House Committee on Business Affairs and Labor (04/28/2009)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Date:	04/28/2009	ATTENDANCE

Time:	12:10 PM to 01:35 PM	Balmer	X
		Bradford	X
Place:	HCR 0112	Gagliardi	X
		Liston	X
This Meeting was called to order by		Priola	X
	Representative Rice	Ryden	*
		Scanlan	X
This Report was prepared by		Soper	X
	Christie Lee	Stephens	*
		Casso	X
		Rice	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB09-234 SB09-255		Referred to the Committee of the Whole Witness Testimony and/or Committee Discussion Only

12:10 PM -- Senate Bill 09-234

Representative Rice, prime sponsor, presented Senate Bill 09-234 concerning direction to the Economic Development Commission to develop recommendations for the General Assembly regarding enterprise zones. This bill, recommended by the Joint Select Committee on Job Creation and Economic Growth, directs the Economic Development Commission with assistance from the Colorado Office of Economic Development and International Trade to submit a report to the General Assembly that:

recommends criteria for the creation of a statewide enterprise zone;
evaluates whether to expand the boundaries of existing enterprise zones; and
determines whether state income tax credits under the program should be modified.

The commission is required to submit its report to the General Assembly on or before March 31, 2010 via electronic mail.

Background. Enterprise zones were established to provide incentives and tax credits for private enterprise to expand and for new businesses to locate in economically distressed areas of the state. State law limits the number of enterprise zones in the state to 16. Within these enterprise zones, there are 31 counties designated as enhanced rural enterprise zones.

The total population residing within an enterprise zone boundary cannot exceed 80,000 people in urban areas and 100,000 in rural areas. In addition, an area has to meet a specified criteria that measures economic distress based on unemployment rates, per capita income, and population growth. Enhanced rural enterprise zones offer increased financial incentives for businesses that create new jobs in certain areas of the state. These enhanced zones are located in a county or counties already in a standard enterprise zone that meet more strict criteria than set forth for standard zones.

The program offers nine state income tax credits that encourage specific economic development activity. These tax credits are used throughout the state as an economic development tool to attract, retain, and grow new jobs in the areas most impacted by high unemployment and low per capita income growth.

Recommendations under SB 09-234. This bill requires the commission to evaluate the above criteria and make recommendations on creating a new statewide enterprise zone. The commission shall consider:

the costs and benefits of creating a new statewide enterprise zone;
economic development incentives that may be offered; and
the industries or economic sectors that would benefit from a statewide enterprise zone and

locate a business in Colorado.

This bill also requires the commission to consider whether to expand or modify the boundaries of existing enterprise zones based on modifications to the geographic and economic criteria listed above. The commission is also required to consider:

expanding the nine state income tax credits to more effectively target businesses in the state in

order to stimulate the economy;

narrowing the credits if they are not utilized by businesses; and
ways to mitigate the revenue impacts for changes recommended by the commission.

12:16 PM

Representative Gagliardi asked for clarification that the bill is looking at a potentialcreation of a statewide enterprise zone. She also asked about the make-up of the commission and the current existing enterprise zones.


BILL:	SB09-234
TIME:	12:20:36 PM
MOVED:	Rice
MOTION:	Moved to refer Senate Bill 09-234 to the Committee of the Whole. The motion passed 10-0.
SECONDED:	Ryden
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	Yes
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	Yes
	Stephens	Excused
	Casso	Yes
	Rice	Yes

Final YES: 10 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

12:24 PM -- Senate Bill 09-255

Representative A. Kerr, prime sponsor, presented Senate Bill 09-255 concerning the Colorado Shared Services Authority. This bill creates the Colorado Shared Services Authority to provide services to eligible public sector entities, including state agencies, on a fee-for-service basis. Among other things, the authority is charged with developing a shared services delivery model and Colorado economic development initiative. Shared services could include payroll, human resources, financial reporting, law enforcement (such as 911), utility billing, data center hosting, and electronic mail.

The Governor's Office of Information Technology (OIT) is required to enter into contracts with the authority to implement shared services for state agencies. Local governments, including counties, municipalities, school districts, and special districts may contract with the authority.

The authority is established as a political subdivision of the state, but is not an agency of state government or subject to direction by any state agency. It can contract with any public or private parties and may take advantage of any existing governmental price agreements. It may also issue bonds payable from revenue generated by fees charged for services. Such bonds would be a debt of the authority, but not of the state or any local government.

12:29 PM

Representative A. Kerr explained to the committee that he feels the legislation is not ready and asked the committee to lay the bill over until after sine die. Representative Rice proceeded to witness testimony.

12:33 PM -- Cheri Urda, representing herself, testified against the bill.

12:34 PM -- Casey Atchison, representing himself, testified against the bill.

12:36 PM -- John Conley, representing the Office of Information Technology, testified in support of the bill with amendments. He responded to questions from the committee.

12:45 PM -- Molly Rauzi, representing the City and County of Denver, testified in support of the bill and stated that the bill will create more efficiency. She responded to questions from the committee.

12:51 PM -- Ron May, representing himself, testified on the bill. He talked about the State Information Management Commission that was formed over 10 years ago and various IT projects.

01:03 PM

Representative A. Kerr stated that he has talked with the Senate sponsor, who has asked that the bill to be laid over until tomorrow. The chair laid the bill over until tomorrow upon adjournment.

01:05 PM

The committee adjourned.