Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:04/23/2014
ATTENDANCE
Time:02:26 PM to 10:16 PM
Becker
X
DelGrosso
X
Place:LSB A
Foote
*
Joshi
X
This Meeting was called to order by
Kagan
X
Representative Court
Melton
*
Pabon
*
This Report was prepared by
Priola
*
Matt Kiszka
Saine
*
Swalm
X
Wilson
X
Labuda
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB14-151
HB14-1360
HB14-1374
HB14-1375		Referred to Appropriations
Amended, Referred to Appropriations
Witness Testimony and/or Committee Discussion Only
Amended, Referred to the Committee of the Whole


02:28 PM -- SB14-151

Representative Young came to the table to introduce Senate Bill 14-151. He explained that fines levied on nursing facilities are used to provide nursing home innovation grants, and that this bill modifies how this fine revenue may be used and makes numerous changes to the Nursing Home Innovation Grant Program, by:

02:30 PM -- Paul Phillips, representing the Cultural Change Board, spoke in favor of the bill. He stated that it has become nearly impossible for the board to complete projects in time and that the bill will simplify the process of awarding grants. He responded to questions on how funds can be distributed and how the bill will alleviate issues with the distribution of grants.
BILL:SB14-151
TIME: 02:39:18 PM
MOVED:Court
MOTION:Refer Senate Bill 14-151 to the Committee on Appropriations. The motion passed on a vote of 9-0, with 2 members absent and 2 members excused.
SECONDED:Kagan
VOTE
Becker
Yes
DelGrosso
Yes
Foote
Absent
Joshi
Yes
Kagan
Yes
Melton
Yes
Pabon
Absent
Priola
Excused
Saine
Excused
Swalm
Yes
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 9 NO: 0 EXC: 2 ABS: 2 FINAL ACTION: PASS


02:40 PM -- HB14-1360

Representative Young next presented House Bill 14-1360. He explained that the bill continues the regulation of home care agencies and home care placement agencies until September 1, 2019, and implements the recommendations contained in the Department of Regulatory Agencies' sunset report, as modified by the House Public Health Care and Human Services Committee. He responded to questions on the license fee increases required by the bill.


02:44 PM

Dave DeNovellis, Legislative Council Staff, came to the table to speak to the fee increases levied by the bill.










02:47 PM

Amendment L.007 (Attachment A) was distributed to the committee and Christy Chase, Office of Legislative Legal Services, came to the table to explain the amendment. She said that the amendment adds crimes that would disqualify individuals from being able to receive a license to work in a home care agency. She responded to questions on the amendment.

14HseFin0423AttachA.pdf14HseFin0423AttachA.pdf
BILL:HB14-1360
TIME: 02:50:48 PM
MOVED:DelGrosso
MOTION:Adopt amendment L.007 (Attachment A). The motion passed without objection.
SECONDED:
VOTE
Becker
DelGrosso
Foote
Absent
Joshi
Kagan
Melton
Pabon
Absent
Priola
Excused
Saine
Excused
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 2 ABS: 2 FINAL ACTION: Pass Without Objection
BILL:HB14-1360
TIME: 02:51:43 PM
MOVED:Court
MOTION:Refer House Bill 14-1360, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-0, with 2 members absent and 2 members excused.
SECONDED:Kagan
VOTE
Becker
Yes
DelGrosso
Yes
Foote
Absent
Joshi
Yes
Kagan
Yes
Melton
Yes
Pabon
Absent
Priola
Excused
Saine
Excused
Swalm
Yes
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 9 NO: 0 EXC: 2 ABS: 2 FINAL ACTION: PASS


02:52 PM -- HB14-1374

Representative Holbert came to the table to present House Bill 14-1374, and explained that it creates a sales and use tax exemption for aircraft owned by on-demand air carriers headquartered in Colorado, not registered in the state, and used in interstate commerce. On-demand air carriers operate aircraft of fewer than 60 seats or have a maximum payload of 18,000 pounds, and may conduct passenger, cargo, and mail service in air transportation between any points and at any rates or fares.

Amendment L.001 (Attachment B) was distributed to the committee. Representative Holbert explained that there was a drafting error in the original bill that is addressed by the amendment.

14HseFin0423AttachB.pdf14HseFin0423AttachB.pdf

Representative Kraft-Tharp further explained the bill and the amendment. The representatives responded to questions on the amendment, the fiscal note for the bill, and whether the tax exemption will be effective in attracting businesses to Colorado.










03:10 PM

The representatives responded to questions on which types of aircraft qualify for the tax exemption.

03:12 PM -- Robert Olislagers, representing Centennial Airport, spoke in favor for the bill. He stated that the bill provides a tax exemption for on-demand charter companies that only keep their aircraft in Colorado on a temporary basis. He responded to questions on the types of aircraft that qualify for the tax exemption under the bill, why registration of an aircraft is a requirement of the bill, and whether purchasers of planes could avoid sales and use tax by taking the plane to another state. Committee discussion ensued.

 03:31 PM -- Dennis McCall, representing Air Methods, spoke in favor of the bill. His written testimony was distributed to the committee, along with written testimony from a constituent provided by Representative DelGrosso (Attachment C). Mr. McCall stated that if an aircraft is used in Colorado, the tax exemption would not apply. He said the bill would allow on-demand air carriers to purchase planes to be used in other states and receive a sales and use tax exemption in Colorado. He responded to questions on how long an aircraft would typically be stored in Colorado if it was to be used elsewhere.

14HseFin0423AttachC.pdf14HseFin0423AttachC.pdf

03:35 PM -- Patrick Pratt, representing the South Metro Denver Chamber, spoke in favor of the bill. He stated that the bill will help create jobs in Colorado.


03:37 PM

The bill was laid over to April 24, 2014.


03:38 PM -- HB14-1375

Representative DelGrosso came to the table to present House Bill 14-1375. He explained that the bill amends statutes governing the exercise of urban renewal authority by municipalities. The bill:
Representative DelGrosso spoke to amendments he was planning on introducing to address concerns raised by municipalities in regards to the bill. These amendments would extend the implementation date for the bill and further clarify that the bill is only targeting increment tax revenue. He responded to questions on changes made to existing statute by the bill, the equality of tax revenue contributions by cities and counties under the bill, a potential drafting error surrounding county commissioner appointments to URAs, whether the bill could result in fewer URA projects, and the growth of TIF in Colorado since its inception.










03:59 PM

Committee discussion of the interplay between tax revenue, TIF, and the provision of services by different municipalities ensued.

04:12 PM -- Mayor Marc Williams, representing the City of Arvada, spoke against the bill. Several handouts were distributed to the committee (Attachments D, E, and F). He responded to questions on cities use of their sales tax revenue and TIF and how the bill might affect this.

14HseFin0423AttachD.pdf14HseFin0423AttachD.pdf 14HseFin0423AttachE.pdf14HseFin0423AttachE.pdf

14HseFin0423AttachF.pdf14HseFin0423AttachF.pdf

04:23 PM -- Mayor Tom Norton, representing the City of Greeley, spoke against the bill and how it would impact cities in Colorado. He responded to questions on the negotiations between different municipalities involved in a URA and how past URA projects that his city has been involved in have been managed.

04:31 PM -- Mayor Bob Murphy, representing the City of Lakewood, spoke in opposition to the bill and discussed the complexity of urban renewal projects. He responded to questions on sales tax revenue collected by the city of Lakewood, how different municipalities benefit at differing levels from URA projects, the amount of investment that cities make in URA projects and the services that they provide, and whether schools can benefit from urban renewal projects.

04:46 PM -- Mayor Herb Atchison, representing the city of Westminster, spoke against the bill. He spoke to the investments made by cities in URA projects, how these benefit municipalities as a whole, and stated that the statutory changes made by the bill would have prevented the Westminster Mall from being developed. He responded to questions on what percentage of sales tax revenue and property tax revenue are currently allocated to projects and the different sources of TIF revenue.

05:00 PM -- Mayor Marc Snyder, representing the city of Manitou Springs, spoke against the bill. He spoke to how Manitou Springs' URA has developed the city and the ways the bill could negatively impact this development. He responded to questions on the financing of the city's URA.

05:08 PM -- Sam Sharp, representing D.A. Davidson and Company, spoke against the bill. He responded to questions on the bill. Committee discussion of how the bill will affect URAs ensued.

05:21 PM -- Michael Hyman, representing the City of Aurora and the Aurora Urban Renewal Authority, spoke in opposition to the bill. He detailed the ways in which the bill would harm cities in Colorado and responded to questions on specific urban redevelopment projects in Aurora. Committee discussion ensued.

05:44 PM -- Dr. Jane Urschel, representing the Colorado Association of School Boards, spoke in favor of the bill. Dr. Urshel stated that the bill would have a positive impact on school districts. She responded to questions.







05:48 PM -- Rick Klein, representing La Junta Urban Renewal Authority, spoke against the bill.

05:51 PM -- Corbin Sakdol, representing the Arapahoe County Assessor and the Colorado Assessors' Association, spoke in support of the bill. He responded to questions on whether the bill will simplify the complexity of calculating TIFs.

05:57 PM -- Jim Rees, representing the Colorado Springs Urban Renewal Authority, spoke against the bill. He responded to questions on URA projects in Colorado Springs that would not happen today if the bill was passed. Committee discussion ensued.

06:06 PM -- Mike Beckstead, representing the City of Fort Collins, spoke in opposition to the bill. He stated that he believed the committee should be having a cost of service discussion surrounding the bill. He responded to questions on whether the bill would affect the City of Fort Collins.

06:20 PM -- Nick Kanner, representing himself, spoke from a neutral position on the bill. He debated the merits of the bill in relation to TIF and URAs.

06:25 PM -- Chuck Line, representing the City of Glendale, spoke against the bill. He responded to questions from the committee on URA criteria.

06:35 PM -- Roger Tinklenberg, representing the Commerce City Urban Renewal Authority, spoke against the bill. He distributed written testimony to the committee (Attachment G).

14HseFin0423AttachG.pdf14HseFin0423AttachG.pdf

06:41 PM -- Evan Goulding, representing the Special District Association of Colorado, spoke in favor of the bill. He distributed a handout from the National Association of Counties (Attachment H).

14HseFin0423AttachH.pdf14HseFin0423AttachH.pdf

06:50 PM -- April Getchins, representing the Town of Timnath and Timnath Development Authority, spoke against the bill.

06:56 PM -- Anne Ricker, representing Ricker Cunningham, spoke in opposition to the bill. She responded to questions from the committee.

07:12 PM -- Carolynne White, representing many entities, spoke in opposition to the bill. She responded to questions.

07:31 PM -- Dan Qualman, representing South Metro Fire Rescue Authority, spoke as a proponent of the bill.









07:35 PM -- John Hall, representing the Town of Parker, spoke in opposition to the bill.

07:39 PM -- Eric Sutherland, representing himself, spoke to the bill and TIF.

07:46 PM -- Mel Hilgenberg, representing the Radical Center, spoke in favor of the bill.

07:49 PM -- Nancy Sharpe, representing Arapahoe County, spoke in favor of the bill. She responded to questions from the committee.

08:07 PM -- Kathie Barstnar, representing NAIOP Colorado, spoke in opposition to the bill.

08:10 PM -- Sallie Clark, representing El Paso County, spoke in favor of the bill. She responded to questions.

08:21 PM -- Linda Hoffmann, representing Larimer County, spoke in support of the bill. She addressed a question from the committee.

08:27 PM -- Tom Donnelly, representing Larimer County, spoke in favor of the bill. He distributed a letter from a developer (Attachment I), and a chart on the growth of the use of TIF in Colorado (Attachment J). He responded to questions from the committee.

14HseFin0423AttachI.pdf14HseFin0423AttachI.pdf 14HseFin0423AttachJ.pdf14HseFin0423AttachJ.pdf

08:41 PM -- Cindy Domenico, representing Boulder County, spoke in support of the bill.


08:47 PM

Representative DelGrosso distributed a number of letters from county commissioners stating their support of the bill (Attachment K). A letter from the American Planning Association Colorado Chapter was also distributed (Attachment L).

14HseFin0423AttachK.pdf14HseFin0423AttachK.pdf 14HseFin0423AttachL.pdf14HseFin0423AttachL.pdf

08:48 PM -- Sean Conway, representing Weld County, spoke in favor of the bill. He responded to questions from the committee.

09:05 PM -- Rod Bockenfeld, representing Arapahoe County, spoke in support of the bill. Mr. Bockenfeld responded to questions.

09:21 PM -- Mark Heller, representing the City of Thornton, spoke against the bill. He responded to questions.








09:30 PM

Representative DelGrosso distributed Amendment L.002 (Attachment M) and explained that it incorporates language into the bill ensuring it only addresses increment tax revenue.

14HseFin0423AttachM.pdf14HseFin0423AttachM.pdf
BILL:HB14-1375
TIME: 09:30:44 PM
MOVED:DelGrosso
MOTION:Adopt amendment L.002 (Attachment M). The motion passed without objection.
SECONDED:Swalm
VOTE
Becker
DelGrosso
Foote
Joshi
Kagan
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection





















09:31 PM

Representative DelGrosso distributed Amendment L.004 (Attachment N), and explained that it pushes the bill's implementation date out to January 1, 2015.

14HseFin0423AttachN.pdf14HseFin0423AttachN.pdf
BILL:HB14-1375
TIME: 09:33:37 PM
MOVED:DelGrosso
MOTION:Adopt amendment L.004 (Attachment N). The motion passed without objection.
SECONDED:Court
VOTE
Becker
DelGrosso
Foote
Joshi
Kagan
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection





















09:32 PM

Representative Wilson distributed Amendment L.006 (Attachment O), and explained that it provides representation for school districts under the bill. Representative Court distributed Amendment L.001 (Attachment P), and explained that it provides representation for special districts under the bill. The committee discussed the merits of the amendments.

14HseFin0423AttachO.pdf14HseFin0423AttachO.pdf 14HseFin0423AttachP.pdf14HseFin0423AttachP.pdf
BILL:HB14-1375
TIME: 09:45:49 PM
MOVED:Wilson
MOTION:Adopt amendment L.006 (Attachment O). The motion failed on a vote of 4-9.
SECONDED:Swalm
VOTE
Becker
No
DelGrosso
No
Foote
No
Joshi
Yes
Kagan
No
Melton
No
Pabon
No
Priola
No
Saine
No
Swalm
No
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 4 NO: 9 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB14-1375
TIME: 09:45:56 PM
MOVED:Court
MOTION:Adopt amendment L.001 (Attachment P). The motion failed on a vote of 3-10.
SECONDED:Labuda
VOTE
Becker
No
DelGrosso
No
Foote
No
Joshi
No
Kagan
No
Melton
No
Pabon
No
Priola
No
Saine
No
Swalm
No
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 3 NO: 10 EXC: 0 ABS: 0 FINAL ACTION: FAIL
































09:46 PM

The committee discussed the merits of the bill and Representative DelGrosso made his closing comments.
BILL:HB14-1375
TIME: 10:13:21 PM
MOVED:DelGrosso
MOTION:Refer House Bill 14-1375, as amended, to the Committee of the Whole. The motion passed on a vote of 8-5.
SECONDED:Swalm
VOTE
Becker
Yes
DelGrosso
Yes
Foote
No
Joshi
Yes
Kagan
No
Melton
Yes
Pabon
No
Priola
No
Saine
No
Swalm
Yes
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:16 PM

The committee adjourned.