Sen. Chris Hansen

For state fiscal years 2021-22 and 2022-23, $1,000,000 is annually appropriated from the general fund to the department of human services for use by administration and finance for grants for operational expenses related to the Colorado 2-1-1 collaborative. For the 2022-23 state fiscal year, an additional $55,645 is appropriated from the general fund to the department for use by administration and finance for the 2-1-1 collaborative based on the assumption that the department will require an additional 0.9 FTE. (Note: This summary applies to this bill as enacted.)

Section 1 of the act requires the department of higher education to contract for and facilitate use of an online platform by public or private institutions of higher education in the state to assist students accessing public benefits (online platform). Section 2 creates the economic mobility program within the department of public health and environment and requires the department to develop and implement the program to improve health and educational outcomes associated with reduced poverty and improved economic mobility for Coloradans. To fund the program, the economic mobility program fund (fund) is created and $4 million is transferred to the fund from the economic recovery and relief cash fund. For the 2022-23 state fiscal year, $1,720,060 is appropriated from the fund to the department of public health and environment for use by the prevention services division for maternal and child health and administration and $171,000 is appropriated from the general fund to the department of education for the online platform. (Note: This summary applies to this bill as enacted.)

The act extends the advanced industry investment tax credit (credit) for an additional 4 years, increases the aggregate annual maximum amount of credits that may be allowed from $750,000 to $4 million, increases the credit from 30% to 35% of the amount of a qualified investment in rural or economically distressed areas, and increases the total amount of the credit for each qualified investment from $50,000 to $100,000. Current law requires that individuals who are co-owners of a business claim only their pro rata share of the credit. The act allows the credit to be allocated among partners, shareholders, members, or other constituent qualified investors in any manner agreed to by such partners, shareholders, members, or other constituent qualified investors. The act appropriates $90,000 to the office of the governor for use by economic development programs for advanced industries. (Note: This summary applies to this bill as enacted.)

The act allows an innovation school zone (innovation zone) to use an alternative governance structure by which the school district board of education (local school board) delegates management activities of schools within the innovation zone to another organization and the organization forms a partnership with the local school board. An innovation zone is required to submit information regarding the alternative governance structure in the innovation zone's innovation plan (plan) to the local school board. The act requires that the local school board and an innovation zone with alternative governance as a whole, or a school within the innovation zone with alternative governance, use a dispute resolution process to resolve disagreements regarding the administration of the plan. The act outlines the dispute resolution process. The act requires a local school board to review the level of performance of an innovation zone with alternative governance as a whole, and each school within the innovation zone with alternative governance, at the same time. The act clarifies that when a vote is required and concerns consent for a plan revision in an innovation zone with alternative governance as a whole, or a school within the innovation zone with alternative governance, the vote must occur within 30 days. Within the 30-day time frame or if approval is not secured, the initial plan must remain in effect. If a local school board votes to revoke the status of an innovation zone with alternative governance, or a school within the innovation zone with alternative governance, or to remove a school within the innovation zone with alternative governance from the innovation zone based on insufficient academic progress of the students enrolled in the innovation zone with alternative governance, an innovation zone with alternative governance may submit a written request to the state board of education and commissioner of education to review and comment on the local school board's determination. The act outlines the review and comment process. (Note: This summary applies to this bill as enacted.)

The act requires the director of the Colorado energy office (office) and the executive director of the department of local affairs to appoint an energy code board (board) that will develop for adoption by counties, municipalities, and state agencies 2 sets of model codes. The director of the office and the executive director of the department shall also appoint an executive committee for the board. The board shall develop a model electric and solar ready code on or before June 1, 2023, and a model low energy and carbon code on or before July 1, 2025. The office shall, independent of the board, identify model green code language for adoption by counties, municipalities, and state agencies. Every element of either model code adopted by the board must be approved by two-thirds of the board. If two-thirds of the board fail to adopt an element required by statute for either model code, the executive committee must vote on that element. An element of either model code must be approved by the majority of the executive committee to be adopted. In the event of a conflict between the 2021 international energy conservation code, the 2024 international energy conservation code, the model electric ready and solar ready code, or any other model codes adopted by either a local government or divisions in the executive branch and either the Colorado plumbing code or the national electric code, the Colorado plumbing code or the national electric code prevails. The act establishes when the office of the state architect, the division of housing, and the division of fire prevention and control must adopt and enforce codes that achieve equivalent or better energy performance than the codes adopted by the board as follows: On or before January 1, 2025, the office of the state architect, the division of housing, and the division of fire prevention and control shall adopt and enforce an energy code that achieves equivalent or better energy performance than the 2021 international energy conservation code and the model electric and solar ready code developed by the board; and On or before January 1, 2030, the office of the state architect, the division of housing, and the division of fire prevention and control shall adopt and enforce an energy code that achieves equivalent or better energy and carbon emissions performance than the model low energy and carbon code developed by the board. Likewise, the act establishes when municipalities and counties must adopt and enforce codes that achieve equivalent or better energy performance than the codes adopted by the board as follows: On or after July 1, 2023, and before July 1, 2026, municipalities and counties that update a building code shall adopt and enforce an energy code that achieves equivalent or better energy performance than the 2021 international energy conservation code and the model electric and solar ready code developed by the board; and On or after July 1, 2026, municipalities and counties that update a building code shall adopt and enforce an energy code that achieves equivalent or better energy performance than the model low energy and carbon code language developed by the board. However, rather than either the model electric and solar ready code or the model low energy and carbon code, a rural county that applies for and is not awarded a grant that significantly assists in energy code adoption and enforcement training is instead required to adopt and enforce an energy code that achieves equivalent or better energy performance than one of the 3 most recent editions of the international energy conservation code. The act also creates 2 primary grant programs that will be administered by the office: The building electrification for public buildings grant program to provide grants to local governments, school districts, state agencies, and special districts for the installation of high-efficiency electric heating equipment; and The high-efficiency electric heating and appliances grant program to provide grants to local governments, utilities, nonprofit organizations, and housing developers for the installation of high-efficiency electric heating equipment in multiple structures within a neighborhood and the purchase of electrical installations and upgrades necessary to support the installation of high-efficiency electric equipment. The clean air building investments fund, a continuously appropriated cash fund, is established by the act to fund the creation, implementation, and administration of both of these grant programs. Lastly, the act also requires the following transfers from the general fund: $3 million to the energy fund created for the office to issue grants and provide training related to the 2021 international energy conservation code, electric and solar ready codes, and low energy and carbon codes; $150,000 to the energy fund created for the office for the costs associated with administering the board; $10 million to the clean air building investments fund for the creation, implementation, and administration of the building electrification for public buildings grant program; and $10,850,000 to the clean air building investments fund for the creation, implementation, and administration of the high-efficiency electric heating and appliances grant program.(Note: This summary applies to this bill as enacted.)

The act implements most of the recommendations of the department of regulatory agencies, as contained in the department's sunset review of the board of real estate appraisers (board), as follows: Continues the board for 9 years, until September 1, 2031; Requires the board to adopt rules to authorize an exemption from compliance with the uniform standards of professional appraisal practice that would allow an appraiser to perform an evaluation instead of a full appraisal for a federally regulated financial institution and authorizes an appraiser to conduct an evaluation in accordance with the board's rules; Amends statute to comport with federal law, including updating the number of appraisers with which a licensed appraisal management company does business, updating the qualifications for licensure to require the minimum appraisal experience required by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization, clarifying that the federal regulating authorities that regulate a financial institution are exempted from state registration or licensure, and aligning the hours of continuing education required for reactivation of an inactive license with the number of hours required by the Appraiser Qualifications Board; Repeals the requirement that the board send letters of admonition by certified mail; and Clarifies that fines are assessed on a per-violation basis and reduces the maximum penalty from $2,000 to $1,000, which maximum penalty applies to any violation.(Note: This summary applies to this bill as enacted.)

Under current law, in a dispute over a defendant's competency, a party may request a second evaluation of the defendant. The act requires that if a second evaluation is completed and restoration is ordered, the court shall make the second evaluation available to the department of human services (department). If the court finds that the competency report provided by the department does not meet statutory requirements, the act permits a defendant to be placed in the department's custody for an inpatient competency evaluation. Under current law, when a defendant is in custody on a misdemeanor, petty offense, or traffic offense and the defendant is found incompetent to proceed, there is a presumption that the court will enter a personal recognizance bond. The act also creates a presumption that the court will order outpatient restoration services. If the court denies a personal recognizance bond, the court shall notify the department of the specific facts and findings it relied upon in the order for restoration treatment. The department is allowed to offer assistance to an out-of-state provider providing restoration services to a defendant living outside Colorado. The requirement to opine on whether there is a substantial probability that the defendant will be restored to competency and remain competent with the use of medication or not remain competent without the use of forced medication is eliminated. After the court has conducted at least 4 competency reviews, the act requires the court to conduct a competency review every 91 days. The court is required to dismiss the defendant's case if there is not a substantial probability that the defendant will be restored to competency in the reasonably foreseeable future. The act appropriates: $28,562,828 from the economic recovery and relief fund cash fund to the department for use by the office of behavioral health for inpatient bed capacity; and $800,000 from the behavioral and mental health cash fund to the department to contract for a feasibility study of renovating a facility in Adams county to provide inpatient beds for competency services.(Note: This summary applies to this bill as enacted.)

The act requires the Colorado energy office (office), in collaboration with the department of local affairs (department) and the Colorado resiliency office (resiliency office), to develop a grid resilience and reliability roadmap (roadmap) for improving the resilience and reliability of electric grids in the state (grid), which roadmap must include guidance on how microgrids may be used to harden the grid, improve grid resilience and reliability, deliver electricity where extending distribution infrastructure may not be practicable, and operate autonomously and independent of the grid, when necessary. In developing the roadmap, the office, department, and resiliency office are required to engage interested persons throughout the state in stakeholder meetings and consider stakeholder input. The roadmap may identify: The potential benefits of developing microgrids, including whether and how developing microgrids improves grid resilience and reliability; The critical facilities and infrastructure and the high-risk communities that should be prioritized for microgrid projects (projects); and Recommendations regarding potential legislative or administrative changes needed to help facilitate projects, including needed statutory or rule changes, key factors to consider regarding the safety, development, maintenance, and deployment of microgrids, metrics for evaluating the costs and benefits of microgrids, financial and technical support for microgrid deployment, and education and outreach programs, including apprenticeship programs. The office is required to post a draft of the roadmap on its website on or before July 1, 2024, and the office and department are required to post the completed roadmap on their websites. The office is also required to submit a copy of the roadmap to the public utilities commission (commission), and, on or before March 1, 2025, in collaboration with the department, present the roadmap to the legislative committees of reference with jurisdiction over energy matters. On a periodic basis at least every 5 years, the office, department, and resiliency office are required to review the roadmap and, if necessary, update it. If the roadmap is updated, it must be posted on the office's and department's websites and submitted to the commission and the legislative committees of reference with jurisdiction over energy matters. For the 2022-23 state fiscal year, $22,470 is appropriated from the general fund to the office of the governor for use by the Colorado energy office to develop the roadmap. (Note: This summary applies to this bill as enacted.)

For income tax years beginning on or after January 1, 2023, but before January 1, 2025, any purchaser of an air-source heat pump system, ground-source heat pump system, water-source heat pump system, or variable refrigerant flow heat pump system (heat pump system) or a heat pump water heater that installs a residential or commercial heat pump system or a residential or commercial heat pump water heater into real property in the state is allowed an income tax credit in an amount equal to 10% of the purchase price of the heat pump system or heat pump water heater. For income tax years beginning on or after January 1, 2023, but before January 1, 2025, any purchaser of an energy storage system that installs the energy storage system in a residential dwelling in the state is allowed an income tax credit in an amount equal to 10% of the purchase price of the energy storage system. For the heat pump system and heat pump water heater income tax credit and for the energy storage system income tax credit, the purchaser may assign the income tax credit to the seller of the heat pump system, heat pump water heater, or energy storage system (seller) at the time of purchase. If the purchaser assigns the credit, the seller must compensate the purchaser for the full nominal value of the tax credit. The act specifies the requirements of the purchaser, seller, and the department of revenue in connection with the assignment of either income tax credit. Beginning July 1, 2024, all sales, storage, and use of eligible decarbonizing building materials are exempt from state sales and use tax. "Eligible decarbonizing building materials" are building materials that have a maximum acceptable global warming potential as determined by the office of the state architect (office) and that are on a list of eligible materials maintained by the office. Manufacturers may submit the environmental product declaration of an eligible material to the office for the office's review. The office is required to compile a list of eligible materials and the manufacturers of those materials based on the information voluntarily submitted to the office by the manufacturers. Beginning January 1, 2023, all sales, storage, and use of heat pump systems or heat pump water heaters that are used in commercial or residential buildings are exempt from state sales and use tax. To be eligible for the sales and use tax exemption under certain circumstances, the purchaser of the heat pump system or heat pump water heater is required to certify that all necessary mechanical, plumbing, and electrical work performed in connection with the installation of the heat pump system or heat pump water heater will be performed by a certified contractor on a certified contractor list created pursuant to current law or by employees of a utility, subject to state licensing requirements and all applicable state and local rules, codes, and standards. Beginning January 1, 2023, all sales, storage, and use of energy storage systems that are used in a residential dwelling are exempt from state sales and use tax. A statutory town, city, or county may exempt the same items that are exempt from state sales and use tax pursuant to the act only by express inclusion of the exemption in its initial sales tax ordinance or resolution or by amendment thereto. After January 1, 2023, an investor-owned gas utility may apply to the public utilities commission for approval to measure the amount of use for billing purposes in either fuel commodity units or for energy services provided. The public utilities commission is required to approve, deny, or modify the utility's application. (Note: This summary applies to this bill as enacted.)

The act directs the division of housing in the department of local affairs (division) to award a grant to a local government in the Denver metropolitan area or a community partner in conjunction with a local government in order to build or acquire, and then facilitate, a regional navigation campus to respond to and prevent homelessness. The act requires the division, in collaboration with the department of human services and the behavioral health administration in the department of human services, to establish application requirements, review applications, select a grant recipient, and ensure the grant is only awarded after a fair and rigorous open competition among eligible applicants. The act creates the regional navigation campus cash fund (cash fund) and requires the state treasurer to transfer $50 million from the economic recovery and relief cash fund to the regional navigation campus cash fund on July 1, 2022. For the 2022-23 state fiscal year, the act appropriates $44,557 to the department of human services for use by the behavioral health administration from the funds transferred to the cash fund. (Note: This summary applies to this bill as enacted.)