BILL ANALYSIS



C.S.H.B. 49
By: McCall
April 17, 1995
Committee Report (Substituted)


BACKGROUND

Currently, Colorado allows local taxing entities to establish a
"property tax work-off program".  This program allows a person who
is sixty years or older to work for the taxing entity in lieu of
payment of a portion of their property taxes on their homestead. 
The reduction in taxes is based on the federal minimum wage.

PURPOSE

This bill would give school districts the authority to permit
individuals 65 or older to perform service for the district in lieu
of paying property taxes on their homestead.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 31, Tax Code, by adding Section 31.035
Performance of Service in Lieu of Payment of School Taxes on
Homestead of Elderly Person.

(a) By a resolution of the governing body, a school district may
allow individuals who are at least 65 years of age to perform
service for the district in lieu of paying taxes imposed by the
district on property owned and occupied as a residence homestead.

(b) The governing body of the school district will determine how
many property owners may qualify under this section and the maximum
number of hours of service they will be allowed to perform.

(c) Requires a contract between the property owner and the school
district be executed before the delinquency date and specifies the
content to be included in the contract.

(d) Provides that for each hour of service performed, the property
owner will receive a credit against taxes owed equal to the amount
that would be earned by working one hour at the federal hourly
minimum wage rate.

(e) Provides that if the property owner fails to perform the
service or if the district determines the service to be
unsatisfactory, the district shall terminate the contract.  If
unpaid taxes for which the property owner was to receive credit
become delinquent, penalty and interest will incur as provided for
by Section 33.01(c).

(f) Provides that while performing service for the school district,
the property owner is not an employee of the district and is not
entitled to any benefit, including workers' compensation coverage,
that the district provides to an employee of the district.

(g) Prevents school districts from terminating an existing employee
and replacing them with volunteers.

(h) Provides for liability protection for the school district.

SECTION 2.  Amends Section 16.302 (Allotment), Education Code, to
expand the definition of "DTR" for the purposes of the school
funding formula.  The sum of the taxes collected by the school
district shall include an amount equal to the tax credits earned
under Section 31.035, Tax Code (added by this Act).

SECTION 3.  Emergency clause


COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute specifies that the volunteer is not
entitled to workers' compensation coverage.  C.S.H.B. 49 also
contains provisions providing liability protection for the school
district and for job protection for existing employees.  The
original does not contain this language.

In addition, C.S.H.B. 49 expands the definition for "DTR" for
purposes of state funding.  DTR will now include tax credits
provided by Section 31.035 (Performance of Service in Lieu of
Payment of School Taxes on Homestead of Elderly Person).

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on February 21, 1995.  Representative McCall
explained the bill.  Without objection, H.B. 49 was referred to the
Subcommittee on Property Tax.

On April 6, 1995, the Subcommittee on Property Tax convened in a
formal meeting and considered H.B. 49.  The subcommittee considered
a complete substitute by Representative Horn.  Three amendments to
the substitute were offered by Representative Horn.  Without
objection, all three amendments were adopted and incorporated into
the substitute.  Without objection, C.S.H.B. 49 was adopted.  By a
record vote of 4 ayes, 0 nays, 0 present not voting and 1 absent,
the subcommittee voted to report H.B. 49 to the full committee as
substituted with the recommendation that it do pass.

On April 11, 1995, the committee met in a public hearing and
considered H.B. 49 on subcommittee report.  The committee
considered a committee substitute by Representative Horn.  Without
objection, C.S.H.B. 49 was adopted.  By a record vote of 9 ayes, 0
nays, 0 present not voting and 2 absent, the committee voted to
report H.B. 49 to the House as substituted with the recommendation
that it be sent to the Local and Consent Calendar and that it do
pass.


     Testimony received in favor of the bill (2-21-95):

           Elizabeth Little, representing herself
           Thomas V. Perkins, representing himself
           John W. Holtermann, representing himself and the Texas
Silver Haired         Legislature
           Phill Parmer, representing the Texas Silver Haired
Legislature