Bill Summary for Bill Number HB12-1056

Date: 02/15/2012

Final
BILL SUMMARY for HB12-1056

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Moved amendment L.002 (Attachment C). The motion p Moved amendment L.003 (Attachment D). The motion f Moved to refer House Bill 12-1056, as amended, to	Pass Without Objection FAIL PASS

11:07 AM -- House Bill 12-1056

Representative A. Kerr, prime sponsor, presented House Bill 12-1056, concerning regional tourism project application requirements under the "Colorado Regional Tourism Act," which was created under Senate Bill 09-173. Representative A. Kerr explained that the bill modifies the review process for regional tourism project applications by a third-party analyst. Under current law, the Economic Development Commission (EDC) reviews proposals for regional tourism projects after the completion of an economic report by a third-party analyst. The bill would require third-party analysts to assess assumptions used to derive tourism revenue projections, calculate an anticipated sales tax increment attributable to the project, calculate portions of the increment to be allocated in a multi-party application, and assess the probability of the project without the use of tax increment financing (TIF). The bill would also provide that applicants would no longer pay for the third-party analyst report directly, but the Office of State Planning and Budgeting (OSPB) would collect an application fee, which would include the amount to reimburse the third-party analyst.

Committee members received prepared amendments L.001 (Attachment B), L.002 (Attachment C), and L.003 (Attachment D). Representative A. Kerr discussed prepared amendment L.003, which amends the bill to reduce the amount of the application fee for regional tourism projects. Representative A. Kerr responded to questions from the committee concerning the impact of the bill on state tourism projects and out-of-state tourism.

11:21 AM

Patricia Silverstein, President, Development Research Partners, testified against the bill and talked about the importance of tourism in Colorado. Ms. Silverstein discussed the tourism market in Colorado, talked about the negative impact that House Bill 12-1056 would have on in-state tourism, and talked about the importance of attracting in-state tourism as well as out-of-state tourism. Ms. Silverstein responded to questions from the committee concerning the future of the tourism market in Colorado, and discussed pending tourism projects throughout the state.

11:35 AM

Terrence Quinn, representing Douglas County, testified against the bill, discussed a pending tourism project in Douglas County that was submitted to the EDC to receive regional tourism designation and be included in the TIF calculation. He explained that the changes under House Bill 12-1056 would damage pending projects submitted to the EDC under the original requirements provided under Senate Bill 09-173. Mr. Quinn discussed the current application process for regional tourism projects and responded to questions from the committee concerning the new requirements of the bill on pending tourism projects.

11:44 AM

Linda Cassaday, Deputy City Manager, City of Glendale, testified against the bill, talked about a pending tourism project submitted to the EDC by the City of Glendale, and discussed the restrictions that House Bill 12-1056 would put on local tourism dollars and pending regional tourism projects. Ms. Cassaday responded to questions from the committee and explained how tourism projects involving TIF are currently shared among local governments. She also discussed how the bill could damage the relationship between the state and local governments if the amount of TIF funding is not divided fairly among multiple local governments.

11:54 AM

Amy Sherman, representing the Northwest Douglas County Economic Development Corporation, testified against the bill, talked about a pending tourism project in Douglas County, and discussed the impact to current project applications that could occur as a result of House Bill 12-1056.

11:55 AM

Ken Lund, Executive Director, Office of Economic Development and Trade (OEDIT), testified in support of the bill, talked about the legislative intent of Senate Bill 09-173, and explained that House Bill 12-1056 was necessary in order to align statutory language concerning regional tourism projects. Director Lund discussed the importance of tourism in the state, explained that the bill would not impact pending applicants to the EDC for regional tourism projects, and addressed questions from the committee concerning the annual budget for regional tourism projects. Committee discussion ensued concerning the annual allocation for regional tourism projects, and the number of projects awarded each year.

12:17 PM

Erick Scheminske, Deputy Director, OSPB, testified in support of the bill and talked about problems with the current requirement for a third-party analyst's report on an application for a regional tourism project. Mr. Scheminske discussed the role of a third-party analyst to assess TIF funding for regional tourism project applications, and explained the process under the bill to authorize OSPB to select and reimburse an analyst. Mr. Scheminske addressed questions from the committee concerning pending applications and explained how the new rules for the third-party analysts, under the House Bill 12-1056, would only apply to future applications.

12:34 PM

Christine O'Donnell, President, Colorado Hotel and Lodging Association, testified in support of the bill, discussed the importance of tourism to Colorado, and talked about important regional projects that have applied to the EDC.

12:40 PM

Representative A. Kerr entered closing comments on the bill and explained prepared amendments L.002 (Attachment C) and L.003 (Attachment D). Committee discussion ensued concerning the prepared amendments.


BILL:	HB12-1056
TIME:	12:43:00 PM
MOVED:	Labuda
MOTION:	Moved amendment L.002 (Attachment C). The motion passed without objection.
SECONDED:	Lee
		VOTE
	Conti
	Fields
	Gardner B.
	Kerr J.
	Labuda
	Lee
	Pace
	Soper
	Swerdfeger
	Balmer
	Szabo

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1056
TIME:	12:43:47 PM
MOVED:	Lee
MOTION:	Moved amendment L.003 (Attachment D). The motion failed on a vote of 5-6.
SECONDED:	Labuda
		VOTE
	Conti	No
	Fields	Yes
	Gardner B.	No
	Kerr J.	No
	Labuda	Yes
	Lee	Yes
	Pace	Yes
	Soper	Yes
	Swerdfeger	No
	Balmer	No
	Szabo	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1056
TIME:	12:46:54 PM
MOVED:	Gardner B.
MOTION:	Moved to refer House Bill 12-1056, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:	Pace
		VOTE
	Conti	No
	Fields	Yes
	Gardner B.	Yes
	Kerr J.	Yes
	Labuda	Yes
	Lee	Yes
	Pace	Yes
	Soper	Yes
	Swerdfeger	Yes
	Balmer	No
	Szabo	Yes

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS