Date: 02/08/2006

Final
BILL SUMMARY for HB06-1172

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved amendment L.001 (strike below) as amended by
Moved amendment L.003 (the amendment makes a techn
Moved to postpone House Bill 06-1172 indefinitely.
Refer House Bill 06-1172, as amended, to the Commi		Pass Without Objection
Pass Without Objection
PASS
FAIL


03:16 PM -- House Bill 06-1172

Representative Decker, prime sponsor, discussed amendment L.001 (strike below) (Attachment G) and explained the provisions of the amendment section-by-section. Representative Decker distributed the following to committee members: an article entitled "Contraband and Smuggling: The Unintended Consequences of Raising Excise Taxes (Attachment H); a map on 40 states and DC that require some form of cigarette retail licensing (Attachment I); a table from the Department of Revenue showing the decline in cigarettes sold in 2005 (Attachment J); and the statutory language for New Mexico that specifies the license necessary to engage in the business of selling cigarettes (Attachment K). Representative Decker discussed the documents and said that the purpose of House Bill 06-1172 is to address leakage.

The committee discussed the excise tax on cigarettes in Colorado and the regulation under amendment L.001 (strike below amendment). Also discussed was if the state is forgoing revenue because of leakage. Ms. Laura Harris from the Department of Revenue was asked to comment on this issue.

The following person testified:

03:38 PM -- Ms. Laura Harris, Colorado Department of Revenue, responded to committee questions and commented on the need for the regulation under House Bill 06-1172. Ms. Harris commented that the department is not aware of a leakage concern.

03:46 PM -- Mr. Chris Howes, Colorado Retail Council, testified in opposition toward the bill and commented that House Bill 06-1172 over-regulates the sale of cigarettes in Colorado and is not needed.

03:50 PM -- Ms. Mary Lou Chapman, Rocky Mountain Food Industry Association, testified in opposition toward the bill. Ms. Chapman commented that the purpose of the bill is to gain undocumented revenue from illegal sales and may not accomplish this goal but will increase the level of state regulation that honest retailers who sell cigarettes must comply with.

03:56 PM -- Mr. Greg Wilson, Philip Morris USA, testified in support of the legislation and distributed a handout on his presentation to the committee (Attachment L). Mr. Wilson pointed out that legal retailers are being adversely affected by illegal cigarette sales and House Bill 06-1172 will help stop this practice.

04:09 PM -- Mr. Terry Gallagher, owner of a smoker friendly gas station, testified in support of the legislation and commented that he supports sections 1 and 2 of amendment.

04:14 PM -- Mr. R. J. Ours, American Cancer Society, testified in support of the legislation and commented on the accountability and sanctions the bill offers in relation to the sale of cigarettes to minors in Colorado.

Representative Decker and the committee discussed the regulation under amendment L.001 and whether there is the need for increased regulation. Representative Decker distributed amendment L.003 (Attachment M) and commented that it makes a technical change.
BILL:HB06-1172
TIME: 04:16:43 PM
MOVED:Judd
MOTION:Moved amendment L.003 (the amendment makes a technical change that affects licensed retailers). The motion passed without objection by those members present.
SECONDED:Vigil
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1172
TIME: 04:19:27 PM
MOVED:Judd
MOTION:Moved amendment L.001 (strike below) as amended by amendment L.003. The motion passed without objection by those members present.
SECONDED:Vigil
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1172
TIME: 04:20:30 PM
MOVED:Frangas
MOTION:Refer House Bill 06-1172, as amended, to the Committee on Appropriations. The motion failed on a 8-4-1 vote.
SECONDED:Judd
VOTE
Benefield
Excused
Cloer
No
Crane
No
Frangas
Yes
Garcia
No
Harvey
No
Jahn
No
Kerr
No
Marshall
Yes
Massey
No
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 4 NO: 8 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1172
TIME: 04:28:24 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1172 indefinitely. The motion passed on a 9-3-1 vote.
SECONDED:Crane
VOTE
Benefield
Excused
Cloer
No
Crane
Yes
Frangas
No
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Yes
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
No
Final YES: 9 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS