BILL SUMMARY for HB09-1052
SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY
|Votes: View--> ||Action Taken: |
|Moved prepared Amendment L.002 (Attachment H). Th|
Moved prepared Amendment L.003 (Attachment G). Th
Moved to refer House Bill 09-1052, as amended, to
|Pass Without Objection|
Pass Without Objection
02:47 PM -- House Bill 09-1052
Senator Heath presented House Bill 09-1052. The bill requires a for-profit entity that places a container in a public place for the collection of donated items that will later be sold for profit to affix a disclosure label on the container that states that items left in the container will be sold for profit and are not tax-deductible. Senator Heath explained the bill and discussed prepared Amendment L.003 (Attachment G) and prepared Amendment L.002 (Attachment H).
The following individuals testified:
02:50 PM -- Lorrie Molli, representing Goodwill Industries of Colorado Springs, testified in favor of the bill. She discussed the use of donation bins. She stated that Goodwill was not opposed to competition, but wanted to make sure that donors were not misled. She discussed the benefits of the bill.
02:53 PM -- Rick Berninzoni, representing Goodwill Industries of Denver, testified in favor of the bill. He discussed the importance of Goodwill's programs. He stated that the bill would create a level playing field. He discussed the use of donation bins and stated that the bins may mislead donors. He added that containers do not offer tax-deductible receipts. He indicated that Goodwill supports the bill not in order to further its own donations, but to allow donors to be better informed.
Mr. Berninzoni and Senator Foster discussed the necessary disclosure requirements for a nonprofit organization that contracts with another company. Senator Mitchell asked additional questions, and Mr. Berninzoni discussed tax-deductible receipts.
Senator Scheffel stated that very few people would have to use the disclaimer, and it would be difficult to police the requirements of the bill. Mr. Berninzoni stated that the bill was seeking full disclosure in order to keep from misleading the public. Discussion continued between Senator Scheffel and Mr. Berninzoni concerning possible loopholes. Senator Foster described permit and zoning laws regarding donation bins, and asked how many bins the bill would affect. Discussion continued between Senator Foster and Mr. Berninzoni.
Senator Heath made additional comments regarding the proliferation of for-profit bins in a bad economy. Senator Foster made additional comments concerning charitable organizations, and Senator Heath provided further clarification.
03:07 PM -- Andi Leopoldus, representing Goodwill Industries of Colorado, testified in favor of the bill. She described the proliferation of for-profit or unmarked donation bins. She discussed the lack of an enforcement mechanism for the bill and stated that the bill was a first step. Senator Scheffel expressed his concern that there would be no one to tell a person with an unmarked box to label it.
Discussion continued regarding what information was available concerning whether consumers had been misled. Senator Veiga stated that full disclosure will not cause any harm.
Senator Foster explained how her opinion had changed regarding the bill. She stated that the bill would support jobs at Goodwill and similar companies.
03:19 PM -- Ms. Molli returned to the table to address Senator Mitchell's question regarding information on unmarked bins. She discussed a call to action by the Better Business Bureau and a news report that had addressed the issue. She noted that some donors may be more willing to support an organization when they know where the money is going, whereas other donors may simply be donating for convenience. She remarked that the bill would help those donors that did not appreciate being duped by unmarked bins.
Senator Heath made closing remarks.
|TIME: || 03:24:01 PM|
|MOTION:||Moved to refer House Bill 09-1052, as amended, to the Committee of the Whole. The motion passed on a 4-3 roll call vote.|
Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS
The committee adjourned.