Bill Summary for Bill Number SB10-209

Date: 05/10/2010

Final
BILL SUMMARY for SB10-209

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View-->	Action Taken:
Moved to refer Senate Bill 10-209 to the Committee	PASS

10:38 AM

The committee chair, Representative Peniston, called the meeting to order.

10:39 PM -- Senate Bill 10-209

Representative Vigil, prime sponsor, described the provisions of Senate Bill 10-209, concerning the allocation of 2009 national forest payments in counties as said payments relate to federal payments in lieu of taxes. Representative Vigil explained that the bill addresses annual payments from the federal government to 43 counties to compensate for the tax-exempt status of national forest lands and distributed a handout to the committee (Attachment A). This compensation is provided through national forest payments from the U.S. Department of Agriculture and payments-in-lieu (PILT) taxes from the Department of the Interior. Counties can deposit the money into the county's Road and Bridge Fund or provide it to public schools in the county so long as certain conditions are met.

10:39 AM

Chip Taylor, Colorado Counties, Inc., spoke in support of the bill and described federal appropriations for PILT and the federal Secure Rural Schools Act. He also described total federal payments to counties and schools in 2009 and distributed a handout to the committee (Attachment B). Mr. Taylor explained that during the 2009 legislative session, House Bill 09-1250 established the current statutory formula for national forest payments. This formula allocates 25 percent to a county's road and bridge fund, 25 percent to the public schools in the county, with the remaining 50 percent of the funds allocated by county representatives with equal participation from representatives of the board of county commissioners and the public schools in the county.

Mr. Taylor explained that the bill was drafted to address an anticipated decision from the U.S. Department of Interior (DOI) related to these allocations. He explained that under certain circumstances, if the county provides more than the mandatory 25 percent of national forest payments to the public schools in the county, the PILT payment to the county could be reduced, depending on the outcome of the decision by DOI. By waiving the 25 percent minimum allocations of national forest payments, a county may provide schools more than 25 percent and will receive credit for such allocations to the schools in the calculation of the county's PILT payment. The bill repeals the allocation waivers on July 1, 2011, and only applies to the allocation of the federal fiscal year 2009 national forest payments. The bill provides an opportunity to change the manner in which national forest payments are allocated to maximize the PILT payments for counties that may have reduced PILT payments in FY 2010-11.

Mr. Taylor addressed questions from the committee concerning how counties and schools divide national forest payments, the difference between type A and type B counties related to these distributions, and why forest payments will most likely decline over the next fiscal years, unless the federal Troubled Asset Relief Program (TARP) dollars are reallocated. Committee discussion ensued concerning federal funds provided by TARP.

10:56 AM

Bruce Caughey, representing the Colorado Association of School Executives (CASE), Colorado Association of School Boards (CASB), and the Colorado Rural Schools Caucus, spoke in support of the bill, discussed the intent of federal TARP funds, and discussed the need for Senate Bill 10-209 due to the anticipated decision from the U.S. Department of Interior related to the allocations of national forest payments. Mr. Caughey addressed questions from the committee concerning the anticipated decision from DOI and distributed a handout to the committee concerning a past ruling in Arizona that could negatively influence the distribution of national forest payments in Colorado (Attachment C).

11:01 AM

Mr. Taylor returned to the committee to address questions concerning the large differences in PILT funds received by different counties. He explained that the difference in funding is based on the amount of timber sales in each county.

11:03 AM

Representative Vigil made closing remarks on the bill.


BILL:	SB10-209
TIME:	11:04:33 AM
MOVED:	Vigil
MOTION:	Moved to refer Senate Bill 10-209 to the Committee of the Whole. The motion passed on a 11-0 roll call vote.
SECONDED:	Massey
		VOTE
	Acree	Yes
	Apuan	Yes
	Bradford	Yes
	Liston	Yes
	Massey	Yes
	McKinley	Yes
	Priola	Yes
	Schafer S.	Yes
	Vigil	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:05 AM

The committee adjourned.