House Committee on Business Affairs and Labor (02/12/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	02/12/2015	ATTENDANCE

Time:	01:31 PM to 02:21 PM	Arndt	X
		Garnett	X
Place:	HCR 0107	Keyser	X
		Navarro	X
This Meeting was called to order by		Nordberg	X
	Representative Williams	Pabon	*
		Rosenthal	X
This Report was prepared by		Roupe	X
	Luisa Altmann	Tate	X
		Thurlow	X
		Winter	X
		Kraft-Tharp	X
		Williams	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1180		Referred to Finance

01:32 PM -- HB 15-1180

Representative Kraft-Tharp and Representative Wilson introduced House Bill 15-1180 to the committee. The bill recreates and re-enacts, with amendments, a refund for state sales and use tax paid by a qualified medical technology or clean technology taxpayer (qualified taxpayer). A qualified taxpayer is a business entity that:

employs 35 or fewer full-time employees in Colorado;
is headquartered in Colorado or has more than 50 percent of its employees in Colorado; and
conducts research and development of medical technology or clean technology.

From 2015 to 2019, a qualified taxpayer may claim a refund for state sales and use tax paid on tangible personal property used in Colorado directly and predominately in research and development of medical technology or clean technology. For this purpose, the definition for "clean technology" is expanded. The maximum refund a qualified taxpayer may receive for sales and use tax paid in a calendar year is $50,000. To receive a refund, a qualified taxpayer must submit an application to the Department of Revenue no later than April 1 of the following year and provide certain information to the department.

Representative Kraft-Tharp gave several examples of companies the bill would impact, and explained that several surrounding states have similar laws in place. Representative Wilson explained the economic impact of the companies the bill would apply to and why he is co-sponsoring the bill.

The bill sponsors responded to questions from the committee regarding the bill's sunset of five years, the definition of clean technology, and other topics related to the bill.

01:42 PM -- April Giles, President and CEO of the Colorado BioScience Association, testified in support of the bill. Ms. Giles explained what the Colorado BioScience Association does, the types of companies that are a part of the association, and the impact this bill would have. Ms. Giles responded to questions from the committee.

01:45 PM -- Christopher Myatt, CEO of MBio Diagnostics, testified in support of the bill. Mr. Myatt explained what his company does and how this bill would impact his business. Mr. Myatt responded to questions from the committee regarding the cost of the devices his company manufactures.

01:48 PM -- Brad Amman, CFO of CereScan, testified in support of the bill. Mr. Amman explained what CereScan does, the company's current involvement in a study including military veterans, and the impact this bill would have on his company. Mr. Amman responded to questions from the committee regarding the company's capital investment, how many employees currently employed by CereScan and projected growth, and other topics related to his company.

01:55 PM -- Chris Shapard, Colorado Cleantech Industries Association (CCIA), testified in support of the bill. Ms. Shapard spoke about what CCIA does, the impact the cleantech industry has on the Colorado economy, and how these companies operate. Ms. Shapard responded to questions from the committee regarding the importance of this program for keeping cleantech companies in Colorado and attracting new companies to the state, and other topics related to CCIA.

02:01 PM -- Loren Burnett, CEO of e-Chromic Technologies, testified in support of the bill. Mr. Burnett explained the technology his company is developing, how his company currently operates, and the difficulty his company has raising money. Mr. Burnett responded to questions from the committee regarding his company's technology and the impact this bill would have on his company.

02:06 PM -- Charles Ward, Denver Metro Chamber of Commerce and the Colorado Competitive Council, testified in support of the bill. Mr. Ward explained what the chamber does and the impact the bill would have on two important "clusters" within the Colorado economy (energy and health/wellness).

02:08 PM

Representative Kraft-Tharp and Representative Wilson provided closing remarks regarding the bill and responded to questions from the committee.


BILL:	HB15-1180
TIME:	02:19:21 PM
MOVED:	Kraft-Tharp
MOTION:	Refer House Bill 15-1180 to the Committee on Finance. The motion passed on a vote of 11-2.
SECONDED:	Pabon
		VOTE
	Arndt	Yes
	Garnett	Yes
	Keyser	No
	Navarro	Yes
	Nordberg	No
	Pabon	Yes
	Rosenthal	Yes
	Roupe	Yes
	Tate	Yes
	Thurlow	Yes
	Winter	Yes
	Kraft-Tharp	Yes
	Williams	Yes

Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:21 PM

The committee adjourned.