Sen. Katie Wallace

Section 20 of article X of the state constitution (TABOR) imposes a limitation on the amount of state fiscal year spending. If state fiscal year spending exceeds that limitation, the state is required to refund the amount of state fiscal year spending in excess of that limitation (TABOR refund). Under current law, if the state issues a TABOR refund for a state fiscal year, and the amount of that TABOR refund is greater than the amount of state fiscal year spending in excess of the limitation of state fiscal year spending for the state fiscal year (over-refund), the state reduces the amount of the next available TABOR refund by the amount of the over-refund.     Changes in federal tax policy in 2025 reduced the amount of state tax revenue for the 2025 tax year. Due to when this change in federal tax policy was signed into law, it was not reflected in the amount of state fiscal year 2024-25 spending, even though the change impacted the 2025 tax year. Accordingly, if the state controller certifies in September 2026 that state revenues for state fiscal year 2025-26 did not exceed the limitation on the amount of state fiscal year spending for that state fiscal year, the act directs the office of the state controller, in consultation with the office of state planning and budgeting and the department of revenue, to determine the amount of the over-refund for state fiscal year 2024-25, taking into account the impact on state revenues from the federal tax policy change. No more than one-half of this over-refund can offset future TABOR refunds for any single state fiscal year beginning with the 2026-27 state fiscal year.     $18,021 is appropriated from the general fund to the legislative department for use by the office of the state auditor to implement the 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 'Barber and Cosmetologist Act' for 7 years until 2033;Repealing the advisory committee;Updating definitions and terminology within the 'Barber and Cosmetologist Act';Specifying certain services and providers that are exempt from the 'Barber and Cosmetologist Act'; andReplacing gendered language with gender-neutral language.(Note: This summary applies to this bill as enacted.)

The act implements the recommendation of the department of regulatory agencies' 2025 sunset review and report on the biomass utilization grant program by repealing the biomass utilization grant program.(Note: This summary applies to this bill as enacted.)

The act creates the retail theft prevention advisory board (advisory board) in the division of criminal justice in the department of public safety (division). The advisory board shall develop procedures related to applying for a grant for the retail theft prevention grant program created in the act; review grant applications and award grants; collect and analyze data related to organized felony-level retail theft and gift card fraud trends, losses, prosecutions, and outcomes in Colorado; and develop policy recommendations in coordination with state and federal partners on how to combat felony-level retail theft and gift card fraud.     The act creates the retail theft prevention grant program in the division. A state or local law enforcement agency, district attorney's office, multijurisdictional or regional task force, or tribal law enforcement agency may apply for a grant, which may be used to investigate and prosecute organized felony-level retail theft or gift card fraud; develop or invest in technology, data-sharing systems, and analytics tools to analyze felony-level retail theft and gift card fraud metrics; provide training and technical assistance to retailers or law enforcement agencies; and develop prevention and deterrence initiatives specific to felony-level retail theft and gift card fraud.     Beginning January 2028, the act requires the division to annually report during its 'SMART Act' hearing certain information about the retail theft prevention grant program and felony-level retail theft in Colorado.     The act extends the crime prevention through safer streets grant program (safer streets grant program) to November 1, 2029, and makes the retail theft prevention grant program an allowable use of the money appropriated for the safer streets grant program. On July 1, 2027, $200,000 of the unexpended and unencumbered money remaining at the end of the 2026-27 state fiscal year from the money appropriated for the safer streets grant program reverts to the general fund.(Note: This summary applies to this bill as enacted.)

The act requires the department of corrections (department) to furnish an individual being discharged from the department's custody a release allowance of at least $100, free of any deductions. Beginning by September 15, 2027, and annually thereafter, the department is required to collect and report discharge data, including the number of individuals released from department correctional facilities, the number and percentage of released individuals who received the release allowance, and the total amount of money spent on release allowances. The department must issue a report to the general assembly annually. The act repeals provisions requiring the department to give an individual a ticket to leave prior to discharging the individual from a correctional facility.     The act requires eligible offenders to participate in the department's existing program to procure state-issued identification cards for offenders (program), unless the offender affirmatively opts-out of the program. Beginning by September 15, 2027, and annually thereafter, the department is required to collect data on the process of securing necessary identification documents to issue state identification cards and issue a report to the general assembly. The report must include the number and percentage of offenders released with an identification card, birth certificate, and social security number and the number and percentage of offenders who were ineligible to participate in the program and the reason for ineligibility.     The department is prohibited from charging an offender a fee to obtain a state identification card, and any fee incurred in the process of securing an offender's identification documents to create the state identification card must be assessed after the offender has been released and may be consolidated with existing restitution, fees, or other legal financial obligations owed by the offender.     The department of public health and environment shall assist the department in securing necessary identification documents.(Note: This summary applies to this bill as enacted.)

For property tax years commencing on or after January 1, 2027, the act makes it a petty offense for a person, in connection with nonresidential property, to certify the truth and accuracy of information provided to the assessor in connection with property valuation when the information is not true and accurate as to every material matter. The act also makes it a petty offense for a person, in connection with nonresidential property, to willfully aid or assist in filing information that is fraudulent or false in connection with property valuation. The act specifies the sentencing requirements for a person convicted of a petty offense pursuant to the act and authorizes the county attorney to file and prosecute any action arising under the act in the county court of the county in which the property is located. If a court of competent jurisdiction finds that a taxpayer committed a petty offense pursuant to the act, the property owner is not entitled to penalty interest earned on any tax refund; the board of assessment appeals does not have the authority to determine whether a taxpayer has forfeited this right.     Existing law requires a petitioner appealing either a valuation of rent-producing commercial real property to the board of assessment appeals or a denial of an abatement of taxes to the board of county commissioners to provide certain information to the board of equalization or to the board of county commissioners. The act requires the petitioner to provide information that is specific to the property at issue.      For property tax years commencing on or after January 1, 2027, the act allows a county to file a motion with the board of assessment appeals noting the county's preference that a case appealing a decision of the board of assessment appeals be heard in district court. The act allows the petitioner to elect whether the case will be heard by the board of assessment appeals or the district court.(Note: This summary applies to this bill as enacted.)

With certain exceptions, the act prohibits an employer or an employer's agent from demanding, confiscating, retaining, or otherwise requiring an individual who is an employee or an applicant for employment or who is performing work or seeking to perform work for the employer in any capacity, including a migrant worker or seasonal employee, to surrender the individual's government-issued identification card.     A person that knowingly violates the act's prohibition commits criminal possession of an identification document, which is a class 2 misdemeanor.     A person commits a bias-motivated crime if, with the intent to intimidate or harass another individual, in whole or in part, because of that individual's actual or perceived race, color, religion, ancestry, national origin, physical or mental disability, sexual orientation, or transgender identity, the person:Violates the act's prohibitions; orProvides, or threatens to provide, an individual's government-issued identification document to federal immigration authorities, except where required or permitted by state or federal law.     Such a bias-motivated crime is a class 1 misdemeanor, and a victim may seek additional remedies available under law.(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 sets forth a process for a person in prison to petition within the next 3 years for resentencing and for a court to impose a new sentence if the petitioner is 60 years old or older at the time of filing the petition and has served at least 20 calendar years incarcerated for the offense. A person is not eligible to petition if the person is incarcerated as a result of conviction for a sex offense, human trafficking, an offense that resulted in a sentence to life imprisonment without the possibility of parole, an offense for which the victim was a child younger than 12 years old, or an offense against a first responder engaged in the performance of their duties.     At the hearing on the petition, the petitioner has the burden to show by a preponderance of the evidence that the petitioner no longer presents an identifiable danger to the safety of any person or the community and that there is good cause for the court to modify the sentence. Upon the court finding that the petitioner has met their burden, the petitioner is permitted to file a motion for reconsideration and reduction of the initial sentence pursuant to the Colorado rules of criminal procedure. At the hearing on the motion, the court shall determine and impose the appropriate sentence.     If a person in prison is not eligible for resentencing pursuant to the act, the district attorney's office that prosecuted the offense resulting in the conviction may petition the court requesting that the court grant post-conviction relief. If the district attorney's office petitions the court, the same procedures apply as if an eligible person petitioned.     The act appropriates $50,840 to the judicial department for use by the public defender and $50,326 to the department of corrections for use by community services, and reduces the appropriation in the annual general appropriation act for the 2026-27 state fiscal year to the department of corrections for payments to local jails by $168,980.(Note: This summary applies to this bill as enacted.)