The act requires a subject jurisdiction to, on or after December 31, 2027, subject to an administrative approval process, allow the construction of a residential development on a qualifying property that does not contain an exempt parcel; except that, if on December 31, 2027, a subject jurisdiction is actively in the process of updating the subject jurisdiction's zoning or development code to comply with the act, the subject jurisdiction is required to complete the updates and allow the construction of a residential development on a qualifying property that does not contain an exempt parcel by June 30, 2028. A qualifying property is real property that contains no more than 5 acres of land and is owned by:

• A school district;
• A state college or university;
• A board of cooperative services;
• A housing authority;
• A local or regional transit district or a regional transportation authority serving one or more counties;
• A nonprofit organization with a demonstrated history of providing affordable housing; or
• A nonprofit organization that has entered into an agreement with another nonprofit organization with a demonstrated history of providing affordable housing, provided that the agreement requires the nonprofit organization with a demonstrated history of providing affordable housing to develop a residential development on the property.

     If a subject jurisdiction requests, as part of an initial development application, that a nonprofit organization with a demonstrated history of providing affordable housing provide documentation that the nonprofit meets required criteria, the nonprofit organization shall provide the documentation. A subject jurisdiction is not required to allow a residential development on a qualifying property if the subject jurisdiction implements a transferable development rights program on the qualifying property and if the transferable development rights program includes a policy for affordable resident housing that is restricted in ownership and occupancy in perpetuity.

     A subject jurisdiction shall not:

• Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development is no more than 3 stories or 38 feet tall, except in certain circumstances;
• Disallow construction of a residential development on a qualifying property on the basis of height if the tallest structure in the residential development complies with the height requirements of the zoning district in which the residential development will be built or the height requirements that apply to any parcel zoned to allow for residential development that is contiguous to the qualifying property on which the residential development will be built;
• Disallow construction of a residential development on a qualifying property based on the number of dwelling units the residential development will contain, except in accordance with standards listed in the act; or
• Apply site design standards to a residential development on a qualifying property that are more restrictive than the site design standards the subject jurisdiction applies to similar housing constructed within the subject jurisdiction, including standards related to structure setbacks from property lines; lot coverage or open space; on-site parking requirements; numbers of bedrooms in a multifamily residential development; on-site landscaping, screening, and buffering requirements; solar access; minimum dwelling units per acre; or other objective setback standards that apply to residential dwellings, including setbacks from oil and gas facilities, oil and gas operations, stream corridors, riparian areas, wetlands, and sensitive wildlife habitats.

     Provided that the uses are allowed conditionally or by right within the zoning district in which a qualifying property is located, a subject jurisdiction shall allow the following uses in a residential development on a qualifying property:

• Child care; and
• The provision of recreational, social, or educational services provided by community organizations for use by the residents of the residential development and the surrounding community.

     On or before December 31, 2027, the department of local affairs is required to publish guidance to assist subject jurisdictions in verifying the status of a nonprofit organization with a demonstrated history of providing affordable housing.


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

     The act makes the following changes to the 'Labor Peace Act':

• Specifies that employees' right to bargain collectively includes the right to bargain collectively concerning any mandatory subject of bargaining;
• Eliminates the requirement for a second election to negotiate a union security agreement clause in the collective bargaining process;
• Declares that it is not an unfair labor practice for an employer to refuse to agree to a lawful proposal made by the exclusive representative of the employees, or for the exclusive representative of the employees to refuse to agree to a lawful proposal made by the employer, concerning a mandatory subject of bargaining if the refusing party has bargained in good faith with the other party; and
• Requires employers and employees, through their exclusive representative, to bargain in good faith.
  
  (Note: This summary applies to this bill as enacted.)

     On or before December 31, 2027, the act requires the department of higher education (department) to establish thriving institution designations and, on or before January 1, 2027, to establish an advisory committee to provide input to the department on the outcome and recognition standards and continuous improvements set by the department to identify institutions of higher education (institutions) that meet the requirements for one or more thriving institution designations.

     The act requires the department, with input from the advisory committee, to:

• Identify institutions that meet the outcome and recognition standards to be designated as a thriving institution;
• Notify each institution that meets the outcome standards to be designated as a thriving institution and request the institution to respond within 10 calendar days with the institution's decision of whether to be recognized as a thriving institution;
• Post on the department's website the names of the institutions that earn a thriving institution designation and agree to be listed as a thriving institution; and
• Notify the general assembly of the names of the institutions that are recognized as thriving institutions.
  
  (Note: This summary applies to this bill as enacted.)

     The act increases participation, representation, and support for individuals 55 years old or older in the Colorado workforce and in organizations related to employment and the workforce by:

• Beginning in 2027, requiring the state work force development council (council), the Colorado commission on the aging, and other entities to meet twice a year, collect data, and work collaboratively on issues related to individuals in the workforce who are 55 years old or older;
• Beginning in 2028, and each year thereafter, requiring the department of labor and employment and the department of human services to jointly submit a report compiling the data collected by the council, the Colorado commission on the aging, and other entities to the general assembly and requiring the department of labor and employment, during the department's annual 'SMART Act' hearings, to summarize the report to certain legislative committees; and
• Requiring that the council, the commission on higher education, and the advisory committee to the commission on higher education, or their successor entities, each have at least one member serving on their governing entity that is at least 55 years old and either is actively involved in or has interest, knowledge, or experience in advocating for the interests of individuals who are 55 years old or older as related to the functions of each entity.
  
  (Note: This summary applies to this bill as enacted.)

In 2025, the general assembly enacted House Bill 25-1090, which requires clear and conspicuous disclosures regarding the maximum total price charged for goods, services, and property. The bill adds a requirement that a person selling goods for delivery must disclose, at the point of sale, a comparison of the total price for the delivered goods and the total price for the goods available for purchase on site at a store.

The bill also prohibits a person from charging unreasonably excessive prices to a captive consumer and defines "captive consumer" as a consumer who is at a location at which a seller of ancillary goods or services does not have competitors regarding the ancillary goods or services being sold. A person that charges unreasonably excessive prices to a captive consumer engages in an unfair or deceptive trade practice in violation of the "Colorado Consumer Protection Act".

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

     Under current law, the Colorado job growth incentive tax credit (credit) may only be allowed by the economic development commission (commission) through state income tax year 2026. The act amends the Colorado job growth incentive tax credit to authorize the commission to allow new credit awards through state income tax year 2034. The act also extends the commission's annual reporting requirement through September 1, 2042.


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

The bill creates the data center development and incentive program (program) operated by the Colorado data center development authority (authority), which is newly created in the Colorado office of economic development (office) ( section 1 of the bill). The authority consists of 9 members, as follows:

• 2 members appointed by the governor with the consent of the senate;
• The director of the Colorado energy office or the director's designee;
• One member who has experience in water projects or water resource management, appointed by the president of the senate;
• One member who has experience in clean and renewable energy, appointed by the speaker of the house of representatives;
• 2 members who have experience in data center development, with one member appointed by the speaker of the house of representatives and one member appointed by the president of the senate;
• One member representing a statewide organization that represents workers in trade crafts who construct data centers, appointed by the speaker of the house of representatives; and
• One member representing a statewide organization that represents contractors who construct data centers, appointed by the president of the senate.

To incentivize efficient data center development, the program allows a 100% state sales and use tax exemption on qualified purchases to the operator of a certified data center. To be eligible for certification, the operator of the data center, or a data center operator collectively with participating data center tenants, must:

• Have initiated a preliminary consultation with the utility that will provide electricity for the data center project regarding interconnection feasibility, capacity, and infrastructure requirements;
• Commit to making a $250 million minimum investment in data center infrastructure within 5 years;
• Commit to creating new full-time jobs, including employees and long-term service and maintenance positions, that satisfy specified criteria and breaking ground on the data center project within 2 years of obtaining certification;
• Commit to complying, and ensure that the utility that provides electricity to the data center also complies, with craft labor requirements, apprenticeship utilization requirements, and prevailing wage requirements; and
• Commit to obtaining certification under one of several energy efficiency standards, implementing water stewardship strategies that optimize operational water management, ensuring that all backup power generation associated with the data center project meets specified requirements, and consulting with the department of natural resources.

To obtain certification, a data center operator must apply to the authority in a form and manner to be determined by the authority. The authority is required to review a data center operator's application for certification and may award certification to a data center operator that has demonstrated that it will satisfy the certification criteria ( section 1 ).

A data center operator that obtains certification for a data center project is eligible for a 100% state sales and use tax exemption on the purchase and use of qualified data center infrastructure and systems for 20 years from the date that the data center project was certified, so long as the data center satisfies ongoing post-certification requirements and submits annual compliance reports to the authority. As long as the data center meets post-certification requirements as demonstrated in the annual compliance reports, a data center operator of a certified data center may apply to the authority for an extension of the sales and use tax exemption for an additional 10 years. If the authority determines that a data center operator is not fulfilling its obligations and commitments to retain certification, the authority may revoke the certification and the data center operator is required to repay the state for the sales and use tax benefits that it received ( sections 1 and 5 ). The exemption for a certified data center does not apply to local sales and use taxes unless the exemption is expressly included at the time of adoption or amendment of the local sales tax ordinance or resolution ( section 4 ).

The bill allows a utility regulated by the public utilities commission (commission) to submit a targeted resource acquisition application to the commission to propose methods of meeting emerging large-load customer needs. The bill also specifies how a utility may finance resource and infrastructure needs in connection with emerging large-load customers ( section 3 ).
(Note: This summary applies to this bill as introduced.)

     The act prohibits a person from:

• Identifying an agricultural product as being produced in the state when selling, marketing, advertising, or distributing the product unless the product is grown in the state; and
• Using the Colorado proud designation or logo unless authorized by the department of agriculture.

     A violation of these prohibitions constitutes a deceptive trade practice. There is no private right of action to enforce a violation of the prohibitions.


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

     The act expands the 'Colorado Cottage Foods Act' (CCFA) by allowing for the sale of homemade foods that require refrigeration and foods that include meat and meat products. A producer of a food (producer) that requires time and temperature control must take a food safety course that includes food handling training concerning time and temperature control and acquire and maintain proof of course completion.

     A producer selling products that require time and temperature control for safety may sell one type of such food product, with the ability to offer up to 5 variations of that one type of food product. The producer must specify the individual food products that require time and temperature control for safety and provide a list of such food products to the department of public health and environment (department) or a county, district, or regional health agency (public health agency) upon request.

     A producer selling products under the CCFA is required to register with the department before selling. The department must issue a registration number to each producer and maintain an electronic registry of producers. A producer may earn up to $150,000 of net revenues under the CCFA each calendar year, increased from $10,000 . The department is required to adjust this cap annually for inflation.

     The act authorizes a public health agency that inspects or investigates homemade food products produced pursuant to the CCFA to impose a fine for a violation of the requirements of the CCFA and to recover the cost of the inspection or investigation. If a public health agency determines that, on 3 separate occasions within 12 months, a producer has misbranded food that requires time and temperature control for safety or failed to comply with requirements related to food that requires time and temperature control for safety, the producer shall not sell foods that require time and temperature control.

     The act creates the cottage foods cash fund (cash fund) and transfers $300,000 into the cash fund ($200,000 from the medication administration cash fund and $100,000 from the assisted living residence cash fund). The act also appropriates $119,354 to the department to implement the act.


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

The bill authorizes a county or municipality (local government), after approval by the electors of the local government, to impose an excise or a property tax, or both, on vacant residential properties within the boundaries of the local government (local taxes on vacant residential properties) ( sections 1 and 3 of the bill). A local government may use the revenues collected from either tax only for affordable, attainable, or workforce housing. A county assessor has no duty in implementing local taxes on vacant residential properties, but in an assessor's discretion, the assessor may assist by providing data and information to a local government or local housing tax authority, and may enter into an intergovernmental agreement that provides for compensation in exchange for the assessor's assistance.

The bill also creates a process for the creation of a local housing tax authority (authority) by intergovernmental agreement to allow 2 or more counties, cities and counties, or municipalities to form a joint taxing authority to collectively establish, levy, collect, and enforce local taxes on vacant residential properties within the boundaries of the authority ( section 2 ).
(Note: This summary applies to this bill as introduced.)

      Under current law, certain boards of county commissioners must appoint county commissioner redistricting commissions to adopt plans to divide the relevant counties into as many county commissioner districts as there are county commissioners elected by voters of their district (plan). The act requires these boards of county commissioners to appoint independent county commissioner redistricting commissions (commissions), modifies the criteria for who may serve on these commissions, allows these boards of county commissioners to remove members from the commission for cause, allows these boards of county commissioners to direct a commission to modify a proposed plan under certain conditions, and requires these boards of county commissioners to adopt a final plan that was one of the final plans approved by a commission.

     The act also removes the role of advisory committees in the process of adopting a plan and divides that role among staff and the commissions. The act expands the definition of staff to include contractors and explicitly excludes the county clerk and recorder or their employees from acting as staff unless expressly agreed to in writing. The act explicitly allows any qualified elector of a county to challenge the adoption of a plan by an action in the district court.

     Further, the act requires a commission to adopt a composite formula to generate a competitiveness measure expressed as a percentage of county commissioner district competitiveness and to use that measure, and any other measure of competitiveness adopted by the commission, in determining highly competitive and moderately competitive county commissioner districts.

     The act applies to the adoption of a county commissioner district redistricting plan that occurs after the effective date of the act.


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

     Under current law, the public utilities commission (commission) may assess a civil penalty in an amount up to $550 against a transportation network company (TNC) if the TNC had written notice of a TNC driver's violation of certain prohibitions against discriminating against riders and the TNC failed to reasonably address the violation. Additionally, a driver is required to report to the TNC any refusal by the driver to provide services to a rider, and the TNC is required to annually report all such refusals to the commission.

     The act removes the condition that a TNC first have written notice of a driver's violation of the discriminatory prohibitions before a civil penalty may be assessed against the TNC, increases the maximum civil penalty to $1,300, and requires the commission to consider certain mitigating and aggravating factors in determining whether to assess a civil penalty and the amount of a penalty assessed. The act also requires:

• A TNC to mandate and provide education to drivers concerning the transportation of riders with service animals;
• A TNC to provide monthly, rather than annual, reporting to the commission regarding drivers' refusal to provide services;
• A TNC to provide a mechanism to allow a consumer to report a driver's refusal to provide transport to the consumer directly on the TNC's digital platform, which information must be included in the TNC's monthly report; and
• The commission to aggregate and anonymize the TNCs' monthly reports and make the anonymized reports available to the public.
  
  (Note: This summary applies to this bill as enacted.)

      Section 1 of the bill requires an employer to ensure the employer's workplace is free from recognized hazards, as interpreted consistent with the federal occupational safety and health administration's interpretation of the general duty clause of the 'Occupational Safety and Health Act of 1970' (OSH Act) as of September 1, 2025. Additionally, employers have the general duty to:

• Ensure that each workplace is constructed, equipped, arranged, operated, and conducted as to provide reasonable and adequate protection to the lives, health, and safety of all individuals employed or working in the workplace; and
• Comply with standards for workplace health and safety adopted by rule by the division of labor standards and statistics in the department of labor and employment (division) attorney general.

     The bill authorizes the following actions to address workplace health and safety concerns:

• The attorney general or the division may refer workplace health and safety concerns to relevant state or local authorities;
• The attorney general, the division, a labor organization, a worker organization, or a person aggrieved by a violation of the bill may file a civil action;
• For each violation of the bill or of rules adopted pursuant to the bill, a court may order the person an employer that violates the bill or rules to pay statutory damages to a person aggrieved by the violation; and
• A court may order a person an employer that violates the bill or rules adopted pursuant to the bill to pay a penalty to the attorney general for each violation.

     The bill creates the workplace health and safety fund (fund) into which penalties collected pursuant to the bill are credited. The money in the fund may be used by the division attorney general for specified purposes.

     The bill authorizes the division attorney general to adopt rules:

• To replace any requirement of the OSH Act or the 'Federal Mine Safety and Health Act of 1977' that is repealed or revoked; or amended in any manner that results in the federal protections of workers' rights or worker safety becoming less stringent; and

       

• To define standards for workplace health and safety if there is no standard in effect under the OSH Act; and
• As necessary to implement the bill.

      Section 2 authorizes the attorney general to apply to the appropriate district court for an order for specified relief if a person fails to obey an investigative demand, subpoena, warrant, or other investigative process related to worker and employee protection.

      Sections 2 3 through 8 11 make conforming amendments.

(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.)

     The act allows off-campus courses to be included in concurrent enrollment programs when the off-campus courses meet the requirements for concurrent enrollment programs and the requirements of an accrediting agency recognized by the United States department of education.

     The act provides that additional concurrent enrollment courses shall not be approved after July 1, 2028 unless the general assembly indicates in a footnote in the general appropriations act that the department of education (department) has sufficient funding for course and audit oversight requirements to allow approval of additional concurrent enrollment courses.

     For the 2026-27 state fiscal year, the act appropriates $66,056 from the general fund to the department and reduces the general fund appropriation for the college opportunity fund program by $80,178 with a corresponding decrease in reappropriated funds for the regents of the university of Colorado.


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

     The act authorizes the secretary of state (secretary) to:

• Mark as void or remove from the system an entity filing and adjust the entity's status if an electronic payment for the entity filing fee is reversed or is not completed; and
• Mark a business record with a notice that an entity has received a complaint or is under investigation without referring a complaint about the entity to the attorney general if the secretary receives a notice from the attorney general that the entity being listed as the registered agent was created or registered without authorization or for fraudulent purposes.

     The act prohibits using a fraudulent entity as a registered agent in a business entity filing.

     Colorado law provides an administrative process for determining if an entity filing is made fraudulently or otherwise violates the law when a complaint is made (violation). When a complaint is filed, the secretary may note on the entity's records a notice of the complaint and investigation. If such a determination is made, the entity filings may be canceled and the filers penalized. The procedures require the attorney general to notify the entity's registered agent. If the entity does not reply, the complaint is deemed to be conceded. The act:

• Authorizes the attorney general to provide written notice to any other point of contact that the attorney general determines through investigation to be a means to reach the entity, if the address of the registered agent is the same as the address of the complainant;
• Repeals a requirement that a second 21-day notice be mailed before the complaint is deemed to be conceded;
• Authorizes a person that is injured by a violation to bring an action to dissolve the entity; and
• Authorizes the secretary to take certain actions against another entity that also uses the same fraudulent or unauthorized entity as its registered agent.

     Under current law, actions to dissolve an entity must be brought in the district court for the county where the entity's principal office is located; if the entity has no principal office in this state, where the registered agent is located; or, if the entity has no registered agent, in Denver. The act authorizes the action to be brought in Denver when the dissolution is based on a fraudulent filing.

     The act also sets up a procedure through which, if the secretary has a reasonable basis to believe that a record is fraudulent or unauthorized based on the response or failure to respond to an interrogatory, the secretary may:

• Mark the record with a notice that the record is unauthorized or fraudulent and declare the entity delinquent;
• Redact the unauthorized address or name from the record and from any other relevant records;
• Disable filing functionality on the entity's records; and
• Proceed with administrative procedures.

     A person aggrieved by any of these actions may request the secretary to reverse the actions taken. If the secretary denies the request, the aggrieved person may seek judicial review in Denver.

     To implement the act, $193,954 is appropriated from the department of state cash fund to the department of state.


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

     

The bill limits the number of forcible entry and detainer (eviction) actions that a county court schedules on one business day.

     

The bill prohibits including a minor defendant as a named defendant in an eviction complaint when a parent or adult guardian is also listed as a defendant on the same complaint.

     

The bill prohibits a court from entering judgment without a trial or a hearing when a tenant's answer to an eviction complaint expresses an intent to cure nonpayment.

     

The bill specifies that the following reasons excuse a tenant from filing a timely written answer to an eviction complaint: A hospitalization, a sickness or injury, a reasonable accommodation request for a disability, a lack of proper service, a transportation issue, a complication related to electronic filing that was reasonably outside of the tenant's control, and a court issue that was reasonably outside of the tenant's control.

     

When a tenant in an eviction action asserts that they were affected by one of the specified reasons, the bill requires a court to:

• Relieve a tenant from final judgment, vacate any judgment or writ of restitution that was issued, and provide the tenant with a reasonable amount of time to file an answer;

• Permit additional and amended pleadings; and

• Extend the trial date.

     

The bill repeals appeals bond in eviction cases.

     

The bill extends the time for executing a writ of restitution in an eviction action from 48 hours to 30 days, except in cases involving substantial violations.

     

The bill prohibits the execution of writs in eviction actions during inclement weather.

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

      Section 2 of the bill allows local governments and certain special districts authorized to impose property taxes (local taxing entities) to tax certain land and improvements thereon at different mill levy rates, provided that the mill levy rate for the improvements is less than or equal to the mill levy rate for the land. A local taxing entity may not impose different mill levy rates for agricultural land, land used for renewable energy production, land subject to a perpetual conservation easement, leaseholds and lands producing oil or gas, producing mines or nonproducing mining claims, or state-assessed land. Nothing in section 2 allows a local taxing entity to impose property taxes on the assessed value of land and the assessed value of improvements thereon at different mill levy rates in a manner that is not consistent with section 20 of article X of the state constitution or any statutory limitation on the local taxing entity's mill levy rates or total property tax revenue.

      Section 3 requires boards of county commissioners and other local taxing entities to include with their certifications of all property tax levies the individual certification of any local taxing entity required by section 5 regarding the different mill levy rates used for land and improvements thereon by the local taxing entity.

      Section 4 updates the tax and levy rate information required to be made publicly available to include the specific, different mill levy rates used for land and improvements thereon, if applicable.

      Section 5 modifies the duty of local taxing entities to certify their property tax levy to the board of county commissioners to require any local taxing entity that imposes property taxes on the assessed value of land and the assessed value of improvements thereon at different rates, as allowed by section 2 , to specify those mill levy rates in the local taxing entity's certification of its levy.
(Note: This summary applies to this bill as introduced.)

     

Beginning January 1, 2028, the bill requires a person that owns, leases, operates, controls, or supervises a building, structure, facility, or installation that emits or may emit an air pollutant (owner or operator) to make all emissions records that the owner or operator is required by state or federal law to maintain (records) publicly available and accessible on the owner or operator's public website. Except in certain circumstances, the owner or operator is required to update the records following the same schedule as the records are made available to the state or the United States. These requirements apply only to records that are generated on or after December 1, 2027.
(Note: This summary applies to this bill as introduced.)

     The act creates the retail theft prevention advisory board (advisory board) in the division of criminal justice in the department of public safety (division). The advisory board shall develop procedures related to applying for a grant for the retail theft prevention grant program created in the act; review grant applications and award grants; collect and analyze data related to organized felony-level retail theft and gift card fraud trends, losses, prosecutions, and outcomes in Colorado; and develop policy recommendations in coordination with state and federal partners on how to combat felony-level retail theft and gift card fraud.

     The act creates the retail theft prevention grant program in the division. A state or local law enforcement agency, district attorney's office, multijurisdictional or regional task force, or tribal law enforcement agency may apply for a grant, which may be used to investigate and prosecute organized felony-level retail theft or gift card fraud; develop or invest in technology, data-sharing systems, and analytics tools to analyze felony-level retail theft and gift card fraud metrics; provide training and technical assistance to retailers or law enforcement agencies; and develop prevention and deterrence initiatives specific to felony-level retail theft and gift card fraud.

     Beginning January 2028, the act requires the division to annually report during its 'SMART Act' hearing certain information about the retail theft prevention grant program and felony-level retail theft in Colorado.

     The act extends the crime prevention through safer streets grant program (safer streets grant program) to November 1, 2029, and makes the retail theft prevention grant program an allowable use of the money appropriated for the safer streets grant program. On July 1, 2027, $200,000 of the unexpended and unencumbered money remaining at the end of the 2026-27 state fiscal year from the money appropriated for the safer streets grant program reverts to the general fund.


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

     On and after January 1, 2027, when determining coverage for health-care services, the act requires entities that use an artificial intelligence system (AI system) for the purpose of conducting utilization review of health-care services, including health insurance companies (carriers), pharmacy benefit managers, private utilization review organizations, behavioral health administrative services organizations, and managed care entities (entities), ensure that the AI system complies with certain requirements specified in the act. Specifically, an entity shall ensure that the AI system:

• Makes determinations based on medical or clinical history, the patient's individual clinical circumstances, and other relevant clinical factors specified in the act, with denial of coverage reviewed by a licensed clinician or physician or other competent regulated professional who is competent to evaluate the specific clinical issues and review the health benefit plan's terms of coverage (competent regulated professional);
• Does not base its determination solely on group data without reference to the individual's data;
• Is not used in any way that discriminates against individuals in violation of other state or federal laws and is fairly and equitably applied, including in accordance with regulations and guidance issued by the federal department of health and human services; and
• Is periodically reviewed to ensure the AI systems outcomes are accurate and reliable and that an individual's health data is not used beyond its intended or stated purpose.

     Entities that use AI systems shall disclose to the division of insurance, the department of human services, or the department of health care policy and financing, as applicable, the utilization review functions for which the AI system will be used and the points in the utilization review process when it will be used, the process for human oversight of adverse coverage determinations, and the process for maintaining audit information to ensure that the use of the AI system complies with the requirements in the act.

     The AI system may be used to assist in utilization review, including expedited approvals. A carrier's denial of coverage for a service based in whole or in part on medical necessity shall not be issued solely on the output of an AI system without human review by a licensed clinician or physician or other competent regulated professional.

     Further, the act prohibits a carrier and a payer of services under the 'Colorado Medical Assistance Act' and the 'Children's Basic Health Plan Act' from paying for psychotherapy services that are provided directly to a client and that are conducted by an AI system.


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

     The act requires an entity that requires an individual to provide a social security number for a background check for a non-employment-based educational opportunity to accept an individual's taxpayer identification number in lieu of a social security number, including in clinical educational experiences for health-related academic programs, subject to certain exceptions.

     A licensed or certified hospital or covered school, or a state institution of higher education or local district college that offers a non-employment-based educational opportunity that involves work with a vulnerable population, shall accept either an applicant's taxpayer identification number or a fingerprint-based background check in lieu of a social security number.

     An applicant for a non-employment-based educational opportunity that involves work with a vulnerable population at a licensed or certified hospital or covered school, or a state institution of higher education or local district college, is permitted to have their fingerprints taken by a local law enforcement agency or an entity approved by the Colorado bureau of investigation for taking fingerprints for the purpose of a background check. A licensed or certified hospital or covered school, or state institution of higher education or local district college, must determine who pays the fee for the fingerprint-based background check.

     The attorney general is authorized to bring a civil action to enforce the provisions of the act. An entity that violates this act is subject to a civil penalty of $2,000 for the first violation and $5,000 for each subsequent violation.


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

The bill creates an expanded sales room permit, which authorizes a manufacturer, limited winery, or wholesaler that manufactures beer (producer) to:

• Operate a restaurant at the producer's sales room; or
• Sell or provide alcohol beverages that are not manufactured by the permit holder by the drink for consumption at the sales room if the alcohol beverage is a craft product.

A producer must obtain a separate expanded sales room permit for each location. To obtain an expanded sales room permit, a producer must apply to the state licensing authority. To operate an expanded sales room, the producer must:

• Have sandwiches and light snacks available for consumption on the premises; and
• Not sell at the sales room the authorized alcohol beverages in an amount in excess of 50% of the total sales of alcohol beverages.

The state licensing authority will establish the application fee for an expanded sales room permit.

The bill authorizes a vintner's restaurant licensee to sell and ship wine directly to an individual who has joined a winery club. To create a winery club, the vintner's restaurant licensee must obtain and retain, for as long as the club is active, each member's name, address, and age and a record of how the member's age was verified. To join a winery club, an individual must apply to the vintner's restaurant that created the winery club. To ship wine to an address, a vintner's restaurant licensee must verify the recipient is a member of the club and that the delivery address is the same address on file for the member.

Under current law, a distillery pub licensee may sell its spirits at wholesale in an amount up to 2,700 liters per product per year. The bill raises the limit to 8,100 liters per product per year.

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

     Surveillance data is defined in the act as data that is obtained through observation, inference, or surveillance of consumers or workers and that is related to personal characteristics, online behaviors, or biometrics of an individual or group, band, class, or tier to which the individual belongs. The definition of 'worker' in the act excludes federal and state employees and employees of public entities.

     The act prohibits discrimination against a consumer or worker resulting from the use of a price or wage setting algorithm (PWSA) that uses statistical modeling, data analytics, artificial intelligence, or other data processing techniques to analyze surveillance data, the output of which is a substantial factor in:

• Individualized price setting used to determine the amount charged to a consumer; or
• Individualized wage setting used to determine the wage offered to a worker.

     The act specifies activities that are not individualized price or wage setting, as well as exemptions from the prohibition on price or wage setting. A person has not engaged in individualized price setting if the person can demonstrate, as described in the act, that differential prices are:

• Based on differences in the cost in providing a good or service to different consumers, such as delivery distance or temporal differences, such as ride or delivery time;
• Based on publicly disclosed eligibility criteria to all persons that meet the criteria, such as consumers purchasing in volume, or to all members of a broadly defined group of consumers, such as teachers;
• Afforded on equal terms to all participants in a loyalty, membership, or rewards program or are offered in response to a consumer complaint, service disruption, request for account cancellation, or similar reason;
• Offered pursuant to a specified needs-based discount program for reduced pricing related to income or financial need, such as hospital discounted care;
• Based on a subscription or other continuous agreement that includes a monthly or other recurring price that was not informed by a PWSA; or
• Based on a refusal to extend credit on specific terms or to enter into a financial transaction based on a consumer's data in a consumer report or data required as part of the application for the financial transaction.

     A person has not engaged in individualized wage setting if the person can demonstrate, as described in the act, that the person offers individualized wages based solely on data specific to an individual worker that is directly related to worker seniority or the tasks the worker was required to perform, and the person discloses to the worker before hiring, and to all workers whose wages are set in whole or in part by a PWSA, what data is considered and how the PWSA considers the data.

     A person that uses a PWSA shall develop and publish reasonable procedures to ensure the accuracy of all data considered by the PWSA, for workers to request and receive information about what data is collected, and to correct or challenge data considered by a PWSA.

     A violation of the prohibition against individualized price or wage setting is a deceptive trade practice under the 'Colorado Consumer Protection Act' and is subject to the enforcement provisions and remedies provided in that act.


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

     The bill adjusts 3 2 existing tax expenditures.

     

• Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026;
• Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and
• Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.

      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .

(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.)

     Recent changes to the federal income tax code significantly increased the amount of business-related expenses that may be deducted for federal income tax purposes as follows:

• Expanded the business interest deduction limitation pursuant to section 163 (j) of the internal revenue code (IRC) by adding back depreciation, amortization, and depletion for calculation of adjusted taxable income and determination of the deduction base, resulting in many taxpayers, especially capital intensive businesses, being able to deduct a larger portion of their business interest expense;
• Expanded the bonus depreciation deduction pursuant to section 168 (k) of the IRC by permanently restoring the 100% first-year bonus depreciation deduction for 'qualified property' acquired and placed in service on or after January 20, 2025;
• Created an elective 100% depreciation deduction in section 168 (n) of the IRC for 'qualified production property', which is property largely tied to manufacturing, production, or refining facilities and that would not otherwise qualify for section 168 (k) bonus depreciation; and
• Created a new section 174A of the IRC that allows taxpayers to immediately deduct domestic research and experimental expenditures paid or incurred during the taxable year, rather than requiring such costs to be capitalized and amortized over time.

     Because the state income tax is imposed on federal taxable income, these changes to the definition of federal income also exclude these business-related expenses from state income taxation. The bill reverses these changes to the federal tax code for purposes of the state income tax code and creates a new tax credit using the resulting revenue.

      Sections 2 and 4 of the bill provide, for income tax years commencing on or after January 1, 2027, that individual and corporate state income taxpayers must add the following to their federal taxable income for purposes of applying the state income tax:

• An amount equal to the federal deduction claimed by the taxpayer for business interest pursuant to the limitation in section 163 (j) of the IRC to the extent the amount exceeds the amount the taxpayer would have been allowed to claim before the limitation was changed as described above;
• An amount equal to the federal deduction claimed by the taxpayer for qualified property depreciation pursuant to section 168 (k) of the IRC to the extent the amount claimed exceeds the amount the taxpayer would have been allowed to claim under section 168 (k) prior to the change described above; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal changes;
• An amount equal to the federal deduction claimed by the taxpayer for qualified production property depreciation pursuant to section 168 (n) of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal change; and
• An amount equal to the federal deduction claimed by the taxpayer for the income tax year for domestic research and experimental expenditures pursuant to section 174A of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of the deduction the taxpayer would have been allowed to claim for the taxable year with respect to the same research and experimental expenditures pursuant to section 174 of the IRC prior to the recent federal changes.

      Sections 2 and 4 allow taxpayers who are required to make additions to their federal taxable income pursuant to the new provisions to subtract the amounts of their disallowed federal deductions over time, starting in income tax years commencing on or after January 1, 2028, using time periods that reflect how the property or expense would have been treated prior to the recent changes to the federal tax code. If the amount of the allowed subtraction exceeds the taxpayer's federal taxable income, the excess amount not subtracted may be carried forward for up to 10 years.

      Section 3 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2 and 4.

(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.)

     The act creates and allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised by the repeal of the downloadable software sales and use tax exemption elsewhere in the act.

     Beginning January 1, 2027, the act repeals the downloaded software sales and use tax exemption so that all software that is available for repeated sale and license qualifies as tangible property and thus is subject to sales and use tax. The act exempts from sales and use tax downloaded software governed by a negotiable license agreement or developed for use by a particular user.

     For each July, August, November, and December in 2027 and 2028, the act allows a qualifying retailer in the food or drink industry to deduct from state net taxable sales the lesser of state net taxable sales or $14,000.

     Currently, 15% of the net revenue collected as sales and use tax is credited to the general fund, less 1.655% (allocation percentage), which is credited to the housing development grant fund. Beginning January 1, 2027, and until December 31, 2028, the act reduces the allocation percentage to 1.629%. Beginning January 1, 2029, the allocation percentage is 1.625%.

     Beginning July 1, 2026, the act creates a sales and use tax exemption for a retailer selling food or drink (retailer) whose sales of prepared food exceed 25% of the retailer's sales revenue equal to 100% of the price the retailer paid for gas and electricity. A retailer whose sales of prepared food are 25% or less of the retailer's sales revenue is allowed a credit against the sales taxes otherwise due equal to 0.5% of the retailer's prepared food sales revenue.

     The repeal of the downloadable software sales and use tax exemption applies to the sale, storage, use, and consumption of tangible personal property on or after January 1, 2027.

     Provisions of the act are contingent upon House Bill No. 26-1221 and House Bill No. 26-1222 not becoming law.

     For the 2026-27 state fiscal year, the act appropriates $48,326 from the general fund to the department of revenue for tax administration system support and personal services.


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

     The act:

• Prohibits a provision in an arbitration agreement that requires an employee to an employer and employee contract or a consumer to a business and consumer contract to pay fees that substantially exceed the costs required to file a claim in state or federal court, except as preempted by federal law, and disallows the waiver of this prohibition;
• Prohibits an individual from serving as an arbitrator if the individual has a rule, policy, procedure, or demonstrated pattern of conduct that discriminates, or prevents, or has the effect of preventing, a certain party, type of party, or attorney from asserting the party's right in arbitration or bringing a claim in arbitration; and
• Requires a party to fully comply with requirements of a record of an award, within 120 days after the date of the award, or be liable for additional damages caused by their failure to comply.

     Under current law, exemplary damages are prohibited in arbitration proceedings. The act repeals this prohibition.


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

The bill creates three enterprises (enterprises) in the behavioral health administration; the:

• Beer, cider, and apple wine impact and recovery enterprise;
• Spirits impact and recovery enterprise; and
• Wine impact and recovery enterprise.

The enterprises collect a fee from licensees that are manufacturers and wholesalers that distribute alcohol in Colorado, and use the fee for services described in the bill.

The bill creates an alcohol impact and recovery enterprise board that governs the enterprises.

The bill requires the state auditor to conduct an audit of the enterprise in the 2032-33 state fiscal year and each fourth state fiscal year thereafter.

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

     The act requires the division of labor standards and statistics (division) in the department of labor and employment (CDLE), on or before January 15, 2027, to begin collecting data concerning temperature-related injury or illness or temperature-related emergencies at worksites and to:

• Develop a platform on CDLE's website where users can provide information about occurrences of temperature-related injury or illness or temperature-related emergencies;
• Obtain from the department of public health and environment (CDPHE) data that CDPHE has collected through its syndromic surveillance program regarding occurrences of heat-related injury or illness or heat-related emergencies; and
• Collect similar data from the division of workers' compensation and the Center for Improving Value in Health Care.

     On or before July 1, 2028, the act requires the division to develop a model temperature-related injury and illness prevention plan (TRIIPP) that thereafter must be made available on CDLE's website. Additionally, the act requires the division to review and update the model TRIIPP at least every 5 years and grants the division authority to adopt rules necessary to implement the act.

     $76,651 is appropriated from the general fund to the department for use by the division.


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

     The bill prohibits a transportation network company (TNC) from retaining more than 20% of a consumer fare paid for a driver's completion of a transportation task through the TNC's digital platform. 'Consumer fare' is defined in the bill as the amount a consumer pays for a transportation task, excluding tips, and pass-throughs such as payments for tolls, taxes, airport fees, and payments for a certified driver support organization . The amount that a TNC excludes from a consumer fare payment for a certified driver support organization must not exceed the per-task amount determined by rule and must be remitted to the certified driver support organization. Pass-throughs must be paid to the driver. A TNC is also not allowed to impose a fee on a TNC driver unless the amount of the fee plus the amount that the TNC retains from a consumer fare does not exceed 20% of the consumer fare.

      The bill adds disclosures regarding airport fees, pass-throughs, taxes, and payments for a driver support organization to be added to periodic disclosures TNCs make to the division of labor standards and statistics in the department of labor and employment and changes the frequency of the disclosures from semi-annual reporting to annual reporting.

      Finally, the bill applies the same process to complaints against TNCs concerning violations of disclosure and deactivation policy requirements as the process that is applied to wage complaints.

(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.)

     The act adjusts several state tax expenditures as follows:

• Requires the state treasurer to transfer $45.6 million from the general fund to the state highway fund on July 1, 2026, and $96.4 million on each July 1 from July 1, 2027, through July 1, 2031;
• Prohibits certain local use tax ordinances, resolutions, or proposals from applying to construction and building materials used by a common rail carrier pursuant to a contract with the state, a political subdivision of the state, or a special district allowing the contracting government to use the carrier's property or tracks for the provision of public passenger rail service;
• For income tax years commencing on and after January 1, 2027, requires a taxpayer to add to the taxpayer's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the gain invested by the taxpayer in a Colorado-qualified opportunity fund in a manner that qualifies for exclusion from federal gross income pursuant to the same section of the internal revenue code;
• For income tax years commencing on or after January 1, 2027, allows a combined group to elect to make a water's-edge filing election and describes what should be taken into account in such a filing;
• For income tax years commencing on and after January 1, 2027, requires a corporation to add to the corporation's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the amount of that gain invested in a Colorado qualified opportunity fund and the amount of any gain excluded from federal gross income as a result of an election made pursuant to section 1400Z-2(c) of the internal revenue code for amounts invested in a qualified opportunity fund that is not a Colorado qualified opportunity fund; allows a corporation to subtract from federal taxable income the amount of gain included in federal gross income pursuant to section 1400Z-2(b) of the internal revenue code to the extent that the gain was added to federal taxable income pursuant to the opportunity fund add-backs for a prior tax year; changes the definition of federal taxable income for a C corporation that is in a combined group; repeals the state corporate income tax deduction for wages or salaries paid that are not allowed to be deducted at the federal level pursuant to section 280C of the internal revenue code; and eliminates the ability of corporations to deduct from their income tax liability any amount included in federal taxable income pursuant to sections 951 (a) or 951A (a) of the internal revenue code with respect to a controlled foreign corporation incorporated in a foreign jurisdiction for the purpose of tax avoidance;
• Eliminates a potential reduction in the amount available for the heat pump technology and thermal energy network tax credit, for years following 2025 based on an economic forecast by the office of state planning and budgeting or legislative council staff;
• Increases the innovative motor vehicle tax credit from $1,000 to $2,000 for certain vehicles sold or leased during the 2027 income tax year, and from $500 to $1,000 for certain vehicles sold or leased during the 2028 income tax year, and provides that certain vehicles with an manufacturer's suggested retail price (MSRP) below $40,000 that are sold or leased on or after January 1, 2027, but before January 1, 2029, are eligible for the additional tax credit.
• Clarifies that a potential 50% reduction in the innovative motor vehicle tax credit and the innovative trucks tax credit, triggered by certain state revenue forecasts, applies to the income tax year;
• For income tax years commencing on or after January 1, 2027, modifies the income tax credit for wildfire hazard mitigation expenses by adding a definition of 'infestation mitigation measures' that includes the thinning of woody vegetation that is at risk of mountain pine beetle or spruce beetle infestation or that has been killed by mountain pine beetles or spruce beetles, if such activities meet or exceed any state forest service standards or any other applicable state rules, and modifies the amount of the credit available to be fully refundable without being carried forward;
• For income tax years commencing on or after January 1, 2027, expands the income tax credit for the purchase of small food business recovery grant program equipment to be available for additional food distributors and producers, adjusts the amount of the tax credit that may be offered and claimed for the purchase of small food business recovery grant program equipment or participation in the supplemental food assistance benefit program, requires the department of agriculture to approve or disapprove an application for a credit within a reasonable time, which shall not exceed 150 days after the filing of the application, caps the amount of credits issued at $10 million for calendar years commencing before January 1, 2027, $5 million for the calendar year commencing on January 1, 2027, and a total of $5 million for calendar years commencing on or after January 1, 2028, and allows a purchaser that is not subject to income tax to be eligible for the credit.
• Extends the electric-powered lawn equipment tax credit until January 1, 2030, and allows a qualified retailer to elect advance payments of the credit;
• For income tax years commencing on or after January 1, 2027, allows an entity not subject to income tax to be eligible for an income tax credit for developing a qualified industrial facility, allows a taxpayer to claim the credit for installing equipment used for utilization of biomethane, requires the Colorado energy office (CEO) to review applications for the credit within 120, rather than 90, days, and for any semi-annual application period commencing on or after July 1, 2026, allows the CEO to adjust the limits on the aggregate amount of tax credits available to be reserved.
• Changes the reservation process for a tax credit made in connection with a geothermal energy project beginning on July 1, 2026;
• Provides that the department may disqualify a retailer of electric bicycles from the electric bicycle tax credit if the retailer requested advance payment of the credit or claimed a credit for a transaction that does not qualify for the credit, the retailer provided false information to the department of revenue or CEO, the retailer did not comply with the statutory requirements for the credit, or the retailer does not hold a sales tax license;
• Allows the executive director of the department of revenue to share taxpayer information with the CEO relating to a claim for an income tax credit for the retail sale of a qualified electric bicycle or the sale of a heat pump, which must remain confidential;
• Repeals the sustainable aviation fuel (SAF) production facility tax credit, effective January 1, 2027;
• Establishes the sustainable aviation fuel purchase income tax credit for income tax years beginning on or after January 1, 2027, and before December 31, 2032, where the amount of the credit is initially $1.50, increased by $.01 for each whole percentage of carbon intensity reduction in excess of 50%, but no greater than 100%, per gallon of SAF purchased for use in the state by the taxpayer, and the CEO may adjust that amount annually;
• Beginning January 1, 2028, the CEO may allow an additional credit of 50 cents for each gallon of SAF produced in the state that a qualified taxpayer purchased for use in the state during the income tax year, except as provided by the cap and reservation system, the total amount of credits issued cannot exceed $3 million per tax year, taxpayers must apply to the CEO for a tax credit certificate and CEO verifies eligibility and reports approved credits to the department of revenue, and the credit is refundable but may not be carried forward.
• For tax periods commencing on or after July 1, 2027, exempts from tax the storage, use, or consumption of construction and building materials by or on behalf of a common carrier by rail operating in interstate or foreign commerce when the storage, use, or consumption of the construction and building materials is pursuant to a contract with the state, a political subdivision of the state, or a special district that allows the contracting government to use the railroad's property or tracks for public passenger rail service;
• Extends the expiring sales and use tax exemption for wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles prior to the calendar year commencing on January 1, 2031;
• Repeals the sales and use tax exemption for property used in space flight, effective January 1, 2027, and reinstates the exemption beginning January 1, 2030;
• Change from 2% to 1.5% the allowance to cover losses in transit and in unloading gasoline or special fuel and repeals the 0.5% allowance for the costs of collecting the gasoline or special fuel excise tax and for uncollectible bad debts for tax periods beginning on or after January 1, 2027;
• Repeals the 3% deduction for collecting and remitting the tax on the inventory of cigarette wholesalers for tax periods beginning on or after January 1, 2027;
• Repeals the 0.4% discount on the face value of tax stamps affixed to packages containing cigarettes for tax periods beginning on or after January 1, 2027;
• Repeals the 1.6% discount for expenses in the collection and remittance of the tax on the sale, use, consumption, handling, and distribution of tobacco for tax periods beginning on or after January 1, 2027;
• Repeals the 1.1% discount for expenses in the collection and remittance of the nicotine product distributors tax for tax periods beginning on or after January 1, 2027;
• Allows an income tax credit to a taxpayer who places a new renewable energy investment in service on or after January 1, 2027, and provides a 14-year carryover of any amount of the credit not used to offset the income taxes otherwise due; except that, beginning in the tax year commencing on January 1, 2027, a taxpayer is not allowed a credit with respect to a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle rating of at least 54,000 pounds that is designated as Class A personal property pursuant to statute;
• Provides that on or after January 1, 2027, a taxpayer with more than 50 business facility employees during an income tax year is ineligible for the new enterprise zone business employee tax credit in that same income tax year;
• Requires, beginning January 1, 2027, a taxpayer to make at least $150,000 in expenditures in research and experimental activities to be eligible for the enterprise zone research and experimental activities tax credit;
• Modifies the enterprise zone vacant building rehabilitation income tax credit so that the credit only applies to buildings that have been unoccupied for any 135 calendar days within the 180 calendar days preceding when the rehabilitation is placed in service and is available in an amount equal to 25% of the aggregate qualified expenditures per building or $200,000 per building, whichever is less;
• Beginning on January 1, 2028, provides that a resident individual is allowed an earned income tax credit that equals the applicable percentage, as set forth in statute, of the amount the individual would be have been allowed under the internal revenue code;
• Removes Liechtenstein as a jurisdiction recognized as a tax shelter by the state and requires the department of revenue to engage a contractor to study whether the countries currently listed as tax shelters should remain designated as tax shelters;
• Requires the state treasurer to transfer all money in the commercial vehicle enterprise tax fund to the Colorado economic development fund on July 1, 2027;
• Requires the state treasurer to transfer the remainder of the penalty assessed for certain traffic violations that is not transferred to local jurisdictions to the general fund on or after July 1, 2027;
• Extends the residential energy storage system income tax credit to December 31, 2029; and
• Provides that the film festival incentive tax credit begins on January 1, 2026, instead of January 1, 2027, and ends on December 31, 2035, instead of December 31, 2036.

     For the 2026-27 state fiscal year, the act makes the following appropriation adjustments to the department of health care policy and financing:

• $52,560 decrease from the general fund and a $52,560 increase from cash funds for medical and long-term care services for Medicaid eligible individuals;
• $21,024 increase from the primary care fund for the primary care fund program; and
• $332 decrease from the general fund and a $332 increase from the children's basic health plan trust fund for children's basic health plan medical and dental costs.

     $38,432 is appropriated from the general fund to the department of revenue for tax administration system support and personal services.

     $25,000 is appropriated from the general fund to the office of the governor for use by economic development programs.

     $996,276 is appropriated from the preschool programs cash fund to the department of early childhood for support of the universal preschool program.

     $35,741 is appropriated from various cash funds to the department of public health and environment for tobacco education, cancer and cardiovascular disease grants, and transfers to the general fund.

     $333 is appropriated from the general fund exempt account to the department of public health and environment for immunization operating expenses.

     The act takes effect upon passage; except that the appropriation adjustments to the department of health care policy and financing take effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law, and certain appropriation decreases are subject to the available amounts in the annual general appropriation act.


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

     The bill is a referred measure that will, if approved by the voters of the state at the 2026 general election, increase the excise tax on liquor by:

• $0.0733 per gallon, or the same per unit volume tax applied to metric measure, on all malt liquors and hard cider;
• $0.08 per liter on all vinous liquors except hard cider; and
• $0.6026 per liter on all spirituous liquors.

This excise tax must be collected on the respective beverages not otherwise exempt from the tax, sold, offered for sale, or used in the state. The bill, if approved by the voters of the state at the 2026 general election, would also increase the state retail marijuana sales and excise taxes each by 0.42 percentage points.

     The bill requires the treasurer to transfer an amount equal to the tax revenue raised as a result of the bill to the hospital support account that is created in the capital construction fund. The department of human services may expend money from the hospital support account in the following priority order:

• First, to fund the construction of the Colorado mental health institute at Aurora created in section 2 of the bill (institute);
• Second, to fund the operational expenses associated with the institute; and
• Third, to fund the operational expenses associated with long-term civil commitment facilities in Mesa County.

      Section 2 creates the institute, the construction, operation, and maintenance of which is funded by money in the hospital support account. The institute is a state institution for the treatment of persons with mental health, behavioral health, or substance use disorders. The institute operates under the control and supervision of the department of human services (department). The head of the administrative division overseeing the institute is permitted to appoint or employ necessary administrators, physicians, nurses, attendants, and other personnel required for the proper conduct of the institute. The administrative division head is permitted to contract with the board of regents of the University of Colorado health sciences center or other state-supported institutions of higher education to provide necessary medical services. Section 2 establishes criteria for access to inpatient civil beds at the institute.

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

     The act creates the postsecondary talent development system transition advisory committee (transition committee) to develop a transition plan that includes recommendations to integrate oversight of higher education and workforce development programs (transition plan). The transition committee shall begin meeting by July 1, 2026, and shall submit the transition plan by November 1, 2026, to the joint budget committee; the house of representatives business affairs and labor committee; the house of representatives education committee; the senate business, labor, and technology committee; and the senate education committee. The transition plan must include recommendations about the structure of the department of higher education (department), including a recommendation to rename the department; recommendations about transitioning various offices, agencies, programs, and functions to the department or other state agencies; and recommendations about how the department will coordinate with the department of education's postsecondary workforce readiness and student support activities.

     Effective July 1, 2028, the executive director of the Colorado commission on higher education is renamed the executive director of the department (executive director). The governor appoints, with the consent of the senate, the executive director.


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

     The act implements recommendations of the department of regulatory agencies (department) in its 2025 sunset review of the public utilities commission (commission) as follows:

• Sections 1 and 3 of the act continue the commission for 7 years to September 1, 2033;
• Sections 4, 8, 10, 11, 16, and 17 authorize the commission to send communications by email;
• Sections 20 through 22 modernize certain processes, provide additional transparency, and clarify inconsistencies in certain energy statutes by:

• Aligning the renewable energy standard with the statutes governing clean energy targets and removing the requirements for municipally owned utilities to submit an annual compliance report to the commission regarding renewable energy standard requirements and for qualifying wholesale utilities that comply with electric resource planning to also demonstrate compliance with electric resource standards;
• Directing the commission to perform a study to identify any barriers to joint procurement by electric utilities with regard to advanced technology generation resources;

• Section 23:

• Prohibits an individual from impersonating a transportation network company (TNC) driver (driver). An individual who violates the prohibition commits a class 2 misdemeanor. An individual who impersonates a driver during the commission of a felony offense commits a class 6 felony. A TNC is required to conduct periodic checks utilizing facial recognition software or equally or more effective technology, as approved by the commission, to prevent driver impersonation in accordance with rules adopted by the commission. The periodic check requirement does not apply to a TNC that predominantly contracts to serve public or private schools or the government and complies with at least 90% of the commission's rules regarding safety standards for TNCs that contract with schools or school districts.
• Requires a TNC to provide information about the commission, including information about how a rider may contact the commission to file a complaint using a TNC's digital network, to a rider in accordance with rules adopted by the commission; and
• Requires commission staff who process TNC customer complaints to receive training in trauma-informed practices;

• Section 25 expands the types of drivers who need to have criminal history record checks performed to include drivers who are employed by any motor carriers and contract carriers;
• Section 28 requires the commission to perform a market study to determine if the current systems of regulating intrastate contract and common carriers optimally balance consumer protections with industry and regulatory efficiency and to report its findings and recommendations based on the study to the general assembly by January 1, 2028;
• Sections 29 and 30 replace the current inspection requirements for a charter bus, children's activity bus, fire crew transport, luxury limousine, off-road scenic charter, and large-market taxicab with a requirement that these vehicles be inspected on a schedule and to a standard set by rules adopted by the commission;
• Sections 31 through 36 and 38 update the state railroad regulation requirements to mirror current federal law and to repeal obsolete provisions;
• Section 39 removes the $500 fee cap paid by companies to access the Colorado no-call list, replaces it with a $1,000 fee cap, and requires conforming list brokers, which are companies that purchase the no-call list and sell it to other companies, to pay a fee established by the commission by rule;
• Section 41 authorizes the commission to administratively assess a filing fee schedule for filings related to communication services, telecommunications services, and basic emergency services to help finance the commission's telecommunications-related work and exempts members of the public filing complaints and public utilities subject to certain revenue-based fees imposed by the commission from paying the filing fees;
• Section 43 aligns the usage of money collected from charges related to the provision of 911 services with federal requirements by clarifying that the money may be expended for public safety radio equipment outside of a public safety answering point only if the equipment is used for dispatching emergency service providers to respond to 911 calls;
• Section 44 authorizes the commission to adopt rules that establish caps on rates charged by penal communications service providers on intrastate penal communications services provided for intrastate communications with individuals in correctional facilities and to enforce the intrastate rate. Section 44 also authorizes the commission to adopt rules requiring penal communications service providers to report outages and imposing penalties for penal communications service providers' failure to comply with commission requirements. Section 44 also requires:

• Penal communications service providers to cooperate with commission staff when the staff is performing biannual testing of penal communications services;
• The commission to develop flyers informing the public how to file complaints to the commission about penal communications services; and
• Correctional facilities to post the flyers;

• Section 45 exempts small operators of natural gas pipelines from the minimum $5,000 civil penalty required for violations of pipeline safety laws and authorizes the commission to impose a lesser civil penalty against a small operator;
• Section 46 directs the commission to perform a study identifying all privately owned water utilities in the state and assessing their financial conditions and needs;
• Section 47 requires investor-owned electric utilities to provide interconnection information and certificates to taxpayers requesting the information for purposes of claiming the federal clean electricity investment credit; and
• Section 48 requires the commission, on or before December 1, 2026, to open one or more miscellaneous proceedings to investigate ways to streamline energy planning proceedings, to integrate gas and electric system planning, and to make customer programming more efficient. The commission shall solicit stakeholder feedback in its investigation and, on or before November 30, 2027, shall submit a report of its findings and recommendations to legislative committees with jurisdiction over energy matters.

     The act also implements the following changes regarding the commission and its work:

• Section 2 requires electric and gas investor-owned utilities, including combined utilities, to file annual summaries of anticipated regulatory filings with the commission starting in 2027 and requires the commission to make the filings publicly available on its website, hold informational meetings regarding the filings, and submit annual reports to the general assembly summarizing the commission's major adjudicated cases and rule-makings from the previous year. Starting September 1, 2026, the commission is required to include in each of its decisions a summary of public comments received on the matter.
• Sections 4 through 8 concern commission authority, personnel, and management functions, with section 4 stating that the commission, acting through its director, has authority over the commission's budgeting, purchasing, planning, and related management functions, including human resources, and section 7 requiring the director of the commission to hire or designate an equity analyst to assist the commission's work regarding equity impact proceedings and to staff an equity task force appointed by the director;
• Section 4 also requires the governor to consider appointing commissioners with knowledge of the regulated industries and with a diversity of experience and understanding of public interest considerations. Finally, section 4 authorizes the commission to hold weekly meetings and, beginning July 1, 2027, requires a majority of the commissioners attending the weekly meetings to attend in person.
• Sections 9 and 12 provide that, with certain exceptions, adjudications must first be heard by an administrative law judge. Section 12 also requires the commission, by March 31, 2027, to adopt rules regarding the format of en banc commission and hearings and meetings presided over by a single hearing commissioner with respect to whether the hearings are held in person, virtually, or a hybrid of in-person and virtual participation.
• Section 13 requires that commission rules regarding review of an application must prescribe that an application may only be deemed incomplete if it does not meet the commission's application requirement. Section 13 also provides that the commission's failure to act upon an application within 120 days, or within an extended time granted by the commission not to exceed an additional 130 days or, under extraordinary conditions, not to exceed an additional 90 days, constitutes an approval of the application by operation of law. An unopposed permissive motion for intervention is deemed approved if the commission does not deny the motion within 30 days after its filing.
• Section 14 increases the maximum civil penalty applicable to public utilities for intentional violations of public utilities law from $2,000 to $7,500, applies such civil penalties to a public utility's violation of a tariff, and requires the commission to consider factors such as utility size, harm caused, and mitigating circumstances or actions in assessing the civil penalties. Section 14 also requires that civil penalties assessed against and collected from electric and gas utilities be credited to the public utilities commission fixed utility fund (fixed utility fund) to be used for affordability programs or outreach and engagement of income-qualified customers and disproportionately impacted communities.
• Section 15 provides guidance for intervenor compensation in commission proceedings by authorizing the commission to award an intervenor compensation if the commission determines that the intervenor made a unique substantial contribution that provided material assistance to the commission in developing the record in a proceeding and incurred reasonable costs in the proceeding. The commission may adopt rules regarding intervenor compensation, including rules for intervenor petitions for compensation and guidelines for determining reasonable costs incurred and material assistance.
• Under current law, money in the legal services offset fund is continuously appropriated to the department to offset its costs of legal representation in matters involving public utilities law. Section 18 shifts the appropriation to the commission to offset its costs of legal representation in such matters.
• Section 21 removes verification of municipally owned utilities' voluntarily filed clean energy plans by the division of administration in the department of public health and environment;
• Section 22 requires the commission, on or before December 31, 2027, to adopt rules establishing minimum quality-of-service metrics for investor-owned electric and gas utilities in the state;
• Section 24 requires the department to consult with the director of the commission regarding annual TNC permit fees and increases the maximum annual TNC permit fee to $161,250. Likewise, section 26 requires the department to consult with the director of the commission in setting certain administrative fees on motor carriers, and section 40 requires the department to consult with the director of the commission on computation of revenue-based fees owed by utilities.
• Section 27 provides that a person may apply to a court for enforcement of a commission order, decision, or rule regarding noncompliance by a motor carrier without having first exhausted administrative remedies; and
• Section 37 requires the commission to engage an independent third-party consultant to conduct a study on how the commission may modernize its personnel, organizational, and budgetary structures, which study must include an evaluation and recommendations regarding the commission's size, compensation, and funding mechanisms for equity objectives. On or before November 1, 2026, the commission shall submit an initial report, and on or before November 1, 2027, a final report, on the study's findings and recommendations to legislative committees with jurisdiction over energy matters.

     For state fiscal year 2026-27, section 49 appropriates $298,448 to the department with:

• $232,712, including $157,712 from the fixed utility fund and $75,000 from the motor carrier fund, for personal services;
• $16,048 from the fixed utility fund for operating expenses; and
• $49,688 of the amount appropriated from the fixed utility fund for reappropriation to the department of law for legal services.
  
  (Note: This summary applies to this bill as enacted.)

     The bill creates the large employer health-care support enterprise (enterprise) to impose, assess, and collect the large employer health-care support fee (enterprise fee) in the amount of $2,300 for each supported worker for the calendar year in an amount determined by the enterprise board (enterprise board) that reflects the costs of the services provided by the enterprise . A worker who is receiving medical assistance benefits under the state medical assistance program, except for a worker eligible for medical assistance benefits based on disability, is a supported worker (supported worker).

     An employer is subject to the enterprise fee if the employer is a large employer, which is defined in the bill as an employer that has 500 or more supported workers (large employer). An employer is exempted from paying the enterprise fee if the employer:

• Provides affordable health coverage to all workers working 20 or more hours per week or 80 or more hours per month;
• Is a franchisee of the employer;
• Is a nonprofit employer;
• Is a public employer; or
• Has a collective bargaining agreement with its employees that includes health-care coverage.

     The business purpose s of the enterprise are to use enterprise fee revenue to help large employers retain supported workers who are not provided employer-sponsored affordable health coverage by using enterprise fee revenue to:

• Help finance the costs for medical assistance benefits for large employers' supported workers ; and
• Provide reimbursement grants to large employers for some or all of an employer's costs incurred for allowing a worker to buy into an employer-sponsored health benefit plan, should the employer choose to participate in the worker buy-in program created in the bill.

This These business service s reduce s lost productivity due to worker illness and training costs to replace workers who may otherwise seek employment that provides affordable health coverage.

     Starting with a review of the 2027 calendar year, the department of health care policy and financing (HCPF) every employer that employed 500 or more workers in the state shall prepare an annual employer report on or before January 31, 2028, and on or before the same date each year thereafter, that includes information about the employer's employees, including the employee's name, date of birth, hours worked, and dates of employment for the preceding calendar year. An employer may seek an exemption from the requirement to file the annual employer report by demonstrating that it provides affordable health coverage to all workers working 20 or more hours per week or 80 or more hours per month. Upon receipt of the annual employer report, the enterprise shall determine whether an employer is a large employer and shall issue a report by March of the following same calendar year that identifies large employers by their number of supported workers for the preceding calendar year and impose the enterprise fee on each large employer . An employer may contest the employer's identification as a large employer. Once identified, a large employer shall either pay the enterprise fee for each of the large employer's supported workers or demonstrate that it provides will offer affordable health coverage to all workers working 20 or more hours per week or 80 or more hours per month. The enterprise may adjust the amount of the enterprise fee to reflect the cost of the services, for inflation, or for other reasons. A large employer commits a petty offense and is subject to a civil penalty for

      The enterprise shall contract with the department of revenue to collect and enforce the payment of the enterprise fee on behalf of the enterprise, including the failure to provide information necessary to calculate the enterprise fee or to either timely pay the enterprise fee or demonstrate that the large employer offers affordable health coverage as specified in the bill. The department of revenue may collect interest and penalties and institute collection actions on behalf of the enterprise.

     Enterprise revenue is used to support the pay for payment of medical assistance benefits for working-age adults under the state medical assistance program, and to increase reimbursement rates for ensure access to health-care providers providing medical assistance program services, to ensure worker access to medical services and to pay for large employer reimbursement grants under the worker buy-in program for large employers that pay the enterprise fee.

     The enterprise is governed by the enterprise board, and the enterprise board shall report annually to the general assembly on the enterprise revenue and the enterprise's use of the enterprise revenue in support of large employers.

     If the enterprise determines that the enterprise to would receive more than $100 million dollars in its first 5 fiscal years, the state treasurer shall credit the additional fee revenue to the large employer fee cash fund created in the state treasury for administration by HCPF, and that fee revenue is subject to the state fiscal year spending limit imposed by section 20 of article X of the state constitution and the excess revenues cap. The money in the large employer fee cash fund shall be used by HCPF to pay for costs for medical assistance benefits to support large employers' supported workers enterprise shall reduce the amount of the enterprise fee.

(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.)

     The act requires the state treasurer to transfer $1.2 million from the universal high school scholarship cash fund (fund) to the Colorado economic development fund and $2.3 million from the fund to the general fund on June 30, 2026.


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

     The act prohibits a lawyer or law firm, in connection with providing legal services concerning a legal right arising in whole or in part in Colorado (legal services), from:

• Providing any portion of legal fees or revenues to a nonlawyer or an organization that economically participates in the provision of legal services or shares in the profits of legal fees or revenues and is owned or controlled by one or more nonlawyers (alternative business structure);
• Entering into a financial or contractual arrangement with an alternative business structure, which arrangement relates to providing legal services;
• Forming an entity recognized under Colorado law with a nonlawyer if any of the activities of the entity consist of providing legal services;
• Practicing with or in the form of a professional company authorized to provide legal services if a nonlawyer owns an interest in the company or a nonlawyer has the right to direct the judgment of a lawyer; and
• Compensating a person that provides administrative or nonlegal business services to a lawyer or law firm unless the compensation is not contingent upon a percentage of legal fees or revenues and not determined by reference to recoveries, settlements, or other case outcomes.

     The act exempts certain arrangements, activities, and organizations from the prohibitions in the act.

     The act also creates a private right of action that allows the following persons to enforce the prohibitions in the act:

• A person to whom a lawyer or law firm provides legal services that are alleged to be in violation of the act; and
• A law firm doing substantial business in Colorado that has suffered or may suffer a loss in revenue due to a violation of the act by another law firm, which law firm doing substantial business is not eligible for recovery of economic damages.

     A person may seek economic damages, injunctive relief, declaratory relief, and any other relief the circumstances may require for violations of the act. If a court determines that a lawyer, law firm, or other person has violated the act, the court must order the funds received or paid in violation of the act to be disgorged and paid to the state treasurer, except to the extent that the funds are paid as economic damages to a plaintiff. The state treasurer must deposit any disgorged funds into the general fund.

     The act repeals on September 1, 2029.


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

     The act allows a board of county commissioners and the governing body of a municipality to sell and dispose of property owned by the county or municipality, as applicable, to provide for affordable housing and allows a municipality to enter into a long-term rental or lease agreement for the development of affordable housing.

     The act allows for the approval of a mutijurisdictional housing authority at a biennial local election instead of only during a general election or an election held on the first Tuesday in November of an odd-numbered year. The ballot question about establishing the authority may be combined with a question about a tax, impact fee, multiple-fiscal year debt, or other financial obligation.

     The act allows a board of county commissioners to use ad valorem tax revenue for housing authorities, housing programs, and workforce housing.

     The act entitles an entity subject to income tax to which a middle-income housing tax credit is transferred by a governmental entity or quasi-governmental entity to claim the credit without owning an interest in a qualified project.

     The sale and use of construction materials by contractors is exempt from taxation if the materials are used by the state in its governmental capacity only. The act provides that 'governmental capacity' includes the construction of workforce housing projects undertaken by counties.


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

     Under existing law, charitable organizations are exempt from state sales and use tax. The definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization. The act requires the department of revenue to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.


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

     The act broadens the definition of 'ranch' for purposes of property taxation to mean a parcel of land that is predominantly used for grazing livestock for the primary purpose of obtaining a monetary profit. A ranch must operate through a pasture-based operation, which is newly defined as a method of livestock management where pasture-grazed livestock have regular access to open pasture and derive a majority of their diet through grazing.

     The act also broadens the definition of 'farm' for purposes of property taxation to mirror the predominant use language in the definition of 'ranch'. With this change, a farm means a parcel of land that is predominantly used to produce agricultural products that originate from the land's productivity for the primary purpose of obtaining a monetary profit.
(Note: This summary applies to this bill as enacted.)

     Current law establishes a statewide integrated system of early childhood councils (councils) to improve and sustain the availability, accessibility, capacity, and quality of early childhood services. The act expands the powers, functions, and responsibilities of a council in implementing a comprehensive system of early childhood and family support programs and services (programs and services) within the council's community.

     Current law establishes local coordinating organizations (LCOs) to increase access to, coordinate, and allocate funding for programs and services through work with the families, program and service providers, and local governments in a community and with the department of early childhood (department). Effective July 1, 2026, the act repeals provisions authorizing the creation and operation of LCOs and transfers the LCO rights, powers, duties, functions, and obligations concerning supporting access to and delivery of programs and services to the councils (transfer). If the transfer requires the consolidation, reassignment, or material modification of the duties of a council or LCO, the department may authorize a one-time extension of the transition period for up to 3 years.

     Current law requires a council to develop a community strategic plan based upon an assessment of the early childhood needs in the council's designated service area (community strategic plan). The act requires a community strategic plan to address specified issues, including:

• Assisting families in applying for programs and services;
• Coordinating outreach efforts with other local entities and tribal agencies;
• Recruiting and coordinating providers to form a mixed delivery system that promotes family choice; and
• Supporting increased recruitment and retention of individuals in the early care and education workforce.

     The act requires a council, in partnership with the department, to create, review, and revise a scope of work that reflects the community strategic plan and accurately represents the programs and services within the community, meets families' needs, and aligns with available appropriations and the department's statewide strategic planning process. Associated accountability metrics must also be reviewed and revised to align with the scope of work. The act specifies a council's new obligations regarding improving access to high-quality programs and services, early childhood workforce development, data-sharing agreements, outreach for holistic family services, and auditing.

     The act establishes requirements for an agreement that sets forth the respective duties of a council and the department in implementing a community strategic plan (agreement). The act identifies the department's responsibilities for the coordinated distribution of public funding for programs and services; council training and technical assistance; dissemination of information about successful council strategies and innovations; and standards for communication, resolution of disputes, and contracting protocols. The act modifies the process for the department to approve or facilitate a waiver of the rules for the implementation of council projects.

     The act requires the department to implement an annual performance review process for each council and solicit community feedback about a council's performance at intervals ranging from 3 to 5 years. If the department determines that a council is not meeting the requirements of the scope of work and accountability metrics contained in the agreement, the department may require the council to implement a performance improvement plan. If a council fails to make substantial progress toward addressing the issues raised in the performance improvement plan, the department may terminate the council's agreement.

     The act makes substantive and technical conforming amendments to address the reallocation of responsibilities and functions from LCOs to councils, including administrative and funding provisions related to the Colorado child care assistance program and the Colorado universal preschool program.


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

     The act requires the executive director of the Colorado department of early childhood (CDEC) to adopt rules concerning the requirements for licensed child care facilities to maintain up-to-date employee records in the professional development information system currently administered by CDEC.

     The act requires CDEC, on or before July 1, 2026, to begin phasing out its reliance on third parties to investigate and inspect facilities applying for certain types of child care licenses where feasible and to prioritize the use of CDEC personnel to conduct the investigations and inspections instead. The act exempts certain health and sanitation inspections from the phase-out. CDEC must establish standardized training, protocols, and supervision for CDEC personnel and authorized or contracted third parties.

     A local governing authority that imposes requirements related to the inspection, permitting, licensing, or approval of a child care center or family child care home beyond the state-level licensing standards (local approval process) shall limit associated fees and prioritize concluding a local approval process that has been delayed or disputed.

     The act creates the child care licensure task force (task force) to study and report on recommendations for a streamlined child care licensure system in the state. On or before January 1, 2027, the task force must report on its recommendations to the health and human services and education committees of the house of representatives and the senate, the governor, and CDEC. The performance of the task force's work is dependent upon the receipt of sufficient gifts, grants, and donations.


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

Section 1 of the bill amends and relocates the current requirements for notification to the attorney general regarding certain mergers, acquisitions, or transfers of securities or assets. Current law prohibits the attorney general from charging a party to a merger a fee connected with filing of the merger or a fee for providing additional information regarding the merger. The bill allows the attorney general to charge each filing party a reasonable fee, not to exceed $5,000. Section 1 also requires that the parties to a merger, acquisition, or contracting affiliation of one or more health-care entities (material change transaction) comply with specified notice requirements at least 60 days before the closing of the material change transaction. If the material change transaction requires the filing of a premerger notification with the federal trade commission or the United States department of justice pursuant to the federal "Hart-Scott-Rodino Antitrust Improvements Act of 1976", the parties shall also submit notice to the attorney general. If the terms of the material change transaction are altered following the submission of the written notice to the attorney general, the parties must provide notice to the attorney general of the alteration.

The attorney general may deem information and materials provided in compliance with the notice requirements as public records subject to disclosure under the "Colorado Open Records Act".

Section 1 also prohibits a material change transaction if the material change transaction may substantially lessen competition or tend to create a monopoly or may harm consumer welfare. A party to a material change transaction shall not close the material change transaction until specified conditions are met. Sections 3 through 9 amend the current requirements for transactions that involve licensed hospitals and are subject to notice requirements to the attorney general (covered transactions) by:

• Including in the definition of a "covered transaction" a transaction that would result in the sale, transfer, lease, exchange, or other disposition of the management, control, or operations of a hospital;
• Requiring parties to a covered transaction to include, in the notice to the attorney general of the transaction, a statement describing the charitable missions of each nonprofit entity entering into the covered transaction and the services provided by each nonprofit entity in furtherance of the nonprofit entity's charitable purposes and charitable missions;
• Specifying that if a covered transaction will not result in a material change in the charitable purposes, charitable missions, or services provided in furtherance of the charitable purposes or missions of a nonprofit entity entering into the covered transaction, and will not result in a termination of the attorney general's jurisdiction over the charitable assets due to a transfer of a material amount of those assets outside of the state of Colorado, the parties may proceed with the covered transaction without additional review by the attorney general. The attorney general may perform specified actions to review, and use specified criteria to determine, whether the covered transaction will result in a material change.
• Authorizing the attorney general to exercise their common law authority to assess and review or challenge a covered transaction that will result in a material change in the charitable purposes, charitable missions, or services provided in furtherance of the charitable purposes or missions of a nonprofit entity entering into the covered transaction or will result in a termination of the attorney general's jurisdiction over the charitable assets due to a transfer of a material amount of those assets outside of the state of Colorado;
• Adding specified information to the notice requirements for covered transactions in which the parties involved in the transaction are all for-profit entities; and
• Creating notice requirements for and attorney general review of covered transactions involving a for-profit hospital and a nonprofit entity.

Section 10 requires that, if certain health-care providers refer a patient to an entity for health-care services and the provider, or an immediate family member of the provider, has a financial relationship with the entity, the provider shall disclose the nature of the financial relationship to the patient at the time of the referral. The attorney general is required to study the effect of these provisions and the impact the provisions have on consumer knowledge and costs and submit a report on the findings of the study. Sections 11 through 30 make conforming amendments.
(Note: This summary applies to this bill as introduced.)

The bill adds individuals and homeowners' associations as eligible recipients of assistance from the natural disaster mitigation enterprise fund. The bill also provides that natural disaster mitigation includes installation of "impact-resistant roofing materials" and other "property-specific mitigation action" and provides definitions of the same.

Additionally, the bill creates an income tax deduction for contributions to a catastrophe savings account (CSA), which is a savings account that a homeowner may use to cover the amount of insurance deductibles for claims stemming from hail, wildfire, or a catastrophic wind event, uninsured losses related to the same, and property-specific mitigation actions. The bill also exempts interest earned by CSAs from income tax.
(Note: This summary applies to this bill as introduced.)

     The bill prohibits a person from selling, distributing, applying, or using certain types of rodenticide and rodent glue traps in the state except as authorized for restricted and limited use in a public health emergency and in accordance with certain use requirements and time periods.

     A person conducting professional rodent control services in the state is required to prioritize integrated pest management strategies, which involve implementing a combination of nonchemical rodent control measures. designates second-generation anticoagulant rodenticides, which are pesticides containing brodifacoum, bromadiolone, difenacoum, or difethialone as an active ingredient, as restricted-use pesticides and authorizes the commissioner of agriculture to restrict their distribution and use.

(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.)

On and after January 1, 2029, the bill prohibits a person from selling, offering for sale, or otherwise distributing in the state field crop seeds coated or treated with systemic insecticide (coated or treated seeds), which is an insecticide designed to be absorbed by plants, unless the buyer presents at the point of sale a certificate authorizing the purchase of such seeds from a seed dealer and the use of such seeds on agricultural property.

A person may apply to the commissioner of agriculture (commissioner) for approval to serve as a third-party verifier (approved third-party verifier) to determine whether a specified use of coated or treated seeds is necessary and appropriate. On and after January 1, 2029, a person that seeks to apply such coated or treated seeds on agricultural property must work with an approved third-party verifier to determine if such use is necessary and appropriate.

The approved third-party verifier shall conduct a pest risk assessment and prepare a report on the assessment. If the approved third-party verifier determines that the use of coated or treated seeds is necessary and appropriate on the agricultural property, they may issue a certificate authorizing the use of coated or treated seeds on the agricultural property for a period up to one year.

The commissioner shall adopt rules to implement a program ensuring that coated or treated seeds are used on agricultural property only when needed and expected to be effective and may enforce against an approved third-party verifier's or seed dealer's noncompliance with the requirements of the bill, including by suspending or revoking approval of the third-party verifier or the seed dealer's license or by assessing a fine in an amount not to exceed $50,000 per violation. Approved third-party verifiers and seed dealers must annually report to the commissioner, and the commissioner must include a summary of the reports and the implementation of the bill in the commissioner's annual "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" presentation to the general assembly.

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

     The act expands the ways in which individuals may become eligible for certification as a certified public accountant (CPA) in Colorado by creating 3 new education and experience pathways that may satisfy the requirements for CPA certification. The pathways become available for applicants beginning on January 1, 2027. The 3 pathways are:

• Obtaining a baccalaureate degree, completing 2 years of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam;
• Obtaining a baccalaureate degree, completing 30 additional semester hours, completing one year of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam; and
• Obtaining a post-baccalaureate degree, completing one year of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam.

     For each pathway, an applicant's work experience must:

• Meet the requirements set by the Colorado state board of accountancy (board) by rule;
• Include any type of service or advice representing certain accounting-related skills needed to serve the public at the time of initial certification; and
• Be verified by an actively licensed CPA who meets board requirements.

     Section 2 of the act conforms statutory provisions relating to an applicant's eligibility to sit for a CPA examination with the pathways to certification created by the act. Section 2 also reinforces that, regardless of an applicant's eligibility to sit for an exam, the applicant must complete one of the specified pathways in order to obtain a CPA certificate.

     Section 4 establishes that an individual CPA who is licensed or certified in good standing in another state or jurisdiction of the United States and whose principle place of business is located in another state or jurisdiction of the United States (out-of-state CPA) has all the same practice privileges as Colorado certificate holders, without the need to obtain a Colorado certificate, if the individual was required at their initial licensure or certification in the other state or jurisdiction of the United States to pass the uniform CPA examination and obtain a baccalaureate degree conferred by an accredited college or university. Additionally, the act continues the practice privileges of out-of-state CPAs who held practice privileges in Colorado as of December 31, 2024. Finally, the conferral of practice privileges upon out-of-state CPAs must be conducted in conformity with rules adopted by the board; except that the board shall not require an out-of-state CPA to provide a notice, fee, or other submission as a condition of exercising such practice privileges in Colorado.


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

     The act modifies statutes relating to state institutions of higher education (institutions) in the following areas: Fiscal impact information for legislative measures, definitions related to electric and plumbing work, data policies and coordination, capital construction review processes, and bond requirements and procedures for the university of Colorado.

      Fiscal impact information. For institutions that submit information on the potential fiscal impact of a legislative measure to the staff of the legislative council (LCS) through the department of higher education (department), the act requires the department to grant submitting institutions access to the official responses of the department and other submitting institutions at the time that the fiscal impact information is submitted to LCS.

      Definitions. The act modifies definitions in statutes relating to performing electric and plumbing work on the campuses of the university of Colorado and the Colorado state university to remove existing restrictions so that the university of Colorado can perform work on buildings that the university owns or leases.

      Data policies and coordination. The act codifies the existing data advisory group facilitated by the department. The data advisory group is made up of representatives from the department and the institutions. The data advisory group must meet quarterly and is charged with advising on the development of policies and procedures for the collection, storage, and use of data from institutions. The act requires the Colorado commission on higher education (commission) to consult with the data advisory group to establish certain data policies. The act also adds one member of the data advisory group, selected by the commission, to the advisory committee to the commission.

      Capital construction. The act increases the dollar-amount threshold from $2 million to $5 million for exceptions from the requirements for program and physical planning, exceptions from commission approval and capital development committee (CDC) and joint budget committee (JBC) review of capital construction projects funded from certain sources, and exceptions from commission approval of capital construction projects funded from cash funds. The act also exempts from the review and approval of the commission, the CDC, and the JBC any capital construction or capital renewal project funded solely from cash funds held by an institution that are not derived from student fees, so long as the institution has not participated in the higher education revenue bond intercept program for at least the preceding 5 years.

      Bond requirements and procedures. The act modifies certain bond requirements and procedures specific to the university of Colorado to align with current practice.

     For the 2026-27 state fiscal year, $48,098 is appropriated from the general fund to the department for use by the commission and higher education special purpose programs. The appropriation is based on an assumption that the commission will require an additional 0.5 FTE and may be used by the commission for administration.


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

     The act creates the cradle to career grant program (grant program) in the department of human services (CDHS) to provide grants to a local government, local education provider, state institution of higher education, Indian tribe or tribal organization, or community-based nonprofit or not-for-profit organization (eligible entity) to promote coordinated community-based supports and services that open opportunities for economic mobility from poverty. The grant program must connect children and youth with high-quality educational and extracurricular programming and families with key health and social services in order to improve prenatal and early childhood outcomes, student achievement, workforce readiness, and wealth-building opportunities.

     The act creates the cradle to career advisory council (council) to approve or disapprove CDHS's potential grant recipients and to collaborate with CDHS to develop grant program guidelines and criteria for awarding grants. Council members must be Colorado residents and must not provide financial support for the grant program.

     To receive a grant, an eligible entity must submit an application that includes an economic mobility needs assessment and a comprehensive proposal to address the needs within its designated service area. The application must identify prospective community partners and subcontractors. The act caps the amount that CDHS may award in connection with a single grant application at 49% of available grant program money.

     A grant recipient must comply with various health and safety, financial responsibility, and anti-discrimination safeguards. Each grant recipient must annually report to CDHS addressing the recipient's progress using a set of performance indicators to assess the economic mobility outcomes and impacts associated with the grant award. CDHS must make a related report to the health and human services committees of the general assembly and the governor each year.

     CDHS may seek, accept, and expend gifts, grants, and donations for grant-program-related purposes. If CDHS does not receive $900,000 for those purposes on or before December 31, 2028, the grant program is repealed. The general assembly shall not appropriate general fund dollars for grant program operations.


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

     

The bill increases overtime protections for agricultural employees by requiring that agricultural employees be paid at an overtime rate for any work performed in excess of:

• 40 hours per workweek;

• 12 hours per workday; or

• 12 consecutive hours.
  (Note: This summary applies to this bill as introduced.)

     The act requires that an applicant for a building permit or a construction permit for a project with a total construction cost of more than $1 million (permit) file with the permitting agency, prior to commencing work under the permit, a signed declaration under penalty of perjury verifying that any person working under the permit maintains valid workers' compensation insurance coverage for the duration of the permit.

     A person may file a complaint with the division of workers' compensation in the department of labor and employment alleging a person's workers' compensation insurance coverage is not in compliance with the state's workers' compensation laws.


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

The bill creates certain requirements for large-load data centers, which are defined in the bill as:

• A new data center that has a peak load of more than 30 megawatts or multiple new data centers with a collective peak load of more than 60 megawatts; or
• An existing data center that adds a peak load of more than 30 megawatts or multiple existing data centers that add a collective peak load of more than 60 megawatts.

No later than June 30, 2030, the public utilities commission (commission) is required to make a determination on whether 100% hourly matching by large-load data centers is technically and economically feasible. If the commission determines that 100% hourly matching is not technically and economically feasible, the commission must make a determination of the highest percentage of hourly matching by large-load data centers that is technically and economically feasible (hourly matching requirement), which percentage the commission must update on a regular basis.

Beginning January 1, 2031, an operator of a large-load data center (operator) must generate, purchase, or otherwise acquire a quantity of electricity generated from renewable resources necessary to meet 100% of the operator's large-load data center's total annual electricity consumption. An operator must also achieve the hourly matching requirement. An operator must comply with these requirements through a tariff, contract, or program entered into with a utility, one or more power purchase agreements entered into with an independent power producer, or a self-supply of electricity.

An operator must enter into contracts of at least 15 years with a utility to pay for certain infrastructure and resource costs. An operator must also contribute to utility demand-side management programs and comply with certain operational water management and on-site backup generation requirements.

No later than June 30, 2028, and no later than each June 30 thereafter, an operator must report to the department of public health and environment certain information about the large-load data center, including information about the large-load data center's annual electricity and water consumption. The department of public health and environment must compile the information reported and provide a report to the general assembly and commission and make the report publicly available on the department's website.

A utility is prohibited from interconnecting or supplying electricity to a large-load data center unless:

• The operator has either provided an up-front payment or entered into a contract of at least 15 years with the utility, which up-front payment or contract must require the operator to pay for certain infrastructure and resource costs;
• On or after January 1, 2031, the utility has verified that the operator is in compliance with the hourly matching requirement; and
• The utility determines and ensures that the addition of the large-load data center to the utility's system does not negatively affect the utility's ability to provide reliable service to customers or meet applicable clean energy targets or increase the utility's greenhouse gas emissions.

A utility is prohibited from offering economic development rates to large-load data centers and is required to develop and offer demand response programs or flexible connection tariffs to the utility's customers that are operators. A utility is required to solicit and accept voluntary financial contributions from operators to certain utility programs, which contributions must supplement, rather than substitute, the utility's funding of those programs. A utility that is rate-regulated by the commission with customers that are operators is required to describe efforts to comply with the bill in the utility's annual report filed with the commission.

On or before June 30, 2027, the department of local affairs must publish model codes for the development of large-load data centers, which model codes must consider certain best practices. In developing the model codes, the department of local affairs must conduct a robust stakeholder and engagement process and evaluate, update, and review the model codes every 5 years.

With its development permit application for a large-load data center, the person responsible for the initial development of a large-load data center (developer) must submit a site assessment to the local government reviewing the application. A site assessment must include certain components.

If the siting of a large-load data center is proposed in a disproportionately impacted community or if an operator of an existing data center in a disproportionately impacted community plans to expand the data center's peak load such that the data center will become a large-load data center, the developer or operator must undergo a cumulative impacts analysis before the development or expansion begins. The developer or operator is required to contract with a third-party contractor selected by the department of public health and environment to perform the cumulative impacts analysis.

In reviewing a development permit application for a large-load data center that is in a disproportionately impacted community or is proposed to be in a disproportionately impacted community, the applicable local government is required to consider the applicant's cumulative impacts analysis and whether the mitigation strategies described by the applicant are sufficient to avoid any negative impacts identified in the cumulative impacts analysis. Prior to applying for a development permit that is in a disproportionately impacted community or is proposed to be in a disproportionately impacted community, a developer or operator must comply with certain public hearing, notice, and community outreach requirements.

If the siting of a large-load data center is proposed in a disproportionately impacted community or if an operator of an existing data center in a disproportionately impacted community plans to expand the data center's peak load such that the data center will become a large-load data center, the developer or operator must enter into a community benefit agreement with the disproportionately impacted community before the development or expansion begins. The developer is required to consult with the applicable local government and certain coalition groups and consider certain topics during community benefit agreement negotiations.

An operator is required to comply with certain labor standards.

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

Under current law, a court is required to release a person on a personal recognizance bond if the person was charged with an offense for a violation with a maximum penalty that does not exceed 6 months' imprisonment and the court cannot require the person to give security of any kind for their appearance for trial other than their personal recognizance, unless certain conditions exist. The bill clarifies that these provisions apply in both state and municipal courts. The bill adds to the conditions for which a person may be required to give security that the defendant previously failed to appear in court 2 or more times in the present case.

Existing law prohibits a court from imposing a monetary condition of release for a defendant charged with a traffic offense, petty offense, or comparable municipal offense, or a municipal offense for which there is no comparable state misdemeanor offense, with specified exceptions. The bill adds exceptions for:

• A petty offense for theft, criminal mischief, or arson, or a comparable municipal offense, or a municipal offense involving threats of violence, injury, or property damage, if the defendant has previously failed to appear in court 2 or more times in the present case; and
• Any other petty offense, traffic offense, or a comparable municipal offense, or a municipal offense for which there is no comparable state offense, if the defendant has previously failed to appear for a court proceeding 2 or more times in the present case and has another pending charge for the same offense in the same jurisdiction.

The bill states that if a defendant's counsel is present at a court proceeding as required by a court and the defendant is not present, with the exceptions of trial, arraignment, contested hearings, and hearings in which a witness or victim is testifying before the court, the defendant's absence may not be considered a failure to appear. The bill applies the exceptions involving previous instances of a defendant's failure to appear for a municipal court proceeding only when, prior to issuing a warrant for the arrest of the defendant for the previous failure to appear, the court conducted a search to determine whether the defendant was being held in a correctional facility or county jail, and at the time of the previous failure to appear, the court had certain processes in place governing failures to appear.

The bill requires municipal courts to not consider a person's absence from a place and time specified in a summons or summons and complaint as a failure to appear if the person's counsel is present on their behalf.

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

     Under current law, residential real property that is classified as qualified-senior primary residence real property is subject to a reduced valuation for assessment for property tax years beginning on or after January 1, 2025, but before January 1, 2027. The act ends the qualified-senior primary residence real property classification for property tax years beginning on or after January 1, 2027, and changes related requirements for county assessors, county treasurers, and the property tax administrator so that the classification and all related administrative and reporting requirements end on dates that align with the end of the reduced valuation for assessment.

     The act changes the state property tax exemption for business personal property, commencing on and after January 1, 2027, by setting the exemption at $58,000, without an adjustment for inflation. The act also sets the reimbursement for property tax losses due to the exemption, for property tax years beginning on and after January 1, 2027, at the reimbursement amount for the 2026 property tax year.


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

     The act requires a person seeking certification or recertification from the peace officers standards and training board to undergo training on various missing person alerts active within the state. The department of public safety is required to create a missing person alert training program for persons seeking certification or recertification of their peace officer status.

     The act requires an institution of higher education (institution) to either conduct a preliminary wellness assessment for no longer than 6 hours or immediately contact a law enforcement agency if a student is reported missing. If the student is not found within the 6-hour period, or if there is evidence of a credible risk to the student's safety, the institution shall notify the institution's police department or the nearest law enforcement agency with jurisdiction over the student's current local address on file with the institution or the student's permanent address on file with the institution if the institution does not have its own police department.

     An institution is required to adopt and publish a preliminary wellness assessment policy. The preliminary wellness assessment must consist of at least the following steps: A digital contact attempt, a residential verification, and an academic and social inquiry. An institution that conducts a preliminary wellness assessment is immune from civil liability if the institution acted in good faith. An institution is required to maintain contemporaneous written documentation regarding the steps the institution took to complete the preliminary wellness assessment. The records are subject to certain disclosure requirements.


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

     Beginning January 1, 2027, the act requires an agricultural employer to pay certain agricultural employees overtime pay for time worked in excess of 56 hours in a workweek. The act also increases penalties for an agricultural employer who commits wage theft and repeals the authority of the director of the division of labor standards and statistics to adopt rules concerning overtime pay for agricultural employees.


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

With regard to the family and medical leave insurance (FAMLI) program, the bill:

• Defines a neonatal intensive care unit (NICU) for the duration extension that applies to a covered individual who has a child receiving care in a NICU; and
• Extends the duration of paid FAMLI leave for claims arising on or after January 1, 2027, up to an additional 2 weeks, following the death of a family member for whom a covered individual cared for while using such leave.(Note: This summary applies to this bill as introduced.)

     An interchange fee is a fee established, charged, or received by a payment card network for the purpose of compensating an issuer for its involvement in an electronic payment transaction. The act states that a payment card network shall not, whether directly or indirectly:

• Establish, charge, or include in a fee schedule an interchange fee if:

• The interchange fee is or includes a percentage multiplied by the gross dollar amount of a transaction conducted with a debit card or credit card; and
• The fee does not exclude from the gross dollar amount of the transaction any amount attributable to a tax on the transaction; or

• Increase the rate or amount of fees that apply to the nontax portion of a transaction in an attempt to, or in a manner that would, circumvent the prohibition on interchange fees established by the act.

     The act exempts electronic payment transactions involving a debit card or credit card issued by a person, or agent of a person, that issues a debit card or credit card to a cardholder (issuer) that:

• Did not, during any point in the previous calendar year, hold consolidated worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets under management, of more than $60 billion; or
• As of February 1, 2026, had contracted to brand the card with the brand of a financial institution chartered or authorized to do business in this state that did not, during any point in the previous calendar year, hold consolidated worldwide banking and nonbanking assets, including assets of affiliates, other than trust assets under management, of more than $60 billion.

An issuer that satisfies either of these exemption descriptions must identify to a payment card network all of the issuer's debit cards and credit cards that are used for exempted transactions. The payment card network shall not, whether directly or indirectly through an agent, contract, requirement, condition, penalty, technological specification, or inducement or otherwise:

• Deny such a card access to transaction processing systems; or
• Impose any fee increase or penalty on the issuer or on a financial institution branded on the card for any costs of upgrades or configurations to payment and processing systems that may be necessary to comply with the act with respect to such cards.

     If a payment card network violates the act's prohibitions, a merchant, consumer, or other person that is injured as a result of the violation may bring a civil action against the payment card network. The act sets forth the penalties to be awarded in such an action.

     For the 2026-27 state fiscal year and each state fiscal year thereafter, the act requires each retail business that has more than 500 employees statewide on the effective date of the act to apply any savings resulting from the act to reducing prices for consumers or investing in employee wages or benefits.


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

     Current law requires each principal department of the state (department) to establish a schedule to review all of its rules. The act requires the review to occur at least every 5 years. Current law directs each department to make certain determinations when conducting the review of the rules. The act requires the following additional determinations:

• Whether the department has rules with the same or similar purpose, intent, or goal and, if so, how those are coordinated and whether redundant rules can be eliminated;
• Whether the rule is outdated or obsolete;
• Whether funding levels to support the program or function subject to the rule are appropriate; and
• Whether there are opportunities to improve the effectiveness of the rule in meeting its purpose, intent, or goal.

     Current law requires each department to present a report at its 'SMART Act' hearing regarding its mandatory review of all rules. The act permits the committee of reference presiding over the 'SMART Act' hearing to make a recommendation whether a program or function subject to the rules should be subject to a sunset review or may make a recommendation to the legislative audit committee for an audit by the office of the state auditor.

     The act clarifies the attorney general's responsibility regarding litigation discovery on behalf of the state of Colorado or on behalf of the people of the state of Colorado.


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

     The act creates the strengthen Colorado homes enterprise (enterprise), which is a government-owned business created in the division of insurance (division) in the department of regulatory agencies. The enterprise is governed by a 7-member board (board), including the commissioner of insurance (commissioner), or their designee; members with expertise in home hardening, risk mitigation, resilient roof systems, and insurance underwriting or actuarial analysis; and members representing the interests of insurance companies, consumers, and counties.

     The primary purpose of the enterprise is to impose and collect an annual fee (fee) from an admitted insurance company that offers multiperil homeowner's insurance policies in the state and is subject to certain filing requirements with the division, not including the fair access to insurance requirements association (insurer).

     The enterprise shall use fee revenue to provide business services to insurers that pay the fee, including:

• Reducing insurer losses and administrative expenses due to hail damage claims by defraying the cost of retrofitting residential property by providing grants for the installation of resilient roof systems (grants). At least 85% of the fee revenue must be used for grants to Colorado homeowners to retrofit residential property to reduce insurer losses due to hail and windstorms.
• Analyzing data on hail losses to identify areas of the state to target for installation of resilient roof systems;
• Setting standards for resilient roof systems and awarding workforce training grants for installing and certifying resilient roof systems;
• Creating codes of conduct for roofing contractors to ensure roofs are properly and appropriately installed;
• Evaluating roofing protocols to ascertain if the protocols meet science-based, certifiable standards;
• Conducting or contracting with a third party to conduct a study to analyze insurance risk in high-risk wildfire areas of the state; and
• Improving market stability throughout the state.

     Beginning in the 2027 calendar year, the amount of the fee imposed and collected by the enterprise is an amount equal to 0.5% of the total premium collected by an insurer on multiperil homeowner's insurance policies in the state in the immediately preceding calender year. The insurer shall not surcharge the fee amount to policyholders. The enterprise may lower or cease collecting the fee from an insurer in any calendar year to ensure that total fee revenue does not exceed $100 million in the first 5 years of the enterprise's existence.

     

     In awarding grants, the board shall prioritize homes that are the homeowner applicant's (applicant) primary residence and shall consider other criteria, including applicant income, the age of the roof, the size of the home, the number of grant applicants, whether the home is in a locality with hail-resistant building codes, and whether the applicant lives in a location that has historically had a higher susceptibility to extreme weather events. In order to ensure the necessary workforce, fee revenue may also be used to award grants to defray the costs of training and certification related to installing and certifying resilient roof systems. A contractor that is awarded bids and receives money from a grant is prohibited from waiving homeowner's insurance deductibles.

     In addition, the board shall use fee revenue to conduct or contract with a third party to conduct a study to analyze insurance risk in high-risk wildfire areas of the state, including an analysis of market competition in those areas and the impact of a high risk program on the potential losses in the high-risk wildfire areas of the state and the availability of homeowner's insurance in those areas. The board or third party conducting the study shall engage with relevant stakeholders that include, at a minimum, representatives of reinsurers and reinsurance brokers, insurers writing homeowner's insurance contracts or policies in Colorado, individuals with expertise in complex financial instruments and debt instruments, and consumers or other individuals with expertise in wildfire mitigation. The board shall send the study to certain committees of the general assembly.

     

     The board shall adopt rules and policies for the regulation of the enterprise's affairs and the conduct of enterprise business, including standards for resilient roof systems and standards for contractor-specialized training in the installation of impact-resistant roof systems.

     No sooner than January 1, 2027, and upon the commissioner adopting rules, an insurer offering multiperil homeowner's insurance for property or risks located in the state is required to submit an annual filing to the commissioner that includes the number of policies in force, the number of homes that have installed a resilient roof system, the discount applied to homes due to the presence of a resilient roof system, and the wind and hail claims frequency and severity for homes with and without a resilient roof system.

     $66,250 is appropriated from the legal services cash fund to the department of law to provide legal services to the department of regulatory agencies to implement the act. The appropriation is from revenue received from the department of regulatory agencies that is continuously appropriated to the department of regulatory agencies from the strengthen Colorado homes enterprise fund. The appropriation to the department of law is based on an assumption that the department of law will require an additional 0.3 FTE to implement the act.


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

     The act implements changes to the practices of the state work force development council (council), including by:

• Streamlining requirements for the council's talent pipeline report based on industry changes over the last several years;
• Creating greater flexibility to allow the council to develop certain criteria for the creation of career pathways based on data and feedback collected by the council;
• Updating the duties of the council to better reflect the council's current education, training, and workforce preparation practices; and
• Amending the directives for and duties of the position of the postsecondary and workforce readiness statewide coordinator, who works under the direction of the council, to better align with the updated working structure of that position as related to several other entities.

     The act decreases the 2026-27 state fiscal year general fund appropriation to the department of labor and employment for use by the division of employment and training, as reflected in the annual general appropriations act, by $46,605, unless the amount of general fund money appropriated for use for the council is less than the adjustment or no general fund money is appropriated for use for the council.


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

     The act:

• Authorizes the health insurance affordability enterprise (enterprise), on or after January 1, 2027, to issue revenue bonds of up to $100 million to fund enterprise programs, secured by the enterprise's revenues, and require the enterprise to pay bond obligations before allocating revenues for enterprise programs;
• Allows the enterprise to invest specified money in the health insurance affordability cash fund (cash fund) without regard to otherwise applicable requirements for such investments and to contract with private professional fund managers to advise on investment strategies;
• Modifies the allocation of enterprise revenue among authorized purposes and allows the enterprise to reallocate unexpended amounts for specified purposes;
• Directs the enterprise to require qualified individuals who are enrolled in state-subsidized individual health coverage plans eligible for subsidies from the enterprise to pay premiums established in rules adopted by the commissioner, in consultation with the health insurance affordability board (board);
• Requires the enterprise to adjust the statewide average premium reduction under the reinsurance program to 18% and to reduce the amount of bonds issued to account for the reduced costs for the reinsurance program;
• Directs the board, in recommending parameters for implementing subsidies for state-subsidized individual health coverage plans, to recommend coverage that prioritizes enrollment stability and customer predictability; when seeking input on its recommendations regarding plans, coverage, and the number of eligible slots, to enable feedback in at least English and Spanish and in other languages upon request; and to indicate how it incorporated such feedback into its final recommendations;
• Directs the enterprise to conduct or contract a third party to conduct a study to evaluate the feasibility of restructuring the enterprise programs to increase health insurance affordability and maximize enrollment in health insurance plans;
• Requires the enterprise to submit 3 written reports and make one in-person presentation to the joint budget committee each year regarding the status of the cash fund and, as part of its in-person presentation in January 2027, to provide an analysis of the effects of changing the statewide average premium reduction under the reinsurance program to 15% and of creating a tiered, income-based, structure for premium assistance for individuals who purchase insurance on the Colorado health benefit exchange (exchange);
• Repeals the tax credit for contributions to the exchange and replaces it with a tax credit for contributions to the enterprise; and
• Directs the state treasurer to transfer $40 million from the marijuana tax cash fund to the cash fund by June 30, 2026, reduces to $60 million the designation of money in the marijuana tax cash fund as the state emergency reserve for the 2025-26 and 2026-27 state fiscal years, and increases by $40 million the value of the capitol annex building for purposes of the state emergency reserve for the 2025-26 and 2026-27 state fiscal years.
  
  (Note: This summary applies to this bill as enacted.)

     In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems. The act repeals and reenacts those provisions with new requirements regarding the use of automated decision-making technology in consequential decisions.

     The act defines an 'automated decision-making technology' (ADMT) as a technology that processes personal data and uses computation to generate output, including predictions, recommendations, classifications, rankings, scores, or other information that is used to make, guide, or assist a decision, judgment, or determination concerning an individual. The act defines a 'consequential decision' as a decision that relates to an individual's access to, eligibility for, or compensation related to education, employment, housing, financial or lending services, insurance, health-care services, or essential government services and public benefits.

     The act requires the developer of an ADMT (developer) that is used to materially influence a consequential decision (covered ADMT), starting January 1, 2027, to provide a deployer of a covered ADMT (deployer) with technical documentation describing the covered ADMT's intended uses, categories of training data, known limitations, and instructions for appropriate use and human review. Developers must notify deployers of material updates or modifications to the covered ADMT. Both developers and deployers are required to retain records necessary to demonstrate compliance with the act for at least 3 years.

     The act establishes consumer notice requirements, mandating that deployers provide clear and conspicuous notice to consumers at the point of interaction with a covered ADMT. A deployer is required to provide a consumer with a plain language description of a covered ADMT's role within 30 days after the covered ADMT makes a consequential decision that results in an adverse outcome for the consumer. The attorney general must adopt rules to clarify these post-adverse outcome disclosure requirements by January 1, 2027.

     Consumers have the right to request personal data and correction of factually incorrect personal data used by a covered ADMT. The act also grants consumers the right to request meaningful human review and reconsideration following a covered ADMT making a consequential decision resulting in an adverse outcome.

     The attorney general is directed to enforce the act through the 'Colorado Consumer Protection Act', and a violation of the act is deemed a deceptive trade practice. Before initiating an action before January 1, 2030, the attorney general must provide the developer or deployer with a 60-day notice and opportunity to cure the alleged violation, if a cure is deemed possible. The act does not create a new private right of action but establishes how fault is allocated between developers and deployers in civil actions alleging unlawful discrimination under existing law.

     Specified entities are exempted from the requirements of the act to the extent the entities comply with other legal obligations.


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

     The producer responsibility program for statewide recycling (program) provides recycling services to covered entities in the state and is financed through annual dues assessed against producers of products that use packaging materials and paper products (producers).

     The bill reaffirms the authority of the solid and hazardous waste commission in the department of public health and environment (department) to direct an appeals process whereby producers may contest the program dues assessed against them by requesting a hearing before the producer responsibility program for statewide recycling advisory board (advisory board). If a producer requests a hearing before the advisory board, the advisory board is required to hold the hearing and issue written recommendations to the department as to whether the dues assessed against the producer should be adjusted. The department is required to make a determination whether to approve or reject the advisory board's recommendations regarding the assessed dues within 45 days after receiving the advisory board's recommendations on the matter. The department's determination is a final agency action subject to judicial review.


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