Rep. Mike Lynch

The act modernizes and simplifies the terminology used in creating and transferring state government entities among principal departments under the "Administrative Organization Act of 1968" (AOA) and throughout the Colorado Revised Statutes while preserving the status and the powers assigned in current law to entities in the AOA. The act defines " type 1 entity" and " type 2 entity" and states that when a new entity is created as a type 1 entity or a type 2 entity and allocated to a principal department under the AOA, or when an existing entity is transferred from one principal department to another, the entity has all of the powers, duties, and functions of a type 1 or type 2 entity, as applicable. The act eliminates language regarding type 1 and type 2 transfers and specifies that when an existing entity is transferred from one principal department to another, the transferred entity exercises its powers and performs its duties and functions in the principal department to which it was transferred as a type 1 or type 2 entity, as specified in law. The act amends organic statutes for the principal departments to specify the type 1 or type 2 status of the entities within those principal departments where the type 1 or type 2 status is not stated. The act also amends the AOA to specify the type 1 or type 2 status of the entities where the type 1 or type 2 status is found in the organic statute but is missing in the AOA. The act eliminates references to type 3 transfers, which were previously used when an original entity and its powers, duties, and functions were transferred to another principal department and the original entity was abolished. For entities that are being abolished, the act specifies that the powers, duties, and functions of the abolished entity are included in powers, duties, and functions of the entity to which it was transferred. The act also corrects errors in the names of entities to make references consistent throughout the statutes. (Note: This summary applies to this bill as enacted.)

The act specifies that if property encumbered by a conservation easement in gross is condemned through an eminent domain proceeding, and, as a result of the condemnation, the condemning authority is acquiring such property free and clear of the conservation easement interest or subordinating the deed of conservation easement to such acquired property interest, just compensation must be determined based on the value of the property as if unencumbered by the conservation easement in gross. The compensation must be allocated between the fee owner and the holder of the conservation easement based upon the value of their respective interests in the property. (Note: This summary applies to this bill as enacted.)

The act establishes the wildfire mitigation resources and best practices grant program (grant program) within the Colorado state forest service (forest service). To be eligible to receive a grant, a recipient must be an agency of local government, a county, a municipality, a special district, a tribal agency or program, or a nonprofit organization. The forest service is tasked with reviewing grant applications. Grants must be awarded only to applicants proposing to conduct outreach among landowners in high wildfire hazard areas, and the forest service must consider the potential impact of an applicant's proposed outreach when awarding grants. The forest service must report to the wildfire matters review committee on the grant program. Commencing no later than the 2023-24 state fiscal year, the act requires the general assembly to annually appropriate money from the general fund to the healthy forests and vibrant communities fund to implement the grant program. The act extends the existing income tax deduction created to offset the landowner's costs incurred in performing wildfire mitigation measures, currently set to expire with the 2024 income tax year, through the 2025 income tax year. The act also creates a state income tax credit to reimburse a landowner for the costs incurred in performing wildfire mitigation measures on the landowner's property. Specifically, a landowner with a federal taxable income at or below $120,000, annually adjusted for inflation and rounded to the nearest hundred dollars, for any income tax year commencing on or after January 1, 2023, but prior to January 1, 2026, is allowed a state income tax credit in an amount equal to 25% of up to $2,500 in costs for wildfire mitigation measures. (Note: This summary applies to this bill as enacted.)

The act extends the advanced industry investment tax credit (credit) for an additional 4 years, increases the aggregate annual maximum amount of credits that may be allowed from $750,000 to $4 million, increases the credit from 30% to 35% of the amount of a qualified investment in rural or economically distressed areas, and increases the total amount of the credit for each qualified investment from $50,000 to $100,000. Current law requires that individuals who are co-owners of a business claim only their pro rata share of the credit. The act allows the credit to be allocated among partners, shareholders, members, or other constituent qualified investors in any manner agreed to by such partners, shareholders, members, or other constituent qualified investors. The act appropriates $90,000 to the office of the governor for use by economic development programs for advanced industries. (Note: This summary applies to this bill as enacted.)

Subject to federal authorization and federal financial participation, on or after July 1, 2024, medicaid reimbursement is available for therapy using equine movement when provided by a physical therapist, an occupational therapist, or a speech-language pathologist. (Note: This summary applies to this bill as enacted.)

The act provides a list of allowable restitution expenses if proximately caused by a crime for which restitution must be paid, which list includes travel expenses to certain court proceedings. The court is required to review the travel expenses to ensure the travel expenses are reasonable. If the court finds the travel expenses are unreasonable, the court may reduce the amount of recoverable travel expenses to a reasonable amount. The act requires the department of corrections to intercept government windfall payments (payments) before the payments are deposited in an inmate's bank account and send funds to the judicial department (department) in an amount equal to any amount owed by the inmate. The department is required to disburse funds pursuant to the order of crediting payments in criminal proceedings. The department of corrections is required to disperse any remaining funds in accordance with restitution for inmates sentenced to the department of corrections. If any funds remain after the inmate's outstanding obligations are fulfilled, the excess funds must be placed in the inmate's bank account. The act establishes the office of restitution services (office) in the department. The purpose of the office is to assist victims who are owed court-ordered restitution. The office is required to receive requests from victims requesting semiannual statements detailing restitution payments the defendant has made to the victim and the disbursements the court has made to the victim. The statement must include the outstanding amount of court-ordered restitution owed to the victim. The office is also required to assist with training related to the administration of the restitution system, enhance communications for postsentence restitution, and collaborate with victim advocacy programs. The act appropriates $129,359 from the judicial collection enhancement fund to the department to establish the office. (Note: This summary applies to this bill as enacted.)

Under existing law, a pawnbroker is a person who regularly engages in the business of making contracts for purchase or purchase transactions in the course of his or her business. The act amends the definition of pawnbroker so that a person who is regularly engaged in the business of making purchase transactions is a pawnbroker only if the person also engages in the business of making contracts for purchase. (Note: This summary applies to this bill as enacted.)

The act creates the innovative housing incentive program (program) within the office of economic development (office). A business located in Colorado that has 500 or fewer employees and that manufactures certain types of housing may apply for funding through the program. Funding may be awarded through grants for operating expenses and for incentives for units manufactured based on criteria established by the office such as affordability, location where the unit is installed in the state, or meeting energy efficiency standards. Funding may also be awarded through loans that fund a new housing manufacturing factory or the expansion of an existing housing manufacturing factory. The act creates the innovative housing incentive program fund, requires a $40 million transfer to the fund of money from the affordable housing and home ownership cash fund that originates from the general fund, and continuously appropriates all money in the fund to the office to fund the program. The office must annually report to the general assembly regarding the expenditure of money from the innovative housing incentive program fund. (Note: This summary applies to this bill as enacted.)

Sections 1, 2, 3, and 4 of the act correct incorrect cross references to sales tax filing and remittance requirements for direct pay permit holders in local sales tax statutes. Section 5 corrects an incorrect cross reference in the definition of "auction sale", which is defined to include only the sale of tangible personal property, by replacing a cross reference to a supplemental definition of sale that includes "the transaction of furnishing rooms or accommodations" with a cross reference to the more general definition of "sale". (Note: This summary applies to this bill as enacted.)