Bill Tracker

The bill clarifies that it is legal to invest public funds in any nonsubordinated corporate or bank security that:

• Is denominated in United States dollars;
• Matures within 3 years from the date of settlement;
• At the time of purchase carries at least 2 credit ratings fromany of the nationally recognized statistical rating organizations; and
• Is not rated below "A1, P1, or F1" or their equivalents byeither rating if the security is a money market instrument such as commercial paper or bankers' acceptance or is not rated below "AA- or Aa3" or their equivalents by either rating if the security is any other kind of security.
The bill also prohibits the investment of public funds in a subordinated security issued by or guaranteed by one of several specified federally

created and controlled entities.

The bill extends the funding from the operational account of the severance tax trust fund used for providing energy-related assistance to low-income households through direct bill payment assistance and home energy-efficiency improvements from only state fiscal year 2012-13 to state fiscal years 2012-13 through 2018-19.

The bill exempts business personal property that is purchased at any time during the 2013 calendar year from the levy and collection of property tax.

The bill establishes the start-up Colorado technology transfer grant program (program). The purpose of the program is provide grants of up to $750,000 to offices of technology transfer to help further the commercialization of technology projects and discoveries in Colorado, which will, in turn, lead to the creation of Colorado jobs. The start-up Colorado technology transfer cash fund, not to exceed $5 million, is also created. The program is repealed, effective July 1, 2015.

Wood and wood products from trees killed or infested in Colorado by the mountain pine beetle are currently exempt from sales and use tax.

The exemption expires on July 1, 2013.

The bill specifies that the current exemption includes trees killed or infested in Colorado by the spruce beetle and extends the expiration of the exemption to July 1, 2020.

The bill extends the period for which state income tax return forms shall include a line whereby individual taxpayers may make a voluntary contribution to the nongame and endangered wildlife fund.

The bill requires the department of higher education (department), in consultation with the department of labor, the department of regulatory agencies, and any other entity the department deems appropriate, to produce an annual report regarding state workforce projections and education credential production. The report will project the workforce needs of the state for the next 3 years and the expected production of degrees and certificates over the next 3 years. The report will show the workforce needs that are not being met by state degree and certificate production and identify institutions, public or private, that can address those workforce needs through new programs or expansion of existing ones. Institutions of higher education are encouraged to use the report in master planning for its course of study offerings. The bill repeals July 1, 2016.

The bill creates the economic impact rating system advisory board (advisory board) in the office of economic development (office). The board consists of 11 voting members with specific qualifications appointed by the governor and 5 ex officio nonvoting members. The advisory board is charged with analyzing the feasibility of establishing an economic impact rating system (system), which measures a company's economic impact in the state. The advisory board is required to annually report to legislative committees on the status of the system.

If the system is feasible, the advisory board will assist the office in the development of the system. The system must be designed to allow a company to input information about its operations and connections to the state, and the information will be used to generate a state economic impact rating. To the extent possible, the office is required to design the system so that a company may access it on-line. The office is required to notify the executive director of the department of personnel when an operational system has been developed.

Once the system is operational, the state economic impact rating is to be used for proposals solicited through a request for proposals. A state purchasing director or the head of the purchasing agency is required to use the state economic impact rating as an evaluation factor in determining which offeror's proposal is most advantageous to the state.

An offeror that responds to a request for proposals is not required to submit its state economic impact rating.

The only source of funding for the system is from the newly created economic impact rating system cash fund, which consists of gifts, grants, or donations. Moneys in the fund are continuously appropriated to the office for the system.

The bill requires the staff of the legislative council to designate a 5-day period following the introduction of new legislation during which Colorado businesses may submit comments regarding the business fiscal impact of the new legislation. Upon the expiration of the 5-day period, the staff of the legislative council is required to compile and summarize the comments and prepare a business fiscal impact statement. The statement will accompany the fiscal note.

The current unemployment insurance premium rate for new employers is 0.0170. In legislation enacted in 2011 (House Bill 11-1088), once solvency in the unemployment insurance fund is achieved, the rate for new employers would increase. This bill eliminates this rate increase and keeps the rate at 0.0170 after solvency in the unemployment insurance fund is reached.

For the 2012-13 and 2013-14 state fiscal years, the bill requires the general assembly to appropriate moneys, in amounts to match federal funds but not to exceed $300,000 each year, to the Colorado office of economic development (office). The state director of small business development centers (SBDCs) in the office may expend up to 15% of the appropriated moneys to increase awareness of SBDCs and shall equitably distribute the remainder to SBDCs across the state and, where possible, to reestablish SBDCs that have closed since January 1, 2007. The office is required to report to the general assembly regarding the disbursement and the measurable results of the use of those moneys.

Section 2 of the bill:

• Defines a creative business activity as an activity thatgenerates income for the person conducting it and that the creative industries division of the Colorado office of economic development (division) determines involves the design, creation, production, sale, exhibition, or performance of artistic, literary, musical, architectural, design, or other creative work product or otherwise directly relates to such work product; and
• For income tax years commencing on or after January 1,2013, but before January 1, 2018, allows a person who earns income from engaging in creative business activities within a creative district certified by the division to claim a 50% income tax credit against the income tax liability attributable to income derived from the activities.

Section 3 of the bill reduces the rate of sales tax imposed on sales made within a creative district on and after January 1, 2013, but before January 1, 2018, from 2.9% to 1.45%; except that, for a creative district certified on or after November 1, 2012, the reduced rate does not apply until the first day of the third month following the month of certification.

The bill creates an economic gardening pilot program (pilot program) in the Colorado office of economic development (office). Under the pilot program, the office contracts with entities that will provide management and technical assistance to the eligible businesses participating in the pilot program. The participating businesses are selected by the entities from among nominees forwarded by economic gardening partnerships. The number of participating businesses in the state is capped at 49, or 7 in each of 7 economic gardening regions in the state, in equal allotments per region.

The office is authorized to accept gifts, grants, and donations to finance costs incurred in establishing the pilot program.

The pilot program terminates in 2020, and the office's duty to report annually on the results of the pilot program to the general assembly expires in 2022.

The bill prohibits an employer, employer's agent, employer's representative, or employer's designee (referred to as "employer") from publishing, in print or on the internet, an advertisement for any job vacancy that contains a provision that states:

• The qualifications for a job include current employment;
• An application for employment will not be considered ifthe applicant is currently unemployed; or
• Only applications submitted by job applicants who arecurrently employed will be considered.

An employer who violates the provisions of the bill is subject to a civil penalty. The bill also clarifies that the prohibitions regarding advertising do not establish a private cause of action by an aggrieved person.

The bill prohibits a public entity from operating, or contracting with a private entity to operate, for public use any truck stop, fueling station, or convenience store on or near public land, state highways, toll roads, or any other similar infrastructure supported by any state revenues.

The bill does not prohibit a public entity from maintaining existing interstate public rest areas or constructing new interstate public rest areas as allowed by law. The bill also specifies that the prohibition is not retroactive and does not apply to restaurants or service centers related to a golf course or any souvenir shops that are on or near such public land, state highways, toll roads, or such similar infrastructure.

The bill authorizes the governing body of a municipality (governing body) to designate any area within such municipality as a neighborhood revitalization area if the area satisfies certain requirements and the rehabilitation, conservation, or redevelopment of the area is necessary to protect the health, safety, or welfare of the residents of the municipality. The governing body may also declare a building that is located outside the boundaries of a neighborhood revitalization area to be a dilapidated structure if the structure satisfies certain requirements.

Prior to designating an area as a neighborhood revitalization area or a structure as a dilapidated structure, the bill requires the governing body to adopt a plan for the revitalization of the area or designation of a dilapidated structure. The bill includes the required components of the plan. The bill also specifies certain actions the governing body must undertake in order to designate a building as a dilapidated structure. Prior to adopting a plan, the governing body must call and hold a hearing on the proposal. Following the hearing, the governing body may adopt the plan.

Following adoption of a plan, the bill requires the governing body to create a neighborhood revitalization fund to finance the redevelopment of designated revitalization areas and dilapidated structures and to provide property tax rebates authorized by the bill.

Any incremental increase in property taxes levied by the municipality resulting from improvements by a taxpayer to property in a neighborhood revitalization area or to a dilapidated structure may be credited to the municipality's neighborhood revitalization fund for the purpose of returning all or a part of the property tax increment to the taxpayer in the form of a rebate. Upon approval of an application for a rebate, the municipality is required to credit to the taxpayer all or a part of the property tax increment resulting from the improvements.

The bill specifies that no portion of the increment that may be claimed as a rebate by a taxpayer may include any portion of such increment that would otherwise be credited to a school district in the absence of the creation of a neighborhood revitalization area. Nothing in the bill is intended nor shall it be construed to affect the state's share of a school district's total program for any particular budget year as such share may be set in the absence of the creation of a neighborhood revitalization area.

The bill authorizes any 2 or more municipalities or a municipality and another local government to enter into an intergovernmental agreement to exercise jointly the powers and duties authorized by the bill.

The bill clarifies that its provisions are not intended to be construed to prevent municipalities from enacting and enforcing additional laws and rules on the same subject that are not in conflict with those contained in the bill.

The bill tasks the Colorado office of economic development (office) with fostering a regional approach to economic development. A region is defined as a state planning and management region utilized by the department of local affairs. Currently, there are 14 such regions in the state.

The office must create a new, or assist in expanding an existing, regional development partnership (partnership) in each region. A partnership consists of representatives of the region's businesses and industries, economic and workforce development entities, educational institutions, nonprofit organizations, local governmental bodies, and federal, tribal, and state regulatory authorities.

The bill designates regional economic development partnership boards (partnership boards) as the entities that will develop 3-year regional economic development plans, work with partnerships to implement the plans, and provide annual progress reports regarding such implementation to the newly created state regional economic development council (council).

The council, which consists of one representative from each partnership and the regional development director of the office, meets periodically with the office and the Colorado economic development commission and annually reports to the governor regarding the progress reports.

After January 1, 2013, each school district and each district charter school shall ensure that each project to construct or significantly redesign a building or structure, at a minimum, satisfies one of the following conditions:

• The design and construction plans for the project ensurethat the resulting building or structure will qualify for the federal energy star label and, upon completion of the project, the school district or district charter school shall acquire such a rating for the resulting building or structure;
• The school district or district charter school shall performthe project to achieve the highest performance certification attainable as certified by an independent third party pursuant to the high performance standard certification program adopted by the state architect;
• The school district or district charter school shall consult with the governor's energy office concerning the best building practices for the construction or redesign project, which consultation shall commence before the commencement of any actual building or construction and shall continue until the completion of the project; or
• The school district or district charter school shall designate the execution of the project to a design and construction team that includes at least one person who possesses a professional accreditation in energy-efficient design practices and who provides professional technical assistance to the school district or district charter school to facilitate the project.

The bill makes several changes to the laws governing charitable solicitations. Section 1 of the bill excludes grant writers from the definition of "paid solicitor" unless the grant writer's compensation is computed on the basis of funds raised from the grant. Section 2 specifies that fundraising on behalf of a named individual is not a charitable appeal and therefore the fundraiser does not have to register with the secretary of state.

In addition, section 2 eliminates the need for a charity to request a 3-month extension for the filing of its initial or annual financial report with the secretary of state if the charity has filed for an extension with the internal revenue service.

Section 3 clarifies that only monetary contributions must be deposited with a financial institution. Section 4 requires paid solicitors, near the beginning of a telephone solicitation, to disclose that a contribution is not tax-deductible, if that is the case, before soliciting the donation and to state their full and complete name.

The bill requires any new enterprise zone designation to meet at least 2 of the criteria currently listed in statute, rather than at least one. Additionally, the bill requires the director of the Colorado office of economic development (director) and the Colorado economic development commission (commission) to review the enterprise zone designations at least once every 5 years to ensure that the existing zones continue to meet those criteria. As a part of each 5-year review, the director and the commission are required to analyze the annual documentation of efforts required by law. The bill allows the director and the commission to make changes or terminate existing enterprise zone designations based on the review. If it is determined that existing enterprise zone designations need to change or be terminated, the change or termination shall not be undertaken in a high unemployment period. The bill requires any changes or terminations to be reported to the legislative audit committee and the finance committees of the house of representatives and the senate. The bill allows the director and the commission to make recommendations for improved or different criteria to be used for the designation of an enterprise zone. Any recommendations are required to be presented to the legislative audit committee in conjunction with the annual presentation already required by law and reported to the finance committees of the house of representatives and the senate. The bill requires the director of the Colorado economic development commission to notify the state auditor when the review is completed. The state auditor is then required to commence a performance audit of the review undertaken and to submit a report to the governor and general assembly. The bill also requires all enterprise zones to comply with the requirement to submit annual documentation of efforts to improve economic conditions.

The bill:

• For the income tax years commencing on or after January 1, 2014, limits the amount of an income tax credit that may be claimed in an income tax year for qualified investments in an enterprise zone to the sum of the taxpayer's actual tax liability for the income tax year up to $5,000, plus 50% of any portion of the tax liability for the income tax year that exceeds $5,000 up to a maximum of $500,000.
• Allows a taxpayer to appeal to the Colorado economic development commission (commission) for permission to claim a credit in excess of the limit specified in the bill.
• Requires the commission to annually post information regarding claimed investment tax credits on its web site or the Colorado office of economic development's web site.
• Requires the commission to provide the department of revenue with information related to taxpayers receiving any credits allowed under the "Urban and Rural Enterprise Zone Act".

For grants claimed for 2013, the bill modifies the amounts of the real property tax expense and heat or fuel expenses assistance grants for low-income seniors and disabled individuals and the maximum income limits for grant qualification in a manner that:

• Increases grant amounts for individuals who earn morethan $10,040 and married couples who earn more than $13,932; and
• Increases the income limits for grant eligibility from$12,313 to $28,000 for individuals and from $16,205 to $32,000 for married couples; and
• Establishes flat minimum grant amounts for any eligibleindividual or married couple of the lesser of $227 or the actual amount of property tax paid for the real property tax expense assistance grant and $73 for the heat or fuel expenses assistance grant.

The bill specifies that sellers of electricity as fuel for alternative fuel vehicles are not regulated as public utilities. Generating electricity for sale as fuel for alternative fuel vehicles also does not make the seller subject to regulation as a public utility if the seller generates the electricity on the property where the fueling facilities are located and the electricity is generated from a renewable resource.

Public utilities must make commercially reasonable efforts to provide connection of electric and natural gas service to alternative fuel vehicle charging facilities. A public utility's right to make unregulated operating expenditures and investments via an unregulated subsidiary with regard to alternative fuel vehicle charging facilities is not limited.

For the income tax years commencing on or after January 1, 2013, the bill limits the amount of an income tax credit that may be claimed in an income tax year for qualified investments in an enterprise zone. The limit is the lesser of:

• The taxpayer's actual tax liability for the income tax year tothe extent such liability does not exceed $5,000, plus 50% of any portion of the tax liability for the income tax year that exceeds $5,000; or ! $250,000.
• $250,000.

The bill creates a legislative interim committee to study, during the 2012 interim, issues related to small business financing in Colorado. The bill specifically requires the interim committee to meet with small business lenders and principals of small businesses to determine whether there is an unfilled need for capital and loans that discourages business expansion in Colorado. The bill also tasks the interim committee with assessing whether changes could be made in Colorado laws affecting small business financing to better enable the formation of business capital.

The bill directs the general assembly to appropriate additional moneys for economic development programs administered by the Colorado office of economic development (office). Specifically, the bill creates the economic stability cash fund (fund) that the office may use to help fund economic development programs during times of economic downturn. Beginning in the 2014-15 fiscal year, the general assembly is required to make an annual appropriation to the fund, subject to available appropriations.

In addition, beginning in the 2014-15 fiscal year, the general assembly is required to make an annual appropriation to the office, subject to available appropriations, for the purpose of funding economic development programs that are administered by the office.

The moneys appropriated to the fund and to the office are to supplement, rather than supplant, any other appropriations that the general assembly makes for economic development programs for the applicable fiscal years.

The bill changes the name of the governor's energy office to the Colorado office of energy development (office). As part of the reorganization of the office, the bill changes the mission of the office to:

• Promoting all Colorado energy;
• Promoting economic development in Colorado throughenergy-market advances that create jobs;
• Encouraging Colorado-based clean and innovative energysolutions that include traditional and renewable energy sources;
• Increasing energy security;
• Lowering long-term consumer costs; and! Protecting the environment.
• Protecting the environment.

The bill aligns the duties of the office with the new mission of the office.

The bill requires the office to obtain legislative approval prior to changing office policies related to its strategic plan, the definition of "renewable energy", energy transmission, or any policy that could negatively impact the use of traditional energy sources.

The bill creates the renewable energy fund and specifies that the fund be used by the office to work with communities, utilities, private and public organizations, and individuals to promote:

• The renewable energy standard;
• Renewable energy such as wind, solar, biomass,hydroelectricity, thermal gasification, and geothermal;
• Energy efficiency technologies;
• Cleaner technologies by utilizing traditionalColorado-sourced energy; and ! New energy technologies.
• New energy technologies.

The bill changes the name of the clean energy fund to the innovative energy fund, aligns the purposes of that fund with the new mission of the office, limits the expenditures from the fund for those projects related to the severance of minerals subject to taxation under state law, and transfers moneys to the innovative energy fund from the perpetual base account of the severance tax trust fund.

The bill repeals:

• The wind for schools grant program;
• The Colorado clean energy development authority; and
• The green truck grant program.

The bill ends the office's role as a consultant to the reenergize Colorado program and the geothermal resource leasing fund.

The bill changes the name of the clean energy improvement debt reserve fund to the energy improvement debt reserve fund and includes improvements to the efficiency of traditional energy fixtures as part of the definition of "renewable energy improvement" for purposes of local improvement districts. The bill ends the authority of the office to use up to 5% of the moneys in the Colorado office of energy development low-income energy assistance fund for planning, overseeing, and evaluating the program to improve the energy efficiency of low-income households.

Finally, the bill terminates the office on July 1, 2018, unless extended through the sunset review process.

In order to retain and grow existing businesses in the state, the bill directs the Colorado office of economic development (office) to develop and administer the Colorado business retention and expansion program under the office's statewide economic development plan. The bill describes the office's specific duties under the program, including the requirement that the office annually report on the program to the general assembly.

The bill creates the "Colorado Cottage Foods Act", exempting small producers from the licensing requirements placed on retail food establishments and requiring producers to be certified in safe food handling and processing.

The bill limits the liability of food banks that distribute food produced pursuant to the "Colorado Cottage Foods Act". The bill also limits the liability of schools and nonprofit organizations when their kitchens are used by producers to prepare goods for sale directly to consumers.

The bill also exempts a person who produces and sells less than 250 dozen eggs per month on the premises at which the eggs are produced or at a farmer's market or similar venue from the licensing requirements for sellers of eggs.

The bill establishes the venture capital advisory board. The advisory board is required to create a report regarding venture capital investment in the state, provide the report to the general assembly, and present the report to the economic and business development committee of the house of representatives and the business, labor, and technology committee of the senate. A copy of the report will be available on the web site maintained by the Colorado economic development commission.

The bill requires the staff of the legislative council to designate a 5-day period following the introduction of new legislation or the notice of proposed rule-making during which Colorado businesses may submit comments regarding the business fiscal impact of the new legislation or rule. Upon the expiration of the period, the staff of the legislative council is required to prepare a notice of reported business fiscal impact (notice) setting forth the range of fiscal impacts contained in the comments. For legislation, the notice will accompany the fiscal note. For rules, the notice will be forwarded to the executive director of the principal department seeking to promulgate the rule and posted on the staff of the legislative council's official web site.

The bill amends the definition of "food" used in state sales tax laws to ensure that the treatment for sales tax purposes of a food product sold for domestic home consumption by a grocery store, supermarket, or convenience store does not change solely because the store sells the food product or markets the food product for sale as a convenience food.

The bill modifies certain provisions of the law governing county and city and county local improvement districts (districts) to make the provisions consistent with the law governing improvement districts. Section 1 of the bill allows a district in which a sales tax is levied to include noncontiguous areas.

Section 2 allows a district to use sales tax revenues for the organization, promotion, marketing, and management of public events. It further specifies procedures for a property owner to petition to be included in or excluded from a district.

Current law limits the number of regional tourism projects that the Colorado economic development commission may approve to 2 initial projects plus 2 additional projects in each of the calendar years following the year in which the commission approves 2 initial projects. The bill eliminates the limit and specifies that a pending application must be approved or disapproved before the commission may consider new applications submitted subject to new application submission requirements or new application review procedures.

The bill creates definitions of "broadband" and "broadband access". It also requires the public utilities commission, in collaboration with the office of information technology and other broadband providers, to make recommendations regarding a strategy to connect more Coloradans in noncompetitive unserved and underserved markets to broadband. The commission and the office of information technology, using existing office broadband data and mapping, must identify noncompetitive unserved and underserved areas of the state no later than January 1, 2013.

The bill directs the Colorado office of economic development (office) to create, by 2014, an electronic database of local businesses in Colorado. Such businesses are included in the database upon a business submitting certain information about the business, certifying that the business is a local business, and filing a fee with the office. A person may access the database free of charge.

The bill directs the Colorado office of economic development (office) to develop a strategy to grow key industries located in the state. In creating the strategy, the office will facilitate the creation of, and collaborate with, a key industry network working group (working group), comprised of various stakeholders, for each of Colorado's key industries. A working group is tasked with developing and implementing a 3-year business plan to grow its key industry, which business plan will be incorporated into the office's key industries strategy. The office must annually report its progress to the general assembly.

The bill creates a rebuttable presumption that information concerning a public hazard (information) must be disclosed in a court action. A party objecting to the disclosure can seek a protective order to limit disclosure if the court finds, by clear and convincing evidence, that certain factors have been met, including that the information is not relevant to the public hazard and is not useful to members of the public in protecting themselves from injury resulting from the public hazard.

In 1987, article 15 of title 40, Colorado Revised Statutes, governing intrastate telecommunications services, was repealed and reenacted. Since then, the statutes have been amended to accommodate technological changes and increased competition in many segments of the communications industry but, for the most part, retain the regulatory structure that developed in an era of traditional voice-centric wireline service.

The bill makes substantial revisions to article 15 to reflect current conditions and in anticipation of future evolution of the market, including:

• Directing the Colorado public utilities commission toeliminate price controls for all retail services except basic local exchange service provided to residential customers and emergency service, and to periodically reexamine whether competition has advanced sufficiently in particular geographic areas so that price controls on these services may also be eliminated;
• Requiring local exchange carriers to adjust their rates forswitched access service over a period of time until their intrastate rates match their interstate rates on file with the federal communications commission; and
• Beginning the process of reducing and eventuallyeliminating the state's high cost support mechanism (HCSM), which subsidized the construction of land lines and other infrastructure when those methods were the only methods available to bring telecommunications services to rural areas of the state. The bill directs part of the revenue freed up by reductions in the HCSM to a broadband capital investment fund administered by the office of information technology.