Date: 02/05/2015

Final
BILL SUMMARY for HB15-1090

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment E). The motion p
Adopt amendment L.003 (Attachment E). The motion p
Postpone House Bill 15-1090 indefinitely. The moti
Refer House Bill 15-1090, as amended, to the Commi		Pass Without Objection
PASS
PASS
FAIL



10:10 AM -- HB15-1090

Representative Dore, sponsor, presented and summarized House Bill 15-1090 concerning the creation of a grant program to assist counties that are experiencing impacts from the legalization of retail marijuana. The bill creates the County Retail Marijuana Impact Grant Program (the grant) to provide assistance to counties that have experienced impacts to services or budgets as a result of the cultivation, testing, sale, consumption, and regulation of retail marijuana. The grant money may be used to:

• manage costs of increased law enforcement activities;
• develop youth marijuana education and prevention services;
• mitigate the impact on child welfare and social services; and
• mitigate the impact on other services provided by the county, as deemed necessary by the county.

A county may apply for a grant regardless of whether it has prohibited the sale, testing, and cultivation of marijuana. The bill also creates the County Retail Marijuana Impact Cash Fund (the fund). The fund may consist of any moneys transferred by the State Treasurer, any appropriated moneys from the General Assembly, and any moneys received through gifts, grants, or donations. On June 30 each year, the State Treasurer shall transfer 30 percent of the moneys in the Marijuana Tax Cash Fund to the fund. Any unexpected moneys remaining in the fund at the end of a fiscal year shall not be transferred to another fund, including the General Fund. The Division of Local Governments (the division), in the Department of Local Affairs, is charged with overseeing the grant program. In addition, the division is required to adopt rules for the implementation of the program and is required to receive updates from the counties regarding the grants.

Representative Dore distributed and discussed amendment L.001 (Attachment B) and amendment L.002 (Attachment C).

15HouseLocal0205AttachB.pdf15HouseLocal0205AttachB.pdf 15HouseLocal0205AttachC.pdf15HouseLocal0205AttachC.pdf

A handout from the U.S. Department of Justice was distributed to the committee members (Attachment D).

15HouseLocal0205AttachD.pdf15HouseLocal0205AttachD.pdf

Representative Rosenthal expressed his concerns with the bill. Representative Dore discussed the importance of providing assistance to areas of Colorado that aren't being provided for under current law.


10:20 AM

Representative Rosenthal and Representative Dore continued to dialogue about the grant program and the sale of marijuana.

Representative Lebsock asked a question regarding concerns with the 30 percent transfer of moneys from the marijuana tax cash fund to the grant program.

Representative Klingenschmitt discussed unfunded mandates to counties. Representative Dore spoke on the impacts of legalized marijuana and the need to provide assistance to counties.


10:30 AM

The committee members continued to discuss the bill and the impacts of legalized marijuana on local governments.

Representative Dore answered questions from the committee regarding lawsuits from neighboring states.

Representative Singer expressed concerns regarding the cost and benefit analysis in counties. Representative Dore said that the impacts of legalized marijuana is a compounding issue for county and local governments. He also discussed issues of drug use in school districts.


10:40 AM

Representative Singer and Representative Dore continued to discuss marijuana tax revenue.

Representative Saine discussed her concerns regarding the indirect costs of legalized marijuana on local governments. Representative Dore spoke on the costs related to law enforcement.


10:50 AM

Representative Dore continued to dialogue with committee members regarding the costs to local governments due to the legalization of marijuana.

Representative Dore answered questions from the committee regarding amendment L.002. He also answered questions from the committee regarding the transfer of 30 percent from the Marijuana Tax Cash Fund.


11:01 AM

The committee continued to discuss marijuana tax revenue. Representative Klingenschmitt distributed and summarized amendment L.003 (Attachment E).

15HouseLocal0205AttachE.pdf15HouseLocal0205AttachE.pdf

11:05 AM -- Andrew Freedman, Governor's Office, spoke in opposition to the bill. He discussed the current regulation services that would be impacted by the loss of moneys from the fund. Mr. Freedman discussed the importance of continuing to address challenges following the legalization of marijuana.

11:09 AM -- Ron Kammerzell, Department of Revenue, Marijuana Enforcement Division, spoke in opposition to the bill. He discussed the affect the transference of funds would have on regulation services. Mr. Kammerzell addressed the handout from the U.S. Department of Justice (Attachment D) and discussed the current public safety issues related to the legalization of marijuana.

Representative Klingenschmitt discussed the importance of continuing to address the needs of all counties.

11:15 AM -- Karin McGowan, representing the Colorado Department of Public Health and Environment, spoke in opposition of the bill. She discussed the use of revenue funds in the department and the educational resources and youth prevention. Ms. McGowan discussed the discussed the impact of loss of revenues to the programs.

Ms. McGowan answered questions from the committee regarding the potential impact to programs due to the loss of funding. She discussed all the programs in the state that would be impacted due to the loss of funding.

Ms. McGowan answered questions regarding lab certifications and education programs.

11:25 AM -- Bill Clayton, Colorado Counties, Inc., spoke in favor of the bill. He discussed the impacts to the counties and the need to provide additional resources. Mr. Clayton discussed local impact funds related to gaming as an example of mitigation efforts.

11:27 AM -- Peg Ackerman, County Sheriffs of Colorado, spoke in favor of the bill. She spoke on concerns related to the law enforcement of marijuana. Ms. Ackerman discussed the need to address the marijuana legalization impacts in smaller counties.

Ms. Ackerman answered questions from the committee regarding Sheriff responses to the legalization of marijuana. Representative Dore spoke on the prioritization of funding to counties.

Representative Klingenschmitt spoke on the statewide impact of marijuana legalization.

11:36 AM -- Greg Romberg, representing Arapahoe County, spoke in favor of the bill. He spoke on the impact of marijuana legalization on counties. He discussed concerns related to the 30 percent transfer of funds from the Marijuana Tax Cash Fund.

Representative Dore discussed amendment L.001.

The committee members discussed the amendment.
BILL:HB15-1090
TIME: 11:38:24 AM
MOVED:Navarro
MOTION:Adopt amendment L.001 (Attachment E). The motion passed without objection.
SECONDED:Keyser
VOTE
Arndt
Danielson
Keyser
Klingenschmitt
Navarro
Ransom
Rosenthal
Saine
Singer
Lebsock
Fields
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Klingenschmitt spoke on amendment L.003.

The committee members discussed the amendment.
BILL:HB15-1090
TIME: 11:44:42 AM
MOVED:Klingenschmitt
MOTION:Adopt amendment L.003 (Attachment E). The motion passed on a vote of 8-3.
SECONDED:Saine
VOTE
Arndt
Yes
Danielson
No
Keyser
Yes
Klingenschmitt
Yes
Navarro
Yes
Ransom
Yes
Rosenthal
No
Saine
Yes
Singer
No
Lebsock
Yes
Fields
No
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS

Representative Dore provided closing comments on the bill.

The committee members discussed the bill.
BILL:HB15-1090
TIME: 11:55:52 AM
MOVED:Keyser
MOTION:Refer House Bill 15-1090, as amended, to the Committee on Finance. The motion failed on a vote of 3-8.
SECONDED:Klingenschmitt
VOTE
Arndt
No
Danielson
No
Keyser
Yes
Klingenschmitt
Yes
Navarro
No
Ransom
Yes
Rosenthal
No
Saine
No
Singer
No
Lebsock
No
Fields
No
YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL



BILL:HB15-1090
TIME: 11:57:42 AM
MOVED:Saine
MOTION:Postpone House Bill 15-1090 indefinitely. The motion passed on a vote of 7-4.
SECONDED:Rosenthal
VOTE
Arndt
Yes
Danielson
Yes
Keyser
No
Klingenschmitt
No
Navarro
Yes
Ransom
No
Rosenthal
Yes
Saine
No
Singer
Yes
Lebsock
Yes
Fields
Yes
YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS



11:58 AM

The committee adjourned.