Rep. Naquetta Ricks

The act implements the recommendations of the department of regulatory agencies in its 2025 sunset review and report by:Continuing the 'Barber and Cosmetologist Act' for 7 years until 2033;Repealing the advisory committee;Updating definitions and terminology within the 'Barber and Cosmetologist Act';Specifying certain services and providers that are exempt from the 'Barber and Cosmetologist Act'; andReplacing gendered language with gender-neutral language.(Note: This summary applies to this bill as enacted.)

The act requires the department of corrections (department) to furnish an individual being discharged from the department's custody a release allowance of at least $100, free of any deductions. Beginning by September 15, 2027, and annually thereafter, the department is required to collect and report discharge data, including the number of individuals released from department correctional facilities, the number and percentage of released individuals who received the release allowance, and the total amount of money spent on release allowances. The department must issue a report to the general assembly annually. The act repeals provisions requiring the department to give an individual a ticket to leave prior to discharging the individual from a correctional facility.     The act requires eligible offenders to participate in the department's existing program to procure state-issued identification cards for offenders (program), unless the offender affirmatively opts-out of the program. Beginning by September 15, 2027, and annually thereafter, the department is required to collect data on the process of securing necessary identification documents to issue state identification cards and issue a report to the general assembly. The report must include the number and percentage of offenders released with an identification card, birth certificate, and social security number and the number and percentage of offenders who were ineligible to participate in the program and the reason for ineligibility.     The department is prohibited from charging an offender a fee to obtain a state identification card, and any fee incurred in the process of securing an offender's identification documents to create the state identification card must be assessed after the offender has been released and may be consolidated with existing restitution, fees, or other legal financial obligations owed by the offender.     The department of public health and environment shall assist the department in securing necessary identification documents.(Note: This summary applies to this bill as enacted.)

The act requires the department of health care policy and financing (state department) to establish a statewide database to provide accurate information about certain individual residential services and supports settings and their associated service provider agencies. The database will be used by the state department, the department of public health and environment, and service provider agencies. Information from the database may only be shared with the public upon determination by the state department and consistent with state and federal privacy and confidentiality laws.     The act requires service provider agencies to submit the required information to the state department beginning July 1, 2026, and quarterly thereafter, and requires the state department to update the database within one month after receiving the required information from the service provider agencies.     The act clarifies that individual residential services and supports settings must be treated as residential properties in the application of local regulations, including zoning, land use development, fire and life safety, sanitation, and building codes. The act prohibits local governing authorities from imposing additional regulations on individual residential services and supports settings that do not apply to other residential properties.     The act appropriates $20,000 to the state department from the general fund to implement the act.     It is anticipated that the state department will receive $60,000 in federal funds for the executive director's office to implement the act.(Note: This summary applies to this bill as enacted.)

With certain exceptions, the act prohibits an employer or an employer's agent from demanding, confiscating, retaining, or otherwise requiring an individual who is an employee or an applicant for employment or who is performing work or seeking to perform work for the employer in any capacity, including a migrant worker or seasonal employee, to surrender the individual's government-issued identification card.     A person that knowingly violates the act's prohibition commits criminal possession of an identification document, which is a class 2 misdemeanor.     A person commits a bias-motivated crime if, with the intent to intimidate or harass another individual, in whole or in part, because of that individual's actual or perceived race, color, religion, ancestry, national origin, physical or mental disability, sexual orientation, or transgender identity, the person:Violates the act's prohibitions; orProvides, or threatens to provide, an individual's government-issued identification document to federal immigration authorities, except where required or permitted by state or federal law.     Such a bias-motivated crime is a class 1 misdemeanor, and a victim may seek additional remedies available under law.(Note: This summary applies to this bill as enacted.)

The act adjusts several state tax expenditures as follows:Requires the state treasurer to transfer $45.6 million from the general fund to the state highway fund on July 1, 2026, and $96.4 million on each July 1 from July 1, 2027, through July 1, 2031;Prohibits certain local use tax ordinances, resolutions, or proposals from applying to construction and building materials used by a common rail carrier pursuant to a contract with the state, a political subdivision of the state, or a special district allowing the contracting government to use the carrier's property or tracks for the provision of public passenger rail service;For income tax years commencing on and after January 1, 2027, requires a taxpayer to add to the taxpayer's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the gain invested by the taxpayer in a Colorado-qualified opportunity fund in a manner that qualifies for exclusion from federal gross income pursuant to the same section of the internal revenue code;For income tax years commencing on or after January 1, 2027, allows a combined group to elect to make a water's-edge filing election and describes what should be taken into account in such a filing;For income tax years commencing on and after January 1, 2027, requires a corporation to add to the corporation's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the amount of that gain invested in a Colorado qualified opportunity fund and the amount of any gain excluded from federal gross income as a result of an election made pursuant to section 1400Z-2(c) of the internal revenue code for amounts invested in a qualified opportunity fund that is not a Colorado qualified opportunity fund; allows a corporation to subtract from federal taxable income the amount of gain included in federal gross income pursuant to section 1400Z-2(b) of the internal revenue code to the extent that the gain was added to federal taxable income pursuant to the opportunity fund add-backs for a prior tax year; changes the definition of federal taxable income for a C corporation that is in a combined group; repeals the state corporate income tax deduction for wages or salaries paid that are not allowed to be deducted at the federal level pursuant to section 280C of the internal revenue code; and eliminates the ability of corporations to deduct from their income tax liability any amount included in federal taxable income pursuant to sections 951 (a) or 951A (a) of the internal revenue code with respect to a controlled foreign corporation incorporated in a foreign jurisdiction for the purpose of tax avoidance;Eliminates a potential reduction in the amount available for the heat pump technology and thermal energy network tax credit, for years following 2025 based on an economic forecast by the office of state planning and budgeting or legislative council staff;Increases the innovative motor vehicle tax credit from $1,000 to $2,000 for certain vehicles sold or leased during the 2027 income tax year, and from $500 to $1,000 for certain vehicles sold or leased during the 2028 income tax year, and provides that certain vehicles with an manufacturer's suggested retail price (MSRP) below $40,000 that are sold or leased on or after January 1, 2027, but before January 1, 2029, are eligible for the additional tax credit.Clarifies that a potential 50% reduction in the innovative motor vehicle tax credit and the innovative trucks tax credit, triggered by certain state revenue forecasts, applies to the income tax year;For income tax years commencing on or after January 1, 2027, modifies the income tax credit for wildfire hazard mitigation expenses by adding a definition of 'infestation mitigation measures' that includes the thinning of woody vegetation that is at risk of mountain pine beetle or spruce beetle infestation or that has been killed by mountain pine beetles or spruce beetles, if such activities meet or exceed any state forest service standards or any other applicable state rules, and modifies the amount of the credit available to be fully refundable without being carried forward;For income tax years commencing on or after January 1, 2027, expands the income tax credit for the purchase of small food business recovery grant program equipment to be available for additional food distributors and producers, adjusts the amount of the tax credit that may be offered and claimed for the purchase of small food business recovery grant program equipment or participation in the supplemental food assistance benefit program, requires the department of agriculture to approve or disapprove an application for a credit within a reasonable time, which shall not exceed 150 days after the filing of the application, caps the amount of credits issued at $10 million for calendar years commencing before January 1, 2027, $5 million for the calendar year commencing on January 1, 2027, and a total of $5 million for calendar years commencing on or after January 1, 2028, and allows a purchaser that is not subject to income tax to be eligible for the credit.Extends the electric-powered lawn equipment tax credit until January 1, 2030, and allows a qualified retailer to elect advance payments of the credit;For income tax years commencing on or after January 1, 2027, allows an entity not subject to income tax to be eligible for an income tax credit for developing a qualified industrial facility, allows a taxpayer to claim the credit for installing equipment used for utilization of biomethane, requires the Colorado energy office (CEO) to review applications for the credit within 120, rather than 90, days, and for any semi-annual application period commencing on or after July 1, 2026, allows the CEO to adjust the limits on the aggregate amount of tax credits available to be reserved.Changes the reservation process for a tax credit made in connection with a geothermal energy project beginning on July 1, 2026;Provides that the department may disqualify a retailer of electric bicycles from the electric bicycle tax credit if the retailer requested advance payment of the credit or claimed a credit for a transaction that does not qualify for the credit, the retailer provided false information to the department of revenue or CEO, the retailer did not comply with the statutory requirements for the credit, or the retailer does not hold a sales tax license;Allows the executive director of the department of revenue to share taxpayer information with the CEO relating to a claim for an income tax credit for the retail sale of a qualified electric bicycle or the sale of a heat pump, which must remain confidential;Repeals the sustainable aviation fuel (SAF) production facility tax credit, effective January 1, 2027;Establishes the sustainable aviation fuel purchase income tax credit for income tax years beginning on or after January 1, 2027, and before December 31, 2032, where the amount of the credit is initially $1.50, increased by $.01 for each whole percentage of carbon intensity reduction in excess of 50%, but no greater than 100%, per gallon of SAF purchased for use in the state by the taxpayer, and the CEO may adjust that amount annually;Beginning January 1, 2028, the CEO may allow an additional credit of 50 cents for each gallon of SAF produced in the state that a qualified taxpayer purchased for use in the state during the income tax year, except as provided by the cap and reservation system, the total amount of credits issued cannot exceed $3 million per tax year, taxpayers must apply to the CEO for a tax credit certificate and CEO verifies eligibility and reports approved credits to the department of revenue, and the credit is refundable but may not be carried forward.For tax periods commencing on or after July 1, 2027, exempts from tax the storage, use, or consumption of construction and building materials by or on behalf of a common carrier by rail operating in interstate or foreign commerce when the storage, use, or consumption of the construction and building materials is pursuant to a contract with the state, a political subdivision of the state, or a special district that allows the contracting government to use the railroad's property or tracks for public passenger rail service;Extends the expiring sales and use tax exemption for wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles prior to the calendar year commencing on January 1, 2031;Repeals the sales and use tax exemption for property used in space flight, effective January 1, 2027, and reinstates the exemption beginning January 1, 2030;Change from 2% to 1.5% the allowance to cover losses in transit and in unloading gasoline or special fuel and repeals the 0.5% allowance for the costs of collecting the gasoline or special fuel excise tax and for uncollectible bad debts for tax periods beginning on or after January 1, 2027;Repeals the 3% deduction for collecting and remitting the tax on the inventory of cigarette wholesalers for tax periods beginning on or after January 1, 2027;Repeals the 0.4% discount on the face value of tax stamps affixed to packages containing cigarettes for tax periods beginning on or after January 1, 2027;Repeals the 1.6% discount for expenses in the collection and remittance of the tax on the sale, use, consumption, handling, and distribution of tobacco for tax periods beginning on or after January 1, 2027;Repeals the 1.1% discount for expenses in the collection and remittance of the nicotine product distributors tax for tax periods beginning on or after January 1, 2027;Allows an income tax credit to a taxpayer who places a new renewable energy investment in service on or after January 1, 2027, and provides a 14-year carryover of any amount of the credit not used to offset the income taxes otherwise due; except that, beginning in the tax year commencing on January 1, 2027, a taxpayer is not allowed a credit with respect to a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle rating of at least 54,000 pounds that is designated as Class A personal property pursuant to statute;Provides that on or after January 1, 2027, a taxpayer with more than 50 business facility employees during an income tax year is ineligible for the new enterprise zone business employee tax credit in that same income tax year;Requires, beginning January 1, 2027, a taxpayer to make at least $150,000 in expenditures in research and experimental activities to be eligible for the enterprise zone research and experimental activities tax credit;Modifies the enterprise zone vacant building rehabilitation income tax credit so that the credit only applies to buildings that have been unoccupied for any 135 calendar days within the 180 calendar days preceding when the rehabilitation is placed in service and is available in an amount equal to 25% of the aggregate qualified expenditures per building or $200,000 per building, whichever is less;Beginning on January 1, 2028, provides that a resident individual is allowed an earned income tax credit that equals the applicable percentage, as set forth in statute, of the amount the individual would be have been allowed under the internal revenue code;Removes Liechtenstein as a jurisdiction recognized as a tax shelter by the state and requires the department of revenue to engage a contractor to study whether the countries currently listed as tax shelters should remain designated as tax shelters;Requires the state treasurer to transfer all money in the commercial vehicle enterprise tax fund to the Colorado economic development fund on July 1, 2027;Requires the state treasurer to transfer the remainder of the penalty assessed for certain traffic violations that is not transferred to local jurisdictions to the general fund on or after July 1, 2027;Extends the residential energy storage system income tax credit to December 31, 2029; andProvides that the film festival incentive tax credit begins on January 1, 2026, instead of January 1, 2027, and ends on December 31, 2035, instead of December 31, 2036.     For the 2026-27 state fiscal year, the act makes the following appropriation adjustments to the department of health care policy and financing:$52,560 decrease from the general fund and a $52,560 increase from cash funds for medical and long-term care services for Medicaid eligible individuals;$21,024 increase from the primary care fund for the primary care fund program; and$332 decrease from the general fund and a $332 increase from the children's basic health plan trust fund for children's basic health plan medical and dental costs.     $38,432 is appropriated from the general fund to the department of revenue for tax administration system support and personal services.     $25,000 is appropriated from the general fund to the office of the governor for use by economic development programs.     $996,276 is appropriated from the preschool programs cash fund to the department of early childhood for support of the universal preschool program.     $35,741 is appropriated from various cash funds to the department of public health and environment for tobacco education, cancer and cardiovascular disease grants, and transfers to the general fund.     $333 is appropriated from the general fund exempt account to the department of public health and environment for immunization operating expenses.     The act takes effect upon passage; except that the appropriation adjustments to the department of health care policy and financing take effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law, and certain appropriation decreases are subject to the available amounts in the annual general appropriation act.(Note: This summary applies to this bill as enacted.)

The act implements the recommendations of the department of regulatory agencies in its 2025 sunset review and report.     Section 1 of the act changes the name of the 'Colorado Professional Boxing Safety Act' to the 'Colorado Combative Sports Safety Act'. Sections 4, 5, 7, 8, 12, and 13 update terms that reference boxing to better align with the new title.     Sections 2 and 3 continue the 'Colorado Combative Sports Safety Act' and the office of combative sports (office), including the Colorado combative sports commission (commission), for 11 years, until 2037.     Section 6 grants the 2 physician members of the commission the power to vote with the other members and clarifies that the physician members must have experience or training in emergency, sports, or combative sports medicine.     Section 9 directs the office director to gather safety data related to combative sports to provide to the commission.     Section 7 directs the commission to consider the safety data collected by the office director during the commission's rule-making and requires the commission to identify, by rule, the combative sports to which the 'Colorado Combative Sports Safety Act' applies.     Section 10 adds, to the combative sports statutes pertaining to grounds for discipline, that the director of the division of professions and occupations (division) may discipline a licensee or an applicant for a license for failing to respond to a letter from the division regarding a complaint against the licensee or applicant within the length of time for response specified in the letter. Section 10 also removes the requirement that a letter of admonition sent to a licensee or applicant be sent by certified mail.     Section 11 prohibits a promoter or matchmaker from having a financial interest in the management of a combative sports participant (participant) and prohibits a manager from:Having a financial interest in the promotion of a participant;Being employed by a promoter or matchmaker; orReceiving compensation or other benefits from a promoter or matchmaker beyond the amount received as consideration pursuant to the manager's contract with the participant.(Note: This summary applies to this bill as enacted.)

The act implements the recommendation of the Colorado office of policy, research, and regulatory reform in the department of regulatory agencies in its sunset review and report by continuing the regulation of hemodialysis clinics and technicians for 11 years, until September 1, 2037.(Note: This summary applies to this bill as enacted.)

Current law imposes a tax on the first sale or transfer of unprocessed retail marijuana at a rate of 15% of the average market rate of the unprocessed retail marijuana. The 'average market rate' is currently defined as the average price, as determined by the department of revenue (department), of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities in the state to retail marijuana product manufacturing facilities or retail marijuana stores.     The act specifies that 'outdoor unprocessed retail marijuana' is cultivated under natural sunlight and weather conditions without artificial light or structures, except under limited specified circumstances, and 'indoor unprocessed retail marijuana' is cultivated in any manner other than 'outdoor unprocessed retail marijuana.'     The act also amends the existing definition of 'average market rate' to require separate rates for fresh frozen indoor unprocessed retail marijuana and fresh frozen outdoor unprocessed retail marijuana. The act requires the department to adopt rules to establish the rates for fresh frozen indoor unprocessed retail marijuana and fresh frozen outdoor unprocessed retail marijuana on or before July 1, 2027. In addition, the existing definition of 'average market rate' requires that unprocessed retail marijuana for extractions have a separate average market rate that is lower than the rate for unprocessed retail marijuana for direct sale to consumers. The act maintains this requirement.     The act also requires the department to publish a general description of the methodology and data sources used to establish the rate for each average market rate category of unprocessed retail marijuana.(Note: This summary applies to this bill as enacted.)

The act requires an entity that requires an individual to provide a social security number for a background check for a non-employment-based educational opportunity to accept an individual's taxpayer identification number in lieu of a social security number, including in clinical educational experiences for health-related academic programs, subject to certain exceptions.     A licensed or certified hospital or covered school, or a state institution of higher education or local district college that offers a non-employment-based educational opportunity that involves work with a vulnerable population, shall accept either an applicant's taxpayer identification number or a fingerprint-based background check in lieu of a social security number.     An applicant for a non-employment-based educational opportunity that involves work with a vulnerable population at a licensed or certified hospital or covered school, or a state institution of higher education or local district college, is permitted to have their fingerprints taken by a local law enforcement agency or an entity approved by the Colorado bureau of investigation for taking fingerprints for the purpose of a background check. A licensed or certified hospital or covered school, or state institution of higher education or local district college, must determine who pays the fee for the fingerprint-based background check.     The attorney general is authorized to bring a civil action to enforce the provisions of the act. An entity that violates this act is subject to a civil penalty of $2,000 for the first violation and $5,000 for each subsequent violation.(Note: This summary applies to this bill as enacted.)

Effective January 1, 2028, the act repeals a requirement that requires motor-vehicle license plates to be retired and reissued in certain circumstances and authorizes the owner to transfer the plates to a new motor vehicle.     The act requires the department of revenue (department) to develop, implement, and maintain a comprehensive contingency plan to ensure continuity of operations and the protection of critical services in the event of a disruption in vehicle licensing operations. Standards are set for the contingency plan. The governor's office of information technology must provide the appropriate network and equipment support to the department.     To implement this act, $18,170 is appropriated to the department from the Colorado DRIVES vehicle services account in the highway users tax fund.(Note: This summary applies to this bill as enacted.)