Bill Summary for Bill Number HB08-1001

Date: 01/30/2008

Final
BILL SUMMARY for HB08-1001

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.002. The amendment strikes the Moved amendment L.003. The amendment changes the Refer House Bill 08-1001, as amended, to the Commi	FAIL PASS PASS

01:39 PM -- House Bill 08-1001 - Concerning the Bioscience Discovery Evaluation Grant Program

Representative Riesberg, prime sponsor, explained that House Bill 08-1001 modifies the structure of the existing Bioscience Discovery Evaluation Grant Program. He continued saying that the bill repeals provisions concerning grants to federal Small Business Innovation Research programs, Small Business Technology Transfer programs, and biofuel research. The bill adds early-stage bioscience companies as possible recipients of program grants.

The committee discussed the grant amounts under the program. Representative Riesberg noted that the program provides grants caped at $150,000 to the offices of technology transfer (OTTs) for each project focusing on life sciences, engineering, material sciences, computer sciences, photonics, or nanotechnology; and $250,000 to early-stage bioscience companies for each project accelerating commercialization of therapeutic or diagnostics products, bioscience technologies for agriculture, and biofuels.

Representative Riesberg distributed amendment L.003 along with a memorandum of fiscal assessment on the adoption of the amendment (Attachment D). He continued by saying that the amendment modifies the funding source provided in the bill for the Bioscience Discover Evaluation Grant Program, and clarifies the eligibility of grant recipients.

The following persons testified:

01:43 PM -- Mr. Don Elliman, Office of Economic Development and International Trade (OEDIT), testified in support of the bill. He commented that the legislation will provide seed money to Bioscience start-up companies. Mr. Elliman closed by saying that Colorado has a number of world-class bioscience research institutions and this bill will continue to promote the industry's growth in Colorado.

01:50 PM -- Mr. Tom Clark, Metro Denver Economic Development Council, testified in support of the legislation. Mr. Clark commented on the importance of the industry's growth to both Colorado and the nation. He closed by saying that this is an area of economic development that the state should be engaged in because the industry's labs in Colorado produce cures for diseases that benefit everyone.

01:58 PM -- Mr. William Farland, Colorado State University, testified in support of the bill. Mr. Farland noted that the federal government is looking more to states to fund research universities and this bill works toward recognizing this policy.

02:13 PM -- Mr. Dick Hinson, Aurora Economic Development Council, testified in support of the legislation. He noted that money in this bill will help bioscience start-up companies by ensuring that their products reach markets.

02:16 PM -- Mr. David Allen, Colorado State University, testified in support of the legislation. He closed by commenting on the control of intellectual property by the industry.

02:36 PM -- Mr. Richard Duke, Colorado Bioscience Association, testified in support of the bill. Mr. Duke discussed the grants that are tied to funding in the bill for bioscience seed companies. He closed by saying that it is not easy to raise money for the industry and this bill will help accomplish this goal.

The committee engaged in a discussion on the level of risk associated with bioscience start-up companies and questioned whether the state is getting a safe return on its investment. In response to the discussion, Mr. Allen pointed out the success of the industry in Colorado. Mr. Allen closed by saying that the venture capital raised by the bill will help bioscience companies because you cannot take one of these companies public as quickly as investors could in the past.

Representative Bruce distributed amendment L.002 and explained that it strikes the safety clause and substitutes the standard 90-day enactment clause (Attachment E). When asked about amendment L.002, Representative Riesberg noted that the safety clause is needed to allow for funding in the bill for FY 2007-08. (The committee took the following actions.)


BILL:	HB08-1001
TIME:	02:47:10 PM
MOVED:	Bruce
MOTION:	Moved amendment L.002. The amendment strikes the safety clause and substitutes the standard 90-day enactment clause. The motion failed on a 6-4 vote.
SECONDED:	Lundberg
		VOTE
	Borodkin	No
	Bruce	Yes
	Frangas	No
	Garcia	Yes
	Kefalas	No
	Kerr J.	Excused
	Labuda	No
	Lambert	Yes
	Lundberg	Yes
	Benefield	No
	Judd	No
Not Final YES: 4 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB08-1001
TIME:	02:50:58 PM
MOVED:	Kefalas
MOTION:	Moved amendment L.003. The amendment changes the funding sources for the distribution to allow for current fiscal year funding. The motion passed on a 7-4 vote.
SECONDED:	Benefield
		VOTE
	Borodkin	Yes
	Bruce	No
	Frangas	Yes
	Garcia	No
	Kefalas	Yes
	Kerr J.	Yes
	Labuda	Yes
	Lambert	No
	Lundberg	No
	Benefield	Yes
	Judd	Yes
Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB08-1001
TIME:	03:06:35 PM
MOVED:	Frangas
MOTION:	Refer House Bill 08-1001, as amended, to the Committee on Appropriations. The motion passed on a 7-4 vote.
SECONDED:	Kefalas
		VOTE
	Borodkin	Yes
	Bruce	No
	Frangas	Yes
	Garcia	No
	Kefalas	Yes
	Kerr J.	Yes
	Labuda	Yes
	Lambert	No
	Lundberg	No
	Benefield	Yes
	Judd	Yes
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS