To make sure everyone understands, the vote last night in the Colorado House of Representatives on Colorado Internet Sales Tax was only the first vote. First vote takes place after the second reading and it is an oral vote. The procedure in Colorado now requires another vote which is recorded; this recorded vote takes place after the Third Reading. The Third Reading and recorded vote should take place next week. Once it passes the bill is then sent to the Senate.
Once in the Senate, it will be read for the first time and then sent to committee for a hearing and vote. During committee it may be amended. If the Senate committee passes the bill it then goes back to the Senate Floor. It will be read for a second time. Next step is Third Reading and final vote.
If the Senate version is approved, and it is the same as the House bill, the legislation moves onto the Governor. If the Senate bill is different from the House bill (ie. it was amended in the Senate) the bill has to go back to the House for new vote. If House does not agree with changes a joint committee is appointed to hammer out differences.
Once a bill is sent to the Governor one of three things happen.
- Governor signs bill
- Bill becomes law without Governor signature (Governor has 10 days to sign or veto. If not signed or vetoed within 10 days it automatically becomes law.)
- Governor vetoes and it goes back to Legislature. With a 2/3 majority vote they can override the veto
Impossible to say how long the next steps will take. While there is still time it is critical for affiliates to prepare.
Remember, even if the bill passes and takes effect your business can survive. Find new merchants and adjust your business model. As Affiliates in New York, North Carolina and Rhode Island can tell you, your business will survive but it will take some work.
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