The act requires the department of higher education to conduct a study concerning awarding academic credit for prior learning within all state institutions of higher education (institutions).

An existing council charged with examining general education courses shall implement a plan for determining and awarding academic credit for postsecondary education based on work-related experience. The plan must not be created, adopted, or implemented unless sufficient money is available from gifts, grants, or donations to cover the costs of creating, adopting, and implementing a plan.

Beginning in the 2022-23 academic year, unless a plan is implemented prior to then, institutions shall accept and transfer academic credit awarded for work-related experience as courses with guaranteed-transfer designation or part of a statewide degree transfer agreement.

Beginning March 1, 2024, and each year thereafter, the council shall report to the education committees of the senate and house of representatives, or any successor committees, regarding the implementation of the credit for work-related experience plan.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act:

• Extends the rural jump-start program for an additional 5 years;
• Adds a legislative declaration stating that the purpose of the 5-year extension is to create or retain jobs in order to help address the still significant contraction of local economies in certain areas of the state;
• Changes the existing competition clause to specify that a new business applying for rural jump-start program benefits cannot compete with an existing business in the rural jump-start zone in which the business will be located or in any distressed county that is contiguous to the rural jump-start zone;
• Adds economic development organizations as authorized entities to apply to:
• Form a rural jump-start zone; or
• To allow a new business to participate in the rural jump-start program; and
• Amends the reporting requirements to ensure that any future evaluation of the rural jump-start program can rely on clear, relevant, and ascertainable metrics and data provided by the economic development commission.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Tax Expenditure Evaluation Interim Study Committee. Under current law, the sales tax exemption for energy use exempts the sale and purchase of electricity, gas, fuel oil, steam, coal, coke, or nuclear fuel used in processing, manufacturing, mining, refining, irrigation, construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses, and newsprint and printer's ink used by newspaper publisher and commercial printers from state sales tax. The bill modifies this sales exemption to only apply when the energy is used by a metered machine.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill prohibits an employer from terminating an employee for the employee's lawful off-duty activities that are lawful under state law even if those activities are not lawful under federal law.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act grants a board of county commissioners the authority to license and regulate an owner or owner's agent who rents or advertises the owner's lodging unit for a short-term stay, and to fix the fees, terms, and manner for issuing and revoking licenses issued therefor.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act extends the income tax credit for employer contributions to employee 529 qualified state tuition programs for an additional 10 years.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The office of economic development (office) currently contracts with a nonprofit entity that was designated by the federal defense logistics agency to provide procurement technical assistance statewide (nonprofit entity). The nonprofit entity helps small businesses in the state obtain and perform government contracts at the local, state, and federal level. This includes small businesses owned by women, minorities, and veterans. The current 6-year contract between the office and the nonprofit entity will expire in September 2020. The act authorizes the office to renew the contract for up to 5 years.

As part of the state's investment in the procurement technical assistance program (state's investment), current law specifies that the general assembly shall not contribute more than $200,000 from the general fund or any other source annually. The act specifies that for the 2020-21 and 2021-22 state fiscal years, the general assembly shall not provide more than $175,000 from the general fund for the state's investment, and that for the 2020-21 state fiscal year only, the office shall provide, within existing resources, the remaining $25,000 toward the state's investment.

In addition, the act allows the general assembly to increase its contribution to the state's investment in any contract year so long as the nonprofit entity contributes a 100% match to the increased amount in the same contract year by soliciting gifts, grants, and donations. In addition, the nonprofit entity is required to obtain $200,000 in gifts, grants, or donations annually for part of the state's investment. In the 3rd through 6th contract year of the original contract, current law requires that at least 25% of the $200,000 be in the form of cash. The act extends this requirement for each year of the renewed contract.

Current law also requires the state treasurer to annually transfer $220,000 from the general fund to the procurement technical assistance cash fund through the 2019-20 state fiscal year. The act extends the annual transfer through the 2024-25 fiscal year; except that for the 2020-21 and 2021-22 state fiscal years, the amount of the transfer is $175,000.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The broadband deployment board (board) awards grants for the provision of broadband service in unserved areas of the state, which are areas deemed to have insufficient broadband service. The act authorizes but does not require an applicant seeking grant money from the board to submit to the board a written certification from the local entity with jurisdiction over the area that the applicant proposes to serve, certifying that the area is an unserved area. A local entity that is requested to provide written certification may not do so without first holding a hearing on the matter after providing notice of the hearing, including notice to any incumbent provider. The board is required to give substantial weight to a local entity's written certification that an area is an unserved area.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill authorizes a transportation planning organization (TPO) to exercise the powers of a regional transportation authority (RTA). Among other powers, the powers of a RTA include the power to impose various charges, fees, and, with voter approval, visitor benefit, sales, and use taxes to generate transportation funding. Any additional transportation funding obtained by a TPO exercising the power of a RTA are intended to supplement and not supplant state transportation funding allocated within the boundaries. Therefore, the transportation commission and the department of transportation (CDOT) are prohibited from taking such additional transportation funding into account when determining the amount of state transportation funding to be allocated within the boundaries of a TPO, and CDOT, when submitting its annual proposed budget allocation plan, is required to provide evidence that the proposed allocation of state transportation funding within the boundaries of any TPO that has obtained such additional transportation funding has not been reduced in any way on account of the additional transportation funding.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act:

• Repeals obsolete provisions that allow an income tax credit for contributions to enterprise zone administrators to implement economic development plans;
• Moves certain cross references that are incorrectly placed in the section that allows for an investment tax credit in enterprise zones; and
• Fixes an incorrect cross reference in the section that allows a credit for new enterprise zone business employees.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill creates the outdoor recreation industry office in the office of economic development. The director of the outdoor recreation industry office is designated by and reports to the director of the office of economic development.

The outdoor recreation industry office serves as a central coordinator of outdoor recreation industry matters.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The bill allows a person who has a right, privilege, or immunity secured by the Colorado constitution that is infringed upon to bring a civil action for the violation. The attorney general can also bring an action under the same circumstances. A plaintiff who prevails in the lawsuit is entitled to reasonable attorney fees, and a defendant in an individual suit is entitled to reasonable attorney fees for defending any frivolous claims. Qualified immunity and a defendant's good faith but erroneous belief in the lawfulness of his or her conduct are not defenses to the civil action. The civil action has a two-year statute of limitations. The bill requires a public entity to indemnify its public employees in a claim unless the employee is convicted of a crime related to the claim.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

Current law allows the Colorado economic development commission to allow, subject to an annual maximum program amount, certain businesses that make a $100 million strategic capital investment in the state, and subject to the requirements of the specified income tax credits, to treat any of the following income tax credits allowed to the business as either carry forwardable for a 5-year period or transferable:

• Colorado job growth incentive tax credit;
• Enterprise zone income tax credit for investment in certain property;
• Income tax credit for new enterprise zone business employees; and
• Enterprise zone income tax credit for expenditures for research and experimental activities.

This bill extends this program for another 3 years.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill extends the tax years that a taxpayer may elect to receive a refund of 80% of the amount of an enterprise zone investment tax credit for renewable energy investments. Under current law, if a taxpayer elects such a refund, the taxpayer forgoes the remaining 20% of the amount of the enterprise zone investment tax credit.

The bill also adds investments in energy storage systems as a qualified renewable energy investment.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act creates the occupational credential portability program (program) in the division of professions and occupations within the department of regulatory agencies, which permits a member of a regulated profession or occupation from another jurisdiction to obtain licensure, certification, registration, or enrollment in the profession or occupation in this state by endorsement, reciprocity, or transfer. The program is available to members of business and health care professions and occupations regulated by the division and the regulatory boards in the division for which licensure, certification, registration, or enrollment by endorsement is permitted under current law; except that the following professions and occupations are specifically excluded from the program:

• Combative sports;
• Electricians;
• Fantasy contests;
• Mortuaries and crematories;
• Nontransplant tissue banks;
• Outfitters and guides;
• Passenger tramway operators;
• Plumbers;
• Private investigators;
• Direct-entry midwives; and
• Surgical assistants and surgical technologists.

Under the program, the director of the division and most regulatory boards and commissions within the division (regulators) are required to strive to reduce certification, registration, licensure, and enrollment barriers for applicants and to adopt rules to establish the program in the least burdensome way necessary to protect the public.

The act also relocates the existing occupational credential exemption for military spouses to the new occupational credential portability program and modifies the exemption by specifying that the exemption is valid for 3 years and applying the exemption to all members of business and health care professions and occupations regulated by the division and the regulatory boards in the division.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill repeals an existing income tax credit available to taxpayers who make contributions to enterprise zone administrators to promote temporary, emergency, or transitional housing programs for the homeless and replaces that income tax credit with one that is available in the entire state that is modeled after the enterprise zone credit that is being repealed. Instead of having the enterprise zone administrators and the office of economic development manage the credit, the bill places that responsibility on the division of housing in the department of local affairs. The amount of the income tax credit remains the same for each contribution, except the new credit is capped at $750,000 in contributions to each project that the division approves and the new credit's availability is limited to 5 years.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill extends the repeal date of the innovative industries workforce development program for 5 years, until July 1, 2025. The bill also appropriates $900,000 from the general fund to the division of employment and training in the department of labor and employment to be used for program reimbursements during the fiscal year beginning July 1, 2020.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill clarifies that the existing authority of cities and counties (local governments) to plan for and regulate the use of land includes the authority to regulate development or redevelopment in order to promote the construction of new affordable housing units. The provisions of the state's rent control statute do not apply to any land use regulation that restricts rents on newly constructed or redeveloped housing units as long as the regulation provides a choice of options to the property owner or land developer and creates one or more alternatives to the construction of new affordable housing units on the building site.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill creates the film, television, and media tax credit. The credit is available to a production company employing a workforce of at least 50% Colorado residents for production activities in the state. For production activities in a prioritized area, defined to mean a nonmetropolitan county or municipality with a population of 150,000 or less, the credit is up to 22% of the total qualified local expenditures. For production activities not in a prioritized area, the credit is up to 18% of the qualified local expenditures. The credit must be authorized and issued by the Colorado office of film, television, and media. Once issued, the credits may be used in the year issued or carried forward by the production company for up to 5 income tax years. The credits may also be transferred to another taxpayer to be used or carried forward as a credit against that taxpayer's income tax liability. The office of economic development is required to establish a system to track and verify the issuance, transfer, and ownership of the credits.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The state treasurer is authorized to enter into a contract or contracts to establish a small business recovery loan program (loan program). The purpose of the loan program is to assist the state's recovery from the COVID-19 pandemic by leveraging private investment for loans to Colorado small businesses recovering from the COVID-19 crisis. The treasurer is authorized to contract with the Colorado housing and finance authority or a private entity selected through an open and competitive process.

Subject to the availability of proceeds from insurance premium tax credit purchases, the state treasurer may invest up to $30 million in first loss capital from the small business recovery fund established in the act in fiscal year 2020-21, and up to $30 million in first loss capital in fiscal year 2021-22; except that the total invested across both fiscal years may not exceed $50 million. The investments must be made in tranches of no more than $10 million each. Each tranche must be matched at a 4-to-1 ratio by money invested from other sources before it is committed or deployed. Once the money in a tranche is matched, it must be used to make loans of working capital to Colorado businesses with between 5 and 100 employees that meet eligibility criteria. The loans must be between $30,000 and $500,000, with a maturity of up to 5 years. The state treasurer may not invest a new tranche of state money until the prior tranche is at least 90% invested in small business loans.

When each tranche is deployed, it is subject to an initial period of time in which a portion of the money is allocated to each county on a basis proportionate to the county's share of small businesses or small business employees relative to the state, or a similar metric, or based on a formula that accounts for how affected each county has been by the COVID-19 pandemic. During this time period, the money allocated to the county is reserved for eligible borrowers located in that county. After the initial period of time passes, the money remaining in the tranche is available on a statewide basis.

The small business recovery loan program oversight board (oversight board) is created in the department of the treasury (department). The oversight board consists of the state treasurer, the director of the minority business office on behalf of the office of economic development, a member appointed by the speaker of the house of representatives, a member appointed by the president of the senate, and a member appointed by the governor. The oversight board consults with the treasurer on the selection of a loan program manager, establishes certain terms and criteria applicable to the loan program in consultation with lending industry leaders and small business representatives, and provides oversight and guidance to the loan program to ensure it complies with statutory requirements and fulfills the purpose of assisting Colorado small businesses recovering from the COVID-19 crisis. The loan program manager must report on a quarterly basis to the oversight board. The oversight board must file written reports with the joint budget committee twice each fiscal year, and must report once each fiscal year for the first 2 years to the business committees of the house and senate.

The department is authorized to issue insurance premium tax credits to insurance companies that are authorized to do business in Colorado and incur premium tax liability, subject to procedures established by the department. The department may contract or consult with an independent third party to manage the bidding process. The department is required to issue a tax credit certificate to each successful purchaser. The department is authorized to issue up to $40 million in tax credit certificates in fiscal year 2020-21. The department is authorized to issue up to an additional $28 million in tax credits in fiscal year 2021-22, unless an equivalent amount of federal money is appropriated or allocated to the program.

A qualified taxpayer may claim the tax credit against its premium tax liability. For a tax credit certificate issued in fiscal year 2020-21, the qualified taxpayer may claim up to 50% of the credit in calendar year 2026, and may claim the remaining amount of the credit beginning in calendar year 2027. For a tax credit certificate issued in fiscal year 2021-22, the qualified taxpayer may claim the credit beginning in calendar year 2028. The amount of the credit claimed cannot exceed the taxpayer's premium tax liability for a given year. The unused amount carries forward and may be claimed in subsequent years; except that a credit cannot be claimed for premium tax liability incurred in a taxable year that begins after December 31, 2031.

The act creates the small business recovery fund in the treasury. The fund consists of tax credit sale proceeds, any revenues, disbursements, or money returned to the state from the loan program, and any other money the general assembly appropriates or transfers to the fund. The money in the fund is continuously appropriated to the department to implement the loan program and to pay for the department's direct and indirect costs in administering the loan program and in issuing the tax credits. Beginning in fiscal year 2025-26, the treasurer must credit any unexpended and unencumbered money remaining in the fund at the end of a fiscal year to the general fund. The fund is repealed on July 1, 2029, and all unexpended and unencumbered money remaining in the fund is transferred to the general fund.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Section 1 of the act specifies that the act shall be known as the "Tax Fairness Act".

Sections 2 and 3 of the act require taxpayers to add to federal taxable income:

• For income tax years ending on and after the enactment of the March 2020 "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the difference between a taxpayer's net operating loss deduction as determined under federal law before the amendments made by section 2303 of the CARES Act and the taxpayer's net operating loss deduction as determined under federal law after the amendments made by section 2303 of the CARES Act;
• For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to a taxpayer's excess business loss as determined under federal law without regard to the amendments made by section 2304 of the CARES Act, but with regard to the technical amendment made in that section of the CARES Act;
• For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the amount in excess of the limitation on business interest under federal law without regard to the amendments made by section 2306 of the CARES Act; and
• For income tax years commencing on or after January 1, 2021, but before January 1, 2023, an amount equal to the deduction for qualified business income for an individual taxpayer who files a single return and whose adjusted gross income is greater than $500,000, and for an individual taxpayer who files a joint return and whose adjusted gross income is greater than $1 million. This federal deduction may be claimed for income tax years commencing prior to January 1, 2026, except that the add-back is not required for a taxpayer who files a schedule F, profit or loss from farming, or successor form, as an attachment to a federal income tax return.

Section 4 of the act specifies that for net operating losses incurred after December 31, 2017, the 80% limitation set forth in federal law applies without regard to the amendments made in section 2303 of the CARES Act.

The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 5 of the act increases the percentage from 10% to 15% beginning in 2022. Section 5 also specifies that for income tax years commencing on or after January 1, 2021, taxpayers filing with an individual taxpayer identification number are eligible for the earned income tax credit.

Section 6 of the act specifies that the state treasurer shall transfer $113 million on March 1, 2021, and $23 million on March 1, 2022, from the general fund to the state education fund created in section 17 (4) of article IX of the state constitution.

Section 7 of the act makes an appropriation.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act creates the rural economic development initiative (REDI) grant program in the department of local affairs (department) to provide grants for projects that create new jobs through a new employer or the expansion of an existing employer and for projects that create diversity and resiliency in the local economies of rural communities. The department is required to administer the REDI grant program in consultation with the Colorado office of economic development.

Entities eligible to receive REDI grant program money include local governments and organizations or individuals working in partnership with a local government, where the local government serves as the grant administrator, including intergovernmental agencies, councils of government, housing authorities, beginning farmers, the Southern Ute Indian Tribe, the Ute Mountain Ute Tribe, nonprofit economic development organizations, and private employers.

The act specifies criteria that the department is required to consider when evaluating grant applications and requires the department to prioritize applications that would create new jobs. The act specifies the types of projects for which REDI grants may be awarded to eligible recipients and requires grant recipients to provide matching funds.

If the department determines that a rural community needs resources or assistance because it has been impacted by a significant economic event or an anticipated event that has been announced, the department may use all or a portion of the money appropriated for the purposes of the REDI grant program for the purposes of the "Rural Economic Advancement of Colorado Towns (REACT) Act".

The executive director of the department is required to adopt policies and procedures for the administration of the REDI grant program and is also required to produce a report summarizing the use of all money that was awarded as grants from the REDI grant program in the preceding fiscal year.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Before passage of the act, the adult education and literacy grant program (grant program) was focused on workforce development partnerships to provide adult education that leads to increased levels of employment. The act recognizes that, in addition to increasing employment, adult education is necessary to ensure an adult population that is better prepared to support the educational attainment of the next generation and actively participate as citizens in a democratic society.

The act expands the grant program to provide grants to adult education providers that enter into an education attainment partnership with elementary and secondary education providers or higher education providers to assist adults in attaining basic literacy and numeracy skills that lead to additional skill acquisition and may lead to postsecondary credentials and employment and that assist adults in providing academic support to their own children or to children for whom they provide care. The act allows the state board of education, in awarding grants, to give preference to adult education programs that serve populations that are underserved by federal funding.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Tax Expenditure Evaluation Interim Study Committee. The bill creates the legislative oversight committee concerning tax policy (committee), and the associated task force (task force).

The committee is required to consider the policy considerations contained in the tax expenditure evaluations prepared by the state auditor and is responsible for the oversight of the task force. The committee may recommend legislative changes that are treated as bills recommended by an interim legislative committee.

The task force is required to study tax policy and develop and propose for committee consideration any modifications to the current system of state and local taxation.

The task force is also authorized, upon request by a committee member, to provide evidence-based feedback on the potential benefits or consequences of a legislative or other policy proposal not directly affiliated with or generated by the task force, including any bill or resolution introduced by the general assembly that affects tax policy.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

For state fiscal years commencing on or after July 1, 2020, the bill requires 10% of net revenue from sales and use tax, as a portion of the sales and use taxes attributable to sales or use of vehicles and related items, to be credited to the highway users tax fund (HUTF) and thereafter allocated for state, county, and municipal highway system projects in accordance with the existing "second stream" formula for the allocation of HUTF money as follows:

• 60% to the state highway fund;
• 22% to counties; and
• 18% to municipalities.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill creates the rural development grant program to be administered by the Colorado office of economic development. The grants are to be awarded to early stage rural businesses that are primary employers in a rural area with the potential to export goods or services outside of the rural area or for the programmatic expenses of economic development organizations that help promote early stage rural businesses. Early stage rural businesses must be at the seed stage of capital financing, have raised less than $500,000 of third-party capital, and must be able to provide nonstate matching funding equal to at least 1/3 of the grant award. Grants to the early stage rural businesses may be used for developing prototypes, proof of business concepts, or proof of business models. The grants are funded from the general fund and are limited to no more than $150,000 per early stage rural business per year.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill enacts the "Consumer and Employee Dispute Resolution Fairness Act" (act). For certain consumer and employment arbitrations, the act:

• Prohibits the waiver of standards for and challenges for evident partiality prior to a claim being filed and requires any waiver of such provisions after the claim is filed to be in writing;
• Provides that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
• Authorizes the nonobjecting party to seek provisional remedies from court if a party objects to an arbitrator and the parties are not able to agree on an arbitrator;
• Establishes ethical standards for arbitrators; and
• Requires specified public disclosures by arbitration services providers to the parties but includes protections for certain confidential information.

The bill also requires an individual arbitrator for certain consumer and employment arbitrations to make additional disclosures of information that might affect the arbitrator's impartiality.

The bill specifies how attorney fees and other reasonable expenses are to be awarded if a court vacates an award because of an arbitrator's evident partiality or failure to make required disclosures. and clarifies when appeals of orders may be made in consumer and employee arbitrations.

The bill also provides that for a standard form contract involving a consumer or an employee:

• Specified terms are unenforceable as against public policy; and
• Including an unenforceable term constitutes a deceptive trade practice under the "Colorado Consumer Protection Act"; and
• How certain cost-shifting provisions are to be interpreted.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The bill requires the staff of the legislative council to prepare business fiscal impact notes (notes) on legislative bills in each regular session of the general assembly. The speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, and the minority leader of the senate are authorized to request 2 notes each, or more at the discretion of the director of research of the legislative council.

The bill requires the staff of the legislative council to meet with the member of leadership requesting the note and with the sponsor of the legislative bill to discuss whether a note can practically be completed for that legislative bill. If not, the member of leadership may request a note on a different legislative bill.

A business fiscal impact note is defined as a note that uses available data to analyze the potential direct economic effects of a legislative bill on Colorado businesses, including costs related to compliance, impacts on hiring or job losses, savings or cost reductions, and other fiscal impacts.

The bill requires the director of research of the legislative council to develop the procedures for requesting, completing, and updating the notes and to memorialize the procedures in a letter to the executive committee of the legislative council.

The staff of the legislative council must designate a 5-day period during which Colorado businesses can submit comments on the impacts of a legislative bill selected for the preparation of the note, or a shorter time if the bill is selected during the last 30 days of session. The staff must summarize and compile the comments as part of the note.

Finally, the legislative bill requires each state department, agency, or institution to cooperate with and provide information for a note of a legislative bill in the manner requested by the staff of the legislative council.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill:

• Increases the statutory limitation period for actions based on construction defects from 6 years to 10 years;
• Allows tolling of the limitation period on any statutory or equitable basis; and
• Requires tolling of the limitation period until the claimant discovers not only some physical manifestation of a construction defect but also its cause.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill requires the public utilities commission to adopt by rule, no later than July 31, 2021, renewable natural gas programs for large natural gas utilities (those that have at least 200,000 250,000 customer accounts in Colorado) and small natural gas utilities (those that have fewer than 200,000 250,000 customer accounts in Colorado). Municipally owned natural gas utilities may, but need not, participate in a renewable natural gas program. The rules must include reporting requirements and a process for natural gas utilities to fully recover prudently incurred costs associated with the large and small renewable natural gas programs.

"Renewable natural gas" is defined to mean any of the following products processed to meet pipeline quality standards or transportation fuel-grade requirements or delivered by an alternative energy carrier :

• Biogas that is blended with, or substituted for, geologic natural gas;
• Hydrogen gas derived from renewable energy sources; or
• Methane gas derived from any combination of biogas; hydrogen gas or carbon oxides derived from renewable energy sources; waste carbon dioxide; coalbed methane resulting from human activity; naturally occurring coalbed deposits; a municipal solid waste landfill; waste tire or municipal solid waste pyrolysis; or biogas recovery from manure management systems and anaerobic digesters ; or the decomposition of organic food waste .

If a large natural gas utility's total incremental annual cost to meet the targets of the large renewable natural gas program exceeds 5% 2% of the large natural gas utility's total revenue requirement for a particular year, the large natural gas utility shall not make additional qualified investments under the large renewable natural gas program for that year without approval from the commission. The bill establishes the following portfolio targets for the percentage of gas purchased by large natural gas utilities that is renewable natural gas:

• By January 1, 2025, at least 5% must be renewable natural gas;
• By January 1, 2030, at least 10% must be renewable natural gas; and
• On and after January 1, 2035, at least 15% must be renewable natural gas.

Small natural gas utilities may opt in to the small renewable natural gas program as established by the commission by rule. The rule must include tradeable credits and a rate cap limiting the small natural gas utility's costs of procuring renewable natural gas from third parties and qualified investments in renewable natural gas infrastructure.

The bill appropriates $83,555 from the fixed utilities cash fund to the department of regulatory agencies for use by the public utilities commission to implement the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

In 2019, the general assembly created the Colorado secure savings board (board) in the office of the state treasurer to study the costs to the state of insufficient retirement savings and 3 approaches to increasing retirement savings in Colorado. The board found that a state-facilitated automatic enrollment individual retirement account program is the best option for Colorado and recommended the establishment of such a program, coupled with the greater use of financial education tools in the state. In furtherance of the board's recommendation, the act directs the board to create and implement the Colorado secure savings program (program).

The act specifies the powers and duties of the board in connection with the creation and administration of the program and updates the criteria to which the board is required to adhere in developing the program. The board is required to adopt rules regarding enrollment in the program, contributions to and withdrawals from program accounts, the process for employer exemptions from offering the program, and required disclosures.

The act creates the Colorado secure savings program fund in the state treasury to consist of money appropriated by the general assembly, money transferred to the fund by the federal government, money from fees and penalties in connection with the program, any gifts, grants, or donations made to the fund, and any gifts, grants, donations, or investments made to the state treasurer. The state treasurer may solicit gifts, grants, donations, or investments not required to be repaid, from public or private sources to cover the costs associated with the administration of the program.

All individual account information for accounts under the program is confidential and may not be disclosed except under specified circumstances.

For the 2020-21 state fiscal year, the general fund appropriation made in the annual general appropriation act to the office of the governor for use by the office of information technology for applications administration is decreased by $1,197,552. The same amount is appropriated from the general fund to the department of the treasury for the implementation of the act. Any money appropriated that is not expended prior to July 1, 2021, is further appropriated to the department for the 2021-22 state fiscal year for the same purpose.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

On the effective date of the act through December 31, 2020, all employers in the state, regardless of size, are required to provide each of their employees paid sick leave for reasons related to the COVID-19 pandemic in the amounts and for the purposes specified in the federal "Emergency Paid Sick Leave Act" in the "Families First Coronavirus Response Act".

Starting January 1, 2021, for employers with 16 or more employees, and starting January 1, 2022, for all employers, the act requires employers to provide paid sick leave to their employees, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours per year.

An employee begins accruing paid sick leave when the employee's employment begins, may use paid sick leave as it is accrued, and may carry forward and use in subsequent calendar years up to 48 hours of paid sick leave that is not used in the year in which it is accrued. An employer is not required to allow the employee to use more than 48 hours of paid sick leave in a year.

Employees may use accrued paid sick leave to be absent from work for the following purposes:

• The employee has a mental or physical illness, injury, or health condition; needs a medical diagnosis, care, or treatment related to such illness, injury, or condition; or needs to obtain preventive medical care;
• The employee needs to care for a family member who has a mental or physical illness, injury, or health condition; needs a medical diagnosis, care, or treatment related to such illness, injury, or condition; or needs to obtain preventive medical care;
• The employee or family member has been the victim of domestic abuse, sexual assault, or harassment and needs to be absent from work for purposes related to such crime; or
• A public official has ordered the closure of the school or place of care of the employee's child or of the employee's place of business due to a public health emergency, necessitating the employee's absence from work.

In addition to the paid sick leave accrued by an employee, the act requires an employer, regardless of size, to provide its employees an additional amount of paid sick leave during a public health emergency in an amount based on the number of hours the employee works.

The act prohibits an employer from retaliating against an employee who uses the employee's paid sick leave or otherwise exercises the employee's rights under the act. Employers are required to notify employees of their rights under the act by providing employees with a written notice of their rights and displaying a poster, developed by the division of labor standards and statistics (division) in the department of labor and employment (department), detailing employees' rights under the act.

The director of the division will implement and enforce the act and adopt rules necessary for such purposes. An employer found in violation of the act is liable to the employee for back pay and other equitable damages.

The act treats an employee's information about the employee's or a family member's health condition or domestic abuse, sexual assault, or harassment case as confidential and prohibits an employer from disclosing such information or requiring the employee to disclose such information as a condition of using paid sick leave.

The act specifies the conditions in which collective bargaining agreements result in compliance with, or exemption from, the act.

$206,566 is appropriated to the department for use by the division to implement the act, based on the assumption that the division will require an additional 2.7 FTE for such purpose.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Beginning in calendar year 2021 and each year thereafter, the act increases the amount of wages paid to an individual employee during a calendar year on which the employer of that employee is required to pay premiums to the unemployment compensation fund (fund).

The act exempts payment for services to an election judge, up to the maximum amount permissible by federal law, for the purposes of calculating total unemployment compensation benefits.

Current law requires the weekly total and partial unemployment benefit amounts to be reduced by the amount of an individual's wages that exceeds 25% of the weekly benefit amount. For the next 2 calendar years only, the act changes the deduction amount to the amount of an individual's wages that exceeds 50% of the weekly benefit amount.

When determining whether an individual qualifies for unemployment insurance, the act directs the division of unemployment insurance (division) in the department of labor and employment (department) to consider whether the individual has separated from employment or has refused to accept new employment because:

• The employer requires the individual to work in an environment that is not in compliance with: Federal centers for disease control and prevention guidelines applicable to the employer's business and workplace at the time of the determination; state and federal laws, rules, and regulations concerning disease mitigation and workplace safety; or an executive order issued by the governor, or a public health order issued by the department of public health and environment or a local government, requiring the employer to close the business or modify the operation of the business;
• The individual is the primary caretaker of a child enrolled in a school that is closed due to a public health emergency or of a family member or household member who is quarantined due to an illness during a public health emergency; or
• The employee is immunocompromised and more susceptible to illness during a public health emergency.

The act changes the time period that an interested party has to respond to a notice of claim received by the division concerning unemployment benefits from 12 calendar days to 7 calendar days.

Current law authorizes the division to approve a work share plan submitted by an employer if the employee's normal weekly work hours have been reduced by at least 10% but not more than 40%. The act changes the amount that hours may be reduced to an amount consistent with rules adopted by the division and federal law.

The act removes the cap on the amount of money that can be paid into and remain in the employment support fund.

The act prohibits the division from assessing a solvency surcharge for the fund on employers for the calendar years 2021 and 2022.

The act requires the state treasurer to transfer any unexpended federal funds received by the state from the federal "CARES Act" to the fund prior to the close of business on December 30, 2022.

The act requires the office of future of work in the department to study unemployment assistance as part of a study on the modernization of worker benefits and protections and report its findings to the governor and the general assembly.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act establishes the health insurance affordability enterprise, for purposes of section 20 of article X of the state constitution, that is authorized to assess a health insurance affordability fee (insurer fee) on certain health insurers and a special assessment (hospital assessment) on hospitals in order to:

• Provide business services to carriers that pay the insurer fee, including services to increase enrollment in health benefit plans offered by carriers across the state; increase the number of individuals who are able to purchase health benefit plans in the individual market by providing financial support for certain qualifying individuals; fund the reinsurance program that offsets the costs carriers would otherwise pay for covering consumers with high medical costs; improve the stability of the market throughout the state by providing consistent private health care coverage and reducing the movement of individuals from insured to uninsured status; reduce provider cost shifting from the individual market and the uninsured to the group market; and create a healthier risk pool for all carriers by establishing a path for consistent coverage for individuals; and
• Provide business services to hospitals, including by reducing the amount of uncompensated care provided by hospitals; reducing the need of providers to shift costs of providing uncompensated care to other payers; and expanding access to high-quality, affordable health care for low-income and uninsured residents.

The enterprise is to start assessing and collecting the insurer fee in 2021, which fee is based on a percentage of premiums collected by health insurers in the previous calendar year on health benefit plans issued in the state. The hospital assessment is a specified amount assessed and collected in the 2022 and 2023 calendar years. Money collected from the insurer fee and hospital assessment is to be deposited in the health insurance affordability cash fund (fund), which the act creates. The act also transfers an amount of premium taxes collected by the state in 2020 or later years that exceeds the amount collected in 2019, but not more than 10% of the enterprise's revenues, to the fund.

The enterprise is required to use the insurer fee, the hospital assessment, and any premium tax revenues or other money available in the fund, in accordance with the allocation specified in the act, for the following purposes:

• To provide funding for the Colorado reinsurance program;
• To provide payments to carriers to increase the affordability of health insurance on the individual market for Coloradans who receive the premium tax credit available under federal law;
• To provide subsidies for state-subsidized individual health coverage plans purchased by qualified low-income individuals who are not eligible for the premium tax credit or public assistance health care programs;
• To pay the actual administrative costs of the enterprise and the division of insurance for implementing and administering the act, limited to 3% of the enterprise's revenues; and
• To pay the costs for consumer enrollment, outreach, and education activities regarding health care coverage.

The enterprise is governed by an 11-member board composed of the executive director of the Colorado health benefit exchange and the commissioner of insurance or their designees and 9 members appointed by the governor and representing various aspect of the health care industry and health care consumers.

With regard to the Colorado reinsurance program and enterprise, the act:

• Incorporates the reinsurance program enterprise within the health insurance affordability enterprise;
• Eliminates funding for the reinsurance program from special assessments on hospitals and health insurers, excess premium tax revenues, and specified transfers from the state general fund and instead allocates a portion of the health insurance affordability enterprise revenues to the reinsurance program annually; and
• Extends the reinsurance program, subject to federal approval of a new or extended state innovation waiver to enable the state to operate the reinsurance program and access federal funding for the program.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill provides that, for purposes of the "Workers' Compensation Act of Colorado", if an essential worker who works outside of the home contracts COVID-19, the contraction is:

• Presumed to have arisen out of and in the course of employment; and
• A compensable accident, injury, or occupational disease.

An essential worker is considered to have contracted COVID-19 if the worker tests positive for the virus that causes COVID-19, is diagnosed with COVID-19 by a licensed physician, or has COVID-19 listed as the cause of death on the worker's death certificate.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

Property tax in Colorado is generally equal to the actual value of property multiplied by an assessment rate, and the resulting assessed value is multiplied by each applicable local government's mill levy. The assessment rate for residential real property is established by the general assembly in accordance with a provision of the state constitution that is commonly known as the "Gallagher Amendment" and is limited by section 20 of article X of the state constitution (TABOR). Under the Gallagher Amendment, there are 2 relevant classes of property for the purposes of determining the residential assessment rate: residential property and nonresidential property. The assessment rate for most nonresidential property is fixed in the state constitution at 29%. The residential assessment rate was initially set at 21%, but the rate has been adjusted prior to each 2-year reassessment cycle to keep the percentage of aggregate statewide assessed value attributable to residential property the same as it was in the year immediately preceding the new reassessment cycle. Currently, the residential assessment rate is 7.15%.

The concurrent resolution repeals the Gallagher Amendment so that the general assembly will no longer be required to establish the residential assessment rate based on the formula expressed in the Gallagher Amendment. The resolution also repeals the reference to the residential rate of 21%, which last applied in 1986 prior to the first adjustment required by the Gallagher Amendment. Finally, the resolution repeals the 29% assessment rate that applies for all nonresidential property, excluding producing mines and lands or leaseholds producing oil or gas.

(Note: This summary applies to this concurrent resolution as adopted.)

Fiscal Note