Bill Summary for Bill Number SB10-083

Date: 03/03/2010

Final
BILL SUMMARY for SB10-083

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved amendment L.004 (Attachment B). The motion Moved to refer Senate Bill 10-083, as amended, to	PASS PASS

11:29 AM -- Senate Bill 10-083

Representative Middleton, sponsor of Senate Bill 10-083, presented the bill. The bill defines the term "licensee" to mean a person in business as a distiller, brewer, rectifier, blender, or other producer; an importer or wholesaler of alcohol beverages; or a bottler or warehouseman and bottler of spiritous liquors. The Department of Revenue is required by the bill to enforce the federal prohibition against licensees extending credit to a retailer for more than 30 days. The department is authorized to adopt rules consistent with applicable federal regulations.

11:31 AM -- Pete Meersman, representing the Colorado Restaurant Association, testified in opposition to the bill. He said they are unsure what problem the bill is attempting to solve. Mr. Meersman talked about current law and distributed a copy of federal law (Attachment A). He explained it is already illegal under state and federal law for wholesalers and distributors to sell product to a retailer who has not paid their bill within 30 days of the delivery. He said the proponents are trying to give rule-making authority to the Department of Revenue, and his organization is asking why it makes sense to shift authority from the General Assembly to the Liquor Enforcement Division. Mr. Meersman also talked about what other states are doing and directed the committee to the back of the handout.

11:42 AM -- Dan Williams and Cory Tipton, representing the Colorado Beer Distributors Association, testified in support of the bill. Mr. Williams gave some background on the issue and talked about an amendment that was added in the Senate. Mr. Williams explained the rule-making process and clarified that input would be taken from the industry in that process. Representative Soper asked whether there is a certain industry that violates this provision. Mr. Williams responded and stated that any retailer and wholesaler that is in compliance today, should still be in compliance under the bill. Representative Rice asked what the harm would be in adopting the amendment that was talked about earlier. Cory Tipton responded and said the amendment would make the bill nonsensical.

11:53 AM -- Diane Roth, representing the Colorado Licensed Beverage Association, testified in support of the bill.


BILL:	SB10-083
TIME:	11:54:59 AM
MOVED:	Middleton
MOTION:	Moved amendment L.004 (Attachment B). The motion passed 7-4.
SECONDED:	Rice
		VOTE
	Balmer	Yes
	Bradford	No
	Casso	No
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	No
	Soper	Yes
	Stephens	Yes
	Gagliardi	No
	Rice	Yes

Not Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	SB10-083
TIME:	12:00:11 PM
MOVED:	Middleton
MOTION:	Moved to refer Senate Bill 10-083, as amended, to the Committee of the Whole. The motion passed 11-0.
SECONDED:	Kerr A.
		VOTE
	Balmer	Yes
	Bradford	Yes
	Casso	Yes
	Kerr A.	Yes
	Liston	Yes
	Middleton	Yes
	Priola	Yes
	Soper	Yes
	Stephens	Yes
	Gagliardi	Yes
	Rice	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS