Click here for Fiscal Note

Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0284.01D BJA HOUSE BILL 98­1329

STATE OF COLORADO

BY REPRESENTATIVES Schauer, George, Gotlieb, and Young;

also SENATOR Ament.

FINANCE

A BILL FOR AN ACT

CONCERNING GOVERNMENTAL EFFECTIVENESS, AND, IN CONNECTION THEREWITH, PROVIDING FOR THE CREATION OF A TASK FORCE TO STUDY THE EFFICIENCY, EFFECTIVENESS, AND NECESSITY OF STATE AND LOCAL GOVERNMENTS AND THE COMMISSIONING OF A REVIEW AND ANALYSIS OF COLORADO'S TOTAL TAX REVENUES, TAX EXPENDITURES, AND FISCAL POLICIES.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Establishes a task force for the study and review of the efficiency, effectiveness, and necessity of state and local governments. Provides for the appointment of task force members and establishes their compensation. Sets forth the duties of the task force. Provides for staff support to the task force.

Commissions a thorough review and analysis of the total tax revenues, tax expenditures, and fiscal policies of Colorado. Establishes objectives for the review and analysis. Allows the director of research of the legislative council to contract for or conduct the review and analysis. Requires that the review and analysis be completed on or before December 31, 1999.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Title 2, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 8

State and Local Governmental Efficiency and Fiscal Policies

2­8­101.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)  THE OPERATION OF GOVERNMENT AT THE STATE AND LOCAL LEVELS SHOULD BE CONDUCTED IN A MANNER THAT IS MOST COST­EFFICIENT AND EFFECTIVE;

(b)  GOVERNMENT AT ALL LEVELS SHOULD BE MORE RESPONSIVE TO THE NEEDS OF THE PEOPLE OF COLORADO AND MORE EFFICIENT IN ITS USE OF RESOURCES;

(c)  TO ACHIEVE MORE EFFICIENT AND COST­EFFECTIVE GOVERNMENT, THE GENERAL ASSEMBLY HAS REDUCED SERVICES AND CUT COSTS TO THE EXTENT FEASIBLE. THE GENERAL ASSEMBLY NOW CONSIDERS IT NECESSARY TO EXAMINE THE STRUCTURE OF GOVERNMENT, AT BOTH THE LOCAL AND STATE LEVEL, IN ORDER TO IDENTIFY WAYS IN WHICH GOVERNMENT CAN BE MORE EFFICIENT AND COST­EFFECTIVE; AND

(d)  STATE GOVERNMENT AND LOCAL GOVERNMENTS THAT PROVIDE DUPLICATIVE SERVICES AND PERFORM SIMILAR FUNCTIONS SHOULD BE CONSOLIDATED TO THE GREATEST EXTENT FEASIBLE TO ACHIEVE ECONOMIES OF SCALE.

(2)  THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT THE STATE OF COLORADO AND THE LOCAL GOVERNMENTS OF COLORADO HAVE EXPERIENCED MANY ECONOMIC, POLITICAL, AND FINANCIAL CHANGES SINCE THE LAST COMPREHENSIVE REVIEW AND ANALYSIS OF STATE AND LOCAL TAX STRUCTURE AND POLICY WAS COMPLETED IN 1959.

(3)  THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT IT IS APPROPRIATE AND NECESSARY TO CREATE A TASK FORCE TO STUDY AND REVIEW THE EFFICIENCY AND EFFECTIVENESS OF STATE AND LOCAL GOVERNMENTS, INCLUDING THE NECESSITY OF ALL EXISTING GOVERNMENTAL SUBDIVISIONS, AND TO MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY FOR IMPROVING THE EFFICIENCY AND EFFECTIVENESS OF GOVERNMENT AND FOR DECREASING OR ELIMINATING THE SUBDIVISIONS OF GOVERNMENT THAT INTERFERE WITH THE EFFICIENT AND EFFECTIVE DELIVERY OF GOVERNMENTAL SERVICES. THE GENERAL ASSEMBLY FURTHER DECLARES THAT IT IS NECESSARY TO COMMISSION A THOROUGH REVIEW AND ANALYSIS OF THE TOTAL TAX REVENUES, TAX EXPENDITURES, AND FISCAL POLICIES OF GOVERNMENTS IN COLORADO.

2­8­102.  Governmental efficiency task force ­ duties. (1)  THERE IS HEREBY CREATED A TASK FORCE FOR THE STUDY AND REVIEW OF THE EFFICIENCY AND EFFECTIVENESS OF STATE AND LOCAL GOVERNMENTS. THE TASK FORCE SHALL CONSIST OF TWENTY­ONE MEMBERS. THE GOVERNOR SHALL APPOINT THE FIRST SEVEN MEMBERS. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE SHALL EACH APPOINT SEVEN MEMBERS.

(2)  THE TASK FORCE MEMBERS SHOULD HAVE A BROAD RANGE OF EXPERIENCE SO AS TO REPRESENT THE DIVERSITY OF COLORADO'S CITIZENS. TO THAT END, THE APPOINTING AUTHORITIES SHALL APPOINT AT LEAST THREE MEMBERS FROM EACH CONGRESSIONAL DISTRICT, AT LEAST THREE OF WHICH SHALL RESIDE ON THE WESTERN SLOPE. AT LEAST SEVEN MEMBERS SHALL HAVE EXPERIENCE AS AN ELECTED OFFICIAL AT THE LOCAL GOVERNMENT LEVEL. THE REMAINING MEMBERS OF THE TASK FORCE SHOULD HAVE THE KIND OF EXPERIENCE THAT NOT ONLY REFLECTS THE DIVERSITY OF COLORADO'S CITIZENS BUT THAT WILL BE VALUABLE IN EVALUATING THE SERVICES, FUNCTIONS, AND NECESSITY OF STATE AND LOCAL GOVERNMENTS.

(3)  MEMBERS OF THE TASK FORCE SHALL SERVE AT THE PLEASURE OF THE APPOINTING AUTHORITY. MEMBERS SHALL RECEIVE FOR EACH DAY ACTUALLY ENGAGED IN THE DUTIES OF THE TASK FORCE A PER DIEM AMOUNT OF FIFTY DOLLARS, TOGETHER WITH ALL ACTUAL AND NECESSARY TRAVEL AND SUBSISTENCE EXPENSES TO BE PAID AFTER THE SAME ARE INCURRED. MILEAGE RATES SHALL BE AS PROVIDED IN SECTION 24­9­104, C.R.S.

(4)  THE APPOINTMENT AUTHORITIES SHALL MAKE THEIR INITIAL APPOINTMENTS TO THE TASK FORCE BY SEPTEMBER 1, 1998. THE TASK FORCE SHALL HOLD ITS FIRST MEETING BY NOVEMBER 1, 1998.

(5)  THE TASK FORCE SHALL HAVE THE FOLLOWING DUTIES:

(a)  TO EVALUATE THE OVERALL EFFECTIVENESS AND EFFICIENCY OF STATE AND LOCAL GOVERNMENTS IN PROVIDING SERVICES TO THE CITIZENS OF COLORADO AND TO MAKE RECOMMENDATIONS TO IMPROVE THE OVERALL EFFECTIVENESS AND EFFICIENCY;

(b)  TO MAKE RECOMMENDATIONS FOR DECREASING OR ELIMINATING SUBDIVISIONS OF GOVERNMENT THAT INTERFERE WITH THE EFFECTIVE AND EFFICIENT DELIVERY OF GOVERNMENTAL SERVICES, SO LONG AS SUCH DECREASE OR ELIMINATION DOES NOT NEGATIVELY AFFECT THE CITIZENS RECEIVING THOSE SERVICES. IN DEVELOPING THESE RECOMMENDATIONS, THE TASK FORCE SHALL:

(I)  EVALUATE THE NECESSITY OF ALL EXISTING GOVERNMENTAL SUBDIVISIONS, SUCH AS COUNTY GOVERNMENTS, MUNICIPAL GOVERNMENTS, AND SPECIAL DISTRICTS; AND

(II)  CONSIDER WHETHER THE CITIZENS OF COLORADO WOULD BE BETTER SERVED WITHOUT ALL OF THE CURRENT GOVERNMENTAL SUBDIVISIONS.

(c)  TO MAKE RECOMMENDATIONS CONCERNING WHAT LEVEL OF GOVERNMENT COULD BEST PROVIDE THE GOVERNMENTAL SERVICES CURRENTLY BEING PROVIDED TO THE CITIZENS OF COLORADO. IN MAKING THESE RECOMMENDATIONS, THE TASK FORCE SHALL CONSIDER WHETHER RESTRUCTURING STATE AND LOCAL GOVERNMENTS WOULD SERVE THE CITIZENS OF COLORADO BETTER THAN MAINTAINING THE EXISTING GOVERNMENTAL STRUCTURES.

(d)  TO REVIEW, ANALYZE, AND MAKE RECOMMENDATIONS CONCERNING ANY ADDITIONAL ISSUES THE TASK FORCE CONSIDERS APPROPRIATE AND PERTINENT TO THE RESTRUCTURING OF GOVERNMENT OR IMPROVING THE OVERALL EFFECTIVENESS AND EFFICIENCY OF GOVERNMENT;

(e)  TO COMMUNICATE WITH AND OBTAIN INPUT FROM GROUPS THROUGHOUT THE STATE SERVED BY STATE AND LOCAL GOVERNMENTS;

(f)  TO PREPARE AN INTERIM REPORT FOR THE GENERAL ASSEMBLY BY MARCH 1, 1999. THE INTERIM REPORT SHALL INCLUDE ANY INITIAL FINDINGS OF THE TASK FORCE, A LIST OF THE ISSUES THE TASK FORCE WILL EXAMINE IN THE FINAL REPORT, AND WHAT STEPS ARE NECESSARY TO EXAMINE THOSE ISSUES. AFTER COMPLETING THE INTERIM REPORT, THE TASK FORCE MAY REQUEST ADDITIONAL FUNDING FROM THE GENERAL ASSEMBLY TO COMPLETE THE FINAL REPORT AS DESCRIBED IN THE INTERIM REPORT.

(g)  TO PREPARE A FINAL REPORT AND MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY DECEMBER 31, 1999.

2­8­103.  Staff support for task force. (1)  THE DIRECTOR OF RESEARCH OF THE LEGISLATIVE COUNCIL AND THE DIRECTOR OF THE OFFICE OF LEGISLATIVE LEGAL SERVICES SHALL SUPPLY STAFF ASSISTANCE TO THE TASK FORCE AS THEY DEEM APPROPRIATE. THE DIRECTOR OF RESEARCH OF THE LEGISLATIVE COUNCIL AND THE DIRECTOR OF THE OFFICE OF LEGISLATIVE LEGAL SERVICES MAY CONTRACT WITH PRIVATE OR PUBLIC ENTITIES TO PROVIDE APPROPRIATE STAFF ASSISTANCE TO THE TASK FORCE. THE TASK FORCE MAY ALSO ACCEPT STAFF SUPPORT FROM THE PRIVATE SECTOR.

(2)  NOTHING IN THIS SECTION SHALL PRECLUDE THE EXPENDITURE OF ADDITIONAL STATE MONEYS FOR ANY DIRECT OR INDIRECT COSTS ASSOCIATED WITH THE DUTIES OF THE TASK FORCE SET FORTH IN THIS ARTICLE.

2­8­104.  Study of tax revenues and expenditures. (1)  THE GENERAL ASSEMBLY HEREBY COMMISSIONS A THOROUGH REVIEW AND ANALYSIS OF THE TOTAL TAX REVENUES, TAX EXPENDITURES, AND FISCAL POLICIES OF GOVERNMENTS IN COLORADO. THE REVIEW AND ANALYSIS OBJECTIVES SHALL BE:

(a)  TO PRESENT AND REVIEW TOTAL EXPENDITURE AND REVENUE TRENDS, INCLUDING THE TAXES CURRENTLY USED, FOR STATE AND LOCAL GOVERNMENTS. THIS REVIEW SHALL INCLUDE AN EVALUATION OF THE OVERALL EFFECTIVENESS AND IMPACT OF STATE AND LOCAL GOVERNMENT FISCAL POLICIES;

(b)  TO REVIEW THE NATURE AND GROWTH POTENTIAL OF COLORADO'S ECONOMY THAT AFFECTS BOTH THE AMOUNTS AND PATTERNS OF PRESENT AND FUTURE PUBLIC EXPENDITURES;

(c)  TO GENERALLY DEFINE AND MEASURE THE OVERALL STATE AND LOCAL TAX BURDEN ON TAXPAYERS;

(d)  TO EVALUATE STATE AND LOCAL TAXES INDIVIDUALLY, INCLUDING RATES, AND THE TAX STRUCTURE AS A WHOLE IN TERMS OF THEIR FAIRNESS IN DISTRIBUTING THE TAX BURDEN AMONG TAXPAYERS AND THE CAPACITY OF SUCH TAX TO PRODUCE A STEADY AND ADEQUATE REVENUE FOR THE FUTURE ESTIMATED NEEDS OF BOTH STATE AND LOCAL GOVERNMENTS;

(e)  TO CRITICALLY EXAMINE STATE AND LOCAL RELATIONS INSOFAR AS THEY AFFECT THE STATE'S RESPONSIBILITY TO PROVIDE LOCAL GOVERNMENTS WITH REVENUE SOURCES THAT ARE COMMENSURATE WITH THEIR ASSIGNED FUNCTIONS;

(f)  TO CONSIDER ANY OTHER FACTORS OR INFORMATION APPROPRIATE OR NECESSARY IN EVALUATING THE STATE AND LOCAL GOVERNMENT TAX STRUCTURE OR FISCAL POLICIES; AND

(g)  TO RECOMMEND CHANGES IN THE STATE AND LOCAL GOVERNMENT TAX STRUCTURE AND FISCAL POLICIES NECESSARY TO REMOVE INEQUITIES IN THE TAX BURDEN AND TO PRODUCE REVENUES ADEQUATE TO MEET COLORADO'S CURRENT AND ANTICIPATED FUTURE GROWTH DEMANDS.

(2)  THE DIRECTOR OF RESEARCH OF THE LEGISLATIVE COUNCIL MAY EITHER CONTRACT FOR OR CONDUCT THE REVIEW AND ANALYSIS COMMISSIONED IN SUBSECTION (1) OF THIS SECTION. THE REVIEW AND ANALYSIS SHALL BE COMPLETED AND SUBMITTED TO THE GENERAL ASSEMBLY ON OR BEFORE DECEMBER 31, 1999.

2­8­105.  Repeal of article.  This article is repealed, effective July 1, 2000.

SECTION 2. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.