Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:03/05/2009
ATTENDANCE
Time:10:06 PM to 12:03 PM
Acree
X
Bradford
X
Place:HCR 0112
Liston
X
McKinley
*
This Meeting was called to order by
Middleton
X
Representative Peniston
Schafer S.
X
Tipton
X
This Report was prepared by
Vigil
X
Raegan Robb
Waller
X
Soper
X
Peniston
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
SB09-050Amended, Referred to the Committee of the Whole


10:06 AM


The committee chair, Representative Peniston, called the meeting to order.

10:06 AM -- Senate Bill 09-050

Representative Murray, prime sponsor, presented Senate Bill 09-050, concerning a requirement that at least one member of the Colorado Limited Gaming Control Commission be a resident of a locality where limited gaming takes place. Representative Murray discussed the history of the Limited Gaming Control Commission and the controlling statutes over the commission. Under current law, the commission is comprised of five members who are appointed by the Governor, no more than three of the five members can be members of the same political party, and no more than one member can be from any one congressional district. She explained that the bill requires that at least one member of the Limited Gaming Control Commission reside in either Gilpin County or Teller County. Representative Murray addressed questions from the committee members concerning the make up of the Limited Gaming Control Commission.

10:12 AM

Roger Morris, representing himself, testified against the bill, discussed the history of the gaming commission, and discussed reasons for the commission to remain independent from gaming counties. Mr. Morris addressed questions from the committee members concerning the changes in the bill. He explained that the commission was created to avoid conflicts of interest between the gaming industry and gaming communities.

10:23 AM

Kevin Werner, Wildwood Casino, testified against the bill and explained that the commission would no longer be a neutral third-party to regulate the gaming industry if Senate Bill 09-050 passed. Mr. Werner explained how changes to eligibility for appointments to the commission would result in difficulties to meet and could place gaming towns in competition with each other for representation on the commission. Mr. Werner addressed questions from the committee members concerning the functions of the gaming commission and explained that changes in Senate Bill 09-050 would threaten the integrity of the gaming commission.

10:30 AM

Patty Imhoff, Chairman, Gaming Commissioner, testified against the bill and discussed reasons why Senate Bill 09-050 would compromise the integrity of the gaming commission. Ms. Imhoff discussed the regulation duties of the gaming commission and addressed questions from the committee.

10:39 AM

Ron Kammerzell, Director, Colorado Division of Gaming, addressed the committee to discuss Amendment 50, which voters passed in 2008 to authorize extended casino hours, additional games, and an increase in the maximum bet limit. Director Kammerzell discussed changes to taxation on casinos in Colorado under the amendment and talked about the distribution of state funds from gaming tax revenues. He explained that Amendment 50 placed a freeze on the state tax of casinos based on the fiscal year 2008-09 tax rate and also discussed the authority of the gaming commission to spend gaming revenue for the administration of gaming taxes.

10:50 AM

Representative Murray and Ms. Imhoff addressed questions about the eligibility requirements for the gaming commission and the requirement that no more than one member can be from any one congressional district.


10:56 AM

Director Kammerzell discussed the constitutional distribution of gaming tax revenues to gaming towns and for historical preservation. He talked about transparency of the gaming commission and explained that no major gaming improprieties have occurred in the state. Committee discussion ensued concerning how other states appoint members to their gaming commissions.

11:04 AM

Mark Sievers, Teller County resident, testified in support of the bill and explained that smaller gaming towns needed to have representation on the gaming commission. He distributed handouts to the committee concerning the economy and the state of the gaming industry in Cripple Creek (Attachment A). He discussed the amount of tax revenue generated by gaming in Colorado and other states and referred to a handout that the committee members received (Attachment B). He also talked about the lack of growth of gaming revenue in Colorado compared to gaming in Iowa and distributed a handout to the committee (Attachment C). Mr. Sievers explained that gaming revenues were suffering in Colorado because the gaming commission did not have representation from the gaming counties. He also explained that he felt that not having representation on the gaming commission was a constitutional violation and distributed a handout citing the 14th Amendment of the U.S. Constitution, case law, and state law (Attachment D). Mr. Sievers discussed his perceptions of conflicts of interest by gaming commissioners and distributed a handout of state statutes concerning conflicts of interest (Attachment E). He also discussed conflicts of interest on the current gaming commission and distributed information and court cases concerning current members of the gaming commission (Attachments F and G).


090305AttachA.pdf 090305AttachB.pdf 090305AttachC.pdf 090305AttachD.pdf 090305AttachE.pdf 090305AttachF.pdf 090305AttachG.pdf

11:25 AM

Mr. Sievers addressed questions from the committee concerning gaming revenue in other states and he explained that gaming revenues were suffering in Colorado due to high taxes on the gaming industry and because the Limited Gaming Control Commission did not have representation from the gaming counties.

11:32 AM

Mr. Sievers and Representative Murray addressed questions concerning eligibility for the gaming commission.

11:37 AM

Mr. Sievers addressed questions from the committee concerning the roles of the gaming commission and actions that could be taken to ensure a healthy gaming industry in Colorado.

11:40 AM

Bonnie Solan, Gilpin County resident, representing herself, testified in support of the bill and explained the need for gaming counties to have representation on the Colorado Limited Gaming Control Commission.

11:42 AM

Andy Karsian, Colorado Counties Inc., testified in support of the bill and explained the need for the gaming commission to have representation from gaming counties due to the large amount of gaming revenue that is distributed to Teller and Gilpin counties.

11:47 AM

Representative Murray discussed prepared amendment L.003 (Attachment H) and entered closing comments on the bill. Committee discussion ensued concerning Senate Bill 09-050 and amendment L.003.


090305AttachH.pdf
BILL:SB09-050
TIME: 11:49:15 AM
MOVED:Middleton
MOTION:Moved amendment L.003 (Attachment H). The motion passed on a 9-1-1 vote.
SECONDED:Liston
VOTE
Acree
Yes
Bradford
Yes
Liston
Yes
McKinley
Excused
Middleton
Yes
Schafer S.
Yes
Tipton
Yes
Vigil
Yes
Waller
Yes
Soper
No
Peniston
Yes
Not Final YES: 9 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS
BILL:SB09-050
TIME: 12:01:09 PM
MOVED:Waller
MOTION:Moved to refer Senate Bill 09-050, as amended, to the Committee of the Whole. The motion passed on a 9-1-1 vote.
SECONDED:Acree
VOTE
Acree
Yes
Bradford
Yes
Liston
Yes
McKinley
Excused
Middleton
Yes
Schafer S.
Yes
Tipton
Yes
Vigil
Yes
Waller
Yes
Soper
No
Peniston
Yes
Final YES: 9 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS



12:03 PM

The committee adjourned.