HOUSE 3rd Reading Unamended March 17, 2015 HOUSE Amended 2nd Reading March 16, 2015First Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 15-0607.01 Esther van Mourik x4215HOUSE BILL 15-1157 HOUSE SPONSORSHIP Willett and Pabon, Becker J. SENATE SPONSORSHIP Heath and Merrifield, Sonnenberg House Committees Senate Committees Business Affairs and Labor Appropriations A BILL FOR AN ACT Concerning the creation of an economic development working group for highly distressed regions of the state in order to develop legislation to improve the economic vitality of those regions, and, in connection therewith, making an appropriation. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill creates the economic development working group for highly distressed rural and urban regions of the state. The working group consists of: Four members of the general assembly, who are voting members, appointed by leadership in each house in such a way to ensure that of the 4 members appointed, 2 represent rural regions of the state and 2 represent urban regions of the state; The executive director of the Colorado office of economic development, or his or her designee, who is the fifth voting member; and Four other nonvoting members appointed by the legislative members of the working group and the representative of the Colorado office of economic development with consideration for county issues, municipal issues, issues related to economic development in rural areas, and issues related to economic development in urban areas. The working group must select data that is appropriate, consistently available, timely, and reflective of current reality, which data will then be used to ascertain the highly distressed rural and urban regions of the state. The bill requires the working group to: Establish the regions and post their names and boundaries on the office's web site; Discuss and evaluate other economic development efforts in the regions and their best practices; Discuss and evaluate the possibility of creating tax-free zones or other economic development tools for the regions; and Make detailed legislative recommendations to the general assembly in order to quickly improve the economic vitality of those regions. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-48.5-124 as follows: 24-48.5-124. Economic development working group for highly distressed rural and urban regions of the state - legislative declaration - definitions - repeal. (1) For purposes of this section, unless the context otherwise requires: (a) "Office" means the Colorado office of economic development created in section 24-48.5-101. (b) "Regions" means the highly distressed rural and urban regions of the state as determined by the working group as specified in paragraph (a) of subsection (6) of this section. (c) "Working group" means the economic development working group for highly distressed rural and urban regions of the state created in this section. (2) (a) The general assembly hereby finds, determines, and declares that: (I) While overall there are improvements to the Colorado economy, there still exists a significant contraction of local economies in certain areas of the state; (II) Importantly, those areas are experiencing increased economic downturn as measured by changes in such factors as population, employment, weekly wage, assessed value of all property, and concentration of pupils eligible for free lunch; (III) Colorado's many diverse aspects are what make it such a unique and wonderful state, with varying economic sectors and regions making its strength greater than the sum of its parts. It is imperative that all sectors of the state be kept independently strong and be given the chance to improve, prosper, and contribute to the whole, from which all benefit. The general assembly is committed to reaching out to all such areas to ensure this goal is met. (IV) It is important that satisfactory tools are developed to help diversify those local economies and attract economic activity in the areas of the state that most need it; and (V) It is critical to use an approach that avoids using too broad of an area and avoids using metrics or data that are too stale and unreflective of the economic reality in the areas. (b) The general assembly further finds and declares that the creation of an economic development working group focused solely on highly distressed rural and urban regions of the state is necessary so that the working group can use the most timely and accurate data possible that reflects current local economic distress to determine these distressed areas and, once determined, discuss and craft specific legislation to recommend to the general assembly that implement the economic development tools, including the possible establishment of tax-free zones, that are best suited to bring about the economic vitality so critically needed in those regions. (3) (a) There is hereby created the economic development working group for highly distressed rural and urban regions of the state. The working group consists of five voting members, appointed no later than June 2, 2015, as follows: (I) Four members of the general assembly. In making appointments to the working group pursuant to this subparagraph (I), the speaker of the house of representatives, president of the senate, and minority leaders of the house of representatives and the senate shall collaborate to ensure that of the four members appointed, two represent rural regions of the state and two represent urban regions of the state. The four members are appointed as follows: (A) One member of the house of representatives appointed by the speaker of the house of representatives; (B) One member of the house of representatives appointed by the minority leader of the house of representatives; (C) One member of the senate appointed by the president of the senate; and (D) One member of the senate appointed by the minority leader of the senate. (II) The executive director of the office, or his or her designee. (b) In addition to the voting members appointed pursuant to paragraph (a) of this subsection (3), the working group consists of four other nonvoting members appointed no later than June 16, 2015, by the legislative members of the working group and the representative of the office. In appointing the remaining nonvoting members, the legislative members and the representative of the office shall consider persons with expertise in county issues, municipal issues, issues related to economic development in rural areas, and issues related to economic development in urban areas. (4) The working group shall be co-chaired by: (a) One legislative member of the working group who shall be chosen by the members of the working group; and (b) The representative of the office. (5) The working group shall meet as necessary, as determined by the working group, after the first regular session of the seventieth general assembly. The working group may invite representatives from state and local governmental entities, including special districts, businesses or entrepreneurs, chambers of commerce, K-12 education, higher education, or other public or private organizations to participate in the meetings of the working group, as deemed necessary and appropriate by the members of the working group. The working group shall complete its work and make recommendations to the general assembly on or before October 1, 2015. (6) The working group shall: (a) Select data, no later than July 10, 2015, that is appropriate, consistently available, timely, and reflective of current reality to ascertain the highly distressed rural and urban regions of the state. In selecting and discussing the data to be used, the working group shall seek assistance from the economics staff of the legislative council and shall consider the data sources used to determine the eligible distressed rural counties as specified in House Bill 15-1177. Once the working group selects the data that will determine the regions, the working group shall establish the regions and post the region names and boundaries on the office's web site. (b) Discuss and evaluate other economic development efforts in the regions and their best practices; (c) Discuss and evaluate the possibility of creating tax-free zones or other economic development tools for the regions; and (d) No later than October 1, 2015, make detailed legislative recommendations of the highly distressed rural and urban regions identified and the economic development tools chosen, including a process by which such regions are regularly updated, in order to quickly improve the economic vitality of those regions. (7) The office shall provide all staff needed to assist the working group in conducting its duties. (8) All nonlegislative members of the working group shall serve without compensation. This section does not prevent nonlegislative members of the working group from receiving their regular salary if they participate in working group meetings during their regular business hours. (9) The legislative members of the working group shall be compensated for attendance at meetings of the working group and shall receive reimbursement for actual and necessary expenses incurred in the performance of their duties as members of the working group, as provided in section 2-2-307, C.R.S. The total amount available for reimbursement and compensation pursuant to this subsection (9) shall not exceed five thousand dollars. (10) This section is repealed, effective January 1, 2016. SECTION 2. Appropriation. (1) For the 2015-16 state fiscal year, $20,000 is appropriated to the office of the governor for use by the Colorado office of economic development. This appropriation is from the general fund. To implement this act, the Colorado office of economic development may use this appropriation for the administrative costs in staffing and attending the economic development working group for highly distressed regions of the state. (2) For the 2015-16 state fiscal year, $5,000 is appropriated to the legislative department for use by the general assembly. This appropriation is from the general fund. To implement this act, the general assembly may use this appropriation for legislative members of the working group to be compensated for their attendance at the working group meetings. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.