House Committee on Finance (02/11/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/11/2009	ATTENDANCE

Time:	09:30 AM to 03:34 PM	Apuan	X
		Benefield	X
Place:	LSB A	Gerou	X
		Kefalas	X
This Meeting was called to order by		Kerr A.	X
	Representative Judd	Lambert	X
		Roberts	X
This Report was prepared by		Summers	X
	Ron Kirk	Swalm	X
		Frangas	X
		Judd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1249 HB09-1239 HB09-1212 HB09-1010		Referred to Agriculture, Livestock, & Natural Resources Postponed Indefinitely Postponed Indefinitely Amended, Referred to Appropriations

09:30 AM -- House Bill 09-1249 - Concerning Certain Cash Funds Created for the Department of Agriculture

Representative Judd, Chair, announced that House Bill 09-1249 would be referred to the Committee on Agriculture, Livestock, & Natural Resources and made the following motion.

09:31 AM


BILL:	HB09-1249
TIME:	09:32:07 AM
MOVED:	Judd
MOTION:	Move to refer House Bill 09-1249 to the Committee on Agriculture, Livestock, & Natural Resources. The motion passed on a 10-0 vote.
SECONDED:	Lambert
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	Yes
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Excused
	Frangas	Yes
	Judd	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:34 AM -- House Bill 09-1239 - Concerning the Payment of Debts in Precious Metal Coins

Representative McKinley, prime sponsor, explained the provisions of the bill. He noted that HB09-1239 declares that any gold or silver coin authorized by law is legal tender for payment of debts between the citizens of Colorado. The bill also allows parties to a transaction involving the sale of raw materials to require payment in gold coin issued by the United States government.

The committee discussed the history of the gold standard in the United States. Representative McKinley responded by discussing the history of gold and silver standards that pertain to the payment of debt that was initially in the State Constitution. The committee discussed issues tied to day-to-day transactions using gold or silver as legal tender.

10:03 AM


BILL:	HB09-1239
TIME:	10:03:16 AM
MOVED:	Frangas
MOTION:	Moved to amend Page 2, line 11, after require, insert by mutual agreement. The motion passed without objection by those members present.
SECONDED:	Lambert
		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:	HB09-1239
TIME:	10:04:21 AM
MOVED:	Lambert
MOTION:	Refer House Bill 09-1239, as amended, to the Committee of the Whole. The motion failed on a 5-6 vote.
SECONDED:	Gerou
		VOTE
	Apuan	Yes
	Benefield	No
	Gerou	Yes
	Kefalas	No
	Kerr A.	No
	Lambert	Yes
	Roberts	No
	Summers	No
	Swalm	Yes
	Frangas	Yes
	Judd	No

Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB09-1239
TIME:	10:11:11 AM
MOVED:	Judd
MOTION:	Move to postpone House Bill 09-1239 indefinitely. The motion passed on a 6-5 vote.
SECONDED:	Benefield
		VOTE
	Apuan	No
	Benefield	Yes
	Gerou	No
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	No
	Frangas	No
	Judd	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:12 AM -- House Bill 09-1212 - Concerning an Income Tax Credit for New Home Buyers

Representative Liston, prime sponsor, explained the provisions of the bill and began by discussing the depressed housing market. He continued by saying that the bill provides a state income tax credit for purchases of new single-family detached homes that are constructed and completed in 2010. The credit is available to Colorado residents or trusts for tax year 2010 only. The credit is not available for corporations.

The committee briefly discussed the federal stimulus package and the comparable housing credit. Representative Liston responded by noting that the tax credit in the bill is equal to 3 percent of the purchase price, up to $10,000. Any credit that exceeds the amount of the taxpayer's income tax liability will be refunded to the taxpayer but cannot be carried forward and applied to future tax years. Representative Liston closed by saying that the bill was endorsed by the Joint Select Committee on Job Creation and Economic Growth.

The following persons testified:

10:18 AM -- Mr. Rob NanFort, Colorado Association of Home Builders, testified in support of the bill and distributed a handout on housing statistics (Attachment A).

10:23 AM -- Mr. Marc Towne, Colorado Home Builders, testified in support of the bill and opined on the impact in the fiscal note. Mr. Towne distributed a presentation handout and spoke about new home construction in 2009 (Attachment B). Mr. Towne discussed a fiscal impact study on the credit in the bill by the industry. A tax credit will create a bottom for the housing market and help turn Colorado's housing market around. Mr. Towne discussed the impact of the federal stimulus package on the nation's housing market and noted that the housing industry is seeing many changes. For example, buyers are now more attracted to smaller homes that are built-green. He closed by saying that this bill will put Colorado's housing market back on the road to recovery. He urged the committee to support the bill.

10:39 AM -- Mr. Chris Howes, Colorado Retail Council, testified in support of the bill and noted that the retail industry has a significant interest in the recovery of the housing industry because buyers need to buy things to put into new homes. This bill will stimulate the economy.

10:42 AM -- Ms. Rachel Nance, Colorado Association of Realtors, testified in support of the bill. This bill will help Colorado's housing industry recover. She closed by urging the committee to endorse the bill.

10:44 AM


BILL:	HB09-1212
TIME:	10:44:49 AM
MOVED:	Gerou
MOTION:	Refer House Bill 09-1212 to the Committee on Appropriations. The motion failed on a 5-6 vote.
SECONDED:	Lambert
		VOTE
	Apuan	No
	Benefield	No
	Gerou	Yes
	Kefalas	No
	Kerr A.	No
	Lambert	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	No
	Judd	No

Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB09-1212
TIME:	10:50:34 AM
MOVED:	Frangas
MOTION:	Moved to postpone House Bill 09-1212 indefinitely. The motion passed on a 6-5 vote.
SECONDED:	Benefield
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	No
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	No
	Summers	No
	Swalm	No
	Frangas	Yes
	Judd	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:51 AM

Recess.

01:31 PM -- House Bill 09-1010 - Concerning the Promotion of Colorado as a Location for Film Production Activities

Representative Massey, and Representative McGihon, prime sponsors, began by distributing amendments L.001 (Attachment C) and L.003 (Attachment D), and a memorandum addressing the fiscal impact of the bill given adoption of L.001 (Attachment E), and spoke to the fiscal impacts of the bill. Representative Massey began by saying that House Bill 09-1010 will provide a significant boost to the economy in terms of jobs and tax revenue that will more than pay for the cost of the legislation.

Representative Massey commented on the number of film students that would benefit from the bill in terms of more job opportunities in the state tied to the film industry. He explained that the bill creates the Colorado Office of Film, Television, and Media (office) within the Colorado Office of Economic Development in the Governor’s Office. Duties include marketing Colorado as a destination for making movie films and other related activities; coordinating efforts among production companies and government agencies; conducting educational seminars; administering the Colorado film production tax credit; and issuing income tax credit certificates. Representative Massey noted that the bill has a reporting requirement. No later than January 30, 2010, and each January 30 thereafter through 2015, the office must report to the Finance Committees of the General Assembly regarding all credit certificates issued.

The Colorado Office of Film, Television, and Media (office) distributed a packet of materials related to the film industry (Attachment F). Representative McGihon commented that she has a great interest in films. This bill is a green-economic development growth bill. Colorado ranks 5th among all states for the highest concentration of artists. She continued by referencing a packet of materials by the Film Commission and discussed the number of small businesses that would be impacted by the bill. Representative McGihon noted that film production is the best thing for Colorado's hospitality industry as it brings many new tax dollars into the state. Increased film activity will pay for the costs in the bill by providing a $1.40 return on every dollar invested in the film industry. She closed by noting that film production companies hire many local workers that drive local economies and will help the state battle the recession.

The committee discussed the refundable tax credit in the bill.

The following persons testified:

02:00 PM -- Mr. Kevin Shand, Colorado Film Commission, testified in support of the bill and discussed movies that were filmed in New Mexico rather than Colorado because of film incentives. Ms. Shand closed by discussing film incentive impacts and noted that the film industry will go to the state that makes the film cost-effective to produce. Generally, states with more generous credits are where film companies decide to make films.

02:07 PM -- Dr. Richard Wobbekind, University of Colorado at Boulder, testified in support of the bill and discussed the secondary effects of job creation in the bill. Dr. Wobbekind noted that the quality of a workforce is important to the state. He continued by pointing out that the film industry's jobs have many secondary impacts that benefit the state of Colorado. He continued by saying that the net tax generated from House Bill 09-1010 will more than offset the cost in the bill.

Dr. Wobbekind discussed the level of film production in other states that have tax incentives for film production. This industry is a high salary industry. He continued by noting that most of the film-making activities that occurred in Colorado were filmed along the front wage. He closed by discussing other job impacts. The tax credits in this bill will be paid for by the economic activity generated by the bill. This bill will be revenue positive for local governments in Colorado. He closed by saying that investment in the industry by the state will help the industry grow.

The committee discussed the secondary impacts in House Bill 09-1010 that are tied to job creation. Dr. Wobbekind responded by discussing the credits in the bill and talked about the success that other states have had with tax incentives for the film industry. Dr. Wobbekind noted that the film industry in Colorado is in decline and this bill will reverse the decline. The down-side of this bill is that it would be revenue neutral.

02:42 PM -- Mr. Frederic Lahey, Colorado Film School & Colorado Community College System, testified in support of the bill. He briefly spoke about the advantages the film industry brings to local colleges and arts institutions in Colorado. There are over 1,000 students majoring in film studies in 2006 and the number is increasing each year. This bill will help students get through these studies. He noted that without this bill, it is likely that these students will have to leave Colorado to find jobs in the industry. This is a tremendous loss to Colorado. This bill will help revive the industry. Mr. Lahey closed by urging the committee to support the bill.

02:49 PM -- Mr. Ken Seagren, Lighting Services Inc., testified in support of the bill. He closed by discussing the new jobs that could be created by the passage of the bill.

02:54 PM -- Ms. Heidi McLean, Payreel Inc., testified in support of the bill and discussed the high-paying jobs that would be created in Colorado if House Bill 09-1010 was enacted by the legislature. She asked the committee to support a competitive incentive program as that contained in House Bill 09-1010.

02:59 PM -- Mr. David Emmrich, Postmodern Inc., testified in support of the legislation.

03:05 PM -- Mr. Brian Moore, Colorado Bar Association, commented on the amendments to the bill. We urge the committee to include a definition of obscenity as contained in state law.

03:08 PM -- Mr. Todd Herreid, Legislative Council Staff, discussed the revenue impact in the fiscal note and distributed a memoranda from the State of Louisiana Legislative Fiscal Office (Attachment G). While we recognize that the bill provides an incentive for economic activity, it is difficult to untangle the amount of activity that is tied to the credit and quantify the revenue gain in the bill that is tied to the credit.

The committee inquired whether the state is moving forward to looking at incorporating dynamic modeling into its fiscal note process. Mr. Herreid responded by discussing the challenges tied to the dynamic modeling process. Mr. Herreid closed by commenting on the findings of the Louisiana Fiscal Office on film incentive credits.

03:22 PM


BILL:	HB09-1010
TIME:	03:22:22 PM
MOVED:	Summers
MOTION:	Moved amendment L.001. The motion passed without objection by those members present.
SECONDED:	Benefield
		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:	HB09-1010
TIME:	03:23:36 PM
MOVED:	Summers
MOTION:	Moved amendment L.003. The motion passed without objection by those members present.
SECONDED:	Benefield
		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:	HB09-1010
TIME:	03:23:54 PM
MOVED:	Kefalas
MOTION:	Refer House Bill 09-1010, as amended, to the Committee on Appropriations. The motion passed on a 7-4 vote.
SECONDED:	Frangas
		VOTE
	Apuan	Yes
	Benefield	No
	Gerou	Yes
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	No
	Frangas	Yes
	Judd	No

Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:34 PM

Adjourn.