Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON FINANCE

Date:03/10/2009
ATTENDANCE
Time:02:03 PM to 03:34 PM
Brophy
X
Heath
X
Place:SCR 354
Isgar
X
King K.
X
This Meeting was called to order by
Scheffel
X
Senator Sandoval
Hudak
X
Sandoval
X
This Report was prepared by
Elizabeth Hanson
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1249
HB09-1218
HB09-1041
SB09-242
Referred to the Committee of the Whole
Referred to the Committee of the Whole
Referred to the Committee of the Whole
Amended, Referred to Appropriations


02:04 PM -- House Bill 09-1249

Senator White, prime sponsor, presented House Bill 09-1249. The bill consolidates several cash funds of the Department of Agriculture into two remaining cash funds. He stated that the objective is to combine cash funds in the Department of Agriculture and make it more efficient to manage budget issues. He added that it was not his intention to make it easier to remove money from these cash funds. Senator White responded to questions from the committee about inspections and the abolishment of the Mandatory Fruit and Vegetable Inspection Fund.


02:06 PM

Mr. John Reitan, representing the Colorado Department of Agriculture, was available to answer committee questions. The committee had none, and Senator Sandoval closed public testimony.
















BILL:HB09-1249
TIME: 02:07:22 PM
MOVED:King K.
MOTION:Refer House Bill 09-1249 to the Committee of the Whole, with a recommendation that it be placed on the consent calendar. 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


02:08 PM -- House Bill 09-1218

Senator Bacon, prime sponsor, presented House Bill 09-1218 that will update state law regarding lease purchase agreements. The bill requires the approval of lease-purchase agreements above $500,000 to be approved by the General Assembly in a bill other than a supplemental appropriations bill. House Bill 09-1218 also provides that, following legislative approval, payments for these leases may be paid as a separate line item in a general or supplemental appropriation act.

Senator Bacon explained that the bill would increase the threshold so that the amount paid would lead to eventual ownership of certain state purchases. This bill, he said, would allow a lease purchase option for equipment above $500,000. Senator Bacon distributed a handout that summarizes the bill (Attachment A) and responded to questions from the committee about higher education and procurement rules.

09SenateFin0310AttachA.pdf

The following person testified on the bill:

02:12 PM -- Mr. David McDermott, representing the Office of the State Controller, testified in support of the bill. He explained that the bill was recommended by the Colorado Department of Personnel. He stated the bill would increase legislative oversight and future capital acquisitions. He also said it would allow the Controller's Office more flexibility to make future decisions about transactions and contracts. Mr. McDermott discussed state contracts and the concept of "fair and reasonable." He also explained that purchases are allowed only when the state takes title to the asset. Mr. McDermott provided background about state agencies, capital leases, title transfers, and the cost of leasing. Mr. McDermott also discussed accounting rules and leasing guidelines.








02:20 PM

Mr. McDermott discussed the expected impacts of the proposed legislation. He also discussed thresholds, legislative review, and surveys that have been conducted about the state leases. He responded to questions about computer equipment and the amount of the leases. Mr. McDermott also responded to questions from the committee about higher education and procurement rules.


02:25 PM

Discussion ensued about subsection 6 on page 9 of the reengrossed bill relating to higher education.


02:29 PM --
Mr. Clark Bolser, representing the Department of Personnel, responded to questions from the committee. He provided background on subsection 6 on page 9 of the reengrossed bill, the Department of Education, and lease agreements.


02:35 PM

Senator Sandoval closed public testimony.
BILL:HB09-1218
TIME: 02:35:49 PM
MOVED:King K.
MOTION:Refer House Bill 09-1218 to the Committee of the Whole, with a recommendation that it be placed on the consent calendar. 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


02:36 PM

The committee recessed.


02:38 PM


The committee reconvened.





02:38 PM -- House Bill 09-1041


Senator Gibbs, prime sponsor, presented House Bill 09-1041. The bill allows a fire protection district board to charge a fee for extrication, rescue, or other services when assisting medical services. He explained that the bill addresses the costs of fire protection for fire districts. Senator Gibbs said the state currently has about 250 fire districts and these districts handle many other services other than fighting fires. He said the bill would allow fire protection districts to recover costs for services such as extraction and the bill will clarify ambiguity in the law.

02:41 PM -- Mr. Paul Cooke, representing the Colorado State Fire Chiefs' office, testified in support of the bill and distributed a summary (Attachment B). He stated that current law is ambiguous about fees for certain services for fire districts. He also said that an average fee is difficult to calculate in these cases. Mr. Cooke responded to questions from the committee about the fees and charges for different situations. He also responded to questions about how fees are accessed and services that are provided.

09SenateFin0310AttachB.pdf

02:51 PM

Discussion continued about the fees and how the bill applies to services that fire protection districts provide. Representative Gerou, prime House sponsor, came to the table to discuss the bill. She explained that the bill will reimburse fire districts for costs when assisting medical services. She stated that fire protection districts provide services to individuals who do not live in those districts, which can cause economic hardship for the districts. Mr. Cooke also further explained that the bill clarifies the definition of emergency medical services.


02:55 PM

Senator Sandoval closed public testimony.
BILL:HB09-1041
TIME: 02:56:39 PM
MOVED:King K.
MOTION:Refer House Bill 09-1041 to the Committee of the Whole, with a recommendation that it be placed on the consent calendar. The motion passed 6-0, with one excused.
SECONDED:
VOTE
Brophy
Yes
Heath
Yes
Isgar
Yes
King K.
Yes
Scheffel
Yes
Hudak
Excused
Sandoval
Yes
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS






02:57 PM -- Senate Bill 09-242

Senator Isgar, prime sponsor, presented Senate Bill 09-242. The bill reduces the allowable appropriation to cover direct and indirect costs of Energy Council members from $56,000 to $50,000. The bill appropriates $50,000 to the legislative branch from the Oil and Gas Environmental Response Fund for FY 2009-10 and FY 2010-11 for these costs. The bill also specifies how many members can be appointed to the council and other guidelines for membership.

Senator Isgar explained that it has been proposed to eliminate the legislative appropriation for the Energy Council and he proposed the bill because he would like to attempt to find the funding. The bill, he stated, would allow money to come from the Oil and Gas Environmental Response Fund. He also provided background information about the Energy Council, Colorado's participation in the council, and membership guidelines in the proposed legislation. Senator Isgar shared information from the Energy Council's quarterly meetings. He stated it is important for Colorado to participate in this council because of the state's role as a major energy producing state. Senator Isgar also shared his thoughts about nonpartisanship.


03:09 PM

Senator Isgar responded to questions from the committee about the Energy Council and money in the Oil and Gas Environmental Response Fund. Discussion ensued about the legislative branch's budget and Colorado's membership in other committees and councils. Senator Isgar also responded to questions about whether funding could be taken from Legislative Council's budget to fund this cost.

The following person testified on the bill:

03:14 PM --
Ms. Lisa Hough, representing BP America, testified in support of the bill. Ms. Hough provided background information about the Center for Legislative Energy and Environmental Research (CLEER), an organization that assists the Energy Council, and issues the Energy Council has covered in its meetings. She urged the committee to support continued participation in the council.

Senator Isgar also provided information about his trip to China with other Energy Council members.


03:23 PM

Senator Brophy provided information about how much money would be available in the fund for this fiscal year. He said that he obtained this information from the Department of Natural Resources (DNR). He also discussed property values, the mill levy, and funding issues.

03:24 PM --
Ms. Heidi Van Huysen, representing DNR, provided background information about the mill levy rate and the price of natural gas.













03:26 PM

Discussion ensued about whether to refer the bill to the Committee of the Whole or the Committee on Appropriations. Senator Isgar distributed copies of Amendment L.001 (Attachment C).

09SenateFin0310AttachC.pdf
BILL:SB09-242
TIME: 03:32 PM
MOVED:Isgar
MOTION:Refer Senate Bill 09-242, as amended, to the Committee on Appropriations. The motion passed 6-1.
SECONDED:
VOTE
Brophy
No
Heath
Yes
Isgar
Yes
King K.
Yes
Scheffel
Yes
Hudak
Yes
Sandoval
Yes
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

BILL:SB09-242
TIME: 03:33:32 PM
MOVED:Isgar
MOTION:Adopt Amendment L.001 (Attachment C). 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


03:34 PM

The committee recessed.