Date: 04/20/2006

Final
BILL SUMMARY for HB06-1361

SENATE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Motion to refer HB 06-1361 to the Committee on AppPASS



11:15 AM -- House Bill 06-1361

Senator Sandoval, chair, called the meeting to order. Senator Shaffer, prime sponsor, explained the provisions of HB 06-1361 which creates the Colorado Bioscience Research Program to enhance the access of bioscience companies to research infrastructure at research institutions. The bill establishes a process by which a company may request an incentive through the Office of Economic Development (OED) that may not exceed the lessor of the indirect costs associated with the research project, or $20,000 per project. The bill transfers limited gaming tax revenue in FY 2005-06 that would normally go the General Fund for the program. This transfer which would reduce revenue for the Highways Users Tax Fund (HUTF) and Capital Construction Fund (CCF). Senator Shaffer stated that the incentive was needed because research projects are currently being sent out of the state.

The committee discussed using limited gaming funds and its impacts on the HUTF and CCF. Senator Tupa explained that the investment in the bioscience industry would be worth the cost as it would spur economic development and increased business partnerships with the state's research institutions. He distributed a table showing the distribution of limited gaming proceeds under current law (Attachment A).


11:21 AM

Mr. Harry Zeid, Legislative Council Staff, discussed the impacts of HB 06-1360 and HB 06-1361 coupled with HB 06-1201, the tourism funding bill, on General Fund revenue. He indicated that HB 06-1201 would leave about $19 million left for the General Fund from limited gaming revenue. HB 06-1360 and HB 06-1361 would reduce this amount by $3 million for FY 2005-06 only.

The following people testified on the bill:

11:25 AM -- Ms. Denise Brown, Colorado Bioscience Association, spoke in favor of the bill. She discussed the bioscience industry in Colorado which employs about 16,000 workers, paying an average wage of over $63,0000. She indicated that the industry is growing in Colorado. However, she stated that both HB 06-1360 and HB 06-1361 would provide funding resources to fill some key gaps to support the industry. She indicated that the bills would help build relationships between bioscience companies and research institutions. She indicated that bioscience research at research institutions spurs the creation of new companies.

In response to Senator Teck, Ms. Brown explained that HB 06-1360 would address the current lack of investment money that is available after a bioscience research discovery is made to turn the discovery into a commercial product. Senator Shaffer added that the bill would generate good jobs for the state.

11:36 AM -- Ms. Kathi Delahoy, Colorado State University (CSU), spoke in favor of the bill. She stated that the funding provided by HB 06-1361 would help CSU develop core laboratories and acquire more equipment and expertise that is not available in the private sector. She indicated that the bill provides funding to cover the indirect costs, or facilities and administrative costs, associated with a research project. These costs are generally an impediment to the development of relationships between research institutions and companies.

11:43 AM -- Ms. Virginia Love, Colorado Competitive Council (C3), spoke in favor of the bill. She indicated that an objective of C3 was to focus on promoting key industry job clusters and that both HB 06-1360 and HB 1361 help the bioscience industry. The bills would help companies connect with the academic world and get their ideas to the marketplace. She indicated that though the bill would reduce funding to transportation, she thought the benefits to the bioscience industry were worth the cost. She also stated that Colorado ranks low compared to other states in its economic development investment.
BILL:HB06-1361
TIME: 11:46:48 AM
MOVED:Shaffer
MOTION:Motion to refer HB 06-1361 to the Committee on Appropriations with favorable recommendation. The motion passed on a 5 - 1 vote.
SECONDED:
VOTE
Brophy
No
Shaffer
Yes
Taylor
Excused
Teck
Yes
Tupa
Yes
Veiga
Yes
Sandoval
Yes
Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS