BILL SUMMARY for SB09-041
SENATE COMMITTEE ON FINANCE
|Adopt Amendment L.003 (Attachment A). The motion
Adopt Amendment L.004 (Attachment B). The motion
Refer SB 09-041 as amended to the Committee of the
|Pass Without Objection
Pass Without Objection
01:57 PM -- Senate Bill 09-041
Senator Romer, prime sponsor, described Senate Bill 09-041. He noted that he had been working with the Department of Local Affairs (DOLA) to address issues raised by the committee on January 13. Senator Romer distributed copies of two amendments to the committee, including Amendment L.003 (Attachment A) and L.004 (Attachment B). He invited DOLA to testify and explain the amendments further.
The following witness testified:
01:59 PM -- Mr. Bruce Eisenhauer, DOLA, testified about Amendments L.003 and L.004. He stated that DOLA has been working with College Invest, the Colorado Housing and Finance Authority (CHFA), and the City and County of Denver to resolve the issues raised earlier about the private activity bond and the fee allocations. Mr. Eisenhauer stated that DOLA wants to ensure that any allocation fee that is directly assigned to another entity bears the appropriate cost of that allocation. Amendment L.004, he explained, further clarifies that the allocation would occur at the time that the private activity bonds were issued. Therefore, it would not be an up-front fee but a reimbursable fee. Mr. Eisenhauer also said the amendment provides that no more than 30 percent of the cost of the private activity bond could be attached to the particular fee.
Senator Romer stated that the affected parties were comfortable with the 30 percent allocation fee.
Mr. Eisenhauer responded to questions from the committee about several issues, including whether the bill was creating new fees. He stated that the purpose of Senate Bill 09-041 is to clarify what has been in practice and addressed questions about the Department's practice, the Attorney General's opinion, and the impacts of the fee on local governments.
Senator Romer noted that due to market conditions, this year is not a great time to issue municipal bonds, and stakeholders may need one additional meeting to discuss tax credit issues in the bill before going to the Senate floor. He urged the committee to pass the bill and amendments to the full Senate.
Senator Sandoval closed public testimony.
| 02:09:12 PM
|Refer SB 09-041 as amended to the Committee of the Whole. The motion passed 6-0, with one excused.
Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS
The committee recessed.