Date: 02/12/2014

Final
BILL SUMMARY for HB14-1142

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 14-1142 to the Committee of the WPASS



03:41 PM -- HB14-1142

Representative DelGrosso came to the table to present House Bill 14-1142. He explained that the bill prohibits the Colorado Lottery Commission from allowing the sale of lottery tickets by any means other than in person at a licensed lottery sales agent's physical place of business. The bill specifically bars the Lottery Commission from approving lottery sales through the Internet or other electronic devices. He added that the bill supports local brick and mortar stores. Representative DelGrosso responded to a question on which entities could potentially sell tickets online, the specific purpose of the bill, the Department of Justice determination that led to the genesis of the bill, how much revenue goes to a retailer from lottery ticket sales, and the potential risks of fraud in online ticket sales.

03:54 PM -- Jason Hopfer, representing Circle K and 7-11 Stores, came to the table to speak in favor of the bill. He detailed the amount of revenue that lottery ticket sales currently bring to Circle K and 7-11 Stores. He responded to questions on what online sales could mean to brick and mortar stores, and which states have implemented online lottery ticket sales.

04:00 PM -- Jeanne McEvoy, representing the Colorado Licensed Beverage Association, spoke in support of the bill. She told the committee that online sales of different products have historically had a large impact on brick and mortar sales, and that she feels the bill would protect small businesses in Colorado.

04:02 PM -- Micki Hackenberger, representing the Isle of Capri Casino, spoke in favor of the bill. She stated that the casino is concerned with the potential of the Colorado Lottery to sell lottery tickets online, and said that she believes online purchases of scratch tickets would emulate the usage of a slot machine, which is prohibited in all but three areas of the state. Ms. Hackenberger responded to questions on Colorado gaming laws, her comment that online scratch ticket sales could emulate the usage of a slot machine, and a request for clarity on the Isle of Capri's position on online gambling in general.

04:08 PM -- Gloria Schoch, representing First Data Corporation, spoke against the bill. She stated that First Data does not support a prohibition on the online sales of lottery tickets, and spoke to the user verification safeguards that can be put in place with technologies such as those offered by First Data. She responded to questions on the technologies provided by First Data, and the risk of data breaches. Committee discussion ensued.

04:14 PM -- Laura Solano, Colorado Lottery Director, representing the Department of Revenue, spoke against the bill. She provided a background on the Colorado Lottery and the task it is charged with, and summarized the proceeds that have come from lottery ticket sales. Ms. Solano responded to questions on the Colorado Lottery. Ms. Solano stated that the Department of Revenue has not yet begun considerations of how to facilitate online lottery ticket sales. She responded to questions on the demographics of lottery ticket purchasers. Committee discussion ensued.


04:28 PM

The committee discussed the state constitution and the legality of online gaming in Colorado. Director Solano responded to a question on whether the DOR has conducted feasibility studies on online gaming.

04:34 PM -- Saskia Young, representing the Department of Revenue, came to the table to respond to a question on whether the Governor's Office has a stance on the bill.


04:36 PM

The committee discussed the potential impacts of the bill, the different parties it might affect, and the overall impact the bill could have on the state.
BILL:HB14-1142
TIME: 04:48:04 PM
MOVED:DelGrosso
MOTION:Refer House Bill 14-1142 to the Committee of the Whole. The motion passed on a vote of 10-3.
SECONDED:Swalm
VOTE
Becker
Yes
DelGrosso
Yes
Foote
No
Joshi
Yes
Kagan
Yes
Melton
Yes
Pabon
No
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
No
Court
Yes
YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



04:49 PM

The committee adjourned.