Final
STAFF SUMMARY OF MEETING

COMMITTEE ON AMENDMENT 64 IMPLEMENTATION COMMITTEE

Date:04/08/2013
ATTENDANCE
Time:01:53 PM to 03:28 PM
Baumgardner
X
DelGrosso
X
Place:SupCt
Marble
X
May
X
This Meeting was called to order by
Nordberg
*
Representative Pabon
Schwartz
X
Singer
X
This Report was prepared by
Ulibarri
X
Kelli Kelty
Jahn
X
Pabon
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
Consideration of Amendment 64 Recommendations5 Recommendations Approved, see summary for details


01:53 PM -- Consideration of Amendment 64 Recommendations

Representative Pabon, chair, called the meeting to order. A quorum was present. Representative Pabon thanked the committee for its hard work on this issue and said that 50 of the 60 recommendations had consensus votes. He said that most recommendations have been passed with amendments. He commented on the Amendment 64 Task Force and the vertical integration model.


02:00 PM

Representative Pabon commented on vertical integration and discussed the prepared amendment for Recommendation 1.1, which would provide for permissive vertical integration (Attachment A). He said that the permissive vertical integration model recognizes that vertical integration works and allows individuals to choose whether they want to use the vertical integration model. He commented on the burden for the Department of Revenue (DOR) and said that there are a lot of safeguards in the permissive vertical integration model. He said that the state needs robust enforcement for whichever model it adopts. Senator Jahn said that she did not feel comfortable having members vote on something they had not discussed and that the committee just received the amendment. She said that she would like to know what DOR and law enforcement think about the permissive vertical integration model.
BILL:Consideration of Amendment 64 Recommendations
TIME: 02:04:11 PM
MOVED:Pabon
MOTION:Adopt a conceptual amendment to the prepared amendment to Recommendation 1.1 (Attachment A), page 2, after "starting" strike OCTOBER and insert "JANUARY". The motion passed without objection.
SECONDED:May
VOTE
Baumgardner
DelGrosso
Marble
May
Nordberg
Schwartz
Singer
Ulibarri
Jahn
Pabon
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

130408 AttachA.pdf130408 AttachA.pdf

02:05 PM

Representative DelGrosso commented on the cost of production provision of the amendment. Discussion ensued concerning cost production per facilities. Representative DelGrosso asked about a phase-in period of up to one year under the amendment. Representative Pabon said that DOR will establish a phase-in period. Representative Singer commented on the vertical integration model and said that everyone is concerned with how it will all look moving forward. He said that he would like more information on how DOR will process and prioritize applications in the event of a backlog.


02:18 PM

Representative Pabon commented on the vertical integration model and said that DOR has given the committee strong assurances that the department is putting processes in place to figure out the licensure process. Discussion ensued concerning the role of DOR in regards to limits on licenses, sizes of facilities, and cultivation sizes. Representative DelGrosso asked how the Amendment 64 Task Force viewed the vertical integration model. Senator Jahn said that the task force defeated the vertical integration model and that the working group continued to rework the model until they came up with Recommendation 1.1. She said that she would like to be able to have conversations with the working group and the department and stakeholders about the vertical integration model. Representative Pabon said that he was the chair of the regulatory framework working group and said that the group had an initial 9-2 vote to allow for permissive vertical integration. Senator Jahn asked the chair if the committee could hear from the department concerning the vertical integration model.

02:29 PM

The committee took a brief recess.

02:43 PM

The committee came back to order. Representative Pabon said that he spoke with representatives from DOR and that the department does not have a position on either model.
BILL:Consideration of Amendment 64 Recommendations
TIME: 02:44:37 PM
MOVED:Jahn
MOTION:SUBSTITUTE MOTION: Recommend that the Office of Legislative Legal Services (OLLS) include Recommendation 1.1 in draft legislation. The motion failed on a vote of 3-7.
SECONDED:Baumgardner
VOTE
Baumgardner
Yes
DelGrosso
No
Marble
No
May
No
Nordberg
No
Schwartz
Yes
Singer
No
Ulibarri
No
Jahn
Yes
Pabon
No
YES: 3 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:Consideration of Amendment 64 Recommendations
TIME: 03:06:59 PM
MOVED:Pabon
MOTION:Adopt the prepared amendment to Recommendation 1.1 (Attachment A). The motion passed on a vote of 7-3.
SECONDED:Ulibarri
VOTE
Baumgardner
No
DelGrosso
Yes
Marble
Yes
May
Yes
Nordberg
Yes
Schwartz
No
Singer
Yes
Ulibarri
Yes
Jahn
No
Pabon
Yes
YES: 7 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS
BILL:Consideration of Amendment 64 Recommendations
TIME: 03:08:03 PM
MOVED:Pabon
MOTION:Recommend that OLLS include Recommendation 1.1, as amended, in draft legislation. The motion passed on a vote of 7-3.
SECONDED:Singer
VOTE
Baumgardner
No
DelGrosso
Yes
Marble
Yes
May
Yes
Nordberg
Yes
Schwartz
No
Singer
Yes
Ulibarri
Yes
Jahn
No
Pabon
Yes
YES: 7 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:Consideration of Amendment 64 Recommendations
TIME: 03:15:19 PM
MOVED:Pabon
MOTION:Recommend that OLLS include Recommendation 1.6 (Attachment B) in draft legislation. The motion passed on a vote of 6-4.
SECONDED:Singer
VOTE
Baumgardner
No
DelGrosso
Yes
Marble
Yes
May
No
Nordberg
No
Schwartz
Yes
Singer
Yes
Ulibarri
Yes
Jahn
No
Pabon
Yes
YES: 6 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

130408 AttachB.pdf130408 AttachB.pdf
BILL:Consideration of Amendment 64 Recommendations
TIME: 03:21:56 PM
MOVED:Pabon
MOTION:Recommend that the committee introduce legislation containing all of the recommendations approved by the committee on a unanimous vote, with the exception of recommendations concerning tax policy, and that OLLS be granted permission to make technical and conforming amendments. The motion passed on a vote of 10-0.
SECONDED:Singer
VOTE
Baumgardner
Yes
DelGrosso
Yes
Marble
Yes
May
Yes
Nordberg
Yes
Schwartz
Yes
Singer
Yes
Ulibarri
Yes
Jahn
Yes
Pabon
Yes
YES: 10 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:Consideration of Amendment 64 Recommendations
TIME: 03:24:34 PM
MOVED:Pabon
MOTION:Recommend that the committee introduce legislation containing all of the recommendations approved by the committee on a majority vote, with the exception of recommendations concerning tax policy, and that OLLS be granted permission to make technical and conforming amendments. The motion passed on a vote of 8-2.
SECONDED:Ulibarri
VOTE
Baumgardner
Yes
DelGrosso
Yes
Marble
Yes
May
Yes
Nordberg
No
Schwartz
Yes
Singer
Yes
Ulibarri
Yes
Jahn
No
Pabon
Yes
YES: 8 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS
BILL:Consideration of Amendment 64 Recommendations
TIME: 03:26:14 PM
MOVED:Pabon
MOTION:Recommend that the committee introduce legislation containing all of the recommendations concerning tax policy, and that OLLS be granted permission to make technical and conforming amendments. The motion passed on a vote of 8-2.
SECONDED:Singer
VOTE
Baumgardner
Yes
DelGrosso
Yes
Marble
No
May
Yes
Nordberg
No
Schwartz
Yes
Singer
Yes
Ulibarri
Yes
Jahn
Yes
Pabon
Yes
YES: 8 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:28 PM

Representative Pabon announced that the work of the committee was complete. The committee adjourned.