Date: 03/20/2014

Final
BILL SUMMARY for SB14-022

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer Senate Bill 14-022 to the Committee of the WPASS



11:22 AM -- SB14-022

Representative Fields came to the table and presented Senate Bill 14-022. She told the committee that the bill, which was recommended by the Economic Opportunity Poverty Reduction Task Force, allows local governments to invest public funds in certain securities offered by a community development financial institution (CDFI). Under the bill, local governments can only purchase securities from CDFIs that are legally certified, independent, nongovernmental entities in good financial standing with the U.S. Department of Treasury. The bill also makes conforming amendments to foreclosure law that allow a CDFI to act as a mortgage lender. The bill does not affect investment of state moneys by the State Treasurer, which is governed by other sections of law. Two handouts were distributed to the committee on CDFIs (Attachments A and B).

14HseFin0320AttachA.pdf14HseFin0320AttachA.pdf 14HseFin0320AttachB.pdf14HseFin0320AttachB.pdf

11:24 AM -- Jeff Seifreid, representing the Mile High Community Loan Fund, spoke in favor of the bill. He responded to questions on whether a CDFI releasing a lien will no longer need to provide a promissory note under the bill, and the differentiation between the assets and the loan activity shown in the CDFI examples in Attachment B.

11:30 AM -- Mark Radtke, representing the Colorado Municipal League (CML), spoke in support of the bill. He stated that this is a program that many cities are familiar with, and that the bill provides local governments with a voluntary option of participating in the program. Representative Fields responded to questions on a previous amendment to the bill and why CDFIs need to be better defined in Colorado statute. At the request of the committee, Mr. Seifried spoke to the definition of CDFIs under federal law, why the senate amended the bill to remove language that included municipalities under the bill, and how the committee votes were split when the bill was passed in the Senate.


11:38 AM

Mr. Radtke responded to a question on CML's reasons for supporting the bill.
BILL:SB14-022
TIME: 11:39:43 AM
MOVED:Becker
MOTION:Refer Senate Bill 14-022 to the Committee of the Whole. The motion passed on a vote of 7-2, with 3 members excused and 1 member absent.
SECONDED:Kagan
VOTE
Becker
Yes
DelGrosso
Excused
Foote
Yes
Joshi
No
Kagan
Yes
Melton
Yes
Pabon
Excused
Priola
Absent
Saine
Excused
Swalm
Yes
Wilson
No
Labuda
Yes
Court
Yes
YES: 7 NO: 2 EXC: 3 ABS: 1 FINAL ACTION: PASS

11:41 AM

The committee was adjourned.