Bill Summary for Bill Number SB09-108

Date: 01/29/2009

Final
BILL SUMMARY for SB09-108

SENATE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Adopt Amendment L.007 (Attachment I). The motion Adopt Amendment L.008 (Attachment D). The motion Adopt Amendment L.010 (Attachment J). The motion Adopt Amendment L.011 (Attachment K). The motion Adopt Amendment L.012 (Attachment L). The motion Refer SB09-108 as amended to the Committee on Appr	FAIL Pass Without Objection FAIL FAIL FAIL PASS

10:12 AM -- Senate Bill 09-108

Senator Gibbs, prime sponsor of SB 09-108, provided a general overview of the bill's goals and objectives, which include: creating jobs and stimulating Colorado's economy, addressing structurally deficient bridges, initiating mileage-based pilot programs, pursing more opportunities for projects like the Transportation Expansion project (or T-REX), and committing to departmental finance and efficiency improvements. He stated that SB 09-108 has four major components, including a bridge and road safety program, a high performance transportation enterprise, mileage-based revenue commission and pilot project, and a Departmental Efficiency Committee. According to Senator Gibbs, the bill dedicates about $200 million annually towards transportation objectives, which would create jobs in Colorado.

Senator Gibbs explained that the bill would primarily finance these objectives through an increase in driver registration fees. The average driver, he stated, would pay about $31.00 more per year, or about $2.50 per month. The bill increases car rental fees by $2.00 per day. The bill would also increase the penalty for late registration fees. He further explained that the bill would authorize the use of Certificates of Participation (COPs) and revenue bonds that would be paid for by user fees. This would provide about $100 million per year for bridge safety projects and $150 million per year for road safety projects.

Senator Gibbs responded to questions about mass transit, road safety, deficient bridges, available revenue for transportation in the General Fund, and the proposed fees. He also distributed Amendment L.008 to the committee (Attachment D). Senator Gibbs said that finding General Fund revenue to dedicate towards transportation is a difficult task in the current fiscal climate.

He stated that public testimony would answer many of the committee's questions.

The following witnesses testified:

10:21 AM -- Mr. Henry Sobanet, Colorado Department of Transportation (CDOT), testified in support of the bill. He stated that the current revenue streams are not sufficient to maintain a quality transportation system, and without additional funding, citizens can expect a gradual decline in the quality and safety of roads and bridges in Colorado.

10:34 AM

Committee discussion ensued about many issues affecting transportation policy in Colorado, including voluntary payments, fees, tolling authorities, and local governments. Committee members expressed concerns about additional fees. The committee also discussed the gas tax and whether the voters should simply approve an additional tax for transportation needs.

10:39 AM

Discussion also ensued about the impact of federal stimulus dollars for transportation needs in Colorado. Mr. Sobanet stated that the stimulus dollars come with strings attached to them and may not address immediate challenges.

The following witnesses also testified:

10:50 AM -- Ms. Jane Hylen, Enterprise Rent-A-Car, testified in opposition to the bill. She stated her concerns about rental car customers facing an increase in their cost while other stakeholders do not. She argued that good policy should spread the burden of the cost, and the bill places too large of a burden on a small number of people. Ms. Hylen distributed a document urging opposition to the bill (Attachment E) and a generic example of car rental taxes (Attachment F). Ms. Hylen responded to questions from the committee about taxes, fees and who should pay. She further explained that she would be more likely to support a proposal that was broad based and spread out the increase among all highway users.

11:00 AM -- Mr. Paul Sheldon, Hertz Rent-A-Car, testified in opposition to the bill. He said he is concerned that local businesses will be negatively impacted if the rental car fee is implemented. He is also concerned about the impacts on local residents that use rental cars.

11:02 AM -- Mr. Greg Fulton, on behalf of Colorado Motor Carriers, testified about the bill. Mr. Fulton stated he recognizes that there are transportation needs and supports paying a fair share, but is concerned about the tolling provision in the bill and the speed with which the bill is moving through the process. Mr. Fulton stated that tolls on existing highways will exert significant burden on small businesses and motorists. He distributed a multi-state comparison of taxes and fees on tractors (Attachment G) and information about lack of uniformity in truck registration fees (Attachment H).

11:18 AM -- Mr. Dan Coleman, DG Coleman Inc., testified about the bill. He said that current trucking fees have resulted in a loss of jobs over the past eight years.

Senator King distributed four amendments, including: Amendment L.007 (Attachment I), Amendment L.010 (Attachment J), Amendment L.011 ( Attachment K), and Amendment L.012 (Attachment L).

11:27 AM -- Mr. Bradley High, Alamo Rent-A-Car, testified in opposition to SB 09-108 and expressed concern about the impacts of increasing rental car fees that motorist would pay.

11:30 AM -- Mr. Greg McKnight, Rocky Mountain Minority Contractors Association (RMMCA), testified in support of the bill. He said that the General Assembly must act quickly to assist transportation in Colorado because minority and women businesses are on the edge of economic success.

11:33 AM -- Mr. Erik Jensen, representing the Colorado Contractors Association (CCA), testified in support of SB 09-108. He stated that small businesses have invested what they can to be successful, and without additional funding, more contractors will become unemployed.

The following additional witnesses testified:

11:44 AM -- Ms. Tamara Ward, Denver Metro Chamber of Commerce, testified in support of the bill. She distributed a brochure on business leadership in Colorado (Attachment M). She said the proposed bill provides a stable source of funding for a much-needed sector of Colorado's economy.

11:49 AM -- Mr. Joe Kiely, representing Ports-to-Plains, testified about the bill. He said it is important to increase transportation funding to rural Colorado.

11:53 AM -- Mr. Mark Mehalko, representing Move Colorado, testified in support of the bill. His comments addressed the importance of mileage-based programs to provide a source of revenue.

11:59 AM -- Mr. Chris Meza, representing Meza Construction company, testified in support of the SB 09-108. He stated that transportation funding is critical to the success of small minority-owned businesses

12:02 PM -- Mr. Antonio Ledezma, representing Jalisco International Inc., testified in support of the bill. He said that increased vehicle fees will provide jobs to repair declining infrastructure. He stated that in the past few months, his company has been forced to layoff 8 percent of its workforce. Mr. Ledezma is concerned about individuals who will have difficulty supporting their families due to the lack of available work.

12:06 PM -- Ms. Stephanie Thomas, Colorado Environmental Coalition, testified in support of the bill. She discussed mileage-based revenue increases and the importance of addressing the infrastructure needs of Colorado for public safety.

12:09 PM -- Ms. Gini Pingenot, representing Colorado Counties Inc., testified in favor of SB 09-108. Her comments addressed transportation revenue to local jurisdictions and strengthening the relationship between the state and county governments.

12:11 PM -- Mr. Russell George, CDOT, testified in support of the bill. Mr. George responded to questions about the need for additional commissions. He said that adding outside citizens to commissions helps to provide new perspectives. He also addressed questions related to fees, impacts on motorists, pilot programs, and constitutional issues related to taxes.

12:26 PM

Senator Sandoval closed public testimony on SB 09-108.


BILL:	SB09-108
TIME:	12:26:30 PM
MOVED:	Hudak
MOTION:	Refer SB09-108 as amended to the Committee on Appropriations. The motion passed 4-3.
SECONDED:
		VOTE
	Brophy	No
	Heath	Yes
	Isgar	Yes
	King K.	No
	Scheffel	No
	Hudak	Yes
	Sandoval	Yes
Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB09-108
TIME:	12:26:52 PM
MOVED:	Isgar
MOTION:	Adopt Amendment L.008 (Attachment D). 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


BILL:	SB09-108
TIME:	12:30:26 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.007 (Attachment I). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-108
TIME:	12:32:17 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.010 (Attachment J). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-108
TIME:	12:33:47 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.011 (Attachment K). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB09-108
TIME:	12:35:15 PM
MOVED:	King K.
MOTION:	Adopt Amendment L.012 (Attachment L). The motion failed 3-4.
SECONDED:
		VOTE
	Brophy	Yes
	Heath	No
	Isgar	No
	King K.	Yes
	Scheffel	Yes
	Hudak	No
	Sandoval	No

Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL

12:39 PM

The committee adjourned.