House Bill 26-1065 Introduced

A Bill for an Act

• Page 1, Line 101Concerning transit and housing investment zones.

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.)

Section 2 of the bill creates the "Transit Investment Area Act" and:

• Creates a mechanism for a local government and transit agency, subject to state approval, to undertake a transit investment project (project), to designate a transit investment area (area) in which the project will be built, and to create a transit investment authority (authority) or to designate other financing entities with the power to receive and use the increment of revenue derived from the state sales tax collected in the area that is equal to the amount of state sales tax revenue collected in an area above a designated base amount plus 20% of that same revenue (state sales tax increment revenue) to be used to finance eligible improvements related to the project;
• Allows a local government to apply to the office of economic development and the Colorado economic development commission (commission) to undertake a project, and, in connection with the project, to form an authority or to designate a county revitalization authority, metropolitan district, or urban renewal authority as the approved financing entity;
• Specifies the information that a local government is required to include in the application for a project and the criteria that the project is required to satisfy to be approved;
• Requires the director of the office of economic development (director) to review each application for a project and to make an initial determination regarding whether the application meets the specified criteria;
• Requires the director to forward each application to the commission with a recommendation regarding whether the project should be approved;
• Directs the commission to review each application and to approve or reject the project and, as part of the approval of a project, allows the commission to authorize the collection and use of the state sales tax increment revenue for a designated number of years not to exceed 30 years;
• Allows the commission to approve no more than 3 transit investment projects in any calendar year and no more than 6 in total;
• Allows the commission to dedicate no more than $75 million in a fiscal year to the transit investment projects it approves;
• If requested by the local government, allows the commission to authorize the creation of an authority to receive and spend state sales tax increment revenue;
• Specifies that an authority is governed by a board consisting of a certain number of members appointed by the commission and a certain number of members appointed by the local government;
• Specifies the powers of the authority and the manner in which the state sales tax increment revenue is divided and used;
• Requires the financing entity for a project to submit a report containing specified information to the commission; and
• Authorizes a county revitalization authority, an urban renewal authority, or a metropolitan district to receive and disburse the state sales tax increment revenue generated within an area and to act as the financing entity for the area.

Section 9 creates the Colorado affordable housing in transit investment zones tax credit (tax credit). The tax credit is administered in the same manner as the Colorado affordable housing in transit-oriented communities tax credit; except that the tax credit is awarded in connection with qualified low- and middle-income housing projects in transit and housing zones. The bill allows $50 million of credits to be awarded each calendar year beginning in the 2027 calendar year through the 2033 calendar year.

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  Legislative declaration.

• Page 3, Line 3(1)  The general assembly finds and declares that:

• Page 3, Line 4(a)  Colorado has invested significantly in public transit systems

• Page 3, Line 5in the last several decades, funding over six billion dollars across

• Page 3, Line 6eighty-five miles of new rail lines along the front range;

• Page 3, Line 7(b)  Investments in public transit systems across Colorado will

• Page 3, Line 8continue in the coming years with new bus rapid transit lines, rail

• Page 3, Line 9systems, and upgrades to local, intercity, and regional bus services;

• Page 3, Line 10(c)  Despite recent investments in public transit systems across

• Page 3, Line 11Colorado, transit ridership in Colorado lags behind peer states around the

• Page 3, Line 12country, due in part to a lack of housing near these transit lines and

• Page 3, Line 13infrastructure barriers that can make it challenging for people to access

• Page 3, Line 14transit stations;

• Page 3, Line 15(d)  Encouraging more housing near transit is important for

• Page 3, Line 16increasing transit ridership and improving the cost-effectiveness of transit

• Page 3, Line 17services;

• Page 4, Line 1(e)  Researchers have found that higher residential densities

• Page 4, Line 2citywide increase cost-effectiveness for light rail and bus rapid transit

• Page 4, Line 3services, as described in the article "Cost of a Ride: The Effects of

• Page 4, Line 4Densities on Fixed-Guideway Transit Ridership and Costs" by Erick

• Page 4, Line 5Guerra and Robert Cervero;

• Page 4, Line 6(f)  Most light and commuter rail stations and frequent bus

• Page 4, Line 7corridors in Colorado have lower housing unit density than is necessary

• Page 4, Line 8to support frequent transit;

• Page 4, Line 9(g)  Based on 2020 census block housing unit data, over ninety

• Page 4, Line 10percent of rail stations and eighty-four percent of bus rapid transit and

• Page 4, Line 11frequent bus corridors along the front range have fewer than fifteen

• Page 4, Line 12housing units per acre on average within walking distance, while

• Page 4, Line 13researchers have generally found that a minimum of fifteen housing units

• Page 4, Line 14per acre of built density is needed to support frequent transit;

• Page 4, Line 15(h)  Transit-oriented development, including connecting housing

• Page 4, Line 16opportunities and services with safe multimodal infrastructure and public

• Page 4, Line 17transit, improves the accessibility of communities for people with

• Page 4, Line 18disabilities and limited mobility;

• Page 4, Line 19(i)  People with disabilities are more likely to live in households

• Page 4, Line 20with zero cars, are less likely to drive, and are more likely to rely on

• Page 4, Line 21public transit or paratransit, according to the 2017 "National Household

• Page 4, Line 22Travel Survey";

• Page 4, Line 23(j)  The design of the built environment surrounding transit

• Page 4, Line 24stations, including the presence of sidewalks, crosswalks, bike lanes, and

• Page 4, Line 25other multimodal infrastructure, influences the accessibility to transit

• Page 4, Line 26stations and overall transit ridership, as identified by studies such as

• Page 4, Line 27"Travel and the Built Environment: A Meta-Analysis" by Reid Ewing and

• Page 5, Line 1Robert Cervero, and "Transit commuting, the network accessibility effect,

• Page 5, Line 2and the built environment in station areas across the United States" in the

• Page 5, Line 3journal Research in Transportation Economics;

• Page 5, Line 4(k)  Improvements to the design of the built environment

• Page 5, Line 5surrounding transit stations support placemaking, which is the process of

• Page 5, Line 6intentionally planning, designing, and building infrastructure and housing

• Page 5, Line 7that capitalize on a community's amenities and culture;

• Page 5, Line 8(l)  Placemaking can enhance the desirability of a given

• Page 5, Line 9community and the well-being of those who live in, work in, or visit a

• Page 5, Line 10given community, and can create a strong demand for housing in a

• Page 5, Line 11community;

• Page 5, Line 12(m)  The 2023 Community and Transportation Preferences Survey

• Page 5, Line 13published by the National Association of Realtors found that when

• Page 5, Line 14deciding where to live, seventy-nine percent of people said being within

• Page 5, Line 15an easy walk of other places and things, such as shops and parks, is

• Page 5, Line 16very/somewhat important, eighty-five percent said sidewalks and places

• Page 5, Line 17to walk are very/somewhat important, and sixty-five percent said having

• Page 5, Line 18public transport nearby is very/somewhat important; and

• Page 5, Line 19(n)  The 1998 Assessment of the Economic Impacts of Rural

• Page 5, Line 20Public Transportation published by the Transit Cooperative Research

• Page 5, Line 21Program, which assessed the economic impacts of rural public

• Page 5, Line 22transportation, found that there was an eleven percent difference in

• Page 5, Line 23average net earnings growth between rural counties that had public transit

• Page 5, Line 24systems and those rural counties that did not.

• Page 5, Line 25(2)  Therefore, by enacting this House Bill , the general

• Page 5, Line 26assembly intends to establish new financing tools utilizing tax increment

• Page 5, Line 27financing to encourage local government efforts to improve infrastructure

• Page 6, Line 1near transit and rail stations that will promote placemaking and spur

• Page 6, Line 2housing development supported by tax credits, which would not occur

• Page 6, Line 3without the enactment of this House Bill .

• Page 6, Line 4SECTION 2.  In Colorado Revised Statutes, add part 4 to article

• Page 6, Line 546 of title 24 as follows:

• Page 6, Line 6PART 4

• Page 6, Line 7TRANSIT INVESTMENT AREA ACT

• Page 6, Line 824-46-401.  Short title.

• Page 6, Line 9The short title of this part 4 is the "Transit Investment

• Page 6, Line 10Area Act".

• Page 6, Line 1124-46-402.  Definitions.

• Page 6, Line 12As used in this part 4, unless the context otherwise

• Page 6, Line 13requires:

• Page 6, Line 14(1)  "Aerial transit facility" means one or more physical

• Page 6, Line 15structures that use aerial cables to move passengers and that

• Page 6, Line 16link directly to another form of mass transit, such as passenger

• Page 6, Line 17rail, light rail, other types of trains, trolleys, or buses.

• Page 6, Line 18(2)  "Base year revenue" means an amount equal to the

• Page 6, Line 19state sales tax revenue collected on sales made at physical

• Page 6, Line 20sites within a proposed transit investment area during the

• Page 6, Line 21twelve-month period immediately prior to the month in which a

• Page 6, Line 22transit investment project is authorized, as determined by the

• Page 6, Line 23department.

• Page 6, Line 24(3)  "Baseline growth rate" means the forecasted growth

• Page 6, Line 25in state sales tax revenue collected on sales made at physical

• Page 6, Line 26sites within a proposed transit investment area above the base

• Page 6, Line 27year revenue that would be collected on sales made at physical

• Page 7, Line 1sites within a proposed transit investment area if the proposed

• Page 7, Line 2transit investment project did not occur, as determined by the

• Page 7, Line 3office of economic development pursuant to section 24-46-403 (2),

• Page 7, Line 4based on data from the previous ten-year period immediately

• Page 7, Line 5preceding the submission of an application.

• Page 7, Line 6(4)  "Commission" means the Colorado economic

• Page 7, Line 7development commission created in section 24-46-102.

• Page 7, Line 8(5)  "County revitalization authority" has the meaning set

• Page 7, Line 9forth in section 30-31-103 (6).

• Page 7, Line 10(6)  "Department" means the department of revenue

• Page 7, Line 11created in section 24-35-101.

• Page 7, Line 12(7)  "Director" means the director of the Colorado office

• Page 7, Line 13of economic development created in section 24-48.5-101.

• Page 7, Line 14(8)  "Eligible costs" means the costs of:

• Page 7, Line 15(a)  Designing, constructing, financing, and maintaining

• Page 7, Line 16eligible improvements designated by the commission as part of an

• Page 7, Line 17approved transit investment project. These costs include the

• Page 7, Line 18costs of:

• Page 7, Line 19(I)  Engineering, including construction engineering;

• Page 7, Line 20(II)  Surveying, including construction surveying;

• Page 7, Line 21(III)  Construction labor and materials;

• Page 7, Line 22(IV)  Design, including bonding, insurance, and permitting

• Page 7, Line 23fees;

• Page 7, Line 24(V)  Planning;

• Page 7, Line 25(VI)  Legal services;

• Page 7, Line 26(VII)  Accounting;

• Page 7, Line 27(VIII)  Overhead or administrative staffing;

• Page 8, Line 1(IX)  Financing;

• Page 8, Line 2(X)  Bond issuance or reissuance and underwriting;

• Page 8, Line 3(XI)  Interest payments;

• Page 8, Line 4(XII)  Loan origination fees;

• Page 8, Line 5(XIII)  Operations; and

• Page 8, Line 6(XIV)  Similar necessary and convenient costs incurred by

• Page 8, Line 7the financing entity in exercising its powers pursuant to this

• Page 8, Line 8part 4.

• Page 8, Line 9(b)  Funds advanced by private developers within the

• Page 8, Line 10transit investment project to, or on behalf of, the financing

• Page 8, Line 11entity for eligible improvements, whether a private developer

• Page 8, Line 12advances those funds pursuant to loans or contractual funding

• Page 8, Line 13and reimbursement agreements;

• Page 8, Line 14(c)  Reasonable interest on the funds advanced by a

• Page 8, Line 15private developer pursuant to subsection (8)(b) of this section;

• Page 8, Line 16(d)  A financing entity's costs for purchasing eligible

• Page 8, Line 17improvements constructed and owned by third parties either

• Page 8, Line 18before or after designation of the transit investment project;

• Page 8, Line 19and

• Page 8, Line 20(e)  Costs and expenses incurred by a financing entity

• Page 8, Line 21pursuant to section 24-35-123 and in complying with its annual

• Page 8, Line 22report and audit obligations under this part 4.

• Page 8, Line 23(9)  "Eligible improvements" means the specific

• Page 8, Line 24improvements authorized by the commission as part of an

• Page 8, Line 25approved transit investment project, including:

• Page 8, Line 26(a)  Roads;

• Page 8, Line 27(b)  Streets;

• Page 9, Line 1(c)  State highways;

• Page 9, Line 2(d)  Rights-of-way;

• Page 9, Line 3(e)  Lighting;

• Page 9, Line 4(f)  Direction and location signage and similar signage;

• Page 9, Line 5(g)  Land acquisition;

• Page 9, Line 6(h)  Surveying, engineering, soils testing, site planning,

• Page 9, Line 7grading, and similar activities necessary or convenient for site

• Page 9, Line 8preparation and development;

• Page 9, Line 9(i)  Trails and paths;

• Page 9, Line 10(j)  Public safety facilities;

• Page 9, Line 11(k)  Landscaping;

• Page 9, Line 12(l)  Transportation facilities;

• Page 9, Line 13(m)  Bicycle and pedestrian infrastructure;

• Page 9, Line 14(n)  Surface and structured parking facilities; and

• Page 9, Line 15(o)  Any other facilities or improvements necessary or

• Page 9, Line 16convenient for the completion of an approved project.

• Page 9, Line 17(10) (a)  "Financing entity" means the entity designated by

• Page 9, Line 18the commission in connection with its approval of a transit

• Page 9, Line 19investment project to receive and use state sales tax increment

• Page 9, Line 20revenue.

• Page 9, Line 21(b)  A county revitalization authority, a metropolitan

• Page 9, Line 22district, an urban renewal authority, or any transit investment

• Page 9, Line 23authority to be formed pursuant to this part 4 may qualify as a

• Page 9, Line 24financing entity.

• Page 9, Line 25(11)  "Financing term" means the aggregate period not to

• Page 9, Line 26exceed thirty years authorized by the commission pursuant to

• Page 9, Line 27this part 4 during which the financing entity is authorized to

• Page 10, Line 1receive and use state sales tax increment revenue to finance

• Page 10, Line 2eligible costs.

• Page 10, Line 3(12)  "Inflation or deflation" means the annual percentage

• Page 10, Line 4change in the United States department of labor's bureau of

• Page 10, Line 5labor statistics consumer price index, or a successor index, for

• Page 10, Line 6Denver-Aurora-Lakewood for all items paid for by urban

• Page 10, Line 7consumers.

• Page 10, Line 8(13)  "Local government" means a city, county, city and

• Page 10, Line 9county, town, or a group of contiguous cities, counties, cities

• Page 10, Line 10and counties, or towns.

• Page 10, Line 11(14)  "Office of economic development" means the

• Page 10, Line 12Colorado office of economic development created in section

• Page 10, Line 1324-48.5-101.

• Page 10, Line 14(15)  "Passenger rail station" has the meaning set forth in

• Page 10, Line 15section 32-22-102 (8).

• Page 10, Line 16(16)  "State sales tax increment revenue" means an annual

• Page 10, Line 17amount equal to the total of:

• Page 10, Line 18(a)  The annual revenue derived from state sales taxes,

• Page 10, Line 19including any revenue attributable to the baseline growth

• Page 10, Line 20rate, collected on sales made at physical sites within a

• Page 10, Line 21designated transit investment area in excess of the amount of

• Page 10, Line 22base year revenue adjusted to account for the baseline growth

• Page 10, Line 23rate; and

• Page 10, Line 24(b)  Twenty percent of the base year revenue, which

• Page 10, Line 25twenty percent approximates online sales that are not included

• Page 10, Line 26as sales made at physical sites within a designated transit

• Page 10, Line 27investment area.

• Page 11, Line 1(17)  "Transit agency" means a local or regional transit

• Page 11, Line 2district, or a regional transportation authority that provides

• Page 11, Line 3public transit.

• Page 11, Line 4(18)  "Transit and housing investment zone" means the area

• Page 11, Line 5designated by the office of economic development in the transit

• Page 11, Line 6and housing investment zone map pursuant to section 24-48.5-136.

• Page 11, Line 7(19)  "Transit investment area" means a geographic area

• Page 11, Line 8that is within a transit and housing investment zone and that

• Page 11, Line 9the commission approves as part of a transit investment project

• Page 11, Line 10pursuant to section 24-46-404 (3)(d)(I)(B). A transit investment

• Page 11, Line 11area shall not extend into the territorial boundaries of any

• Page 11, Line 12local government unless a local government requests the

• Page 11, Line 13designation of the transit investment area. A transit investment

• Page 11, Line 14area may be limited to portions of a local government and may

• Page 11, Line 15include noncontinguous tracts or parcels of property.

• Page 11, Line 16(20)  "Transit investment authority" or "authority" means

• Page 11, Line 17a corporate body organized pursuant to this part 4 for the

• Page 11, Line 18purposes, with the powers, and subject to the restrictions set

• Page 11, Line 19forth in this part 4 and the formation of which has been

• Page 11, Line 20approved by the commission pursuant to this part 4.

• Page 11, Line 21(21)  "Transit investment project" or "project" means a

• Page 11, Line 22development project that is planned to include a transportation

• Page 11, Line 23facility or significant improvements to a transportation facility

• Page 11, Line 24together with ancillary uses, structures, and improvements,

• Page 11, Line 25and that the commission approves pursuant to section 24-46-404

• Page 11, Line 26(3).

• Page 11, Line 27(22) (a)  "Transit station" means a physical location

• Page 12, Line 1designed to integrate and facilitate the connection between

• Page 12, Line 2multiple modes of transportation, including:

• Page 12, Line 3(I)  Public transit, such as buses;

• Page 12, Line 4(II)  Light rail, aerial transit, and commuter rail;

• Page 12, Line 5(III)  Active transportation, such as bicycle and pedestrian

• Page 12, Line 6infrastructure;

• Page 12, Line 7(IV)  Shared mobility services including car share, bike

• Page 12, Line 8share, and scooter share;

• Page 12, Line 9(V)  Ride-hailing and demand-responsive services; and

• Page 12, Line 10(VI)  Private vehicles.

• Page 12, Line 11(b)  A transit station may include related infrastructure

• Page 12, Line 12that supports seamless and efficient multimodal travel, such as

• Page 12, Line 13park-and-ride facilities, electric vehicle charging stations,

• Page 12, Line 14bicycle storage, wayfinding systems, and passenger amenities.

• Page 12, Line 15(23)  "Transportation facility" means a transit station or

• Page 12, Line 16passenger rail station.

• Page 12, Line 17(24)  "Urban renewal authority" has the meaning set forth

• Page 12, Line 18in section 31-25-103 (8.5).

• Page 12, Line 1924-46-403.  Transit investment project - application -

• Page 12, Line 20requirements - transit investment zones cash fund.

• Page 12, Line 21(1)  Beginning January 1, 2027, a local government, either

• Page 12, Line 22alone or in partnership with a transit agency that has

• Page 12, Line 23jurisdiction within a proposed transit investment area, may

• Page 12, Line 24submit an application to the office of economic development for

• Page 12, Line 25the approval of a transit investment project, including the:

• Page 12, Line 26(a)  Designation of a transit investment area;

• Page 12, Line 27(b)  Creation of a transit investment authority, as

• Page 13, Line 1necessary; and

• Page 13, Line 2(c)  Designation of a financing entity to receive, use, and

• Page 13, Line 3disburse state sales tax increment revenue for eligible costs.

• Page 13, Line 4(2) (a)  Before a local government submits an application

• Page 13, Line 5for a transit investment project to the office of economic

• Page 13, Line 6development pursuant to subsection (1) of this section, the local

• Page 13, Line 7government must submit a map showing the proposed boundaries

• Page 13, Line 8of a proposed transit investment area to the office of economic

• Page 13, Line 9development, along with data and a calculation showing the

• Page 13, Line 10projected baseline growth rate. The office of economic

• Page 13, Line 11development shall verify whether the proposed transit

• Page 13, Line 12investment area is within a transit and housing investment zone

• Page 13, Line 13that is established in relation to a transit facility that is the

• Page 13, Line 14subject of the transit investment project in the local

• Page 13, Line 15government's application submitted pursuant to subsection (1)

• Page 13, Line 16of this section, and the office of economic development shall

• Page 13, Line 17enter into a contract with a third party to determine the

• Page 13, Line 18baseline growth rate for the proposed transit investment area.

• Page 13, Line 19In determining the baseline growth rate, the contracted third

• Page 13, Line 20party shall consider the growth rate for the proposed transit

• Page 13, Line 21investment area during at least the previous ten calendar

• Page 13, Line 22years. The third-party contractor shall deliver its findings to

• Page 13, Line 23the office of state planning and budgeting for review.

• Page 13, Line 24(b)  The office of economic development may charge a

• Page 13, Line 25local government a submission fee of up to four thousand five

• Page 13, Line 26hundred dollars per submission, and the state treasurer shall

• Page 13, Line 27credit that fee to the transit investment zones cash fund

• Page 14, Line 1created in subsection (6) of this section, for the costs incurred

• Page 14, Line 2in contracting with a third party for the determination of the

• Page 14, Line 3baseline growth rate for the proposed transit investment area

• Page 14, Line 4pursuant to subsection (2)(a) of this section. The office of

• Page 14, Line 5economic development shall annually adjust for inflation or

• Page 14, Line 6deflation the fee required pursuant to this subsection (2)(b) and

• Page 14, Line 7shall round the adjusted amount upward or downward to the

• Page 14, Line 8nearest hundred dollars.

• Page 14, Line 9(c)  The local government and the third-party analyst

• Page 14, Line 10retained pursuant to subsection (3)(j) of this section shall use

• Page 14, Line 11the baseline growth rate determined by a contracted third

• Page 14, Line 12party pursuant to subsection (2)(a) of this section in their

• Page 14, Line 13assumptions and economic analyses for the purpose of

• Page 14, Line 14calculating the total cumulative dollar amount available to

• Page 14, Line 15be pledged to the proposed transit investment project as

• Page 14, Line 16required by subsections (3)(i) and (3)(j) of this section.

• Page 14, Line 17(3)  A local government that submits an application

• Page 14, Line 18pursuant to subsection (1) of this section must submit the

• Page 14, Line 19application to the office of economic development in a form and

• Page 14, Line 20manner to be determined by the commission. An application must

• Page 14, Line 21include at least:

• Page 14, Line 22(a)  Maps of the proposed project area showing both

• Page 14, Line 23current conditions and a conceptual rendering of the proposed

• Page 14, Line 24transit investment project in its anticipated built condition;

• Page 14, Line 25(b)  A map showing the proposed boundaries of the proposed

• Page 14, Line 26transit investment area;

• Page 14, Line 27(c)  A narrative description of the proposed transit

• Page 15, Line 1investment project, including:

• Page 15, Line 2(I)  The location and estimated overall cost;

• Page 15, Line 3(II)  Estimated eligible costs;

• Page 15, Line 4(III)  The anticipated scope and phasing of eligible

• Page 15, Line 5improvements;

• Page 15, Line 6(IV)  The infrastructure existing or needed in connection

• Page 15, Line 7with the proposed transit investment project; and

• Page 15, Line 8(V)  An operations, maintenance, and capital reserve plan

• Page 15, Line 9for the proposed transit investment project;

• Page 15, Line 10(d)  A discussion of the application criteria established in

• Page 15, Line 11subsection (4) of this section and how the proposed transit

• Page 15, Line 12investment project will meet the criteria. This discussion shall

• Page 15, Line 13include an economic analysis detailing:

• Page 15, Line 14(I)  Projected economic development;

• Page 15, Line 15(II)  Impact of the project on future state sales tax

• Page 15, Line 16revenue in the transit investment area during and after the

• Page 15, Line 17financing term; and

• Page 15, Line 18(III)  Any other information reasonably requested by the

• Page 15, Line 19commission;

• Page 15, Line 20(e) (I)  A description of the proposed financing entity; and

• Page 15, Line 21(II)  A general description of the proposed financing

• Page 15, Line 22entity's plan for financing the eligible costs and providing the

• Page 15, Line 23proposed eligible improvements;

• Page 15, Line 24(f)  If applicable, a request for authorization of a transit

• Page 15, Line 25investment authority, which request shall include a description

• Page 15, Line 26of the proposed transit investment authority's:

• Page 15, Line 27(I)  Geographic boundaries;

• Page 16, Line 1(II)  Requested powers; and

• Page 16, Line 2(III)  Anticipated sources of revenue, if any, in addition to

• Page 16, Line 3state sales tax increment revenue;

• Page 16, Line 4(g)  If it is anticipated that the proposed financing entity

• Page 16, Line 5will enter into contractual arrangements with one or more

• Page 16, Line 6urban renewal authorities, metropolitan districts, authorities

• Page 16, Line 7formed by intergovernmental agreement among two or more

• Page 16, Line 8metropolitan districts, local governments, regional

• Page 16, Line 9transportation authorities, or private parties with respect to

• Page 16, Line 10the method of financing the eligible costs and providing the

• Page 16, Line 11proposed eligible improvements, a general description of the

• Page 16, Line 12contemplated contractual arrangements;

• Page 16, Line 13(h)  If it is anticipated that the proposed eligible

• Page 16, Line 14improvements will be constructed in phases or that financing of

• Page 16, Line 15the eligible costs will be accomplished in phases, a description of

• Page 16, Line 16the contemplated phases and the anticipated timing of the

• Page 16, Line 17phases;

• Page 16, Line 18(i)  Concerning the financing of the proposed eligible

• Page 16, Line 19public improvements by the financing entity, the following

• Page 16, Line 20proposed items:

• Page 16, Line 21(I)  The financing term;

• Page 16, Line 22(II)  The total cumulative dollar amount of revenue that

• Page 16, Line 23can be allocated to the financing entity; and

• Page 16, Line 24(III)  The portion of the financing term during which the

• Page 16, Line 25percentage of state sales tax increment revenue to be

• Page 16, Line 26allocated to the financing entity is to be allocated to the

• Page 16, Line 27financing entity;

• Page 17, Line 1(j)  Upon receipt of an application, the office of economic

• Page 17, Line 2development shall commission a report by a third-party analyst

• Page 17, Line 3who is an expert in the field of economic or public financial

• Page 17, Line 4analysis calculating the total cumulative dollar amount

• Page 17, Line 5available to be pledged to the proposed transit investment

• Page 17, Line 6project to be set by the commission pursuant to section 24-46-404

• Page 17, Line 7(3). The reviewing third-party analyst must be chosen through

• Page 17, Line 8a request for proposals issued by the office of economic

• Page 17, Line 9development to ensure an independent and thorough analysis,

• Page 17, Line 10and the third-party analyst shall report to that office. The

• Page 17, Line 11office of economic development shall charge an application fee

• Page 17, Line 12to a local government that submits an application pursuant to

• Page 17, Line 13subsection (1) of this section, and the state treasurer shall

• Page 17, Line 14credit that fee to the transit investment zones cash fund

• Page 17, Line 15created in subsection (6) of this section, to pay the costs for the

• Page 17, Line 16third-party analyst to:

• Page 17, Line 17(I)  Calculate the total anticipated state sales tax

• Page 17, Line 18increment revenue during the financing term in the proposed

• Page 17, Line 19transit investment area;

• Page 17, Line 20(II)  Calculate the total regional transit investment area

• Page 17, Line 21state sales tax increment revenue that each local government

• Page 17, Line 22that is a party to a multiparty application is eligible to receive;

• Page 17, Line 23and

• Page 17, Line 24(III)  Assess the application's satisfaction of the criteria

• Page 17, Line 25described in subsection (4) of this section and the provision of

• Page 17, Line 26any information required by the office of economic development

• Page 17, Line 27or the commission.

• Page 18, Line 1(k)  A local government that submits an application

• Page 18, Line 2pursuant to subsection (1) of this section must share the data

• Page 18, Line 3and assumptions it used in its application with the third-party

• Page 18, Line 4analyst, and the analyst shall rely on the data and reasoning

• Page 18, Line 5as it deems appropriate in the exercise of its independent

• Page 18, Line 6judgment. An applicant that is dissatisfied with the report

• Page 18, Line 7produced by the third-party analyst may revise its application

• Page 18, Line 8and request that the third-party analyst revise the report.

• Page 18, Line 9(4)  An application must demonstrate that it satisfies each

• Page 18, Line 10of the following criteria:

• Page 18, Line 11(a)  The proposed transit investment project is reasonably

• Page 18, Line 12anticipated to result in a substantial increase in transit

• Page 18, Line 13utilization;

• Page 18, Line 14(b)  The boundaries of the proposed transit investment

• Page 18, Line 15area are only as large as necessary to accomplish the proposed

• Page 18, Line 16transit investment project goals;

• Page 18, Line 17(c)  The proposed transit investment project or substantial

• Page 18, Line 18portions of the proposed project have been identified as part of

• Page 18, Line 19a local planning process;

• Page 18, Line 20(d)  The costs identified pursuant to section 24-46-403

• Page 18, Line 21(3)(c)(II) are eligible costs;

• Page 18, Line 22(e)  The state sales tax increment revenue that exceeds

• Page 18, Line 23the projected costs of eligible costs will be spent on additional

• Page 18, Line 24eligible costs incurred in connection with the transit

• Page 18, Line 25investment project; and

• Page 18, Line 26(f)  The local government that submitted the application

• Page 18, Line 27for the proposed transit investment project has provided

• Page 19, Line 1reliable economic data demonstrating that, in the absence of

• Page 19, Line 2state sales tax increment revenue, the proposed project is not

• Page 19, Line 3reasonably anticipated to be developed within the foreseeable

• Page 19, Line 4future.

• Page 19, Line 5(5)  The office of economic development shall provide the

• Page 19, Line 6commission with each application received after the director's

• Page 19, Line 7review pursuant to section 24-46-404.

• Page 19, Line 8(6) (a)  The transit investment zones cash fund is created

• Page 19, Line 9in the state treasury. The fund consists of application fees

• Page 19, Line 10collected by the office of economic development and credited to

• Page 19, Line 11the fund pursuant to subsection (3)(j) of this section, submission

• Page 19, Line 12fees collected by the office of economic development and

• Page 19, Line 13credited to the fund pursuant to subsection (2)(b) of this

• Page 19, Line 14section, and any other money that the general assembly may

• Page 19, Line 15appropriate or transfer to the fund.

• Page 19, Line 16(b)  In accordance with section 24-36-114 (1), the state

• Page 19, Line 17treasurer shall credit all interest and income derived from the

• Page 19, Line 18deposit and investment of money in the transit investment zones

• Page 19, Line 19cash fund to the general fund.

• Page 19, Line 20(c)  Money in the fund is continuously appropriated to the

• Page 19, Line 21office of economic development to pay:

• Page 19, Line 22(I)  The cost incurred in contracting with a third party to

• Page 19, Line 23determine the baseline growth rate for the proposed transit

• Page 19, Line 24investment area pursuant to subsection (2)(a) of this section;

• Page 19, Line 25and

• Page 19, Line 26(II)  The costs for third-party analysts as described in

• Page 19, Line 27subsection (3)(j) of this section.

• Page 20, Line 124-46-404.  Transit investment project approval - director -

• Page 20, Line 2commission - review.

• Page 20, Line 3(1)  Upon receipt of a local government's application for

• Page 20, Line 4the approval of a transit investment project, the director or the

• Page 20, Line 5director's designee shall review the application and make an

• Page 20, Line 6initial determination as to whether the application has met the

• Page 20, Line 7criteria for a transit investment project specified in section

• Page 20, Line 824-46-403 (4).

• Page 20, Line 9(2)  After reviewing an application for approval of a

• Page 20, Line 10transit investment project for completeness, the director shall

• Page 20, Line 11forward the application:

• Page 20, Line 12(a)  To the third-party analyst who will review the

• Page 20, Line 13application pursuant to section 24-46-403 (3)(j);

• Page 20, Line 14(b)  At least thirty days prior to a public hearing held

• Page 20, Line 15pursuant to subsection (3) of this section, to any local

• Page 20, Line 16government that is adjacent to the location of the proposed

• Page 20, Line 17transit investment area to notify the adjacent jurisdictions of

• Page 20, Line 18the proposal; and

• Page 20, Line 19(c)  To the commission with a recommendation that the

• Page 20, Line 20commission approve, approve with conditions, or deny the

• Page 20, Line 21application.

• Page 20, Line 22(3) (a)  Upon receiving an application for the approval of

• Page 20, Line 23a transit investment project, the commission shall hold a public

• Page 20, Line 24hearing, subject to the open meetings law under part 4 of article

• Page 20, Line 256 of this title 24, to review and consider the application. The

• Page 20, Line 26commission may hold the hearing virtually.

• Page 20, Line 27(b)  After holding a hearing pursuant to subsection (3)(a)

• Page 21, Line 1of this section, while giving consideration to the director's

• Page 21, Line 2recommendations and the report completed by a third-party

• Page 21, Line 3analyst pursuant to section 24-46-403 (3)(j), the commission shall

• Page 21, Line 4timely approve, approve with conditions, or deny an application.

• Page 21, Line 5(c)  The commission shall approve a local government's

• Page 21, Line 6application for the approval of a transit investment project if a

• Page 21, Line 7majority of the commissioners participating in the review of the

• Page 21, Line 8application finds that the application demonstrates that each

• Page 21, Line 9of the criteria identified in section 24-46-403 (4) are materially

• Page 21, Line 10met.

• Page 21, Line 11(d) (I)  If the commission approves an application for a

• Page 21, Line 12transit investment project, it shall adopt a resolution that

• Page 21, Line 13specifies:

• Page 21, Line 14(A)  The local government that has been approved to

• Page 21, Line 15undertake a transit investment project;

• Page 21, Line 16(B)  The boundary of the transit investment area

• Page 21, Line 17established in connection with the transit investment project;

• Page 21, Line 18(C)  Whether the commission has authorized the creation

• Page 21, Line 19of a transit investment authority; and

• Page 21, Line 20(D)  The total cumulative dollar amount that can be

• Page 21, Line 21dedicated to the transit investment project, as determined

• Page 21, Line 22pursuant to subsection (3)(d)(II) of this section.

• Page 21, Line 23(II) (A)  In determining the total cumulative dollar

• Page 21, Line 24amount that can be dedicated to the transit investment project

• Page 21, Line 25pursuant to subsection (3)(d)(I)(D) of this section, the commission

• Page 21, Line 26shall award an amount equal to the total cumulative dollar

• Page 21, Line 27amount that the third-party analyst determines can be

• Page 22, Line 1dedicated to the transit investment project as reported

• Page 22, Line 2pursuant to section 24-46-403 (3)(j).

• Page 22, Line 3(B)  Notwithstanding subsection (3)(d)(II)(A) of this

• Page 22, Line 4section, if the estimated eligible costs identified pursuant to

• Page 22, Line 5section 24-46-403 (3)(c)(II) are less than the total cumulative

• Page 22, Line 6dollar amount that the third-party analyst determines can be

• Page 22, Line 7dedicated to the transit investment project as reported

• Page 22, Line 8pursuant to section 24-46-403 (3)(j) and the application did not

• Page 22, Line 9affirm that state sales tax increment revenue that exceeds the

• Page 22, Line 10estimated eligible costs will be spent on additional eligible

• Page 22, Line 11costs incurred in connection with the transit investment

• Page 22, Line 12project, in determining the total cumulative dollar amount

• Page 22, Line 13that can be dedicated to the transit investment project

• Page 22, Line 14pursuant to subsection (3)(d)(I)(D) of this section, the commission

• Page 22, Line 15shall award a total cumulative dollar amount equal to the

• Page 22, Line 16estimated eligible costs identified pursuant to section 24-46-403

• Page 22, Line 17(3)(c)(II).

• Page 22, Line 18(C)  Notwithstanding subsection (3)(d)(II)(A) of this

• Page 22, Line 19section, if the estimated eligible costs identified pursuant to

• Page 22, Line 20section 24-46-403 (3)(c)(II) are less than the total cumulative

• Page 22, Line 21dollar amount that the third-party analyst determines can be

• Page 22, Line 22dedicated to the transit investment project as reported

• Page 22, Line 23pursuant to section 24-46-403 (3)(j) and the application affirmed

• Page 22, Line 24that state sales tax increment revenue that exceeds the

• Page 22, Line 25estimated eligible costs will be spent on additional eligible

• Page 22, Line 26costs incurred in connection with the transit investment

• Page 22, Line 27project, in determining the total cumulative dollar amount

• Page 23, Line 1that can be dedicated to the transit investment project

• Page 23, Line 2pursuant to subsection (3)(d)(I)(D) of this section, the commission

• Page 23, Line 3shall award a total cumulative dollar amount equal to the

• Page 23, Line 4estimated eligible costs identified pursuant to section 24-46-403

• Page 23, Line 5(3)(c)(II) and allow for the expenditure of additional state sales

• Page 23, Line 6tax increment revenue for additional eligible costs incurred in

• Page 23, Line 7connection with the transit investment project beyond those

• Page 23, Line 8estimated in the application.

• Page 23, Line 9(e)  The commission shall not approve any proposed transit

• Page 23, Line 10investment project that would likely create a state sales tax

• Page 23, Line 11increment revenue dedication of more than seventy-five million

• Page 23, Line 12dollars to all transit investment projects in any given fiscal

• Page 23, Line 13year.

• Page 23, Line 14(f) (I)  The commission shall not approve more than three

• Page 23, Line 15transit investment projects pursuant to this subsection (3) in

• Page 23, Line 16any calendar year and shall not approve more than six transit

• Page 23, Line 17investment projects pursuant to this subsection (3) in total.

• Page 23, Line 18(II)  If the commission does not approve a proposed transit

• Page 23, Line 19investment project because doing so would cause the commission

• Page 23, Line 20to approve more than three proposed transit investment

• Page 23, Line 21projects in the same calendar year, the commission may consider

• Page 23, Line 22such a project for approval, approval with conditions, or denial

• Page 23, Line 23in the next calendar year.

• Page 23, Line 24(4) (a)  As part of the approval of a proposed transit

• Page 23, Line 25investment project, the commission shall authorize:

• Page 23, Line 26(I)  The department to collect the state sales tax

• Page 23, Line 27increment revenue set to be collected in connection with the

• Page 24, Line 1proposed transit investment project on behalf of the relevant

• Page 24, Line 2financing entity;

• Page 24, Line 3(II)  A financing entity to receive and use the state sales

• Page 24, Line 4tax increment revenue for the duration of the financing term;

• Page 24, Line 5and

• Page 24, Line 6(III)  The use of the state sales tax increment revenue by

• Page 24, Line 7the financing entity pursuant to this part 4 and any conditions

• Page 24, Line 8of approval imposed by the commission and incorporated in

• Page 24, Line 9writing into the commission's resolution approving the proposed

• Page 24, Line 10transit investment project.

• Page 24, Line 11(b)  In implementing the authorization described in

• Page 24, Line 12subsection (4)(a)(II) of this section, the department shall remit

• Page 24, Line 13state sales tax increment revenue to the financing entity on a

• Page 24, Line 14monthly basis promptly after collecting that revenue.

• Page 24, Line 15(5) (a)  The total amount of state sales tax increment

• Page 24, Line 16revenue dedicated to a transit investment project for the entire

• Page 24, Line 17duration of the project shall not exceed the total cumulative

• Page 24, Line 18dollar amount specified by the commission pursuant to

• Page 24, Line 19subsection (3) of this section. The department shall track the

• Page 24, Line 20annual and cumulative state sales tax increment revenue

• Page 24, Line 21remitted to the financing entity in connection with a transit

• Page 24, Line 22investment project and shall notify the commission when

• Page 24, Line 23cumulative payments equal ninety percent of the limits set by

• Page 24, Line 24the commission pursuant to subsection (3) of this section for the

• Page 24, Line 25commission's concurrence regarding the dollar limits.

• Page 24, Line 26(b)  After the department has remitted the total

• Page 24, Line 27cumulative dollar amount of state sales tax increment revenue

• Page 25, Line 1specified by the commission pursuant to subsection (3) of this

• Page 25, Line 2section to the financing entity, the department shall not remit

• Page 25, Line 3any additional state sales tax increment revenue from the state

• Page 25, Line 4to the financing entity, even if the approved financing term is

• Page 25, Line 5not completed. The department shall notify the commission if it

• Page 25, Line 6is no longer remitting state sales tax increment revenue to the

• Page 25, Line 7financing entity pursuant to this subsection (5)(b).

• Page 25, Line 8(6)  Following the commission's approval of an application,

• Page 25, Line 9and the establishment of the terms of award including the items

• Page 25, Line 10described in subsection (3)(d)(I) of this section, the commission

• Page 25, Line 11shall promptly transmit written notice and a copy of the

• Page 25, Line 12approval to the executive director of the department. The

• Page 25, Line 13commission shall include any information deemed necessary by

• Page 25, Line 14the department to fulfill its obligations pursuant to this part

• Page 25, Line 154 in the written notice.

• Page 25, Line 1624-46-405.  Transit investment authority - board - creation -

• Page 25, Line 17powers and duties.

• Page 25, Line 18(1)  The commission shall not deny a request to authorize

• Page 25, Line 19the creation of a transit investment authority if the commission

• Page 25, Line 20otherwise approves an application for a transit investment

• Page 25, Line 21project that includes a request for the formation of a transit

• Page 25, Line 22investment authority.

• Page 25, Line 23(2)  A transit investment authority is governed by a board

• Page 25, Line 24consisting of the following members:

• Page 25, Line 25(a)  If the transit investment authority is a single local

• Page 25, Line 26government:

• Page 25, Line 27(I)  Two members appointed by the commission who are

• Page 26, Line 1owners of commercial property within the transit investment

• Page 26, Line 2area;

• Page 26, Line 3(II)  Two members appointed by the local government who

• Page 26, Line 4are elected officials of the local government; and

• Page 26, Line 5(III)  One member appointed by the transit agency that

• Page 26, Line 6operates the transportation facility that is the subject of the

• Page 26, Line 7proposed transit investment project.

• Page 26, Line 8(b)  If the transit investment authority is two local

• Page 26, Line 9governments:

• Page 26, Line 10(I)  Two members appointed by the commission who are

• Page 26, Line 11owners of commercial property within the transit investment

• Page 26, Line 12area;

• Page 26, Line 13(II)  One member appointed by the transit agency that

• Page 26, Line 14operates the transportation facility that is the subject of the

• Page 26, Line 15proposed transit investment project; and

• Page 26, Line 16(III)  One member appointed by each of the two local

• Page 26, Line 17governments who is an elected official of one of the local

• Page 26, Line 18governments.

• Page 26, Line 19(c)  If the transit investment authority is more than two

• Page 26, Line 20local governments:

• Page 26, Line 21(I)  One member appointed by each local government in the

• Page 26, Line 22transit investment authority who is an elected official of one of

• Page 26, Line 23the local governments; and

• Page 26, Line 24(II)  Three or more members, as determined by the

• Page 26, Line 25commission so that the total number of members on a governing

• Page 26, Line 26board is an odd number, representing commercial property

• Page 26, Line 27owners within the transit investment area, appointed by the

• Page 27, Line 1commission.

• Page 27, Line 2(3)  Unless limited by the commission's conditions of

• Page 27, Line 3approval, each transit investment authority has all the powers

• Page 27, Line 4necessary or convenient to carry out this part 4, including the

• Page 27, Line 5following powers:

• Page 27, Line 6(a)  Perpetual existence and succession;

• Page 27, Line 7(b)  To adopt, have, and use a corporate seal;

• Page 27, Line 8(c)  To sue and be sued and to be a party to suits, actions,

• Page 27, Line 9and proceedings;

• Page 27, Line 10(d)  To undertake transit investment projects;

• Page 27, Line 11(e)  To enter into contracts and agreements affecting the

• Page 27, Line 12affairs of the transit investment authority as necessary to

• Page 27, Line 13complete a transit investment project;

• Page 27, Line 14(f)  To receive, invest, pledge, spend, and otherwise use and

• Page 27, Line 15expend state sales tax increment revenue in accordance with an

• Page 27, Line 16approved transit investment project;

• Page 27, Line 17(g)  To assign and pledge to any county revitalization

• Page 27, Line 18authority, metropolitan district, authority formed by

• Page 27, Line 19intergovernmental agreement among two or more metropolitan

• Page 27, Line 20districts, regional transportation authority, or urban renewal

• Page 27, Line 21authority having all or any portion of the transit investment

• Page 27, Line 22area within its boundaries or service area the transit

• Page 27, Line 23investment authority's right to receive and use state sales tax

• Page 27, Line 24increment revenue to support bonds or other financing

• Page 27, Line 25instruments issued or entered into by the county revitalization

• Page 27, Line 26authority, metropolitan district, authority formed by

• Page 27, Line 27intergovernmental agreement among two or more metropolitan

• Page 28, Line 1districts, regional transportation authority, or urban renewal

• Page 28, Line 2authority for eligible costs or to acquire eligible improvements,

• Page 28, Line 3including loans or funding and reimbursement agreements with

• Page 28, Line 4developers involved in the transit investment project or other

• Page 28, Line 5third parties;

• Page 28, Line 6(h)  To borrow money and incur indebtedness and evidence

• Page 28, Line 7the same by certificates and note and debentures;

• Page 28, Line 8(i)  To issue bonds in accordance with section 24-46-409;

• Page 28, Line 9(j)  To invest any of the authority's funds that are not

• Page 28, Line 10required for immediate disbursement;

• Page 28, Line 11(k)  To deposit any funds not required for immediate

• Page 28, Line 12disbursement in any depository authorized in section 24-75-603

• Page 28, Line 13and, for the purpose of making the deposits, to appoint by written

• Page 28, Line 14resolution one or more persons to act as custodians of the

• Page 28, Line 15authority's fund, which person shall give surety bonds in the

• Page 28, Line 16amounts and form and for the purposes required by the

• Page 28, Line 17authority;

• Page 28, Line 18(l)  To make appropriations and expenditures of its funds

• Page 28, Line 19and to set up, establish, and maintain general, separate, or

• Page 28, Line 20special funds and bank accounts or other accounts as it deems

• Page 28, Line 21necessary or convenient to carry out this part 4;

• Page 28, Line 22(m)  To accept on its own behalf real or personal property

• Page 28, Line 23for its own use;

• Page 28, Line 24(n)  To accept gifts and conveyances made to the

• Page 28, Line 25authority upon the terms or conditions approved by the

• Page 28, Line 26authority's board;

• Page 28, Line 27(o)  To adopt, amend, and enforce bylaws and rules that

• Page 29, Line 1are not in conflict with the constitution and laws of the state

• Page 29, Line 2for carrying out the business, objects, and affairs of the

• Page 29, Line 3authority;

• Page 29, Line 4(p)  To have and exercise all rights and powers necessary

• Page 29, Line 5or incidental to or implied from the specific powers granted to

• Page 29, Line 6the transit investment authority by this part 4. The specific

• Page 29, Line 7powers shall not be considered a limitation upon any power

• Page 29, Line 8necessary or appropriate to carry out this part 4.

• Page 29, Line 9(q)  To authorize the use of electronic records or

• Page 29, Line 10signatures and to adopt rules, standards, policies, and

• Page 29, Line 11procedures for use of electronic records or signatures pursuant

• Page 29, Line 12to article 71.3 of this title 24.

• Page 29, Line 13(4)  A transit investment authority does not have the

• Page 29, Line 14power of eminent domain and does not have the power to impose

• Page 29, Line 15or levy any sales tax, use tax, property tax, or any other tax.

• Page 29, Line 16(5)  The board of directors of a transit investment

• Page 29, Line 17authority is subject to the "Colorado Open Records Act", part

• Page 29, Line 182 of article 72 of this title 24, and the "Colorado Sunshine Act

• Page 29, Line 19of 1972", article 6 of this title 24.

• Page 29, Line 2024-46-406.  State sales tax increment revenue.

• Page 29, Line 21(1)  In order to implement the collection of state sales tax

• Page 29, Line 22increment revenue, the resolution adopted by the commission

• Page 29, Line 23approving a transit investment project shall state that the

• Page 29, Line 24department shall, no later than ninety days after the

• Page 29, Line 25commission's adoption of the resolution and after retaining an

• Page 29, Line 26amount of the state sales tax increment revenue established by

• Page 29, Line 27the department as necessary to offset the department's actual

• Page 30, Line 1direct costs and expenses incurred in performing the

• Page 30, Line 2department's collection and disbursement functions established

• Page 30, Line 3in this part 4 in connection with the transit investment project,

• Page 30, Line 4divide and distribute state sales taxes levied and collected on

• Page 30, Line 5sales made at physical sites within the transit investment area

• Page 30, Line 6commencing on the first day of the first month after the

• Page 30, Line 7department has collected the base year revenue for the year

• Page 30, Line 8after the effective date of the commission's approval of the

• Page 30, Line 9project as follows:

• Page 30, Line 10(a)  First, the portion of state sales taxes collected on

• Page 30, Line 11sales made at physical sites within the boundaries of the transit

• Page 30, Line 12investment area equal to the base year revenue and the baseline

• Page 30, Line 13growth rate is paid into the state treasury as state sales taxes

• Page 30, Line 14are normally collected and paid;

• Page 30, Line 15(b)  Second, the state sales taxes collected on sales made

• Page 30, Line 16at physical sites within the boundaries of the transit investment

• Page 30, Line 17area equal to the state sales tax increment revenue is are paid

• Page 30, Line 18into a special fund established by the financing entity pursuant

• Page 30, Line 19to subsection (2) of this section; and

• Page 30, Line 20(c)  Third, any excess state sales tax collections not

• Page 30, Line 21allocated pursuant to subsection (1)(b) of this section are paid

• Page 30, Line 22into the state treasury as sales taxes are normally collected

• Page 30, Line 23and paid and, if there is insufficient state sales taxes collected

• Page 30, Line 24on sales made at physical sites within the boundaries of the

• Page 30, Line 25transit investment area to make the allocation described in

• Page 30, Line 26subsection (1)(b) of this section, the state treasurer shall

• Page 30, Line 27transfer the necessary difference from state sales tax revenue

• Page 31, Line 1paid into the general fund pursuant to subsection (1)(a) of this

• Page 31, Line 2section into the same special fund established by the financing

• Page 31, Line 3entity pursuant to subsection (2) of this section.

• Page 31, Line 4(2) (a)  A financing entity must segregate revenue

• Page 31, Line 5allocated to the financing entity by the department pursuant

• Page 31, Line 6to subsection (1)(b) of this section in a special fund. The

• Page 31, Line 7financing entity shall segregate the special fund from the

• Page 31, Line 8financing entity's other funds. The financing entity may use the

• Page 31, Line 9money in the special fund to pay the principal of, the interest on,

• Page 31, Line 10and any premiums due in connection with the bonds of, loans or

• Page 31, Line 11advances to, or indebtedness incurred by, whether funded,

• Page 31, Line 12refunded, assumed, or otherwise, the financing entity for

• Page 31, Line 13financing or refinancing, in whole or in part, a transit

• Page 31, Line 14investment project.

• Page 31, Line 15(b)  A financing entity may use revenue allocated to the

• Page 31, Line 16financing entity by the department pursuant to subsection (1)(b)

• Page 31, Line 17of this section solely to finance eligible costs incurred for the

• Page 31, Line 18purpose of constructing the eligible improvements and

• Page 31, Line 19implementing the transit investment project.

• Page 31, Line 20(3)  State sales tax increment revenue, together with any

• Page 31, Line 21investment income earned on that revenue, is for all purposes

• Page 31, Line 22assigned to, the property of, and the revenue of the applicable

• Page 31, Line 23financing entity and is not for any purpose revenue or property

• Page 31, Line 24of the state.

• Page 31, Line 25(4)  A single debt issuance of a financing entity must not

• Page 31, Line 26have a maturity date in excess of thirty years from the date of

• Page 31, Line 27issuance, unless the financing entity both:

• Page 32, Line 1(a)  Anticipates issuing a series of bonds or other forms of

• Page 32, Line 2debt; and

• Page 32, Line 3(b)  Has the ability to consolidate or refinance previously

• Page 32, Line 4issued debt or bonds with a maturity date for such consolidated

• Page 32, Line 5or refinanced debt or bonds not to exceed thirty years from the

• Page 32, Line 6date of issuance of the consolidating or refinancing bonds.

• Page 32, Line 7(5)  On or before July 1, 2029, and on or before July 1 every

• Page 32, Line 8three years thereafter, the department must submit a report to

• Page 32, Line 9the office of state planning and budgeting and the commission on

• Page 32, Line 10technological or other methods to incorporate delivery sales

• Page 32, Line 11into the calculation of the increment and to allow for the

• Page 32, Line 12designation of additional transit and housing investment zones

• Page 32, Line 13and transit investment areas, including cost estimates,

• Page 32, Line 14administrative burden, and burden on taxpayers.

• Page 32, Line 1524-46-407.  Annual report - audit.

• Page 32, Line 16(1) (a)  Within ninety days of the end of the first full state

• Page 32, Line 17fiscal year after the commission approves a transit investment

• Page 32, Line 18project and on the same date each year thereafter, the

• Page 32, Line 19financing entity shall prepare and submit to the commission an

• Page 32, Line 20annual report detailing:

• Page 32, Line 21(I)  The total amount of state sales tax increment revenue

• Page 32, Line 22that the financing entity has received over the past year;

• Page 32, Line 23(II)  How the financing entity has spent the state sales tax

• Page 32, Line 24increment revenue that it has received;

• Page 32, Line 25(III)  Projected state sales tax increment revenue for the

• Page 32, Line 26remainder of the period for which the financing entity may

• Page 32, Line 27receive state sales tax increment revenue; and

• Page 33, Line 1(IV)  A summary of the status of construction of the

• Page 33, Line 2eligible improvements related to the transit investment project.

• Page 33, Line 3(b)  In addition to the information described in subsection

• Page 33, Line 4(1)(a) of this section, a financing entity submitting a report

• Page 33, Line 5pursuant to this subsection (1) shall also include in that report

• Page 33, Line 6whether the financial entity is using any state sales tax

• Page 33, Line 7increment revenue for purposes other than for eligible costs

• Page 33, Line 8and any other financial information that is reasonably required

• Page 33, Line 9by the commission.

• Page 33, Line 10(c)  If any information provided in the annual report

• Page 33, Line 11described in subsection (1)(a) of this section will be a trade

• Page 33, Line 12secret, proprietary, or otherwise entitled to protection

• Page 33, Line 13pursuant to part 2 of article 72 of this title 24, that information

• Page 33, Line 14is so designated by the financing entity and kept confidential by

• Page 33, Line 15the state.

• Page 33, Line 16(d)  The governing body of the financing entity shall

• Page 33, Line 17attest to the accuracy of the information provided in the

• Page 33, Line 18annual report described in subsection (1)(a) of this section.

• Page 33, Line 19(2) (a)  In connection with the annual report required

• Page 33, Line 20pursuant to subsection (1) of this section, a financing entity

• Page 33, Line 21shall submit an independent audit of its financial status that is

• Page 33, Line 22prepared by a certified public accountant attesting to the

• Page 33, Line 23accuracy of the annual report.

• Page 33, Line 24(b)  If the audit prepared pursuant to subsection (2)(a) of

• Page 33, Line 25this section finds that a financing entity has used state sales

• Page 33, Line 26tax increment revenue for unauthorized purposes, the financing

• Page 33, Line 27entity is liable for the repayment to the general fund of the

• Page 34, Line 1state sales tax increment revenue that was intended for the

• Page 34, Line 2transit investment project. The financing entity may make the

• Page 34, Line 3repayment:

• Page 34, Line 4(I)  From the financing entity's funds derived from sources

• Page 34, Line 5other than state sales tax increment revenue;

• Page 34, Line 6(II)  By offsetting against future state sales tax

• Page 34, Line 7increment revenue that the department would otherwise

• Page 34, Line 8disburse to the financing entity; or

• Page 34, Line 9(III)  From other funds that are legally available to the

• Page 34, Line 10financing entity for such purpose.

• Page 34, Line 11(4)  If a financing entity is a county revitalization

• Page 34, Line 12authority, a metropolitan district, an authority formed by

• Page 34, Line 13intergovernmental agreement among two or more metropolitan

• Page 34, Line 14districts, a regional transportation authority, or an urban

• Page 34, Line 15renewal authority, it may comply with this section by submitting

• Page 34, Line 16to the commission a copy of the report that the county

• Page 34, Line 17revitalization authority, metropolitan district, authority

• Page 34, Line 18formed by intergovernmental agreement among two or more

• Page 34, Line 19metropolitan districts, regional transportation authority, or

• Page 34, Line 20urban renewal authority is otherwise required to submit to a

• Page 34, Line 21local government pursuant to law. The financing entity shall

• Page 34, Line 22deliver a copy of the report that the county revitalization

• Page 34, Line 23authority, metropolitan district, authority formed by

• Page 34, Line 24intergovernmental agreement among two or more metropolitan

• Page 34, Line 25districts, regional transportation authority, or urban renewal

• Page 34, Line 26authority is otherwise required to submit to a local government

• Page 34, Line 27pursuant to law at the same time as an annual report or audit

• Page 35, Line 1otherwise required by law.

• Page 35, Line 2(5)  The office of economic development and the

• Page 35, Line 3department shall prepare a report for the office of economic

• Page 35, Line 4development to submit no later than November 1 of the

• Page 35, Line 5applicable fiscal year to the finance committees of the house of

• Page 35, Line 6representatives and senate; the business and economic

• Page 35, Line 7development committee of the house of representatives; and the

• Page 35, Line 8business, labor, and technology committee of the senate; or any

• Page 35, Line 9successor committees. The report shall include information on

• Page 35, Line 10all state sales tax increment revenue collected for transit

• Page 35, Line 11investment during the prior state fiscal year and information

• Page 35, Line 12from the reports required pursuant to subsection (6) of this

• Page 35, Line 13section.

• Page 35, Line 14(6) (a)  Each year, no later than September 1, the

• Page 35, Line 15department shall report to the commission the aggregate

• Page 35, Line 16amount of state sales tax increment revenue allocated to

• Page 35, Line 17financing entities for approved transit investment projects.

• Page 35, Line 18(b)  Every two years, no later than November 1, the office

• Page 35, Line 19of economic development and the department shall report to

• Page 35, Line 20the commission detailed information on each transit investment

• Page 35, Line 21project approved to receive state sales tax increment revenue,

• Page 35, Line 22including:

• Page 35, Line 23(I)  The amount of state sales tax increment revenue

• Page 35, Line 24allocated for the project;

• Page 35, Line 25(II)  The boundaries of the approved transit investment

• Page 35, Line 26area and narrative for the transit investment project;

• Page 35, Line 27(III)  The proposed term of financing and the new net

• Page 36, Line 1revenue that is approved for the transit investment project;

• Page 36, Line 2(IV)  The actual state sales tax increment revenue

• Page 36, Line 3collected within the transit investment area compared to the

• Page 36, Line 4projected revenues contained in the approved application that

• Page 36, Line 5proposed the transit investment area; and

• Page 36, Line 6(V)  An assessment of the overall effectiveness of the

• Page 36, Line 7transit investment project in achieving increased transit

• Page 36, Line 8ridership.

• Page 36, Line 924-46-408.  Commencement of development.

• Page 36, Line 10(1)  Substantial work on a transit investment project,

• Page 36, Line 11including the financing entity's issuance of bonds or other debt

• Page 36, Line 12instruments, the repayment of which is secured by a pledge of

• Page 36, Line 13the state sales tax increment revenue or the commencement of

• Page 36, Line 14actual development or predevelopment, such as erecting

• Page 36, Line 15permanent structures, excavating the ground to lay

• Page 36, Line 16foundations, mass grading of the site, or work of a similar

• Page 36, Line 17description that manifests an intention and purpose to complete

• Page 36, Line 18the project must commence within five years from the date of

• Page 36, Line 19the commission's approval of the project.

• Page 36, Line 20(2)  If substantial work on the transit investment project

• Page 36, Line 21toward the goals specified in the application pursuant to section

• Page 36, Line 2224-46-403 does not commence within five years of the

• Page 36, Line 23commission's approval, the commission may revoke or modify its

• Page 36, Line 24approval of the financing entity or the project. Revocation of

• Page 36, Line 25approval may be appealed to the commission, which may

• Page 36, Line 26reinstate its approval upon a showing of good cause for the

• Page 36, Line 27delay. If substantial work on the project does not commence

• Page 37, Line 1within one year of reinstatement of approval from the

• Page 37, Line 2commission, the commission shall revoke approval of the project.

• Page 37, Line 3(3)  Upon the revocation of the approval of a financing

• Page 37, Line 4entity or the transit investment project:

• Page 37, Line 5(a)  Except as otherwise provided in subsection (3)(b) of

• Page 37, Line 6this section, the commission may require the financing entity to

• Page 37, Line 7refund to the state treasurer any state sales tax increment

• Page 37, Line 8revenue that the project has generated or that the financing

• Page 37, Line 9entity has collected from the time of the original approval for

• Page 37, Line 10the project or financing entity;

• Page 37, Line 11(b)  Any state sales tax increment revenue that the

• Page 37, Line 12transit investment project has generated or that the financing

• Page 37, Line 13entity has collected from the time of the original approval for

• Page 37, Line 14the project or financing entity may remain dedicated to the

• Page 37, Line 15project only to the extent that it has been previously expended

• Page 37, Line 16or pledged by the financing entity for the financing of eligible

• Page 37, Line 17costs; and

• Page 37, Line 18(c)  The state shall not remit further funds to the revoked

• Page 37, Line 19financial entity or transit investment project.

• Page 37, Line 20(4)  In evaluating whether substantial work has been

• Page 37, Line 21commenced for purposes of administering this section, the

• Page 37, Line 22commission shall rely on the information and data supplied in

• Page 37, Line 23the annual reports submitted by the financing entity or

• Page 37, Line 24certified public accountant pursuant to section 24-46-407 and

• Page 37, Line 25any supplemental data deemed necessary by the commission.

• Page 37, Line 26(5)  The commission only has the authority to revoke its

• Page 37, Line 27approval of a financing entity or a transit investment project

• Page 38, Line 1pursuant to this section.

• Page 38, Line 224-46-409.  Issuance of bonds by a financing entity.

• Page 38, Line 3(1)  A financing entity may issue bonds from time to time in

• Page 38, Line 4its discretion to finance any eligible improvements with respect

• Page 38, Line 5to a transit investment project and may also issue refunding or

• Page 38, Line 6other bonds of the financing entity from time to time in its

• Page 38, Line 7discretion for the payment, retirement, renewal, or extension of

• Page 38, Line 8any bonds previously issued by the financing entity under this

• Page 38, Line 9section and to provide for the replacement of lost, destroyed,

• Page 38, Line 10or mutilated bonds previously issued under this section.

• Page 38, Line 11(2) (a)  Bonds issued under this section may be general

• Page 38, Line 12obligation or special revenue bonds of the financing entity, the

• Page 38, Line 13payment of which, as to principal and interest and premiums, if

• Page 38, Line 14any, the full faith, credit, and assets, acquired and to be

• Page 38, Line 15acquired, of the financing entity are irrevocably pledged.

• Page 38, Line 16(b)  Bonds issued under this section may be special

• Page 38, Line 17obligations of the financing entity that, as to principal and

• Page 38, Line 18interest and premiums, if any, are payable solely from and

• Page 38, Line 19secured only by a pledge of any income, proceeds, revenues, or

• Page 38, Line 20funds of the financing entity, including, without limitation,

• Page 38, Line 21state sales tax increment revenue.

• Page 38, Line 22(3)  Notwithstanding any other provision of this section,

• Page 38, Line 23any bonds issued under this section may be additionally secured

• Page 38, Line 24as to the payment of the principal and interest and premiums, if

• Page 38, Line 25any, by a mortgage of any transit investment project, or any

• Page 38, Line 26part thereof, title to which is then or thereafter in the

• Page 38, Line 27financing entity or of any other real or personal property or

• Page 39, Line 1interests therein then owned or thereafter acquired by the

• Page 39, Line 2financing entity.

• Page 39, Line 3(4)  Notwithstanding any other provision of this section,

• Page 39, Line 4general obligation bonds issued under this section may be

• Page 39, Line 5additionally secured as to the payment of the principal and

• Page 39, Line 6interest and premiums, if any, as provided in subsection (2) of this

• Page 39, Line 7section, with or without being also additionally secured as to

• Page 39, Line 8payment of the principal and interest and premiums, if any, by a

• Page 39, Line 9mortgage as provided in subsection (3) of this section or a trust

• Page 39, Line 10agreement as provided in subsection (5) of this section.

• Page 39, Line 11(5)  Notwithstanding any other provision of this section,

• Page 39, Line 12any bonds issued under this section may be additionally secured

• Page 39, Line 13as to the payment of the principal and interest and premiums, if

• Page 39, Line 14any, by a trust agreement or indenture by and between the

• Page 39, Line 15financing entity and a corporate trustee, which may be any

• Page 39, Line 16trust company or bank having the powers of a trust company

• Page 39, Line 17within or without the state.

• Page 39, Line 18(6)  Bonds issued under this section do not constitute an

• Page 39, Line 19indebtedness of the state or of any county, municipality, or

• Page 39, Line 20public body of the state other than the financing entity issuing

• Page 39, Line 21the bonds and are not subject to any other law or of the

• Page 39, Line 22charter of any municipality relating to the authorization,

• Page 39, Line 23issuance, or sale of bonds.

• Page 39, Line 24(7)  Bonds issued under this section shall be authorized by

• Page 39, Line 25a resolution of the financing entity and may be issued in one or

• Page 39, Line 26more series and shall bear such date; be payable upon demand or

• Page 39, Line 27mature at a time determined by the financing entity not to

• Page 40, Line 1exceed thirty years, except as the maturity may be extended in

• Page 40, Line 2accordance with section 24-46-406 (4); bear interest at a rate

• Page 40, Line 3payable or compoundable at intervals determined by the

• Page 40, Line 4financing entity; be in such denomination; be in such form, either

• Page 40, Line 5coupon or registered or otherwise; carry such conversion or

• Page 40, Line 6registration privileges; have such rank or priority; be executed

• Page 40, Line 7in the name of the financing entity in such manner, be payable in

• Page 40, Line 8such medium of payment; be payable at such place; be subject to

• Page 40, Line 9such callability provisions or terms of redemption, with or

• Page 40, Line 10without premiums; be secured in such manner; be of such

• Page 40, Line 11description; contain or be subject to such covenants, provisions,

• Page 40, Line 12terms, conditions, and agreements, including provisions

• Page 40, Line 13concerning events of default; and have other characteristics

• Page 40, Line 14that may be provided by the resolution or by the trust

• Page 40, Line 15agreement, indenture, or mortgage, if any, issued pursuant to

• Page 40, Line 16the resolution. The seal, or a facsimile thereof, of the financing

• Page 40, Line 17entity shall be affixed, imprinted, engraved, or otherwise

• Page 40, Line 18reproduced upon each of its bonds issued under this section.

• Page 40, Line 19Bonds issued under this section shall be executed in the name of

• Page 40, Line 20the financing entity by the manual or facsimile signatures of

• Page 40, Line 21officials that may be designated in said resolution or trust

• Page 40, Line 22agreement, indenture, or mortgage; except that at least one

• Page 40, Line 23signature on each bond shall be a manual signature. Coupons, if

• Page 40, Line 24any, attached to the bonds shall bear the facsimile signature of

• Page 40, Line 25the official of the financing entity that may be designated as

• Page 40, Line 26provided in this subsection (7). Said resolution or trust

• Page 40, Line 27agreement, indenture, or mortgage may provide for the

• Page 41, Line 1authentication of the pertinent bonds by the trustee.

• Page 41, Line 2(8)  Bonds issued under this section may be sold by the

• Page 41, Line 3financing entity in a manner and for a price as the financing

• Page 41, Line 4entity, in its discretion, may determine, at par, below par, or

• Page 41, Line 5above par, at private sale or at public sale after notice is

• Page 41, Line 6published prior to the sale in a newspaper having general

• Page 41, Line 7circulation in the municipality, or in another medium of

• Page 41, Line 8publication as the financing entity may deem appropriate, or may

• Page 41, Line 9be exchanged by the financing entity for other bonds issued by

• Page 41, Line 10it under this section.

• Page 41, Line 11(9)  If any of the officials of the financing entity whose

• Page 41, Line 12signatures or facsimile signatures appear on any of its bonds or

• Page 41, Line 13coupons issued under this section cease to be officials before the

• Page 41, Line 14delivery of the bonds, the signatures or facsimile signatures, as

• Page 41, Line 15the case may be, are nevertheless valid and sufficient for all

• Page 41, Line 16purposes, the same as if the officials had remained in office until

• Page 41, Line 17the delivery.

• Page 41, Line 18(10)  Notwithstanding any other provision of law, any

• Page 41, Line 19bonds that are issued pursuant to this section are fully

• Page 41, Line 20negotiable.

• Page 41, Line 21(11)  In any suit, action, or proceeding involving the

• Page 41, Line 22validity or enforceability of any a bond that is issued under this

• Page 41, Line 23section or the security of such a bond, any bond reciting in

• Page 41, Line 24substance that it has been issued by the financing entity in

• Page 41, Line 25connection with a transit investment project or any activity or

• Page 41, Line 26operation of the financing entity under this part 4 is

• Page 41, Line 27conclusively deemed to have been issued for such purposes; and

• Page 42, Line 1such transit investment project or such operation or activity, as

• Page 42, Line 2the case may be, is conclusively deemed to have been initiated,

• Page 42, Line 3planned, located, undertaken, accomplished, and carried out in

• Page 42, Line 4accordance with this part 4. Any suit, action, or proceeding

• Page 42, Line 5involving the validity or enforceability of any bond that is

• Page 42, Line 6issued under this section or the security of such a bond shall be

• Page 42, Line 7commenced within thirty days of the authorization of the bond

• Page 42, Line 8or bonds by the financing entity.

• Page 42, Line 9(12)  Pending the preparation of any definitive bonds under

• Page 42, Line 10this section, a financing entity may issue its interim certificates

• Page 42, Line 11or receipts or its temporary bonds, with or without coupons,

• Page 42, Line 12exchangeable for definitive bonds when the latter have been

• Page 42, Line 13executed and are available for delivery.

• Page 42, Line 14(13)  A person retained or employed by a financing entity

• Page 42, Line 15as an advisor or a consultant for the purpose of rendering

• Page 42, Line 16financial advice and assistance may purchase or participate in

• Page 42, Line 17the purchase or distribution of its bonds when the bonds are

• Page 42, Line 18offered at public or private sale.

• Page 42, Line 19(14)  No commissioner or other officer of a financing

• Page 42, Line 20entity issuing bonds under this section and no person executing

• Page 42, Line 21the bonds is liable personally on the bonds or is subject to any

• Page 42, Line 22personal liability or accountability by reason of the issuance

• Page 42, Line 23of the bonds.

• Page 42, Line 24(15)  No commissioner or other officer of a transit

• Page 42, Line 25investment authority issuing bonds pursuant to this part 4 and

• Page 42, Line 26no person executing the bonds is liable personally on the bonds

• Page 42, Line 27or subject to any personal liability or accountability by reason

• Page 43, Line 1of the issuance of the bonds.

• Page 43, Line 2(16)  Bonds that are issued pursuant to this part 4 are

• Page 43, Line 3declared to be issued for an essential public and governmental

• Page 43, Line 4purpose and, together with interest thereon and income

• Page 43, Line 5therefrom, are exempt from all state of Colorado taxes.

• Page 43, Line 6SECTION 3.  In Colorado Revised Statutes, add 24-35-123 as

• Page 43, Line 7follows:

• Page 43, Line 824-35-123.  Transit investment area - authority of department

• Page 43, Line 9- definitions.

• Page 43, Line 10(1)  In addition to the other functions and powers of the

• Page 43, Line 11department and the executive director pursuant to this part 1,

• Page 43, Line 12the department shall:

• Page 43, Line 13(a)  Establish and determine the base year revenue for

• Page 43, Line 14each transit investment area;

• Page 43, Line 15(b)  Collect, account for, and remit to the applicable

• Page 43, Line 16financing entity the relevant amount of state sales tax

• Page 43, Line 17increment revenue generated within each transit investment

• Page 43, Line 18area;

• Page 43, Line 19(c)  Share data as necessary with the Colorado office of

• Page 43, Line 20economic development in connection with the "Transit

• Page 43, Line 21Investment Area Act", part 4 of article 46 of this title 24; and

• Page 43, Line 22(d)  Otherwise perform the functions required of the

• Page 43, Line 23department in the written notice provided to the executive

• Page 43, Line 24director in connection with the establishment of a financing

• Page 43, Line 25entity or transit investment area.

• Page 43, Line 26(2)  The executive director has the authority to:

• Page 43, Line 27(a)  Create forms and adopt rules as necessary or

• Page 44, Line 1convenient to implement the department's responsibilities with

• Page 44, Line 2respect to the determination of base year revenue, collection

• Page 44, Line 3and disbursement of state sales tax increment revenue, and

• Page 44, Line 4other functions of the department pursuant to part 4 of article

• Page 44, Line 546 of this title 24; and

• Page 44, Line 6(b)  Enter into contracts with financing entities, in the

• Page 44, Line 7manner provided for in section 24-35-110, regarding the

• Page 44, Line 8performance of the department's functions in implementing part

• Page 44, Line 94 of article 46 of this title 24.

• Page 44, Line 10(3)  All state sales tax increment revenue collected by

• Page 44, Line 11the department on behalf of a financing entity is for all

• Page 44, Line 12purposes assigned to, the property of, and the revenue of the

• Page 44, Line 13applicable financing entity and is not to be construed or treated

• Page 44, Line 14for any purpose as revenue or property of the state.

• Page 44, Line 15(4)  In collecting and disbursing state sales tax increment

• Page 44, Line 16revenue as provided in this section and otherwise performing its

• Page 44, Line 17responsibilities pursuant to part 4 of article 46 of this title 24,

• Page 44, Line 18the department shall act solely as a collecting agent for a

• Page 44, Line 19financing entity and shall segregate in a separate fund any

• Page 44, Line 20portion of state sales tax increment revenue that is dedicated

• Page 44, Line 21to the financing entity but will not be remitted to the financing

• Page 44, Line 22entity in the immediate future.

• Page 44, Line 23(5)  As used in this section, unless the context otherwise

• Page 44, Line 24requires:

• Page 44, Line 25(a)  "Base year revenue" has the meaning set forth in

• Page 44, Line 26section 24-46-402 (2).

• Page 44, Line 27(b)  "Department" means the department of revenue

• Page 45, Line 1created in section 24-35-101.

• Page 45, Line 2(c)  "Executive director" means the executive director of

• Page 45, Line 3the department.

• Page 45, Line 4(d)  "Financing entity" has the meaning set forth in section

• Page 45, Line 524-46-402 (10).

• Page 45, Line 6(e)  "State sales tax increment revenue" has the meaning

• Page 45, Line 7set forth in section 24-46-402 (16).

• Page 45, Line 8(f)  "Transit investment area" has the meaning set forth in

• Page 45, Line 9section 24-46-402 (19).

• Page 45, Line 10SECTION 4.  In Colorado Revised Statutes, add 24-48.5-136 as

• Page 45, Line 11follows:

• Page 45, Line 1224-48.5-136.  Transit and housing investment zones map -

• Page 45, Line 13transit and housing investment zone criteria - definitions.

• Page 45, Line 14(1)  On or before October 30, 2026, the Colorado office of

• Page 45, Line 15economic development, in consultation with the department of

• Page 45, Line 16local affairs and the department of transportation, shall

• Page 45, Line 17publish a transit and housing investment zone map based on the

• Page 45, Line 18criteria for identifying transit and housing investment zones

• Page 45, Line 19established in subsection (2) of this section.

• Page 45, Line 20(2)  The department shall designate transit and housing

• Page 45, Line 21investment zones, for purposes of subsection (1) of this section,

• Page 45, Line 22and shall do so based on the location of transportation

• Page 45, Line 23facilities as identified in a published transit plan and may, in

• Page 45, Line 24consultation with local governments and transit agencies, use

• Page 45, Line 25preexisting routes, maps, and schedules to inform the

• Page 45, Line 26department's designation of transit and housing investment

• Page 45, Line 27zones.

• Page 46, Line 1(3)  As used in this section, unless the context otherwise

• Page 46, Line 2requires:

• Page 46, Line 3(a)  "Passenger rail station" has the meaning set forth in

• Page 46, Line 4section 32-22-102 (8).

• Page 46, Line 5(b)  "Transit and housing investment zone" means the area

• Page 46, Line 6within one and one-half miles of a transportation facility as

• Page 46, Line 7identified by the department in the transit and housing

• Page 46, Line 8investment zones map created pursuant to subsection (1) of this

• Page 46, Line 9section.

• Page 46, Line 10(c)  "Transit station" has the meaning set forth in section

• Page 46, Line 1124-46-402 (22).

• Page 46, Line 12(d)  "Transportation facility" means a transit station or

• Page 46, Line 13passenger rail station.

• Page 46, Line 14SECTION 5.  In Colorado Revised Statutes, 29-1-102, amend

• Page 46, Line 15(13) as follows:

• Page 46, Line 1629-1-102.  Definitions.

• Page 46, Line 17As used in this part 1, unless the context otherwise requires:

• Page 46, Line 18(13) "Local government" means any authority, county,

• Page 46, Line 19municipality, city and county, district, or other political subdivision of the

• Page 46, Line 20state of Colorado; any institution, department, agency, or authority of any

• Page 46, Line 21of the foregoing; and any other entity, organization, or corporation

• Page 46, Line 22formed by intergovernmental agreement or other contract between or

• Page 46, Line 23among any of the foregoing. The office of the county public trustee shall

• Page 46, Line 24be deemed an agency of the county for the purposes of this part 1. "Local

• Page 46, Line 25government" does not include the Colorado educational and cultural

• Page 46, Line 26facilities authority, the university of Colorado hospital authority,

• Page 46, Line 27collegeinvest, the Colorado health facilities authority, the Colorado

• Page 47, Line 1housing and finance authority, the Colorado agricultural development

• Page 47, Line 2authority, the Colorado sheep and wool authority, the Colorado beef

• Page 47, Line 3council authority, the Colorado horse development authority, the building

• Page 47, Line 4urgent infrastructure and leveraging dollars authority, the middle-income

• Page 47, Line 5housing authority, the fire and police pension association, a transit

• Page 47, Line 6investment authority, any public entity insurance or investment pool

• Page 47, Line 7formed pursuant to state law, any county or municipal housing authority,

• Page 47, Line 8any association of political subdivisions formed pursuant to section

• Page 47, Line 929-1-401, or any home rule city or town, home rule city and county, cities

• Page 47, Line 10and towns operating under a territorial charter, school district, or local

• Page 47, Line 11college district.

• Page 47, Line 12SECTION 6.  In Colorado Revised Statutes, add 30-31-116.5 as

• Page 47, Line 13follows:

• Page 47, Line 1430-31-116.5.  Transit investment areas - definition.

• Page 47, Line 15(1)  A county revitalization authority that is designated

• Page 47, Line 16as a financing entity, pursuant to part 4 of article 46 of title 24,

• Page 47, Line 17has all the powers necessary or convenient to carry out part 4

• Page 47, Line 18of article 46 of title 24, including the power to receive state

• Page 47, Line 19sales tax increment revenue generated within an approved

• Page 47, Line 20transit investment area, as defined in section 24-46-402 (19), and

• Page 47, Line 21to disburse and otherwise use the revenue for all lawful

• Page 47, Line 22purposes, including financing eligible costs and the design,

• Page 47, Line 23construction, maintenance, and operation of eligible

• Page 47, Line 24improvements, as such terms are defined in section 24-46-402 or

• Page 47, Line 25otherwise incorporated into the Colorado economic

• Page 47, Line 26development commission's conditions of approval.

• Page 47, Line 27(2)  Notwithstanding section 30-31-109 (8), authorization

• Page 48, Line 1to receive state sales tax increment revenue, pursuant to part

• Page 48, Line 24 of article 46 of title 24, is not a substantial modification to

• Page 48, Line 3the plan, and corresponding changes to the plan may be made by

• Page 48, Line 4the governing body of the authority to incorporate the use of

• Page 48, Line 5state sales tax increment revenue without the requirement of

• Page 48, Line 6submission to or approval by the governing body of the county

• Page 48, Line 7that has established the authority.

• Page 48, Line 8(3)  A county revitalization authority that receives state

• Page 48, Line 9sales tax increment revenue, whether pursuant to designation

• Page 48, Line 10as a financing entity pursuant to part 4 of article 46 of title 24,

• Page 48, Line 11or pursuant to a contract entered into with any such financing

• Page 48, Line 12entity, shall not use the state sales tax increment revenue to

• Page 48, Line 13acquire property through the exercise of eminent domain.

• Page 48, Line 14(4)  Nothing in this section obviates or overrides the

• Page 48, Line 15requirements for the authorization of a new county

• Page 48, Line 16revitalization authority pursuant to this article 31.

• Page 48, Line 17(5)  As used in this section, unless the context otherwise

• Page 48, Line 18requires, "state sales tax increment revenue" has the meaning

• Page 48, Line 19set forth in section 24-46-402 (16).

• Page 48, Line 20SECTION 7.  In Colorado Revised Statutes, add 31-25-117 as

• Page 48, Line 21follows:

• Page 48, Line 2231-25-117.  Transit investment areas - definition.

• Page 48, Line 23(1)  An urban renewal authority that is designated as a

• Page 48, Line 24financing entity pursuant to part 4 of article 46 of title 24 has

• Page 48, Line 25all of the powers necessary or convenient to carry out part 4 of

• Page 48, Line 26article 46 of title 24, including the powers to receive state sales

• Page 48, Line 27tax increment revenue generated within an approved transit

• Page 49, Line 1investment area, as defined in section 24-46-402 (19), and disburse

• Page 49, Line 2and otherwise use such revenue for all lawful purposes,

• Page 49, Line 3including financing of eligible costs and the design,

• Page 49, Line 4construction, maintenance, and operation of eligible

• Page 49, Line 5improvements, as such terms are defined in section 24-46-402, or

• Page 49, Line 6otherwise incorporated into the Colorado economic

• Page 49, Line 7development commission's conditions of approval.

• Page 49, Line 8(2)  Notwithstanding section 31-25-107 (7), authorization

• Page 49, Line 9to receive state sales tax increment revenue, pursuant to part

• Page 49, Line 104 of article 46 of title 24, is not a substantial modification to

• Page 49, Line 11the plan and corresponding changes to the plan may be made by

• Page 49, Line 12the governing body of the authority to incorporate the use of

• Page 49, Line 13state sales tax increment revenue without the requirement of

• Page 49, Line 14submission to or approval by the governing body of a

• Page 49, Line 15municipality that has established the authority pursuant to

• Page 49, Line 16section 31-25-104 (1).

• Page 49, Line 17(3)  An urban renewal authority that receives state sales

• Page 49, Line 18tax increment revenue, whether pursuant to designation as a

• Page 49, Line 19financing entity pursuant to part 4 of article 46 of title 24, or

• Page 49, Line 20pursuant to a contract entered into with any such financing

• Page 49, Line 21entity, shall not use the state sales tax increment revenue to

• Page 49, Line 22acquire property through the exercise of eminent domain.

• Page 49, Line 23(4)  Nothing in this section obviates or overrides the

• Page 49, Line 24requirements for the authorization of a new urban renewal

• Page 49, Line 25authority under this part 1.

• Page 49, Line 26(5)  As used in this section, unless the context otherwise

• Page 49, Line 27requires, "state sales tax increment revenue" has the meaning

• Page 50, Line 1set forth in section 24-46-402 (16).

• Page 50, Line 2SECTION 8.  In Colorado Revised Statutes, add 32-1-1010 as

• Page 50, Line 3follows:

• Page 50, Line 432-1-1010.  Transit investment areas - definition.

• Page 50, Line 5(1)  In addition to the powers specified in this part 10, and

• Page 50, Line 6notwithstanding any limitation on the powers of a metropolitan

• Page 50, Line 7district otherwise specified in this part 10 or in the metropolitan

• Page 50, Line 8district's service plan, any metropolitan district designated as

• Page 50, Line 9an approved financing entity, pursuant to part 4 of article 46 of

• Page 50, Line 10title 24, has all the powers necessary or convenient to carry

• Page 50, Line 11out part 4 of article 46 of title 24, including the power to

• Page 50, Line 12receive state sales tax increment revenue and to disburse and

• Page 50, Line 13otherwise use such revenue for all lawful purposes pursuant to

• Page 50, Line 14part 4 of article 4 of title 24. Lawful purposes include the

• Page 50, Line 15financing of eligible costs and the design, construction,

• Page 50, Line 16maintenance, and operation of eligible improvements as defined

• Page 50, Line 17in section 24-46-402 (9) or otherwise incorporated into the

• Page 50, Line 18Colorado economic development commission's conditions of

• Page 50, Line 19approval pursuant to part 4 of article 46 of title 24.

• Page 50, Line 20(2)  Notwithstanding any provision of section 32-1-207 or

• Page 50, Line 21of the metropolitan district's service plan, authorization to

• Page 50, Line 22receive state sales tax increment revenue, pursuant to part 4 of

• Page 50, Line 23article 46 of title 24, is not considered a substantial

• Page 50, Line 24modification to the plan and corresponding changes to the plan

• Page 50, Line 25may be made by the governing body to incorporate the use of

• Page 50, Line 26state sales tax increment revenue of the metropolitan district

• Page 50, Line 27without the requirement of petition to or approval by the board

• Page 51, Line 1of county commissioners or the governing body of the

• Page 51, Line 2municipality, as applicable.

• Page 51, Line 3(3)  A metropolitan district receiving state sales tax

• Page 51, Line 4increment revenue, whether pursuant to designation as a

• Page 51, Line 5financing entity pursuant to part 4 of article 46 of title 24, or

• Page 51, Line 6pursuant to a contract entered into with any such entity, shall

• Page 51, Line 7not use the state sales tax increment revenue to acquire

• Page 51, Line 8property through the exercise of eminent domain.

• Page 51, Line 9(4)  As used in this section, unless the context otherwise

• Page 51, Line 10requires, "state sales tax increment revenue" has the meaning

• Page 51, Line 11set forth in section 24-46-402 (16).

• Page 51, Line 12SECTION 9.  In Colorado Revised Statutes, 39-21-113, add (40)

• Page 51, Line 13as follows:

• Page 51, Line 1439-21-113.  Reports and returns - rule - repeal.

• Page 51, Line 15(40) (a)  Notwithstanding the confidentiality requirements

• Page 51, Line 16in this section:

• Page 51, Line 17(I)  The executive director may provide the Colorado

• Page 51, Line 18office of economic development with any information obtained

• Page 51, Line 19pursuant to this section in relation to part 4 of article 46 of

• Page 51, Line 20title 24 and, in connection with providing the information, may

• Page 51, Line 21enter into an agreement with the Colorado office of economic

• Page 51, Line 22development that provides for the payment of the costs

• Page 51, Line 23incurred in connection with supplying the information and

• Page 51, Line 24providing for the periodic updating of the information supplied;

• Page 51, Line 25and

• Page 51, Line 26(II)  Both the executive director and the Colorado office

• Page 51, Line 27of economic development may provide information obtained

• Page 52, Line 1pursuant to this section in relation to part 4 of article 46 of

• Page 52, Line 2title 24 to a third-party analyst.

• Page 52, Line 3(b)  Any information provided to the Colorado office of

• Page 52, Line 4economic development or a third-party administrator pursuant

• Page 52, Line 5to this subsection (40) is confidential, and all employees of the

• Page 52, Line 6Colorado office of economic development and the third-party

• Page 52, Line 7analyst are subject to the limitations set forth in subsection (4)

• Page 52, Line 8of this section and the penalties specified in subsection (6) of this

• Page 52, Line 9section.

• Page 52, Line 10SECTION 10.  In Colorado Revised Statutes, add part 57 to

• Page 52, Line 11article 22 of title 39 as follows:

• Page 52, Line 12PART 57

• Page 52, Line 13COLORADO AFFORDABLE HOUSING IN

• Page 52, Line 14TRANSIT AND HOUSING INVESTMENT ZONES

• Page 52, Line 15TAX CREDIT

• Page 52, Line 1639-22-5701.  Tax preference performance statement - report.

• Page 52, Line 17(1)  In accordance with section 39-21-304 (1), which

• Page 52, Line 18requires each bill that creates a new tax expenditure to include

• Page 52, Line 19a tax preference performance statement as part of a statutory

• Page 52, Line 20legislative declaration, the general assembly finds and

• Page 52, Line 21declares that the purpose of the tax credit provided in this

• Page 52, Line 22section is to induce certain designated behavior by taxpayers by

• Page 52, Line 23supporting the development of affordable housing within

• Page 52, Line 24transit and housing investment zones.

• Page 52, Line 25(2)  The general assembly and the state auditor shall

• Page 52, Line 26measure the effectiveness of the credit in achieving the purpose

• Page 52, Line 27specified in subsection (1) of this section based on the report

• Page 53, Line 1described in subsection (3) of this section.

• Page 53, Line 2(3)  For each allocation year, the authority shall, by

• Page 53, Line 3December 31 of that year, provide a written report to the

• Page 53, Line 4general assembly and make the report available to the public.

• Page 53, Line 5With respect to tax credits allocated pursuant to this part 57,

• Page 53, Line 6the report must:

• Page 53, Line 7(a)  Specify the total number of qualified developments

• Page 53, Line 8and units supported by each development in connection with the

• Page 53, Line 9credit;

• Page 53, Line 10(b)  Describe each qualified development in connection

• Page 53, Line 11with which the authority issued credits, including in that

• Page 53, Line 12description the geographic location of the development, the

• Page 53, Line 13household type and any specific demographic information

• Page 53, Line 14available about residents intended to be served by the

• Page 53, Line 15development, the income levels intended to be served by the

• Page 53, Line 16development, and the rents or set-asides authorized for each

• Page 53, Line 17development; and

• Page 53, Line 18(c)  Provide housing market and demographic information

• Page 53, Line 19that demonstrates how the qualified developments supported by

• Page 53, Line 20credits are addressing the need for affordable housing within

• Page 53, Line 21the communities they are intended to serve as well as

• Page 53, Line 22information about any remaining disparities in the affordability

• Page 53, Line 23of housing within those communities.

• Page 53, Line 2439-22-5702.  Definitions.

• Page 53, Line 25As used in this part 57, unless the context otherwise

• Page 53, Line 26requires:

• Page 53, Line 27(1)  "Allocation certificate" means a statement issued by

• Page 54, Line 1the authority certifying that a given development qualifies for

• Page 54, Line 2the credit and specifying the amount of the credit allowed.

• Page 54, Line 3(2)  "Allocation plan" means an allocation plan adopted

• Page 54, Line 4by the authority that governs the selection criteria and

• Page 54, Line 5preferences for allocating the tax credit allowed pursuant to

• Page 54, Line 6this part 57.

• Page 54, Line 7(3)  "Authority" means the Colorado housing and finance

• Page 54, Line 8authority created in section 29-4-704.

• Page 54, Line 9(4)  "Compliance period" means the period of fifteen years

• Page 54, Line 10beginning with the first taxable year of a credit period.

• Page 54, Line 11(5)  "Credit" means the Colorado affordable housing in

• Page 54, Line 12transit and housing investment zones tax credit allowed

• Page 54, Line 13pursuant to this part 57.

• Page 54, Line 14(6)  "Credit period" means the period of six income tax

• Page 54, Line 15years beginning with the income tax year in which a qualified

• Page 54, Line 16development is placed in service. If a qualified development is

• Page 54, Line 17comprised of more than one building, the development is deemed

• Page 54, Line 18to be placed in service in the income tax year during which the

• Page 54, Line 19last building of the qualified development is placed in service.

• Page 54, Line 20(7)  "Department" means the department of revenue.

• Page 54, Line 21(8)  "Federal tax credit" means the federal low-income

• Page 54, Line 22housing tax credit provided by section 42 of the internal

• Page 54, Line 23revenue code.

• Page 54, Line 24(9)  "Qualified basis" means the qualified basis of the

• Page 54, Line 25development as determined pursuant to section 42 of the

• Page 54, Line 26internal revenue code.

• Page 54, Line 27(10)  "Qualified development" means a housing

• Page 55, Line 1development that is located in a transit and housing investment

• Page 55, Line 2zone within the state and is determined by the authority to meet

• Page 55, Line 3the criteria established in the allocation plan, including

• Page 55, Line 4providing the required number of affordable housing units.

• Page 55, Line 5(11)  "Qualified taxpayer" means an individual, a person, a

• Page 55, Line 6firm, a corporation, or any other entity that owns an interest,

• Page 55, Line 7direct or indirect, in a qualified development and is subject to

• Page 55, Line 8the taxes imposed by this article 22.

• Page 55, Line 9(12)  "Transit and housing investment zone" means the area

• Page 55, Line 10designated by the Colorado office of economic development in

• Page 55, Line 11the transit and housing investment zone map pursuant to section

• Page 55, Line 1224-48.5-136.

• Page 55, Line 1339-22-5703.  Credit against tax - affordable housing located in

• Page 55, Line 14a transit and housing investment zone.

• Page 55, Line 15(1)  For income tax years during the credit period, there is

• Page 55, Line 16allowed to any qualified taxpayer a credit with respect to the

• Page 55, Line 17income taxes imposed by this article 22 in the amount determined

• Page 55, Line 18by the authority pursuant to this part 57.

• Page 55, Line 19(2) (a)  During each calendar year of the period beginning

• Page 55, Line 20on January 1, 2027, and ending on December 31, 2033, the

• Page 55, Line 21authority may allocate a credit, the full amount of which may

• Page 55, Line 22be claimed against the taxes imposed by this article 22, for each

• Page 55, Line 23taxable year of the six-year credit period. During each

• Page 55, Line 24calendar year of the period beginning on January 1, 2027, and

• Page 55, Line 25ending on December 31, 2033, the aggregate amount of the

• Page 55, Line 26credits allocated by the authority shall not exceed eight

• Page 55, Line 27million three hundred thirty-three thousand three hundred

• Page 56, Line 1thirty-three dollars.

• Page 56, Line 2(b)  The authority may also allocate no more than half of

• Page 56, Line 3any unallocated credits from the immediately preceding

• Page 56, Line 4calendar year, and these unallocated credits are not included

• Page 56, Line 5in the annual dollar limits specified in subsection (2)(a) of this

• Page 56, Line 6section.

• Page 56, Line 7(c)  The aggregate amount of credits allocated by the

• Page 56, Line 8authority in each of the 2027 through 2033 calendar years must

• Page 56, Line 9not exceed the aggregate amount of any credit recaptured or

• Page 56, Line 10otherwise returned to the authority in the calendar year.

• Page 56, Line 11(3)  The authority may allocate credits to an owner of a

• Page 56, Line 12qualified development by issuing to the owner an allocation

• Page 56, Line 13certificate. The authority may determine the time at which the

• Page 56, Line 14allocation certificate is issued. The credit must be in an amount

• Page 56, Line 15determined by the authority, subject to the following

• Page 56, Line 16guidelines:

• Page 56, Line 17(a)  The credit must be necessary for the financial

• Page 56, Line 18feasibility of the development; and

• Page 56, Line 19(b)  The aggregate sum of credits allocated annually

• Page 56, Line 20must not exceed the limits set forth in subsection (2) of this

• Page 56, Line 21section.

• Page 56, Line 22(4)  If an owner of a qualified development receiving an

• Page 56, Line 23allocation of a credit is a partnership, limited liability company,

• Page 56, Line 24S corporation, or similar pass-through entity, the owner may

• Page 56, Line 25allocate the credit among its partners, shareholders, members,

• Page 56, Line 26or other qualified taxpayers in any manner agreed to by such

• Page 56, Line 27persons regardless of whether any such persons are deemed a

• Page 57, Line 1partner for federal income tax purposes. The owner shall

• Page 57, Line 2certify to the department the amount of credit allocated to

• Page 57, Line 3each partner, shareholder, member, or other qualified taxpayer.

• Page 57, Line 4Each partner, shareholder, member, or other qualified taxpayer

• Page 57, Line 5admitted as a partner, shareholder, member, or other qualified

• Page 57, Line 6taxpayer of the owner prior to the filing of a tax return

• Page 57, Line 7claiming the credit is allowed to claim such amount subject to

• Page 57, Line 8any restrictions set forth in this part 57.

• Page 57, Line 9(5) (a)  The authority may allocate credits to a

• Page 57, Line 10governmental or quasi-governmental entity, including the

• Page 57, Line 11middle-income housing authority created in section 29-4-1104,

• Page 57, Line 12with respect to a qualified development that is owned by such

• Page 57, Line 13entity.

• Page 57, Line 14(b) (I)  A governmental or quasi-governmental entity may

• Page 57, Line 15transfer credits that the authority has allocated to it

• Page 57, Line 16pursuant to this subsection (5) to an individual, person, firm,

• Page 57, Line 17corporation, or other entity subject to the taxes imposed by this

• Page 57, Line 18article 22.

• Page 57, Line 19(II)  A governmental or quasi-governmental entity that

• Page 57, Line 20transfers a credit pursuant to subsection (5)(b)(I) of this section

• Page 57, Line 21shall invest in the relevant qualified development any

• Page 57, Line 22compensation received in connection with the transfer made

• Page 57, Line 23pursuant to subsection (5)(b)(I) of this section and shall notify

• Page 57, Line 24the department of the identity of the transferee.

• Page 57, Line 25(III)  A transferee to which a credit is transferred by a

• Page 57, Line 26governmental or quasi-governmental entity pursuant to this

• Page 57, Line 27subsection (5)(b) is entitled to claim the credit in the same

• Page 58, Line 1manner and subject to the same conditions and allocation

• Page 58, Line 2rights as an owner of a qualified development to which the

• Page 58, Line 3authority has allocated a credit pursuant to subsection (3) of

• Page 58, Line 4this section.

• Page 58, Line 5(c) (I)  Credits that the authority has allocated to a

• Page 58, Line 6governmental or quasi-governmental entity pursuant to

• Page 58, Line 7subsection (5)(a) of this section or a credit that a governmental

• Page 58, Line 8or quasi-governmental entity transfers pursuant to subsection

• Page 58, Line 9(5)(b) of this section are subject to recapture pursuant to

• Page 58, Line 10section 39-22-5704.

• Page 58, Line 11(II)  If a credit transferred by a governmental or

• Page 58, Line 12quasi-governmental entity is recaptured pursuant to section

• Page 58, Line 1339-22-5704, the transferee must increase the transferee's state

• Page 58, Line 14income tax liability pursuant to section 39-22-5704 in the manner

• Page 58, Line 15and to the same extent as a partner, shareholder, member, or

• Page 58, Line 16other qualified taxpayer allocated a credit pursuant to section

• Page 58, Line 1739-22-5703 (4).

• Page 58, Line 18(6)  No credit shall be allocated pursuant to this part 57

• Page 58, Line 19unless the qualified development is the subject of a recorded

• Page 58, Line 20deed restriction requiring the development to be maintained and

• Page 58, Line 21operated as a qualified development, and is in accordance with

• Page 58, Line 22the accessibility and adaptability requirements of the federal

• Page 58, Line 23tax credits and title VIII of the "Civil Rights Act of 1968", as

• Page 58, Line 24amended by the "Fair Housing Amendments Act of 1988", 42 U.S.C.

• Page 58, Line 25sec. 3601 et seq., for a period of fifteen income tax years, or a

• Page 58, Line 26longer period as may be agreed to between the authority and

• Page 58, Line 27the owner, beginning with the first taxable year of the credit

• Page 59, Line 1period unless corrected within the time that is applicable to

• Page 59, Line 2developments receiving federal tax credits pursuant to section

• Page 59, Line 342(h)(6)(J) of the internal revenue code as applicable to the

• Page 59, Line 4covenant described in this subsection (6).

• Page 59, Line 5(7)  The allocated credit amount may be taken against the

• Page 59, Line 6taxes imposed by this article 22 for each income tax year of the

• Page 59, Line 7credit period as set forth in subsection (2) of this section. Any

• Page 59, Line 8amount of credit that exceeds the tax due for an income tax

• Page 59, Line 9year may be carried forward as a tax credit against the income

• Page 59, Line 10tax liability for the three subsequent tax years and must be

• Page 59, Line 11applied first to the earliest years possible. Any amount of the

• Page 59, Line 12credit that is not used must not be refunded to the taxpayer.

• Page 59, Line 13(8)  Unless otherwise provided in this part 57 or the

• Page 59, Line 14context clearly requires otherwise, the authority shall

• Page 59, Line 15determine eligibility for a credit and allocate credits in

• Page 59, Line 16accordance with the standards and requirements set forth in

• Page 59, Line 17the allocation plan; however, the authority shall administer

• Page 59, Line 18the credit allowed pursuant to this part 57 consistently with

• Page 59, Line 19the credit pursuant to part 21 of this article 22 except to the

• Page 59, Line 20extent the allocation plan is inconsistent with part 21 of this

• Page 59, Line 21article 22, in which case the allocation plan controls.

• Page 59, Line 22Notwithstanding the foregoing, any combination of federal and

• Page 59, Line 23state credits, or standalone amount of state credits, allowed

• Page 59, Line 24must be the least amount necessary to ensure the financial

• Page 59, Line 25feasibility of a qualified development.

• Page 59, Line 2639-22-5704.  Recapture.

• Page 59, Line 27(1)  As of the last day of any taxable year during the

• Page 60, Line 1compliance period, if the amount of the qualified basis of a

• Page 60, Line 2qualified development with respect to a taxpayer is less than

• Page 60, Line 3the amount of the qualified basis as of the last day of the prior

• Page 60, Line 4taxable year, then the amount of the taxpayer's state income

• Page 60, Line 5tax liability for that taxable year must be increased by the

• Page 60, Line 6credit recapture amount.

• Page 60, Line 7(2)  For purposes of subsection (1) of this section, the

• Page 60, Line 8credit recapture amount is an amount equal to the aggregate

• Page 60, Line 9decrease in the credit allowed to the taxpayer pursuant to this

• Page 60, Line 10part 57 for all prior taxable years that would have resulted if

• Page 60, Line 11the accelerated portion of the credit allowable by reason of

• Page 60, Line 12this part 57 was not allowed for all prior taxable years with

• Page 60, Line 13respect to the reduced amount of qualified basis described in

• Page 60, Line 14subsection (1) of this section.

• Page 60, Line 15(3)  For purposes of subsection (2) of this section, the

• Page 60, Line 16accelerated portion of the credit for the prior taxable years

• Page 60, Line 17with respect to any amount of qualified basis is the difference

• Page 60, Line 18between:

• Page 60, Line 19(a)  The aggregate amount of the credit allowed pursuant

• Page 60, Line 20to this part 57, notwithstanding this subsection (3), for the years

• Page 60, Line 21with respect to the qualified basis; and

• Page 60, Line 22(b)  The aggregate amount of the credit that would be

• Page 60, Line 23allowed pursuant to this part 57 for the years with respect to

• Page 60, Line 24the qualified basis if the aggregate credit that would have been

• Page 60, Line 25allowable, but for this subsection (3), for the entire compliance

• Page 60, Line 26period were allowable ratably over fifteen years.

• Page 60, Line 27(4)  In the event that recapture of any credit is required

• Page 61, Line 1in any tax year, the return submitted for that tax year to the

• Page 61, Line 2department shall include the proportion of credit required to

• Page 61, Line 3be recaptured, the identity of each taxpayer subject to the

• Page 61, Line 4recapture, and the amount of credit previously allocated to the

• Page 61, Line 5taxpayer.

• Page 61, Line 6(5)  Notwithstanding subsection (1) of this section, credits

• Page 61, Line 7issued pursuant to this part 57 must not be recaptured if a

• Page 61, Line 8qualified development, after the initial award of credits, ceases

• Page 61, Line 9being located in a transit and housing investment zone.

• Page 61, Line 1039-22-5705.  Filing requirements.

• Page 61, Line 11An owner of a qualified development to which a credit has

• Page 61, Line 12been allocated and each qualified taxpayer to which the owner

• Page 61, Line 13has allocated a portion of said credit, if any, shall file with

• Page 61, Line 14their state income tax return a copy of the allocation

• Page 61, Line 15certificate issued by the authority with respect to the

• Page 61, Line 16development and a copy of the owner's certification to the

• Page 61, Line 17department as to the allocation of the credit among the

• Page 61, Line 18qualified taxpayers having ownership interests in the

• Page 61, Line 19development.

• Page 61, Line 2039-22-5706.  Parallel credits - insurance premium taxes -

• Page 61, Line 21definition.

• Page 61, Line 22(1)  Any taxpayer who is subject to the tax on insurance

• Page 61, Line 23premiums established by sections 10-3-209, 10-5-111, and 10-6-128

• Page 61, Line 24and therefore exempt from the payment of income tax and who

• Page 61, Line 25is otherwise eligible to claim a credit pursuant to this part 57

• Page 61, Line 26may claim the credit and carry the credit forward against the

• Page 61, Line 27insurance premium tax on its calendar quarter estimated tax

• Page 62, Line 1payments made in accordance with section 10-3-209 to the same

• Page 62, Line 2extent as the taxpayer would have been able to claim or carry

• Page 62, Line 3forward the credit or refund against income tax. All other

• Page 62, Line 4provisions of this part 57 with respect to the credit, including

• Page 62, Line 5the amount, allocation, and recapture of the credit and the

• Page 62, Line 6years for which the credit may be claimed, apply to a credit

• Page 62, Line 7claimed pursuant to this section.

• Page 62, Line 8(2)  For purposes of administering this section, any

• Page 62, Line 9reference in this article 22 to "income tax year" means calendar

• Page 62, Line 10year.

• Page 62, Line 1139-22-5707.  Compliance monitoring.

• Page 62, Line 12The authority, in consultation with the department, shall

• Page 62, Line 13monitor and oversee compliance with this part 57 and shall

• Page 62, Line 14report specific occurrences of noncompliance to the

• Page 62, Line 15department.

• Page 62, Line 1639-22-5708.  Repeal.

• Page 62, Line 17This part 57 is repealed, effective December 31, 2063.

• Page 62, Line 18SECTION 11.  In Colorado Revised Statutes, 39-26-901, amend

• Page 62, Line 19(4)(b) and (4)(c); and add (4)(d) as follows:

• Page 62, Line 2039-26-901.  Temporary adjustment of rates of state sales and

• Page 62, Line 21use taxes - refund of excess state revenues - legislative declaration -

• Page 62, Line 22definition - repeal.

• Page 62, Line 23(4)  Any temporary state sales and use tax rate reduction pursuant

• Page 62, Line 24to subsection (1) of this section does not affect the calculation of the

• Page 62, Line 25amount of:

• Page 62, Line 26(b)  The state sales tax increment revenue for regional tourism

• Page 62, Line 27zones in accordance with part 3 of article 46 of title 24; or

• Page 63, Line 1(c)  The aviation fund created in section 43-10-109; or

• Page 63, Line 2(d)  The state sales tax increment revenue for transit and

• Page 63, Line 3housing investment areas in accordance with part 4 of article 46

• Page 63, Line 4of title 24.

• Page 63, Line 5SECTION 12.  Safety clause. The general assembly finds,

• Page 63, Line 6determines, and declares that this act is necessary for the immediate

• Page 63, Line 7preservation of the public peace, health, or safety or for appropriations for

• Page 63, Line 8the support and maintenance of the departments of the state and state

• Page 63, Line 9institutions.