Date: 04/08/2010

Final
BILL SUMMARY for HB10-1375

HOUSE COMMITTEE ON EDUCATION

Votes: View--> Action Taken:
Moved to refer House Bill 10-1375 to the CommitteePASS



01:30 PM -- House Bill 10-1375

Representative Riesberg, sponsor of House Bill 10-1375, concerning granting the Metropolitan State College of Denver (MSCD) the power of eminent domain, presented the bill to the committee. He explained that there is an increasing need to build and plan capacity at the college. He noted that the bill will allow MSCD to use Build America bonds, which are funded through federal stimulus dollars, to finance some projects.


01:33 PM

Representative Summers asked about eminent domain for community colleges, specifically asking if the board has the authority of eminent domain or if individual schools hold the power. Representative Riesberg responded that each school is granted the power individually. Representative Summers expressed concern of future use of eminent domain power, noting that he supports the proposed project, a hotel learning center, that will be funded through the Build America bonds. Representative Riesberg responded that he is not aware of problems with the usage of eminent domain. Representative Middleton also weighed in on the discussion, noting that the change in law is technical, reflecting the statutory change that separated MSCD from the Auraria Higher Education Campus board. Representative Tipton asked if there is another manner to make the school qualify for the bonds. Representative Riesberg responded that there are three ways to be eligible as a political subdivision: having the right to tax; the right to exercise police powers; or the right to eminent domain. MSCD chose to seek legislative approval for eminent domain as other higher education governing boards currently have that power.


01:37 PM

The following people testified on the bill:

01:38 PM -- Dawn Bookhardt, representing the MSCD Board of Trustees, testified in support of the bill and noted that nearly 80 percent of the alumni live in Colorado. She discussed the mission of the school. She also addressed Representative Tipton's question about other avenues the board examined in attempting to qualify for the Build America bonds. She also noted the other benefits of being a political subdivision, explaining the ARRA bonding options and other financial opportunities.

01:41 PM -- Stephanie Chichester, representing MSCD as the financial advisor to the school, testified in support of the bill and discussed the financial aspects of the hotel learning center project. She offered to answer questions from the committee.


01:42 PM

Representative Tipton asked the witnesses to discuss the rationale in requesting eminent domain as opposed to using current assets and funding the project. Ms. Chichester responded that the college has access to single A rates, but it cannot take advantage of ARRA bonds, which are subsidized by the 35 percent by the federal government. Representative Massey asked Ms. Brookhardt if the school has identified any properties that would be captured through the eminent domain process. Ms. Brookhardt responded that there are no current plans to capture properties by eminent domain and the board does not intend to use the power other than to access the ARRA funding. She further stated that providing this power provides a level-playing field with the other higher education institutions in the state. Representative Peniston asked if the hotel learning center will be used by the public and take reservations, and whether the hotel has been named yet. Ms. Brookhardt responded that the hospitality building has not been named. Representative Riesberg also discussed the student success building project, which will provide space for first year programs, administration office building, and other uses.

01:48 PM -- Kailei Higginson, representing MSCD as the student trustee on the board, testified in support of the bill. He noted the importance of the bill to students in allowing the school to access affordable bonds instead of increasing tuition and fees to fund the construction projects.
BILL:HB10-1375
TIME: 01:50:48 PM
MOVED:Massey
MOTION:Moved to refer House Bill 10-1375 to the Committee of the Whole. The motion passed on a 12-1 vote.
SECONDED:Middleton
VOTE
Benefield
Yes
Massey
Yes
McNulty
Yes
Middleton
Yes
Murray
Yes
Peniston
Yes
Scanlan
Yes
Schafer S.
Yes
Summers
Yes
Tipton
No
Todd
Yes
Solano
Yes
Merrifield
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS



01:50 PM

The committee adjourned.