House Bill 26-1059 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the cash funds created in connection with money

• Page 1, Line 102retained by the department of revenue to mitigate the

• Page 1, Line 103administrative costs incurred by the department in

• Page 1, Line 104collecting certain charges.

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.)

Current law allows the department of revenue (department) to retain an amount equal to its administrative costs in collecting, administering, and enforcing the production fees for clean transit and wildlife and land remediation, the enterprise per ride fees, and the retail delivery fees and the enterprise retail delivery fees. Current law also allows the department to retain 3% of the prepaid wireless trust cash fund to mitigate administrative costs. The money retained by the department is currently transmitted into multiple individual cost recovery cash funds that are used to mitigate the department's administrative costs of collecting those fees and charges. These cash funds include the oil and gas production fees collection fund, the enterprise per ride fees fund, and the retail delivery fees fund (cost recovery funds).

The bill repeals each of these cost recovery funds and directs the state treasurer to transmit the money retained by the department to mitigate the department's administrative costs for all the programs into a single cost recovery cash fund, which is created in the bill.

• 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 24-35-123 as

• Page 2, Line 3follows:

• Page 2, Line 424-35-123.  Cost recovery cash fund - creation - definitions.

• Page 2, Line 5(1)  As used in this section, unless the context otherwise

• Page 2, Line 6requires:

• Page 2, Line 7(a)  "Department" means the department of revenue.

• Page 2, Line 8(b)  "Cost recovery cash fund" or "fund" means the cost

• Page 2, Line 9recovery cash fund created in subsection (2) of this section.

• Page 2, Line 10(2) (a)  The cost recovery cash fund is created in the state

• Page 2, Line 11treasury. The fund consists of money retained by the

• Page 2, Line 12department and credited to the fund by the state treasurer in

• Page 2, Line 13connection with the following:

• Page 2, Line 14(I)  The cost of collecting, administering, and enforcing

• Page 2, Line 15the prepaid wireless 911 charge pursuant to section 29-11-102.5

• Page 2, Line 16(3)(e)(II);

• Page 2, Line 17(II)  The cost of collecting, administering, and enforcing

• Page 2, Line 18the production fees for clean transit and the production fees

• Page 3, Line 1for wildlife and land remediation pursuant to section 33-61-104

• Page 3, Line 2(1);

• Page 3, Line 3(III)  The cost of collecting, administering, and enforcing

• Page 3, Line 4the enterprise per ride fees pursuant to section 40-10.1-607.5 (4);

• Page 3, Line 5and

• Page 3, Line 6(IV)  The cost of collecting, administering, and enforcing

• Page 3, Line 7the retail delivery fee and the enterprise retail delivery fees

• Page 3, Line 8pursuant to section 43-4-218 (4)(b).

• Page 3, Line 9(b)  All money in the cost recovery cash fund is

• Page 3, Line 10continuously appropriated to the department to defray the

• Page 3, Line 11costs incurred by the department in collecting, enforcing, and

• Page 3, Line 12administering the following charges and fees:

• Page 3, Line 13(I)  The prepaid wireless 911 charge collected pursuant to

• Page 3, Line 14part 1 of article 11 of title 29;

• Page 3, Line 15(II)  The production fees for clean transit and the

• Page 3, Line 16production fees for wildlife and land remediation collected

• Page 3, Line 17pursuant to article 61 of title 33;

• Page 3, Line 18(III)  The enterprise per ride fees collected pursuant to

• Page 3, Line 19section 40-10.1-607.5; and

• Page 3, Line 20(IV)  The retail delivery fees and the enterprise retail

• Page 3, Line 21delivery fees collected pursuant to section 43-4-218.

• Page 3, Line 22(3)  The state treasurer shall credit all interest and

• Page 3, Line 23income derived from the deposit and investment of money in the

• Page 3, Line 24cost recovery cash fund to the fund.

• Page 3, Line 25(4)  The fund is exempt from the limitations set forth in

• Page 3, Line 26section 24-75-402.

• Page 3, Line 27SECTION 2.  In Colorado Revised Statutes, 24-75-402, amend

• Page 4, Line 1(5)(mmm) and (5)(nnn); and add (5)(ooo) as follows:

• Page 4, Line 224-75-402.  Cash funds - limit on uncommitted reserves -

• Page 4, Line 3reduction in the amount of fees - exclusions - definitions.

• Page 4, Line 4(5)  Notwithstanding any provision of this section to the contrary,

• Page 4, Line 5the following cash funds are excluded from the limitations specified in

• Page 4, Line 6this section:

• Page 4, Line 7(mmm)  The reentry services for justice-involved individuals

• Page 4, Line 8reinvestment cash fund created in section 25.5-4-505.7; and

• Page 4, Line 9(nnn)  The health-related social needs reinvestment cash fund

• Page 4, Line 10created in section 25.5-5-340; and

• Page 4, Line 11(ooo)  The cost recovery cash fund created in section

• Page 4, Line 1224-35-123 (2).

• Page 4, Line 13SECTION 3.  In Colorado Revised Statutes, 29-11-102.5, amend

• Page 4, Line 14(3)(e)(II) as follows:

• Page 4, Line 1529-11-102.5.  Imposition of charge on prepaid wireless -

• Page 4, Line 16prepaid wireless trust cash fund - rules - transfer - applicability -

• Page 4, Line 17definitions - repeal.

• Page 4, Line 18(3) (e) (II)  The department may expend When collecting the

• Page 4, Line 19prepaid wireless 911 charge, the executive director may retain

• Page 4, Line 20an amount, not to exceed three percent of the collected charges in the

• Page 4, Line 21prepaid wireless trust cash fund, necessary to reimburse the department

• Page 4, Line 22for its direct costs of administering the collection and remittance of

• Page 4, Line 23prepaid wireless 911 charges and shall transmit the amount

• Page 4, Line 24retained to the state treasurer, who shall credit the amount to

• Page 4, Line 25the cost recovery cash fund created in section 24-35-123 (2).

• Page 4, Line 26SECTION 4.  In Colorado Revised Statutes, 33-61-103, amend

• Page 4, Line 27(1)(d) as follows:

• Page 5, Line 133-61-103.  Fee for oil and gas production - remediation of

• Page 5, Line 2harm to wildlife and land - cash fund.

• Page 5, Line 3(1) (d)  The executive director shall transmit any fees collected

• Page 5, Line 4pursuant to subsection (1)(c) of this section to the state treasurer, who

• Page 5, Line 5shall credit the fees, minus the costs to the department of revenue for

• Page 5, Line 6administering the fees pursuant to section 33-61-104, which costs shall

• Page 5, Line 7be credited to the oil and gas production fees collection fund created in

• Page 5, Line 8section 33-61-104 (1), to the cash fund specified in section 33-61-104

• Page 5, Line 9(1).

• Page 5, Line 10SECTION 5.  In Colorado Revised Statutes, 33-61-104, amend

• Page 5, Line 11(1) as follows:

• Page 5, Line 1233-61-104.  Collection and administration of production fees

• Page 5, Line 13- rules - transfer - repeal.

• Page 5, Line 14(1)  When collecting the production fees for clean transit and the

• Page 5, Line 15production fees for wildlife and land remediation, the executive director

• Page 5, Line 16shall retain an amount that does not exceed the total cost of collecting,

• Page 5, Line 17administering, and enforcing the production fees for clean transit and the

• Page 5, Line 18production fees for wildlife and land remediation and shall transmit the

• Page 5, Line 19amount retained to the state treasurer, who shall credit the amount as

• Page 5, Line 20follows:production fees for clean transit and the production fees for

• Page 5, Line 21wildlife and land remediation

• Page 5, Line 22(a) (I)   Prior to July 1, 2027, to the oil and gas production fees

• Page 5, Line 23collection fund, which is created in the state treasury. All money in the oil

• Page 5, Line 24and gas production fees collection fund is continuously appropriated to

• Page 5, Line 25the department of revenue to defray the costs incurred by the department

• Page 5, Line 26of revenue in collecting, enforcing, and administering the production fees

• Page 5, Line 27for wildlife and land remediation and the production fees for clean transit.

• Page 6, Line 1(II)  This subsection (1)(a) is repealed, effective July 1, 2027.

• Page 6, Line 2The state treasurer shall transfer all unexpended and

• Page 6, Line 3unencumbered money remaining in the oil and gas production

• Page 6, Line 4fees collection fund on June 30, 2027, to the cost recovery cash

• Page 6, Line 5fund created in section 24-35-123 (2).

• Page 6, Line 6(b)  Beginning July 1, 2027, to the cost recovery cash fund

• Page 6, Line 7created in section 24-35-123 (2).

• Page 6, Line 8SECTION 6.  In Colorado Revised Statutes, 40-10.1-607.5,

• Page 6, Line 9amend (4) as follows:

• Page 6, Line 1040-10.1-607.5.  Fees - enterprise per ride fees - collection -

• Page 6, Line 11distribution of fee proceeds - rules - transfer - definitions - repeal.

• Page 6, Line 12(4)  When collecting the enterprise per ride fees, the department of

• Page 6, Line 13revenue shall retain an amount that does not exceed the total cost of

• Page 6, Line 14collecting, administering, and enforcing the enterprise per ride fees and

• Page 6, Line 15shall transmit the amount retained to the state treasurer, who shall credit

• Page 6, Line 16it the amount as follows:

• Page 6, Line 17(a) (I)  Prior to July 1, 2027, to the enterprise per ride fees fund,

• Page 6, Line 18which is hereby created in the state treasury. All money in the enterprise

• Page 6, Line 19per ride fees fund is continuously appropriated to the department of

• Page 6, Line 20revenue to defray the costs incurred by the department in collecting,

• Page 6, Line 21enforcing, and administering the enterprise per ride fees.

• Page 6, Line 22(II)  This subsection (4)(a) is repealed, effective July 1, 2027.

• Page 6, Line 23The state treasurer shall transfer all unexpended and

• Page 6, Line 24unencumbered money remaining in the enterprise per ride fees

• Page 6, Line 25fund on June 30, 2027, to the cost recovery cash fund created in

• Page 6, Line 26section 24-35-123 (2).

• Page 6, Line 27(b)  Beginning July 1, 2027, to the cost recovery cash fund

• Page 7, Line 1created in section 24-35-123 (2).

• Page 7, Line 2SECTION 7.  In Colorado Revised Statutes, 43-4-218, amend

• Page 7, Line 3(4)(b) as follows:

• Page 7, Line 443-4-218.  Additional funding - retail delivery fee - cost

• Page 7, Line 5recovery cash fund - simultaneous collection of enterprise fees - rules

• Page 7, Line 6- legislative declaration - definitions - repeal.

• Page 7, Line 7(4) (b)  When collecting the retail delivery fee and, in accordance

• Page 7, Line 8with subsection (4)(a) of this section, the enterprise retail delivery fees,

• Page 7, Line 9the department of revenue shall retain an amount that does not exceed the

• Page 7, Line 10total cost of collecting, administering, and enforcing the retail delivery fee

• Page 7, Line 11and the enterprise retail delivery fees and shall transmit the amount

• Page 7, Line 12retained to the state treasurer, who shall credit it the amount as

• Page 7, Line 13follows:

• Page 7, Line 14(I) (A)  Prior to July 1, 2027, to the retail delivery fees fund,

• Page 7, Line 15which is hereby created in the state treasury. All money in the retail

• Page 7, Line 16delivery fees fund is continuously appropriated to the department of

• Page 7, Line 17revenue to defray the costs incurred by the department in collecting,

• Page 7, Line 18enforcing, and administering the retail delivery fee and the enterprise

• Page 7, Line 19retail delivery fees.

• Page 7, Line 20(B)  This subsection (4)(b)(I) is repealed, effective July 1,

• Page 7, Line 212027. The state treasurer shall transfer all unexpended and

• Page 7, Line 22unencumbered money remaining in the retail delivery fees fund

• Page 7, Line 23on June 30, 2027, to the cost recovery cash fund created in

• Page 7, Line 24section 24-35-123 (2).

• Page 7, Line 25(II)  Beginning July 1, 2027, to the cost recovery cash fund

• Page 7, Line 26created in section 24-35-123 (2).

• Page 7, Line 27SECTION 8.  Act subject to petition - effective date. This act

• Page 8, Line 1takes effect at 12:01 a.m. on the day following the expiration of the

• Page 8, Line 2ninety-day period after final adjournment of the general assembly (August

• Page 8, Line 312, 2026, if adjournment sine die is on May 13, 2026); except that, if a

• Page 8, Line 4referendum petition is filed pursuant to section 1 (3) of article V of the

• Page 8, Line 5state constitution against this act or an item, section, or part of this act

• Page 8, Line 6within such period, then the act, item, section, or part will not take effect

• Page 8, Line 7unless approved by the people at the general election to be held in

• Page 8, Line 8November 2026 and, in such case, will take effect on the date of the

• Page 8, Line 9official declaration of the vote thereon by the governor.