The act:

• Amends the definition of "employer" for purposes of wage and hour laws to include an individual who owns or controls at least 25% of the ownership interest in an employer;
• Prohibits an employer from making a payroll deduction below a worker's applicable minimum wage;
• Allows the director of the division of labor standards and statistics (division) to waive the penalty for an employer's failure to pay claimed wages or compensation within 14 days after a written demand if certain specified conditions are met; and
• Requires a court to find that an employee pursued a wage claim that lacked substantial justification before awarding an employer reasonable costs and attorney fees in a civil action for unpaid wages or compensation. In such an action, the court may pursue all equitable relief to deter future violations and prevent unjust enrichment.

Current law limits the ability of the director of the division to adjudicate claims for nonpayment of wages or compensation to $7,500 or less. The act increases this threshold over the years by increasing the maximum amount to $13,000 for claims filed from July 1, 2026, through December 31, 2027, and in an amount specified by the director of the division to adjust for inflation beginning January 1, 2028. The act also requires the division, in adjudicating wage claims, to determine whether a violation is willful. For each violation:

• The director shall publish on the division's website the names of all employers found to be in violation and whether the violation was willful; and
• If the violation was willful and is not remedied within 60 days after the division's finding that there was a violation, the division must notify all government bodies with the authority to deny, withdraw, or otherwise limit or impose remedial conditions on the employer's license, permit, registration, or other credential of the unremedied willful violation.

Additionally, the division may report an employer found to have violated a law related to wages and hours to any government body with authority to deny, withdraw, or otherwise limit or impose remedial conditions on the employer's license, permit, registration, or other credential. The act also repeals language requiring the division to issue a determination on a wage complaint within 90 days and clarifies that a city or county may enact and enforce wage laws within the city or county's jurisdiction.

An employer found to have misclassified an employee as a nonemployee must pay a fine in the following amounts, in addition to any other relief ordered:

• For a willful violation, $5,000;
• For a violation not remedied within 60 days after the division's finding, $10,000;
• For a second or subsequent willful violation within 5 years, $25,000; or
• For a second or subsequent willful violation not remedied within 60 days after the division's finding, $50,000.

The director of the division must adjust these fine amounts for inflation by January 1, 2028, and every other year thereafter.

The act also decreases the amount of time the division must wait before paying an employee out of the wage theft enforcement fund from 6 months to 120 days.

Current law prohibits an employer from discriminating or retaliating against an employee for taking protection under wage and hour laws or the law related to the employment of minors. The act expands this provision to specify additional protected behavior and expands the prohibition to include other persons in addition to employers.

The act also:

• Requires a fact finder to consider the time between an individual's exercise of a protected activity and an employer's adverse action when determining whether an employer has retaliated against the employee or worker;
• Specifies that it is a violation to use an individual's immigration status to discriminate or retaliate against an employee or worker who has engaged in protected activity; and
• Allows the division to order reasonable attorney fees and costs after investigating a discrimination or retaliation claim.

Between August 1, 2027, and October 1, 2027, the division must report to the joint budget committee on its progress in implementing the act.

In state fiscal year 2025-26, $328,210 is appropriated to the department of labor and employment for use by the division to implement the act.

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

Fiscal Note

The act creates a new refundable tax credit only if at least one qualified film festival entity with a multi-decade operating history and a verifiable track record of attracting 100,000 or more in-person ticket sales and over 10,000 out-of-state and international attendees (global film festival entity) commences the relocation of the festival to Colorado by January 1, 2026. Upon relocation, for calendar years commencing on or after January 1, 2027, but before January 1, 2037, the maximum aggregate amount of refundable tax credits that any qualified global film festival entity is eligible to receive is $34 million and the maximum aggregate amount that all existing or small Colorado festival entities collectively may receive is $5 million. A film festival entity is allowed a tax credit for each tax year in which the film festival entity hosts a film festival in Colorado, and may be allowed an additional tax credit in the subsequent tax year with respect to any qualified expenditures incurred in the year the film festival entity hosted the film festival in Colorado.

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

Fiscal Note

Under current law, a person engages in an unfair and unconscionable act or practice in violation of consumer protection laws if the person engages in price gouging during a declared disaster emergency. The act provides that a person engages in price gouging in the sale or offer for sale of certain goods or services if, after the governor declares a disaster emergency, which declaration may be based on a market disruption, the price of the good or service is increased by 10% or more above the price at which a similar good or service was sold or offered for sale before the disaster began. The act also establishes that seasonal pricing is not considered unreasonably excessive pricing and therefore is not price gouging.

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

Fiscal Note

The act creates 2 income tax subtractions for income tax years commencing on or after January 1, 2027, but before January 1, 2038. The first subtraction is for an amount equal to state capital gains that are realized by a taxpayer, who is the owner of a qualified business, during the taxable year for the conversion by an increment of at least 20% ownership to a qualified employee-owned business. The taxpayers that are eligible for this subtraction are the same taxpayers that would be eligible for the tax credit for conversion costs for employee business ownership. The total amount of capital gains that a taxpayer may subtract is set by and may be annually adjusted by the Colorado office of economic development (office), and is required to be posted on the office's website. The second subtraction is allowed to worker-owned cooperatives in an amount equal to the worker-owned cooperative's federal taxable income for the tax year not to exceed $1 million.

The act also makes changes to the tax credit for conversion or expansion costs for employee business ownership (credit), which has been available through income tax year 2026. The act extends the credit through income tax years commencing in 2031. The act also specifies that the aggregate amount of credits that can be claimed for each income tax year commencing on or after January 1, 2026, but before January 1, 2032, is $3 million. The act also increases the percentage of conversion or expansion costs that are eligible to be claimed for the credit from 50% to 75% beginning in tax year 2026 while maintaining the existing dollar caps for the different methods of conversion.

Additionally, the act revises several definitions to expand eligibility for the credit and allows for qualified support entities, which are businesses or nonprofit organizations that provide services to businesses that qualify under the credit so that those businesses can convert or expand to employee ownership, to be eligible to receive the credit for up to 75% of the costs incurred for providing such support, not to exceed $167,000, including for staff salaries and benefits, marketing and outreach, and consulting and technical assistance. Support costs exclude any costs that are considered conversion or expansion costs that can be claimed in the credit for employee business ownership.

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

Fiscal Note

Legislative Oversight Committee Concerning Tax Policy. The bill creates an online database managed by the department of revenue that includes information on all qualifying state tax expenditures and state grant opportunities. A state grant opportunity is any grant funded by state money or administered by the state. A qualifying state tax expenditure is any state tax expenditure for which at least one of the following applies:

• A limited amount of dollars or credits is available;
• To qualify for the tax expenditure, a discretionary determination made by a state agency is necessary; or
• To qualify for the tax expenditure, a person must submit an application to and receive a certificate or other designation of approval from a state agency.

The database must be created by December 31, 2026, and must be reviewed and updated on an annual basis.

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

Fiscal Note

The bill modifies the existing process by which principal departments of the state, including agencies and officials within each principal department of the state, adopt and annually review their rules by making the following changes:

• Requiring that a cost-benefit analysis be performed for each proposed new rule or amendment of an existing rule;
• Removing an exception that exempted rules relating to orders, licenses, permits, adjudication, or rules affecting the direct reimbursement of vendors or providers with state money from a cost-benefit analysis;
• Requiring, in each principal department's review of its rules, an emphasis on the cost burden of the rule on the state and its residents;
• Requiring legislative committees of reference to take a recorded vote on whether to support or modify the principal department's recommendations included in the department's report on the results of its mandatory review of rules as presented to the committee in the departmental regulatory agenda; and
• Requiring each principal department to include, in its department regulatory agenda distributed to legislative committees of reference, a report on the revenue generated in the previous fiscal year from permit and license fees for which the amount of the fee is determined by rule.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The act extends the availability of the advanced industry investment tax credit (credit), which can be claimed by a qualified investor that makes a qualified investment in a qualified small business that is in an advanced industry, from December 31, 2026, through December 31, 2031.

The act expands the definition of "qualified investment" by eliminating prohibitions against a qualified investor having more than 30% of the voting power in a qualified small business before the investor makes a qualified investment in the qualified small business and more than 49% of the voting power in a qualified small business after making a qualified investment in the qualified small business.

The act changes the definition of "qualified investor" by clarifying that an entity subject to income tax may qualify as an investor; except that a C corporation, including any limited liability or other legal entity treated as a C corporation for federal and state income tax purposes, is not a qualified investor. A qualified investor may include a partner, shareholder, or beneficiary that is allocated a credit, but does not include:

• A person that had control of a qualified small business for 6 months preceding or following the date of the investment in the qualified small business;
• A founder, employee, or contractor or a spouse of a founder, employee, or contractor of a qualified small business;
• A person that has invested more than $50,000 in the qualified small business or owns more than 10% of the qualified small business on a fully diluted basis.

The act authorizes the Colorado office of economic development (office), which administers the credit, to certify a small business as a qualified small business through October 1, 2031. A small business certified as a qualified small business must report to the office as requested to confirm the certified small business's status as a qualified small business. The office may require a qualified small business to provide information to confirm that a qualified investment has been made in the qualified small business, the intended use of the qualified investment, and the expected number of new employees that will be hired by the qualified small business as a result of the qualified investment. A qualified small business that receives a qualified investment is required to report data relevant to the impact of the credit and development of the qualified small business annually to the office for 5 years following a qualified investment. The office may assess a penalty against a qualified small business that does not meet this reporting requirement.

The office may issue $4 million in credits per calendar year for the years through the 2026 calendar year for which the credit is currently available. The act decreases the cap to $2.5 million per calendar year beginning with the 2027 calendar year through the 2031 calendar year.

If the qualified investor receiving a credit is a trust, the qualified investor may allocate the credit between the trust and its beneficiaries in any manner determined by the trust. The office shall issue a credit certificate to a trust beneficiary and a trust beneficiary may claim the amount indicated on the credit certificate.

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

Fiscal Note

Under current law, an investor-owned electric utility (utility) may apply to the public utilities commission (commission) for approval to charge certain commercial or industrial customers of the utility an economic development rate (economic development rate), which is a reduced rate offered to a commercial or industrial customer that locates or expands their operations in Colorado, that adds at least 3 megawatts of new load at a single location within the utility's service territory, and that demonstrates certain other requirements to the satisfaction of the utility (qualifying commercial or industrial customer).

The act makes adjustments to the requirements for an economic development rate by:

• Requiring that an approved economic development rate not increase costs of electric service for other customers;
• Clarifying that an approved economic development rate does not relieve a utility of its obligation to achieve compliance with greenhouse gas emission reduction requirements;
• Authorizing a utility to apply to the commission for an expansion of the maximum duration of the economic development rate from 10 years to 25 years;
• Expanding the maximum load at a single location of a qualifying commercial or industrial customer for an individual project that does not require commission approval from 20 megawatts to 40 megawatts; and
• Updating the application process required for seeking approval of an economic development rate by requiring that the commission:
• Approve or deny an application within 120 days after a notice period of 14 business days after the application was filed; except that, if the load is more than 150 megawatts, the commission shall approve or deny the application within 210 days after the notice period; and
• Consider the broader economic benefits associated with the application for other classes of utility customers and for the surrounding community.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Under current law, the air quality control commission is tasked with developing an effective air quality control program (program), including adopting rules necessary to carry out the program.

The bill requires a person that owns, leases, operates, controls, or supervises (owner or operator) a building, structure, facility, or installation that emits or may emit an air pollutant (stationary source) to maintain records that will help the public determine whether the owner or operator is in compliance with rules establishing applicable air quality control regulations (records). The bill requires an owner or operator of a stationary source to make the records publicly available and accessible through a link on the owner or operator's public website.

The department of public health and environment is required to include a link on its website directing members of the public to the website of an owner or operator where the records are available.

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

Fiscal Note

Subject to local voter approval, the act increases the maximum allowed rate of a county lodging tax levied on the purchase price paid or charged to persons for rooms or accommodations from 2% to 6% and expands the allowed uses of lodging tax revenue to include:

• Public infrastructure maintenance or improvements; or
• Enhancing public safety measures by funding local law enforcement, fire protection services, and emergency medical services.

If a county received voter approval before January 1, 2025, to specifically allocate portions of revenue from the lodging tax to allowed uses for designated purposes, the act clarifies how those previously approved allocations are preserved and how revenue attributable to an increase in the tax rate may be allocated by the county.

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

Fiscal Note

In an action against a construction professional, section 2 of the bill requires the construction professional to provide the claimant or the claimant's legal representative with:

• Copies of all plans, specifications, soils reports, and available engineering calculations;
• Any maintenance and preventive maintenance recommendations;
• The name, last-known address, and scope of work of each construction professional that performed work or services; and
• Copies of all insurance policies held by the construction professional during the appropriate time.

The construction professional may charge reasonable copying costs for the documents. Failure to provide the identifying information of the other construction professionals bars the construction professional from designating the unidentified construction professionals as nonparties at fault in any subsequent action.

Section 3 requires a court to award prejudgement interest of 8% to a prevailing claimant who alleges defects in a residential property construction. Section 5 voids a provision in a real estate contract that:

• Prohibits group lawsuits against a construction professional; or
• Imposes different or additional requirements than the statutory requirements to bring or join a legal action.

Section 6 changes the time when a claim of relief arises, for the purposes of the statute of limitation and repose, to include both the discovery of the physical manifestation and the cause of the defect.

Current law authorizes, subject to the requirements of the common interest community's (community) declarations, a community to engage in certain actions, such as instituting, defending, or intervening in litigation or administrative proceedings on matters affecting the community. Section 7 exempts an association's authority to institute, defend, or intervene in litigation proceedings concerning construction defects from the requirement that the action be subject to the declaration. Section 8 requires the department of regulatory agencies to include in its "SMART Act" report information concerning construction liability insurance and the basis for rates.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

For construction of multifamily, attached housing of 2 or more units, the act creates the multifamily construction incentive program (program). A builder may chose to participate in the program by:

• Providing a warranty that covers any defect and damage at no cost to the homeowner for specified periods;
• Having a third-party inspection performed on the property; and
• Recording a notice of election to participate in the program in the real property records before the property is offered for sale.

For construction defect claims brought for the construction of housing for which the builder is a participant in the program, the act:

• Requires a claimant to file a certificate of review with the complaint, if the complaint is against an architect or engineer;
• Limits actions to claims that have resulted in: Actual damage to real or personal property; actual loss of the use of real or personal property; actual bodily injury or wrongful death; an unreasonable reduction in the capability of, or an actual failure of, a building component to perform an intended function or purpose; or an unreasonable risk of bodily injury or death to, or a threat to the life, health, or safety of, the occupants of the residential property; and
• Requires that a construction professional must send or deliver to the claimant an offer to settle the claim or a written response that identifies the standards that apply to the claim and explains why the defect does not require repair.

For all construction defect claims, the act:

• Establishes a claimant's duty to mitigate an alleged construction defect and specifies how a claimant may satisfy this duty and the consequences to a claimant that fails to satisfy this duty;
• Requires a construction professional who is the defendant in a construction defect action to submit specified information to the claimant;
• Prohibits an insurer from cancelling, denying, or reducing coverage based on any claim for benefits covered by an existing liability insurance policy issued to a construction professional based on the construction professional's offer to repair or settle a construction defect claim;
• Tolls the statute of limitations or repose during a claimant's mitigation of an alleged construction defect;
• Increases the percentage of owners that an executive board of a unit owners' association (executive board) must obtain approval from before initiating a construction defect claim on behalf of the owners from a majority to 65%; and
• Requires an executive board that is successful in a construction defect claim or settlement to first use the net monetary damages or net proceeds received as a result of the claim to repair the construction defect.

The act requires a local government to establish a fast-track approval process for an application for for-sale multifamily condominium projects in order to qualify for assistance from the state affordable housing fund.

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

Fiscal Note

The bill requires employers to implement protections for workers who are exposed to extreme hot and cold temperatures at the worksite, including temperature mitigation measures, rest breaks, and temperature-related injury and illness prevention plans.

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

Fiscal Note

The act adjusts several state tax expenditures as follows:

• Section 2 of the act allows an individual to present a copy of their federal tax return to be exempted from the medical marijuana registry application fee;
• Section 3 requires insurance companies, when submitting certain filings with the division of insurance, to submit the total annual dollar amount of premiums collected or contracted for on policies or contracts of insurance covering property or risks in Colorado during the previous calendar year from entities that are exempt from taxation;
• Section 4 ensures that the valuation for assessment for qualified-senior primary residence real property is reduced for the property tax years commencing on January 1, 2025, and January 1, 2026;
• Section 6 adds the amount of any overtime compensation excluded or deducted from a taxpayer's federal gross income to that taxpayer's federal taxable income for purposes of determining the taxpayer's state taxable income;
• Section 7 expands the definition of local government to include counties for purposes of the alternative transportation options tax credit;
• Section 8 modifies the tax credit for qualified costs incurred in preservation of historic structures by removing the 5% increase in the percentage of rehabilitation expenses incurred in a rehabilitation in a disaster area for the rehabilitation of a commercial structure that are applicable for the tax credit;
• Section 9 extends the tax credit for monetary contributions to promote child care, so that the tax credit is available through income tax years commencing before January 1, 2030, rather than January 1, 2026;
• Section 10 limits the existing business personal property tax credit so that a taxpayer may only claim the tax deduction for income tax years commencing before January 1, 2026;
• Section 12 clarifies and modifies definitions for the qualified care worker tax credit;
• Section 13 allows the executive director of the department of revenue to direct employers who make payments of compensation other than wages to withhold an amount that approximates an employee's income tax due to the state from that employee's compensation;
• Section 14 expands the definition of agricultural commodities to include products regulated under article 10 of title 44 for purposes of the pesticides, fertilizers, and spray adjuvants wholesale sales tax exemption;
• Section 15 ensures that, beginning July 1, 2025, interstate telephone and telegraph services are subject to state sales tax;
• Section 16 exempts the sale of medical marijuana to an individual who presents a valid electronic benefits transfer card or certain other identification from sales tax; and
• Section 17 modifies the enterprise zone tax credit for income tax years beginning January 1, 2026, by limiting the total amount of the credit that may be claimed to $2 million, providing an exemption process for that limit, and prohibiting certain taxpayers from claiming that credit.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The act provides that, after the state housing board (board) adopts rules about any activity required to undertake or complete the construction or installation of a factory-built nonresidential structure, a factory-built residential structure, or a factory-built tiny home (factory-built structure), the state plumbing board, the state electrical board, and the state fire suppression administrator do not have jurisdiction over and their rules do not apply to a factory-built structure.

The advisory committee on factory-built structures and tiny homes (advisory committee) is required to develop regional building codes standards accounting for local climatic and geographic conditions and fire suppression activities to ensure safety, to apply the most stringent of these requirements for the construction and installation of factory-built structures, and to develop implementation requirements. The advisory committee must submit the recommended codes and implementation requirements to the board. Any future statewide adopted codes contemplated in statute must be vetted through the advisory committee for consideration for adoption by the board.

The act requires that plumbing or electrical installations that connect factory-built structures to external utility sources and that are not considered actions to complete the installation of a factory- built structure as required by a registered installer must be completed by a licenced plumber or electrician under a registered plumbing or electrical contractor. The inspection and inspectors of these installations, other than those authorized to be performed by a registered installer, must be performed by licensed plumbing or electrical inspectors.

During the 2026 legislative session, the department of local affairs (department) shall present the recommendations of the advisory committee related to the development of regional building codes accounting for local climatic and geographic conditions and fire suppression activities, and improved coordination between the state and local permitting process onsite for the construction and installation of factory-built structures, to the senate local government and housing committee and the house transportation, housing, and local government committee prior to consideration and adoption by the board. The department shall report on the outcomes as part of its 2031 "SMART Act" hearing.

On or before July 1, 2026, the board must adopt rules:

• Establishing regional building code standards from the advisory committee that account for local climatic and geographic conditions, and fire protection and suppression activities for the construction and installation of factory-built structures developed by the advisory committee, which supersede any conflicting ordinance, code, regulation, or other law of a local government unless the local government adopts the rules of the board;
• Establishing requirements based on the recommendations developed by the advisory committee, including the continued authorization of a local government certified by the division of housing (division) to perform inspections of factory-built structures on behalf of the division and registration, responsibility, and accountability requirements for a manufacturer, installer, seller, or general contractor who develops the installation site or completes the construction of a factory-built structure at the installation site;
• Covering electrical or plumbing codes required to undertake or complete the construction or installation of a factory-built structure;
• Allowing the division to contract for third-party review and approval of a final design and construction plan for a factory-built structure on behalf of the division;
• Allowing the division to create a process for vetting and approving the ability of a third party to review and approve a final design and construction plan for a factory-built structure on behalf of the division; and
• Requiring the division to cause an audit to be performed on a third party that reviews and approves design and construction plans, on a third party that conducts inspections on its behalf, of contracts of sellers to verify compliance, and to ensure protection of down payments made by purchasers that are retained by the seller of manufacturer.

A county or municipality may not:

• Enact a regulation that excludes factory-built structures from the county or municipality;
• Impose more restrictive standards on factory-built structures than those that the county or municipality applies to site-built homes in the same residential zones in the county or municipality; or
• Enact or enforce a regulation, law, or ordinance affecting the installation or construction of a factory-built structure that is more stringent than a regulation, ordinance, or law that applies to other types of construction.

A county or municipality may enact:

• Land use regulations to the extent that the regulations are applicable to existing similar housing or structures or new site-built housing in the county or municipality;
• A building code provision for unique public safety requirements unless the provision applies to a factory-built structure; and
• Rules regulating above-grade site-built components of a factory-built structure.

Factory-built homes certified by the division prior to the effective date of the regional building code standards adopted by the board are subject to state or local rules concerning unique public safety requirements related to geographic conditions or wildfire risk relating to the construction and installation of the structures existing before the effective date of the regional building code standards. A county or municipality must comply with the requirements established by the division for factory-built structures and by the United States department of housing and urban development for manufactured homes.

The act repeals the ability of local governments to adopt different standards for factory-built housing than those adopted by the division only if:

• The board adopts rules establishing requirements for factory-built housing based on the recommendations of the advisory committee; and
• The board notifies the revisor of statutes in writing via email of the adoption of the rules. The act changes the composition of the advisory committee from 15 to 19 members. The membership changes include the:
• Addition of four members from building code enforcement, each representing a local building department from climate zones 4, 5, 6, and 7, instead of 3 members from building code enforcement;
• Removal of a member with experience in mechanical engineering or contracting;
• Substitution of a member who is a licensed electrician who may be employed by the department of regulatory agencies for a member from electrical engineering or contracting;
• Substitution of a member who is a licensed plumber who may be employed by the department of regulatory agencies for a member from the plumbing industry;
• Removal of a member from the construction design or producer industry;
• Substitution of 3 members from factory-built structure construction for 2 members from manufactured housing;
• Subtraction of one of the 2 current members from the tiny home industry;
• Addition of one member who is a developer specializing in the use of factory-built structures in projects;
• Addition of one member from climate resiliency;
• Addition of one member who is a registered installer;
• Addition of one member who is a registered seller; and
• Addition of one member who is an individual representing emergency services or management.

The state treasurer shall transfer $600,000 on July 1, 2025, from the innovative housing incentive program fund to the building regulation fund. The act excludes the building regulation fund from the limitations on cash fund reserves.

For the 2025-26 state fiscal year, the act appropriates $182,264 from the building regulation fund to the department for use by the division to implement the act.

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

Fiscal Note

The act eliminates the requirement for a second election to negotiate a union security agreement clause in the collective bargaining process.

VETOED by Governor 5/16/2025
(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act authorizes the state treasurer to invest up to $50 million of state money in bonds, which may have below-market interest rates, that are issued by a quasi-governmental authority to create or finance new affordable, income-restricted for-sale housing that would not be made available at similar rates and terms without the state's investment. The housing must remain affordable long-term and be available to borrowers earning no more than 140% of the statewide area median income. The bonds may have a term of up to 45 years and must have at least 2 credit ratings at or above A- or A3 or its equivalent from nationally recognized rating organizations. Money from principal proceeds of such bonds must be reinvested by the state treasurer for the same purpose once the state treasurer has received repayment of 50% of the principal amount invested. The quasi-governmental authority issuing the bonds shall provide an annual report to the treasurer and the general assembly that includes specified information about the affordable housing created with bond proceeds.

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

Fiscal Note

Wildfire Matters Review Committee. The bill requires the general assembly to appropriate $7,500,000 to the division of fire prevention and control (division) for state fiscal year 2024-25 and allows any unexpended portion of the appropriation to also be expended in state fiscal year 2025-26. The division is required to use the money to study and develop applications of artificial intelligence that predict, mitigate, or assist in fighting wildfires, including, at a minimum, applications of artificial intelligence which produce data that can be incorporated into maps displaying the following:

• Classification of vegetation and wildfire fuel;
• Predictions regarding the likelihood of wildfire ignition potential in a particular area following observed lightning events;
• The perimeter of an ongoing wildfire; and
• Predictions regarding the locations and area to which an ongoing wildfire may spread.

The division may contract with a third party that has developed artificial intelligence tools to predict, mitigate, or assist in fighting wildfires. The division is also authorized to seek, accept, and expend gifts, grants, and donations for the purposes of the bill.

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

Fiscal Note

The act requires the office of just transition (office) in the department of labor and employment to prioritize awarding funding to support tier one and tier 2 coal transition communities experiencing socioeconomic impacts of coal closures and for opportunities for economic diversification, local community input, feasibility studies of specific proposed projects, and needs assessments. The office is required to use money appropriated to the just transition cash fund after July 1, 2025, to support programs that support targeted investment in coal transition communities by collaborating with coal transition communities and eligible entities, state and regionally recognized governmental and economic development entities, employee organizations that represent coal transition workers, and workers who are not affiliated with employee organizations to implement the most effective projects and programs for those communities.

The act requires the office to annually report to the joint budget committee and at the annual "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearings of the senate local government and housing committee and the house transportation, housing, and local government committee about the grants awarded by the office during the preceding state fiscal year, their recipients, and the purpose for which they were awarded.

A public entity may invest public funds only as allowed by law. The act specifies that the investment of a payment or settlement to offset the socioeconomic impacts to a community or government from the closure of a coal mine or coal power generating station is not subject to these investment limitations.

The act allows the executive director of the department of local affairs to establish a policy preference for awarding up to 70% of the money credited to the local government severance tax fund to just transition communities for a 3-year period beginning January 1, 2026.

The act extends the deadline for the submittal by the director of the Colorado energy office of the findings and conclusions of assessments of advanced energy solutions in the northwestern and west end of Montrose county and in southeastern Colorado from July 1, 2025 to December 19, 2025, and makes the requirement that the findings and conclusion be submitted contingent on the director having sufficient federal money to support the submittal.

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

Fiscal Note

Under current law, when an employee takes leave from a job pursuant to the state's paid family and medical leave insurance program, the employer is required to hold the employee's job until the employee returns and maintain the employee's health-care benefits during the duration of their leave. Section 1 of the bill creates an exemption from these requirements for an employer that has a workforce of 51% or more highly specialized employees. The bill requires an employer to apply to and get approval from the division of family and medical leave insurance (division) in the department of labor and employment before the employer can qualify for the exemption. An employer that qualifies must reapply annually to maintain the exemption. Lastly, section 1 defines a highly specialized employee as an employee whose job description or duties:

• Involve responsibilities that are not easily transferrable;
• Require a specific or unique advanced degree that limits the pool of replacements; or
• Require a rare or in-high-demand skill set.

Section 2 requires the division to establish a standardized application process for employers to apply for the highly specialized employees exemption by submitting documentation that proves that the employer has a workforce of 51% or more highly specialized employees. On or before March 1, 2026, the director of the division is required to adopt necessary rules to implement the application process.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill creates the Colorado nuclear workforce development and education program (program) in the department of higher education (department) council (council) in the Colorado school of mines to help meet growing workforce demand in the nuclear energy sector. The bill establishes a related grant program (grant program) to provide grants to institutions of higher education for the development or expansion of nuclear engineering degree or certificate programs or course offerings. The Colorado nuclear workforce development and education council shall advise and assist the department regarding the grant program's implementation and evaluation convene advisory sessions with stakeholders from the nuclear, educational, and workforce development sectors; implement the grant program; and contract with one or more third-party entities for staffing and operational assistance .

The department may seek, accept, and expend gifts, grants, and donations for program-related council-related purposes. The state treasurer shall credit the gifts, grants, and donations to the Colorado nuclear workforce development and education cash fund (cash fund) , which is created in the bill . The general assembly shall not appropriate general fund dollars to implement or maintain program council operations or grant awards. The department council shall convene and begin awarding grants only after the balance of the cash fund reaches or exceeds $500,000.

The bill imposes requirements to report to the general assembly about the program's council's funding sources, grant program implementation , and use other uses of funds. The bill repeals the program council , effective September 1, 2032, unless the program council is extended pursuant to a sunset review. Conditional upon the receipt of sufficient gifts, grants, and donations, for the 2025-26 state fiscal year, the bill appropriates $500,000 from the cash fund to the department of higher education for use by the trustees of the Colorado school of mines.

(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 restricts construction defect negligence claims unless the negligence claim arises from a construction defect which results in actual damage to or loss of the use of real or personal property; bodily injury or wrongful death; or a risk of bodily injury or death to, or a threat to the life, health, or safety of, the occupants of the residential real property. Section 1 of the bill changes this restriction so that all construction defect claims are restricted unless the claim arises from a construction defect that causes:

• Actual damage to real or personal property caused by the violation of a building code, manufacturer's instructions, or industry standard;
• Actual loss of the use of real or personal property;
• Bodily injury or wrongful death; or
• An imminent and unreasonable risk of bodily injury or death to, or an imminent or unreasonable threat to the life, health, or safety of, the occupants of the residential real property.

Sections 2 through 12 modify existing warranty of habitability laws by repealing recent updates and reenacting the laws as they were prior to the updates. The modifications include repealing certain procedures for both landlords and tenants when a warranty of habitability claim is alleged by the tenant; repealing a rebuttable presumption that a landlord failed to remedy an uninhabitable premises in certain conditions; modifying requirements regarding notice given to a landlord of an uninhabitable premises; and modifying other laws related to rental agreements, records, and procedures for remedying uninhabitable premises. Section 13 repeals law that allows the attorney general to independently initiate and bring actions to enforce laws relating to the warranty of habitability. Section 14 makes a conforming change to law governing county courts' jurisdiction over cases involving tenant's remedies in warranty of habitability cases and tenant's remedies in cases of unlawful removal. Section 15 modifies the statement included in a summons issued to a defendant in a court proceeding regarding an action for possession brought by a landlord. Sections 16 through 20 repeal provisions related to evictions of residential tenants, including repealing:

• Requirements that a landlord and residential tenant participate in mandatory mediation prior to commencing an eviction action if the residential tenant receives cash assistance;
• A prohibition on a law enforcement officer's ability to execute a writ of restitution until 30 days after the entry of judgment if the residential tenant receives cash assistance;
• Requirements that a written demand include a statement that a residential tenant who receives cash assistance has a right to mediation prior to the landlord filing an eviction complaint;
• Requirements that a written rental agreement include a statement that current law prohibits source of income discrimination and requires a nonexempt landlord to accept any lawful and verifiable source of money paid directly, indirectly, or on behalf of a person; and
• Requirements that prohibit a written rental agreement from including a waiver of mandatory mediation or a clause that allows a landlord to recoup any costs associated with mandatory mediation.

Sections 21 and 22 require any provision of any energy code adopted by a county or municipality on or after January 1, 2026, to be cost effective. "Cost effective" means, using the existing energy efficiency standards and requirements as a base of comparison, that the economic benefits of the proposed energy efficiency standards and requirements will exceed the economic costs of those standards and requirements based upon an incremental multi-year analysis.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

Under current law, the state income tax rate imposed on the taxable income of individuals, estates, trusts, and corporations is 4.4%; except that, for the income tax year commencing on January 1, 2024, the income tax rate is 4.25% and for any income tax year commencing on or after January 1, 2025, but before January 1, 2035, the income tax rate is temporarily reduced if state revenue exceeded the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution for the state fiscal year that ended during the income tax year. The extent to which the rate is temporarily reduced depends on the total amount of excess state revenues remaining after homestead exemption reimbursements and qualified-senior primary residence reimbursements are paid.

The bill makes the 4.25% tax rate permanent beginning with the income tax year commencing on January 1, 2025, makes any additional temporarily reduced income tax rate permanent for subsequent income tax years, and eliminates the state income tax on individuals, estates, and trusts for income tax years commencing on or after January 1, 2035.

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

Fiscal Note

Sections 1 through 3 of the bill include nuclear energy in the definitions of "clean energy" and "clean energy resource". Sections 4 and 5 repeal the Colorado circular communities enterprise and user fees created in House Bill 24-1449, enacted in 2024, to replace the front range waste diversion enterprise and user fees created in Senate Bill 19-192, enacted in 2019. Section 6 repeals the 10-cent paper carryout bag fee created in House Bill 21-1162, enacted in 2021. Section 7 repeals the confinement standards for egg-laying hens whose eggs are sold in Colorado, which standards were created in House Bill 20-1343, enacted in 2020. Section 8 repeals the authorization for counties and municipalities to collect special sales taxes on nicotine products, which authorization was created in House Bill 19-1033, enacted in 2019. Section 9 repeals the energy assistance system benefit charge created in House Bill 21-1105, enacted in 2021. Section 10 repeals the retail delivery fee created in Senate Bill 21-260, enacted in 2021. Sections 11 through 45 make conforming amendments.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

With regard to the family and medical leave insurance program (program), the act extends the duration of paid family and medical leave, up to an additional 12 weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit.

The act also changes the premiums financing the program benefits by extending the current premium amount, 0.9% of wages per employee, through 2025 and setting the premium amount for the 2026 calendar year at 0.88% of wages per employee. For each subsequent calendar year, the director of the division of family and medical leave insurance (director) is required set the premium on or before September 1 of the preceding year, in a manner such that:

• At the end of the year, the balance of the family and medical leave insurance fund (fund) is not less than 6 months' worth of projected expenditures from the fund required for performance of the functions and duties of the director;
• The volatility of the premium rate is minimized; and
• The premium amount does not exceed 1.2% of wages per employee.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Under current law, if a consumer consents to an automatic renewal contract for a good or service through an online medium, the person that sells the good or service may provide the consumer with an opportunity to cancel the automatic renewal contract either online or in person.

The act changes this provision to state that the person that sells the good or service is required to provide the consumer with an opportunity to cancel the automatic renewal contract online if the consumer consented to the automatic renewal contract through an online medium. If the consumer consented to the automatic renewal contract through other means, the person is required to provide the consumer with an online cancellation link or an in-person mechanism for canceling the automatic renewal contract.

The person that sells the good or service may display a discounted offer, a retention benefit, or information regarding the effects of cancellation if the person simultaneously displays a direct link to cancel the automatic renewal contract.

The attorney general may adopt rules to implement and enforce the act.

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

Fiscal Note

Sections 1 and 2 of the bill prohibit a state agency from imposing a personal qualification requirement in order to engage in a profession or occupation unless the agency can show that the requirement is demonstrably necessary and narrowly tailored to address a specific, legitimate public health, safety, or welfare objective. On or before July 1, 2026, every agency must review occupational regulations and determine whether the regulation should be repealed or amended. Any person may file a petition with an agency requesting that an occupational regulation be repealed or amended. Regardless of whether a petition is filed with an agency, any person may file a civil suit requesting that the court enjoin the adoption or enforcement of an occupational regulation.

When an agency files a notice of proposed rule-making with the secretary of state, if the proposed rule-making includes a proposed occupational regulation, the agency must also submit a statement to the secretary of state describing how the proposed occupational regulation complies with the bill's requirements.

Section 3 repeals the industrial and manufacturing operations clean air grant program, the cannabis resource optimization cash fund, the community access to electric bicycles grant program, and the electrifying school buses grant program, which were enacted in 2022 by Senate Bill 22-193. Section 4 repeals the energy code board and its associated model codes, an energy code training grant program, the building electrification for public buildings grant program, the high-efficiency electric heating and appliances grant program, and the clean air building investments fund, which were enacted in 2022 by House Bill 22-1362. Section 5 repeals the air quality enterprise, which was enacted in 2020 by Senate Bill 20-204. Section 6 repeals the environmental response surcharge, the perfluoroalkyl and polyfluoroalkyl substances cash fund, the perfluoroalkyl and polyfluoroalkyl substances grant program, the perfluoroalkyl and polyfluoroalkyl substances take-back program, and certain civil penalties for violations of certain air quality control regulations, which were enacted in 2020 by Senate Bill 20-218. Section 7 repeals certain requirements, including requirements regarding fenceline monitoring and community-based monitoring of air toxics, for covered facilities, which requirements were enacted in 2021 by House Bill 21-1189. Sections 8 through 20 make necessary conforming amendments.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act continues the just transition advisory committee (advisory committee) until September 1, 2030. Prior to its repeal, the department of regulatory agencies will conduct a sunset review of the advisory committee.

The act requires the just transition office in the department of labor and employment (office) to consult with the advisory committee on issues related to the impact of facility closures and job layoffs in coal-related industries in a manner that best ensures continued economic stability and prosperity for impacted workers and communities during and after the transition away from coal as an economic driver. The office is also directed to develop and implement plans to maximize the economic stability and prosperity of coal workers and communities.

When the general assembly created the advisory committee in 2019, the advisory committee was required to develop a draft just transition plan (plan) before July 1, 2020. The act repeals obsolete references to the development of the plan and requires the director of the office to update the plan as needed.

The act increases the number of coal transition workers appointed to the advisory committee from 3 to 5 and requires that at least one advisory committee member works at a coal mine and at least one member works at an electric utility.

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

Fiscal Note

The act suspends legislative interim committee activities during the 2025 legislative interim (interim). Specifically, the act:

• Prohibits the legislative council of the general assembly from prioritizing any requests for interim committees, including task forces, for the 2025 interim;
• For an interim committee that meets during 2025 interim, limits the number of bills the committee can request to be drafted to 5 and can recommend for introduction to 3;
• Prohibits meetings, field trips, and legislative recommendations and reports by, and suspends for one year certain reports required to be submitted to, existing interim committees, including the legislative emergency preparedness, response, and recovery committee; legislative oversight committee for Colorado jail standards; statewide health care review committee; Colorado health insurance exchange oversight committee; opioid and other substance use disorders study committee; pension review commission and pension review subcommittee; legislative oversight committee concerning tax policy; and sales and use tax simplification task force; and
• Prohibits members serving on statutorily created interim committees from receiving per diem and travel expenses for attending interim committee meetings during the 2025 interim except for attendance at a meeting of the wildfire matters review committee, the water resources and agriculture review committee, and the transportation legislation review committee.

The act removes the authority of the Colorado youth advisory council review committee to recommend legislation through the interim committee process.

The act reduces appropriations made in the legislative department's budget bill by $272,355.

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

Fiscal Note

The bill creates the data center development and grid modernization program (program) in the Colorado office of economic development (office). To facilitate efficient data center development and g rid modernization, the program allows tax and utility benefits to a data center operator that applies to the office to have a data center project certified at one of 2 levels and that satisfies certain eligibility criteria for certification.

The first level of data center project certification created in the bill is base certification. In connection with base certification, the bill specifies that:

• To obtain base certification, a data center operator must commit, through the application process with the office, to making a $250 million minimum capital investment in data center facility construction and equipment within 5 years, creating 25 full-time jobs that satisfy specified criteria, and breaking ground on the data center project within 5 years of obtaining base certification;
• In addition to the investment and job creation requirements, to obtain base certification a data center operator must also commit to implementing basic grid support capabilities, obtaining certification under one of several energy efficiency standards, implementing water stewardship strategies that optimize operational water management, sourcing at least 50% of the data center project's energy consumption from renewable and clean sources, supporting clean integration by implementing energy storage solutions that align with the data center project's needs and operations, agreeing to certain post-certification requirements, and agreeing to submit annual compliance reports to the office;
• A data center operator must apply to the office, in a form and manner to be determined by the office, for base certification before taking action to satisfy any of the eligibility criteria;
• The office is required to review a data center operator's application for base certification and award base certification to data center operators that have demonstrated that they will satisfy the base certification criteria;
• A data center operator that obtains base certification for a data center project is eligible for a 100% sales and use tax exemption on the purchase, use, and storage of information technology infrastructure, data center infrastructure, and electrical grid enhancement equipment (qualified purchases) for 20 years from the date that the data center project was certified, so long as the data center project satisfies ongoing compliance requirements; and
• In addition to the sales and use tax credit, a data center operator that obtains base certification for a data center project is eligible for standard utility rate incentives as negotiated between the data center operator and the utility.

The second level of data center certification created in the bill is enhancement certification. A data center operator that has obtained base certification for a data center project may apply for enhancement certification for the same data center. In connection with enhancement certification, the bill specifies that:

• To obtain enhancement certification, a data center operator must invest a minimum of $10 million in grid enhancement and modernization, invest in workforce development or other community benefit programs, agree to certain post-certification requirements, and agree to submit annual compliance reports to the office;
• A data center operator must apply to the office, in a form and manner to be determined by the office, for enhancement certification either before or after making the required minimum grid enhancement and modernization investment;
• The office is required to review a data center operator's application for enhancement certification and award enhancement certification to data center operators that have demonstrated that they will satisfy the enhancement certification criteria;
• For income tax years commencing on or after 2026, a data center operator that obtains enhancement certification for a data center project is eligible for an income tax credit in an amount equal to 10% of the amount of any grid enhancement and modernization investment made by the data center operator and an additional amount equal to 5% of the amount of such investment if the investment is made in a rural area (grid enhancement credit);
• A data center operator is not eligible to claim the grid enhancement credit until the data center operator has made the required minimum grid enhancement and modernization investment; and
• In addition to the grid enhancement credit, a data center operator that obtains enhancement certification for a data center project is eligible for enhanced utility benefits as negotiated between the data center operator and the utility.

Before submitting an application for certification for a data center project, a data center operator is required to conduct and document a preliminary consultation with the utility that will provide electricity for the data center project regarding interconnection feasibility, capacity, and infrastructure requirements and obtain a written feasibility assessment from the utility. A data center operator is required to include the documentation of the consultation and the written feasibility assessment with an application to the office for certification of the data center project, and, if the data center project includes projects requiring review by the public utilities commission (commission), the commission is required to review specified aspects of the application.

A certified data center project that necessitates a new customer load or co-located customer load that satisfies certain criteria (emerging new load) is eligible for targeted resource acquisition if the data center operator satisfies specified requirements. The bill specifies a process by which a utility regulated by the commission may submit a resource acquisition application to the commission to meet emerging new load needs. The bill also specifies how a utility may finance resources and infrastructure needs in connection with emerging new loads.

After achieving base certification and enhancement certification, a data center operator may apply to the office for certain benefit extensions for the sales and use tax exemption allowed to data center operators that have obtained base certification, for the grid enhancement credit allowed to data center operators that have obtained enhancement certification, and for the utility benefits negotiated between the data center operator and the utility.

If the office determines that a data center operator is not fulfilling its obligations and commitments to retain base certification or enhancement certification, the office is required to revoke the certification and the data center operator is required to repay the state for the tax benefits that it received.

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

Fiscal Note