Bill Summary for Bill Number HB06-1091

Date: 02/08/2006

Final
BILL SUMMARY for HB06-1091

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.001 (the amendment changes the y Moved amendment L.002 (the amendment clarifies tha Refer House Bill 06-1091, as amended, to the Commi	Pass Without Objection Pass Without Objection PASS

02:26 PM -- House Bill 06-1091

Representative McFadyen, prime sponsor, explained that House Bill 06-1091 broadens the existing enterprise zone investment tax credit to include the purchase of commercial vehicles based in an enterprise zone. These purchases are currently excluded under the statutory requirement that the property be used "solely and exclusively" within an enterprise zone. Representative McFadyen explained that to be eligible for the credit, the vehicle must be a 2006 model year or newer commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle weight rating of at least 16,000 pounds. Representative McFadyen distributed amendments L.001 (Attachment B) and L.002 (Attachment C) to committee members and explained that the amendments change the year of the commercial vehicles that can qualify for the credit from 2005 to 2006 or newer vehicles, and include newer equipment. Representative McFadyen continued by saying that under the bill, vehicles would also have to be licensed and registered in the state and housed or based in an enterprise zone for one year after purchase. The credit would apply to eligible vehicles as well as any parts associated with the vehicle at the time of purchase. The amount of the credit is phased-in and achieves economic parity by making a statutory correction.

The following persons testified:

02:31 PM -- Mr. Greg Fulton, Colorado Motor Carriers Association, testified in support of the legislation and distributed a handout on the trucking industry to the committee (Attachment D). Mr. Fulton commented that House Bill 06-1091 will generate jobs in Colorado and act as a tool for economic development. Mr. Fulton commented that the average annual wage for the trucking industry is 10 percent higher than the state's average annual wage which was $40,276 and pointed out that the trucking industry has seen a steady decline in jobs over the last several years. Mr. Fulton closed by saying that House Bill 06-1091 can reverse this trend and talked about some of the tax incentives that other states give to the trucking industry. Mr. Fulton asked committee members to support the legislation.

02:46 PM -- Mr. Pete Roskop, Governor's Office of Economic Development and International Trade, testified in support of the legislation and distributed a letter from the office advocating the legislation (Attachment E). Mr. Roskop said that he was confident that the legislation will assist the state to attract businesses from other states. This legislation will encourage more trucking businesses to become established in Colorado's enterprise zones which include both urban and rural distressed areas.

02:49 PM -- Mr. Frank Gray, Colorado Economic Leadership Council, testified in support of the bill. Mr. Gray commented that the bill corrects a state statute that was initially intended to benefit the commercial trucking industry.

02:50 PM -- Mr. Joe Kiely, Ports-to-Plains, testified in support of the legislation and distributed a fact sheet to committee members (Attachment F).

02:59 PM -- Mr. Mike Riely, Colorado Motor Carriers Association and Western Express, testified in support of the legislation. Mr. Riely commented that the legislation will create jobs and make Colorado more competitive.

03:06 PM -- Mr. Shaun Egan, Iron Woman Construction, testified in support of the legislation and commented on the legislation's ability to make Colorado more competitive.

03:09 PM -- Mr. Tony Gagliardi, National Federation of Independent Business, testified in support of the bill and said the legislation will provide incentives to small businesses and correct a statutory "glitch."

After a brief committee discussion, Representative Vigil, placed the bill on the table for action.


BILL:	HB06-1091
TIME:	03:10:55 PM
MOVED:	Massey
MOTION:	Moved amendment L.001 (the amendment changes the year of the commercial vehicles that can qualify for the credit from 2005 to 2006 or newer vehicles and equipment). The motion passed without objection by those members present.
SECONDED:	McCluskey
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1091
TIME:	03:11:28 PM
MOVED:	Cloer
MOTION:	Moved amendment L.002 (the amendment clarifies that the credit shall only apply to new equipment). The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Benefield
	Cloer
	Crane
	Frangas
	Garcia
	Harvey
	Jahn
	Kerr
	Marshall
	Massey
	McCluskey
	Judd
	Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1091
TIME:	03:12:02 PM
MOVED:	Cloer
MOTION:	Refer House Bill 06-1091, as amended, to the Committee on Appropriations. The motion passed on a 11-2-0 vote.
SECONDED:	Harvey
		VOTE
	Benefield	Yes
	Cloer	Yes
	Crane	Yes
	Frangas	Yes
	Garcia	No
	Harvey	Yes
	Jahn	Yes
	Kerr	Yes
	Marshall	Yes
	Massey	Yes
	McCluskey	Yes
	Judd	No
	Vigil	Yes
Final YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS