Bill Tracker

For educator preparation stipend programs, current law defines
eligible student to mean a student who is eligible for financial
assistance because the student's expected family contribution does not
exceed 200% of the maximum federal Pell-eligible expected family
contribution. The bill amends the definition of eligible student to mean
a student who is eligible for financial assistance because the student's
expected family contribution does not exceed 250% of the maximum
federal Pell-eligible expected family contribution.
Current law requires that a student eligible for the student educator
stipend program must be placed as a student educator in a school- or
community-based setting in Colorado. The bill allows a student to be
placed as a student educator in a school- or community-based setting in
Colorado or within 100 miles of the Colorado state border.
The bill creates an exception to the student educator stipend
program and the educator test stipend program for funds appropriated to
the department of higher education from the economic recovery and relief
cash fund. The Colorado commission on higher education (commission)
is authorized to approve criteria for students who qualify for the student
educator stipend program and the educator test stipend program. For the
student educator stipend program, the commission is required, first, to
consider students with an expected family contribution that does not
exceed 300% of the maximum federal Pell-eligible expected family
contribution. For the educator test stipend program, the commission is
required, first, to consider students with an expected family contribution
that does not exceed 300% of the maximum federal Pell-eligible expected
family contribution and, second, to consider graduates of an approved
program of preparation who were placed as student educators before
passing the assessment of professional competencies in state fiscal years
2019-20, 2020-21, and 2021-22.
Current law requires eligible applicants for the temporary educator
loan forgiveness program (forgiveness program) to be educators licensed
as teachers or school counselors. The bill broadens the program
requirements to allow eligible applicants to be educators licensed as
principals or special service providers.
The bill broadens the requirements of the forgiveness program.
The commission is required, first, to consider applicants who hold
educator licenses and prioritize the approval of those applications based
on the length of time each applicant has been employed under the license,
beginning with those who have been employed the shortest length of
time. The bill removes the forgiveness program requirement that the
commission approves applicants who have contracted for a qualified
position in a rural school or a rural school district or in a content shortage
area whose percentage of at-risk pupils exceeded 60% in the 2021-22
budget year.

Wildfire Matters Review Committee. The bill creates the timber,
forest health, and wildfire mitigation industries workforce development
program (program) in the state forest service. The program provides
partial reimbursement to timber businesses and forest health or wildfire
mitigation entities for the costs of hiring interns. The forest service must
adopt rules, policies, and procedures for the program, including criteria
for an internship to qualify, best practices for recruiting and selecting
interns to increase representation of historically underrrepresented
communities in the industries, the criteria to use in selecting qualified
interns, the required educational experience for an intern, and
administrative requirements for the program.
For income tax years beginning on or after January 1, 2023, but
before January 1, 2028, a business involved in forestry, logging, the
timber trade, the production of wood and secondary products, or forest
health and wildfire mitigation activities in Colorado may claim a credit
against state income tax for 20% of the cost incurred by the taxpayer in
purchasing certain equipment, vehicles, and equipment infrastructure. The
total aggregate credit in any one income tax year is limited to $10,000.
Any amount of the credit that exceeds the taxpayer's income tax liability
is not refundable but may be carried forward for up to 5 years.

Under existing law, an inmate in the custody of the department of
corrections (department) may have earned time deducted from the
inmate's sentence for meeting certain statutory requirements. The bill
permits an inmate sentenced for a nonviolent felony offense to have
earned time deducted from the inmate's sentence for each accredited
degree or other credential awarded by an accredited institution of higher
education to the inmate while the inmate is incarcerated, in the following
amounts:
  • One year of earned time for receiving an associate,
baccalaureate, or graduate degree; and
  • 6 months of earned time for receiving a certificate or other
credential.
The bill requires the general assembly to annually appropriate the
savings incurred during the prior state fiscal year as a result of the release
of inmates from correctional facilities because of earned time granted for
completion of a higher education degree or credential, as follows:
  • 50% of the savings to the department of corrections to
facilitate inmates enrolling in and completing accredited
higher education programs; and
  • 50% of the savings to the department of higher education
for allocation to institutions of higher education that offer
accredited programs in correctional facilities.

The high cost support mechanism provides high cost support
funding to telecommunications and broadband service providers that
provide service in high-cost areas of the state. The bill continues support
funding from the high cost support mechanism to 11 rural
telecommunications providers in Colorado. The bill continues support
funding to the 11 rural telecommunications providers until September 1,
2024. The date aligns with the department of regulatory agencies' 2023
sunset review of the high cost support mechanism and the final
determination of the high cost support mechanism by the general
assembly in 2024.

The bill enacts the Interstate Teacher Mobility Compact
(compact). The compact is designed to make it easier for teachers,
especially active military members and eligible military spouses, from one
member state to receive a teacher's license from another member state.

The bill requires the office of future of work (office) to contract
with a third party to study workforce transitions in Colorado's economy.
The workforce transitions study (study) must:
  • Evaluate the skill transferability of workers in the oil and
gas industry and in occupations in Colorado that are facing
the most disruption due to automation;
  • Explore training availability, skills needed, and transition
strategies; and
  • Provide recommendations for programs and policies to
prepare the workforce for these transitions.
On or before December 1, 2024, the office is required to submit a
report of the study's research and findings to the governor and to the
business, labor, and technology committee of the senate and the business
affairs and labor committee of the house of representatives.

Current law excludes expenses related to aviation training
programs for commercial pilots from qualified higher education expenses.
The bill expands the definition of qualified higher education expense
to include commercial pilot aviation training course expenses for fees,
books, supplies, and equipment if the course complies with the
requirements of federal law and the federal aviation administration.

Current law allows higher education faculty to take a sabbatical if
the governing board of the institution where the faculty member works
approves the sabbatical. The bill extends sabbatical opportunities to the
staff of an institution of higher education.

The bill makes the following changes to the agricultural workforce
development program (program):
  • Allows internships under the program to last for up to one
year in duration; and
  • Extends the repeal date of the program by 7 years to July 1,
2031.

The bill amends the Colorado Youth Employment Opportunity
Act of 1971 (act) to allow aggrieved parties, including parents of
children protected by the act, to pursue remedies at law and in equity for
violations of the act that are not within the scope of workers'
compensation remedies.

The bill requires the department of labor and employment
(department) to establish a teacher externship program to allow
kindergarten through twelfth grade public school teachers (K-12 teachers)
to participate in experiential learning opportunities with employers,
outside of the school environment, to gain knowledge and expand their
curriculum in the science, technology, engineering, and mathematics
disciplines and other disciplines that may be of value to a particular
school district.
The department is required to work with the department of
education to select appropriate employers to participate in the externship
program. Employers may be eligible for a tax credit for participation in
the externship program. A K-12 teacher who participates in the externship
program may receive compensation from the applicable school district or
from the employer providing the externship and may apply for
professional development credit and graduate school credits as part of the
teacher license renewal requirements.
The director of the division of employment and training in the
department is authorized to seek and accept gifts, grants, and donations
for allocation to school districts for compensation for teachers who
participate in an externship.
The bill requires the department to compile and report data on the
externship program on an annual basis.
The bill creates a tax credit for employers that participate in the
externship program.

The bill directs the office of future of work (office) in the
department of labor and employment to create an apprenticeship
navigator pilot program (program) with 2 full-time apprenticeship
navigators, with each apprenticeship navigator assigned to a different
school district selected by the office. The purpose of the program is to
increase awareness of registered apprenticeship programs among
graduating high school students in the selected school districts.
The bill also directs the office to promote apprenticeship programs
to high school students by creating and maintaining a web-based job
board of apprenticeships and incorporating apprenticeships in the state's
career planning tools.

The bill requires the department of education (department) to cap
standardized summative assessments administered to the minimum extent
possible, if requested by the local education provider.
The bill requires the department to apply for a federal waiver for
federal assessment requirements.
The bill requires the department to support, through various
means, local education providers and schools to innovate new
assessments.

The bill creates the accountability, accreditation, student
performance, and resource inequity task force (task force) to study
academic opportunities, inequities, promising practices in schools, and
improvements to the accountability and accreditation system.
The bill requires the speaker and minority leader of the house of
representatives, the president and minority leader of the senate, the
governor, and the department of education (department) to appoint
members to the task force no later than July 1, 2023. The task force
consists of 25 members, including members who represent statewide
education organizations, the department, the state board of education
(state board), school district board of education members,
superintendents, principals, and teachers.
The bill requires the department to enter into a contract with a
facilitator to guide the work of the task force no later than August 15,
2023. The facilitator shall draft an interim report and final report.
The task force is required to submit an interim report by March 1,
2024, and a final report by November 15, 2024, reflecting its findings and
recommendations to the education committees of the house of
representatives and senate, the governor, the state board, the
commissioner of education, and the department.

The bill directs the state board of community colleges and
occupational education (board) to administer the in-demand short-term
credentials program (program) in order to support the expansion of the
number of available and qualified professionals who are able to meet
Colorado's in-demand workforce needs.
The bill appropriates $38.6 million from the general fund for this
program. The board is required to allocate funds to community and
technical colleges, area technical colleges, local district colleges, and
Colorado Mesa university to provide assistance to students for eligible
expenses that support their enrollment in eligible programs. If
unexpended resources exist, the funds must be used to pay for a student's
housing, transportation, or food expenses.
The bill requires the office of future work to provide grants to
registered apprenticeship programs that provide training in the building
and construction trade at no cost to apprentices. The bill appropriates $1.4
million from the general fund for this grant program.
The bill appropriates $5 million from the general fund to create 2
new short-term degree nursing programs at community or technical
colleges.

The bill creates the Colorado adult high school program (program)
in the office responsible for adult education within the department of
education (department). The purpose of the program is to create a
pathway for Coloradans who are 21 years of age or older and do not have
a high school diploma to attend high school and earn a diploma at no cost.
Students may also earn industry-recognized certificates or college credits
at no cost.
The bill requires the department to partner with a Colorado
community-based nonprofit organization (organization) to operate the
program. The department is required to select an organization to act as the
education provider for the program. The education provider is required
to:
  • Secure and maintain a building for the program;
  • Contribute funding annually for operating and facility
costs;
  • Hire educators and school personnel, including life coaches
who help students navigate academic and personal
challenges;
  • Establish an academic accountability system with the
approval of the department;
  • Establish minimum graduation requirements;
  • Award Colorado high school diplomas to students who
successfully complete the program;
  • Use an evidence-based educational model that has proven
effective through a randomized control trial or an
experimental study;
  • Develop in-person courses;
  • Develop online courses for students who take classes in
person but demonstrate academic readiness for remote
course work;
  • Consult with a nonprofit organization that has successfully
implemented an evidence-based educational model for
adults in another state;
  • Serve all students, regardless of immigration status;
  • Enroll no more than 400 students at one time;
  • Comply with state and federal laws concerning students
with disabilities, including students with accommodations
pursuant to section 504 of the federal Rehabilitation Act
of 1973;
  • Create individualized education programs for students with
disabilities;
  • Collaborate with local district colleges, community
colleges, area technical colleges, or local career and
technical education programs to ensure access to courses
that can lead students to graduate with industry-recognized
certificates;
  • Fund industry-recognized certificate programs at no cost to
students;
  • Create a plan to authorize teachers to teach courses for
college credit;
  • Operate a licensed, on-site child care center for students
with children; and
  • Offer transportation assistance to students who enroll in the
program.
The department is required to establish a fair and transparent
request for proposal process in order to select an organization to operate
the program. The request for proposal process must include input from
the office within the department responsible for adult education.
The request for proposals must include:
  • A plan for student enrollment, including students with
disabilities;
  • A plan to secure and maintain a building;
  • Proposed curriculum and academic accountability
standards for a student-centered course of study that can
result in a Colorado high school diploma;
  • Evidence of the effectiveness of the evidence-based
educational model to be implemented by the program;
  • A plan to hire and maintain a staff of educators and other
school personnel;
  • Proof of access to the money annually required to sustain
the program;
  • A plan to establish and operate an on-site licensed child
care center; and
  • A plan to offer transportation services to students.
On or before July 31, 2025, and every July 31 thereafter, an
education provider is required to report to the department on the status of
the program. On or before November 30, 2025, and every November 30
thereafter, the department is required to report the status of the program
to the house of representatives education committee and the senate
education committee, or their successor committees, including but not
limited to:
  • Student demographic data disaggregated by race, ethnicity,
socioeconomic status, age, gender, and disability;
  • Accountability measure outcomes; and
  • The number of industry-recognized certificates, college
credits, and overall average credit attainment that students
earn each term.

Current law requires adult education providers (providers) that
participate in the department of education's (department) adult education
and literacy grant program (program) to offer eligible adults basic
education in literacy and numeracy. The bill adds digital literacy to the
basic education offered to eligible adults.
The bill describes services that providers may offer to eligible
adults. The bill amends the reporting requirements for providers of the
program.
The bill allows community colleges, area technical colleges, and
local district colleges (colleges) to develop minimum graduation
requirements for a high school diploma based on the minimum high
school graduation guidelines adopted by the state board of education.
Colleges are authorized to award high school diplomas to students who
successfully complete the colleges' minimum high school graduation
requirements.

The office of future of work (OFW) was created in the department
of labor and employment (department) by executive order of the governor
in 2019 for the purpose of studying unemployment assistance. The bill
creates the OFW in statute and expands the duties of the OFW. The
purpose of the OFW is to:
  • Identify opportunities for Colorado's communities to
transition effectively to emerging industries;
  • Ensure the inclusion of key stakeholders and engage
partnerships across public and private sectors;
  • Host, organize, and convene task forces, summits, and
other appropriate meetings with diverse stakeholders,
designed to improve the state's understanding of the social
and economic impacts of the changing nature of work;
  • Explore ways that the state can prepare for current and
future impacts, including through the modernization of
worker benefits and protections, the development of a
skilled and resilient workforce through coordination of
registered apprenticeship programs, and the identification
of new policy and program solutions; and
  • Undertake studies, research, and factual reports related to
issues of concern and importance to Colorado's future
workforce.
The executive director of the department is required to submit a
report to the governor, at least once per calendar year, that includes
recommendations for potential policy initiatives.
In 2021, House Bill 21-1007 created the state apprenticeship
agency (SAA) in the department. The bill amends Colorado statutes to
enable the United States department of labor's office of apprenticeship to
recognize Colorado's state apprenticeship agency and authorize the SAA
to register and oversee apprenticeship programs. To conform with
regulations promulgated by the United States secretary of labor under the
federal National Apprenticeship Act, the bill:
  • Modifies references to apprenticeships in Colorado
statutes;
  • Changes the state apprenticeship council to the council for
apprenticeship in the building and construction trades; and
  • Changes the interagency advisory committee on
apprenticeship to the council for apprenticeship in new and
emerging industries.

To recompense the public employees' retirement association
(PERA) for the cancellation of a previously scheduled July 1, 2020, direct
distribution of $225 million, House Bill 22-1029 required an additional
direct distribution to PERA. However, the additional direct distribution
did not fully recompense PERA for the cancellation of the previously
scheduled direct distribution. To fully recompense PERA, the bill requires
the state treasurer to issue a warrant to PERA in an amount equal to
$35,050,000. The bill requires the warrant to consist of the balance of the
PERA payment cash fund, and any remaining amount must be paid from
the general fund.

Starting July 1, 2024, the bill prohibits employers from inquiring
about a prospective employee's age, date of birth, and dates of attendance
at or date of graduation from an educational institution on an employment
application.
An employer may request an individual to verify compliance with
age requirements imposed pursuant to or required by:
  • A bona fide occupational qualification pertaining to public
or occupational safety;
  • A federal law or regulation; or
  • A state or local law or regulation based on a bona fide
occupational qualification.
The department of labor and employment (department) is charged
with enforcing the requirements of the bill and may issue warnings and
orders of compliance for violations and, for second or subsequent
violations, impose civil penalties. A violation of the restrictions does not
create a private cause of action. The department is directed to adopt rules
regarding procedures for handling complaints against employers.

The bill eliminates the requirement that the department of
education administer a state assessment in social studies to elementary
and secondary students.

For the career development success program (program), the bill
removes the requirement for successful completion of a qualified industry
pre-apprenticeship program and the requirement for successful
completion of a qualified industry apprenticeship.
Current law requires the general assembly to annually appropriate
$1 million to the department of education for the program. Beginning in
the 2023-24 budget year, and each budget year thereafter, the bill increase
the appropriation to $10 million.
The bill requires a school district or charter school participating in
the program to receive 120% of the per-pupil amount for each pupil who
is eligible for free or reduced-price lunch and who successfully earned an
industry certificate by completing a qualified industry-credential program,
a qualified workplace training program, or a qualified advanced
placement course.
The bill authorizes a participating school district or participating
charter school to contract with a third party to provide specified services
under the program.
The bill extends the repeal date from September 1, 2024, to
September 1, 2034.

As an alternative route to teacher licensure, the bill creates a
teacher degree apprenticeship program (apprenticeship program), which
builds on elements of current alternative teacher licensure programs,
including a bachelor's degree requirement, training programs approved by
the state department of education (CDE), and structured on-the-job
training. The apprenticeship program is run collaboratively with the
United States department of labor apprenticeship office (DOL office) and
utilizes apprentice mentor teachers and apprenticeship program sponsors.
The bill allows CDE to issue a teacher apprenticeship
authorization (authorization) to a person (apprentice) who is employed by
a school district, board of cooperative services, charter school, or institute
charter school (school) who is actively registered in an apprenticeship
program, and who is actively enrolled in an affiliated bachelor's degree
program from an accredited institution. The authorization is valid for 4
years while the apprentice completes the bachelor's degree requirement
of the program. CDE may renew the authorization for 2 years. An
authorization is invalid if the apprentice withdraws from any part of the
apprenticeship program or fails to make satisfactory progress.
Upon application from an entity with expertise in apprenticeship
or teacher preparation, CDE shall authorize the entity to serve as a teacher
apprenticeship program sponsor (sponsor). Applications to serve as a
sponsor must include a proposed work process schedule and related
instruction required by the DOL office. CDE shall review each
application and approve or disapprove the sponsor. If approved, the
sponsor may apply to CDE for approval of an apprenticeship program.
An apprenticeship program must meet the following criteria:
  • Be registered with the DOL office;
  • Incorporate a bachelor's degree program from an accredited
institution in a related field of study relative to the licensure
type; and
  • Incorporate on-the-job training in meaningful and
time-saving ways.
Every 5 years after apprenticeship program approval, CDE shall
consult with the DOL office concerning the federally required audit of the
apprenticeship program to ensure the apprenticeship program continues
to meet requirements.

Current law limits the number of Colorado scholars that each
institution counts in an academic year to 8% of the total number of
in-state students. The bill increases that limit to 15%.
The bill permits a peace corps volunteer to be classified as an
in-state student for tuition purposes if the student was certified by the
director of the peace corps as having served satisfactorily as a peace corps
volunteer. A peace corps volunteer who is classified as an in-state student
must not be counted as a resident student for any purpose other than
tuition classification.
The bill permits a nonresident student athlete to be classified as an
in-state student for tuition purposes. A student athlete who is classified
as an in-state student may be counted as a resident student for any
purpose; except that such a student is not entitled to receive state financial
aid.

Legislative Interim Committee on School Finance. The bill
increases the required annual appropriation to the department of
education by an additional $40,203,671 to fund children who have one or
more disabilities and receive special education services from a school
district, board of cooperative services, a charter school network, a charter
school collaborative, or the state charter school institute that is providing
educational services to exceptional children.

Supplemental appropriations are made to the department of
education.

Joint Budget Committee. The general assembly recognizes that
the actual funded pupil count was lower and the at-risk pupil count was
higher than expected when the appropriation amount for the state share
of total program funding was established during the 2022 legislative
session, resulting in an overall increase in total program funding for the
2022-23 budget year.
In addition, the local property tax revenue and specific ownership
tax revenue are higher than anticipated, resulting in an increase in the
local share of total program funding.
The bill declares the general assembly's intent to maintain the
budget stabilization factor at the amount of the original appropriation for
the 2022-23 budget year.
The bill decreases the appropriation for the state share of total
program funding by $76,383,372 in cash funds from the state education
fund and adjusts the 2022-23 state fiscal year long bill accordingly.

In 2019, the general assembly created the Colorado state
apprenticeship resource directory (directory), which is a directory
established by the department of labor and employment (department) that
lists registered apprenticeship program sponsors that operate programs in
Colorado. The bill amends the information the department requires
apprenticeship programs to submit for the purpose of eliminating
confusion and gathering concise information to share with individuals
considering apprenticeships.
The bill also requires the department to include information
regarding each program's registration information and registered
apprenticeship program standards in the directory.
The bill requires the department, in its efforts to promote
awareness of the directory, to conduct annual outreach that includes
providing technical assistance and resources to promote apprenticeship
openings.

The bill establishes the universal high school scholarship program
(program) in the office of economic development (office) to provide
scholarships for the 2024-25 academic year to students who pursue an
in-demand or high-priority postsecondary pathway, including degrees,
certificates, and registered apprenticeships, with a provider on the eligible
training provider lists disseminated by the department of labor and
employment, a provider in the Colorado state apprenticeship resource
directory, a public or private institution of higher education operating in
Colorado, or an organization approved by the office (service providers).
The office, or a vendor contracted by the office, administers the
program. The office shall develop policies and procedures necessary to
administer the program.
A student is eligible for the program if the student graduated from
a Colorado high school or was awarded a high school equivalency
credential during the 2023-24 academic year; completes the free
application for federal student aid or the Colorado application for state
financial aid; and did not receive a grant from the Colorado opportunity
scholarship initiative.
Scholarships are awarded in the following priority: To all eligible
students who intend to enroll at a service provider to pursue an in-demand
or high-priority postsecondary pathway, then to other eligible students
who intend to enroll at a service provider. Each scholarship award is for
up to $1,500. Scholarship money is distributed to the service provider for
use by the student for tuition, fees, and books.
The bill requires the office to contract with vendors to provide
postsecondary and career advising at schools identified by the office.
The bill requires the general assembly to appropriate $25 million
for the program.

The bill requires a private occupational school to provide a notice
with the copy of the executed enrollment contract that explains that
credits from the school do not transfer to an institution of higher
education that has regional accreditation.

The bill:
  • Increases the statewide base per pupil funding for the
2023-24 budget year by $598.25, to account for inflation;
  • Sets as the new statewide base per pupil funding amount of
$8,076.41 for the 2023-24 budget year; and
  • Sets the target number for the 2023-24 budget year at not
less than $9,070,933,129.
Current law includes a 5-year averaging provision, which
determines a district's pupil count for each budget year by determining the
greater of the funded pupil count for the applicable budget year or an
average of one to 4 of the prior budget years. The bill provides a similar
averaging provision for the institute charter schools on a per-school basis.
For the 2023-24 budget year, the bill distributes $30 million to
large rural districts and small rural districts, including district charter
schools and each institute charter school whose accounting district is a
large or small rural district. Large rural districts receive 55% of the
appropriation, and small rural districts receive 45% of the appropriation.
The bill uses the districts' funded pupil count for the 2022-23 budget year.
The bill amends eligibility criteria for the mill levy override match
program to exclude an otherwise eligible school district from receiving
a state-funded override mill match if the sum of the district's override
mills is equal to or greater than the district's override mill capacity, as
defined by statute. For the 2023-24 budget year, the bill requires the
transfer of $23,376,536 from the state education fund to the mill levy
override match fund and finds that the override mill match is a program
for accountable education reform.
The bill requires the general assembly to appropriate $300,000
from the state education fund to the department of education (department)
for the purpose of reimbursing schools for expenses related to replacing
an American Indian mascot, and finds that reimbursing schools for these
expenses is a program for accountable education reform.
The bill requires the general assembly to appropriate from the state
education fund the amount necessary to provide universal screening to
identify gifted children through second grade by the 2027-28 budget year
and finds that universal screening is a program for accountable education
reform.
The bill specifies that for the purpose of any law, with certain
exceptions, that applies to or exempts a public entity or a public official,
a charter school has the same status as a school district, and certain
persons affiliated with the charter school have the same status as a
complementary counterpart in a school district. Furthermore, the bill
clarifies the application of certain laws to charter schools.
The bill permits the department of education (department), school
districts, and institute charter schools to consider life-cycle costs when
contracting for technology.
Under current law, every 3 years, the department is required to
prepare a report and evaluation on the successes or failures of charter
schools, school reform efforts, and suggested changes to laws affecting
charter schools. The bill makes this an annual requirement starting in the
2023-24 budget year.
Under current law, a new at-risk measure in the public school
funding formula must be implemented in the 2023-24 budget year. The
bill extends the implementation of this requirement to the 2024-25 budget
year, and requires the department to conduct pre-implementation
modeling and testing of total program funding using the new at-risk
factor, and report modeling and testing findings to the education
committees and joint budget committee.
The bill creates a public school finance task force for the purpose
of examining and making recommendations concerning school finance.
The task force is required to submit a report to the education committees
of the senate and house of representatives and the joint budget committee
by December 15, 2023. Furthermore, the task force is required to set
parameters to examine the adequacy of school finance in Colorado, and
the department is required to contract with two independent entities to
report their findings by January 1, 2025.
The bill extends child nutrition school lunch protection program
funding to be used to offset the costs incurred by a facility school in
providing lunch to students who are placed in the facility and eligible to
participate in the program.
The bill excludes the costs associated with providing for an
independent evaluation from the 20% of the money appropriated to the
Colorado imagination library program to be used by the contractor for
operating costs.
The bill appropriates $2.5 million to the mill levy equalization
fund from the general fund for the 2023-24 budget year.
The bill appropriates $500,000 to the department of education for
the purpose of translating individualized education program documents
if House Bill 23-1263 becomes law.

Section 3 of the bill requires the secretary of state to refer a ballot
issue to voters at the November 2023 election that asks voters whether
property taxes should be reduced and that seeks voter approval to retain
and spend excess state revenues that will be used to backfill some of the
reduced property tax revenue. Most of the bill only becomes effective if
the voters approve the ballot issue.
Local government property tax revenue limit. Beginning with
the 2023 property tax year, section 6 establishes a limit on specified
property tax revenue for local governments, excluding those that are
home rule and school districts, that is equal to inflation above the property
tax revenue from the prior property tax year (limit). A local government
may establish a temporary property tax credit, which does not change the
gross mill levy, that is up to the number of mills necessary to prevent the
local government's property tax revenue from exceeding the limit.
Alternatively, the governing board may approve a mill levy that would
cause the local government to exceed the limit, if the governing board
approves the mill levy at a public meeting that meets certain criteria.
Valuation changes. The valuation for assessment (valuation) of
nonresidential real and personal property, excluding producing mines and
lands or leaseholds producing oil or gas, is based on an assessment rate
of 29% of actual value, but currently, there are temporary reductions in
the valuation for certain subclasses of property. Section 8 creates the
additional temporary reductions. For the 2023 property tax year:
  • For lodging property, property listed under any improved
commercial subclass code, and all other nonresidential
property, excluding agricultural property and renewable
energy production property, the assessment rate is reduced
from 27.9% to 27.85%;
  • For renewable energy agricultural land, which is a newly
created subclass of agricultural property that is valued
under section 7, the assessment rate is reduced from 26.4%
to 21.9%.
Thereafter, the assessment rate for lodging property and all
nonresidential property, excluding agricultural property and renewable
energy production property and property that is not under a vacant land
subclass, is reduced from 29% to:
  • 27.85% for the 2024 through 2026 property tax years;
  • 27.65% for the 2027 and 2028 property tax years;
  • 26.9% for the 2029 and 2030 property tax years; and
  • 25.9% or 26.9% for the 2031 and 2032 property tax years,
depending on the increase in the valuation in the 32
counties with the smallest increases from the 2030 to 2031
property tax years (revenue increases).
The assessment rate for agricultural property, excluding renewable
energy agricultural land, and renewable energy property is reduced from
29% to:
  • 26.4% for the 2025 through 2030 property tax years; and
  • 25.9% or 26.4% for the 2031 and 2032 property tax years,
depending on the increase in the valuation in the 32
counties with the smallest revenue increases.
The assessment rate for renewable energy agricultural land is
reduced from 29% to 21.9% for the 2024 through 2032 property tax
years.
Beginning with the 2033 property tax year, all of the temporary
valuation reductions expire and the valuation of all nonresidential real
property is 29% of the actual value of the property.
The valuation of residential real property is based on an
assessment rate of 7.15% of actual value, but currently, there are
temporary reductions in the valuation. Section 9 further reduces the
valuation of residential real property. For the 2023 property tax year, the
valuation is reduced from 6.765% of the amount equal to the actual value
minus the lesser of $15,000 or the amount that causes the valuation to be
$1,000 (alternate amount) to 6.7% of the amount equal to the actual value
minus the lesser of $40,000 or the alternate amount.
For the 2024 property tax year, the valuation is reduced as follows:
  • For multi-family residential real property, the valuation is
reduced from 6.8% of the actual value to 6.7% of the
amount equal to the actual value minus the lesser of
$40,000 or the alternate amount; and
  • For all other residential real property, the valuation is
reduced from an estimate of 6.98% of the actual value to
6.7% of the amount equal to the actual value minus the
lesser of $40,000 or the alternate amount.
For the 2025 through 2032 property tax years:
  • For multi-family residential real property and primary
residence real property, including multi-family primary
residence real property, the valuation is reduced from
7.15% of the actual value to 6.7% of the actual value minus
the lesser of $40,000 or the alternate amount;
  • For qualified-senior primary residence real property,
including multi-family qualified-senior primary residence
real property, the valuation is reduced from 7.15% of the
actual value to 6.7% of the amount equal to the actual value
minus $140,000 or the alternate amount; and
  • For all other residential real property, the assessment rate
is reduced from 7.15% to 7.1%.
Beginning with the 2033 property tax year, all of the temporary
valuation reductions expire and the valuation of all residential real
property is 7.15% of the actual value of the property.
The bill also establishes that all of the temporary reductions in
valuation for residential and nonresidential property created in the bill are
contingent on the state's ability to retain and spend state surplus up to the
proposition HH cap. If, for any reason, excluding a legislative enactment
by the general assembly, the state is not permitted to retain and spend this
money, then the temporary reductions in the bill do not apply.
Section 11 creates the residential subclass of primary residence
real property for owner-occupiers and establishes administrative
procedures related to the classification that are based on the procedures
for the homestead exemption, with those procedures expanded to treat
civil union partners like spouses. Section 11 also creates the residential
subclass of qualified-senior primary residence real property, which is a
property with an owner-occupier who previously qualified for the senior
homestead exemption for a different property and who does not qualify
for the exemption for the current property tax year.
Sections 1, 12, 13, 15, and 16 delay deadlines as necessary due to
the valuation changes for the 2023 property tax year.
The state is currently required to reimburse local governmental
entities for property tax revenue lost as a result of the reductions in
valuation enacted in Senate Bill 22-238. Section 14 modifies this backfill
mechanism by:
  • Specifying that the amount of revenue lost for a property
tax year is based on a local governmental entity's mill levy
for the 2022 property tax year, excluding specified mills;
  • Including the additional property tax revenue reductions
that result from the bill in the backfill for the 2023 property
tax year;
  • Eliminating the maximum amount of the backfill for the
2023 property tax year that is a refund of excess state
revenues;
  • Extending the backfill for the 2024 through 2032 property
tax years for the valuation reductions in the bill, but making
a local governmental entity that has an increase in real
property total valuation of 20% or more from the 2022
property tax year ineligible for the backfill;
  • Creating the local government backfill cash fund, which
includes a $128 million general fund transfer, and requiring
the money from the fund to be used to backfill revenue to
local governments beginning with the 2024 property tax
year; and
  • Beginning with the 2024 property tax year, proportionally
reducing the amount that each eligible local government
receives, if necessary to avoid exceeding the total amount
that is available for the backfills statewide.
Section 14 also modifies the backfill mechanism to treat cities and
counties as counties instead of municipalities, and this change is not
contingent on voter-approval of the ballot issue. Section 18 requires the
department of revenue to calculate the amount of excess state revenues
that will be refunded for the fiscal year 2022-23 with and without the
changes from the bill.
Voter-approved revenue change. If the voters approve the
referred ballot issue, then the state will be authorized to retain and spend
revenues up to the proposition HH cap, created in section 3. For the
2023-24 fiscal year, the proposition HH cap is equal to the excess state
revenues cap for the prior fiscal year, adjusted for inflation plus 1% and
population changes. Thereafter, the proposition HH cap is equal to the
proposition HH cap for the prior fiscal year, adjusted for inflation plus
1% and population changes. The proposition HH cap is also annually
adjusted for the qualification or disqualification of enterprises and debt
service changes.
If the general assembly does not enact assessment rates for the
2033 property tax year that are the same or lower than the assessment
rates for the 2032 property tax year described above, then the proposition
HH cap is reduced to be equal to the excess state revenues cap, and the
state will retain $0 under this authority beginning with the 2031-32 fiscal
year. Thereafter, the general assembly may partially or wholly restore the
proposition HH cap without additional voter approval if the general
assembly enacts valuation reductions equal to or greater than those for the
2032 property tax year.
The amount retained under this authority is first used in the
following fiscal year to backfill certain local governments for the reduced
property tax revenue as a result of the property tax changes in the bill and
Senate Bill 22-238, and the remainder is transferred to the state education
fund to offset the revenue that school districts lose as a result of the
property tax changes. Section 5 requires the state controller to include the
new voter-approved revenue change in the annual report on TABOR
revenues.
Sections 2, 4, 10, and 17 make conforming amendments related
to the valuation changes and related procedures and the voter-approved
revenue changes.