Bill Tracker

Under current law, if any person so requests, a state administrative agency must issue a regulatory analysis of any proposed rule at least 15 days prior to a rule-making hearing. The bill requires agencies to conduct the analysis for every proposed rule, regardless of whether an analysis has been requested. The bill also requires each regulatory analysis to include information on the effect of the proposed rule on jobs in Colorado. If the agency specifies that the proposed rule only makes grammatical, format, or organizational changes and makes no substantive changes, an analysis is not required. The bill also states that the general assembly determines that amendments to the law made by this bill can be implemented within existing appropriations and, therefore, no separate appropriation of state moneys or allocation of full time equivalent state employees is necessary to carry out the purposes of the bill.

An executive branch agency of state government considering adopting rules shall establish a representative group of participants with an interest in the subject of the rule-making to submit views or otherwise participate in conferences or to participate in the rule-making hearing on the proposals under consideration. If the agency convenes a representative group prior to issuing a notice of proposed rule-making, the agency shall include the group participants in the notice of the actual rule-making hearing.

If an agency proposes a rule to increase fees or fines, at the time of giving notice of proposed rule-making under the State Administrative Procedure Act or within 10 days following the adoption of an emergency or temporary rule that increases fees or fines, the agency shall send a written or electronic notification to each member of the general assembly notifying the members about the proposed rule or about the adoption of an emergency rule and specifying the amount of the increase in the fees or fines.

Principal departments of state government shall submit a departmental regulatory agenda each November 1 to the legislative council staff for distribution to the applicable oversight committee of reference of the general assembly. The departmental regulatory agenda shall include:

• A list of new rules or revisions to existing rules that thedepartment expects to propose during the next calendar year;
• The statutory or other basis for adoption of the proposed rules;
• The purpose of the proposed rules;
• The contemplated schedule for adoption of the rules;
• An identification and listing of persons or parties that may be affected positively or negatively by the rules; and
• An update and brief summary of all permanent and temporaryrules actually adopted since the previous departmental regulatory agenda was filed.
Each principal department shall present its departmental regulatory agenda to the applicable oversight committee of reference of the general assembly during the departmental presentations on strategic plans and performance-based budgeting held during the first 15 days of the

legislative session.

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 clarifies that the current exemption from the "Colorado Open Records Act" for investigative files applies to those files compiled for any civil, administrative, or criminal law enforcement purpose.

The bill allows a board of county commissioners for a particular county to exclude, by resolution, any or all parts of the county from the enhanced motor vehicle emissions program area if the excluded part of the county does not violate any national ambient air quality standard for carbon monoxide or ozone as established by the environmental protection agency.

The bill establishes a nonseverable wind energy right in real property.

The bill allows the board of directors of the grand valley drainage district to adopt a resolution exempting the district and the district's maintenance efforts from excavation requirements.

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 bill limits the discretion of a state executive branch agency to impose a fine for a minor violation of a state law or a state agency rule by prohibiting an agency from:

• Imposing a fine for a minor violation that is aninspection-related violation if the violator made a reasonable good faith effort to comply with the state law or state agency rule that it violated unless:
  • The state agency provides written notice of theviolation to the violator within 20 business days of the date of the inspection; and
  • The violator fails to remedy the violation within 20business days of receiving the notice.
• Imposing a fine for a minor violation that is a paperworkviolation unless:
  • The state agency provides written notice of theviolation to the violator within 90 business days after the violator committed the violation by missing a filing deadline or filing an erroneous form or other filing; and
  • The violator fails to remedy the violation within 90business days of receiving the notice of the violation.

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.

Beginning in 2013, listing contracts, contracts of sale, and sellers' property disclosures for real estate must include a notice regarding whether the mineral estate has been severed from the surface estate and a surface owner's right of first refusal to purchase the mineral estate when the taxes on the mineral estate have not been paid. The seller must provide to the buyer a copy of each instrument that severed the mineral estate, the name and contact information of the owner of the mineral estate, and the name and contact information of any known current lessees of the mineral estate, if that information is available. The seller must also indicate whether mineral exploration or development on the real property is or will be using water that would otherwise be available to the buyer as an incident of ownership of the real property.

The bill modifies the regulation of the fuel products by the division of oil and public safety (division) in the department of labor and employment as follows:

• Section 1 of the bill broadens the duties of the director of the division (director) to include the regulation of fuel products other than liquids.
• Section 2 includes "natural gas" in the definition of "fuel products".

Section 3 specifies that natural gas is subject to inspection.

• Section 3 specifies that natural gas is subject to inspection.
• Section 4 requires liquefied natural gas and compressed natural gas to comply with certain national standards.
• Section 5 requires a person who ships natural gas into thestate to notify the director.
• Section 6 requires natural gas to be subject to the same environmental response surcharge as liquefied petroleum gas and modifies how the surcharge is levied on liquefied petroleum gas. Section 6 also permits the fees to be used for inspections related to natural gas.
• Sections 7, 8, 10, 11, 12, and 13 make conforming amendments related to the fact that natural gas is not a liquid measured in gallons.

Section 9 establishes labeling standards for natural gas.

• Section 9 establishes labeling standards for natural gas.
The bill also modifies the collection of the tax on special fuel as follows:
• Section 14 modifies the definition of "special fuel" to include "electricity". As a result, "electricity" used to propel a motor vehicle on a highway will be subject to the tax on special fuel. Section 14 also modifies the definition of "distributor" to include certain persons who sell or use natural gas and electricity, but exclude a person who sells to a home user.
• Section 15 repeals the annual license tax fee that is chargedin lieu of the special fuel tax and the related decal system, so that liquefied petroleum gas and natural gas will be subject to the special fuel tax.
• Section 16 makes a conforming amendment to accommodate the elimination of the decal system.
• Section 17 requires a person who is not a licensed  distributor to pay the special fuel tax, based on a metered reading, and file a return related to liquefied petroleum gas, natural gas, or electricity if such tax has not been paid by a distributor. This requirement will apply to a person who receives the special fuel in his or her home. Section 17 also requires the division to establish minium standards for the meters.
• Section 18 clarifies how a person who pays sales tax onspecial fuel that is subject to the special fuel tax may apply for a refund.

On or after July 1, 2014, an oil and gas operator may not use, store, or dispose of hydraulic fracturing fluids or flow-back from a hydraulic fracturing treatment in an open pit and must use a closed-loop system for hydraulic fracturing treatments. However, the oil and gas conservation commission may approve the use of open pits where the commission determines there is no risk to occupied structures or water sources, and operators can use open pits if the fluids are clean enough to discharge directly into state waters without a permit.

For newly adopted federal laws, rules, and regulations (regulations) that expressly or implicitly allow a state to opt out of the regulations, the bill encourages a Colorado state agency (agency) that is potentially impacted by, subject to, or charged with administering the rule to seek such waiver. An agency is required to report annually to the general assembly regarding the agency's opportunities for and attempts at obtaining such waivers.

Section 1 of the bill specifies that the Colorado oil and gas conservation commission has authority to require:

• Increased setbacks from wells that will be treated withhydraulic fracturing. The commission must require setbacks of at least 1,000 feet from any school or residence but allow a surface owner who is not located in an urban area to request a shorter setback than would otherwise apply.
• That best management practices for new technologies beestablished by rule prior to use of the new technologies.
Section 2 includes the owners of land overlying that portion of a geologic formation within which horizontal hydraulic fracturing is conducted within the term "surface owner."

Under current law, a distributor or transporter is entitled to a refund or credit for the tax paid or accrued on gasoline or special fuel that is lost or destroyed by fire, lightning, flood, windstorm, explosion, accident, or other cause beyond the control of the distributor or transporter of the gasoline or special fuel. In order to claim this refund or credit, the distributor or transporter is required to notify the department of revenue (department) within 7 days of the loss or destruction.

The bill increases the deadline for notifying the department to 30 days from the loss or destruction.

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".

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 clarifies that oil and gas operations are subject to local governments' authority, as well as the authority of the oil and gas conservation commission. The bill establishes that oil and gas operations are subject to the same local government control as is established for other mineral extractions.

The bill creates the "Employment Opportunity Act", which specifies the purposes for which consumer credit information (i.e., consumer credit reports and credit scores) can be used by an employer or potential employer (jointly referred to as "employer"). Specifically, the bill:

• Prohibits an employer's use of consumer credit informationfor employment purposes if the information is unrelated to the job;
• Requires an employer to disclose to an employee orapplicant for employment (jointly, "employee") when the employer uses the employee's consumer credit information to take adverse action against him or her and the particular credit information upon which the employer relied;
• Authorizes an employee aggrieved by a violation of theabove provisions to bring suit for an injunction, damages, or both; and
• Requires the department of labor and employment toenforce the laws related to employer use of consumer credit information.

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 requires the committee on legal services to appoint a task force (COLS task force) to review the state's regulatory system and make recommendations related to whether:

• The current system creates a regulatory advantage to onesegment of an industry at the expense of another;
• The existing availability of cost-benefit analysis needsstrengthening in order to produce meaningful measures of adverse impacts on consumers and private industry;
• The enforcement practices of the current system, if any,create perverse incentives for unreasonably punitive fines and penalties on private parties;
• Economic conditions merit a downsizing of the regulatorybody with resulting reduction of financial compliance costs;
• A particular regulated industry is regulated in an outmodedform of regulation that is no longer advisable;
• Currently regulated industries are regulated by othermeans;
• Continued regulation of the regulated industry is justified;
• The current system regulates fewer businesses than it did ina previous state fiscal year; and
• Compliance costs could be reduced or eliminated at no riskto the public welfare or environment and at no risk of creating or protecting a monopoly.
The COLS task force must report to the committee on legal services by January 1, 2013, and the committee on legal services must then recommend to the general assembly such legislation regarding the findings and recommendations of the COLS task force as may be necessary. The bill also addresses the circumstances under which staff

assistance will be available for the COLS task force.

Legislative Audit Committee. The bill implements the recommendations of the legislative audit committee regarding the department of revenue's audits of facilities that conduct automobile emission inspections. Specifically, federal environmental protection agency rules require such inspections at least twice per year while current state law generally requires them every 90 days; the bill conforms state law with federal law. Current law requires the department to conduct performance audits on each test lane at enhanced inspection centers and equipment audits on each lane at all types of inspection centers; the bill requires such audits to be conducted at least twice per year on each lane at the facilities. Finally, the bill authorizes the department to conduct risk-based audits for stations and facilities employing inspectors or mechanics suspected of violating rules.

The bill prohibits the water quality control commission from adopting numeric criteria for a water control standard or control regulation regarding nitrogen or phosphorus.

The bill creates an additional rule review process for rules adopted on or after November 1, 2011, that are determined by the staff of the committee on legal services (the office of legislative legal services) to be related to legislation enacted during any legislative session, regular or special, commencing on or after January 1, 2011. The rules are to be reviewed by a committee of reference of the general assembly. The legislative council staff determines what committee of reference appears to be the most appropriate based on the principal departments assigned to each committee of reference as specified in legislative rule. The committees of reference must review all assigned rules no later than the 45th day of the legislative session. Each committee of reference may establish its own procedures for the review, but the bill sets forth minimum requirements for at least one public meeting. The bill allows the committees of reference to disapprove a rule for any reason, but provides the committees of reference some minimum considerations.

The bill requires that the committees of reference recommend to the general assembly a bill regarding the committee's determinations related to the expiration or postponement of the expiration of rules assigned to and reviewed by the committee of reference.

The bill also requires the posting of a completed cost-benefit analysis on the official web sites of the agencies completing the cost-benefit analysis and the official web site of the department of regulatory agencies.

The bill changes the laws regarding the formation of a federal mineral lease district, including changes to the district's and district board of director's powers, in order for the district to be more autonomous from the county creating the district. The bill specifies that a federal mineral lease district is an independent body politic, separate and distinct from the county that creates it. Powers of the district and the board of directors are further enumerated. The bill also establishes how a district may be dissolved and clarifies the membership and terms of the board of directors. The bill specifies that the district may reserve all or a portion of the federal mineral lease funding for use in subsequent years in order to maximize the usefulness of the direct or indirect distribution of funding for the areas socially or economically impacted by the development, processing, or energy conversion of fuels and minerals leased under a federal act.

Legislative Audit Committee. The bill repeals the rapid screen program for identifying high-emitting motor vehicles.

Under current law, the amount of the exemption from property tax for business personal property listed on a single personal property schedule is $5,500 for the current property tax year cycle, $7,000 for the next property tax year cycle, and an inflation-adjusted amount for each property tax year cycle thereafter. The bill increases the exemption to $14,000 for the next property tax year cycle, which in turn increases the future inflation-adjusted amount of the exemption.

For a period of 10 years, the bill also exempts a portion of the business personal property of a state-assessed public utility through the creation of a valuation cap. The valuation cap is based on the actual value of the public utility's operating property and plant for the 2011 property tax year, or a later property tax year in the case of a new public utility, with an incremental increase each year thereafter during the 10-year period. The value of property above the cap is deemed to be attributable to business personal property, unless the property tax administrator determines otherwise.

The bill establishes a $100 million cap, as adjusted annually for inflation, on the current allocation of severance tax revenue. Any revenue received above the $100 million cap, as adjusted annually for inflation, is first made available to any political subdivisions socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation, but only for a serious need. Such political subdivision must make a grant request at a joint committee hearing of the house local government committee and the senate local government and energy committee, or any successor committees. Whatever moneys remain after the joint committee awards grants to those particular political subdivisions is to be transferred to the rural higher education cash fund and annually appropriated to rural institutions of higher education on a proportionate basis. The bill requires that each rural institution of higher education set aside at least 50% of each annual appropriation in a separate trust account in order to build an endowment fund to be used by the rural institution of higher education.

An executive branch agency is prohibited from adopting a rule pursuant to the "State Administrative Procedure Act" unless the agency finds that the rule is consistent with the clear legislative intent of the general assembly as supported by the public record of committee hearings and floor debates, including any public statements made by the principal sponsors or proponents of the bill or an amendment to the bill before its adoption.

The bill adds another ground for the committee on legal services and its staff, the office of legislative legal services, to use when it reviews rules adopted by executive branch agencies: A rule shall not extend in scope or impact beyond the clear legislative intent of the general assembly as supported by the public record of committee hearings and floor debates, including any public statements made by the principal sponsors or proponents of the bill or an amendment to the bill before its adoption.

The bill applies to the rules of executive branch agencies adopted on or after the effective date of this act.

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 changes the process by which legislative council staff obtains a dynamic model to be used initially to analyze the direct and indirect or secondary economic effects related to a limited number of bills making a tax policy change. Specifically, the bill requires the director of research to solicit and accept proposals to develop or procure a dynamic model and to present the proposals to the executive committee of the legislative council (executive committee). The executive committee then selects the dynamic model. As soon as there is sufficient moneys in the dynamic modeling cash fund, which includes gifts, grants, and donations, the director must purchase the dynamic model to be used by legislative council staff.

The requirement that the director hire an independent contractor if there is $120,000 in gifts, grants, and donations is eliminated, and the prohibition on using general fund moneys is limited to prohibiting such moneys from being used to purchase the model.

The bill also exempts the dynamic modeling cash fund from general reporting and repeal requirements related to gifts, grants, and donations.

This bill creates a legislatively appointed task force to study the cost of regulatory compliance for businesses in Colorado subject to Colorado's regulatory system.

The task force consists of 9 members: 2 of the members are appointed by the president of the senate; 2 by the minority leader of the senate; 2 by the speaker of the house of representatives; and 2 by the minority leader of the house of representatives, respectively. The president of the senate and the speaker of the house of representatives jointly appoint one member of the task force. The bill establishes the qualifications required for each of the members of the task force.

The duration of the study is 2 years with an interim report and a final report to the general assembly of the results of the study at its conclusion. The bill establishes the general guidelines for the contents of the study and authorizes the task force to consult similar studies, including studies that have been carried out for the federal government.

The bill requires the task force to be funded privately by gifts, grants, and donations and adequate funding for the study must be tracked by the legislative council staff as provided by law. The bill authorizes the directors of the legislative council staff and the office of legislative legal services and the state auditor to provide staff to the task force if adequate funding is received. The task force may also accept staff support from the private sector.

The bill applies to interest imposed on property taxes illegally or erroneously levied and collected. Under current law, interest on such refunded moneys accrues only from the date payment of taxes and delinquent interest on such payment was received by the county treasurer from the taxpayer except as provided in specified circumstances. Under the bill, interest on the refunded moneys accrues from the later of the date a complete abatement petition is filed with the board of county commissioners or the date the taxes are paid.

The bill specifies that the regulation of oil and gas operations is a matter of statewide concern, the Colorado oil and gas conservation commission has exclusive jurisdiction to regulate oil and gas operations, and local regulation of oil and gas operations is preempted by state law.

The bill enacts the "Water Rights Protection Act", under which the Colorado oil and gas conservation commission (commission) must establish rules for:

• Hydraulic fracturing near radioactive materials and siteslisted on the national priority list pursuant to the federal "superfund" law; and
• The shut-down of hydraulic fracturing operations whenmonitoring equipment detects a pressure drop.
Oil and gas operators must submit water quantity reports showing projected and actual sources and amounts of water needed for hydraulically fracturing a well. Operators must also submit pre- and post-fracturing water quality reports for all active water wells located within .5 mile of oil and gas wells that will be or have been hydraulically

fractured. This information will be posted on the commission's web site.

Operators cannot inject into the ground any chemical compound that would cause cancer.

In addition to existing financial assurances, each operator that engages in a high-risk hydraulic fracturing treatment must take out an environmental bond that would be forfeited if the operator's operations cause any damage to water rights.

Subject to listed affirmative defenses, an operator is presumed to be responsible for the pollution of a water supply that is within .5 mile of a line between the well head and the surface projection of the bottom hole location of the well, if the pollution occurred within 6 months after the completion of the hydraulic fracturing of the well. Hydraulic fracturing would be prohibited within .5 mile of any surface water, including a pond, reservoir, or other natural or artificial impoundment or stream, ditch, or other artificial waterway, unless the operator uses a closed-loop system.

The bill extends the time period for which newer motor vehicles are exempt from emissions inspections from the vehicle's fourth model year to its eighth model year.

Section 1 of the bill requires air quality permits to be issued within 12 months after receipt of a complete permit application.  Section 2 requires the same of water quality permits.

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.