Senate Committee on Finance (03/30/2006)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:	03/30/2006	ATTENDANCE

Time:	11:49 AM to 12:53 PM	Brophy	X
		Shaffer	X
Place:	SCR 354	Taylor	X
		Teck	*
This Meeting was called to order by		Tupa	*
	Senator Sandoval	Veiga	X
		Sandoval	X
This Report was prepared by
	Jason Schrock
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB06-218 HB06-1201		Amended, Referred to Appropriations Amended, Referred to Appropriations

11:49 AM -- Senate Bill 06-218

Senator Sandoval, chair, called the meeting to order. Senator Keller, prime sponsor, explained the provisions of SB 06-218 which provides for annual appropriations by the General Assembly from the Colorado Disabled Telephone Users Fund to replenish the Colorado Commission for the Deaf and Hard of Hearing Cash Fund.

The following people testified on the bill:

11:52 AM -- Mr. Ron Jack, Chief of Administration, Public Utilities Commission (PUC), spoke in support of the bill. He discussed the purpose of the bill and explained that the Commission needs more funds to provide its services. He stated that the bill would allow for an annual appropriation to the Commission each year, rather than the specific amount set in current law. He discussed the 6 cent surcharge on each land phone line and how it has been adjusted due to the changing fund balance of the Colorado Disabled Telephone Users Fund.

11:56 AM -- Ms. Mary McGhee, Department of Human Services, Division of Boards and Commissions, spoke in favor of the bill and indicated that the Colorado Commission for the Deaf and Hard of Hearing is one of the commissions under her division. She explained that the Commission needs additional funding for programs, including to provide telephone equipment for low income deaf and hard of hearing residents.

The committee discussed the source of funding for appropriations to the Commission. In addition to the $25,000 in annual appropriations provided by the land line surcharge, there was an additional lump sum of money provided when the Commission's programs were created. This money is beginning to run out. Ms. McGhee explained that the purpose of the bill was to replenish the Colorado Commission for the Deaf and Hard of Hearing Cash Fund.

Senator Keller closed by summarizing the bill and asking for the committee's support.


BILL:	SB06-218
TIME:	12:04:43 PM
MOVED:	Teck
MOTION:	Motion to adopt L.001 (Attachment A). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Shaffer
	Taylor
	Teck
	Tupa
	Veiga	Excused
	Sandoval
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB06-218
TIME:	12:05:03 PM
MOVED:	Teck
MOTION:	Motion to refer SB 06-218, as amended, to the Committee on Appropriations. The motion passed on a 6 - 0 vote.
SECONDED:
		VOTE
	Brophy	Yes
	Shaffer	Yes
	Taylor	Yes
	Teck	Yes
	Tupa	Yes
	Veiga	Excused
	Sandoval	Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:06 PM -- House Bill 06-1201

Senator Taylor, prime sponsor, explained the provisions of HB 06-1201 which changes the limited gaming revenue allocation so that after distribution to the Local Government Gaming Impact Fund, the remaining funds are divided as follows: 50 percent to the Tourism Promotion Fund, 5 percent to the State Council on the Arts, and 45 percent to the state General Fund. He commented that tourism funding has been a special project of his ever since he has been in the legislature. He also discussed the repeal of the tourism sales tax and the need for increased tourism funding. He explained amendment L.015, which would change the allocation of gaming revenue under the current bill (Attachment B).

The following people testified on the bill:

12:10 PM -- Mr. Brian Vogt, Office of Economic Development and International Trade (OEDIT), spoke in favor of the bill. He explained that increased funding for tourism was critical for the state and that tourism was an important component of the state's economic development strategy. He explained how tourism can have positive impacts in many areas of the state, including rural areas. He also discussed heritage tourism efforts by his office and its potential economic benefits.

12:13 PM -- Mr. Steve Turner, Historic Denver and Colorado Preservation Inc., spoke in favor of the bill. He explained that his organization is working with OEDIT to develop a statewide heritage tourism plan. He discussed the potential benefits of heritage tourism, which is the fasted growing segment of the tourism market. He stated that tourism needs constant funding in order to show returns to the tourism market.

12:15 PM -- Ms. Elaine Mariner, Colorado Council on the Arts, spoke in favor of the bill. She commented on the link between the arts and tourism and stated that the arts is economically important in all areas of state. She also explained that the Council on the Arts distributes competitive grants to benefit local communities.

Senator Teck commented that it is interesting that some legislators who are typically opposed to public support for private businesses are advocating increased public support for the tourism and arts industries.

12:19 PM -- Mr. Jim Clark, Fort Collins Convention and Visitors Center Bureau, spoke in favor of the bill. He commented on the significant return on investment that can be realized by the investment in tourism promotion.

12:21 PM -- Mr. Pete Meersman, Colorado Restaurant Association and Colorado Tourism Board, spoke in favor of the bill. He indicated that the state would receive $10 back in state taxes for every state dollar it uses to promote tourism. He explained that the state needs to increase its tourism market share and that the bill would help provide the funding needed for tourism promotion. He stated that the spending of advertising money would generate more revenue for the state.

12:23 PM -- Ms. Ilene Kamsler, Colorado Hotel and Lodging Association and the Tourism Industry Advisory Council, spoke in favor of the bill. She commented that the bill would help restore the loss of tourism funding that occurred due the repeal of the tourism sales tax. She also explained how individual communities and businesses in the state could benefit from a generic statewide marketing strategy.

Senator Isgar discussed the importance of tourism and tourism funding and the return on investment from tourism promotion.

Senator Brophy stated that other industries pay for their own advertising because it benefits them and wondered why the tourism industry needed state support. Senator Teck discussed the tourism sales tax and the fact that voters did not extend it. He wondered if the legislature may be circumventing the will of the people by increasing funding for tourism.

12:31 PM

Senator Taylor discussed the state's previous attempts to get the tourism industry to fund tourism promotion. He stated that the effort failed because it was hard to determine how much the various tourism-related businesses should contribute. He continued by distributing his analysis showing how tourism promotion would generate increased revenue for the state and for highways (Attachment C). He also discussed L.015 which would change the distribution of gaming revenue by providing some of the revenue to the state's film commission and for economic development incentives provided by the Colorado Economic Development Commission (Attachment B).

12:41 PM

Senator Taylor continued by discussing the bill's trigger that would divert gaming revenue back to the General Fund during economic downturns.

Senator Tupa stated that he was more inclined to support the bill after the passage of Referendum C because without Referendum C the state would likely just have had to refund extra revenue due to TABOR. He stated that the state may need to visit the policy again after the five year TABOR time out.


BILL:	HB06-1201
TIME:	12:44:35 PM
MOVED:	Taylor
MOTION:	Motion to adopt L.015 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Shaffer
	Taylor
	Teck
	Tupa
	Veiga	Excused
	Sandoval
Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection

The committee discussed amendment L.014 which would earmark some of the limited gaming revenue for the Cumbres and Toltec Railroad (Attachment D). Senator Brophy discussed the need for providing additional funding for the railroad. Senator Teck asked the chair to rule on whether the amendment fits under the title of the bill. Senator Sandoval ruled that the amendment fits under the title, explaining that she would allow the amendment because L.015 was not challenged.


BILL:	HB06-1201
TIME:	12:44:49 PM
MOVED:	Brophy
MOTION:	Motion to adopt L.014 (Attachment D). The motion failed on a 1 - 5 vote.
SECONDED:
		VOTE
	Brophy	Yes
	Shaffer	No
	Taylor	No
	Teck	No
	Tupa	No
	Veiga	Excused
	Sandoval	No
Not Final YES: 1 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB06-1201
TIME:	12:52:17 PM
MOVED:	Taylor
MOTION:	Motion to refer HB 06-1201, as amended, to the Committee on Appropriations. The motion passed on a 6 - 0 vote.
SECONDED:
		VOTE
	Brophy	Yes
	Shaffer	Yes
	Taylor	Yes
	Teck	Yes
	Tupa	Yes
	Veiga	Excused
	Sandoval	Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:53 PM

The committee recessed.