Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM

SB 12-124 Eliminate Regional Tourism Project Limit Sen. Harvey Staff Name: Mark Aldrich What the Bill Does: This bill lifts the restrictions on the maximum number of projects that the Colorado Economic Development Commission (EDC) may approve. According to the EDC, the commisions main goals include cooperating with state, local, and private entities in order to assist with business expansions and company relocations, which, in turn, are intended to promote job creation throughout the state.1 One way the EDC accomplishes this goal is by awarding tax incentive financing status, called incentive awards, provided for under the Regional Tourism Act.2 These awards help fund proposed tourism projects, and the eligibility requirements for receiving an award are designed to ensure that the proposed tourism project attracts revenue from residents outside of the state. Individual proponents of tourism projects apply for the awards, with a maximum of two awards approved by the EDC every year. SB 12-124 removes the provision that restricts the number of awards to two per year, and replaces it with a provision that allows as many incentive awards to be given as the EDC may deem appropriate, subject to the awards being evaluated and approved one at a time. Colorado Context: When the Regional Tourism Act was originally established, the Commission was limited, simply, to approving two projects.3 In 2011, the legislature amended the Act to allow for two projects per year. SB-124 would follow on the heels of last years amendment by abolishing the two per year restriction, and replace it with the one at a time rule. National Context: Several other states have created state-funded programs charged with increasing tourism revenue, usually in the form of matching grants. Oregon, for example, provides matching grants to sponsors of proposed tourism projects. While Oregon does not cap the number of grants that may be awarded, it does limit the total amount of award money that may be spent in a fiscal year (for 2011-2012, a total of

Colorado.gov, Economic Development Commission, (last visited Feb. 3, 2012), http://www.colorado.gov/cs/Satellite/OEDIT/OEDIT/1165009699743 2 C.R.S. 24-46-301, et seq. 3 leg.state.co.us, House Bill 11-1311, (last visited Feb. 3, 2012), http://www.leg.state.co.us/clics/clics2011a/csl.nsf/fsbillcont3/3706B7091816BF718725787F00642CB4?open&file=1311_enr.p df

DRAFT 2/6/2012 9:59 AM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

$75,000).4 In contrast, the incentive awards under Colorados Regional Tourism Act are funded through tax increment financing to the tourism area under consideration. Bill Provisions Amends the statute governing regional tourism awards by removing the two per year requirement and replacing it with a provision that the EDC may approve as many awards as it may deem appropriate, subject to the requirement that each award shall be evaluated and approved or disapproved in its entirety before a new application may be considered. Fiscal Impact: TThere is no fiscal note currently available for SB 12-124.

http://industry.traveloregon.com/Departments/Tourism-Development/Matching-Grants-Program.aspx

DRAFT 2/6/2012 9:59 AM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.