The act creates the state apprenticeship agency (SAA) in the department of labor and employment (department) and specifies that it exercises its powers, duties, and functions, including rule-making, regulation, licensing, and registration, the promulgation of rates and standards, and the rendering of findings, orders, and adjudications, independently of the executive director of the department. The executive director of the department is required to appoint the director of the SAA. The purpose of the SAA is to:

• Serve as the primary point of contact with the United States department of labor's office of apprenticeship concerning apprentices and registered apprenticeship programs;
• Accelerate new apprenticeship program growth and assist in promotion and development; and
• Oversee apprenticeship programs, including registration, required standards for registration, certification, quality assurance, record-keeping, compliance with federal laws and standards, and provision of administrative and technical assistance.

The director of the SAA is authorized to promulgate rules to implement the state apprenticeship registration program.

The director of the SAA is required to establish the state apprenticeship council (SAC) and an interagency advisory committee (IAC) on apprenticeship. The governor and the director of the SAA appoint the members of the state apprenticeship council and the interagency advisory committee.

The SAC is charged with overseeing registered apprenticeship programs for the building and construction trades in this state and ensuring compliance with state and federal laws and standards. The IAC is charged with the same responsibilities for all other apprenticeships not in the building and construction trades. Both entities are charged with:

• Registering with and maintaining the standards of the United States department of labor's office of apprenticeship and developing standards for registration for their respective apprenticeship programs;
• Resolving conflicts and complaints that arise between parties to apprenticeship agreements;
• Reviewing apprenticeship program performance;
• Making recommendations concerning apprenticeship programs to the director of the state apprenticeship agency;
• Providing technical and professional guidance and promoting best practices;
• Developing administrative policies to ensure safety and quality standards;
• Providing an annual report to the executive director of the department of labor and employment; and
• Advising the SAA concerning their assigned functions and formulating policies for their respective industries.

The act establishes a joint resolution committee of the state apprenticeship council and the interagency advisory committee to resolve conflicts between the 2 entities and to define their respective jurisdictions.

Additionally, the act requires the state apprenticeship agency to accept applications for registration of apprenticeship programs beginning July 1, 2023. The state apprenticeship agency may deregister an apprenticeship program for noncompliance with the requirements in the act. The state apprenticeship agency shall conduct a hearing upon request of the SAC or the IAC regarding issues of noncompliance and deregistration.

The apprenticeship program is repealed, effective September 1, 2029, after a review of the director's functions is performed.

To implement this act, $485,249 is appropriated to the department of labor and employment for use by the SAA. From this amount $85,072 is appropriated to the department of law, and $78,598 is appropriated to the office of the governor.

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

Fiscal Note

Colorado law authorizes certain license holders, who normally offer alcohol beverages for consumption on the licensed premises, to offer takeout and delivery of alcohol beverages, but this authorization was scheduled to repeal on July 1, 2021. The act delays the repeal until July 1, 2025; except that manufacturers who have a sales room may continue to deliver alcohol beverages only until January 2, 2022.

The act limits the times that an alcohol beverage may be sold for takeout or delivery from 7 a.m. to midnight. The amounts of alcohol beverages that may be sold for delivery or takeout are increased:

• From 750 milliliters to 1,500 milliliters of vinous liquors;
• From 72 fluid ounces to 144 fluid ounces of malt liquors, fermented malt beverages, and hard cider; and
• From 750 milliliters to one liter of spirituous liquors.

The act also creates a communal outdoor dining area program. The program allows multiple licensees to attach to the area and serve alcohol beverages to the diners in the area. A licensee may attach to the area only if the licencee's premises are within 1,000 feet of the area. The area and attachment must be approved by both the local and state licensing authorities, who may charge a fee for the approval. The following licensees may attach to an area:

• Tavern;
• Hotel and restaurant;
• Brew pub;
• Distillery pub;
• Vintner's restaurant;
• Beer and wine licensee;
• Manufacturer that operates a sales room;
• Beer wholesaler that operates a sales room;
• Limited winery;
• Lodging and entertainment facility;
• Optional premises; or
• Fermented malt beverage retailer licensed for consumption on the premises.

For the 2021-22 state fiscal year, $63,274 is appropriated for use by the liquor and tobacco enforcement division to implement the act.

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

Fiscal Note

Commencing in 2021, and every year thereafter as part of the presentation by the department of local affairs (DOLA) to its legislative oversight committees in connection with its "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearing, the act requires the division of housing (division) in DOLA to prepare a public report that specifies the total amount of money that:

• The division or the state housing board (board) was appropriated, awarded, allocated, or transferred from any federal, state, other public, or any private source during the prior fiscal year that may be used for the preservation or production of emergency or affordable housing;
• The division or the board has awarded from any federal, state, other public, or any private source during the prior fiscal year that may be used for the preservation or production of emergency or affordable housing; and
• The division or the board expended from state funding during the prior fiscal year on administrative costs associated with each funding source and the number of full-time employees supported by the funding source.

The act identifies various items the report must address. The report must be posted on the division's website and shared with the board as well as DOLA's legislative oversight committees as part of its SMART Government Act hearing.

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

Fiscal Note

Section 1 of the bill allows a person to sell, without licensure, regulation, or inspection by a public health agency, an animal or shares of the meat of an animal for future delivery if:

• At the point of sale, the person displays a conspicuous disclaimer or gives the customer a document with a disclaimer indicating that the seller is not subject to licensure and the animal or meat is not subject to state regulation or inspection by a public health agency and that the animal or meat is not intended for resale; and
• The animal or meat is delivered directly from the seller to an informed end consumer and is sold only in Colorado and the sale does not involve interstate commerce.

A person who makes a purchase under the bill is prohibited from reselling the animal or animal share. The bill clarifies that the seller is not liable in a civil action for damages caused by inadequately cooking or improperly preparing the animal or animal share.

Section 2 limits the number of brand inspections for an animal share sale to a single inspection before slaughter. Each purchaser must be listed on the inspection certificate. The state board of stock inspection commissioners will promulgate rules establishing procedures for a single inspection.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act creates a statutory basis to allow a private employer to give preference to a veteran of the armed forces or the National Guard and the spouse of a service member killed in the line of duty when hiring a new employee, as long as the veteran or the spouse is as qualified as other applicants for employment. The act allows a private employer's veterans' preference employment policy to also include the preferential hiring of a veteran who has been discharged from active duty within the last 5 years, a spouse of a veteran killed in the line of duty within 5 years after the death, and a veteran with a disability within 10 after the date of discharge. The act creates a rebuttable presumption that a private employer that adopts a program that gives preferences to veterans or their spouses is not committing a discriminatory or unfair labor practice.

The act requires the office of economic development to begin the development of production materials to educate and encourage employers to hire veterans.

$25,000 is appropriated to the office of economic development for allocation to the office of film, television, and media for the development of production materials.

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

Fiscal Note

The act creates the legislative oversight committee concerning tax policy (committee) and the associated task force (task force).

The committee is required to annually define in writing, no later than the second meeting of the year, the scope of tax policy to be considered for the committee and the task force. The committee is responsible for considering the policy considerations contained in the tax expenditure evaluations prepared by the state auditor. The committee 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 within its scope as annually defined by the committee and is required to develop and propose for committee consideration any tax policy and legislative recommendations.

The task force is also authorized, with approval from the committee chair in consultation with the committee vice-chair, 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 enacted.)

Fiscal Note

The bill states that in a class action under the "Colorado Consumer Protection Act", a successful plaintiff may recover actual damages, injunctive relief allowed by law, and reasonable attorney fees and costs.

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

Fiscal Note

The act moves the broadband deployment board (board) from the department of regulatory agencies (department) to the office of information technology (office) and, on September 1, 2021, reduces the membership of the board from 16 to 11 members.

The board is required to develop a request for proposal process through which the board will solicit bids for proposed projects that serve critically unserved areas of the state identified by the office. The board is required to reserve up to 60% of the money from the high cost support mechanism that is allocated for broadband deployment to award grants to proposed projects solicited through the request for proposal process. "Critically unserved" is defined in the act to mean a household or area that lacks access to at least one provider of nonsatellite broadband service delivered at measurable speeds of at least 10 megabits per second downstream and one megabit per second upstream or at measurable speeds of at least one-half of the minimum measurable speeds that qualify as broadband under the federal communications commission's definition, rounded up, whichever is faster.

The act also:

• Requires an applicant or appellant to submit either written certification from a local entity indicating that the area to be served by the applicant's project is an unserved area or a statistically representative number of speed tests performed on an incumbent provider's network and conducted in accordance with industry-standard speed-test protocols;
• Gives additional consideration to proposed projects that would give discounted service for low-income households;
• Contractually requires an applicant receiving a grant award to:
• Report annually on the number of homes and businesses served by the grant-supported broadband network, the number of homes and businesses expected to be served in the following year, and the speeds, rates, and services offered to customers through the grant-supported broadband network; and
• Provide third-party performance-testing certification, after the grant money has been fully expended, that the project meets the original design of, and provides the measurable speeds, rates, and services set forth in, the application.
• Requires an applicant or appellant to submit to the office, in a form and manner determined by the office, certain granular mapping data, which data is not a public record under the "Colorado Open Records Act"; and
• Uses the request for proposal process, or a substantially similar process, for the disbursement of any federal money the board receives for broadband deployment projects and programs so long as using the request for proposal process complies with federal requirements for use of the money.

For the 2021-22 state fiscal year, the act transfers $202,504 of the appropriation made in the annual general appropriation act from the department of regulator agencies to the office of the governor for use by the office of information technology to implement the act.

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

Fiscal Note

The act clarifies that the existing authority of cities and counties 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. The act also states that it should not be construed to authorize a local government to adopt or enforce any ordinance or regulation that would have the effect of controlling rent on any existing private residential housing unit in violation of the existing statutory prohibition on rent control.

The act prohibits a local government from exercising this new regulatory authority unless the local government demonstrates, at the time it enacts a land use regulation for the purpose of exercising such authority, it has taken one or more among a list of specified actions to increase the overall number and density of housing units within its jurisdictional boundaries or to promote or create incentives to the construction of affordable housing units.

The act requires the department of local affairs to offer guidance to assist local governments in connection with its implementation.

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

Fiscal Note

The act facilitates business entities' ability to conduct business activities electronically by:

• Defining terms, including address, delivery, document, e-mail, electronic transmission, notice, and sign, that relate to electronic communications;
• Specifying how notice may be given by electronic transmission; and
• Establishing requirements for remote participation in shareholders' and directors' meetings.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act requires the Colorado work force development council (council), in collaboration with local work force boards, the department of education, superintendents of local school districts, the state board for community colleges and occupational education (community college board), and other postsecondary partners, to design a career pathway for students in the energy sector using an existing statutory model for the design and implementation of career pathways. The act defines "energy sector" to include electromechanical generation and maintenance, electrical energy transmission and distribution, energy efficiency and environmental technology, and renewable energy production.

The act creates the strengthening photovoltaic and renewable careers (SPARC) workforce development program (SPARC program) in the department of labor and employment (department). The purpose of the SPARC program is to create capacity for and bolster training, apprenticeship, and education programs in the energy sector career pathway to increase employment in the energy sector, prioritizing in-demand and growing occupations in the energy sector. The department, the council, the community college board, and the department of higher education shall use money appropriated by the general assembly to expand the capacity of training programs and support the energy sector career pathway, as described in the act. The department, in consultation with the council, the community college board, and the department of higher education, shall determine the amount of money allocated to public institutions of higher education, local workforce development areas, and others. The act creates the SPARC program fund.

By November 1, 2022, and each November 1 thereafter, the act requires the council to submit an annual report to the house of representatives business affairs and labor committee, energy and environment committee, and education committee, or their successor committees, and to the senate business, labor, and technology committee, transportation and energy committee, and education committee, or their successor committees , concerning the implementation of the SPARC program and the use of funding, and to present a summary of the report at the department's annual presentation to the general assembly. The act repeals the program, effective July 1, 2026.
For the 2021-22 state fiscal year, the act appropriates:

• $90,048 and 1.3 FTE to the department from the SPARC program fund for one-stop workforce center contracts and the Colorado work force development council; and
• $1,724,590 to the department of higher education from the SPARC program fund for the community college board and state system community colleges.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act repeals the enterprise zone child care contributions income tax credit that was available for income tax years commencing prior to January 1, 1999.

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

Fiscal Note

The act 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 this bill as enacted.)

Fiscal Note

The act authorizes the Space National Guard to be added to provisions in statute that mention the Army National Guard and Air National Guard. The federal government is likely to create the Space National Guard in the "FY 2022 National Defense Authorization Act". Implementing the Space National Guard in existing statute now will allow the Air National Guard space units to transition to the Space National Guard once the federal government establishes the Space National Guard.

The act also adds "Space Force" to provisions in statute that list the branches of the armed forces: Army, Navy, Air Force, Marines, and the Coast Guard.

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

Fiscal Note

The act modifies requirements for an existing loan program (program) created to assist transitions of businesses to employee-owned businesses. The act repeals statutory eligibility requirements and requires the office of economic development (office) to establish eligibility criteria for the program. The criteria must include an annual gross revenues limitation for participation in the program for businesses, which amount may be set at up to or less than $50 million. The criteria must also establish requirements for the number of employees who will be offered the option to participate in the employee-ownership opportunity.

A loan under the program may be used toward the purchase of the business by the employees. The act repeals requirements related to the size of the loans and how the loans must be held and requires the office to establish requirements for the terms of the loans pursuant to existing statutory requirements.

Under the current statute, the program is repealed effective July 1, 2022. The act extends the program through July 1, 2025.

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

Fiscal Note

The act transfers $5 million from the general fund to the local government severance tax fund for the purpose of funding grants to local governments for renewable and clean energy infrastructure implementation projects. The grants must be made by August 15, 2021, or as soon as possible thereafter, and the department of local affairs, which makes the grants, is required to report to the general assembly regarding the grants during its 2022 annual "SMART Act" presentation to legislative committees of reference. $5 million is appropriated from the local government severance tax fund to the division of local government of the department of local affairs for state fiscal year 2020-21 so that the division can make the grants, and any of the money not expended before July 1, 2021, is further appropriated to the division for the 2021-22 and 2022-23 state fiscal years for the same purpose.

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

Fiscal Note

The act creates the agricultural events relief program in the department of agriculture to provide COVID-19 relief payments to agricultural events organizations, and appropriates $2 million from the general fund for the program. In addition, the act appropriates:

• $5 million for the Colorado state fair and industrial exhibition;
• $25 million for aiding the national western stock show event in constructing the national western stock show's campus; and
• $3.5 million for the national western stock show.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act creates the Colorado meeting and events incentive program (program) in the Colorado tourism office (office) to provide rebates and direct support to eligible events in Colorado to assist in the state's recovery from the COVID-19 pandemic.


An eligible event means an event, including a meeting, conference, or festival, that:

• Takes place in Colorado between July 1, 2021, and December 31, 2022;
• Can demonstrate a significant economic benefit for the host community as determined by the office;
• Generates at least 25 paid overnight stays in a motel, hotel, vacation rental, or other lodging establishment; and
• Meets any additional criteria established by the office.

The program may offer rebates of up to 10% of the hard costs of an eligible event. A hard cost means an actual incurred cost associated with hosting the event, as determined by the office in consultation with industry stakeholders. The program may also offer rebates of up to 25% for COVID-19-related costs, which are hard costs that are directly related to complying with public health orders or other mandates issued in response to the COVID-19 pandemic, as determined by the office in consultation with industry stakeholders. The primary organizer or booking agent, as determined pursuant to guidelines developed by the office, may apply for and receive the rebate for an eligible event.

The program may provide direct support to attract eligible events that have the potential to generate significant economic impact and affect multiple counties. The costs of all such direct support cannot exceed 5% of the total appropriation for the program.

The office is required to create guidelines for the program. In doing so, the office must consider mechanisms to:

• Make rebates and direct support available equitably and proportionally across the state;
• Prioritize events with significant economic impacts; and
• Retain existing events with a demonstrated risk of cancellation, delay, or relocation in addition to attracting new events to the state.

The act appropriates $10 million to the office for the program. The program is repealed, effective January 1, 2024.

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

Fiscal Note

The act creates the workers, employers, and workforce centers cash fund (fund) for the purpose of responding to the COVID-19 public health emergency and the negative economic impacts of the pandemic as follows:

• To provide assistance to unemployed workers, including job training;
• To provide assistance to households;
• For programs, services, or other assistance for populations disproportionately impacted by the public health emergency, including programs or services to address or mitigate the effects on education;
• To provide aid to impacted industries, small businesses, and nonprofit organizations through the provision of related educational and job training services; and
• For related administrative costs.

The act directs the state treasurer to transfer to the fund $200 million of the money the state received pursuant to the federal "American Rescue Plan Act of 2021" (ARPA) and $25 million from the general fund. Of this amount, the act appropriates a total of $75 million for use in the 2021-22 state fiscal year, allocated in the following amounts and for the following purposes related to assisting unemployed workers, aiding impacted industries, and addressing or mitigating the impacts of the public health emergency on education:

• $25 million for the investments in reskilling, upskilling, and next-skilling workers program (program), which is an initiative of the state work force development council (state council) to facilitate training for unemployed and underemployed workers in the state during times of substantial unemployment, defined as an unemployment rate that exceeds 4% statewide or within a work force development area. Of this amount, the state council, in collaboration with the department of labor and employment (department), is directed to allocate: $20.75 million to local work force development areas for the program; $3 million for a grant program developed by the state council to award grants to other partners to provide reskilling, upskilling, and next-skilling supports to eligible individuals for up to 13 months; and $1.25 million for the department to conduct outreach and recruitment, provide access to digital platforms for career navigation, issue licenses for virtual training classes, and implement, administer, and report on the program, with any portion of the $1.25 million that is unencumbered and unexpended as of June 30, 2022, reallocated for the program and the grant program.
• $35 million for programs and initiatives established under the "Work Force Innovation Act", including $17.5 million for allocation to work force development boards for the work force innovation grant program to promote innovation to improve outcomes for learners and workers by helping prepare Coloradans for well-paying, quality jobs; and $17.5 million for use by the state council for statewide work force innovation initiatives;
• $10 million to the department of higher education for allocation by the state board for community colleges and occupational education to specified career and technical education providers to expand equipment, facility, and instruction capacity in key career and technical education job demand areas identified in the annual Colorado talent report; and
• $5 million to the department of education for the adult education and literacy grant program.

As required by ARPA, the money appropriated in the act must be obligated by December 31, 2024, and expended by December 31, 2026, and recipients of ARPA money must comply with reporting requirements specified in ARPA and by the state controller.

The act also authorizes the department to receive and expend money from the general fund or any other state source that is appropriated by the general assembly or passed through another entity for purposes of distributing state funds to work force development areas to implement work force development activities. The act specifies that state money appropriated or passed through to the department is not subject to limits imposed on the use of money received by the department pursuant to specified federal laws.

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

Fiscal Note

The act continues for June 2021, July 2021, and August 2021 a temporary deduction from state net taxable sales for qualifying retailers in the alcoholic beverages drinking places industry, the restaurant and other eating places industry, and the mobile food services industry in the state in order to allow such qualified retailers to retain the resulting sales tax collected as assistance for lost revenue as a result of the economic disruptions due to the presence of coronavirus disease 2019 (COVID-19) in Colorado.

The act also expands the definition of qualifying retailers to include those in the catering industry, the food service contractors industry, and the hotel-operated restaurant, bar, or catering service.

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

Fiscal Note

The act creates 3 different programs in the department of local affairs (DOLA) for the purpose of offering grant money and other forms of state assistance to local governments to promote innovative solutions to the development of affordable housing across the state.
Local government affordable housing development incentives grant program (housing development incentives grant program). This program will provide grants to local governments that adopt not less than 3 policy and regulatory tools from among a menu of options that create incentives to promote the development of affordable housing. A local government that adopts such tools is eligible for a grant from the housing development incentives grant program as an incentive to develop one or more affordable housing developments in their community that are liveable, vibrant, and driven by community benefits. The division of local government (DLG) within DOLA administers the housing development incentives grant program.
The act enumerates items included in the menu of policy and regulatory tools.
Local government planning grant program. This program will provide grants to local governments that lack one or more of the policy and regulatory tools that provide incentives to promote the development of affordable housing that forms the basis for a grant under the housing development incentives grant program and that could benefit from additional funding to be able to create and make use of these policy and regulatory tools. Money under the planning grant program will be available to a local government to enable the government to retain a consultant or a related professional service to assess the housing needs of its community or to make changes to its policies, programs, development review processes, land use codes, and related rules to become an eligible recipient of a grant under the housing development incentives grant program. The planning grant program will be administered by the DLG. As part of its administration of the planning grant program, the DLG will provide assistance to local governments on best land use practices and tools and is required to update and publish model county and municipal land use codes for the benefit of local governments across the state.The affordable housing guided toolkit and local officials guide program (housing toolkit program). This program creates the housing toolkit program within the division of housing (DOH) within DOLA. The purpose of the housing toolkit program is to award funding to qualified counties, and municipalities, and federally recognized tribes within the state selected in a competitive process who commit to the adoption of best land use practices with demonstrated success in the development of affordable housing. Under the housing toolkit program, technical assistance will be provided by consultants and related professionals to local governments who demonstrate an understanding of the housing needs of their communities, take steps to engage their entire communities in this process, make changes to their land use codes and related processes that provide incentives and reduce barriers to the development of affordable housing, obtain and support viable sites in their communities for the development of affordable housing, and attract developers committed to making such investments in their communities. The DOH is to administer the housing toolkit program.
In evaluating applications for grants from the housing development incentives grant program, the act requires the DLG to prioritize proposals submitted by local governments based on factors specified in the act.

On or before September 1, 2021, the act requires the executive director of DOLA or the executive director's designee to adopt policies, procedures, and guidelines for the 3 different state assistance programs that include, without limitation:

• Procedures and timelines by which an eligible recipient may apply for a grant;
• Criteria for determining the amount of grant awards;
• Performance criteria for grant recipients' projects; and
• Reporting requirements for grant recipients.

On the effective date of the act, or as soon as practicable thereafter, the state treasurer is required to transfer $30,000,000 from the affordable housing and home ownership cash fund to the Colorado heritage communities fund and $9,300,000 from the general fund to the Colorado heritage communities fund. DLG must use this money transferred for the creation, implementation, and administration of the housing development incentives grant programs.

On the effective date of the act, or as soon as practicable thereafter, the state treasurer is required to transfer $5,000,000 from the affordable housing and home ownership cash fund to the Colorado heritage communities fund and $2,100,000 from the general fund to the Colorado heritage communities fund. DLG must use this money transferred for the creation, implementation, and administration of the planning grant program.

On the effective date of the act, or as soon as practicable thereafter, the state treasurer is required to transfer $1,600,000 from the general fund to the housing development grant fund for the creation, implementation, and administration by the DOH of the housing toolkit program.

All costs incurred in administering any of the 3 programs created under the act must be paid out of the money transferred under the act. All money transferred under the act for the 3 state programs must be expended over the subsequent 3 state fiscal years.

On or before November 1 of each year, the executive director of DOLA or the director's designee is required to publish a report summarizing the use of all assistance that was awarded from the 3 different programs created under the act in the preceding fiscal year. The act specifies additional required contents of the reports. The reports must be shared with the general assembly and posted on DOLA's website.

The act updates and repeals obsolete statutory provisions concerning the office of smart growth (OSG) within DOLA and the Colorado heritage communities fund.

The act authorizes the OSG, as money becomes available, to provide grants or other forms of assistance to counties and municipalities to address critical planning issues and specifies examples of the forms of assistance that may be provided by the office. The OSG is required to create guidelines to specify the activities on the part of local governments that will qualify for grant funding or other forms of assistance provided under the act. The OSG is permitted to use available money to administer the Colorado heritage grant program.

The act appropriates $39,300,000 to DOLA from the Colorado heritage communities fund for the affordable housing development incentives grant program.

The act appropriates $7,100,000 to DOLA from the Colorado heritage communities fund for the local government planning grant program.

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

Fiscal Note

The act:

• Transfers $5 million from the general fund to the Colorado office of film, television, and media operational account cash fund and appropriates that amount to the governor's office for use in the 2021-22 state fiscal year by the Colorado office of film, television, and media in awarding performance-based incentives for film production in Colorado and for the loan guarantee program to finance production activities;
• For the 2020-21 state fiscal year, appropriates $3.5 million, in addition to the amount appropriated pursuant to Senate Bill 20B-001, from the general fund to the creative industries cash fund for the arts relief program and removes the prohibition against an applicant that received a relief payment from the small business relief program from also receiving a relief payment under the arts relief program;
• For the 2020-21 state fiscal year, appropriates $1.5 million from the general fund to the creative industries cash fund for allocation by the creative industries division to a nonprofit organization that administers grants to certain cultural facilities that focus on programming for and have board representation from defined historically marginalized and under-resourced communities; and
• Transfers the following amounts of money appropriated for the small business relief program that is not encumbered or expended by June 30, 2021:
• Up to $12 million to the creative industries cash fund for the arts relief program; and
• Up to $1 million to the Colorado office of film, television, and media operational account cash fund for performance-based incentives for film production in Colorado and for the loan guarantee program to finance production activities.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act creates the Colorado startup loan program (program) in the office of economic development (office) as a revolving loan program to provide loans and grants to businesses seeking capital to start, restart, or restructure a business. The office must contract with a business nonprofit organization, bank, nondepository community development financial institution, or other entity to administer the program, and does not have direct lending authority to make loans under the program.

The office or an administrator is required to establish policies for the program, including:

• The process and deadlines for applying to the program;
• The eligibility criteria for businesses;
• Maximum assistance levels for loans and grants;
• Loan terms, program fees, and underwriting and risk management policies; and
• Reporting requirements for recipients.

The policies must be developed with the goal of generating enough return to replenish the Colorado startup loan program fund for further loan allocations.

In determining the eligibility of applicants and the size and terms of loans and grants, the office or an administrator must consider:

• The need of the business to restructure as a result of the COVID-19 pandemic or the ability of the business to fill gaps left by closures resulting from the COVID-19 pandemic;
• The financial losses or other impacts from the COVID-19 pandemic that may inhibit an entrepreneur from obtaining capital through traditional sources;
• Whether the applicant or the applicant's community faces other barriers to accessing capital from traditional sources; and
• The applicant's financial needs and the likelihood the applicant would need to be supported by a nontraditional lender.

If the administrator determines that an applicant would likely be eligible to receive a loan and may obtain more favorable terms from a traditional financial institution, the administrator must notify the applicant in a timely manner.

The office is required to work with the minority business office and other stakeholders to promote the program to businesses that are owned by women, minorities, and veterans and to businesses in rural and underserved communities. By September 1, 2021, the office is required to develop and administer a marketing initiative for the program in coordination with the minority business office and other stakeholders.

The act creates the Colorado startup loan program fund. The state treasurer is required to transfer $30 million from the general fund to the Colorado startup loan program fund on the effective date of the act. The money is continuously appropriated to the office for the program. In addition, $10 million is appropriated from the economic recovery and relief cash fund to the Colorado startup loan program fund. This money is continuously appropriated to the office to provide loans and grants through the program to respond to the negative impacts of the COVID-19 pandemic, subject to the requirements in state and federal law.

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

Fiscal Note

Section 1 of the act declares the general assembly's intent to spend a portion of the money received by the state under the federal "American Rescue Plan Act" for broadband infrastructure and telehealth capabilities.

Sections 2 and 3 extend the grant award distribution and reporting dates for the connecting Colorado students grant program.

Section 6 requires the office of information technology (office) to:

• Enter into an agreement with a third-party vendor to develop and implement a strategic plan to expand and improve digital access to government services through the use of broadband;
• Consult with various stakeholders in developing the strategic plan; and
• On or before July 1, 2022, report to the joint technology committee on the development and implementation of the strategic plan.

Section 7 establishes the Colorado broadband office (broadband office) in the office as a statutory type 1 entity. Section 7 also creates the digital inclusion grant program fund and directs the state treasurer to transfer $35 million from the economic recovery and relief cash fund to the fund for use by the broadband office to implement the digital inclusion grant program to award grant money to proposed broadband deployment projects throughout the state. Grant recipients other than Indian tribe or nation recipients are prohibited from using the grant money for last-mile broadband deployment. Section 7 also defines "community anchor institution" in relation to grants awarded through the digital inclusion grant program.
Section 4 requires the chief information officer in the office to appoint a director of the broadband office. Section 5 aligns the bill with House Bill 21-1236. Section 16 provides that section 5 only becomes effective if House Bill 21-1236 is enacted.

Section 8 defines "community anchor institution", "critically unserved", "income-qualified plan", and "school" in relation to grants awarded by the broadband deployment board (board) for proposed broadband deployment projects throughout the state.

Section 9 creates the broadband stimulus grant program (grant program) and requires the board to implement the grant program by awarding grant money from the broadband stimulus account created in the broadband administrative fund. The state treasurer is directed to transfer $35 million from the economic recovery and relief cash fund to the account for this grant program. The board is encouraged to award money under the grant program to applicants that previously applied for broadband deployment grants from the board but were denied due to insufficient funding. An applicant seeking money under the grant program must submit an income-qualified plan to the board.

Section 11 declares that high-speed broadband plays a critical role in enhancing local government and community development efforts and encourages coordinated approaches, including public-private partnerships, to broadband planning.

Section 12 defines terms related to the work of the division of local government in the department of local affairs (division) in deploying broadband, including "broadband facility" and "last-mile broadband infrastructure".

Section 13 requires the division to submit a copy of any application it receives for broadband deployment grant money to the broadband office for review. The broadband office must complete its review and provide the division with any recommendation regarding the application within 30 days after the division sends the copy to the broadband office.

Section 13 also creates the interconnectivity grant program and requires the division to implement the grant program by awarding grant money for proposed projects that seek to achieve regional broadband deployment and provide interconnection between communities. Projects awarded money under this grant program, except for projects awarded to Indian tribes or nations, cannot use the money awarded for last-mile broadband deployment. To finance the grant program, section 13 also creates the interconnectivity grant program fund into which the state treasurer is directed to transfer $5 million from the economic recovery and relief cash fund.

Section 14 appropriates:

• $35 million from the digital inclusion grant program fund to the office for use by the broadband office to implement the digital inclusion grant program;
• $35 million from the broadband stimulus account in the broadband administrative fund to the department of regulatory agencies for use by the board to implement the broadband stimulus grant program; and
• $5 million from the interconnectivity grant program fund to the department of local affairs for use by the division to implement the interconnectivity grant program.

Sections 10 and 15 align the bill with House Bill 21-1109, which moves the board from the department of regulatory agencies to the office. Section 16 provides that sections 10 and 15 only become effective if House Bill 21-1109 is enacted. Section 16 provides that sections 8, 9, and 14 only become effective if House Bill 21-1109 is not enacted. Section 16 also provides that the act only becomes effective if Senate Bill 21-291, which creates the economic recovery and relief cash fund, is enacted.

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

Fiscal Note

The act makes general fund transfers of $8,000,000 to the just transition cash fund (fund) and $7,000,000 to a newly created coal transition worker assistance program account (account) in the fund. The just transition office (office) is required to expend at least 70% of the money transferred to the fund by the close of state fiscal year (FY) 2021-22 and any remaining money in state FY 2022-23 to implement the final just transition plan for Colorado and to provide supplemental funding for existing state programs that the office identifies as the most effective vehicles for targeted investment in coal transition communities. In expending the money, the office is required to develop specific criteria for prioritizing the expenditures, emphasize investment in tier one transition communities, as defined by the act, and support specified types of programs in accordance with specified requirements and limitations.

Subject to specified requirements and limitations, the department of labor and employment (CDLE) is required to expend at least 70% of the money transferred to the account by the close of state FY 2021-22 and any remaining money in state FY 2022-23 first for assistance programs that directly assist coal transition workers and then, if money remains, to support family and other household members of coal transition workers and create and implement a pilot program to test innovative coal transition work support programs.

The act also:

• Amends and supplements existing definitions of "coal transition community" and "coal transition worker" to improve the implementation of just transition.
• For state FY 2020-21, appropriates $8,000,000 from the fund to CDLE for use by the office to implement the final just transition plan for Colorado and to provide supplemental funding for existing state programs that the office identifies as the most effective vehicles for targeted investment in coal transition communities as specified in the act. Any portion of the appropriation not spent by the close of state FY 2020-21 remains available for expenditure by the office for the same purposes until the close of state FY 2022-23.
• For state FY 2020-21, appropriates $7,000,000 from the account to CDLE for use by CDLE first for assistance programs that directly assist coal transition workers and then, if money remains, to support family and other household members of coal transition workers and create and implement a pilot program to test innovative coal transition work support programs as specified in the act. Any portion of the appropriation not spent by the close of state FY 2020-21 remains available for expenditure by CDLE for the same purposes until the close of state FY 2022-23.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Senate Bill 20-222, enacted in 2020, created a grant program financed through the federal "Coronavirus Aid, Relief, and Economic Security Act" to support small businesses suffering from the economic impacts of COVID-19 and related public health restrictions.

The act appropriates $15 million from the general fund to continue the grant program until the end of the 2021-22 state fiscal year, modifies the criteria pursuant to which grants are awarded, adds certain preferences for awarding grants, and establishes limits on the amount of a grant to an individual small business.

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

Fiscal Note

Section 2 of the act requires CollegeInvest to provide the department of revenue (department) with a secure electronic report of CollegeInvest account holders who are also Colorado taxpayers who made distributions between January 1, 2017, and January 1, 2021. The department is required to examine a risk-based sample of such taxpayers to substantiate that the distribution was made for authorized purposes. The department is also required to regularly example a risk-based sample of distributions on or after January 1, 2021, and determine if the taxpayer paid the correct amount of income tax. The executive director of the department is required to provide a report of the examinations as part of the department's presentation to its legislative committee of reference.

Section 3 of the act modifies how taxable income is determined for individuals for purposes of the state income tax. Specifically, it:

• Extends the limit on the federal deduction allowed under section 199A of the internal revenue code;
• Imposes a cap for taxpayers with adjusted gross incomes equal to or exceeding $400,000 on certain itemized deductions claimed under the internal revenue code;
• Requires individual taxpayers to add amounts of federal taxable income that are equal to the enhanced federal deductions for food and beverage in a restaurant for the 2022 income year (this is also required for corporate taxpayers in section 7 of the act);
• Repeals, for social security income earned by individuals who are 65 years of age or older that is included in federal taxable income only, the cap on the deduction for pension and annuity income received; and
• Adds an annually adjusted cap, per taxpayer per beneficiary, on the income tax deduction for contributions made to 529 plans, and requires CollegeInvest to provide the department with a secure electronic report containing specified information for the 529 plans account owners and third-party contributors necessary for the administration of the income tax deduction.

Section 4 of the act increases the earned income tax credit to 20% for income tax years commencing on or after January 1, 2022, but before January 1, 2023, and income tax years commencing on or after January 1, 2026. Section 3 also increases the earned income tax credit to 25% for income tax years commencing on or after January 1, 2023, but before January 1, 2026. Finally, section 4 of the act applies the lowered minimum age for individuals without a qualifying child in the federal "American Rescue Plan Act of 2021" to the state credit for income tax years commencing on or after January 1, 2022.

Section 5 of the act funds the child tax credit for income tax years commencing on or after January 1, 2022, and allows a child tax credit in the state regardless of the federal requirement that a qualifying child must have a social security number for the federal child tax credit. Section 5 of the act also specifies that if the changes to the federal child tax credit in the "American Rescue Plan Act of 2021" are no longer in effect, the percentages of the state child tax credit are increased.

Section 6 of the act modifies the computation of the corporate income tax receipts factor to make it more congruent with combined reporting and also prevents corporations from using tax shelters in foreign jurisdictions for the purpose of tax avoidance.

Section 7 of the act functions to prevent corporations from using tax shelters in foreign jurisdictions for the purpose of tax avoidance and additionally modifies how taxable income is determined for C corporations for purposes of the state income tax. Specifically, it requires corporate taxpayers to add amounts of federal taxable income that are equal to the enhanced federal deductions for food and beverage in a restaurant for the 2022 income year.

Section 8 of the act limits the state subtraction for certain capital gains incurred by allowing the subtraction to a taxpayer who is required to file a Schedule F, profit or loss from farming, as an attachment to the taxpayer's federal income tax return for the tax year in which the net capital gains arise for the sale of real property, not tangible personal property, that is classified as agricultural land for property tax purposes.

Section 9 of the act creates a temporary income tax credit for a business for a percentage of the conversion costs to convert the business to a worker-owned coop, an employee stock ownership plan, or an employee ownership trust.

Sections 10 through 13 of the act address the avoidance of income tax by certain captive insurance companies.

Section 14 of the act adds an appropriation to:

• The office of the governor for use by the office of economic development for the administration of the income tax credit for a business converting to a worker-owned coop, an employee stock ownership plan, or an employee ownership trust; and
• The department of revenue for administration and support.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

To be deemed to maintain a home office or regional home office and pay the insurance premium tax at a rate of 1%, the act requires a company to have a minimum percentage of its total domestic workforce in the state. This percentage is 2% for 2022, 2.25% for 2023, and 2.5% for 2024 and thereafter. The act also narrows the tax exemption for annuities considerations. For the purpose of auditing a company's tax statement, the commissioner of insurance may appoint an independent examiner to conduct an examination on behalf of the commissioner.

For purposes of imposing the property tax, the act specifies that the actual value of real property reflects the value of the fee simple estate and the actual value of personal property is determined based on the property's value in use, which will be defined by the property tax administrator. The act also increases the per schedule exemption for business personal property from $7,900 to $50,000, adjusted for inflation, and the state is required to reimburse local governments for lost property tax revenue caused by the increase. Assessors are required to provide an estimate of the exempt business personal property along with the certifications to local governments.

The state sales and use tax is imposed on the sale and use of tangible personal property. The act codifies the department of revenue rule that the definition of "tangible personal property" includes "digital goods" and specifies that the state sales tax applies to amounts charged for mainframe computer access, photocopying, and packing and crating. Beginning January 1, 2022, a retailer whose total taxable sales were greater than $1 million for a filing period is not permitted to retain any portion of the sales and use tax collected as compensation for the retailer's tax-collection expenses.

The act limits the allowable deductions, which are used to determine the taxable amount of oil and gas subject to the severance tax, to direct costs actually paid or accrued by the taxpayer for those purposes. Beginning with the 2022 taxable year, the act phases out the quarterly exemption and the tax credits for the severance tax on coal. The additional revenue that results from changes to the coal severance tax is credited to the just transition cash fund.

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

Fiscal Note

The federal government enacted the "American Rescue Plan Act of 2021" (federal act) to provide support to state, local, and tribal governments in responding to the impact of COVID-19 and to assist them in their efforts to contain the effects of COVID-19 on their communities, residents, and businesses. Under the federal act, the state of Colorado receives over $500 million to address the housing needs of populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency.

The act creates the affordable housing and home ownership cash fund (fund) in the state treasury. To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, the act authorizes the general assembly to appropriate or transfer money from the fund to a department or cash fund for programs or services that benefit populations, households, or geographic areas disproportionately impacted by the COVID-19 public health emergency, focusing on programs or services that address housing insecurity, lack of affordable housing, or homelessness.

Three days after the effective date of the act, the state treasurer is required to transfer $550 million from the "American Rescue Plan Act of 2021" cash fund to the fund.

The act requires the division of housing (division) within the department of local affairs (department) to use the appropriation made by the act for programs or services of the type and kind financed through the housing investment trust fund or the housing development grant fund to support the programs or services that benefit populations, households, or geographic areas disproportionately affected by the COVID-19 public health emergency to obtain affordable housing, focusing on programs or services that address housing insecurity, lack of affordable and workforce housing, or homelessness, including the programs or services that are specified as authorized uses under the federal act.

Three days after the effective date of the act, the state treasurer is required to transfer $1,500,000 from the fund to the eviction legal defense fund. The eviction legal defense fund is used to provide legal representation to indigent tenants to resolve civil legal matters resulting from an eviction or impending eviction caused by the COVID-19 public health emergency. Money transferred to the eviction legal defense fund is to be used to make grant awards to qualifying organizations that provide legal services to indigent clients.

The act requires the executive committee of the legislative council, by resolution, to create a task force to meet during the 2021 interim and issue a report with recommendations to the general assembly and the governor on policies to create transformative change in the area of housing using money the state receives from the federal act. The task force may include nonlegislative members and have working groups created to assist them.

For the 2021-22 state fiscal year, the act appropriates $98,500,000 to the department for use by the division. This appropriation is from the fund and of money the state received from the federal coronavirus state fiscal recovery fund. To implement the act, the division may use the appropriation for the purposes specified in the statutory provisions creating the fund.

For the 2021-22 state fiscal year, the act appropriates $200,000 to the legislative department for its implementation. This appropriation is from the fund and originates from the general fund.

For the 2021-22 state fiscal year, the act appropriates $1,500,000 to the judicial department for use by the eviction legal defense fund. This appropriation is from the eviction legal defense fund and of money the state received from the federal coronavirus state fiscal recovery fund. To implant the act, the judicial department may use the appropriation for the purpose of providing legal representation to indigent tenants.

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

Fiscal Note

The 2020 general appropriation act is amended to balance and make adjustments to the total amount appropriated to the offices of the governor, lieutenant governor, and state planning and budgeting. The general fund and reappropriated funds portions of the appropriation are increased and the cash funds portion is decreased.

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

The act requires that the Colorado broadband office (office), on or before January 1, 2022, contract with a nonprofit organization to develop a program to reimburse certain income-eligible households and households in critically unserved areas of the state for their costs to access broadband service. An eligible household may receive reimbursement for up to one-half of its costs for broadband service, not to exceed $600 per year.

The office and the nonprofit organization with which it contracts may use up to $5 million of the federal "American Rescue Plan Act of 2021" money transferred to the digital inclusion grant program fund pursuant to House Bill 21-1289, concerning broadband deployment, for the reimbursement program. All of the money for the reimbursement program must be obligated by December 31, 2024, and the act repeals on September 1, 2026. If the office does not find a nonprofit organization with which to contract, the reimbursement program will not be implemented and the office shall use the money allocated for implementation of the reimbursement program to award additional grants for telehealth services.

On or before February 1, 2022, and on or before each February 1 thereafter, the office is required to submit a written report to the governor and the legislative joint budget and joint technology committees about the office's implementation of the reimbursement program.

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

Fiscal Note

A board of county commissioners is authorized to require the registration of businesses in the unincorporated portions of the county.

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

Fiscal Note

Section 1 of the act authorizes the public utilities commission (PUC) to approve utilities' applications to build new transmission facilities if the PUC, consistent with its authority, finds that the new facilities would assist the utilities in meeting the state's clean energy goals established in 2019. In constructing or expanding transmission facilities, a utility must use its own employees, engage a contractor whose employees have access to federally approved apprenticeship programs, or both. Section 1 also requires the PUC to consider the ability of the proposed facilities to support future expansion as needed to enable the utility to participate in an organized wholesale market (OWM), which is defined in section 2 as an organization established for the purpose of coordinating and managing the transmission of electricity among multiple public utilities on a multistate or regional basis. An application for construction or expansion of transmission facilities is deemed approved if the PUC does not deny it within 240 days after the application is complete and public notice has been given.

Section 6 imposes a 180-day deadline for approval by a local government if local government approval is required.

Sections 4 and 7 create the Colorado electric transmission authority (CETA) as an independent special purpose authority, and section 4 specifies the composition and manner of appointment of the board of directors that governs the authority. CETA is authorized to select a qualified transmission operator to finance, plan, acquire, maintain, and operate eligible electric transmission and interconnected storage facilities (eligible facilities).

Under sections 4, 8, and 9, CETA is granted various powers necessary to accomplish its purposes, including the power to:

• Issue revenue bonds;
• Identify and establish intrastate electric transmission corridors;
• Coordinate with other entities to establish interstate electric transmission corridors;
• Exercise the power of eminent domain to acquire eligible facilities; and
• Collect payments of reasonable rates, fees, interest, or other charges from persons using eligible facilities.

CETA is generally subject to state open-records and open-meetings requirements, but proprietary confidential information that it holds, including power purchase agreements, costs of production, costs of transmission, transmission service agreements, credit reviews, detailed power models, and financing statements, is not subject to inspection. Section 10 authorizes payment of CETA's administrative expenses, not to exceed $500,000 annually, from an existing cash fund administered by the PUC.

Section 2 sets out deadlines and conditions under which an electric utility that owns and controls transmission facilities (transmission utility) is required to join an OWM. The commission may delay or waive this requirement for a utility that is unable, despite its best efforts, to find a viable and available OWM to join or if the commission determines, based on its evaluation of specified factors, that requiring the transmission utility to join an OWM would not be in the public interest. A transmission utility that joins an OWM may recover costs of participating in the OWN from its ratepayers.

Under current law, a cooperative electric association with an electric easement on real property is authorized to install or to allow a commercial broadband supplier to install broadband facilities on the real property, subject to notice and procedural requirements. Section 3 expands the authorization to apply to any non-investor-owned, non-municipally-owned, vertically integrated supplier of electric energy to its customers or members.

Section 9 specifies that when a right-of-way is taken for an interstate electric transmission line, the court shall evaluate public purpose in light of the transmission system as a whole, including public use and benefits occurring either within Colorado or at a regional level.

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

Fiscal Note

The act allows a person to sell, without licensure, regulation, or inspection by a public health agency, rabbit meat if the animal was raised and processed by the seller and to sell shares in the meat of an animal, which includes cattle, calves, elk, sheep, hogs, bison, goats, and rabbits, but not fish, for future delivery if:

• The person displays at the point of sale a disclaimer or gives the purchaser a document with a disclaimer that:
• The seller is not licensed and the animals or meat are not subject to state regulation or inspection by a public health agency; and
• The animals or meat are not intended for resale; and
• The animals or meat are delivered directly from the seller to an informed end consumer and are sold only in Colorado.

The purchaser is prohibited from reselling the animal, animal share, or meat. A seller is not liable in a civil action for damages caused by inadequately cooking or improperly preparing the animal or meat for consumption.

The act also limits the number of brand inspections for an animal share sale to a single inspection before slaughter. The state board of stock inspection commissioners will promulgate rules establishing procedures for a single inspection.

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

Fiscal Note

An entity is not liable for any damages that result from exposure, loss, damage, injury, or death arising out of COVID-19 unless:

• A claimant proves by clear and convincing evidence that the exposure, loss, damage, injury, or death was caused by the entity's failure to comply with public health guidelines; or
• The exposure, loss, damage, injury, or death was caused by gross negligence or a willful and wanton act or omission of the entity.

The bill is repealed 2 years after the date the governor terminates the state of disaster emergency declared on March 11, 2020.

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

Fiscal Note

The act amends the high school innovative learning pilot program (ILOP) that authorizes school districts, district charter schools, and institute charter schools (local education providers) to count as full-time students high school students participating in innovative learning opportunities regardless of whether they meet the number of teacher-pupil instruction and contact hours for full-time enrollment. The act allows a school of a school district to participate in an ILOP with a district or independently and requires all applicants to demonstrate how their innovative learning plan disproportionately benefits underserved students.

In selecting applicants to participate in the pilot program, the act requires the department of education (department) and the state board of education (state board) to consider whether the innovative learning plan includes opportunities for students to participate in registered or unregistered apprenticeships, internships, and technical training or skills programs through an industry provider, teacher training opportunities, concurrent enrollment, and industry certificates.

Further, subject to available appropriations, the state board is encouraged to select up to 20 applicants and is not limited to choosing applicants that had part-time students in the prior year and that enroll fewer than 5,000 students.

The act creates the fourth-year innovation pilot program (pilot program) in the department of higher education to disburse state funding to postsecondary education and training programs on behalf of low-income students who graduate early from a high school participating in the pilot program prior to enrolling in the fourth year of high school or prior to enrolling in the second semester of their fourth year in high school.

The state funding awarded to a student graduating prior to enrolling in the fourth year of high school is equal to the greater of 75% of the average state share amount of the statewide average per-pupil funding for public elementary and secondary schools for the 2021-22 budget year, as calculated during the 2021 legislative session, or $3,500. The state funding for a student graduating prior to the second semester of their fourth year in high school is equal to the greater of 45% of the average state share amount of the statewide average per-pupil funding for public elementary and secondary schools for the 2021-22 budget year, as calculated during the 2021 legislative session, or $2,000. The state funding is disbursed to the postsecondary program on behalf of the eligible graduate and may be used for the eligible graduate's cost of attendance for the postsecondary program, as determined by the department of higher education. The local education provider from which the student graduated early prior to the fourth year of high school receives a portion of the state savings for school finance obligations due to the early graduation. An eligible graduate must enroll in a postsecondary program within 18 months after graduating or the state funding is forfeited.

The act requires the department of higher education to report annually to the department, the governor's office of state planning and budgeting, the joint budget committee, and the education committees of the general assembly concerning certain information specified in the act relating to the pilot program. The act creates the fourth-year innovation pilot program fund for the pilot program. The pilot program repeals, effective December 31, 2027.

For the 2021-22 state fiscal year, the act appropriates:

• $220,115 and 0.3 FTE to the department of education for the high school innovative learning pilot program; and
• $44,222 and 0.6 FTE to the department of higher education to implement the for the fourth-year innovation pilot program .
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

$30 million is transferred from the general fund to the state highway fund to provide additional funding for the department of transportation's revitalizing main streets and safer main streets programs.

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

Fiscal Note

The act creates a program in the office of economic development and international trade (OEDIT) to support entrepreneurs in the marijuana industry, which will primarily assist social equity licensees, as that term is used in the "Colorado Marijuana Code". The program consists of:

• Loans to social equity licensees for seed capital and ongoing business expenses;
• Grants to social equity licensees to support innovation and job creation and organizations that support marijuana businesses to be used to support innovation and job creation of social equity licensees; and
• Technical assistance for marijuana business owners, prioritizing social equity licensees who have been awarded a loan or grant through the program.

OEDIT is authorized to directly administer the program itself or through one or more partner entities. In consultation with other relevant state agencies, industry experts, and other stakeholders, OEDIT is required to establish policies setting forth the parameters and eligibility for the program. OEDIT is required to consult with the Colorado economic development commission regarding the administration of the program. OEDIT is also required to submit a report by July 1 of 2022 and 2023 to the governor and legislative committees detailing program expenditures.

The program is initially funded with a $4 million transfer from the marijuana tax cash fund to the newly created marijuana entrepreneur fund, from which the money is continuously appropriated to OEDIT for the program. OEDIT may use some of this money for the program's administrative expenses. Beginning with the fiscal year 2022-23, the general assembly may appropriate additional money from the marijuana tax cash fund to the marijuana entrepreneur fund.

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

Fiscal Note

The bill requires that proposed public school building sites be set back from existing oil and gas facilities a distance that is no less than:

• The setback distance required by the local government having land use jurisdiction over the site for locating new oil and gas facilities from public school properties; or
• If there are no local government setback requirements, the setback distance required by the oil and gas conservation commission for siting new oil and gas facilities from existing public school properties.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The career development success program provides financial incentives for participating school districts and participating charter schools to encourage pupils enrolled in grades 9 through 12 to enroll in and successfully complete qualified industry-credential programs; qualified internship, residency, or construction industry pre-apprenticeship or apprenticeship programs; and qualified advanced placement courses (programs and courses). The act amends the list of qualified programs by removing residency programs and expanding pre-apprenticeship and apprenticeship programs to include any industry program, not just construction industry programs.

The act expands the definition of a qualified industry-credential program to include a career and technical education program that, upon completion, results in an industry-recognized credential with labor market value aligned with a high-skill, high-wage, in-demand job.

Current law requires the work force development council (council) to identify the qualified programs and courses by identifying the jobs included in the Colorado talent report with the greatest regional and state demand, including jobs in in-demand industries. The act requires the council to consult with relevant industries to identify the programs and courses by identifying high-skill, high-wage jobs in in-demand industries that have labor market value. Any programs and courses the council determines do not demonstrate labor market value may be removed from the council's website.

Beginning in the 2022-23 school year, and each school year thereafter, the department of education (department), in coordination with the department of labor and employment, the department of higher education, the Colorado community college system, and employers from in-demand industries, shall identify the top 10 industry-recognized credentials that may be awarded to high school students. For each identified credential, the department shall specify how the courses taken to earn the credential align with the state academic standards.

The act requires each participating school district, each nonparticipating school district on behalf of its participating charter schools, and the state charter school institute on behalf of each participating institute charter school to report to the department the total number of pupils who successfully complete a program or course, disaggregated by each student's race, ethnicity, and gender, and whether each student is a student with a disability, an English language learner, or eligible for free or reduced-price lunch.

Current law requires each participating school district and each participating charter school to regularly communicate to all high school students the availability of programs and courses and the benefits a student receives as a result of successfully completing one of the programs or courses. The act expands this requirement to all middle school students and the students' families.

The act requires each participating school district and each participating charter school to communicate how industry-recognized credentials and guaranteed-transfer pathways courses that are included in such credentials are aligned with postsecondary degrees and high-skill, high-wage, in-demand jobs, and the top 10 industry-recognized credentials identified by the department. The communications must be provided in a language that the students and the students' families understand.

The act updates the department's annual reporting requirements to the general assembly to include:

• Whether the students participating in the programs and courses enlisted in the military or entered the workforce after graduation;
• How money received under the career development success program was used to promote the availability of programs and courses; and
• How the participating school district or participating charter school determined which programs and courses to offer, including how the programs and courses are aligned with local workforce needs.

No later than July 1, 2022, the department, in collaboration with the Colorado community college system, shall publish and disseminate materials through existing and relevant platforms used to engage with districts that include, at a minimum, the top 10 industry-recognized credentials and a sample communications plan for how a participating school district or participating charter school may communicate the value of credentials and experiences to students and families.

The act requires participating school districts and participating charter schools to utilize program funding to promote access to programs and courses.

The act requires the return on investment report to include information specifically identifying the number of high school students enrolled and the number of degrees and certificates awarded through the career development success program.

The act appropriates $20,000 from the general fund to the department of education to implement the act.

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

Fiscal Note

The act allows counties, municipalities, and special districts to exempt up to 100% of business personal property from the levy and collection of property taxation for the 2021 property tax year.

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

Fiscal Note

The act creates the financial empowerment office (office) and the director of the office (director) in the department of law to grow the financial resilience and well-being of Coloradans through specified community-derived goals and strategies. The director is appointed by the attorney general and may hire staff as necessary to perform the duties and functions of the office. The office also consists of a manager who is appointed by the director.

The office is authorized to partner with governmental bodies, community organizations, financial institutions, local service providers, philanthropic organizations, and other organizations as necessary to achieve the purposes of the office. The office is also authorized to develop or promote new or existing:

• Methods to increase access to safe and affordable financial products;
• Tools and resources that advance, increase, and improve Colorado residents' financial management;
• Community-informed strategies that dismantle systemic barriers to building ownership and wealth for all, especially low-income communities and communities of color; and
• Tools that promote financial stability such as those that assist with service navigation, eviction avoidance, or connections to income supports.

The financial empowerment office is required to:

• Support the organization of community efforts to define and lead financial resilience strategies;
• Align, support, and build ties to build financial education and well-being in communities across the state;
• Establish a council to assist the director;
• Work with stakeholders to increase access to safe and affordable credit-building loans and financial products and to identify products and practices that may undermine financial stability;
• Develop technical assistance to launch or expand local financial coaching and counseling efforts;
• Raise money to support coaching, safe and affordable banking, and potential loan funds; and
• Track community feedback on consumer financial abuses.

The department of law is required to report on affordable banking access in Colorado and other specified information as part of its presentation under the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".

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

Fiscal Note

The bill requires the public utilities commission (PUC) to adopt by rule, no later than July 31, 2022, greenhouse gas (GHG) emission reduction programs (reduction programs) for large natural gas utilities (those that have at least 250,000 customer accounts in Colorado) and small natural gas utilities (those that have fewer than 250,000 customer accounts in Colorado) (collectively, utilities). Municipally owned utilities may, but need not, participate in a reduction program. The rules must include reporting requirements and a process for utilities to fully recover qualified investments, which are prudently incurred costs associated with a reduction program.

The bill establishes the following GHG emission reduction targets, using a utility's 2019 GHG emissions as a baseline:

• By January 1, 2025, at least 5%;
• By January 1, 2030, at least 10%; and
• On and after January 1, 2035, at least 15%.

GHG emission reductions from the delivery of natural gas to other utilities and transportation sector retail customers are excluded from the reduction programs. The following sources of GHG emission reductions are included in the reduction programs:

• Methane leaked from the transportation and delivery of natural gas from natural gas distribution and service pipelines; and
• Carbon dioxide emitted by the utility's retail customers (other than those in the transportation sector) as a result of the combustion of natural gas delivered by the utility.

GHG emission reductions can be achieved by:

• Using renewable natural gas, which must account for at least 35% of the emission reductions;
• Emission offsets;
• Methane emission reductions from a variety of mechanisms; and
• Other programs developed by the utility and approved by the PUC that demonstrate GHG emission reductions.

If a large utility's total incremental annual cost to meet the GHG emission reduction targets exceeds 2% of the large utility's total revenue requirement for a particular year, the large utility shall not make additional qualified investments under the reduction program for that year without approval from the PUC.

Small utilities may opt in to the reduction program as established by the PUC by rule. The rule must include tradeable credits and a rate cap limiting the small utility's costs of making qualified investments.

For included emission reductions and until 2025, a utility participating in a reduction program is not subject to any additional GHG emission reduction requirements or required to incur any additional costs under Colorado's generally applicable GHG emission reduction requirements if the utility:

• Files with the PUC a plan that contains approvable and cost-effective programs that make progress toward the GHG emission reduction targets and are projected to meet either the applicable emission reduction targets or the applicable retail rate impact;
• Reports GHG emission reductions consistent with the accounting methodology established by the division of administration in the department of public health and environment; and
• Is either projected to meet the GHG emission reduction targets in an applicable year or the PUC finds that the projected costs to achieve the emission reductions have met the applicable retail rate impact.

The bill gives the oil and gas conservation commission the authority to authorize class VI injection permits, which authorize the deep sequestration of carbon dioxide.

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

Fiscal Note

For purposes of addressing discriminatory or unfair employment practices pursuant to Colorado's anti-discrimination laws, the bill enacts the "Protecting Opportunities and Workers' Rights (POWR) Act", which:

• Continues the Colorado civil rights division (division) and the Colorado civil rights commission (commission) indefinitely;
• Directs the division to include "harassment" as a basis or description of discrimination on any charge form or charge intake mechanism;
• Allows an employment discrimination claim to be brought in any court of competent jurisdiction in the county or district where the alleged discriminatory or unfair employment practice occurred; and allows an individual to file a civil action, without otherwise exhausting administrative proceedings and remedies, as long as the individual either files a charge with the Colorado civil rights commission (commission) or serves a written demand for the relief on the individual's employer and allows the employer 14 days to respond;
• Directs the division to develop and provide to employers, free of charge, training and education programs regarding the prevention of harassment and discrimination in the workplace, bystander intervention, and workplace civility;
• Expands the definition of "employee" to include individuals in domestic service individuals who perform a service for a price, including independent contractors, subcontractors, and their employees; and individuals who offer services or labor without pay and specifies that an individual performing services for pay for another is deemed an employee unless, by a preponderance of the evidence, it is proven that the individual satisfies the conditions under the state wage law for a determination that the individual is not an employee;
• Adds a requirement that a written, electronic, or oral agreement or contract under which a person performs services for another must require that the person for whom the services are performed shall not engage in any discriminatory or unfair employment practice with respect to the individual performing the services ;
• Adds new definitions of "caregiver", "care recipient", "child", "minor child", and "harass" or "harassment" "hostile work environment", and "independent contractor" and repeals the current definition of "harass" that requires creation of a hostile work environment;
• Adds protections from discriminatory or unfair employment practices for individuals based on their "marital status" or "caregiver status";
• Specifies that in harassment claims, the alleged conduct need not be severe or pervasive to constitute a discriminatory or unfair employment practice, and an employer has an affirmative defense to the claim if the employer demonstrates that, when the employer knew or should have known of the harassment, the employer took prompt, reasonable, and, if warranted, remedial action to end the harassment, deter future harassers, and protect employees;
• Specifies that it is a discriminatory or unfair employment practice for an employer to fail to initiate an investigation of a complaint or fail to take prompt , reasonable, and, if warranted, remedial action; if appropriate;
• Specifies the requirements for an employer to avoid liability when an employee proves that a supervisor unlawfully harassed that employee;
• Prohibits certain preemployment medical examinations, imposes limitations on inquiries and examinations about an employee's disability during employment, and specifies that violations of these prohibitions and limitations constitute discriminatory or unfair employment practices;
• Expands the time limit to file a charge with the commission from 6 months to 300 days after the alleged discriminatory or unfair employment practice occurred;
• Repeals the limits on remedies in cases involving age discrimination;
• Limits the ability of an employer to require confidentiality of claims once a charge is filed with the commission Specifies requirements that must be satisfied for a nondisclosure provision in an agreement between an employer and employee to be enforceable; voids a nondisclosure provision if a party makes a material misrepresentation; and requires the division to provide to a charging party other charges filed with the division against the same respondent; and
• Requires employers with 20 or more employees to provide and maintain records of training and education to all employees regarding harassment and discrimination prevention, bystander intervention, and workplace civility, encourages other employers to provide the training and education, and authorizes the division director to impose penalties on employers that fail to comply with the training and recordkeeping requirements.

The bill appropriates the following amounts to the following departments to implement the bill:

• $539,292 and 6.0 FTE to the department of corrections;
• $71,905 and 0.8 FTE to the department of education;
• $134,823 and 1.5 FTE to the office of the governor;
• $22,471 and 0.5 FTE to the department of health care policy and financing;
• $449,410 and 5.0 FTE to the department of human services;
• $449,410 and 5.0 FTE to the judicial department;
• $107,858 and 1.2 FTE to the department of labor and employment;
• $401,180 and 2.5 FTE to the department of law;
• $134,823 and 1.5 FTE to the department of natural resources;
• $630,465 and 1.5 FTE to the department of personnel;
• $125,835 and 1.4 FTE to the department of public health and environment;
• $161,788 and 1.8 FTE to the department of public safety;
• $652,879 and 9.7 FTE to the department of regulatory agencies;
• $134,823 and 1.5 FTE to the department of revenue; and
• $269,646 and 3.0 FTE to the department of transportation.

(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

Current law requires the air quality control commission (AQCC) to adopt rules that will result in the statewide reduction of greenhouse gas (GHG) emissions of 26% by 2025, 50% by 2030, and 90% by 2050, as compared to 2005 emissions. Section 2 of the bill supplements these requirements by:

• Directing the AQCC to:
• Consider the social cost of GHG emissions;
• Require GHG reductions on a linear or more stringent path; and
• Finalize its implementing rules by March 1, 2022, including specific net emission weight limits for various emission sectors, subject to modification by the AQCC, including through the use of a multi-sector program;
• Directing each wholesale generation and transmission electric cooperative to file with the public utilities commission a responsible energy plan that will achieve at least an 80% GHG reduction by 2030 as compared to 2005 levels and specifying that if a plan is not filed, the cooperative must achieve at least a 90% GHG reduction by 2030 as compared to 2005 levels; and
• Directing each retail, wholesale, and municipal electric utility and cooperative electric association to reduce its GHG emissions by at least 95% between 2035 and 2040 and by 100% by 2040.

Section 3 adds GHG to the definition of "regulated pollutant", prohibits the AQCC from excluding GHG emissions from the requirement to pay annual emission fees that are based on emissions of regulated pollutants, gives the AQCC rule-making authority to set the GHG annual emission fee, and authorizes the use of these fees for outreach to and engagement of disproportionately impacted communities. Section 4 requires the AQCC's GHG reporting rules to establish an assumed emission rate representing the average regional fossil fuel generation emission rate for electricity generated by a renewable energy resource for which the associated renewable energy credit is not retired in the year generated.Section 5 creates an environmental justice ombudsperson position and an environmental justice advisory board in the department of public health and environment. The ombudsperson and the advisory board will work collaboratively to promote environmental justice in Colorado. Sections 2 and 5 specify processes for soliciting and facilitating input from disproportionately impacted communities regarding proposed AQCC rule changes and departmental decision-making.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act appropriates $2.5 million from the general fund to the department of agriculture for the Colorado proud program.

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

Fiscal Note

The act appropriates $5 million to the department of local affairs (department) to use for the rural economic development initiative (REDI) grant program, and permits the department to use up to 3.75% of the appropriation for any direct and indirect administrative expenses related to the grants awarded from the appropriation.

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 REDI grant program for the purposes of the "Rural Economic Advancement of Colorado Towns (REACT) Act". The act repeals the sunset of the REACT Act.
(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act creates the rural jump-start zone grant program (grant program) and authorizes the Colorado economic development commission (commission) to issue grants, subject to available appropriations, as follows:

• Up to $20,000 to new businesses to establish operations;
• Up to $40,000 to new businesses to establish operations in a tier one transition community;
• Up to $2,500 to new businesses for each new hire; and
• Up to $5,000 to new businesses for each new hire who is hired for operations established in a tier one transition community.

The act also authorizes the commission to issue grants, at its discretion and subject to available appropriations, not to exceed $30,000 per applicant, to a state institution of higher education or an economic development organization that collaborates with a new business in order to support the new business in meeting the requirements for the business under the grant program.

The act creates the rural jump-start zone grant fund account in the Colorado economic development fund, which consists of any money appropriated to the fund by the general assembly, and may be used:

• By the commission to issue grants; and
• For the direct and indirect costs that the Colorado office of economic development incurs, not to exceed a specified amount, to administer the grant program.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act appropriates $15,000,000 from the workers, employers, and workforce centers cash fund and the federal coronavirus recovery fund to the department of higher education for the Colorado opportunity scholarship initiative's displaced workers grant.

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

Fiscal Note

The act creates the front range passenger rail district (district) for the purpose of planning, designing, developing, financing, constructing, operating, and maintaining an interconnected passenger rail system (system) along the front range. The district is specifically required to work collaboratively with the regional transportation district (RTD) to ensure interconnectivity with any passenger rail system operated by or for the RTD and with Amtrak on interconnectivity with Amtrak's Southwest Chief, California Zephyr, and Winter Park Express trains, including but not limited to rerouting of the Amtrak Southwest Chief passenger train. The district must also coordinate with the department of transportation (CDOT) to ensure that any system is well-integrated into the state's multimodal transportation system and does not impair the efficiency or safety of or otherwise adversely affect existing transportation infrastructure or operations. If deemed appropriate by the board of directors of the district and by the board of directors of RTD, the district may share with RTD capital costs associated with shared use of rail line infrastructure in the northwest rail line corridor for passenger train service.

The area that comprises the district extends from Wyoming to New Mexico and includes:

• The entirety of the city and county of Broomfield and the city and county of Denver;
• All areas within Adams, Arapahoe, Boulder, Douglas, El Paso, Huerfano, Jefferson, Larimer, Las Animas, Pueblo, and Weld counties that are located within the territory of a metropolitan planning organization (MPO);
• All areas within Huerfano, Las Animas, and Pueblo counties that are not located within the territory of a MPO and are located within a county precinct that is located wholly or partly within 5 miles of the public right-of-way of interstate highway 25; and
• All areas within Larimer and Weld counties that are not located within the territory of a MPO and are located within a county precinct that is north of the city of Fort Collins and is located wholly or partly within 5 miles of the public right-of-way of interstate highway 25.

The district is governed by a board of directors composed of:

• 10 appointees of transportation planning organizations that have jurisdiction within the territory of the district as follows:
• 4 appointees appointed by each metropolitan planning organization (MPO) that represents more than 1,500,000 residents in the district; except that any city and county or municipality that has 55% or more of the MPO's territory shall appoint one of the 4 directors that would otherwise be appointed by the MPO;
• 2 appointees from each metropolitan planning organization (MPO) that represents more than 500,000 but fewer than 1,000,000 residents in the district; except that any city and county or municipality that has 55% or more of the MPO's territory shall appoint one of the 2 directors that would otherwise be appointed by the MPO;
• One appointee appointed by the Pueblo area council of governments; and
• One appointee appointed by the south central council of governments.
• 6 appointees appointed by the governor subject to confirmation by the senate who must collectively have professional experience or expertise in specified areas;
• One appointee appointed by the executive director of CDOT;
• One nonvoting representative of RTD;
• One nonvoting representative appointed by the I-70 mountain corridor coalition, or any successor entity to the coalition; and
• If the respective governors and chief executive officers choose to make appointments, nonvoting representatives of the BNSF Railway, the Union Pacific Railroad, Amtrak, and communities in Wyoming and New Mexico.

In addition to the professional experience or expertise requirements, at least one of the directors appointed by the governor must be a resident of a county, city and county, or municipality through which light or commuter rail was planned as part of RTD's voter-approved Fastracks program. Each director appointed by a transportation planning organization must be or have been a member of the board of directors of the appointing authority and must represent or have represented a member jurisdiction of the appointing authority that is wholly or partly included within the district. The board must be fully appointed by April 1, 2022, with an earlier appointment deadline for some appointees. The board must convene for its initial meeting not later than May 15, 2022. The existing southwest chief and front range passenger rail commission is terminated, effective July 1, 2022, and any remaining commission funds are transferred to the district no later than July 1, 2022.


The district is authorized to exercise the powers necessary to plan, design, develop, finance, construct, operate, and maintain the system including but not limited to:

• The power, subject to the approval of the voters of the district and other specified limitations, to levy a sales and use tax, to exercise specified taxing authority common to special districts within the district, and to issue bonds. Before submitting a ballot question to establish any district tax, the district must publish a proposed services development plan, an operating plan, and a detailed financing plan, certify that it has made every reasonable effort to secure federal funding for the system, and approve the submission of the question by an affirmative vote of two-thirds of all voting directors of the board.
• The power, subject to the approval of the owners of property within a 2-mile radius of any existing or proposed passenger rail station, to create a station area improvement district with the authority to levy additional sales and use tax, special assessments on real property, or both, to cover the costs of construction, operation, and maintenance of the station;
• The power to enter into public-private partnerships; and
• The power to employ its own personnel or contract with public or private entities, or both, for the operation and maintenance of the system.

The district must publish and present a comprehensive annual report to the legislative committees with jurisdiction over transportation and each transportation planning organization that appoints directors to the district board. If the district levies a tax, the state auditor must conduct a biennial district-funded audit of the district.

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

Fiscal Note

The act creates the small business accelerated growth program (program) administered by the Colorado office of economic development (office). The program provides business development support to small businesses with 19 or fewer employees. The office is required to develop a marketing initiative for the program in coordination with the minority business office, the small business development center, and local and regional economic development entities to promote the program. The businesses selected to participate in the program have one year to use the business development support offered by the program, and $1,350,000 in grants from the Colorado startup loan fund are for participants demonstrating need and success under the program.

The act makes an appropriation.

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

Fiscal Note

The act establishes the community revitalization grant program (grant program) in the division of creative industries (division) in the office of economic development (office). The grant program is established to provide money awards to finance various projects across the state that are intended to create or revitalize mixed-use commercial centers. The grant program is intended to support creative projects in these commercial centers that would combine revitalized or newly constructed commercial spaces with public or community spaces including but not limited to certain projects specified in the act. In allocating grant money under the grant program, preference will be given to certain projects based on prioritization factors enumerated in the act. All grants awarded under this section must be encumbered no later than December 31, 2022.

The division will administer the grant program in consultation with the division of local government (DLG) in the department of local affairs (DOLA). The division may contract out part of its administrative duties under the grant program to a third-party administrative entity.

In connection with the administration of the grant program, the division and DLG are required to collaborate in creating a process that ensures that grants are only considered and awarded after a fair and rigorous open competition among eligible grant recipients. The division and DLG are also required to collaborate on the review of grant applications and the approval of grant awards. In connection with the review of grant applications and awards, the division must solicit input from a stakeholder group that includes representation from various groups and entities as specified in the act.

On or before September 1, 2021, the director of the division, in consultation with the director of the DLG or their designees, are required to adopt polices, procedures, and guidelines for the grant program that include without limitation:

• Procedures and timelines by which an eligible recipient may apply for a grant;
• Criteria for determining grant eligibility and grant amounts; and
• Reporting requirements for grant recipients.

The act specifies the types of projects meriting preference in the awarding of grants.

The act creates the community revitalization fund (fund) in the state treasury. On the effective date of the act, or as soon as practicable thereafter, the state treasurer is required to transfer $65 million from the general fund to the fund. All money transferred is to be used for either grant awards or the costs of administering the grant program.

On or before November 1, 2022, and on or before November 1, 2023, the division is required to publish a report summarizing the use of all of the money that was awarded as grants under the grant program in the preceding fiscal year. The act specifies additional required components of the report. The report must be posted on the website of the office. The act requires the office to summarize the information contained in the report in its "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearings.

On June 30, 2021, if there is unexpended and unencumbered money remaining from the amount appropriated to DOLA in the 2020-21 state fiscal year for the program providing small business relief to address the negative effects of capacity limits due to the COVID-19 pandemic, the act requires the state treasurer to transfer $7,000,000 of the unexpended and unencumbered amount to DOLA for use by the DLG in administering the Colorado main street program.

The act reduces the 2020-21 state fiscal year appropriation to DOLA for use by the DLG from $37,000,000 to $30,000,000. For the 2021-22 state fiscal year, the act appropriates $7,000,000 to DOLA for use by the DLG for the Colorado main street program.

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

Fiscal Note

The length of the bill summary for this bill requires it to be published on a separate page here: https://leg.colorado.gov/sb21-260-bill-summary
(Note: This summary applies to this bill as enacted.)

Fiscal Note

Currently, 50% of state severance tax revenues are deposited into the severance tax trust fund, which is then typically split between the severance tax perpetual base fund (perpetual base fund) and the severance tax operational fund (operational fund). Money in the operational fund is currently used for core departmental programs and, if there are sufficient available revenues, for transfers to funds that support natural resources and energy grant programs (grant program transfers). The act repeals the grant program transfers, with some, but not all, of the recipient programs receiving alternative funding from severance tax revenues.

Subject to annual appropriation, the Colorado water conservation board is authorized to direct the state treasurer to transfer money from the perpetual base fund to the water supply reserve fund, the interbasin compact committee operation fund, and the water efficiency grant program cash fund, all of which previously received grant program transfers. The general assembly is authorized to directly appropriate or transfer money into the perpetual base fund and the water supply reserve fund.

If less than 100% of the money available in the operational fund is used for the current core departmental programs, then, the general assembly may appropriate money from the operational fund to the species conservation trust fund, the division of parks and wildlife aquatic nuisance species fund, and the conservation district grant fund, all of which previously received grant program transfers. The transfers from the operational fund are subject to the same limits that they had as grant program transfers. On June 30, 2021, and July 1, 2022, the state treasurer is required to transfer $9,456,005 from the general fund to the operational fund.

The director of the office of state planning and budgeting and the executive directors of the departments of revenue, natural resources, education, and local affairs, or their designees, are required to review and analyze various elements of the state severance tax and submit written recommendations for any changes to the joint budget committee. Stakeholders will be involved in the process and may submit responsive comments to the recommendations.

The act also requires metropolitan districts created after July 1, 2021, to annually pay the state an amount equal to the total of all severance tax ad valorem credits claimed for property taxes that are imposed by the metropolitan district. This money will be allocated like severance tax revenues.

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

Fiscal Note

The act creates the economic recovery and relief cash fund (fund) which consists of money deposited in the fund from the "American Rescue Plan Act of 2021" cash fund. To respond to the public health emergency with respect to COVID-19 or its negative economic impacts, the act allows the general assembly to appropriate or transfer money for specified uses.

The act transfers $40 million to the Colorado economic development fund for the Colorado office of economic development to use $10 million of the appropriated money to incentivize small businesses to locate in rural Colorado and for the location neutral employment incentive program which provides incremental cash incentives per remote employee per year for up to 5 years to small businesses that hire new employees in designated rural areas of the state. The act specifies that the remaining appropriated money must be used, subject to the fund requirements, to provide grants to small businesses or to undertake any other economic development activity in response to the negative economic impacts of the COVID-19 pandemic.

The act requires the executive committee of the legislative council to create a task force to meet during the 2021 legislative interim and issue a report with recommendations to the general assembly and the governor on policies that use money from the fund to provide a stimulative effect to the state's economy, necessary relief for Coloradans, or that address emerging economic disparities resulting from the pandemic.

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

Fiscal Note

The act repeals a moratorium on changing a ratio for valuation for assessment (assessment rate), which is the percentage applied to a property's actual value to determine the taxable amount upon which a mill levy is imposed and classifies agricultural property, lodging property, and renewable energy production property as new subclasses of nonresidential property for purposes of the valuation for assessment. The assessment rate for agricultural property and renewable energy production property is temporarily reduced from 29% to 26.4% for the next 2 property tax years. The law is restructured so that, if an initiated measure to reduce the assessment rate for nonresidential property is approved by voters, then it would only apply to lodging property.

Multi-family residential real property is classified as a new subclass of residential real property. The law is restructured so that, if an initiated measure to reduce the residential assessment rate is approved by voters, then it would only apply to multi-family residential real property. If the initiated measure fails or is not on the ballot, then, the assessment rate for multi-family residential real property is temporarily reduced from 7.15% to 6.8% for the next 2 property tax years. The assessment rate for all residential real property other than multi-family residential real property is temporarily reduced from 7.15% to 6.95% for the next 2 property tax years.

The property tax deferral program is expanded to allow any person to defer the payment of the portion of real property taxes that exceed the tax-growth cap, which is an amount equal to the average of the person's real property taxes paid for the preceding 2 property tax years for the same homestead, increased by 4%. The minimum amount a taxpayer may defer at one time under this authorization is $100, and the total taxes that a taxpayer may defer is $10,000. The taxpayer is treated like a person called into military service for purposes of surviving-spouse eligibility and the equity the person must have in the homestead to qualify for a deferral.

The governor's office, in consultation with the treasurer, is required to commission a study on the property tax deferral program and make recommendations for possible changes to the general assembly by January 1, 2022.

Assessors are required to include information about the assessment rates that apply to the various classes of property, which is prepared by the property tax administrator, along with the notices of valuation that are sent in 2022 or make this information available on the assessor's website.

Finally, the act makes conforming amendments related to the new classifications or assessment rates.

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

Fiscal Note