First Regular Session
Sixty-second General Assembly
LLS NO. 99-0194.01 Gregg Fraser SENATE BILL 99-003
STATE OF COLORADO
BY SENATOR Teck
FINANCE
A BILL FOR AN ACT
101 CONCERNING GOVERNMENTAL EFFECTIVENESS, AND, IN CONNECTION
102 THEREWITH, PROVIDING FOR THE CREATION OF A TASK FORCE TO
103 STUDY THE EFFICIENCY, EFFECTIVENESS, AND NECESSITY OF STATE
104 AND LOCAL GOVERNMENTS AND THE COMMISSIONING OF A REVIEW
105 AND ANALYSIS OF COLORADO'S TOTAL TAX REVENUES, TAX
106 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
November 1, 2001.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Title 2, Colorado Revised Statutes, is amended BY
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 THE ADDITION OF A NEW ARTICLE to read:
2 ARTICLE 8
3 State and Local Governmental Efficiency and Fiscal Policies
4 2-8-101. Legislative declaration. (1) THE GENERAL ASSEMBLY
5 HEREBY FINDS AND DECLARES THAT:
6 (a) THE OPERATION OF GOVERNMENT AT THE STATE AND LOCAL
7 LEVELS SHOULD BE CONDUCTED IN A MANNER THAT IS MOST COST
8 EFFICIENT AND EFFECTIVE;
9 (b) GOVERNMENT AT ALL LEVELS SHOULD BE MORE RESPONSIVE
10 TO THE NEEDS OF THE PEOPLE OF COLORADO AND MORE EFFICIENT IN ITS
11 USE OF RESOURCES;
12 (c) TO ACHIEVE MORE EFFICIENT AND COST-EFFECTIVE
13 GOVERNMENT, THE GENERAL ASSEMBLY HAS REDUCED STATE SERVICES
14 AND CUT COSTS TO THE EXTENT FEASIBLE. THE GENERAL ASSEMBLY NOW
15 CONSIDERS IT NECESSARY TO EXAMINE THE STRUCTURE OF GOVERNMENT,
16 AT BOTH THE STATE AND LOCAL LEVEL, IN ORDER TO IDENTIFY WAYS IN
17 WHICH GOVERNMENT CAN BE MORE EFFICIENT AND COST EFFECTIVE; AND
18 (d) STATE GOVERNMENT AND LOCAL GOVERNMENTS THAT PROVIDE
19 DUPLICATIVE SERVICES AND PERFORM SIMILAR FUNCTIONS SHOULD BE
20 CONSOLIDATED TO THE GREATEST EXTENT FEASIBLE TO ACHIEVE
21 ECONOMIES OF SCALE.
22 (2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:
23 (a) THE STATE OF COLORADO AND THE LOCAL GOVERNMENTS OF
24 COLORADO HAVE EXPERIENCED MANY ECONOMIC, POLITICAL, AND
25 FINANCIAL CHANGES SINCE THE LAST COMPREHENSIVE REVIEW AND
26 ANALYSIS OF STATE AND LOCAL TAX STRUCTURE AND POLICY WAS
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1 COMPLETED IN 1959; AND
2 (b) CERTAIN INEQUITIES EXIST WITHIN THE CURRENT STATE AND
3 LOCAL TAX SYSTEMS THAT RESULT IN UNINTENDED CONSEQUENCES BY THE
4 COMBINED EFFECT OF RECENTLY ADOPTED CONSTITUTIONAL PROVISIONS
5 AND OTHER CHANGES IN FISCAL POLICIES.
6 (3) THEREFORE, THE GENERAL ASSEMBLY DECLARES THAT:
7 (a) IT IS APPROPRIATE AND NECESSARY TO CREATE A TASK FORCE
8 TO STUDY AND REVIEW THE EFFICIENCY AND EFFECTIVENESS OF STATE AND
9 LOCAL GOVERNMENTS, INCLUDING THE NECESSITY OF ALL EXISTING
10 GOVERNMENTAL SUBDIVISIONS, AND TO MAKE RECOMMENDATIONS TO THE
11 GENERAL ASSEMBLY FOR IMPROVING THE EFFICIENCY AND EFFECTIVENESS
12 OF GOVERNMENT AND FOR DECREASING OR ELIMINATING THE
13 SUBDIVISIONS OF GOVERNMENT THAT INTERFERE WITH THE EFFICIENT AND
14 EFFECTIVE DELIVERY OF GOVERNMENTAL SERVICES. THE GENERAL
15 ASSEMBLY FURTHER DECLARES THAT IT IS NECESSARY TO COMMISSION A
16 THOROUGH REVIEW AND ANALYSIS OF THE TOTAL TAX REVENUES, TAX
17 EXPENDITURES, AND FISCAL POLICIES OF GOVERNMENTS IN COLORADO.
18 (b) AS A RESULT OF THIS STUDY, IT MAY BE DETERMINED WHETHER
19 ANY STATE AND LOCAL GOVERNMENT TAX POLICY, FISCAL POLICY, OR
20 GOVERNMENT ORGANIZATION OR STRUCTURE SHOULD BE MODIFIED AND,
21 IF SO, HOW SUCH POLICY, ORGANIZATION, OR STRUCTURE SHOULD BE
22 MODIFIED TO ENSURE THAT STATE AND LOCAL GOVERNMENTS PROVIDE
23 NEEDED SERVICES AND PROGRAMS IN THE MOST EFFICIENT AND EFFECTIVE
24 MANNER POSSIBLE AND ARE FUNDED BY AN EQUITABLE AND STABLE
25 FINANCE SYSTEM.
26 2-8-102. Governmental efficiency task force - creation - duties.
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1 (1) THERE IS HEREBY CREATED A TASK FORCE FOR THE STUDY AND
2 REVIEW OF THE EFFICIENCY AND EFFECTIVENESS OF STATE AND LOCAL
3 GOVERNMENTS. THE TASK FORCE SHALL CONSIST OF TWENTY-ONE
4 MEMBERS. THE GOVERNOR SHALL APPOINT SEVEN MEMBERS. THE
5 SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE
6 SENATE SHALL EACH APPOINT SEVEN MEMBERS.
7 (2) THE TASK FORCE MEMBERS SHOULD HAVE A BROAD RANGE OF
8 EXPERIENCE SO AS TO REPRESENT THE DIVERSITY OF COLORADO'S
9 CITIZENRY. TO THAT END, EACH APPOINTING AUTHORITY SHALL APPOINT
10 AT LEAST ONE MEMBER FROM EACH CONGRESSIONAL DISTRICT, AT LEAST
11 ONE OF WHICH SHALL RESIDE ON THE WESTERN SLOPE. AT LEAST TWO
12 MEMBERS APPOINTED BY EACH APPOINTING AUTHORITY SHALL HAVE
13 EXPERIENCE AS AN ELECTED OFFICIAL AT THE LOCAL GOVERNMENT LEVEL.
14 THE REMAINING MEMBERS OF THE TASK FORCE APPOINTED BY EACH
15 APPOINTING AUTHORITY SHOULD HAVE THE KIND OF EXPERIENCE THAT NOT
16 ONLY REFLECTS THE DIVERSITY OF COLORADO'S CITIZENRY AND BUSINESS
17 COMMUNITY BUT THAT WILL BE VALUABLE IN EVALUATING THE SERVICES,
18 FUNCTIONS, AND NECESSITY OF STATE AND LOCAL GOVERNMENTS.
19 (3) EACH MEMBER OF THE TASK FORCE SHALL SERVE AT THE
20 PLEASURE OF SUCH MEMBER'S APPOINTING AUTHORITY. MEMBERS SHALL
21 RECEIVE FOR EACH DAY ACTUALLY ENGAGED IN THE DUTIES OF THE TASK
22 FORCE A PER DIEM AMOUNT OF FIFTY DOLLARS, TOGETHER WITH ALL
23 ACTUAL AND NECESSARY TRAVEL AND SUBSISTENCE EXPENSES TO BE PAID
24 AFTER THE SAME ARE INCURRED. MILEAGE FEES SHALL BE ALLOWED AS
25 PROVIDED IN SECTION 24-9-104, C.R.S.
26 (4) THE APPOINTMENT AUTHORITIES SHALL MAKE THEIR INITIAL
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1 APPOINTMENTS TO THE TASK FORCE BY SEPTEMBER 1, 1999. THE TASK
2 FORCE SHALL HOLD ITS FIRST MEETING BY NOVEMBER 1, 1999.
3 (5) THE TASK FORCE SHALL HAVE THE FOLLOWING DUTIES:
4 (a) TO EVALUATE THE OVERALL EFFECTIVENESS AND EFFICIENCY
5 OF STATE AND LOCAL GOVERNMENTS IN PROVIDING SERVICES TO THE
6 CITIZENS OF COLORADO AND TO MAKE RECOMMENDATIONS TO IMPROVE
7 OVERALL GOVERNMENTAL EFFECTIVENESS AND EFFICIENCY;
8 (b) TO MAKE RECOMMENDATIONS FOR REDUCING OR ELIMINATING
9 SUBDIVISIONS OF GOVERNMENT THAT INTERFERE WITH THE EFFECTIVE AND
10 EFFICIENT DELIVERY OF GOVERNMENTAL SERVICES, SO LONG AS SUCH
11 DECREASE OR ELIMINATION DOES NOT NEGATIVELY AFFECT THE CITIZENS
12 RECEIVING THOSE SERVICES. IN DEVELOPING THESE RECOMMENDATIONS,
13 THE TASK FORCE SHALL:
14 (I) EVALUATE THE NECESSITY OF ALL EXISTING GOVERNMENTAL
15 SUBDIVISIONS, SUCH AS COUNTY GOVERNMENTS, MUNICIPAL
16 GOVERNMENTS, AND SPECIAL DISTRICTS; AND
17 (II) CONSIDER WHETHER THE CITIZENS OF COLORADO WOULD BE
18 BETTER SERVED WITHOUT ALL OF THE CURRENT GOVERNMENTAL
19 SUBDIVISIONS;
20 (c) TO MAKE RECOMMENDATIONS CONCERNING WHAT LEVEL OF
21 GOVERNMENT COULD BEST PROVIDE THE GOVERNMENTAL SERVICES
22 CURRENTLY BEING PROVIDED TO THE CITIZENS OF COLORADO. IN MAKING
23 THESE RECOMMENDATIONS, THE TASK FORCE SHALL CONSIDER WHETHER
24 RESTRUCTURING STATE AND LOCAL GOVERNMENTS WOULD SERVE THE
25 CITIZENS OF COLORADO BETTER THAN MAINTAINING THE EXISTING
26 GOVERNMENTAL STRUCTURES.
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1 (d) TO REVIEW, ANALYZE, AND MAKE RECOMMENDATIONS
2 CONCERNING ANY ADDITIONAL ISSUES THE TASK FORCE CONSIDERS
3 APPROPRIATE AND PERTINENT TO THE RESTRUCTURING OF GOVERNMENT
4 OR IMPROVING THE OVERALL EFFECTIVENESS AND EFFICIENCY OF STATE
5 AND LOCAL GOVERNMENT;
6 (e) TO COMMUNICATE WITH AND OBTAIN INPUT FROM CITIZENS AND
7 GROUPS THROUGHOUT THE STATE SERVED BY STATE AND LOCAL
8 GOVERNMENTS;
9 (f) TO PREPARE AN INTERIM REPORT FOR THE GENERAL ASSEMBLY
10 BY FEBRUARY 1, 2001. THE INTERIM REPORT SHALL INCLUDE ANY INITIAL
11 FINDINGS OF THE TASK FORCE, A LIST OF THE ISSUES THE TASK FORCE WILL
12 EXAMINE IN THE FINAL REPORT, AND WHAT STEPS ARE NECESSARY TO
13 EXAMINE THOSE ISSUES. AFTER COMPLETING THE INTERIM REPORT, THE
14 TASK FORCE MAY REQUEST ADDITIONAL FUNDING FROM THE GENERAL
15 ASSEMBLY TO COMPLETE THE FINAL REPORT AS DESCRIBED IN THE INTERIM
16 REPORT.
17 (g) TO PREPARE A FINAL REPORT AND MAKE RECOMMENDATIONS
18 TO THE GENERAL ASSEMBLY BY NOVEMBER 1, 2001. SUCH REPORT SHALL
19 INCLUDE A SUGGESTED STRATEGY FOR EDUCATING THE PUBLIC ON ANY
20 RECOMMENDED CHANGES TO THE LAW THAT REQUIRE A VOTE OF THE
21 PEOPLE.
22 2-8-103. Staff support for task force. (1) THE DIRECTOR OF
23 RESEARCH OF THE LEGISLATIVE COUNCIL AND THE DIRECTOR OF THE
24 OFFICE OF LEGISLATIVE LEGAL SERVICES SHALL SUPPLY STAFF ASSISTANCE
25 TO THE TASK FORCE AS THEY DEEM APPROPRIATE. THE DIRECTOR OF
26 RESEARCH OF THE LEGISLATIVE COUNCIL AND THE DIRECTOR OF THE
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1 OFFICE OF LEGISLATIVE LEGAL SERVICES MAY CONTRACT WITH PRIVATE OR
2 PUBLIC ENTITIES TO PROVIDE APPROPRIATE STAFF ASSISTANCE TO THE TASK
3 FORCE. THE TASK FORCE MAY ALSO ACCEPT STAFF SUPPORT FROM THE
4 PRIVATE SECTOR.
5 (2) NOTHING IN THIS SECTION SHALL PRECLUDE THE EXPENDITURE
6 OF ADDITIONAL STATE MONEYS FOR ANY DIRECT OR INDIRECT COSTS
7 ASSOCIATED WITH THE DUTIES OF THE TASK FORCE SET FORTH IN THIS
8 ARTICLE.
9 2-8-104. Study of tax revenues and expenditures. (1) THE
10 GENERAL ASSEMBLY HEREBY COMMISSIONS A THOROUGH REVIEW AND
11 ANALYSIS OF THE TOTAL TAX REVENUES, TAX EXPENDITURES, AND FISCAL
12 POLICIES OF STATE AND LOCAL GOVERNMENTS IN COLORADO. THE
13 OBJECTIVES OF SUCH REVIEW AND ANALYSIS SHALL BE:
14 (a) TO PRESENT AND REVIEW TOTAL EXPENDITURE AND REVENUE
15 TRENDS, INCLUDING THE TAXES CURRENTLY USED, FOR STATE AND LOCAL
16 GOVERNMENTS. THIS REVIEW SHALL INCLUDE AN EVALUATION OF THE
17 OVERALL EFFECTIVENESS AND IMPACT OF STATE AND LOCAL GOVERNMENT
18 FISCAL POLICIES;
19 (b) TO REVIEW THE NATURE AND GROWTH POTENTIAL OF
20 COLORADO'S ECONOMY THAT AFFECTS BOTH THE AMOUNTS AND PATTERNS
21 OF PRESENT AND FUTURE PUBLIC EXPENDITURES;
22 (c) TO GENERALLY DEFINE AND MEASURE THE OVERALL STATE AND
23 LOCAL TAX BURDEN ON TAXPAYERS;
24 (d) TO EVALUATE STATE AND LOCAL TAXES INDIVIDUALLY,
25 INCLUDING RATES, AND THE TAX STRUCTURE AS A WHOLE IN TERMS OF
26 THEIR FAIRNESS IN DISTRIBUTING THE TAX BURDEN AMONG TAXPAYERS
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1 AND THE CAPACITY OF SUCH TAXES TO PRODUCE A STEADY AND ADEQUATE
2 REVENUE FOR THE FUTURE ESTIMATED NEEDS OF BOTH STATE AND LOCAL
3 GOVERNMENTS;
4 (e) TO CRITICALLY EXAMINE STATE AND LOCAL RELATIONS
5 INSOFAR AS THEY AFFECT THE STATE'S RESPONSIBILITY TO PROVIDE LOCAL
6 GOVERNMENTS WITH REVENUE SOURCES THAT ARE COMMENSURATE WITH
7 THEIR ASSIGNED FUNCTIONS;
8 (f) TO CONSIDER ANY OTHER FACTORS OR INFORMATION
9 APPROPRIATE OR NECESSARY IN EVALUATING THE STATE AND LOCAL
10 GOVERNMENT TAX STRUCTURE OR FISCAL POLICIES; AND
11 (g) TO RECOMMEND CHANGES IN THE STATE AND LOCAL
12 GOVERNMENT TAX STRUCTURE AND FISCAL POLICIES NECESSARY TO
13 REMOVE INEQUITIES IN THE TAX BURDEN AND TO PRODUCE REVENUES
14 ADEQUATE TO MEET COLORADO'S CURRENT AND ANTICIPATED FUTURE
15 GROWTH DEMANDS.
16 (2) THE DIRECTOR OF RESEARCH OF THE LEGISLATIVE COUNCIL
17 MAY EITHER CONTRACT FOR OR CONDUCT THE REVIEW AND ANALYSIS
18 COMMISSIONED IN SUBSECTION (1) OF THIS SECTION. THE REVIEW AND
19 ANALYSIS SHALL BE COMPLETED AND SUBMITTED TO THE GENERAL
20 ASSEMBLY ON OR BEFORE NOVEMBER 1, 2001.
21 2-8-105. Repeal of article. THIS ARTICLE IS REPEALED, EFFECTIVE
22 JULY 1, 2002.
23 SECTION 2. Safety clause. The general assembly hereby finds,
24 determines, and declares that this act is necessary for the immediate
25 preservation of the public peace, health, and safety.