A Bill for an Act
Page 1, Line 101Concerning the creation of the future of severance taxes
Page 1, Line 102and water funding task force.
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/.)
Water Resources and Agriculture Review Committee. The bill creates the future of severance taxes and water funding task force (task force).
The department of natural resources is required to contract with a third party to conduct a study on severance taxes and water funding and develop recommendations for ways to continue funding water needs in the face of decreasing severance tax revenue (study). The purpose of the task force is to work with the third party to conduct the study and develop recommendations.
No later than January 15, 2026, the third party must submit a draft report, detailing the results of the study and any recommendations, to the department of natural resources and the task force for review. The task force is required to provide input on the draft report. No later than July 15, 2026, the third party must submit a final report, which incorporates the input of the task force, to the water resources and agriculture review committee (committee). The task force must present the final report to the committee during the 2026 legislative interim.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 37-98-106 as follows:
Page 2, Line 337-98-106. Future of severance taxes and water funding task
Page 2, Line 4force - created - membership - third party to conduct study - report
Page 2, Line 5- definitions - repeal. (1) As used in this section, unless the context otherwise requires:
Page 2, Line 6(a) "Committee" means the water resources and
Page 2, Line 7agriculture review committee created in section 37-98-102(1)(a)(I).
Page 2, Line 8(b) "Task force" means the future of severance taxes and
Page 2, Line 9water funding task force created in subsection (2) of this section.
Page 2, Line 10(c) "Third party" means the third party hired by the
Page 2, Line 11department of natural resources pursuant to subsection (5)(a) of this section.
Page 2, Line 12(2) (a) The future of severance taxes and water funding task force is created in the department of natural resources.
Page 2, Line 13(b) The task force consists of the following members:
Page 3, Line 1(I) The executive director of the department of natural resources or the executive director's designee;
Page 3, Line 2(II) The director of the Colorado water conservation board created in section 37-60-102 or the director's designee;
Page 3, Line 3(III) The commissioner of agriculture or the commissioner's designee;
Page 3, Line 4(IV) A representative of an environmental advocacy
Page 3, Line 5organization, appointed by the speaker of the house of representatives;
Page 3, Line 6(V) A representative of the oil and gas industry with
Page 3, Line 7experience in severance tax issues, appointed by the minority leader of the senate;
Page 3, Line 8(VI) A representative of a water conservation district, appointed by the president of the senate;
Page 3, Line 9(VII) A representative of the agriculture industry with
Page 3, Line 10experience in the intersection of agriculture, water projects,
Page 3, Line 11and the oil and gas industry, appointed by the minority leader of the house of representatives;
Page 3, Line 12(VIII) A county commissioner from a county that contains oil and gas operations, appointed by the governor; and
Page 3, Line 13(IX) An elected municipal official or city or town
Page 3, Line 14manager from a city, town, or city and county that has
Page 3, Line 15interactions with oil and gas operations, appointed by the governor.
Page 3, Line 16(3) The purpose of the task force is to consult and
Page 3, Line 17coordinate with the third party in the development of a study
Page 3, Line 18regarding the future of severance taxes and water funding in the state.
Page 4, Line 1(4) (a) No later than September 1, 2025, the appointing authorities shall make appointments to the task force.
Page 4, Line 2(b) The department of natural resources shall provide staff and other resources to support the work of the task force.
Page 4, Line 3(c) The task force shall conduct meetings as necessary to perform its duties pursuant to this section.
Page 4, Line 4(d) The members of the task force serve without
Page 4, Line 5compensation but may be reimbursed for any reasonable
Page 4, Line 6expenses incurred in the performance of the duties required under this section.
Page 4, Line 7(5) (a) The department of natural resources shall
Page 4, Line 8contract with a third party to conduct a future of severance
Page 4, Line 9taxes and water funding study. The purpose of the study is to
Page 4, Line 10explore ways to continue funding water needs in the face of the
Page 4, Line 11decreasing availability of severance tax revenue collected
Page 4, Line 12pursuant to article 29 of title 39 and to develop related recommendations.
Page 4, Line 13(b) No later than January 15, 2026, the third party shall
Page 4, Line 14submit a draft report to the department of natural resources
Page 4, Line 15and the task force describing the study's findings and any
Page 4, Line 16recommendations. The task force shall review and provide input on the draft report.
Page 4, Line 17(c) No Later than July 15, 2026, the third party shall:
Page 4, Line 18(I) In consultation with the department of natural
Page 4, Line 19resources and the task force, create a final report that
Page 4, Line 20incorporates the task force's input regarding the draft report; and
Page 5, Line 1(II) Submit the final report to the committee.
Page 5, Line 2(d) Following the submission of the report to the
Page 5, Line 3committee, the task force shall present a summary of the report to the committee during the 2026 legislative interim.
Page 5, Line 4(6) This section is repealed, effective December 31, 2026.
Page 5, Line 5SECTION 2. Act subject to petition - effective date. This act
Page 5, Line 6takes effect at 12:01 a.m. on the day following the expiration of the
Page 5, Line 7ninety-day period after final adjournment of the general assembly; except
Page 5, Line 8that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 5, Line 9of the state constitution against this act or an item, section, or part of this
Page 5, Line 10act within such period, then the act, item, section, or part will not take
Page 5, Line 11effect unless approved by the people at the general election to be held in
Page 5, Line 12November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.