House Committee on Health, Insurance, & Environment (05/06/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON HEALTH, INSURANCE, & ENVIRONMENT

Date:	05/06/2014	ATTENDANCE

Time:	09:47 AM to 11:13 AM	Fields	*
		Ginal	X
Place:	HCR 0107	Humphrey	X
		Joshi	X
This Meeting was called to order by		Landgraf	X
	Representative McCann	McNulty	X
		Primavera	X
This Report was prepared by		Singer	X
	Amanda King	Swalm	X
		Schafer	X
		McCann	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB14-215 SB14-222		Amended, Referred to Appropriations Referred to the Committee of the Whole

09:48 AM -- SB 14-215

Representative Duran presented Senate Bill 14-215. The bill creates the Marijuana Tax Cash Fund (MTCF) for tax revenue collected in connection with the retail marijuana industry. These taxes include:

excise tax revenue on wholesale marijuana in excess of $40 million per year;
the 10 percent sales tax revenue less 15 percent to local governments; and
sales tax revenue from the 2.9 percent state sales tax on both retail and medical marijuana.

Funds in the Marijuana Cash Fund (MCF) not attributable to licensing fees will be transferred to the MTCF on July 1, 2014. Programs currently funded from the MCF in the Department of Law, Department of Public Health and Environment (DPHE), Department of Public Safety (DPS) and the Department of Revenue (DOR) will now be funded from the MTCF. A $2.0 million transfer currently made from the MCF to the General Fund will now be from the MTCF.

Funds in the MTCF cannot be appropriated for the fiscal year in which they were received by the state except the appropriation to the DOR for the direct and indirect costs of regulating medical and retail marijuana. Any money not appropriated to the DOR may be appropriated by the General Assembly based on the most recent estimate of revenue prepared by the staff of the Legislative Council or the DOR. Beginning in FY 2015-16, 93.5 percent of the moneys in the MTCF will be available for appropriation.

The bill identifies the purposes for which moneys may be appropriated from the MTCF, which include:

the study of law enforcement's activity and costs related to the legalization of retail marijuana;
the coordination of the executive branch response to the legalization of retail marijuana;
increasing the expertise and knowledge among prosecutors and law enforcement officials regarding the legal and regulatory issues surrounding the legalization of marijuana;

obtaining health data through surveys or other means regarding marijuana and other drug use and monitoring the health effects of marijuana, including changes in drug use patterns and the emerging science and medical information relevant to the health effects associated with marijuana use;
advanced roadside impaired driving enforcement training and drug recognition expert training for peace officers;
developing and implementing marijuana education and prevention campaigns;
providing inpatient treatment for adults who suffer from co-occurring disorders at the Colorado Mental Health Institute at Pueblo;
increasing the availability of school-based prevention, early intervention, and health care services and programs to reduce the risk of marijuana and other substance use and abuse by school-aged children;
funding community-based programs to provide marijuana prevention and intervention services to youth;
funding local judicial district-based programs to provide marijuana prevention and intervention services to pre-adjudicated and adjudicated youth;
expanding the provision of jail-based behavioral health services in underserved counties and to enhance the provision of jail-based behavioral health services to offenders transitioning from jail to the community to ensure continuity of care; and
providing substance use disorder treatment services for adolescents and pregnant women.

The bill appropriates funds to:

create the Office of Marijuana Coordination in the Governor's Office;
conduct two marijuana education and prevention campaigns;
create the School-based Substance Abuse Prevention and Intervention Grant Program in the Department of Health Care Policy and Financing (HCPF);
expand the Tony Grampsas Youth Services Program in the Department of Human Services (DHS); and
provide child welfare training specific to issues arising from marijuana use and abuse in the DHS.

The bill also authorizes the Division of Criminal Justice in the DPS roll-forward spending authority for up to $45,000 of a current year appropriation from the MCF to FY 2014-15 for gathering data and studying law enforcement's activity and costs related to the implementation of retail marijuana.

09:53 AM

Representative Duran referenced a handout (Attachment A). She responded to questions about whether the Marijuana Enforcement Division has sufficient resources to implement all of the new retail marijuana regulations, the funding for child welfare training concerning marijuana, and whether the number of school health professionals across the state will be increased by amendment L.011 (Attachment B).

140506AttachA.pdf

140506AttachB.pdf

09:59 AM

Carolyn Kampman, Joint Budget Committee Staff, responded to questions about providing substance use disorder treatment services for pregnant women and whether the bill includes funding for the nurse home visitor partnership. Representative Duran responded to questions about the ability of communities and school districts to apply for grant funding through the bill. The committee continued to discuss the bill with Representative Duran.

10:06 AM

Nicole Myers, Office of Legislative Legal Services, responded to questions from the committee about the bill.

10:09 AM

Viktor Bojilov, Joint Budget Committee Staff, responded to questions about the transfers and appropriations in the bill and referenced attachment A. He responded to questions about the retail marijuana revenue projections for FY 2015-16 and the amount of money allotted for school capital construction. Representative Duran discussed possible TABOR implications of the retail marijuana tax revenues. Representative Duran responded to questions about the constitutional requirements for the retail marijuana tax revenues. The committee continued to dialogue with Representative Duran about the bill.

10:21 AM

Representative Duran discussed amendment L.011. The committee took a brief recess. Representative McCann called the committee back to order. Representative Duran responded to questions about amendment L.011.

10:26 AM -- Matt Sundeen, representing the Colorado Providers Association, testified in support of the bill. He discussed the funding for prevention and treatment services, and emphasized the funding for providing treatment services for adolescents and pregnant women. Mr. Sundeen responded to questions about treatment for people who are dually diagnosed. Representative Duran commented on funding for the nurse home visitor partnership. Mr. Sundeen responded to questions about youth prevention services and marijuana use by pregnant women.

10:34 AM -- Terri Hurst, representing the Colorado Behavioral Healthcare Council, testified in support of the bill. She discussed expanding prevention and early intervention services through the behavioral health organizations. Ms. Hurst responded to questions about the prevention services that might be provided under the bill. Representative Duran commented on the public awareness campaign included in the bill.

10:42 AM -- Ruth Aponte, representing Arapahoe House, testified in support of the bill. She discussed the two documents she provided to the committee (Attachments C and D). Ms. Aponte responded to questions about the effects of marijuana on pregnant women and breast-feeding mothers.

140506AttachC.pdf

140506AttachD.pdf

10:49 AM -- Jennifer Mello, representing the Colorado Department of Education, testified on the bill. She discussed amendment L.011 and responded to questions about the school health professional grant program.


BILL:	SB14-215
TIME:	10:53:56 AM
MOVED:	McNulty
MOTION:	Adopt amendment L.011 (Attachment B). The motion passed without objection.
SECONDED:	Schafer
		VOTE
	Fields
	Ginal
	Humphrey
	Joshi
	Landgraf
	McNulty
	Primavera
	Singer
	Swalm
	Schafer
	McCann

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

10:54 AM

Representative Duran discussed amendment L.012 (Attachment E).

140506AttachE.pdf


BILL:	SB14-215
TIME:	10:55:28 AM
MOVED:	Schafer
MOTION:	Adopt amendment L.012 (Attachment E). The motion passed without objection.
SECONDED:	Landgraf
		VOTE
	Fields
	Ginal
	Humphrey
	Joshi
	Landgraf
	McNulty
	Primavera
	Singer
	Swalm
	Schafer
	McCann

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

10:56 AM

The committee discussed the bill. Representative Duran made concluding remarks about the bill.


BILL:	SB14-215
TIME:	11:00:34 AM
MOVED:	Landgraf
MOTION:	Refer Senate Bill 14-215, as amended, to the Committee on Appropriations. The motion passed on a vote of 9-2.
SECONDED:	Schafer
		VOTE
	Fields	Yes
	Ginal	Yes
	Humphrey	No
	Joshi	No
	Landgraf	Yes
	McNulty	Yes
	Primavera	Yes
	Singer	Yes
	Swalm	Yes
	Schafer	Yes
	McCann	Yes

Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:02 AM -- SB 14-222

Representative Duran presented Senate Bill 14-222, on behalf of Representative Gerou. Currently, the duration of a license to use a registration number for a vehicle purchased at auction is perpetual. The bill changes the duration of a license to a limited time, as determined by the License Plate Auction Group.

11:05 AM -- Mark Simon, representing himself, testified on the bill. He provided background information on the bill. Mr. Simon discussed similar programs in Delaware and Texas and how the money raised from the auctions will be allocated. He stated the first Colorado auction will be on August 21, 2014. Mr. Simon responded to questions about whether the program applies to personalized licenses plates, how long the license plates will be good for, and the License Plate Auction Group.


BILL:	SB14-222
TIME:	11:12:06 AM
MOVED:	Schafer
MOTION:	Refer Senate Bill 14-222 to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Singer
		VOTE
	Fields	Yes
	Ginal	Yes
	Humphrey	Yes
	Joshi	Yes
	Landgraf	Yes
	McNulty	Yes
	Primavera	Yes
	Singer	Yes
	Swalm	Yes
	Schafer	Yes
	McCann	Yes

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

11:13 AM

The committee adjourned.