Legislative Actions & Tech Talkin' Govs 2006, Part IV

The fourth installment to Walkin' the Tech Talkin' Gov Walk (see the April 17 , May 8 and June 5 issues of the Digest) covers the outcomes of the 2006 legislative sessions within Colorado, Iowa, Minnesota and Vermont. Following is a synopsis of bills passed and budget appropriations relevant to tech-based economic development and the priorities outlined in respective gubernatorial addresses at the beginning of 2006.



Colorado

Gov. Bill Owens signed into law a $26.5 million economic development package, which includes investments in bioscience and job creation. While the bulk of the funds are slated for increasing tourism ($19 million), two of the bills include funds aimed at increasing science and technology research and creating better jobs in the state.



HB 06-1360 provides $2 million in one-time funding for the advancement of new bioscience discoveries at Colorado research institutions. The legislation creates the Bioscience Discovery Evaluation Grant Program within the Colorado Office of Economic Development to improve and expand the evaluation of new bioscience discoveries with the intent to commercialize new products and services. Grants are to be distributed to technology transfer offices in amounts of up to $150,000 per bioscience research project.



Under HB 06-1017, the Economic Development Commission has the authority to offer financial incentives to any business that creates a minimum of five new jobs in rural areas and 10 in urban areas. Jobs must be created and maintained for at least one year before the company can receive the incentives. The legislation allocates $3 million annually to the program, of which 15 percent is earmarked for job creation within Enterprize Zones outside the Metro Denver area.



Gov. Owens also signed a bill that provides funding to a new Colorado renewable energy collaboration. HB 1322 creates the Colorado Renewable Energy Authority and allocates up to $2 million per year for three years, beginning in fiscal year 2007. Under the legislation, the Authority must use the allocation of state matching funds to support one or more proposals of a consortium consisting of the Colorado School of Mines, Colorado State University, University of Colorado, and the National Renewable Energy Laboratory for federal energy research funding and energy-related research funding from federal agencies and other public and private entities.



Iowa

The General Assembly approved Gov. Tom Vilsack's request of $50 million for the Iowa Values Fund within the Department of Economic Development (refer to HF 2459). Established in 2003, the Iowa Values Fund supports economic development opportunities in the specific areas of life sciences, software and information technology, advanced manufacturing, and value added agriculture (see the June 6, 2003 issue of the Digest). The governor signed the budget bills on June 1. They do not include his recommendation of $2.3 million for the Bioscience Alliance and $250,000 for the creation of a Lean Manufacturing Institute to provide training for manufacturing firms.



The budget includes, however, investments from various funds for FY 07 to the State Board of Regents to implement infrastructure-related recommendations (refer to HF 2782) proposed by the governor in his Condition-of-the-State Address (see the Jan. 16 issue of the Digest).



Another bill that passed during the session is SF 2272, which requires high school students to take three years of math and science and takes effect with the graduating class of 2010-11.



Minnesota

The Legislature passed and Gov. Tim Pawlenty signed HF 2959, authorizing nearly $1 billion in general obligation bonds to finance more than 100 capital projects. The final bonding bill includes $307 million for renovation and construction of buildings at the University of Minnesota (UM) and Minnesota State College and University campuses. According to the Minnesota High Tech Association, funding for four UM building projects include:

• $40 million for the Medical Biosciences Building;
• $26 million for the Carlson School Undergraduate Expansion;
• $15 million for the Labovitz School of Business and Economics; and
• $3.5 million for Research Centers and Field Stations.

The legislature also passed SF 3371, requiring fourth and eighth grade students to participate in the TIMSS International assessment of student achievement in math and science. Legislation that did not pass during the session includes HF 3534, a bill to create a STEM Gifted Advisory Committee, and a bill to create a Biomedical Sciences Research Facilities Authority (HF 3268). UM sought to create the authority and grant the power to expend $330 million in bonds to pay for 90 percent of the building projects.



The governor signed the FY 2007 Supplemental Budget bill on June 2. It includes $15 million for collaborative research projects in biotechnology and genomics by UM and the Mayo Clinic at their joint Rochester facility and $16.3 million for new higher education programs at the University of Minnesota Rochester in biomedical, engineering and computer technologies.



Vermont

As the legislative session came to an end, lawmakers agreed to spend $5 million in surplus money from the 2006 budget to implement the Vermont Promise Scholarship program. In his State-of-the-State Address (see the Jan. 16 issue of the Digest), Gov. Jim Douglas initially called for $175 million for the scholarships over 15 years, which largely would have been paid for by a 10-year boost in collections from tobacco settlement funds. Gov. Douglas called the allocation a "modest down payment," following the legislature's rejection of his proposal.



The University of Vermont, Vermont State Colleges and Vermont Student Assistance Corporation each will receive one-third of the funds for student scholarships in 2007, according to the Burlington Free Press. A nine-member commission will decide what incentives to use to reverse the state's brain drain, the article states. The commission is expected to receive another $5 million in July from a boost in revenue.



The legislature approved $3 million for the governor's Next Generation Initiative, proposed in his Budget Address (see the Jan. 30 issue of the Digest). Direct investments of $1 million each will be distributed to the following:

• University of Vermont for investments in R&D of the innovative and sustainable technologies that will expand the university's role in statewide economic development;
• Vermont State Colleges to invest in workforce development programs centered upon the innovative and sustainable technology sector; and,
• Vermont Student Assistance Corporation to invest in programs and initiatives that encourage K-12 students to pursue education beyond high school.

The FY 2007 approved budget, H. 881, also includes an increase of $400,000 to the Vermont training program and $110,000 to the Department of Economic Development for the following: $75,000 for grants to the regional development corporations; $25,000 for the Southern Windsor County incubator; and $10,000 for the north link broadband project.



The legislature also passed S. 165 during the session to restructure and reorganize the state's economic development incentive program. According to an Associated Press article, a compromise was reached to modify the way the Vermont Economic Progress Council grants economic incentive tax credits. Under the new program, which was renamed the Vermont Employment Growth Incentives program, awards will be based on increases in employment and capital investments by a company.



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