Rep. Ryan Gonzalez

The state contracts to conduct emissions testing. The act repeals the limits on how long the contracts may run and authorizes the division of administration in the department of public health and environment (division) to determine the length of each contract. Colorado law also authorizes a vehicle emissions inspection facility to charge a fee that is set by the air quality control commission (commission). The act authorizes the commission to adopt rules adjusting the fees, but the commission is limited to adjusting: The $15 maximum fee to $30 when a licensed inspection and readjustment station inspects vehicles model year 1981 and older; and The $25 maximum fee to $50 for a clean screen inspection performed on vehicles registered in the basic emissions program. The commission may adopt rules requiring the emissions compliance of vehicles that have failed an emissions test and that are registered outside of the enhanced emissions program area but that operate within the program area. The act requires the commission to adopt rules requiring inspections of motor vehicles that are registered in the nonattainment area and identified as having excess emissions under the clean screen program and are either within the 2-year vehicle inspection cycle or exempt from periodic inspection. If a motor vehicle's emissions control system has been disconnected, deactivated, or rendered inoperable, the division may notify the executive director of the department of revenue. Under Colorado law, fines and penalties assessed for violations of air quality laws are deposited in the community impact cash fund. The act creates a motor vehicle emissions assistance fund (fund) and diverts the first $1 million from the community impact cash fund to the new fund, but at the end of each state fiscal year, any unspent money in the fund exceeding $250,000 is returned to the community impact cash fund. The division may expend money from the fund to provide grants for: Paying emissions inspection fees for motor vehicles registered to individuals participating in an established and recognized public assistance program; or Adjustments or emissions-related repairs that are necessary and sufficient to receive a certification of emissions compliance. Qualification standards are set for the grants. The division may accept and expend gifts, grants, and donations. The money in the fund is continuously appropriated. To implement the act, $5,674 is transferred from the AIR account of the highway users tax fund to the Colorado DRIVES vehicle services account of the highway users tax fund. The fine money is declared to be damages and exempt from the expenditure caps of the Taxpayer's Bill of Rights. (Note: This summary applies to this bill as enacted.)

For vinous liquor alcohol shipper licenses, once those licenses are issued by the state, the act removes the requirement that a driver delivering vinous liquors on behalf of an alcohol beverage shipper licensee ensure that the individual accepting delivery is the individual intended to receive the product and instead requires only that the driver delivering the vinous liquor ensure that the individual accepting delivery is not under twenty-one years of age or visibly intoxicated. (Note: This summary applies to this bill as enacted.)

In current law, the sentencing structure for theft, except for auto theft, is based on the value of the item stolen. The act exempts theft of firearms from that sentencing structure and makes theft of a firearm a class 6 felony, regardless of the firearm's value. The act appropriates $324,225 from the general fund to the judicial department to implement the act. (Note: This summary applies to this bill as enacted.)

The act prohibits a peer support team member from disclosing, without the consent of the recipient of peer support (recipient), the confidential communications made by the recipient during a peer support interaction, with specified exceptions. With respect to an exception for which disclosure is permissible, a peer support team member who discloses or does not disclose a communication with a recipient is not liable for damages in a civil action for disclosing or not disclosing the communication. The act expands an exception allowing specified mental health professionals to disclose confidential information when a recipient makes a threat against an individual or themself or makes a threat that, if carried out, would result in harm to an individual or themself. In addition, a peer support team member is exempted from the prohibition on disclosure established by the act if: The peer support team member was a witness or a party to the incident that prompted the delivery of peer support services; A recipient admits to committing a crime or provides information pertaining to the recipient or another individual that is indicative of criminal conduct; Criteria related to an individual's participation as a witness in a court proceeding are met; or A recipient makes a threat involving damage or destruction of private or public property.(Note: This summary applies to this bill as enacted.)

Under current law, the statute of limitations to bring certain claims against a real estate appraiser does not start until the party filing the claim has discovered, or should have discovered, an alleged defect in the appraisal. The act requires a claimant to bring an action against a real estate appraiser (appraiser) within 5 years after the date the appraisal report is completed and transmitted to a client. The 5-year limitation does not apply to an action against an appraiser for a defective appraisal report or service if the action is brought by: A consumer who is an original party to a residential mortgage loan or residential real estate transaction; or A mortgage originator who must repurchase a loan. The 5-year limitation also does not apply to an action for fraud, for misrepresentation, or for a discriminatory housing practice brought against an appraiser. (Note: This summary applies to this bill as enacted.)

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 excludes from the statewide managed care program (program) services for medicaid members in a qualified residential treatment program or a psychiatric residential treatment facility and in the care and custody of a county department of human or social services until July 1, 2026. The act excludes from the program residential child health-care program services in counties that have a written agreement regarding services. No later than December 1, 2025, the act requires the department of health care policy and financing (HCPF), in collaboration with the department of human services, the behavioral health administration, and relevant stakeholders, to develop policies to transition qualified residential treatment programs and psychiatric residential treatment facilities to the statewide managed care system for medicaid members who are in the care and custody of a county department of human or social services (policies). The act requires HCPF to implement the policies no later than July 1, 2026. (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.)

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.)