Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:04/25/2013
ATTENDANCE
Time:10:39 AM to 02:58 PM
DelGrosso
X
Foote
X
Place:LSB A
Joshi
X
Kagan
X
This Meeting was called to order by
May
X
Representative Court
Melton
X
Pabon
X
This Report was prepared by
Priola
X
Ron Kirk
Saine
X
Swalm
X
Wilson
X
Labuda
X
Court
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
HB13-1317
HB13-1318		Amended, Referred to Appropriations
Amended, Referred to Appropriations


10:39 AM -- House Bill 13-1317 - Concerning the Implementation of Retail Marijuana

Representative Pabon, prime sponsor, explained the provisions of the bill. He began by saying that Amendment 64, passed by the voters in November 2012, allows for an adult 21 years or older to consume or possess up to 1 ounce of marijuana and requires that a regulatory structure be established. Beginning January 1, 2014, the cultivation, processing, and retail sale of marijuana are allowed in Colorado. Representative Pabon noted that the bill implements major provisions of Amendment 64 by creating the Colorado Retail Marijuana Code. It renames the Medical Marijuana Enforcement Division (MMED) in the Department of Revenue (DOR) as the Marijuana Enforcement Division (MED) and gives the MED the authority to regulate both medical and retail marijuana. Representative Pabon continued by saying that the bill creates a regulatory system for retail marijuana under which existing medical marijuana businesses have the option to convert to retail businesses or to operate both medical and retail businesses. Colorado residents may purchase up to 1 ounce of marijuana in a single transaction but nonresidents are limited to purchases of no more than 1/4 of an ounce in a single transaction.

The committee engaged in a discussion on vertical integration as a model for retail sales tax collection.

The following persons testified:

11:09 AM -- Ms. Barbara Brohl, and Mr. Ron Kammerzell, representing the Colorado Department of Revenue, responded to questions from the committee. The committee discussed the issue of collecting state taxes given the cash transfer nature of the business.

11:18 AM -- Ms. Clare Pramuk, Legislative Council Staff fiscal analyst, responded to questions about fee impacts in the bill.

11:38 AM -- Mr. Christian Sederberg, representing Vicente Sederberg LLC, testified in support of the bill.

11:40 AM -- Mr. Mike Elliot, representing the Medical Marijuana Industry Group, testified in support of the bill.

11:54 AM -- Mr. Bruce Granger, representing the Kind Love Dispensary, testified in support of the bill and vertical integration.

11:56 AM -- Ms. Sandy Beddor, representing herself as a small business owner, testified in support of the bill.

12:00 PM -- Ms. Robin Hackett, representing herself, testified in support of the bill and discussed the issues tied to a cash business.

12:05 PM -- Ms. Rachel O'Bryan, representing Smart Colorado, noted that she does not have a position on the bill.

12:08 PM -- Mr. James McVaney, representing himself, testified in support of the bill.

12:13 PM -- Ms. Teri Robnett, representing cannabis patients, commented on her opposition to 70/30 vertical integration and spoke about the importance of patient needs.
BILL:HB13-1317
TIME: 12:13:29 PM
MOVED:Pabon
MOTION:Moved Amendment L. 027 (Attachment A). The motion passed without objection.

13HseFin0425AttachA.pdf13HseFin0425AttachA.pdf
SECONDED:Court
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:13:52 PM
MOVED:Pabon
MOTION:Moved Amendment L. 032 (Attachment B). The motion passed without objection.

13HseFin0425AttachB.pdf13HseFin0425AttachB.pdf
SECONDED:Court
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:16:02 PM
MOVED:DelGrosso
MOTION:Moved Amendment L. 035 (Attachment C). The motion passed without objection.

13HseFin0425AttachC.pdf13HseFin0425AttachC.pdf
SECONDED:Court
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:16:37 PM
MOVED:Pabon
MOTION:Moved Amendment L. 027 (Attachment D). The motion passed on a vote of 8-4.

13HseFin0425AttachD.pdf13HseFin0425AttachD.pdf
SECONDED:Court
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
May
Yes
Melton
Yes
Pabon
Yes
Priola
Excused
Saine
No
Swalm
Yes
Wilson
No
Labuda
Yes
Court
Yes
YES: 8 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:HB13-1317
TIME: 12:18:58 PM
MOVED:Pabon
MOTION:Moved Amendment L. 033 (Attachment E). The motion passed on a vote of 12-1.

13HseFin0425AttachE.pdf13HseFin0425AttachE.pdf
SECONDED:Labuda
VOTE
DelGrosso
Yes
Foote
Yes
Joshi
Yes
Kagan
Yes
May
Yes
Melton
Yes
Pabon
Yes
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
No
Court
Yes
YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB13-1317
TIME: 12:24:37 PM
MOVED:Melton
MOTION:Moved Amendment L. 029 (Attachment F). The motion passed on a vote of 8-5.

13HseFin0425AttachF.pdf13HseFin0425AttachF.pdf
SECONDED:Court
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
May
Yes
Melton
Yes
Pabon
Yes
Priola
No
Saine
Yes
Swalm
No
Wilson
No
Labuda
Yes
Court
Yes
YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB13-1317
TIME: 12:29:46 PM
MOVED:Pabon
MOTION:Moved Amendment L. 034 (Attachment G), amended as follows: "accessories, and marijuana related products such as child proof packaging containers, but shall be prohibited from selling or giving away any consumable product, including but not limited to cigarettes or alcohol, or edible product that does not contain marijuana, including but not limited to sodas, candies, or baked goods.". The motion passed without objection.

13HseFin0425AttachG.pdf13HseFin0425AttachG.pdf
SECONDED:Labuda
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1317
TIME: 12:34:06 PM
MOVED:Pabon
MOTION:Refer House Bill 13-1317, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-6.
SECONDED:Kagan
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
May
Yes
Melton
No
Pabon
Yes
Priola
No
Saine
No
Swalm
Yes
Wilson
No
Labuda
Yes
Court
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS




12:46 PM -- House Bill 13-1318 - Concerning the Taxation of Marijuana

Representative Singer, prime sponsor, explained the provisions of the bill. He began by saying that Amendment 64, passed by the voters in November 2012, allows for an adult 21 years or older to consume or possess up to 1 ounce of marijuana and requires that a regulatory structure be established. Beginning January 1, 2014, the cultivation, processing, and retail sale of marijuana are allowed in Colorado. Representative Singer continued by noting that this bill creates an excise tax and special sales tax to be levied on retail marijuana beginning January 1, 2014, and refers a ballot question to the voters at the 2013 general election for approval of these taxes, as required by the Colorado Constitution. These taxes, if approved, are not subject to the limitations on revenue, spending, or appropriations contained in Section 20 of Article X of the State Constitution (TABOR). The Department of Revenue has rulemaking authority over implementation of these taxes.

 The following persons testified:

01:26 PM -- Mr. David Blake, representing the Office of the Attorney General, responded to questions about the excise tax rate in the bill.

01:47 PM -- Mr. Kevin Bommer, representing the Colorado Municipal League, testified in support of the bill.

 01:49 PM -- Mr. Mike Elliott, representing the Medical Marijuana Industry Group, commented on the medical marijuana regulatory model.

01:59 PM -- Mr. Bruce Granger, representing Kind Love, spoke about the existing excise tax on alcohol beverages.

02:01 PM -- Ms. Eva Henry, representing Adams County, testified in support of the bill.

02:09 PM -- Ms. Sandra Solin, representing Smart Colorado, testified in support of the bill.

02:12 PM -- Mr. Christian Sederberg, representing Vicente Sederberg LLC, testified in support of the bill.

02:19 PM -- Ms. Jessica LeRoux, representing rural interests, commented on vertical integration and the excise tax.

02:24 PM -- Mr. Eric Bergman, representing Colorado Counties Incorporated, testified in support of the bill.
BILL:HB13-1318
TIME: 02:26:22 PM
MOVED:Pabon
MOTION:Moved the following amendment to House Bill 13-1318: Page 16, line 22, after "collected" insert "annually". The motion passed without objection.
SECONDED:Court
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:28:11 PM
MOVED:Court
MOTION:Moved Amendment L.002 (Attachment H). The motion passed without objection.

13HseFin0425AttachH.pdf13HseFin0425AttachH.pdf
SECONDED:Labuda
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:28:44 PM
MOVED:Court
MOTION:Moved Amendment L.003 (Attachment I). The motion passed without objection.

13HseFin0425AttachI.pdf13HseFin0425AttachI.pdf
SECONDED:Labuda
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:31:34 PM
MOVED:Court
MOTION:Moved Amendment L. 008 (Attachment J). The motion passed without objection.

13HseFin0425AttachJ.pdf13HseFin0425AttachJ.pdf
SECONDED:Pabon
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:32:09 PM
MOVED:Court
MOTION:Moved Amendment L. 012 (Attachment K). The motion passed without objection.

13HseFin0425AttachK.pdf13HseFin0425AttachK.pdf
SECONDED:May
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:33:15 PM
MOVED:Court
MOTION:Moved Amendment L. 013 (Attachment L). The motion passed on a vote of 7-6.

13HseFin0425AttachL.pdf13HseFin0425AttachL.pdf
SECONDED:Kagan
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
May
Yes
Melton
Yes
Pabon
Yes
Priola
No
Saine
No
Swalm
No
Wilson
No
Labuda
Yes
Court
Yes
YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB13-1318
TIME: 02:36:27 PM
MOVED:Court
MOTION:Moved Amendment L. 011 (Attachment M). The motion passed without objection.

13HseFin0425AttachM.pdf13HseFin0425AttachM.pdf
SECONDED:Labuda
VOTE
DelGrosso
Foote
Joshi
Kagan
May
Melton
Pabon
Priola
Saine
Swalm
Wilson
Labuda
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB13-1318
TIME: 02:38:35 PM
MOVED:DelGrosso
MOTION:Moved Amendment L. 004 (Attachment N). The motion failed on a vote of 6-7.

13HseFin0425AttachN.pdf13HseFin0425AttachN.pdf
SECONDED:Saine
VOTE
DelGrosso
Yes
Foote
No
Joshi
Yes
Kagan
No
May
No
Melton
No
Pabon
No
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
No
Court
No
YES: 6 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB13-1318
TIME: 02:57:26 PM
MOVED:Pabon
MOTION:Refer House Bill 13-1318, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-6.
SECONDED:Kagan
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
Yes
May
Yes
Melton
Yes
Pabon
Yes
Priola
No
Saine
No
Swalm
No
Wilson
No
Labuda
Yes
Court
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


02:58 PM

The committee adjourned.