House Committee on Finance (05/02/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	05/02/2012	ATTENDANCE

Time:	01:37 PM to 04:02 PM	Acree	X
		Beezley	X
Place:	LSB A	Conti	X
		Holbert	X
This Meeting was called to order by		Hullinghorst	X
	Representative DelGrosso	Kagan	X
		Kefalas	X
This Report was prepared by		Labuda	X
	Ron Kirk	McCann	X
		Pabon	X
		Swalm	X
		Swerdfeger	X
		DelGrosso	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-166 Presentation by the Office of International Trade HB12-1357 SB12-164 HB12-1359		Amended, Referred to the Committee of the Whole Committee Discussion Referred to the Committee of the Whole Referred to Appropriations Amended, Referred to the Committee of the Whole

01:37 PM -- Senate Bill 12-166 - Concerning Economic Development Reports

Representative Priola and Representative Williams A., prime sponsors, presented Senate Bill 12-166 concerning the coordination of various economic development reports. Representative Priola began by saying that the bill requires the Office of Economic Development and International Trade (OEDIT) to annually submit a report to the General Assembly that describes the office's programs by November 1 of each year. The report must contain a review and summary of the activity, information, and data on all programs administered by OEDIT during the prior year. Representative Williams noted that the report must include regional economic development progress reports if House Bill 12-1154 is enacted; the business retention and expansion report if Senate Bill 12-005 is enacted; and the key industries strategy and key business plans report if Senate Bill 12-144 is enacted.

The committee discussed the issue of transparency given the tax incentives tied to many of the programs that are administered by OEDIT. Representative Kefalas stated that he supports the bill because it gives the General Assembly an opportunity to review and evaluate OEDIT before the legislative session starts.

The following person testified:

01:40 PM -- Ms. Jennifer Cassell, representing OEDIT, testified in support of the bill and distributed a handout on Senate Bill 12-166 (Attachment A). Ms. Cassell said that the bill will streamline reporting dates for its programs and enhance transparency of programs administered by OEDIT.


BILL:	SB12-166
TIME:	01:50:56 PM
MOVED:	Labuda
MOTION:	Moved Amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Holbert
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB12-166
TIME:	01:52:50 PM
MOVED:	Hullinghorst
MOTION:	Refer Senate Bill 12-166, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Kagan
		VOTE
	Acree	Yes
	Beezley	Excused
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

01:54 PM -- Presentation by the Office of International Trade

Representative DelGrosso welcomed the Office of International Trade and noted that state law requires the office to inform the finance committees and General Assembly about ongoing trade negotiations, developments, and impacts on Colorado's economy and laws.

Ms. Sandi Moilanen, representing the Colorado International Trade Office (ITO), began by distributing a handout to the committee on international trade developments (Attachment C) and level of economic activity tied to Colorado's trade with other countries. Ms. Moilanen noted that trade volume in 2011 grew by 5.0 percent which was a decline from 13.8 percent growth in the prior year.

Ms. Moilanen continued by saying that U.S. exports of merchandise goods, commodities, and agricultural products increased 16.0 percent in 2011 while Colorado's exports grew by 9.0 percent in the same time period.

The committee discussed export statistics for 2011 by trade sector. Ms. Moilanen noted that Canada was the largest trading partner in 2011 and that over 44,000 jobs in Colorado contributed to state exports. The discussion continued on beef exports and closed with statistics on foreign destinations. Ms. Moilanen closed by saying that the state exported products to 194 destinations in 2010 totaling over $7.3 billion in commodity activity.

02:14 PM -- House Bill 12-1357 - Concerning Unspent Money for Capital Construction Projects

Representative Brown, prime sponsor, explained the provisions of the bill. He noted that the bill was recommended by the Capital Development Committee (CDC), and said the bill makes provisions for the use of unspent moneys for capital construction projects financed in whole or in part through a 2008 issuance of certificates of participation (COPs).

The following persons testified:

02:16 PM -- Ms. Esther van Mourik, Office of Legislative Legal Services and Ms. Kori Donaldson, Legislative Council Staff, responded to committee questions.


BILL:	HB12-1357
TIME:	02:23:38 PM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1357 to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Hullinghorst
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Excused
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

02:27 PM -- Senate Bill 12-164 - Concerning Private Postsecondary Institutions

Representative Massey and Representative Todd, prime sponsors, presented Senate Bill 12-164. Representative Massey noted that the bill modifies and clarifies the way in which the state regulates private institutions of higher education, including for-profit proprietary schools, non-profit schools, career and technical colleges, and seminaries and religious training institutions. He noted that the bill substitutes the term "religious training institutions" for "bible colleges" where the latter occurs in statute.

Representative Todd continued by saying that the bill clarifies that private colleges that enroll the majority of their students in baccalaureate or postgraduate degree programs are to be regulated by the Colorado Commission on Higher Education (CCHE) and the Department of Higher Education (DHE). She noted that private colleges that enroll the majority of students at the certificate or associate level are regulated by the Division of Private Occupational Schools (DPOS) within the DHE.

The following persons testified:

02:32 PM -- Dr. Matt Gianneschi, Deputy Director, DHE, testified in support of the bill. He provided background information on the Degree Authorization Act, explaining that, in 1981, the General Assembly broke the act into two sections of statute and created the DPOS. He said DPOS oversees more than 300 institutions in the state. Dr. Gianneschi said the bill is intended to modernize state law around private postsecondary institutions. Dr. Gianneschi continued his explanation of each section of the bill, and responded to committee questions as he progressed through his explanation.

03:10 PM -- Mr. Norman Blome, representing Alta Colleges, testified in support of the bill. He expressed concern with the language around exceptions to the surety requirements.

03:14 PM -- Mr. Jerry Sirbu, representing Platte College, testified in support of the bill. He said the current Degree Authorization Act protects neither students nor schools. He said the bill provides a structure that colleges will need to comply with, which is beneficial for the colleges and provides protection for consumers. He expressed particular support for provisions around surety and student complaints. He also stated that the bill fills a gap in current law regarding student records from closed schools and regarding institution reporting. Mr. Sirbu spoke to issues around fees and funding.

03:22 PM -- Mr. Greg Dorman, representing the Department of Military and Veterans Affairs, testified in support of the bill.

03:29 PM -- Ms. Melanie Layton, representing the Apollo Group and the University of Phoenix, testified in support of the bill. She described the collaborative process in drafting the bill.


BILL:	SB12-164
TIME:	03:31:12 PM
MOVED:	Kefalas
MOTION:	Refer Senate Bill 12-164 to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Hullinghorst
		VOTE
	Acree	Yes
	Beezley	No
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

03:43 PM -- House Bill 12-1359 - Concerning an Internet Lottery

Representative Vaad, prime sponsor, noted that House Bill 12-1359 prohibits the Colorado Lottery Commission from promulgating rules that would authorize an internet lottery.

The following persons testified:

03:47 PM -- Mr. Chris Howes, representing the Colorado Retail Council, testified in support of the bill.

03:47 PM -- Mr. Jason Hopfer, representing the 7-11 and Circle K chains, testified in support of the bill.

03:52 PM -- Mr. Mark Grueskin, representing the Colorado Gaming Association, testified in support of the legislation.


BILL:	HB12-1359
TIME:	03:58:15 PM
MOVED:	DelGrosso
MOTION:	Moved Amendment L.004 (Attachment D). The motion passed without objection.
SECONDED:	Kagan
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB12-1359
TIME:	03:59:33 PM
MOVED:	Holbert
MOTION:	Refer House Bill 12-1359, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Kagan
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Excused
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

04:02 PM

The committee adjourned.