Sen. Angela Williams

The secretary of state currently charges uniform commercial code (UCC) filing fees. Of this fee, $3 is transferred for deposit in the Colorado identity theft and financial fraud cash fund to support activities of the Colorado fraud investigators unit. Legislation enacted in 2014 increased the portion of the UCC filing fee that is transferred to the Colorado identity theft and financial fraud cash fund from $3 to $4, which increase is scheduled to repeal in 2017. The bill extends the scheduled repeal date for the increased fee, and for an associated report to the general assembly, until 2018. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Joint Technology Committee. Current law specifies a process by which any department, institution, or agency of the state, including any institution of higher education, may request permission to expend money differently from the authority granted by an appropriation for a capital construction budget item if the project for which the appropriation was made requires a nonmonetary adjustment for its timely continuation and the nonmonetary adjustment is due to unforseen circumstances arising while the general assembly in not in session. This process includes appropriations for capital construction, controlled maintenance, or capital renewal appropriations. Currently, the process does not include information technology capital projects, as they are no longer included in the definition of capital construction. The bill specifies that a department, institution, or agency of the state, including any institution of higher education, may, under the same circumstances specified for capital construction appropriations, use the process to request permission to expend money differently from the authority granted by the appropriation for an information technology capital project.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Sunset Process - Senate Business, Labor, and Technology Committee. The bill implements the recommendations of the department of regulatory agencies' sunset review and report on the functions of the division of insurance (division) by: Continuing the functions of the division for 13 years, until 2030 ( sections 1 and 2 of the bill); Establishing a separate sunset date for the regulation of preneed funeral contracts in 2022 ( section 5 ); Reassigning certain duties related to health maintenance organizations from the executive director of the department of public health and environment to the commissioner of insurance (commissioner) ( sections 6 through 13 ); Repealing the 'Certified Capital Company Act', effective July 1, 2025 ( section 14 ); Removing the exemption of policies with more than 4 automobiles from consumer protection provisions ( section 15 ); Eliminating the requirement that an insurer authorized to transact business in Colorado file a schedule of insurance rates for required minimum coverages by July 1, 2003 ( section 16 ); Expanding the definition of 'enrollee' to include certain individuals with non-HMO or prepaid plans ( section 17 ); Revising the definition of 'participating provider' to include providers in other states that are part of the carrier's managed care network since consumers may use contracted providers in other states when Colorado insurance protections are applicable ( section 17 ); Repealing the 35% surcharge above the modified community rate that an insurance carrier is permitted to impose on small employers that previously purchased self-funded health benefit coverage or a health benefit plan that was not a small group plan ( section 18 ); Repealing the requirement for a one-time training course that was to be completed by January 1, 2009 ( section 19 ); Changing a reference to the location of the definition of health care providers from the statutes governing reimbursement to providers of health care services to refer to statutes governing the statewide managed care system ( section 20 ); and Clarifying that all bail agents licensed by the division are exempt from the private investigator licensing statute ( section 21 ). Section 3 of the bill requires fines and penalties levied on insurers to relate to the general business practices and compliance activities of insurers. Section 4 of the bill requires the division to study the compliance of preneed funeral contract sellers with Colorado law and report the findings of the study to the legislature not later than September 1, 2017.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Joint Technology Committee. The bill adds definitions of 'cybersecurity' and 'data privacy' for the purposes of the joint technology committee (committee). In addition, the bill modifies the definition of 'oversee' for the purposes of the committee to be consistent with other statutory provisions. The bill adds to the powers and duties of the committee the authority to request information and presentations regarding data privacy and cybersecurity within state agencies and the authority to coordinate with the Colorado cybersecurity council created in the department of public safety. In addition, the committee may consider: Whether state agencies are collecting or retaining data that exceeds what is necessary and appropriate for such agencies to perform their functions; Who has access to data, the extent of such access, and appropriate mechanisms to protect sensitive data; and Measures to protect data against unauthorized access, disclosure, use, modification, or destruction. Currently, the committee is required to review and may make recommendations to other legislative committees on any legislative measure that the speaker of the house of representatives or the president of the senate determines to be dealing with information technology. The bill specifies that this requirement includes data privacy and cybersecurity. The bill also specifies that the committee may request to review and make recommendations to other legislative committees on any legislative measure that the committee determines to be dealing with information technology, data privacy, or cybersecurity. Pursuant to current law, the committee will repeal on July 1, 2018. The bill eliminates the repeal of the committee. The bill requires the office of state planning and budgeting to design and prepare, in coordination with the staff of the committee, the forms and instructions to be used in preparation of all budget requests and supplemental budget requests submitted to the committee. The forms and instructions must require that budget requests submitted to the committee include: Information from a request for information or other formal market research regarding the information technology budget request; A defined scope of work and information regarding whether a vendor or consultant assisted in preparing the specifications or statement of work included in the information technology budget request; A range of options for completing the project, including the estimated costs for such options; and Any other available and relevant information obtained from the market research related to the information technology budget request.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill requires a school district to distribute revenue it receives from ongoing local property tax mill levies equally, on a per-student basis, to the school district charter schools. Under specified circumstances, the school district may distribute the revenue using a different calculation. The bill does not require a school district to redistribute to charter schools any amount of the mill levy revenue that it distributed in budget years before the 2017-18 budget year. The requirement to distribute local property tax mill levy revenue to the district charter schools is phased in over 3 years starting in the 2018-19 budget year. In that year, a school district must calculate the per-student amount based on 33% of the amount of local property tax revenue collected. In the 2019-20 budget year, the per-student amount is calculated based on 66% of the amount of revenue collected. In the 2020-21 budget year and each budget year thereafter, the per-student amount is calculated based on 100% of the amount of revenue collected. But, if a school district in the 2016-17 budget year distributed to the district charter schools more than the amount required for the 2018-19 budget year or the 2019-20 budget year, it must continue distributing the higher amount in each of those budget years. A school district may place a question on the ballot in the next school district election after the bill passes asking the school district voters whether they want the school district to distribute to the district charter schools the amount of local property tax mill levy revenue that was approved before July 1, 2017, as required in the bill. If a majority votes 'no', the local school board may choose whether to distribute any portion of the local property tax mill levy revenue to the district charter schools. If a majority votes 'yes', then the local school board must distribute the local property tax mill levy revenue to the district charter schools as required in the bill. The election does not apply to any local property tax mill levies that are approved on or after July 1, 2017. The bill creates the mill levy equalization fund for charter schools authorized by the state charter school institute (institute charter schools). The general assembly chooses whether to appropriate money to the fund. The department of education is required to distribute any amount appropriated to the institute charter schools on a per-pupil basis in recognition of the institute charter schools' inability to access any amount of local property tax mill levy revenue. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill contains a legislative declaration about the difficulties small businesses encounter when attempting to stay current with changing rules and new rules that affect their businesses. The bill identifies 4 specific actions that the executive branch could take to inform small businesses about proposed and new rules. The bill creates a system that gives state agencies discretion in imposing fines upon a business for a first-time offense of a minor violation. The agency's discretion applies to small businesses with 50 or fewer employees (business). Unless specifically stated otherwise in statute, a state agency has discretion to give the business an opportunity to cure the violation in 30 business days and to waive the penalties or fine if the minor violation is cured. If the business: Cures the minor violation within 30 days, the agency shall waive the penalties or fine or both; or Cures the minor violation after the 30-day cure period has run, the agency may reduce the penalties or fine in full or in part. The opportunity to cure a minor violation does not apply in cases where an agency is required by statute to assess a fine for noncompliance. The bill defines 'minor violation' as a violation that: Relates to operational or administrative matters such as record keeping, retention of data, or failing to file reports or forms; and Is enforced by a fine, either in total or in the aggregate, of $500 or less; and Meets one of the following conditions: The violation relates to a rule promulgated within the 12 months immediately preceding the alleged violation; or The violation relates to any rule and the business that has committed the minor violation has been operating as a business for less than 1 year prior to the violation. 'Minor violation' does not include: Any matter that places the safety of employees; other persons; or the public health, safety, or environment at risk; or Violations relating to: The issuance of or denial of benefits or compensation to employees; or Activities required by federal law. Each state agency shall conduct an analysis of noncompliance with its rules to identify rules with the greatest frequency of noncompliance, rules that generate the greatest amount of fines, how many first-time offenders were given the opportunity to cure a minor violation, and what factors contribute to noncompliance by regulated businesses. The agency shall consider and review what actions should be taken to address the issues identified. Any principal department that conducts an analysis of noncompliance with rules shall forward that analysis to the department of regulatory agencies, who shall compile and summarize those analyses into one combined analysis of noncompliance with rules. The department of regulatory agencies shall include that compiled analysis in its departmental presentation to the oversight legislative committee pursuant to the 'SMART Government Act'. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

In a construction defect action in which more than one insurer has a duty to defend a party, the bill requires the court to apportion the costs of defense, including reasonable attorney fees, among all insurers with a duty to defend. An initial order apportioning costs must be made within 90 days after an insurer files its claim for contribution, and the court must make a final apportionment of costs after entry of a final judgment resolving all of the underlying claims against the insured. An insurer seeking contribution may also make a claim against an insured or additional insured who chose not to procure liability insurance for a period of time relevant to the underlying action. A claim for contribution may be assigned and does not affect any insurer's duty to defend. (Note: This summary applies to this bill as introduced.)

Currently and until September 1, 2018, a distributor can claim a credit for taxes paid on tobacco products that are shipped or transported by the distributor to a consumer outside of the state. The bill makes the credit permanent. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Joint Technology Committee. The bill creates a new source selection and contract negotiation timeline that a state agency is required to follow when it plans to submit a budget request to the joint technology committee (committee) for a major information technology project (project). The office of state planning and budgeting is required to ensure that state agencies adhere to the new timeline prior to submitting a budget request to the committee as follows: On or before November 1 of the fiscal year prior to the fiscal year in which a state agency intends to submit a budget request to the committee for a project, the state agency is required to notify the committee of its intent to begin the source selection and contract negotiation process. On or before January 1 of the fiscal year prior to the fiscal year in which a state agency intends to submit a budget request to the committee for a project, the state agency is required to issue a competitive solicitation in accordance with the 'Procurement Code'. The competitive solicitation is required to specify that the terms of a contract resulting from the solicitation require the vendor to honor its contract price through the date that work on the contract commences and that vendors are directed to estimate costs accordingly for the purpose of responding to the solicitation. A state agency that has issued a competitive solicitation is required to receive and review the responses from vendors and determine whether to pursue the project and the budget request on or before April 15 of the fiscal year prior to the fiscal year in which the state agency intends to submit the budget request to the committee. If the state agency intends to pursue a budget request for the project, the state agency must award a contract to the selected vendor on or before June 30 of the fiscal year prior to the fiscal year in which the state agency intends to submit the budget request to the committee. The terms of a contract awarded for a project must specify that: The state agency will pursue a budget request for the project in the fiscal year immediately following the fiscal year in which the contract is awarded; The contract is contingent upon the state agency receiving an appropriation from the general assembly for the project; Work on the contract will not commence until the bill enacted by the general assembly that appropriates the money for the project becomes law; The vendor is required to honor its contract price through the date that work on the contract commences; The state agency may amend terms of the contract, as necessary, following the date on which the bill that appropriates the money for the project becomes law; The state agency will authorize the vendor to begin work on the contract within 30 days of the date that the bill that appropriates the money for the project becomes law; and The contract is null and void if the general assembly does not appropriate money to the state agency for the project. A state agency may include in a contract awarded any other terms or conditions related to the appropriation of money to the state agency by the general assembly as deemed necessary by the state agency. A state agency that has awarded a contract for a project is required to submit a budget request for the project to the committee in the fiscal year immediately following the fiscal year in which the contract was awarded. (Note: This summary applies to this bill as introduced.)