House Committee on Finance (02/13/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/13/2014	ATTENDANCE

Time:	11:04 AM to 12:44 PM	Becker	*
		DelGrosso	X
Place:	LSB A	Foote	X
		Joshi	X
This Meeting was called to order by		Kagan	*
	Representative Court	Melton	X
		Pabon	*
This Report was prepared by		Priola	X
	Matt Kiszka	Saine	X
		Swalm	X
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB14-1178 HB14-1159 HB14-1057		Referred to Appropriations Amended, Referred to Appropriations Referred to Appropriations

11:05 AM -- HB14-1178

Representative Court, Chair, called the meeting to order.

Representative Ferrandino, the Speaker of the House, and Representative DelGrosso, the Minority Leader, came to the table to present House Bill 14-1178. The Speaker explained that the bill creates a sales and use tax exemption for tangible personal property used in space flight starting in FY 2014-15 and the following four fiscal years. The bill includes a reporting requirement for the Department of Revenue to annually report to the House and Senate Finance Committees how many times the exemption is claimed. The Minority Leader explained that the bill would provide Colorado with a competitive edge in growth within the industry. The Speaker and Minority Leader responded to questions on the reduction to revenue listed in the bill's fiscal note.

11:10 AM -- Ali Mickelson, representing the Colorado Fiscal Institute (CFI), spoke against the bill. Ms. Mickelson distributed a summary on the CFI to the committee (Attachment A), and spoke to the reasons that CFI is against this sales and use tax exemption. Ms. Mickelson responded to questions on the size of the fiscal impact of the bill.

14HseFin0213AttachA.pdf

11:15 AM -- Brent Wilson, representing Digital Globe, spoke in favor of the bill. Mr. Wilson explained that Digital Globe has developed and moved its space flight property to other states that provide tax benefits to the industry, and stated that the bill would encourage the company to return to Colorado.

11:19 AM -- Loren Furman, representing the Colorado Association of Commerce and Industry, came to the table to speak in favor of the bill, detailing the benefits that the bill would bring to the space flight industry in Colorado. Mr. Wilson responded to questions on the fiscal impact of the bill and what it would mean to the development of the space flight industry in Colorado, the importance of the proposed tax credit to companies such as Digital Globe, and Colorado's pertinence to the space flight industry.

11:33 AM -- Patrick Boyle, representing the Colorado Competitive Council, spoke in favor of the bill.

11:34 AM -- Vicky Lea, representing the Colorado Space Coalition (CPC), spoke in favor of the bill. Ms. Lea stated that the goal of the CPC is to develop an environment where the space flight industry can thrive in Colorado. She told the committee that the space flight sector is the second-highest paid employment sector in Colorado, and that the industry is a large economic driver for the state. She added that five of the most-competitive states for the space economy had already passed legislation similar to HB14-1178.

11:39 AM -- Christie Lee, representing Lockheed Martin Space Systems Company, spoke in support of the bill. She stated that the bill will help grow the space industry in Colorado, and that the state economy stands to gain greatly in the future, should it pass.

11:41 AM -- Stacey DeFore, representing the Colorado Space Business Roundtable (CSBR), spoke in favor of the bill. Ms. DeFore told the committee that the bill will create competition and growth within the space flight industry.

11:44 AM -- Leah Curtsinger, representing the Denver South Economic Development Program, came to the table to submit a formal letter of support from the Denver South Economic Development Program to the committee (Attachment B).

14HseFin0213AttachB.pdf

11:46 AM -- Patrick Pratt, representing the South Metro Denver Chamber, spoke in favor of the bill. Mr. Pratt stated that he believed the bill would give Colorado a united voice in working with the space flight industry.


BILL:	HB14-1178
TIME:	11:49:08 AM
MOVED:	DelGrosso
MOTION:	Refer House Bill 14-1178 to the Committee on Appropriations. The motion passed on a vote of 13-0.
SECONDED:	Joshi
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:51 AM -- HB14-1159

Representative Young came to the table to present House Bill 14-1159, and stated that the bill creates a sales and use tax exemption for equipment used to capture biogas to be used as a renewable natural gas or the equipment used to turn biogas into electricity. Representative Young responded to questions on the fiscal impact of the bill, and the definition of biogas laid out in the bill.

11:56 AM -- Tom Hunt and Neal Kemkar, representing the Colorado Energy Office, spoke in support of the bill. Mr. Kemkar noted the organizations in addition to the Colorado Energy Office that were in support of the bill. Mr. Hunt stated that the bill would support energy production in Colorado, and provided the committee with an explanation of anaerobic digestion, stating that biogas is a natural by-product that is released as manure, food waste, and other organic compounds break down. He added that the bill fixes existing statute and includes anaerobic digestion within the definition of renewable energy. Mr. Hunt also spoke to the fiscal impact of the bill, claiming that it would be minimal.

12:04 PM

Representative Young distributed Amendment L.003 to the committee (Attachment C), which he explained adds a sunset date to the bill. The committee discussed the amendment.

14HseFin0213AttachC.pdf


BILL:	HB14-1159
TIME:	12:05:53 PM
MOVED:	Court
MOTION:	Adopt amendment L.003 (Attachment C). The motion passed on a vote of 7-6.
SECONDED:	Labuda
		VOTE
	Becker	Yes
	DelGrosso	No
	Foote	Yes
	Joshi	No
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB14-1159
TIME:	12:08:28 PM
MOVED:	Melton
MOTION:	Refer House Bill 14-1159, as amended, to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Priola
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:14 PM -- HB14-1057

Representative Navarro came to the table to present House Bill 14-1057. The Chair explained that the bill had been laid over from February 5, 2014, and that it was being considered for amendments and action only. Representative Navarro stated that she did not have any amendments to the bill as previously discussed in committee. She summarized the intent of the bill for members that were not present at the previous hearing of the bill. Representative Navarro responded to questions on the intent of the bill.

12:23 PM -- Rich Coolidge, representing the Secretary of State, came to the table to explain how the bill would affect the Secretary of State's charge for Universal Commercial Code filings and the Fraud Investigator's Unit surcharge. Committee discussion ensued.

12:29 PM -- Ralph Gagliardi, representing the Colorado Bureau of Investigation (CBI), came to the table to respond to questions. He explained the different funding sources of the CBI, and how the bill would benefit the CBI. Mr. Gagliardi responded to questions on CBI funding, and committee discussion ensued.

12:35 PM -- The committee discussed industry support for the bill and how the bill would be funded.


BILL:	HB14-1057
TIME:	12:37:01 PM
MOVED:	Court
MOTION:	Refer House Bill 14-1057 to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	DelGrosso
		VOTE
	Becker	Yes
	DelGrosso	Yes
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:44 PM

The committee adjourned.