Bill Tracker

For wage claims brought by individuals working in the
construction industry, the bill:
  • Requires that a subcontractor that receives a written
demand for payment forward a copy of the written demand
for payment to the general contractor within 3 business
days after receipt;
  • Specifies that a general contractor and a subcontractor that
is a direct employer of an employee are jointly and
severally liable for all debts owed based on a wage claim or
investigation that are incurred by the subcontractor acting
under, by, or for the general contractor; and
  • Allows a general contractor to require the following
information from each subcontractor acting under, by, or
for the general contractor:
  • Pay data;
  • Contact information; and
  • An affidavit attesting to whether the subcontractor
has participated in a civil or administrative
proceeding within the last 5 years and, if so, the
outcome of the proceeding.

The bill establishes that evidence that a person has engaged in an
unfair or deceptive trade practice constitutes a significant impact to the
public.

The bill requires the division of labor standards and statistics in the
department of labor and employment to create and make available to
employers suicide prevention education posters and notices.
Starting July 1, 2025, employers are required to display the suicide
prevention education posters in their workplaces and certain employers
are required to include the suicide prevention education notices in
documents provided to employees.
The office of suicide prevention within the department of public
health and environment must create a website to provide information
about workplace suicide prevention. The bill requires the suicide
prevention education posters to include a quick response (QR) code and
a website link to connect to the website.

Sales and Use Tax Simplification Task Force. Under current
law, the executive director of the department of revenue is authorized to
permit taxpayers whose monthly tax collected is less than $300 to make
returns and pay taxes at quarterly intervals. The bill increases that
threshold to $600 for returns that must be filed on and after January 1,
2025.
The bill also imposes thresholds that home rule cities, towns, and
city and counties that collect their own sales and use taxes and do not use
the electronic sales and use tax simplification system administered by the
department of revenue (SUTS) must adhere to in allowing taxpayers to
make returns and pay sales and use taxes. On and after January 1, 2025,
a taxpayer must be permitted to make returns and pay sales and use taxes
as follows:
  • Once a year if the taxpayer annually collects less than
$2,000;
  • Quarterly if the taxpayer annually collects between $2,000
and $25,000; and
  • Monthly if the taxpayer annually collects more than
$25,000.
Additionally, the bill requires all local taxing jurisdictions to begin
using SUTS by July 1, 2025. Local taxing jurisdictions that do not begin
using SUTS by July 1, 2025, will be precluded from participating in the
streamlined process for collecting sales and use tax from retailers that
have a state standard retail license and either do not have a physical
presence within the local taxing jurisdiction or have only incidental
presence.

The bill limits the sale or transfer of a product containing sodium
nitrite in a concentration greater than 10% of the mass or volume of the
product (covered product) to commercial businesses that are verified to
require a covered product.
The bill requires covered products to meet specified labeling
requirements.

The bill requires the division of insurance (division) to conduct or
cause to be conducted a study of construction liability insurance for
construction professionals in Colorado. The study must identify the
following:
  • All insurers offering construction liability policies in
Colorado (policies);
  • The rates charged by insurers for policies and the basis for
the rates, including data for the past 5 years, if available;
  • Risk factors, classifications, and coverage descriptions
insurers use to set policy rates;
  • A comparison of the policy rates insurers charge with rates
charged by other states in the region to cover similar
residential projects;
  • Policy coverage terms; and
  • Common limitations or exclusions from policy coverage.
The bill requires that, at least 14 days prior to closing the sale of
a new residence, the seller of the residence provide the purchaser and the
county clerk and recorder's office for the county where the new residence
is located with information regarding the insurance coverage for the
property subject to the sale, including:
  • Identification of each policy and the coverage provider that
may provide coverage for a construction professional's
work on the residence;
  • The amount of the policy limits for each policy identified;
  • The policy period for each policy identified, including
whether the policy provides coverage on a claims-made
basis or occurrence basis; and
  • Identification of relevant exclusions from coverage.

The bill increases penalties for violations of the Colorado Youth
Employment Opportunity Act of 1971 (act) and requires that the
penalties be deposited into the wage theft enforcement fund. Entities that
violate the act must also pay specified damages to the individual who is
aggrieved. The bill eliminates a provision in current law penalizing a
person, having legal responsibility for a minor, who knowingly permits
the minor to be employed in violation of the act.
The director of the division of labor standards and statistics
(director) is required to include a description of the penalties and damages
owed in the written notice issued to an employer if the act is violated.
The division of labor standards and statistics is required to treat all
final orders issued for violations of the act as public records and to release
information related to a violation to the public upon request pursuant to
the Colorado Open Records Act, unless the director makes a
determination that the information is a trade secret.
The director may, or, at the request of the individual aggrieved,
must, file a certified copy of a final order for a violation of the act with
the clerk of any court having jurisdiction over the parties at any time after
the entry of the order.
The bill applies the state's discrimination and retaliation
prohibitions to individuals attempting to exercise rights protected by the
act and creates a rebuttable presumption of retaliatory action if an entity
engages in adverse action against an individual aggrieved within 90
calendar days after the individual aggrieved exercises a right protected by
the act.

Effective September 1, 2024, the bill makes changes to Colorado's
occupational credential portability program (program) relating to the
spouses and dependents of military members, including:
  • In addition to military spouses already covered by the
program, allowing gold star military spouses and
dependents of military members who are licensed, certified,
registered, or enrolled in a profession or occupation
(credentialed) in good standing in another state or United
States territory (current state) to be credentialed in
Colorado by endorsement from the current state to practice
the same profession or occupation in Colorado;
  • Allowing an applicant to be credentialed under the program
if the applicant committed an act that would have been
grounds for discipline in this state, but for which the
applicant remains in good standing in the current state
because the act is not grounds for discipline in the current
state;
  • Removing the 3-year limitation and nonrenewal provision
for a military spouse's credential and allowing military
spouses, gold star military spouses, and military dependents
to obtain a renewable 6-year credential while in Colorado;
  • Waiving the application and renewal fee for Colorado
credentials issued to military spouses, gold star military
spouses, and military dependents; and
  • Expanding eligibility for the program to spouses and
dependents of Armed Forces Reserve, Ready Reserve, and
National Guard members in Colorado.

The bill establishes a state income tax credit (credit) for the sale or
lease of land, crops, livestock and livestock facilities, farm equipment and
machinery, grain storage, irrigation equipment, or water used for
agriculture (agricultural assets) to certain agricultural producers for
income tax years beginning on or after January 1, 2026, but before
January 1, 2031. There are 3 different credits that may be earned by a
qualified taxpayer. For the sale of an agricultural asset to a beginning
farmer or rancher or socially disadvantaged farmer or rancher, a qualified
taxpayer may earn a credit equal to 5% of the lesser of the sale price or
fair market value of the agricultural asset up to a maximum credit of
$32,000 for one income tax year. For the lease of an agricultural asset to
a beginning farmer or rancher or socially disadvantaged farmer or
rancher, a qualified taxpayer may earn a credit equal to 10% of the gross
rental income in each of the first, second, and third years of the rental
agreement, up to a maximum credit of $7,000 for one income tax year.
For the lease of an agricultural asset to a beginning farmer or rancher or
socially disadvantaged farmer or rancher for a period of 20 years or more,
a qualified taxpayer may also earn a credit equal to 2% of the gross rental
income for each year after the first 3 years of the extended term lease, up
to a maximum amount of $2,000 per income tax year. The credit is
refundable and may not be carried forward.
To claim the credit, a qualified taxpayer must apply to the
Colorado agricultural value-added development board (board) for a credit
certificate (certificate). The board will evaluate the application and issue
a certificate if the taxpayer qualifies for the credit. If a certificate is
issued, the qualified taxpayer must attach it to the taxpayer's income tax
return and submit it to the department of revenue to claim the credit. The
board may issue rules to administer the credit.
The aggregate amount of credits issued in one calendar year cannot
exceed $2 million. After certificates have been issued for credits that
exceed an aggregate of $2 million for all qualified taxpayers during a
calendar year, any claims that exceed the amount allowed are placed on
a wait list in the order submitted and a certificate is issued for use of the
credit in the next income tax year. No more than $2 million in claims
shall be placed on the wait list in any given calendar year.

Current law prohibits a local government from creating laws that
regulate the use of pesticides by pesticide applicators regulated by state
or federal law. The bill allows a local government to create and enforce
laws regulating the sale or use of pesticides to protect the health and
safety of the community with certain exceptions.

The bill allows a claimant for workers' compensation benefits to
refuse an offer of modified employment if the employment requires the
claimant to drive to and from work and the treating physician has
restricted the claimant from driving.
The bill adds the loss of an ear to the list of other body parts for
which an injured worker can receive whole person permanent impairment
benefits.
Current law limits the amount of money that a claimant for
workers' compensation benefits may receive dependent on the claimant's
impairment rating. The bill removes these limitations and replaces them
with one limit of $300,000, adjusted annually by the director of the
division of workers' compensation.
The bill requires a workers' compensation insurer to pay benefits
to a claimant by direct deposit upon request by the claimant.

Current law declares void any express waivers of or limitations on
the legal rights or remedies provided by the Construction Defect Action
Reform Act or the Colorado Consumer Protection Act. Sections 1 and
4 make it a violation of the Colorado Consumer Protection Act to
obtain or attempt to obtain a waiver or limitation that violates the
aforementioned current law. Section 4 also requires a court to award to
a claimant that prevails in a claim arising from alleged defects in a
residential property construction, in addition to actual damages,
prejudgment interest on the claim at a rate of 6% from the date the work
is finished to the date it is sold to an occupant and 8% thereafter.
Current law requires that a lawsuit against an architect, a
contractor, a builder or builder vendor, an engineer, or an inspector
performing or furnishing the design, planning, supervision, inspection,
construction, or observation of construction of an improvement to real
property must be brought within 6 years after the claim arises. Section 2
increases the amount of time in which a lawsuit may be brought from 6
to 10 years. Current law also provides that a claim of relief arises when
a defect's physical manifestation was discovered or should have been
discovered. Section 2 also changes the time when a claim of relief arises
to include both the discovery of the physical manifestation and the cause
of the defect.
Section 3 voids a provision in a real estate contract that prohibits
group lawsuits against a construction professional.
Section 5 of the bill prohibits governing documents of a common
interest community from setting different or additional requirements than
those in current law for a construction defect action.

The bill prohibits an employer from requiring an employee to
attend meetings, listen to speech, or view communications concerning
religious or political matters.
The bill also prohibits an employer from threatening an employee,
subjecting an employee to discipline, or discharging an employee on
account of the employee's refusal to attend or participate in an
employer-sponsored meeting where the employer communicates religious
or political matters or opinions.
Certain employer communications are exempt from the
prohibition, including communications required by law or that are
necessary for an employee to perform the employee's job duties.
The bill creates a private right of action in district court for
aggrieved persons who prevail in court seeking payment of front pay, lost
wages and compensation, costs, and attorney fees.
Each employer is required to post a notice of the employee rights
outlined in the bill at the employer's workplace.

A metropolitan district is a type of special district that provides at
least 2 types of services and may perform covenant enforcement similar
to the role of a homeowners' association. The bill requires a metropolitan
district engaging in covenant enforcement and design review services to
comply with certain procedural requirements, including:
  • Adopting a written policy governing the imposition and
collection of fines;
  • Adopting a written policy governing how disputes between
the metropolitan district and a resident are addressed; and
  • Refraining from prohibiting residents from engaging in
certain activities regarding the use of their property,
including displaying flags and signs, parking a motor
vehicle in a driveway, removing certain vegetation to create
a defensible space for fire mitigation purposes, performing
reasonable property modifications to accommodate
disabilities, using a rain barrel, operating a family child
care home, using renewable energy generation devices, and
installing or using an energy efficiency measure.
Additionally, a metropolitan district is prohibited from
requiring residents to use cedar shakes or other flammable
roofing materials.
The bill prohibits a metropolitan district from foreclosing on any
lien based on a resident's delinquent fees or other charges owed to the
metropolitan district. The bill also imposes certain procedural
requirements regarding court actions filed by or against a metropolitan
district based on an alleged violation of the metropolitan district's
declaration, rules and regulations, or other instrument.

Section 1 of the bill, on and after January 1, 2027, prohibits the
sale and distribution of certain air conditioners that are manufactured on
or after January 1, 2027, (covered HVAC) unless the covered HVAC
complies with certain technical standards (technical standards).
On or before January 1, 2029, and again on or before January 1,
2034, the executive director of the department of public health and
environment (executive director) must assess compliance with the
technical standards. On or before February 1, 2029, and again on or
before February 1, 2034, the executive director must prepare a report of
the assessments.
Before January 1, 2027, the executive director must establish a
secure process that allows an individual to make an anonymous report of
a violation of the technical standards. In the case of the first 2 violations
of the technical standards, the executive director must send a warning
letter to the alleged violator. In the case of a third or subsequent violation,
the attorney general may bring a civil action to seek a civil penalty of no
more than $2,000 per ton of cooling and certain other remedial actions.
Section 3, on or before January 1, 2026, and every other January
1 until January 1, 2034, requires the Colorado energy office (energy
office) to conduct a market study or literature review to estimate the
average cost difference for certain income-qualified households and
income-qualified housing providers between installing a covered HVAC
that meets the technical standards and installing a covered HVAC that
does not meet the technical standards (study).
On or before January 1, 2027, the energy office shall establish a
program to offer certain financial incentives to certain income-qualified
households and income-qualified housing providers to cover the average
cost difference described in the energy office's most recent study.
For income tax years commencing on and after January 1, 2024,
but before January 1, 2034, section 4 creates a refundable, assignable
state income tax credit that a home builder or an HVAC contractor that
installs certain cold-climate heat pumps or ground-source heat pumps
(eligible heat pump) can claim in the tax year that the eligible heat pump
is placed into service. The amount of the tax credit is $5,000 per
installation of an eligible heat pump, but the amount claimed may be
increased based on certain criteria. A home builder or an HVAC
contractor must provide certain verification information to the department
of revenue to qualify for the tax credit.
Section 5:
  • Makes certain changes to definitions;
  • Changes the state income tax credit amounts that may be
claimed for the installation of certain other heat pumps; and
  • Requires the energy office to post information about the tax
credit on the energy office's website.
Section 6 makes certain changes to definitions.
Section 8, on or before April 1, 2025, requires a public utility that
provides electricity to submit to the public utilities commission a proposal
for a specific voluntary rate or rates for electricity supplied to residential
customers who utilize a heat pump as their primary heating source.
Section 9 requires, on and after January 1, 2025, recipients of state
financial assistance for new building construction projects that include
energy-consuming products covered by the Energy Star program (covered
energy-consuming products) to use covered energy-consuming products
certified by the Energy Star program (requirements).
On and after January 1, 2025, a state agency that provides or
administers state financial assistance for a new building construction
project (state agency) must include certain requirements in the state
agency's criteria for receiving state financial assistance and request an
affidavit signed by the recipient of the state financial assistance that
declares that the requirements have been or will be followed or that the
recipient is requesting a waiver from the requirements. A state agency
may issue a waiver from the requirements based on certain evidence and
an attestation from a licensed professional engineer or design
professional. On or before December 1, 2024, the energy office must
distribute and periodically update certain guidance and forms related to
the requirements.
If the attorney general has probable cause to believe that a
recipient of state financial assistance has violated the requirements, the
attorney general may bring a civil action to seek a civil penalty of up to
the total amount of state financial assistance received by the violator.
Current law prohibits a person from selling or leasing new
residential windows, residential doors, and residential skylights in the
state on and after January 1, 2026, unless the product satisfies certain
criteria under the Energy Star program. Section 10 changes current law
to require new residential windows, residential doors, and residential
skylights to instead satisfy certain standards in the International Energy
Conservation Code.

Under current law, a board of county commissioners or governing
body of a municipality (local government) may authorize the use of
graywater within its jurisdiction. Graywater refers to certain types of
wastewater that is collected from fixtures before it is treated and put to
certain beneficial uses.
The bill authorizes the installation of graywater treatment works
and the use of graywater statewide; except that a local government:
  • May adopt an ordinance or a resolution prohibiting the
installation of graywater treatment works or the use of all
graywater or categories of graywater use within its
jurisdiction; and
  • Shall notify the division of administration in the
department of public health and environment of any such
local ordinance or resolution adopted.
To incentivize the installation of graywater treatment works within
a residential building for indoor water reuse, the bill also creates a state
income tax credit that allows a taxpayer to claim a credit up to 50% of the
cost of such an installation or up to $5,000, whichever amount is less.

On July 1, 2024, the bill requires a one-time $3.8 million transfer
from the general fund to the regional talent development initiative grant
program fund to address workforce shortages in infrastructure and
building trades. Of this amount, not more than 7% may be used for the
administrative costs incurred to administer the regional talent
development initiative grant program.
The regional talent summit grant program (grant program) is
created and is to be administered by the governor's office of economic
development and international trade (office). The grant program, through
a selection committee, will award grants to and contract with a program
facilitator to develop regional summits across the state. The program
facilitator will understand workforce development needs in identified
regions of the state, generate a landscape analysis for each identified
region that includes job projections and an overview of educational
pathways, gather insight from employers about critical workforce and
training needs, create regional goals for addressing talent needs, and
develop comprehensive tactical plans. Beginning January 1, 2026, any
modified or new local workforce development plan must incorporate the
tactical plans. The program facilitator must complete all regional talent
summits on or before July 1, 2025, and submit workforce plans as a result
of the regional talent summits by December 1, 2025.
The grant program, through a selection committee, will also award
grants to one or more regional hosts to secure facilities to host regional
talent summits, determine community partners to attend the summits, and
gather insight from regional employers about critical workforce and
training needs.
The regional talent summit development initiative grant program
fund (fund) is created in the state treasury. On July 1, 2024, the state
treasurer shall transfer $200,000 from the general fund to the fund. The
money in the fund is continuously appropriated to the office.
The bill establishes a state income tax credit (tax credit) for the
costs of facility improvement and equipment acquisition associated with
training programs designed to alleviate workforce shortages beginning
January 1, 2026. A qualified taxpayer in a qualified industry may earn a
tax credit equal to up to 50% of the costs incurred by the qualified
taxpayer to improve its facilities and acquire equipment. The tax credit is
refundable and may not be carried forward.
To claim the tax credit, a qualified taxpayer must first reserve the
tax credit by applying to be in the evaluation pool established by the
office. A selection committee will consider the merits of each application
to determine which taxpayers are qualified to reserve the tax credit. If a
taxpayer is qualified and approved, the taxpayer is required to incur
facility improvements and equipment acquisition costs to claim the tax
credit. If the applicant submits evidence that the costs were incurred
during the income tax year for which the applicant applied, and those
costs are certified by a certified public accountant, the applicant may be
awarded a tax credit. The aggregate amount of tax credits reserved in one
calendar year cannot exceed $15 million.
The executive director of the department of revenue may require
a person or organization not subject to tax or a person or organization
exempt from taxes to make and file a return containing information
prescribed by the executive director to claim the tax credit.

The bill requires the water quality control commission
(commission) in the department of public health and environment
(department) to promulgate rules by May 31, 2025, as necessary to
implement a state dredge and fill discharge authorization program
(program) and requires the division of administration (division) in the
department to administer and enforce authorizations for activities that will
result in the discharge of dredged or fill material into state waters. The
rules must focus on avoidance of, minimization of, and compensation for
the impacts of dredge and fill activity (activity), include application
requirements, and be at least as protective as the guidelines developed
pursuant to section 404 (b)(1) of the federal Clean Water Act.
The bill establishes duties for the division in administering the
program, as follows:
  • The division shall issue individual authorizations consistent
with the rules promulgated by the commission;
  • The division shall issue general authorizations for the
discharge of dredged or fill material into state waters from
certain categories of activities that have minimal effects on
state waters and the environment;
  • The division shall utilize the existing structure of
preconstruction notifications in the nationwide and regional
permits established by the United States Army Corps of
Engineers and issue general authorizations to be effective
for categories of activities that do not require
preconstruction notification; and
  • The division may include conditions in a notice of
authorization, on a case-by-case basis, to clarify the terms
and conditions of a general authorization or to ensure that
an activity will have only minimal individual and
cumulative adverse effects on state waters.
Compensatory mitigation is required in all individual
authorizations and in general authorizations where unavoidable adverse
impacts to wetlands will affect over one-tenth of an acre or, for streams,
where unavoidable adverse impacts greater than the threshold established
by the commission by rule will occur. Compensatory mitigation may be
accomplished through the purchase of mitigation bank credits, an in-lieu
fee program, or project-proponent-responsible mitigation.
Until the rules become effective:
  • The division's Clean Water Policy 17, Enforcement of
Unpermitted Discharges of Dredged and Fill Material into
State Waters, continues to be effective;
  • For projects that do not qualify for enforcement discretion
under the division's Clean Water Policy 17, the division
may issue temporary authorizations for the discharge of
dredged or fill material into state waters only under certain
conditions; and
  • Temporary authorizations must include conditions
necessary to protect the public health and the environment
and to meet the intent of the bill.
The division may issue a temporary authorization for a period not to
exceed 2 years.
The bill deems certain activities exempt and therefore does not
require a discharge authorization for, or otherwise require regulation of,
such activities. The bill also excludes certain types of waters from the
bill's regulatory requirements.
The bill clarifies that state waters includes wetlands.
In current law, with certain exceptions, an applicant for any water
diversion, delivery, or storage facility that requires an application for a
permit, license, or other approval from the United States must inform the
Colorado water conservation board, the parks and wildlife commission,
and the division of parks and wildlife of its application and submit a
mitigation proposal. The bill extends the same requirement to an applicant
for any such facility that requires an individual authorization from the
division.

The bill appropriates the following amounts for the 2024-25 state
fiscal year from the Colorado water conservation board (CWCB)
construction fund to the CWCB or the division of water resources in the
department of natural resources for the following projects:
  • Continuation of the satellite monitoring system, $380,000
(section 1 of the bill);
  • Continuation of the floodplain map modernization
program, $1,000,000 (section 2);
  • Continuation of the weather modification permitting
program, $500,000 (section 3);
  • Continuation of the Colorado Mesonet project, $200,000
(section 5);
  • Continuation of the water forecasting partnership project,
$2,000,000 (section 6);
  • Support of modeling and data analyses for the upper
Colorado river commission's development of operational
guidelines for Lake Powell and Lake Mead, $500,000
(section 7);
  • Support for the division of water resources' statewide
diversion telemetry project, $1,827,500 (section 8);
  • Support of a study update and scenario analyses for
groundwater resource goals for the southern high plains
designated groundwater basin, $250,000 (section 9); and
  • Support for projects that support drought planning and
mitigation, $4,000,000 (section 11).
Section 4 directs the state treasurer to transfer up to $2,000,000
from the CWCB construction fund to the CWCB litigation fund on July
1, 2024.
The CWCB is authorized to make loans from the severance tax
perpetual base fund or the CWCB construction fund:
  • In an amount up to $155,650,000 to the Windy Gap firming
project (section 12); and
  • In an amount up to $101,000,000 to the northern integrated
supply project water activity enterprise owned by the
northern Colorado water conservancy district to develop a
new regional water supply project (section 13).
Section 10 directs the state treasurer to transfer $2,000,000 on July
1, 2024, from the CWCB construction fund to the turf replacement fund
to finance the state turf replacement program.
Section 14 directs the state treasurer to transfer $20,000,000 on
July 1, 2024, from the severance tax perpetual base fund to the CWCB
construction fund for the purchase and sale agreement between the
Colorado river water conservation district and the public service company
of Colorado for the purchase of the water rights associated with the
Shoshone power plant.
Section 15 appropriates $23,300,000 from the water plan
implementation cash fund to the CWCB to fund grants that will help
implement the state water plan.
Sections 16 and 17 amend current law, under which the state
treasurer is directed to make 2 transfers of $2.5 million each from the
economic recovery and relief cash fund to the CWCB construction fund.
The CWCB is required to use the $2.5 million from one of the transfers
for the direct and indirect costs of providing assistance to political
subdivisions and other entities applying for federal Infrastructure
Investment and Jobs Act money and other federally available money
related to water funding opportunities (water funding purposes). The
CWCB is required to use the $2.5 million from the other transfer for
issuing grants to political subdivisions of the state or other entities for the
hiring of temporary employees, contractors, or both that will assist those
political subdivisions and other entities in applying for federal
Infrastructure Investment and Jobs Act money and other federally
available money related to natural resource management (natural resource
management purposes).
Sections 16 and 17 allow the CWCB, on or after July 1, 2024, to
expend money from either of the 2 transfers for either the water funding
purposes or the natural resource management purposes.

Under current law, if maintenance, repair, or construction activities
are occurring or will occur within 4 hours on a portion of a state highway,
the Colorado department of transportation (department) is permitted, but
not required, to designate the portion of the highway as a highway
maintenance, repair, or construction zone.
The bill:
  • Removes the 4-hour time period relating to maintenance,
repair, or construction activities that will occur on a portion
of a state highway; and
  • Requires the department to designate a portion of a state
highway on which construction activities are occurring as
a highway construction zone.

Water Resources and Agriculture Review Committee. On and
after January 1, 2025, the bill prohibits local governments and unit
owners' associations of common interest communities from allowing the
installation, planting, or placement of nonfunctional turf, artificial turf,
or invasive plant species on commercial, institutional, or industrial
property or a transportation corridor. The bill also prohibits the
department of personnel from allowing the installation, planting, or
placement of nonfunctional turf, artificial turf, or invasive plant species
as part of a project for the construction or renovation of a state facility,
which project commences on or after January 1, 2025.

Sales and Use Tax Simplification Task Force. The department
of revenue owns and maintains a GIS database that is provided to vendors
to determine the jurisdictions to which tax is owed and to calculate
appropriate sales and use tax rates for individual addresses. The bill
establishes that any vendor that relies on the information in the GIS
database to determine the local taxing jurisdictions to which tax is owed
is held harmless in an audit by a local taxing jurisdiction for an
underpayment of tax, charge, or fee liability that results solely from an
error or omission in the GIS database data.

Sales and Use Tax Simplification Task Force. Under current
law, the department of revenue (department) administers, collects, and
enforces the local sales or use tax that a statutory local government or a
special district imposes and, if requested, administers, collects, and
enforces any such tax that a home rule jurisdiction imposes. The statutes
that govern the administration, collection, and enforcement of these local
sales or use taxes are located in multiple titles of the Colorado Revised
Statutes. The bill revises, modernizes, and harmonizes the separate
statutes that govern the state administration of local sales or use tax by
creating new parts 2 and 3 in article 2 of title 29. In general, the bill
makes clear that the department collects, administers, and enforces a local
government sales or use tax in the same manner as it collects, administers,
and enforces the state sales tax.
The bill:
  • Requires a statutory local government, special district, or
requesting home rule jurisdiction that imposes a new sales
or use tax, makes a change to its existing sales or use tax,
or changes its geographical boundaries by ordinance,
resolution, or election to provide the department written
notice within specified deadlines and establishes the
applicability dates for such events;
  • Requires each statutory local government, special district,
and requesting home rule jurisdiction to designate one or
more liaisons to coordinate with the department regarding
the collection of its sales or use tax;
  • Establishes a dispute resolution process when the local
sales or use tax that is administered, collected, and
enforced by the department is paid erroneously to the state
or to the wrong statutory local government, special district,
or home rule jurisdiction;
  • Makes clear that a vendor who uses the department's
geographic information system (GIS) database to determine
the jurisdictions to which statutory local government,
special district, or requesting home rule jurisdiction tax is
owed is held harmless for any tax, charge, or fee liability
that would otherwise be due solely as a result of an error or
omission in the GIS database data;
  • Clarifies that a statutory local government, special district,
or requesting home rule jurisdiction may allow a retailer
that collects and remits its sales or use tax to retain a
percentage of the amount remitted to cover the vendors'
expenses in collecting and remitting the statutory local
government, special district, or requesting home rule
jurisdiction's sales or use tax, but specifies that the statutory
local government, special district, or requesting home rule
jurisdiction may not impose a limit on the amount retained;
  • Modifies the relief available under the provisions for local
dispute resolution for sales or use taxes asserted by the
local government to reflect the availability of the
department's GIS database for accurately sourcing sales;
and
  • Makes conforming amendments for the collection,
administration, enforcement, and distribution of statutory
local government, special district, and requesting home rule
jurisdiction sales or use taxes.

Water Resources and Agriculture Review Committee. Current
law allows the commissioner of agriculture to assess civil penalties for
violations of state laws related to the prevention of noxious weeds
(violations). The bill:
  • Clarifies that a board of county commissioners (board) may
allow for the assessment and collection of fines for
violations of local laws enacted to enforce the management
of noxious weeds in the county;
  • Creates a civil infraction for violations;
  • Creates a civil penalty for violations that is no less than
$500 and no more than $1,000;
  • Allows a county attorney to issue an injunction to prevent
an ongoing violation; and
  • Allows a board to appoint a district attorney to enforce
violations in the event that the county does not have a
county attorney or in any other circumstance that the board
deems appropriate.

Water Resources and Agriculture Review Committee. The bill
requires the division of administration (division) in the department of
public health and environment (department), in collaboration with the
university of Colorado's Mortenson center in global engineering and
resilience and the Colorado water institute located within Colorado state
university, to:
  • Conduct a feasibility study of the use of green
infrastructure, which refers to nature-based,
watershed-scale water quality management solutions that
are an alternative to traditional gray infrastructure, which
refers to centralized water treatment facilities, and the use
of green financing mechanisms for water quality
management;
  • Establish one or more pilot projects in the state to
demonstrate the use of green infrastructure, green financing
mechanisms, or both;
  • Adopt rules establishing a prepermit baseline date to assist
municipalities and other water providers to pursue
prepermit solutions for compliance with state and federal
water quality standards; and
  • Submit a report and present to the water resources and
agriculture review committee on the progress of the
feasibility study and any pilot projects and on any
legislative and administrative recommendations to promote
the use of green infrastructure and green financing
mechanisms for water quality management in the state.

Water Resources and Agriculture Review Committee. Under
current law, when certain conditions exist, a district court may establish
conservancy districts for the conservation, development, utilization, and
disposal of water for agricultural, municipal, and industrial uses. Section
1 of the bill allows conservancy districts to conserve, develop, utilize, or
dispose of water for commercial uses as well.
Section 2 authorizes the board of directors of a conservancy
district to:
  • Submit and participate in a plan for augmentation for the
benefit of water rights and wells within and outside of the
boundaries of the conservancy district;
  • Contract with water users within and outside of the
conservancy district for the provision of services;
  • Exercise certain powers concerning the management,
control, delivery, use, and distribution of water in
conjunction with a plan for augmentation;
  • In conjunction with sections 4 and 5, establish a water
activity enterprise, which is a government-run business, for
the purpose of pursuing or continuing water activities; and
  • Sell, lease, or otherwise dispose of the use of water or
capacity in works by term contracts or by contracts for the
perpetual use of the water or works to certain entities.
Section 3 authorizes a conservancy district to:
  • Enter into long-term contracts with public and private
entities for the accomplishment of functions of the
conservancy district; and
  • Avail itself of aid, assistance, and cooperation from the
federal government, the state government, and local
governments.
Sections 4 and 5 allow a conservancy district to establish a water
activity enterprise, which is a business that receives less than 10% of its
annual revenues in grants from all Colorado state and local governments
combined, is authorized to issue its own revenue bonds, and is excluded
from the provisions of the Taxpayer's Bill of Rights in the state
constitution.

Current law prohibits an individual who is under 18 years of age
from using a mobile electronic device when driving. The bill applies the
prohibition to an individual who is 18 years of age or older unless the
individual is using a hands-free accessory. The following uses are
exempted:
  • By an individual reporting an emergency to state or local
authorities;
  • By an employee or contractor of a utility when responding
to a utility emergency;
  • By a first responder; or
  • By an individual in a motor vehicle that is parked.
The penalties for a violation are:
  • For a first offense, $75 and 2 license suspension points;
  • For a second offense within 24 months, $150 and 3 license
suspension points; and
  • For a third or subsequent offense within 24 months, $250
and 4 license suspension points.
A violation will be dismissed if the individual has not previously
committed a violation, produces proof of purchase of a hands-free
accessory, and affirms, under penalty of perjury, that the defendant has
not previously claimed this option to dismiss.
Current law requires a peace officer who makes a traffic stop to
record the demographic information of the violator, whether a citation has
been issued, and the violation cited. The bill clarifies that the peace
officer must record whether the bill has been violated.
The executive director of the department of transportation, in
consultation with the chief of the Colorado state patrol, is required to
create a campaign raising public awareness of the requirements of the bill
and of the dangers of using mobile electronic devices when driving.

Current law prohibits the sale or distribution of class B firefighting
foam that contains perfluoroalkyl and polyfluoroalkyl chemicals (PFAS
chemicals). Section 1 of the bill, on and after January 1, 2025, repeals the
exemption from the prohibition for gasoline distribution facilities,
refineries, and chemical plants.
Current law also prohibits the sale or distribution of products in
certain product categories on and after certain dates if the products
contain intentionally added PFAS chemicals (product phaseout timeline).
Current law exempts from the definition of product drugs, medical
devices, biologics, or diagnostics (medical products) approved or
authorized by the federal food and drug administration or the federal
department of agriculture (applicable federal agencies), but not medical
products cleared by the applicable federal agencies. The bill changes
current law by:
  • Clarifying that medical products cleared by the applicable
federal agencies are also exempted from the definition of
product (section 4);
  • On and after January 1, 2025, prohibiting the sale or
distribution of certain outdoor apparel intended for extreme
or extended use in severe wet conditions (outdoor apparel
for severe wet conditions) that contains intentionally added
PFAS chemicals unless the product is accompanied by a
disclosure that states that the product contains PFAS
chemicals (disclosure requirement) (section 5);
  • On and after January 1, 2025, as part of the product
phaseout timeline, banning the sale or distribution of
cleaning products, cookware, dental floss, menstruation
products, ski wax, and textile articles that contain
intentionally added PFAS chemicals (section 5);
  • On and after January 1, 2028, repealing the disclosure
requirement and banning the sale or distribution of outdoor
apparel for severe wet conditions that contains intentionally
added PFAS chemicals (section 5);
  • On and after January 1, 2032, repealing the product
phaseout timeline (section 5) and prohibiting the sale or
distribution of any nonexempted product that contains
intentionally added PFAS chemicals (section 6); and
  • On and after July 1, 2024, prohibiting a person from
installing artificial turf that contains intentionally added
PFAS chemicals on any portion of property in the state
(section 6).

The bill requires any provision of any energy code adopted by a
county or municipality on or after January 1, 2026, to be cost effective.
Cost effective means, using the existing energy efficiency standards and
requirements as a base of comparison, that the economic benefits of the
proposed energy efficiency standards and requirements will exceed the
economic costs of those standards and requirements based upon an
incremental multi-year analysis that:
  • Considers the perspective of a typical first-time home
buyer;
  • Considers benefits and costs over a 10-year period;
  • Does not assume fuel price increases in excess of the
assumed general rate of inflation;
  • Ensures that the buyer of a home who would qualify to
purchase the home before the addition of the energy
efficiency standards will still qualify to purchase the same
home after the additional cost of energy saving
construction features; and
  • Ensures that the costs of principal, interest, taxes,
insurance, and utilities will not be greater after the
inclusion of the proposed cost of the additional energy
saving construction features required by the proposed
energy efficiency rules than under the provisions of the
existing energy efficiency rules.

Sections 1 and 2 of the bill create a high-emitter vehicle program
for owners of motor vehicles that are not in compliance with emission
standards and that have been issued a certification of emissions waiver
(qualified vehicle). If the owner of a qualified vehicle resides in a
nonattainment area for ozone and has unsuccessfully attempted to have
the motor vehicle repaired to cure the noncompliance, the owner is
eligible for a voucher of $850. The vouchers may be redeemed at
qualified repair facilities that will bring the vehicle into compliance. The
high-emitter vehicle program is funded by using up to 20% of the money
in the AIR account in the highway users tax fund.
The high-emitter vehicle program is administered by the
nonattainment area air pollution mitigation enterprise, in coordination
with the department of revenue, contractors that provide inspection
services, and the clean screen authority. The high-emitter vehicle program
repeals when Colorado meets federal ozone national ambient air quality
standards (attainment).
Section 3 requires the air quality control commission
(commission) to create, in coordination with the lead agency for air
quality planing for the Denver metropolitan area, a garden rebate program
to increase the use of small electric motors used for outdoor power
equipment. The program must:
  • Provide a point-of-purchase rebate of the lesser of $150 or
one-third of the price for each piece of outdoor power
equipment purchased by the end user in a nonattainment
area for ozone;
  • Establish a registration system for qualified retailers; and
  • Require the division to publicize the garden rebate
program.
The division of administration in the department of public health
and environment (division) administers the garden rebate program, and
the commission sets standards for qualified retailers to register for the
program. If the garden rebate program exceeds its appropriation, the
division may pause the program. The garden rebate program repeals
January 1, 2030. Section 4 repeals the current tax credit for buying lawn
and garden equipment with an electric motor.
In current law, the clean fleet enterprise (enterprise) incentivizes
and supports the use of electric motor vehicles for certain fleet uses,
including transportation network companies. Sections 5 and 6:
  • Expand the program to include light-duty trucks;
  • Authorize the clean fleet enterprise to provide grants of up
to 80% of a local government's cost of acquiring motor
vehicles that emit low levels of nitrogen oxides for the
local government to use in its motor vehicle fleet; and
  • Require the enterprise to prioritize making grants to local
governments.
The grant program authorization and prioritization repeal December 31,
2029.
Section 7 requires the division to regularly perform, in the
nonattainment area for ozone, photochemical modeling studies and data
analysis designed to determine ambient air ozone levels and the
effectiveness of policies for lowering ambient air ozone levels. The
division is required to publish the results to the division's website and
report the results to the commission and at its SMART Act hearing.
Section 7 is repealed when Colorado achieves attainment.

Current law allows the department of transportation (department)
to issue closures or require certain equipment on interstate 70 (I-70) from
September 1 through May 31 each year between milepost 133 in Dotsero
and milepost 259 in Morrison.
Section 1 of the bill changes the geographic location where the
department has authority to require certain equipment to interstate 25
(I-25) and any interstate, U.S. highway, and state highway west of I-25.
Section 2 allows the department to establish heightened speed
limit enforcement zones (zone) within public highways in Glenwood
Canyon on I-70 eastbound from milepost 116.0 to milepost 131.0 and
westbound from milepost 118.5 to milepost 131.0 where there are safety
concerns related to commercial motor vehicle drivers exceeding the
posted speed limits. If the department establishes a zone, the department
must erect signs identifying the zone and notifying commercial motor
vehicle drivers that increased fines are assessed for speeding in the zone.
Section 3 makes it a traffic offense for any commercial vehicle to
be driving in the farthest left lane on I-70 between milepost 116 in
Glenwood Springs and milepost 259 in Morrison during all conditions on
that highway except to safely pass a vehicle driving under the posted
speed limit.
Section 4 subjects a commercial motor vehicle driver who
commits a speeding violation in a zone to double fines and surcharges.
Section 5 ensures that a port of entry officer has all the powers of
a peace officer when enforcing highway closures and the state's winter
traction device law.
Section 6 requires the freight mobility and safety branch of the
department to study the feasibility of funding additional locations of
chain-up stations utilizing the money from the increased penalties in
zones within public highways in Glenwood Canyon.
Section 7 allows the study on feasibility of new chain-up stations
to also be funded by the fuels impact reduction grant program.

The bill requires the state apprenticeship agency in the department
of labor and employment, in coordination with the career and technical
education division of the Colorado community college system, to align
the high school career and technical education system and the registered
apprenticeship system for programs and occupations related to
infrastructure, advanced manufacturing, education, or health care. On or
before July 1, 2026, the bill requires both entities to expand the number
of aligned pathways, prioritizing programs and occupations identified as
top jobs by the annual Colorado talent pipeline report.

In the Construction Defect Action Reform Act (act), Colorado
law establishes procedures for bringing a lawsuit for a construction defect
(claim). Section 2 of the bill clarifies that a person that has had a claim
brought on the person's behalf is also considered a claimant, and
therefore, the act applies to the person for whom the claim is brought.
Sections 3 and 6 create a right for a construction professional to
remedy a claim made against the construction professional by doing
remedial work or hiring another construction professional to perform the
work. The following applies to the remedy:
  • The construction professional must notify the claimant and
diligently make sure the remedial work is performed; and
  • Upon completion, the claimant is deemed to have settled
and released the claim, and the claimant is limited to claims
regarding improper performance of the remedial work.
Currently, a claim may be held in abeyance if the parties have
agreed to mediation. Section 3 also adds other forms of alternative
dispute resolution for which the claim would be held in abeyance.
Alternative dispute resolution is binding. If a settlement offer of a
payment is made and accepted in a claim, the payment constitutes a
settlement of the claim and the cause of action is deemed to have been
released, and an offer of settlement is not admissible in any subsequent
action or legal proceeding unless the proceeding is to enforce the
settlement.
To bring a claim or related action, section 4 requires a unit owners'
association (association) to obtain the written consent of at least
two-thirds of the actual owners of the units in the common interest
community. The consent must contain the currently required notices, must
be signed by each consenting owner, and must have certain attestations.
Under the act, a claimant is barred from seeking damages for
failing to comply with building codes or industry standards unless the
failure results in:
  • Actual damage to real or personal property;
  • Actual loss of the use of real or personal property;
  • Bodily injury or wrongful death; or
  • A risk of bodily injury or death to, or a threat to the life,
health, or safety of, the occupants.
Section 5 requires the actual property damage to be the result of a
building code violation and requires the risk of injury or death or the
threat to life, health, or safety to be imminent and unreasonable.
Under current law, an association may institute, defend, or
intervene in litigation or administrative proceedings in its own name on
behalf of itself or 2 or more unit owners on matters affecting a common
interest community. For a construction defect matter to affect a common
interest community, section 7 requires that the matter concern real estate
that is owned by the association or by all members of the association.
Section 7 also establishes that, when an association makes a claim
or takes legal action on behalf of unit owners when the matter does not
concern real estate owned by the association:
  • The association and each claim are subject to each defense,
limitation, claim procedure, and alternative dispute
resolution procedure that each unit owner would be subject
to if the unit owner had brought the claim; and
  • The association has a fiduciary duty to act in the best
interest of each unit owner.

Section 1 of the bill adds disclaimers to the Construction Defect
Action Reform Act that:
  • Are not intended to impose an obligation upon construction
professionals to provide an express or implied warranty;
  • Apply to implied warranty claims; and
  • Do not amend or change the terms of or limitation upon an
express or implied warranty.
The bill states that a construction professional is not vicariously
liable for the acts or omissions of a licensed design professional for any
construction defects.
Under current law regarding common interest communities, a unit
owners' association (association) must follow a process to obtain the
approval of a majority of the unit owners before initiating a construction
defect action (action). The approval process:
  • Requires that a meeting be held to consider whether or not
to bring the action (meeting);
  • Requires the association to give the unit owners
information about the proposed action and certain notices
and disclosures before the meeting;
  • Allows the association to amend or supplement the
proposed action after the meeting; and
  • Allows the association to omit nonresponsive votes from
the total vote count, but allows construction professionals
to challenge whether the association made diligent efforts
to contact the nonresponsive unit owners.
In connection with this process, section 2:
  • Requires the association to give notice to unit owners and
reobtain unit owner approval to amend or supplement a
proposed action after the meeting;
  • Raises the number of unit owners who need to approve the
action from a majority to a two-thirds majority;
  • Requires a unit owner to sign the unit owner's vote;
  • Requires the association to give the construction
professionals a list of nonresponsive unit owners; and
  • When unit owners' nonresponsiveness is challenged in
court:
  • Requires the court to stay the action against the
construction professionals and requires the
notification and voting process to be performed
again unless the court holds that the association
diligently contacted the unit owners; and
  • Requires the association to disclose to the
construction professionals all information relevant
to the unit owners' nonresponsiveness within 21
days after the challenge has been filed.

Under current law, an entity that owns, operates, or has oversight
over a storm water detention and infiltration facility (facility) is not
allowed to divert, store, or otherwise use water detained in the facility.
For facilities that are also approved for use as a precipitation harvesting
facility, either through a substitute water supply plan or an augmentation
plan, the bill authorizes the use of water detained in the facility for
precipitation harvesting.

The bill creates a tax incentive program to be administered by the
department of agriculture and the department of revenue to encourage
local food and beverage retailers to purchase agricultural commodities
from local producers practicing regenerative agriculture. For income tax
years commencing on or after January 1, 2024, but before January 1,
2029, qualifying retailers that purchase produce and animal products from
qualifying local producers are allowed an income tax credit in an amount
equal to 25% of the total amount paid for all such purchases by the
qualifying retailer in the income tax year in accordance with the
requirements and limitations set forth in section 2 of the bill.
Section 3 makes a conforming amendment to allow the exchange
between the department of agriculture and the department of revenue of
otherwise confidential tax information pertinent to an income tax credit
claim allowed pursuant to section 2.

The bill specifies that a judgment for a debt for overpayment of
paid family and medical leave benefits is eligible to be assigned, released,
or commuted and is not exempt from claims of creditors or from levy,
execution, and attachment or other remedy or recovery or collection of a
debt. The bill adds family and medical leave benefits to the list of
exceptions for which workers' compensation benefits may be assigned,
levied, or attached.
The bill also allows the division of family and medical leave
insurance (division) in the department of labor and employment to obtain
reimbursement from a workers' compensation insurer if an employee
received both family and medical leave benefits and temporary indemnity
benefits for the same absence and allows the insurer to offset benefits in
the amount reimbursed. The division may access records regarding
compensability and benefit payments of workers' compensation claims for
the purpose of coordinating family and medical leave benefits.
The department of revenue may provide the division with tax
information and may enter into an agreement with the division providing
for payment of the costs related to supplying the information and
providing for periodic updating of the information supplied.

On or before December 31, 2028, the bill requires the air quality
control commission (AQCC) in the department of public health and
environment (department) to adopt by rule certain emission standards and
requirements for in-use, off-road, diesel-fueled fleets.
On or before December 31, 2025, the AQCC must adopt rules for
controlling emissions from facilities, buildings, structures, installations,
or real property that generates mobile source activity that results in
emissions of air pollutants (indirect source) within the 8-hour ozone
Denver metro/north front range nonattainment area (covered
nonattainment area). The rules must include emission reduction targets
for indirect sources to achieve and a process for the division of
administration (division) in the department to review alternative
approaches proposed by an owner or operator of an indirect source. The
commission may establish a fee for indirect sources within the covered
nonattainment area to cover the division's costs in implementing the rules.
The bill also defines ozone season as the period beginning May
1 and ending September 30 of each year (ozone season). Beginning in the
2025 ozone season, and in each ozone season thereafter, any oil and gas
preproduction activity within the covered nonattainment area must pause
for the duration of the ozone season.
On or before June 30, 2024, and on or before each June 30
thereafter, an oil and gas operator in the state is required to submit an oil
and natural gas annual emission inventory report (inventory report) to the
division that includes, for the previous calendar year, the emissions of
certain air pollutants from oil and gas operations under the control of the
oil and gas operator.
On or before October 1, 2024, and on or before each October 1
thereafter, the division, in coordination with the energy and carbon
management commission (ECMC), must prepare a report regarding the
inventory reports received by the division for the previous calendar year
and certain other information.
On or before November 30, 2024, and on or before each
November 30 thereafter, for the ozone season of the subsequent year, an
oil and gas operator that controls oil and gas operations in the covered
nonattainment area must submit a report to the division estimating
emissions of nitrogen oxides from the oil and gas operator's operations in
the covered nonattainment area (estimates).
For the 2025 ozone season, and for each ozone season thereafter,
the ECMC, in consultation with the division, must develop an ozone
season nitrogen oxides emission budget (budget) for the emissions of
nitrogen oxides by oil and gas operations in the covered nonattainment
area, which budget must set certain maximum average emission levels of
nitrogen oxides by oil and gas operations.
On or before February 1, 2025, and on or before each February 1
thereafter, the division must prepare a nitrogen oxides report regarding
the estimates received by the division for use by the ECMC in
determining if the total estimates received exceed the budget for the
ozone season of the current year.
Beginning in February 2025, and in each February thereafter, the
ECMC, in consultation with the division, must act to limit emissions of
nitrogen oxides from oil and gas operations in the covered nonattainment
area in a manner that prevents an exceedance of the current year's budget.
The bill also requires the department of transportation to establish
vehicle miles traveled reduction targets for the covered nonattainment
area and to develop policies and programs to assist applicable
metropolitan planning organizations in meeting the targets.

Capital Development Committee. Local government floodplain
management regulations for development in floodplain areas must equal
or exceed the federal emergency management agency's national flood
insurance program's (national flood insurance program) minimum design
and construction criteria and must comply with the Colorado water
conservation board's (CWCB) rules and regulations for regulatory
floodplains in Colorado. Not all local governments participate in the
national flood insurance program.
The bill requires the office of the state architect to develop a state
floodplain management program (program) by June 30, 2025, which will
ensure compliance with the minimum floodplain management criteria of
the national flood insurance program and with the CWCB's rules and
regulations for regulatory floodplains in Colorado. The program applies
to development on state-owned land in counties and municipalities that
do not participate in the national flood insurance program. At the
discretion of the office of the state architect, the program may also apply
to state-leased properties in counties and municipalities that do not
participate in the national flood insurance program.

Section 2 of the bill allows the owner of a decreed storage water
right to loan water to the Colorado water conservation board (board) for
a stream reach for which the board does not hold a decreed instream flow
water right.
Current law requires the board to establish an agricultural water
protection program for water divisions 1 and 2. Section 3 changes current
law by requiring the board to establish an agricultural water protection
program in each water division.
Current law allows periods of nonuse of a water right to be tolled
in certain circumstances for the purposes of determining whether a water
right is abandoned. Section 4 changes current law by allowing a water
right to be tolled for the duration that an electric utility that owns a water
right in water division 6 decreases use of, or does not use, the water right
if the decrease in use or nonuse occurs during the period beginning
January 1, 2020, and ending December 31, 2050, and if the water right is
owned by the electric utility since January 1, 2019.
Current law requires an owner of a conditional water right to
obtain a finding of reasonable diligence or the conditional water right is
considered abandoned. Section 5 allows the water judge, in considering
a finding of reasonable diligence for a conditional water right that is
owned by an electric utility in water division 6 since January 2019, to
consider the following as supporting evidence:
  • The conditional water right may be used to support a
specific project or potential future generation technologies
or concepts that have the potential to advance progress
toward Colorado's clean energy and greenhouse gas
emission reduction goals; and
  • The electric utility or another entity has made efforts to
investigate or research the viability of future generation
technologies that have the potential to advance progress
toward Colorado's clean energy and greenhouse gas
emission reduction goals.
In determining the amount of historical consumptive use for a
water right, a water judge is prohibited from considering certain specified
uses. Section 6 prohibits the water judge from considering the decrease
in use or nonuse of a water right owned by an electric utility in division
6 since January 1, 2019, which decrease in use or nonuse occurs during
the period beginning January 1, 2019, and ending December 31, 2050, in
determining the amount of historical consumptive use. If the water right
is leased by the electric utility to a third party, the water right is not
entitled to historical consumptive use protection for the period the water
right is subject to the lease.
Current law allows the board to approve certain grants related to
water conservation and requires the board to establish criteria to require
the grant applicant to provide matching funds of at least 25%. Section 7
allows the board to reduce or waive fund matching requirements in the
case of a grant to the Ute Mountain Ute Tribe or the Southern Ute Indian
Tribe.
1

If the state exceeds its constitutional fiscal year spending limit, it
is required by the Taxpayer's Bill of Rights (TABOR) to refund the
excess state revenues (TABOR refunds). There are currently 2 active
mechanisms for TABOR refunds, which occur in the following order of
priority:
  • First, a reimbursement paid to counties for allocation to
local governments to offset the reduction in property taxes
resulting from property tax exemptions for qualifying
seniors, veterans with disabilities, and spouses of veterans
who died in the line of duty or as a result of a
service-related injury or disease (homestead exemptions);
and
  • Last, a sales tax refund for individual taxpayers, the amount
of which is either an identical flat refund amount or based
on 6 tiers of income.
Another refund mechanism exists in current law but is not active. That
mechanism is a temporary reduction in the state individual income tax
rate from 4.63% to 4.5%. Because the current state individual income tax
rate is 4.4%, however, this temporary rate reduction refund mechanism
is not able to be triggered by any excess state revenues.
The bill affects the existing TABOR refund mechanisms and
creates a fourth TABOR refund mechanism; except that the homestead
exemptions are not affected.
Under the current sales tax refund mechanism, all qualified
individuals receive an identical refund amount if the identical refund
amount is less than or equal to $15 dollars, but if the identical refund
amount would be above $15 dollars, the excess state revenues are instead
refunded through a 6-tier refund mechanism based on the qualified
individual's adjusted gross income. The bill increases the identical refund
amount above which the 6-tier mechanism is triggered and ties this
identical refund threshold to internal revenue service calculations of sales
tax paid in the state. The 6-tiered income classifications of the sales tax
refund are not changed. The bill clarifies that if, by September 1 of any
year, the executive director of the department of revenue has not received
advice from the internal revenue service that an identical refund is
regarded as a refund of sales tax and not as an accession to wealth, no
identical refund is allowed and all excess state revenues are refunded
through the 6-tier mechanism. The sales tax refund mechanism is
addressed in sections 3 through 8 of the bill.
The temporary income tax rate reduction is reactivated for income
tax years 2025 through 2035. To refund excess state revenues from fiscal
year 2023-24, the income tax rate for income tax year 2024 is temporarily
reduced from 4.40% to 4.25%. After that year, if the amount of excess
state revenues exceeds the projected total amount of TABOR refunds
issued as reimbursement to counties for the homestead exemptions, then
the state individual income tax rate is temporarily reduced by the
following percentages according to the total amount of excess state
revenues remaining after the reimbursement is paid (remaining excess
state revenues):
  • If the remaining excess state revenues are above $300
million but less than or equal to $500 million, the
individual income tax rate is temporarily reduced by
0.04%;
  • If the remaining excess state revenues are above $500
million but less than or equal to $600 million, the
individual income tax rate is temporarily reduced by
0.07%;
  • If the remaining excess state revenues are above $600
million but less than or equal to $700 million, the
individual income tax rate is temporarily reduced by
0.09%;
  • If the remaining excess state revenues are above $700
million but less than or equal to $800 million, the
individual income tax rate is temporarily reduced by
0.11%;
  • If the remaining excess state revenues are above $800
million but less than or equal to $1 billion, the individual
income tax rate is temporarily reduced by 0.12%;
  • If the remaining excess state revenues are above $1 billion
but less than or equal to $1.5 billion, the individual income
tax rate is temporarily reduced by 0.13%; and
  • If the remaining excess state revenues are above $1.5
billion, the individual income tax rate is temporarily
reduced by 0.15%.
The individual income tax rate reduction refund mechanism is set to
repeal on July 1, 2035. The income tax rate reduction refund mechanism
is addressed in sections 1 and 2.
The bill also establishes a fourth TABOR refund mechanism for
remaining excess state revenues for fiscal years starting on July 1, 2024,
but before July 1, 2034. Under this mechanism, if the amount of
remaining excess state revenues is equal to or greater than $1.5 billion
and exceeds the projected total amount of TABOR refunds issued as
reimbursement to counties for the homestead exemptions and through the
temporary income tax rate reduction, then the state sales and use tax rates
are temporarily reduced by 0.13%. The state sales and use tax rate
reduction refund mechanism is set to repeal on July 1, 2035. The sales
and use tax rate reduction refund mechanism is addressed in sections 9
through 15.
Whether the TABOR refund mechanisms are triggered and, if so,
how many of the mechanisms are triggered depends on the amount of
remaining excess state revenues as follows:
  • If remaining excess state revenues are less than or equal to
$300 million, TABOR refunds are distributed only through
the tiered or flat sales tax refund mechanism;
  • If remaining excess state revenues are greater than $300
million but less than or equal to $1.5 billion, TABOR
refunds are distributed first through the income tax rate
reduction and then through the tiered or flat sales tax
refund mechanism; and
  • If remaining excess state revenues are greater than $1.5
billion, TABOR refunds are distributed first through the
income tax rate reduction, next through the sales and use
tax rate reduction, and finally through the tiered or flat
sales tax refund mechanism.
If there are not sufficient excess state revenues to pay the full amount of
an income tax rate reduction refund mechanism or the sales and use tax
rate reduction TABOR refund mechanism, then the affected refund
mechanism is not triggered.
The bill also repeals statutory sections related to TABOR refund
mechanisms that are no longer applicable, including the 4-tier sales tax
refund mechanism to refund excess revenues from fiscal year 1997-98,
and makes conforming amendments.

Section 2 of the bill requires the division of administration
(division) in the department of public health and environment
(department) to propose rules to the air quality control commission
(commission) to reduce certain emissions of oxides of nitrogen (NOx)
generated by upstream oil and gas operations in certain areas of the state
by 50% by 2030 relative to 2017 NOx emission levels.
Section 3 requires the division to prepare an annual air quality
enforcement benchmark report to summarize the division's statewide
enforcement actions, including civil penalties assessed.
Under current law, the division or commission, in an enforcement
action, cannot obtain a temporary restraining order or preliminary
injunction if there is probable cause that the temporary restraining order
or preliminary injunction would cause serious harm to the person affected
by the temporary restraining order or preliminary injunction or another
person or if the source to which the enforcement action pertains has
obtained a renewable operating permit and continues operations in
compliance with that permit. Section 4 repeals those limitations on
temporary restraining orders and preliminary injunctions. Section 4 also
authorizes a district attorney or the attorney general to seek injunctive
relief to reduce the potential for a recurrence of a violation.
Sections 5 and 6 clarify that the division has authority to impose
civil penalties for violations of requirements related to toxic air
contaminants, fenceline and community-based monitoring, and, if enacted
in House Bill 24-1338, petroleum refinery emissions monitoring.
Section 8 authorizes the director of the energy and carbon
management commission (ECMC) to hire at least 2 community liaisons
to serve as dedicated resources for disproportionately impacted
communities, and section 12 authorizes funding of the community liaison
positions from the energy and carbon management cash fund.
Under current law, an oil and gas operator (operator) is required
to obtain a permit from the ECMC to commence oil and gas drilling
operations. Section 9 requires the operator to also obtain from the ECMC
a license to conduct oil and gas operations. Section 9 also requires
operators to take actions in accordance with ECMC rules to reduce
certain emissions of NOx generated from oil and gas production and
preproduction operations. The ECMC is also required, in consultation
with the department, to adopt rules to require enhanced systems and
practices to avoid, minimize, and mitigate emissions of ozone precursors
from oil and gas operations at newly permitted oil and gas locations in
certain parts of the state.
Section 10 limits a court's authority to postpone the effective date
of an ECMC order suspending or revoking an operator's license to
conduct oil and gas operations or a certificate of clearance, requiring the
court to first consider various factors, including whether the moving party
would face real, immediate, and irreparable injury if the effective date is
not postponed and the effect that such postponement would have on the
public interest.
Section 11 expands the ECMC's enforcement authority to include
revoking an operator's license to conduct oil and gas operations and
expands the types of violations that are subject to suspension of all of the
operator's permits and certificates of clearance and the operator's license
to conduct oil and gas operations to include violations resulting in a
penalty of $1,000,000 or more, violations that cause a major adverse
impact, as defined by the ECMC by rule, and violations that cause death
or serious bodily injury.
Section 13 expands the scope of the orphaned wells mitigation
enterprise to help finance the plugging, reclamation, and remediation of
marginal wells that are at the highest risk of becoming orphaned.

The bill requires the clean transit enterprise (enterprise) to impose
a production fee for clean transit (production fee for clean transit) to be
paid quarterly by every producer of oil and gas in the state (producer).
The production fee for clean transit applies to all oil and gas produced by
the producer in the state on and after July 1, 2025.
No later than one week after October 1, 2025, and no later than
one week after the first day of each calendar quarter thereafter, the energy
and carbon management commission (commission) must calculate the
average Henry Hub natural gas spot price reported by the United States
energy information administration (average gas spot price) and average
west Texas intermediate spot price reported by the United States energy
information administration (average oil spot price) for the previous
quarter and publish the average gas spot price and average oil spot price
on the commission's website.
No later than one month after the commission publishes the
average gas spot price and average oil spot price on the commission's
website, the enterprise must set the production fee amounts for the
previous calendar quarter, which are determined by the enterprise based
on the average gas spot price and average oil spot price calculated by the
commission; notify the executive director of the department of revenue
(executive director) of the production fee amounts set; and publish the
production fee amounts on the enterprise's website. Prior to adopting the
production fee amounts, the enterprise must consult with the commission
on the production fee amounts.
On or before the last day of the second month following the
previous calendar quarter, every producer must file a return and pay the
production fee for clean transit for the previous calendar quarter to the
department of revenue in accordance with applicable department of
revenue procedures. The state treasurer must first credit the costs to the
department of revenue for administering the production fees for clean
transit and then credit the remaining production fees for clean transit in
the following manner:
  • 70% to the local transit operations cash fund to be used for
expanding local transit service and prioritizing transit
improvements in certain communities;
  • 10% to the local transit grant program cash fund to be used
for providing competitive grants to certain eligible entities
for expenses associated with providing public
transportation; and
  • 20% to the rail funding program cash fund to be used for
passenger rail projects and service.
No later than March 1, 2030, and every fifth March 1 thereafter,
the enterprise must complete an analysis of the production fee amounts
and post the analysis on the enterprise's website.
The bill also requires the regional transportation district to
prioritize completion of the northwest rail line to Longmont and the north
lines of the transportation expansion plan adopted by the regional
transportation board (plan). On or before July 1, 2025, the regional
transportation district is also required to submit a report to the governor
and the general assembly that demonstrates how the regional
transportation district will fulfill certain commitments made in the plan.
The bill also requires the division of parks and wildlife (division)
to impose a production fee for wildlife and land remediation (production
fee for wildlife and land remediation) to be paid quarterly by every
producer of oil and gas in the state (producer). The production fee for
wildlife and land remediation applies to all oil and gas produced by the
producer in the state on and after July 1, 2025.
No later than one month after the commission publishes the
average gas spot price and average oil spot price on the commission's
website, the division must set the production fee amounts for the previous
calendar quarter, which are determined by the division based on the
average gas spot price and average oil spot price calculated by the
commission; notify the executive director of the production fee amounts
set; and publish the production fee amounts on the division's website.
Prior to adopting the production fee amounts, the division must consult
with the commission on the production fee amounts.
On or before the last day of the second month following the
previous calendar quarter, every producer must file a return and pay the
production fee for wildlife and land remediation for the previous calendar
quarter to the department of revenue in accordance with applicable
department of revenue administrative procedures. The state treasurer must
credit the production fees for wildlife and land remediation in the
following manner:
  • First, the costs to the department of revenue for
administering the production fees for wildlife and land
remediation are credited to the department of revenue; and
  • Second, the remaining amount of production fees for
wildlife and land remediation are credited to the climate
resilient wildlife and land cash fund to be used for certain
wildlife and land remediation purposes.
No later than March 1, 2030, and every fifth March 1 thereafter,
the division must complete an analysis of the production fee amounts and
post the analysis on the division's website.
Along with publishing the average gas spot price and average oil
spot price on the commission's website, the commission is required to
routinely provide written guidance to the enterprise and the division on
factors relevant to the production fee amounts for the production fee for
clean transit and the production fee for wildlife and land remediation.
The bill also establishes:
  • Certain department of revenue administrative procedures,
including certain registration and return filing
requirements, for the collection of the production fees for
clean transit and the production fees for wildlife and land
remediation;
  • A petty offense and civil penalty for a producer's failure to
register with the department of revenue; and
  • The accrual of interest and penalties for a producer's failure
to pay or correctly account for any production fees for
wildlife and land remediation or production fees for clean
transit or to keep complete and accurate records.
If a constitutional amendment is adopted at the 2024 statewide
general election that requires voter approval of fees assessed for the
purpose of funding mass transportation, the bill creates certain definitions
that apply to the constitutional amendment.

Property tax revenue limit. Beginning with the 2025 property tax
year, section 2 of the bill establishes a limit on specified property tax
revenue for local governments (limit). This limit does not apply to local
governments that are home rule local governments, school districts, have
not received voter approval to exceed the statutory 5.5% property tax
revenue limitation, or have not received voter approval to collect, retain,
and spend revenue without regard to the limitations in section 20 of
article X of the state constitution. The limit is equal to the local
governmental entity's base year qualified property tax revenue increased
by 5.5% for each year since the base year including the relevant property
tax year. A local government may seek voter approval to waive the limit.
A local governmental entity's base year is:
  • For a local governmental entity that had qualified property
tax revenue for the 2023 property tax year, the local
governmental entity's qualified property tax revenue for the
2023 property tax year, plus any money the local
governmental entity received from the state to compensate
the local governmental entity for reduced property tax
revenue in the 2023 property tax year;
  • For a local governmental entity that did not have qualified
property tax revenue for the 2023 property tax year, the
local governmental entity's qualified property tax revenue
for the first year that the local governmental entity has
property tax revenue; and
  • The local governmental entity's qualified property tax
revenue for the most recent property tax year for which the
local governmental entity's voters approved temporarily
waiving the limit.
If a local government property tax revenue would otherwise exceed the
limit, a local government shall establish a temporary property tax credit
equal to the number of mills necessary to prevent the local government's
property tax revenue from exceeding the limit.
Commercial property valuation reductions. Under current law,
for commercial property, the valuation for assessment (valuation) is 29%
of the actual value of the property. Section 3 reduces the valuation of
commercial property as follows:
  • For property tax year 2024, the valuation is 27.9% of the
amount equal to the actual value of the property minus the
lesser of $30,000 or the amount that causes the valuation
for assessment of the property to be $1,000 (alternate
amount);
  • For property tax year 2025, the valuation is 27% of the
actual value of the property;
  • For property tax year 2026, the valuation is 26% of the
actual value of the property; and
  • For property tax years commencing on or after January 1,
2027, the valuation is 25% of the actual value of the
property.
Residential real property valuation reductions. For the 2024
property tax year, section 4 makes 2 reductions to residential real
property valuation by continuing the 2023 property tax year reductions to
residential real property valuation:
  • For multi-family residential real property, the bill reduces
the valuation from 6.8% of the actual value of the property
to 6.7% of the amount equal to the actual value of the
property minus the lesser of $55,000 or the alternate
amount; and
  • For all other residential real property, the bill reduces the
valuation from an estimated 7.06% of the actual value of
the property to 6.7% of the amount equal to the actual
value of the property minus the lesser of $55,000 or the
alternate amount.
Section 5 makes a conforming amendment to the reduction for all
other residential real property for the 2024 property tax year, as described
in section 4.
For the 2025 property tax year, section 4 modifies residential real
property valuation so that the valuation for all residential real property is:
  • For the purpose of a levy imposed by a school district,
7.15% of the actual value of the property; and
  • For the purpose of a levy imposed by a local governmental
entity that is not a school district, 6.7% of the actual value
of the property.
For the 2026 property tax year and all future property tax years,
property tax year and all future property tax years, section 4 also reduces
the valuation for all residential real property from 7.15% of the actual
value of the property. For all residential real property, the valuation is:
  • For the purpose of a levy imposed by a school district, the
lesser of 7.15% of the actual value of the property or a
percentage of the actual value of the property determined
by the property tax administrator pursuant to section 6; and
  • For the purpose of a levy imposed by a local governmental
entity that is not a school district, 6.95% of the amount
equal to the actual value of the property minus the lesser of
10% of the actual value of the property or $70,000 as
adjusted for inflation in the first year of each subsequent
reassessment cycle.
Adjustable residential real property valuation. Section 6
requires legislative council staff to notify the property tax administrator
of the first year after 2026 in which the local share of total program is
equal to or greater than 60% of the total program determined pursuant to
the Public School Finance Act (act). For every property tax year after
that year, the valuation for assessment for all residential real property, for
the purpose of a levy imposed by a school district, is equal to the lesser
of:
  • 7.15% of the actual value of the property; or
  • The percentage of the actual value of the property
necessary for the local share of total program to equal 60%
of the total program determined pursuant to the act, based
on the best available information when the property tax
administrator determines the percentage of actual value.
Reimbursement of local governments. The state reimbursed
local governmental entities for property tax revenue lost as a result of the
reductions in valuation enacted in Senate Bill 22-238 and Senate Bill
23B-001. Section 7 establishes a reimbursement mechanism for certain
local governmental entities other than school districts to account for
property tax revenue lost as a result of the reductions in valuation in the
bill for the 2024 property tax year. The reimbursement mechanism
requires the state to reimburse local governments in an amount equal to
the decrease, if any, in assessed value between the 2022 and 2024
property tax years multiplied by the local governments' mill levy rate
from the 2022 property tax year. Section 7 creates a fund out of which the
state makes the reimbursements and requires the state treasurer to transfer
to the fund an amount equal to one percent of the amount appropriated for
expenditure from the general fund for state fiscal year 2024-25. Section
1 makes a corresponding reduction to the amount of the unrestricted
general fund year-end balance that must be retained as a reserve for state
fiscal year 2024-25.
Property tax deferral program. The existing property tax
deferral program allows any person to defer the payment of the portion
of real property taxes on the person's homestead that exceeds the
tax-growth cap, which is an amount equal to the average of the person's
real property taxes paid for the preceding 2 property tax years for the
same homestead, increased by 4%. Beginning with the 2025 property tax
year, section 8 removes the 4% tax-growth cap. Accordingly, beginning
with the 2025 property tax year, a person may defer the payment of the
portion of real property taxes on the person's homestead that exceeds the
average of the person's real property taxes paid for the preceding 2
property tax years for the same homestead.