House Committee on Local Government (04/30/2014)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	04/30/2014	ATTENDANCE

Time:	01:32 PM to 02:20 PM	Dore	*
		Exum	X
Place:	HCR 0107	Garcia	X
		Gardner	*
This Meeting was called to order by		Landgraf	X
	Representative Fields	Lebsock	X
		Navarro	X
This Report was prepared by		Rankin	X
	Damion Pechota	Rosenthal	X
		Vigil	X
		Wright	X
		Singer	X
		Fields	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB14-184 HB14-1196		Referred to the Committee of the Whole Postponed Indefinitely

01:33 PM -- SB14-184

Representative Coram presented and summarized Senate Bill 14-184 concerning oversight of the industrial hemp program. Industrial Hemp means a plant of the genus Cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than 0.3% on a dry weight basis. The reengrossed bill modifies certain provisions of the existing industrial hemp registration program and creates a seed certification program and an industrial hemp research grant program.
Under current law, an industrial hemp grower must apply for registration prior to May 1 of the year in which the applicant plans to grow industrial hemp. This requirement is changed to anytime prior to planting the industrial hemp. The existing 10 acre limitation for growing industrial hemp for research and development purposes is eliminated. The Industrial Hemp Committee is required to work with the Department of Agriculture to develop a seed certification program.

The industrial hemp research grant program is established to fund research at state institutions of higher education to develop or recreate strains of industrial hemp best suited for industrial applications. The institutions may work with private hemp developers and other stakeholders to develop a Colorado heritage seed. The Commissioner of Agriculture may collect from registrants an additional fee, established by the Industrial Hemp Committee, to fund industrial hemp research and certification programs. The grant program may solicit money from foundations, private individuals, or any other funding sources that can be used to expand the scope or time frame of hemp research. Beginning July 1, 2015, the program is authorized by the bill to receive up to $10 million in appropriations from the Marijuana Cash Fund.

Institutions, or research and development registrants are not subject to penalties for crops that test higher than the allowable limits of THC as long as the crop is destroyed or utilized in a manner approved and verified by the commissioner.

Finally, the bill allows a person to process, sell, and distribute hemp cultivated by a registered person, or to sell products produced from the hemp.

Representative Coram answered questions from the committee on hemp research and development in regards to commercialization. He discussed the processing of hemp in Colorado and the use of hemp as a building material.

01:39 PM -- Ron Carleton, representing the Department of Agriculture, spoke for questions only. He answered questions from the committee regarding the process for research and development to the commercialization of the crop. Mr. Carleton answered questions regarding the registration for industrial hemp and the approval process for cultivation. He answered questions regarding whether the regulation and registration of hemp is necessary. Mr. Carleton discussed the federal governments view on hemp in relation to marijuana and the need to establish a regulation structure in order to appease the federal government. He answered questions regarding the banking industry and financial institutions in relation to the hemp industry.

01:49 PM -- Samantha Walsh, representing the Rocky Mountain Hemp Association, spoke in support of the bill. She discussed the use of hemp for manufacturing, food production, and in other industries. Ms. Walsh answered questions from the committee regarding hemp materials used in foreign countries. She discussed the growth of the hemp industry and other measures that can help the growth of the hemp industry in Colorado. She discussed incentives for the growth of hemp crops and the growth of both manufacturing and the biosciences.

01:58 PM -- Michael Bowman, representing the Rocky Mountain Hemp Association, spoke in favor of the bill. He discussed the use of water for the growth of hemp. Mr. Bowman said that hemp provides an opportunity to providing a long-term solution for the growth of agriculture and researchers in Colorado. He discussed the importance of state policy in regulating and providing growth for the hemp industry. He answered question regarding the areas of the state that are permitted to grow hemp.

Representative Coram discussed the potential for the growth of hemp on the Western Slope.

02:05 PM -- James McVaney, representing Industrial Hemp in Colorado, LLC., spoke against the bill. He said that the committee needs to hear from farmers and the provisions in the bill do not provide an incentive to farmers.

Representative Corum presented and summarized amendment L.009 (Attachment A).

14HseLocal0430AttachA.pdf

Kris Forrestal, Office of Legislative Legal Services, was brought to the table. Ms. Forrestal answered questions from the committee on the provisions in the amendment regarding revenue.


BILL:	SB14-184
TIME:	02:09:23 PM
MOVED:	Singer
MOTION:	Adopt amendment L.009. The motion was withdrawn.
SECONDED:	Gardner
		VOTE
	Dore
	Exum
	Garcia
	Gardner
	Landgraf
	Lebsock
	Navarro
	Rankin
	Rosenthal
	Vigil
	Wright
	Singer
	Fields

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: WITHDRAWN

Representative Fields said that amendment L.009 would not be allowed due to a 24-hour requirement for multi-page amendments.

The committee members discussed the bill.


BILL:	SB14-184
TIME:	02:17:44 PM
MOVED:	Lebsock
MOTION:	Refer Senate Bill 14-184 to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Landgraf
		VOTE
	Dore	Yes
	Exum	Excused
	Garcia	Yes
	Gardner	Yes
	Landgraf	Yes
	Lebsock	Yes
	Navarro	Yes
	Rankin	Yes
	Rosenthal	Excused
	Vigil	Yes
	Wright	Yes
	Singer	Yes
	Fields	Yes

FINAL YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

02:19 PM -- HB14-1196

On behalf of Representative Gerou, Representative Gardner presented House Bill 14-1196, as amended on February 20,2014. Testimony and amendments for the bill were heard at the February 20, 2014, House Local Government committee meeting. At the request of the sponsor, Representative Gardner asked the bill be postponed indefinitely.


BILL:	HB14-1196
TIME:	02:19:57 PM
MOVED:	Gardner
MOTION:	Postpone House Bill 14-1196 indefinitely. The motion passed on a vote of 11-0.
SECONDED:	Singer
		VOTE
	Dore	Yes
	Exum	Excused
	Garcia	Yes
	Gardner	Yes
	Landgraf	Yes
	Lebsock	Yes
	Navarro	Yes
	Rankin	Yes
	Rosenthal	Excused
	Vigil	Yes
	Wright	Yes
	Singer	Yes
	Fields	Yes

FINAL YES: 11 NO: 0 EXC: 2 ABS: 0 FINAL ACTION: PASS

02:20 PM

The committee adjourned.