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s_tra_2016a_2016-04-28t11:40:29z0 Hearing Summary

Date: 04/28/2016



Final

BILL SUMMARY for SB16-194



SENATE COMMITTEE ON TRANSPORTATION


Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment A). The motion p

Adopt amendment L.002 (Attachment B). The motion p

Refer Senate Bill 16-194, as amended, to the Commi
Pass Without Objection

Pass Without Objection

PASS







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.pdf16SenateTran0428AttachA.pdf 16SenateTran0428AttachB.pdf16SenateTran0428AttachB.pdf



16SenateTran0428AttachC.pdf16SenateTran0428AttachC.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.pdf16SenateTran0428AttachD.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.


BILL: SB16-194
TIME: 12:01:22 PM
MOVED: Scott
MOTION: Adopt amendment L.001 (Attachment A). The motion passed without objection.
SECONDED:
VOTE
Cooke
Garcia
Todd
Scott
Baumgardner
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection






BILL: SB16-194
TIME: 12:02:04 PM
MOVED: Garcia
MOTION: Adopt amendment L.002 (Attachment B). The motion passed without objection.
SECONDED:
VOTE
Cooke
Garcia
Todd
Scott
Baumgardner
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection






BILL: SB16-194
TIME: 12:02:46 PM
MOVED: Scott
MOTION: Refer Senate Bill 16-194, as amended, to the Committee on Finance. The motion passed on a vote of 5-0.
SECONDED:
VOTE
Cooke
Yes
Garcia
Yes
Todd
Yes
Scott
Yes
Baumgardner
Yes
Final YES: 5 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS














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