Date: 12/15/2014

Final
Department of Revenue SMART Act Hearing

COMMITTEE ON JOINT FINANCE

Votes: View--> Action Taken:
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11:14 AM -- Department of Revenue SMART Act Hearing

Ms. Barbara Brohl, Executive Director of the Department of Revenue (DOR), came to the table to present to the committee. The Office of State Planning and Budgeting's performance report for the department was distributed to the committee (Attachment E), as well as a copy of the DOR presentation (Attachment F), and the department's regulatory agenda (Attachment G). Ms. Brohl explained how funding is distributed across the department's various divisions and the major activities of DOR in FY 2013-14. She spoke to the current status of retail marijuana in the state, and responded to questions on under-reporting of sales and use and excise taxes by marijuana businesses. Mr. John Vecchiarelli, Senior Director of Taxation, came to the table to answer a question on how the department refunds overpayment of taxes by businesses. The panel responded to questions on marijuana tax revenue projections and the taxation and overall sales of medical marijuana as compared to retail marijuana.

Attachment E & Attachment F can be viewed at State Archives.

14JtFinSMARTAct1215AttachG.pdf14JtFinSMARTAct1215AttachG.pdf

11:29 AM

Ms. Brohl discussed the working group that DOR had formed to study retail marijuana product potency and serving size. She responded to questions on the differences between the regulated labeling of medical marijuana edibles and retail marijuana edibles. Mr. Ron Kammerzell, Senior Director of Enforcement, spoke to the more sophisticated nature of most medical marijuana users when consuming marijuana compared to the majority of recreational users. Mr. Louis Koski, Director of the Marijuana Enforcement Division (MED), responded to questions on the harmonization of medical marijuana regulations with retail marijuana regulations, the potency limits of edibles, and the potential for increased regulation of the medical market and red card holders.


11:43 AM

Ms. Brohl spoke to the formation of the required stakeholder group as laid out by House Bill 14-1366. The group was tasked with developing recommendations for future regulation in order to make edible retail marijuana products more clearly identifiable to the general public. Ms. Brohl responded to questions on whether DOR was poised to move forward on the formation of increased edibles regulation or if it was in need of further clarification from the General Assembly.


11:49 AM

Ms. Brohl told the committee about the current status of the Colorado Lottery, highlighting the implementation of the new Jackpot system, sales and proceed amounts, and lottery proceed recipients.


11:51 AM

Ms. Brohl discussed the performance of the Division of Motor Vehicles (DMV) in FY 2013-14 and the decreased customer wait times achieved across DMV locations. Mr. Mike Dixon, DMV Senior Director, responded to questions on the age at which a senior citizen must go into a DMV location to renew their driver's license (DL) and the requirements involved in this renewal. Ms. Brohl responded to a question on issuing DLs to individuals institutionalized in the Department of Corrections.


12:03 PM

 Ms. Brohl provided updates on other DMV successes achieved, including the acceptance of credit cards at all 36 state DL offices and installation of automated testing systems. She responded to questions on interlock ignition devices that return false positives and the circumstances under which the department might sell vehicle registration information.


12:12 PM

Ms. Brohl discussed Senate Bill 13-251, which implemented the Colorado Road and Community Safety Act, providing a Colorado DL to those who are unable to demonstrate lawful presence. She responded to a question on how Colorado residency can be determined for such documentation. Ms. Brohl continued her presentation, laying out DMV-related funding requests, the legislative initiatives of the department for FY 2015-16, and industry and stakeholder outreach performed by DOR in 2014.


12:22 PM

Ms. Brohl discussed the department's strategic plan, and Mr. Vecchiarelli came to the table to specifically speak to the Division of Taxation's strategic goals. He explained that these goals are centered around the division tax call center and electronic filing of tax returns. Mr. Vecchiarelli responded to questions on whether the division captures demographic data on its customers and the electronic submittal of sales and income taxes.


12:30 PM

Mr. Dixon came to the table to explain the DMV's major strategic objectives, highlighting improved operations and decreased customer wait times of: title and registration call centers; driver services call centers; and DL offices. He noted that the division had also seen increased online renewal of and payment for DLs. Ms. Brohl responded to a question on whether the department has the authority to reduce the fees related to DL processing. Mr. Dixon spoke to the audits conducted by the DMV in 2014.


12:42 PM

Laura Solano, Director of the Colorado Lottery, came to the table to speak to the lottery's sales and profits.


12:43 PM

Ron Kammerzell spoke to the Enforcement Division's strategic goals for FY 2015-16, which surround liquor license processing, auto industry complaint resolution, racing compliance, marijuana license processing, and gaming compliance.


12:50 PM

Ms. Brohl described the executive director's office and administration goals for 2015 to the committee. She discussed cash handling, project management, rule and regulation review, hiring of personnel, and employee satisfaction. She then discussed the department's regulatory agenda. She responded to questions on the total number of employees within DOR and employee engagement and satisfaction.


01:00 PM

The committee was adjourned.