Approved: 4-27-07                 

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE


The meeting was called to order by Chairperson Karin Brownlee at 8:30 A.M. on March 20, 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:


Others attending:

See attached list.

 

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


Chairperson Brownlee announced the Committee would be working on SB 342.


She called on Senator Jordan to give a short review of the Angel Tax Credit Annual Report. Senator Jordan stated they had produced a good return on investment and have provided $36.9 Million investment in small startup companies in Kansas which created 139 new high paying jobs.


Chairperson Brownlee turned the Chair over to Senator Jordan. Chairperson Jordan introduced Jason Long, Revisor, to explain the balloon from Senator Brownlee. (Attachment 1) Mr. Long explained each amendment on each page of the balloon.


During the explanation there was discussion with the Committee and the Department of Revenue regarding the NAICS codes.


Upon the completion of Mr. Long’s explanation of the balloon a discussion followed with Secretary Wagnon, Department of Revenue joining in and explaining the NAICS codes included and excluded. Secretary Wagnon presented written copy by Richard Cram on NAICS codes (Attachment 2) and a document Qualifying NAICS (Attachment 3).


Upon the completion of the discussion, Senator Brownlee made a motion to accept the proposed changes on Page 4 of the balloon striking the NAICS codes 922-928,811-813 and 236-238 and adding 923,924,927,928 and lower the thresholds on line 17, from $100,000. to $50,000.; and on line 18, $1,000,000 to $150,000. To make the NAICS codes on page 8 to match the NAICS codes on page 4. Senator Teichman seconded. Motion carried.


Senator Brownlee made a motion to accept the changes on Pages 1, line 12 of the balloon to add 74-50,131, 74-50, 132.; Page 2, line 31 changing shall be to “means a zone”; line 32 striking In addition to other opportunity zone designation criteria established b y the secretary, such criteria shall include (1) an opportunity zone, which shall be and adding “which shall: (1) Be”. It should read “(f) “opportunity zone”means a zone established by the secretary of commerce through rules and regulations which shall: (1) Be comprised of at least one county; (2) be economically disadvantaged; (3) not include any counties in a metropolitan statistical area or micropolitan statistical area; and adding “(4) meet any other criteria established by the secretary through rules and regulations;” Making the same changes on page 8. Senator Barone seconded. Motion carried.


Senator Brownlee made a motion to accept the changes on Page 5, line 22 to accommodate other wage reporting methods, Line 30 ,change 2006 to “2007", line 41and add at the end of the line,“or on an amended return”, and line 42 at the end of the line to add “as long as the amended return filed is within the statute of limitations., Page 6, line 9 lowering the threshold $1,000,000 to “$150,000"and on line 12 $50,000.; on line 36, changing 2009 to “2010 and on line 41, 2006 to 2007; on Page 7 changing 2006 to “2007", on lines 2,6,10,14; on line 20 changing 2007 and 2008 to “2008 and 2009", line 24, 2007 to “2008" line 28, 2006 to “2007", line 29, 2012 to “2013", adding on line 33 “(b) “agreement” means and agreement entered into between an opportunity zone job credit taxpayer and the secretary for benefits under section 12, and amendments thereto.” Seconded by Senator Emler. Motion carried.


Senator Reitz made a motion to accept the amendments on Page 9 of the balloon changing the job thresholds from five to “two” on line 21, and 20 to “five” on line 32. On line 18 adding “(I) “secretary” means the secretary of the department of commerce.”, line 31, adding “, as defined in subsection (c)(1) of section 10, and amendments thereto.”line 39, adding “9 ( c ) Any Kansas job credit taxpayer, as defined in subsection (c)(2) of section 10, and amendments thereto, located in the state of Kansas who engages in new employment at least 20 new employees in the taxpayer’s businesses operating in Kansas shall be allowed a credit of $1,500 per new employee, against the tax imposed by the Kansas income tax act, the premium tax or privilege fees imposed pursuant to K.S.A. 40-252, and amendments thereto, or the privilege tax as measured by the new income of financial institutions imposed pursuant to article 11 of chapter 79 of the Kansas Statutes Annotated, for the taxable year during which the employees were hired.”, line41 adding after return “or an amended return” and at the end of the line adding “as long as the amended return filed is within the statute of limitations”. Senator Teichman seconded.


Discussion followed.

 

Chairperson Jordan called for a vote. Motion carried.

 

Discussion followed with Secretary Wagnon and the Committee.

 

Senator Brownlee made a motion to approve the remaining amendments on page 10 of the balloon adding reference to the new section 16 and 17 and some cleanup; striking the new Section 12 and approve the new Sections 16 and 17. Senator Teichman seconded. Motion carried.

 

Senator Brownlee made a motion to pass the bill out favorably as amended. Senator Emler seconded. Motion carried.

 

Senator Schodorf made a motion to approve the Senate Commerce Committee minutes for: February 7, 2007; February 8, 2007; and February 16, 2007. Senator Barone seconded. Motion carried.

 

Chairperson Jordan adjourned the meeting at 9:30 a.m. with the next meeting scheduled for March 21st at 8:30 a.m. in room 123 S.