Last week, we brought you part 1 of the Interim Committee Recap series. Today, we’re bringing you part 2, covering the rest of the interim committees and their bills, which were all approved for introduction in the 2022 legislative session at the November 15 Legislative Council meeting.

 

Colorado Youth Advisory Council Review Committee

The Colorado Youth Advisory Council Review Committee met three times during the interim. The committee heard presentations from its student members about youth mental health, higher education tuition waivers for students who have been in foster care, and the Colorado Youth Advisory Council’s enabling legislation. The committee requested the drafting of three bills, one on each of the presented subjects. The committee recommended all three bills to the Legislative Council.

• Bill A – Promoting Crisis Services to Students. The bill requires each student identification card issued to a public school student to contain the phone number, website address, and text talk number for the 24-hour telephone crisis service center (Colorado crisis services). If the school does not issue identification cards, the school shall request and display outreach materials from Colorado crisis services. The bill requires Colorado crisis services to notify each public school in the state that it can provide outreach materials explaining the services provided, how to engage the services, and the possibility of peer-to-peer counseling as part of the offered services. Colorado crisis services shall provide those materials upon request.
• Bill B – Higher Education Support for Foster Youth. The bill requires all public higher education institutions (institutions) in Colorado to waive undergraduate tuition and fees for Colorado resident students who have been in foster care, or, following an adjudication as neglected or dependent, in noncertified kinship care, in Colorado while 13 years of age or at any time since (qualifying students). Each institution must designate an employee to serve as a liaison to qualifying or prospective qualifying students. The bill requires school district and state charter school institute child welfare education liaisons to provide students in out-of-home placement with information and assistance regarding the tuition waiver for qualifying students.
• Bill C – Colorado Youth Advisory Council Updates. The bill makes changes to the structure of the Colorado Youth Advisory Council (council), including:
  • Changing the deadline to appoint nonlegislative members and removing the majority-vote requirement for approval of nonlegislative members of the council;
  • Requiring the council to adopt written bylaws setting forth a leadership structure for the council and clarifying that the council can elect members to serve in any leadership position described in its bylaws;
  • Requiring two council meetings each year be held in person;
  • Requiring that the council report to the Colorado Youth Advisory Council Review Committee (review committee) during the interim; and
  • Changing the process for appointing the chair and vice-chair of the review committee and specifying duties of the review committee chair.

 

Legislative Oversight Committee Concerning the Treatment of Persons with Mental Health Disorders in the Criminal and Juvenile Justice Systems

The Legislative Oversight Committee Concerning the Treatment of Persons with Mental Health Disorders in the Criminal and Juvenile Justice Systems (committee) met four times during the 2021 interim. The committee heard presentations from multiple stakeholders, mental health advocates, and representatives from state executive departments concerning the issues facing persons with mental health disorders who have been in contact, in one form or another, with the criminal or juvenile justice systems. The committee requested the drafting of 10 bills. Of those, two were withdrawn prior to the September 9, 2021, meeting, three were withdrawn at that meeting, and five bills were recommended by the committee to the Legislative Council for consideration.

• Bill A – Treatment Behavioral Health Disorders Justice System. The bill updates provisions of the enabling statute for the committee Substantive changes include:
  • Broadening the name and scope of the committee and associated task force (task force) from concerning the treatment of “persons with mental health disorders” to “persons with behavioral health disorders”;
  • Allowing the task force to research topics for members of the committee upon request;
  • Adjusting task force membership;
  • Further defining issues for the task force to study; and
  • Extending the repeal date to July 1, 2027.
• Bill B – Modifications to Not Guilty by Reason of Insanity. The bill requires the court to order an evaluation of a defendant found not guilty by reason of insanity to determine whether the defendant meets the criteria for inpatient hospitalization or if the defendant is eligible for conditional release in the community. The bill also specifies when, after receiving the evaluation, the court shall hold a hearing, prohibits how long a defendant found not guilty by reason of insanity may remain confined in inpatient hospitalization, specifies what information a court-ordered release examination must include, and requires the medical professional treating the defendant to develop a report certifying whether the defendant continues to meet the criteria for ongoing inpatient hospitalization. The chief executive officer of the facility in which the defendant is confined shall submit the report to the court on an annual basis.
• Bill C – Pretrial Diversion for Person with Behavioral Health. The bill expands the existing pretrial diversion program to include diversion programs that are intended to identify eligible individuals with behavioral health disorders and divert such individuals out of the criminal justice system and into community treatment programs. This expansion replaces the alternative pilot programs to divert individuals with mental health conditions that are currently set to repeal July 1, 2022.
• Bill D – Emergency Mental Health Treatment & Evaluation Standard. The bill changes the standard for an emergency 72-hour mental health commitment for treatment and evaluation to include when a person appears to have a mental health disorder or be gravely disabled and, as a result of such mental health disorder or being gravely disabled, appears to present an imminent or substantial risk of harm to self or others.
• Bill E – Programs to Develop Housing Support Services. The bill establishes and expands programs within the division of housing in the department of local affairs to build the capacity of communities across the state to provide supportive housing services to individuals with behavioral, mental health, or substance use disorders who are homeless or at risk of becoming homeless and who have contact with the criminal or juvenile justice system.

 

Transportation Legislation Review Committee Summary

The Transportation Legislation Review Committee (TLRC) met at the capitol twice to hear reports and consider legislation and took a few trips to fulfill its statutory authority to review the planning and construction of highway projects. At the hearings, the TLRC heard reports from the Colorado Motor Carriers Association, the Colorado Energy Office and Colorado Department of Transportation, the Regional Transportation District, the Colorado Association of Transit Agencies, the Colorado Cross Disability Coalition, the Colorado Department of Health Care Policy & Financing, the Colorado Department of Transportation and the Transportation Commission, the Division of Motor Vehicles, the Department of Public Safety, and the North West Mayors and Commissioners Coalition. The committee also heard reports about public highway authorities, hydrogen development for zero-emission vehicles, and local government use of federal rescue plan funds.

The committee considered and recommended the following legislation:

• Bill A – Fluid Milk Product Not Divisible Load. Current law has weight limits for vehicles. One of the factors that determines a vehicle’s weight limit is whether a load is divisible, which means that the load can be divided up to lower its weight. The bill deems that a load of fluid milk products carried by a vehicle is not a divisible load.
• Bill B – Statewide Regulation of Controlled Intersections. An existing statute allows a municipality or county to adopt an ordinance or resolution specifying that a person riding a bicycle, electrical assisted bicycle, or electric scooter may make a safety stop, rather than a full stop, under certain circumstances when approaching an intersection that is controlled by a stop sign or a traffic control signal. The bill amends the statute to make the substantive requirements uniform statewide for most persons who are not operating a motor vehicle, including pedestrians and operators of low-speed conveyances, approaching a controlled intersection.
• Resolution A – Study State and Interstate Highway Vehicle Weight. The resolution asks the United States Congress:
  • To allow the Colorado Department of Transportation to conduct an analysis of increasing the gross vehicle weight limit for the Interstate Highway System in Colorado to harmonize it with other state highways where 85,000 pounds is the maximum weight; and
  • If the completed study determines it is in the best interests of Colorado to harmonize the weights for these types of highways, that Colorado be permitted by state statute to increase the gross vehicle weight limit to 85,000 pounds for vehicles traveling on the Interstate Highway System in Colorado.

 

Sales and Use Tax Simplification Task Force

The Sales and Use Tax Simplification Task Force (SUTSTF) met four times during the 2021 interim and heard briefings and presentations from the Office of Legislative Legal Services, the Colorado Department of Revenue, the Colorado Municipal League, the Colorado Automobile Dealers Association, the Coalition to Simplify Colorado Sales Tax, and members of the public on a variety of topics, including:

• The ongoing progress toward widespread adoption of and potential areas of improvement for the electronic sales and use tax simplification system;
• Municipal business licensing requirements; and
• Sales and use taxes for motor vehicle purchases.

The SUTSTF requested the drafting of five bills but recommended only the following three bills to the Legislative Council for introduction:

• Bill A – Business Licensing. To streamline the imposition, collection, and administration of local sales and use taxes imposed on retail sales made by retailers through the streamlining of application requirements for and elimination of fees for local general business licenses, the bill requires the department of revenue (department) to require sufficient information to be collected from a qualifying retailer and made available to local taxing jurisdictions to ensure that concerns of local taxing jurisdictions are addressed. The department must accomplish these tasks expeditiously so that no later than July 1, 2023, and sooner if feasible, a qualifying retailer that has a state standard retail license and either does not have physical presence or has only incidental physical presence within a local taxing jurisdiction can make retail sales within the local taxing jurisdiction without having to obtain a general business license from the local taxing jurisdiction.
• Bill B – Destination Sourcing Rule Exemption. Under current law, state sales tax is generally calculated based on the buyer’s address when a taxable product or service is delivered to a consumer, and this is known as destination sourcing. An exemption from destination sourcing that allows a small retailer with less than $100,000 in retail sales to source its sales to its business location regardless of where a purchaser receives the taxable product or service is scheduled to expire on February 1, 2022. The bill delays the repeal of the exemption to October 1, 2022.
• Bill C – Simplify Sales Tax Exemption Forms. The bill requires the department of revenue to examine the forms that it requires to be completed by persons claiming certain exemptions from state and state-collected local sales and use taxes and its requirements relating to the use of the forms and, to the extent feasible without impairing the proper administration of the exemptions, simplify the forms and related requirements. Exceptions to existing statutory requirements relating to certain forms are made for any simplifications the department makes.

After a year off, legislative interim committees met this interim to discuss topics relevant to Colorado and to recommend legislation to the Legislative Council Committee. This week, we’re providing a summary of each committee and its recommended legislation. The Legislative Council Committee met on Monday, November 15, and approved all bills recommended to it by the interim committees for introduction in the 2022 legislative session.

For more information about interim committees generally and how they operate, see “Interim Committees: Just the Facts, Ma’am”, posted 7/21/2017.

 

Early Childhood and School Readiness Legislative Commission

This interim, the Early Childhood and School Readiness Legislative Commission (Commission) focused its efforts on the transition to the new Department for Early Childhood (DEC) and the creation of the universal preschool program. DEC will coordinate early childhood programs and services throughout Colorado, including the new statewide universal, voluntary preschool program. House Bill 21-1304 established DEC and required the creation of a transition plan, which describes the coordination and administration of early childhood services and programs by DEC and existing departments. On November 18, 2021, the Commission will meet to review the approved transition plan.

During its interim meetings, the Commission heard several presentations centered on workforce updates, reports on home-based child care, and the impacts of COVID-19 on early childhood education. The COVID-19 pandemic not only affected the early childhood educator workforce, but many children also experienced learning loss.

On November 1, 2021, the Commission voted to recommend one bill to the Legislative Council for introduction during the 2022 legislative session:

• Bill A – Early Childhood Educator Income Tax Credit. The bill creates a refundable income tax credit for an eligible early childhood educator who has an adjusted gross income below specified thresholds, holds an early childhood professional credential for at least six months of the taxable year, and is either the head of a family child care home or is employed with an eligible early childhood education program or a family child care home.

 

Pension Review Commission and Pension Review Subcommittee

The Pension Review Commission met twice during the interim. It heard presentations from the Fire and Police Pension Association (FPPA), the Public Employees’ Retirement Association (PERA), and its own Pension Review Subcommittee. The Pension Review Subcommittee itself met three times to hear presentations from: (1) Gabriel, Roeder, Smith & Company (GRS) regarding its statutorily required independent review of the economic, non-economic, and investment assumptions used to model Colorado PERA’s financial situation; (2) PERA regarding GRS’ recommendations and a general annual update; and (3) the Segal Group, Inc. regarding its summary review of December 31, 2020, actuarial valuation results for PERA’s division trust funds.

The Pension Review Commission requested that three bills be drafted and recommended all of them to the Legislative Council for introduction:

• Bill A – FPPA Statewide Retirement Plan. Effective January 1, 2023, the bill merges three pension plans administered by the FPPA—the statewide defined benefit plan, the statewide hybrid plan, and the social security supplemental plan—into separate components of a new plan to be known as the “statewide retirement plan”.
• Bill B – State Payment Old Hire Death and Disability Benefits. To ameliorate a shortfall in the statewide death and disability trust fund and ensure that there will be sufficient money in the trust fund to pay future death and disability benefits to FPPA members hired before January 1, 1997, the bill requires the state treasurer to pay $33.191 million from the general fund to the FPPA for deposit into the trust fund.
• Bill C – Compensatory Direct Distribution to PERA. To fully recompense PERA for the cancellation of a previously scheduled July 1, 2020, direct distribution of $225 million, the bill requires an additional direct distribution to PERA of $303.57 million to be made on July 1, 2022. This amount is the sum of $225 million plus an estimate of investment gains that would have accrued on that amount from July 1, 2020, through June 30, 2022, based on PERA’s actual one-year total fund policy benchmark return from July 1, 2020, through June 30, 2021, plus PERA’s assumed one-year rate of return of 7.25% from July 1, 2021, through June 30, 2022.

 

Legislative Oversight Committee on Tax Policy

The newly created Legislative Oversight Committee Concerning Tax Policy, a permanent successor to the previous Tax Expenditure Evaluation Interim Study Committee, met five times during its inaugural interim. The committee’s first order of business was to define the scope of tax policies that it and its subordinate Task Force Concerning Tax Policy would consider, and it identified five areas of study, which can be summarized as the income tax base, homestead exemptions, enterprise zones, property tax treatment of short-term rentals, and expanding the sales and use tax to services. The task force has been studying these issues, and presumably, the committee will consider these tax policies after the task force makes its recommendations about them.

In addition, the committee considered the state auditor’s thoughtful and thorough tax expenditure evaluations. After listening and considering the evaluations, the committee approved 10 bills for drafting, of which five were approved as committee bills:

• Bill A – Alternative Transportation Options Tax Credit. The bill replaces an existing income tax deduction for expenses incurred by employers when providing alternative transportation options to employees with a refundable income tax credit of 50% of such expenses for such employers. The credit is allowed for 10 income tax years beginning on January 1, 2023.
• Bill B – Repeal of Infrequently Used Tax Expenditures. The bill eliminates nine infrequently used tax expenditures that apply across the state’s insurance premium tax, income tax, sales and use tax, and liquor excise tax.
• Bill C – Sales & Use Tax Exemption Municipal Public School Construction. The bill extends the sales and use tax exemption that applies for sales of construction and building materials to contractors and subcontractors related to certain public works to the sales and use tax levied by home rule cities on such materials for use in connection with the building, erection, alteration, or repair of a public school.
• Bill D – Increase Alcohol Beverage Excise Tax Exemption. The bill increases the volume of alcohol that is subject to the excise tax exemption for alcohol beverages brought by air passengers into the state from a foreign country.
• Bill E – Farm Close-out Exemption Exclude Motor Vehicles. The bill excludes vehicles subject to state registration requirements from the state sales and use tax exemption for property sold in a farm close-out state.

 

Water Resources Review Committee

During the 2021 interim, the Water Resources Review Committee (WRRC) held three meetings and took one field trip to the Colorado Water Congress in Steamboat Springs. The WRRC met with a broad range of water users and government officials, including local water providers, water policy experts, state water planners, and concerned citizens. The committee received briefings on major water issues affecting the state, including anti-speculation, recreational in-channel diversion, compact compliance and groundwater challenges, water efficiency in agriculture, dredge and fill permitting, and alternative transfer methods.

On October 27, the WRRC met and voted to advance the following three bills for the consideration of the Legislative Council:

• Bill A – Groundwater Compact Compliance and Sustainability. The bill creates the groundwater compact compliance and sustainability cash fund (fund), which may include appropriations or transfers by the General Assembly, federal funds, and gifts, grants, and donations. The Colorado Water Conservation Board will disburse money from the fund based on recommendations from the board of directors of either the Rio Grande Water Conservancy District or the Republican River Water Conservation District, after approval by the state engineer. When all groundwater reduction requirements and all statutorily mandated standards are achieved, the fund is repealed, and any remaining money is transferred to the general fund.
• Bill B – Investment Water Speculation Prohibition. The bill defines and prohibits investment water speculation and authorizes the state engineer to investigate purchases of agricultural water rights that are suspected of investment water speculation. Persons engaged in water speculation may be subject to a fine not to exceed $10,000. The state engineer may refer any frivolous complaints of water speculation to the attorney general for investigation and prosecution in the courts. Persons who make frivolous complaints to the state engineer may be subject to a civil fine not to exceed $1,000.
• Bill C – Expand Water Resources Review Committee to Include Agriculture. The bill expands the scope of inquiry for the WRRC to include identifying, monitoring, and addressing agricultural issues. The bill also changes the name of the committee to the “Water Resources and Agriculture Review Committee”.

The WRRC also unanimously approved a letter to the Task Force on Economic Recovery and Relief Cash Fund. The letter requested that the Task Force consider water investment in its recommendations.

 

Wildfire Matters Review Committee

The Wildfire Matters Review Committee (WMRC) met five times during the 2021 interim. On October 28, 2021, the WMRC voted to advance the following five bills to the Legislative Council:

• Bill A – Wildfire Mitigation and Recovery. The bill creates the wildfire mitigation and recovery grant program within the Colorado state forest service (CSFS). Grants are available to counties with forested areas to help them prevent and recover from wildfires by removing wildfire fuel and debris in a manner that reduces the amount of carbon that enters the atmosphere. The CSFS must submit an annual report to the General Assembly concerning the grant program beginning January 1, 2023. The grant program is repealed September 1, 2028, following a sunset review.
• Bill B – Increase Wildfire Risk Mitigation Outreach Efforts. The bill directs the CSFS to convene a working group to develop and implement an enhanced wildfire awareness month outreach campaign in 2023 and 2024, in partnership with the Department of Fire Prevention and Control and the U.S. forest service. The state forester is required to report to the WMRC during the 2023 and 2024 legislative interims on money expended and efforts to increase outreach and awareness of wildfire risk mitigation.
• Bill C – Resources for Volunteer Firefighters. The bill expands eligibility for certain state emergency wildfire response cash funds to fire departments. Specifically, fire departments that rely primarily on volunteer firefighters to provide fire protection services can receive reimbursement for fire suppression activities from the cash funds if certain conditions are met. The bill also allows the local firefighter safety and disease prevention fund (fund) to be used for behavioral and mental health services for wildland firefighters. Money from the funds is distributed through a needs-based grant program, and the bill requires priority be given to fire departments that rely primarily on volunteer firefighters and demonstrate a loss in tax revenue due to wildfires. Finally, the bill requires a $5 million annual appropriation to the fund.
• Bill D – Assistance Landowner Wildfire Mitigation. The bill creates the wildfire mitigation resources and best practices grant program in the CSFS to be used to conduct outreach among land landowners regarding wildfire mitigation best practices. The grant will be available to local governments, tribal agencies, and nonprofit organizations beginning January 1, 2024. The CSFS must submit a report to the WMRC concerning the grant program beginning in 2025. The grant program is repealed January 1, 2029. The bill also replaces the current state income tax deduction for wildfire mitigation expenses with a state income tax credit beginning in tax year 2023 through tax year 2025. The credit is available to landowners who meet income requirements and is equal to 25% of the taxpayer cost for wildfire mitigation expenses, up to $625 per year.
• Bill E – Wildfire Incentives for Local Governments. The bill creates the wildfire mitigation incentives for local government grant program in the CSFS to provide matching funds to local governments that raise dedicated revenue for forest management and wildfire mitigation activities such as forest thinning, wildfire fuel reduction, and outreach to property owners and the public. Beginning November 1, 2024, the CSFS must publish an annual report on the grant program.