Date: 02/09/2006

Final
BILL SUMMARY for HB06-1078

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved to postpone House Bill 06-1078 indefinitely.
Refer House Bill 06-1078 to the Committee on Appro		PASS
FAIL


10:46 AM -- House Bill 06-1078

Representative Boyd, prime sponsor, explained that House Bill 06-1078 allows the Department of Public Health and Environment to set fees up to $750 for a retail food establishment annual license to cover the department's actual costs of food safety programs. It also allows the department to reduce or increase fees in order to adjust the balance of the uncommitted reserves in the Food Protection Cash Fund. Representative Boyd commented that the bill also authorizes local boards of health that offer food safety programs to set license fees up to $750 to cover their costs associated with those licenses and other services provided to retail food establishments, or to use the department's established fee schedule. Currently, fees are set by seating capacity or square footage and range from $55 to $383 per year.

The committee and Representative Boyd discussed the inspection process under current law and discussed the ability of local governments to set fees as allowed under the legislation. Representative Boyd commented that local governments are doing inspections and if fees are set locally, will more closely meet the actual cost of doing business. Representative Boyd distributed two handouts, a fact sheet on the bill (Attachment A) and an article entitled "Colorado restaurants to grab bigger bite" (Attachment B) and discussed each of the handouts.

The following persons testified.

11:01 AM -- Ms. Mary Lou Chapman, Rocky Mountain Food Industry Association, testified in opposition toward the legislation.

11:12 AM -- Mr. Mike Dunn, The Baby Company, testified in opposition toward the legislation. Mr. Dunn commented that the legislation will double inspection fees over the next two years. Mr. Dunn closed by saying that the fee structure should remain in state statute.

11:26 AM -- Mr. Pete Meersman, Colorado Restaurant Association, testified in opposition toward the bill and commented on he tiered structure for inspection fees allowed under current law. Mr. Meersman discussed the fee increases that could occur under the legislation and commented that fees would differ by location. This legislation allows local governments to set fees based on their costs and if enacted, would result in a fee structure that varies by location. Mr. Meersman said that the legislation could result in fee inconsistencies that will place a greater financial burden on many restaurants. Mr. Meersman closed by saying that many other fees are set in statute for state inspections and the fees under the bill should remain in state statute.

11:40 AM -- Mr. Chris Howes, Colorado Retail Council, testified in opposition toward the bill and said that the fee structure should remain in statute because the inspection process will not improve under the legislation.

11:41 AM -- Mr. Stan Dempsey, Colorado Petroleum Association, testified in opposition toward the legislation and commented that the association objects to taking the fees out of state statute.

11:42 AM -- Ms. Jeanne Nicholson, Colorado Counties Incorporated, testified in support of the legislation and said that the bill allows local boards of health to adjust fees in accordance with the cost-of-living for the locality where the inspection takes place. Ms. Nicholson pointed out that the legislation would not mean restaurants pay for the entire inspection fee but may end up paying a higher proportion of the fee structure. Ms. Nicholson closed by saying that the legislation would improve the inspection process in many counties.

11:55 AM -- Ms. Kathy Rennels, Commission for Larimer County, testified in support of the legislation. House Bill 06-1078 would give local governments the flexibility to reduce fees as well as raise the fees. Ms. Rennels closed by pointing out that there are a number of fees that are set by local governments such as septic tank fees and other fees that are tied to the construction industry.

12:03 PM -- Ms. Lauren Jervic, El Paso County Department of Health, testified in support of the legislation and commented that fee schedules are often very regressive. Ms. Jervic closed by saying that many restaurants have their own inspection programs that require multiple visits by inspectors and House Bill 06-1078 would allow local governments more flexibility to cover the cost of inspections that cost more money to perform.

12:11 PM -- Mr. Robin Valdez, Denver Department of Environmental Health, testified in support of the legislation. This legislation will give local governments flexibility to set fees based on location, input from public hearings, and other factors that address equity issues. Mr. Valdez closed by urging the committee to support the legislation.

12:17 PM -- Dr. Mark Johnson, Public Health Directors of Colorado, testified in support of the legislation. Dr. Johnson said that at the local level, governments have a better understanding of where local fees should be set because the fee structure varies by location. For example, it is more expensive to perform inspections in Pitkin than Baca County. Local Health Boards look at the needs of local communities when setting fees and local audits serve as a check to determine the true cost of the inspection program.

The committee briefly discussed the inspection process and the bill was placed on the table for action.
BILL:HB06-1078
TIME: 12:30:36 PM
MOVED:Judd
MOTION:Refer House Bill 06-1078 to the Committee on Appropriations. The motion failed on a 8-5-0 vote.
SECONDED:Benefield
VOTE
Benefield
Yes
Cloer
No
Crane
No
Frangas
Yes
Garcia
No
Harvey
No
Jahn
No
Kerr
No
Marshall
No
Massey
No
McCluskey
Yes
Judd
Yes
Vigil
Yes
Not Final YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1078
TIME: 12:35:40 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1078 indefinitely. The motion passed on a 9-4-0 vote.
SECONDED:Crane
VOTE
Benefield
No
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
No
Judd
Yes
Vigil
No
Final YES: 9 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS