Date: 02/18/2009

Final
BILL SUMMARY for HB09-1259

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Move amendment L.001, as amended.
Move to amend amendment L.001, Page 3, strike lang
Move to postpone House Bill 09-1259 indefinitely.
Moved a conceptual amendment, Page 5, strike lines
Refer House Bill 09-1259, as amended, to the Commi
PASS
Pass Without Objection
PASS
Pass Without Objection
FAIL



01:59 PM -- House Bill 09-1259 - Concerning Local Government Impact Fees


Representative Hullinghorst, prime sponsor, explained the provisions of the bill and distributed amendment L.001 (Attachment G) and a fact sheet (Attachment H) to the committee members. She continued by saying that the bill expands the authority of a local government to charge impact fees on new development within its jurisdiction and, pursuant to an inter-governmental agreement, to charge impact fees on behalf of a school district or other special districts.

09HouseFin0218AttachG.pdf 09HouseFin0218AttachH.pdf

Representative Hullinghorst continued by saying that under current law, impact fees may be charged to assist a local government with the costs of capital facilities needed to serve the new development. This bill further authorizes impact fees for service programs that encourage the efficient use of energy, preserve natural resources, or provide social services. She closed by noting that at the request of a local government, the Office of Smart Growth in the Department of Local Affairs (DOLA) may provide technical assistance to the local government for the adoption or administration of impact fees. The committee engaged in a discussion about impact fees and heard testimony on the bill.

The following persons testified:

02:24 PM -- Mr. Chris Elliott, Colorado Association of Home Builders, testified in opposition toward the bill and distributed a handout to the committee on the home building industry (Attachment I). The committee briefly discussed impact fees that home builders pay in Colorado.

09HouseFin0218AttachI.pdf

03:00 PM -- Ms. Pat Ratliff, Colorado Counties Inc,, testified in support of the bill and pointed out that there is no division between local governments and developers. She continued by saying that counties work together with developers to achieve the best use of the land.

The committee discussed the typical impact fee for a home. Ms. Ratliff responded saying that the average fee is between $10,000 to $12,000 per home plus water and tap fees, depending upon the local government jurisdiction.

03:08 PM --
Mr. David Koons, Summit County Builders, testified in opposition toward the bill and discussed the housing market in Summit County. Impact fees are taxes directed at the construction and building industries. He closed by saying that this bill will be a concern to the home builders in Summit County and further slow the housing market. Please do not support this bill.

The committee discussed the home building industry in the mountain communities of Colorado and commented on the number of jobs that are generated by the industry for local economies. Mr. Koons responded by discussing the economic activity associated with the industry and discussed full time jobs created by the industry. He continued by discussing the secondary jobs that are tied to the home building industry.

Mr. Koons discussed the small businesses that are tied to the home builders' industry that may be impacted by the bill. Within the building industry, it is one of the only industries that pays a high wage in contrast to the ski industry that pays minimum wage. The committee continued to discuss the workers that may be affected by the impact fees in the bill. Mr. Koons responded by talking about the contractors who hire workers in the industry.

The committee asked Mr. Koons about his fundamental concern regarding the bill. Mr. Koons responded by saying that local governments in Summit County are going to increase and charge more for homes than would otherwise be charged without the bill. He closed by saying that the bill will harm the home building industry.

03:35 PM -- Mr. Jack Fox, Colorado Association of Realtors, testified in opposition toward the bill and said that growth in mountain communities must pay its own way. He discussed the impact of impact fees on commercial developers. He closed by noting that the industry pays for the work that would be taxed twice by impact fees.

03:45 PM -- Ms. Bonnie Arnold, Colorado Association of Realtors, testified in opposition toward the bill. She noted that the costs shifted to home builders from impact fees are added to the price of a home. In this housing market, additional impact fees may harm the building industry or prolong the ongoing slump in the housing market.

03:53 PM -- Ms. Mickey Hackenberger, Colorado Association of Realtors, testified in opposition toward the bill.

03:55 PM -- Mr. Dale Case, Boulder County, testified in support of the bill.

04:10 PM -- Mr. Ira J. Rhodes, representing self, testified in support of the bill.

04:20 PM -- Ms. Stephanie Thomas, Colorado Environmental Coalition, testified in support of the bill.

The committee and sponsor engaged in a discussion about the imposition of impact fees prior to the committee's action on the bill.


04:27 PM
BILL:HB09-1259
TIME: 04:27:33 PM
MOVED:Benefield
MOTION:Move amendment L.001, as amended.
SECONDED:Kerr A.
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
No
Judd
Yes
Not Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB09-1259
TIME: 04:28:29 PM
MOVED:Benefield
MOTION:Move to amend amendment L.001, Page 3, strike language on lines 5 and 6, "or service programs". The motion passed without objection by those members present.
SECONDED:Kerr A.
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1259
TIME: 04:35:42 PM
MOVED:Judd
MOTION:Moved a conceptual amendment, Page 5, strike lines 11 thru 20 and make any conforming amendments. The motion passed without objection by those members present.
SECONDED:Frangas
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1259
TIME: 04:36:07 PM
MOVED:Benefield
MOTION:Refer House Bill 09-1259, as amended, to the Committee of the Whole. The motion failed on a 3-8 vote.
SECONDED:Judd
VOTE
Apuan
No
Benefield
Yes
Gerou
No
Kefalas
No
Kerr A.
Yes
Lambert
No
Roberts
No
Summers
No
Swalm
No
Frangas
No
Judd
Yes
Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB09-1259
TIME: 04:56:58 PM
MOVED:Summers
MOTION:Move to postpone House Bill 09-1259 indefinitely. The motion passed on a 9-2 vote.
SECONDED:Lambert
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
No
Kerr A.
No
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS



04:57 PM

Adjourn.