Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Date:04/02/2009
ATTENDANCE
Time:10:14 AM to 11:38 AM
Cadman
E
Hodge
X
Place:SCR 353
Kester
X
Lundberg
X
This Meeting was called to order by
Newell
X
Senator Schwartz
Foster
X
Schwartz
X
This Report was prepared by
David Beaujon
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1130
HB09-1213
Referred to the Committee of the Whole
Amended, Referred to the Committee of the Whole


10:14 AM -- House Bill 09-1130

Senator Isgar, sponsor, described the provisions of House Bill 09-1130 that allows the Department of Revenue to enter into an intergovernmental agreement (IGA) with counties to facilitate the collection of sales taxes. An IGA between the state and a county could also involve municipalities. The IGAs could include provisions for the sharing of costs, information, and responsibilities related to sales tax collections. The bill requires the Department of Revenue to report to the House and Senate finance committees on any IGAs it has entered into and how such agreements may have improved the sales tax collection process. He also identified counties that expressed concern about the collection of sales tax.

The following persons testified on the bill:

10:18 AM --
Chris Mendez, Colorado Counties, Inc., spoke in support of the bill. He explained that currently the state collects sales taxes for both the state and certain local governments from merchants and retailers. The local sales taxes collected by the state are only for "state-collected" local jurisdictions, which includes most counties, special districts, and municipalities that are generally non-home rule jurisdictions. He also responded to questions from the committee about the effect of the bill on the number of forms that must be filed by merchants regarding sales tax collections. He also explained that some counties have expressed concern about delays in receiving tax revenue and not receiving the amount that is due to a county.

10:30 AM --
Sallie Clark, El Paso County Board of Commission, spoke in support of the bill and described possible discrepancies in sales tax that is owed to the county and the amount of tax revenue received by the county. She explained that the introduced version of House Bill 09-1130 would have allowed counties to collect, administer, and enforce their own sales taxes.

10:37 AM --
Nicola Sapp, El Paso County Budget Director, described possible discrepancies between sales tax that is owed to the county and the amount that is paid to the county by the Department of Revenue.





10:44 AM --
Commissioner Clark responded to questions about counties and smaller municipalities that may want to enter into an IGA authorized by the bill.

10:49 AM --
Roxy Huber, Executive Director of the Colorado Department of Revenue, described partnerships between the department and local governments to improve the tax collection process. She also responded to questions from the committee concerning alternatives to improve the tax collection process.
BILL:HB09-1130
TIME: 10:58:23 AM
MOVED:Newell
MOTION:Moved to refer House Bill 09-1130 to the Committee of Whole, without amendment, and with a recommendation that it be added to the consent calendar. The motion passed on a vote of 6-0
SECONDED:
VOTE
Cadman
Excused
Hodge
Yes
Kester
Yes
Lundberg
Yes
Newell
Yes
Foster
Yes
Schwartz
Yes
Not Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:00 AM

The committee recessed.


11:00 AM -- House Bill 09-1213

The committee returned from recess. Senator Schwartz, sponsor, described the provision of House Bill 09-1213 that creates the Housing Development Grant Fund to be administered by the Division of Housing in the Department of Local Affairs. The fund consists of any moneys appropriated to the Colorado Affordable Housing Construction Grants and Loan Program by the General Assembly, all moneys collected by the division for purposes of the act from federal grants, and other contributions, grants, gifts, bequests, and donations received. Moneys in the fund are continuously appropriated to the division. Upon approval by the State Housing Board, the bill authorizes the Division of Housing to make grants or loans to improve, preserve, or expand the supply of affordable housing and to finance foreclosure prevention activities in Colorado. She also distributed Amendment L. 008 (Attachment A) and Amendment L. 009 (Attachment B).

090402AttachA.pdf 090402AttachB.pdf

The following persons testified on the bill:

11:04 AM --
Bruce Eisenhauer, Deputy Director, Colorado Department of Local Affairs (DOLA), spoke in support of the bill and described the Colorado Affordable Housing Construction Grant and Loan Program that is administered by the department. He also spoke in support of Amendment L. 008 and Amendment L. 009 and responded to questions from the committee about loans issued by the department to private entities.


11:12 AM --
Artie Lehl, Adams County Housing Authority, spoke in support of the bill and described the services provided by his organization.

11:15 AM --
Joyce Alms Ransford, Rocky Mountain Housing Development Corporation, spoke in support of the bill and identified affordable housing projects that were constructed by her organization using "gap" funding from DOLA. She also responded to questions about the energy efficiency levels of the housing that is built by her organization.

11:22 AM --
Kathi Williams, DOLA Division of Housing, spoke in support of the bill and described the effect of the financial crisis on funding for certain projects. She also responded to questions about the Amendment L. 008.

11:28 AM --
Alana Smart, Housing Colorado, spoke in support of the bill and described how DOLA leverages state moneys to increase the money available for affordable housing. She also spoke in support of Amendment L. 008.

11:30 AM

Bob Lackner, Office of Legislative Legal Service, responded to questions about a proposed amendment to Amendment L. 009.

11:31 AM --
Mr. Eisenhauer returned to answer questions about a proposed amendment to Amendment L. 009 that specifies the requirement to seek replacement loans under the amendment applies in cases where the Division of Housing is the primary lender on a loan.

11:33 AM

Senator Schwartz closed her remarks on the bill.
BILL:HB09-1213
TIME: 11:33:49 AM
MOVED:Schwartz
MOTION:Moved Amendment L. 008. The motion passed without objection.
SECONDED:
VOTE
Cadman
Excused
Hodge
Kester
Lundberg
Newell
Foster
Schwartz
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1213
TIME: 11:34:58 AM
MOVED:Schwartz
MOTION:Moved Amendment L. 009, as amended by a conceptual amendment that specifies the requirement to seek replacement loans applies in cases where the Division of Housing is the primary lender on a loan. The motion passed without objection.
SECONDED:
VOTE
Cadman
Excused
Hodge
Kester
Lundberg
Newell
Foster
Schwartz
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB09-1213
TIME: 11:36:24 AM
MOVED:Schwartz
MOTION:Moved to refer House Bill 09-1213 to the Committee of the Whole, as amended, and with a recommendation that the bill be added to the consent calendar. The motion passed on a vote of 6 to 0.
SECONDED:
VOTE
Cadman
Excused
Hodge
Yes
Kester
Yes
Lundberg
Yes
Newell
Yes
Foster
Yes
Schwartz
Yes
Not Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:37 AM

The meeting adjourned.