Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0281.01 Ed DeCecco SENATE BILL 06-048 SENATE SPONSORSHIP Tapia, Bacon, and Evans HOUSE SPONSORSHIP Massey, and Borodkin Senate Committees House Committees Finance A BILL FOR AN ACT Concerning the pilot program for the director of research of the legislative council to use a dynamic model to analyze the economic impact of bills that make a tax policy change. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Economic Development. Reestablishes the pilot program for the director of research of the legislative council to use a dynamic model to analyze the economic impact of bills that make a tax policy change if a certain amount of money is received as gifts, grants, or donations. Allows the dynamic model to be used during the first regular session that it is ready. Establishes the role of the committee on economic development, tourism, and international trade, which may be created by legislation introduced this session, with respect to the dynamic model. Requires the committee on business affairs and labor of the house of representatives and the committee on business, labor, and technology of the senate, or any successor committees, to fulfill the role of the committee on economic development, tourism, and international trade in the event that there is no committee on economic development, tourism, and international trade. Eliminates the express statutory authority to use moneys from the capital construction fund to implement the pilot program. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 2-3-304.5 (1), (4), (5) (a), and (5) (c), Colorado Revised Statutes, are amended to read: 2-3-304.5. Tax policy changes - dynamic model - pilot program - advisory committee - repeal. (1) The director of research shall establish a pilot program for the purpose of developing or procuring a dynamic model to analyze the economic impact of bills introduced by the general assembly that can be used during the 2008 regular session as soon as possible. (4) (a) (I) Prior to the 2008 first regular session that the dynamic model can be used, the director of research shall notify the executive committee of the legislative council whether and the committee on economic development, tourism, and international trade created in House Bill 06-____, enacted at the second regular session of the sixty-fifth general assembly, that the dynamic model is ready to be used to analyze bills during the 2008 upcoming regular session. If the model is ready, the executive committee shall select no more than ten bills to be analyzed using the dynamic model. During the first regular session that the dynamic model is used, the committee on economic development, tourism, and international trade shall recommend to the executive committee ten bills that should be analyzed using the dynamic model. The executive committee shall make the final determination of which of the recommended bills should be analyzed using the dynamic model. Only bills that make a tax policy change are eligible to be analyzed. The analysis of the economic impact using a dynamic model shall be in addition to any fiscal note that is prepared pursuant to the rules of the general assembly. (II) In the event that there is no committee on economic development, tourism, and international trade, the director of research shall notify the committee on business affairs and labor of the house of representatives and the committee on business, labor, and technology of the senate, or any successor committees, that the dynamic model is ready to be used to analyze bills during the upcoming regular session, and such committees shall recommend to the executive committee a total of ten bills that should be analyzed using the dynamic model. (b) After the 2008 first regular session in which the dynamic model is used, the director of research shall prepare a report evaluating how the dynamic model worked during the 2008 regular session and making recommendations for the use of the dynamic model in future sessions of the general assembly, including the feasibility of expanding the scope of the type of bills for which the dynamic model may be used. The report shall be prepared no later than January 1, 2009 January 1 of the year following the session in which the dynamic model was used. The director of research shall present the report to the committee on economic development, tourism, and international trade or, if such committee does not exist, to the committee on business affairs and labor of the house of representatives and the committee on business, labor, and technology of the senate, or any successor committees. (5) (a) It is the intent of the general assembly that for the fiscal year commencing on July 1, 2005 July 1, 2006, no general fund moneys be appropriated for the purpose of implementing this section. For a fiscal year commencing on or after July 1, 2006, moneys from the capital construction fund created in section 24-75-302, C.R.S., may be appropriated to implement this section. (c) Except as otherwise provided in subsection (3) of this section, the director of research shall not undertake the pilot program unless the balance in the fund is one hundred twenty thousand dollars. as of September 1, 2005. If the balance of the fund is at least one hundred twenty thousand dollars, as of September 1, 2005, then the director of research shall contract with an independent contractor to help implement the provisions of this section. If the balance of the fund is less than one hundred twenty thousand dollars as of September 1, 2005, then any gifts, grants, or donations that were received prior to that date shall be returned to the respective donors. SECTION 2. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution (August 9, 2006, if adjournment sine die is on May 10, 2006); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.