Bill Summary for Bill Number HB10-1350

Date: 04/21/2010

Final
BILL SUMMARY for HB10-1350

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.005 (Attachment B). The motion Refer House Bill 10-1350, as amended, to the Commi	Pass Without Objection PASS

11:26 AM -- House Bill 10-1350 - Concerning Economic Development Incentives

Representative Pace, prime sponsor, explained the provisions of the bill and distributed amendment L.005 (Attachment B). He noted that the amendment strikes everything below the enacting clause. In its place, the amendment adds to the duties of the Colorado Economic Development Commission in the office of the Governor. In its annual report to the General Assembly regarding the work of the commission to create new jobs, the amendment requires that report include the number of people employed as a result of any project, as well as the average and median salaries of those individuals.

The amendment also requires the commission to file a separate report with finance committees of the Senate and the House of Representatives by the fifth day of the 2011 legislative session. The report shall include a comprehensive plan detailing how the state can implement a program for tracking the success of every grant, loan, or tax credit program intended to generate jobs. The plan will include a means of determining a method for identifying the number of jobs created.

The committee discussed tax incentives for economic development authorized under state law.

12:05 PM

Recess.

01:35 PM

The committee re-convened and after a brief discussion, heard testimony.

The following persons testified:

01:36 PM -- Mr. Danny Tomlinson, Economic Development Council of Colorado, testified in opposition of the bill. Mr. Tomlinson stated that the bill is not necessary and pointed out the indirect and secondary benefits of tax incentives other than jobs. He continued by discussing a brief history of some of the incentives and closed by responding to questions from the committee.

02:05 PM -- Mr. Matt Cheroutes, Office of Economic Development and International Trade, testified in opposition to the bill. Mr. Cheroutes noted that the Office of Economic Development supports increased transparency but another approach should be used to determine the impacts of economic assistance and grants. Mr. Cheroutes closed by responding to questions about the fiscal note.

02:29 PM -- Mr. Rex Wilmouth, representing the Colorado Public Interest Research Group (CoPIRG), testified in support of the bill and distributed a report on how the 50 states rate in providing online access to government spending data (Attachment C). He closed by discussing the report and responding to committee questions.

02:44 PM -- Ms. Kathy White, Colorado Fiscal Policy Institute, testified in support of the bill.

02:47 PM -- Mr. Phillip Horwitz, Colorado Department of Revenue, responded to committee questions and commented on the issue of tax credits. He closed by commenting on the department's policies regarding taxpayer confidentiality.

03:01 PM -- Mr. Harry Zeid, Legislative Council Staff (LCS), responded to questions about the fiscal note. Mr. Zeid provided the committee with a brief history on the fiscal note process and discussed the role of the fiscal note analyst in terms of drafting an objective, nonpartisan analysis. Mr. Zeid closed by discussing the fiscal note analysis that was used for House Bill 10-1350 and commented on the differences between the Office of Economic Development and staff in terms of the analysis.


BILL:	HB10-1350
TIME:	03:11:29 PM
MOVED:	Benefield
MOTION:	Moved amendment L.005 (Attachment B). The motion passed without objection by those members present.
SECONDED:	Frangas
		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:	HB10-1350
TIME:	03:16:29 PM
MOVED:	Frangas
MOTION:	Refer House Bill 10-1350, as amended, to the Committee of the Whole. The motion passed on a 6-5 vote.
SECONDED:	Benefield
		VOTE
	DelGrosso	No
	Frangas	Yes
	Gerou	No
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	No
	Summers	No
	Swalm	No
	Benefield	Yes
	Judd	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:18 PM

Adjourn.