A Bill for an Act
Page 1, Line 101Concerning the implementation of proposition 130, and, in
Page 1, Line 102connection therewith, making an appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)
Joint Budget Committee. At the November 2024 statewide election, voters approved proposition 130, which requires the state to provide $350 million in additional funding to local law enforcement agencies to improve recruitment, training, and retention of local law enforcement officers and to provide a $1 million death benefit to the family of a first responder who is killed in the line of duty. The bill modifies and implements proposition 130.
The bill creates the peace officer training and support fund (fund). The bill establishes a formula by which the department of public safety (department) disburses $350 million in additional funding to local law enforcement agencies from the fund for permissible purposes. Permissible purposes include the recruitment of peace officers, the hiring of additional peace officers to address specific geographic areas or specific types of criminal activity, the initial and continuing education and training for peace officers, and the compensation of peace officers. No later than January 15, 2026, the department is required to adopt policies and procedures to assist in the determination whether the expenditure of money received from the fund is for a permissible purpose.
Beginning July 1, 2026, the formula requires the department to disburse an amount to each law enforcement agency equal to the total of $15,000 and an amount multiplied by the number of P.O.S.T-certified officers, noncertified deputy sheriffs, and detention officers budgeted by a local government for the law enforcement agency. Law enforcement agencies and local governments may not use these funds to supplant or supplement other spending. Local governments must include evidence of compliance with the supplanting and supplementing requirement in their annual audit and provide a copy of this audit to the department. The department must review an audit provided by a local government for compliance with the requirements of the bill.
The bill also establishes funding for the fund. First, the bill directs the state treasurer to transfer $15 million from the general fund to the fund on July 1, 2026. Second, the bill directs the state treasurer to issue a warrant from the general fund of $500 million to the public employees' retirement association (PERA) on July 1, 2025. Beginning July 1, 2027, until the state treasurer has transferred a total of $350 million from the general fund to the fund:
- The amount of each annual direct distribution made by the state to PERA is reduced by the amount of PERA's earnings from the $500 million, up to a maximum of $35 million; and
- The state treasurer annually transfers an amount equal to the amount of PERA's earnings from the $500 million, up to a maximum of $35 million, from the general fund to the fund.
However, beginning July 1, 2027, and each July 1 thereafter until the state treasurer has transferred a total of $350 million from the general fund to the fund, the state treasurer is required to transfer at least $15 million from the general fund to the fund regardless of the amount of PERA's earnings from the $500 million.
The bill clarifies that the $500 million in the warrant that the state treasurer transfers to PERA is included in the general fund reserve. Accordingly, the bill prohibits a future general assembly from lowering the general fund reserve to an amount less than $1 billion. If the general assembly does so reduce the reserve, the general assembly shall also make corresponding reductions to the direct distributions made by the state to PERA. The bill also requires the governor to adjust general fund expenditures so that they do not result in the general fund reserve being reduced to an amount less than $1 billion.
The bill establishes a process by which the department distributes a $1 million death benefit to the family of a first responder who dies on or after November 5, 2024, as either the direct and proximate result of a personal injury sustained while performing official duties as a first responder or because of an occupational disease arising out of and in the course of the first responder's employment or service as a first responder. These payments are paid out of the death benefit fund, which is created in the bill. The bill requires the state treasurer to transfer $5 million from the general fund to the death benefit fund on both July 1, 2026, and July 1, 2027, and to make annual transfers from the general fund thereafter as necessary to ensure that the fund maintains a balance of $10 million. The bill also requires a survivor of an eligible first responder to deduct an amount equal to these payments from their federal taxable income for the purpose of determining their state income tax liability unless the survivor qualifies for a corresponding federal income tax deduction.
The bill also requires the department to provide technical assistance to law enforcement agencies and local governments in complying with the requirements of the bill and allows the executive director of the department to adopt rules as necessary to implement the bill.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 3, Line 2SECTION 1. In Colorado Revised Statutes, repeal 24-33.5-503 (1)(gg).
Page 3, Line 3SECTION 2. In Colorado Revised Statutes, repeal 24-33.5-535.
SECTION 3. In Colorado Revised Statutes, repeal 24-33.5-538.
Page 3, Line 4SECTION 4. In Colorado Revised Statutes, add 24-33.5-121 as follows:
Page 3, Line 524-33.5-121. Peace officer training and support fund - peace
Page 3, Line 6officer training and support distribution - first responder death
Page 3, Line 7benefit administration - death benefit fund - rules - definitions -
Page 4, Line 1repeal. (1) Definitions.As used in this section, unless the context otherwise requires:
Page 4, Line 2(a) "Child" means a first responder's adopted child,
Page 4, Line 3stepchild, or biological child and includes a biological child born after the eligible first responder's death.
Page 4, Line 4(b) "Firefighter" has the same meaning as set forth in section 29-5-501 (2).
Page 4, Line 5(c) "First responder" means a peace officer, firefighter, or emergency medical service provider.
Page 4, Line 6(d) "Fulfillment year" means the state fiscal year during
Page 4, Line 7which the state treasurer has transferred a total of three
Page 4, Line 8hundred fifty million dollars to the fund pursuant to subsection (2)(b) of this section.
Page 4, Line 9(e) "Fund" means the peace officer training and support fund established in subsection (2) of this section.
Page 4, Line 10(f) "Law enforcement agency" means a county sheriff's
Page 4, Line 11office, a municipal police department, a town marshal's office, or a municipal court.
Page 4, Line 12(g) "Occupational disease" means, but is not limited to,
Page 4, Line 13cancers, respiratory illnesses, cardiovascular conditions, and
Page 4, Line 14other diseases or conditions that are reasonably determined to
Page 4, Line 15have arisen from exposure to hazardous substances, extreme
Page 4, Line 16physical exertion, or traumatic events while serving as a first responder.
Page 4, Line 17(h) "Parent" means a first responder's biological parent or adoptive parent.
Page 4, Line 18(i) "Peace officer" means a certified peace officer
Page 5, Line 1described in section 16-2.5-102 and a noncertified deputy sheriff or detention officer as described in section 16-2.5-103 (2).
Page 5, Line 2(j) (I) "Permissible purpose" means the recruitment of peace
Page 5, Line 3officers, the initial and continuing education and training of peace officers, and the compensation of peace officers.
Page 5, Line 4(II) As used in this subsection (1)(j):
Page 5, Line 5(A) "Initial and continuing education" includes the
Page 5, Line 6payment of tuition or the reimbursement of tuition for
Page 5, Line 7successful completion of a training academy, program costs for
Page 5, Line 8pre-apprenticeship and apprenticeship programs for peace officer
Page 5, Line 9careers, scholarships for peace officer training, making student
Page 5, Line 10loan payments for a peace officer's student loans related to the
Page 5, Line 11costs of becoming a peace officer, and providing continuing education opportunities for peace officers;
Page 5, Line 12(B) "Compensation" includes peace officer pay and bonuses for peace officer hiring, rehiring, merit, or retention; and
Page 5, Line 13(C) "Recruitment" includes housing assistance while
Page 5, Line 14attending peace officer training and continuing education or
Page 5, Line 15other training programs if it is necessary because of the time or
Page 5, Line 16distance required to commute, providing or assisting in the
Page 5, Line 17provision of childcare for peace officers, and providing or
Page 5, Line 18assisting in the provision of cardiovascular and other health screenings.
Page 5, Line 19(k) "Spouse" means an individual to whom an eligible first
Page 5, Line 20responder is married or with whom an eligible first responder has established a civil union.
Page 5, Line 21(l) "Training academy" has the same meaning as set forth in section 24-31-304 (1).
Page 6, Line 1(2) Peace officer training and support fund. (a) The peace
Page 6, Line 2officer training and support fund is created in the state
Page 6, Line 3treasury. The fund consists of gifts, grants, donations, money
Page 6, Line 4credited to the fund pursuant to this section, and any other
Page 6, Line 5money that the general assembly may appropriate or transfer to the fund.
Page 6, Line 6(b) (I) (A) On July 1, 2026, the state treasurer shall
Page 6, Line 7transfer fifteen million dollars from the general fund to the fund.
Page 6, Line 8(B) In state fiscal year 2026-27, the general assembly may
Page 6, Line 9appropriate twenty million dollars from the general fund to the fund.
Page 6, Line 10(II) On July 1, 2027, and each July 1 thereafter through
Page 6, Line 11July 1 of the fulfillment year, the state treasurer shall
Page 6, Line 12transfer an amount equal to the greater of fifteen million
Page 6, Line 13dollars or the adjusted investment amount from the general fund to the fund.
Page 6, Line 14(III) As used in this subsection (2)(b), unless the context otherwise requires:
Page 6, Line 15(A) "Adjusted investment amount" means, for any year,
Page 6, Line 16the reported reduction in that year minus the backfill amount and plus the payback amount.
Page 6, Line 17(B) "Backfill amount" means the cumulative difference
Page 6, Line 18between the reported reduction and fifteen million dollars in
Page 6, Line 19every previous year in which the reported reduction was less
Page 6, Line 20than fifteen million dollars.
Page 7, Line 1(C) "Reported reduction" means, for any year, the amount
Page 7, Line 2of the reduction in the warrant issued pursuant to section
Page 7, Line 324-51-414 (1) reported to the state treasurer by the office of
Page 7, Line 4state planning and budgeting pursuant to section 24-51-414 (8.5)(a)(II).
Page 7, Line 5(D) "Payback amount" means the cumulative difference
Page 7, Line 6between the reported reduction and the amount that the state
Page 7, Line 7treasurer transferred from the general fund to the fund in
Page 7, Line 8every previous year in which the reported reduction was greater than fifteen million dollars.
Page 7, Line 9(c) The state treasurer shall credit all interest and
Page 7, Line 10income derived from the deposit and investment of money in the fund to the general fund.
Page 7, Line 11(d) Money in the fund is continuously appropriated to the
Page 7, Line 12department for the department to distribute in accordance with subsection (3)(b) of this section.
Page 7, Line 13(3) Peace officer training and support distribution. (a) Law
Page 7, Line 14enforcement agency certification.On or before December 15, 2026,
Page 7, Line 15and each December 15 thereafter through the fulfillment year,
Page 7, Line 16a law enforcement agency may submit a certification to the
Page 7, Line 17department in a form and manner determined by the department. The certification shall include:
Page 7, Line 18(I) The number of peace officers that the relevant local
Page 7, Line 19government has budgeted for the law enforcement agency in the upcoming year;
Page 7, Line 20(II) The total dollar amount that the relevant local
Page 7, Line 21government budgeted for the law enforcement agency to expend for a permissible purpose;
Page 8, Line 1(III) A resolution or ordinance adopted by the relevant
Page 8, Line 2local government that the local government will only expend
Page 8, Line 3money awarded by the department from the fund in accordance with the requirements of subsection (3)(c) of this section; and
Page 8, Line 4(IV) If the law enforcement agency is a sheriff's office, a
Page 8, Line 5certification by the law enforcement agency that it will only
Page 8, Line 6expend money awarded by the department from the fund in
Page 8, Line 7accordance with the requirements of subsection (3)(c) of this section.
Page 8, Line 8(b) Distribution formula. (I) No later than December 31,
Page 8, Line 92026, and each December 31 thereafter through the fulfillment
Page 8, Line 10year, the department shall annually disburse from the fund to
Page 8, Line 11each eligible law enforcement agency an amount equal to the
Page 8, Line 12base amount plus the total of the number of peace officers that
Page 8, Line 13the law enforcement agency identified for that year pursuant
Page 8, Line 14to subsection (3)(a)(I) of this section multiplied by the peace officer adjustment.
Page 8, Line 15(II) As used in this subsection (3)(b), unless the context otherwise requires:
Page 8, Line 16(A) "Base amount" means fifteen thousand dollars.
Page 8, Line 17(B) "Eligible law enforcement agency" means, for any
Page 8, Line 18year, a law enforcement agency that submits a certification to
Page 8, Line 19the department in that year pursuant to subsection (3)(a) of this section.
Page 8, Line 20(C) "Peace officer adjustment" means, for any year, an
Page 8, Line 21amount equal to the amount that the state treasurer
Page 9, Line 1transferred to the fund in that year pursuant to subsection
Page 9, Line 2(2)(b) of this section, minus the amount appropriated by the
Page 9, Line 3general assembly pursuant to subsection (2)(d) of this section
Page 9, Line 4for the fiscal year that commences in that year, minus the base
Page 9, Line 5amount multiplied by the number of eligible law enforcement
Page 9, Line 6agencies that year, divided by the total number of peace officers
Page 9, Line 7that eligible law enforcement agencies identified pursuant to subsection (3)(a) of this section that year.
Page 9, Line 8(c) Supplanting and supplementing. (I) (A) A law
Page 9, Line 9enforcement agency shall only spend, and a local government
Page 9, Line 10shall only budget for a law enforcement agency to spend, any
Page 9, Line 11money received pursuant to this subsection (3) for a permissible purpose; and
Page 9, Line 12(B) A law enforcement agency shall spend, and a local
Page 9, Line 13government shall budget for a law enforcement agency to
Page 9, Line 14spend, the money that the law enforcement agency receives
Page 9, Line 15pursuant to this subsection (3) to increase funding that would,
Page 9, Line 16in the absence of money from the fund, be made available from
Page 9, Line 17other state or local sources. A law enforcement agency shall
Page 9, Line 18not spend, and a local government shall not budget for a law
Page 9, Line 19enforcement agency to spend, money that the law enforcement
Page 9, Line 20agency receives pursuant to this subsection (3) to supplant
Page 9, Line 21other money that would, in the absence of the money received
Page 9, Line 22pursuant to this subsection (3), be made available from other state and local sources for a permissible purpose.
Page 9, Line 23(II) A law enforcement agency or a local government is
Page 9, Line 24presumed to have violated subsection (3)(c)(I)(B) of this section
Page 10, Line 1if the law enforcement agency or local government reduces or
Page 10, Line 2replaces the budgeting with or expenditure of federal, local, or
Page 10, Line 3state money in the immediately preceding year used for a
Page 10, Line 4permissible purpose with money received pursuant to this
Page 10, Line 5subsection (3) because the local government already budgeted
Page 10, Line 6for or the law enforcement agency already expected or received money pursuant to this subsection (3); and
Page 10, Line 7(III) A law enforcement agency or local government
Page 10, Line 8rebuts a presumption established pursuant to subsection (3)(c)(II)
Page 10, Line 9of this section if the law enforcement agency or local government establishes by contemporaneous records that:
Page 10, Line 10(A) The law enforcement agency or local government
Page 10, Line 11reduced or eliminated expenditures for multiple purposes other than for a permissible purpose;
Page 10, Line 12(B) There was a reduction in federal, local, or state
Page 10, Line 13money paid to the law enforcement agency or local government for a permissible purpose; and
Page 10, Line 14(C) The law enforcement agency or local government
Page 10, Line 15reduced or eliminated permissible purpose expenditures without
Page 10, Line 16taking into consideration the receipt or expected receipt of money pursuant to this subsection (3).
Page 10, Line 17(IV) The department may enforce the requirements of this
Page 10, Line 18subsection (3) through the review of audits pursuant to section
Page 10, Line 1929-1-603 (6)(b) and may take corrective action by working with
Page 10, Line 20a law enforcement agency to ensure compliance with this subsection (3).
Page 11, Line 1(4) First responder death benefit administration. (a) (I) If the
Page 11, Line 2executive director determines that a first responder has died on
Page 11, Line 3or after November 5, 2024, as the direct and proximate result of
Page 11, Line 4a personal injury sustained while performing their official
Page 11, Line 5duties or because of an occupational disease arising out of and
Page 11, Line 6in the course of their employment or service as a first responder,
Page 11, Line 7the department shall pay a benefit of one million dollars from
Page 11, Line 8the death benefit fund created in subsection (4)(e)(I) of this
Page 11, Line 9section as follows, if the indicated payee is living on the date on
Page 11, Line 10which the executive director makes the determination described in this subsection (4)(a)(I):
Page 11, Line 11(A) If there is no child who survived the first responder, to the surviving spouse of the first responder;
Page 11, Line 12(B) If there is at least one child who survived the first
Page 11, Line 13responder and a surviving spouse of the first responder, fifty
Page 11, Line 14percent to the surviving child or children, in equal shares, and fifty percent to the surviving spouse;
Page 11, Line 15(C) If there is no surviving spouse of the first responder, to the surviving child or children, in equal shares;
Page 11, Line 16(D) If there is no surviving spouse of the first responder
Page 11, Line 17and no surviving child, to the surviving individual or individuals
Page 11, Line 18designated by the first responder in the most recently executed
Page 11, Line 19designation of beneficiary on file at the time of death with the
Page 11, Line 20governing body or state agency, apportioned in accordance with
Page 11, Line 21the designation of beneficiary or, if apportionment is not indicated, in equal shares;
Page 11, Line 22(E) If there is no surviving spouse of the first responder,
Page 12, Line 1no surviving child of the eligible first responder, and no
Page 12, Line 2individual qualifying under subsection (4)(a)(I)(D) of this
Page 12, Line 3section, to the surviving beneficiaries under the most recently
Page 12, Line 4executed life insurance policy of the first responder on file at
Page 12, Line 5the time of death with the governing body or state agency,
Page 12, Line 6apportioned in accordance with the insurance policy or, if apportionment is not indicated, in equal shares; or
Page 12, Line 7(F) If there is no individual qualifying under subsections
Page 12, Line 8(4)(a)(I)(A) to (4)(a)(I)(E) of this section, to the surviving parent or parents, in equal shares, of the first responder; and
Page 12, Line 9(II) If the executive director is unable to identify an
Page 12, Line 10individual described by subsections (4)(a)(I)(A) to (4)(a)(I)(F) of
Page 12, Line 11this section for a first responder, then no payment is made pursuant to this section for that first responder.
Page 12, Line 12(b) If the executive director determines that a first
Page 12, Line 13responder has died on or after November 5, 2024, as the direct
Page 12, Line 14and proximate result of a personal injury sustained while
Page 12, Line 15performing their official duties or because of an occupational
Page 12, Line 16disease arising out of and in the course of their employment or
Page 12, Line 17service as a first responder, if that first responder has died
Page 12, Line 18after separation from service as a first responder, while on an
Page 12, Line 19authorized leave of absence as a first responder, or while
Page 12, Line 20performing qualified military service, as defined in 26 U.S.C. sec.
Page 12, Line 21414 (u)(5), the department shall pay a benefit to a payee in
Page 12, Line 22connection with that first responder in accordance with subsection (4)(a) of this section.
Page 12, Line 23(c) A payment under this section shall not be used to
Page 13, Line 1offset or reduce payments available from any other source,
Page 13, Line 2including a public disability plan or insurance plan, private
Page 13, Line 3disability plan or insurance plan, or benefits provided under Colorado's workers' compensation law.
Page 13, Line 4(d) (I) The executive director shall determine whether a
Page 13, Line 5first responder whose death results in a payment pursuant to
Page 13, Line 6this subsection (4) qualifies for line-of-duty status under
Page 13, Line 7section 101 (h) of the federal "Internal Revenue Code of 1986"
Page 13, Line 8and whether any of the exceptions specified in section 101 (h)(2)
Page 13, Line 9of the federal "Internal Revenue Code of 1986" are applicable
Page 13, Line 10and shall inform the taxpayer who receives the payment and the department of revenue of the executive director's decision.
Page 13, Line 11(II) A taxpayer who receives a payment pursuant to this
Page 13, Line 12subsection (4), and does not qualify for line-of-duty status
Page 13, Line 13under section 101 (h) of the federal "Internal Revenue Code of
Page 13, Line 141986", shall, pursuant to section 39-22-104 (4)(dd), subtract the
Page 13, Line 15amount of the payment from the taxpayer's federal taxable
Page 13, Line 16income, and the executive director shall provide the taxpayer
Page 13, Line 17and the department of revenue any information deemed
Page 13, Line 18necessary by the department of revenue for this tax subtraction.
Page 13, Line 19(e) (I) The death benefit fund is created in the state
Page 13, Line 20treasury. The fund consists of gifts, grants, and donations
Page 13, Line 21credited to the fund and any other money that the general assembly may appropriate or transfer to the fund.
Page 13, Line 22(II) In accordance with section 24-36-114 (1), the state
Page 13, Line 23treasurer shall credit all interest and income derived from the
Page 14, Line 1deposit and investment of money in the death benefit fund to the general fund.
Page 14, Line 2(III) (A) Money in the fund is annually appropriated to the
Page 14, Line 3department for paying benefits pursuant to this subsection (4)
Page 14, Line 4and for the direct and indirect costs of administering this subsection (4).
Page 14, Line 5(B) The department may expend no more than two percent
Page 14, Line 6of the money that the general assembly annually appropriates
Page 14, Line 7to the death benefit fund for the direct and indirect costs of administering this subsection (4).
Page 14, Line 8(IV) (A) On July 1, 2025, and July 1, 2026, the state
Page 14, Line 9treasurer shall transfer five million dollars from the general fund to the death benefit fund.
Page 14, Line 10(B) On July 1, 2027, and each July 1 thereafter, if the
Page 14, Line 11balance of the death benefit fund is less than ten million
Page 14, Line 12dollars, on July 2 of that year, the state treasurer shall
Page 14, Line 13transfer an amount from the general fund to the death benefit
Page 14, Line 14fund equal to the difference between ten million dollars and the balance of the death benefit fund.
Page 14, Line 15(5) Technical assistance.The department shall, subject to
Page 14, Line 16available appropriations, provide technical assistance to law
Page 14, Line 17enforcement agencies and local governments in complying with the requirements of this section and section 29-1-603.
Page 14, Line 18(6) Rules.The executive director shall adopt rules that
Page 14, Line 19specify standards and establish procedures as necessary to
Page 14, Line 20determine whether section 101 (h) of the federal "Internal
Page 14, Line 21Revenue Code of 1986", as amended, applies to a payment
Page 15, Line 1awarded pursuant to subsection (4) of this section and may adopt additional rules as necessary to implement this section.
Page 15, Line 2SECTION 5. In Colorado Revised Statutes, 24-51-414, amend (1)(a) and (4); and add (8.5) as follows:
Page 15, Line 324-51-414. Direct distribution - definitions. (1) (a) Except as
Page 15, Line 4otherwise provided in
subsections (6), (7), and (8)Page 15, Line 5(8), and (8.5) of this section, on July 1, 2018, on July 1, 2019, on July 1,
Page 15, Line 62021, and on July 1 each year thereafter until there are no unfunded
Page 15, Line 7actuarial accrued liabilities of any division of the association that receives
Page 15, Line 8the distribution pursuant to this section, the state treasurer shall issue a
Page 15, Line 9warrant to the association in an amount equal to two hundred twenty-five
Page 15, Line 10million dollars. Such amount shall be paid to the association from the general fund, or any other fund, subject to section 24-51-413.
Page 15, Line 11(4) (a) The association shall allocate the direct distribution to the
Page 15, Line 12trust funds of each division of the association as it would an employer
Page 15, Line 13contribution, in a manner that is proportionate to the annual payroll of
Page 15, Line 14each division as reported to the association; except that the association
Page 15, Line 15shall not allocate any portion of the direct distribution amount to the local government division of the association.
Page 15, Line 16(b) (I) Notwithstanding any provision of this subsection (4)
Page 15, Line 17to the contrary, on or after July 1, 2025, if the allocation
Page 15, Line 18methodology described in this subsection (4) would result in the
Page 15, Line 19blended total contribution amount equaling less than
Page 15, Line 20ninety-eight percent of the blended total required contribution
Page 15, Line 21the association may instead allocate the direct distribution to
Page 15, Line 22the trust funds of each division of the association in an
Page 15, Line 23actuarial manner as necessary to achieve at least ninety-eight
Page 16, Line 1percent of the blended total required contribution; except that
Page 16, Line 2the association shall not allocate any portion of the direct
Page 16, Line 3distribution amount to the local government division of the association.
Page 16, Line 4(II) As used in this subsection (4)(b), unless the context otherwise requires:
Page 16, Line 5(A) "Blended total contribution amount" has the same meaning as in section 24-51-413 (1)(a).
Page 16, Line 6(B) "Blended total required contribution" has the same meaning as in section 24-51-413 (1)(b).
Page 16, Line 7(C) "Fulfillment year" has the same meaning as set forth in subsection (8.5)(d)(III) of this section.
Page 16, Line 8(8.5) (a) (I) The amount of a warrant to be issued on July
Page 16, Line 91, 2027, and each July 1 thereafter through the fulfillment
Page 16, Line 10year, to the association pursuant to subsection (1) of this
Page 16, Line 11section is reduced by the least of thirty-five million dollars,
Page 16, Line 12the deferred inflow of resources amount, the deferred inflow
Page 16, Line 13of resources amount multiplied by the annual rate of return on
Page 16, Line 14investments for the association in the immediately preceding
Page 16, Line 15association fiscal year as published in the relevant annual
Page 16, Line 16actuarial valuation report pursuant to section 25-41-204 (7), or
Page 16, Line 17the amount necessary for the total amount transferred by the
Page 16, Line 18state treasurer to the peace officer training and support fund
Page 16, Line 19pursuant to section 24-33.5-121 (2)(b) to equal three hundred
Page 16, Line 20fifty million dollars; except that, if the amount of the warrant
Page 16, Line 21is reduced pursuant to section 24-75-201.1 (5)(b)(II), the amount
Page 16, Line 22of the warrant is not also reduced pursuant to this subsection (8.5)(a)(I).
Page 17, Line 1(II) On or before June 30, 2027, and each June 30 thereafter
Page 17, Line 2through the fulfillment year, the office of state planning and
Page 17, Line 3budgeting shall report to the state treasurer the amount by
Page 17, Line 4which the warrant issued to the association pursuant to
Page 17, Line 5subsection (1) of this section is reduced pursuant to subsection(8.5)(a)(I) of this section.
Page 17, Line 6(b) (I) On or before June 30, 2034, and each June 30
Page 17, Line 7thereafter through the fulfillment year, the office of state
Page 17, Line 8planning and budgeting shall calculate, for the purposes of
Page 17, Line 9determining the adjusted warrant reduction amount and the fulfillment year:
Page 17, Line 10(A) The total of the amount that the state treasurer has
Page 17, Line 11previously transferred to the peace officer training and support
Page 17, Line 12fund pursuant to section 24-33.5-121 (2)(b) and the amount that
Page 17, Line 13the state treasurer is projected to transfer to the peace officer
Page 17, Line 14training and support fund pursuant to section 24-33.5-121 (2)(b) on July 1 of the next state fiscal year; and
Page 17, Line 15(B) The total of the amount described in subsection
Page 17, Line 16(8.5)(b)(I)(A) of this section and the amount that the state
Page 17, Line 17treasurer is projected to transfer to the peace officer training
Page 17, Line 18and support fund pursuant to section 24-33.5-121 (2)(b) on July 1
Page 17, Line 19of the next state fiscal year immediately succeeding the next state fiscal year.
Page 17, Line 20(II) If the total amount calculated by the office of state
Page 17, Line 21planning and budgeting pursuant to subsection (8.5)(b)(I)(A) of
Page 17, Line 22this section exceeds three hundred fifty million dollars, the
Page 18, Line 1office of state planning and budgeting shall report to the state
Page 18, Line 2treasurer, the association, the department of public safety, and
Page 18, Line 3the joint budget committee that the next state fiscal year is projected to be the fulfillment year.
Page 18, Line 4(III) If the total amount calculated by the office of state
Page 18, Line 5planning and budgeting pursuant to subsection (8.5)(b)(I)(B) of
Page 18, Line 6this section exceeds three hundred fifty million dollars, the
Page 18, Line 7office of state planning and budgeting shall report to the joint
Page 18, Line 8budget committee of the general assembly that the office of
Page 18, Line 9state planning and budgeting projects that the state fiscal year
Page 18, Line 10immediately succeeding the next state fiscal year is projected to be the fulfillment year.
Page 18, Line 11(c) (I) The association shall deem the amount of the
Page 18, Line 12warrant issued by the state treasurer pursuant to section
Page 18, Line 1324-75-201.1 (5)(a)(I), any earnings on that amount, and any
Page 18, Line 14adjustments made pursuant to subsection (8.5)(c)(II) of this section as a deferred inflow of resources.
Page 18, Line 15(II) For 2027, and each year thereafter through the
Page 18, Line 16fulfillment year, if, pursuant to subsection (8.5)(a)(I) of this
Page 18, Line 17section or section 24-75-201.1 (5)(b)(II), there is a reduction in the
Page 18, Line 18amount of the warrant to be issued to the association pursuant
Page 18, Line 19to subsection (1) of this section, the association shall recognize
Page 18, Line 20a portion of the deferred inflow of resources amount equal to
Page 18, Line 21the amount of that reduction as a direct distribution subject to allocation pursuant to subsection (4) of this section.
Page 18, Line 22(III) After the fulfillment year, the association may
Page 18, Line 23recognize any amount of deferred inflow of resources as a
Page 19, Line 1direct distribution for purposes of section 24-51-413 (1), as necessary pursuant to subsection (4)(b) of this section.
Page 19, Line 2(d) As used in this subsection (8.5), unless the context otherwise requires:
Page 19, Line 3(I) "Adjusted warrant reduction amount" means the
Page 19, Line 4amount necessary to ensure that the state treasurer transfers
Page 19, Line 5a total amount equal to three hundred fifty million dollars to
Page 19, Line 6the peace officer training and support fund pursuant to section24-33.5-121 (2)(b).
Page 19, Line 7(II) "Deferred inflow of resources amount" means the
Page 19, Line 8amount designated as a deferred inflow of resources by the association pursuant to subsection (8.5)(c)(I) of this section.
Page 19, Line 9(III) "Fulfillment year" means the first state fiscal year
Page 19, Line 10during which the total amount transferred by the state
Page 19, Line 11treasurer to the peace officer training and support fund
Page 19, Line 12pursuant to section 24-33.5-121 (2)(b) equals or exceeds three hundred fifty million dollars.
Page 19, Line 13SECTION 6. In Colorado Revised Statutes, 24-75-201.1, amend (5) as follows:
Page 19, Line 1424-75-201.1. Restriction on state appropriations - legislative
Page 19, Line 15declaration - definitions - repeal. (5) (a) (I) On or after July 1, 2025,
Page 19, Line 16and before October 1, 2025, the state treasurer shall issue
Page 19, Line 17multiple warrants to the public employees' retirement
Page 19, Line 18association totaling an amount equal to five hundred million dollars from the general fund; and
Page 19, Line 19(II) For the purpose of determining the unrestricted
Page 19, Line 20general fund year-end balances pursuant to this section, the
Page 20, Line 1five hundred million dollars in the warrant issued by the state
Page 20, Line 2treasurer pursuant to subsection (5)(a)(I) of this section is included in those balances.
Page 20, Line 3(b) (I) Until the state fiscal year after the fulfillment
Page 20, Line 4year, the general assembly shall not reduce the fiscal year
Page 20, Line 5unrestricted general fund year-end balances that must be
Page 20, Line 6retained as a reserve to an amount less than one billion dollars
Page 20, Line 7without also reducing the amount of the warrant described in section 24-51-414;
Page 20, Line 8(II) If, during a state fiscal year before the year after the
Page 20, Line 9fulfillment year, the general assembly reduces the fiscal year
Page 20, Line 10unrestricted general fund year-end balances that must be
Page 20, Line 11retained as a reserve to an amount less than one billion
Page 20, Line 12dollars, notwithstanding any law to the contrary, the general
Page 20, Line 13assembly shall reduce the total amount of the warrant
Page 20, Line 14described in section 24-51-414 for one or more fiscal years by a
Page 20, Line 15total amount equal to the difference, not to exceed the
Page 20, Line 16remaining deferred inflow of resources amount, between the
Page 20, Line 17fiscal year unrestricted general fund year-end balances that must be retained as a reserve and one billion dollars; and
Page 20, Line 18(III) As used in subsection (1)(d) of this section and in this subsection (5)(b), unless the context otherwise requires:
Page 20, Line 19(A) "Deferred inflow of resources amount" has the same meaning as in section 24-51-414 (8.5)(e)(II).
Page 20, Line 20(B) "Fulfillment year" means the first state fiscal year
Page 20, Line 21during which the state treasurer has transferred a total of
Page 20, Line 22three hundred fifty million dollars to the fund.
Page 21, Line 1SECTION 7. In Colorado Revised Statutes, 24-75-201.5, add (1)(h) as follows:
Page 21, Line 224-75-201.5. Revenue shortfalls - required actions by the
Page 21, Line 3governor with respect to the reserve. (1) (h) Whenever the revenue
Page 21, Line 4estimate for the current fiscal year, prepared in accordance
Page 21, Line 5with section 24-75-201.3 (2), indicates that general fund
Page 21, Line 6expenditures for that fiscal year based on appropriations then
Page 21, Line 7in effect will result in the use of an amount of the reserve
Page 21, Line 8required by section 24-75-201.1 (1)(d) that would result in that
Page 21, Line 9reserve equaling less than one billion dollars, the governor
Page 21, Line 10shall formulate a plan for reducing such general fund
Page 21, Line 11expenditures so that said reserve, as of the close of the fiscal
Page 21, Line 12year, will be at least one billion dollars. The governor shall
Page 21, Line 13promptly notify the general assembly of the plan and promptly
Page 21, Line 14implement the plan in accordance with section 24-2-102 (4) or 24-50-109.5 or any other lawful means.
Page 21, Line 15SECTION 8. In Colorado Revised Statutes, 29-1-603, add (6) as follows:
Page 21, Line 1629-1-603. Audits required. (6) (a) For the audit of a local
Page 21, Line 17government for any budget year in which a law enforcement
Page 21, Line 18agency that the local government establishes a budget for
Page 21, Line 19receives funds from the peace officer training and support fund
Page 21, Line 20established in section 24-33.5-121 (2), the audit report for that
Page 21, Line 21local government shall include evidence that the local
Page 21, Line 22government complied with the requirements of section
Page 21, Line 2324-33.5-121 (3). The evidence in the audit report shall include the
Page 21, Line 24amount distributed by the department of public safety to the
Page 22, Line 1law enforcement agency pursuant to section 24-33.5-121 (4), how
Page 22, Line 2much of that amount the law enforcement agency expended, and
Page 22, Line 3the purposes for which the law enforcement agency expended that amount.
Page 22, Line 4(b) A local government subject to an audit described in
Page 22, Line 5subsection (6)(a) of this section shall provide a copy of that
Page 22, Line 6audit to the department of public safety in a form and manner
Page 22, Line 7determined by the department of public safety. The department
Page 22, Line 8of public safety shall review a subset of the audits received
Page 22, Line 9pursuant to this subsection (6)(b) for compliance with the requirements of section 24-33.5-121 (3).
Page 22, Line 10(c) Any local government that receives funds from the
Page 22, Line 11peace officer training and support fund established in section
Page 22, Line 1224-33.5-121(2) for any budget year and that fails to complete an
Page 22, Line 13audit required by this section for that budget year or that fails
Page 22, Line 14to provide a copy of that audit to the department of public
Page 22, Line 15safety as required by this section for that budget year or that
Page 22, Line 16is exempt from performing an audit by section 29-1-604 for that
Page 22, Line 17budget year, shall, on or before December 31 of the year in
Page 22, Line 18which the audit is not completed, provided, or for which the
Page 22, Line 19local government is exempted from the audit, in a form and
Page 22, Line 20manner determined by the department, provide a report to the
Page 22, Line 21department that states the amount distributed by the
Page 22, Line 22department of public safety to the law enforcement agency
Page 22, Line 23pursuant to section 24-33.5-121(4), how much of that amount the
Page 22, Line 24law enforcement agency expended, and the purposes for which
Page 22, Line 25the law enforcement agency expended that amount.
Page 23, Line 1SECTION 9. In Colorado Revised Statutes, repeal as added by House Bill 25-1290 32-9-160 (3).
Page 23, Line 2SECTION 10. In Colorado Revised Statutes, 39-22-104, add (4)(dd) as follows:
Page 23, Line 339-22-104. Income tax imposed on individuals, estates, and
Page 23, Line 4trusts - single rate - report - tax preference performance statement
Page 23, Line 5- legislative declaration - definitions - repeal. (4) There shall be subtracted from federal taxable income:
Page 23, Line 6(dd) (I) For income tax years commencing on or after
Page 23, Line 7January 1, 2026, for a taxpayer who receives a payment pursuant
Page 23, Line 8to section 24-33.5-121 (4) as a result of the death of a peace
Page 23, Line 9officer that does not qualify for line-of-duty status under
Page 23, Line 10section 101 (h) of the federal "Internal Revenue Code of 1986",
Page 23, Line 11an amount equal to the amount received pursuant to section 24-33.5-121 (4); and
Page 23, Line 12(II) In accordance with section 39-21-304 (1), which
Page 23, Line 13requires each bill that creates a new tax expenditure to include
Page 23, Line 14a tax preference performance statement as part of a statutory
Page 23, Line 15legislative declaration, the general assembly finds and declares that:
Page 23, Line 16(A) The purpose of the income tax subtraction created in
Page 23, Line 17this subsection (4)(dd) is to provide tax relief for certain
Page 23, Line 18individuals, specifically taxpayers who have received a payment
Page 23, Line 19in connection with the death of a first responder pursuant to section 24-33.5-121 (4); and
Page 23, Line 20(B) The general assembly and the state auditor shall
Page 23, Line 21measure the effectiveness of the subtraction in achieving the
Page 24, Line 1purpose specified in subsection (4)(dd)(II)(A) of this section based on the number and aggregate amount of subtractions claimed;
Page 24, Line 2(III) The department of revenue shall maintain
Page 24, Line 3information about the number of taxpayers who claim the
Page 24, Line 4subtraction in a tax year and the aggregate amount of
Page 24, Line 5subtractions claimed in a tax year, in addition to any other
Page 24, Line 6information determined necessary by the department of
Page 24, Line 7revenue, to evaluate the effectiveness of the tax subtraction
Page 24, Line 8allowed in this subsection (4)(dd) in achieving the purpose
Page 24, Line 9specified in subsection (4)(dd)(II)(A) of this section, and shall
Page 24, Line 10provide this information upon request of the general assembly or the state auditor; and
Page 24, Line 11(IV) Notwithstanding section 39-21-304 (4), the tax
Page 24, Line 12subtraction allowed in this subsection (4)(dd) extends
Page 24, Line 13indefinitely until no less than five years after the executive
Page 24, Line 14director of the department of public safety disburses the last
Page 24, Line 15payment in connection with the death of a first responder pursuant to section 24-33.5-121 (4).
Page 24, Line 16SECTION 11. Appropriation. For the 2025-26 state fiscal year,
Page 24, Line 17$5,046,967 is appropriated to the department of public safety for use by
Page 24, Line 18the division of criminal justice. This appropriation is from the death
Page 24, Line 19benefit fund created in section 24-33.5-121 (4)(e)(I), C.R.S., and is based
Page 24, Line 20on an assumption that the division will require an additional 0.5 FTE. To
Page 24, Line 21implement this act, the division may use this appropriation for the death benefit program.
Page 24, Line 22SECTION 12. Safety clause. The general assembly finds,
Page 24, Line 23determines, and declares that this act is necessary for the immediate
Page 25, Line 1preservation of the public peace, health, or safety or for appropriations for
Page 25, Line 2the support and maintenance of the departments of the state and state institutions.