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

The act creates an online transparency task force. Interested legislators and the following individuals, or their designees, may participate in the task force:

• The head of each principal department;
• The state's chief information officer; and
• The executive director of the statewide internet portal authority, who is chair of the task force.

The purpose of the task force is to recommend:

• Ways to enhance citizens' online access to rules and the rule-making process and to increase the transparency of the rule-making process;
• Options for the design and implementation of an integrated state rule-making web portal;
• Common rule-making agency reporting formats, workflows, timelines, and protocols; and
• An entity to manage the integrated state rule-making web portal.

The task force shall submit a written report that summarizes its recommendations by January 1, 2021, to the general assembly's committees of reference with jurisdiction over business and state affairs and cease operations upon submission of the report.

(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

Energy Legislation Review Interim Study Committee. The bill ensures that clean energy resources and energy storage systems used to store electricity are assessed for valuation for the purpose of property taxation in a similar manner to renewable energy facility property used to generate and deliver electricity.
(Note: This summary applies to this bill as introduced.)

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 prohibits a landlord of a mobile home park or a residential premises (landlord) from:

• Charging a tenant or mobile home owner a late fee for late payment of rent unless the rent payment is late by at least 14 calendar days;
• Charging a tenant or mobile home owner a late fee in an amount that exceeds the greater of:
• $20; or
• The lesser of 3% of the tenant's or home owner's monthly rent obligation or 3% of the amount of the rent obligation that remains due;
• Removing, excluding, or initiating eviction procedures against a tenant or mobile home owner solely as a result of the tenant's or mobile home owner's failure to pay late fees;
• Imposing a late fee on a tenant for the late payment or nonpayment of any portion of the rent for which a rent subsidy provider, rather than the tenant, is responsible for paying;
• Imposing a late fee more than once for each late payment;
• Requiring a tenant or mobile home owner to pay interest on late fees; or
• Recouping any amount of a late fee from a rent payment made by a tenant or mobile home owner.

A landlord may recoup one or more late fees from a tenant or mobile home owner's security deposit if the payment of each late fee is no more than 180 days overdue and the landlord provides written notice to the tenant or mobile home owner that the landlord has recouped each late fee from the tenant or mobile home owner's security deposit.

A landlord shall not require a tenant or mobile home owner to pay any fee or other charge other than the rent; except that a landlord may require a tenant or mobile home owner to pay a use-based fee that is described in the rental agreement.

If a landlord provides to a tenant or mobile home owner a utility service that is not individually metered, the landlord shall include the cost of the utility service in the tenant's or mobile home owner's rent and charge the actual cost of the utility service on a uniform basis to all tenants or mobile home owners who receive the service.

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

Fiscal Note

Current state law sets the maximum civil fine for most air quality violations at $15,000 per day and most water quality violations at $10,000 per day, but federal law allows the federal environmental protection agency to assess higher maximum daily fines per violation. Sections 1 and 2 of the act raise the maximum fine to $47,357 per day for air quality violations and $54,833 per day for water quality violations and direct the air quality control commission and the water quality control commission in the department of public health and environment to annually adjust the maximum fine based on changes in the consumer price index. Section 2 also extends the repeal date for the water quality improvement fund to September 1, 2025.

Current law specifies that a person who commits criminal pollution of state waters that is committed:

• With criminal negligence or recklessly is subject to a maximum daily fine of $12,500; and
• Knowingly or intentionally is subject to a maximum daily fine of $25,000.

Section 3 makes a:

• Criminally negligent or reckless violation a misdemeanor and increases the maximum daily penalty to $25,000, imprisonment of up to 364 days, or both; and
• Knowing or intentional violation a class 5 felony and increases the maximum daily penalty to $50,000, imprisonment of up to 3 years, or both.

Current law specifies that a person who knowingly makes any false representation in a required record or who knowingly renders inaccurate any required water quality monitoring device or method is guilty of a misdemeanor and is subject to a fine of not more than $10,000, imprisonment in the county jail for not more than 6 months, or both. Section 4 makes these violations a class 5 felony and specifies that if 2 separate offenses occur in 2 separate occurrences during a period of 2 years, the maximum fine and term of imprisonment for the second offense are double the default amounts.

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

Fiscal Note

The bill creates tax incentives to encourage employers to voluntarily support paid parental and medical leave programs for their eligible employees and to encourage eligible employees to save for time away from work during parental and medical leave.

Specifically, section 2 of the bill establishes leave savings accounts. A leave savings account is an account with a financial institution for which the individual uses money to pay for any expense while he or she is on eligible leave, which includes:

• The birth of a child of the individual and caring for the child;
• The placement of a child with the individual for adoption or foster care;
• Caring for a spouse, child, or parent of the individual if the spouse, child, or parent has a serious health condition;
• A serious health condition that makes the individual unable to perform the functions of the position of the individual;
• Time for an individual to care for himself or herself or to care for a parent or child after being a victim of domestic abuse; or
• Any qualifying exigency, as determined by the United States secretary of labor, arising out of the fact that a spouse, child, or parent of the individual is on covered active duty, or has been notified of an impending call or order to covered active duty, in the United States armed forces.

An individual may annually contribute up to $5,000 of wages to a leave savings account. An employer may make a contribution to the employee's leave savings account in any amount. The department of health care policy and financing is required to establish a form for an individual to report information regarding leave savings accounts, and the individual must annually file this form with the department of revenue to be eligible for the tax benefit.

Section 3 allows an employee to claim a state income tax deduction for amounts they or their employer contribute to a leave savings account. A taxpayer is also allowed to deduct any interest or other income earned during the taxable year on the investment of money in their leave savings account.

Section 4 creates an income tax credit for an employer that pays an employee for leave that is between 8 and 12 weeks long. The leave must be for one of the same reasons for which an employee may use money in a leave savings account as specified above. The amount of the credit is equal to 15% of the amount paid, so long as the amount paid is at least 50% of the employee's regular salary for a specified time period.

Section 4 also creates an income tax credit for an employer that contributes to an employee's leave savings account. The amount of the credit is equal to 15% of the amount contributed to the account; except that a credit is not allowed for contributions to a leave savings account that exceed $3,000 in a single year.

Both credits are not refundable, but they may be carried forward up to 5 years.

The bill also specifies that for employers, an amount equal to the amount the taxpayer contributed to an employee's leave savings account and an amount equal to the amount the taxpayer paid in wages for an employee while on family leave, to the extent an income tax credit is claimed, will be added to the taxpayer's federal taxable income.

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

Fiscal Note

The property tax administrator is required by law to prepare and publish manuals, appraisal procedures, instructions, and guidelines (property tax materials) concerning the administration of the property tax. Beginning January 1, 2021, section 1 of the bill requires the administrator to conduct a public hearing on a proposed change to the property tax materials prior to submitting the proposed change to the advisory committee to the property tax administrator (advisory committee). The administrator must publish notice of the hearing and mail notice to those people who so request. At the hearing, interested persons may submit information and the administrator is required to consider these submissions. Any interested person may also petition the administrator for the issuance, amendment, or repeal of any property tax material.

At least 2 weeks prior to the advisory committee reviewing a proposed change to the property tax materials, section 2 requires the property tax administrator to publish notice about the proposed change.
(Note: This summary applies to this bill as introduced.)

Fiscal Note

The act creates the occupational credential portability program (program) in the division of professions and occupations within the department of regulatory agencies, which permits a member of a regulated profession or occupation from another jurisdiction to obtain licensure, certification, registration, or enrollment in the profession or occupation in this state by endorsement, reciprocity, or transfer. The program is available to members of business and health care professions and occupations regulated by the division and the regulatory boards in the division for which licensure, certification, registration, or enrollment by endorsement is permitted under current law; except that the following professions and occupations are specifically excluded from the program:

• Combative sports;
• Electricians;
• Fantasy contests;
• Mortuaries and crematories;
• Nontransplant tissue banks;
• Outfitters and guides;
• Passenger tramway operators;
• Plumbers;
• Private investigators;
• Direct-entry midwives; and
• Surgical assistants and surgical technologists.

Under the program, the director of the division and most regulatory boards and commissions within the division (regulators) are required to strive to reduce certification, registration, licensure, and enrollment barriers for applicants and to adopt rules to establish the program in the least burdensome way necessary to protect the public.

The act also relocates the existing occupational credential exemption for military spouses to the new occupational credential portability program and modifies the exemption by specifying that the exemption is valid for 3 years and applying the exemption to all members of business and health care professions and occupations regulated by the division and the regulatory boards in the division.

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

Fiscal Note

The act adds discrimination based on source of income as a type of unfair housing practice. "Source of income" is defined to include any source of money paid directly, indirectly, or on behalf of a person, including income from any lawful profession or from any government or private assistance, grant, or loan program.

A person is prohibited from refusing to rent, lease, show for rent or lease, or transmit an offer to rent or lease housing based on a person's source of income. In addition, a person cannot discriminate in the terms or conditions of a rental agreement against another person based on source of income, or based upon the person's participation in a 3rd-party contract required as a condition of receiving public housing assistance. A person cannot include in any advertisement for the rent or lease of housing any limitation or preference based on source of income, or to use representations related to a person's source of income to induce another person to rent or lease property. The restrictions do not apply to a landlord with 3 or fewer rental units. A landlord who owns 5 or fewer single family rental homes, and no more than 5 total rental units including any single family rental homes, is not required to accept federal housing choice vouchers for the single family homes.

A landlord is not prohibited from checking the credit of prospective tenant. Checking the credit of a prospective tenant is not an unfair housing practice if the landlord checks the credit of every prospective tenant.

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

Fiscal Note

Sections 1 and 2 of the bill establish authority for the board of assessment appeals to refer a matter before it to a hearing officer for an expedited hearing, upon the request of a taxpayer in certain circumstances. There are deadlines for requesting and conducting the hearing and for the hearing officer to make his or her order. The procedure for the hearing is similar to those hearings conducted before the board. If unchanged by the board of assessment appeals, a hearing officer's order is appealable in the same manner as an order issued by the board.

Section 3 creates the property tax valuation protest deadline task force. The task force consists of 7 members: The property tax administrator or the administrator's designee and 6 members appointed by the governor. The task force meets over one year and is required to consider and make recommendations to legislative committees to extend the taxpayer's deadline to protest a property tax valuation and to adjust other related deadlines.

Under current law, an assessor may, with the permission of the board of county commissioners, include an estimate of property taxes owed in a notice of valuation. Section 4 requires an assessor to include this estimate and allows the assessor to include a range of values.

If in the consideration of a protest an assessor finds that he or she made a systematic error and the valuations of other similar properties are incorrect, section 5 requires the assessor to correct the error for the other similar properties.
(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

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 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

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 act allows, upon approval of the county treasurer, a board of county commissioners or a city council of a city and county to temporarily reduce, waive, or suspend delinquent interest payments for property tax payments.

The act also requires a board of county commissioners or city council to notify local taxing jurisdictions of the intent to reduce, waive, or suspend delinquent property tax interest payments. If a local taxing jurisdiction would be unable to meet its bond payment obligations after the proposed reduction, waiver, or suspension, the local taxing jurisdiction shall notify the board of county commissioners or city council.

Finally, the act requires a treasurer to advance property tax payments to local taxing jurisdictions to assist the local taxing jurisdictions in the payment of bonded indebtedness payments and monthly operation costs, if the local taxing jurisdiction submits a letter to the board of county commissioners of the county or the city council of the city and county that contains the local taxing jurisdiction.

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

Fiscal Note

Current law requires a legislative declaration stating the intended purpose of a new tax expenditure or the intended purpose for extending an expiring tax expenditure. The act expands that law by:

• Requiring a statutory legislative declaration, not nonstatutory;
• Requiring any bill that creates a new tax expenditure to include a repeal of the expenditure after a specified period of tax years and any bill that extends an expiring tax expenditure to extend the expenditure for a specified period of tax years; and
• Requiring the statement of the intended purpose to be a part of a tax preference performance statement, which includes:
• The classification of the type of the tax expenditure; and
• Detailed information regarding the legislative purpose of the tax expenditure, which, at minimum, includes clear, relevant, and ascertainable metrics and data requirements that allow the tax expenditure to be measured for effectiveness in achieving the intended purpose.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Statutory Revision Committee. The bill clarifies that electrical inspection fees charged by the state electrical board, which are generally based on the actual expense of the inspection, may be doubled if an application for an electrical permit is not filed in advance of the commencement of an electrical installation.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Fiscal Note

Section 1 of the act directs the department of public health and environment (department) to convene stakeholders to inform the department regarding a structure and governing guidance for a recycling market development center to support the development of end-market businesses within the state. Section 1 also directs the department to conduct a literature review of what industry and other states are doing around the country regarding producer responsibility and to create policy and legislative recommendations regarding the feasibility of requiring producers to design, manage, and finance programs for end-of-life management of their products and packaging as a condition of sale.

Sections 3, 4, and 5 allow the pollution prevention advisory board (board) to use the recycling resources economic opportunity fund and the front range waste diversion cash fund to reimburse eligible recycling businesses for locally assessed personal property taxes paid in the current tax year in this state on personal property. Section 2 directs the board to establish a formula that it would use in awarding personal property tax reimbursements.

Section 6 requires the department, as soon as practicable, to administer a statewide campaign to educate Colorado residents concerning recycling. The department shall ensure the campaign includes:

• Communications delivered via social media;
• Television and radio public service announcements; and
• The placement of written materials in public locations, such as community centers, recreation centers, and shopping centers.

In administering the campaign, the department shall consult with municipal governments, county governments, and private agencies that operate recycling programs. The department may contract with one or more public or private entities for the preparation of materials to be used in the campaign. The requirement is repealed, effective September 1, 2021.

Section 7 appropriates $985,283 from the recycling resources economic opportunity fund and 2.1 FTE to the department to implement the act.

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

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

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 bill requires the public utilities commission to adopt by rule, no later than July 31, 2021, renewable natural gas programs for large natural gas utilities (those that have at least 200,000 250,000 customer accounts in Colorado) and small natural gas utilities (those that have fewer than 200,000 250,000 customer accounts in Colorado). Municipally owned natural gas utilities may, but need not, participate in a renewable natural gas program. The rules must include reporting requirements and a process for natural gas utilities to fully recover prudently incurred costs associated with the large and small renewable natural gas programs.

"Renewable natural gas" is defined to mean any of the following products processed to meet pipeline quality standards or transportation fuel-grade requirements or delivered by an alternative energy carrier :

• Biogas that is blended with, or substituted for, geologic natural gas;
• Hydrogen gas derived from renewable energy sources; or
• Methane gas derived from any combination of biogas; hydrogen gas or carbon oxides derived from renewable energy sources; waste carbon dioxide; coalbed methane resulting from human activity; naturally occurring coalbed deposits; a municipal solid waste landfill; waste tire or municipal solid waste pyrolysis; or biogas recovery from manure management systems and anaerobic digesters ; or the decomposition of organic food waste .

If a large natural gas utility's total incremental annual cost to meet the targets of the large renewable natural gas program exceeds 5% 2% of the large natural gas utility's total revenue requirement for a particular year, the large natural gas utility shall not make additional qualified investments under the large renewable natural gas program for that year without approval from the commission. The bill establishes the following portfolio targets for the percentage of gas purchased by large natural gas utilities that is renewable natural gas:

• By January 1, 2025, at least 5% must be renewable natural gas;
• By January 1, 2030, at least 10% must be renewable natural gas; and
• On and after January 1, 2035, at least 15% must be renewable natural gas.

Small natural gas utilities may opt in to the small renewable natural gas program as established by the commission by rule. The rule must include tradeable credits and a rate cap limiting the small natural gas utility's costs of procuring renewable natural gas from third parties and qualified investments in renewable natural gas infrastructure.

The bill appropriates $83,555 from the fixed utilities cash fund to the department of regulatory agencies for use by the public utilities commission to implement the bill.

(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 department of personnel (department) is required to establish a maximum acceptable global warming potential for each category of eligible materials used in a public project. The bill specifies which building materials are eligible materials.

The department is required to set the maximum acceptable global warming potential at the industry average of facility-specific global warming potential emissions for that material and to express it as a number that states the maximum acceptable facility-specific global warming potential for each category of eligible materials.

The department is required to submit a report to the general assembly regarding the method it used to develop the maximum global warming potential for each category of eligible materials and may make periodic downward adjustments to the number to reflect industry improvements.

For invitations for bid for public projects issued after a certain date, the contractor that is awarded the contract is required to submit to the contracting agency of government a current facility-specific environmental product declaration for each eligible material proposed to be used in the public project.

A contracting agency of government is required to include in a specification for bids for a public project that the facility-specific global warming potential for any eligible material that will be used in the project shall not exceed the maximum acceptable global warming potential for that material determined by the department.

A contractor that is awarded a contract for a public project is prohibited from installing any eligible material on the project until the contractor submits a facility-specific environmental product declaration for that material.

The bill specifies that in administering the requirements of the bill, an agency of government is required to strive to achieve a continuous reduction of greenhouse gas emissions over time. The department is required to submit a report to the general assembly regarding the implementation of the bill.

The bill includes the facility-specific global warming potential for each eligible material that will be used in the project and the cost of avoided emissions for the project in the factors to be considered when making an award determination for a competitive sealed best value bid.

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

Fiscal Note

Section 1 of the bill directs the public utilities commission (PUC) to approve utilities' applications to build new transmission facilities if the PUC finds that the new facilities would assist the utilities in meeting the state's clean energy goals established in 2019. Applications are deemed approved if the PUC does not deny them within 180 days after completion and public notice of the application.

Section 2 directs the PUC, as part of its ongoing docket regarding evaluation of the benefits of a regional transmission organization, to undertake and, by December 31, 2020, to complete a review of existing and potential additional energy resource zones for renewable resource generation development areas within Colorado. The purposes of the study are to:

• Identify planned electric transmission lines (lines) and renewable resource generation development areas within Colorado that have potential to support competition among renewable energy developers for development of renewable resource generation projects;
• Evaluate opportunities to support transitions in electricity generation by evaluating renewable resource generation opportunities located in communities with substantial economic activity and employment in the fossil fuel industry; and
• Identify opportunities for the development of renewable resources:
• For export to consumers outside of Colorado and the potential to use new and existing transmission capacity for export; and
• To be interconnected to the transmission system in a manner that promotes a reliable and integrated transmission system and shifts the state away from inefficient, radial transmission development.

Section 2 also amends the existing statute to narrow the scope of the PUC's docket inquiry, including only consideration of regional transmission organizations and removing references to energy imbalance markets, power pools, and joint tariffs.

If a potential line in Colorado has been submitted to the PUC as part of an electric resource plan based on the inclusion of planned lines in the report the PUC is required to submit as part of its docket inquiry, pursuant to existing requirements for transmission plan reporting, or under a regional transmission plan required by another applicable federal regional transmission planning requirement, section 2 allows bidders in an electric resource plan to rely on the planned line for interconnection in their proposals made pursuant to utility resource plans.

Under section 2, the PUC is directed to review clean energy project bids without such bids being burdened by the cost of planned lines. If the development of such lines would result in cost-effective generation being developed to meet the state's clean energy goals, then the PUC shall direct public utilities to submit those lines for approval and construction in order to meet the state's 2030 clean energy goals and beyond.

The federal energy regulatory commission requires each public utility transmission provider to participate in a regional transmission planning process to produce a regional transmission plan. If construction of a line in Colorado has been approved in a regional transmission plan or by another applicable federal regional transmission planning requirement, section 3 affords an incumbent electric utility owning the existing transmission facilities to which the line will connect up to 180 days after the line has been approved to give written notice to the PUC that the incumbent electric utility intends to construct, own, and maintain the line. If the incumbent electric utility does not provide notice to the PUC, the incumbent electric utility surrenders its right of first refusal to construct, own, and maintain the line. If the incumbent electric utility provides the notice, the incumbent electric utility, if it is subject to the PUC's regulation, shall, within 24 months after filing the notice, file an application with the PUC for a certificate of public convenience and necessity to construct the line.

The right of first refusal is conditioned on the incumbent electric utility having joined a regional transmission organization and exercising the right of first refusal within ten years thereafter.

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

Fiscal Note

The act creates the air quality enterprise and specifies that its revenues are exempt from the state constitution's TABOR provisions. The enterprise will conduct air quality modeling, monitoring, data assessment, and research; implement emission mitigation projects; and provide its data to the division of administration (division) and the air quality control commission (commission) in the department of public health and environment (department) to facilitate the administration of the state's air quality laws, including by facilitating the timely issuance and effective enforcement of appropriate emission permits.

The enterprise is governed by a board of directors comprised of the executive director of the department or the executive director's designee and 9 members appointed by the governor and representing the commission, fee payers, business management, and scientific researchers. The board shall establish by rule the following enterprise fees in an amount that, in aggregate, reflects the value of the services the enterprise provides:

• A fee per ton of air pollutant;
• A fee for services performed for third parties for air quality modeling, monitoring, assessment, or research;
• A fee for emission mitigation project services.

The fees are credited to the newly created air quality enterprise cash fund. Revenue collected from the fees must not exceed the following amounts:

• For state fiscal year 2021-22, $1 million;
• For state fiscal year 2022-23, $3 million;
• For state fiscal year 2023-24, $4 million; and
• For state fiscal years commencing on or after July 1, 2024, $5 million.

The enterprise is required to submit an annual report to the general assembly each December 1 detailing its activities, revenues, and the value of its business services. The enterprise is repealed on September 1, 2034, and is subject to sunset review.

For purposes of the fees for air pollutant emission notices, annual per-ton emissions, and application processing, the act:

• Removes the statutory maximum for the fees;
• Establishes the amount of the fees for state fiscal years 2020-21 and 2021-22; and
• Allows the commission to thereafter adjust the fees by rule.

Additionally, for annual per-ton emission fees and processing fees, the act specifies the purposes for which the increased revenues from those fees may be spent and requires annual reporting by the division regarding the fees.

The act appropriates $10,660 from the general fund to the department and reappropriates the money to the department of law for legal services necessary to implement the act.

(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.)

Fiscal Note

The act establishes the health insurance affordability enterprise, for purposes of section 20 of article X of the state constitution, that is authorized to assess a health insurance affordability fee (insurer fee) on certain health insurers and a special assessment (hospital assessment) on hospitals in order to:

• Provide business services to carriers that pay the insurer fee, including services to increase enrollment in health benefit plans offered by carriers across the state; increase the number of individuals who are able to purchase health benefit plans in the individual market by providing financial support for certain qualifying individuals; fund the reinsurance program that offsets the costs carriers would otherwise pay for covering consumers with high medical costs; improve the stability of the market throughout the state by providing consistent private health care coverage and reducing the movement of individuals from insured to uninsured status; reduce provider cost shifting from the individual market and the uninsured to the group market; and create a healthier risk pool for all carriers by establishing a path for consistent coverage for individuals; and
• Provide business services to hospitals, including by reducing the amount of uncompensated care provided by hospitals; reducing the need of providers to shift costs of providing uncompensated care to other payers; and expanding access to high-quality, affordable health care for low-income and uninsured residents.

The enterprise is to start assessing and collecting the insurer fee in 2021, which fee is based on a percentage of premiums collected by health insurers in the previous calendar year on health benefit plans issued in the state. The hospital assessment is a specified amount assessed and collected in the 2022 and 2023 calendar years. Money collected from the insurer fee and hospital assessment is to be deposited in the health insurance affordability cash fund (fund), which the act creates. The act also transfers an amount of premium taxes collected by the state in 2020 or later years that exceeds the amount collected in 2019, but not more than 10% of the enterprise's revenues, to the fund.

The enterprise is required to use the insurer fee, the hospital assessment, and any premium tax revenues or other money available in the fund, in accordance with the allocation specified in the act, for the following purposes:

• To provide funding for the Colorado reinsurance program;
• To provide payments to carriers to increase the affordability of health insurance on the individual market for Coloradans who receive the premium tax credit available under federal law;
• To provide subsidies for state-subsidized individual health coverage plans purchased by qualified low-income individuals who are not eligible for the premium tax credit or public assistance health care programs;
• To pay the actual administrative costs of the enterprise and the division of insurance for implementing and administering the act, limited to 3% of the enterprise's revenues; and
• To pay the costs for consumer enrollment, outreach, and education activities regarding health care coverage.

The enterprise is governed by an 11-member board composed of the executive director of the Colorado health benefit exchange and the commissioner of insurance or their designees and 9 members appointed by the governor and representing various aspect of the health care industry and health care consumers.

With regard to the Colorado reinsurance program and enterprise, the act:

• Incorporates the reinsurance program enterprise within the health insurance affordability enterprise;
• Eliminates funding for the reinsurance program from special assessments on hospitals and health insurers, excess premium tax revenues, and specified transfers from the state general fund and instead allocates a portion of the health insurance affordability enterprise revenues to the reinsurance program annually; and
• Extends the reinsurance program, subject to federal approval of a new or extended state innovation waiver to enable the state to operate the reinsurance program and access federal funding for the program.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

The bill provides that, for purposes of the "Workers' Compensation Act of Colorado", if an essential worker who works outside of the home contracts COVID-19, the contraction is:

• Presumed to have arisen out of and in the course of employment; and
• A compensable accident, injury, or occupational disease.

An essential worker is considered to have contracted COVID-19 if the worker tests positive for the virus that causes COVID-19, is diagnosed with COVID-19 by a licensed physician, or has COVID-19 listed as the cause of death on the worker's death certificate.

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

Fiscal Note

The act only takes effect if the voters statewide approve the repeal of constitutional provisions related to property tax assessment rates set forth in Senate Concurrent Resolution 20-001. Beginning with the property tax year that commences on January 1, 2020, the act creates a moratorium on changing property tax assessment rates. The act also makes conforming amendments to reflect the repealed constitutional provisions.

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

Fiscal Note

The "Immigrant Tenant Protection Act" (Act) is created, which prohibits a landlord from engaging in certain housing practices or related activities based on the immigration or citizenship status of a tenant. A tenant who is aggrieved by a landlord's violation of the Act may bring a civil action and seek certain remedies.

In a civil action brought under the Act, a tenant's immigration or citizenship status is not relevant, and inquiry into the tenant's status is not permitted unless:

• The claims raised by the tenant place the tenant's immigration or citizenship status in contention; or
• The person seeking to make the inquiry demonstrates by clear and convincing evidence that the inquiry is necessary in order to comply with federal law.
  (Note: This summary applies to this bill as enacted.)

Fiscal Note

Property tax in Colorado is generally equal to the actual value of property multiplied by an assessment rate, and the resulting assessed value is multiplied by each applicable local government's mill levy. The assessment rate for residential real property is established by the general assembly in accordance with a provision of the state constitution that is commonly known as the "Gallagher Amendment" and is limited by section 20 of article X of the state constitution (TABOR). Under the Gallagher Amendment, there are 2 relevant classes of property for the purposes of determining the residential assessment rate: residential property and nonresidential property. The assessment rate for most nonresidential property is fixed in the state constitution at 29%. The residential assessment rate was initially set at 21%, but the rate has been adjusted prior to each 2-year reassessment cycle to keep the percentage of aggregate statewide assessed value attributable to residential property the same as it was in the year immediately preceding the new reassessment cycle. Currently, the residential assessment rate is 7.15%.

The concurrent resolution repeals the Gallagher Amendment so that the general assembly will no longer be required to establish the residential assessment rate based on the formula expressed in the Gallagher Amendment. The resolution also repeals the reference to the residential rate of 21%, which last applied in 1986 prior to the first adjustment required by the Gallagher Amendment. Finally, the resolution repeals the 29% assessment rate that applies for all nonresidential property, excluding producing mines and lands or leaseholds producing oil or gas.

(Note: This summary applies to this concurrent resolution as adopted.)

Fiscal Note