Senate Committee on Finance (04/28/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:	04/28/2009	ATTENDANCE

Time:	03:11 PM to 05:37 PM	Brophy	X
		Heath	*
Place:	SCR 354	Isgar	X
		King K.	*
This Meeting was called to order by		Scheffel	X
	Senator Sandoval	Hudak	*
		Sandoval	X
This Report was prepared by
	Elizabeth Hanson
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Conf 09-Colorado Housing & Finance Authority Board HB09-1288 HB09-1105 SB09-297		Favorably Refer to the Full Senate Amended, Laid Over Referred to Appropriations Amended, Referred to Appropriations

03:12 PM -- Confirmation to the Colorado Housing and Finance Authority Board of Directors

Mr. Joel S. Rosenstein, Mr. David J. Myler, Ms. Anita Padilla-Fitzgerald, Mr. James M. Hahn, and Mr. John A. Blumberg, appointees to the Colorado Housing and Finance Authority (CHFA) Board of Directors, provided their background and interest in serving on the board. Copies of the appointees' applications and resumes are included as Attachment A.

Attachment A can be viewed at State Archives.

Mr. Myler began by discussing his experiences as an attorney and in the private sector in the housing area. Mr. Hahn explained his background in real estate finance and investment banking. Mr. John Blumberg discussed his experiences in housing finance and the private sector. He also shared his views about the economic environment facing CHFA in the future. Ms. Padilla-Fitzgerald provided her background in the private sector and interest in serving on CHFA's Board. Finally, Mr. Rosenstein discussed his experiences as an attorney and in the private sector where he began a small bank.

The panel responded to questions from the committee about the passage of Senate Bill 09-067, which impacts the CHFA Board. The committee also discussed the challenging economic environment for the housing industry.


BILL:	Conf 09- Colorado Housing and Finance Authority Board of Directors
TIME:	03:20:45 PM
MOVED:	Isgar
MOTION:	Refer the appointments of Mr. Joel S. Rosenstein, Mr. David J. Myler, Ms Anita Padilla-Fitzgerald, Mr. James M. Hahn, and Mr. John A. Blumberg to the Colorado Housing and Finance Authority Board of Directors to the full Senate with a favorable recommendation. The motion passed 7-0.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	Yes
	Isgar	Yes
	King K.	Yes
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

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

03:21 PM -- House Bill 09-1288

Senator Kopp, prime sponsor, presented House Bill 09-1288 which requires the Governor's Office of Information Technology (OIT) to create and maintain a searchable database with revenue and expenditure data from the state's Financial Data Warehouse (FDW), a tool that allows users to obtain information from the state's accounting system. Senator Kopp provided background information about the bill and an amendment he planned to offer to the committee. He also provided his thoughts about the fiscal note and gave the committee background about the federal government's work in this area.

03:29 PM

Senator Kopp responded to questions from the committee about the Governor's executive order establishing the Colorado Transparency online project. Discussion ensued about the provisions in the order. A copy of Amendment L.007 (Attachment B) was distributed and Senator Kopp discussed it with the committee. Senator Kopp responded to other questions about the database and the nature of searching for the information, and he answered questions about how often the web page would be updated.

03:38 PM

Senator Kopp and the committee continued discussing how the information in the database would be organized and how it could be searched. He stated the income and expenses of the government would be provided. The committee discussed how the financial reports would be made available to the public and how state employees would implement the bill.

03:44 PM

Senator Kopp responded to questions from the committee about whether the Governor's Office disagreed with the language in the bill. He also answered questions about the bill's sponsors.

03:49 PM

Senator Kopp continued responding to questions from the committee about whether individual transactions by the government would be reported in the database. The committee also discussed authorizing the web-based system though an executive order or statute. The committee discussed issues of privacy, how much detail was necessary in the bill, and whether the bill provided a basic framework for moving forward with the online system.

03:55 PM

Senator Kopp continued discussing the bill and the executive order with the committee.

The following persons testified:

03:56 PM -- Mr. Charley Able, representing Lakewood Edge, testified in support of the bill. He stated that as a former reporter for the Rocky Mountain News and that he now has his own web-based news publication. He provided his thoughts about open records law, and stated that none of the information the committee has discussed is excluded from open meetings laws or from the Colorado Open Records Act, also known as CORA. He stated the issue is about access as much as how money is being spent by the government. He also expressed his thoughts about why the legislation is needed in response to questions from the committee. He stated that an executive order could be discontinued by the Governor at any time. Mr. Able shared his views about the "aggregate" language in the Governor's executive order.

04:04 PM

Mr. Ed DeCecco, representing the Office of Legislative Legal Services, responded to questions about privacy and security. He stated the executive order addresses this issue. He also responded to questions about CORA requests, and stated he does not know the level of detail of the information located in the Financial Data Warehouse.

The following persons also testified:

04:09 PM -- Mr. Joseph Tulty, representing himself, testified in support of the bill. He stated that as a taxpayer, he believes that in these uncertain economic times government transparency is important. He also shared his views about taxes and cutting the size of government. He said that he has discussed government transparency issues with his neighbors. Mr. Tulty responded to questions about whether he had accessed the government's checkbook from the State Treasurer's Office.

04:12 PM -- Mr. Jack Ott, representing himself, testified in support of the bill. He provided his thoughts about the Colorado Constitution, specifically Article III. Mr. Ott also provided his thoughts about a court case impacting separation of powers, the Governor's executive order, and aggregated versus detailed data and information. He stated that the responsibility for transparency is with the legislative branch of government. Mr. Ott responded to questions about aggregated or detailed data.

A copy of the order signed by Governor Bill Ritter, entitled "Executive Order D 007 09 Establishing the Colorado Transparency Online Project," dated April 2, 2009, was distributed to the committee (Attachment C).

04:21 PM

Discussion continued with Mr. Ott about aggregated or detailed data.

04:22 PM

Senator Sandoval closed public testimony.


BILL:	HB09-1288
TIME:	04:22:35 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.007 (Attachment B). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

04:23 PM

Senator Kopp responded to questions from the committee about why the Governor's Office was not in attendance. The committee also continued discussing the bill and CORA with Senator Kopp.

04:32 PM

Senator Kopp also responded to questions about the intent of the bill, the fiscal note, Amendment L.007, and the executive order.

04:37 PM

The committee continued discussing the bill, its language, and potential amendments to Amendment L.007.

04:39 PM

Mr. Ed DeCecco, representing the Office of Legislative Legal Services, returned to the table and discussed Amendment L.007. He responded to questions about how the bill would affect the executive order.

04:44 PM

The committee continued discussing how to move forward. The Chair laid the bill over.

04:45 PM -- House Bill 09-1105

Senator Scheffel, prime sponsor, presented House Bill 09-1105 which allows certain investors to receive an income tax credit for investments made in tax year 2010 in businesses involved in research and development or manufacturing of new technologies, products, or services. He said the bill would help to provide capital to companies doing research and development. He explained that investors would provide funding for these efforts and then receive an investment credit on their taxes. Senator Scheffel stated that the bill is aimed at small businesses and economic development.

The following persons testified:

04:48 PM -- Mr. Doug Johnson, representing Univercity, testified in support of the bill. He stated that there is a lack of available capital in the current marketplace. Private investors, he explained, have capital to invest when other sources are lacking, and the challenge is to bring these private investors and entrepreneurs together. Mr. Johnson stated that start-up companies create jobs immediately because they begin hiring professionals to get the companies off the ground. Mr. Johnson responded to questions from the committee about whether the credit would be available to new businesses. The committee further discussed new business investments.

04:53 PM

The committee discussed the tax incentives in the bill. Senator Scheffel shared his additional thoughts about the bill.

The following persons also testified:

04:56 PM -- Mr. Stephen Miller, representing Clean Spark, the Colorado Business Incubation Association, and the Colorado Software and Business Association, testified in support of the bill. He provided information about a Stapleton incubator that encourages new business development. He also discussed venture capital investment and provided the committee with background about new companies that have been created in the state. Mr. Miller provided his thoughts about the market and angel investments, stating that angel investments help to retain a highly educated workforce. He discussed a new idea for a company regarding compostable diapers.

05:02 PM -- Ms. Sandra Hagen Solin, representing the Northern Colorado Legislative Alliance, testified in support of the bill. She stated that capital is frozen in the current marketplace and that the bill would encourage investment in Colorado's economy.

05:04 PM

Senator Sandoval closed public testimony.

05:04 PM

Senator Scheffel responded to questions about the "affiliate" language in the bill on page 3 line 10. Committee discussion ensued about this language. The committee also discussed page 6, line 26 of the reengrossed bill regarding "five business days."


BILL:	HB09-1105
TIME:	05:09:52 PM
MOVED:	Heath
MOTION:	Refer House Bill 09-1105 to the Committee on Appropriations. The motion passed 6-0, with one excused.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	Yes
	Isgar	Yes
	King K.	Excused
	Scheffel	Yes
	Hudak	Yes
	Sandoval	Yes

Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:10 PM -- Senate Bill 09-297

Senator Sandoval, prime sponsor, presented Senate Bill 09-297 which allows state officials in government departments to request a waiver of any provision of state procurement rules for any procurement being funded in whole or in part by the federal American Recovery and Reinvestment Act of 2009 (also referred to as the federal stimulus bill.) She distributed a copy of Amendment L. 001 (Attachment D) and Amendment L.002 (Attachment E). Senator Sandoval explained that the federal stimulus funds, in many instances, must be spent within a short period of time and the bill helps to expedite this process. She discussed several sections of the bill and discussed the waiver process for procurement. She said that all waivers will be made publicly available on the state's Recovery web page. Senator Sandoval discussed the approval process for the waiver. She also provided background about provisions in the bill related to public utilities and the Colorado Department of Transportation (CDOT).

05:17 PM

Senator Sandoval responded to questions from the committee about the CDOT provisions in the bill and how many of the funds are in jeopardy of not being accessed.

The following persons testified:

05:18 PM -- Mr. Herman Stockinger, representing CDOT, testified in support of the bill. He explained that CDOT has a specific timeframe when it must obtain the stimulus funding. He shared his views about the rate recovery language in the bill. Mr. Stockinger stated that the provision in the bill is important for the agency because it is a safeguard in case it is needed.

05:20 PM -- Mr. Ron Binz, Chairman of the Colorado Public Utilities Commission, testified in support of the bill. He provided his thoughts about the rate recovery language in the bill. He stated that the proposals funded by the stimulus dollars would be a high priority. Mr. Binz also explained how the funding in the stimulus will be spent.

05:25 PM -- Mr. Gene Camp, representing the Colorado Public Utilities Commission, was available for questions. He stated that the legislature would be endorsing an approach for rate recovery that is already moving forward.

05:25 PM

Senator Sandoval continued responding to questions from the committee about moving too quickly with the procurements without obtaining all the information. Mr. Binz responded that the PUC will move forward carefully. He stated that he does not foresee any unintended consequences.

05:30 PM -- Mr. Matt Futch, representing the Governor's Energy Office, testified in support of the bill. He explained the government revolving loan program for energy projects. Mr. Futch provided examples of the types of projects that would receive these funds.

05:32 PM

Senator Hudak closed public testimony.


BILL:	SB09-297
TIME:	05:34:25 PM
MOVED:	Sandoval
MOTION:	Adopt Amendment L.001 (Attachment D). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB09-297
TIME:	05:35:59 PM
MOVED:	Sandoval
MOTION:	Adopt Amendment L.002 (Attachment E). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Heath
	Isgar
	King K.
	Scheffel
	Hudak
	Sandoval

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	SB09-297
TIME:	05:36:27 PM
MOVED:	Sandoval
MOTION:	Refer Senate Bill 09-297, as amended, to the Commitee on Appropriations. The motion passed 4-2, with one excused.
SECONDED:
		VOTE
	Brophy	No
	Heath	Yes
	Isgar	Yes
	King K.	Excused
	Scheffel	No
	Hudak	Yes
	Sandoval	Yes

Final YES: 4 NO: 2 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:37 PM

The committee recessed.