House Committee on Finance (04/29/2015)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/29/2015	ATTENDANCE

Time:	01:39 PM to 08:54 PM	Becker K.	X
		Conti	*
Place:	LSB A	Garnett	X
		Kagan	X
This Meeting was called to order by		Pabon	*
	Representative Court	Priola	*
		Roupe	X
This Report was prepared by		Van Winkle	X
	Katie Ruedebusch	Wilson	*
		Foote	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB15-1109 HB15-1372 HB15-1319 HB15-1388 HB15-1347 HB15-1335 HB15-1386 HB15-1195 SB15-206 SB15-227 SB15-090 HB15-1385 HB15-1379 HB15-1380 HB15-1383		Witness Testimony and/or Committee Discussion Only Amended, Referred to Appropriations Referred to Appropriations Amended, Referred to the Committee of the Whole Referred to Appropriations Amended, Referred to the Committee of the Whole Referred to Appropriations Postponed Indefinitely Witness Testimony and/or Committee Discussion Only Postponed Indefinitely Referred to Appropriations Referred to Appropriations Referred to Appropriations Postponed Indefinitely Referred to Appropriations

01:40 PM -- HB15-1109

Representative Court, chair, called the meeting to order. Representative DelGrosso, sponsor, introduced House Bill 15-1109. The bill lengthens the five-year block of statutory transfers from the General Fund to the Highway Users Tax Fund (HUTF) and the Capital Construction Fund (CCF), in the event that once or more year(s) of transfers are reduced or not made because of a revenue surplus under Article X, Section 20, of the Colorado Constitution, known as the Taxpayer's Bill of Rights (TABOR). For each year in which transfers are reduced or not made, an additional year of transfers is required, in which 2 percent of General Fund revenue must be transferred to the HUTF, and 1 percent of the General Fund revenue must be transferred to the CCF. As in current law, transfers created in the bill may be reduced or not made because of the size of the TABOR surplus. The schedule of transfers is extended until five years of full transfers have taken place. Committee discussion ensued regarding the history of transportation funding in Colorado. Representative Court distributed a handout on the history of General Fund transfers to transportation (Attachment A).

15HouseFin0429AttachA.pdf

02:00 PM -- Mr. Michael Gifford, representing the Association of General Contractors Colorado, testified in support of the bill. He discussed the need for transportation funding.

02:03 PM -- Mr. RJ Hicks, representing GreenCo, testified in support of the bill. He discussed the history of SB09-228 transfers.

02:08 PM -- Mr. Greg Fulton, representing the Colorado Motor Carriers Association, testified in support of the bill.

02:15 PM -- Mr. Tony Milo, representing the Colorado Contractors Association, testified in support of the bill.

02:17 PM -- Mr. Andy Karsian, representing the Colorado Department of Transportation, testified in support of the bill. He noted the importance of steady funding for transportation projects in Colorado.

02:29 PM

The bill was laid over until April 30, 2015, upon adjournment.

02:30 PM -- HB15-1372

Representatives Becker, J. and Tyler, co-prime sponsors, introduced House Bill 15-1372. Under current law, the Fixed Utilities Fund (FUF) pays for certain operations (approximately 85 percent) of the Public Utilities Commission (PUC) in the Department of Regulatory Agencies (DORA). Revenue to the FUF is from fees assessed against regulated electric, natural gas, and telephone utilities at a rate set annually based on the amount needed to cover applicable PUC and other utility regulation expenditures in DORA. The rate is applied to each regulated company's gross intrastate utility operating revenues (gross revenue), as calculated by the Colorado Department of Revenue, and may not exceed 0.2 percent of gross revenue. This bill raises the statutory limit on the rate of FUF assessments to 0.25 percent of gross revenue. Representative Tyler distributed amendment L.002 (Attachment D).

15HouseFin0429AttachD.pdf

02:33 PM -- Mr. Doug Dean, representing the PUC, testified in support of the bill. He distributed handouts to the committee (Attachment B and Attachment C, respectively).

15HouseFin0429AttachB.pdf

15HouseFin0429AttachC.pdf

02:38 PM -- Mr. Justin Lippard, representing DORA, testified in support of the bill.

02:43 PM -- Ms. Robin Kittle, representing Xcel Energy, testified in support of the bill.


BILL:	HB15-1372
TIME:	02:45:29 PM
MOVED:	Court
MOTION:	Adopt amendment L.002 (Attachment D). The motion passed without objection.
SECONDED:	Roupe
		VOTE
	Becker K.
	Conti
	Garnett
	Kagan
	Pabon
	Priola
	Roupe
	Van Winkle
	Wilson
	Foote
	Court

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


BILL:	HB15-1372
TIME:	02:46:13 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1372, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Roupe
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

02:48 PM -- HB15-1319

Representative Esgar, sponsor, introduced House Bill 15-1319. The bill increases the number of commissioners serving on the Public Utilities Commission (PUC) in the Department of Regulatory Agencies (DORA) from three to five. Two commissioners are to serve at-large while the remaining three commissioners must reside in and represent geographic regions specified in the bill. Representative Esgar distributed a packet of handouts to the committee (Attachment E). She provided background information and responded to committee questions.

15HouseFin0429AttachE.pdf


BILL:	HB15-1319
TIME:	03:01:24 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1319 to the Committee on Appropriations. The motion passed on a vote of 8-3.
SECONDED:	Becker K.
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	Yes
	Van Winkle	No
	Wilson	No
	Foote	Yes
	Court	Yes

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

03:02 PM -- HB15-1388

Representatives Pabon and Rankin, co-prime sponsors, introduced House Bill 15-1388. The bill creates the Securitizing Contributions for Retirement Earnings Act (act). The act permits the Colorado Housing and Finance Authority (CHFA) to issue bonds for the Colorado Public Employees' Retirement System (PERA) School and State retirement plan divisions. Prior to the issuance of any bonds, the Governor and the State Treasurer must validate the bonds, by filing for a judicial examination and receiving a non-appealable determination that the issuance of bonds will not violate the Colorado Constitution. The Governor and the State Treasurer must also conclude that issuing the bonds will permit the State and School retirement plan divisions to reduce the unfunded actuarially accrued liability sooner than if the bonds were not issued. The Attorney General and the Office of the State Controller are also required to make certain certifications prior to the issuance of bonds. Representative Pabon noted that the PERA board voted to support this bill. Representative Pabon also distributed two handouts (Attachment F and Attachment G, respectively). Representative Rankin discussed the benefits of and potential issues with the bill. Representative Pabon stated that even if the bill passes, there is no guarantee that the state will issue bonds. He noted that this bill is the beginning of the bond process.

15HouseFin0429AttachF.pdf

15HouseFin0429AttachG.pdf

03:23 PM

Committee discussion ensued regarding the bond process, judicial advisory opinions, Amortization Equalization Distributions, Supplemental Amortization Equalization Disbursements, and specific provisions of the bill.

03:28 PM -- State Treasurer Walker Stapleton, representing the Colorado Department of the Treasury, testified in support of the bill. Treasurer Stapleton noted the bill is not an approval of a bond issuance, but an approval of a structure to pursue future bond issuances. Committee discussion ensued with Treasurer Stapleton regarding risk, the structure of the potential deal, and governmental oversight.

03:49 PM -- Mr. Jon Forbes, representing the Colorado Department of the Treasury, came to the table to answer committee questions. Committee discussion ensued.

03:56 PM -- Mr. Henry Sobanet, representing the Colorado Governor's Office of State Planning and Budgeting, testified in support of the bill. He distributed a handout (Attachment H). He discussed the legalities, risks, and benefits of the bill. In response to a committee questions, he discussed why the bill's stakeholders decided to act now instead of waiting for reports regarding Senate Bill 10-001.

15HouseFin0429AttachH.pdf

04:17 PM -- Ms. Kelly Brough, representing the Denver Metro Chamber of Commerce, testified in support of the bill. She distributed a written copy of her testimony (Attachment J).

15HouseFin0429AttachJ.pdf

04:20 PM -- Mr. Scott Murphy, representing Littleton Public Schools, the Colorado Association of School Executives, and the Colorado Association of School Boards, testified in support of the bill. He discussed the benefits of the bill.

04:30 PM -- Ms. Lynea Hansen, representing the Colorado Commission for Retirement Security, testified in support of the bill. She discussed how the bill benefits PERA employees and retirees.

04:34 PM -- Mr. Tom Boasberg, representing Denver Public Schools, testified in support of the bill. He spoke about the share paid into PERA by Denver Public Schools and about a possible amendment. Superintendent Boasberg and Representative Pabon addressed questions from the committee about the involvement of public school officials in the bill drafting process. Superintendent Boasberg provided additional information about the contribution rate paid into PERA by Denver Public Schools as compared to other public school districts.

04:48 PM -- Ms. Carol Hedges, representing the Colorado Fiscal Institute, testified in opposition to the bill. She discussed the risks associated with the bill. She noted the bill hampers future legislatures from making spending decisions.

04:55 PM -- Mr. Gregory Smith, representing PERA, testified in support of the bill. He noted that PERA's Board of Directors supports the bill. He distributed a packet of information to the committee and discussed the various documents (Attachment I). He stated that PERA believes that this bill benefits PERA members. He also noted that PERA will have exclusive purview over the funds when they are in trust, but the State Treasurer has some input.

15HouseFin0429AttachI.pdf

05:15 PM

Committee discussion with Mr. Smith continued.


BILL:	HB15-1388
TIME:	05:35:30 PM
MOVED:	Pabon
MOTION:	Adopt amendment L.002 (Attachment K). The motion passed without objection. 15HouseFin0429AttachK.pdf
SECONDED:	Garnett
		VOTE
	Becker K.
	Conti
	Garnett
	Kagan
	Pabon
	Priola
	Roupe
	Van Winkle
	Wilson
	Foote
	Court

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


BILL:	HB15-1388
TIME:	05:46:01 PM
MOVED:	Pabon
MOTION:	Refer House Bill 15-1388, as amended, to the Committee of the Whole. The motion passed on a vote of 10-1.
SECONDED:	Kagan
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	No
	Wilson	Yes
	Foote	Yes
	Court	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

05:46 PM -- HB15-1347

Representatives Pettersen and Young, prime co-sponsors, introduced House Bill 15-1347. As amended by the House Education Committee, the bill alters the income tax deduction for contributions to qualifying college saving programs. This bill impacts tax year 2016 and future tax years. Representative Young discussed how the bill benefits lower-to-middle income families. Representative Pettersen discussed the impact of the bill on CollegeInvest and federal tax incentives. Both sponsors addressed the fiscal impact of the bill.


BILL:	HB15-1347
TIME:	05:57:43 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1347 to the Committee on Appropriations. The motion passed on a vote of 6-4.
SECONDED:	Garnett
		VOTE
	Becker K.	Yes
	Conti	No
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	No
	Van Winkle	No
	Wilson	Excused
	Foote	Yes
	Court	Yes

Final YES: 6 NO: 4 EXC: 1 ABS: 0 FINAL ACTION: PASS

05:59 PM -- HB15-1335

Representative Sias, sponsor, introduced House Bill 15-1335. The bill requires that a fiscal note be prepared for all bills considered by interim committees, before the committee votes on recommendations to the Legislative Council. It also requires that the deadlines for requesting bills be adjusted so that each interim committee is granted sufficient time to consider the fiscal note before voting on recommended legislation. Representative Sias distributed a handout (Attachment L) and amendment L.001 (Attachment M). Representative Sias explained that the lack of fiscal notes on interim bills is gap in the legislative process.

15HouseFin0429AttachL.pdf

15HouseFin0429AttachM.pdf

06:02 PM -- Mr. Rich Jones, representing the Bell Policy Center, testified in support of the bill. He discussed the benefits of having fiscal notes during the interim. He also distributed a written copy of his testimony (Attachment N).

15HouseFin0429AttachN.pdf

06:05 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in support of the bill. She discussed how the bill will add more transparency to the interim process.


BILL:	HB15-1335
TIME:	06:08:50 PM
MOVED:	Court
MOTION:	Adopt amendment L.001 (Attachment M). The motion passed without objection.
SECONDED:	Conti
		VOTE
	Becker K.
	Conti
	Garnett
	Kagan
	Pabon
	Priola
	Roupe
	Van Winkle
	Wilson
	Foote
	Court

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


BILL:	HB15-1335
TIME:	06:10:11 PM
MOVED:	Court
MOTION:	Refer House Bill 15-1335, as amended, to the Committee of the Whole. The motion passed on a vote of 11-0.
SECONDED:	Conti
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

06:12 PM -- HB15-1386

Representatives Singer and Priola, co-prime sponsors, introduced House Bill 15-1386. The bill creates a sales and use tax exemption for recycling and composting equipment purchased after January 1, 2015. For sales taxes paid in 2015, the taxpayer can claim a refund from the Department of Revenue between January 1 and April 1, 2016. Vendors will not collect sales taxes on equipment purchased in 2016 or 2017. Representative Priola discussed the differences between this bill and a bill that was postponed indefinitely earlier in the 2015 session. Representative Singer distributed a study to the committee (Attachment O).

15HouseFin0429AttachO.pdf


BILL:	HB15-1386
TIME:	06:20:40 PM
MOVED:	Priola
MOTION:	Refer House Bill 15-1386 to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Conti
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

06:26 PM -- HB15-1195

Representative Kagan, sponsor, respectfully asked the committee to postpone indefinitely House Bill 15-1195.


BILL:	HB15-1195
TIME:	06:27:03 PM
MOVED:	Kagan
MOTION:	Postpone House Bill 15-1195 indefinitely. The motion passed on a vote of 11-0.
SECONDED:	Pabon
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

06:29 PM -- SB15-206

Representative Garnett, co-prime sponsor, introduced Senate Bill 15-206. The bill makes two changes to the gross conservation easement income tax credit beginning in tax year 2015 through tax year 2017. First, the credit awarded for the first $100,000 of a donated conservation easement is increased to 75 percent of the easement's fair market value, up from 50 percent in current law. Second, the maximum credit that may be awarded to a donor for a single donation is increased to $1,000,000 from the $375,000 cap in current law. The bill does not affect the annual cap on the total amount of credit that may be awarded to taxpayers participating in the gross conservation easement income tax credit program, set at $45 million beginning in tax year 2014. Representative Garnett answered several questions regarding the fiscal note.

06:35 PM -- Mr. John Vecchiarelli , representing the Colorado Department of Revenue, came to the table to answer committee questions.

06:36 PM -- Mr. Greg Sobetski, Legislative Council Staff, came to the table to answer questions regarding the fiscal note. He discussed the aggregate cap and the specifics of the bill.

06:40 PM

Committee discussion regarding the fiscal note ensued. Mr. Sobetski discussed the "TABOR Impact" section in the fiscal note.

06:45 PM

Committee discussion continued on the fiscal implications of the bill.

06:55 PM -- Mr. Benjamin Waters, representing the Colorado Coalition of Land Trusts, came to the table to answer questions. He discussed the 2012 performance audit recommendations and the specifics of the bill.

07:00 PM

Committee discussion ensued regarding the fiscal implications of the bill, conservation easements, and the specifics of the bill.

07:20 PM

The bill was laid over till April 30, 2015 upon adjournment.

07:20 PM -- SB15-227

Representatives Melton and Van Winkle, co-prime sponsors, introduced Senate Bill 15-227. The reengrossed bill provides that one residential storage condominium unit per residence may qualify as a residential improvement for the purposes of property taxation. The owner must comply with all requirements and seek classification as a residential storage condominium unit for each property tax year that property tax treatment under the bill is sought. The assessor may inspect a property to confirm its qualifications as a residential storage condominium unit. An owner is required to notify the assessor any time his or her property no longer meets the definition of a residential storage condominium unit or if the property is transferred to a new owner. Representative Melton distributed amendment L.002 (Attachment P). In response to committee questions, Representatives Melton and Van Winkle discussed the fiscal implications of the bill.

15HouseFin0429AttachP.pdf

07:32 PM -- Mr. Alex Schatz, Legislative Council Staff, came to the table to discuss the fiscal note.

07:36 PM -- Ms. JoAnn Groff, representing the Division of Property Taxation, came to the table to discuss the definition of "residential." In response to a committee question, Ms. Groff noted that county assessors cannot change the classification of storage condominiums without legislation.

07:41 PM

Committee discussion ensued.

07:44 PM -- Ms. Groff returned to the table to discuss amendment L.002.


BILL:	SB15-227
TIME:	07:46:17 PM
MOVED:	Van Winkle
MOTION:	Adopt amendment L.002 (Attachment P) The motion passed without objection.
SECONDED:	Conti
		VOTE
	Becker K.
	Conti
	Garnett
	Kagan
	Pabon
	Priola
	Roupe
	Van Winkle
	Wilson
	Foote
	Court

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


BILL:	SB15-227
TIME:	07:54:44 PM
MOVED:	Van Winkle
MOTION:	Refer Senate Bill 15-227, as amended, to the Committee on Appropriations. The motion failed on a vote of 5-6.
SECONDED:	Priola
		VOTE
	Becker K.	No
	Conti	Yes
	Garnett	No
	Kagan	No
	Pabon	No
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	No
	Court	No

YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	SB15-227
TIME:	07:54:23 PM
MOVED:	Pabon
MOTION:	Postpone Senate Bill 15-227 indefinitely. The motion passed on a vote of 6-5.
SECONDED:	Court
		VOTE
	Becker K.	Yes
	Conti	No
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	No
	Van Winkle	No
	Wilson	No
	Foote	Yes
	Court	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

07:55 PM -- SB15-090

Representative Tyler, sponsor, introduced Senate Bill 15-090. The reengrossed bill requires that temporary motor vehicle registration plates and certificates meet the same statutory requirements regarding attachment, visibility, and readability as permanent plates, except that a temporary plate is only required to be affixed to the rear of the vehicle. The bill takes effect January 1, 2016, if the Department of Revenue receives enough gifts, grants, or donations to cover the materials, start-up costs, and computer programming necessary to implement the legislation. If that condition is met, the new temporary tags will be issued effective July 1, 2016.


BILL:	SB15-090
TIME:	07:59:57 PM
MOVED:	Priola
MOTION:	Refer Senate Bill 15-090 to the Committee on Appropriations. The motion passed on a vote of 8-3.
SECONDED:	Pabon
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	No
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	No
	Court	No

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:00 PM -- HB15-1383

Representatives Tyler and Becker, K., co-prime sponsors, introduced House Bill 15-1383. The bill extends the number of years, from two to five years, in which the Colorado Housing and Finance Authority (CHFA) may allocate low-income housing income tax credits. In addition, the bill allows these income tax credits to be transferred to other taxpayers.

08:04 PM -- Mr. Steve Johnson, representing CHFA, came to the table to answer questions regarding the bill. The credit cannot be claimed unless the property is placed in service, which is defined as ready to rent to low-income persons.

08:07 PM -- Mr. Louis Pino, Legislative Council Staff, came to the table to answer questions regarding the fiscal note.


BILL:	HB15-1383
TIME:	08:14:18 PM
MOVED:	Becker K.
MOTION:	Refer House Bill 15-1383 to the Committee on Appropriations. The motion passed on a vote of 8-3.
SECONDED:	Roupe
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	Yes
	Van Winkle	No
	Wilson	Yes
	Foote	Yes
	Court	No

Final YES: 8 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:16 PM -- HB15-1385

Representative Tyler and Kraft-Tharp, co-prime sponsors, introduced House Bill 15-1385. The bill creates a voluntary process for an external review and validation of new multi-family housing construction, paid for by the builder, conducted by a trained independent contractor, and audited by the Division of Housing in the Department of Local Affairs. Under the bill, multi-family housing is defined as any residential property that contains more than one attached dwelling unit, including condominiums or cooperatives. Representative Tyler noted the complex problem facing the state concerning affordable housing. Representative Kraft-Tharp noted that this bill sets up a framework for voluntary inspection for builders to receive third party validation regarding the quality of a building's construction.

08:22 PM

Committee discussion ensued regarding the specifics of the potential program outlined in the bill.


BILL:	HB15-1385
TIME:	08:36:38 PM
MOVED:	Becker K.
MOTION:	Refer House Bill 15-1385 to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:	Kagan
		VOTE
	Becker K.	Yes
	Conti	No
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	No
	Roupe	No
	Van Winkle	No
	Wilson	No
	Foote	Yes
	Court	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

08:37 PM -- HB15-1379

Representative Pabon, sponors, introduced House Bill 15-1379. The bill, as amended by the House Business Affairs and Labor Committee, allows people who are not residents of Colorado to apply to the Marijuana Enforcement Division (MED) in the Department of Revenue (DOR) for the authorization to hold a Permitted Economic Interest (PEI) in a regulated medical or retail marijuana business. Only a natural person who is a lawful United States resident may obtain a PEI, and the interest is limited to an unsecured debt instrument, option agreement, warrant, or any other right to obtain an ownership interest. The MED is required to promulgate rules regarding the PEI by January 1, 2016, including a process for and a requirement to submit to and pass a criminal history record check, divestiture, and other agreements that would qualify as a PEIs. Representative Pabon noted that this bill helps keep cartels out of the retail marijuana industry.

08:40 PM -- Ms. Clare Pramuk, Legislative Council Staff, came to the table to discuss the fiscal note. She discussed the changes made to the bill by the House Business Affairs and Labor Committee and how those changes affect the fiscal impact of the bill. She stated the two full time employees (FTE) discussed in the fiscal note are a compliance investigator and a criminal investigator.


BILL:	HB15-1379
TIME:	08:48:21 PM
MOVED:	Pabon
MOTION:	Refer House Bill 15-1379 to the Committee on Appropriations. The motion passed on a vote of 11-0.
SECONDED:	Becker K.
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

08:49 PM -- HB15-1380

Representative Becker, K., co-prime sponsor, asked the committee to postpone House Bill 15-1380 indefinitely.


BILL:	HB15-1380
TIME:	08:51:52 PM
MOVED:	Becker K.
MOTION:	Postpone House Bill 15-1380 indefinitely. The motion passed on a vote of 11-0.
SECONDED:	Court
		VOTE
	Becker K.	Yes
	Conti	Yes
	Garnett	Yes
	Kagan	Yes
	Pabon	Yes
	Priola	Yes
	Roupe	Yes
	Van Winkle	Yes
	Wilson	Yes
	Foote	Yes
	Court	Yes

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

08:55 PM

The committee adjourned.