House Committee on Finance (04/19/2012)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/19/2012	ATTENDANCE

Time:	09:36 AM to 11:12 AM	Acree	X
		Beezley	X
Place:	LSB A	Conti	X
		Holbert	X
This Meeting was called to order by		Hullinghorst	X
	Representative DelGrosso	Kagan	X
		Kefalas	X
This Report was prepared by		Labuda	X
	Ron Kirk	McCann	X
		Pabon	X
		Swalm	X
		Swerdfeger	X
		DelGrosso	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
SB12-168 HB12-1347		Referred to Appropriations Amended, Referred to the Committee of the Whole

09:37 AM -- Senate Bill 12-168 - Concerning Transfers Triggered by Personal Income

Representative Gerou, prime sponsor, explained that Senate Bill 12-168 changes the timing for the trigger on increases in the General Fund reserve and transfers from the General Fund to transportation and capital construction required by Senate Bill 09-228. In particular, the bill postpones the onset of these General Fund obligations by one year relative to current law. The committee briefly discussed the history of Senate Bill 09-228.

The following person testified:

09:43 AM -- Mr. Ed DeCecco, Office of Legislative Legal Services, responded to committee questions and discussed the provisions of Senate Bill 09-228. He noted that Senate Bill 09-228 requires increases in the General Fund reserve and transfers from the General Fund to transportation and capital construction funds. The transfers and increases in the General Fund reserve are triggered once Colorado personal income increases by at least five percent. Once the trigger is met, the transfers continue for a five-year period regardless of personal income growth during the time period. Mr. DeCecco closed by saying that if 2012 were the first year in which personal income increased by at least five percent, the reserve increases and transfers would be required beginning in FY 2012-13. Under the bill, these increases would not be triggered until the following fiscal year, FY 2013-14.

The committee discussed the delay in the transfers under Senate Bill 12-168 and took the following action.


BILL:	SB12-168
TIME:	09:44:36 AM
MOVED:	Pabon
MOTION:	Refer Senate Bill 12-168 to the Committee on Appropriations. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:	Labuda
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Excused
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

09:46 AM -- House Bill 12-1347 - Concerning Production Levels for Brew Pubs

Representative Kerr J., prime sponsor, explained that under current law, a brew pub is defined as a retail liquor-licensed establishment that manufactures no more than 1.86 million gallons of full-strength and 3.2 percent beer on its licensed premises each year. He noted that House Bill 12-1347 allows a licensed brew pub to manufacture beer in excess of the limitation if the brew pub does not sell any beer at wholesale to licensed retailers. After a brief committee discussion on brew pub production levels, the committee heard testimony.

The following persons testified:

09:49 AM -- Mr. Ed Cerkovnik, representing the Breckenridge Brewery, testified in support of the legislation. Mr. Cerkovnik noted that the brewery is a Colorado company that hires workers and contributes to Colorado's economy. He closed by saying that the brewery has operated under the brew pub statute since 1995.

09:52 AM -- Mr. Todd Usry, representing the Breckenridge Brewery, testified in support of the legislation. Mr. Usry noted that House Bill 12-1347 will allow the brewery to grow while complying with the state laws that regulate brew pubs and the 3.2 percent beer requirement.

10:19 AM -- Mr. Frank Redmay, representing the Platte River Bar and Grill, testified in support of the legislation.

The committee discussed the beer distribution process under current law.

10:25 AM -- Mr. Dan Williams, Colorado Beer Distributors Association, testified in opposition of the bill and distributed a handout on Colorado's brewing history to the committee (Attachment A). Mr. Williams closed by discussing the system of beer distribution in Colorado.


BILL:	HB12-1347
TIME:	10:48:25 AM
MOVED:	Holbert
MOTION:	Moved Amendment L.002 (Attachment B). The motion passed on a vote of 11-2.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Beezley	No
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	No
	Swerdfeger	Yes
	DelGrosso	Yes

YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB12-1347
TIME:	10:50:37 AM
MOVED:	Labuda
MOTION:	Moved Amendment L.003 (Attachment C). The motion passed without objection.
SECONDED:	Hullinghorst
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

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


BILL:	HB12-1347
TIME:	10:54:04 AM
MOVED:	Kefalas
MOTION:	Moved Amendment L.007 Attachment D). The motion passed without objection.
SECONDED:	Labuda
		VOTE
	Acree
	Beezley
	Conti
	Holbert
	Hullinghorst
	Kagan
	Kefalas
	Labuda
	McCann
	Pabon
	Swalm
	Swerdfeger
	DelGrosso

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


BILL:	HB12-1347
TIME:	11:10:33 AM
MOVED:	Pabon
MOTION:	Refer House Bill 12-1347, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:	Acree
		VOTE
	Acree	Yes
	Beezley	Yes
	Conti	Yes
	Holbert	Yes
	Hullinghorst	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	McCann	Yes
	Pabon	Yes
	Swalm	Yes
	Swerdfeger	Yes
	DelGrosso	Yes

Final YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:21 AM

The committee adjourned.