Subcommittee advances bill requiring tax-compliance certificates for state contracts over $250,000

The Capital Construction Subcommittee voted Feb. 27 to move House Bill 4016, as amended, to the full Ways and Means Committee with a due-pass recommendation.

The Legislative Fiscal Office told the committee the measure ‘‘requires businesses to obtain a certificate from the Department of Revenue stating that they are in compliance with the tax programs administered by DOR’’ for contracts valued above $250,000 and directs the Secretary of State to study whether the corporation division’s business registry can support tax compliance. LFO said the -A4 amendment would add $348,843 General Fund and $74,705 in other funds expenditure limitation to create five permanent full-time positions to implement the bill.

LFO recommended adoption of both the -A4 and the technical -A6 amendments; the committee adopted both without recorded dissent and then moved the bill to the full committee. A committee member moved adoption of the -A4 amendment and later the -A6 technical fix; the co-chair then moved the bill to the full committee with a due-pass recommendation.

Committee members discussed opposition and carriers for the bill. The transcript records members calling out opposition from some Representatives and Senators before the motion was declared passed. Carriers named for further consideration included Representative Nathanson in the House and Senator Frederick in the Senate.

The committee did not take a final floor vote on the underlying statute; the recorded actions on Feb. 27 were adoption of two amendments and referral of HB 4016, as amended, to the full Ways and Means Committee.