Colorado taxpayers can claim a net operating loss deduction on their Colorado tax return. Unless statute otherwise provides, the state deduction is currently allowed in the same manner that a similar deduction is allowed under the internal revenue code to determine federal taxable income.

Under current law, corporate taxpayers in Colorado are allowed to carry forward their net operating loss deduction for the same number of years as allowed for a federal net operating loss. For many years, taxpayers were limited to a 20-year carryforward period for both state and federal taxes. The federal "Tax Cuts and Jobs Act" (TCJA), enacted in 2017, allowed federal taxpayers unlimited years to carry forward net operating losses. Because Colorado's statute specifies that net operating losses may be carried forward "for the same number of years as allowed for a federal net operating loss", the TCJA's change resulted in the same change to Colorado's law. The act partially decouples the corporate net operating loss deduction from the federal net operating loss deduction by returning the state's carryforward period to 20 years for net operating losses generated in income tax years commencing on or after January 1, 2021.

The act also repeals a state provision that was effective only for financial institutions, so that, for purposes of the period of years a loss can be carried forward, financial institutions will now be treated the same as any other taxpayer.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

In a construction contract of at least $150,000, the bill requires:

• A property owner to make partial payments to the contractor of any amount due under the contract at the end of each calendar month or as soon as practicable after the end of the month;
• A property owner to pay the contractor at least 95% of the value of satisfactorily completed work;
• A property owner to pay the withheld percentage within 60 days after the contract is completed satisfactorily;
• A contractor to pay a subcontractor for work performed under a subcontract within 30 calendar days after receiving payment for the work, not including a withheld percentage not to exceed 5%;
• A subcontractor to pay any supplier, subcontractor, or laborer who provided goods, materials, labor, or equipment to the subcontractor within 30 calendar days after receiving payment under the subcontract; and
• A subcontractor to submit to the contractor a list of the suppliers, sub-subcontractors, and laborers who provided goods, materials, labor, or equipment to the subcontractor for the work.

The bill does not apply to contracts with public entities or to a contract concerning one multi-family dwelling of no more than 4 units or one single-family dwelling. A person who fails to make a required payment must pay 1.5% interest per month until the debt is fully paid. In a lawsuit to enforce the bill, the prevailing party is awarded attorney fees and costs.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act modifies the authority and duties of the county treasurer (treasurer) of each county.

Treasurer's fees: The treasurer is required to charge and receive fees on all money received for town and city taxes. Current law also specifies that the fee for the collection of specific ownership taxes shall not be charged by the treasurer, as the fee is charged when the specific ownership tax is collected by the authorized agent. Section 1 of the act clarifies that the requirement to charge fees does not apply to the collection of specific ownership taxes.

In addition, section 1 makes the fees that the treasurer is required to charge for research consistent with the fees charged pursuant to the "Colorado Open Records Act", and sections 1 and 14 make the fee charged for issuing an authentication of paid ad valorem taxes and a transportable manufactured home permit discretionary.

Deputy treasurer: Current law authorizes a treasurer to appoint a deputy treasurer as necessary. Section 2 authorizes a treasurer to appoint a chief deputy and specifies that the chief deputy treasurer performs the duties of the treasurer if the treasurer is unable to perform such duties or if there is a vacancy in the treasurer's office.

Receipts: Each treasurer is required to issue a receipt upon payment of any money to him or her. Sections 3 and 11 specify that if a person who has paid taxes wants a receipt for payment of taxes, the person shall request a receipt and the treasurer is required to issue such receipt upon request.

Keeping a cash book: Current law requires each treasurer to keep a cash book with a record of every financial transaction in which the treasurer is involved. Section 4 repeals this requirement, as it is redundant to another statutory provision that requires each treasurer to keep a just and true account of the receipt and expenditure of all money that comes in or goes out of the treasurer's office.

Definition of treasurer: For county purposes, "treasurer" is defined as the elected treasurer of a county or his or her appointed successor. However, the Weld county treasurer is appointed pursuant to the county's charter rather than elected. Section 5 modifies the definition of treasurer to include the treasurer or equivalent officer, as provided in the county's charter, for any home rule county.

Conveyance of property: Current law specifies when the grantee or grantor of a conveyance of property will pay the taxes levied on the property if the conveyance does not include an express agreement regarding which party will pay the taxes due. Section 6 clarifies that this provision applies only when the property conveyed is not personal property, which is addressed in another provision of law. In addition, section 9 repeals obsolete language that required the treasurer to waive personal property tax obligations resulting from any conveyance, relocation, or change in tax status of the property that were not in the process of collection as of a certain date.

Notice of property tax exemption: By specified dates each year, each county assessor and treasurer is required to mail certain mailings or notices to each residential real property address in the county. Section 7 specifies that if the county assessor or treasurer has reasonable certainty that such a notice will not be delivered to a residential real property address by the United States postal service, the county assessor and treasurer are not required to send the notice to that address.

Declarations: Current law allows the treasurer to assess and tax any taxable property located in the treasurer's county if the property was omitted from the county assessor's tax list and warrant. Current law also requires public utilities in the state and the operators or owners of oil and gas leaseholds in the state to file with the property tax administrator or the county assessor, respectively, certain statements regarding their property. The statements are confidential and are currently not available to the treasurers. The treasurer, however, may need access to these statements if property owned by the public utility or the oil and gas leaseholds are omitted from the tax list and warrant. Sections 8 and 10 specify that such statements filed with the property tax administrator and the county assessor are available to the treasurer.

Notice of school district mill levy: Current law requires each person whose name appears on the tax list and warrant to be informed in writing of specified information regarding the school district general fund mill levy. Section 12 modifies this provision to require the school district mill levy information be included on every tax notice.

Estimated payment of tax: Current statute does not authorize a treasurer to accept an early payment of tax. Section 13 allows a treasurer to accept an estimated prepayment of property taxes due for the current tax year prior to the treasurer's receipt of the tax warrant. Section 13 also gives the treasurer broad authority to establish the conditions and terms under which estimated prepayments will be accepted.

Tax liens on mobile homes: Current law specifies that a mobile home that is sold may be redeemed by the owner if certain criteria are satisfied. Section 15 modifies this provision to also allow the mobile home to be redeemed if it is stricken off to the county.

When a mobile home has been purchased by the county at a tax sale and the assessor has determined that the actual value of the mobile home is less than $1,000, current law requires the treasurer to declare the mobile home condemned and to dispose of the mobile home at the end of the redemption period. Section 15 authorizes, rather than requires, the treasurer to condemn and dispose of the mobile home at the end of the redemption period.

Personal property tax moving from county: Pursuant to current law, if the treasurer has reason to believe that personal property will be removed from the state, the treasurer may proceed with collections. Current law also states that if the county assessor reports that the property is moving out of the county, the treasurer is required to proceed with the collections process. Section 16 makes the 2 provisions consistent by referencing property moving out of the county in both instances and by allowing the treasurer to determine whether to proceed with collections in both instances.

Abatement of taxes: Current law specifies that for abatements or refunds of taxes made pursuant to a petition for abatement or refund, interest accrues from the date a complete abatement petition is filed. Section 17 requires that beginning January 1, 2020, interest accrues from the date an abatement petition is filed or the date payment of taxes was received by the treasurer, whichever is later.

Certification of taxes due: Upon request, a treasurer is required to certify the amount of taxes due as shown in the records of the treasurer's office or the records of the department of revenue. Current law specifies that a certificate signed by the treasurer showing payment of all taxes due is conclusive evidence that the taxes have been paid, without distinguishing between taxes owed to the treasurer and taxes owed to the department of revenue. Section 18 specifies that a certificate signed by the treasurer is conclusive evidence that only the taxes owed to the county have been paid.

County held liens: Current law requires the treasurer, at least annually, to prepare and present to the board of county commissioners a list of all tax liens on all real property struck off to the county and all certificates of sale relating to the property if the certificates have been held by the county for 30 years or more without obtaining a deed or being otherwise disposed of. Section 19 changes this requirement to apply to certificates held by the county for 3 years to allow the board of county commissioners to take certain actions regarding the property at an earlier date.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill prohibits an employer from terminating an employee for the employee's lawful off-duty activities that are lawful under state law even if those activities are not lawful under federal law.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill:

• Clarifies when payments for benefits and penalties payable to an injured worker are deemed paid ( section 1 );
• Adds guardian and conservator services to the list of medical aid that an employer is required to furnish to an employee who is incapacitated as a result of a work-related injury or occupational disease ( section 2 );
• Requires a claimant for mileage reimbursement for travel related to obtaining compensable medical care to submit a request to the employer or insurer within 120 days after the expense is incurred and requires the employer or insurer to pay or dispute mileage within 30 days of submittal and to include in the brochure of claimants' rights an explanation of rights to mileage reimbursement and the deadline for filing a request ( sections 2 and 7 );
• Clarifies that offsets to disability benefits granted by the federal "Old-Age, Survivors, and Disability Insurance Amendments of 1965" only apply if the payments were not already being received by the employee at the time of the work-related injury ( section 3 );
• Prohibits the reduction of an employee's temporary total disability, temporary partial disability, or medical benefits based on apportionment under any circumstances; limits apportionment of permanent impairment to specific situations; and declares that the employer or insurer bears the burden of proof, by a preponderance of evidence, at a hearing regarding apportionment of permanent impairment or permanent total disability benefits ( section 4 );
• Adds the conditions that, in order for an employer or insurer to request the selection of an independent medical examiner when an authorized treating physician has not determined that the employee has reached maximum medical improvement (MMI), an examining physician must serve a written report to the authorized treating physician specifying that the examining physician has determined that the employee has reached MMI; the authorized treating physician must examine the employee at least 20 months after the date of the injury and determine that the employee has reached MMI; the authorized treating physician must be served with a written report indicating MMI; and the authorized treating physician has responded that the employee has not reached MMI or has failed to respond within 15 days after service of the report ( section 5 );
• Changes the whole person impairment rating applicable to an injured worker from 25% to 19% for purposes of determining the maximum amount of combined temporary disability and permanent partial disability payments an injured worker may receive ( section 6 );
• Prohibits an employer or insurer from withdrawing an admission of liability 2 years after the date the admission of liability on the issue of compensability was filed, except in cases of fraud ( section 7 );
• Prohibits the director of the division of workers' compensation or an administrative law judge from determining issues of compensability or liability unless specific benefits or penalties are awarded or denied at the same time ( section 8 );
• Clarifies the scope of authority of prehearing administrative law judges ( section 9 );
• Increases the threshold amount that an injured worker must earn in order for permanent total disability payments to cease and allows for annual adjustment of the threshold amount starting in 2021 ( section 11 ); and
• Clarifies the orders that are subject to review or appeal ( sections 10 and 12 ).
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

Preexisting law requires a home builder to offer to a buyer of a new home one of the following:

• A solar panel system or a solar thermal system;
• To prewire or preplumb the home for these systems; or
• A chase or conduit to wire or plumb the home for these systems in the future.

The act requires the home builder to offer each of these options to the buyer and deletes these requirements for manufactured homes.

The act also requires a home builder to offer the following options to a buyer of a newly constructed residence, which is defined to mean a traditional detached, single-family home:

• An electric vehicle charging system; upgrades of wiring to accommodate future installation of an electric vehicle charging system; or a 208- to 240-volt alternating current plug-in located in a place accessible to a motor vehicle parking area;
• Efficient electric heating and water heating options; and
• Pricing, energy efficiency, and utility bill information for each option available from the builder.

The Colorado energy office must develop basic consumer education about leased solar installation and purchased solar installation in consultation with industries that offer these options to consumers.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill prohibits the state and any city, county, city and county, municipality, or other political subdivision (government entity) from restricting any person from:

• Conducting basic life functions in a public space unless the government entity can offer alternative adequate shelter to the person and the person denies the alternative adequate shelter; and
• Occupying a motor vehicle, provided that the motor vehicle is legally parked on public property or parked on private property with the permission of the property owner.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill phases out sub-minimum wage employment for employers that hold a special certificate from the United States department of labor that authorizes employers to pay employees whose earning capacity is impaired by age, physical or mental deficiency, or injury less than the minimum wage. The bill requires each employer that holds a special certificate to submit a transition plan to the Colorado department of labor and employment detailing how the employer plans to phase out sub-minimum wage employment.

The bill requires the employment first advisory partnership in the department of labor and employment to develop actionable recommendations to address structural and fiscal barriers to phase out sub-minimum wage employment and successfully implement competitive integrated employment and report the recommendations to the general assembly.

The bill requires the department of health care policy and financing to grant money to private employers, not to exceed $25,000 per employer, to provide assistance in developing and implementing a transition plan to phase out sub-minimum wage employment. The bill requires the department of health care policy and financing to add employment-related services for individuals with intellectual and developmental disabilities.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill allows a person who has a right, privilege, or immunity secured by the Colorado constitution that is infringed upon to bring a civil action for the violation. The attorney general can also bring an action under the same circumstances. A plaintiff who prevails in the lawsuit is entitled to reasonable attorney fees, and a defendant in an individual suit is entitled to reasonable attorney fees for defending any frivolous claims. Qualified immunity and a defendant's good faith but erroneous belief in the lawfulness of his or her conduct are not defenses to the civil action. The civil action has a two-year statute of limitations. The bill requires a public entity to indemnify its public employees in a claim unless the employee is convicted of a crime related to the claim.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill repeals an existing income tax credit available to taxpayers who make contributions to enterprise zone administrators to promote temporary, emergency, or transitional housing programs for the homeless and replaces that income tax credit with one that is available in the entire state that is modeled after the enterprise zone credit that is being repealed. Instead of having the enterprise zone administrators and the office of economic development manage the credit, the bill places that responsibility on the division of housing in the department of local affairs. The amount of the income tax credit remains the same for each contribution, except the new credit is capped at $750,000 in contributions to each project that the division approves and the new credit's availability is limited to 5 years.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

A recent Colorado supreme court case held that in a civil action when an employer admits liability for the tortious actions of its employee, the plaintiff cannot assert additional claims against the employer arising out of the same incident. The bill allows a plaintiff to bring such claims against an employer.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

Beginning January 1, 2022, the bill requires a health insurance carrier (carrier) that offers an individual health benefit plan in this state to offer a Colorado option plan in the Colorado counties where the carrier offers the individual health benefit plan. The commissioner of insurance (commissioner) is required to develop and implement a Colorado option plan that must:

• Be offered to Colorado residents who purchase health insurance in the individual market;
• Implement a standardized plan that:
• Allows consumers to easily compare health benefit plans; and
• Provides first-dollar, predeductible coverage for certain services;
• Include the essential health benefits package;
• Provide different, specific levels of coverage;
• Include a hospital reimbursement rate formula;
• Require hospital participation;
• Require a minimum medical loss ratio of 85%; and
• Require carriers and pharmacy benefit management firms to pass rebate savings through to consumers and document the savings and pass-through in a form and manner determined by the commissioner.

The Colorado option advisory board (board) is created to advise and make recommendations to the commissioner on all aspects of the Colorado option plan.

The bill authorizes the commissioner to promulgate rules to develop, implement, and operate the Colorado option plan, including:

• Expanding the Colorado option plan to the small group market;
• Establishing a hospital reimbursement rate formula; and
• Requiring carriers to offer the Colorado option plan in specific counties.

If a hospital refuses to participate in the Colorado option plan, the department of public health and environment may issue a warning, impose fines, or suspend, revoke, or impose conditions on the hospital's license.

The commissioner, in consultation with the board, is required to evaluate the Colorado option plan beginning July 1, 2024, and each year thereafter.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill clarifies that the existing authority of cities and counties (local governments) to plan for and regulate the use of land includes the authority to regulate development or redevelopment in order to promote the construction of new affordable housing units. The provisions of the state's rent control statute do not apply to any land use regulation that restricts rents on newly constructed or redeveloped housing units as long as the regulation provides a choice of options to the property owner or land developer and creates one or more alternatives to the construction of new affordable housing units on the building site.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill assesses an additional $30 fee on a person who commences a forcible entry and detainer action. The full amount of the fee is deposited into the eviction legal defense fund (fund). The bill makes the state court administrator's requirement to award grants from the fund subject to available appropriations.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act provides eviction assistance, rental assistance, residential mortgage assistance, and guidance on other housing assistance to households facing financial hardship due to the COVID-19 pandemic.

In determining how to distribute rental assistance, the division of housing in the department of local affairs (division) is required to prioritize:

• Homeless families with dependents or other children enrolled in preschool, elementary, or secondary schools;
• Medicaid clients in nursing homes who are able to live in their communities with in-home services;
• Family unification and related services;
• Homeless or disabled veterans;
• Low-income households with an income at or below one hundred percent of the area median income;
• Survivors of domestic violence;
• People experiencing homelessness who are at a higher risk of contracting COVID-19 according to the federal centers for disease control; and
• Entities that provide direct services to youth experiencing or at risk of experiencing homelessness.

In determining how to distribute residential mortgage assistance, the division is required to prioritize households with an income at or below 100% of the area median income.

From money given to the state in the federal "Coronavirus Aid, Relief, and Economic Security Act":

• $350,000 is appropriated to the judicial department for use by the eviction legal defense grant program; and
• $19,650,000 is transferred from the care subfund in the general fund to the housing development grant fund administered by the division.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The state treasurer is authorized to enter into a contract or contracts to establish a small business recovery loan program (loan program). The purpose of the loan program is to assist the state's recovery from the COVID-19 pandemic by leveraging private investment for loans to Colorado small businesses recovering from the COVID-19 crisis. The treasurer is authorized to contract with the Colorado housing and finance authority or a private entity selected through an open and competitive process.

Subject to the availability of proceeds from insurance premium tax credit purchases, the state treasurer may invest up to $30 million in first loss capital from the small business recovery fund established in the act in fiscal year 2020-21, and up to $30 million in first loss capital in fiscal year 2021-22; except that the total invested across both fiscal years may not exceed $50 million. The investments must be made in tranches of no more than $10 million each. Each tranche must be matched at a 4-to-1 ratio by money invested from other sources before it is committed or deployed. Once the money in a tranche is matched, it must be used to make loans of working capital to Colorado businesses with between 5 and 100 employees that meet eligibility criteria. The loans must be between $30,000 and $500,000, with a maturity of up to 5 years. The state treasurer may not invest a new tranche of state money until the prior tranche is at least 90% invested in small business loans.

When each tranche is deployed, it is subject to an initial period of time in which a portion of the money is allocated to each county on a basis proportionate to the county's share of small businesses or small business employees relative to the state, or a similar metric, or based on a formula that accounts for how affected each county has been by the COVID-19 pandemic. During this time period, the money allocated to the county is reserved for eligible borrowers located in that county. After the initial period of time passes, the money remaining in the tranche is available on a statewide basis.

The small business recovery loan program oversight board (oversight board) is created in the department of the treasury (department). The oversight board consists of the state treasurer, the director of the minority business office on behalf of the office of economic development, a member appointed by the speaker of the house of representatives, a member appointed by the president of the senate, and a member appointed by the governor. The oversight board consults with the treasurer on the selection of a loan program manager, establishes certain terms and criteria applicable to the loan program in consultation with lending industry leaders and small business representatives, and provides oversight and guidance to the loan program to ensure it complies with statutory requirements and fulfills the purpose of assisting Colorado small businesses recovering from the COVID-19 crisis. The loan program manager must report on a quarterly basis to the oversight board. The oversight board must file written reports with the joint budget committee twice each fiscal year, and must report once each fiscal year for the first 2 years to the business committees of the house and senate.

The department is authorized to issue insurance premium tax credits to insurance companies that are authorized to do business in Colorado and incur premium tax liability, subject to procedures established by the department. The department may contract or consult with an independent third party to manage the bidding process. The department is required to issue a tax credit certificate to each successful purchaser. The department is authorized to issue up to $40 million in tax credit certificates in fiscal year 2020-21. The department is authorized to issue up to an additional $28 million in tax credits in fiscal year 2021-22, unless an equivalent amount of federal money is appropriated or allocated to the program.

A qualified taxpayer may claim the tax credit against its premium tax liability. For a tax credit certificate issued in fiscal year 2020-21, the qualified taxpayer may claim up to 50% of the credit in calendar year 2026, and may claim the remaining amount of the credit beginning in calendar year 2027. For a tax credit certificate issued in fiscal year 2021-22, the qualified taxpayer may claim the credit beginning in calendar year 2028. The amount of the credit claimed cannot exceed the taxpayer's premium tax liability for a given year. The unused amount carries forward and may be claimed in subsequent years; except that a credit cannot be claimed for premium tax liability incurred in a taxable year that begins after December 31, 2031.

The act creates the small business recovery fund in the treasury. The fund consists of tax credit sale proceeds, any revenues, disbursements, or money returned to the state from the loan program, and any other money the general assembly appropriates or transfers to the fund. The money in the fund is continuously appropriated to the department to implement the loan program and to pay for the department's direct and indirect costs in administering the loan program and in issuing the tax credits. Beginning in fiscal year 2025-26, the treasurer must credit any unexpended and unencumbered money remaining in the fund at the end of a fiscal year to the general fund. The fund is repealed on July 1, 2029, and all unexpended and unencumbered money remaining in the fund is transferred to the general fund.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act establishes that a person engages in a deceptive trade practice if the person, within 180 days following the declaration of a disaster or disaster emergency by the president of the United States or the governor of the state and in the geographic area for which the disaster was declared, sells, offers for sale, provides, or offers to provide any of the following at a price so excessive as to amount to price gouging:

• Building materials;
• Consumer food items;
• Emergency supplies;
• Fuel;
• Medical supplies;
• Other necessities;
• Repair or reconstruction services;
• Transportation, freight, or storage services; or
• Services used in an emergency cleanup.

A price is not unreasonably excessive if the seller can prove that, due to events that gave rise to the disaster declaration, the price is attributable to additional costs imposed on the seller by the seller's supplier or suppliers or other direct costs of providing the good or service sold or offered for sale.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act prohibits a principal, which includes an employer, certain labor contractors, public employers, and entities that contract with 5 or more independent contractors, from discriminating, retaliating, or taking adverse action against any worker who:

• In good faith, raises any concern about workplace health and safety practices or hazards related to a public health emergency to the principal, the principal's agent, other workers, a government agency, or the public if the workplace health and safety practices fail to meet guidelines established by a federal, state, or local public health agency with jurisdiction over the workplace;
• Voluntarily wears at the worker's workplace the worker's own personal protective equipment, such as a mask, faceguard, or gloves, under specified circumstances; or
• Opposes a practice the worker reasonably believes is unlawful or makes a charge, testifies, assists, or participates in an investigation, proceeding, or hearing of alleged unlawful acts.

Additionally, a principal is prohibited from requiring or attempting to require a worker to sign a contract or other agreement that limits or prevents the worker from disclosing information about workplace health and safety practices or hazards related to a public health emergency.

A worker who knowingly discloses false information or discloses information with reckless disregard for the truth or falsity of the information is not protected under the act.

A person may seek relief by:

• Filing a complaint with the division of labor standards and statistics (division) in the department of labor and employment;
• Bringing an action in district court, after exhausting administrative remedies; or
• Bringing a whistleblower action in the name of the state in district court, after exhausting administrative remedies.

The division is authorized to adopt rules necessary to implement the act.

$270,153 is appropriated to the department of labor and employment from the employment support fund, of which $206,193 is allocated for use by the division for enforcement of worker's rights related to a public health emergency, based on the assumption that the division will require an additional 2.5 FTE, and $63,960 is reappropriated to the department of law for legal services.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Section 1 of the act specifies that the act shall be known as the "Tax Fairness Act".

Sections 2 and 3 of the act require taxpayers to add to federal taxable income:

• For income tax years ending on and after the enactment of the March 2020 "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the difference between a taxpayer's net operating loss deduction as determined under federal law before the amendments made by section 2303 of the CARES Act and the taxpayer's net operating loss deduction as determined under federal law after the amendments made by section 2303 of the CARES Act;
• For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to a taxpayer's excess business loss as determined under federal law without regard to the amendments made by section 2304 of the CARES Act, but with regard to the technical amendment made in that section of the CARES Act;
• For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the amount in excess of the limitation on business interest under federal law without regard to the amendments made by section 2306 of the CARES Act; and
• For income tax years commencing on or after January 1, 2021, but before January 1, 2023, an amount equal to the deduction for qualified business income for an individual taxpayer who files a single return and whose adjusted gross income is greater than $500,000, and for an individual taxpayer who files a joint return and whose adjusted gross income is greater than $1 million. This federal deduction may be claimed for income tax years commencing prior to January 1, 2026, except that the add-back is not required for a taxpayer who files a schedule F, profit or loss from farming, or successor form, as an attachment to a federal income tax return.

Section 4 of the act specifies that for net operating losses incurred after December 31, 2017, the 80% limitation set forth in federal law applies without regard to the amendments made in section 2303 of the CARES Act.

The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 5 of the act increases the percentage from 10% to 15% beginning in 2022. Section 5 also specifies that for income tax years commencing on or after January 1, 2021, taxpayers filing with an individual taxpayer identification number are eligible for the earned income tax credit.

Section 6 of the act specifies that the state treasurer shall transfer $113 million on March 1, 2021, and $23 million on March 1, 2022, from the general fund to the state education fund created in section 17 (4) of article IX of the state constitution.

Section 7 of the act makes an appropriation.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill creates the "Get on Your Feet Student Loan Repayment Assistance Program" to provide no more than 24 monthly payments on a qualified loan on behalf of a qualified recipient.

A qualified recipient is required to satisfy eligibility and program participation requirements.

The department of higher education is required to administer the program pursuant to guidelines promulgated by the commission on higher education.

A person who received a program award but did not satisfy all eligibility and program participation requirements may be required to fully or partially reimburse the state.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

Current law exempts from the definition of a "real estate appraisal" certain analyses prepared by an officer, director, or regularly salaried employee of a financial institution or its affiliate when the analyses are used for internal purposes only. Federal law also exempts such analyses when they are prepared by an agent of a financial institution or its affiliate. The act adds these agents to the list of people who can make these exempt analyses.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The act repeals a prohibition against the state attorney general challenging a business merger or acquisition when the merger or acquisition has been reviewed and not challenged by a federal department, agency, or commission.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

A Colorado state credit union may open new branches in Colorado or in other states 30 days after providing written notice to the state commissioner of financial services. The state commissioner may enter into agreements with other state credit union regulators for the purposes of examination and supervision of out-of-state offices.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill amends the "Colorado Consumer Protection Act" (act) to state that a plaintiff in an individual action may be awarded damages equal to the sum of $500 per violation.

The bill also amends the act to state that, under the act, a class action may be brought and damages may be awarded to the class.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The bill enacts the "Consumer and Employee Dispute Resolution Fairness Act" (act). For certain consumer and employment arbitrations, the act:

• Prohibits the waiver of standards for and challenges for evident partiality prior to a claim being filed and requires any waiver of such provisions after the claim is filed to be in writing;
• Provides that the right of a party to challenge an arbitrator based on evident partiality is waived if not raised within a reasonable time of learning of the information leading to the challenge but that such right is not waived if caused by the opposing party;
• Authorizes the nonobjecting party to seek provisional remedies from court if a party objects to an arbitrator and the parties are not able to agree on an arbitrator;
• Establishes ethical standards for arbitrators; and
• Requires specified public disclosures by arbitration services providers to the parties but includes protections for certain confidential information.

The bill also requires an individual arbitrator for certain consumer and employment arbitrations to make additional disclosures of information that might affect the arbitrator's impartiality.

The bill specifies how attorney fees and other reasonable expenses are to be awarded if a court vacates an award because of an arbitrator's evident partiality or failure to make required disclosures. and clarifies when appeals of orders may be made in consumer and employee arbitrations.

The bill also provides that for a standard form contract involving a consumer or an employee:

• Specified terms are unenforceable as against public policy; and
• Including an unenforceable term constitutes a deceptive trade practice under the "Colorado Consumer Protection Act"; and
• How certain cost-shifting provisions are to be interpreted.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

Current law requires an individual who wishes to have a document notarized to appear personally before a notary public.

Effective December 31, 2020:

• The act authorizes a notary public to perform a notarial act on behalf of an individual who is not in the notary's physical presence, but only with respect to an electronic document;
• To perform a "remote notarization", a notary must use an electronic system that conforms to standards established by rules of the secretary of state, including using real-time audio-video communication;
• The act establishes the standards that a notary must comply with to have satisfactory evidence of the identity of the individual seeking the remote notarization; and
• The use or sale of personal information of a remotely located individual by a remote notary and the provider of a remote notarization system is prohibited except in specific, limited circumstances.

The governor issued an emergency executive order in response to the COVID-19 pandemic that directed the secretary of state to issue an emergency rule to authorize remote notarizations, which the secretary of state did. The act ratifies remote notarizations conducted pursuant to the emergency rule between March 30, 2020, and December 31, 2020.

The act appropriates $132,795 from the department of state cash fund to the department of state to implement the act.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

For purposes of the property tax, the bill classifies an improvement that is used to provide short-term stays, which is overnight lodging for less than 30 consecutive days in exchange for a monetary payment. A building or a portion of a building that is designed and used as a residency by a person, a family, or families and that is leased or available to be leased for short-term stays is a residential improvement and, therefore, it is classified as residential property.

A short-term rental unit is excluded from the definition of residential improvements and, therefore, it is classified as nonresidential property. A short-term rental unit is defined to mean a building or a portion of a building that is designed for use predominantly as a place of residency by a person, a family, or families, but that is leased or available to be leased for short-term stays during the property tax year and is occupied by the owner for less than 30 days in a year.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill requires the staff of the legislative council to prepare business fiscal impact notes (notes) on legislative bills in each regular session of the general assembly. The speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, and the minority leader of the senate are authorized to request 2 notes each, or more at the discretion of the director of research of the legislative council.

The bill requires the staff of the legislative council to meet with the member of leadership requesting the note and with the sponsor of the legislative bill to discuss whether a note can practically be completed for that legislative bill. If not, the member of leadership may request a note on a different legislative bill.

A business fiscal impact note is defined as a note that uses available data to analyze the potential direct economic effects of a legislative bill on Colorado businesses, including costs related to compliance, impacts on hiring or job losses, savings or cost reductions, and other fiscal impacts.

The bill requires the director of research of the legislative council to develop the procedures for requesting, completing, and updating the notes and to memorialize the procedures in a letter to the executive committee of the legislative council.

The staff of the legislative council must designate a 5-day period during which Colorado businesses can submit comments on the impacts of a legislative bill selected for the preparation of the note, or a shorter time if the bill is selected during the last 30 days of session. The staff must summarize and compile the comments as part of the note.

Finally, the legislative bill requires each state department, agency, or institution to cooperate with and provide information for a note of a legislative bill in the manner requested by the staff of the legislative council.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

The bill:

• Increases the statutory limitation period for actions based on construction defects from 6 years to 10 years;
• Allows tolling of the limitation period on any statutory or equitable basis; and
• Requires tolling of the limitation period until the claimant discovers not only some physical manifestation of a construction defect but also its cause.
  (Note: This summary applies to this bill as introduced.)

Fiscal Note

The act authorizes the board of county commissioners of a county (board), in consultation with the county treasurer, to make loans to a governmental entity that is created by or located within the county subject to the following requirements:

• The board must adopt underwriting standards that require each proposed loan to be analyzed with respect to risks, market rates, and loan terms before making any loans;
• Each loan must be analyzed using the underwriting standards;
• The source of a loan must be legally available money that is not otherwise encumbered or obligated, and the amount loaned must not cause the total outstanding principal balance of all such loans made to exceed 8% of the amount of such money available at the time the loan is made;
• A loan must have a specified repayment term;
• A loan recipient must pay the county interest on the loan at an initial rate that is equal to or greater than the rate of return earned on all county financial investments;
• A loan recipient must use loan proceeds for the sole purpose of funding public infrastructure projects within the county; and
• The board must make the loan by entering into an intergovernmental agreement with the loan recipient that establishes loan terms and conditions. Before entering into such an intergovernmental agreement:
• The board must approve the public infrastructure project to be funded by the loan and the terms and conditions of the loan at a public board meeting; and
• The board or the loan recipient must pursue private sector options for funding the public infrastructure project to be funded by the loan and report regarding the options pursued at the board meeting at which the board approves the loan.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Section 1 of the bill defines and exempts a financial organization loyalty card from the property that is subject to the "Revised Uniform Unclaimed Property Act", which is effective on July 1, 2020. Section 2 repeals the presumption of abandonment in the act for demand, savings, or time deposits with a financial organization, and section 3 replaces it by reenacting the current law, which otherwise is effective until July 1, 2020. The continued, current law has the same 5-year period for property to be presumed abandoned but has different owner activities that rebut the presumption of abandonment. It also delays the time that a financial organization is required to deliver this property to the administrator, if a penalty or forfeiture in the payment of interest would result from the delivery of the property. Section 4 requires the administrator to record the partial last-known address, instead of the full address, for each person appearing on a holder's report provided to the administrator, and for this record to be available on the website or database maintained by the administrator, instead of through public inspection.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The bill directs the state board of education (state board) to review, during the first review of standards performed after July 1, 2021, standards relating to the knowledge and skills that a student should acquire in school to ensure that the financial literacy standards for ninth through twelfth grade include an understanding of the costs associated with obtaining a postsecondary degree or credential and how to budget for and manage the payment for those costs, including managing student loan debt; understanding credit cards and credit card debt; and understanding retirement plans, including investments and retirement benefits.

The bill adds to the resources contained in the existing financial literacy resource bank created and maintained by the state board specific references relating to assessing the affordability of higher education and how to budget and pay for higher education, as well as how to manage student loan debt; understanding credit cards and credit card debt; and understanding retirement plans, including investments and retirement benefits.

Under current law, school districts are encouraged to adopt a financial literacy curriculum and to make completion of a course in financial literacy a graduation requirement. The bill adds assessing the affordability of higher education and how to budget and pay for higher education, as well as how to manage student loan debt, to the suggested financial literacy curriculum, as well as familiarizing students with the process and required forms to apply for financial aid, grants, and scholarships.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

The bill creates the financial empowerment office (office) and the director of the office (director) in the department of law to grow the financial resilience and well-being of Coloradans through specified community-derived goals and strategies. The director is appointed by the Colorado attorney general and may hire staff as necessary to perform the duties and functions of the office. The office also consists of a manager who is appointed by the director.

The office is authorized to partner with governmental bodies, community organizations, financial institutions, local service providers, and philanthropic organizations to achieve the purposes of the office. The office is also authorized to develop:

• Methods to increase access to safe and affordable financial products;
• Tools and resources that advance, increase, and improve Colorado residents' financial management; and
• Community-informed policies and systems that dismantle systemic barriers to building ownership and wealth for all, especially low-income communities and communities of color.

The financial empowerment office is required to:

• Support the organization of community coalitions to define and lead financial resilience strategies;
• Align, support, and build ties to build financial education and well-being in communities across the state;
• Establish a statewide coalition to assist the director in increasing access to safe and affordable banking products that help improve the financial stability of Colorado residents;
• Work with stakeholders to increase access to low-cost, credit-building loans and financial products;
• Work with state authorities and other stakeholders to expand access to safe and affordable banking products with low fees and easy account access;
• Develop technical assistance to launch or expand local financial coaching and counseling efforts;
• Raise money to support coaching, safe and affordable banking, and potential loan funds;
• Collaborate with the office of the state treasurer on the creation and management of a loan fund to support small credit-building loans; and
• Track community feedback on consumer financial abuses and coordinate with the enforcement teams at various state agencies, connect consumers with existing resources, and educate the public on their related consumer rights.

The office is also required to submit an annual report to the general assembly regarding the activities of the office and the state of affordable banking access in Colorado.

(Note: This summary applies to this bill as introduced.)

Fiscal Note

In 2019, the general assembly created the Colorado secure savings board (board) in the office of the state treasurer to study the costs to the state of insufficient retirement savings and 3 approaches to increasing retirement savings in Colorado. The board found that a state-facilitated automatic enrollment individual retirement account program is the best option for Colorado and recommended the establishment of such a program, coupled with the greater use of financial education tools in the state. In furtherance of the board's recommendation, the act directs the board to create and implement the Colorado secure savings program (program).

The act specifies the powers and duties of the board in connection with the creation and administration of the program and updates the criteria to which the board is required to adhere in developing the program. The board is required to adopt rules regarding enrollment in the program, contributions to and withdrawals from program accounts, the process for employer exemptions from offering the program, and required disclosures.

The act creates the Colorado secure savings program fund in the state treasury to consist of money appropriated by the general assembly, money transferred to the fund by the federal government, money from fees and penalties in connection with the program, any gifts, grants, or donations made to the fund, and any gifts, grants, donations, or investments made to the state treasurer. The state treasurer may solicit gifts, grants, donations, or investments not required to be repaid, from public or private sources to cover the costs associated with the administration of the program.

All individual account information for accounts under the program is confidential and may not be disclosed except under specified circumstances.

For the 2020-21 state fiscal year, the general fund appropriation made in the annual general appropriation act to the office of the governor for use by the office of information technology for applications administration is decreased by $1,197,552. The same amount is appropriated from the general fund to the department of the treasury for the implementation of the act. Any money appropriated that is not expended prior to July 1, 2021, is further appropriated to the department for the 2021-22 state fiscal year for the same purpose.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

On the effective date of the act through December 31, 2020, all employers in the state, regardless of size, are required to provide each of their employees paid sick leave for reasons related to the COVID-19 pandemic in the amounts and for the purposes specified in the federal "Emergency Paid Sick Leave Act" in the "Families First Coronavirus Response Act".

Starting January 1, 2021, for employers with 16 or more employees, and starting January 1, 2022, for all employers, the act requires employers to provide paid sick leave to their employees, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours per year.

An employee begins accruing paid sick leave when the employee's employment begins, may use paid sick leave as it is accrued, and may carry forward and use in subsequent calendar years up to 48 hours of paid sick leave that is not used in the year in which it is accrued. An employer is not required to allow the employee to use more than 48 hours of paid sick leave in a year.

Employees may use accrued paid sick leave to be absent from work for the following purposes:

• The employee has a mental or physical illness, injury, or health condition; needs a medical diagnosis, care, or treatment related to such illness, injury, or condition; or needs to obtain preventive medical care;
• The employee needs to care for a family member who has a mental or physical illness, injury, or health condition; needs a medical diagnosis, care, or treatment related to such illness, injury, or condition; or needs to obtain preventive medical care;
• The employee or family member has been the victim of domestic abuse, sexual assault, or harassment and needs to be absent from work for purposes related to such crime; or
• A public official has ordered the closure of the school or place of care of the employee's child or of the employee's place of business due to a public health emergency, necessitating the employee's absence from work.

In addition to the paid sick leave accrued by an employee, the act requires an employer, regardless of size, to provide its employees an additional amount of paid sick leave during a public health emergency in an amount based on the number of hours the employee works.

The act prohibits an employer from retaliating against an employee who uses the employee's paid sick leave or otherwise exercises the employee's rights under the act. Employers are required to notify employees of their rights under the act by providing employees with a written notice of their rights and displaying a poster, developed by the division of labor standards and statistics (division) in the department of labor and employment (department), detailing employees' rights under the act.

The director of the division will implement and enforce the act and adopt rules necessary for such purposes. An employer found in violation of the act is liable to the employee for back pay and other equitable damages.

The act treats an employee's information about the employee's or a family member's health condition or domestic abuse, sexual assault, or harassment case as confidential and prohibits an employer from disclosing such information or requiring the employee to disclose such information as a condition of using paid sick leave.

The act specifies the conditions in which collective bargaining agreements result in compliance with, or exemption from, the act.

$206,566 is appropriated to the department for use by the division to implement the act, based on the assumption that the division will require an additional 2.7 FTE for such purpose.

(Note: This summary applies to this bill as enacted.)

Fiscal Note

Beginning in calendar year 2021 and each year thereafter, the act increases the amount of wages paid to an individual employee during a calendar year on which the employer of that employee is required to pay premiums to the unemployment compensation fund (fund).

The act exempts payment for services to an election judge, up to the maximum amount permissible by federal law, for the purposes of calculating total unemployment compensation benefits.

Current law requires the weekly total and partial unemployment benefit amounts to be reduced by the amount of an individual's wages that exceeds 25% of the weekly benefit amount. For the next 2 calendar years only, the act changes the deduction amount to the amount of an individual's wages that exceeds 50% of the weekly benefit amount.

When determining whether an individual qualifies for unemployment insurance, the act directs the division of unemployment insurance (division) in the department of labor and employment (department) to consider whether the individual has separated from employment or has refused to accept new employment because:

• The employer requires the individual to work in an environment that is not in compliance with: Federal centers for disease control and prevention guidelines applicable to the employer's business and workplace at the time of the determination; state and federal laws, rules, and regulations concerning disease mitigation and workplace safety; or an executive order issued by the governor, or a public health order issued by the department of public health and environment or a local government, requiring the employer to close the business or modify the operation of the business;
• The individual is the primary caretaker of a child enrolled in a school that is closed due to a public health emergency or of a family member or household member who is quarantined due to an illness during a public health emergency; or
• The employee is immunocompromised and more susceptible to illness during a public health emergency.

The act changes the time period that an interested party has to respond to a notice of claim received by the division concerning unemployment benefits from 12 calendar days to 7 calendar days.

Current law authorizes the division to approve a work share plan submitted by an employer if the employee's normal weekly work hours have been reduced by at least 10% but not more than 40%. The act changes the amount that hours may be reduced to an amount consistent with rules adopted by the division and federal law.

The act removes the cap on the amount of money that can be paid into and remain in the employment support fund.

The act prohibits the division from assessing a solvency surcharge for the fund on employers for the calendar years 2021 and 2022.

The act requires the state treasurer to transfer any unexpended federal funds received by the state from the federal "CARES Act" to the fund prior to the close of business on December 30, 2022.

The act requires the office of future of work in the department to study unemployment assistance as part of a study on the modernization of worker benefits and protections and report its findings to the governor and the general assembly.

(Note: This summary applies to this bill as enacted.)