Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:03/19/2015
ATTENDANCE
Time:11:00 AM to 12:30 PM
Becker K.
*
Conti
X
Place:LSB A
Garnett
X
Pabon
X
This Meeting was called to order by
Priola
*
Representative Court
Roupe
*
Ryden
X
This Report was prepared by
Van Winkle
X
Katie Ruedebusch
Wilson
X
Foote
*
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB15-1158
HB15-1016		Amended, Referred to Appropriations
Amended, Referred to Appropriations


11:00 AM -- HB15-1158

Representative Court, chair, called the meeting to order. Representative DelGrosso, co-prime sponsor, introduced House Bill 15-1158. The bill creates a sales and use tax refund for equipment used in qualified data centers. The refund can be claimed for sales and use taxes paid on equipment like computers, cables, switches, climate control, power generation, and back-up power. The refund is available for sales and use taxes paid on equipment on or after January 1, 2016. The refund must be claimed between January 1 and April 1 in the year following the year when the sales taxes were paid. The maximum refund is $3 million per year, per taxpayer. In addition to the owner or operator of a data center, tenants making qualified purchases are also eligible to claim a refund. Representative DelGrosso discussed that Colorado might be overlooked when companies are looking for places to open data centers.

Representative Pabon, co-prime sponsor, spoke to the bill. He discussed data center tax benefits offered in other states. He distributed amendment L.002 (Attachment A). He noted that the amendment changes the sales and use refund to a sales and use exemption in the bill. Committee discussion ensued on data centers, tax refunds, and other Colorado tax exemptions.

15HouseFin0319AttachA.pdf15HouseFin0319AttachA.pdf











11:18 AM

Committee discussion on data centers continued.

11:28 AM -- Mr. Al Wenstrand, representing the Colorado Springs Regional Business Alliance, testified in support of the bill. He noted that good conditions exist for Colorado to house data centers and this bill would make Colorado more competitive.

11:42 AM -- Mr. Erik Mitisek, representing the Colorado Technology Association, testified in support of the bill. He discussed data centers and their value to Colorado's technology economy.

11:46 AM -- Mr. Marty Terek and Ms. Heidi Morgan, representing Black Hills Corporation, testified in support of the bill. Mr. Terek discussed how the bill benefits the state not only through increased property taxes, but also through increased corporate and individual income taxes. Ms. Morgan discussed how the bill furthers ideals of promoting science, technology, engineering, and mathematics (STEM) jobs in Colorado.

11:53 AM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in opposition to the bill. She noted that data centers choose locations based on power, telecom infastructure, geography, and climate, not tax benefits.

12:01 PM -- Mr. Larson Silbaugh, Legislative Council Staff, came to table to discuss the fiscal impact of amendment L.002.
BILL:HB15-1158
TIME: 12:03:37 PM
MOVED:Garnett
MOTION:Adopt amendment L.003 (Attachment B). The motion passed without objection.
15HouseFin0319AttachB.pdf15HouseFin0319AttachB.pdf
SECONDED:Pabon
VOTE
Becker K.
Conti
Garnett
Pabon
Priola
Roupe
Ryden
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection




BILL:HB15-1158
TIME: 12:06:03 PM
MOVED:Pabon
MOTION:Refer House Bill 15-1158, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-4.
SECONDED:Van Winkle
VOTE
Becker K.
No
Conti
Yes
Garnett
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Ryden
No
Van Winkle
Yes
Wilson
Yes
Foote
No
Court
No
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


12:13 PM -- HB15-1016

Representative Coram, sponsor, introduced House Bill 15-1016. House Bill 09-1129 established a 10-year pilot program for the collection of precipitation from rooftops for nonpotable uses. The program can include up to 10 new residential or mixed-use developments. This bill, recommended by the Water Resources Review Committee, changes the requirements for the program to encourage more applicants. He discussed how the bill differs from others before the General Assembly because this bill concerns a pilot program for multi-use, larger developments instead of single-family homes.

12:19 PM -- Ms. Joan Greene, representing the Water Rights Association of South Platte, came to table to discuss a proposed amendment regarding water courts.

12:23 PM -- Mr. Tom Browning, representing the Colorado Department of Natural Resources (DNR) and the Colorado Water Conservation Board, came to the table to discuss fees.

12:24 PM -- Ms. Clare Pramuk, Legislative Council Staff, came to the table to answer questions regarding the fiscal note. She noted that the DNR needs sufficient spending authority along with fees.
BILL:HB15-1016
TIME: 12:25:49 PM
MOVED:Court
MOTION:Adopt amendment L.008 (Attachment C). The motion passed without objection.
15HouseFin0319AttachC.pdf15HouseFin0319AttachC.pdf
SECONDED:Foote
VOTE
Becker K.
Conti
Garnett
Pabon
Priola
Roupe
Ryden
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection































BILL:HB15-1016
TIME: 12:27:45 PM
MOVED:Becker K.
MOTION:Refer House Bill 15-1016, as amended, to the Committee on Appropriations. The motion passed on a vote of 10-0.
SECONDED:Priola
VOTE
Becker K.
Yes
Conti
Yes
Garnett
Yes
Pabon
Excused
Priola
Yes
Roupe
Yes
Ryden
Yes
Van Winkle
Yes
Wilson
Yes
Foote
Yes
Court
Yes
Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS


12:30 PM

The committee adjourned.