S_TRA_2016A 04/28/2016 11:40:29 AM Committee Summary

11:40 AM -- SB16-194



Senator Scott, prime sponsor, presented Senate Bill 16-194. This bill creates a new method for local governments to fund transportation projects by creating a state sales tax increment. A city, county, or combination of neighboring cities and counties may apply to the Colorado Department of Transportation (CDOT) to build a regional transportation project. The director of CDOT must forward the application to the Transportation Commission with a recommendation to approve, approve with changes, or deny the application. In addition to the project, the Transportation Commission approves a map of the Regional Transportation Development Corridor. The corridor includes commercial property that is undeveloped or underdeveloped because of a lack of state or regional transportation infrastructure. If the project is approved, the local government receives any state sales tax revenue collected from additional sales that occur in the corridor.



The local government must provide CDOT with the following information:

• a description of the proposed project and a map of the proposed Regional Transportation Development Corridor;

• the anticipated costs and benefits of the project;

• evidence that the Regional Transportation Development Corridor is undeveloped or underdeveloped;

• an explanation of how the project will induce commercial development;

• the estimated number and type of jobs created as a result of the project;

• the estimated state sales tax revenue increment in the corridor;

• estimated local sales and property tax revenue generated as a result of the project; and

• a plan for funding and completing the project.

Once the commission approves the application, the Department of Revenue (DOR) is provided with the map of the transportation corridor. The bill requires DOR to determine the base state sales tax revenue collected from businesses within the transportation corridor. As businesses within the corridor remit more sales taxes, the additional state sales tax revenue is distributed to the local governments that were approved by the Transportation Commission. Local governments receive the tax increment for 30 years or until any bonds are paid off.



Local governments can create an authority which can build transportation projects, enter into contracts, and issue bonds. The authority may also create an enterprise under Article X, Section 20 of the state constitution to help finance the new transportation projects. The bill does not identify a TABOR-exempt revenue source for a new enterprise. The local government, DOR, and CDOT are required to provide information to the Transportation Commission and General Assembly on the status of each project annually. In addition, this act is subject to the sunset review process of the General Assembly.



Senator Scott distributed amendments L.001 and L002 (Attachments A and B) and a fact sheet about the bill (Attachment C).



16SenateTran0428AttachA.pdf 16SenateTran0428AttachB.pdf



16SenateTran0428AttachC.pdf



11:44 AM -- Jason Dunn, representing the City and County of Broomfield, testified in support of the bill.



11:47 AM -- Charles Ozaki, representing the City and County of Broomfield, testified in support of the bill.



11:52 AM -- Eric Bergman, representing Colorado Counties, Inc., testified in support of the bill.



11:53 AM -- John Karakalokas, representing Adams County, testified in support of the bill. He distributed a letter of support (Attachment D).



16SenateTran0428AttachD.pdf



11:55 AM -- Harley Gifford, representing the town of Pueblo West, testified in support of the bill.



11:57 AM -- Nick Colglazier, representing the Colorado Competitive Council, testified in support of the bill.



11:58 AM -- Kathy Oatis, representing the Metro North Chamber of Commerce, testified in support of the bill.

12:03 PM -- HB16-1097



Senator Scott, prime sponsor, presented House Bill 16-1097. The bill allows providers of non-emergency transportation to Medicaid clients to operate under a limited regulation permit from the Public Utilities Commission (PUC). Under current law, such transportation providers must operate under a certificate of public convenience and necessity. To obtain a limited regulation permit under the bill, providers must submit an application, pay a fee, and show proof of an agreement with the Department of Health Care Policy and Financing (HCPF) regarding the provision of non-emergency transportation services. Permits for this class of provider are valid for one year.



Senator Scott responded to questions from the committee.



12:06 PM -- Gail Nehls, representing Amblicab, testified in support of the bill.



12:07 PM -- Elena Wilken, representing the Colorado Association of Transit Agencies, testified in support of the bill.



12:09 PM -- Aditi Ramaswami, representing the Colorado Coalition for the Medically Underserved, testified in support of the bill.



12:12 PM -- Sarah Clark, representing Metro Taxi, testified from a neutral position on the bill. She responded to questions from the committee.



12:15 PM -- Brian Allem, representing the Denver Regional Mobility and Access Council, testified in support of the bill.

12:19 PM



The committee adjourned.