House Committee on Finance (02/23/2006)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/23/2006	ATTENDANCE

Time:	10:15 AM to 11:42 AM	Benefield	X
		Cloer	X
Place:	HCR 0107	Crane	X
		Frangas	X
This Meeting was called to order by		Garcia	X
	Representative Vigil	Harvey	X
		Jahn	X
This Report was prepared by		Kerr	X
	Ron Kirk	Marshall	X
		Massey	X
		McCluskey	E
		Judd	X
		Vigil	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB06-1278 HB06-1287 HB06-1324		Referred to Appropriations Amended, Referred to the Committee of the Whole Laid Over

10:15 AM -- House Bill 06-1278 - Concerning the Public Reporting of Hospital Statistics

Representative Weissman, prime sponsor, explained that House Bill 06-1278 establishes the Colorado Hospital Report Card Act. The Department of Public Health and Environment must approve a comprehensive hospital information system designed to provide for the collection, compilation, analysis, and utilization of hospital-related data. Representative Weissman said that the department must develop and implement a long-range plan for making hospital performance information available to consumers and to annually report to the Governor, the General Assembly, and the public (through the internet).

After a brief committee discussion, Representative Vigil, Chairman, placed the bill on the table for action.


BILL:	HB06-1278
TIME:	10:19:36 AM
MOVED:	Cloer
MOTION:	Refer House Bill 06-1278 to the Committee on Appropriations. The motion passed on a 12-0-1 vote.
SECONDED:	Kerr
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Excused
	Judd	Yes
	Vigil	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

10:21 AM -- House Bill 06-1287 - Concerning the Investment of Public Funds

Representative Stafford, prime sponsor, explained that House Bill 06-1287 clarifies and amends existing language regarding the investment of public funds. It clarifies the duration of security maturity periods, reorganizes requirements for investing public funds in certain securities, and requires public entities to update their investment policies. Representative Stafford said that the bill includes nonprofit corporations in the definition of public entity, and specifies that funds invested for employee retirement or pensions are not public funds. She said the bill also provides additional flexibility for public entities to manage investments which could potentially increase investment earnings.

The following persons testified:

10:27 AM -- Mr. John Lefebvre, Colorado County Treasurer's Association and Adams County Treasurer, testified in support of the measure.

10:34 AM -- Mr. Glenn Scott, Colorado County Treasurer's Association, responded to committee questions and testified in support of the measure. Mr. Scott said that the bill addresses a number of out-dated statutes that guide the investment of public funds. The last time the statutes have been changed was in the early 1980s. Mr. Scott discussed and explained how reverse repurchase agreements on securities work and commented on the entities that trade and sell these investments. The committee and Mr. Scott discussed the county fee-structure and administration of county investment portfolios. Mr. Scott talked about the fees that are charged by outside vendors and said that county governments pay low fees for these transactions. The discussion continued on the bill's language on page 16 that pertains to eligible broker-dealers and the competition that insurance companies could receive from non-insurers should the language on page 16 remain in the bill.

Representative Stafford distributed amendment L.001 to committee members (Attachment A). The committee engaged in a discussion on severing the amendment and the language on lines 14 through 17 on amendment L.001. After a brief discussion, Mr. Ben Stein, Deputy State Treasurer, was called upon to respond to committee questions.

10:43 AM -- Mr. Ben Stein, Deputy State Treasurer, responded to committee questions and explained that the State Treasurer's Office was mainly involved in the technical questions generated by the bill and spoke to investment practices allowed under current law. Mr. Stein said that the bill does not make any substantive changes to current law but clarifies a number of gray areas that have developed over the years. The bill would mainly apply to county treasurers that do not have to comply with specific county-investment statutes. Mr. Stein spoke to a number of issues in amendment L.001 and discussed language that would remain in the amendment. Mr. Stein closed by saying that the amendment adds more public disclosure and transparency to the investment process for public funds. After a brief committee discussion, Mr. Scott was called back to respond to committee questions.

10:49 AM -- Mr. Scott spoke to amendment L.001 saying that the language on page 12, lines 11 through 16, applies to the sale and investment of bond proceeds. Mr. Scott continued to discuss current law and the amendment commenting on the investment practices of insurance companies when investing public funds. Provisions of the amendment limit the entities that can invest public funds.

11:05 AM -- Ms. Ester van Mourik, Office of Legislative Legal Services, responded to committee questions and commented on changing provisions in amendment L.001. After a brief committee discussion, Representative Vigil, Chairman, said that the committee would take action on the amendment by severing the amendment into two sections; severed section 1 would include lines 1 through 13 of amendment L.001 and severed section 2 would include the remaining provisions in the amendment or lines 14 through 17. The committee took action and adopted severed section 1 of amendment L.001 thus, adopting lines 1 through 13 of the amendment. After severed section 1 of amendment L.001 was adopted, House Bill 06-1287 was referred to the Committee of the Whole.


BILL:	HB06-1287
TIME:	11:18:46 AM
MOVED:	Judd
MOTION:	Moved severed section 1 of amendment L.001 (severed section 1 includes page 1, lines 1 through 13 of L.001). The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey	Excused
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1287
TIME:	11:20:03 AM
MOVED:	Judd
MOTION:	Moved a "no" vote on severed section II of amendment L.001 (severed section II includes page 1, lines 14 through 17 of L.001). The motion passed without objection by those members present. (This motion strikes lines 14 through 17 in amendment L.001).
SECONDED:	Harvey
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey	Excused
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1287
TIME:	11:20:45 AM
MOVED:	Judd
MOTION:	Refer House Bill 06-1287, as amended, to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:	Cloer
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	Yes
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Excused
	Judd	Yes
	Vigil	Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:21 AM -- House Bill 06-1324

Representative Borodkin, prime sponsor explained that under current law 49.8 percent of the funds available for distribution in the Limited Gaming Fund at the end of each fiscal year are transferred to the General Fund and 0.2 percent are transferred to the Colorado Travel and Tourism Promotion Fund. Beginning with FY 2005-06, House Bill 06-1324 eliminates the transfer to the Colorado Travel and Tourism Promotion Fund and allocates 5 percent of the General Fund share remaining after the distribution to the Local Government Gaming Impact Fund to the State Council on the Arts.

The following persons testified:

11:26 AM -- Ms. Christy Chase, Office of Legislative Legal Services, explained the distributions of money under House Bill 06-1324 to the State Council on the Arts.

11:30 AM -- Ms. Elaine Mariner, Colorado Council on the Arts, testified in support of the bill and commented on state funding for the arts. Ms. Mariner discussed the role of arts in education and commented on the economic return for state money invested in the arts. Ms. Mariner closed by discussing funding for the arts in other states such as Wyoming.

11:37 AM

The committee engaged in a brief discussion regarding money transferred under the bill and the effect on the Highway Users Tax Fund. Representative Vigil, Chairman, discussed the fiscal note and laid over the bill to allow the sponsor time to make some drafting changes.

11:42 AM

Adjourn.