Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:02/17/2009
ATTENDANCE
Time:09:38 AM to 10:38 AM
Apuan
X
Benefield
X
Place:LSB A
Gerou
X
Kefalas
X
This Meeting was called to order by
Kerr A.
X
Representative Judd
Lambert
X
Roberts
X
This Report was prepared by
Summers
*
Ron Kirk
Swalm
X
Frangas
*
Judd
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB09-1269
HB09-1222
Amended, Referred to Appropriations
Referred to Appropriations


09:38 AM -- House Bill 09-1269 - Concerning a State Rainy Day Fund


Representative Ferrandino, prime sponsor, distributed amendment L.001 (Attachment A). He explained that House Bill 09-1269 creates the Rainy Day Account within the Controlled Maintenance Trust Fund and specifies a revenue source for the account and how the account can be used. It also creates the Controlled Maintenance Account within the trust fund and renames the trust fund to the Controlled Maintenance and Rainy Day Fund.

09HouseFin0217AttachA.pdf

Representative Ferrandino noted that the bill transfers all the money in the Controlled Maintenance Trust Fund – currently about $1.7 million – to the Controlled Maintenance Account on July 1, 2009. The Controlled Maintenance Account will be used in the same manner the Controlled Maintenance Trust Fund is used under current law – the interest earnings from the trust fund are used for controlled maintenance projects. Interest and income earnings from the Rainy Day Account will be credited to the Controlled Maintenance Account to be used for controlled maintenance projects. Representative Ferrandino said that this is the right time to create a Rainy Day Account. He noted that the bill is only effective if SB 09-108 (Faster) passes and is an important bill during bad economic times. He closed by saying that as the state recovers from the recession, it will fill the fund.

The committee discussed scenarios for the bill should the Faster bill not pass and discussed the language of the bill on Page 24, line 20 related to SB 09-108. The committee continued the discussion on the question of whether the Rainy Day Account should be in the State Constitution rather than creating a statutory account. Representative Ferrandino responded by discussing the two-thirds standard for access to revenue in the account. He noted that currently, cash funds are the state's Rainy Day Account. The discussion continued on the safeguards related to accessing the fund.




The discussion continued on the 6 percent limit and other bills that receive funding when the state has enough revenue to spend up to the limit.

The following person testified:

10:15 AM --
Mr. Rich Jones, Bell Policy Center, testified in support of the bill. Mr. Jones explained how other states balanced their budgets when economic downturns occur and compared Colorado's options to these states. He closed by noting that House Bill 09-1269 is a good idea that will work for Colorado in the future.


10:26 AM
BILL:HB09-1269
TIME: 10:26:59 AM
MOVED:Benefield
MOTION:Moved amendment L.001. The motion passed without objection by those members present.
SECONDED:Judd
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB09-1269
TIME: 10:29:35 AM
MOVED:Benefield
MOTION:Refer House Bill 09-1269, as amended, to the Committee on Appropriations. The motion passed on a 9-2 vote.
SECONDED:Kefalas
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
No
Swalm
Yes
Frangas
No
Judd
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:35 AM -- House Bill 09-1222 -- Concerning the Administration of Appropriated Moneys

Representative Ferrandino, prime sponsor, explained the provisions of the bill and distributed a fact sheet to the members (Attachment B). After a brief committee discussion, the bill was placed on the table for action, no amendments were offered.

09HouseFin0217AttachB.pdf























10:36 AM
BILL:HB09-1222
TIME: 10:36:56 AM
MOVED:Kefalas
MOTION:Refer House Bill 09-1222 to the Committee on Appropriations. The motion passed on a 11-0 vote.
SECONDED:Benefield
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


10:38 AM

Adjourn.