Approved:       3-14-07           

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE


The meeting was called to order by Chairperson Nick Jordan at 8:00 A.M. on February 14, 2007 in Room 123-S of the Capitol.


All members were present.


Committee staff present:

Amy Deckard, Kansas Legislative Research Department

Kathie Sparks, Kansas Legislative Research Department

Norm Furse, Revisor of Statutes

Jackie Lunn, Committee Assistant


Conferees appearing before the committee:

Patty Clark, Department of Commerce

Jim Snyder, Silver Haired legislature, AARP, Shawnee County Advisory Council on Aging

Bob Vancrum, Greater Kansas City Chamber

Jenny Erdman, Great Kansas City Chamber

Jim Laufenberg, President & CEO, ImmunoGenetix, Lenexa

Edward Stevens, Vice President, Felton International, Inc.

Alan Cobb, Americans for Prosperity

Karl Peterjohn, Kansas Taxpayers Network

Steve Weatherford, KDFA

            Duane Goossen, Budget Director, Department of Administration 

Others attending:

See attached list.

 

SB 288--Reports on workforce development activities

SB 242--Bioscience development projects; certain changes

SB 314--Kansas angel investor tax credit act

SB 193--State debt limitations and procedures

 

Chairperson Jordan opened the hearing on SB 288 and introduced Patty Clark, Department of Commerce, to give her testimony as a proponent of SB 288. Ms. Clark presented written copy. (Attachment 1) Ms. Clark stated the Department of Commerce will be happy to provide an annual compliance and monitoring report on their Workforce Development Division and its programs to the Committee as outlined in the bill. As a point of information, these internal audit activities and personnel are housed in the Department of Commerce Legal Division with a direct reporting line to the Secretary of Commerce.

 

Chairperson Jordan introduced Jim Snyder, testifying on his own behalf, as a proponent of SB 288. Mr. Snyder presented written copy. (Attachment 2) He stated he was a member of the Silver Haired Legislature, AARP, Shawnee County Advisory Council on Aging, and the Senior Action Committee. This bill provides for legislative over-sight regarding various workforce functions of the Department of Commerce. He is in favor of this bill. He stated the bill is a positive step but suggested it does not go far enough. He highlighted some suggestions he feels should be put in other bills to improve workforce development in the state of Kansas.

 

Chairperson Jordan closed the hearing on SB 288.

 

Senator Teichman made a motion to move SB 288 our favorably. Senator Schodorf seconded. Motion carried.

 

Chairperson Jordan introduced Kathie Sparks, Legislative Research, to explain SB 242. Ms. Sparks stated this bill was adding language regarding wet labs and some cleanup on Page 10.

 

Questions followed.

 

Chairperson Jordan introduced Bob Vancrum, Greater Kansas City Chamber, to give his testimony as a proponent of SB 242. Mr. Vancrum presented written copy. (Attachment 3) Mr. Vancrum stated he wrote this bill and it was intended as a cleanup bill on the Bioscience Investment Act of 2004. It was intended to allow municipalities to issue special obligations bonds in a Bioscience district. It changed allowing bond proceeds to be used to pay for all the personal property necessary or appropriate for a wet lab facility and incubator project. Also, adding language to say even though school districts and counties are given the power to review and in effect veto the project they are not to have that power unless their revenues are being adversely impacted by the project.

 

Chairperson Jordan called the Committee’s attention to the written only testimony of Ashley Sherrad, Lenexa Chamber, as a proponent of SB 242. (Attachment 4)

 

Chairperson Jordan closed the hearing on SB 242.

 

Senator Brownlee moved a conceptual amendment to technically clarify working on Page 10 of the SB 242. Motion carried.

 

Senator Brownlee made a motion to move SB 242 out favorably as amended. Senator Schodorf seconded. Motion carried.

 

Chairperson Jordan introduced Kathie Sparks, Legislative Services to explain SB 314. Ms. Sparks presented written copy. (Attachment 5) Ms. Sparks the amendments that SB 314 would make to the Kansas Angel Investor Tax Credit Act.

 

Questions followed regarding the tax credits.

 

Chairperson Jordan opened the hearing on SB 314 and introduced Jenny Erdman, Greater Kansas City Chamber, to give her testimony as a proponent of SB 314. Ms. Erdman presented written copy. (Attachment 6) Ms. Erdman stated SB 314 provides needed enhancements to the very successful Angel Investor Tax Credit program and the Greater Kansas City Chamber is in support of the bill; but would like to see an increase in the time a bioscience business can be in operation and still qualify for the program to ten years. She also reviewed other changes the Greater Kansas City Chamber would like to see in the bill.

 

Chairperson Jordan introduced Jim Laufenberg, President & CEO, ImmunoGenetix, Lenexa to give his testimony as a proponent of SB 314. Mr. Luafenberg presented written copy. (Attachment 7) Mr. Laufenberg stated ImmunoGenetix endorses and supports proposed enhancements to the tax credit act as stated in SB 314.

In closing, Mr. Laufenberg stated the Kansas Angel Tax Credit Act is an innovative program that allows for the nurturing of bioscience in the state creating economic development benefits . Improving the program is encouraging for entrepreneurs.

 

Chairperson Jordan introduced Edward Stevens, Vice President, Fleton International, Inc. to give his testimony as a proponent of SB 314. Mr. Stevens presented written copy. (Attachment 8) Mr. Stevens explained what Felton International, Inc. does stating they work closely with animal health companies in the Kansas City Animal Health Corridor. He stated Felton International, Inc. is in strong support of SB 314.

 

Chairperson Jordan called the Committee’s attention to the written only proponent testimony of Ashley Sherrad, Lenexa Chamber. (Attachment 9) and Joerg Ohle, Chairman, Advisory Board, KC Animal Health Corridor. (Attachment 10)

 

Questions and a discussion followed.

 

Chairperson Jordan closed the hearing on SB 314.

 

Chairperson Jordan stated the Committee would work SB 314 at a later date.

 

 

Chairperson Jordan introduced Kathie Sparks, Legislative Research, to explain SB 193. Ms. Sparks presented written copy. (Attachment 11) She stated SB 193 would require the Kansas Development Finance Authority (KDFA) to annually prepare a debt affordability report. She stated the bill was taken from Florida statute.

 

Questions followed.

 

Chairperson Jordan opened the hearing on SB 193 and introduced Alan Cobb representing Americans for Prosperity, to give his testimony as a proponent of SB 193. Mr. Cobb presented written copy. (Attachment 12) He stated that more disclosure and information about the levels of state debt is welcomed. The bill will provide a very helpful tool to legislators as they consider debt as a finance option. Mr. Cobb reviewed his testimony and highlighted some Kansas debt facts.

 

Chairperson Jordan called the Committee attention to the written only testimony of Karl Peterjohn as a proponent of SB 193. (Attachment 13)

 

Chairperson Jordan introduced Duane Goossen, Budget Director, Department of Administration, to give his testimony as a neutral party of SB 193. He stated the testimony was joint testimony with himself and Steve Weatherford and they would both stand for questions at the appropriate time. Mr. Goossen presented written copy. (Attachment 14) He stated the Department of Administration and KDFA support the idea of coming to a consensus on a reasonable and workable debt policy for Kansas, and annually preparing a report on state debt, which whey believe should be assigned as a joint responsibility to the Department of Administration and KDFA. They also believe the various terms in the bill should be more specifically defined or given contextual structure or purpose; therefore, more discussions should take place about this bill and the Department of Administration and KDFA are ready to participate.

 

Questions and discussion followed.

 

Chairperson Jordan closed the hearing on SB 193 and stated they would wait for a balloon with the requested changes.

 

Chairperson Jordan adjourned the meeting at 9:22 a.m. with the next scheduled meeting, February 15th at 8:00 a.m. in room 123 S.