Bill Summary for Bill Number SB12-004

Date: 04/26/2012

Final
BILL SUMMARY for SB12-004

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View-->	Action Taken:
Moved to refer Senate Bill 12-004 to the Committee	TIE

11:01 AM -- Senate Bill 12-004

The committee returned to order. Representative Miklosi, prime sponsor, presented Senate Bill 12-004, concerning the creation of a procurement preference to be granted for materials manufactured in the United States. Representative Miklosi discussed the intent of the bill, and explained its effect. Committee members received a letter in support of the bill (Attachment A), and a news article about a "buy American" policy adopted in San Francisco (Attachment B). Discussion ensued regarding the fiscal impact of the bill, and the global nature of the economy, which results in products and product components consisting of parts from global sources.

11:05 AM

The following persons testified regarding Senate Bill 12-004:

11:05 AM -- Mr. Andrew Persons, representing himself, testified in opposition to the bill. Mr. Persons compared the bill to a tariff, and discussed the costs that would accrue to the taxpayer if it were to pass. He also discussed the misallocation of resources that would be encouraged by the bill. Representative Miklosi addressed Mr. Persons' testimony.

11:07 AM -- Mr. Mike O'Connell, representing the Colorado American Federation of Labor-Congress of Industrial Organizations, testified in support of the bill. Mr. O'Connell discussed the loss of manufacturing jobs in the United States during the recent economic downturn, and the merits of Senate Bill 12-004. Mr. O'Connell discussed the countries that would be included within the procurement preference created by the bill based on the World Trade Organization (WTO) agreement. Discussion ensued regarding the WTO clause in the reengrossed bill. Discussion followed regarding the types of products that would be impacted by the bill, and the ability to ensure that the products procured under the preference created by the bill are manufactured in the United States.

11:16 AM

The committee recessed.

11:17 AM

The committee returned to order.

11:17 AM -- Mr. Noel Ginsberg, representing Intertech Plastics, testified in support of Senate Bill 12-004. Mr. Ginsberg discussed his company's work, and the decline in manufacturing in the United States, resulting in the loss of domestic manufacturing jobs. He discussed foreign competition in the manufacturing sector, and the importance of employment availability to the future of the United States. Mr. Ginsberg discussed the merits of the bill. Mr. Ginsberg responded to questions regarding the number of employees that have been laid off from his company that have subsequently relied on public assistance. Discussion ensued regarding a company under Mr. Ginsberg's oversight that is relocating back to the United States from China, and the trend of companies returning to the United States in general.

11:28 AM

Mr. Ginsberg responded to questions regarding the appropriateness of the preference created by the bill, in light of changing trends in global manufacturing. Mr. Ginsberg responded to questions regarding the impact of the cost of energy on his business.

11:31 AM

No amendments were offered to Senate Bill 12-004.


BILL:	SB12-004
TIME:	11:31:32 AM
MOVED:	Todd
MOTION:	Moved to refer Senate Bill 12-004 to the Committee on Appropriations with a favorable recommendation. The motion failed on a 4-4 vote.
SECONDED:	Court
		VOTE
	Baumgardner	No
	Casso	Yes
	Court	Yes
	Duran	Yes
	Joshi	No
	Liston	Excused
	Todd	Yes
	Coram	No
	Kerr J.	No

YES: 4 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: TIE

11:33 AM

The committee adjourned.