House Committee on Local Government (03/25/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Date:	03/25/2015	ATTENDANCE

Time:	01:36 PM to 05:20 PM	Arndt	X
		Danielson	X
Place:	HCR 0107	Keyser	X
		Klingenschmitt	X
This Meeting was called to order by		Navarro	X
	Representative Fields	Ransom	X
		Rosenthal	X
This Report was prepared by		Saine	X
	Damion Pechota	Singer	X
		Lebsock	X
		Fields	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1257		Laid Over

01:37 PM -- HB15-1257

Representative Becker K. and Representative Priola, sponsors, presented and summarized House Bill 15-1257 concerning the removal of penalties on local governments regarding the regulation and sale of cigarettes. The bill removes a prohibition on local governments from receiving distributions from state cigarette tax revenues if the local government imposes fees, licenses, or taxes on the sale of cigarettes.

Representative Priola distributed handouts to the committee concerning information on taxing and licensing of cigarettes (Attachment A) and information document from the Cancer Action Network (Attachment B).

15HouseLocal0325AttachA.pdf

15HouseLocal0325AttachB.pdf

Representative Singer asked questions regarding other states with a tax penalty structure for local governments and the implementation of taxes on the county and municipal levels.

01:46 PM

Representative Becker K. provided a summary of the bill. She also discussed the reasons for allowing local licensing, enforcement, and taxes.

Representative Priola said that a sales tax on tobacco could not be implemented without the approval of the voters.

The committee discussed home rule in relation to cities and counties. Representative Singer discussed share back programs for local governments related to cigarette taxes.

01:58 PM

Representative Becker K. answered questions from the committee regarding tax revenue penalties under current law.

02:01 PM -- Grier Bailey, representing the Colorado Wyoming Petroleum Marketers Association, spoke in opposition to the bill. He distributed a packet of information to the committee members (Attachment C). Mr. Bailey discussed local licensing programs and said that a penalty on tobacco companies and local retailers already exists.

15HouseLocal0325AttachC.pdf

02:12 PM

Mr. Bailey answered questions from the committee regarding penalties to tobacco companies and retailers.

02:21 PM

Mr. Bailey continued to answer questions from the committee. He said that there is a relation between higher taxes and tobacco smuggling.

Representative Becker K. answered questions from the committee regarding tax rates in neighboring states.

Representative Priola discussed local government jurisdictions with different tax rates. He said that the bill would allow local governments to have the ability to determine proper licensing measures.

02:30 PM

Representative Becker K. answered questions regarding the potential expansion of tobacco products. She discussed studies that will potentially decrease teen smoking in local communities.

02:35 PM -- Mary Lou Chapman, representing the Rocky Mountain Food Industry Association, spoke in opposition to the bill. She said that the current laws have properly deterred access to cigarettes by minors. Ms. Chapman said that a potential patchwork of regulations and taxes can negatively impact consumers and increase smuggling of tobacco products.

Ms. Chapman answered questions from the committee regarding tobacco regulations in different jurisdictions.

02:44 PM

The committee recessed.

03:06 PM

The committee returned from recess.

03:06 PM -- Chris Howes, representing the Colorado Retail Council, spoke in opposition to the bill. He discussed compliance rates for tobacco retailers and the current process for regulation.

Mr. Howes answered questions from the committee regarding illegal sales of tobacco products. He discussed the potential impact of the bill on retail businesses.

Mr. Howes answered questions from the committee regarding smokeless tobacco.

03:16 PM

The committee continued to discuss the current tax system and regulation of tobacco.

03:19 PM -- R.J. Ours, representing the American Cancer Society, spoke in favor of the bill. He said the current law is outdated for the proper enforcement of public health. Mr. Ours discussed the preemptive strategies for the sale and licensing of tobacco sales. He spoke on the impacts of tobacco in Colorado.

Mr. Ours answered questions from the committee regarding the relationship between tobacco use and higher taxes.

03:30 PM

The committee continued to dialogue with Mr. Howes regarding an increase in regulations and taxes as a preemptive measure against youth tobacco use.

03:39 PM -- Cindy Liverance, American Lung Association and the Tobacco Free Alliance, spoke in favor of the bill. She discussed the use of tobacco products and the impacts of smoking on Colorado health care.

Ms. Liverance answered questions from the committee regarding youth access of tobacco products.

Representative Becker K. discussed the use of tobacco tax revenues.

03:50 PM

The committee continued to discuss local control regarding youth tobacco use.

03:55 PM -- Heather Kennedy, representing Children's Hospital of Colorado, spoke in favor of the bill. She spoke on the use of taxes and regulations to reduce the accessibility of tobacco by minors.

03:58 PM -- Dr. Gabriel Kaplan and Jill Bednarek, representing the Colorado Department of Public Health and Environment, spoke in favor of the bill. Dr. Kaplan discussed the need of providing local government control of tobacco regulations and taxes in order to protect public health.

Dr. Kaplan answered questions from the committee regarding state programs to reduce tobacco use. He also addressed questions regarding funds for the enforcement of federal regulations.

04:12 PM

Ms. Bednarek answered questions regarding the effective tax and regulation policies to reduce tobacco use by youth. She answered additional question regarding the use of state funds for lobbying purposes.

04:19 PM -- Dr. Candace Murbach, representing the Colorado Academy of Family Physicians, spoke in favor of the bill. She discussed the current licensing programs in Pueblo to regulate the sale of tobacco products.

04:23 PM -- Dr. Bill Burman, the Colorado Association of Local Public Health Officials and Denver Health, spoke in favor of the bill. He discussed the success of local government prevention methods. He distributed two handouts to the committee members (D and E).

15HouseLocal0325AttachD.pdf

15HouseLocal0325AttachE.pdf

04:28 PM -- Helen Orozco, representing herself, and Daniela Miramontes, representing herself, spoke in favor of the bill. Ms. Orozco spoke on her experience in high school and the impact of smoking on her friends. She distributed a handout to the committee members (Attachment F).

15HouseLocal0325AttachF.pdf

Ms. Miramontes discussed her experience in high school athletics. She spoke on her personal experience living with a smoker and the impact to her health. She also discussed the sale and accessibility of tobacco products to the youth.

Ms. Orozco answered questions from the committee regarding youth tobacco use at school.

Ms. Miramontes answered questions from the committee regarding the sale of tobacco products to teenagers.

04:38 PM -- Saoirse Charis-Graves, member of the Golden City Council, spoke in favor of the bill. She discussed youth efforts to reduced tobacco use. She responded to questions from the committee about teen tobacco use in Golden. She discussed the enforcement of municipal code provisions against selling tobacco products to juveniles.

04:47 PM -- Dr. Arnold Levinson, representing himself, testified in support of the bill. He expressed his opinion that juvenile use of tobacco is a real problem.

04:54 PM -- Jodi Radke, representing Tobacco Free Kids, spoke in favor of the bill. She expressed her opinion that local governments should have the authority to regulate, license and tax cigarettes. Ms. Radke spoke on the voter initiative process for the regulation and taxation of tobacco in municipalities. She addressed previous questions from the committee regarding the smuggling of tobacco products from neighboring states.

Ms. Radke answered questions from the committee regarding the relationship between higher taxes and the smuggling of tobacco products. She discussed taxes of tobacco products in other states.

05:06 PM -- John Vecchiarelli and Patrick Maruney, representing the Department of Revenue, spoke for questions only.

Mr. Maruney answered questions from the committee regarding current programs to regulate and inspect the retail sale of tobacco products.

Representative Becker K. said that there are no licensing requirements for the sale of cigarettes.

05:14 PM

Mr. Maruney answered questions from the committee regarding the surveillance and inspection programs to enforce cigarette laws to minors.

Mr. Vecchiarelli answered questions from the committee regarding regulations and taxes for alcohol sales.

Representative Becker K. discussed local licensing requirements for non-tobacco products.

05:19 PM

The bill was laid over, unamended, for action only until the House Local Government Committee meeting on April 2, 2015.

05:20 PM

The committee adjourned.