Bill Summary for Bill Number HB09-1077

Date: 02/04/2009

Final
BILL SUMMARY for HB09-1077

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View-->	Action Taken:
Moved amendment L.003 (Attachment D). The motion Moved to postpone House Bill 09-1077 indefinitely. Moved to refer House Bill 09-1077, as amended, to	Pass Without Objection PASS FAIL

10:53 AM -- House Bill 09-1077

Representative Schaffer, prime sponsor, presented House Bill 09-1077 concerning a prohibition on the retail sale of products containing tobacco by use of a self-service display. HB09-1077 prohibits the retail sale of cigarettes or tobacco products by use of a self-service display, except in tobacco specialty stores and in other situations where the self-service display is a legally authorized vending machine. The bill authorizes a fine structure for violations of this prohibition regulating the sale of tobacco to minors within a 24 month period as follows:

a written warning for a first violation committed;
$50 for a second violation;
$100 for a third violation;
$250 for a fourth violation; and
between $250 and $1,000 for a fifth or subsequent violation.

11:01 AM -- Wendy Morrison, representing the American Lung Association, testified in support of the bill. She said they would like to see a more comprehensive plan that would hold adults that sell to minors more accountable. Ms. Morrison said she would like to see retail licensure of places that sell tobacco and a prohibition on the distribution of free samples of tobacco. She talked about other ways to curb teenage tobacco use. Representative Bradford asked about cigar bars. Representative Liston asked about who would be enforcing the bill if it passes.

11:16 AM -- Bob Doyle, representing the Colorado Tobacco Education and Prevention Alliance, testified against the bill and said he agrees with the previous witness that there needs to be a comprehensive plan. He talked about a ban that was passed in Arvada that does not allow minors to enter tobacco only stores. Representative Soper asked why Mr. Doyle is against the bill simply because it does not go far enough. Representative Scanlan asked a similar question and Mr .Doyle responded and talked about the lack of licensure of tobacco retailers. Representative Liston pointed out that a person is required to show an identification and prove that they are over 18 in order to purchase tobacco.

11:21 AM -- Mary Lou Chapman, representing the Rocky Mountain Food Industry Association, testified against the bill. She said she did not understand the need for the bill and explained that all her stores already comply with the requirements in the bill. Ms. Chapman talked about the "We Card" program. Representative Rice asked why she does not want the requirement codified if her stores already meet the requirements. Ms. Chapman brought up the issue of the state law preempting local ordinances that are more stringent.

11:25 AM -- Dick Soash, representing the Cigar Association of America, testified against the bill. He responded to a question from Representative Balmer about who the bill applies to and who it does not. Mr. Soash talked about the tobacco industry versus the cigar industry and the fact that the bill would increase the tobacco product visibility at the expense of cigars. Representative Balmer stated that Phillip Morris owns 65 percent of the market and said that those with a higher market share get a majority of shelf space. Mr. Soash talked about the effect that would have on other products if they were moved behind the counter. Representative Gagliardi said she did not see market share in the bill and that she does not understand Mr. Soash's concern. Mr. Soash explained that the bill would not require that, but it would be the result. Representative Ryden talked about the 2,354 tobacco compliance checks and asked how many companies this bill would affect.

11:36 AM -- Mark Larson, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill. He said they support any requirement that places tobacco out of the reach of children and talked about the "We Card" program. Mr. Larson asked the committee to support amendment L.003 that would exempt tobacco stores that derive at least 75 percent of their revenue from the sale of tobacco products (excluding the sale of fuel). Representative Liston asked Mr. Larson to talk about statistics relating to the number of violations there have been of people selling tobacco to minors. Mr. Larson said he did not have the statistics, but that most of the association members use the card under 30 rule. Representative Rice asked Mr. Larson to give an example of a tobacco only store that sells gas.

11:48 AM -- Ruben Valdez, representing Phillip Morris USA, testified in support of the bill. He gave some background on youth prevention programs. Mr. Valdez said the bill is an attempt to prevent tobacco use by youth. Representative Scanlan asked about the market share of Phillip Morris and whether it would increase if this bill passes. Mr. Valdez said it is not the intent of the bill to increase market share, but he does not know whether it will or not. Representative Balmer asked a similar question, if the bill would give Phillip Morris a stronger position in the placement of their product. Mr. Valdez talked about the incentives the tobacco industry pays to place their product behind the counter.

12:02 PM


BILL:	HB09-1077
TIME:	12:02:39 PM
MOVED:	Balmer
MOTION:	Moved amendment L.003 (Attachment D). The motion passed without objection.
SECONDED:	Priola
		VOTE
	Balmer
	Bradford
	Gagliardi
	Liston
	Priola
	Ryden
	Scanlan
	Soper
	Stephens
	Casso
	Rice

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1077
TIME:	12:04:47 PM
MOVED:	Soper
MOTION:	Moved to refer House Bill 09-1077, as amended, to the Committee of the Whole. The motion failed 6-5.
SECONDED:	Gagliardi
		VOTE
	Balmer	No
	Bradford	No
	Gagliardi	Yes
	Liston	No
	Priola	Yes
	Ryden	No
	Scanlan	Yes
	Soper	Yes
	Stephens	No
	Casso	No
	Rice	Yes

Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB09-1077
TIME:	12:06:41 PM
MOVED:	Balmer
MOTION:	Moved to postpone House Bill 09-1077 indefinitely. The motion passed 8-3.
SECONDED:	Stephens
		VOTE
	Balmer	Yes
	Bradford	Yes
	Gagliardi	No
	Liston	Yes
	Priola	Yes
	Ryden	Yes
	Scanlan	Yes
	Soper	No
	Stephens	Yes
	Casso	No
	Rice	Yes

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