Approved: 4-3-07                   

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE

The meeting was called to order by Chairperson Nick Jordan at 8:30 A.M. on March 8, 2007 in Room 123-S of the Capitol.

All members were present.

Committee staff present:

Kathie Sparks, Kansas Legislative Research Department

Jason Long, Revisor of Statutes

Jackie Lunn, Committee Assistant

Conferees appearing before the committee:

Secretary Joan Wagnon, Department of Revenue

Patty Clark, Department of Commerce

Christy Caldwell, Topeka Chamber

Betty Nelson, CBIZ

Ashley Sherard, Lenexa Chamber

Others attending:

See attached list.

SB 342--Enacting the Kansas investment credit act and the Kansas jobs credit act

Chairperson Jordan introduced Kathie Sparks, Legislative Research, to explain SB 342. Ms. Sparks referred the Committee to written outline reviewing the bill. (Attachment 1) Ms. Sparks stated the bill was concerning taxation: relating to credits; enacting the Kansas investment credit act and the Kansas jobs credit act; relating to qualifications and procedures; eliminating certain existing credits. The bill proposes a new Opportunity Zone program that will work in conjunction with the existing Enterprise Zone program. She reviewed the bill for the Committee. During the review, Ms. Sparks referred the Committee to the Kansas Metropolitan and Micropolitan Statistical Areas (Attachment 2). She also referred the Committee to written copy regarding the Kansas Enterprise Zone Act (Attachment 3) and explained the Kansas Enterprise Zone Act.

Questions and discussion followed.

Chairperson Jordan introduced Secretary Wagnon, Department of Revenue, to give her testimony as a proponent of SB 342. Secretary Wagnon presented written copy. (Attachment 4) She stated that the bill makes a more stream line and simple program. The Department of Revenue is in support of the bill and offered a Kansas Department of Revenue (KDOR) balloon. (Attachment 5) Secretary Wagnon explained the balloon to the Committee.

Questions and a discussion followed.

Chairperson Jordan introduced Patty Clark, Department of Commerce, to give her testimony as a proponent of SB 342. Ms. Clark presented written copy. (Attachment 6) Ms. Clark stated the Opportunity Zone proposal should give rural Kansas a competitive advantage over rural areas in neighboring and border states.

She also called the Committee’s attention to written comparison of Enterprise Zone and Opportunity Zone

metro and micropolitan areas and rural areas. (Attachment 7)

Chairperson Jordan introduced Betty Nelson, CBIZ, to give her testimony as a proponent of SB 342. Ms. Nelson presented written copy (Attachment 8) She stated they have concerns with the bill and offered changes. They feel that raising the thresholds and eliminating the training tax credit will diminish Kansas’ ability to compete with its neighbors.

Questions and discussion followed.

Chairperson Jordan announced the hearing would be continued to tomorrow and adjourned the meeting at 9:30 a.m. with the next scheduled meeting March 9^th at 8:30 a.m. in room 123 S.