Date: 09/14/2012

Final
Bill 2

TRANSPORTATION LEGISLATION REVIEW COMMITTEE

Votes: View--> Action Taken:
Moved that Bill 2 be included as one of the bill fTIE



10:27 AM -- Bill 2

Representative Priola presented Bill 2, concerning allocation of sales and use tax revenues, to the committee (Attachment C). Under current law most net revenue from state sales and use taxes is eventually credited to the general fund. But 2% of total general fund revenues is required to be transferred to the highway users tax fund (HUTF) for 5 consecutive fiscal years beginning after Colorado personal income increases by 5 percent or more for a calendar year (Senate Bill 09-228 transfers). Bill 2 allocates a portion of future state sales and use tax net revenue growth that occurs during fiscal years before the first fiscal year in which Senate Bill 09-228 transfers begin for improvements to state highways, county roads, and municipal streets by requiring the state treasurer to transfer $10 million per year from the general fund to the HUTF in every such fiscal year following a fiscal year in which state sales and use tax net revenue grew by 1.5 percent or more. Permanent transfers of $10 million per year begin, not once, but cumulatively after each such fiscal year in which state sales and use tax net revenue growth of 1.5 percent or more occurs. The moneys transferred to the HUTF are allocated in accordance with an existing allocation formula as follows: 60 percent to the state highway fund; 22 percent to counties; and 18 percent to municipalities. If sales and use tax net revenue growth decreases by 5 percent or more in any fiscal year, the total amount of transfers to be made for the next fiscal year and for each fiscal year thereafter is reduced by 5 percent.

12TLRC0914AttachC.pdf

Representative Priola discussed provisions of the bill and commented on future sales tax growth to the HUTF. Representative Ramirez asked for information on off-the-top HUTF funds. Senator Williams asked where the sales tax revenue goes currently. Representative Priola responded that sales tax revenue is currently allocated to the General Fund. Representative Jones expressed his concern about revenue that is allocated to the General Fund and its impact on education funding. Representative Priola responded to Representative Jones' comments.


10:34 AM

Representative Vaad commented on General Fund revenues and education funding.


10:35 AM

Representative Brown commented on the condition of roads in Colorado over the last 10 years.

The following person testified on the bill:

10:37 AM -- Mr. RJ Hicks, representing the Western State Transportation Alliance, came to the table. Mr. Hicks commented on funding of the highway system. A handout was distributed to the committee (Attachment D). Representative Vaad asked for information concerning transportation funding in Colorado. Discussion ensued concerning transportation financing.

12TLRC0914AttachD.pdf

10:45 AM

Senator Williams asked about transportation financing in Utah. Discussion ensued concerning the bill and transportation financing in Colorado.


10:50 AM

Representative Young asked about section 1(6) of the bill.


10:51 AM

Representative Hamner commented on the bill and expressed her concerns. She said that she would prefer to see more flexibility to respond to the needs of the moment. Representative Ramirez commented on the need for the bill and expressed his support for the bill.


10:53 AM

Senator Hudak commented on transportation financing in Utah.


10:56 AM

Senator King expressed his support for the bill.


10:57 AM

Representative Brown commented on the bill and expressed his support.


10:58 AM

Representative Priola presented closing comments on the bill.
BILL:Bill 2
TIME: 11:00:11 AM
MOVED:Priola
MOTION:Moved that Bill 2 be included as one of the bill forwarded to Legislative Council. The motion failed on a 8-8 vote.
SECONDED:
VOTE
Barker
Yes
Brown
Yes
Fischer
No
Hamner
No
Jones
No
King S.
Yes
Looper
Absent
Newell
Excused
Priola
Yes
Ramirez
Yes
Renfroe
Excused
Schwartz
No
Scott
Yes
Spence
Yes
Tyler
No
Williams A.
Excused
Williams S.
No
Young
No
Vaad
Yes
Hudak
No
YES: 8 NO: 8 EXC: 3 ABS: 1 FINAL ACTION: TIE