Date: 02/15/2006

Final
BILL SUMMARY for HB06-1308

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 06-1308 to the Committee on ApproPASS


02:47 PM -- House Bill 06-1308 - Concerning Net Operating Losses From Bioscience Companies

Representative Massey, prime sponsor, explained House Bill 06-1308 creates the Bioscience Net Operating Loss Purchase Cash Fund to be used by the Economic Development Commission (EDC) to effectively purchase future tax benefits from qualifying bioscience companies. Representative Massey commented that the bill allows the state to provide assistance to select bioscience companies in exchange for the company foregoing the carry-forward of net operating losses. The EDC would be appropriated at least $2.5 million annually for the next five fiscal years for this purpose and associated administrative costs. Representative Massey closed by saying that the Bioscience industry is one of the fastest-growing industries in the state that offers high-paying jobs and contributes to the state's economy.

02:51 PM -- Ms. Denise Brown, Colorado Bioscience Association, testified in support of the legislation and commented that there are over 400 Bioscience companies in Colorado. About 197 of these companies had net operating losses during the last two years and can benefit from this bill. Ms. Brown closed by commenting on a New Jersey program that provides between $60 and $80 million in annual assistance to Bioscience companies.

02:59 PM -- Mr. Ralph Christoffersen, Colorado Bioscience Association, testified in support of the bill and commented that as health care needs grow, the Bioscience industry will respond to consumer needs. Many of these companies take 10 before they become profitable and have a 10 percent chance of success. Mr. Christoffersen closed saying that this bill will over a cash payment for start-up companies that traditionally rely on venture capital funding.

03:07 PM -- Mr. Brian Vogt, Governor's Office of Economic Development and International Trade, testified in support of the legislation and said that the state needs to put more money into economic development. This bill provides an incentive for Bioscience companies in the start-up phase that need money for operating costs. The committee and Mr. Vogt discussed whether $2.5 million is enough money to attract new businesses to Colorado.

The committee continued the discussion on the distribution of money under the bill. Mr. Vogt commented that the growth potential for bioscience businesses is significant and is important to Colorado. Mr. Vogt closed by commenting on industry wealth creation and the growth potential that makes the industry ripe for tax advantages. After a brief committee discussion, Representative Vigil, prime sponsor, placed the bill on the table for action.
BILL:HB06-1308
TIME: 03:29:04 PM
MOVED:Massey
MOTION:Refer House Bill 06-1308 to the Committee on Appropriations. The motion passed on a 10-3-0.
SECONDED:Frangas
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
No
Not Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:30 PM

Adjourn.