Rep. Lesley Smith

The act requires the department of health care policy and financing (state department) to establish a statewide database to provide accurate information about certain individual residential services and supports settings and their associated service provider agencies. The database will be used by the state department, the department of public health and environment, and service provider agencies. Information from the database may only be shared with the public upon determination by the state department and consistent with state and federal privacy and confidentiality laws.     The act requires service provider agencies to submit the required information to the state department beginning July 1, 2026, and quarterly thereafter, and requires the state department to update the database within one month after receiving the required information from the service provider agencies.     The act clarifies that individual residential services and supports settings must be treated as residential properties in the application of local regulations, including zoning, land use development, fire and life safety, sanitation, and building codes. The act prohibits local governing authorities from imposing additional regulations on individual residential services and supports settings that do not apply to other residential properties.     The act appropriates $20,000 to the state department from the general fund to implement the act.     It is anticipated that the state department will receive $60,000 in federal funds for the executive director's office to implement the act.(Note: This summary applies to this bill as enacted.)

The act requires that school districts test the vision of students in pre-kindergarten, in addition to testing the vision of students in kindergarten and the first, second, third, fifth, seventh, and ninth grades.     The act updates terminology by replacing the word 'sight' with the word 'vision'.(Note: This summary applies to this bill as enacted.)

The act prohibits individuals lawfully permitted to provide psychotherapy services in the state (regulated professionals) from allowing an artificial intelligence system (AI system) to interact with clients in any form of therapeutic communication without synchronous, real-time interaction between the regulated professional, the AI system, and the client, or generate therapeutic recommendations or treatment plans without review and approval by the regulated professional.     Except for educational, administrative, simulation, or training purposes or as part of a research program, a regulated professional shall not use an AI system to provide, direct, or guide psychotherapy, clinical intervention, counseling, diagnosis, treatment planning, or other activity that constitutes the practice of psychotherapy with an individual or group unless the use satisfies the conditions specified in the act. At initial client contact, a regulated professional shall inform clients of the prohibitions regarding use of AI systems in the practice of psychotherapy. Regulated professionals may be disciplined by the appropriate licensing board in the department of regulatory agencies for violations of this act.     The act allows regulated professionals to use an AI system to assist in providing administrative support or supplementary support, as these terms are defined in the act, for psychotherapy services if the regulated professional maintains responsibility for reviewing any outputs of the AI system used to provide administrative support or supplementary support. If a client's therapeutic session will be recorded or transcribed through the use of an AI system, the regulated professional must disclose in advance the use of an AI system and the purposes for its use, and obtain written, informed consent from the client.     The act does not prohibit a regulated professional from using an AI system within accredited or approved educational, instructional, or professional training programs, so long as the AI system is used solely for educational, administrative, simulation, or training purposes and is not deployed, marketed, or represented as a tool for use with clients, patients, or the public. Further, a regulated professional may be involved in the development, testing, or evaluation of an AI system solely for research purposes under the oversight of a federally registered institutional review board, so long as the AI system is not offered to consumers or used outside of the research setting.     The act does not apply to regulated professionals who use or recommend the use of technology in the state that does not diagnose or treat mental health disorders, clearly discloses that the technology is not a substitute for clinical care, and:Provides self-help, therapeutic homework, coaching, patient navigation, guided meditation, journaling, or other tools specified in the act; orIs regulated by the federal food and drug administration.     Except as provided in the act, the act also makes it an unfair or deceptive trade practice under the 'Colorado Consumer Protection Act' for an individual, corporation, or entity (person) to use any term, letter, or phrase in the use of an AI system in a manner that:Indicates or implies that the AI system's outputs are provided by, endorsed by, or equivalent to services provided by a regulated professional;Represents that the AI system provides psychotherapy services; orRepresents that a user's data is confidential in a manner that would lead a reasonable user to believe that the privacy of their data is protected in a manner similar to therapist-client confidentiality.      The act does not impose liability on a regulated professional for defects in or failures of an AI system that are attributable to the developer or deployer of the AI system.     Further, under conditions specified in the act, nothing in the act prohibits a person from developing, testing, or evaluating an AI system solely for research purposes or using an AI system in educational, instructional, or training programs. In addition, it is not an unfair or deceptive trade practice for a person to use a technology that does not diagnose or treat mental health disorders, clearly discloses that the technology is not a substitute for clinical care, and:Provides self-help, therapeutic homework, coaching, patient navigation, guided meditation, journaling, or other tools specified in the act; orIs regulated by the federal food and drug administration.(Note: This summary applies to this bill as enacted.)

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; andProvides 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 act implements the recommendations of the department of regulatory agencies in its 2025 sunset review and report by:Continuing the fire suppression programs of the division of fire prevention and control (division) for 11 years until September 1, 2037, pursuant to the provisions of the sunset law; andModifying certain provisions of the fire suppression programs of the division to replace gender-specific terminology with gender-neutral terminology.(Note: This summary applies to this bill as enacted.)

Senate Bill 25-163, concerning the establishment of battery stewardship programs for the disposal of certain batteries, created the 'Battery Stewardship Act', which requires the establishment of battery stewardship organizations and the submittal of battery stewardship plans to the executive director of the department of public health and environment (executive director) for the collection, transportation, processing, and recycling of certain batteries.     The act expands the scope of the 'Battery Stewardship Act' to cover the end-of-life management of propulsion batteries, which are batteries that are primarily used to supply power to an electric or hybrid vehicle, and establishes requirements concerning propulsion batteries that differ from the requirements for the batteries currently contemplated by the 'Battery Stewardship Act'.     On or before July 1, 2027, a person selling, offering for sale, or distributing propulsion batteries or vehicles containing a propulsion battery in or into the state (propulsion battery provider) is required to register with the department of public health and environment (department).     On or before January 2, 2029, a propulsion battery provider or group of propulsion battery providers must submit to the executive director an education and outreach plan that contains certain information about the management of propulsion batteries. On and after July 1, 2029, the act prohibits a propulsion battery provider from selling, making available for sale, or distributing a propulsion battery in or into the state unless the propulsion battery provider has submitted an education and outreach plan that meets the requirements of the act. The act also requires a propulsion battery provider to develop and maintain at least one website that, among other things, includes the information in the propulsion battery provider's education and outreach plan.     The act requires propulsion battery providers to collect certain unwanted propulsion batteries and ensure the responsible management of the unwanted propulsion batteries collected. In addition, the act requires a propulsion battery provider to, on and after July 1, 2029, label a propulsion battery and specifies the information that must be included on the label. On or before June 1, 2030, and on or before each June 1 thereafter, a propulsion battery provider is directed to submit an annual report to the executive director covering the preceding calendar year of the responsible management of the propulsion batteries collected by the propulsion battery provider.     A propulsion battery provider is required to pay a program initiation fee to the department. The amount of the program initiation fee for each propulsion battery provider is based on each propulsion battery provider's percentage of all propulsion battery vehicles registered in the state. On or before July 1, 2030, and on or before each July 1 thereafter, a propulsion battery provider is also required to pay an annual fee to cover the department's cost of implementing, administering, and enforcing the act. The solid and hazardous waste commission is directed to establish the annual fee amount by rule on or before July 1, 2029.     The act specifies how the department is required to implement, administer, and enforce the act. For example, the department is required to assess annual reports submitted by propulsion battery providers, compile a list of entities registered with the department, provide a digital registration form that an entity can use to register, and conduct an email survey with registered entities to request feedback on the functioning of the propulsion battery management program.     The act also sets forth requirements for persons that remanufacture a propulsion battery; persons that use a propulsion battery for a different use than the use for which the propulsion battery was originally designed; commercial entities that take possession of a propulsion battery for the purpose of selling, dispositioning, repairing, reusing, or recycling the propulsion battery; and entities that conduct propulsion battery recycling.     On and after July 1, 2029, the disposal of propulsion batteries at a solid waste disposal site and facility is prohibited.(Note: This summary applies to this bill as enacted.)

The act creates a statutory cause of action for a person who has their federal constitutional rights violated by another person who, acting under color of law, is participating in civil immigration enforcement. A person who violates the United States constitution while participating in civil immigration enforcement and whose conduct was the proximate cause of violating another person's constitutional rights is liable to the person whose rights are violated for legal or equitable relief or any other appropriate relief. The action must be commenced within 2 years after the cause of action accrues.     The act appropriates $125,604 to the department of law from the legal services cash fund to provide legal services for the department of personnel.(Note: This summary applies to this bill as enacted.)

The act creates the 'Colorado Mandatory Lethality Assessment Act', which requires peace officers to conduct a lethality assessment when responding to a domestic violence incident and include the completed lethality assessment in the incident report. A peace officer is not required to administer a lethality assessment if a victim is unavailable, not at the scene, incapacitated, or if circumstances otherwise make the administration of the lethality assessment impossible or impracticable. If the lethality assessment indicates that an individual is a high-risk victim, or if the lethality assessment does not indicate a victim is high-risk but a peace officer determines an individual is a high-risk victim based on the totality of the circumstances, the peace officer is required to immediately contact a community-based victim's advocate either by phone or in person and provide the high-risk victim the opportunity to speak with the advocate.     The act requires the attorney general's office, in consultation with a Colorado-based coalition that advocates for survivors of domestic violence, to develop a mandatory training for peace officers to learn how to administer the lethality assessment and provide victim referrals. No later than June 1, 2027, the attorney general is required to make the training available and offer assistance to law enforcement agencies in providing the training. Beginning July 1, 2027, the act requires each law enforcement agency to ensure that each peace officer employed by the agency has completed the mandatory training; except that a law enforcement agency that has provided training on the administration of lethality assessments prior to July 1, 2027, is not required to provide additional training.     Beginning January 2028, and each January thereafter, the act requires the attorney general's office to report to the general assembly certain information related to lethality assessments conducted in the previous calendar year. No later than January 31, 2030, the domestic violence fatality review board shall evaluate the effectiveness of mandatory lethality assessments and referrals to resources and submit the evaluation to the general assembly.     The act does not impose criminal, administrative, or civil liability on any person for an act or omission made in good faith related to administering a lethality assessment.(Note: This summary applies to this bill as enacted.)

The act requires a health insurance carrier that provides prescription drug benefits to require that:The utilization review requirements, including prior authorization and step therapy, for a non-opioid drug prescribed and approved by the federal food and drug administration (FDA) for the treatment or management of chronic or acute pain (non-opioid pain management drug) are no more restrictive than the least restrictive utilization review requirements for opioid drugs prescribed for the treatment or management of chronic or acute pain; andThe cost-sharing, copayment, or deductible for a non-opioid pain management drug is not greater than the cost-sharing, copayment, or deductible for an opioid drug prescribed for the treatment or management of chronic or acute pain.     The act requires each individual and small group health benefit plan issued or renewed on or after January 1, 2027, and each large employer health benefit plan issued or renewed on and after January 1, 2028, to ensure there is at least one non-opioid pain management drug available as a clinically appropriate alternative for an opioid pain management drug. If the division of insurance determines that coverage for a non-opioid pain management drug offered by individual and small group health benefit plans requires state defrayal of the cost of coverage, the requirement to make a non-opioid pain management drug available is inoperative.     The state employee health benefit plan is excluded from the requirements of the act.     The act appropriates $15,415 to the department of regulatory agencies for use by the division of insurance to implement the act.(Note: This summary applies to this bill as enacted.)

No later than July 1, 2026, the department of health care policy and financing (HCPF) shall convene a steering committee (steering committee) to support the transition of services provided in qualified residential treatment programs (QRTP) and psychiatric residential treatment facilities (PRTF) to the managed care system for members in the care and custody of a county department of human or social services (county department).     No later than April 1, 2027, HCPF, in collaboration with the steering committee, shall develop policies and recommendations to support the transition of QRTP and PRTF to the managed care system for members in the care and custody of a county department.     No later than July 1, 2027, HCPF shall implement or initiate the transition of services provided in QRTP and PRTF to the managed care system for members in the care and custody of a county department according to the policies and recommendations developed by HCPF in collaboration with the steering committee.     HCPF shall submit quarterly reports to the joint budget committee with information about the steering committee's monthly meetings.(Note: This summary applies to this bill as enacted.)