Rep. Michael Carter

The act clarifies that, under current law, the department of public health and environment may use up to 10% of appropriated money to administer and manage project grants concerning public water systems and wastewater treatment works in small communities. (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.)

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.)

Current law does not allow a voice court reporter to administer an oath or affirmation. The act adds voice reporters to the list of professionals who may administer an oath or affirmation. (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.)

Current law requires the department of corrections (department) to assess a copayment for inmate-initiated visits to providers of medical, dental, mental health, and optometric care services. Current law permits a waiver or reduction of the copayment under a range of circumstances. The department's current administrative regulations assess fees when an inmate fails to attend or refuses a scheduled health-care appointment. The act eliminates the copayment and prohibits the department from assessing a fee when an inmate fails to attend or refuses a health-care appointment. The department is required to report during its 2026 "SMART Act" hearing on the number of times in the previous year that an inmate failed to attend a scheduled health-care appointment or requested an appointment when the request was not relevant to an actual medical condition. The act reduces appropriations to the department by a net of $165,682, which includes an increase of $157,179 appropriated from the general fund and a decrease of $322,861 from cash funds. VETOED by Governor 5/29/2025(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.)

Under current law, a sheriff may allow an individual to choose to stay in jail overnight after release when extenuating circumstances exist. The act makes facilitation of a connection to a service provider an extenuating circumstance. If an individual chooses to remain in jail overnight, the individual must be released by 10 a.m. the next morning. Under current law, to qualify for special needs parole, there is a distinction between inmates who are 55 years of age or older and those who are under 55 years of age. The act changes that distinction. The act makes an inmate eligible for special needs parole if the inmate suffers from a diagnosed severe cognitive impairment or serious impairment that limits the person's ability to function. If the inmate is under 55 years of age, the act provides for special needs parole if the inmate has served at least 25% of the inmate's sentence and is eligible for parole after serving 50% of their sentence including earned time; has served at least 35% of the inmate's sentence and is eligible for parole after serving 75% of their sentence including earned time; has served at least 40% of the inmate's sentence and is eligible for parole after serving 75% of the sentence; or has been diagnosed by a licensed health-care provider as having a terminal illness that is irreversible, unlikely to be cured, and likely to cause death; and has not incurred a class I code of penal discipline violation within the 12 months before the date of the application for special needs parole. An inmate who is 64 years of age or older and has served at least 20 years of their sentence and was not convicted of a class 1 or class 2 felony, unlawful sexual behavior, a crime that includes domestic violence, or stalking is eligible for special needs parole. The act makes a person eligible for special needs parole if the person has a condition such as advanced or metastatic cancer; end-stage renal disease; end-stage chronic obstructive pulmonary disorder; end-stage heart disease; end-stage liver disease; progressive neurodegenerative disease such as Huntington's disease, Parkinson's disease, and amyotrophic lateral sclerosis; intractable seizure disorder; severe dementia; or Alzheimer's disease. The act provides that when a health-care provider who is providing care or recently provided care to the person makes a determination that the person's medical condition meets the standard for special needs parole, then a referral must be made to the parole board. The department of corrections is required to include in each contract with a licensed health-care provider involved in providing inmate care a requirement that the provider screen for eligibility for special needs parole. The act requires legislative council staff to conduct a study of options for releasing aging and seriously ill offenders from secure custody to appropriate care or placing offenders in alternative programs that can better provide the offender's needed medical care. (Note: This summary applies to this bill as enacted.)

The act requires the state board of education (board) to adopt high school health education standards regarding drug overdose risks, identification of a drug overdose event, and drug overdose prevention and response. The act authorizes the board to seek, accept, and expend gifts, grants, or donations for the purpose of adopting these standards. The board must adopt the standards on or before July 1, 2028, if, the board receives by July 1, 2026, $20,000 from gifts, grants, or donations to adopt the standards. If sufficient money is not received, the board is required to adopt the standards on or before July 1, 2032, pursuant to the general standards schedule. Under current law, a school district, the state charter school institute (institute), or the governing board of a nonpublic school may adopt and implement a policy allowing an employee or agent of the school to furnish an opioid antagonist to any individual, including a student, but only if the student has received appropriate school-sponsored training. The act repeals the required condition that a student must receive appropriate school-sponsored training. The act authorizes a school district, the institute, a public school, or a nonpublic school to seek, accept, and expend gifts, grants, or donations for purposes related to acquiring, maintaining, and providing training for administering opioid antagonists. (Note: This summary applies to this bill as enacted.)

The act makes changes to requirements for preventive care coverage by health insurers for breast cancer screening, including: Relocating in statute the high-risk breast cancer screening requirements; Defining and specifying criteria for the use of diagnostic breast examinations and supplemental breast examinations; and Clarifying that, in addition to regular breast cancer screening, diagnostic and supplemental breast examinations that are medically necessary and conducted within nationally recognized screening guidelines do not require cost sharing by the patient.(Note: This summary applies to this bill as enacted.)