Final
Committee on Economic Development

ECONOMIC DEVELOPMENT

Votes:
Action Taken:
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09:12 AM -- Transportation Infrastructure and Economic Development, Mr. Doug Aden, Vice-Chair, Colorado Transportation Commission

Representative Borodkin, Chair, called the meeting to order. Committee members present were Representatives Massey and Lindstrom. Senators Bacon and Evans arrived later. Mr. Jason Schrock from Legislative Council Staff, and Ms. Nicole Hoffman and Mr. Ed DeCecco from the Office of Legislative Legal Services were also present. Representative Borodkin stated that the November 2 meeting will be devoted to discussing committee legislation and recommendations.

Mr. Doug Aden, Vice-Chair, Colorado Transportation Commission, discussed the economic impacts and importance of transportation infrastructure. A copy of his presentation was distributed to the committee (Attachment A). According to the American Association of State Highway and Transportation Officials (AASHTO), every $1 billion invested in transportation infrastructure creates 40,000 jobs. He noted the importance of good transportation infrastructure to business location decisions. He also discussed the growth of transportation in the state and stated that the necessary growth in transportation infrastructure cannot be sustained at current funding levels. Vehicle travel on state highways is expected to grow by 67 percent by 2030, while freight transportation is expected to double by 2030. He commented on the need for better cooperation among governments and businesses on development plans. He also noted that, by 2030, 25 percent of state highway lane miles will experience congestion, 68 percent of state highways will be in poor condition, and 20 percent of bridges will be in poor condition.

Mr. Aden continued by discussing the importance of transportation to commerce and commented on the need for better north/south and east/west routes. He explained the importance of I-70 to the tourism industry in Colorado. By 2025, a weekend trip from Denver to Vail will take 4 hours. If the corridor is not improved, the tourism industry and commerce will suffer. He also commented on the importance of the ability to move freight in and out of Colorado and efforts to enhance the mobility of freight. The Ports to Plains Trade Route and the Heartland Expressway in eastern Colorado have been designated by the federal government as high priority corridors in anticipation of an increase in freight traffic. He discussed efforts to look at widening these corridors. He concluded by discussing the need for cooperation among governments to solve transportation issues. Local governments approve developments, but the state is charged with maintaining the highways that support the developments.

Representative Borodkin discussed jobs in the transportation industry with Mr. Aden. Mr. Aden commented on the Colorado Department of Transportation's (CDOT) jobs and outreach programs.

09:33 AM

Representative Lindstrom discussed his involvement with the transportation needs of the I-70 corridor and commended CDOT's efforts to involve people who live along the corridor. He thought that the state needed to consider transit along the corridor. He discussed how some travelers avoid driving through Colorado because of traffic congestion and explained that the state should look at additional north/south and east/west corridors through the state, including rail corridors. Economic development, tourism, and commerce are being impacted by congestion. Also, alternatives to transportation fueled by fossil fuels are needed.

Representative Borodkin commented on the need to have people on the tourism board from the transportation industry. Mr. Aden discussed a study conducted of I-70 alternatives. There is a range of options available to relieve congestion, but a lack of funding is the largest impediment to a solution. He explained that the lack of funding for all transportation is the state's largest transportation problem. The state's transportation planning process is adequate.

Ms. Carla Perez, advisory board member, commended CDOT on the job it is able to do given its lack of resources. She inquired about the impact of high gas prices. Mr. Aden indicated that the Highway Users Tax Fund has been growing slowly over the past several years and that the fund does not provide enough revenue for the state's transportation needs; high gas prices will likely slow Highway Users Tax Fund revenue further.


09:47 AM --- The Economic Impact of Mass Transit, Mr. Larry Worth, Colorado Association of Transit Agencies

Mr. Larry Worth, Colorado Association of Transit Agencies (CASTA), discussed the economic benefits of mass transit. A CASTA brochure and a copy of his presentation were distributed to the committee (Attachments B and C). He provided information on how transit impacts communities. RTD moves 50,000 people into downtown Denver every day. The Front Range Express, the commuter service from Fountain to Denver, transports an average of 421 riders a day. He also discussed the importance of County Express, a transit service in northeastern Colorado. He explained how people also use transit for recreation. Transit is very important in certain mountain resorts. RTD also provides access to entertainment events in Denver.

Mr. Worth continued by discussing the economic impact of transit agencies. Agencies employ people and purchase goods and services. Over 3,000 people are employed by transit agencies in Colorado and transit agencies spent over $400 million in 2004 on salaries, maintenance, fuel, and other operating expenses. He concluded by discussing the importance of transit to people without cars. It also important to people who want an alternative to cars to get to places quickly, safely, and cheaply. Businesses also rely on transit for its employees and customers.

Representative Borodkin and Mr. Worth discussed the need for increased and better transit in the state. Representative Borodkin indicated that better transit would benefit the tourism industry. Senator Bacon inquired about how the state can create more mass transit. Mr. Worth explained that increased mass transit will require increased public funding and transportation districts. Partnerships involving transit agencies and private entities could also be utilized. He commented on a CASTA partnership with a private hospital that helps transport the hospital's clients and employees.

Representative Lindstrom discussed the funding of transit in resort communities through sales taxes, which is popular among locals because they believe visitors pay most of the costs for transit. He discussed the need for a statewide transit plan. Mr. Worth explained that CDOT's recent transportation plans have incorporated transit.


10:11 AM -- Economic Development and the Environment, Mr. Steve Andrews, American Association for the Study of Peak Oil, and Mr. Matt Baker, Environment Colorado

Mr. Steve Andrews, American Association for the Study of Peak Oil, distributed information on an upcoming Denver World Oil Conference (Attachment D). He began his presentation on how "peak oil" will change our transportation future (Attachment E). World oil production will peak, it is just a matter of when. Some energy analysts predict that world oil production will peak by 2015. He stated that there are 84 million barrels of oil consumed daily, with 21 million barrels a day being consumed by the U.S. The supply of efficient hybrids are having a slow impact. They represent only 0.1 percent of automobiles and represent only a little over 1 percent of total auto sales. A U.S. Department of Energy report indicated that a peak in oil production will cause higher energy costs and volatility and that without timely mitigation, the economic, social, and political costs will be unprecedented. Also, dealing with the problem will be extremely complex and will require a lot of time and money. He concluded by stating that the issue of peak oil should impact the state's thinking about its economic future. Representative Borodkin commented that Colorado needs to think of itself as part of the global economy.

Mr. Matt Baker, Environment Colorado, and advisory board member, discussed the issue of global warming due to greenhouse gases. He commented on the potential affects of global warming on Colorado, including the possibility of less snowpack which will impact the state's water supply, the tourism industry, the agriculture industry, and the overall economy. He provided information on certain states that are taking action to deal with global warming. New Mexico implemented a policy to reduce emissions and California implemented a policy to import less energy that causes emissions of greenhouse gases. He stated that global warming could benefit Colorado by increasing economic activity in the renewable energy industry. He also explained that the state needs to consider the issue of global warming when it makes decisions about how its invests in infrastructure.

Mr. Baker continued by discussing the selling of emissions credits by energy efficient businesses to other businesses that do not have the technology to reduce emissions. He explained that Colorado needs to implement a similar policy. Ms. Perez asked Mr. Andrews about the impacts of when oil production declines. Mr. Andrews explained that many groups are considering the issue and evaluating options. He stated that it is mostly a grass roots effort at this time. However, some elected officials are beginning to address the issue. The short-term solution is more efficient use of energy, not alternative fuels. He discussed other alternatives, such as converting gases to liquids for energy.

Representative Borodkin commented on the need to continue discussing the issue.


10:35 AM --  The DIA Partnership and Economic Development, Ms. Julie Bender, DIA Partnership

Ms. Julie Bender, DIA Partnership, discussed the economic impact of airports. A copy of her presentation is provided as Attachment F. Passenger air traffic is expected to double by 2020. She commented that an area's accessibility is a significant factor for economic development. Firms are clustering near major airports because of the accessibility, speed, and agility that airports provide to new-economy global supply chains and the connectivity to customers nationally and worldwide. About 40 percent of the value of world trade is delivered by air. She discussed economic development projects surrounding airports in other cities. These projects include business parks, logistics parks and industrial estates, retail centers and wholesale merchandise marts, hotel, tourism, and entertainment centers, and large mixed-use residential developments. Clusters of airport-linked businesses form along major airport arteries up to 25 miles from the airport, with significant economic impact up to 60 miles away. The development around the Dallas/Fort Worth airport is the largest employment center in the Dallas/Fort Worth area. She stated that airports will drive 21st Century business location, job creation, and urban development as highways did in the 20th Century, railroads did in the 19th Century, and seaports did in the 18th Century.

Ms. Bender continued by describing the "aerotroplis" that is emerging around DIA. DIA is the fastest growing area of the entire Denver metro area and contributes $15 billion per year to the Denver metro area economy. Housing is 10 percent more affordable in the area compared to the rest of Denver. The transportation infrastructure around DIA, including highways and planned rail transit, is considered one of the best in the country. DIA is currently the fifth busiest airport in the country. She indicated that travelers to Denver are twice as likely to fly than to drive compared to other cities, so DIA is very important to the area's economy. Information on the economic impact of airports in Colorado and a DIA partnership brochure on the economic profile of the DIA area were distributed to the committee (Attachments G and H). Airports provide over 280,000 direct and indirect jobs in Colorado with $9.8 billion in wages.

Representative Borodkin discussed the importance of all airports in Colorado. Senator Evans discussed the Front Range Airport's multimodal development plan. He inquired about DIA's role in this plan. Ms. Bender indicated that all the entities involved with DIA and the Front Range airport were working close together to define each airport's niche. She explained that due to the expected significant increase in transportation needs, there is enough demand for both airports. She commented on the importance of coordination between the two airports. Senator Evans expressed his concern that DIA has been left out of Front Range airport's plan, especially regarding freight traffic.


10:52 AM -- The Future of the Traditional Energy Industry and Economic Development, Mr. Dag Nummedal, Colorado Energy Research Institute and Mr. Kevin Doran, University of Colorado School of Law

Mr. Dag Nummedal, Colorado Energy Research Institute (CERI), discussed his organization and its mission to coordinate energy research across Colorado. A copy of his presentation was distributed to the committee (Attachment I). He commented that he thought that energy in the future will be provided by solar power. In the meantime, oil and gas demand will grow. He discussed future opportunities in the western United States for unconventional energy resources, including oil shale, ultra deep gas, tight gas sands, shale gas, and gas hydrates. He explained that these resources are starting to become viable economically due to high oil prices. He also commented on the significance of coal. Coal is more evenly distributed throughout the world than oil and it is important to the country's energy security. He discussed the coal gasification process and how it can produce various energy sources. There are opportunities in Colorado to use coal gasification. Another option for future energy is fuel cells. He provided information on the efforts of the fuel cell center at the Colorado School of Mines to make the technology economically sustainable. He discussed SB 05-66's impacts on CERI. This bill requires CERI to conduct specific research and educational programs. He discussed CERI partnerships with other energy-related entities, including the National Renewable Energy Laboratory.

11:09 AM

Representative Borodkin commented on the need to better market the energy activities that are occurring in Colorado. Senator Evans discussed private research efforts. Mr. Nummedal noted that research is shared between the private and public sectors and that there is a need for collaborative public/private research partnerships. Mr. Nummedal also discussed efforts regarding the development of coal gasification in Colorado. Representative Borodkin discussed the importance of Colorado recognizing that it is part of the global economy. Mr. Nummedal discussed a program involving northeastern states placing carbon emissions caps on themselves. The states are proposing incentives for companies to be able to comply with the emissions caps. The states are also discussing the sale of emission allowances under a cap-and-trade system. Such systems allow generating companies that have not used all of their emission quotas to sell the right to emit more pollution to competitors. This allows for the control of the total amount of pollution, while not financially-burdening certain companies. He stated that Colorado would benefit from participating in the program.

Representative Borodkin stated that she wanted to have various industry stakeholders get together to continue discussions on policy recommendations for the state.

Mr. Doran, University of Colorado School of Law, provided an overview of Colorado's current energy profile (Attachment J). About 36 percent of Colorado's energy comes from petroleum, 30 percent comes from natural gas, 32 percent comes from coal, and 2 percent comes from renewable energy. He also discussed energy prices and emissions trends. Permits for oil and gas well are increasingly significantly in Colorado. He stated that creating a state energy strategic plan such as those in California, Pennsylvania, New York, and New Jersey would be an important first step for Colorado. Such plans set goals for renewable-energy use or carbon emissions and outline the steps needed to attain them.


11:27 AM -- Renewable Energy Technologies and Economic Development, Dr. Dan Arvizu, National Renewable Energy Laboratory

Dr. Dan Arvizu, National Renewable Energy Laboratory (NREL), discussed renewable energy and economic development in Colorado. A copy of his presentation was distributed to the committee (Attachment K). He stated that Colorado has tremendous opportunities in the renewable energy industry. He stated that it is just a matter of how fast economies develop their renewable energy industry and which states benefit. He provided information on NREL. He explained that current energy usage is 62 percent inefficient. He commented on the options available for dealing with declining natural resources and increasing energy demand and the opportunities in Colorado for renewable energy development.

Dr. Arvizu continued by explaining that states have begun to develop their own renewable energy policies because of the lack of a federal policy. He discussed renewable energy sources in Colorado, including windpower, solar power, and from ethanol. He explained that public policy is needed to enable the development of renewable energy resources. Policy makers need to think about where to devote resources and how to manage them. He commented on the need for improvement in the education system to ensure that there is renewable energy industry workforce available in the future. Colorado has the necessary entrepreneurial spirt, it just needs to devote resources to education and business development to make sure it becomes a leader in the renewable industry. If Colorado develops clear policy objectives and a strategic plan, it can accomplish renewable energy goals. He commented on states that are doing the right things to help the development of the renewable energy industry, such as New York and California.


11:45 AM -- Economic Development Opportunities in Renewable Energy and Clean Technology, Dr. Thomas Dean, University of Colorado at Boulder and Mr. Jeff Nathanson, Colorado Clean Tech Initiative

Dr. Thomas Dean, University of Colorado at Boulder, discussed economic development opportunities in renewable energy and clean technology. He stated that society's transformation to the use of renewable energies and clean technologies will occur, it is just a matter of who will benefit. He indicated that Colorado has significant opportunity to benefit from renewable energy and clean technology. He stated that Colorado is leading in some areas, but is behind in others. Colorado needs to focus on developing a renewable energy and clean technology industry cluster. He discussed how industry clusters are developed. Colorado has the resources to develop a cluster. He discussed the clean technology and renewable energy start-up firms in the state. The clean technology sector is 7th most invested sector for venture capitalists and has a good rate of return. He discussed University of Colorado initiatives to help develop the renewable energy and clean technology industries. Information on the University of Colorado at Boulder's Deming Center for Entrepreneurship was distributed to the committee (Attachment L).


11:57 AM

Mr. Jeff Nathanson, Colorado Clean Tech Initiative, discussed how industry clusters develop and what clean technology industry cluster ingredients are present in Colorado. He indicated that the ingredients were there, but that Colorado needed to focus its attention and develop a vision to help the cluster develop. Other states that are ahead of Colorado in developing their clean technology industry, such as California, Oregon, Texas, New York, and New Jersey, have focused on developing an industry cluster. Colorado needs to have better integration of various industry stakeholders. It could also utilize the passage of Amendment 37, which mandated a certain percentage of renewable energy, and Fastracks to help develop the industry.

Mr. Nathanson continued by discussing the Colorado Clean Tech initiative and its mission of bringing together stakeholders, businesses, and investors to help develop the clean technology industry. The Initiative has a goal of developing a clean technology plan for the state and helping create 5,000 jobs in the industry by 2010. He explained that market forces will not develop the industry by themselves and that assistance from governments is required. Other states have initiatives that are successful in attracting clean technology businesses. Representative Borodkin discussed the need for increased marketing of the clean technology efforts occurring in Colorado. Mr. Nathanson commented on the need to promote the entrepreneurial activity occurring in the state. He stated that other industry clusters could benefit from a clean technology/renewable energy industry cluster.


12:13 PM -- The Economic Impact of the Recycling Industry, Ms. Marjorie Griek, Colorado Association for Recycling

Ms. Marjorie Griek, Colorado Association for Recycling, discussed the economic impacts of the recycling industry. A copy of her presentation and an article on the recycling industry in Colorado were distributed to the committee (Attachments M and N). She explained that the recycling industry is an untapped economic development resource and that Colorado lags behind other states' recycling industry efforts. The industry pays higher than average wages. The only governmental support from the industry in Colorado is from revenue generated from the waste tire fee, which has helped stimulate the industry. However, the government's role in the industry can also involve providing grant funding, tax incentives, recycling market development zones, and expediting permitting for recycling facilities. Also, public/private partnerships can be effective and the state should designate a primary state agency for oversight of the industry. She commented on other state's recycling industry efforts.

Ms. Griek continued by requesting that the legislature renew the waste tire fee, which is due to sunset in 2007. She also requested that the fee be 25 cents if Referendums C and D pass. She indicated that the extra money could be used for the industry to help develop the recycling infrastructure in the state. She estimated that the fee increase would raise $750,000 annually. Ms. Griek discussed the issue of bottle deposit laws. She explained that retailers do not like storing bottles and there is opposition to bottle transportation costs. Senator Bacon commented that he has observed successful bottle deposit programs in other states. Senator Evans discussed the costs for creating new landfills in Colorado due to the regulatory process.


12:26 PM -- Lunch Break


01:49 PM -- Economic Development Incentive Accountability, Mr. Greg Leroy, Good Jobs First

Mr. Greg Leroy, Good Jobs First, discussed his study on economic development incentives. His organization tracks and promotes best practices in state and local economic development. A review by BusinessWeek of his book, "The Big Giveaway: The Great American Jobs Scam," was distributed to the committee (Attachment O). A copy of his testimony was also distributed to the committee (Attachment P). He stated that most of the $50 billion spent each year by states and cities on economic development is wasted, largely because it is given to companies to do what they would have done anyway. Further, all state and local taxes combined equal only 0.8 percent of the average company’s cost structure, thus tax breaks can rarely make a difference in site location decisions. He explained that the supply of skilled labor, proximity to markets, proximity to suppliers, and access to basic inputs comprise 99.2 percent of a company’s cost structure and are the largest factors in site location decisions. The supply of skilled labor is the largest factor. He commented that the availability of a skilled labor force will become more important as the baby boom generation begins to retire. Therefore, government should focus on policies that enhance the business basics for all employers. Governments should redirect their resources to create more skilled labor and improve public infrastructure systems. He stated that the American Society of Civil Engineers grades the condition of the country's infrastructure a D. He recommend more reinvestment in public goods that benefit all employers and a large reduction in spending on business incentives so that more money could be better spent on skills and infrastructure.

01:56 PM

Mr. Leroy continued by stating that the most important and fundamental reform a state can enact to improve the effectiveness of its economic development programs is disclosure, including annual, company-specific, deal-specific reporting of costs and benefits. He explained that disclosure makes it easier for public officials to avoid questionable deals and focus their resources on deals that are more strategic, create better jobs, and generally conform to a larger long-term plan. Disclosure also tends to generate more analysis of economic development spending. He discussed states with disclosure requirements. Also, he commented that instead of creating another tax credit, it would be more effective to attach comparable job quality standards to existing incentives.

Mr. Leroy also discussed the use of cost-benefit analysis and dynamic modeling. He stated that benefits tend to be exaggerated, while the costs tend to be understated in such models. Users of such models need to ensure that the analysis of costs and benefits are more accurately estimated. He discussed other economic development safeguards that should be implemented by governments, such as clawbacks and job quality standards. He discussed the increased used of market-based job quality standards, which are wage levels tied to the average wage in the region or the industry or the occupation. He stated that the use of these standards in economic development is more consistent with the public purpose of economic development, which is to raise average families’ living standards. He stated that there is not evidence that making economic development policies more transparent has hurt economic development efforts and that transparency is key to a better business climate.

Senator Evans discussed the need for infrastructure improvements in private developments. He commented that private developers are forcing local governments to provide incentives to help them provide infrastructure. Mr. Leroy discussed Maryland's smart growth program. In response to Representative Borodkin's question on whether Colorado's incentives are performance-based, Mr. Leroy commented that it is difficult to determine whether an incentive spurred economic development or whether it would have happened without the incentive. He discussed the advantages of unified economic development budgets. Illinois is currently developing one.

02:13 PM

Senator Bacon inquired about other kinds of policies being implemented to help spur economic development. Mr. Leroy discussed efforts to improve the efficiency of the permitting process. Increasing the efficiency of the permitting process is effective because time is money for businesses. He also discussed the importance of the quality of life to an area's economic development efforts.

Mr. Tony Robinson, advisory board member, asked Mr. Leroy about whether there any successful education policies that are helping develop skilled workforces. Mr. Leroy could not point to any off-hand, but stated that a lack of funding for education is an issue that should be addressed. Representative Borodkin discussed the use of cost-benefit analysis and dynamic modeling.

Representative Lindstrom discussed the impacts of low-income jobs and commented on governments that are subsidizing big box retail. Mr. Leroy commented that governments do not need to subsidize big box retailers because of the overabundance of such stores. He also discussed a successful tax sharing agreement between governments in the twin cities area.


02:24 PM -- Transit-Related Development, Mr. Peter Park, City of Denver Community Planning and Development

Mr. Peter Park, City of Denver Community Planning and Development, discussed transit oriented development and FasTracks. A copy of his presentation was distributed to the committee (Attachment Q). He discussed opportunities in Denver for transit oriented development. He discussed the advantages of transit-oriented development, including added investment value, community enhancement, the creation of unique urban places, the creation of a more healthy environment, and that it can build transit ridership. He stated that as transit grows, commuters will have more choices and there will be less need for automobiles. He stated that Denver is trying to proactively guide growth versus being reactive.

02:33 PM

Mr. Park continued by stating that current transit oriented development opportunities in Denver could accommodate 22,000 new households and 69,000 jobs. He discussed the challenges of creating more transit oriented development in Denver. More development would require environmental cleanup, zoning changes, and more infrastructure. He stated that transit alone does not drive development. Transit oriented development requires support from the private sector and governments.

Mr. Park commented that Union Station is the transportation hub for the area's transit system and that there is a large amount of land around the station for development. He also discussed other high priority stations that the city is targeting for development. He discussed suggestions for how the legislature could support transit oriented development. The state needs to maintain the flexibility of local jurisdictions, endorse transit, support partnerships with RTD and CDOT, and continue tax credits for preservation and low-income housing. He also stated that the Division of Housing could establish transit oriented development areas as priority areas, the state could locate its facilities near transit stations, and provide incentives for state employees to use transit. He discussed examples of how other states are encouraging transit oriented development. California created incentives in the State's Infrastructure and Economic Development Bank, while Maryland provides funding for transit infrastructure and other community improvements. California and Illinois prioritize transit zones for the allocation of low income housing tax credits, while Minnesota has created a transit oriented development land acquisition fund.

02:42 PM

Mr. Park answered questions on how planners find locations for transit oriented development. He commented that office buildings close to transit have lower vacancies than other office buildings. Senator Bacon discussed the potential of creating transit from Fort Collins to Denver and discussed the need for cooperation among the Denver metro area and areas outside of Denver.


02:52 PM -- Recommendations from the Advisory Board, Mr. Brian Vogt, Chair, Advisory Board to the Committee on Economic Development

Mr. Brian Vogt, Office of Economic Development and International Trade (OEDIT), and Chair of the Advisory Board to the Committee on Economic Development, discussed the upcoming Colorado Tech Week. Information on the event was distributed to the committee (Attachment R). He also discussed recent job creation announcements from Juniper Bank and Corporate Express. Since the beginning of September, 2,000 new jobs have been announced in the state. All of them received incentive grants from the state. He stated that the incentives are performance-based; the incentive is not provided unless the job has been created.

Mr. Vogt continued by discussing the recommendations of the advisory board. A copy of the board's recommendations and summary of activities was distributed to the committee (Attachment S). He stated that many of the topics discussed by the advisory board generated ideas that do not require legislation. For example, OEDIT plans to develop an ombudsman role to connect the Advance Colorado Center and universities to develop a streamlined process for technology transfer. The advisory board also noted the need for greater public awareness of the importance of infrastructure needs in Colorado and the link between roads, bridges, water, energy, and lifestyle amenities and economic development.

Mr. Vogt explained that he would like both the economic development committee and the Governor to support each other's legislative package. He stated that the advisory board's recommended bills will add needed tools for Colorado’s ability to attract and retain jobs, especially since the state will soon run out of the money provided by the federal government for economic development incentives. The advisory board's recommended bills include:

- 10-20 percent tax rebate on production payroll in Colorado with Colorado residents;
- 50 percent sales tax reduction on production expenditure including equipment rented from Colorado companies;
- additional 25 percent exemption if the film has Colorado content, locations, characters, words and/or culture;
- 100 percent hotel tax waiver after 14 days of continual occupation;
- 50 percent reduction of duties at ports of entry/weigh stations; and
- total exemption of duties on over-length vehicles brought into state for production purposes.

Representative Borodkin discussed her desire to look at narrowing the conditions necessary to qualify for the job creation tax credit bill recommended by the advisory board.

Senator Bacon discussed concerns over moving the Colorado Council on the Arts from the Colorado Commission on Higher Education to OEDIT. Mr. Vogt indicated that he thought it was a good idea and that it could increase coordination between the arts industry and economic development and tourism efforts. The committee discussed moving the Arts Council into OEDIT.

Senator Evans discussed the need for Mr. Vogt to clarify that the Governor would support the committee's legislative package if the committee would support the Governor's legislative package.

03:19 PM

Representative Massey discussed his idea to incentivize support for the study of math and sciences at higher education institutions in the state. Mr. Vogt commented that the importance of having students educated in math and science came up repeatedly during the advisory board's discussions. The committee discussed the idea.

Mr. Vogt clarified that the committee does not have to adopt all the advisory board's recommendations, including the Governor's legislative package. He stated that he was looking to see if the committee could at least provide support to the advisory board's recommendations. Senator Bacon stated that the committee needs to see legislation in order to consider whether it can support it.

Senator Evans discussed the possibility of creating a consensus on the Governor's legislative package, the advisory board's recommendations, and the committee's legislative package. He stated that it was important to find out the Governor's position on legislation. Representative Borodkin indicated that she wanted the committee to consider each recommendation individually, not as a package. The committee continued to discuss the committee's meeting on November 2nd to make final recommendations.

Senator Evans said he would work on the bills from the Governor's legislative package from last year. Representative Lindstrom indicated he may work on the proposed tourism legislation. Ms. Carolyn Siegel, advisory board member, stated that the AFL-CIO did not support all the recommendations of the advisory board and that it wanted to continue to provide input on the legislation as the process continues.


03:39 PM

The committee adjourned.