House Committee on Agriculture, Livestock, & Natural Resources (03/09/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Date:	03/09/2015	ATTENDANCE

Time:	01:29 PM to 05:42 PM	Arndt	X
		Becker J.	X
Place:	HCR 0107	Brown	X
		Buck	X
This Meeting was called to order by		Coram	X
	Representative Vigil	Danielson	X
		Ginal	X
This Report was prepared by		Lawrence	X
	Meghan O'Connor	Lebsock	X
		Mitsch Bush	X
		Saine	X
		Becker K.	X
		Vigil	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1243 HB15-1234 HB15-1222		Referred to Finance Amended, Referred to Finance Amended, Referred to the Committee of the Whole

01:32 PM -- HB 15-1243

Representative Vigil, sponsor, presented House Bil 15-1243, which establishes the Parks for Future Generations Trust Fund (parks trust fund), amends the Wildlife for Future Generations Trust Fund (wildlife trust fund), and establishes funding sources for both funds. The bill also gives the Parks and Wildlife Commission (Commission) the authority to receive and expend moneys made available to the Division of Parks and Wildlife (division) for the purpose of mitigating or offsetting adverse impacts of development on state parks or wildlife habitat without requiring further legislation.

The following persons testified on the bill:

01:34 PM -- Bob Broscheid, Colorado Parks and Wildlife, spoke in support of the bill. Mr. Broscheid explained that the bill would dedicate moneys received from energy or mineral royalties or leases of energy or mineral rights on wildlife properties to the Wildlife for Future Generations Trust Fund. Mr. Broscheid responded to questions regarding the uses of the parks trust fund and the monies received from energy and mineral royalties, as well as what is considered a park property. Committee discussion ensued.

01:57 PM -- Steve Cassen, CFO Colorado Parks and Wildlife, informed the committee that he was available to answer technical questions.

01:58 PM -- Craig Walters, Vice President of Operations, Anadarko Petroleum, spoke in support of the bill and explained that Anadarko Petroleum has a long standing relationship with the State of Colorado and St. Vrain State Park. Mr. Walters responded to questions from the committee regarding oil drilling in and around St. Vrain State Park. Mr. Walters distributed a map depicting the land leased from the state by Anadarko Petroleum near St. Vrain State Park (Attachment A).

150309 AttachA.pdf

02:10 PM

The testimony was closed, and Representative Vigil concluded his comments on the bill.


BILL:	HB15-1243
TIME:	02:11:00 PM
MOVED:	Vigil
MOTION:	Refer House Bill 15-1243 to the Committee on Finance. The motion passed on a vote of 12-1.
SECONDED:	Mitsch Bush
		VOTE
	Arndt	Yes
	Becker J.	Yes
	Brown	Yes
	Buck	Yes
	Coram	Yes
	Danielson	Yes
	Ginal	Yes
	Lawrence	Yes
	Lebsock	Yes
	Mitsch Bush	Yes
	Saine	No
	Becker K.	Yes
	Vigil	Yes

Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:12 PM -- HB 15-1234

Representative Mitsch Bush, sponsor, presented House Bill 15-1234, which creates an income tax deduction for individuals and corporations that lease an agricultural asset, defined as land, crops, livestock, livestock facilities, farm equipment, grain storage, or irrigation equipment, to a beginning farmer or rancher satisfying certain qualifications. Representative Mitsch Bush distributed Amendment L.001 (Attachment B) and Amendment L.002 (Attachment C). Greg Sobetski, Colorado Legislative Council Economist, answered questions from the committee regarding the definition of a "C corporation." Esther van Mourik, Office of Legislative Legal Services, responded to questions from the committee regarding the technical aspects of the bill, including the difference between C corporations and S corporations as they relate to the income tax deduction in the bill. Committee discussion ensued regarding the application of the income tax deduction.

150309 AttachB.pdf

150309 AttachC.pdf

02:36 PM

The following persons testified on the bill:

02:36 PM -- Bill Midcap, External Affairs Director, Rocky Mountain Farmer's Union, spoke in support of the bill. Mr. Midcap explained how the bill would attempt to increase the amount of beginning farmers and ranchers in the state by granting lessors an income tax deduction for leasing the land. Mr. Midcap responded to questions from the committee.

02:41 PM -- Nathan Weathers, Colorado Farm Bureau, spoke in support of the bill and explained how he and his family would put the income tax deduction to use. Mr. Weathers responded to questions from the committee regarding the generational transfer of his family's agricultural assets.

02:50 PM -- Jim Rubingh, Colorado Agricultural Development Authority (CADA), spoke in support of the bill and stated that the tax incentive would compliment existing beginning farmer programs. Mr. Reuben explained that the CADA beginning farmer program is one incentive that helps new farmers start, and the tax incentive program would be another avenue for new farmer to more easily enter into the industry.

03:01 PM -- Michael Baute, representing himself, spoke in support of the bill and explained how he would benefit from the income tax deduction that the bill would provide. Mr. Baute responded to questions from the committee.

03:07 PM -- Jo Stanko, representing herself and the Stanko Ranch, spoke in support of the bill and explained that she would use this tax incentive to lease out agricultural land and cattle. Ms. Stanko explained that she supports beginning farmers leasing from established farmers and ranchers and that leasing the land helps to ensure that the land remain in production.

03:20 PM -- Ken Ransford, representing himself, does not have a position on the bill but offered his expertise as a certified public accountant (CPA) to the committee and answered several questions regarding the income tax deduction provisions in the bill.

03:22 PM

Representative Mitsch Busch offered L.001 and explained the amendment.


BILL:	HB15-1234
TIME:	03:22:55 PM
MOVED:	Mitsch Bush
MOTION:	Adopt amendment L.001. The motion passed without objection.
SECONDED:	Ginal
		VOTE
	Arndt
	Becker J.
	Brown
	Buck
	Coram
	Danielson
	Ginal
	Lawrence
	Lebsock
	Mitsch Bush
	Saine
	Becker K.
	Vigil

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Mitsch Bush offered L.002. Her motion was withdrawn after committee discussion on the amendment.

03:27 PM

Ms. van Mourik presented Amendment L.003 (Attachment D) to the committee and explained the amendment.

150309 AttachD.pdf


BILL:	HB15-1234
TIME:	03:31:23 PM
MOVED:	Mitsch Bush
MOTION:	Adopt amendment L.003. The motion passed without objection.
SECONDED:	Saine
		VOTE
	Arndt
	Becker J.
	Brown
	Buck
	Coram
	Danielson
	Ginal
	Lawrence
	Lebsock
	Mitsch Bush
	Saine
	Becker K.
	Vigil

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Mitsch Bush offered Amendment L.004 (Attachment E).

150309 AttachE.pdf


BILL:	HB15-1234
TIME:	03:39:32 PM
MOVED:	Mitsch Bush
MOTION:	Adopt amendment L.004. The motion passed on a vote of 12-1.
SECONDED:	Ginal
		VOTE
	Arndt	Yes
	Becker J.	Yes
	Brown	Yes
	Buck	Yes
	Coram	Yes
	Danielson	Yes
	Ginal	Yes
	Lawrence	Yes
	Lebsock	Yes
	Mitsch Bush	Yes
	Saine	No
	Becker K.	Yes
	Vigil	Yes

YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

Representative Mitsch Bush concluded her comments on the bill.


BILL:	HB15-1234
TIME:	03:41:14 PM
MOVED:	Mitsch Bush
MOTION:	Refer House Bill 15-1234, as amended, to the Committee on Finance. The motion passed on a vote of 12-1.
SECONDED:	Lebsock
		VOTE
	Arndt	Yes
	Becker J.	Yes
	Brown	Yes
	Buck	Yes
	Coram	Yes
	Danielson	Yes
	Ginal	Yes
	Lawrence	Yes
	Lebsock	Yes
	Mitsch Bush	Yes
	Saine	No
	Becker K.	Yes
	Vigil	Yes

Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:44 PM -- HB 15-1222

Representative KC Becker, sponsor, presented House Bill 15-1222, concerning an authorization that allows the Colorado Water Conservation Board (CWCB) to select up to 12 pilot projects for the board's acquisition of water efficiency savings for instream flow use without the need for a water court-decreed change of water right. The CWCB may approve up to five pilot projects in any one water division, but the projects are limited to divisions four, five, six, and seven. The bill provides that the CWCB will establish criteria and guidelines for the pilot projects and specifies procedures for the CWCB's consideration of pilot project applications, including ways to resolve claims of injury to other water rights through the imposition of terms and conditions to prevent injury. By December 31, 2025, the CWCB must file a report with the General Assembly that evaluates and makes recommendations regarding the pilot project's operation.

The following persons testified on the bill:

03:48 PM -- James Eklund, representing the Colorado Water Conservation Board (CWCB) and the Department of Natural Resources (DNR), spoke in support of the bill. Mr. Eklund explained the aspects of Senate Bill 14-023, which was vetoed by the governor in 2014, and explained aspects of House Bill 15-1222. Mr. Eklund explained that several groups collaborated in order to develop House Bill 15-1222 and explained technical aspects of the water efficiency savings pilot projects. Mr. Eklund responded to questions from the committee regarding potential injury to water rights by the pilot projects, the power of the CWCB in relation to the bill, and water inefficiencies.

04:11 PM -- Ken Ransford, representing himself, spoke in support of the bill and responded to questions from the committee regarding potential injury to water users downstream caused by the pilot projects.

04:17 PM

Representative Becker answered questions from the committee regarding which party would have to prove potential injury and who would have to pay for water court costs if it is determined that there is injury.

04:26 PM -- Phyllis Snyder and Nick Colglazier, Colorado Farm Bureau, testified against the bill. Mr. Colglazier gave the committee background on the Farm Bureau's position on the bill. Ms. Snyder further explained why the Farm Bureau is opposed to the bill.

04:33 PM -- Chris Tresse, Colorado River Water Conservation District, Southwestern Colorado River Water Conservation District, Colorado Cattleman's Association, spoke in support of the bill. Mr. Tresse responded to questions from the committee regarding potential benefits of flood irrigation, the definition of efficiency water savings as it relates to a water right, and nonconsumptive water rights. Mr. Tresse answered questions about who decides whether an injury occurs, who would be responsible for court costs, and whether there was unanimous support from the Colorado River Water Conservation District.

04:52 PM -- Aaron Citron, Environmental Defense Fund, testified in support of the bill. He discussed Senate Bill 14-023 and how the House Bill 15-1222 will be beneficial. Mr. Citron answered questions about the environmental impacts that the water efficiency savings may have.

05:02 PM -- Kevin Rein, Deputy State Engineer, Division of Water Resources, responded to questions from the committee regarding the CWCB approval process provided for in the bill, the process of determining whether the pilot projects cause injury to senior water right holders, and the collaboration between the State Engineer's Office and the CWCB. Mr. Rein explained that if injury occurs after a project has already begun, the CWCB would discontinue that project.

05:16 PM -- Stephanie Scott, Trout Unlimited, spoke in support of the bill and explained how the bill would benefit conservation efforts. Ms. Scott answered questions from the committee regarding the amount of instream flow necessary to preserve the environment.

05:22 PM -- Linda Bassey, Chief of Stream Lake Protection Section, CWCB, responded to questions from the committee regarding the minimum amount of instream flows necessary to preserve the environment. Ms. Bassey explained how the CWCB makes that determination.

05:27 PM

Representative Becker moved Amendment L.001 (Attachment F) and Amendment L.002 (Attachment G) and explained the amendments. Representative Becker responded to questions from the committee.

150309 AttachF.pdf

150309 AttachG.pdf


BILL:	HB15-1222
TIME:	05:31:44 PM
MOVED:	Becker K.
MOTION:	Adopt amendment L.002. The motion passed without objection.
SECONDED:	Arndt
		VOTE
	Arndt
	Becker J.
	Brown
	Buck
	Coram
	Danielson
	Ginal
	Lawrence
	Lebsock
	Mitsch Bush
	Saine
	Becker K.
	Vigil

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Becker responded to questions from the committee regarding Amendment L.001.


BILL:	HB15-1222
TIME:	05:33:47 PM
MOVED:	Becker K.
MOTION:	Adopt amendment L.001. The motion passed on a vote of 7-6.
SECONDED:	Arndt
		VOTE
	Arndt	Yes
	Becker J.	No
	Brown	No
	Buck	No
	Coram	No
	Danielson	Yes
	Ginal	Yes
	Lawrence	No
	Lebsock	Yes
	Mitsch Bush	Yes
	Saine	No
	Becker K.	Yes
	Vigil	Yes

YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:34 PM

Representative Becker concluded her comments on the bill.


BILL:	HB15-1222
TIME:	05:35:17 PM
MOVED:	Becker K.
MOTION:	Refer House Bill 15-1222, as amended, to the Committee of the Whole. The motion passed on a vote of 7-6.
SECONDED:	Arndt
		VOTE
	Arndt	Yes
	Becker J.	No
	Brown	No
	Buck	No
	Coram	No
	Danielson	Yes
	Ginal	Yes
	Lawrence	No
	Lebsock	Yes
	Mitsch Bush	Yes
	Saine	No
	Becker K.	Yes
	Vigil	Yes

Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:42 PM

The committee adjourned.