Date: 02/17/2009

Final
BILL SUMMARY for HB09-1206

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Moved to Postpone Indefinitely House Bill 09-1206.
Moved to refer House Bill 09-1206 to the Committee		PASS
TIE



06:43 PM -- House Bill 09-1206

Representative Lambert, prime sponsor, presented House Bill 09-1206, concerning an electronic currency backed by reserves of precious metals. Representative Lambert discussed the perils of inflation, the benefits to the state of making and receiving payments of electronic gold for certain transactions, and the history of certain paper currencies. Representative Lambert also discussed similar legislation being forwarded in other states, and auxiliary benefits to Colorado if a number of states went to gold-based systems. Representative Lambert responded to questions regarding the bill's fiscal impact, and the position of the State Treasurer on the bill. Representative Lambert discussed the information technology infrastructure that may be necessary to facilitate the system created by House Bill 09-1206.


06:53 PM

Discussion continued regarding the fiscal impact of the bill.


06:55 PM

The following person testified regarding House Bill 09-1206:


06:56 PM -- Mr. John Lefebvre, representing the Colorado County Treasurers Association, testified in opposition to the bill. Mr. Lefebvre explained that the bill would not be a workable solution to the inflationary problems associated with fiat money, and discussed the bill's unintended consequences. Mr. Lefebvre discussed such problems as the costs associated with transacting in electronic gold, the price spread between the spot and bid prices for gold, the inability of local governments to effectively participate in the precious metals markets, and the potential for local treasurers offices to be victimized due to the housing of precious metals. Mr. Lefebvre also discussed widespread fraud in such commodities markets, and the position of the State Treasurer on House Bill 09-1206.


07:02 PM

No amendments were offered to the bill. Discussion returned to the bill's fiscal impact. Representative Lambert responded to the concerns raised during public testimony, and provided closing remarks in favor of House Bill 09-1206. Representative Lambert returned his remarks to the perils of inflation.


BILL:HB09-1206
TIME: 07:05:56 PM
MOVED:Lambert
MOTION:Moved to refer House Bill 09-1206 to the Committee on Appropriations. A substitute motion to Postpone Indefinitely the bill passed.
SECONDED:
VOTE
Casso
Court
Hullinghorst
Lambert
Massey
McCann
Excused
Miklosi
Murray
Nikkel
Labuda
Todd
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: TIE


BILL:HB09-1206
TIME: 07:06:14 PM
MOVED:Todd
MOTION:Moved to Postpone Indefinitely House Bill 09-1206. The motion passed on an 8-1-2 roll call vote.
SECONDED:Hullinghorst
VOTE
Casso
Yes
Court
Yes
Hullinghorst
Yes
Lambert
No
Massey
Excused
McCann
Excused
Miklosi
Yes
Murray
Yes
Nikkel
Yes
Labuda
Yes
Todd
Yes
Final YES: 8 NO: 1 EXC: 2 ABS: 0 FINAL ACTION: PASS




07:07 PM

The committee adjourned.