House Committee on Local Government (02/10/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	02/10/2009	ATTENDANCE

Time:	01:33 AM to 03:13 PM	Acree	*
		Bradford	X
Place:	HCR 0111	Liston	X
		McKinley	X
This Meeting was called to order by		Middleton	*
	Representative Peniston	Schafer S.	X
		Tipton	X
This Report was prepared by		Vigil	X
	Raegan Robb	Waller	X
		Soper	X
		Peniston	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB09-1070 HB09-1171 HB09-1197 HB09-1203		Laid Over Referred to the Committee of the Whole Amended, Referred to the Committee of the Whole Referred to the Committee of the Whole

01:33 PM

Representative Peniston, chair, called the meeting to order.

01:34 PM -- House Bill 09-1070

Representative Peniston explained that House Bill 09-1070 was heard by the committee on February 5, 2009, and was laid over to continue witness testimony on February 10th. She explained that the committee would complete witness testimony, but the bill would be laid over to allow some of the stakeholders affected by the bill to reach a potential compromise prior to final action by the committee.

01:35 PM

Representative Fischer, prime sponsor of House Bill, concerning lands prohibited from urban renewal authorities (URAs), addressed the committee and asked that testimony proceed.

01:35 PM

Stephanie Thomas, representing the Colorado Environmental Coalition and Autobahn Colorado, testified in support of the bill and talked about misuse of the state's urban renewal law. She discussed improper uses of the urban renewal law and talked about urban renewal projects undertaken by the Denver Urban Renewal Authority. She also talked about the abuses of urban renewal through projects that implement tax increment financing (TIF).

01:41 PM

Dan Daly, Colorado Education Association, testified in support of the bill and discussed the state's obligation to pay for property tax increases to school districts in the state that result from TIF projects. Mr. Daly discussed mill levies, local tax collection by school districts, the need to protect the tax base of school districts. He explained that the bill would allow school districts to consider the impact of redirecting revenue prior to the approval of TIF projects.

01:44 PM

Landon Gates, representing the Colorado Farm Bureau and Rocky Mountain Farmers Union, testified in support of the bill and talked about the need to preserve agricultural land and also individual property rights. Mr. Gates explained that the original intent of urban renewal law was for redevelopment and not new development. He addressed questions from the committee concerning open lands and agricultural property that is dormant or fallow.

01:49 PM

Evan Goulding, Executive Director, Colorado Special District Association, testified in support of the bill. Mr. Goulding explained that the bill would make TIF projects more balanced and fair by requiring stakeholders to approve development of vacant and agricultural land considered for a TIF project. He explained that TIF projects increase the need for services, but that property tax revenue to special districts is frozen by the TIF mechanisms. He talked about the requirement in the bill that would require an impact report for special districts in order to assess the growth and development of TIF projects and determine how services in the TIF area will be provided. Mr. Goulding addressed questions regarding negotiations that currently occur between URAs and special districts for services in TIF areas.

02:00 PM

Paul Cook, Director, Colorado Fire Chiefs Association, testified in support of the bill and discussed problems with TIF projects that freeze the property taxes for special districts. He explained that TIF projects create new development, but special districts do not receive increased tax revenue in order to provide the resources for proper emergency services in developed areas.

02:06 PM

Kathay Rennels, County Commissioner, Larimer County, testified in support of the bill, talked about the intent of urban renewal law, and discussed the problems with the current definition of "blight" in state law. Commissioner Rennels discussed URAs in Larimer County and talked about the difficulty of maintaining the quality of life and service levels to taxpayers when TIF limits the amount of tax revenue collected. She responded to questions concerning notifications about TIF projects provided to local entities that are impacted and explained that current law creates a tendency for special districts to be excluded from negotiations by URAs about potential TIF projects.

02:18 PM

Representative Fischer explained that the bill would require consensus from all of the entities affected by a URA project before vacant or agricultural land can be included into the project. He talked about the need for different parties impacted by House Bill 09-1070 to reach a compromise before proceeding with amendments to the bill.

02:19 PM

The chair, Representative Peniston, laid House Bill 09-1070 was laid over for action only.

02:21 PM -- House Bill 09-1171

Representative Court, prime sponsor, presented House Bill 09-1171, concerning requirements related to the installation of manufactured homes. Representative Court discussed the bill with the committee and introduced witnesses to speak to the bill.

02:24 PM

Bruce Eisenhauer, Deputy Director, Department of Local Affairs, testified in support of House Bill 09-1171 and explained that the bill is a clean up bill following enactment of House Bill 08-1319, which set forth new requirements for the training, testing, and certification of installers of manufactured structures. He explained that House Bill 09-1171 gives the Division of Housing in the Department of Local Affairs the discretion to inspect the installation of a manufactured home if requested by the home's owner, installer, manufacturer, or retailer. Under current law, the division is required to conduct an inspection if requested. The bill also reinstates requirements that applicants provide a letter of credit, certificate of deposit, or surety bond at the time of applying for renewal, in addition to providing proof of insurance and continuing education.

02:26 PM

Meghan Pfanstiel, representing the Rocky Mountain Association, testified in support of the bill and discussed some of the requirements for applicants at the time of applying for renewal of, including: liability insurance, a letter of credit, certificate of deposit, or surety bond.


BILL:	HB09-1171
TIME:	02:28:09 PM
MOVED:	Soper
MOTION:	Moved to refer House Bill 09-1171 to the Committee of the Whole. The motion passed on a 11-0 vote.
SECONDED:	Schafer S.
		VOTE
	Acree	Yes
	Bradford	Yes
	Liston	Yes
	McKinley	Yes
	Middleton	Yes
	Schafer S.	Yes
	Tipton	Yes
	Vigil	Yes
	Waller	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:29 PM -- House Bill 09-1197

Representative McNulty, presented sponsor of House Bill 09-1197, concerning a requirement that the Division of Housing report data regarding home foreclosures in the state. He explained that the bill requires the Division of Housing in the Department of Local Affairs to collect and compile home foreclosure data from each county in the state and to issue a quarterly report. He explained that the report would be the official foreclosure data for the state and used when citing state foreclosure statistics. Representative McNulty addressed questions concerning current reporting by the state and the sunset provision in the bill. He explained that the state currently compiles a statewide report from county trustees, but that the bill would provide official foreclosure data and statistics for the state report.

02:38 PM

Sunny Banka, representing the Colorado Association of Realtors, testified in support of the bill and talked about problems with third party reporting entities that are creating inaccuracies in foreclosure reports. Ms. Banka discussed the need to have a central reporting source through the Division of Housing and addressed questions concerning the collection of foreclosure statistics collected by third party reporting entities from county trustees.

02:41 PM

Barbara Walker, representing the Independent Bankers of Colorado, testified in support of the bill and explained the need for banks to refer to official statistics that are compiled by the state.

02:43 PM

Carol Snyder, representing the Colorado Public Trustees Association, testified in support of the bill and explained that the Colorado public trustee system provides for neutral mediation between lenders and borrowers, which is a unique system in the country. She explained that foreclosures are completed through the judicial systems or private trustees in other states. Ms. Snyder talked about the reports that are currently provided to the Division of Housing and the process for county trustees to report foreclosures throughout the state. She talked about problems that counties may experience when reporting foreclosures and how inaccuracies in this information can weaken the real estate market. She explained that the bill would help clean up the process of reporting foreclosures and explained prepared Amendment L.001 (Attachment A).

02:55 PM

Fran Coleman, representing the Colorado Mortgage Lenders Association, testified in support of the bill and talked about the need for accurate accounting of foreclosures in the state for the lending industries. Ms. Coleman talked about problems with inaccuracies in foreclosure reporting and the need to have accurate statistics produced by the state. She discussed concerns with prepared amendment L.001 (Attachment A) with the committee members.


BILL:	HB09-1197
TIME:	03:01:15 PM
MOVED:	Tipton
MOTION:	Moved amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:	Acree
		VOTE
	Acree
	Bradford
	Liston
	McKinley
	Middleton
	Schafer S.
	Tipton
	Vigil
	Waller
	Soper
	Peniston

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: TIE


BILL:	HB09-1197
TIME:	03:01:27 PM
MOVED:	Soper
MOTION:	Moved conceptual amendment on Page 2, line 17, after "QUARTER", insert "THE SAME QUARTER OF THE PREVIOUS YEAR,". (and throughout all similar provisions in the bill). The motion passed without objection.
SECONDED:	Liston
		VOTE
	Acree
	Bradford
	Liston
	McKinley
	Middleton
	Schafer S.
	Tipton
	Vigil
	Waller
	Soper
	Peniston

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1197
TIME:	03:03:33 PM
MOVED:	Tipton
MOTION:	Moved conceptual amendment on Page 3, line 24, strike "IN A MANNER TO BE DETERMINED BY THE" and, line 25, strike "DIVISION,". The motion passed without objection.
SECONDED:	Middleton
		VOTE
	Acree
	Bradford
	Liston
	McKinley
	Middleton
	Schafer S.
	Tipton
	Vigil
	Waller
	Soper
	Peniston

Not Final YES: 0 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1197
TIME:	03:04:37 PM
MOVED:	Waller
MOTION:	Moved to refer House Bill 09-1197, as amended, to the Committee of the Whole. The motion passed on a 11-0 vote.
SECONDED:	Liston
		VOTE
	Acree	Yes
	Bradford	Yes
	Liston	Yes
	McKinley	Yes
	Middleton	Yes
	Schafer S.	Yes
	Tipton	Yes
	Vigil	Yes
	Waller	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:09 PM -- House Bill 09-1203

Representative Tipton, prime sponsor, presented House Bill 09-1203, concerning the reclassification of Montezuma County. Representative Tipton discussed the need for Montezuma County to be reclassified as a Class III county in state law. He responded to questions from the committee members concerning the need for the reclassification and the increase in the salaries of elected county officials.


BILL:	HB09-1203
TIME:	03:13:30 PM
MOVED:	Tipton
MOTION:	Moved to refer House Bill 09-1203 to the Committee of the Whole. The motion passed on a 11-0 vote.
SECONDED:	Bradford
		VOTE
	Acree	Yes
	Bradford	Yes
	Liston	Yes
	McKinley	Yes
	Middleton	Yes
	Schafer S.	Yes
	Tipton	Yes
	Vigil	Yes
	Waller	Yes
	Soper	Yes
	Peniston	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:13 PM

The committee adjourned.