Approved:       4-25-07           

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE

The meeting was called to order by Chairperson Nick Jordan at 8:30 A.M. on March 9, 2007 in Room 123-S of the Capitol.

All members were present except:

Jim Barone- excused

Committee staff present:

Kathie Sparks, Kansas Legislative Research Department

Jason Long, Revisor of Statutes

Jackie Lunn, Committee Assistant

Conferees appearing before the committee:

Christy Caldwell, Topeka Chamber

Marlee Carpenter, KCCI

Ashley Sherard, Lenexa Chamber

            Betty Nelson, CBIZ

Others attending:

See attached list.

SB 83-Employment security law; contribution rates

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

Chairperson Brownlee announced the Conference Committee on SB 83 will be Monday morning at 9:00 a.m. or 9:30 a.m. in room 527 S. She also announced there would be a subcommittee on SB 148 and the members will be Senator Emler, Senator Barone and Senator Brownlee. They will start on resolving the technology issues and how to achieve a uniform platform.

Chairperson Brownlee turned the Chair over to Senator Jordan. Chairperson Jordan announced the Committee would be continuing the hearing on SB 342. He called on Betty Nelson, CZIB, to continue her testimony from yesterday as a proponent on the bill. Ms. Nelson presented additional documentation regarding “Timing Concerns” (Attachment 1) and documentation regarding the investment thresholds. (Attachment 2) Ms. Nelson reviewed the documentation for the Committee.

Questions and discussion followed regarding thresholds and the fiscal note.

Chairperson Jordan introduced Marlee Carpenter, KCCI, to give her testimony as a proponent of SB 342. Ms. Carpenter offered written copy. (Attachment 3) Ms. Carpenter stated that KCCI supports the bill, and offered an amendment changing the thresholds. (Attachment 3a) She explained the amendment. KCCI feels the training tax credit is essential with a change to allow for computer based training. They also have concerns with the timing issues as it relates to carry forward of current tax credits that could be lost. Ms. Carpenter stated if there is 10% credit and there is a $2 Million fiscal note that means there is $20 Million investment happening in Kansas and they feel that is a very good thing.

Questions and discussion followed regarding the training tax credit and the fiscal note.

Chairperson Jordan introduced Christy Caldwell, Greater Topeka Chamber, to give her testimony as a proponent of SB 342. Ms. Caldwell presented written copy. (Attachment 4) Ms. Caldwell stated they were in support of the bill with recommendations for changes in the threshold amounts. They feel the thresholds are too high and would be in support of the amendment from KCCI.

Questions followed.

Chairperson Jordan introduced Ashley Sherard, Lenexa Chamber, to give her testimony as a proponent of SB 342. Ms. Sherard presented written copy. (Attachment 5) Ms. Sherard stated there was a need to simplify tax credits and is in support of the bill. They also have concerns with the thresholds being set too high and feel it is critical to maintain the training tax credit.

Chairperson Jordan called the Committee’s attention to proponent written only testimony of:

            Kelly Schoen, CEO, Z3 Graphix (attachment 6)

R. Lee Harris, Cohen-Esrey Real Estate Services, Inc. (Attachment 7)

            D. Roxanne Helpingstine, President, Mission Electronic, Inc. (Attachment 8)

and the opponent written only testimony of :

            Bob Vancrum, Greater Kansas City Chamber (Attachment 9)

Questions and discussion followed regarding rural areas and the tax credit training program. David Bybee, Department of Revenue, will provide information for the Committee regarding the tax credit training programs.

Chairperson Jordan asked Betty Nelson, CBIZ, to work with the Department of Revenue on how the timing issue could be settled.

Chairperson Jordan closed the hearing on SB 342 and adjourned the meeting at 9:35 a.m. The next scheduled meeting scheduled for March 13 at 8:30 a.m. in room 123 S.