Bill Summary for Bill Number HB12-1136

Date: 04/18/2012

Final
BILL SUMMARY for HB12-1136

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View-->	Action Taken:
Moved prepared amendment L.005 (Attachment B). The	Pass Without Objection

01:32 PM -- House Bill 12-1136

The committee was called to order. A quorum was present. Representative Ramirez, prime sponsor, presented House Bill 12-1136, concerning a prohibition on the use of public land for retail sales. Representative Ramirez provided background on changes in federal law that are affecting private businesses along interstate highways, and explained the effect of the bill. The following persons testified regarding House Bill 12-1136:

01:35 PM -- Mr. Grier Bailey, representing the Colorado-Wyoming Petroleum Marketers Association, testified in support of the bill. Committee members received copies of a state statute that prohibits the state from engaging in competition with private businesses (Attachment A). Mr. Bailey discussed businesses that currently operate along interstates, and the contributions they make to communities. Prepared amendment L.005 (Attachment B), a strike-below amendment, was distributed to the committee. Mr. Bailey discussed the prohibition contained in Attachment A. Mr. Bailey explained how businesses that operate on government-owned property hold an advantage over businesses that operate on private property. Mr. Bailey responded to questions regarding the potential infringement of local control by the bill, and areas in the state where compressed natural gas accommodations are being constructed. Mr. Bailey clarified the effect of House Bill 12-1136.

01:46 PM

Mr. Bailey continued to clarify the specific prohibitions contained in the bill, and the intent of the bill. Mr. Bailey responded to questions regarding tax levels on motor fuel. Discussion ensued regarding the ability of fuel retailers to operate on a tax-exempt basis if they are located on public land, and the competitiveness of the motor fuel industry. Discussion followed regarding the effect of business accommodations operating on state-owned land in other states on local communities in these states.

01:58 PM

Discussion ensued regarding inconveniences created for consumers by historic prohibitions against operating businesses in interstate rights-of-way. Mr. Bailey responded to questions regarding the potential impact of the bill on the construction of marina fueling stations on state park lands, and an exemption in prepared amendment L.005 for accommodations operated on public lands for the benefit of persons with disabilities. Discussion returned to the inconveniences created by forcing roadside businesses away from rights-of-way. Discussion followed regarding the potential for allowing the Colorado Department of Transportation (CDOT) to lease land to private businesses to foster competition in the motor fuel industry.

02:05 PM -- Mr. Grant Nelson, representing the International Council on Shopping Centers, testified in opposition to House Bill 12-1136. Mr. Nelson supported prohibitions against allowing roadside convenience businesses to locate on public lands, and thus compete with those on private lands, but spoke against the bill based on its potential effect on other types of businesses, such as those that operate under public-private partnerships.

02:07 PM -- Mr. Kurt Morrison, representing CDOT, testified in opposition to the bill. Mr. Morrison provided background about commerce on both interstate highways and non-interstate highways, and explained how the bill will alter commerce on these roadways. Mr. Morrison discussed the benefits that would accrue to the state if CDOT were allowed to privatize rest areas or contract with private businesses along roadways. He discussed the current leasing arrangements between CDOT and private businesses. Mr. Morrison responded to questions regarding the potential effect of amendment L.005 on state departments other than CDOT. Discussion ensued regarding the contracting arrangements between CDOT and private entities allowed under current law. Mr. Morrison responded to questions regarding how bidding is conducted for contracts between CDOT and private entities, and the revenue collected by CDOT under public-private leases. Discussion followed regarding the fiscal impact of the bill in terms of these leases. Mr. Morrison mentioned other organizations opposed to the bill.

02:19 PM -- Mr. Scott Paulson, representing Silco Oil, testified in support of House Bill 12-1136. Mr. Paulson discussed the importance of the long-standing prohibition against leasing interstate right-of-way space to private retailers, and explained how allowing private businesses to operate on public lands would be detrimental to competition in the motor fuel industry. Mr. Paulson explained how allowing contracting for fueling stations on public land would erode local tax bases and create an unlevel playing field for businesses such as his. Mr. Paulson responded to questions regarding the amount of property taxes paid by his fueling stations, and the factors that determine the success of a fueling station.

02:28 PM -- Mr. Greg Fulton, representing the Colorado Motor Carriers Association, testified in support of the bill. Mr. Fulton discussed the amount of tax revenue generated and number of jobs created by fueling stations, and explained how governmental immunity may result in unintended consequences in instances where private entities operating on public lands are responsible for a mishap such as a fuel spill. Mr. Fulton responded to questions regarding the position of business-related entities on the bill, such as chambers of commerce and the National Federation of Independent Business. Mr. Fulton responded to further questions regarding a potential advantage for businesses located on public lands in the area of site improvements.

02:39 PM -- Mr. Mark Larson, representing the Colorado-Wyoming Petroleum Marketers Association, testified in support of House Bill 12-1136. Committee members received a fact sheet in support of the bill (Attachment C), and a map providing detailing an issue involving the siting of a compressed natural gas pump in Grand Junction (Attachment D). Mr. Larson provided background on previous efforts to allow leasing of public lands to private accommodations at the federal level, and explained how this allowance would erode local businesses. Mr. Larson discussed federal grants being provided for siting compressed natural gas, and the siting of a compressed natural gas pump site in Grand Junction, as shown in Attachment D. He also discussed arrangements for compressed natural gas pump sitings in Weld County, and explained how these differ from the Grand Junction situation. Mr. Larson discussed the detrimental effects on local tax bases of siting private fueling stations on public lands, and addressed issues raised during previous testimony in opposition to the bill. He suggested that "government competition" is an oxymoron. Discussion ensued regarding the bill's ramifications with respect to communities and local tax bases.

02:52 PM

Discussion ensued regarding the effects of private-sector competition on local businesses in the fueling station market, and the locational advantages in this market. Discussion returned to the unfair advantages granted to private entities sited on public lands.

03:00 PM


BILL:	HB12-1136
TIME:	03:00:09 PM
MOVED:	Court
MOTION:	Moved prepared amendment L.005 (Attachment B). The motion passed without objection.
SECONDED:	Todd
		VOTE
	Baumgardner
	Court
	Duran
	Joshi
	Liston
	Singer
	Todd
	Coram
	Kerr J.

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

03:00 PM

The bill was laid over. The committee adjourned.