House Committee on Finance (02/29/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/29/2012	ATTENDANCE

Time:	01:32 PM to 07:43 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:
HB12-1063 HB12-1162 HB12-1275 HB12-1241 HB12-1251 HB12-1260 HB12-1048 HB12-1286 HB12-1299		Referred to the Committee of the Whole Referred to Appropriations Referred to Appropriations Amended, Referred to the Committee of the Whole Postponed Indefinitely Postponed Indefinitely Referred to Appropriations Amended, Referred to Appropriations Amended, Referred to the Committee of the Whole

01:34 PM -- House Bill 12-1063 - Concerning the Homelake Veterans Center

Representative Ramirez, prime sponsor, explained that House Bill 12-1063 establishes the Homelake Military Veterans Cemetery, consisting of the existing cemetery at the Colorado State Veterans Center in Homelake and an additional, adjacent portion of the campus available for cemetery expansion. He noted that the Department of Human Services (DHS) is directed to maintain the cemetery, and authorized to use contractors to assist in any of these duties. Under the bill, the department must establish rules and a fee to reserve burial plots, with reservations open to all veterans and family members eligible for burial at the cemetery. Representative Ramirez closed by saying the cemetery is authorized to accept gifts, grants, and donations, as well as revenue from cemetery operations, to pay for operating costs and capital improvements at the cemetery.

The following persons testified:

01:38 PM -- Mr. Alex Schatz, Legislative Council Staff, responded to questions about the fiscal note and fee changes in the bill.

01:42 PM -- Ms. Viki Manley, Colorado Department of Human Services, responded to committee questions.


BILL:	HB12-1063
TIME:	01:44:00 PM
MOVED:	Conti
MOTION:	Refer House Bill 12-1063 to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Swerdfeger
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

01:47 PM -- House Bill 12-1162 - Concerning the Operation Desert Storm Special License Plate

Representative Todd, prime sponsor, explained that House Bill 12-1162 creates the Operation Desert Storm special license plate. She noted that the plate will be available to veterans who served in the U.S. Armed Forces between August 2, 1990, and February 28, 1991. Representative Todd said that in addition to the standard license plate fees, applicants will pay a one-time additional fee of $50.

The following persons testified:

01:52 PM -- Mr. Jay Corbett, representing himself, testified in support of the bill.

01:54 PM -- Mr. Nate Gorman, representing the United Veterans Committee of Colorado, testified in support of the legislation.

02:00 PM -- Mr. Mark Couch, Department of Revenue, responded to committee questions about special license plates.


BILL:	HB12-1162
TIME:	02:05:19 PM
MOVED:	McCann
MOTION:	Refer House Bill 12-1162 to the Committee on Appropriations. The motion passed on a vote of 12-1.
SECONDED:	Pabon
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	No
	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

02:09 PM -- House Bill 12-1275 - Concerning the Wildlife Sporting Special License Plate

Representative Pace, prime sponsor, explained that House Bill 12-1275 creates the Wildlife Sporting special license plate. He noted that the plate will be available to all applicants who pay a one-time additional fee of $60 and a $25 annual renewal fee. Representative Pace closed by saying the money from the special license plate would be used to fund grants to create or enhance shooting ranges, and for projects to improve fishing opportunities.
The following persons testified:

02:14 PM -- Mr. Jonathan Senft, Legislative Council Staff, responded to committee questions about the fiscal note.

02:17 PM -- Ms. Jen Boulton, Trout Unlimited and Audubon Society of Colorado, testified in support of the bill.


BILL:	HB12-1275
TIME:	02:20:52 PM
MOVED:	Hullinghorst
MOTION:	Refer House Bill 12-1275 to the Committee on Appropriations. The motion passed on a vote of 10-3.
SECONDED:	Pabon
		VOTE
	Acree	No
	Beezley	No
	Conti	Yes
	Holbert	No
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:24 PM -- House Bill 12-1241 - Concerning Enterprise Zone Designations (For Action Only)

(The House Finance Committee initially heard testimony, discussed this bill, and adopted Amendment L.002 (Attachment A) on February 22, 2012.)

Representative Ferrandino, prime sponsor, began by saying that in order to be designated as an enterprise zone under current law, the area under consideration must meet certain population restrictions and at least one of the following criteria:

an unemployment rate at least 25 percent above the state average for the most recent 12-month period;

a population growth rate less than 25 percent of the state average rate for the most recent 5-year period; or

per capita income less than 75 percent of the state average for the most recent period for which data is available.

Representative Ferrandino noted that House Bill 12-1241 requires any new enterprise zone designation to meet at least two of the above criteria. Furthermore, enterprise zone designations must be reviewed at least once every five years to ensure that the existing zones continue to meet those criteria.


BILL:	HB12-1241
TIME:	02:26:40 PM
MOVED:	Kefalas
MOTION:	Refer House Bill 12-1241, as amended, to the Committee of the Whole. The motion passed on a vote of 12-1.
SECONDED:	Kagan
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	Yes
	DelGrosso	Yes

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

02:33 PM -- House Bill 12-1251 - Concerning Modifications to the Three Percent Investment Tax Credit (For Action Only)

(The House Finance Committee initially heard testimony and discussed this bill on February 22, 2012.)

Representative Hullinghorst, prime sponsor, explained that House Bill 12-1251 continues current law's limitations on the amount of the investment tax credit that may be claimed for qualified investments in an enterprise zone. She noted that under the bill, a taxpayer may appeal the $500,000 limitation by applying to the Colorado Economic Development Commission to claim a credit in excess of the limit. Representative Hullinghorst closed by saying that an independent analysis may be requested by the commission and the commission may allow all, part, or none of the taxpayer's request to claim the credit in excess of the $500,000 limit. Representative Hullinghorst distributed an article on enterprise zones to the committee (Attachment B).


BILL:	HB12-1251
TIME:	02:38:54 PM
MOVED:	Kagan
MOTION:	Refer House Bill 12-1251, as amended, to the Committee on Appropriations. The motion failed on a vote of 6-7.
SECONDED:	Labuda
		VOTE
	Acree	No
	Beezley	No
	Conti	No
	Holbert	No
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	No
	DelGrosso	No

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


BILL:	HB12-1251
TIME:	02:47:09 PM
MOVED:	Acree
MOTION:	Moved to postpone House Bill 12-1251 indefinitely. The motion passed on a vote of 7-6.
SECONDED:	Swalm
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	No
	Kagan	No
	Kefalas	No
	Labuda	No
	McCann	No
	Pabon	No
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

02:47 PM -- House Bill 12-1260 - Concerning Modifications to Enterprise Zone Tax Credits (For Action Only)

(The House Finance Committee initially heard testimony and discussed this bill on February 22, 2012.)

Representative Labuda, prime sponsor, explained the provisions of the bill. She noted that for income tax years prior to January 1, 2013, the bill continues current limitations on the amount of the investment tax credit that may be claimed for qualified investments in an enterprise zone. Representative Labuda continued saying that under current law, a taxpayer can claim a state income tax credit equal to three percent of any qualified investment that is either acquired, placed into service, or constructed and used exclusively in an enterprise zone for the first year of ownership by the taxpayer. The credit is limited to the taxpayer's actual tax liability for the income tax year up to $5,000, plus 50 percent of any portion of the tax liability that exceeds $5,000 up to a maximum of $500,000. Representative Labuda distributed a handout on the investment tax credits approved in 2010 (Attachment C).


BILL:	HB12-1260
TIME:	02:48:19 PM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1260 to the Committee on Appropriations. The motion failed on a vote of 5-8.
SECONDED:	Hullinghorst
		VOTE
	Acree	No
	Beezley	No
	Conti	No
	Holbert	No
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	No
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	No
	DelGrosso	No

YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB12-1260
TIME:	02:51:32 PM
MOVED:	Swalm
MOTION:	Moved to postpone House Bill 12-1260 indefinitely. The motion passed on a vote of 8-5.
SECONDED:	Beezley
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	No
	Kagan	No
	Kefalas	Yes
	Labuda	No
	McCann	No
	Pabon	No
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:52 PM -- House Bill 12-1048 - Concerning Background Check Systems

Representative Waller, prime sponsor, explained that House Bill 12-1048 removes the requirement that the Colorado Bureau of Investigation (CBI) in the Department of Public Safety perform background checks for the transfer of firearms. Instead, a gun show vendor is required to contact the Federal Bureau of Investigation (FBI) to complete a background check and to verify a prospective owner's identity by checking his or her photo identification. He closed by saying that sheriffs offices are also directed to contact the FBI directly for background checks for individuals seeking concealed carry permits.

The committee engaged in a discussion about eliminating the requirement for CBI background checks under the legislation.

The following persons testified:

03:21 PM -- Mr. Ron Sloan, Colorado Bureau of Investigation, responded to committee questions about the legislation and testified in opposition of the bill.

03:36 PM -- Ms. Annemarie Jensen, representing the Colorado Association of Chiefs of Police, Colorado Coalition Against Domestic Violence, and Ceasefire Colorado, testified in opposition of the bill.

03:48 PM -- Mr. Robert Edmiston, representing the Firearms Coalition of Colorado, testified in support of the legislation.


BILL:	HB12-1048
TIME:	03:54:48 PM
MOVED:	Holbert
MOTION:	Refer House Bill 12-1048 to the Committee on Appropriations. The motion passed on a vote of 7-6.
SECONDED:	Swalm
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	No
	Kagan	No
	Kefalas	No
	Labuda	No
	McCann	No
	Pabon	No
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

04:10 PM -- House Bill 12-1286 - Concerning Film Incentives

Representative Massey and Representative Ferrandino, prime sponsors, discussed House Bill 12-1286. Representative Massey discussed the economic advantages of bringing more film production activities to Colorado. He continued by saying that the bill will allow Colorado to compete with other states for more movie production activities.

Representative Ferrandino explained that House Bill 12-1286 moves the Colorado Office of Film, Television, and Media (OFTM) from the Creative Industries Division to the Colorado Office of Economic Development and International Trade (OEDIT). He noted that the incentives in the bill are a good way to move forward with this type of policy that will provide a boost to the economy. A packet of information on the film industry was distributed to the committee by the sponsors (Attachment D).

The following persons testified:

04:19 PM -- Ms. Ali Greenberg, representing the Denver Film Society, and the film personnel from Saving Face, testified in support of the legislation. She noted that it is important to get the film industry to film movies in Colorado.

04:24 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Policy Institute, testified in opposition of the bill. She noted that this bill will take money from other state budgetary needs such as education and transportation. Ms. Mickelson closed by discussing the effect of film incentives in other states.

04:41PM -- Mr. Donald Zuckerman, Colorado Office of Film, Television & Media, testified in support of the bill. He noted that he was asked by the Governor for ways to bring more film production to Colorado. He noted that the grants in House Bill 12-1286 provide good incentives to the movie industry to make films in Colorado. Mr. Zuckerman discussed the film incentives offered by other states and noted that in order for Colorado to be competitive, it needs to offer more incentives to the film industry to have more movies filmed in Colorado.

The committee discussed the loan guarantee provisions in the bill that require the $3.0 million General Fund appropriation. Mr. Zuckerman discussed the loan program in the bill and how it is administered to the film industry.
05:28 PM -- Mr. Duke Hartman, representing High Noon Entertainment, testified in support of the bill. Mr. Hartman discussed the average salary of employees who work in the industry and the number of jobs that can be created through the bill. Mr. Hartman closed by discussing the effect of state tax incentives in terms of bringing the film industry to a state.

05:33 PM -- Mr. Jim Berger, representing High Noon Entertainment, testified in support of the legislation. Mr. Berger noted that states with a developed infrastructure like Colorado are attractive to the film industry.

05:39 PM -- Mr. Bill Myers, representing himself, testified in support of the bill. He noted that he has worked in the film industry for many years and Colorado is an ideal state to attract the film industry if it offers incentives. He closed by discussing the multiplier effect of the industry in terms of spending money in Colorado and the resulting return to the economy.

05:44 PM -- Mr. Frederic Lahey, Colorado Film School, testified in support of the bill.

05:51 PM -- Ms. Micki Hackenberger, representing the Entertainment Software Association, testified in support of the legislation and distributed a handout on the software industry (Attachment E).

05:55 PM -- Mr. Jim Phelan, representing the University of Colorado at Denver, testified in support of the legislation.

06:00 PM -- Ms. Diane Bullock, representing herself, testified in support of the legislation.


BILL:	HB12-1286
TIME:	06:03:11 PM
MOVED:	Hullinghorst
MOTION:	Moved Amendment L.003 (Attachment F). The motion passed without objection.
SECONDED:	Pabon
		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:	HB12-1286
TIME:	06:08:52 PM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1286, as amended, to the Committee on Appropriations. The motion passed on a vote of 8-5.
SECONDED:	McCann
		VOTE
	Acree	No
	Beezley	No
	Conti	Yes
	Holbert	No
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	Yes
	DelGrosso	No

Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

06:22 PM -- House Bill 12-1299 - Concerning the Innovative Motor Vehicle Tax Credit

Representative Singer, prime sponsor, explained that current law allows a company leasing a motor vehicle that is eligible for the innovative tax credit to decide whether to claim the credit themselves or to pass the credit on towards the consumer. Representative Singer closed by saying that House Bill 12-1299 specifies that the innovative motor vehicle tax credit can only be claimed by vehicle lessees.

The committee discussed the tax credit for alternative fuel vehicles.

The following persons testified:

06:38 PM -- Ms. Esther van Mourik, Office of Legislative Legal Services, responded to committee questions.

06:39 PM -- Mr. Paul Beck, representing himself, testified in support of the legislation. Mr. Beck explained his personal circumstance with the state innovative tax credit. Mr. Beck said that he leased a Toyota Prius from a local car dealership and was told that he could claim the state tax credit. After claiming the credit, it was disallowed by the Colorado Department of Revenue. Mr. Beck then discussed his experience with Toyota Financial Corporation of California, the company that claimed the credit as a lessee, and resulted in the disallowance of the state credit for himself. Mr. Beck closed by asking the committee to pass the legislation because it would clear up the confusion surrounding the issue of who can legally claim the state income tax credit.

06:47 PM -- Mr. Daniel Benjamin, representing himself, testified in support of the legislation.

06:53 PM -- Mr. Charles Gartrell, representing himself, testified in support of the legislation.

07:00 PM -- Mr. Ed Kmafelc, representing himself, testified in support of the legislation.

07:02 PM -- Ms. Mary Gonzales, representing herself, testified in support of the legislation.

07:10 PM -- Mr. Michael Maharas, representing himself, testified in support of the legislation.

07:19 PM -- Mr. Tim Jackson, representing the Colorado Auto Dealers Association, testified in support of the legislation. Mr. Jackson discussed the policies that the association takes in terms of the state tax credit.

07:22 PM -- Ms. Tammi McCoy, Colorado Auto Dealers Association, testified in support of the legislation and discussed the Department of Revenue's regulation on the state income tax credit.

The committee discussed the Colorado Department of Revenue regulation that allows financing companies to claim the tax credit rather than the lessee.


BILL:	HB12-1299
TIME:	07:40:17 PM
MOVED:	Pabon
MOTION:	Moved Amendment L.001 (Attachment G). 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:	HB12-1299
TIME:	07:41:05 PM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1299, as amended, to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Excused
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

07:43 PM

The committee adjourned.