The act requires the state auditor to conduct or cause to be conducted performance audits (audits) of the air pollution control division in the department of public health and environment and the division of unemployment insurance in the department of labor and employment (divisions). The audits will determine whether each of the divisions effectively and efficiently performs and fulfills its statutory obligations. In addition, as part of the audits, the state auditor is required to: Determine whether a division complies with statute and its statutory purpose; Assess the impact of a division's processes on providing access to program benefits and, for the labor and employment division audit only, identify any division processes that may be unnecessary, unreasonable, or cause delays; Determine whether a division's staffing and funding levels are sufficient for it to efficiently and effectively perform its statutory duties and responsibilities, which, in for the air pollution control division audit only, must include assessment of how funding or staffing changes made at the state level might impact local governments; and Determine whether a division requested and was appropriated additional resources and whether the approval or denial of such a request impacted program implementation and timing of implementation. The initial audit of the air pollution control division must begin and be completed in calendar year 2026, with an additional audit occurring in calendar year 2031. The initial audit of the division of unemployment insurance must begin and be completed in calendar year 2027, with an additional audit occurring in calendar year 2032. Upon completion of an audit, the state auditor is required to submit a written audit report to the legislative audit committee. (Note: This summary applies to this bill as enacted.)
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The department of public health and environment (department) is required to conduct a study of capital needs for rural and frontier hospitals throughout the state (study). The rural and frontier hospital capital needs study task force (task force) is created and is required to oversee the study. The study must measure the number of studied facilities that are not compliant with current and relevant design and building code standards for health-care facilities, identify the age of core facilities and any additions to those facilities, and estimate the costs for renovating or replacing facilities identified as having capital needs. No later than 18 months after the first meeting of the task force, the department is required to complete the study and compile the results of the study into a report. The department is required to present the report to the respective health and human services committees of the senate and house of representatives. The task force is made up of the following 7 members who must be appointed no later than 2 months after sufficient funding has been secured for the implementation of the act: 3 members who work in rural or frontier hospitals; One member who is an architect professional; One member who is a construction contractor professional; One member who represents hospitals; and One member of the general public who lives in a rural area or frontier area. In addition to overseeing the study, the task force is responsible for developing and approving the parameters of the study and overseeing the department's report. The task force may also facilitate contracting with a private sector consulting company to assist with data compilation, research, and outreach to rural and frontier hospitals. The task force is required to hold its first meeting within 2 months of all appointments being made to the task force and meet at least quarterly after the first meeting until the study and the report are complete. The requirements imposed on the department, the task force, and any third party in connection with the study are contingent upon money being available through gifts, grants, or donations for the purpose of conducting the study. (Note: This summary applies to this bill as enacted.)
The act extends the Emily Keyes - John W. Buckner organ and tissue donation awareness fund indefinitely. (Note: This summary applies to this bill as enacted.)
Section 1 of the act requires, in addition to othr existing uses, that interest and income earned on the investment of the money in the public school fund to be used to pay for the costs of administering a newly created shared equity down payment assistance program. Section 2 requires at least one member of the public school fund investment board (board) to have expertise in community investments, requires the board to direct the state treasurer to securely invest money deposited in the public school fund in a manner that prioritizes specified new investment objectives, and authorizes the board to enter into contracts with investment advisors or other investment professionals to provide advice on community investments. Section 3 extends the time frame under which the state treasurer may make up a loss of principal to the public school fund by taking actions which lead to gains in the fund from 18 to 24 months. Section 4 creates a new community investment portfolio (portfolio) within the public school fund, and requires the state treasurer to invest at least 20% of the public school fund's value into the community investment portfolio by July 1, 2032. Money in the portfolio must be invested in community investments, and allowable community investments include: Bonds issued by Colorado school districts and charter schools; Certificates of participation issued by Colorado school districts and charter schools; Mortgage pass-through securities and collateralized mortgage obligations secured by residential real estate, the majority of which is owned by public school employees; Loans to the Colorado middle income housing authority for a revolving loan fund that funds rental housing developments that include preferences for public school employees; Bonds issued by the middle income housing authority that fund rental housing developments which include preferences for public school employees; Bonds or mortgage-backed securities issued by the Colorado housing and finance authority that fund rental housing developments that include preferences for public school employees or mortgages secured by residential real estate, the majority of which is owned by public school employees; Mortgage revenue bonds that support public school employee mortgages with interest rates of 3% or less; Loans to community development financial institutions or nonprofits with a history of providing affordable home ownership financing that fund: Housing that includes preferences for public school employees; or Low-interest mortgages secured by residential real estate that is owned by public school employees; Down payment shared appreciation products secured by residential real estate that is owned by public school employees; and Other investments that support public purpose of the portfolio. The educator first home ownership program (program) is created within the portfolio. Subject to a specified limitation, the treasurer shall invest the following amounts in the program by the following dates: By July 1, 2028, the greater of 6% of the fund's value or $100 million; and By July 1, 2030, the greater of 12% of the fund's value or $200 million. The treasurer shall aim to invest a target of 75% of the money in the program into the shared equity down payment assistance program for public school employees. The shared equity down payment assistance program must be established by July 1, 2026. Once the shared equity down payment assistance program is established: The public school fund investment board shall purchase from the program manager the mortgage products created through the shared equity down payment assistance program; and The public school investment board may provide notice of any discontinuation of future investments that the program manager has not already committed to the shared equity down payment assistance program, which notice must be provided at least 6 months prior to discontinuation. The treasurer shall aim to invest a target of 25% of the money in the program into allowable community investments. The program manager shall establish underwriting criteria and other guidelines for the shared equity down payment assistance program so that the shared equity down payment assistance program: Prioritizes first-time home buyers that use the home as a primary residence; Provides shared equity down payment assistance to public school employees and aims to help as many public school employees as possible achieve affordable home ownership; and Allows appreciation-sharing between the shared equity down payment assistance program and the borrower. Unless investments in the shared equity down payment assistance program have been discontinued and there is no fund money invested in the shared equity down payment assistance program, the program administrator shall present an annual report to the board on program outcomes. For the 2025-26 state fiscal year, section 5 appropriates $375,900 from interest or income earned on the investment of the money in the public school fund to the department of the treasury. (Note: This summary applies to this bill as enacted.)
Current law requires the division of administration (division) within the department of public health and environment to report annually to the water quality control commission (commission) and to include in the report any regulatory or legislative recommendations the division may have. The act requires the report to also include: Information on the division's timing in considering and issuing water quality permits (permits); and For the report submitted in 2026, a detailed discussion of how the division has prioritized reducing the permit backlog, implemented recommendations from water quality permittees (permittees) for permitting efficiency, and increased safe drinking water program inspections. The act requires the division, upon receipt of an application to modify a permit, to limit its review and its approval or denial of the application to the scope of the specific requests contained in the application. The act requires the commission to adopt rules on or before December 31, 2026, that establish procedures whereby the division, prior to giving public notice of a complete permit application for an individual permit and the division's preliminary analysis of the application, may provide a period of public notice and review of a preliminary draft prepared by the division. If a period of public notice and review is required by rules of the commission, the period of public notice and review may not exceed 14 days, and the purpose of the review is limited to identifying errors in the division's preliminary draft. On or before December 31, 2027, the division must propose rules to the commission that establish a time frame during which the division will either grant or deny applications for each type of permitting action. On or before June 30, 2028, the commission shall adopt rules based on the division's proposal. The rules must establish the time frames for permitting actions. The act requires the division to consider current debt service on existing local government water infrastructure when developing schedules of compliance for new effluent limits in local government permits. Any schedule of compliance for new effluent limits in local government permits must, consistent with state and federal law, consider the local government's financial capability to repay existing debt on water infrastructure or to fund water infrastructure upgrades before requiring new water infrastructure upgrades. To the extent allowable under federal law, the division may issue compliance schedules in a local government permit for a new effluent limit in excess of 20 years. The act states that, on and after May 1, 2026, after an application for permit modification or permit renewal has been pending before the division for 60 days, or for any application for permit modification or permit renewal that is pending before the division as of May 1, 2026, or if the division informs an applicant that the division will not process an application for preliminary effluent limitations, the applicant and the division may mutually agree to use a qualified and independent nongovernmental contractor (contractor) under the direction of the division to provide the division with technical assistance in completing the permit action. An applicant shall bear the contractor's costs for any technical assistance provided by the contractor and shall pay the contractor for such costs. The division may charge an applicant an additional fee in an amount not exceeding 10% of the contract amount for contract administration, technical review, and additional permit processing, which fee is credited to the clean water cash fund. The act requires the division, upon a permittee's request, to make available to the permittee all documents, data, and information the division relied upon in developing the permittee's permit modification or permit renewal, except to the extent that such materials are protected by an applicable privilege or exception. The act makes the following transfers of money: On July 1, 2025, $111,000 from the water quality improvement fund to the drinking water cash fund; On July 1, 2025, $3,518,564 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund; On July 1, 2026, $3,002,435 from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the clean water cash fund; and On July 1, 2026, $516,129 dollars from the perfluoroalkyl and polyfluoroalkyl substances cash fund to the drinking water cash fund. For the 2025-26 state fiscal year, the act appropriates $2,904,599 to the department of public health and environment. This appropriation consists of $446,315 from the drinking water cash fund and $2,458,284 from the clean water cash fund. For the 2025-26 state fiscal year, the act appropriates $160,611 to the department of law. This appropriation is from reappropriated funds received from the department of public health and environment. The act also makes and reduces certain appropriations as adjustments to the 2025 general appropriations act. (Note: This summary applies to this bill as enacted.)
Colorado law allows a local government to establish local minimum wages in excess of the statewide minimum wage established in the state constitution. A local government that enacts a minimum wage must provide a tip offset for tipped employees in an amount equal to the tip offset amount described in the state constitution, which is $3.02. The act states that on and after January 1, 2026, a local government that has enacted a code or an ordinance imposing a minimum wage that exceeds the state minimum wage may increase the amount of the tip offset associated with the local minimum wage; except that a local government shall not impose a tip offset in an amount that allows a tipped employee to earn less than the state minimum wage minus $3.02. (Note: This summary applies to this bill as enacted.)
The act requires a metropolitan district that is a party to a lease or rental agreement that was effective as of January 1, 2025, or later and was filed with the county assessor's office in support of a claim for a property tax exemption based on the use of the property for purposes of the metropolitan district to file with the county assessor's office a statement (statement) describing: The metropolitan district's use of the leased property; The metropolitan district's authority to use the leased property for the metropolitan district's purposes; Any use of the leased property by a private person for private purposes; and Any disclosure filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest. If the statement includes a disclosure that relates to the leased property and is filed by a member of the board of directors of the metropolitan district in accordance with certain laws that govern disclosures of conflicts of interest, the county assessor shall, within 14 days of receipt of the statement, submit the statement to the metropolitan district's governing body. Within 63 days of receipt of the statement, the governing body shall issue a written decision including findings of fact and a conclusion as to whether the leased property is used for a public purpose. If the governing body concludes that the leased property is not used for a public purpose, the leased property is not exempt from taxation, and the county assessor shall implement the governing body's decision. The decision of the governing body is not subject to appeal and does not give rise to any private right of action. The act clarifies that a leasehold interest in real or personal property that is owned by a private person and that has been leased to the state or a political subdivision of the state, the use and possession of which has been leased back to a private person for private purposes, is taxable to the owner. (Note: This summary applies to this bill as enacted.)
The act authorizes the owner of a trailer to register the trailer for as long as the owner owns the trailer. The trailer must be class B or class D personal property. To register the trailer, the owner must pay: 2 years of annual specific ownership tax; and $55.82 to cover fees. Upon the transfer of ownership of the trailer, the owner is required to notify the department of revenue of the transfer. (Note: This summary applies to this bill as enacted.)
The act requires the executive director of the department of revenue to allow a sales and use tax license and a sales and use tax exemption certificate to be searchable by the name and identification number of the sales and use tax licensee or the sales and use tax exemption certificate holder. (Note: This summary applies to this bill as enacted.)
The act adjusts several tax expenditures and adds purpose statements to other tax expenditures as follows: Section 1 of the act disallows the income tax credit for unsalable alcohol after December 31, 2025, and repeals the credit on December 31, 2030; Section 2 extends the 10% of purchase price income tax credit for income tax years commencing before January 1, 2025, for a purchaser who installs an energy storage system in a residential dwelling to include subsequent income tax years commencing before January 1, 2027, and extends the repeal of the credit from January 1, 2028, to January 1, 2030. By amending a definition of "agricultural compounds" that is incorporated into the definition of "wholesale sale" used for purposes of the sales and use tax statutes, section 3 exempts from sales and use tax soil conditioners, plant amendments, plant growth regulators, mulches, compost, soil used for aboveground production of agricultural commodities, manure, fish for non-stocking purposes, fish embryos, and fish eggs beginning January 1, 2026; Section 4 states that the purpose of the insolvency assessments paid insurance premium tax credit is to offset the cost for an insurer paying required assessments into the life and health insurance protection association and that the credit's effectiveness is measured by how many eligible insurers claim the credit and the amount claimed relative to payments into the life and health insurance protection association; Sections 5 and 6 state that the purpose of the state refund income tax subtraction is to avoid re-taxing a taxpayer's state income tax refund when a state refund is required to be included as income on the taxpayer's federal return pursuant to the internal revenue code and that the effectiveness of the deduction is measured by the number of taxpayers claiming the deduction and the total amount of state refunds claimed as subtractions from Colorado taxable income; Section 7 states that the purpose of the dyed special fuels and off-road fuel tax excise tax exemption is to entirely exclude dyed diesel or kerosene from the special fuels excise tax where the dyed fuel is used for specified off-road purposes or by governmental entities and that the effectiveness of the exemption is measured by the number of taxpayers claiming the exemption and the amount of tax that would have been paid without the exemption; Section 8 states that the purpose of the off-road fuel use refund is to compensate taxpayers who buy and pay the tax on otherwise taxable fuels for the purpose of using the fuels for specified non-taxable purposes under federal law and that the effectiveness of the refund is measured by the number of taxpayers claiming a refund and the amount of tax that was already collected and is refunded; Section 9 states that the purpose of the wholesale sale exemption from sales tax is to ensure that sales tax is levied and collected only on a final end sale to a retail consumer and not on wholesale sales and that the effectiveness of the wholesale exemption from sales tax is measured by the number of taxpayers claiming the wholesale exemption from tax and the amount of tax liability not paid; Section 10 extends the availability of the biotechnology sales and use tax refund by 1 year to include calendar years beginning before January 1, 2027; and Section 11 clarifies that the temporary property tax valuation for assessment reduction for qualified-senior primary residence real property is available whether or not the state has sufficient excess revenues to pay for it. For the 2025-26 state fiscal year, $13,137 is appropriated from the general fund to the department of revenue for implementation of the act. (Note: This summary applies to this bill as enacted.)