The act continues the just transition advisory committee (advisory committee) until September 1, 2030. Prior to its repeal, the department of regulatory agencies will conduct a sunset review of the advisory committee. The act requires the just transition office in the department of labor and employment (office) to consult with the advisory committee on issues related to the impact of facility closures and job layoffs in coal-related industries in a manner that best ensures continued economic stability and prosperity for impacted workers and communities during and after the transition away from coal as an economic driver. The office is also directed to develop and implement plans to maximize the economic stability and prosperity of coal workers and communities. When the general assembly created the advisory committee in 2019, the advisory committee was required to develop a draft just transition plan (plan) before July 1, 2020. The act repeals obsolete references to the development of the plan and requires the director of the office to update the plan as needed. The act increases the number of coal transition workers appointed to the advisory committee from 3 to 5 and requires that at least one advisory committee member works at a coal mine and at least one member works at an electric utility. (Note: This summary applies to this bill as enacted.)
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The act creates the behavioral and mental health excise tax cash fund that is designated to hold money received from the firearm and ammunition excise tax (Proposition KK) for certain behavioral health-related purposes. Current law requires $8 million that is received from Proposition KK to be transferred to the behavioral and mental health cash fund. The act requires this money to instead be transferred to the behavioral and mental health excise tax cash fund. The act requires the state treasurer to transfer the Proposition KK money in the behavioral and mental health cash fund to the behavioral and mental health excise tax cash fund. Current law repeals the behavioral and mental health cash fund on July 1, 2032. The act changes the repeal date to July 1, 2027. (Note: This summary applies to this bill as enacted.)
The act allows the Centennial correctional facility-south c-tower to be used to temporarily house protective-, close-, and medium-custody inmates for the duration of the Sterling correctional facility access controls project (project). The use of the Centennial correctional facility-south c-tower is permitted only after the department of corrections (department) determines that there are no suitable beds available to house an inmate in another department facility. The act requires the department to, at least 30 days prior to relocating any inmates, provide a structured relocation plan to the joint budget committee and the house of representatives judiciary committee and the senate judiciary committee, or their successor committees, and to update those committees during the project. The plan must include, but is not limited to: What programs or classes will be available to the inmates; What behavioral health and medical care will be available; What employment opportunities will be available and the rate of pay for each employment opportunity; What recreational opportunities will be available; What visitation opportunities will be available; How many hours a day an inmate will be allowed out of their cell based on their medium- or close-custody level or protective custody status; Whether, prior to transfer, the department plans to conduct a reclassification or other custody review on any medium-security inmate to determine whether the inmate is appropriate to progress or have an override to minimum-restrictive custody; and An estimate of how long inmates will be temporarily held at Centennial correctional facility-south c-tower and if the relocations will be based on the duration of the project at the Sterling correctional facility. The act also requires the department to provide updates on the status of the access controls project at its "SMART Act" hearing required by section 2-7-203. The act appropriates $1,829,000 from the general fund to the department to implement the act. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
The act codifies the federal "Indian Child Welfare Act of 1978" into state law as the "Colorado Indian Child Welfare Act" (CO-ICWA) and provides additional protections for Indian children and children known or determined to be Indian children under state law. (Note: This summary applies to this bill as enacted.)
Section 1 of the act amends the state public financing cash fund (fund) statute in 2 ways. First, the act removes the limit on the amounts included in the issuance or incurrence of certain financial obligations by the state that the state treasurer credits to the fund. Second, the act modifies the fund so that bond counsel approval is no longer needed before money in the fund is used to reimburse the state treasurer for certain verifiable costs. Section 2 allows the state treasurer to use a security token offering for state capital financing and adopt rules as necessary to do so. Section 3 creates a new special purpose authority: The building urgent infrastructure and leveraging dollars authority (authority). The authority's primary purpose is to finance infrastructure projects that are ready for construction or commencement. As used in this context, an infrastructure project includes the development, construction, repair, improvement, operation, maintenance, decommissioning, or ownership of: A transportation infrastructure project, an infrastructure project in a transit-oriented community, a county courthouse facility, a transportation facility; utility infrastructure; renewable energy infrastructure; recycling infrastructure; energy efficiency infrastructure; an education facility; water infrastructure; information technology capital construction; affordable and accessible housing infrastructure; or digital, social, or other infrastructure related to economic development. The powers of the authority are vested in a 13-member board with the following membership: The state treasurer or the state treasurer's designee; The state architect or the state architect's designee; The chair of the capital development committee of the general assembly or any successor committee; A member of the capital development committee of the general assembly or any successor committee who is the longest serving member on the committee and who is a member of the major political party other than the party of the chair of the committee; A representative of a statewide organization representing counties, appointed by the governor; A representative of a statewide organization representing municipalities, appointed by the governor; The executive director of the Colorado education and cultural facilities authority or their designee; A representative of a statewide organization of general and specialty commercial construction contractors, appointed by the governor; A representative of a statewide employee organization representing building and construction trade workers, appointed by the president of the senate; An individual representing service employees, appointed by the state treasurer; An individual with a background in finance who has experience with pension fund management, appointed by the state treasurer; and An individual with a background in commercial lending representing an institution insured by the federal deposit insurance corporation, appointed by the state treasurer. The state treasurer or the state treasurer's designee serves as the chair of the board and is required to call the first meeting of the board no later than January 1, 2026. Among other powers, the authority may: Make and execute agreements, contracts, and other instruments as necessary to achieve the authority's purposes, including contracting with the officers, personnel, and consultants of the state treasurer to achieve its purposes; Charge to and collect from state agencies and persons fees and charges in connection with the authority's loans or other services; Issue and sell building urgent infrastructure and leveraging dollars bonds, payable solely from the building urgent infrastructure and leveraging dollars bonding fund created within the authority; Invest and deposit money; Finance or participate in the financing of eligible projects or any interest in such a project; except for projects that are within the statutory authority of the Colorado housing and finance authority; and Facilitate the funding of infrastructure projects. The infrastructure and long-term development assistance program (program) is created in the authority to allow the authority to provide financing for eligible projects. The act requires the authority to develop policies and procedures necessary to implement the program. At a minimum, the policies and procedures must specify application criteria, an application process, and a selection process for the authority to determine which eligible projects it will finance or assist in financing through the program. The authority must pay for such financing out of the eligible project revolving fund created in the authority. The act also requires that the authority allow the Colorado educational and cultural facilities authority a right of first refusal for the financing of eligible projects. (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.)
Section 1 of the act requires the state treasurer to transfer $5 million from the general fund to the stationary sources control fund on July 1, 2025, and requires the division of administration of the department of public health and environment to report on the division's implementation of efficiency improvement projects related to the stationary sources control fund. Section 2 extends the date by which the governor is required to submit the emergency stationary engine exception to the administrator of the federal environmental protection agency for inclusion in Colorado's state implementation plan from September 1, 2022, to September 1, 2025. Section 2 also extends the date by which the administrator may approve the inclusion of the emergency stationary engine exception in Colorado's state implementation plan from September 1, 2025, to September 1, 2027. (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.)
The act requires the department of personnel (department), in partnership with the office of new Americans, to conduct or contract to conduct a statewide language access assessment of the readiness of principal departments to meet the language access standards outlined in the language access universal policy (assessment). The assessment covers all principal departments except the department of state, the department of the treasury, and the department of law (principal departments). The assessment must identify: The needs of principal departments to meet the language access standards outlined in the language access universal policy, including requests for guidance, training, and technical assistance; Relevant language access materials from principal departments, including language access plans, position descriptions related to language access, procedures related to language access, and technical assistance or training materials; Information on current language services contracts, expenditures, and funding sources related to language access; The public-facing responsibilities of principal departments, including designating which principal departments and their subcontractors do and do not have frequent contact with linguistically diverse individuals; and Other covered entities that may be subject to the standards outlined in the language access universal policy. The department may enter into an agreement with a third-party entity to conduct all or part of the assessment. The third-party entity must have demonstrated expertise in working with state governments on language access initiatives, such as developing language access policies or plans. At the conclusion of the assessment and not later than December 31, 2026, the department, the office of new Americans, or the third-party entity is required to create a report that summarizes the findings of the assessment and makes recommendations concerning: Improving efficiency, increasing quality of service, reducing cost, avoiding duplicative work, building on existing best practices, and minimizing administrative burden with respect to the provision of linguistically accessible government services and programs to linguistically diverse individuals; Addressing gaps and improving meaningful service through changes to language access services, practices, and procedures; Evaluating potential technological options for increasing language access, such as artificial intelligence; and Determining what infrastructure is needed to ensure full and sustainable implementation of the standards outlined in the language access universal policy. The department must also maintain a community of practice to focus on implementing the language access universal policy with ongoing observation of best practices in the principal departments. The department must include a summary of the report and assessment in its January 2027 presentation to legislative oversight committees required by the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act". For the 2025-26 state fiscal year, $100,000 is appropriated from the general fund to the department for use by the Colorado equity office for personal services. Any money not expended by July 1, 2026, is further appropriated to the Colorado equity office through December 31, 2026. (Note: This summary applies to this bill as enacted.)
In 2021, the state received money from the federal coronavirus state fiscal recovery fund pursuant to the "American Rescue Plan Act of 2021" (ARPA money). ARPA money was deposited into the "American Rescue Plan Act of 2021" cash fund, transferred to various other cash funds (recipient funds), and appropriated from recipient funds for various programs. House Bill 24-1466, concerning exchanging money received from the federal coronavirus state fiscal recovery fund with state money, enacted in 2024, refinanced appropriated ARPA money with state money (state refinance money). The act transfers ARPA money to recipient funds to cover the costs of projects funded with ARPA money and transfers unspent state refinance money from recipient funds to the general fund. The act adjusts existing appropriations to reflect spent ARPA money and unspent state refinance money and amends program statutes to align with the appropriations adjustments. ARPA money must be obligated by December 31, 2024, and spent by December 31, 2026. Under federal law, as explained in guidance from the United States department of the treasury, the state may reclassify obligated but unspent ARPA money after December 31, 2024, upon the occurrence of certain events (qualifying events). The act reverts money upon a qualifying event from the recipient fund to the "American Rescue Plan Act of 2021" cash fund and appropriates that money to the governor for an alternate eligible use for which a general fund appropriation was made. Under existing law, the general fund appropriation is reduced by the amount of ARPA money spent for the line item of appropriation. The act repeals the requirement for the department of public health and environment to engage in recruitment and re-engagement of workers in the health-care profession because the act ends the appropriation of money for that purpose. (Note: This summary applies to this bill as enacted.)