Date: 01/25/2006

Final
BILL SUMMARY for HB06-1120

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Refer House Bill 06-1120 to the Committee on FinanPASS



11:30 AM -- House Bill 06-1120

Representative Buescher, prime sponsor, presented House Bill 06-1120. He stated that in May 2005, the United States Supreme Court rendered a decision in the case of Granholm v. Heald and several other consolidated cases, that found laws similar to Colorado's, that allow in-state wineries to sell wine directly to in-state consumers but prohibit out-of-state wineries from doing so, violate the Interstate Commerce Clause. Representative Buescher stated that House Bill 1120 would bring Colorado statute into compliance with the Granholm decision by allowing the shipping from in-state and out-of-state wineries to Colorado consumers under certain conditions: wineries must obtain a Winer Direct Shipper's Permit, and shipments may only be made to consumers allowed to purchase and consume alcoholic beverages. Representative Buescher responded to questions from the committee about the permits and whether they exist currently.

11:34 AM -- Doug Caskey, Executive Director of the Colorado Wine Industry Development Board, testified in support of the bill. He explained the difficulties in shipping wine to Colorado consumers from Colorado wineries and how the bill will help clarify the requirements to do so.

11:36 AM -- Mark Barron, representing the Medovina, a Colorado limited winery from the front range, testified in favor of the bill. He stated that it is necessary for Colorado to respond to the court ruling. He stated that the language in House Bill 1120 will facilitate interstate shipping laws, and stated he feels the bill is fair and equitable.

11:40 AM -- Micki Hackenberger, representing the Wine and Spirit Wholesalers, reiterated the support of the bill. She stated the bill is necessary due to the Granholm case. She stated that the case pointed out that Colorado law was discriminatory to Colorado wineries. Ms. Hackenherger noted that the bill: takes steps to protect the existing 3-tier system, is narrow in scope and only applies to wine, is not discriminatory, only deals with shipping to a personal consumer, and prohibits the sale of wine on the internet. Ms. Hackenberger stated that if the bill does not pass, a lawsuit could be filed against and lost by the state.

11:44 AM -- Matt Cook, Director of the Colorado Liquor Enforcement Division, Colorado Department of Revenue, in response to a question from the committee, stated that the bill only speaks to the manufacturer tier mentioned in the Granholm decision. Mr. Cook was asked to explain the $50 fee and where it came from. He responded that currently there is a license fee to cover the administrative costs, but now they must afford the same cost to the Colorado wineries and charge the fee in order to treat in and out-of-state wineries the same. Mr. Cook mentioned that the fee is an annual fee.
BILL:HB06-1120
TIME: 11:46:38 AM
MOVED:Paccione
MOTION:Refer House Bill 06-1120 to the Committee on Finance. Motion passed 13-0.
SECONDED:Borodkin
VOTE
Balmer
Yes
Borodkin
Yes
Butcher
Yes
Carroll M.
Yes
Coleman
Yes
Knoedler
Yes
Liston
Yes
McCluskey
Yes
Paccione
Yes
Penry
Yes
Welker
Yes
Cerbo
Yes
Marshall
Yes
Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS