S_TRA_2017A 04/04/2017 Committee Summary

02:01 PM -- SB17-205



Senator Kefalas, prime sponsor, presented Senate Bill 17-205. This bill requires the Transportation Commission to submit a ballot question in the November 2017, 2018, or 2019 election allowing voters to authorize $4 billion in Transportation Revenue Anticipation Notes (TRANs) and a 0.25 percentage point sales and use tax increase.



If approved, the TRANs allows the state to borrow up to $4 billion to accelerate construction of transportation projects and must be paid back in 20 years with a total repayment cost of $5.75 billion. At least $500 million of the TRANs proceeds must be used to extend passenger rail service along the I-25 corridor. Remaining TRANs proceeds must be used to pay for transportation projects on the Colorado Department of Transportation's (CDOT) priority list.



If approved, the state sales and use tax increases from 2.9 percent to 3.15 percent. The additional sales tax revenue would be credited to the Highway Users Tax Fund (HUTF) and paid to the State Highway Fund (SHF) to repay the bonds and fund state transportation projects. Any sales tax revenue above the bond repayment amount can be combined with existing state transportation funding.



Senator Kefalas distributed amendment L.001 (Attachment A) and amendment L.002 (Attachment B), and responded to questions from the committee.



17SenateTran0404AttachA.pdf 17SenateTran0404AttachB.pdf

















02:11 PM -- Theresa Conley, representing Conservation Colorado, testified in opposition to the bill.



02:14 PM -- Sandra Solin, representing the Northern Colorado Legislative Alliance, testified from a neutral position on the bill.



02:16 PM -- Amber Egbert, representing the Colorado Department of Revenue, was available to respond to questions.

02:18 PM



Senator Kefalas wrapped up his presentation of the bill and asked the committee to postpone it indefinitely.

02:25 PM -- SB17-211



Senator Scott, prime sponsor, presented Senate Bill 17-211. When a contractor submits a bid for a construction project anticipated to cost more than $50,000, state law almost always requires that the bid proposal include a bid security bond for 5 percent of the contract price. Bid bonds are used to ensure that contractors submit serious bid proposals. A bid security bond is a guarantee made by an insurance company that a bidder has the capacity to complete a project if his or her bid is selected during the bid process. The bill requires a state agency to accept the amount of a bid security bond at face value, if such a bond is a prerequisite to responding to a competitive solicitation for a construction project.



Senator Scott distributed amendment L.002 (Attachment C).



17SenateTran0404AttachC.pdf



02:33 PM -- Wes Butorac, representing Flood Peterson, testified in support of the bill.



02:37 PM -- Scott Rons, representing Am Trust Surety, testified in support of the bill. He responded to questions from the committee.





















02:42 PM -- Matt Huggins, representing Credit Suisse, testified in support of the bill. He responded to questions from the committee.

02:52 PM -- Andy Karsian, representing the Colorado Department of Transportation, responded to questions from the committee.





































































02:56 PM



Committee discussion ensued.

03:02 PM



The committee adjourned.