House Committee of Reference Report

Committee on Appropriations

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April 25, 2025

After consideration on the merits, the Committee recommends the following:

HB25-1078   be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation:

Page 1, Line 1Strike the Agriculture, Water, and Natural Resources Committee Report,

Page 1, Line 2dated February 10, 2025, and substitute:

Page 1, Line 3"Amend printed bill, strike everything below the enacting clause and

Page 1, Line 4substitute:

Page 1, Line 5"SECTION 1.  In Colorado Revised Statutes, 38-13-801, amend

Page 1, Line 6(1)(b); and add (2.6) and (2.7) as follows:

Page 1, Line 738-13-801.  Unclaimed property trust fund - creation -

Page 1, Line 8payments - interest - appropriations - records - rules. (1) (b)  Except

Page 1, Line 9as provided in subsections (2), (2.6), (2.7), (3), and (3.5) of this section,

Page 1, Line 10the principal of the trust fund shall not be expended except to pay claims

Page 1, Line 11made pursuant to this article 13. Money constituting the principal of the

Page 1, Line 12trust fund is not fiscal year spending of the state for purposes of section

Page 1, Line 1320 of article X of the state constitution and is not subject to appropriation

Page 1, Line 14by the general assembly.

Page 1, Line 15(2.6) (a) (I)  On July 1, 2025, the state treasurer shall make

Page 1, Line 16an interest-free loan in the amount of fifty million dollars from

Page 1, Line 17the unclaimed property trust fund to the department of local

Page 1, Line 18affairs created in section 24-1-125. The department may initially

Page 1, Line 19use up to two percent of the loan for administrative costs.

Page 1, Line 20(II)  A loan made from the unclaimed property trust fund

Page 1, Line 21to a separate fund within a state department is an interfund

Page 1, Line 22loan according to generally accepted accounting principles,

Page 1, Line 23meaning the loan is not classified as revenue and is booked as an

Page 1, Line 24interfund receivable or payable. Therefore, the loan does not

Page 1, Line 25create a multiple-fiscal-year debt or financial obligation.

Page 1, Line 26(b) (I)  The department of local affairs shall use the loan

Page 2, Line 1to create a new zero-interest revolving loan program to benefit

Page 2, Line 2fire departments, as defined in section 24-33.5-1202. Eligible uses

Page 2, Line 3of a zero-interest loan made to a fire department pursuant to

Page 2, Line 4this subsection (2.6) may include:

Page 2, Line 5(A)  The purchase of rolling stock, such as fire trucks,

Page 2, Line 6brush trucks, and fast attack vehicles, and associated

Page 2, Line 7apparatus for those vehicles, by a fire department with an

Page 2, Line 8approved fleet replacement plan or with documented evidence

Page 2, Line 9of firefighting apparatus shortages in past responses to calls

Page 2, Line 10for service or emergencies;

Page 2, Line 11(B)  To pay for capital improvements under an adopted

Page 2, Line 12capital facilities plan related to the renovation of existing

Page 2, Line 13facilities or the construction of new facilities;

Page 2, Line 14(C)  The purchase of other facilities, infrastructure, or

Page 2, Line 15equipment necessary to equip Colorado's firefighter workforce

Page 2, Line 16to effectively respond to emergencies and ensure public safety;

Page 2, Line 17or

Page 2, Line 18(D)  Temporary bridge loans to cover costs in excess of

Page 2, Line 19normal operating costs paid by a fire department due to its

Page 2, Line 20response to a local, state, or federal emergency.

Page 2, Line 21(II)  Within ninety days after the receipt of the loan by the

Page 2, Line 22department of local affairs and prior to the department making

Page 2, Line 23a loan under the loan program, the department shall consult

Page 2, Line 24with a statewide association representing Colorado fire chiefs,

Page 2, Line 25a statewide association representing professional firefighters,

Page 2, Line 26and the division of fire prevention and control in the

Page 2, Line 27department of public safety concerning the adoption of rules

Page 2, Line 28and the establishment of policies or procedures relating to the

Page 2, Line 29loan program.

Page 2, Line 30(III)  The department may charge an administrative fee of

Page 2, Line 31up to one-half of one percent on the principal amount of a loan

Page 2, Line 32made under the loan program.

Page 2, Line 33(IV)  The department may use earnings from the

Page 2, Line 34investment of the loan made to the department by the state

Page 2, Line 35treasurer pursuant to subsection (2.6)(a)(I) of this section for

Page 2, Line 36the department's reasonable expenses for administering the

Page 2, Line 37loan program.

Page 2, Line 38(V)  A loan made by the department pursuant to

Page 2, Line 39subsection (2.6)(b)(I) of this section to a district, as defined in

Page 2, Line 40section 20 (2)(b) of article X of the state constitution, must

Page 2, Line 41either be approved by the voters of the district in accordance

Page 2, Line 42with section 20 (4)(b) of article X of the state constitution or be

Page 2, Line 43structured so that it is not a multiple-fiscal-year direct or

Page 3, Line 1indirect district debt or other financial obligation whatsoever

Page 3, Line 2that requires voter approval under section 20 (4)(b) of article

Page 3, Line 3X of the state constitution.

Page 3, Line 4(c) (I)  The fire department revolving loan program fund,

Page 3, Line 5referred to in this subsection (2.6) as the "fund", is created in the

Page 3, Line 6state treasury.

Page 3, Line 7(II)  The fund consists of:

Page 3, Line 8(A)  Money loaned to the department of local affairs

Page 3, Line 9pursuant to subsection (2.6)(a)(I) of this section;

Page 3, Line 10(B)  Loan administration fees received by the department

Page 3, Line 11of local affairs pursuant to subsection (2.6)(b)(III) of this

Page 3, Line 12section; and

Page 3, Line 13(C)  Interest and income derived from the deposit and

Page 3, Line 14investment of money in the fund.

Page 3, Line 15(III)  The state treasurer shall credit all interest and

Page 3, Line 16income derived from the deposit and investment of money in the

Page 3, Line 17fund to the fund.

Page 3, Line 18(IV)  The money in the fund is continuously appropriated to

Page 3, Line 19the department for the purposes described in this subsection (2.6)

Page 3, Line 20and to pay reasonable expenses relating to the administration

Page 3, Line 21of the loan program.

Page 3, Line 22(d)  The department of local affairs shall pay the loan

Page 3, Line 23back to the unclaimed property trust fund not later than July

Page 3, Line 241, 2065. The loan repayment is subject to future appropriation by

Page 3, Line 25the general assembly and shall not be deemed or construed as

Page 3, Line 26creating an indebtedness of the state within the meaning of any

Page 3, Line 27provision of the state constitution or state law concerning or

Page 3, Line 28limiting the creation of indebtedness by the state.

Page 3, Line 29(2.7)  The state treasurer may invest money from the trust

Page 3, Line 30fund in the firefighter first homeownership program created in

Page 3, Line 31section 38-13-801.7.

Page 3, Line 32SECTION 2.  In Colorado Revised Statutes, 24-75-402, add

Page 3, Line 33(5)(lll) as follows:

Page 3, Line 3424-75-402.  Cash funds - limit on uncommitted reserves -

Page 3, Line 35reduction in the amount of fees - exclusions - definitions.

Page 3, Line 36(5)  Notwithstanding any provision of this section to the contrary, the

Page 3, Line 37following cash funds are excluded from the limitations specified in this

Page 3, Line 38section:

Page 3, Line 39(lll)  The fire department revolving loan program fund

Page 3, Line 40created in section 38-13-801 (2.6)(c).

Page 3, Line 41SECTION 3.  In Colorado Revised Statutes, add 38-13-801.7 as

Page 3, Line 42follows:

Page 3, Line 4338-13-801.7.  Firefighter first homeownership program -

Page 4, Line 1creation - report - legislative declaration - definitions. (1)  The

Page 4, Line 2general assembly finds and declares that housing developments

Page 4, Line 3that include preferences for firefighters in the state:

Page 4, Line 4(a)  Promote a substantial, legitimate, and

Page 4, Line 5nondiscriminatory state interest that cannot be served by

Page 4, Line 6another practice with a less discriminatory effect;

Page 4, Line 7(b)  Do not constitute a source of income discrimination

Page 4, Line 8under section 24-34-501 (4.5) or 24-34-502; and

Page 4, Line 9(c)  Comply with the federal "Fair Housing Act", 42 U.S.C.

Page 4, Line 10sec. 3601 et seq., part 5 of article 34 of title 24, and other state

Page 4, Line 11and local laws, ordinances, and resolutions.

Page 4, Line 12(2)  As used in this section, unless the context otherwise

Page 4, Line 13requires:

Page 4, Line 14(a)  "Fire department" has the meaning set forth in section

Page 4, Line 1524-33.5-1202.

Page 4, Line 16(b)  "Firefighter" means an officer or member of a fire

Page 4, Line 17department.

Page 4, Line 18(c)  "Program" means the firefighter first homeownership

Page 4, Line 19program created in this section.

Page 4, Line 20(d)  "Program manager" means the Colorado housing and

Page 4, Line 21finance authority created in section 29-4-704; except that, if the

Page 4, Line 22Colorado housing and finance authority elects at any time not

Page 4, Line 23to serve as program manager, the state treasurer shall select

Page 4, Line 24another program manager.

Page 4, Line 25(e)  "Trust fund" means the unclaimed property trust fund

Page 4, Line 26created in section 38-13-801 (1)(a).

Page 4, Line 27(3)   There is created the firefighter first homeownership

Page 4, Line 28program to support firefighter homeownership, address

Page 4, Line 29firefighter shortages, and support the retention of firefighters.

Page 4, Line 30(4) (a)  The state treasurer may invest money from the

Page 4, Line 31trust fund into the program; except that, if the state treasurer

Page 4, Line 32invests money into the program, the total investment amount

Page 4, Line 33shall not exceed the sum of the investments made in accordance

Page 4, Line 34with subsection (4)(b) of this section.

Page 4, Line 35(b)  If the program is implemented:

Page 4, Line 36(I)  The state treasurer shall purchase from the program

Page 4, Line 37manager the mortgage products created through the program

Page 4, Line 38in tranches of reasonable amounts that are mutually agreed

Page 4, Line 39upon by the state treasurer and the program manager; and

Page 4, Line 40(II)  The state treasurer may provide notice of any

Page 4, Line 41discontinuation in future investment the program manager has

Page 4, Line 42not already committed to the program, which notice must be

Page 4, Line 43provided at least six months prior to discontinuation.

Page 5, Line 1(c)  The program manager shall establish guidelines and

Page 5, Line 2underwriting criteria for the program that:

Page 5, Line 3(I)  Prioritize first-time homebuyers who use the home as a

Page 5, Line 4primary residence;

Page 5, Line 5(II)  Provide shared equity down payment assistance to

Page 5, Line 6firefighters and aim to help firefighters achieve, to the extent

Page 5, Line 7possible, affordable home ownership;

Page 5, Line 8(III)  Allow appreciation-sharing between the program and

Page 5, Line 9homeowner;

Page 5, Line 10(IV)  If the program manager is the Colorado housing and

Page 5, Line 11finance authority, pair a program borrower with a first

Page 5, Line 12mortgage loan provided through the program manager's

Page 5, Line 13participating lender network that bears an interest rate that

Page 5, Line 14is at or below the prevailing mortgage rates; and

Page 5, Line 15(V)  Serve home buyers across diverse geographic areas

Page 5, Line 16and housing markets.

Page 5, Line 17(d)  The program manager is entitled to normal and

Page 5, Line 18customary fees for managing the program, including any

Page 5, Line 19carrying costs required to accommodate tranche payments, paid

Page 5, Line 20by the program or the program manager's products and services

Page 5, Line 21paired with the program.

Page 5, Line 22(5)  The program manager shall annually publish and

Page 5, Line 23present to the state treasurer a report on program outcomes,

Page 5, Line 24including:

Page 5, Line 25(a)  The number of program borrowers;

Page 5, Line 26(b)  The geographic distribution of program borrowers;

Page 5, Line 27(c)  The area median income of program borrowers; and

Page 5, Line 28(d)  The median purchase price, median loan amount, and

Page 5, Line 29average interest rate on first mortgages for program

Page 5, Line 30borrowers who benefit from the program.

Page 5, Line 31(6)  Nothing in this section prevents leveraging other

Page 5, Line 32sources of state or local money for the program.

Page 5, Line 33SECTION 4.  Safety clause. The general assembly finds,

Page 5, Line 34determines, and declares that this act is necessary for the immediate

Page 5, Line 35preservation of the public peace, health, or safety or for appropriations for

Page 5, Line 36the support and maintenance of the departments of the state and state

Page 5, Line 37institutions.".

Page 5, Line 38Page 1, line 101, strike "resources," and substitute "resources.".

Page 5, Line 39Page 1, strike lines 102 through 112.".".