Rep. Naquetta Ricks

The act repeals an obsolete provision that: Authorized the department of public health and environment to award grants to 3 state institutions of higher education in state fiscal year 2006-07; and Required each recipient of a grant award to report to committees of the general assembly on or before March 15, 2007, regarding the use of the grant money awarded.(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.)

Under the federal 340B drug pricing program (340B program), a covered entity, including certain hospitals, programs, and federally qualified health centers (covered entity), that serves patients with low income receives discounted outpatient drugs (340B drugs) from manufacturers that participate in the federal medicaid and medicare programs. Unless the receipt of 340B drugs is prohibited by the federal department of health and human services, the act prohibits a manufacturer, third-party logistics provider, or repackager in this state, or an agent, contractor, or affiliate of those entities, including an entity that collects or processes health information, from directly or indirectly denying, restricting, prohibiting, discriminating against, or otherwise limiting the acquisition of a 340B drug by, or delivery of a 340B drug to, a covered entity, a pharmacy contracted with a covered entity, or a location otherwise authorized by a covered entity to receive and dispense 340B drugs. The act also prohibits a manufacturer from directly or indirectly requiring a covered entity, a pharmacy contracted with a covered entity, or any other location authorized to receive 340B drugs by a covered entity to submit any health information, claims or utilization data, or other specified data that does not relate to a claim submitted to certain federal health care programs, unless the data is voluntarily furnished or required to be furnished under federal law. The act defines "340B savings" as the difference between the aggregated market rate costs and the aggregated acquisition costs for 340 B drugs. Certain hospital covered entities are prohibited from using 340B savings for certain purposes. A violation of the prohibitions in the act is an unfair or deceptive trade practice under the "Colorado Consumer Protection Act" (protection act), and the violator is subject to the enforcement provisions and penalties contained in the protection act. In addition, a person regulated by the state board of pharmacy (pharmacy board) that violates the provisions of the protection act may be subject to discipline by the pharmacy board against the person's license, certification, or registration, as well as other penalties. The act requires certain hospital covered entities to annually report to the department of health care policy and financing certain information concerning 340B savings and costs relating to providing charity care. (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.)

With regard to the family and medical leave insurance program (program), the act extends the duration of paid family and medical leave, up to an additional 12 weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit. The act also changes the premiums financing the program benefits by extending the current premium amount, 0.9% of wages per employee, through 2025 and setting the premium amount for the 2026 calendar year at 0.88% of wages per employee. For each subsequent calendar year, the director of the division of family and medical leave insurance (director) is required set the premium on or before September 1 of the preceding year, in a manner such that: At the end of the year, the balance of the family and medical leave insurance fund (fund) is not less than 6 months' worth of projected expenditures from the fund required for performance of the functions and duties of the director; The volatility of the premium rate is minimized; and The premium amount does not exceed 1.2% of wages per employee.(Note: This summary applies to this bill as enacted.)

For state fiscal year 2025-26, the act appropriates $5,000,000 from the species conservation trust fund in the state treasury for various wildlife conservation programs directed at conserving candidate native species that have been listed as threatened or endangered under state or federal law or are species that are likely to become candidate species, as determined by the United States fish and wildlife service, as follows: $2,480,000 for the upper Colorado river endangered fish recovery program; $20,000 for selenium management, research, monitoring, evaluation, and control; $1,250,000 for native terrestrial wildlife conservation; and $1,250,000 for native aquatic wildlife conservation.(Note: This summary applies to this bill as enacted.)

The act creates state procurement practices for firearms and items regulated pursuant to the federal "National Firearms Act" ("NFA"). The act applies to all contracts the state sources, enters into, awards, amends, renews, or extends on or after January 1, 2026, for procuring firearms or items regulated pursuant to the "NFA". During a governmental body's contracting process, sourcing method process, or upon request during the term of a contract, a contractor or bidder shall comply with certain requirements, make certain disclosures, and provide certain documentation to confirm that the contractor or bidder engages in safe business practices. The attorney general may assist the department of personnel (department) in developing processes and procedures to implement the procurement practices. The department may adopt rules to implement this act. (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.)

The act prohibits the sale or distribution for consideration of an algorithmic device if: The algorithmic device is sold or distributed with the intent that it will be used by 2 or more landlords in the same market or a related market to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises; and The device sets or recommends the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises based on data or a formula that is similar for each landlord. The act also prohibits the use of an algorithmic device by a person to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises if: The person knew or should have known that another person used the algorithmic device to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises; and The circumstances suggest that the person adhered to or participated in a scheme to fix the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises. The act also prohibits a person engaged in the business of providing algorithmic device services or products that are used to set or recommend the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises from using nonpublic competitor data pertaining to residential properties in Colorado in setting or recommending the amount of rent, level of occupancy, or other commercial term associated with the occupancy of a residential premises for residential properties in Colorado. A violation is deemed to be an illegal restraint of trade or commerce and is punishable in accordance with the "Colorado State Antitrust Act of 2023". VETOED by Governor 5/29/2025(Note: This summary applies to this bill as enacted.)