The act increases the unauthorized insurance premium tax rate from 2.25% to 3% in parity with the surplus lines insurance tax rate. APPROVED by Governor March 31, 2023 EFFECTIVE January 1, 2024 NOTE: This act was passed without a safety clause. (Note: This summary applies to this bill as enacted.)
The act repeals the following infrequently used tax expenditures: The crop hail insurance premium tax exemption (section 1 of the act); The in-state investment pre-1959 insurance premium tax deduction (section 1); The corporate condemnation capital gains income tax deduction (section 2); The oil shale excess percentage depletion income tax deduction (section 2); The mining and milling impact assistance corporate income tax credit (section 3); The oil shale equipment and machinery severance tax deduction (section 4); The oil shale processing severance tax deduction (section 4); The oil shale severance tax rate reductions (section 4); The oil shale noncommercial production severance tax exemption (section 4); and The mineral and mineral fuels impact assistance severance tax credit (section 5). APPROVED by Governor March 23, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)
In 2009, the general assembly enacted legislation to merge the Denver public schools retirement system into the public employees' retirement association (PERA), effective January 1, 2010. The merger legislation created a Denver public schools (DPS) division within PERA and set the employer and member contribution rates for that division. The merger legislation also required PERA to calculate a true-up beginning January 1, 2015, and every fifth year thereafter, to determine whether the DPS employer contribution rate must be adjusted to assure the equalization of the DPS division's ratio of unfunded actuarial accrued liability over payroll to the PERA school division's ratio of unfunded actuarial accrued liability over payroll at the end of the 30-year period that began on January 1, 2010 (equalization of the 2 divisions). If necessary, the PERA board is required to recommend that the general assembly adjust the DPS total employer rate to assure the equalization of the 2 divisions. The general assembly enacted the last true-up for the equalization of the 2 divisions in 2015. In furtherance of the true-up for the equalization of the 2 divisions, beginning on July 1, 2023, the bill reduces the total employer contribution rate for the DPS division from 10.4% to 7.15% of salary. The bill does not alter the employer or member contribution rate for any other division of PERA. (Note: This summary applies to this bill as introduced.)
The act permits a person whose driver's license has been revoked for one year or more because of a conviction for DUI, DUI per se, DWAI, or excess BAC, or for 9 months for a first offense, to immediately apply for an early license reinstatement with an interlock-restricted license. The act requires at least 90 days of continuous alcohol monitoring for a person sentenced to probation following a third or subsequent offense, or a felony offense, for DUI, DUI per se, or DWAI. The act adds an exception for any continuous alcohol monitoring if the court finds that ordering monitoring would not be in the interest of justice or if the person's residence is in an area where the person cannot reasonably acquire a monitoring device. The act requires the judicial district's probation department to pay the costs of continuous alcohol monitoring for a person who is unable to pay and clarifies that money in the offender services fund can be used to pay those costs. The bill appropriates $517,292 from the offender services fund to the judicial department and $10,294 from the general fund to the department of revenue, which includes $1,386 reappropriated funds to the office of the governor for use by the office of information technology. (Note: This summary applies to this bill as enacted.)
The act requires a state or local government agency (agency), including an institution of higher education, that uses or intends to develop, procure, or use a facial recognition service (FRS) to file with its reporting authority a notice of intent to develop, procure, or use the FRS and specify a purpose for which the technology is to be used. For a state agency, the reporting authority is the office of information technology in the governor's office; for a local government agency, the reporting agency is the city council, county commission, or other local government agency vested with legislative powers. After filing the notice of intent, the agency must produce an accountability report that includes certain information and policies regarding the proposed use of the FRS. The act establishes requirements for the adoption, implementation, disclosure, and updating of accountability reports. The act also requires an agency using an FRS to subject to meaningful human review any decisions that result from such use and produce legal or similarly significant effects concerning individuals. An agency must test the FRS in operational conditions before deploying the FRS in a context in which it will be used to make such decisions. An agency using an FRS must conduct periodic training of all individuals who operate the FRS or who process personal data obtained from the FRS. An agency must maintain records that are sufficient to facilitate public reporting and auditing of compliance with the agency's facial recognition policies. The act also prohibits a law enforcement agency (LEA) from: Using an FRS to engage in ongoing surveillance; conduct real-time or near real-time identification; or start persistent tracking unless the LEA obtains a warrant authorizing such use, such use is necessary to develop leads in an investigation, the LEA has established probable cause for such use, or the LEA obtains a court order authorizing the use of the service for the sole purpose of locating or identifying a missing person or identifying a deceased person; Applying an FRS to any individual based on the individual's religious, political, or social views or activities; participation in a particular noncriminal organization or lawful event; or any other characteristic protected by law; Using an FRS to create a record depicting any individual's exercise of rights guaranteed by the first amendment of the United States constitution and by section 10 of article II of the Colorado constitution; Using the results of an FRS as the sole basis to establish probable cause in a criminal investigation; or Substantively manipulating an image for use in an FRS in a manner not consistent with the FRS provider's intended use and training. An agency must disclose its use of an FRS on a criminal defendant to that defendant in a timely manner prior to trial. In January of each year: Any judge who has issued or extended a warrant for the use of an FRS during the preceding year, or who has denied approval of such a warrant during that year, must report certain information to the state court administrator; and Any agency that has applied for a warrant or an extension of a warrant for the use of an FRS to engage in any surveillance must provide to the agency's reporting authority a report summarizing nonidentifying demographic data of individuals named in warrant applications as subjects of surveillance. The requirements of the act do not apply to: An agency that is required to use a specific FRS pursuant to a federal regulation or order or that uses an FRS in partnership with a federal agency to fulfill a congressional mandate, fulfill aviation security directives, or comply with federal law; that uses an FRS in association with a federal agency to verify the identity of individuals presenting themselves for travel at an airport; or that uses an FRS in connection with a physical access control system in order to grant or deny access to a sterile area of an airport; The use of an FRS solely for research purposes by a state agency, so long as the use does not result in or affect any decisions that produce legal effects concerning individuals or similarly significant effects concerning individuals; or A utility. The act also prohibits a school district or a public school, charter school, or institute charter school from contracting with a vendor for the purchase of, or services related to, an FRS until July 1, 2025. However, the prohibition does not apply to a contract: That was executed before the effective date of the act; or For the purchase of, or for services related to, a generally available consumer product that allows for the analysis of facial features in order to facilitate the user's ability to manage an address book or images for personal or household use. The act also creates a task force for the consideration of FRSs (task force) and requires the task force to examine and report to the joint technology committee of the general assembly concerning the extent to which state and local government agencies are currently using FRSs and provide recommendations concerning the extent to which such agencies should be permitted to continue to do so, including certain specific considerations. The task force must submit a report on or before October 1, 2023, and on or before each October 1 thereafter, to the joint technology committee. The report must include a recommendation as to whether the scope of the issues for study by the task force should be expanded to include consideration of artificial intelligence other than FRSs, or even artificial intelligence itself, and whether the membership of the task force should be adjusted accordingly. The task force is repealed, effective September 1, 2027, subject to a sunset review by the department of regulatory agencies. The act also states that an individual may authorize an agent to access and process the individual's personal data or other information held by a controller and that is otherwise accessible to the individual, and such an authorization does not constitute cybercrime. For the 2022-23 state fiscal year, the act appropriates $11,109 from the general fund to the legislative department. (Note: This summary applies to this bill as enacted.)
Starting October 1, 2022, and by each March 1 thereafter, the act requires any person that is not authorized to engage in the business of insurance in this state but that offers or intends to offer a plan or arrangement to facilitate payment or reimbursement of health-care costs or services for Colorado residents to annually submit to the commissioner of insurance (commissioner) specified information and a certification that the information is accurate and complies with the requirements of the act. The submission must include information about the operation of the plan or arrangement in this state in the immediately preceding calendar year, including: The number of participants in the plan or arrangement and, if the person offers a plan or arrangement in other states, the total number of participants nationally; Any contracts the person has entered into with providers that provide health-care services to plan or arrangement participants; The total amount of fees, dues, or other payments collected from participants and the percentage of fees, dues, or other payments that the person retained; The total dollar amount of requests for reimbursement of health-care services submitted by participants or providers, the total dollar amount of requests for reimbursement that were determined to qualify for reimbursement, and the total dollar amount of requests for reimbursement that were denied; The total amount of payments made to providers or to reimburse participants for health-care services provided or received and the total amount of requests determined to qualify for reimbursement but not yet reimbursed as of the end of the preceding calendar year; The estimated number of participants the person anticipates in the next calendar year; The counties in which the person offers or intends to offer a plan or arrangement and any other states in which the person offers a plan or arrangement; A list of third parties associated with, or offering or enrolling participants in a plan or arrangement on behalf of, the person and a detailed accounting of commissions or other remuneration paid to a third party for services provided in promoting or administering the plan or arrangement; The total number of insurance brokers that are associated with or assist the person in offering or enrolling participants in the plan or arrangement, the total number of participants enrolled in the plan or arrangement through a broker, copies of training materials provided to a broker, and a detailed accounting of commissions or other remuneration paid to a producer for marketing, promoting, and enrolling participants in a plan or arrangement; and Contact information for an individual serving as the person's contact person in this state, a list of the person's officers and directors, and the person's organizational chart. Within 45 days after receipt, the commissioner is to determine whether a submission by a person is complete. Each year, the commissioner is to compile a report summarizing the information submitted by persons and post the report on the division of insurance (division) website. The commissioner is authorized to adopt rules to implement the act. If the commissioner determines that a person has failed to comply with the submission requirements, the commissioner must notify the person of the deficiency and allow the person 30 days to correct the deficiency. If a person fails to timely correct the deficiency, the commissioner may impose a fine not to exceed $5,000 per day, and if the person fails to correct the deficiency within 30 days after the initial fine is imposed, the commissioner may issue an emergency cease-and-desist order against the person. The act appropriates $84,568 from the division of insurance cash fund to the department of regulatory agencies to implement the act as follows: $39,097 for use by the division for personal services; $6,875 for use by the division for operating expenses; $19,714 for legal services, which amount is reappropriated to the department of law to provide the legal services; and $18,882 for information technology services, which amount is reappropriated to the office of information technology in the office of the governor to provide information technology services.(Note: This summary applies to this bill as enacted.)
The act creates a refundable income tax credit (credit) that is available for the income tax year commencing on January 1, 2022, for a qualifying senior, which means a resident individual who: Is 65 years of age or older at the end of 2022; Has federal adjusted gross income (AGI) that is less than or equal to $75,000; and Has not claimed a homestead property tax exemption for the 2022 property tax year. The amount of the credit is $1,000 for a qualifying senior with federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10. In the case of 2 taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, both taxpayers may claim the credit, but the maximum credit for each taxpayer is $500 and, for every $500 of adjusted gross income above $25,000, the amount of the credit is reduced by $5. Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during calendar year 2022 is eligible to receive the full credit. The property tax administrator is required to provide reports from counties related to taxpayers who are eligible for and actually claim the homestead property tax exemption. (Note: This summary applies to this bill as enacted.)
The act creates the Colorado nonprofit security grant program to provide money to qualified nonprofit organizations that are at high risk of a terrorist attack and that applied for, but did not receive, a grant from the federal nonprofit security grant program. Grant recipients may use the money for the following security-related activities: The installation of security equipment on real property owned or leased by the nonprofit organization; Security-related planning, exercises, training, and contracted security personnel; New or existing infrastructure; except that priority must be given to existing infrastructure projects; or Any other approved security enhancements. The act appropriates $500,000 from the general fund to the department of public safety for use by the division of homeland security and emergency management. (Note: This summary applies to this bill as enacted.)
The act creates the "Infrastructure Investment and Jobs Act" cash fund (fund) and requires the state treasurer to transfer $80,250,000 to the fund. The money in the fund is subject to annual appropriation by the general assembly to the office of the governor (office) and to departments. Money in the fund is to be used, subject to approval by the governor, as the nonfederal matching funding necessary for the state or a local government to be eligible to receive federal approval and federal funds for certain categories of infrastructure projects allowed under the federal "Infrastructure Investment and Jobs Act". The office must establish a process for receiving, reviewing, and approving applications and awarding and distributing money from the fund. The office, as well as state departments receiving money from the fund, are subject to annual reporting requirements. $60 million is appropriated from the fund to the office and to a department, as defined in the act, for the 2021-22 state fiscal year, and any money appropriated and not expended prior to July 1, 2022, is further appropriated through the 2026-27 state fiscal year. (Note: This summary applies to this bill as enacted.)
In the capital financing context generally and as defined in section 2 of the act: A security token is a digital, liquid contract made verifiable and secure through the use of blockchain technology that establishes its holder's right to a fraction of a financial asset such as a stock, bond, or certificate of participation; and A security token offering is a capital financing method in which security tokens representing fractional interests in a financial asset are sold to investors in lieu of selling the actual financial asset to investors. Section 2 also requires the state treasurer to study the feasibility of using security token offerings for state capital financing and determine the extent to which the use of security token offerings of state capital financing would be in the best interest of the state. The state treasurer is required to complete the study and report the study findings to the finance committees and joint budget committee of the general assembly by March 1, 2023, and to post the study findings on the department of the treasury's website. If the state treasurer determines, after completing the feasibility study, that the use of security token offerings for state capital financing is in the best interest of the state, the state treasurer may recommend as part of the report that the general assembly enact legislation to authorize such use. Section 1 authorizes the state treasurer to spend up to $125,000 from the state public financing cash fund to fund the completion of the feasibility study. Section 3 broadens the definition of "eligible state facility" used for purposes of identifying the types of state-owned assets that may be used as collateral for state capital financing used to finance capital construction and transportation projects to include any financially unencumbered state-owned asset that is not part of the state emergency reserve. Section 4 makes an appropriation of $100,000 to the department of the treasury for implementation of the act, of which $70,000 is for use by the administration division for operating expenses and $30,000 is for the purchase of legal services. (Note: This summary applies to this bill as enacted.)
