Colorado Bills

In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems (provisions).The provisions include a definition of "consequential decision", which definition determines the types of artificial intelligence systems that are considered high-risk artificial intelligence systems for the purpose of the provisions and, therefore, regulated under current law. The bill narrows the definition of "consequential decision" to only include decisions related to employment or public safety.The bill also:Changes the effective date of the provisions from February 1, 2026, to August 1, 2027;Exempts businesses with fewer than 250 employees from the provisions;Exempts businesses with less than $5 million in annual revenue from the provisions; andExempts local governments with fewer than 100,000 residents from the provisions.(Note: This summary applies to this bill as introduced.)

The bill creates an income tax credit for a resident individual's contributions to a health savings account that supports a high deductible health plan, as defined pursuant to federal law (credit). The credit is an amount equal to 25% of the amount of the contribution, limited to:$500 for a single filer;$1,000 for joint filers; and$1,500 for contributions to a family health plan.If the credit exceeds the income taxes due on the resident individual's income, the amount of the credit not used to offset income taxes is not carried forward as tax credits against the resident individual's subsequent years' income tax liability and is not refunded to the individual. The executive director of the department of revenue is required to adopt rules implementing the credit.(Note: This summary applies to this bill as introduced.)

In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems (provisions). The bill repeals the provisions and declares that prohibitions on discrimination contained in Colorado law apply regardless of whether the challenged conduct is executed, facilitated, or scaled by means of a digital, automated, algorithmic, artificial intelligence, machine learning, or other technological process.(Note: This summary applies to this bill as introduced.)

The refinance discretionary account (account) created in the ARPA refinance state money cash fund consists of state money credited to the account when, during the 2024 legislative session, the general assembly exchanged money that the state received pursuant to the "American Rescue Plan Act of 2021" (ARPA) with state money. The governor has discretion to designate any department as a recipient of money from the account to be used for any allowable purpose under ARPA.The bill requires the state treasurer to transfer, within 3 days of the effective date of the bill, the unexpended and unencumbered balance of money in the account that did not originate from the money the state received from the coronavirus state fiscal recovery fund from the account to the health insurance affordability cash fund.(Note: This summary applies to this bill as introduced.)

Section 3 of the bill creates a mechanism for temporarily suspending or prorating all income tax credits, excluding the Colorado affordable housing tax credit and the earned income tax credits (income tax credits), based on estimates of the state's revenue. Beginning with the December 2025 quarterly revenue forecast, each quarterly revenue forecast in June, September, or December, and any interim revenue estimate given between quarterly forecasts, must include 2 estimates of the amount of excess state revenues in relation to the income tax credits available. Excess state revenues, for purposes of these estimates, means the total amount of revenue collected by the state during the state fiscal year in excess of the limitation on state fiscal year spending imposed by the Taxpayer's Bill of Rights that voters statewide have not authorized the state to retain and spend, less: The reimbursement to local governments to offset the reduction in property taxes resulting from property tax exemptions for qualifying seniors, veterans with disabilities, and spouses of veterans who died in the line of duty or as a result of a service-related injury or disease; the reimbursement to local governments to offset the reduction in property taxes resulting from the reduced valuation for assessment of qualified-senior primary residences; and any temporary income tax rate reduction in effect. These estimates are:An estimate of the amount of excess state revenues in the state fiscal year during which the income tax year begins, assuming all income tax credits are available in the following income tax year; andAn estimate of the amount of excess state revenues in the state fiscal year during which the income tax year begins, assuming no income tax credits are available in the following income tax year.The availability of income tax credits for the applicable income tax year is determined by which of these estimates results in the least amount of excess revenue. If the most recent quarterly June, September, or December revenue forecast, or the most recent interim revenue estimate, shows that:The estimate without income tax credits results in the least amount of excess revenue, then no income tax credits are available for the applicable income tax year; orThe estimate with income tax credits results in the least amount of excess revenue, then all income tax credits are available for the applicable income tax year and are prorated so that the maximum total amount of each income tax credit claimed by all taxpayers claiming that credit does not exceed the amount equal to the estimated excess state revenues divided by the total number of income tax credits available during the applicable income tax year.The bill also makes the family affordability tax credit nonrefundable beginning in income tax year 2025 ( section 2 ).Lastly, the bill alters the following refundable income tax credits:The credit for the sale of new, electric-powered lawn equipment for income tax years commencing on or after January 1, 2024, but before January 1, 2027. Under existing law, this credit is allowed to qualified retailers who sell new, electric-powered lawn equipment and offer a discount on the purchase price ( section 4 );The credit for the installation of heat pump technology or a thermal energy network for income tax years commencing on or after January 1, 2024, but before January 1, 2033. Under existing law, this credit is allowed to eligible taxpayers who meet certain industry criteria and install heat pump technology or a thermal energy network, if the eligible taxpayer provides a discount from the amount charged for installation ( section 5 ); andThe credit for the sale of new qualified electric bicycles for income tax years commencing on or after January 1, 2024, but before January 1, 2033. Under existing law, this credit is allowed to qualified retailers who sell a qualified electric bicycle and offer a discount on the bicycle purchase price ( section 6 ).The bill modifies the 3 income tax credits so that income tax year 2025 is the last tax year that each credit can be claimed as it currently exists and allows the department of revenue (department) to sell the income tax credits in state fiscal year 2025-26 to taxpayers who meet the existing eligibility requirements (qualified taxpayers). In state fiscal year 2025-26, the department is authorized to issue up to $40 million in income tax credit certificates to qualified taxpayers, subject to procedures established by the department. The proceeds of these sales are credited to the general fund. A qualified taxpayer may claim the full amount of tax credit against its income tax liability in income tax year 2030; except that the amount of the credit claimed cannot exceed the taxpayer's income tax liability for a given year. The unused amount of the credit carries forward and may be claimed in subsequent years; except that a credit cannot be carried over to any taxable year that begins after December 31, 2050.(Note: This summary applies to this bill as introduced.)

The act requires an organization, defined in the act as a battery stewardship organization, to, no later than July 1, 2027, and every 5 years thereafter, submit to the executive director of the department of public health and environment (executive director) a battery stewardship plan (plan), which is a plan for the collection, transportation, processing, and recycling of certain batteries. On and after August 1, 2027, a producer selling, making available for sale, or distributing certain batteries or battery-containing products in or into the state must participate in and finance a battery stewardship organization that has submitted a plan to the executive director. On and after July 1, 2029, a retailer is prohibited from selling, offering for sale, distributing, or otherwise making available for sale certain batteries or battery-containing products in the state unless the producer of the batteries or battery-containing products is participating in a battery stewardship organization that has an approved plan. A retailer is prohibited from charging a point-of-sale fee to consumers to cover the costs of a battery stewardship organization. The act specifies what a plan must contain to be approved by the executive director, including, among other things, contact information for participating producers, performance goals, and methods to promote participation in the plan and increase public awareness of the battery stewardship program (program) that will be implemented by the battery stewardship organization pursuant to the plan. In addition, a plan must detail how the battery stewardship organization will arrange for the collection of certain batteries by establishing collection sites that are available free of charge to any person. A battery stewardship organization implementing an approved plan is required to develop and administer a system to collect charges from participating producers to cover the costs of implementing the program. In addition, a battery stewardship organization, in consultation with the department of public health and environment (department) and interested stakeholders, must complete an assessment of the opportunities and challenges associated with the end-of-life management of certain batteries, which assessment must be submitted by the department to the general assembly on or before March 1, 2028. On or before June 1, 2029, and on or before each June 1 thereafter, a battery stewardship organization with an approved plan must submit an annual report to the executive director, which report must include certain information about the preceding year of plan implementation. The act also requires a battery stewardship organization to carry out promotional activities to increase public awareness of the program. Battery stewardship organizations with approved plans must coordinate to conduct a survey of public awareness of the programs and share the results of the survey with the executive director as part of the annual reports. A battery stewardship organization is required to pay a one-time fee of $50,000 at the time of submittal of a plan to the executive director. If the executive director approves the plan, the battery stewardship organization is required to pay an additional fee of $86,000. Within 12 months after a plan is approved, and on or before each July 1 thereafter, a battery stewardship organization must pay to the department an annual fee to cover the department's cost of implementing, administering, and enforcing the act's requirements. The solid and hazardous waste commission establishes the amount of the annual fee by rule. On and after January 1, 2028, the act prohibits a producer or retailer from selling, offering for sale, or distributing in or into the state certain batteries unless the batteries are marked with labels that: Identify the producer of the batteries; and Include certain information to ensure the proper collection and recycling of the batteries. Beginning January 1, 2030, a person is required to manage certain unwanted batteries through delivery to a collection site, program, or event established by the program. A person is prohibited from disposing of certain batteries in a landfill. The department will enforce violations of the act's requirements pursuant to the enforcement process for the state hazardous waste management program. (Note: This summary applies to this bill as enacted.)

The act modifies the state property tax deferral program (program) under which the state makes a secured loan to a qualified taxpayer to pay property taxes owed for the taxpayer's homestead by: Again limiting eligibility for the program to seniors and persons called into active military service, who, until a 2021 program expansion also allowed otherwise nonqualifying taxpayers whose property tax had increased by at least a specified percentage to participate, had been the only eligible individuals; and Shifting portions of the responsibility for the administration of the program that had been shifted from the county treasurers to the state treasurer in 2022 back to the county treasurers. For the 2025-26 state fiscal year, $160,826 is appropriated from the general fund to the department of the treasury for operating expenses related to the implementation of the act. (Note: This summary applies to this bill as enacted.)

The state allows a student pursuing higher education who satisfies statutorily specified eligibility criteria to claim an income tax incentive for amounts paid for tuition and fees for qualifying academic semesters or terms that the student completes. The act clarifies the statute that provides for the income tax incentive to improve the administration, including data tracking and reporting, of the incentive. For the 2025-26 state fiscal year, $135,446 is appropriated from the general fund to the department of revenue for use by the taxation business group to implement the act. (Note: This summary applies to this bill as enacted.)

To determine objections and protests concerning valuations of taxable property, state law requires a county with a population of over 300,000 (mandatory county) to use alternate protest and appeal procedures (alternate procedures) in any general reassessment year for real property that is valued biennially and allows any other county (elective county) to use alternate procedures. Alternate procedures deadlines for county assessors and taxpayers are later than standard protest and appeal procedure deadlines. The act clarifies that the later deadlines for alternate procedures apply to all mandatory counties and elective counties that use alternate procedures. The act also updates the deadline for an assessor to conclude all hearings for objections and protests concerning valuations of taxable real property from June 1 to June 8 to better reflect the intent of previously enacted law. (Note: This summary applies to this bill as enacted.)

In current law, a "qualified individual" is authorized to determine the cause of death of an individual and complete the medical certification for a certificate of death. The act defines the term "qualified individual" to include a physician, a physician assistant, an advanced practice registered nurse, or the chief medical officer of the institution in which the death occurred. The act requires that qualified individuals register to use the electronic death registration system used by the department of public health and environment (department) and the state registrar prior to signing a death certificate. Physician assistants and advanced practice registered nurses are required to review training materials regarding signing a death certificate provided by the department before the first time they sign a death certificate. For the 2025-26 state fiscal year, $25,000 is appropriated to the department from the vital statistics records cash fund for use by the center for health and environmental data to implement the act. (Note: This summary applies to this bill as enacted.)

The act modifies the "Revised Uniform Unclaimed Property Act" (RUUPA) as follows: Sections 1, 2, 6, and 7 clarify the treatment under RUUPA of legacy preneed contracts, which are preneed contracts for funeral services entered into before August 10, 2022; Sections 2, 3, and 8: Modify the definition of virtual currency; Specify that virtual currency is presumed abandoned 3 years after the latest indication of interest by its apparent owner; Require a holder of unclaimed property (holder) that is reporting unclaimed virtual currency to the state treasurer (administrator) to liquidate the virtual currency within 30 days of filing the report and remit the liquidation proceeds to the administrator unless the virtual currency cannot be liquidated, in which case the administrator may require the holder to transfer the virtual currency to an administrator-selected custodian or continue to hold the virtual currency until it can be liquidated or until an apparent owner expresses interest in it; and Specify that the owner of the virtual currency has no recourse against either the holder or the administrator for any gain in value of the virtual currency after liquidation; Section 4 modifies the circumstances under which a tax-deferred retirement account is presumed abandoned so that abandonment is presumed if the account is unclaimed by the apparent owner 3 years after it becomes payable or distributable if the owner has not accepted the distribution, corresponded in writing concerning the distribution, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the fiduciary of the trust or custodial fund or the administrator of the plan under which the trust or fund is established; Section 5 shortens the period for which a holder required to file a report regarding property that is presumed abandoned must retain records from 10 to 6 years; Section 9 requires a holder that pays money to the administrator to file a claim for reimbursement from the administrator of the amount paid within 2 years of remitting and reporting the money paid; Section 10 reduces the amount of time after a duty of a holder arises that the administrator has to commence an action, proceeding, or examination with respect to the duty from 10 years to 6 years; Section 11 clarifies the authority of the administrator with respect to the sale or other disposition of unclaimed thinly traded securities; If the administrator determines that a county or a municipality owns unclaimed property in the possession of the administrator, section 12 authorizes the administrator to issue a warrant to or transfer the property to an operating account of the county or the municipality; Section 13 acknowledges that the administrator may require a person making a claim for unclaimed property to supply any documents, including nonpublic and nonredacted documents, that are necessary to prove ownership of the property; Section 14 reduces the maximum amount of compensation allowed to be paid under an agreement to recover or assist in recovering an unclaimed overbid transferred to the administrator from either 30% or 20% of the amount of the overbid depending on when the agreement is entered into to 10% of the amount of overbid without regard to when the agreement was entered into; Section 15 clarifies that unless another provision of RUUPA provides otherwise, all records, documents, and information submitted by a claimant to the administrator or the administrator's agent to enable the administrator or agent to determine whether the claimant is the owner of the property are confidential and exempt from public inspection or disclosure; and Section 16 repeals a statutory exemption from RUUPA for a local government that is a holder of property and satisfies specified conditions because few local governments have met the specified conditions.(Note: This summary applies to this bill as enacted.)

Prior to taking enforcement actions to recover money owed to a unit owners' association (HOA) and related collection costs or attorney fees through the foreclosure of an association lien, the act requires the HOA to be in compliance with HOA lien or foreclosure laws (lien or foreclosure laws) and applicable lien or foreclosure provisions of the HOA's declaration, bylaws, articles, and rules and regulations (governing documents). If the HOA is not in compliance with the lien or foreclosure laws or the governing documents, the court may stay the foreclosure proceedings to grant the HOA reasonable time to come into compliance and shall consider the effect of the HOA's noncompliance if awarding the HOA attorney fees. For purposes of sending notices to unit owners relating to delinquent assessments or foreclosure actions, the HOA shall periodically request from a unit owner or the unit owner's designated contact an email address, a telephone number, and a cellular number for texts. An HOA's written policy concerning the collection of unpaid assessments must require the notice of deficiency that the HOA sends to a unit owner to include the following: An advisement that the unit owner may request a copy of the HOA's ledger verifying the amount owed, which copy of the ledger shall be sent to the unit owner no later than 7 business days after the request; An advisement that failure to pay a delinquent assessment could result in the HOA filing a lien and instituting foreclosure of the lien (foreclosure action) and that a foreclosure action could result in the sale of the unit at auction and the unit owner losing some or all of the unit owner's equity in the unit; and An advisement that free information relating to the HOA's collection of assessments and the HOA's ability to file a foreclosure action and a link to credit counseling information is available online through the HOA information and resource center (recourse center). At least 30 days prior to initiating a foreclosure action, the HOA must send notice of the HOA's intent to foreclose the association lien, including notice that the foreclosure of the lien will result in the sale of the unit at auction, which could result in the unit owner losing all or some equity in the unit; the unit owner may obtain credit counseling prior to foreclosure; and free online information relating to foreclosure by an HOA is available through the resource center. No later than 5 business days after the HOA initiates legal action to foreclose a lien and sell a unit at auction, the HOA shall provide the unit owner with notice that the unit owner has a right to cure the delinquency and to file a motion with the court to stay the sale of the property at auction. At any time after an HOA files an action for foreclosure of the HOA's lien on a unit, but prior to the date of auction, the unit owner may file a motion with the court to stay the auction of the unit to allow the unit owner to list the unit for sale at fair market value or at an alternate amount determined by the court. The court's order is in effect for 9 months after the date of the order. The court may extend the 9-month stay for good cause or upon proof that the sale of the unit is imminent. Proceeds from the sale will be held in escrow for the court to determine the distribution of the sale proceeds. As part of an HOA's annual registration (annual registration) with the director of the division of real estate in the department of regulatory agencies (director), an HOA shall submit the following information, which aggregated data must be included in the resource center's annual report: The number of unit owners 6 or more months delinquent in the payment of assessments during the preceding 12 month period; The number of judgments obtained against unit owners; The number of payment plans entered into with unit owners; and The number of foreclosure actions filed by the HOA and other information requested by the director.(Note: This summary applies to this bill as enacted.)