Date: 03/22/2012

Final
BILL SUMMARY for SB12-021

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved to postpone indefinitely Senate Bill 12-021.
Moved to refer Senate Bill 12-021 to the Committee		FAIL
FAIL



10:04 AM

The committee recessed.


10:07 AM -- Senate Bill 12-021

The committee returned to order. Representative Lee, prime sponsor, presented Senate Bill 12-021, concerning the creation of a financial literacy pilot program for residents of counties. Committee members received a fact sheet about financial literacy (Attachment A). Representative Lee provided background on financial literacy, and discussed the problems associated with the citizenry not being financially literate. Representative Lee outlined the program created by the bill. Representative Lee responded to questions regarding the role of Colorado State University (CSU) and counties in the pilot program, and the position of the counties on the bill. Representative Lee responded to questions regarding the curriculum for the pilot program, and the cost for participating in the program.

HseState0322AttachA.pdf

10:18 AM

Discussion ensued regarding how financial literacy is taught in the family. Representative Lee responded to questions regarding the need for legislation to institute financial literacy programming. Discussion returned to the role of counties in administering the pilot program. Representative Lee responded to questions regarding the potential for using national foreclosure settlement agreement moneys to fund the pilot program. Discussion followed regarding the nexus between foreclosures and property taxes.


10:28 AM

Discussion ensued regarding the need for younger populations to receive financial literacy education. Discussion returned to the need for legislation to institute financial literacy programs. Representative Lee responded to questions regarding potential sources of future funding for the financial literacy programming, and the long-term fiscal impact of the bill.


10:35 AM

The following persons testified regarding Senate Bill 12-021:

10:35 AM -- Ms. Nancy Porter, representing herself, testified in support of the bill. Ms. Porter discussed the need for greater financial literacy among Coloradans, and the negative impacts of the lack of financial knowledge. Ms. Porter discussed the curriculum that would be utilized in the pilot program, and the aptitude of CSU Extension in financial literacy education. Ms. Porter responded to questions regarding the need for legislation for CSU Extension to initiate a literacy program, and the potential for Colorado Counties, Inc., to participate in administering financial literacy programs at the county level. Discussion ensued regarding the importance of financial literacy, and the need for the bill to institute financial literacy programming.

10:46 AM -- Ms. Fran Coleman, representing the Colorado Mortgage Lenders Association, testified in support of Senate Bill 12-021. Ms. Coleman discussed the benefits to be derived from educating the public about personal finances, and provided an anecdote about financial scams. She discussed efforts undertaken by the mortgage industry to better educate the public about personal finances, and explained the benefits of using the CSU Extension service to teach financial literacy at the county level. Ms. Coleman discussed her experiences as a member of the Denver Welfare Reform Board. Ms. Coleman responded to questions regarding potential funding for the pilot program by the Colorado mortgage industry.


10:57 AM

Ms. Coleman responded to questions regarding the most practical way to implement the pilot program.

10:59 AM -- Mr. Bruce Eisenhauer, representing the Department of Local Affairs (DOLA), testified in support of Senate Bill 12-021. Mr. Eisenhauer discussed the role of DOLA in implementing the pilot program, and the benefits of implementing the program at the county level. Discussion ensued regarding the fiscal impact of the bill to DOLA, and whether the administration of the pilot program fits within the department's mission.

11:06 AM -- Ms. Andi Leopoldus, representing Goodwill Industries, testified in support of the bill. Ms. Leopoldus explained how financial literacy benefits low-income workers, and will help to pull them out of poverty. Ms. Leopoldus responded to questions regarding the potential for obtaining funding from financial institutions for financial literacy programs. Discussion ensued regarding administering financial literacy programs at the county level.

11:12 AM -- Renee Beauregard, representing Consumers United Association, testified in support of Senate Bill 12-021. Committee members received a fact sheet about the number of financial education programs in Colorado (Attachment B). Ms. Beauregard discussed the decline in financial literacy, and the increasing complexity of financial products. She discussed mounting debt among Americans, and cited bankruptcy and foreclosure statistics for Colorado. Ms. Beauregard discussed the lack of formal financial literacy education in Colorado, and explained how the bill would remedy this situation.

HseState0322AttachB.pdf

11:23 AM

Ms. Beauregard continued to discuss the inadequate level of financial literacy programming in Colorado. Discussion ensued regarding the pooling of resources to create a hotline for foreclosure information. Ms. Porter returned to provide clarification about the number of employees required to administer the pilot program, and the costs associated with the program. Ms. Porter responded to questions regarding potential funding sources for the pilot program and the fiscal impact of the bill based on work force requirements. Mr. Bill Zepernick, Legislative Council Staff, provided clarification about the fiscal impact of the bill.


11:30 AM

No amendments were offered to the bill. Representative Lee provided closing remarks in support of Senate Bill 12-021.
BILL:SB12-021
TIME: 11:36:35 AM
MOVED:Court
MOTION:Moved to refer Senate Bill 12-021 to the Committee on Finance with a favorable recommendation. The motion failed on a vote of 4-5.
SECONDED:Todd
VOTE
Baumgardner
No
Casso
Yes
Court
Yes
Duran
Yes
Joshi
No
Liston
No
Todd
Yes
Coram
No
Kerr J.
No
YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:SB12-021
TIME: 11:46:50 AM
MOVED:Joshi
MOTION:Moved to postpone indefinitely Senate Bill 12-021. The motion failed on a vote of 4-5.
SECONDED:Baumgardner
VOTE
Baumgardner
Yes
Casso
No
Court
No
Duran
No
Joshi
Yes
Liston
No
Todd
No
Coram
Yes
Kerr J.
Yes
YES: 4 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: FAIL



11:47 AM

The committee recessed.