House Committee on Finance (02/28/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/28/2013	ATTENDANCE

Time:	11:22 AM to 12:23 PM	DelGrosso	X
		Foote	X
Place:	LSB A	Joshi	X
		Kagan	X
This Meeting was called to order by		May	X
	Representative Court	Melton	*
		Pabon	*
This Report was prepared by		Priola	X
	Ron Kirk	Saine	X
		Swalm	X
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1234 HB13-1142		Referred to Appropriations Witness Testimony and/or Committee Discussion Only

11:22 AM -- House Bill 13-1234 - Concerning the Department of Agriculture's Office Consolidation

Representative Vigil and Representative Fischer, prime sponsors, explained the provisions of the bill. Representative Vigil began by saying that House Bill 13-1234 was recommended by the Capital Development Committee (CDC), the bill authorizes the State Treasurer to enter into lease-purchase agreements on behalf of the Department of Agriculture for a period of up to 20 years to purchase and renovate a new office building to house seven of the department's eight divisions. The bill also expands the allowable deposits to the Agriculture Management Cash Fund to include proceeds from the sale of a building which currently houses the department's Inspection and Consumer Services Division. Representative Fischer responded to committee questions about the lease-purchase agreements referenced in the bill.

The following person testified:

11:26 AM -- Mr. John Salazar, representing the Colorado Department of Agriculture, responded to committee questions regarding the bill.


BILL:	HB13-1234
TIME:	11:29:44 AM
MOVED:	Kagan
MOTION:	Refer House Bill 13-1234 to the Committee on Appropriations. The motion passed on a vote of 9-3.
SECONDED:	Melton
		VOTE
	DelGrosso	Yes
	Foote	Yes
	Joshi	No
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Excused
	Priola	Yes
	Saine	No
	Swalm	No
	Wilson	Yes
	Labuda	Yes
	Court	Yes

Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:32 AM -- House Bill 13-1142 - Concerning Enterprise Zone Tax Incentive Agreements

Representative Hullinghorst, prime sponsor, explained the provisions of the bill and the work of the Enterprise Zone Task Force to evaluate the Enterprise Zone Program's effectiveness in job creation and other policy goals. She began by saying that House Bill 13-1142 modifies four tax credit programs under the Urban and Rural Enterprise Zone Act, beginning with tax year 2014. Representative Hullinghorst continued by saying the bill limits the amount of the enterprise zone (EZ) investment tax credit that may be claimed to $1 million per tax year, and allows a taxpayer to appeal to the Colorado Economic Development Commission for a credit in excess of the $1 million limit.

The committee engaged in a discussion regarding the $500,000 cap on the 3 percent investment tax credit that was put in place by House Bill 10-1200. Staff was asked to respond to committee questions.

11:56 AM -- Mr. Louis Pino, Legislative Council Staff, responded to committee questions about the revenue impact in the fiscal note.

The committee engaged in a discussion on the calculations in the fiscal note and staff responded.

11:59 AM -- Mr. Ron Kirk, Economist, Legislative Council Staff, discussed the methodology used to calculate the revenue impacts resulting from the 2010 legislation. The factors that were considered were corporate levels of investment, corporate profits, and the condition of the economy as it began to grow after the economic recession that began in December 2007. The committee discussed the program. Mr. Ron Kirk distributed a memorandum (Attachment A) on tax incentives for business activities conducted in enterprise zones and explained how the incentives correlate to the business cycle. The committee discussed the provisions in the bill.

13HseFin0228AttachA.pdf

After a brief committee discussion, the committee began to hear testimony.

12:11 PM -- Mr. Will Hauptman, representing himself, testified in opposition to the bill.
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12:15 PM -- Mr. Cheng Wu, representing himself, testified in opposition to the bill.

Representative Court and the committee continued the discussion on whether the provisions of the bill met the intended goals of the sponsor. Representative Hullinghorst responded to additional committee questions regarding the $1 million cap in the bill for the 3 percent investment tax credit. After continued discussion by Representative Kagan, and Question of whether the cap in the bill accomplished the sponsor's intent, staff was asked to respond to technical drafting questions.

12:18 PM -- Ms. Esther van Mourik, Office of Legislative Legal Services, responded to committee questions. The committee discussed the intent of the bill. After committee discussion, Representative Court, Chair, laid over House Bill 13-1142 to March 13, 2013. Representative Court announced that testimony would continue at that time.

12:23 PM

The committee adjourned.