February 14, 2012
Support:
HB12-1238 Ensuring K-3 Literacy Education/Massy and Hamner (Support 2/14/12)
This bill repeals the Colorado Basic Literacy Act and re-enacts it with new requirements for literacy. The bill impacts students enrolled in Kindergarten through third grade and requires that students who have been recommended for retention twice, and who are functionally illiterate, be retained in the third grade unless the district superintendent of their school recommends otherwise. The bill provides for new reading programs that are research-based and appropriately tested.
The Denver Metro Chamber of Commerce recognizes that a successful business future for Colorado relies on an educated workforce. Reading at grade level by the end of the third grade is a strong indicator of a student’s likelihood to graduate high school. In fact, 90 percent of students who are functionally illiterate in third grade drop of school before graduation. Early literacy is key to the success of our future workforce; thus, it is a high priority for the Chamber.
SB12-144 Ofc Econ Dev Strategy Grow and Retain Key Industries/ Heath and Scheffel – Summers and Ryden (Support 2/14/12)
This bill instructs the Colorado Office of Economic Development (OED) to create a strategy to grow key industries located in Colorado. To create this strategy, the bill tasks the OED with forming a network working group for each targeted industry composed of stakeholders from each of the industries. The OED is further directed to assist the working groups in their development and implementation of business plans for each industry. In addition, a report on the key industries strategy and each business plan will be included in the Colorado Office of Economic Development’s annual report to the General Assembly.
The Denver Metro Chamber of Commerce supports the economic development approach taken by SB12-144 to foster Colorado’s key industries. Targeting industry clusters for growth and retention is a significant and important step in crafting an economic development strategy that will foster job creation and increase stability and global competitiveness of these key industries. This bill would assist the state in focusing on industries in which Colorado has a clear competitive advantage.
OPPOSE
HB12-1241 Review Enterprise Zone Designations / Ferrandino – (None) (Oppose 2/14/12)
This bill directs the Colorado Office of Economic Development and the Colorado Economic Development Commission to review enterprise zone designations at least once every five years to confirm whether those enterprise zones still meet the criteria necessary for such designation. Currently, a new enterprise zone may be designated on the showing of a population of no more than 115,000 000 for urban zones and 150,000 for rural ones and the meeting of one of a list of statutory-listed criteria. The bill would change the requirements for designating new enterprise zones to meet the population requirement and two of the statutory-listed criteria. Enterprise zone designation tax credits encourage positive investment activity and spur economic development. Especially in these difficult economic times, government should not remove or place more barriers to tools like enterprise zone designations that create a positive economic impact.
HB12-1251 Reforms to Urban and Rural Enterprise Zone Act / Hullinghorst — Heath (Oppose 2/14/12)
For the income tax years beginning on or after January 1, 2014, this bill would limit the amount of income tax credit that a taxpayer may claim for qualified investments in an enterprise zone to $5,000 of that taxpayer’s income tax liability plus 50 percent of the remaining tax liability on amounts more than $5,000 and up to $500,000.
The Chamber’s primary focus is putting Coloradans back to work. Thus, the Chamber opposes this limitation on the amount of income tax credit that a taxpayer may claim for qualified investments in an enterprise zone. Arbitrary caps on enterprise zones reduce their attraction for rural economic development and limit their usefulness as a tool for those communities in Colorado seeking to grow jobs.
HB12-1260 Limit Enterprise Zone Investment Income Tax Credit / Labuda – (None) (Oppose 2/14/12)
This bill would limit the amount of the income tax credit that may be claimed for qualified investments in an enterprise zone to the lesser of: (1) the taxpayer’s actual tax liability for the income tax year up to $5,000, plus 50 percent of any remaining tax liability on amounts more than $5,000 or (2) $250,000. Enterprise zones provide financial incentives to potential investors, which fosters economic growth in rural areas.
As such, the Chamber opposes placing arbitrary caps on the amount of income tax credit that may be claimed for qualified investments in an enterprise zone. Such caps will reduce the effectiveness of these enterprise zones in attracting investors, which will negatively impact the rural communities struggling under current economic conditions.
HB12-1286—Film Production Activities in Colorado/Massey – Ferrandino//Newell and White (Oppose 2/14/12)
This bill, which carries a $3 million fiscal note, funds the Colorado Office of Film, Television and Media and places it within the Colorado Office of Economic Development. In addition, it creates a loan guarantee program. The bill requires in-state production activities to be composed of at least 50 percent Colorado residents for eligibility to claim a performance-based incentive for film production.
The Denver Metro Chamber appreciates efforts to create jobs for Colorado residents. However, the Chamber cannot support legislation that mandates preferences for Colorado residents in today’s global economy. Such preference legislation sends a negative message to Colorado’s partners and, if such legislation is passed in other states, will ultimately negatively impact the ability of Colorado residents to do business in other markets. In addition, the Chamber has concerns that investing resources in the film industry, which does not create lasting and stable jobs within the state, does not represent the best use of Colorado’s limited financial resources.
SB12-101—Authority of Local Improvement Districts/ Nicholson –Bradford (Oppose 2/14/12)
This bill allows a local improvement district that levies a sales tax to include noncontiguous areas. In addition, it allows a local improvement district to use sales tax revenue to fund public events and contains a procedure for property owners to petition for inclusion or exclusion from the local improvement district.
The Chamber opposes this bill as it further complicates an already difficult-to-navigate tax structure. This bill would create more hurdles and administrative burdens for businesses when remitting taxes, which increases the likelihood of expensive errors.
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