House Committee on Finance (02/15/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/15/2006	ATTENDANCE

Time:	01:40 PM to 03:30 PM	Benefield	X
		Cloer	X
Place:	HCR 0107	Crane	X
		Frangas	X
This Meeting was called to order by		Garcia	X
	Representative Vigil	Harvey	X
		Jahn	X
This Report was prepared by		Kerr	X
	Ron Kirk	Marshall	X
		Massey	X
		McCluskey	X
		Judd	X
		Vigil	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB06-1310 HB06-1201 HB06-1308		Amended, Referred to Appropriations Amended, Referred to Appropriations Referred to Appropriations

01:41 PM -- House Bill 06-1310 - Concerning State Purchases of Net Operating Losses From Bioscience Companies

Representative Buescher, prime sponsor, explained the background events that let to House Bill 06-1310. Representative Buescher commented that appropriations to programs supported by tobacco settlement moneys are dictated by statutory formulas and are based on a forecast of settlement payments. When actual settlement receipts become known, supplemental appropriations are required to make the appropriations correspond to the statutory formulas. Representative Buescher said that some of these supplementals are very small. For example, the negative supplemental for the Dental Loan Repayment Program is $36 for FY 2005-06. House Bill 06-1310 will eliminate supplemental adjustments for several small programs and reduce the likelihood of supplemental adjustments for several others.

Representative Buescher continued saying that in addition, many tobacco-settlement supported programs receive appropriations first to a program fund, then a second appropriation from the program fund to the program itself. House Bill 06-1310 will eliminate many of these "double" appropriations by allowing transfers from the Tobacco Litigation Settlement Cash Fund to the program funds. Representative Buescher distributed amendment L.002 (Attachment A) and a staff memorandum on the fiscal assessment of proposed amendment HB 1310_L.002 (Attachment B).

After a brief committee discussion, Representative Vigil, Chairman, put the bill on the table for action. Representative Judd moved amendment L.002 for discussion purposes and Representative Buescher explained that the amendment reverts the funding calculation for the Fitzsimons Trust Fund back to current law and in doing so, decreases the fiscal impact. The following motions were made.


BILL:	HB06-1310
TIME:	01:46:09 PM
MOVED:	Judd
MOTION:	Moved amendment L.002 (the amendment reverts the funding calculation for the Fitzsimons Trust Fund back to current law and in doing so, decreases the fiscal impact). The motion passed without objection by those members present.
SECONDED:	McCluskey
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1310
TIME:	01:48:26 PM
MOVED:	Jahn
MOTION:	Refer House Bill 06-1310, as amended, to the Committee on Appropriations. The motion passed on a 13-0-0 vote.
SECONDED:	Benefield
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	Yes
	Vigil	Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

01:51 PM -- House Bill 06-1201 - Concerning the Proportion of Gaming Revenues Designated for Tourism

Representative Plant and Representative White, prime sponsors, discussed the distribution of gaming revenue under current law. Representative Plant distributed a handout on the gaming revenue distribution (Attachment C) and amendment L.001 (Attachment D) to committee members. Representative White explained that under current law 49.8 percent of the funds available for distribution from the Limited Gaming Fund at the end of each fiscal year are transferred to the General Fund, and 0.2 percent are transferred to the Colorado Travel and Tourism Promotion Fund. He said that beginning with FY 2005-06, this bill changes the allocation so that the available funds are divided equally between the General Fund and the Colorado Travel and Tourism Promotion Fund.

Representative Plant commented on the return on investment for every state dollar invested in state tourism. In response, the committee discussed the money that would not be going to the HUTF should the legislation be adopted. The discussion continued as Representative Plant discussed the goals of the legislation as it relates to the state's investment in tourism.

The following persons testified:

02:13 PM -- Mr. Chuck Berry, Colorado Association of Commerce and Industry, testified in support of the bill and commented that Colorado needs to do a better job of promoting Colorado as a national tourism resource. This legislation is a good way to promote Colorado as it will add jobs to the Colorado economy and enhance sales tax revenues. Mr. Berry talked about the 1983 tourism tax and how it generated revenue for a limited number of years before it sunset after 5 years. Mr. Berry discussed the efforts of the General Assembly to fund tourism in the past and said that it was important to fund tourism because it generates a significant rate of return for the state. Mr. Berry closed by urging the committee to support the legislation.

02:19 PM -- Ms. Ilene Kamsler, Colorado Hotel and Lodging Association, testified in support of the legislation and commented on the legislation's ability to keep jobs in communities.

02:23 PM -- Mr. Pete Meeresman, Colorado Restaurant Association, testified in support of the legislation. Mr. Meeresman commented that Colorado is one of the top five tourism destinations in the country and concluded saying that House Bill 06-1201 will provide a permanent source of revenue for tourism.

02:30 PM -- Mr. Brian Vogt, Governor's Office of Economic Development and International Trade, testified in support of the legislation. Mr. Vogt commented that House Bill 06-1201 is an essential economic development tool that would add jobs to Colorado's economic and enhance many urban and rural economies in Colorado.

02:34 PM -- Mr. Mark Rodman, Colorado Preservation Inc., testified in support of the legislation.


BILL:	HB06-1201
TIME:	02:36:40 PM
MOVED:	McCluskey
MOTION:	Moved amendment L.001 (the amendment makes a technical change). The motion passed without objection by those members present.
SECONDED:	Judd
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1201
TIME:	02:37:58 PM
MOVED:	Jahn
MOTION:	Refer House Bill 06-1201, as amended, to the Committee on Appropriations. The motion passed on a 11-2-0 vote.
SECONDED:	Frangas
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	No
	Vigil	Yes
Not Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:47 PM -- House Bill 06-1308 - Concerning Net Operating Losses From Bioscience Companies

Representative Massey, prime sponsor, explained House Bill 06-1308 creates the Bioscience Net Operating Loss Purchase Cash Fund to be used by the Economic Development Commission (EDC) to effectively purchase future tax benefits from qualifying bioscience companies. Representative Massey commented that the bill allows the state to provide assistance to select bioscience companies in exchange for the company foregoing the carry-forward of net operating losses. The EDC would be appropriated at least $2.5 million annually for the next five fiscal years for this purpose and associated administrative costs. Representative Massey closed by saying that the Bioscience industry is one of the fastest-growing industries in the state that offers high-paying jobs and contributes to the state's economy.

02:51 PM -- Ms. Denise Brown, Colorado Bioscience Association, testified in support of the legislation and commented that there are over 400 Bioscience companies in Colorado. About 197 of these companies had net operating losses during the last two years and can benefit from this bill. Ms. Brown closed by commenting on a New Jersey program that provides between $60 and $80 million in annual assistance to Bioscience companies.

02:59 PM -- Mr. Ralph Christoffersen, Colorado Bioscience Association, testified in support of the bill and commented that as health care needs grow, the Bioscience industry will respond to consumer needs. Many of these companies take 10 before they become profitable and have a 10 percent chance of success. Mr. Christoffersen closed saying that this bill will over a cash payment for start-up companies that traditionally rely on venture capital funding.

03:07 PM -- Mr. Brian Vogt, Governor's Office of Economic Development and International Trade, testified in support of the legislation and said that the state needs to put more money into economic development. This bill provides an incentive for Bioscience companies in the start-up phase that need money for operating costs. The committee and Mr. Vogt discussed whether $2.5 million is enough money to attract new businesses to Colorado.

The committee continued the discussion on the distribution of money under the bill. Mr. Vogt commented that the growth potential for bioscience businesses is significant and is important to Colorado. Mr. Vogt closed by commenting on industry wealth creation and the growth potential that makes the industry ripe for tax advantages. After a brief committee discussion, Representative Vigil, prime sponsor, placed the bill on the table for action.


BILL:	HB06-1308
TIME:	03:29:04 PM
MOVED:	Massey
MOTION:	Refer House Bill 06-1308 to the Committee on Appropriations. The motion passed on a 10-3-0.
SECONDED:	Frangas
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	No
	Vigil	No
Not Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:30 PM

Adjourn.