BILL SUMMARY for HB09-1218
SENATE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Refer House Bill 09-1218 to the Committee of the W||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.
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.
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.
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.
Senator Sandoval closed public testimony.
|TIME: || 02:35:49 PM|
|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.|
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS
The committee recessed.