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SENATE JOURNAL

Sixty-second General Assembly

STATE OF COLORADO

First Regular Session

23^rd Legislative Day Thursday, January 28, 1999

Call to By the President at 9:00 a.m.

Order

Prayer By the chaplain, Reverend Glen E. Hamlyn, Rocky Mountain Cathedral.

Roll Call Present--Total, 29.

Absent/Excused--Lacy, Martinez, Pascoe, Perlmutter, Rupert, Wham--Total, 6.

Present later--Martinez, Pascoe, Rupert, Wham.

Quorum The President announced a quorum present.

Reading of On motion of Senator Epps,, reading of the Journal of January 27^th was

Journal dispensed with and the Journal stands approved as corrected by the Secretary.

SENATE SERVICES REPORT

Senate Correctly printed: SB 99-173.

Services

COMMITTEE OF REFERENCE REPORT

Finance After consideration on the merits, the committee recommends that HJR99-1006 be

amended as follows, and as so amended, be referred to the Senate for final action:

Amend engrossed joint resolution, page 2, strike lines 3 and 4;

line 5, before "estimate", insert "certification of its";

strike lines 7 through 14;

line 27, strike "estimates of spending" and substitute "estimate of

allowable state general fund appropriations";

line 33, strike "estimates of spending" and substitute "estimate of

allowable state general fund appropriations".

Page 3, line 7, strike "allowable state fiscal";

strike lines 8 through 10.

Page 1, line 103, strike "SPENDING" and substitute "GENERAL FUND

APPROPRIATIONS".

INTRODUCTION AND CONSIDERATION OF RESOLUTION

HJR 99-1006 by Representatives McPherson, Tool, Berry, and Saliman; also Senators Grampsas, Lacy, Owen, and Tanner--Concerning the certification by the General Assembly of its estimate of state general fund revenues and allowable state spending for the 1999-2000 budget year.

(Printed in House Journal, January 18, pages 145-147.)

Senator Blickensderfer moved to suspend Senate Rule 15(c).

A two-thirds majority of those elected to the Senate having voted in the affirmative, Senate

Rule 15(c) was suspended and Immediate Consideration granted.

Amendment No. 1, Finance Committee Amendment

(Printed in Senate Journal, January 28, page 121.)

A majority of all members elected to the Senate having voted in the affirmative, the amendment was adopted.

On motion of Senator Blickensderfer, the Resolution, as amended, was ADOPTED by the following roll call vote:

YES 32		NO 0		EXCUSED 3		ABSENT 0
Anderson	Y	Evans	Y	Matsunaka	Y	Tanner	Y
Andrews	Y	Feeley	Y	Musgrave	Y	Tebedo	Y
Arnold	Y	Grampsas	Y	Nichol	Y	Teck	Y
Blickensderfer	Y	Hernandez	Y	Owen	Y	Thiebaut	Y
Chlouber	Y	Hillman	Y	Pascoe	Y	Wattenberg	Y
Congrove	Y	Lacy	E	Perlmutter	E	Weddig	Y
Dennis	Y	Lamborn	Y	Phillips	Y	Wham	Y
Dyer	Y	Linkhart	Y	Reeves	Y	Mr. President	Y
Epps	Y	Martinez	E	Rupert	Y

Health, After consideration on the merits, the committee recommends that SB99-006 be

Environment, amended as follows and, as so amended, be referred to the Committee of the Whole with

Welfare and favorable recommendation:

Institutions

Amend printed bill, page 3, line 12, strike "NO HEALTH MAINTENANCE ORGANIZATION" and substitute "ON AND AFTER JANUARY 1, 2000, NO HEALTH MAINTENANCE ORGANIZATION, INCLUDING A HEALTH MAINTENANCE ORGANIZATION THAT OFFERS A MEDICARE SUPPLEMENT POLICY PURSUANT TO ARTICLE 18 OF THIS TITLE, ".

Page 4, line 18, strike "(2)" and substitute "(3)";

after line 22, insert the following:

"SECTION 2.  10­18­103 (2), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

10­18­103.  Standards for policy provisions. (2)  The commissioner shall issue reasonable regulations to establish specific standards for policy provisions of medicare supplement policies and certificates. Such standards shall be in addition to and in accordance with all applicable laws under this title. No requirement of this title relating to minimum required policy benefits, other than the minimum standards contained in this article, shall apply to medicare supplement policies. The standards shall include, but need not be limited to:

(j)  CONTINUING CARE COVERAGE AS REQUIRED BY SECTION 10­16­413.5.".

Renumber succeeding section accordingly.

Health, After consideration on the merits, the committee recommends that SB99-064 be

Environment, amended as follows and, as so amended, be referred to the Committee on Appropriations

Welfare and with favorable recommendation:

Institutions

Amend printed bill, page 2, line 3, strike "FIFTEEN" and substitute "SEVENTEEN";

line 5, strike "INSURANCE.", and substitute "INSURANCE,";

line 6, strike "THE PRESIDENT OF THE SENATE SHALL APPOINT";

line 10, after "SOCIETY,", insert "A REPRESENTATIVE OF PHARMACISTS, A REPRESENTATIVE OF CONSUMERS,".

Page 3, line 21, strike "JANUARY 1" and substitute "SEPTEMBER 15".

Finance After consideration on the merits, the committee recommends that SB99-003 be

amended as follows and, as so amended, be referred to the Committee on Appropriations with favorable recommendation:

Amend printed bill, page 3, strike line 26 and substitute the following:

"2­8­102.  Legislative review committee ­ creation ­ duties. (1)  THERE IS HEREBY CREATED A LEGISLATIVE REVIEW COMMITTEE TO OVERSEE THE STUDY OF STATE AND LOCAL GOVERNMENT TAX AND FISCAL POLICIES. THE MEMBERS OF THE COMMITTEE SHALL BE RESPONSIBLE FOR CONSULTING WITH MEMBERS OF THE TASK FORCE CREATED IN SECTION 2­8­103 AND DEVELOPING A LEGISLATIVE PROPOSAL FOR CHANGES TO THE TAX AND FISCAL POLICIES OF THE STATE AND LOCAL GOVERNMENTS AND ANY RELATED CHANGES TO APPLICABLE LAW OR GOVERNMENT ORGANIZATION OR STRUCTURE.

(2)  THE MEMBERS OF THE LEGISLATIVE REVIEW COMMITTEE SHALL CONSIST OF SIX MEMBERS AS FOLLOWS:

(a)  TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES TO BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES;

(b)  ONE MEMBER OF THE HOUSE OF REPRESENTATIVES TO BE APPOINTED BY THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES;

(c)  TWO MEMBERS OF THE SENATE TO BE APPOINTED BY THE PRESIDENT OF THE SENATE; AND

(d)  ONE MEMBER OF THE SENATE TO BE APPOINTED BY THE MINORITY LEADER OF THE SENATE.

(3)  THE COMMITTEE SHALL COMPLETE THE LEGISLATIVE PROPOSAL ON OR BEFORE OCTOBER 15, 2001.

2­8­103.  Fiscal policies study task force ­ creation ­ duties. (1)  THERE IS HEREBY CREATED A TASK FORCE FOR THE STUDY OF STATE AND LOCAL GOVERNMENT TAX AND FISCAL POLICIES. THE TASK FORCE SHALL CONSIST OF TWENTY­FOUR MEMBERS AS FOLLOWS:

(a)  TWENTY MEMBERS APPOINTED BY THE GOVERNOR. OF THESE MEMBERS:

(I)  FOUR SHALL BE REPRESENTATIVES OF THE DEPARTMENT OF REVENUE, THE DEPARTMENT OF LOCAL AFFAIRS, THE DEPARTMENT OF EDUCATION, AND THE DIRECTOR OF THE OFFICE OF STATE PLANNING AND BUDGETING, WHICH ARE EXECUTIVE BRANCH DEPARTMENTS AND AGENCIES AFFECTED BY AND CHARGED WITH THE ADMINISTRATION OF STATE AND LOCAL TAX AND FISCAL POLICIES;

(II)  EIGHT SHALL BE CHOSEN FROM THE CITIZENRY OF COLORADO AND SHALL BE PERSONS KNOWLEDGEABLE ABOUT TAX AND FISCAL POLICY MATTERS AND ABOUT ONE OR MORE OF THE STATE'S VARIED AND DIVERSE ECONOMIC SECTORS AND POPULATION GROUPS AFFECTED BY TAX AND FISCAL POLICIES, INCLUDING BUT NOT LIMITED TO RETAIL BUSINESSES, MANUFACTURING, HOMEBUILDERS, REALTORS, AGRICULTURE, AND CITIZENS. IN MAKING THE APPOINTMENTS, CONSIDERATION SHALL BE GIVEN TO THE DIVERSITIES OF EXPERTISE, INTERESTS, AND GEOGRAPHY.

(III)  EIGHT SHALL BE LOCAL GOVERNMENT REPRESENTATIVES, OF WHICH TWO SHALL REPRESENT COUNTIES, TWO SHALL REPRESENT MUNICIPALITIES, TWO SHALL REPRESENT SCHOOL DISTRICTS, AND TWO SHALL REPRESENT SPECIAL DISTRICTS. THE GOVERNOR SHALL CONSULT WITH THE STATEWIDE ASSOCIATION OF EACH LOCAL GOVERNMENT SPECIFIED IN THIS SUBPARAGRAPH (III) PRIOR TO APPOINTING ANY REPRESENTATIVE OF SUCH LOCAL GOVERNMENT.

(b)  TWO MEMBERS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES WHO SHALL NOT BE MEMBERS OF THE GENERAL ASSEMBLY; AND

(c)  TWO MEMBERS APPOINTED BY THE PRESIDENT OF THE SENATE WHO SHALL NOT BE MEMBERS OF THE GENERAL ASSEMBLY.

(2)  MEMBERS OF THE TASK FORCE SHALL SERVE AT THE PLEASURE OF THE APPOINTING AUTHORITY. MEMBERS SHALL SERVE WITHOUT COMPENSATION.

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

(a)  TO EVALUATE THE OVERALL EFFECTIVENESS AND IMPACT OF STATE AND LOCAL GOVERNMENT TAX AND FISCAL POLICIES, INCLUDING THE EFFECT OF GOVERNMENT ORGANIZATION AND STRUCTURE ON SUCH POLICIES, IDENTIFY TAX AND FISCAL POLICIES AND RELATED GOVERNMENT ORGANIZATION AND STRUCTURE IN NEED OF REVISION, AND PROVIDE GUIDANCE AND MAKE RECOMMENDATIONS TO THE LEGISLATIVE REVIEW COMMITTEE ESTABLISHED PURSUANT TO SECTION 2­8­102;

(b)  TO COMMUNICATE WITH AND OBTAIN INPUT FROM GROUPS THROUGHOUT THE STATE AFFECTED BY STATE AND LOCAL GOVERNMENT TAX AND FISCAL POLICIES;

(c)  TO CREATE SUBCOMMITTEES OR SUBGROUPS AS NECESSARY, WHICH GROUPS MAY INCLUDE INDIVIDUALS NOT SERVING ON THE TASK FORCE, IN ORDER TO AID IN THE COMPLETION OF THE TASK FORCE STUDY AND THE DEVELOPMENT OF A LEGISLATIVE PROPOSAL FOR CHANGES TO STATE AND LOCAL TAX AND FISCAL POLICIES, INCLUDING CHANGES TO LAW AND GOVERNMENT ORGANIZATION AND STRUCTURE THAT RELATE TO SUCH POLICIES;

(d)  TO REPORT AT LEAST MONTHLY TO THE MEMBERS OF THE LEGISLATIVE REVIEW COMMITTEE ESTABLISHED PURSUANT TO SECTION 2­8­102.

(4)  THE TASK FORCE SHALL HAVE THE FOLLOWING ADDITIONAL DUTIES:

(a)  TO MAKE RECOMMENDATIONS FOR REDUCING 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.

(b)  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.

(c)  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 STATE AND LOCAL GOVERNMENT;

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

(e)  TO PREPARE AN INTERIM REPORT FOR THE GENERAL ASSEMBLY BY FEBRUARY 1, 2001. 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.

(f)  TO PREPARE A FINAL REPORT AND MAKE RECOMMENDATIONS TO THE GENERAL ASSEMBLY BY NOVEMBER 1, 2001. SUCH REPORT SHALL INCLUDE A SUGGESTED STRATEGY FOR EDUCATING THE PUBLIC ON ANY RECOMMENDED CHANGES TO THE LAW THAT REQUIRE A VOTE OF THE PEOPLE.

2­8­104.  Issues to be addressed by task force study and proposed legislation. (1)  THE TASK FORCE STUDY AND THE PROPOSED LEGISLATION FOR CHANGING STATE AND LOCAL GOVERNMENT FISCAL POLICIES SHALL ADDRESS ISSUES, INCLUDING BUT NOT LIMITED TO THE FOLLOWING:

(a)  ISSUES CONCERNING EQUITY, SUCH AS:

(I)  THE PROPERTY TAX BURDEN OF RESIDENTIAL PROPERTY IN COMPARISON TO THE PROPERTY TAX BURDEN OF THE DIFFERENT CLASSES OF NONRESIDENTIAL PROPERTY;

(II)  THE APPLICATION OF AGRICULTURAL LAND CLASSIFICATION FOR PROPERTY TAX PURPOSES;

(III)  THE EXISTING BASES FOR SALES AND USE TAXES AND THE POTENTIAL APPLICATION OF SALES AND USE TAX TO TRANSACTIONS CURRENTLY EXEMPT OR NOT OTHERWISE SUBJECT TO TAXATION;

(IV)  THE EXISTING BASES FOR INDIVIDUAL AND CORPORATE INCOME TAX;

(V)  THE EXISTENCE OF DIFFERING RATES AND BASES FOR SALES AND USE TAXES ACROSS TAXING JURISDICTIONS AND THE RESULTING TAX REPORTING PROBLEMS OF VENDORS;

(VI)  THE INCREASING OCCURRENCE OF GOVERNMENT COMPETITION FOR DEVELOPMENT THAT GENERATES INCREASED TAX REVENUES;

(VII)  THE EXISTENCE OF REGIONAL AND JURISDICTIONAL DIFFERENCES AND DISPARITIES RELATING TO THE ABILITY OF GOVERNMENTS TO GENERATE REVENUES AND TO CIRCUMSTANCES CONTRIBUTING TO INCREASED DEMAND FOR SERVICES;

(VIII)  THE TAX BURDEN ON EXISTING TAXPAYERS, BOTH INDIVIDUALS AND BUSINESSES, TO FUND COSTS ASSOCIATED WITH NEW GROWTH THAT DOES NOT PRIMARILY BENEFIT SUCH TAXPAYERS;

(IX)  THE PROPERTY TAX BURDEN OF AND THE BENEFIT TO NONRESIDENTIAL PROPERTY FOR FINANCING PUBLIC SCHOOLS IN COMPARISON TO THE PROPERTY TAX BURDEN OF AND THE BENEFIT TO RESIDENTIAL PROPERTY FOR FINANCING PUBLIC SCHOOLS;

(X)  THE STATE'S AND SCHOOL DISTRICTS' SHARES OF FUNDING FOR PUBLIC EDUCATION;

(XI)  THE DIFFERENCES IN THE LEVEL OF FUNDING FOR EDUCATION AMONG SCHOOL DISTRICTS;

(XII)  THE RELIANCE ON LOCAL REVENUES FOR NEW CONSTRUCTION OR DEFERRED MAINTENANCE OF SCHOOL DISTRICT CAPITAL FACILITIES;

(XIII)  THE IMPACT OF FISCAL POLICIES, SUCH AS THE IMPOSITION OF SALES AND USE TAX AND BUSINESS PERSONAL PROPERTY TAX, ON CAPITAL INVESTMENT WITHIN COLORADO;

(XIV)  THE RELIANCE ON PROPERTY TAXES TO FUND LOCAL GOVERNMENT PROGRAMS AND SERVICES;

(b)  ISSUES CONCERNING STABILITY, SUCH AS:

(I)  THE CONTINUAL DECLINE IN THE ASSESSED VALUE OF PROPERTY IN TAXING JURISDICTIONS DUE TO REDUCTIONS IN THE RESIDENTIAL RATIO AND ITS IMPACT ON PROPERTY TAX REVENUES;

(II)  THE INTERACTION BETWEEN THE SEVERANCE TAX AND ITS RELATIONSHIP TO PROPERTY TAX;

(III)  THE DOUBLE­COUNTING OF INTERGOVERNMENTAL REVENUES FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION;

(IV)  THE AUTOMATIC RATCHETING DOWN OF PROPERTY TAX MILL LEVIES, TAX REVENUES, AND AGGREGATE GOVERNMENT REVENUES UNDER SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION;

(V)  THE RELIANCE ON SALES AND USE TAXES BY SOME LOCAL GOVERNMENTS TO THE EXTENT THAT DECLINES IN SALES AND USE TAX REVENUES SIGNIFICANTLY IMPAIR A GOVERNMENT'S ABILITY TO PROVIDE NECESSARY SERVICES;

(VI)  THE REQUIREMENT THAT REVENUES BE SET ASIDE AS AN EMERGENCY RESERVE UNDER SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND ITS IMPACT ON THE AMOUNT OF REVENUES AVAILABLE FOR GOVERNMENT PURPOSES;

(VII)  THE INTERACTION BETWEEN ARTICLE X OF SECTION 20 OF THE STATE CONSTITUTION AND THE GALLAGHER AMENDMENT IN SECTION 3 OF ARTICLE X OF THE STATE CONSTITUTION AND THE RESULTING IMPACT ON THE PROPERTY TAX BASE AND REVENUES;

(VIII)  THE INTERACTION BETWEEN THE VARIOUS GOVERNMENT REVENUE AND EXPENDITURE LIMITATIONS THAT HAVE BEEN ENACTED OR MODIFIED DURING THE PAST DECADE;

(c)  ISSUES CONCERNING ADDITIONAL REVENUE SOURCES, SUCH AS:

(I)  THE IMPOSITION OF IMPACT AND USER FEES TO PAY FOR ALL OR A PORTION OF THE COSTS OF SERVICES REQUIRED DUE TO GROWTH THAT ARE REASONABLY RELATED TO THE COST OF SUCH SERVICES;

(II)  THE USE OF GENERAL STATE TAX REVENUES TO SUPPORT THE STATE TRANSPORTATION SYSTEM;

(III)  POTENTIAL SHARING OF REVENUES AMONG LOCAL GOVERNMENTS AND BETWEEN THE STATE AND LOCAL GOVERNMENTS;

(IV)  THE IMPOSITION OF REAL ESTATE TRANSFER TAXES;

(V)  THE REPLACEMENT OF STATE INCOME TAX REVENUES IF THE FEDERAL INCOME TAX IS ABOLISHED IN FAVOR OF A CONSUMPTION TAX;

(d)  ISSUES CONCERNING GOVERNMENT ORGANIZATION AND STRUCTURE THAT IMPACT FISCAL POLICIES, SUCH AS:

(I)  THE EXISTENCE AND EXTENT OF OVERLAPPING OR DUPLICATIVE PROVISION OF SERVICES;

(II)  THE IMPLICATIONS OF ELIMINATION OR CONSOLIDATION OF GOVERNMENTS RELATING TO THE PROVISION OF SERVICES;

(III)  THE METHODS BY WHICH GOVERNMENTS PROVIDE SERVICES AND ANY POTENTIAL MODIFICATIONS THAT WOULD ACHIEVE THE MOST EFFICIENT AND EFFECTIVE PROVISION OF SERVICES, INCLUDING THE ELIMINATION, REDUCTION, OR PRIVATIZATION OF CERTAIN SERVICES;

(IV)  THE UTILIZATION OF INTERGOVERNMENTAL COORDINATION AND COOPERATION FOR THE PROVISION OF SERVICES.

(2)  IN PERFORMING ITS DUTIES UNDER THIS SECTION, THE TASK FORCE SHALL:

(a)  ASSEMBLE AND ANALYZE RECENT TAX STUDIES THAT HAVE COMPILED DATA ON SPECIFIC ISSUES INVOLVING FISCAL POLICIES, SUCH AS SALES TAX EXEMPTIONS, THE EFFECTS OF COMPETING CONSTITUTIONAL PROVISIONS, AND INDEBTEDNESS; AND

(b)  CONSIDER THE IMPORTANCE OF DEPENDABLE, RATIONAL, AND EQUITABLE TAX SYSTEMS THAT:

(I)  ASSURE SUSTAINABLE GROWTH IN THE STATE AS A WHOLE;

(II)  PROMOTE INTERGOVERNMENTAL COOPERATION ON ISSUES SPECIFIC TO REGIONAL GROWTH AND ITS RELATED IMPACTS;

(III)  SUPPORT EFFICIENT USE OF INFRASTRUCTURE AND SERVICES; AND

(IV)  CONSIDER THE UNIQUE PROBLEMS IN METROPOLITAN AREAS WITH REGARD TO FISCAL ISSUES, REVENUE SHARING, MUNICIPAL CHARTER LIMITS, AND SPECIAL DISTRICTS.

(3)   THE TASK FORCE SHALL IN ADDITION HAVE THE DUTY TO:

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

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

(d)  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 TAXES TO PRODUCE A STEADY AND ADEQUATE REVENUE FOR THE FUTURE ESTIMATED NEEDS OF BOTH STATE AND LOCAL GOVERNMENTS;

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

(g)  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.

2­8­105.  Private source of funding ­ staff support for tax policy study. (1)  THE TASK FORCE FOR THE STUDY OF STATE AND LOCAL GOVERNMENT TAX AND FISCAL POLICIES IS AUTHORIZED TO RECEIVE CONTRIBUTIONS, GRANTS, SERVICES, AND IN­KIND DONATIONS FROM ANY PRIVATE ENTITY TO BE EXPENDED FOR ANY DIRECT OR INDIRECT COSTS ASSOCIATED WITH THE DUTIES OF THE TASK FORCE SET FORTH IN THIS ARTICLE.

(2)  THE DIRECTOR OF RESEARCH OF THE LEGISLATIVE COUNCIL, THE DIRECTOR OF THE OFFICE OF LEGISLATIVE LEGAL SERVICES, AND THE EXECUTIVE DIRECTORS OF THE DEPARTMENTS REPRESENTED ON THE TASK FORCE SHALL SUPPLY STAFF ASSISTANCE TO THE LEGISLATIVE REVIEW COMMITTEE AS THEY DEEM APPROPRIATE. THE COMMITTEE MAY ALSO ACCEPT STAFF SUPPORT FROM THE PRIVATE SECTOR.

(3)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PRECLUDE THE EXPENDITURE OF STATE MONEYS FOR ANY DIRECT OR INDIRECT COSTS ASSOCIATED WITH THE DUTIES OF THE TASK FORCE OR THE LEGISLATIVE REVIEW COMMITTEE SET FORTH IN THIS ARTICLE.".

Strike pages 4 through 7.

Page 8, strike lines 1 through 20;

after line 22, insert the following:

"SECTION 2. Appropriation.  (1)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the legislative council, for the fiscal year beginning July 1, 1999, the sum of one hundred forty-one thousand one hundred fifty-five dollars ($141,155) and 2.5 FTE, or so much thereof as may be necessary, for the implementation of this act.

(2)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the office of legislative legal services, for the fiscal year beginning July 1, 1999, the sum of twenty thousand two hundred fifty-two dollars ($20,252) and 0.5 FTE, or so much thereof as may be necessary, for the implementation of this act.".

Renumber succeeding section accordingly.

Page 1, line 106, strike "POLICIES." and substitute "POLICIES, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.".

Finance After consideration on the merits, the committee recommends that the following be referred favorably to the Committee of the Whole: SB99-094

Finance After consideration on the merits, the committee recommends that the following be postponed indefinitely: SB99-026

Agriculture, After consideration on the merits, the committee recommends that SB99-112 be

Natural amended as follows and, as so amended be referred to the Committee of the Whole with

Resources favorable recommendation:

and Energy

Amend printed bill, page 2, strike lines 2 through 21.

strike pages 3 and 4.

Page 5, strike lines 1 through 12.

Renumber succeeding sections accordingly.

Page 5, line 23, strike "DOGS" and substitute "ANIMALS".

Page 6, line 11, strike "DOG" and substitute "ANIMAL";

strike lines 15 through 26.

Page 7, strike lines 1 and 2.

Renumber succeeding sections accordingly.

Agriculture, After consideration on the merits, the committee recommends that the following be

Natural referred favorably to the Committee of the Whole: SB99-122

Resources

and Energy

Agriculture, After consideration on the merits, the committee recommends that the following be

Natural referred favorably to the Committee of the Whole: SB99-136

Resources

and Energy

MESSAGE FROM THE HOUSE:

January 28, 1999

Mr. President:

The House has adopted and transmits herewith HJR99-1009, as printed in House Journal, January 28, 1999.

______________________________

On motion of Senator Blickensderfer, and with a majority of those elected to the Senate having voted in the affirmative, the balance of the calendar of Thursday, January 28, was laid over until Friday, January 29, retaining its place on the calendar.

______________________________

Senate in recess.

Senate reconvened.

COMMITTEE OF REFERENCE REPORTS

Education After consideration on the merits, the committee recommends that the following be referred favorably to the Committee of the Whole: SB99-139

Education After consideration on the merits, the committee recommends that the following be referred favorably to the Committee of the Whole: HB99-1043

:

Judiciary After consideration on the merits, the committee recommends that the following be referred favorably to the Committee on State, Veterans, & Military Affairs: SB99-078

Judiciary After consideration on the merits, the committee recommends that the following be referred favorably to the Committee of the Whole: SB99-101

Business After consideration on the merits, the committee recommends that the following be

Affairs referred favorably to the Committee of the Whole: SB99-135

and Labor

Business After consideration on the merits, the committee recommends that SB99-167 be

Affairs amended as follows and, as so amended, be referred to the Committee of the Whole with

and Labor favorable recommendation:

Amend printed bill, page 9, strike lines 4 through 14 and substitute the following:

"FORECLOSURE SALE OF THE PROPERTY.".

Page 10, strike lines 14 and 15 and substitute the following:

"UNDER SECTION 38-38-301, UPON THE EXPIRATION OF THE OWNER'S REDEMPTION PERIOD OR THIRTY DAYS AFTER THE DATE OF THE RECORDING OF SUCH NOTICE, WHICHEVER IS LATER. THE OMITTED LIENOR NOTICE".

Business After consideration on the merits, the committee recommends that SB99-083 be

Affairs amended as follows and, as so amended, be referred to the Committee on Appropriations

and Labor with favorable recommendation:

Amend printed bill, page 5, after line 26, insert the following:

"(e) THE UNITED STATES DEPARTMENT OF THE TREASURY, FOR PURPOSES OF ADMINISTRATION, EXAMINATION, AND ENFORCEMENT OF FEDERAL ANTI-MONEY LAUNDERING LAWS, INCLUDING, WITHOUT LIMITATION, THE FEDERAL "BANK SECRECY ACT".

Reletter succeeding paragraphs accordingly.

Page 8, line 26, strike "LAWS;" and substitute "LAWS, INCLUDING, WITHOUT LIMITATION, THE FEDERAL "BANK SECRECY ACT" AND ITS IMPLEMENTING REGULATIONS;".

Page 10, strike lines 2 and 3 and substitute the following:

"OR RACKETEERING OR ANTI-MONEY LAUNDERING LAWS, INCLUDING, WITHOUT LIMITATION, THE FEDERAL "BANK SECRECY ACT";

(b)  HAD A PROFESSIONAL OR OCCUPATIONAL LICENSE, OR THE AUTHORITY OR PERMISSION TO BE EMPLOYED IN A BANKING, SECURITIES, OR INSURANCE INSTITUTION, DENIED, SUSPENDED,".

Page 11, after line 7, insert the following:

"(b)  COMMITTED ANY ACT OR BEEN INVOLVED IN ANY ACTIVITY THAT WOULD BE GROUNDS FOR DENIAL OF A CHARTER UPON INITIAL APPLICATION PURSUANT TO SECTION 11-37.5-110;".

Reletter succeeding paragraphs accordingly.

Page 14, line 7, strike "TRANSFER" and substitute "DEPOSIT, TRANSFER, ", and strike "DEPOSITORY IN AN" and substitute "DEPOSITORY; AND";

strike line 8;

line 12, after "FRAUD," insert "MONEY LAUNDERING,";

line 19, strike "PRIVACY; AND" and substitute "PRIVACY AND PROCEDURES AND POLICIES TO PREVENT AND COMBAT MONEY LAUNDERING;"

line 22, strike "REGULATION." and substitute the following:

"REGULATION;

(V)  APPOINTMENT AND RESPONSIBILITIES OF A COMPLIANCE OFFICER WHO HAS DAY-TO-DAY RESPONSIBILITY FOR COMPLIANCE WITH ALL LAWS APPLICABLE TO A FOREIGN CAPITAL DEPOSITORY; AND

(VI) (A)  APPOINTMENT AND CONDUCT OF AN INDEPENDENT AUDITOR OF THE FOREIGN CAPITAL DEPOSITORY'S COMPLIANCE WITH ALL LAWS AND REGULATIONS APPLICABLE TO A FOREIGN CAPITAL DEPOSITORY. SUCH COMPLIANCE OFFICER SHALL BE RESPONSIBLE FOR PERFORMING REGULAR COMPLIANCE AUDITS OF THE FOREIGN CAPITAL DEPOSITORY ON A REGULAR BASIS, AT LEAST FOUR TIMES PER YEAR, AND FOR TRANSMITTING THE RESULTS OF SUCH AUDITS TO SENIOR MANAGEMENT; EXCEPT THAT, IN THE AUDITOR'S SOLE DISCRETION, IF IT APPEARS TO THE AUDITOR THAT SUSPICIOUS ACTIVITY OCCURRED WITH THE KNOWLEDGE OR COMPLICITY OF SENIOR MANAGEMENT, THE AUDITOR SHALL TRANSMIT THE RESULTS TO THE DEPARTMENT OR TO SUCH OTHER PERSON AS THE DEPARTMENT DIRECTS.

(B)  THE INDEPENDENT AUDITOR SHALL MAKE A SEPARATE ANNUAL REPORT TO THE DEPARTMENT REGARDING THE DISCHARGE OF THE DUTIES ASSIGNED BY SUB-SUBPARAGRAPH (A) OF THIS SUBPARAGRAPH (VI), INCLUDING THE PROCEDURES USED AND THE STANDARDS UPON WHICH THE AUDITOR RELIED AND ANY LEGAL OR REGULATORY COMPLIANCE DEFICIENCIES THE AUDITOR NOTED. IN ADDITION, THE INDEPENDENT AUDITOR SHALL MAKE A REPORT TO THE DEPARTMENT AT ANY TIME UPON DISCOVERY OF A SERIOUS LEGAL COMPLIANCE DEFICIENCY AND IS AUTHORIZED TO MAKE A REPORT OF ANY LEGAL COMPLIANCE DEFICIENCY, REGARDLESS OF ITS SEVERITY. THE FOREIGN CAPITAL DEPOSITORY SHALL PROVIDE THE INDEPENDENT AUDITOR FULL ACCESS TO ITS RECORDS, INCLUDING, WITHOUT LIMITATION, FINANCIAL RECORDS AND ALL OTHER MATERIALS RELEVANT TO THE CONDUCT OF THE AUDITOR'S DUTIES.".

Page 15, line 8, strike "THE COST OF" and substitute "THE DEPARTMENT'S COST OF MONITORING, SUPERVISING, AND";

line 9, strike everything through the period and substitute "DEPOSITORY.".

Page 16, line 2, after "SYSTEM", insert "OR THE UNITED STATES DEPARTMENT OF THE TREASURY";

line 7, strike "HAS" and substitute "AND OTHER PROCEDURES TO PREVENT AND COMBAT MONEY LAUNDERING HAVE";

line 10, strike "DEPOSITORY." and substitute "DEPOSITORY OR TO ANY CLIENT, AGENT, OR OTHER PARTY TO A CONTRACTUAL OR OTHER ARRANGEMENT WITH A FOREIGN CAPITAL DEPOSITORY.";

strike line 18 and substitute the following:

"WITHOUT THE ASSISTANCE OF PERSONNEL OF THE FEDERAL RESERVE SYSTEM OR THE UNITED STATES DEPARTMENT OF THE TREASURY.";

line 21, strike "SYSTEM." and substitute "SYSTEM OR THE UNITED STATES DEPARTMENT OF THE TREASURY.".

Page 17, line 4, strike "DEPARTMENT." and substitute "DEPARTMENT OR BY THE UNITED STATES DEPARTMENT OF THE TREASURY.";

strike line 15 and substitute the following:

"BY THE COMMISSIONER;

(c)  THE ACTUAL COST OF TRAVEL EXPENSES AND OTHER COSTS OF SPECIALIZED PERSONNEL OR SERVICES IN THE EVENT THAT TRAVEL OUTSIDE THIS STATE OR SPECIAL SERVICES NOT AVAILABLE WITHIN THIS STATE ARE DETERMINED NECESSARY BY THE COMMISSIONER; AND";

line 16, strike "(c)" and substitute "(d)".

Page 19, line 17, strike "DEPOSITORY AND" and substitute "DEPOSITORY,";

line 18, strike "EMPLOYEES" and substitute "EMPLOYEES, AND CANCEL ANY CONTRACTUAL OR OTHER ARRANGEMENTS WITH AGENTS, PARTNERS, OR AFFILIATES OF THE DEPOSITORY".

Page 20, strike lines 23 through 26.

Page 21, strike line 1 and substitute the following:

"(f)  EXERCISE TRUST POWERS IF SO AUTHORIZED BY THE BOARD;".

Page 24, line 1, after "ACCOUNT", insert "OR OF ASSETS HELD IN A SAFE DEPOSIT OR IN SIMILAR STORAGE".

Page 28, strike lines 13 through 18.

Renumber succeeding sections accordingly.

Page 30, line 2, strike "OR";

strike line 5 and substitute "11-37.5-209; OR";

after line 5, insert the following:

"(e)  THE FINANCIAL RECORD IS DISCLOSED AS SUPPORTING DOCUMENTATION IN CONNECTION WITH A SUSPICIOUS ACTIVITY REPORT TO THE UNITED STATES DEPARTMENT OF THE TREASURY OR TO ANY AUTHORIZED LAW ENFORCEMENT OFFICER.";

line 18, after "(4)", insert "(a)";

line 25, strike "A" and substitute "EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (b) OF THIS SUBSECTION (4), A".

Page 31, after line 6, insert the following:

"(b)  NOTHING IN PARAGRAPH (a) OF THIS SUBSECTION (4) SHALL BE CONSTRUED TO REQUIRE OR AUTHORIZE A FOREIGN CAPITAL DEPOSITORY TO DISCLOSE THE EXISTENCE OF A SUSPICIOUS ACTIVITY REPORT OR ANY INFORMATION CONTAINED IN OR RELEVANT TO A SUSPICIOUS ACTIVITY REPORT, EITHER TO THE SUBJECT OF THE REPORT OR TO ANY OTHER UNAUTHORIZED PERSON.".

Page 34, strike lines 8 through 21 and substitute the following:

"BY UP TO NINETY DAYS AT A TIME. A SEPARATE APPLICATION AND HEARING SHALL BE REQUIRED FOR EACH SUCH EXTENSION.".

Page 35, line 15, strike "SECTION;" and substitute "SECTION UNLESS AUTHORIZED BY FEDERAL LAW;".

Page 36, line 10, strike "FINANCIAL INSTITUTION" and substitute "DEPOSITORY".

Page 38, line 10, strike "THIRTY-DAY" and substitute "NINETY-DAY".

Page 41, after line 12, insert the following:

"(6)  A COURT OR ADMINISTRATIVE AGENCY MAY HOLD ADDITIONAL, SEPARATE, EX PARTE PROCEEDINGS WITH ANY FEDERAL OR STATE CRIMINAL JUSTICE AGENCY OR ANY SUPERVISORY AGENCY OR PROSECUTOR REGARDING ANY INFORMATION RELEVANT TO A MOTION MADE PURSUANT TO THIS SECTION. AN ADMINISTRATIVE AGENCY MAY SEAL ALL RECORDS CONCERNING SUCH EX PARTE PROCEEDING OR THE FACTS DISCLOSED THEREIN FOR UP TO THIRTY DAYS, AND FOR ONE OR MORE SUCCEEDING NINETY-DAY PERIODS OF EXTENSION, UPON A FINDING OF REASONABLE GROUNDS FOR BELIEVING THAT NOTICE OF THE HEARING OR OF THE FACTS DISCLOSED THEREIN, IF DISCLOSED TO THE CUSTOMER OR TO THE FOREIGN CAPITAL DEPOSITORY, WOULD SIGNIFICANTLY IMPEDE THE PROGRESS OF AN EXISTING CRIMINAL INVESTIGATION.";

line 13, strike "(6)" and substitute "(7)";

line 22, after the first "TO", insert the following:

"THE OVERALL GOAL TO BE ACHIEVED, ESPECIALLY IN REGARD TO CIVIL AND CRIMINAL ENFORCEMENT, AND SHALL NOT BE NARROWLY CONSTRUED TO REFER ONLY TO".

Page 42, line 7, strike "OR";

line 10, strike "AGENCY." and substitute the following:

"AGENCY; OR

(c)  THE TRANSFER BY THE COMMISSIONER OR THE DEPARTMENT TO ANOTHER SUPERVISORY AGENCY OR TO A CRIMINAL JUSTICE AGENCY OF INFORMATION, INCLUDING, WITHOUT LIMITATION, FINANCIAL RECORDS, OBTAINED BY THE COMMISSIONER OR THE DEPARTMENT IN THE COURSE OF THEIR DUTIES IF SUCH INFORMATION MAY BE RELEVANT TO A POSSIBLE VIOLATION OF CRIMINAL LAW. THIS PARAGRAPH (c) SHALL NOT BE CONSTRUED TO AUTHORIZE EXAMINATIONS OR INVESTIGATIONS THAT ARE NOT OTHERWISE AUTHORIZED UNDER THIS ARTICLE.".

Local After consideration on the merits, the committee recommends that the following be

Government referred favorably to the Committee of the Whole: HB99-1099

INTRODUCTION OF RESOLUTION

The following resolution was read by title:

HJR 99-1009 by Representative Gotlieb; also Senator Wham--Congratulating the Denver Broncos in the achievement of their second consecutive AFC Championship win and extending support in their quest to bring home their second super bowl trophy.

Laid over one day under Senate Rule 30(b), and placed on the calendar of Friday,

January 29.

On motion of Senator Blickensderfer, the Senate adjourned until 9:00 a.m., Friday,

January 29, 1999.

Approved:

Ray Powers

President of the Senate

Attest:

Patricia K. Dicks

Secretary of the Senate