s_agr_2016a_2016-01-20t09:42:00z0 Hearing Summary

Date: 01/20/2016

09:43 AM -- Briefing from Joint Budget Committee



Representative Hamner introduced herself and the other members of the Joint Budget Committee (JBC). Other members present included Representatives Young and Rankin and Senators Steadman, Lambert, and Grantham. Representative Rankin described the activities of the JBC and discussed the briefing document for the Department of Agriculture (department). Representative Rankin directed the members of the committee to reference the Joint Budget Committee Staff Briefing Summary (Attachment A). He responded to questions from the committee regarding appropriated funds and discussed the budget request for the department in response to complaints regarding pesticides in marijuana. Senator Steadman responded to questions from the committee regarding the Marijuana Tax Cash Fund and a budget amendment submitted by the governor's office. Representative Rankin explained that there was an executive order to examine the pesticide inspectors as they relate to marijuana. The JBC responded to questions regarding the Industrial Hemp Regulatory and Seed Certification Program (seed program) and the most recent budget request, found in the briefing document. Representative Rankin explained that the moneys to fund this program would be taken from the Marijuana Tax Cash Fund. Senator Steadman responded to questions from the committee regarding centrally appropriated line items, and committee discussion ensued regarding the seed program. Representative Rankin explained the budget request for the Noxious Weed Program. Senator Sonnenberg discussed the State Fair and urged the committee and the JBC to monetarily support the State Fair. Representative Rankin explained that there is a new budget request that addresses the funding for the State Fair and discussed other efforts being taken to support the state fair. Committee discussion ensued.



160120 AttachA.pdf



10:15 AM



Representative Rankin summarized the budget briefing document for the Department of Natural Resources (DNR). He discussed the status of the Severance Tax Operational Fund and stated that there will be a reduction in Tier 2 programs in FY 2016-17. Representative Rankin discussed the impact of the declining oil and gas prices on the fund. Representative Rankin stated that JBC has a bill in draft form to change the structure of the severance tax fund and discussed other recent changes to the fund. Senator Steadman explained that the revenue stream for Tier 2 programs is over appropriated due to new programs being added and explained a change in the funding structure of the severance tax fund is necessary to maintain Tier 2 programs. Committee discussion ensued and Senator Steadman explained that a change in the funding structure of the fund would not affect the priority of Tier 1 and Tier 2 programs. Representative Rankin responded to questions from the committee regarding the ability of oil and gas owners to lower property taxes and discussed how the severance tax fund is affected by the Taxpayer's Bill of Rights.



10:25 AM



Representative Rankin discussed the projected revenue shortfall in the Oil and Gas Conservation and Environmental Response Fund (response fund). He explained that the oil and gas fund provides approximately 65 percent of the cash funds for the Oil and Gas Conservation Commission (OGCC). In response, the OGCC is requesting an increase of the mill levy on the market value of oil and gas at the well. The committee discussed the shortfall, the potential increase of the mill levy, and the workload of the OGCC. Representative Rankin discussed the water quality issues at legacy mine sites. The Division of Reclamation, Mining, and Safety (DRMS) is requesting that funds be allocated from the response fund in order to monitor legacy mine sites with water quality issues. Committee discussion ensued regarding the federal funding available for the reclamation and clean-up of legacy mine sites, specifically the clean-up of the Animas River after the August 2015 Gold King Mine Spill.



10:46 AM



Representative Rankin explained the budget request for Colorado Parks and Wildlife (CPW), which includes an increase in funds to replace radios used by CPW. Representative Rankin then discussed the State Land Board public school trust revenues and the board's FY 2016-17 requests. The board is forecasting a decrease of almost 60 percent in Public School Trust revenues over the next three years due to falling oil prices, reduced production on state trust lands, and expiring bonus payments. Representative Rankin explained that the board is requesting a net-zero transfer of $90,000 cash funds from the Executive Director's Office to the State Land Board to fund ongoing licensing fees for the ATLAS management system and an increase for a new West Slope Resource Specialist. Committee discussion ensued regarding the State Land Board, and Representative Rankin concluded the JBC presentation.