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0541 Economic Development Committee University of Denver Digital Commons @ DU Colorado Legislative Council Research All Publications Publications 12-2005 0541 Economic Development Committee Colorado Legislative Council Follow this and additional works at: https://digitalcommons.du.edu/colc_all Recommended Citation Colorado Legislative Council, "0541 Economic Development Committee" (2005). All Publications. 574. https://digitalcommons.du.edu/colc_all/574 This Article is brought to you for free and open access by the Colorado Legislative Council Research Publications at Digital Commons @ DU. It has been accepted for inclusion in All Publications by an authorized administrator of Digital Commons @ DU. For more information, please contact [email protected],[email protected]. Economic Development Committee Report to the COLORADO Colorado Legislative Council Research Publication No. 54 1 GENERAL ASSEMBLY December ZOO5 RECOMMENDATIONS FOR 2006 Report to the Colorado General Assembly Research Publication No. 541 December 2005 COLORADO GENERAL ASSEMBLY EXECUTIVE COMMITTEE COMMITTEE Sen. Joan Fih-Gerald. Chairman Sen. Norma Anderson Rep. Andrew Romanoff. Vice Chairman Sen. Peter Groff Sen. Ken Gordon Sen. Steve Johnson Sen. Andy McElhany Sen. Ron Ted Rep. Alice Madden Sen. Ron Tupa Rep. Joe Stengel Sen. Sue Windels Rep. Dorothy Butcher STAFF -- Rep. Bill Cadman Kirk Mlinek, Director Rep. Mike Garcia Daniel Chapman. Assistant Director. Rep. Diane Hoppe Administration LEGISLATIVE COUNCIL Rep. Mike May Deborah Godshall, Assistant Director. Rep. Angie Paccione Research ROOM 029 STATE CAPITOL DENVER, COLORADO 80203-1784 E-mail: [email protected] 303-866-3521 FAX:303-866-3855 TDD: 303-866-3472 December 2005 To Members of the Sixty-fifth General Assembly: Submitted herewith is the final report of the Economic Development Committee. This committee was created pursuant to House Joint Resolution 05-1023. The purpose of the committee was to work with the business community to develop policies to enhance the state's business climate. At its meeting on November 15,2005, the Legislative Council reviewed the report of this committee. A motion to forward this report and the bills therein for consideration in the 2006 session was approved. Respectfully submitted, IS/ Senator Joan Fitz-Gerald Chairman TABLEOF CONTENTS PAGE ... LETTER OF TRANSMITTAL ....................................... 111 TABLEOFCONTENTS ............................................ v RECOMMENDED BILLS AND FISCAL NOTES ....................... vii MEMBERS OF THE COMMITTEE ................................... ix MEMBERS OF THE ADVISORY BOARD .............................. x EXECUTIVESUMMARY ............................................ xi Committee Charge ............................................... xi Committee Activities ............................................ xi Committee Recommendations .................................... xiv STATUTORY AUTHORITY AND RESPONSIBILITIES .................. 1 COMMITTEE ACTIVITIES .......................................... 3 Colorado's Economy and Business Climate ........................... 4 Economic Development Incentives ................................. 5 Educating Colorado's Workforce ................................... 8 University Research, Technology Transfer, and Economic Development . 10 Tourism and Economic Development .............................. 11 The Arts and Economic Development .............................. 12 Transportation Infrastructure and Economic Development .............. 13 The Economic Development Potential of the Renewable Energy and Clean Fuel Industries ........................................... 15 Other Economic Development Issues .............................. 16 SUMMARYOFRECOMMENDATIONS .............................. 17 Bill A - Colorado Economic Development Commission, and, in Connection Therewith, Establishing Minimum Standards , for Recipients of Moneys from the Colorado Economic Development Fund, Establishing Reporting Requirements for the Recipients, and Extending the Statutory Repeal Date for the Commission ................. 17 Bill B Transfer of the State Council on the Arts from the Department of Higher Education to the Colorado Office of Economic Development ............................. 17 Bill C - - Pilot Program for the Director of Research of the Legislative Council to Use a Dynamic Model to Analyze the Economic hpact of Bills that Make a Tax Policy Change . 18 RESOURCE MATERIALS .......................................... 19 Meetingsummaries ............................................ 19 Memoranda and Reports ........................................ 20 PAGE Bill A - Concerning the Colorado Economic Development Commission, and, in Connection Therewith, Establishing Minimum Standards for Recipients of Moneys from the Colorado Economic Development Fund, Establishing Reporting Requirements for the Recipients, and Extending the Statutory Repeal Date for the Commission .......... 21 - FiscalNote ............................................... 28 1 B - Concerning the Transfer of the State Council on the Arts fiom the Department of Higher Education to the Colorado Office of Economic Development ................................... 29 - Fiscal Note ............................................... 39 Bill C - 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 ....... 41 - FiscalNote .............................................. 46 Members of the Committee Representative Alice Borodkin Senfitor Abel Tapia Chair VicsChair Reprercntative Gary Lindstmn Senator Bob Bswn Representative Tom Massey Scnatw Jahn Evans Legislative C~uncilStaff Josh Hanvood Economist 111 Office or Legislative Legal Services Niwb hffmm Smiw Staff Attorney .Advisary Board Members Cdorach OJwof Econcmic DeveCopment Minuriv Business 13rian Vogt, Chair Leroy Romero Ofice of Economic Development Colorado Minority Business and International Trade Ofice Urban Chamber ~jCornmerce Rurd Chamber of Commerce Tom Clark Bobby Lieb Metro Denver Economic Development La Plata Economic Capporation Development Action Partnership Econonric Deve/opmerat Orgrmimtfon Trade Association Bill Eecker Su Hawk Adams County Economic Colorado Sohare and Internet Development Association Educn tional Conlrnunity Organid Labor Dr. Larry Penley Carolp Siege1 Colorado State University AFL-CIO &raU Brrsinem Tmnsprtafion Public Poky Bonifacio A. Coeyleon Carla Perez Bytrly & Cosyleon Construction Carter & Burgess Hedtk Public Policy Emvironmenr Public Policy Marguerite Salazat Matt Baker Valley-wide Health Systems, Inc. Environment Colorado Corporu~eBusiness Douy Ada Retired, former bank preaideni Committee Charge The Committee on Economic Development was created to work with the business community to develop policies to enhance the state's business climate. Specifically, the committee was charged with: evaluating ways to enhance the state as a prime location in which to start and grow a business; determining ways to promote innovation, productivity, and competitiveness in the Colorado business community; considering policies that would heighten the ability ofbusinesses to provide diverse, secure, and high-paying career opportunities for Colorado citizens; identifying the policies and practices ofthe state and local governments that could be enhanced to maximize Colorado's competitiveness in the global marketplace; I working with the educational community to determine how Colorado's institutions of higher education can help Colorado's citizens compete in the 2 1st century economy; and soliciting input from experts in the community in the areas of transportation, public health, and environmental conditions regarding policies or practices that could be implemented to foster economic development in the state. A 15-member Advisory Board to the Committee on Economic Development, representing different sectors of the state's economy and geographic areas of the state, was appointed to assist the committee in its work. The advisory board was charged with making presentations and providing written comments and other relevant data to the committee upon request. Committee Activities The Committee on Economic Development held six meetings during the 2005 interim. Meetings included a variety of presentations by representatives of economic development organizations, businesses, educational institutions, trade groups, the advisory board, and otherinterested parties. The advisory board met separately to discuss ways to promote economic development in the state; and, several advisory board members participated at the committee's meetings. The committee meetings focused on: (I) Colorado's economy and business climate; (2) the use of economic development incentives; (3) educating Colorado's workforce; (4) tourism; (5) the arts industry's role in eco~~omicdevelopment; (6) transportation issues; and (7) energy issues as they relate to econonlic development. Colorado's economy aizd brrsiiress climate. The committee heard testimony regarding Colorado's economy from local economist Tucker Hart Adams who was cautiously optimistic of the state's economy, but warned of a potential housing bubble and high levels of consumer debt. The Metro Denver Economic Development Corporation, as well as a variety ofbusinesses explained that Colorado's strengths include a low tax and regulatory environment, a high quality of life, and a highly educated workforce. Colorado had the 5Ih lowest combined state and local tax
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