House Committee on Education (03/30/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON EDUCATION

Date:	03/30/2009	ATTENDANCE

Time:	01:35 PM to 03:28 PM	Baumgardner	X
		Benefield	X
Place:	HCR 0112	Massey	X
		Middleton	*
This Meeting was called to order by		Murray	X
	Representative Merrifield	Peniston	X
		Priola	X
This Report was prepared by		Scanlan	X
	Katey McGettrick	Schafer S.	X
		Summers	*
		Todd	X
		Solano	*
		Merrifield	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1312		Amended, Referred to the Committee of the Whole

01:35 PM -- House Bill 09-1312

Representative A. Kerr, sponsor of House Bill 09-1312, concerning renewable energy loans for schools, reviewed the provisions of the bill and the proposed amendments to the bill.

01:41 PM

Representative Massey expressed his support for the bill's concept, but presented concerns about the effect the bill could have on the community banks in the state.

01:43 PM

The following people testified on the bill:

01:43 PM -- Barbara Walker, representing the Independent Bankers of Colorado (IBC) and the Colorado Bankers Association, testified against the bill. She explained the role of community banks in local communities.

01:48 PM

Committee discussion ensued about the possible effects of the bill on community banks and the viability of public-private partnerships for loans.

01:50 PM -- Mary Wickersham, representing the Office of the State Treasurer, testified in support of the bill, and offered to answer questions from the committee.

01:51 PM

Representative Benefield asked if there is a cap on the loan amount a school district may request. Committee discussion ensued about the amount of money available for the loans. Representative Middleton asked Ms. Wickersham to address the areas of limitations for community banks and the advantages for a school district to go through the State Treasurer for the loans. Ms. Wickersham addressed provisions in the state Constitution regarding the Public School Permanent Fund.

01:56 PM

Representative Summers asked about the approval and disbursement process for the loans, specifically that under the bill, the Governor's Energy Office (GEO) will approve the loans, and whether the GEO staff has qualified financial staff to evaluate the fiscal elements of the application. Ms. Wickersham pointed out provisions in the bill that provide the State Treasurer the authority to oversee the loan approval. Representative Peniston asked if the bill takes current business or potential business from community banks. Ms. Walker returned to the witness table to address Representative Peniston's question.

02:02 PM

Representative Middleton asked how the bill cuts into community bank business. Ms. Walker and Ms. Wickersham addressed the question. Committee discussion continued about community bank loan practices and loan terms, as compared to the loan terms offered by the State Treasurer. Ms. Wickersham also addressed the rate of return on the loans and bond guarantee provisions in the state Constitution.

02:10 PM

Representative Summers asked questions about the fiscal note. Ms. Wickersham addressed the question and explained that there is an amendment to be offered that would allow the Treasurer to assess fees if the demand for loans from school districts was overwhelming. Representative Murray asked if there is a need for school districts to access renewable energy loans. Representative A. Kerr noted that school districts are cutting budgets and the provision of loans could assist in offsetting energy costs.

02:14 PM -- Tom Plant, representing the Governor's Energy Office, testified in support of the bill. He noted the benefits the bill could bring to school districts by mitigating capital expenses in implementing renewable energy projects.

02:18 PM

Representative Massey asked how defaulted loans are handled in the program. Representative A. Kerr responded that the state would withhold the money that was owed to the state from the school district. He also addressed the safeguards in the bill to reduce the likelihood of loan default. Representative Summers sought clarification regarding the loan application and approval process. Representative Middleton asked Mr. Plant to address rising utility costs for school districts and possible renewable energy projects.

02:25 PM

Representative Schafer asked if a group of schools could apply for a loan together. Ms. Wickersham replied that to be in accordance with the constitutional provisions regarding the Public School Permanent Fund, funds may only be loaned to school districts.

02:28 PM -- Ghita Carroll and Jean Paxton, representing the Boulder Valley School District, testified in support of the bill and shared examples of renewable energy projects being conducted in the school district.

02:33 PM -- Bill Peisner, representing the Poudre School District as a school counselor from Wellington Junior High School, testified in support of the bill and shared information on the school's wind turbine project.

02:34 PM

Representative Solano asked Mr. Peisner what is the cost of the wind turbine. Mr. Peisner replied that the total cost of the project is $30,000. Representative Benefield asked if the school sought loan funding from community banks. Mr. Peisner explained that the project has been grant-funded. Committee discussion ensued about future plans for renewable energy projects and funding sources in the school district. Representative Baumgardner asked if the bill does not pass, would the school consider looking to a community bank to fund the project. Mr. Peisner replied that the school would seek funding for the program wherever it may exist. Representative Schafer asked how the students are involved in the design, construction, and implementation of the wind turbine project and other renewable energy projects.

02:41 PM -- Kristen Thomson, representing Southwest Windpower, Inc., testified in support of the bill, explaining that the company provides the turbines for the Wind for Schools Program. She noted that she was also be speaking on behalf of the Rocky Mountain Farmers Union.

02:45 PM -- Ron Larson, representing the Colorado Renewable Energy Society, testified in support of the bill.

02:50 PM -- Tracy Ellis, representing herself, testified in support of the bill, and shared her participation on the sustainability committee at her child's school.

02:52 PM -- Karen Wick, representing the Colorado Education Association, testified in support of the bill.

02:54 PM -- Scott Groginsky, representing the Colorado Children's Campaign, testified in support of the bill.

02:56 PM -- Jane Urschel, representing the Colorado Association of School Boards, and Bruce Caughey, representing the Colorado Association of School Executives, testified in support of the bill.


BILL:	HB09-1312
TIME:	03:00:43 PM
MOVED:	Scanlan
MOTION:	Moved Amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Baumgardner
	Benefield
	Massey
	Middleton
	Murray
	Peniston
	Priola
	Scanlan
	Schafer S.
	Summers
	Todd
	Solano
	Merrifield

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


BILL:	HB09-1312
TIME:	03:03:06 PM
MOVED:	Benefield
MOTION:	Moved Amendment L.005 (Attachment B). The motion passed without objection.
SECONDED:	Solano
		VOTE
	Baumgardner
	Benefield
	Massey
	Middleton
	Murray
	Peniston
	Priola
	Scanlan
	Schafer S.
	Summers
	Todd
	Solano
	Merrifield

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


BILL:	HB09-1312
TIME:	03:04:13 PM
MOVED:	Massey
MOTION:	Moved Amendment L.006 (Attachment C). The motion failed on a 5-8-0 vote.
SECONDED:	Baumgardner
		VOTE
	Baumgardner	Yes
	Benefield	No
	Massey	Yes
	Middleton	No
	Murray	Yes
	Peniston	No
	Priola	Yes
	Scanlan	No
	Schafer S.	No
	Summers	Yes
	Todd	No
	Solano	No
	Merrifield	No

Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL

03:14 PM

Representative A. Kerr concluded his remarks on the bill, and asked for the committee's support.

03:18 PM

Committee members shared their positions on the bill.


BILL:	HB09-1312
TIME:	03:27:14 PM
MOVED:	Benefield
MOTION:	Moved to refer House Bill 09-1312, as amended, to the Committee of the Whole. The motion passed on a 8-4-1 vote.
SECONDED:	Middleton
		VOTE
	Baumgardner	No
	Benefield	Yes
	Massey	Yes
	Middleton	Yes
	Murray	No
	Peniston	Yes
	Priola	No
	Scanlan	Yes
	Schafer S.	Yes
	Summers	No
	Todd	Excused
	Solano	Yes
	Merrifield	Yes

Final YES: 8 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

03:28 PM

The committee adjourned.