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.
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 hiring of additional peace officers to address
Page 5, Line 4specific geographic areas or specific types of criminal activity,
Page 5, Line 5the initial and continuing education and training for peace officers, and the compensation of peace officers.
Page 5, Line 6(II) As used in this subsection (1)(j):
Page 5, Line 7(A) "Compensation" includes peace officer pay,
Page 5, Line 8reimbursement to a peace officer for tuition paid to attend a
Page 5, Line 9training academy, and bonuses for peace officer hiring, rehiring, merit, or retention; and
Page 5, Line 10(B) "Recruitment" includes the direct and indirect costs
Page 5, Line 11associated with the process of seeking out and attracting peace officers.
Page 5, Line 12(k) "Spouse" means an individual to whom an eligible first
Page 5, Line 13responder is married or with whom an eligible first responder has established a civil union.
Page 5, Line 14(l) "Training academy" has the same meaning as set forth in section 24-31-304 (1).
Page 5, Line 15(2) Peace officer training and support fund. (a) The peace
Page 5, Line 16officer training and support fund is created in the state
Page 5, Line 17treasury. The fund consists of gifts, grants, donations, money
Page 5, Line 18credited to the fund pursuant to this section, and any other
Page 5, Line 19money that the general assembly may appropriate or transfer to the fund.
Page 5, Line 20(b) (I) (A) On July 1, 2026, the state treasurer shall
Page 6, Line 1transfer fifteen million dollars from the general fund to the fund.
Page 6, Line 2(B) In state fiscal year 2026-27, the general assembly may
Page 6, Line 3appropriate twenty million dollars from the general fund to the fund.
Page 6, Line 4(II) On July 1, 2027, and each July 1 thereafter through
Page 6, Line 5July 1 of the fulfillment year, the state treasurer shall
Page 6, Line 6transfer an amount equal to the greater of fifteen million
Page 6, Line 7dollars or the adjusted investment amount from the general fund to the fund.
Page 6, Line 8(III) As used in this subsection (2)(b), unless the context otherwise requires:
Page 6, Line 9(A) "Adjusted investment amount" means, for any year,
Page 6, Line 10the reported reduction in that year minus the backfill amount and plus the payback amount.
Page 6, Line 11(B) "Backfill amount" means the cumulative difference
Page 6, Line 12between the reported reduction and fifteen million dollars in
Page 6, Line 13every previous year in which the reported reduction was less than fifteen million dollars.
Page 6, Line 14(C) "Reported reduction" means, for any year, the amount
Page 6, Line 15of the reduction in the warrant issued pursuant to section
Page 6, Line 1624-51-414 (1) reported to the state treasurer by the office of
Page 6, Line 17state planning and budgeting pursuant to section 24-51-414 (8.5)(a)(II).
Page 6, Line 18(D) "Payback amount" means the cumulative difference
Page 6, Line 19between the reported reduction and the amount that the state
Page 6, Line 20treasurer transferred from the general fund to the fund in
Page 7, Line 1every previous year in which the reported reduction was greater than fifteen million dollars.
Page 7, Line 2(c) The state treasurer shall credit all interest and
Page 7, Line 3income derived from the deposit and investment of money in the fund to the general fund.
Page 7, Line 4(d) Money in the fund is continuously appropriated to the
Page 7, Line 5department for the department to distribute in accordance with subsection (3)(b) of this section.
Page 7, Line 6(3) Peace officer training and support distribution. (a) Law
Page 7, Line 7enforcement agency certification.On or before December 15, 2026,
Page 7, Line 8and each December 15 thereafter through the fulfillment year,
Page 7, Line 9a law enforcement agency may submit a certification to the
Page 7, Line 10department in a form and manner determined by the department. The certification shall include:
Page 7, Line 11(I) The number of peace officers that the relevant local
Page 7, Line 12government has budgeted for the law enforcement agency in the upcoming year;
Page 7, Line 13(II) The total dollar amount that the relevant local
Page 7, Line 14government budgeted for the law enforcement agency to expend for a permissible purpose;
Page 7, Line 15(III) A resolution or ordinance adopted by the relevant
Page 7, Line 16local government that the local government will only expend
Page 7, Line 17money awarded by the department from the fund in accordance with the requirements of subsection (3)(c) of this section; and
Page 7, Line 18(IV) If the law enforcement agency is a sheriff's office, a
Page 7, Line 19certification by the law enforcement agency that it will only
Page 7, Line 20expend money awarded by the department from the fund in
Page 8, Line 1accordance with the requirements of subsection (3)(c) of this section.
Page 8, Line 2(b) Distribution formula. (I) No later than December 31,
Page 8, Line 32026, and each December 31 thereafter through the fulfillment
Page 8, Line 4year, the department shall annually disburse from the fund to
Page 8, Line 5each eligible law enforcement agency an amount equal to the
Page 8, Line 6base amount plus the total of the number of peace officers that
Page 8, Line 7the law enforcement agency identified for that year pursuant
Page 8, Line 8to subsection (3)(a)(I) of this section multiplied by the peace officer adjustment.
Page 8, Line 9(II) As used in this subsection (3)(b), unless the context otherwise requires:
Page 8, Line 10(A) "Base amount" means fifteen thousand dollars.
Page 8, Line 11(B) "Eligible law enforcement agency" means, for any
Page 8, Line 12year, a law enforcement agency that submits a certification to
Page 8, Line 13the department in that year pursuant to subsection (3)(a) of this section.
Page 8, Line 14(C) "Peace officer adjustment" means, for any year, an
Page 8, Line 15amount equal to the amount that the state treasurer
Page 8, Line 16transferred to the fund in that year pursuant to subsection
Page 8, Line 17(2)(b) of this section, minus the amount appropriated by the
Page 8, Line 18general assembly pursuant to subsection (2)(d) of this section
Page 8, Line 19for the fiscal year that commences in that year, minus the base
Page 8, Line 20amount multiplied by the number of eligible law enforcement
Page 8, Line 21agencies that year, divided by the total number of peace officers
Page 8, Line 22that eligible law enforcement agencies identified pursuant to
Page 8, Line 23subsection (3)(a) of this section that year.
Page 9, Line 1(c) Supplanting and supplementing. (I) (A) A law
Page 9, Line 2enforcement agency shall only spend, and a local government
Page 9, Line 3shall only budget for a law enforcement agency to spend, any
Page 9, Line 4money received pursuant to this subsection (3) for a permissible purpose; and
Page 9, Line 5(B) A law enforcement agency shall spend, and a local
Page 9, Line 6government shall budget for a law enforcement agency to
Page 9, Line 7spend, the money that the law enforcement agency receives
Page 9, Line 8pursuant to this subsection (3) to increase funding that would,
Page 9, Line 9in the absence of money from the fund, be made available from
Page 9, Line 10other state or local sources. A law enforcement agency shall
Page 9, Line 11not spend, and a local government shall not budget for a law
Page 9, Line 12enforcement agency to spend, money that the law enforcement
Page 9, Line 13agency receives pursuant to this subsection (3) to supplant
Page 9, Line 14other money that would, in the absence of the money received
Page 9, Line 15pursuant to this subsection (3), be made available from other state and local sources for a permissible purpose.
Page 9, Line 16(II) A law enforcement agency or a local government is
Page 9, Line 17presumed to have violated subsection (3)(c)(I)(B) of this section
Page 9, Line 18if the law enforcement agency or local government reduces or
Page 9, Line 19replaces the budgeting with or expenditure of, local, or state
Page 9, Line 20money in the immediately preceding year used for a permissible
Page 9, Line 21purpose with money received pursuant to this subsection (3)
Page 9, Line 22because the local government already budgeted for or the law
Page 9, Line 23enforcement agency already expected or received money pursuant to this subsection (3); and
Page 9, Line 24(III) A law enforcement agency or local government
Page 10, Line 1rebuts a presumption established pursuant to subsection (3)(c)(II)
Page 10, Line 2of this section if the law enforcement agency or local government establishes by contemporaneous records that:
Page 10, Line 3(A) The law enforcement agency or local government
Page 10, Line 4reduced or eliminated expenditures for multiple purposes other than for a permissible purpose;
Page 10, Line 5(B) There was a reduction in, local, or state money paid to
Page 10, Line 6the law enforcement agency or local government for a permissible purpose; and
Page 10, Line 7(C) The law enforcement agency or local government
Page 10, Line 8reduced or eliminated permissible purpose expenditures without
Page 10, Line 9taking into consideration the receipt or expected receipt of money pursuant to this subsection (3).
Page 10, Line 10(IV) No state agency has a duty to enforce the
Page 10, Line 11requirements of this subsection (3)(c) and no state agency is
Page 10, Line 12liable for a violation of the requirements of this subsection(3)(c).
Page 10, Line 13(V) No later than January 15, 2026, the department shall
Page 10, Line 14adopt policies and procedures to assist in the determination of
Page 10, Line 15whether the expenditure of money received pursuant to this subsection (3) is for a permissible purpose.
Page 10, Line 16(4) First responder death benefit administration. (a) (I) If the
Page 10, Line 17executive director determines that a first responder has died on
Page 10, Line 18or after November 5, 2024, as the direct and proximate result of
Page 10, Line 19a personal injury sustained while performing their official
Page 10, Line 20duties or because of an occupational disease arising out of and
Page 10, Line 21in the course of their employment or service as a first responder,
Page 11, Line 1the department shall pay a benefit of one million dollars from
Page 11, Line 2the death benefit fund created in subsection (4)(e)(I) of this
Page 11, Line 3section as follows, if the indicated payee is living on the date on
Page 11, Line 4which the executive director makes the determination described in this subsection (4)(a)(I):
Page 11, Line 5(A) If there is no child who survived the first responder, to the surviving spouse of the first responder;
Page 11, Line 6(B) If there is at least one child who survived the first
Page 11, Line 7responder and a surviving spouse of the first responder, fifty
Page 11, Line 8percent to the surviving child or children, in equal shares, and fifty percent to the surviving spouse;
Page 11, Line 9(C) If there is no surviving spouse of the first responder, to the surviving child or children, in equal shares;
Page 11, Line 10(D) If there is no surviving spouse of the first responder
Page 11, Line 11and no surviving child, to the surviving individual or individuals
Page 11, Line 12designated by the first responder in the most recently executed
Page 11, Line 13designation of beneficiary on file at the time of death with the
Page 11, Line 14governing body or state agency, apportioned in accordance with
Page 11, Line 15the designation of beneficiary or, if apportionment is not indicated, in equal shares;
Page 11, Line 16(E) If there is no surviving spouse of the first responder,
Page 11, Line 17no surviving child of the eligible first responder, and no
Page 11, Line 18individual qualifying under subsection (4)(a)(I)(D) of this
Page 11, Line 19section, to the surviving beneficiaries under the most recently
Page 11, Line 20executed life insurance policy of the first responder on file at
Page 11, Line 21the time of death with the governing body or state agency,
Page 11, Line 22apportioned in accordance with the insurance policy or, if apportionment is not indicated, in equal shares; or
Page 12, Line 1(F) If there is no individual qualifying under subsections
Page 12, Line 2(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 3(II) If the executive director is unable to identify an
Page 12, Line 4individual described by subsections (4)(a)(I)(A) to (4)(a)(I)(F) of
Page 12, Line 5this section for a first responder, then no payment is made pursuant to this section for that first responder.
Page 12, Line 6(b) If the executive director determines that a first
Page 12, Line 7responder has died on or after November 5, 2024, as the direct
Page 12, Line 8and proximate result of a personal injury sustained while
Page 12, Line 9performing their official duties or because of an occupational
Page 12, Line 10disease arising out of and in the course of their employment or
Page 12, Line 11service as a first responder, if that first responder has died
Page 12, Line 12after separation from service as a first responder, while on an
Page 12, Line 13authorized leave of absence as a first responder, or while
Page 12, Line 14performing qualified military service, as defined in 26 U.S.C. sec.
Page 12, Line 15414 (u)(5), the department shall pay a benefit to a payee in
Page 12, Line 16connection with that first responder in accordance with subsection (4)(a) of this section.
Page 12, Line 17(c) A payment under this section shall not be used to
Page 12, Line 18offset or reduce payments available from any other source,
Page 12, Line 19including a public disability plan or insurance plan, private
Page 12, Line 20disability plan or insurance plan, or benefits provided under Colorado's workers' compensation law.
Page 12, Line 21(d) (I) The executive director shall determine whether a
Page 12, Line 22first responder whose death results in a payment pursuant to
Page 13, Line 1this subsection (4) qualifies for line-of-duty status under
Page 13, Line 2section 101 (h) of the federal "Internal Revenue Code of 1986"
Page 13, Line 3and whether any of the exceptions specified in section 101 (h)(2)
Page 13, Line 4of the federal "Internal Revenue Code of 1986" are applicable
Page 13, Line 5and shall inform the taxpayer who receives the payment and the department of revenue of the executive director's decision.
Page 13, Line 6(II) A taxpayer who receives a payment pursuant to this
Page 13, Line 7subsection (4), and does not qualify for line-of-duty status
Page 13, Line 8under section 101 (h) of the federal "Internal Revenue Code of
Page 13, Line 91986", shall, pursuant to section 39-22-104 (4)(dd), subtract the
Page 13, Line 10amount of the payment from the taxpayer's federal taxable
Page 13, Line 11income, and the executive director shall provide the taxpayer
Page 13, Line 12and the department of revenue any information deemed
Page 13, Line 13necessary by the department of revenue for this tax subtraction.
Page 13, Line 14(e) (I) The death benefit fund is created in the state
Page 13, Line 15treasury. The fund consists of gifts, grants, and donations
Page 13, Line 16credited to the fund and any other money that the general assembly may appropriate or transfer to the fund.
Page 13, Line 17(II) In accordance with section 24-36-114 (1), the state
Page 13, Line 18treasurer shall credit all interest and income derived from the
Page 13, Line 19deposit and investment of money in the death benefit fund to the general fund.
Page 13, Line 20(III) (A) Money in the fund is annually appropriated to the
Page 13, Line 21department for paying benefits pursuant to this subsection (4)
Page 13, Line 22and for the direct and indirect costs of administering this
Page 13, Line 23subsection (4).
Page 14, Line 1(B) The department may expend no more than two percent
Page 14, Line 2of the money that the general assembly annually appropriates
Page 14, Line 3to the death benefit fund for the direct and indirect costs of administering this subsection (4).
Page 14, Line 4(IV) (A) On July 1, 2025, and July 1, 2026, the state
Page 14, Line 5treasurer shall transfer five million dollars from the general fund to the death benefit fund.
Page 14, Line 6(B) On July 1, 2027, and each July 1 thereafter, if the
Page 14, Line 7balance of the death benefit fund is less than ten million
Page 14, Line 8dollars, on July 2 of that year, the state treasurer shall
Page 14, Line 9transfer an amount from the general fund to the death benefit
Page 14, Line 10fund equal to the difference between ten million dollars and the balance of the death benefit fund.
Page 14, Line 11(5) Technical assistance.The department shall, subject to
Page 14, Line 12available appropriations, provide technical assistance to law
Page 14, Line 13enforcement agencies and local governments in complying with the requirements of this section and section 29-1-603.
Page 14, Line 14(6) Rules.The executive director shall adopt rules that
Page 14, Line 15specify standards and establish procedures as necessary to
Page 14, Line 16determine whether section 101 (h) of the federal "Internal
Page 14, Line 17Revenue Code of 1986", as amended, applies to a payment
Page 14, Line 18awarded pursuant to subsection (4) of this section and may adopt additional rules as necessary to implement this section.
Page 14, Line 19SECTION 5. In Colorado Revised Statutes, 24-51-414, amend (1)(a) and (4); and add (8.5) as follows:
Page 14, Line 2024-51-414. Direct distribution - definitions. (1) (a) Except as
Page 14, Line 21otherwise provided in
subsections (6), (7), and (8)Page 15, Line 1(8), and (8.5) of this section, on July 1, 2018, on July 1, 2019, on July 1,
Page 15, Line 22021, and on July 1 each year thereafter until there are no unfunded
Page 15, Line 3actuarial accrued liabilities of any division of the association that receives
Page 15, Line 4the distribution pursuant to this section, the state treasurer shall issue a
Page 15, Line 5warrant to the association in an amount equal to two hundred twenty-five
Page 15, Line 6million 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 7(4) (a) The association shall allocate the direct distribution to the
Page 15, Line 8trust funds of each division of the association as it would an employer
Page 15, Line 9contribution, in a manner that is proportionate to the annual payroll of
Page 15, Line 10each division as reported to the association; except that the association
Page 15, Line 11shall not allocate any portion of the direct distribution amount to the local government division of the association.
Page 15, Line 12(b) (I) Notwithstanding any provision of this subsection (4)
Page 15, Line 13to the contrary, on or after July 1, 2025, if the allocation
Page 15, Line 14methodology described in this subsection (4) would result in the
Page 15, Line 15blended total contribution amount equaling less than
Page 15, Line 16ninety-eight percent of the blended total required contribution
Page 15, Line 17the association may instead allocate the direct distribution to
Page 15, Line 18the trust funds of each division of the association in an
Page 15, Line 19actuarial manner as necessary to achieve at least ninety-eight
Page 15, Line 20percent of the blended total required contribution; except that
Page 15, Line 21the association shall not allocate any portion of the direct
Page 15, Line 22distribution amount to the local government division of the association.
Page 15, Line 23(II) As used in this subsection (4)(b), unless the context
Page 15, Line 24otherwise requires:
Page 16, Line 1(A) "Blended total contribution amount" has the same meaning as in section 24-51-413 (1)(a).
Page 16, Line 2(B) "Blended total required contribution" has the same meaning as in section 24-51-413 (1)(b).
Page 16, Line 3(C) "Fulfillment year" has the same meaning as set forth in subsection (8.5)(d)(III) of this section.
Page 16, Line 4(8.5) (a) (I) The amount of a warrant to be issued on July
Page 16, Line 51, 2027, and each July 1 thereafter through the fulfillment
Page 16, Line 6year, to the association pursuant to subsection (1) of this
Page 16, Line 7section is reduced by the least of thirty-five million dollars,
Page 16, Line 8the deferred inflow of resources amount, the deferred inflow
Page 16, Line 9of resources amount multiplied by the annual rate of return on
Page 16, Line 10investments for the association in the immediately preceding
Page 16, Line 11association fiscal year as published in the relevant annual
Page 16, Line 12actuarial valuation report pursuant to section 25-41-204 (7), or
Page 16, Line 13the amount necessary for the total amount transferred by the
Page 16, Line 14state treasurer to the peace officer training and support fund
Page 16, Line 15pursuant to section 24-33.5-121 (2)(b) to equal three hundred
Page 16, Line 16fifty million dollars; except that, if the amount of the warrant
Page 16, Line 17is reduced pursuant to section 24-75-201.1 (5)(b)(II), the amount
Page 16, Line 18of the warrant is not also reduced pursuant to this subsection (8.5)(a)(I).
Page 16, Line 19(II) On or before June 30, 2027, and each June 30 thereafter
Page 16, Line 20through the fulfillment year, the office of state planning and
Page 16, Line 21budgeting shall report to the state treasurer the amount by
Page 16, Line 22which the warrant issued to the association pursuant to
Page 16, Line 23subsection (1) of this section is reduced pursuant to subsection(8.5)(a)(I) of this section.
Page 17, Line 1(b) (I) On or before June 30, 2034, and each June 30
Page 17, Line 2thereafter through the fulfillment year, the office of state
Page 17, Line 3planning and budgeting shall calculate, for the purposes of
Page 17, Line 4determining the adjusted warrant reduction amount and the fulfillment year:
Page 17, Line 5(A) The total of the amount that the state treasurer has
Page 17, Line 6previously transferred to the peace officer training and support
Page 17, Line 7fund pursuant to section 24-33.5-121 (2)(b) and the amount that
Page 17, Line 8the state treasurer is projected to transfer to the peace officer
Page 17, Line 9training 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 10(B) The total of the amount described in subsection
Page 17, Line 11(8.5)(b)(I)(A) of this section and the amount that the state
Page 17, Line 12treasurer is projected to transfer to the peace officer training
Page 17, Line 13and support fund pursuant to section 24-33.5-121 (2)(b) on July 1
Page 17, Line 14of the next state fiscal year immediately succeeding the next state fiscal year.
Page 17, Line 15(II) If the total amount calculated by the office of state
Page 17, Line 16planning and budgeting pursuant to subsection (8.5)(b)(I)(A) of
Page 17, Line 17this section exceeds three hundred fifty million dollars, the
Page 17, Line 18office of state planning and budgeting shall report to the state
Page 17, Line 19treasurer, the association, the department of public safety, and
Page 17, Line 20the joint budget committee that the next state fiscal year is projected to be the fulfillment year.
Page 17, Line 21(III) If the total amount calculated by the office of state
Page 17, Line 22planning and budgeting pursuant to subsection (8.5)(b)(I)(B) of
Page 18, Line 1this section exceeds three hundred fifty million dollars, the
Page 18, Line 2office of state planning and budgeting shall report to the joint
Page 18, Line 3budget committee of the general assembly that the office of
Page 18, Line 4state planning and budgeting projects that the state fiscal year
Page 18, Line 5immediately succeeding the next state fiscal year is projected to be the fulfillment year.
Page 18, Line 6(c) (I) The association shall deem the amount of the
Page 18, Line 7warrant issued by the state treasurer pursuant to section
Page 18, Line 824-75-201.1 (5)(a)(I), any earnings on that amount, and any
Page 18, Line 9adjustments made pursuant to subsection (8.5)(c)(II) of this section as a deferred inflow of resources.
Page 18, Line 10(II) For 2027, and each year thereafter through the
Page 18, Line 11fulfillment year, if, pursuant to subsection (8.5)(a)(I) of this
Page 18, Line 12section or section 24-75-201.1 (5)(b)(II), there is a reduction in the
Page 18, Line 13amount of the warrant to be issued to the association pursuant
Page 18, Line 14to subsection (1) of this section, the association shall recognize
Page 18, Line 15a portion of the deferred inflow of resources amount equal to
Page 18, Line 16the amount of that reduction as a direct distribution subject to allocation pursuant to subsection (4) of this section.
Page 18, Line 17(III) After the fulfillment year, the association may
Page 18, Line 18recognize any amount of deferred inflow of resources as a
Page 18, Line 19direct distribution for purposes of section 24-51-413 (1), as necessary pursuant to subsection (4)(b) of this section.
Page 18, Line 20(d) As used in this subsection (8.5), unless the context otherwise requires:
Page 18, Line 21(I) "Adjusted warrant reduction amount" means the
Page 18, Line 22amount necessary to ensure that the state treasurer transfers
Page 19, Line 1a total amount equal to three hundred fifty million dollars to
Page 19, Line 2the peace officer training and support fund pursuant to section24-33.5-121 (2)(b).
Page 19, Line 3(II) "Deferred inflow of resources amount" means the
Page 19, Line 4amount designated as a deferred inflow of resources by the association pursuant to subsection (8.5)(c)(I) of this section.
Page 19, Line 5(III) "Fulfillment year" means the first state fiscal year
Page 19, Line 6during which the total amount transferred by the state
Page 19, Line 7treasurer to the peace officer training and support fund
Page 19, Line 8pursuant to section 24-33.5-121 (2)(b) equals or exceeds three hundred fifty million dollars.
Page 19, Line 9SECTION 6. In Colorado Revised Statutes, 24-75-201.1, amend (5) as follows:
Page 19, Line 1024-75-201.1. Restriction on state appropriations - legislative
Page 19, Line 11declaration - definitions - repeal. (5) (a) (I) On July 1, 2025, the
Page 19, Line 12state treasurer shall issue a warrant to the public employees'
Page 19, Line 13retirement association in the amount of five hundred million dollars from the general fund; and
Page 19, Line 14(II) For the purpose of determining the unrestricted
Page 19, Line 15general fund year-end balances pursuant to this section, the
Page 19, Line 16five hundred million dollars in the warrant issued by the state
Page 19, Line 17treasurer pursuant to subsection (5)(a)(I) of this section is included in those balances.
Page 19, Line 18(b) (I) Until the state fiscal year after the fulfillment
Page 19, Line 19year, the general assembly shall not reduce the fiscal year
Page 19, Line 20unrestricted general fund year-end balances that must be
Page 19, Line 21retained as a reserve to an amount less than one billion dollars
Page 20, Line 1without also reducing the amount of the warrant described in section 24-51-414;
Page 20, Line 2(II) If, during a state fiscal year before the year after the
Page 20, Line 3fulfillment year, the general assembly reduces the fiscal year
Page 20, Line 4unrestricted general fund year-end balances that must be
Page 20, Line 5retained as a reserve to an amount less than one billion
Page 20, Line 6dollars, notwithstanding any law to the contrary, the general
Page 20, Line 7assembly shall reduce the total amount of the warrant
Page 20, Line 8described in section 24-51-414 for one or more fiscal years by a
Page 20, Line 9total amount equal to the difference, not to exceed the
Page 20, Line 10remaining deferred inflow of resources amount, between the
Page 20, Line 11fiscal year unrestricted general fund year-end balances that must be retained as a reserve and one billion dollars; and
Page 20, Line 12(III) As used in subsection (1)(d) of this section and in this subsection (5)(b), unless the context otherwise requires:
Page 20, Line 13(A) "Deferred inflow of resources amount" has the same meaning as in section 24-51-414 (8.5)(e)(II).
Page 20, Line 14(B) "Fulfillment year" means the first state fiscal year
Page 20, Line 15during which the state treasurer has transferred a total of three hundred fifty million dollars to the fund.
Page 20, Line 16SECTION 7. In Colorado Revised Statutes, 24-75-201.5, add (1)(h) as follows:
Page 20, Line 1724-75-201.5. Revenue shortfalls - required actions by the
Page 20, Line 18governor with respect to the reserve. (1) (h) Whenever the revenue
Page 20, Line 19estimate for the current fiscal year, prepared in accordance
Page 20, Line 20with section 24-75-201.3 (2), indicates that general fund
Page 20, Line 21expenditures for that fiscal year based on appropriations then
Page 21, Line 1in effect will result in the use of an amount of the reserve
Page 21, Line 2required by section 24-75-201.1 (1)(d) that would result in that
Page 21, Line 3reserve equaling less than one billion dollars, the governor
Page 21, Line 4shall formulate a plan for reducing such general fund
Page 21, Line 5expenditures so that said reserve, as of the close of the fiscal
Page 21, Line 6year, will be at least one billion dollars. The governor shall
Page 21, Line 7promptly notify the general assembly of the plan and promptly
Page 21, Line 8implement the plan in accordance with section 24-2-102 (4) or 24-50-109.5 or any other lawful means.
Page 21, Line 9SECTION 8. In Colorado Revised Statutes, 29-1-603, add (6) as follows:
Page 21, Line 1029-1-603. Audits required. (6) (a) For the audit of a local
Page 21, Line 11government for any budget year in which a law enforcement
Page 21, Line 12agency that the local government establishes a budget for
Page 21, Line 13receives funds from the peace officer training and support fund
Page 21, Line 14established in section 24-33.5-121 (2), the audit report for that
Page 21, Line 15local government shall include evidence that the local
Page 21, Line 16government complied with the requirements of section
Page 21, Line 1724-33.5-121 (3). The evidence in the audit report shall include the
Page 21, Line 18amount distributed by the department of public safety to the
Page 21, Line 19law enforcement agency pursuant to section 24-33.5-121 (4), how
Page 21, Line 20much of that amount the law enforcement agency expended, and
Page 21, Line 21the purposes for which the law enforcement agency expended that amount.
Page 21, Line 22(b) A local government subject to an audit described in
Page 21, Line 23subsection (6)(a) of this section shall provide a copy of that
Page 21, Line 24audit to the department of public safety in a form and manner
Page 22, Line 1determined by the department of public safety. The department
Page 22, Line 2of public safety shall review an audit received pursuant to this
Page 22, Line 3subsection (6)(b) for compliance with the requirements of section 24-33.5-121 (3).
Page 22, Line 4SECTION 9. In Colorado Revised Statutes, 39-22-104, add (4)(dd) as follows:
Page 22, Line 539-22-104. Income tax imposed on individuals, estates, and
Page 22, Line 6trusts - single rate - report - tax preference performance statement
Page 22, Line 7- legislative declaration - definitions - repeal. (4) There shall be subtracted from federal taxable income:
Page 22, Line 8(dd) (I) For income tax years commencing on or after
Page 22, Line 9January 1, 2026, for a taxpayer who receives a payment pursuant
Page 22, Line 10to section 24-33.5-121 (4) as a result of the death of a peace
Page 22, Line 11officer that does not qualify for line-of-duty status under
Page 22, Line 12section 101 (h) of the federal "Internal Revenue Code of 1986",
Page 22, Line 13an amount equal to the amount received pursuant to section 24-33.5-121 (4); and
Page 22, Line 14(II) In accordance with section 39-21-304 (1), which
Page 22, Line 15requires each bill that creates a new tax expenditure to include
Page 22, Line 16a tax preference performance statement as part of a statutory
Page 22, Line 17legislative declaration, the general assembly finds and declares that:
Page 22, Line 18(A) The purpose of the income tax subtraction created in
Page 22, Line 19this subsection (4)(dd) is to provide tax relief for certain
Page 22, Line 20individuals, specifically taxpayers who have received a payment
Page 22, Line 21in connection with the death of a first responder pursuant to
Page 22, Line 22section 24-33.5-121 (4); and
Page 23, Line 1(B) The general assembly and the state auditor shall
Page 23, Line 2measure the effectiveness of the subtraction in achieving the
Page 23, Line 3purpose specified in subsection (4)(dd)(II)(A) of this section based on the number and aggregate amount of subtractions claimed;
Page 23, Line 4(III) The department of revenue shall maintain
Page 23, Line 5information about the number of taxpayers who claim the
Page 23, Line 6subtraction in a tax year and the aggregate amount of
Page 23, Line 7subtractions claimed in a tax year, in addition to any other
Page 23, Line 8information determined necessary by the department of
Page 23, Line 9revenue, to evaluate the effectiveness of the tax subtraction
Page 23, Line 10allowed in this subsection (4)(dd) in achieving the purpose
Page 23, Line 11specified in subsection (4)(dd)(II)(A) of this section, and shall
Page 23, Line 12provide this information upon request of the general assembly or the state auditor; and
Page 23, Line 13(IV) Notwithstanding section 39-21-304 (4), the tax
Page 23, Line 14subtraction allowed in this subsection (4)(dd) extends
Page 23, Line 15indefinitely until no less than five years after the executive
Page 23, Line 16director of the department of public safety disburses the last
Page 23, Line 17payment in connection with the death of a first responder pursuant to section 24-33.5-121 (4).
Page 23, Line 18SECTION 10. Appropriation. For the 2025-26 state fiscal year,
Page 23, Line 19$5,046,967 is appropriated to the department of public safety for use by
Page 23, Line 20the division of criminal justice. This appropriation is from the death
Page 23, Line 21benefit fund created in section 24-33.5-121 (4)(e)(I), C.R.S., and is based
Page 23, Line 22on an assumption that the division will require an additional 0.5 FTE. To
Page 23, Line 23implement this act, the division may use this appropriation for the death
Page 23, Line 24benefit program.
Page 24, Line 1SECTION 11. Safety clause. The general assembly finds,
Page 24, Line 2determines, and declares that this act is necessary for the immediate
Page 24, Line 3preservation of the public peace, health, or safety or for appropriations for
Page 24, Line 4the support and maintenance of the departments of the state and state institutions.