01:02:00 PM  

The committee reconvened.  Representative Benavidez explained that the committee would now entertain a motion to narrow the preliminary list of approved draft bills to five, the maximum number that the committee was allowed to submit to the Legislative Council.



01:07:43 PM
Motion The five bills recommended by this committee to the Legislative Council be draft Bills 8, 11 as amended, 15, 18, and 19 as amended.
Moved Court
Seconded Snyder
Bockenfeld No
Moreno Yes
Snyder Yes
Tate No
Court Yes
Benavidez Yes
YES: 4   NO: 2   EXC: 0   ABS:  0   FINAL ACTION:  PASS
01:12:24 PM  

Ms. van Mourik advised the committee that Bill 11 ought to be introduced in the House of Representatives. The committee assigned the following sponsors for the draft bills advanced by the committee.

Bill 8: Senators Court and Tate, joint prime sponsors, and Senator Moreno, co-sponsor. Representatives Snyder and Benavidez, joint prime sponsors. The bill will originate in the Senate.

Bill 11: Representative Benavidez, prime sponsor, and Representative Snyder, co-sponsor. Senators Moreno and Court, joint prime sponsors. The bill will originate in the House of Representatives.

Bill 15: Representatives Benavidez and Snyder, joint prime sponsors. Senator Moreno, prime sponsor, and Senator Court, co-sponsor. The bill will originate in the House of Representatives.

Bill 18: Senators Court and Tate, joint prime sponsors, and Senator Moreno, co-sponsor. Representatives Benavidez and Bockenfeld, joint prime sponsors, and Representative Snyder, co-sponsor. The bill will originate in the Senate.

Bill 19: Representatives Benavidez and Snyder, joint prime sponsors. Senators Tate and Court, joint prime sponsors, and Senator Moreno, co-sponsor. The bill will originate in the House of Representatives.

01:22:24 PM  

Representative Benavidez, chair, thanked the committee members and staff for their work.


01:23:38 PM   The committee adjourned.