Date: 04/07/2010

Final
BILL SUMMARY for SB10-162

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved amendment L.003 (Attachment C). The motion
Refer Senate Bill 10-162, as amended, to the Commi		Pass Without Objection
PASS



02:09 PM -- Senate Bill 10-162 - Concerning the Colorado Enterprise Zone Program

Representative May, and Representative Hullinghorst, prime sponsors, explained the provisions of the bill. Representative May noted that Senate Bill 10-162 makes changes to the Colorado Enterprise Zone Program. The bill increases the population limit to qualify an enterprise zone from 80,000 people to 100,000 people for urban zones and from 100,000 people to 150,000 people for rural zones. He continued by saying that the bill also requires that the population of an enterprise zone be calculated using data from the most recent federal decennial census at the county, municipal, or block levels.

The following persons testified:

02:18 PM -- Mr. Matt Cheroutes, representing the Office of Economic Development and International Trade (OEDIT), testified in support of the bill. He explained that legislation passed in the 2009 session required OEDIT to review the enterprise zone program and after considerable outreach, the office concluded it cannot expand the program in these economic times. Thus, the office is looking at low-cost ways to make the program more effective. Mr. Cheroutes stated the bill will add an additional level of accountability and efficiency to the Colorado enterprise zone program. Mr. Cheroutes responded to questions from committee members about the pre-certification process for businesses that claim enterprise zone tax credits.

02:20 PM -- Ms. Alice Kotrlik, representing OEDIT, responded to committee questions about the pre-certification provisions in the bill. She explained that the bill will change the process and business will need to get prior approval in order to take the tax credits on their income tax form at a later time. Committee discussion continued about this process and about educating business owners about the credits. Ms. Kotrlik explained there would be a two-year process of outreach to educate business owners in these areas.

03:07 PM -- Mr. Aron Diaz, representing AGNC and who is the Northwest Enterprise Zone Administrator, testified in opposition to the bill. He noted that his opposition is due to the pre-certification process in the bill. He closed by urging the committee to oppose the legislation.

03:16 PM -- Mr. Rich Jones, representing the Bell Policy Center, testified in support of the bill and discussed the tax credits and exemptions that need to be re-evaluated by the legislature to balance the budget.

The committee continued its discussion on the change in certification process under the bill and the merits of the Colorado Enterprise Zone Program. At this time, Mr. Jones distributed a study by the Center on enterprise zones (Attachment B).

10HseFin0407AttachB.pdf

03:34 PM -- Mr. Lyle Williamson, representing Verizon Communications, testified in support of the bill.

03:40 PM -- Mr. Pat Duran, representing the Yuma County Economic Development Corporation, testified in support of the bill. He closed by noting the importance of economic development incentives to communities in southwest Colorado.
BILL:SB10-162
TIME: 03:44:16 PM
MOVED:Benefield
MOTION:Moved amendment L.003 (Attachment C). The motion passed without objection by those members present.

10HseFin0407AttachC.pdf
SECONDED:Labuda
VOTE
DelGrosso
Frangas
Gerou
Kagan
Kefalas
Labuda
Roberts
Summers
Swalm
Benefield
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB10-162
TIME: 03:45:24 PM
MOVED:Frangas
MOTION:Refer Senate Bill 10-162, as amended, to the Committee of the Whole. The motion passed on a 9-0 vote.
SECONDED:Kagan
VOTE
DelGrosso
Yes
Frangas
Yes
Gerou
Yes
Kagan
Yes
Kefalas
Excused
Labuda
Yes
Roberts
Excused
Summers
Yes
Swalm
Yes
Benefield
Yes
Judd
Yes
Final YES: 9 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS



03:50 PM

The committee recessed.