Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0724.01D GWF HOUSE BILL 97­1330

STATE OF COLORADO

BY REPRESENTATIVE Pfiffner;

also SENATOR Arnold.

BUSINESS AFFAIRS & LABOR

A BILL FOR AN ACT

CONCERNING A REDUCTION IN THE FUNCTIONS OF THE COLORADO ECONOMIC DEVELOPMENT COMMISSION IN ORDER TO ELIMINATE GENERAL FUND APPROPRIATIONS TO THE COLORADO ECONOMIC DEVELOPMENT FUND.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Specifies that expense reimbursements for members of the Colorado economic development commission shall be paid from available moneys in the Colorado economic development fund. Modifies the powers and duties of the economic development commission. Specifies that the economic development fund shall not receive appropriations from the general fund. Eliminates the authority of the economic development commission to make grants and loans. Provides that outstanding loans and any interest earned thereon that is paid back to the economic development commission shall be credited to the general fund.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  24­46­101, Colorado Revised Statutes, 1988 Repl. Vol., is repealed as follows:

24­46­101.  Legislative declaration.  The general assembly hereby finds and declares that, in light of current economic conditions in Colorado, it is in the best interests of the people of this state that measures be taken to encourage, promote, and stimulate economic development in Colorado. To that end, it is the purpose of this article to bring together people representing a broad spectrum of interests, including higher education, agriculture, advanced technologies, finance and banking, venture capital, energy, and industry, to review the economic condition of Colorado, and to develop and implement programs for the promotion of economic development in Colorado.

SECTION 2.  24­46­102 (1), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is repealed as follows:

24­46­102.  Colorado economic development commission ­ creation ­ membership. (1)  Effective July 1, 1996, the Colorado economic development commission is abolished and the terms of the members of the commission serving as such immediately prior to June 30, 1996, are terminated.

SECTION 3.  24­46­103 (2), Colorado Revised Statutes, 1988 Repl. Vol., is amended to read:

24­46­103.  Commission ­ organization ­ meetings. (2)  The commission shall meet at least once each quarter. Members shall serve without compensation but shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of their duties FROM ANY AVAILABLE MONEYS IN THE COLORADO ECONOMIC DEVELOPMENT FUND CREATED IN SECTION 24­46­105.

SECTION 4.  24­46­104 (1), Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:

24­46­104.  Powers and duties of commission. (1)  The commission has the following powers and duties:

(a)  To adopt an annual budget;

(b)  To develop operating guidelines relating to the manner and forms of financial assistance such as loans, grants, and local match requirements to be provided for various types of projects;

(b.5)  TO DESIGNATE OR TERMINATE ENTERPRISE ZONES OR PORTIONS THEREOF PURSUANT TO THE PROVISIONS OF ARTICLE 30 OF TITLE 39, C.R.S.

(c)  To review the economic needs of the various geographical regions of Colorado;

(d)  To identify the types of businesses which need the most support in terms of economic development;

(e) and (f)  (Deleted by amendment, L. 91, p. 823, 1, effective March 29, 1991.)

(g)  To make information and assistance available for businesses interested in relocating or expanding their operations in the state of Colorado;

(h)  To receive and expend donations or grants from the private sector;

(i)  To contract for those services, including personnel services, and materials required by the activities of the commission;

(j)  To review and recommend to the governor expenditures of moneys of the fund for economic incentives and marketing, as provided in section 24­46­105, for reimbursement for actual and necessary expenses of the commission, as authorized in section 24­46­103 (2), and for operational expenses of the commission;

(k)  To exercise any other powers or perform any other duties which are consistent with the purposes for which the commission was created and which are reasonably necessary for the fulfillment of the commission's assigned responsibilities.

SECTION 5.  24­46­105 (1), (2), and (2.5), Colorado Revised Statutes, 1988 Repl. Vol., as amended, are amended to read:

24­46­105.  Colorado economic development fund ­ creation. (1)  There is hereby created a fund to be known as the Colorado economic development fund, referred to in this article as the "fund", which shall be administered by the commission and which shall consist of all moneys which may be available to it. COMMENCING WITH THE STATE FISCAL YEAR BEGINNING JULY 1, 1997, THE FUND SHALL RECEIVE NO APPROPRIATION FROM THE GENERAL FUND.

(2)  The moneys in the fund shall be subject to annual appropriation by the general assembly, except as provided in subsection (2.5) of this section, for the purposes of this article. Any moneys not expended or encumbered from any appropriation at the end of any fiscal year shall remain available for expenditure in the next fiscal year without further appropriation. Any interest earned on the investment or deposit of moneys in the fund shall not be credited to the general fund. of the state but shall instead be credited to the revolving account created in subsection (2.5) of this section. Contributions of money, property, or services may be received from any state agency, county, municipality, federal agency, person, or corporation for use in carrying out the purposes of this article.

(2.5)  The moneys in the fund may be used by the commission to make grants or loans to both public and private persons and entities for use in carrying out the purposes of this article, subject to the provisions of subsection (3) of this section. The commission may establish whatever terms and conditions it deems appropriate in making such grants or loans. FOR ANY LOANS MADE BY THE COMMISSION PRIOR TO JULY 1, 1997, the loan amount and any interest earned thereon shall be paid back to the commission, and such moneys shall be credited to a special account in the fund to be known as the revolving account THE GENERAL FUND. In accordance with subsection (2) of this section, interest earned on the investment or deposit of moneys in the economic development fund shall also be credited to the revolving account GENERAL FUND. All moneys in the revolving account may be used by the commission to make loans and grants as provided in this subsection (2.5) without further appropriation by the general assembly. The commission shall report to the joint budget committee by January 1 of each year all expenditures from, and the unencumbered balance of, the revolving account FUND. The commission shall not approve grants or loans to state departments or agencies for specific projects which are typically considered by the general assembly in the general appropriation bill or in supplemental appropriation bills unless the joint budget committee approves the application for such grants or loans.

SECTION 6.  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.