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HomeMy WebLinkAboutMinutes - Legislative Review Committee - 02/12/1998 -Administrative Services i o Fort collins RD ir e ii’-•~.,.--I •I II I II III I -.--I •II.-I I I I I •I I ~•. •1 •-I-,. •••-.--:-•- -I--II-- 300 LaPorte Avenue •PC.Box 580 •Fort Collins,CO 80522-0580 (970)221-6790 •FAX (970)221-6329 0 LEGISLATIVE REVIEW COMMITTEE MEMBERS Council Members Ann Azari Mayor (970)221-6505 Scott Mason Councilmember 221-6505 Will Smith Mayor Pro Tern 221-6505 Staff Members John Fischbach City Manager Guy Boyd Poudre Fire Authority, Director of Administrative Services 221-6570 Stewart Ellenberg Risk Manager 221-6774 Marty Heffeman Assistant to the Director of Cultural,Library and Recreational Services 221-6064 Randy Hensley Transportation Services 221-6608 Diane Jones Deputy City Manager 221-6505 Alan Krcmarik Finance Director 221-6788 Blair Leist Assistant to the Director of Administrative Services 221-6796 Legislative Affairs Coordinator Gale McGaha Miller Water Quality Technical Manager 221-6231 Rita Davis Executive Project Manager,Police Services 221-6628 Rondall Phillips Director of Transportation Services 221-6615 Steve Roy City Attorney 221-6520 Tom Shoemaker Natural Resources Director 221-6263 Michael Smith Water/Wastewater Utilities Director 221-6681 Liz Stroh Integrated Resources Manager 221-6522 Bill Switzer Utility Economist,Light and Power 221-6713 Tom Vosberg Community Planning and Environmental Services Policy Analyst 221-6224 Kevin Wilson Fire Marshall,Poudre Fire Authority 221-6570 Brian Woodruff Environmental Planner 221-6604 Legislative Review Committee Council Member-Staff Meeting Meeting Minutes for February 12,1998 Council Attendance:Ann Azari,Scott Mason,Will Smith Staff Attendance:Rita Davis,Marty Heffernan,Alan Krcmarik,Ron Phillips,Steve Roy, Lucinda Smith,Bill Switzer,Tom Vosburg,Blair D.Leist (Recorder) I.CML Policy Committee Update—Will Smith 1-1131262:Important to establish City position and contact Steve Johnson SB6:FEB.12th UPDATE FROM CML (following LRC meeting) Yesterday Sen.Ament announced that he intended to kill his own standing bill,SB 6,and start all over again.He will return with a late bill with a narrower bill title that will simply address the authority of political subdivisions of the state to assert their property and contract rights in cases involving regulatory actions by the FEDERAL GOVERNMENT.In other words,the late bill will not address additional standing for political subdivisions of the state to sue each other,and thus the concerns expressed by some municipalities about the standing issue will no longer be reflected in the bill.The late bill may be one that CML will support,subject to further discussion by the Executive Board. 51337:The Liquor Enforcement “Sting”bill has been amended to include the penalty guidelines as recommended by CML. SB17O:Norton’s bill supporting transportation through state surplus revenues is now supported by CML HB1O3O:The taxation of wireless carriers bill needs to be closely monitored by the City. II.Legislative Review--Blair Leist The City of Fort Collins List of Followed Bills and the List of CML Followed Bills has been updated to reflect newly introduced legislation.Much to the surprise of CML,the Session is significantly quieter than expected.In fact,several of the bills that the City has opposed have already been killed in committee;especially in regards to land use and public safety. III.Legal--Steve Roy 5B006:City is opposed to any implication of monetary damages,but action taken may change per the CML update above. IV.Finance and Taxation--Alan Krcmarik (Summary Attached) Seven new bills,particular to state surplus revenues,have been reviewed.The bills include 5B140,169,170,and HB1202,1212,1263,1275.Action is to monitor. V.Air Quality--Lucinda Smith (Summary Attached) None of the air quality bills require any City action;HB1 109,no municipal impact; 0 HBI 106,monitor;HB1003,monitor;SBOO4,no municipal impact. VI.Transportation--Ron Phillips SB17O:This bill increases funding for transportation from state surplus revenues. Supports local shareback and flexible funding. Action:Ron has submitted an AIS and resolution for Council adoption in support of this bill. HB1256:Similar to SBI7O except that the bill provides funding for transportation,k 12 and higher education.Bill sponsor may amend bill to remove funding for higher ed. Action:Monitor VII.Public Safety Several of the bills which were of concern to Police Services have died in committee. Those remaining actions include:SB99,monitor;HB 1091,support;HB 1102,monitor; FIB1 148,oppose and provide LRC with a policy summary of what currently open and available in regards to viewing records;HB1260,oppose and if good chance of bill passing send letters.HB 1187 will also be reviewed by Rita. VIII.Other Business Deregulation:SB 152 is Sen.Wattenberg’s study bill.Staff recommends support Action:Request that the Mayor contact Bob Bacon for his support (Summary attached). Deregulation:HB1285 is a bill which tries to direct specific aspects of deregulation.It has the right intentions,but has significant problems Staff recommends oppose (Summary attached). Respectfully Submitted this 12th day of February,1998 Blair D.Leist February 12,1998 City of Fort Collins List of Followed Bills (1998 Session) Bill #Bill Bill Committee Local Summary CML Staff&LRC City Staff Description Sponsors Assigned Legislator Analysis Position Position Dept.Person Air Quality 004 Applies standards to activities Norton Health,Ed,Reeves Analysis pending Ml Pending NR Woodruff on public property Welfare,Inst. 1003 Removes state Schauer Business None Analysis pending MI Pending NR Woodruf~a. implementation plan req’s. which are more stringent than federal mandated req’s. 1081 Req’s.Certain reporting by Bacon Senate None Analysis pending Ml Pending NR Woodruff owners of vehicles within the Transportation AIR program 1106 Adds new or improved tech.Tucker State Affairs Bacon Analysis pending Ml Pending NR Woodruff As grounds for AQCC to revise SIP plans or air quality regs.or standards 1109 Addresses req’s.of fed Taylor Agriculture Johnson Analysis pending Ml Pending NR Woodruff agencies conceming activities on fed,lands. Elections 1105 CML sponsored bill Anderson Loc.Govt.Johnson The Clerks Office supports this bill because I)clarifies Support Staff:support Clerks It.Harris simpli~’ing reporting who is the appropriate officer to file reports with during A.Jensen~ requiremnts for bc.govt a particular election 2)eliminates the requirement that a candidates under the Fair candidate in a local election file campaign reports every Campaign Practices Act,month beginning the sixth fill month before an election and 3)eliminates quarterly filings following an election until the candidate has a zero balance. Finance and Taxation 32 Modifies bc.govt.audit law Reeves Loc.Govt.Reeves Causes more differences between state and local tax Municipal Staff and LRC:Finance ICrcmarik to provide more flexibility bases.May shift expenditures.Interest Oppose,but not a regarding req for inventory of strong position. property 49 Restricts state and bc.taxes Schroder Business Matsunaka Minor change to state law Reviewed by CML and other Oppose Staff and LRC:Finance Krcmarik related to Internet transactions cities;provides some additional flexibility Not abig Support,but no action. concern for Fort Collins February 12,1998 Completely exempts personal property from taxes without replacing local revenue loss, subject to referendum City of Fort Collins List of Followed Bills (1998 Session) 92 Bill #Bill Bill Committee Local Summary CML Staff&LRC City Staff Description Sponsors Assigned Legislator Analysis Position Position Dept Person 64 Provides for state and local Arnold Transport None Creates more differences between state and local sales Municipal Staff and LRC:Oppose Finance Krcmarik sales and use tax refunds tax base.Interest when automobile is resold within 30 days Duke Finance None Major revenue impact to City.Refers question to voter.Oppose Staff and LRC:Oppose Finance Krcmarik a 94 Provides aproperty tax credit Mutzebaugh Finance None Large impact to school district,county,and other entities Municipal Staff and LRC:Oppose Finance Krcmarik for the elderly which reduces that rely on property tax revenue.Interest local tax revenues 100 Specifies that utility and other Ament Finance None Specifies that pipelines,utility lines,and Municipal Staff and LRC:Finance Krcmarik peoperty installed in telecommunications lines are personal property.Interest Monitor easements or ROWs will be treated as personal peroperty for tax purposes 101 Exempts clothing and Blickensderf Finance None Causes differences between state and local tax bases.Municipal Staff and LRC:Finance Krcmarik footwear from state and local er May shif expenditures.Interest Oppose,but no strong sales and use taxes,action. 1005 Increases amount of business Spradley Finance Tool Provides a partial exemption for business personal Oppose Staff and LRC:Oppose Finance Krcmarik personal property tax property.Phases out personal property over 8 year exemption with only partial period. state revenue replacement for bc.govt. 1020 Relaxes req’s.for bc.govt.Taylor Loc.Govt Johnson Increases the local govt.exemption for small bc.govts.Support Staff and LRC:Support having small budgets from $50,000 to $100,000. Finance 1030 Exempts value of FCC Agler Finance Tool Decreases tax revenue Municipal Staff and LRC:Oppose Finance Krcmarik licenses granted to wireless Interest carTers from property taxes 1065 Repeals state sales tax on McElhany Finance Tool Repeals state sales tax on telephone and telegraph Oppose Staff and LRC:Lean to Finance Krcmarik telecommunication services services.Current version allows local governments to oppose,but monitor for and reqs.bc.govt.to act tax such services,now affinnatively in order to retain the tax 1069 Enacts state programs to assist George Loc.Govt.Johnson An assistance program for cities and towns experiencing Municipal Staff and LRC:Finance Krcmarik growth impacted bc.govt.Appropriations Bacon rapid growth.Sets up apilot program and iniitial Interest Monitor,lean toward fending for program.support. Krcmarilc 4.) February 12,1998 City of Fort Collins List of Followed Bills (1998 Session) Bill #Bill Bill Committee Local Summary CML Staff&LRC City Staff Description Sponsors Assigned Legislator Analysis Position Position Dept.Person 1085 Authorizes direct payment of 0.Berry Finance Tool Exec.Director of State Dept.of Revenue may issue Municipal Staff and LRC:Oppose Finance I(scmarik state and local sales and use direct payment permits to certain qualified vendors.Interest taxes by large businesses.Permits have been problematic for City 1100 Permanently reduces state Lambom Finance Tool No directldetrimental impacts to City Municipal Staff and LRC:Finance Krcmarik income tax rate from 5 to Interest Monitor 4.75%;subject to refendum Human Resources 1145 Subjects bc.govt employers Zimmerman Loc.Govt.Johnson Oppose Pending HR Shae-Reid to state investigation and litigation proceedings when Killed in Committee employees allege bc.govt. retalieation actions agains their employees. Light and Power 152 Provides for a study of Wattenberg Business Matsunaka Analysis Pending Support Pending Light Sc Switzer electric power retail Power competion 1284 Reqs.implementation of Schauer Business None Analysis Pending Oppose Pending Light Sc Switzer electric power retail comp.Power 1285 Imposes conditions on Veiga Business None Analysis Pending Municipal Pending Light Sc Switzer implementation of electric Interest Power power retail wheeling to protect consumers and the environment. Land Use 1129 Eminent Domain—Prohibits Salaz Loc.Govt.Johnson Killed in Committee Municipal Staffi oppose ROW Mills generally for purpose of Interest Trans Phillips reselling to private persons Or ROW—The bill is not necessajy becauseI)if a CPES Vosburg entities for commercial use municipality can’t prove “public need”it can’t condemn anyway and 2)in “partial take”situations,such as acquiring street ROW,the city might be required to obtain excess property as an uneconomic unit—property has no economic value. February 12,1998 City of Fort Collins List of Followed Bills (1998 Session) Bill may be beneficial in that it enables cities to challenge,on “takings”grounds,the regs.of other govt. entities.Goes too far in authorizing govt.entities to recover monetary damages against one another Staff and LRC;Amend to limit to injunctive relief rather than monetary damages. Natural Resources The lottery has been very beneficial to the City. Conservation Trust Funds (40%of GOCO finding)have provided finding for trails ($3.5 million),open space purchases ($2 million)and trail and open space maintenance ($1.5 million).GOCO grant dollars to the City include $3.4 million for the Poudre-Big Thompson Rivers Legacy Project,finding for the Poudre River Gravel Study,renovation of Sheldon Lake and various trail projects. 006 Bill #Bill Bill Committee Local Summary CML Staff&LRC City Staff Description Sponsors Assigned Legislator Analysis Position Position Dept Person 1163 Annexation—Severely restreict Sullivant municipal annexations Killed in Committee Legal standing Confers on political subdivisions standing to assert or defend property or contract rights Ament Agriculture None Ml Au.S.Roy C) 1006 Creates state find to promote Adkins Appropriations Bacon The bill I)appropriates moneys from the State General MI Staff and LRC:Support NR Shoemaker conservation of endangered Fund and would amount to ~.g million for FY 1998 and species FY 1999;2)does not directly affect local government and does not impose any regulatory obligations or provide any finding to local government;3)creates a separate Species Conservation Trust Fund within the state treasury which can be used only for the conservation of federally or state listed threatened or endangered species,or native species in Colorado that are in danger of becoming threatened or endangered;4)indirectly affects Fort Collins to the extent that the City is aparty to,or affected by,cooperative agreements or programs for the recovery of threatened or endangered species.Analysis attached. Parks and Recreation Extends Lottery sunset from 1999 to 2014 Bishop House Finance Tool Support Staff and LRC:Support CLRS Heffernan f 65 Provides for video lottery Lacy Appropriations None Not a good bill,but does not warrant any City action.Municipal Staff and LRC:CLRS Heffernan tenninals at race tracks and Interest Monitor allocates dome profits to Colorado promotion find City of Fort Collins List of Followed Bills (1998 Session) February 12,1998 Bill #Bill Bill Committee Local Summary CML Staff&LRC City Staff Description Sponsors Assigned Legislator Analysis Position Position Dept.Person 1113 Authorizes scratch games Lawrence Senate State None Has the potential to provide 56-8 million to Great Municipal Staff and LRC:CLRS Heffernan based on Bingo Affairs Outdoors Colorado Interest Monitor — Police 31 Modifies youth crime Linkhart House Floor All Local Requires results-oriented criteria for measuring program Ml Support Police Davis prevention and intervention House Reps effectiveness and person served by program to be tracked programs for 2 years. 37 Restricts disciplinary action Lacy Business Matsunaka Sets limits on the disciplinary actions that may be taken Oppose Monitor Police Davis when “sting”operations against a retail licensee of alcoholic beverages when uncover illegal sales to minors caught in asting using a person under 21 years of age. 81 Authorizes carrying of Choulber Killed in committee Oppose Oppose Police Davis concealed weapons and preempts local regulation 96 Contains misc,revisions,-Congrove Judiciary None Killed in Commiftee Oppose Oppose Police Davis including some reductions in crimes and preemption of A mixture of changes to the law that makes the criteria local authonty ..for violation or proof of violation more stringent.Fewer people will be found in violation of the law under the criteria of this bill.All repeals the crime of bringing alcoholic beverages or cans into the major league baseball stadium.Prohibits local governments from enacting measures that restrict the affirmative defenses to the crime of unlawful weapon possession.Downgrades the severity of criminal charges for contributing to the delinquency of minors and for introducing drugs and alcohol into a detention facility. 97 Further restricts govt.Congrove Judiciary None Killed in Committee Municipal Oppose Police Davis authority for wiretapping and Interest eavesdropping Adds tracking devices to the definition of electronic communications.Clarifies that governmental employees are not authorized to intercept cell phone signals without awarrant.Establishes additional limitations on the issuance of warrants. 99 Authorizes local needle Wham Judiciary Tool Significant concerns over the effectiveness of the Municipal Oppose Police Davis exchange programs programs.Encourages drug use and abuse.Interest February 12,1998 1034 Regulates dissemination of Snyder Killed in committee Municipal NA Police Davis infonnation about sex Interest offenders 1091 Increases penalty for weapons Epps House Bacon Increases penalty for possession of a weapon for Municipal Support Police Davis possession by felons Appropriations convicted felons from a class I misdemeanor to a class 6 Interest felony. 1102 Modifies Colorado’s instant Owen House Floor All Local As introduced,conformed state law to implementation of Municipal Monitor Police Davis criminal background check House Reps Brady law and also made some changes in instacheck Interest system for weapons that were inconsistent with Brady.Inconsistent parts have been removed. 1148 Open records—Req’s.law Schauer Judiciary Kaufman Bill adds more specificity and detail to what has to go Municipal Oppose Police Davis enforcement agencies to into public records regarding criminal investigations.Interest prepare and make available to Bill gets very specific.may cost considerable amounts to the public specified arrest and comply and may hamper investigations. incident reports 1260 Preempts weapons regulations Salaz State Affairs None The bill makes firearms an issue of statewide concern Municipal Oppose Police Davis by local governments and I)preemts bc.govt’s.from adopting ordinances Interest more restrictive than the state law and 2)makes such ordinances unenforceable at the bc.level. Transportation 170 Increased funding for Norton Transportation None Increases the percentage of state sales and use tax Municipal Staff:Support Transp.Phillips transportation needs in available for transportation.Creates a surplus revenue Interest Finance )Crcmarik Colorado transportation fund and provides for local shareback of both new revenue sources.Refers the act to the voters for local shareback of both new revenue sources.Refers the act to the voters in 1998. C) 0 DateLog Prepared:February 10,1998;10:27AM SenateBills,Page 1 LISTOFCML FOLLOWEDBILLS (1998 SESSION) CML Stall Bull Sponsor Sublect Pos.~Comments SCR GWI 1 Chlouber Privacy—amendsthe Colorado Constitution to includearight of privacy Ml DB 2 Duke Taxes—exemptsall personal propertyfromtaxationwithout providing 0 JG replacement revenuefor local governments 3 Norton TABOR—extends for oneyear thetime period for stateto refund excess Ml SM revenues 4 Norton Taxes—modifies various propertytaxassessment and levy provisions,Ml JO! particularlyregarding schools SM SJR 4 Bishop Water—authorizes funding for various wastewater systemprojects MI SS SB 2 Wham Capital constructionfund—increases general fund transfers Ml SM 3 Bishop Lottery—extendssunset from1999 to 2014 5 SM 4 Norton Air quality—applies standards to activities on public property Ml GW 1 MI =Municipal Interest;W=Watch;0 =Oppose;S=Support;PC=CML Policy Committee Bills that arestricken through are no longer being followed,but remain on the sheet for informational purposes DateLog Prepared:FebrUary10,1998;10:27AM SenateBills,Page2 LISTOFCML FOLLOWED BILLS (1998 SESSION) 5 Alexander Pensions—concerns deferred compensation assets of police officers and Ml SS firefighters 6 Ament Standing—confers on political subdivisionsstanding toassert or defend 0 SM! propertyor contract rights DB 7 Hopper Taxes—continues &provides additional tax credit for promoting employment of Ml SM homeless persons 8 Wells Crimes—preliminary hearings 10 Ament Water quality—increases permit fees Ml (3W 13 Powers Healthinsurance—disclosure of PIPmanaged care options Ml 55 20 Congrove POST—contains miscellaneous revisions tothepeaceofficer standards &Ml SM amend training law 22 Tanner Juror and witness fees—increasesfees Ml DR 24 Feeley Reporting—mandates reporting of abuse of at-risk adults MI SM 25 Rizzuto Alcohol &drug driving safetyprogram—substantially revises Ml SM! DB 27 Reeves Countytreasurers—amends powers including granting authority toaccept Ml JG partial payments of delinquent personal propertytaxes 28 Thiebaut Aviation—establishes programfunding airport improvementsto facilitate S JG intrastatecommercial_service DateLog Prepared:February 10,1998;10:27AM SenateBills,Page3 LISTOFCML FOLLOWED BILLS (1998 SESSION) 30 Thiebaut Traffic—increases fines for unlawful useof high occupancy lanesandauthorizes Ml JG useon atoll_basis 31 Linkhart Crimeprevention—modifies youth crime prevention and intervention programs Ml SM 32 Reeves Audits—modifies local government audit lawto provide more flexibility S SM regarding requirements for inventory of property 33 Mutzebaugh Government efficiency—createsacommission to examine primarily state MI JG government activities 35 Mutzebaugh Railroadtracks—replacessurvey requirement with alegal description Ml requirement_prior to_removal_of railroadtracks 37 Lacy Beer &liquor—restricts disciplinary actionwhen “sting”operations uncover Ml 55 noposition asamended illegal salesto minors 39 Phillips Grants to elderlyanddisabled—increases propertytaxand heat or fuel relief Ml SM 47 Ament Werkers’eomp—regulates findings off independent medical examiners Mf 66 postponed indef. 48 Powers Recycling—extends and modifies plasticsandwasteto recycling programsand Ml 6W funding 49 Schroeder Taxes—restricts stateand local taxes relatedto Internet transactions 0 6W oppose unless amended 53 Dennis Solid wastedisposal—authorizesspecial districts to provide MI SM 54 Dennis Prisons—provides for licensing and regulation of private prisons Ml SM 55 Dennis Counties—enhances powers of counties to imposeand enforce penalties for Ml SM violation of county laws Date Log Prepared:February 10,1998;10:27AM SenateBills,Page4 LISTOF CML FOLLOWED BILLS (1998 SESSION) 56 flecvc3 Tobacco—expand3 county powers to regulatc purthase by minors Mf SW postponed indef. 58 Tanner Healthinsurance—mandates certain coveragefor persons with diabetes Ml SS 64 Arnold Taxes—provides for stateand local salesand usetax refundswhen automobile Ml GW is resoldwithin 30days 65 Lacy Lotteiy—extends lottery,provides for video lotteryterminals at racetracks,and Ml SM allocatessome profits to Colorado promotion fund 66 Wells Jurors—facilitates juror service by persons with disabilities Ml DR 67 Johnson Taverns—allows multiple ownership subject to specified controls Ml 55/ DB 68 Blickensderfer Motor vehicletheft—revises crime and increases penalties Ml DB 69 Chlouber Limitedgaming—providesfor stateapproval of certain local land usedecisions 0 SM! ingaming communities DB 71 Phillips Appropriations tocharities—repealsthe$5,000 per year limit applicableto S SM statutory municipalities 73 Matsunaka Rental property—establishes various landlord-tenant rules Ml DR amend 74 Weddig Taxes—reinstatesstateand local salesand usetax exemptionfor bulksalesof Ml (3W coins and precious metal bullion 75 Thiebaut Governmental immunity—eliminates for physicians and dentists employed by Ml SS/ public entities DB DaleLog Prepared:February 10,1998;10:27AM SenateBills,Page5 LISTOFCML FOLLOWED BILLS (1998 SESSION) 77 Weddig Public utilities regulates thenon utility activities of public utilities Mt SM/postponed inde{ KB 78 Ament Waterprojects—expandsand modifies eligible projects financed through the Ml 55 Colorado Water Resources &Power Development Authority Act 80 flupert Conflict resolubon —establishes astatewide communityconflict resolution Mt (3W postponed indef. program 81 Chlouber Weapori3—authorizes carrying of concealed weapons andpreempts local B 5%’postponed indef. regulation SB 83 Feeley Taxes—establishesastudy of stateand local government fiscal policies S JG 84 Mutzebaugh Motor vehicledealers—allows dealersto register andtitle motor vehicles 0 JO oppose unlessamended 85 Schroeder Enterprisezones—authorizes establishment of and incometaxcredits for Ml OW investments intechnology for accessto the Internet 86 Perlmutter RTD—provides for appointment of board members Ml JO 87 Hopper Handicappedregulations—specifies application of ANSI All 7.1 pamphlet for Ml SM design of facilities for handicapped 88 Johnson Swinefeeding—regulates operations Ml OW 89 llernandez Dogs—contains regulations applicableto dangerous dogs MI SB postponed indef. 91 Feeley Surplus—allocates excess revenuesfor school capital construction Ml SM 92 Duke Taxes—completelyexempts personal propertyfromtaxeswithout replacing 0 JO local_revenue_loss,_subiect to_referendum Date Log Prepared:February 10,1998;10:27AM SenateBills,Page6 LISTOFCML FOLLOWED BILLS (1998 SESSION) 93 Linkhart Taxes—provides alternative meansto protest propertytaxes Ml JO 94 Mutzebaugh Taxes—provides apropertytax credit for the elderlywhich reduces local tax 0 JO revenues 96 Congrovc Crimes contaln3misoellaneoup revisions,including some reductions in B 61W postponed indet crimes &preemption of local authority 97 Congrove Wiretappingandeavesdropping—further restricts government authority for MI SM! DB 99 Wham Needleexchange—authorizes local programs MI OB 100 Ament Taxes—specifiesthat utility and other properly installed in easements or rights-Ml JO of-way will betreated as personal prooerty for tax purposes 101 Blickensderfer Taxes—exempts clothing and footwear fromstateand local salesand usetaxes 0 OW oppose unlessamended to exempt local governments and continueto discourage enactment 102 Linkhart Nonprofit corporations—contains numerous revisions Ml 08 104 Reeves Health insurance—requires managed careplansto provide patientswith direct Ml 53 accesstotheservices of acertified nursemidwife 107 Matsunaka Health care—imposesvarious limits on health careandworkers’compensation 0 55 plans,including prohibitions on exclusive prescription providers DateLog Prepared:February 10,1998;10:27AM SenateBills,Page7 LIST OFCML FOLLOWEDBILLS (1998 SESSION) 108 Tebedo Motor vehicleinsurance—repeals requirement for insuranceand contains other MI JG related_changes 109 Wells Rules—continues most stateagencyrules,repeals others Ml DB 110 Arnold Taxes—provides an incometaxcredit for persons contributing to school tuition MI SM organizations_&_specified_other_education_programs 112 Coffman Taxes—concerns raising thepriority level of liensfor deferred propertytaxes Ml JG and interest thereon. 114 Wells Pensions —concerns formulafor dividing public employee retirement benefits in Ml 55 defined benefit plans among parties to adomestic relations action 115 Alexander Communications—establishesand funds acommunications grant programfor S 55 local_government and_nonprofit facilities 116 Schroeder Taxes—establishes astatecollected locallyshared programto collect salesand MI (3W amend usetaxes fromout-of-state retailers 117 Tanner Youth—establishesastateofficeof youth development to organizeand oversee MI SM thecreation of comprehensive community-basedyouth development systems for at-risk youth 122 Schroeder Communications—createsastatedepartment of communicationand MI 55 information resources and specifies various stateagencycommunication responsibilities 123 Congrove Employment—prohibits mandatory membership inunions or payment of union Ml SS dues or fees DateLog Prepared:February10,1998;10:27AM Senate Bills,Page8 LISTOFCML FOLLOWEDBILLS (1998 SESSION) 124 Schroeder Immunityfromactions in emergencysituations—concerns limited immunity for Ml SS/ architectsand engineers who volunteer services during DB 125 Chlouber Felonies—providessystemfor labeling on drivers licenses &IDs Ml JO 127 Rizzuto Education—establishes grant programfor capital facilities and provides for Ml SM statewidebuilding standards 131 Rizzuto Cashfunds—limits Ml JO 132 Hopper Taxes—modifies assessment of property in limited gaming communities Ml JO 133 Wham Elections—modifies provisions recandidatecommittees accepting contributions Ml OW and_authorizes_additional_uses_of unexpended_campaign_contributions 136 Mutzebaugh Ju,yservice—modifies various provisions MI DB 137 Wham HIVtesting—specifies testing and information reporting requirementswhere Ml DB person_tested_is_charged_with_acrime_involving_sexual_behavior 138 Rizzuto Emergencypowers—terminates effecting in 2003 all emergencies declared in Ml DB thestatebefore 1998and establishes acommission to study issueof powers exercised inthe statedueto emergencies no longer in existence 140 Blickensderfer Taxes—allows subiect to referendumstateto retain revenuesabovetheTABOR Ml SM! limit for purpose of reducing local school district property taxes JO 141 Blickensderfer Economic development—establishes criteriato beapplied in stategrants or Ml SM loans DateLog Prepared:February 10,1998;10:27AM Senate Bills,Page9 LISTOFCML FOLLOWEDBILLS (1998 SESSION) 142 Wattenberg Air qualityandpublic utilities—establishesstateprogramto guarantee Ml 6W applicable regulatorystandard for period of yearsandto allowutilityto recoup costs fromratepayers 145 Reeves Elections—modifies provisions reelection iudqes Ml 6W 146 Feeley Highways—transfers,subject to referendum,on-third of statesurplus over S JG TABORlimit to highway users fundfor distribution tostate,municipalities and counties 148 Powers Transportation—modifies state bidding requirementsapplicableto state DOT Ml JG 150 Bishop Education—allocates subject to referendum,statesurplus above TABORlimits Ml SM for school capital construction proiects 152 Wattenberp Electricpower retail competition —provides for astudy of S SM 153 Hernandez Animals—modifies state regulation of pet animals Ml DB 154 Linkhart Taxes—provides astate incometaxcredit for child care Ml SM 157 Tebedo Childcarehome—facilitates location of Ml SMI DB 158 Phillips Taxes—increases incometax credit rechild care Ml SM 159 Bishop Oil &gas—regulates obligations of parties toagreements for thepayment of Ml OW proceeds from 160 Pa3coe Landuse establishes st~ewide processand regulations applicableto MI 6f,t/postponed indef. municipajities and counties BR Date Log Prepared:February 1011998;10:27AM SenateBills,Page 10 LISTOFCML FOLLOWED BILLS (1998 SESSION) 163 Dennis Small businessdevelopment—provides revolving loan fund through State MI SM Boardfor Community Colleqesand Occupational Education 164 Pascoe Weapons—limits assault weapons sales by unlicensed persons Ml SM! DB 166 Mutzebaugh Transportation—reconstitutes RTDBoard and State DOT Ml JG 168 Norton Education—provides stateaid for public school emergencycapital projects Ml SM 169 Norton Taxes—provides temporary incometax reductionsto refund surplus above Ml SM TABORlimit 170 Norton Transportation—allocates surplus state revenues for state,municipal and county S JO transportation needs 171 Lacy Broncos—modifies lawregarding public financing of anewstadium Ml KB 172 Lacy Investments—eliminates investment management feepaidto statetreasurer Ml JO Date Log Prepared:February 10,1998;10:58 AM HouseBills,Page1 LISTOFCML FOLLOWED BILLS (1998 SESSION) CML Staff 81111 Sponsor Subieci Pos.’Assign Comments HCR 1002 George Taxation—revises propertytaxassessment &taxation MI JO 1003 rfiufner Tsxation revises property taxassessment &taxation M}dE postponed indef 1004 Dean Petitions—increasessignature requirementsfor constitutional amendments Ml OW and decreases signature requirements for statutory changes 1005 Pankey Transportation—concerns pledging of certain state-owned property for the Ml JO financing of transportation systemprojects through public-private partnerships HJR 1007 Entz Water—authorizes and eligibility of communities for drinking water funding MI SS HB 1001 May Transportation—TLRCcontaining numerous miscellaneous changes including MI Jo amend establishing an infrastructurerevolving fund 1003 Schauer Air quality—removes state implementation plan requirements which aremore Ml 6W stringent than federal mandated requirements 1004 Epps Domestic violence—provides for licensing of treatment providers Ml SM 1MI =Municipal Interest;W=Watch;0 =Oppose;S=Support;PC=CML Policy Committee Bills that arestricken through are no longer being followed,but remain on the sheet for informational purposes Date Log Prepared:February 10,1998;10:58AM House Bills,Page2 LIST OF CML FOLLOWEDBILLS (1998 SESSION) 1005 Spradley Taxes—increases amount of business personal propertytaxexemption with 0 JO opposeunlessamended only partial stalerevenue replacement for local governments toavoid revenuelossto municipalities 1006 Adkins Endangeredspecies—creates statefund to promote conservation of S OW 1007 Spradley Public Utilities Commission—continues PUC Ml OW 1009 Sullivant Firesuppressionsystems—continues and modifies state program Ml SM 1010 0.Berry Electricians—continues state regulationwith substantial modifications Ml SM amend 1011 Entz Water—concerns replacement of deletions fromwithdrawals of groundwater in Ml GW water division 3 1012 Reeser Electricians—continues stateregulation with minor modifications Ml SM 1013 Swenson Transportation—modifies regulation of special fuels Ml JO 1014 Reeser Plumbers—continues stateregulation without modifications Ml SM amend 1016 T.Williams Architects-substantially modifies state regulation Ml SM 1018 Takis Architects—continues stateregulation without modifications Ml SM 1019 Morrison Health care—modifies specified insurancecoveragefor newborn children Ml SS 1020 Taylor Audits—relaxes requirements for local governments having small budgets S SM 1022 Tucker Pensions—modifies fireand police pension provisions to complywith federal Ml 55 tax requirements DateLog Prepared:February 10,1998;10:58AM House Bills,Page3 LISTOFCML FOLLOWED BILLS (1998 SESSION) 1024 Dean Pensions—concerns incometaxexemptionsof survivor benefits of police and Ml SS firefighter_plans 1026 June Transpodation—makes it an offenseto useapublictransportation facility Ml JG without payingthefare 1027 Mace Cruising-establishes astatecrime of cruising inamotor vehicle MI de,’postponed indef. 99 1029 Takis Mayors—provides local option for four-year terms for mayors instatutory S SM council-manager cities (alreadyavailablefor other statutorycities &towns) 1030 Agler Taxes—exemptsvalue of FCClicenses grantedtowireless carriers from Ml JG propertytaxes 1032 rfiffncr Parental rights prevents government interference MI SM/postponed indef. 99 1034 Snyder Sexoffenders—regulates dissemination of information about MI SM/postponed indef. SB 1035 Grampsas Pensions—eliminates maximumretirement benefits which maybegrantedat MI SS local option for volunteer firefighters 1038 Reeser Workers’comp—modifies payment requirements to funds based upon excess Ml SS deductibles 1040 Nichol Driver’slicenserevocations—provides for revocation of drivers licenses of S JG minors upon conviction of marihuanaviolations 1041 Dean Cable 11/—authorizes cable operatorsto suefor theft of cable service Ml OW Date Log Prepared:February 10,1998:10:58 AM House Bills,Page4 LIST OF CML FOLLOWED BILLS (1998 SESSION) 1042 Byer Warker3’comp—limits rule making authority of Divi3ion of Workers MI 66 postponed indef. Comperl3ation 1046 Mu3gravc liesliii care—authorize3 chiropractors to prescribeand administer specified MI 66 postponed indef. pharmaceutical agents 1047 McPherson Transportation—expands existing programregarding informationsigns MI JG located on rights-of-way of interstatehighways 1054 McPherson Disaster relief—establishes programto utilize disaster relief crews composed Ml SM of stateinmates 1055 T.Williams Workers’comp—expands discovery opportunities regardingworkers’comp Ml SS claims 1056 Grampsas Pensions—clarifies eligibility at local option for partially provided pensions for Ml 55 volunteer firefighters 1058 Adkins Environment—establishesavoluntary environmental leadership pollution Ml GW prevention programwith financial incentives 1059 Gordon Traffic—increases penalties for violations inschool zones MI JG/ DB 1060 Schauer Public Utilities Commission—continues PUCbut with substantial changes Ml GW 1061 Arrington Traffic establishes penalties for negligent useof cellular phoneswhile driving MI dG postponed indef. 1062 Paschall Workers’comp—establishes deadlines to bemet by partieswhen independent Ml 55 medical_carrier_is_selected_for_resolving_disputes_over_medical_treatment DateLog Prepared:February 10,1998;10:58AM HouseBills,PageS LIST OFCML FOLLOWED BILLS (1998 SESSION) 1063 Keller Licenseplates—expands rights of disabled veteransto obtain without charge Ml JO 1064 Tool Registrationfees—increases portion retained bycounty clerk Ml JO staff apposition 1065 McElhany Taxes—repeals statesales tax on telecommunication servicesand requires 0 OW oppose unless amended local governments toact affirmatively inorder to retain thetax to exempt local government taxesand continueto discourage enactment 1067 Tate Unemployment compensation —contains miscellaneous provisions MI 55 conforming to federal lawcoverage 1068 Anderson Communications —establishes and funds astateprogram Ml 55 1069 George Revenuesharing—enacts stateprograms toassist growth impacted local S SM governments 1070 Taylor Motor vehicleregistrations—authorizesanextendedtemporary registration Ml JO amend programwith reduced fees 1074 McElhany UtiliWConsumers’Board —continues Board Ml OW 1O~5 May Motor vehicleregistrations—authorizesanextendedtemporary registration Ml JO amend programwith reduced feesand requires periodic re—issuanceof licenseplates 1077 Zimmcrman Meter bwhieiefees—authorizes county clerks 16collection for inspections Mi d&postponed indef. 1078 McElhany Officeof Consumer Counsel—continues Office for protection of consumers of Ml OW public_utilities_services Date Log Prepared:February 10,1998;10:58 AM House Bills,Page6 LIST OFCML FOLLOWED BILLS (1998 SESSION) 1080 Reeser Workers’comp—postponesthe repeal of “medical treatment guidelines”Ml SS 1081 Bacon Air quaIi~—requires certain reporting by owners of vehicleswithin theAIR Ml JO! program 6W 1083 Adkins Legal 1883-modifle3 criteriaon cM!actions for award of legal fee3for MI 68/postponed indef. groundlesa litigation 98 1085 0.Berry Taxes—authorizes direct payment of state&local sales and usetaxes by large Ml GW amend businesses 1088 Kaufman Criminal law—contains miscellaneous procedural charges Ml DB 1091 Eops Weapons—increases penaltyfor possession byafelon Ml DB 1093 Veiga RiD—provides for partisan elections of board members of Denver area Ml JO Regional Transportation District 1096 Smith Solid waste—excludes certain scran metals fromregulation as solidwaste Ml OW 1097 Leyba Unemployment compensation—modifies definition of employer to conform Ml SS with federal definition 1100 Salaz Taxes—permanently reduces state incometax ratefrom5to 43/4%subject to 0 SM areferendum 1102 Owen Weapons-modifies Colorado instant criminal background checksystem Ml SM! DB 1105 Anderson Elections—CMLsponsored bill simplifying reporting requirements for local S OW government_candidates_under the_Fair_Campaign_Practices_Act DateLog Prepared:February 10,1998;10:58AM House Bills,Page? LIST OFCML FOLLOWEDBILLS (1998 SESSION) 1106 Tucker Aft quality—adds newor improved technologyasgrounds for Air Quality Ml 6W Control_Commission_to_revise_SIP_plans_or air quality_regulations_or_standards ii 08 Croaaman EmpIo)ment—allows employeesto takeunpaid leavefor seheol activities of Mi 66 postponed indef. their children 1109 Taylor Air quality—addresses requirements of federal agencies concerning activities Ml 6W onfederal lands 1111 rankey lBs establishes programto prevent fraudulent use Ml dG postponed indef. 1112 Swenson Elderlyanddisabledgrants—provides for future increases in propertytaxand Ml JG heat or fuel grants 1113 Lawrence Lottery—authorizes scratch games based on Bingo Ml SM 1118 Dyer Gambling—establishes acomprehensive gambling prevention programfunded Ml SM by lottery funds 1123 May Motor vehiclesales —continues functions of Department of Revenuere MI 6W 1125 dune Ststtiteof limitations—tells thetwo year statuteof limitations until substantial S dG postponed indef. complation of an improvement to real propertywh&e thedamageclaimarises prior tosubstantial improvement 1126 Reeser Unemployment compensation—makes miscellaneous revisions Ml SS 1127 Tucker Driving withalcohol content—modifies provisions reminors Ml JG 1128 May Motor VehicleDealerBoard—continues with revisions Ml JG Date Log Prepared:February 10,1998;10:58AM HouseBills,Page8 LIST OF CML FOLLOWEDBILLS (1998 SESSION) 1129 Safaz Eminent domain—prohibits generally for purposeof reselling to private 6 SW postponed indef. persons or entities for commercial use 813 1140 C.Berry Workers’comp—re-establishes exclusive schedule for permanent partial Ml SS disability,_increases_benefit_level,_and_limits_benefits for_mental_stress 1141 Allen Rental termination—expands grounds for landlord to terminatealeasefor Ml SM! specified acts,including public nuisance acts under stateor local law OB 1142 Owen Healthinsurance—allows premiumrateadjustment factor used bysmall group Ml 55 plansto_be_based_on_claims_experience_&_health_status 1144 Sullivant Motor vehicles—requires aggregate material to becovered Ml JO 1145 Zimmerman Local government employment —subjects local government employer3to state 6 SW postponed indef. investigation and litigation proceedingswhen employees allege local government ~retaliation’actions against their employees 1148 Schauer Openrecords—requires lawenforcement agenciesto prepareand make 0 SM availabletothe_public_specified_arrest_and_incident_reports 1150 Epps Libraries—clarifies that school district that began levying before 1979ataxto Ml SM support school libraries maycontinueto levythetax until voters approve alevy change 1151 Young Water—substantially revises laws requlating groundwater Ml OW 1152 George Taxation—modifies propertytax assessment ratesand provides homestead Ml JO exemption 1154 T.Williams Unemploymentcompensation—limits awards invarious ways Ml 55 Date Log Prepared:February 10,1998;10:58 AM House Bills,Page9 LIST OFCML FOLLOWEDBILLS (1998 SESSION) 1159 T.Williams Workers’camp—concerns approval of workers’compensation claimsettlement Ml SS agreements 1160 Adkins Crimes—contains numerous miscellaneoussubstantivechanges Ml DB amend 1161 Keller Restraint—establishes minimumstandards for useof restraining of persons by Ml DB public agencies 1163 Oullivant Mnexation—severely restricts municipal annexations B SM!postponed indef. SB 1166 Velea ramilysmedia!IIeave—enacts Colorado Law Mi 66 postponed indef. 1167 Tool Motor vehicles—requires submission to drug &alcohol testing after serious Ml DB accidents 1168 Arrington Social security—restricts useof individual members Ml 55 1169 Agler Alternatefuel—providestax incentives and rebateswhen alternativefuels are S GW usedfor transportation purposes 1170 George Shootingranges—restricts local government and private individual regulation 0 GW of 1172 Dacon helmets—requires children under 16towear helmetswhile biking or skating MI SB postponed indet 1173 Tool Motor vehicletitles—increases feesandallocated proceeds Ml JG 1176 Swenson Recycling—re-allocates moneysfromthewastetire recycling development MI OW cash_fund_towastetire_processorsand_end_users_and_to_local_governments 1177 Agler Sexoffenders—modifies registration andregulation Ml DB Date Log Prepared:February 10,1998;10:58 AM House Bills,Page 10 LIST OF CML FOLLOWED BILLS (1998 SESSION) 1179 Tucker Restrainingorders—consolidates and revises procedures Ml DB 1180 Wall Taxes—creates an income tax credit for persons who donate real property MI SM postponed indef. interests to governments or charitiesfor conservation purpeses 1181 Cro3sman Weapons—prohibits saleor possession of assault weapons MI SM,’postponed indef. Be 1182 rnfmncr Taxes—modifies property tax assessment rates,provides aresidential MI dG postponed indef. homestead exemption,and allows enterprise incometax credits to be carried forward 1187 Morrison Motor vehicles—imposes driving restrictions on minors Ml DB 1188 Snyder Elections—amends Fair Campaign Practices Act Ml 6W 1189 Entz Water—authorizes various water proiects Ml SS 1191 Owen PERA—establishes defined contribution plans MI 55 1192 Paschall Air quali~—eliminates mandating oxygenated fuels program,making it a MI 6W contingent strategy 1195 Slatke Solid waste—imposes additional restrictions on siting of high impact facilities MI SW postponed indet 1196 Arrinqton Workers’comp—modifies remedies re breach of insurance contract MI 55 1198 dune f’hoto ,80’ar relaxes some of the limftations on use of MI dG staff opposition postponed indet 1199 Schauer Overtimeregulations—requires state adherence to federal exemptions Ml SS DateLog Prepared:February 10,1998;10:58 AM House Bills,Page 11 LISTOFCML FOLLOWEDBILLS (1998 SESSION) 1200 Taylor Marketing—authorizes creation of local marketing districts by municipalities &S SM counties 1202 May Transportation—increasesstatesurplus allocation for statetransportation with Ml JO no sharefor municipalitiesand counties 1205 Kreutz Healthinsurance—establishes duty of ordinary carefor carriers providing Ml 55 coveragethrough_managed_plans 1206 Grampsas Detoxificationcenters in limitedgamingcounties—provides for funding of out-Ml SM of-state_share_of_limited_gaming_revenues 1207 Lawrence Prisoners—setsforth rules and liability for individuals and entities Ml SM!amend transporting prisoners OB 1209 Young Education—concerns teacher preparation programs restandards-based Ml SM education and extendsauthoritytowaivestandards from1998to 2004 1211 Chavez Beer &liquor—substitutes “concerns of theneighborhood”for “desires of the Ml SS! neighborhood’when reviewingapplications for liquor licenses and renewals 08 1212 George Surplus provides for retention of portion of surplus over TADOFI Iimft for MI dG postponed indef. specified purposesand provides for atemporary incometax reduction torefund thebalance 1213 Swenson Motor vehicleinsurance—strengthens provisions regarding mandatory MI DB coverage 1214 K.Alexander Taxes—exempts farmequipment fromstate &local sales &usetaxes Ml (3W DateLog Prepared:February 10,1998;10:58AM House Bills,Page 12 LISTOFCML FOLLOWED BILLS (1998 SESSION) 1218 Thpa Dccr authOrize3persofl3 betwccn theages 0110and 21 to consume3,2 beer M{68/postponed indef. dG 1220 Taylor Plumbers—modifies provision reBoardand regulations S SM amend 1223 fate Discrimination increases penalties for violation of Colorado’s employmcnt Mf SW postponed indef. discrimination laws 1224 Lawrence Bail—requires license insure of andtraining requirements meeting POST MI SM training standards for persons engaged in bail recovery 1228 C.Berry Taxes—provides aprocedurefor temporarystate incometax ratereductions Ml SM whenever staterevenues exceedTABORlimits 1230 Chavez Elections—eliminates requirement that anabsenteevoter provide residence Ml OW address information in theself affirmation printed onthe return envelopefor the ballot 1232 5.Johnson T8xc3 cXempt3ncwlyacquired personal property fromtaxationat arevenue 9 zIG postponed indef. loss to local governments 1233 5.Johnson Leqal publications —allows countiesto publish viathe Internet MI SM postponed indet 1241 Adkins Water—concerns replacement of water evaporated fromon-streamreservoirs Ml OW constructed prior to 1895 1243 Lawrence Health insurance—requires coveragefor medical costs associatedwith Ml SS administration of general anesthesiafor dental procedures on dependent children 1246 Romero Purchasing—eliminates supplies databaseprogram Ml JO DateLog Prepared:February 10,1998;10:58AM House Bills,Page13 LIST OFCML FOLLOWEDBILLS (1998 SESSION) 1250 Kaufman Taxes—concerns incometaxfiling requirements Ml KB 1254 Dyer Oil &gas—modifies state regulations and provides for additional local input MI OW 1255 Swenson Crimes—standardizescrimeswhose level of offensedepends uponthedollar Ml DB amount involved 1256 Anderson Taxes—authorizes retention of state revenuesexceedingTABORlimits for K-12 Ml JO! education,higher education and stateand local transportation needs SM 1258 Young Telecommunii~tiom—conforrn3 statedefinition of Krurai telephone company MI SW postponed indef. to federal lawand grants rura]telephonecompanies apartial exemption from limitations on increases in residential rates 1259 Tate Workers’comp—provides alternative penalties for employers not maintaining Ml SS required_coverage 1260 Salaz Weapons—preempts regulations by local governments 0 SM! OB 1262 T.Williams Audits—requires local governments to develop expensivedataoncosts of 0 JO local government goods andserviceswhich private enterprises could provide 1263 Saliman Taxes—for fiveyears refunds $100 million annuallyaboveTADO[1 limk3with MI dW postponed indef. incometaxcreditsand allocates balancefor [(-12 schools,higher education SM andtransportation 1265 Gotlieb Seat belts—makes failuretowear aprimary offense Ml JO! DB Date Log Prep~ced:February 10,1998;10:58AM HouseBills,Page 14 LIST OFCML FOLLOWED BILLS (1998 SESSION) 1266 Taylor Taxes—excludes interest income,dividend income,and net capital gains upto Ml SM atotal of $6,000 annually fromincometax 1268 Tate Crimes—expands crime of ethnic intimidation and changesthenameof the Ml DB crimeto_a_hate_crime 1269 Sinclair Taxes—exemptsfromstate usetax manufactured goods donated bythe Ml (3W manufacturer to government entities andto 501(c)(3)nonprofits 1270 Leyba CMlrights—extends to discrimination based on sexual orientation Mt SW postponed indef. 1271 Spradley Taxes—amends definition of ‘tfederal additional estatetax return”and Ml OW ~pualified heir”for purposes of Colorado state estatetaxes 1275 Adkin3 T8xc3 provides for refund of staterevenues inexcess of TADORlimit through Mt SM postponed indef. atemporary reduction of school propertyt2xes 1277 K.Alexander Children—requires persons involved in certain legal proceedings involving Ml DB children totakespecified training 1279 Tupa Motor vehicles—authorizes issuanceof special license platesfor higher Ml JO education_alumni 1280 Pfiffner Cashfunds—modifies treatment of statecash funds Ml JO 1282 Agler Administration ofstateagencies—putstype 1transfers under department Ml OW control 1283 Udall Spurious liens—clarifiesthat sanctions don~applyto liens imposed by home S SM! rule municipalities DB DateLog Prt~~red:February 10,1998;10:58AM House Bills,Page15 LIST OFCML FOLLOWEDBILLS (1998 SESSION) 1284 Schauer Electricpower retail competition—requires implementation 0 SM! KB 1285 Veiga Electricretail wheeling—imposes conditions on implementation to protect MI SM! consumers andtheenvironment KB 1288 Smith Water—provides for development,mitigation and financing of proiects Ml OW 1289 Mace Motor vehicles—requires securing of loads Ml JO 1291 Entz Wildlife—modifies provisions reissuanceof licenses MI KB 1292 Schauer Liquor andbeer—contains miscellaneous revisions including authorizing Ml 55! hotelsand restaurantsto sell customprivate label vinous liquor for off-premise DB consumptionand authorizes licenseesto giveawayfreesamples 1293 Clark Veteranspreferences—enforces constitutional provisions applicable to state Ml SM and local government employees 1294 5.Williams Healthcare—concerns coverageparityfor temooromandibular disorders Ml SS 1296 George Youth—creates early educationand school readiness program MI SM 1299 Young Gaming—revises various regulations applicableto limited gaming operations MI SM in limited gaming communities 1302 May Elections—prohibits anyexpenditure of government funds relatingto MI OW campaignsfor public officeor public issues 1303 Zimmerman RTD—allows municipalities of 10,000 or more populationto designate one Ml JO local_bus_route DateLog Pre,~1ed:February 10,1998;10:58AM House Bills,Page 16 LIST OFCML FOLLOWED BILLS (1998 SESSION) 1304 Pankey Transportation—authorizes public-private investments intransportation Ml J6 proiects 1305 Grossman Countyboundaries—facilitates adjustment of S SM/support with DB amendments 1306 McElhany Workers’comp—limits temporary total disability benefitswhere employee Ml 55 returns towork and_then_leaves_employment 1308 Smith Water—establishes awastewater permitting systemfor concentrated animal Ml 6W feeding_operations 1309 Gotlieb Health insurance—requires coveragefor diabetestreatment Ml 85 1310 Sullivant Countybuilding fees—limits amounts Ml SM! OB 1313 Entz Water—grants certain water conservation districts power to deal with Ml OW conservation_easements_in_gross 1315 Miller Tourism—finances statetourismpromotion out of excess statesales and use S SM tax revenues 1316 Sullivant Lottesy—prohibits Lottery Division fromestablishing lottery gamesto be Ml SM played on video lotteryterminal or other typeof slot machine 1317 Spradley Taxes—repealsthecurrent systemwhich apportions for propertytax purposes Ml JO thevalue of amobile home that is moved betweentheformer and current county inwhich the mobile home is located 1320 Leyba Motor vehicle insurance—establishesstatefunded insurancethrough Ml JO premiums on motor fuel,registrationsand drivers’licenses DateLog Prepared:February 10,1998;10:58 AM HouseBills,Page 17 LIST OFCML FOLLOWEDBILLS (1998 SESSION) 1321 6.Berry Youth—provides ayouth mentoring service and funding Ml SM 1322 McPherson Air quality—relaxes emission limitations in operating permits issued for Ml OW stationary sources 1323 Swenson Manufacturing—concerns ownership rights remolds and establishes a MI OW molders lien 1324 Anderson Solid waste—contains numerous revisions in current programsand provides Ml 6W for abrownfields remediation program 1326 Grampsas Limitedgaming—provides additional revenueto municipalities to meet Ml SM impacts fromgaming 1327 Pfiffner Motor vehicles—exempts car andvan pools fromPUCregulation Ml JO 1328 Gordon Tobacco—imposes additional restrictions relating to minors Ml OW 1329 Schauer Taxes—provides for astatestudy of stateand local finances and efficiencies Ml JO 1330 Kaufman Railroads—concerns penalties rerights-of-way Ml JO 1332 Sullivant Motor vehicles—authorizes personswith special licenseplatesfor disabled Ml JO veterans to makeuseof parking privileges for disabled 1333 May Taxes—concerns administration of theexciset~con fuel Ml JO 1334 Hagedorn Motor vehicles—increases penalties for personscommitting multiplealcohol Ml JO related offenses 1335 Orampsas Transportation—creates intermountain fixed guidewayauthorityto planfor a Ml JO DIAto EagleCounty routealong 1-70 DateLog Pre~~~red:February 1011998;10:58AM House Bills,Page 18 LISTOFCML FOLLOWEDBILLS (1998 SESSION) 1336 Paschall Taxes—finances Bronco stadiumwith surplus revenues Ml SM 1337 Kaufman Condominiums—modifies Colorado Common Interest Ownership Act Ml DB 1338 Lawrence Insurance—enactsvarious consumer protections Ml SS 1346 Grampsas Appropriations—provides surplus land appropriation to Department of Labor MI 55 &Employment 1348 Grampsas Appropriations—provides supplemental appropriationto Dept.of Local Affairs Mi SM 1350 Grampsas Appropriations—provides supplemental appropriation to Dept.of Natural Ml OW Resources 1352 Grampsas Appropriations—provides supplemental appropriation to Dept.of Public Ml OW Health &Environment 1353 Grampsas Appropriations—provides supplemental appropriation to Dept.of Public Safety Ml SM 1355 Grampsas Appropriations—provides supplemental appropriation to Dept.of Revenue Ml OW 1356 Grampsas Appropriations—provides supplemental appropriation to Dept.of Ml JO Transportation 1357 Orampsas Appropriations—provides supplemental appropriation to Dept.of Treasury Ml JO 1358 Orampsas Appropriations—provides supplemental appropriation for capital construction Ml SM 1359 Dean Elections—contains miscellaneous changes including prohibition interviewing Ml OW legislators of legislativecandidates during regular legislativesession 1363 Taylor Elections—requires electorsto providethe last four digits of anelector’s social Ml OW security number inconnection with voter registration DateLog Pr 4’thFebruary 10,1998;10:58 AM House Bills,Page 19 LISTOFCML FOLLOWED BILLS (1998 SESSION) 1365 Musgrave Unemployment compensation—restricts unemployment compensation benefits Ml SS for persons who areaddicted to drugs or alcohol andfile repeated benefit claims 1368 Adkins Scientificandcultural facilities districts—expands Denver district to include all Ml SM of douglas_Countyand_allows_less_than_countyto_be_included_in_other districts MISCELLANEOUS CML POSITIONS ONSTATE-LOCALFINANCEISSUES •Generally opposefurther sales,use&propertytaxexemptions mandated bystatelaw. •Generally opposeslate legislationor regulations increasingmunicipal costs. •Generallyopposeadditional cashfundingreliancebystateonprogramsof general municipal interest or benefiL •Generallyopposefurther ‘off-the-top’expendituresfromtheHUTFfor non-highway purposes.Support increasedstatefundsfor highways,streetsandroadsandother modesof transportationcontingent uponequitabledistribution. •Support continuedor increasedfundingof statetrails program,statecommunityforestryprogram,&slatelow&moderateincome housing program •Support full fundingof Department of RevenueAuditingandCompliance Division. 1998 Proposed Legislation Tracked by Finance Department Bill Date Last Bill CML Bill commence Local Staff Staff Number Reviewed Summary Position Sponsors Assigned Legislator Analysis Recommendation Person SB 140 0211111998 Reducing School Interest Blickens-Finance None Creates a school district Monitor Krcmadk Property Tax Levies derfer mill levy reduction fund. Transfer the lesser of $280 million or the amount of the prior year excess from the State General Fund to the SDMLRF.Requires propor tional reduction of mill levy for all school districts. SB 169 0211111998 Temporary Reduc-Interest Norton Finance Requires excess revenue Monitor Krcmarik tion of State Income refunds to be made through Tax Rate income tax credits. Allows aditional time for refund to be made. Only effective if no election to approve use of excess revenue is successful. SB 170 0211111998 Increased Interest Norton Transporta-For next five years,this bill Monitor Krcmarik Transportation tion makes increased revenue Funding transfer to to be used for state and local transportation construction and maintenance. Sales and use tax percentage to transportation is Increased by 50%. Creates state excess revenue transportation fund in the state treasury. Specifies the distribution of the funds. Refers the act to the voters. Page 5 1998 Proposed Legislation Tracked by Finance Departme HB1202 Interest Highway Construc-Interest May Transporta-Increase General Fund trans-Monitor Krcmarik tion Allocations tion &fer to capital construciton fund Finance Tool $100,000,000 million for highway construction,repair, maintenance and expansion. H81212 Interest Spending Excess Interest George Finance Up to $250 million of excess Monitor Krcmarik State Revenues revenue to be approved by voters for State Use.Many uses for the funds:local growth impacts,school capital projects for health and safty,health insurance,Child ren’s Basic Health plan, finance public schools,multi- modal transportation,State Capitol,water lawsuits,native species protection,abandoned mine clean up and water storage. Temporaty income tax reduction for amounts over $250 million HB1 263 02111/1998 Disporsition of Interest Saliman Finance Up to $100 million to be Monitor Krcmarik Constitutional and 20+refunded to taxpayers. Limited Revenues others Excess divided among School Construction, Higher Education,and HUTF. $90 million to HUTF,18%to cities. Would require voter approval. Page 6 1998 Proposed Legislation Tracked by Finance Department HB1275 02/11/1998 Revenue Excess &Interest Adkins Finance Tool An indirect refund or states.Monitor Krcmarik Property Tax State revenue excesses Reduction would be applied to school finance.Local property taxes would be reduced based on number of students. Page 7 Light &Power Ci of Fort Collins 1998 Proposed State Legislation Affecting Electric Utilities Tracked by the Light &Power Department Presently there are three bills that we have interest in which are as follows: Bill#Sponsor(s)Description SB 152 Wattenberg The ‘study’bill which establishes a panel to study retail wheeling RB 1284 Schauer Basically the same deregulation bill that failed last year RB 1285 Veiga Predetermines conditions to go in effect if deregulation comes Senate Bill 152 is the same retail wheeling study bill which passed the senate last year and finally died in the House Appropriations committee.The bill sets up a 21 person panel to study the impacts of retail wheeling regarding 23 issues.An amendment is proposed which reduces the issues to 14 key issues and gives direction to the study panel to recommend an implementation plan and schedule for deregulation if it is determined that deregulation is in the best interests of the state.We support this bill as a member of the Colorado Municipal Utilities Alliance for the Study of Retail Wheeling which,in turn,is a member of the Retail Wheeling Coalition.The Retail Wheeling Coalition is an organization made up of consumer and agricultural interests,senior citizens,utility employees,and consumer owned utilities such as rural electric cooperatives and municipal utilities. FIB 1284 is much the same deregulation bill that was introduced by Representative Schauer last year but is even more stringent than before.It requires full retail wheeling by July 1,2000.It gives no rate protection to residential,low-income,or small business customers.Municipal utilities that do not want to participate must opt-out which requires that we give all our customers written notice that we are doing so.Should a municipal choose to compete,its customers must elect a competitive provider or receive power from a standard offer.However,the standard offer will provided by a competitive bid run by the state PUC with the local distribution utility prohibited from participating in the process.There are many issues here that make this bill simply bad legislation.We recommend opposition to this bill. HB 1285 is an interesting bill in that it attempts to predetermine the rules on many critical issues before any deregulation decision is made.It established a 3%of non-bypassable gross revenue charge to be used for “public benefits”.These benefits include renewable energy resources,energy efficiency programs,low income energy assistance,weatherization,consumer education,and subsidizing decentralized community energy systems (for Fort Collins L&P this would be in excess of$1.5 million).It states that residential and small commercial customer rates should be lower (but does not state how this can be accomplished with a 3%additional charge).There is much more to this very complex bill but the main concem is that,again, these issues should be studied with all players at the table which the study bill (SB 152)provides for.We recommend opposition to this bill. 700 Wood Street •P0.Box 580 •Fort Collins,CO 80522-0580 •(970)221-6700 •FAX (970)221-6619 •TDD (970)224-6003 e-mail:light-power ci.fort-collins.co.us PUBLIC SAFETY TECHNOLOGY N LC believes federal assistance that enables local governments to improve public safety services will always be a key component to reducing crime, planning for and predicting accidents,terrorism,fire,and disasters,and responding to emergencies.NLC urges the federal government to assist cities and towns across the nation to acquire modem emergency communications capabilities and advanced public safety technology. KEY ISSUES FOR CITIES The ability of municipal elected officials to provide for the publics’safety has bumped up against the age of technology. Taking advantage of the choices requires knowledge and understanding of technological advancements and their applications.It also requires a significant and justifiable financial investment often beyond the ability of the local governments to absorb.It requires greater capacity on public safety spectrum to transmit critical information in an emergency The federal government is currently working on two key areas of concern to municipal elected officials:that persons calling 911 for emergency purposes using wireless phones receive the same services as those using ~vireline phones;and that all levels of government have the capability to transmit vital information to different emergency response personnel without interference and delay. For municipal public safety leaders,the new rules involve: federal allocation of scarce,valuable,and finite communications resources;how much should be set aside to meet growing state and local public safety needs;how should that be done;and what should cities do with regard to obtaining needed spectrum for public safety? BACKGROUND The FCC,in response to municipal public safety concems,has acted on two fronts;increased protection for wireless or cellular 911 calls,and providing new spectrum to cities for public safety. On December 1,1997,the Federal Communications Commission (FCC)adopted regulations requiring wireless carriers to transmit all 911 calls from both subscribers and non- subscribers to emergency assistance providers with the overall purpose of assuring the prompt delivery of emergency 911 calls. These rules emphasize the critical importance of efficient and effective technology to report the location of wireless handsets - considered the most important feature both for seeking help in emergencies and for the public safety organizations that respond to emergency calls.The implementation of these rules will be accomplished in two phases:Phase One -as of April 1,1998, covered ~vireless carriers must be able to provide automatic number identification and cell site information for all 911 calls to public safety service providers;and Phase Two -Effective October 1,2001,covered carriers will be required to identify the location of mobile phones making 911 calls within a radius of 125 meters. On the public safety spectrum front,the FCC has issued rules to double the spectrum states and local governments currently have for public safety communications.The FCC action responds to action taken by Congress and the President last year,as well as to the report of the Public Safety Wireless Advisory Commission (PS WA C). The new federal law required the FCC to allocate 24 megahertz (≥.flt)of public safety spectrum by January 1,1998,for the exclusive use of state and local governments.The FCC met that deadline by taking back television channels to make them available for emergency communications for municipal public safety.The FCC’s action also provided for the auction of other channels to help reduce the federal deficit. This partial victory came,at least in part,in response to comments submitted to the FCC last October,when NLC, joined by a number of cities and other state and local organizations representing public safety agencies,expressed support for the Commission’s proposal to allocate 24 MHz within TV channels 60-69 to public safety.The comments noted that many cities are faced with severe shortages of available spectrum for both voice and data communications for police, fire,and emergency rescue,and that reliable wireless communications are essential to public safety’s mission to protect life and property. National League of Cities March ‘98 The FCC rules propose a process to reallocate 4 channels of what is called analog spectrum,equivalent to 24 megahertz.to state and local governments exclusively for public safety.The FCC rules specifically reclaim channels 60-69 from the broadcasting industry and require ±e reallocation of channels 63,64,68,and 69 for public safen-.The remainder would be auctioned off.The rules would permit incumbent broadcasters to remain on those channels until the year 2007,except that low power broadcasters would be required to vacate space required for local public safety.The rules basically promise the doubled public safety telecommunications capacity will be made available to state and local governments.But until the final licensing and service rules are issued,city public safety leaders will not have the ground rules or specifics with regard to how to apply. The actions of the FCC begins the process of implementing the requirement to make the 24 MHz of public safety spectrum available to state and local governments.As adopted,however, the final rules incorporate a set of hurdles or exceptions which could leave much of the spectrum intended for municipal public safety in the hands of the nations broadcasting industry in perpetuity. tinder the proposed FCC rule,public safety service licenses are to be assigned by the Commission no later than September 30, 1998.The Commission must also waive any provisions necessitated by the Communications Act of the Commission’s rules to allow for public safety services,as long as they are not related to harmful interference regulation. This victory in no way ends the fight.Beyond the 24 MHz issue are two other key recommendations contained in the Public Safety ‘Wireless ~dvisory Commission,(PS\VAC)report that NLC is puslung the need for 1.5 MHz for interoperabilitv and 70 MHz to meet the nation’s public safety telecommunications needs by the year 2010. NLC Pot/cr •Congress must ensure that a portion of any revenue received from spectrum auctions be made available for public safety communications purposes; •The federal government and the FCC must continue efforts to find additional spectrum for interoperability in the lower frequency levels; •The President,Congress,and FCC must follow through with efforts to reserve 24 MHz of broadcast channels 60-69 for exclusive use of state and local government public safety agencies and ensure the transition occurs in an expeditious manner~ •Congress and the President must act on a long-term plan to meet public safety needs affecting cities between now and the year 2020; •The federal government must ensure that if federal reallocation of radio spectrum forces a municipality to change frequencies,channels,or both to preserve its public safety and emergency communications services,there should be fair compensation made for the transfer costs; and; •Municipalities must be exempt from any fees imposed by the federal government for spectrum,or from any system of auctioning for spectrum space. Once the FCC adopts the proposed licensing and service rules for the reallocation of channels for public safety,the FCC could begin accepting applications for the spectrum or wireless frequencies from cities.City officials can track the final rulemaking through the FCC’s web page,WVQW@FCC.gov, watching for the final rules from the Office of Engineering on Wi’96-86.Absent municipal or state applications,the FCC might still decide to grant these channels to broadcasters in given service areas.Some 57 are expected to apply.To be successfiij with an application,a city will have to demonstrate that it has the resources and capacity to finance and complete construction of the infrastructure and purchase of the equipment to put the new frequencies from the spectrum channels in operation within eight months of FCC approval.Therefore,it is important for public safety leaders to begin acting now )*A CTIO5h Municipal elected officials should get together with key public safety personnel involved in emergency communications systems to determine the communications needs of the community and how the proposed FCC sets of rules will impact their ability to ensure effective,efficient,coordinated response to emergency situations.This discussion should include the communities immediate needs as well as long-term strategies. This information will prove invaluable to members of congress in understanding this complex issue in real-life terms.Municipal elected officials should urge them to: •Support the efforts of the FCC to move forward without delay. •Support federal assistance to finance the infrastrucrure and equipment necessary to put the new frequencies into operation. •Press for federal legislation to interoperabilitv and long-term needs. For mote information contact: Janet Quist Senior Le~sJa tire Counsel (202)626-3020 ensure meeting Vational League of Cities March ‘98 FAIR HOUSING N LC urges the federal government to recognize the authority of local governments to enact and administer non-discriminatory zoning and land use laws. NLC urges Congress to pass legislation requiring the federal government to abstain from initiating housing discrimination investigations,and suing municipalities for housing discrimination,until it is clear that the injured party has complied with all local zoning and use ordinances and has exhausted all their administrative remedies. NLC supports amending the Fair Housing Act (EllA)and the Fair Housing Act Amendments (FHAA)to protect the right of local governments to use nondiscriminatory regulations which further the objectives of public safety and preserving residential neighborhoods,including: •Local restrictions on the number of unrelated persons permitted to occupy a dwelling; •Proximity of group residential facilines to each other;and •The occupancy of such facilities by dangerous persons. NLC supports legislation to amend the Fair Housing Act Amendments to clarify what constitutes a “family”or “familial status”and what protections are afforded a “family”in order to distinguish that group homes for youth (under 18),with institutional guardians,are not equivalent to a family under the FHA.A. KEY ISSUES FOR CITIES: •Federal preemption of local authority to develop,implement and enforce non-discriminatory zoning and land use regulations. •Federal preemption of a city’s regulation of the number of unrelated persons in a group home,the proximity (densiw in an area)of these homes to each other,and their occupancy by potentially dangerous persons,such as recovering abusers of drugs and alcohol,former prisoners,and juvenile offenders completing their sentences. •The initiation of housing discrimination investigations of a municipality by the Department of Housing and Urban Development (HOD),based on the failure of a city to make “reasonable accommodation,”when the complaint is filed against a city by a group home operator who has made no effort to comply with local zoning and use ordinances,nor to apply for a variance when the cm’has a non discriminatory process in place. The filing of a lawsuit by the Department of Justice (DOJ) and/or group home operators against a city,based on the failure of the city to make “reasonable accommodation,” when the group home operator has made no effort to comply with local zoning and use ordinances. BACKGROUND V Why Cities Need More Details In Fair Housing Conzpiaints?...The process for filing fair housing complaints has been made so “user friendly”that all a person needs to do is check a box on a form and send it to HOD.The complaint does not list specifics of the alleged problem and makes it very difficult for a cit to prepare an informed response.Fair housing advocates claim that cities use this as a delaying tactic and that much time can be wasted before the fair housing problem is addressed if a detailed complaint if required. 2)Why Cities Support the Exhaustion of Administrative RemediesA..Cities have been investigated by HUD and sued by DOJ as a result of fair housing complaints filed against them before the person or persons filing the complaint has made any effort to work with the city to resolve the issues.In the Village of Palatine,Illinois,for example,Oxford House sited a group home without going through the Village’s variance process,and subsequently filed a complaint against Palatine,even though Oxford House had failed to exhaust all available administrative remedies.In this case,Oxford House failed to seek a variance from local zoning law and use requirements. Fair housing advocates oppose going through the variance process because they believe it is often a tactic by a municipality to stall the siting of a group home and harms the future residents who need a suitable place to live. 3)Why Odes Seek Carifications of “Family”and “Familial Status”Discrixninatjon?.,,.Cities have been unable to prevent the siting of group homes,in single-family residential neighborhoods,which house groups of juvenile offenders under 18 with institutional guardians,who are completing their sentences.HUD and DOJ believe that Congress,in the FHAA, provided for the protection of families with children,and that group homes housing youth (under 18),with institutional guardians,come under what Congress meant by “family”and “familial status.” Many cites interpret the Fl-Lk.A’s protection of “families”in another way.They believe Congress intended to protect families with natural,adopted and foster children from discrimination against them in the rental housing market,and not to protect.as a family,a group of youth (under 18)who ate wards of the State finishing their sentences for juvenile offenses. For example,the City of Bellevue,Washington,was sued for discriminating against a family when it resisted allowing the siting of a group home of youths with an institutional guardian.The U.S.District Court held that family includes groups of youth (under 18)with a wide variety of situations such as abandoned, abused,and neglected youth,as well as juvenile offenders completing their sentences. Fair housing advocates believe that group homes for youth (under 18)have “familial status”under the FH_4A,and are a protected class.They believe if the FH.AA is amended to eliminate “familial status”protections,this would affect all groups of youth including those who are abandoned,abused, neglected,mentally retarded,and homeless as well as juvenile offenders completing their sentences. 4)Why Cities Seek Legislation to Address the Ambiguities In the FHA and Settle Conflicting Decisions in the Federal Circuit Courts of Appeals?...Courts have ruled that cities are discriminating when they limit the number of unrelated persons living in a group home.Currently,cities cannot regulate the proximity and density of group homes.An example of this is a situation in Washington,D.C.Group home operators have sited a disproportionate number of homes in Anacostia;one of Washington’s poorest and most distressed areas.This has happened for two principle reasons:low real estate costs and less organized opposition in this neighborhood. In 1988,recovering drug addicts and alcoholics were added to the list of handicapped persons protected under federal law, Most cities acknowledge that recovering substance abusers must have places to live,and it is for safety reasons that they want authority to regulate the maximum number of recovering drug addicts and alcoholics in a group homes in a single family neighborhood. Fair housing advocates believe that regulating the number of substance abusers and former convicts in a group home in a single-family neighborhood is discriminatory or may have a discriminatory effect. CONGR.ESSJONa OUTLOOK:Chairman of the House Subcommittee on the Constitution,Charles Canady (R Fla.)expects to introduce new legislation to: •Provide cities with sufficient details on fair housing complaints filed with HUD and justice so they can respond to a specific complaint; •Require the exhausnon of local administrative remedies by group home operators before siting a home in a single family neighborhood.This would codify the ruling in the U.S.Court of Appeals,Seventh Circuit,04’ord House ii. Village of Pakrine~The court ruled that a group home operator must apply for a variance from local zoning law if there exists a nondiscriminatory local process to do so when he/she wants to site a group home in a particular jurisdiction or neighborhood that restricts siting and uses allowed in the area; •Clarify what Congress meant in the FHAA by familial status;and •Eliminate ambiguities in the FRA and the FHAA which have preempted local control over zoning and land use. This provision would allow a city to regulate the siting of residential services for persons with handicaps,to require the dispersal of these facilities across the “mainstream comnxunitv” instead of group home operators being allowed,as they are currendy,to site homes wherever they choose even if it produces concentration in one neighborhood or on one street.It would also allow a city to regulate the maximum number of unrelated residents in group homes housing recovering drug addicts and alcoholics,if the purpose of this regulation is to restrict land use to single-family homes. NLC PoJJcv:NLC opposes the use of local zoning and land use authority to advance or condone discrimination of any kind. Equal housing opportunities for all,and full zoning and land use authority for local governments are not incompatible public policies.Local governments face a continuous challenge to maintain their governing autonomy,while ensuring that the exercise of zoning authorit’neither intentionally or unintentionally produces discrimination. NLC supports local authority to enact and administer non discriminatory zoning and land use laws that provide for uniform application and “reasonable accommodation”to uphold a compelling public interest.“Reasonable accommodation”means that revising a local zoning ordinance (i)would not require a fundamental alteration in the nature of a zoning plan;and (ii) would not impose undue financial or administrative burdens on local governments. NLC opposes restricting federal funds to influence local zoning authority.The only exception would be litigated cases for which all avenues of appeal have been exhausted and a final verdict is upheld,where a local zoning ordinance is found discriminatory, either in effect,intent,or both. >.>ACTION:City officials should bring to the attention of their Congressional delegation the specific problems faced in their communities due to the Fair Housing Act (FT-IA)and the Fair Housing Act Amendments (FHAA). Urge your Congressional delegation to actively support Mr. Canady’s fair housing reform legislation when it is introduced by expressing their support to him and members of the House Subcommittee on the Constitution For more information contact: Cameron Whitman Senior Legislative Counsel (202)626-3020 JUVENILE JUSTICE N LC urges the federal government to continue to establish specific grant programs with funds flowing directly to cities that have juvenile crime and gang prevention partnership programs.NLC urges the federal government to continue its work toward placing increasing penalties on gun-related crimes.The federal government should focus on support services for state and local governments and infonnation gathering and dissemination in areas of rehabilitation of juveniles and progressive sanctions.NLC believes the federal role in juvenile justice should be to establish and maintain a national system to track juvenile criminal records for use by local,state,and federal enforcement agencies.NLC urges the federal government to provide sufficient funding for all phases of all juvenile justice mandates to achieve the desired results. KEY ISSUES FOR CITIES:For municipal elected officials,the concern for and fear of juvenile violent crime continues to escalate,as does the need for a more meaningful federal investment of funds.The availability of federal resources to fund State and local juvenile justice efforts has been conditioned on states and local governments adopting federal “recommendations”or accepting “incentives”mainly in the area of juvenile corrections.This trend continues in 1998,with the Congress poised to take up S.10,the Violent and Repeat Juvenile Offender Act. BACKGROUND:This year,cities will have an opportunity to pursue flexible,direct assistance to respond to juvenile crime through two main bills before Congress in 1998: th~Violent and RepeatJuvenile Justice Offender Act (S.10),and the decision whether to extend the one-year,expiring juvenile Accountability Incentive Block Grant.City leaders will want to press their concerns on both fronts in order to achieve additional resources for public safety. S.10,approved last year by the Senate Judiciary Committee,will be the likely vehicle for this year’s efforts.The new Juvenile Accountability Incentive Block Grant will disperse $250 million for grants to state and local governments this year.In both cases,grants come in the form of “incentives”to states and localities that comply with certain requirements,or federal mandates,regarding the handling of juvenile offenders. \‘~l1atever bill is signed into law,it would set the guidelines for city authority to use any federal funds. JUVENILE ACCOUNTABILITY INCENTIVE BLOCK GRANT The new block grant,(which is funded only this year),is aimed at encouraging accountability-based reforms at the state and local level.Funds will be made available to the states based on their comparative juvenile population.Units of local governments will receive 75 percent of the total provided to the states,based on a combination of law enforcement expenditures and the FBI’s Uniform Crime Report (UCR)data on part I violent crimes, unless the state can demonstrate that it bears the primary financial burden within the state for juvenile justice. Where a stare demonstrates in its application that it bears the primary (more than 50 percent)financial burden for the administration of juvenile justice,the Attorney General may, upon the state’s request,and the Attorney General’s discretion, waive the 75 percent pass-through requirement and reduce the amount passed through to localities to reflect the states financial burden. There are eleven purposes for which funds can be used.They include:building,expanding or operating juvenile detention and corrections facilities;developing and administering accountability-based sanctions for juvenile offenders;hiring additional juvenile judges,probation officers,and court- appointed defenders,and funding pre-trial services for juveniles to ensure smooth and expeditious administration of the juvenile justice system;hiring additional prosecutors to increase prosecutions of cases involving violent juvenile offenders and to reduce case backlogs;providing funding to enable prosecutors to address more effectively drug,gang,and youth violence; providing funding for technology,equipment and training to assist prosecutors in identifying and expediting violent juvenile offender prosecutions;and establishing court-based juvenile justice programs that target young firearms offenders through the establishment of juvenile gun courts adjudication and prosecution of juvenile firearms offenders. At least 45 percent of any grant provided to a state or local government will be available for specific purposes identified in the statute,such as hiring juvenile court and corrections personnel and services.At least 35 percent must be available for building and expanding facilities,developing accountability-based sanctions,and information sharing purposes. Accountability-based reforms which state and local government are “encouraged”to adopt include graduated sanctions,adult prosecution of violent juveniles,and juvenile record reforms. States must have in place a coordinated plan for reducing juvenile crime,developed by a coalition of law enforcement and social service agencies involved in juvenile crime prevention. States also must have implemented or implement by January 1, 1999,a policy of tesung appropriate categories of juveniles for use of controlled substances. To be eligible,states must cerufv that they are “actively considering,”or will consider within the next year,through laws, policies or programs,accountability-based reforms.The term “actively considering”means the deliberation or debate of policies that would effect a state’s compliance with the requirements.It does not mean the adoption or enactment of any or all policies under consideration. THE VIOLENT AND REPEAT TUVENILE OFFENDER ACT OF 1997 (S.10) Congress expects to pass juvenile reform legislation by the end of the year.5.10 seeks to achieve three goals:ensure that youth are held accountable for criminal or delinquent acts; ensure that the most violent juvenile offenders who commit adult acts such as murder and rape are treated as adults;and reform federal aid to state and local youth crime programs. The bill’s proponents have identified three components necessary to accomplish the goals.First,the bill would reform procedures regarding those cases in which a juvenile is prosecuted for a federal crime in Federal court.The bill would grant local U.S.Attorneys the discretion to decide whether to prosecute as adults juveniles who commit violent or serious federal drug crimes,and give the Attorney General discretion to order federal prosecution as adults of juveniles who commit federal felonies.Also,the bill would require that federal juvenile criminal records be available to law enforcement,courts,and schools.No federal juvenile offender would reside in the same cell as an adult offender. The second component would address interstate gangs.S.10 would enhance the federal anti-gang statute by permitting the federal prosecution of gang criminals who commit two or more gang-related money laundering and drive-by shootings. Convictions would result in a I 0-year mandatory minimum penalty and the criminal forfeiture of gang-related assets.The bill also addresses the interstate recruitment of gang members and criniinalizes the recruitment of anyone,especially minors, into criminal gangs. The third component reauthorizes,reforms,and streamlines the Juvenile Justice and Delinquency Prevention Act The bill maintains,though with some modifications,the current state fo&iula grant program (known as Part B)for juvenile justice programs.The emphasis of the requirements on state and local government would focus on accountability-based juvenile justice programs.It would eliminate the current requirement that states not incarcerate juveniles for status offenses such as curfew violations. Finally,the bill would provide for increased criminal penalties, including mandatory minimum sentences and provisions for asset forfeiture,for crimes relating to juveniles,and funds for guardians for victims of child abuse. Regarding streamlining federal youth violence efforts,the bill would make the Office of Juvenile Crime Control and Accountability responsible for coordinating all federal programs targeted at juvenile crime. Upon compliance with federal “recommendarions,”state and local governments would be eligible for grants in the following areas: •high-intensity interstate gang activity areas; •juvenile crime control; •the National Institute for juvenile justice and Delinquency Prevention; •the administration and operation of the Office of Juvenile Crime Control and Accountability; •runaway and homeless youth; •temporary demonstration projects for youth in rural areas; •missing children; •programs that promote successful juvenile crime reduction strategies; •the reimbursement of state and local governments for the cost of incarcerating illegal juvenile aliens;and •at least three flagship Boys and Girls Clubs of America. ?sJ[LC Policy:NLC supports federal assistance to establish and operate youth courts to ensure swift and appropriate sanctions.NLC supports direct,flexible,funding to municipalities for local juvenile justice and delinquency prevention initiatives with strict limits on administrative costs. NLC supports continued federal technical assistance to train local governments regarding how to apply for federal funds administered through states.NLC supports federal efforts to establish and maintain a national system to track juvenile criminal records for use by local,state,and federal enforcement agencies and assistance to states and localities to update their record keeping procedures. NLC believes decisions regarding the transfer of violent juveniles to the adult criminal justice system should be left to state and local governments,and the federal government should not pass laws or regulations that significantly hinder the ability of local governments to develop and implement alternative sentencing programs for juveniles. t>>ACTIOPsT Municipal elected officials should get together with key city officials involved with reducing juvenile crime and determine which programs have been effective,so that you can advise your Congressional delegations regarding: •the steps Congress could take which would make the best difference in your city;and •the restrictions in current federal programs that would cause the greatest interference with what works in your city. It is critical that you provide good information about the incidence of juvenile crime and what city resources are currently targeted to the issue.Make clear that you want to share your delegations efforts to provide flexible assistance to your city. For mote information contact:Janet Quist, Senior Legislative Counsel at 202-626-3020 ELECTRICITY UTILITY DEREGULATION N EC supports federal legislation that would protect the authority of local governments during the deregulation of the electric utility market and opposes legislation that would preempt traditional and historic land use and zoning authority or franchise and equitable tax authority. KEY ISSUES FOR CITIES: This issue has a large impact on all municipalities—not only those localities that are ‘public power”cities. The issues for local governments will involve local franchise authority and fees,rights-of-way and zoning issues,jobs and property taxes,municipal electric bills,and issues concerning municipal pension investments. The specific issues that local governments could confront: •A municipality could lose franchise fees that electric utilities currently pay for use of its public rights-of-way. •Local governments may face large losses of revenue from a decline in property taxes.In some cities,property taxes from electric utilities are 75 percent of the tax revenue collected.If the utility has high stranded costs (past investments by the utility that have not been paid of~and closes because it cannot compete in the deregulated world,a municipality could lose the majority of its financial base. •Local government authority could be preempted in many areas including local land-use and zoning authority,such as the siting of towers,wires,and other power facilities and equipment,and sales and use tax authority on out-of-state (investor owned)utilities. •Federal electricity utility deregulation legislation will need to permit local governments to aggregate Qoin together)to purchase power at lower prices.If local governments act alone,large corporations,not local governments,will reap the benefits of deregulation. •Municipalities are large users of electricity.Local governments will need to learn how deregulation can result in lower electric bills. •Municipal pension funds could be in jeopardy if the pension funds are invested in a utility that folds because it cannot compete in the deregulated market. •Public power cities will have to learn to compete in a deregulated market. BACKGROUND: Traditionally,electricity has been a regulated monopoly.Utilities were given a specific area to serve.Under the Energy Policy Act of 1992,deregulation responsibility was divided between the Federal Energy Regulatory Commission (FERC)and Congress. FERC has jurisdiction over wholesale wheeling,which is the selling of electricity in the wholesale market.In April of 1996, the FERC issued an order to deregulate the wholesale market, which required utilities to open access to their transmission lines. Congress has jurisdiction over retail wheeling,which is selling electricity to the electricity customer—the person who turns on the light.In the first session of the 105th Congress,a number of bills were introduced and a series of hearings were held. However,no legislative action occurred.Simultaneously with these Congressional initiatives,the majority of states have either begun or completed steps to deregulate the electricity industry without federal authority. What does this mean?It means that consumers,businesses,and cities will have a choice in deciding from whom to buy electricity.For example,the market may be similar to the telephone market.A consumer can buy from a number of competitors offering different services at different prices.With electric utility deregulation,customers will have a choice rather than relying on one company that has a monopoly over the power supply.However,having a choke does not necessarily translate into lower electricity prices.First,only the generating portion of the electricity bill will be deregulated.It is about twenty five percent of the total costs,so any savings will be small.Second,large users such as manufacturing industries may reap the benefits not municipalities and their residents.Third, regions of the country that already have low electricity prices may actually confront a price increase in their electricity bills. Finally,“undesirable”service areas may have no company that wants to sell them electricity. Private Use Rule The U.S.Treasury issued temporary rules to provide guidance to state and local governments to clarify how municipally-owned National League of Cities 431arch ‘98 electric utilities can participate in a deregulated electric utility- market without jeopardizing either existing tax-exempt municipal bonds or their authority to issue future tax-exempt bonds.The rules,which would last for three years,are important to public power municipalities under a deregulated environment.Current federal laws set a cap on the amount of non-govemmental use of a municipality’s facilities or power output a city may provide before losing its tax-exempt municipal bond authority.The new rules would replace the existing so-called “private use”IRS rules o protect the tax-exempt status of municipalities,which opened their service areas and/or transmission facilities in a manner to permit nondiscriminatory open access.The rules would continue to bar cities from issuing tax-exempt municipal bonds for the purpose of expanding utility services to compete outside current boundaries. The rules,however,do not remove the threat of pending federal legislation or free cities and towns to move forward under the Treasury regulations.Unless and until Congress acts to modify, reject,or otherwise act on pending legislation in the Senate,the so-caUed Murkowski bill,S.1483,municipally-owned utilities will face severe obstacles in complying with state legislation and retaining their tax-exempt status. The Murkowski bill,marks the first major federal intrusion into state and local energy utility authority It sets a worrisome precedent of federal,retroactive interference and intrusion into state and local authority and ability to issue debt to meet public needs.Even with the action by the Treasury,the Murkowski bill restricts cities in California and other states set to implement state deregulation laws.The bill creates an unlevel playing field for public power cities and towns. NLC Policy NLC policy opposes federal preemption of local government authority regarding tights-of-way and revenue authority.Cities and towns should have the ability to become aggregators.The policy emphasizes that any restructuring program should result in all consumers receiving benefits. CONGRESSIONa ACTION In the first session of the 105th Congress,many bills were introduced including: •H.R.655,“The Electric Consumers’Power to Choose Act of 1997,”introduced by Subcommittee on Energy and Power Chair Dan Schaefer (R-CO),would mandate states to implement dereguiadon within four years and does not permit utilities to recover “stranded costs;” •HR.1230,“The Consumers Electric Power Act,” introduced by House Majority Whip Tom DeLay (R-TX), would bar state and local governments from regulating “the pricing,terms or conditions of service offerings by electric service providers,”and would restrict their abiliw to regulate who may legally sell electricity; 51401,“Transition to Electric Competition Act of 1997,” introduced by Senators Dale Bumpers (1)-AR)and Slade Gorton (R-WA),would mandate deregulation by a date certain.N?legislative action occurred. The Clinton Administration,through the Department of Energy, has been developing a comprehensive deregulation bill that is expected to cover many aspects of deregulation,including environmental impacts.The legislation has been debated between the White House and the various agencies for over a year. )*Action •Contact your delegation:urge them to oppose any federal intrusion or preemption of local government authority and revenue sources in restructuring the electric utility industry. •Meet with your own staff,arid others in your community to address the pros and cons of federal legislation on your communit.Come to Washington prepared to provide specific information to ensure that Congress does not preempt or interfere with traditional and historical municipal rights to protect your citizens and ensure equitable taxation. •Determine the type of revenue that your city receives from the local electric utility.Is it a franchise fee?Does the facility provide property taxes?Does your city impose a sales or use tax on electric service? •How much electricity does your municipality use?In peak times,electricity users are municipal buildings such as offices and libraries.In off-peak times,high electncity users could be street lights. •Does your city currently have a say in the location of electric transmission lines,poles,and towers?\That would the impact of federal or state preemption of your local zoning or land use authority mean? •What are the number of your residents who work for electric utility companies?Is that utility efficient enough to stay in business after deregulation?Or does it have large capital costs—such as nuclear power plants-_that it still needs to pay off? •If you are a public power city,are there businesses in your community that would close because you are not allowed to compete in a deregulated marker? •Are your municipal pension funds invested in investor owned electric utilities? For more information contact: Laurie Saroff Legislative Counsel Center for Polici,and Federal Rela dons (202)626-3020 0 0 •If your city is a public power city,you may use the new rules effective immediately and may submit comments until April 22,1998.The IRS will hold a public hearing on April 28, 1998.City officials with questions about the temporary rules may contact Allan Seller at the IRS at (202)622-3980. Vational League of Cities Worth ‘98 EDUCATION N LC urges the Congress and the President to commit this country to an investment in education. Without a highly sIdled,well-educated worldorce, our communities and industries cannot hope to compete in the global marketplace.Congress and the President have no more pressing work than supporting education to ensure domestic prosperity and to continue our own rate of economic growth.This can only serve to better our cities and the nation at large. KEY ISSUES FOR CITIES: •A substandard local educational system can affect the economic competitiveness of a city. •A good local educational system is closely linked to the quality of life for a city and its residents. •A good local educational system can enhance property values in a city. •Investing in children through the educational system can prevent future burdens on other city services like the local criminal justice system and the employment training system. BACKGROUND: Most schools operate independentiv from City Hall.Many local officials,however,are taking new interest in their public schools as cities struggle to retain their middle class and revitalize their economies.With cities and their public school systems starting to rebound,the link between a vibrant community and a healthy public school system is now clearer than ever.It is critical that schools and cities develop better linkages to reinforce and coordinate each other’s work. In many states,great disparities exist between poorer and richer school districts and the communities in which they are found. Studies show that the highest performing school systems have neatly twice the resources per child than the average public school has.These dispanties are often defined by race and class. It is important to note that cities do not want to assume full responsibility for troubled schools.This has only been tried in several large cities,with mixed and incomplete results.Mostly, cines’efforts to boost the local educational system involves strengthening links among schools,local businesses,community acuon agencies,police and fire departments,families and neighborhoods.Cities are also supporting efforts to ask for increased state and federal government funding for their local educational systems. CONGRESSIONAL ACTION: At the federal level,the Clinton Administration has fired the first volley by announcing an ambitious education proposal,which includes a training program to increase the number of new teachers and a school construction program targeted to cities. The President plans to ask for an increase in federal education funding of more than $15 billion over the next five years. The Administration’s school construction proposal will probably benefit cities and towns the most because it would provide incentives for communities to invest in local school facilities. The President is proposing a $10 billion initiative over 10 years that will spur investments for school modernization by states, localities and the private sector.In the years 1999-2000,up to $22 billion in bonds would be leveraged for this purpose.If cities and their school districts are able to obtain these funds to improve their school infrastructure,this can free up local moneys for areas where they are needed such as teachers,books, and curriculum. Other items in the President’s plan include;assistance for colleges to help promote the importance of education to primary and secondary students to stay in school,assistance for schools in poor areas,increased spending for programs to assist Hispanic students,including bilingual education,and additional money to set up more than 1,300 charter schools. The Republican majority in Congress is responding carefully to the President’s proposal on education.Chastened by public reaction to voters’rising concern about education,GOP lawmakers will politely stress their differences with the President while pushing their own programs. National League of Cities March ‘98 These include:vouchers for mostly low-income children to attend pnvate schools,tax breaks for private as well as public schools,educational savings accounts,and a consolidation of current federal education programs into block grants to state and local authorities. Look for these battles to be played out in the appropriations and tax-writing committees of Congress.It is these committees that will determine any final amount for educational spending for the next fiscal year. NLC POLICV~ •State and federal government must act to assume greater responsibility for financing local education to provide greater equalization of education expenditures. •Federal legislation should recognize that minorities,low income persons and persons with disabilities may require higher expenditures to assure equity in educational achievement. >>A CTION.’ •Come prepared with facts about your local school distnct’s capital infrastrucrure needs. •Contact a member of the local school board or the school superintendent and ask about present and future needs. •Take this information to your Congressman/Senator. Explain that several pieces of legislation,including the President’s School Construction proposal,may be able to help leverage money to repair and modernize your community’s school facilities. For further Inforniation contact: José Dhmas Legislative Counsel Center for Policy and Federal Relations (202)626-3020 National League of Cities March 98 TOBACCO SETTLEMENT N LC urges Congress to pass legislation enacting the Tobacco Settlement between states and industry that would provide a financial settlement,which includes reimbursement to local governnlents for costs incurred in serving individuals with tobacco-related diseases.NLC further urges the enactment of an agreement that does not preempt state and local tobacco control laws and regulations.Meaningful legislation should also provide a funding mechanism to offset costs for enforcement of the agreement and ensuring that any revenues raised by increasing the federal tobacco tax be earmarked for health services and tobacco control activities. KEY ISSUES FOR CITIES: Congress will be considering legislation in order to implement the Global Tobacco Settlement,which would settle terms of the State Attorneys General lawsuits versus the tobacco industry. There are several areas that cities would like to see specifically addressed:municipal recoupment of losses associated with tobacco-related cases;preservation of local control over stronger tobacco laws;reimbursement for costs associated with enforcement;and that any revenues raised by increasing the federal tobacco tax be earmarked for health services and tobacco control activities.The settlement provides a way for cities to recoup losses that could be used to build on preventative health programs discouraging tobacco use.The cost of indigent health care within municipalities may also be explored in the cases where cities have filed lawsuits prior to June 20,1997. BACKGROUND: President Clinton and the State Attorneys General announced the framework for a Global Tobacco Settlement in June,1997. The proposed settlement has been negotiated by a group of State Attorneys General and a group of tobacco manufacturers.The proposed settlement would require tobacco companies to provide $368.5 billion over 25 years to the states.The agreement would also provide for limitations on tobacco advertising and stricter controls over tobacco that would be regulated by the Food and Dmg Administration (FDA). Since the lawsuits brought against the tobacco companies were filed by the states,there has been significant debate over the federal government’s demand to share the financial settlement. The lawsuits seek to recoup Medicaid payments,a program financed by federal,state,and local governments.A tentative agreement is in the works between the State Attorneys General and President Clinton on a split of the settlement,where states would receive $196 b~~~on of the settlement,the federal government would receive $175.5 billion of the settlement,and local governments would receive nothing. In enacting legislation,Congress has the authority to modify the agreement or pass provisions that are not included in the proposed agreement.Under current proposed legislation, tobacco companies could be exempt from pending lawsuits and class action suits and could gain immunity from future lawsuits. Furthermore,the Administration has included an additional $10 billion in the 1999 budget for bio-technical research and health care to be financed by excise taxes on tobacco or direct payments to the federal government by tobacco companies. Over the course of 5 years,at least $60 billion in tobacco settlement funds would become pan of the federal budget.The increased spending is integrated into Clinton’s budget,which is contingent upon the Congressional enactment of a comprehensive settlement with the tobacco industry. Many cities and states have already begun to regulate smoking and advertising related to smoking.Many of the current bills being considered allow for state and local governments to continue to enforce and enact laws with stricter standards for the regulation of tobacco,which could change during legislative negotiations.The agreement could set national standards on tobacco regulation that local governments would be forced to implement and enforce,which would preempt local control. Cities will need to ensure that legislation allows for local governments to provide greater public safety protection and remedies as well as retaining the right to control tobacco in ways that are appropriate for local jurisdictions.The settlement could preempt the ability of local governments to file lawsuits against the tobacco industry. National League of Cities March ‘98 NLC POLICY: A resolution passed at the 1997 Congress of Cities in Philadelphia sets forth NLC policy governing the tobacco settlement. The resolution urges that any tobacco settlement legislation include the following provisions:(1)direct funding to local governments for cost related to serving those with tobacco- related diseases;(2)reimbursement to local governments for tobacco-related costs of insuring municipal employees;(3)any funds designated for public health should be targeted to local public health departments;(4)any increased federal tobacco taxes must be earmarked for health services and tobacco control activities;and (3)any federal legislation must not preempt the authority of state and local governments to impose more restnctive laws or regulations of tobacco products. Under NLC policy on federal mandates,NLC will oppose imposition of any federal unfunded mandates upon local governments.If unfunded mandates are proposed,NLC will advocate reimbursement of any city government costs. CONGRES5IONpj~ACTION: Due to of the complexity of the issue and the varier of interests in the Global Tobacco Settlement,many bills have been introduced and hearings are expected in both the House and the Senate. Proposals to enact the settlement into law have been submitted by Senators joha McCain (K-AZ),Ted Kennedy (D-MA),Frank Lautenberg (D-Nj),Dick Durbin (D-Nj),Orrin Hatch (K-Ui). Senator Kent Conrad (D-ND),who is leading a Senate Democratic task force reviewing the settlement,also plans to propose legislation.Senate Majority Whip,Don Nickles (K- OK)has requested legislative recommendations of seven Senate committees with jurisdiction over tobacco by March. On the House side,House Commerce Committee Chairman Thomas Bliley (K-VA)was successful in retrieving secret documents from the tobacco industry in mid-December 1997 after subpoenas were issued.The Commerce Committee will be the primary focus of House action. >>ACTION- •Municipal elected officials should stress that the Global Tobacco Settlement should not preempt state and local governments from implementing more restrictive laws and/or regulations over tobacco than might be set forth in the legislation.It would be helpful to mention what kinds of tobacco laws and regulations exist now in your community and if any new laws and regulations are being considered. •Municipal elected officials should also stress that a federal funding mechanism for cities needs to be created to pay for local public health efforts and local enforcement of tobacco regulation,as outlined in the tobacco agreement. •Highlight that revenues raised by increasing federal tobacco taxes must be earmarked for health services and tobacco control activities,particuJarly since increased federal tax levels on tobacco (around $1.50 to $2.00 per pack of cigarettes)could reduce the revenues that state and local governments obtain in excise taxes because of discouraging behaviors and the limits such a high tax could place on local and state excise taxes For more information con tact Kdstin Corinier Legislative Counsel Center ior Policy and Federal Rela dons (202)626-3020 •Municipal elected officials should be prepared to discuss with their Congressional delegations their city’s contributions and payments towards tobacco-related illnesses in Medicaid payments,indigent medical care,and other forms.Point out if your city has a municipal hospital, municipal employee health care costs related to tobacco, and any other costs of tobacco-related illnesses.Also mention the current public health operations in your city and the mechanism for distribution of public health services. National League of Cities March ‘98 HOUSING AND COMMUNITY DEVELOPMENT N LC commends the Congress for maintaining the nation’s housing and community development programs and services at current funding levels while providing sufficient funds to renew all expiring Section 8 contracts,supports the implementation of Section 8 reforms,urges Congress to agree on reforms of the public housing program to provide public housing authorities (PHAs)the flexibility they need to function efficiently,and urges Congress to finalize legislation to block grant the McKinney homeless programs to localities and to ensure that the Low Income Housing Tax Credit is permanent and improved.Finally,NLC urges Congress,particularly the appropriators,to eliminate all set-asides in CDBG and HOME. KEY ISSUES FOR CITIES: •Should Congress adopt changes to federal public housing laws to exempt or relieve both the federal government and public housing authorities (PHAs)from the obligation to provide housing opportunities for the lowest income families in a cliv or town,imposing greater burdens and responsibilities on cities? •Should Congress impose sanctions on cities by withholding or redirecting their Community Development Block Grants when their public housing authorities are designated troubled by the Department of Housing and Urban Development? •Should Congress propose block granting public and project- based Section 8 housing before completing reform of these programs and while failing to filly find them? •Should Congress consolidate the existing McKinney programs to provide homeless assistance in cities but impose one-size-fits-all restrictions in the use of these fluids for permanent housing? •Should Congress remove or set-aside significant portions of the Community Development Block Grant (CDBG)and HOME state and local block grant funding for uses inconsistent with local needs and priorities? BACKGROUND: Public Housing Reform Both the House (HR.2)and Senate (5.462)passed their respective versions of comprehensive public housing reform last year.However,there has been no visible progress in reconciling their differences.The principle disagreement relates to their inability to agree on which populations should be given priority to live in federally assisted housing.Both bills would repeal current federal housing preferences,which target this housing to the very poor.Both would significantly increase preferences for families with higher incomes,leaving less opportunities for the lowest income families. The preferences proposed in H.R.2 would require not less than 35 percent of public housing units that become available to be occupied by families with incomes at or below 30 percent of area median income (AMI),arid 65 percent of newly available units could serve families between 30 percent and 80 percent of AMI. The preferences in this bill for Section 8 units would require not less than 40 percent of families that receive tenant-based Secuon 8 assistance (vouchers)to have incomes at or below 30 petcent of A2~fl,while 60 percent of available vouchers could serve families between 30 percent and 80 percent of A2~il. The preferences proposed in S.462 would require not less than 40 percent of public housing units that become available must be occupied by families at or below 30 percent of median income (A2.tI),and not less than 70 percent of units must be occupied by families with incomes at or below 60 percent of AMI.This would permit a PHA to provide 30 percent of its available units to families with incomes between 60 and 80 percent of A≥~fl. The preferences in this bill for Section 8 units would require not less than 65 percent of families that receive tenant-based Section 8 assistance (vouchers)must have incomes at or below 30 percent of A2.fl.Not less than 90 percent of these units must be occupied by families at or below 60 percent of AMI. The House bill includes three additional provisions of concern to cities.The first would permit withholding or redirecting a city’s CDBG block grant if the city’s PH becomes troubled due to the acuon or inaction of the city.The second would repeal the C U.S.Housing Act of 1937,which would eliminate the country’s commitment to provide safe,decent,affordable housing for all Americans.The third provision would create a “home rule flexible grant option,”which would allow local governments to receive a direct grant combir g public and tenant-based Section 8 funds in one block grant.Many of the rules that lay out federal housing policies would be suspended (rent setting and very low income targeting would apply).Local governments that choose this option would be able to use the block grant for housing however they see fit,as long as substantially the same number of families are served in some way,and families currently in assisted housing are provided with affordable housing alternatives which ensure their access to housing. The Senate bill would not create sanctions on cities based on the performance of their PHAs,and would leave the goals of the U.S.Housing Act in place.It also takes a more cautious approach to block granting these troubled and inadequately funded programs by proposing a one-city (Indianapolis) demonstration program to test the “home rule flexible block grant option”before deciding whether to shift to block granting all funding for these assisted housing programs Due to these significant differences between the House and Senate,a conference and agreement on public and Section 8 housing reform is not a certainty this year McKinnev Homeless Housing Programs In 1997,the House Banking Committee completed mark up and reported out H.R.217 the “Homeless Housing Programs Consolidation and Flexibility Act”.In the Senate there is interest in introducing a homeless bill early this year The House bill would consolidate all but 30 percent of appropriated,McKinney,homeless,assistance funds into one block grant for distribution to localities and states based on the Emergency Shelter Grant (ESG)formula.Thirty-percent of annual homeless funding would be dedicated to a competitive, permanent housing program for the homeless. There are provisions in the bill to address development of a new formula for distribution of McKinney funds because the current ESG formula does not accurately reflect the number of homeless persons,particularly in large cities.Under the McKinney Act’s current competitive process,cities like New York,Boston and Chicago have been very successful,but under a block grant based on the ESG distribution formula,they would not do nearly as well.For this reason,there is a hold harmless provision in H.R.217 to prevent a precipitous drop in funding to these and other localities. The House bill directs 51 percent of a city’s block grant to non profit homeless housing and service providers.Localities would be allowed to allocate their homeless block grants based on their local needs for emergency shelter and 35 percent of a locality’s permanent housing grant could be used for Section 8 rental subsidies for homeless persons.The bill authorizes $1 billion annually to fund all homeless programs covered under this legislation. NLC POLICY:NLC opposes the repeal of the U.S. Housing Act of 1937,which would eliminate the country’s commitment to provide safe,decent,affordable housing for all Americans.NLC supports permanent regulatory relief for PHAs and targeting provisions which make the balance of federally assisted housing available to the very POOL NLC opposes the House-proposed CDBG sanctions on cities,which would allow the HUD Secretary to withhold or redirect a municipality’s CDBG block grant if its local PHA becomes troubled due to the action or inaction of the city. NLC supports consolidation of homeless programs into one flexible block grant,and opposes federal direction of 30 percent of annual,homeless funding to permanent housing.Cities need flexibility to decide how to best address the housing and service needs of their homeless populations. )*ACTIOPsI}Consult your PHA and city staffs to determine what the effects of the proposed preferences for higher income families,in the public and Section 8 programs, would have on low-income families seeking housing assistance in your community. Let your Congressional delegation know how many poor families ‘vould look to the city for housing if their access to federally assisted housing is eliminated by Congress and/or the PHA. Let your Congressional delegation know the limits of your city’s legal authorin’to control your local PHA. Ask your city staff to determine what city programs would be effected by a cut of 10 percent in your Community Development Block Grant. Urge your Congressional delegation to contact House and Senate Conferees on H.R.2 and S.462 and ask them to: •Support deregulation of public housing but ensure that this housing resource remains targeted to serve families with the greatest housing needs; •Oppose the CDBG sanctions on cities in HR.2 and keep sanctions out of any final agreement;and •Support only a demonstration project of the home-rule block grant until the reforms of public and Section 8 housing are complete and adequate funding is assured. •Urge your Congressional delegation to contact members of the Housing Subcommittees in the House and Senate and urge them to support consolidation of the McKinney homeless programs,so localities can determine their funding priorities based on local need and not a one-size-fits-all, federal ptiotiw for permanent housing. •Urge your Congressional delegation to contact members of the Appropriations Subcommittees in the House and Senate,responsible for housing programs,and ask them to oppose set-asides in the CDBG and HOME programs, which would reduce your city’s grants and allow Washington to direct the spending of some of these cntical resources on federal priorities not local ones. For more informs,don contact;Cameron Whitman,Senior Legisladve Counsel,(202)626-3020 BANKRUPTCY N LC urges Congress to pass legislation that provides for the best interest of cities in the task of revising the Federal Bankruptcy Code. NLC supports the Investment in Education Act (S.1149), which was passed by the Senate in 1997,and urges prompt adoption by the House of Representatives.The Investment in Education Act would allow for municipalities and public entities operating schools to be paid for delinquent property taxes ahead of other creditors when bankruptcies are filed. KEY ISSUES FOR CITIES: Bankruptcy issues are vital to city interests for two primary reasons:1)Private bankruptcies can disrupt the local economy within a municipality because of unpaid debts that are part of a city’s revenue stream;and 2)Cities need to retain the option for using municipal bankruptcy as a means to avert a financial Crisis for the city. BACKGROUND: Congress is considering legislation to overhaul the Federal Bankruptcy Code.The last revision of the Federal Bankruptcy Code was in 1978.In 1994,Congress created the National Bankruptcy Review Commission to complete a two year study of bankruptcy trends and law.The commission was created to provide guidelines for updating the law and to look at ways to reduce the increasing number of consumer bankruptcies in the U.S.The reform effort in 1998,will likely focus on consumer issues,but municipal bankruptcy issues may be included in the discussion. The National Bankruptcy Review Commission released its report to Congress and the White House on October 20,1997,in a 1,300 page document of proposed changes to the bankruptcy code.Many of the provisions outlined are related to consumer bankruptcy issues. The main issues in bankruptcy fall under the following areas: Consumer Bankruptcy Consumer and business bankruptcies are of interest to municipalities since they impact taxpayers and constituents. There is an overwhelming feeling in Congress that bankruptcy options are overused and abused by the public and people should be responsible for their debt,rather than being forgiven under Chapter 7 of the federal bankruptcy code.Chapter 7 allows those filing to liquidate all debt and walk away with a virtually clean credit slate after a set amount of time,usually -10 years.Congress is integrating ways,in the proposed legislation for more people to utilize Chapter 13,which would force those filing for bankruptcy to develop and comply with a plan to repay debts,especially if they fall above a certain income level. Revisions in the consumer bankruptcy area would also equalize regulations that currently vary state to state,such as the homestead exemption,which allows filers to keep homes with a wide range of values. Investment in Education Act The Investment in Education Act was introduced by Senator Grassley (R-L4)with the intention that gains recovered from property taxes by those filing for bankruptcy would be carried over into local education programs.Many local jurisdictions use revenues derived from property taxes or “ad valorem”taxes and suffer when taxes are delinquent due to delays built into the bankruptcy code.This initiative would aid local governments in recovering losses by giving fair access to assets of bankruptcy estates and would prevent debtors from using the Bankruptcy Code to skirt the law. Municipal Bankruptcy The National Bankruptcy Review Commission made several proposals that are likely to be included in any bankruptcy overhaul,as a direct result of Orange County’s filing for bankruptcy in December 1994,after huge losses were incurred in a risky investment strategy. National League of Cities March ‘98 Municipalities utilize Chapter 9 as means to adjust debts and settle disputes with creditors as a vehicle of last resort.Unlike Chapter 7 and 11 fot conirnercial,consumer,and corporate, Chapter 9 on municipal bankruptcy does not permit cities and towns to avert full debt repayment.Rather,it prevents debtor suits against the city until it can reorganize its debts and develop a plan to pay them off,Of the proposed revisions,Security Contract Liquidation Clarifications is the most important to cities.This provision would make cities able to liquidate securities,commodities contracts,repurchase agreements,or terminate swap agreements.This would give a city greater financial flexibility. Congress currently requires that state laws specifically permit a bankruptcy filing in ordet for a municipality to file for Chapter 9. Currently,19 states require specific authothation,and seven of these require specific authorization by a government or commission,officer,or agency in addition to the order of the municipality to tile a Chapter 9. Additionally,revisions and clarifications to Chapter 9 include: •Municipalities would be permitted to serve on creditor’s committees in Chapter 9 cases;and •Protection to investors of tax-exempt municipal obligations would be provided and municipalities would retain the rights to use special revenues for necessary municipal services. NLC Pnlicv NLC supports a priority position for municipal taxes in private bankruptcy.NLC opposes any federal intrusion,which would interfere with a municipality’s ability to reorganize and settle its debts in order to return to financial independence as quickly as possible.NLC opposes federal mandates requiring specific state permission to file for protection. CONGRESSIONa ACTION: Hearings are likely on both the House and Senate sides beginning early in the session.Aggressive action with the hopes of passage of the legislation is anticipated on the House side. The Senate anticipates that the complexity of bankruptcy will necessitate a longer range time frame. Consumer Bankruptcy The Senate is considering the “Consumer Bankruptcy Reform Act of 1997”,S.1301,which was introduced by Senator Grassley (li-IA)on October 21,1997.The bill repeals the right of the debtor to grant permission to the court for a case to be transferred from Chapter 7 to Chapter 13. In the House,Representative McCollurn (li-FL)introduced the “Responsible Borrower Protection Bankruptcy Act,”which is touted as favorable to lenders.The bill contains provisions that would require Chapter —liquidation of debt would not be an option for those filers who could afford to repay at least 20 percent of their unsecured debt,thus forcing the filer to Chapter 13,where they would be required to pay back some of their Investment in Education Act In the first session of the 105th Congress,the Senate passed the Investment in Education Act,S.1149,which allows for property taxes to be paid ahead of other creditors when a person files for bankruptcy.The House has nor yet acted.This issue was not included in the report of the National Bankruptcy Review Commission. Municipal Bankruptcy Early in the second session of the 105th Congress,House judiciary Subcommittee on Commercial and Administrative Law Chairman George XV.Gekas (li-PA)will introduce a bill that will contain the provisions of the National Bankruptcy Review Commission.It is likely that the bill will contain some technical revisions to clami4’the current bankruptcy code in terms of Chapter 9,city bankruptcy issues.The Chapter 9 provision, order for relief —which would allow for municipal bankruptcy filings to provide immediate security for municipalities to repay overdue debts —could be singled out by Gekas.Additionally, the Investment in Education Act could be rolled into Gekas’ bankruptcy overhaul. ~>.>A CTIOM •Municipal elected officials should be prepared to give a dollar amount to the lost property tax revenues in their city due to bankruptcy.Also be prepared to outline any other areas where revenue collection is disturbed by personal or corporate bankruptcies. •Municipal officials should stress that revenues gained from property taxes are usually the revenues that finance education in many municipalities.If you can,provide specific examples of what kinds of benefits would go to your school system if cities had a higher tax priority for uncollected liens in a bankruptcy filing. •Municipal officials should stress that revisions to Chapter 9 should aid municipalities in recovering from a financial crisis and that cities use Chapter 9 to resolve crisis in extreme situations. For mote .inforrna don contact JCristh,Cannier Legislative Counsel Center for Policy and Federal Rela dons (202)626-3020 debts. National League of Cities March ‘98