House Committee on Finance (04/18/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/18/2012	ATTENDANCE

Time:	01:34 PM to 05:55 PM	Acree	X
		Beezley	X
Place:	LSB A	Conti	X
		Holbert	X
This Meeting was called to order by		Hullinghorst	X
	Representative DelGrosso	Kagan	X
		Kefalas	X
This Report was prepared by		Labuda	X
	Ron Kirk	McCann	X
		Pabon	X
		Swalm	X
		Swerdfeger	X
		DelGrosso	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-149 SB12-150 HB12-1280		Amended, Referred to the Committee of the Whole Referred to Appropriations Witness Testimony and/or Committee Discussion Only

01:35 PM -- Senate Bill 12-149 - Concerning Local Government Pension Plans

Representative Priola, prime sponsor, explained that Senate Bill 12-149 authorizes the board of a defined benefit plan or system created by a local government to modify the benefits and the service requirements for the plan when the board determines the modification is necessary to ensure the plan's sustainability. He closed by saying that modifications that affect vested benefits already accrued by members of defined benefit plans, include members who are retired or eligible to retire as of the effective date of the modifications.

The committee discussed the differences between the statutory requirements of the Public Employees' Retirement Association of Colorado (PERA) and local defined pension benefits plans.

The following persons testified:

01:48 PM -- Ms. Vicki Johnson, an attorney representing the Adams County Retirement Plan, spoke in support of the bill and distributed a handout on the Adams County Retirement Plan (Attachment A). Ms. Johnson explained the difference between defined benefit plans and defined contribution plans, and stated that this bill does not impact counties with PERA, defined contribution plans, or home-rule cities. She stated that currently, pension boards have a very limited number of options to increase plan solvency, and this bill provides an additional tool for these boards to help secure plans that are in jeopardy. She concluded by stating that the bill will not affect benefits that are already accrued and vested or those benefits of retired members. Amendment L.002 (Attachment B) was distributed to the committee.

02:21 PM -- Ms. Pamela Mathisen, representing the Adams County Retirement Plan, spoke in support of the bill. She talked about the history of the Adams County Retirement Plan and explained some problems the plan is currently facing. Ms. Mathisen talked about some details of the Adams County Plan, including employer and employee contribution rates, tiered benefits structure, vesting requirements, and benefits calculations. She concluded by stating that none of the other counties that are impacted by the bill are opposed to the changes made by the legislation.

02:30 PM -- Mr. Joseph Pacyga, representing the Adams County Retirement Plan, spoke in support of the bill and responded to committee questions about local government pension plans.

02:38 PM -- Ms. Cindy Birley, an attorney representing the Adams County Retirement Plan, spoke in support of the bill. Ms. Birley responded to committee questions about local government benefits under the pension plan systems.

02:45 PM -- Ms. Diane Hunt, representing Gabriel, Roeder & Smith, spoke in support of the bill and discussed the need for reform.

02:51 PM -- Sheriff Doug Darr, representing Adams County and Adams County Employees, spoke in support of the bill.

02:52 PM -- Mr. Frank Weddig, former state legislator and former Arapahoe County Commissioner, spoke in support of the bill.


BILL:	SB12-149
TIME:	02:56:16 PM
MOVED:	Hullinghorst
MOTION:	Moved Amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:	Labuda
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

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


BILL:	SB12-149
TIME:	02:57:42 PM
MOVED:	Holbert
MOTION:	Refer Senate Bill 12-149, as amended, to the Committee of the Whole. The motion passed on a vote of 11-0, with 2 members excused.
SECONDED:	Kefalas
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Excused
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Excused
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

02:59 PM -- Senate Bill 12-150 - Concerning Investments by the State Treasurer

Representative Sonnenberg, prime sponsor, presented Senate Bill 12-150, and distributed a handout on the bill (Attachment C). He noted that the bill seeks to better manage the state's public investment process tied to financial obligations. Representative Sonnenberg noted that it is important to look at ways to ensure that Colorado has a good credit rating. He continued by noting that stability and structure are vital to maintaining the state's strong credit rating.

The following person testified:

03:02 PM -- Mr. Brett Johnson, Deputy State Treasurer, came to the table to answer questions. He explained that the bill creates a centralized point of contact for management of Certificates of Participation (COPs) and capital leases.


BILL:	SB12-150
TIME:	03:17:25 PM
MOVED:	Acree
MOTION:	Refer Senate Bill 12-150 to the Committee on Appropriations. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Beezley
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Excused
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

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

03:21 PM -- House Bill 12-1280 - Concerning Video Lottery Terminals (VLTs)

Representative Coram and Representative Sonnenberg, prime sponsors, explained the provisions of the bill. Representative Coram began by explaining that House Bill 12-1280 authorizes the Colorado Lottery Commission to license no more than two qualified lottery retailers to install and operate video lottery terminals (VLTs) in an age-controlled area on premises that are owned or controlled by a lottery retailer. The site where video lottery terminals may be installed must be west of the continental divide and at least 100 miles from the cities of Central City, Black Hawk, and Cripple Creek, and from any facility located on Indian tribal lands at which limited gaming activities are operated.

The following persons testified.

03:56 PM -- Mr. Ed Smith, representing the Wild Card Saloon and Casino, spoke in opposition to the bill and discussed the impact VLTs will have on his casino.

04:06 PM -- Mr. Brian Watts, representing the Isle of Capri Hotel and Casino, testified in opposition to the bill and distributed a handout on VLTs (Attachment D). Mr. Watts closed by discussing the similarities of VLTs to slot machines and the impact the bill will have on gaming towns.

04:16 PM -- Mr. Grayson Robinson, Arapahoe County Sheriff, spoke in opposition to the bill and discussed the potential impact of a VLT site in Arapahoe County.

04:22 PM -- Mr. Corey Hoffman, representing the City of Black Hawk, spoke in opposition to the bill and noted that this bill expands limited gaming. He closed by saying that the bill is unconstitutional because voter approval is required to expand limited gaming.

04:26 PM -- Mr. Jon Anderson, (Holland & Hart) representing Mile High Racing, spoke in support of the bill, and discussed the constitutionality of the bill and explained the Colorado Supreme Court opinions on the issue (Attachment E).

04:47 PM -- Mr. Adam Paul, representing Protect Our Neighborhoods, testified in opposition of the bill.

04:50 PM -- Ms. Marjorie Haun, representing herself, testified in support of the bill and discussed the need to improve economic conditions in Grand Junction through the addition of a horse track and video lottery terminals. Ms. Haun responded to questions from the committee concerning the impact of poor economic conditions and gaming revenue.

04:58 PM -- Ms. Tami Smolinski, representing herself, testified in support of the bill and talked about the need to improve the economic conditions in Grand Junction. She noted that this bill will stimulate the western region's economy through the addition of a horse track and video lottery terminals.

05:05 PM -- Mr. Tyson Peterson, representing students from Front Range Community College, testified in support of the bill and responded to questions concerning funding for community college tuition from video lottery terminals as proposed by the bill.

05:08 PM -- Ms. Brandi Pollock, representing Fisher's Real Estate, testified in support of the bill and talked about the need to improve the economy on the western slope and discussed the economic potential of a horse track facility in western Colorado.

05:13 PM -- Ms. Jamie Montgomery, representing herself (small business owner of the Brickyard), testified in support of the bill and distributed a handout to the committee (Attachment F). She closed by speaking to the economic development potential should the legislation pass.

05:18 PM -- Ms. Betsy Bair, representing the Grand Junction Area Chamber of Commerce, testified in support of the bill.

05:22 PM -- Ms. Jennifer Bailey, representing Grow Our Western Economy, testified in support of the bill and distributed a handout on the bill (Attachment G).

05:30 PM -- Mr. Shannon Rushton, representing the Colorado Horse Racing Association, spoke in support of the bill and discussed how the bill will help the horse racing industry.

05:46 PM -- Mr. Brock Miera, representing himself, testified in support of the bill.

After a brief committee discussion, Representative DelGrosso, Chair, announced that House Bill 12-1280 would be laid over and heard by the committee on Wednesday, April 25,2012.

05:55 PM

The committee adjourned.