Senate Committee on Agriculture and Natural Resources (04/29/2009)

Final
STAFF SUMMARY OF MEETING

SENATE COMMITTEE ON AGRICULTURE AND NATURAL RESOURCES

Date:	04/29/2009	ATTENDANCE

Time:	10:43 AM to 11:46 AM	Brophy	X
		Gibbs	*
Place:	SCR 353	Harvey	*
		Kester	X
This Meeting was called to order by		Schwartz	X
	Senator Isgar	Hodge	X
		Isgar	X
This Report was prepared by
	David Beaujon
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Conf 09-Water Quality Control Commissioner HB09-1067 HB09-1308		Favorably Refer to the Full Senate Amended, Referred to Appropriations Postponed Indefinitely

10:44 AM -- Consideration of the Governor's Appointments to the Water Quality Control Commission.

Senator Isgar welcomed the Governor's appointees to the Water Quality Control Commission and invited them to describe their experience and interest in serving on the commission (Attachment A).

10:45 AM

Robert T. Sakata of Brighton, reappointed for a term expiring February 15, 2012, described his experience and interest in serving on the commission.

10:48 AM

Gary L. Teague of Fort Morgan, reappointed for a term expiring February 15, 2012, described his experience and interest in serving on the commission.

10:50 AM

John L. Klomp of Pueblo, appointed for a term expiring February 15, 2012, described his experience and interest in serving on the commission.

10:53 AM

The appointees responded to questions from the committee about water quailty policy challenges that they expect to address during their terms.


BILL:	Conf 09-Water Quality Control Commissioner
TIME:	10:55:09 AM
MOVED:	Hodge
MOTION:	Moved to refer to the full Senate with favorable recommendations the following Governor's appointment to the Water Quality Control Commission for terms expiring February 15, 2012: Gary L. Teague, Robert T. Sakata, and John L. Klomp. The motion passed on a vote of 7-0.
SECONDED:
		VOTE
	Brophy	Yes
	Gibbs	Yes
	Harvey	Yes
	Kester	Yes
	Schwartz	Yes
	Hodge	Yes
	Isgar	Yes

Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

10:56 AM -- House Bill 09-1067

Senator White, sponsor, described the provisions of House Bill 09-1067. For income tax years 2009 through 2014, the reengrossed bill provides an income tax credit for water rights donated to the Colorado Water Conservation Board capped at $2.0 million each year. The bill specifies the maximum value of the credit, and establishes that the value of the water rights must be determined by the board with reference to a qualified appraisal. It specifies that if a credit exceeds the income tax due to the taxpayer, the excess credit may not be carried forward and must be refunded to the taxpayer. It also specifies that the credit will not be allowed in a particular income tax year if the revenue estimate indicates that the amount of the total General Fund revenues will not be sufficient to maintain the limit on appropriations specified in statute. It also grants the Department of Revenue rule-making authority to implement the bill. He also distributed Amendment L. 005 (Attachment B) and Amendment L. 006 (Attachment C)

The following persons testified on the bill:

11:02 AM -- Dan Grossman, Environmental Defense Fund, spoke in support of the bill.

11:05 AM -- Linda Bassi, Colorado Water Conservation Board (CWCB), spoke in support of the bill and Amendment L. 006.

11:06 AM -- Mr. Grossman responded to questions from the committee about House amendments to the bill concerning the repeal of the tax credit.

11:08 AM -- Esther Van Mourik, Office of Legislative Legal Services, responded to questions from the committee about the repeal of the tax credit and when the tax credit may be claimed.

11:12 AM -- Mr. Grossman responded to questions about the CWCB's instream flow water right acquisition and donation programs.

11:22 AM -- Margy Christiansen, Central Colorado Water Conservancy District and the City of Aurora, spoke in opposition to the bill. She expressed concern about the conversion of consumptive water rights to instream flows that may otherwise be available for use by irrigators or to satisfy municipal water demands.

11:27 AM

Senator White responded to Ms. Christiansen's testimony and described the impact of transbasin diversions on water users and the environment in the basin of origin. He also explained how instream flow water rights protect streams from additional depletions.

11:28 AM -- Garin Vorthmann, Colorado Farm Bureau, explained that her organization is neutral on the bill and expressed concern about bill's fiscal impact and the cost of the tax credit during the current state budget challenges.


BILL:	HB09-1067
TIME:	11:29:46 AM
MOVED:	Isgar
MOTION:	Moved Amendment L.005. The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Gibbs
	Harvey
	Kester
	Schwartz
	Hodge
	Isgar
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1067
TIME:	11:31:32 AM
MOVED:	Isgar
MOTION:	Moved Amendment L.006. The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Gibbs
	Harvey
	Kester
	Schwartz
	Hodge
	Isgar
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

11:38 AM -- Ms. Bassi returned to answer questions from the committee about appraisals and the role of the Colorado Water Conservation Board in determining the value of the donated water right.


BILL:	HB09-1067
TIME:	11:42:43 AM
MOVED:	Harvey
MOTION:	Moved to refer House Bill 09-1067 to the Committee on Appropriations, as amended. The motion passed on a vote of 6-1.
SECONDED:
		VOTE
	Brophy	No
	Gibbs	Yes
	Harvey	Yes
	Kester	Yes
	Schwartz	Yes
	Hodge	Yes
	Isgar	Yes
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:44 AM -- House Bill 09-1308

Senator Isgar, sponsor, described the provisions of House Bill 09-1308. The reengrossed bill adds the Division of Water Resources in the Department of Natural Resources to the list of entities eligible to receive first tier funding from the Operational Account of the Severance Tax Trust Fund by reducing the maximum percentage that may be allocated to the Division of Reclamation, Mining, and Safety. It also modifies appropriations made to the division in 2008 Long Bill and appropriates moneys from the Operational Account of the Severance Tax Trust Fund to the division for FY 2009-10. Senator Isgar explained that the bill was no longer needed and asked the committee to postpone the bill indefinitely.

There was no testimony.


BILL:	HB09-1308
TIME:	11:46:01 AM
MOVED:	Harvey
MOTION:	Moved to postpone indefinitely House Bill 09-1308. The motion passed on a vote of 7-0.
SECONDED:
		VOTE
	Brophy	Yes
	Gibbs	Yes
	Harvey	Yes
	Kester	Yes
	Schwartz	Yes
	Hodge	Yes
	Isgar	Yes
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:46 AM

The committee adjourned.