S_FIN_2019A 02/05/2019 02:03:58 PM Committee Summary

Senator Rodriguez, bill sponsor, introduced Senate Bill 19-105.  The bill would bring some Colorado laws related to directed trusts into alignment with national laws.  Senator Rodriguez distributed a handout with information on the Uniform Directed Trust Act from the Uniform Law Commission (Attachment A).

Mr. Kevin Millard, Mr. Stanley Kent, and Ms. Kelly Cooper, all representing the Colorado Bar Association, testified in support of the bill.  The witnesses responded to questions from the committee related to trust issues addressed by the bill.

Senator Rodriguez made closing comments on the bill.

Senator Hill, bill sponsor, introduced Senate Bill 19-060.  The bill would create a tax credit available to teachers for personal expenses for school supplies that extends beyond a similar federal tax credit.

Ms. Evie Hudak, Colorado PTA, testified against the bill.  Ms. Hudak responded to a question from the committee related to how many private school teachers might benefit from the bill.

Mr. Louis Pino, Legislative Council Staff, described the bill's fiscal impact on the state.  Mr. Pino and Ms. Amber Egbert, Colorado Department of Revenue, responded to questions from the committee related to how current federal tax credits are claimed by private or public school teachers, tax administration, and tax fraud implications.

Senator Hill gave a summary of the position of witnesses who attended a prior hearing but were unable to return to testify today.  Senator Hill made closing comments on the bill.

Committee members made comments on the bill.

Senator Hill made further comments on the bill and the committee discussion.

Mr. Dave Young, State Treasurer, distributed a handout with details on the Department of the Treasury's function (Attachment B). Treasurer Young described the investment, accounting, and banking practices of the department.  Treasurer Young described the Treasurer's Pooled Funds (TPOOL) and the work of the Division of Unclaimed Property.

Treasurer Young responded to questions from the committee related to how the state uses revenue from cannabis regulation, how the department manages unclaimed property, and the state's daily cash needs.

Treasurer Young responded to further questions from the committee related to public banks in Colorado and the impact of Senate Bill 18-200 on the Colorado Public Employees' Retirement Association (PERA).

Mr. Tim O'Brien, Chair of the PERA Board of Trustees, introduced his colleagues.  Mr. Ron Baker, Executive Director of Colorado PERA, gave a presentation on the impact of Senate Bill 18-200 (Attachment C).

Mr. Baker responded to a question from the committee related to the timeline of eliminating unfunded liabilities.

Ms. Amy McGarrity, Chief Investment Officer for PERA, presented information related to investment performance and asset allocation.  Ms. McGarrity and Mr. Baker responded to questions from the committee related to targeted rate of return and how it compares to the state's borrowing rate.

Mr. Baker presented on the automatic adjustment provision.  Mr. Baker responded to a question from the committee related the automatic adjustment.