Rep. Amy Paschal

The act continues the just transition advisory committee (advisory committee) until September 1, 2030. Prior to its repeal, the department of regulatory agencies will conduct a sunset review of the advisory committee. The act requires the just transition office in the department of labor and employment (office) to consult with the advisory committee on issues related to the impact of facility closures and job layoffs in coal-related industries in a manner that best ensures continued economic stability and prosperity for impacted workers and communities during and after the transition away from coal as an economic driver. The office is also directed to develop and implement plans to maximize the economic stability and prosperity of coal workers and communities. When the general assembly created the advisory committee in 2019, the advisory committee was required to develop a draft just transition plan (plan) before July 1, 2020. The act repeals obsolete references to the development of the plan and requires the director of the office to update the plan as needed. The act increases the number of coal transition workers appointed to the advisory committee from 3 to 5 and requires that at least one advisory committee member works at a coal mine and at least one member works at an electric utility. (Note: This summary applies to this bill as enacted.)

The act creates 2 income tax subtractions for income tax years commencing on or after January 1, 2027, but before January 1, 2038. The first subtraction is for an amount equal to state capital gains that are realized by a taxpayer, who is the owner of a qualified business, during the taxable year for the conversion by an increment of at least 20% ownership to a qualified employee-owned business. The taxpayers that are eligible for this subtraction are the same taxpayers that would be eligible for the tax credit for conversion costs for employee business ownership. The total amount of capital gains that a taxpayer may subtract is set by and may be annually adjusted by the Colorado office of economic development (office), and is required to be posted on the office's website. The second subtraction is allowed to worker-owned cooperatives in an amount equal to the worker-owned cooperative's federal taxable income for the tax year not to exceed $1 million. The act also makes changes to the tax credit for conversion or expansion costs for employee business ownership (credit), which has been available through income tax year 2026. The act extends the credit through income tax years commencing in 2031. The act also specifies that the aggregate amount of credits that can be claimed for each income tax year commencing on or after January 1, 2026, but before January 1, 2032, is $3 million. The act also increases the percentage of conversion or expansion costs that are eligible to be claimed for the credit from 50% to 75% beginning in tax year 2026 while maintaining the existing dollar caps for the different methods of conversion. Additionally, the act revises several definitions to expand eligibility for the credit and allows for qualified support entities, which are businesses or nonprofit organizations that provide services to businesses that qualify under the credit so that those businesses can convert or expand to employee ownership, to be eligible to receive the credit for up to 75% of the costs incurred for providing such support, not to exceed $167,000, including for staff salaries and benefits, marketing and outreach, and consulting and technical assistance. Support costs exclude any costs that are considered conversion or expansion costs that can be claimed in the credit for employee business ownership. (Note: This summary applies to this bill as enacted.)

The act authorizes the legislative council to approve agreements between the director of research of the legislative council and nonpartisan organizations to place nonpartisan legislative policy fellows (fellows) in the legislative council staff. The act also specifies the types of work that fellows may do, requires the director of research to retain supervisory authority over fellows, including over the terms and conditions of the fellowship, and requires any work product produced by a fellow during the fellowship to remain the property of the general assembly during and after the conclusion of the fellowship. The legislative council is prohibited from approving any agreement between the director of research of the legislative council and a nonpartisan organization that is registered as a lobbyist with the secretary of state to place a fellow in the legislative council staff. (Note: This summary applies to this bill as enacted.)

Current law limits to 10 years the time a school district can lease district property not needed for its purposes. The act allows a school district to lease district property for any term of years for purposes of a solar field, energy storage system, or affordable housing. If a board of education of a school district leases or rents property for the purposes of an affordable housing project, the board of education shall develop a policy that defines affordable housing for the project. (Note: This summary applies to this bill as enacted.)

The act removes the term "homosexuality" from the definition of sexual conduct in the sexually explicit materials harmful to children part of the "Colorado Criminal Code". (Note: This summary applies to this bill as enacted.)

Beginning January 1, 2027, the act: Allows a pharmacy benefit manager (PBM) to earn income derived from the assessment of a flat-dollar service fee for the provision of a prescription drug; Prohibits a PBM from earning income based on the price or cost of a prescription drug; Prohibits a PBM from designing a formulary to favor a certain branded pharmaceutical or biologic; Requires a PBM to be reimbursed by a health benefit plan for lowering the plan's prescription drug spending over a given period of time and for the direct services the PBM provides to the plan; Sets the amount that a PBM shall reimburse an unaffiliated pharmacy or a PBM-affiliated retail, mail order, or specialty pharmacy for a prescription drug; and Requires a contract between a PBM and a health benefit plan to contain a provision where the PBM discloses prescription drug cost information to the health benefit plan and a provision authorizing the health benefit plan to execute an audit to validate compliance with the contract.(Note: This summary applies to this bill as enacted.)

The act changes the term "epinephrine auto-injector" to "emergency-use epinephrine" in order to encompass alternatives to injecting epinephrine as a means to treat anaphylaxis in school settings. (Note: This summary applies to this bill as enacted.)

The act requires that, for health insurance policies providing maternity coverage, policies issued or renewed on or after January 1, 2027, must include prenatal care coverage without cost sharing for up to 3 office visits. (Note: This summary applies to this bill as enacted.)

For ground ambulance services (ambulance services), the act: Allows a political subdivision or an ambulance service providing ambulance services on behalf of the political subdivision to submit to the division of insurance (division) the established rates for the ambulance services, if the rates meet specified conditions; Requires the division to publish reimbursement rates on the division's public-facing website; Establishes reimbursement rates for ambulance services that are out of network; and Prohibits an out-of-network ambulance service from billing an individual covered under a health insurance coverage plan (covered person) any outstanding balance for a covered service not paid for by an insurance carrier, except for any coinsurance, deductible, or copayment amount required to be paid by the covered person. If a covered person makes a payment for an out-of-network ambulance service, the payment must be applied to the covered person's in-network deductibles and in-network out-of-pocket maximum amounts. For the 2025-26 state fiscal year, $38,149 is appropriated from the division of insurance cash fund to the department of regulatory agencies for use by the division to implement the act. VETOED by Governor 5/29/2025(Note: This summary applies to this bill as enacted.)

Section 1 of the act creates the prescribed fire claims cash fund (fund) in the state treasury and requires the state treasurer to transfer $250,000 from the general fund to the fund on July 1, 2025. Subject to annual appropriation by the general assembly, the division of fire prevention and control (division) shall expend money from the fund to pay claims for damages related to prescribed burns that are certified by the division in accordance with new guidelines as specified in the act and as adopted by the director of the division. The division shall authorize a payment in the amount certified in a claim; except that the maximum payment that the division may authorize for a singular burn is equal to the greater of $20,000 or 10% of the amount of money in the fund at the time the claim is filed. Subject to annual appropriation by the general assembly of money for the division to administer the fund, the division shall certify a claim that meets the following guidelines: The claim demonstrates, in sufficient detail, the costs or damages that resulted from the prescribed burn; The prescribed burn that resulted in the costs or damages was conducted in full compliance with statutory and regulatory requirements for prescribed burning; Before conducting the prescribed burn, the certified prescribed burn manager registered the written prescription plan for the prescribed burn with the division and paid an administrative fee; and No more than 60 days have passed between the completion of the prescribed burn and the date upon which costs and damages were incurred. The act authorizes the director of the division to adopt rules and guidelines for the implementation and administration of the program and permits the division to contract with a third party to administer, certify, and pay the claims. The act also requires a claimant who accepts a payment that covers the full amount certified in the claim to waive all future claims related to the prescribed burn against the certified prescribed burn manager that conducted the burn; any organization, entity, or individual with whom the certified prescribed burn manager worked to conduct the burn; any individual or entity that provided funding for the burn; and any landowner on whose behalf the burn was conducted. Sections 2 and 3 expand the definition of a "certified burner" in the state to include an individual who has not completed the Colorado division's training and certification program but who meets reciprocity requirements and possesses a valid Colorado certification number. An individual seeking certification through reciprocity may receive a certification number from the division by: Applying for certification to the division, according to the rules and standards of the division, including the payment of any associated fee; and Submitting evidence to the division, according to the rules and standards of the division, that the individual holds a valid certification from a state government or other entity. The required rules and standards adopted by the director of the division, in consultation with the Colorado state forest service, pertaining to the qualification for and the terms and durations of certification, are required to include certification through reciprocity. Section 4 adds pretax costs associated with the implementation of an approved program or project to mitigate the effects of extreme weather, wildfires, climate change, or other hazards to the definition of Colorado energy impact costs. For the 2025-26 fiscal year: $250,000 is appropriated from the fund to the department of public safety for use by the division for prescribed fire claims; and $153,025 is appropriated from the general fund to the department of public safety for implementation of the act.(Note: This summary applies to this bill as enacted.)