Date: 01/27/2009

Final
BILL SUMMARY for HB09-1035

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved amendment L.001. The amendment makes a numb
Moved amendment L.002 (makes technical changes to
Refer House Bill 09-1035, as amended, to the Commi		Pass Without Objection
Pass Without Objection
PASS



09:50 AM -- House Bill 09-1035 - Concerning Sales and Use Tax Refunds for Certain Technology Companies

Representative Riesberg, prime sponsor, explained the provisions of the bill. He explained that House Bill 09-1035 would allow certain clean technology and medical device firms to receive refunds on sales and use taxes paid on the purchase of equipment used in research and development. The firms must be headquartered in Colorado and have no more than 50 employees. Each taxpayer may not receive more than a $50,000 refund during any calendar year.

The committee discussed the $50,000 cap in the bill. Representative Riesberg noted that the cap was placed in the bill to limit impacts.

The following persons testified:

09:55 AM -- Mr. Larry Blankenship, ValveXchange Inc., testified in support of the bill. Mr. Blankenship explained that his company is developing a new heart value that will make it possible for heart patients to avoid open-heart surgery. He explained the development process of the valve and the sale of the product after its approval by the FDA. He closed by saying that the development of the product and the research tied to its production have created jobs in Colorado. He continued by saying that the refund mechanism in House Bill 09-1035 will be very valuable to ValveXchange and the state. The incentive in House Bill 09-1035 will result in other companies moving to Colorado.

The committee discussed the use of venture capital rather than state money in the funding of "clean technology" firms. Mr. Blankenship responded by saying that venture capital is an important funding source for many start-up companies. However, through 2008, venture capital was strong but now these companies are taking a "wait and see" attitude given the economy. The committee discussed the products that would be used by ValveXchange that would qualify for the sales and use tax refund. Mr. Blankenship continued by discussing the operation of the business.

The committee closed the discussion by asking why the clean technology industry should receive this tax break over other industries. Mr. Blankenship responded by saying that the industry is well-positioned to attract businesses from other states that will create high paying jobs and provide money back to the state.

10:18 AM -- Ms. Denise Brown, Colorado Cleantech Industry Association (CCIA), testified in support of the bill. Ms. Brown discussed the bill as an incentive for the medical device industry that will create new jobs in Colorado. She closed by pointing out that the industry is closely tied to the research institutions that are based in Colorado. This bill will provide an important incentive to the industry.

The committee discussed the number of jobs that would be created by the sales and use tax refund in the bill. Ms. Brown responded by saying that as many as 50 jobs per year may result from the legislation and noted that other economic gains may also be realized.


10:39 AM

The bill was placed on the table for action and amendments L.001 (Attachment A) and L.002 (Attachment B) were distributed to the committee. Representative Riesberg explained that amendment L.001 makes a number of technical changes and includes a 6 percent trigger. It also contains a repeal date of July 1, 2014. Amendment L.002 makes technical changes to amendment L.001.

09HouseFin0127AttachA.pdf 09HouseFin0127AttachB.pdf
BILL:HB09-1035
TIME: 10:40:42 AM
MOVED:Frangas
MOTION:Moved amendment L.001. The amendment makes a number of technical changes and includes a 6 percent trigger, and a repeal date of July 1, 2014. The motion passed without objection by those members present.
SECONDED:Kefalas
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1035
TIME: 10:45:38 AM
MOVED:Frangas
MOTION:Moved amendment L.002 (makes technical changes to amendment L.001). The motion passed without objection by those members present.
SECONDED:Summers
VOTE
Apuan
Benefield
Gerou
Kefalas
Kerr A.
Lambert
Roberts
Summers
Swalm
Frangas
Judd
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1035
TIME: 10:46:51 AM
MOVED:Kefalas
MOTION:Refer House Bill 09-1035, as amended, to the Committee on Appropriations. The motion passed on a 7-4 vote.
SECONDED:Benefield
VOTE
Apuan
No
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
No
Roberts
Yes
Summers
Yes
Swalm
No
Frangas
Yes
Judd
No
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS