A Bill for an Act
Page 1, Line 101Concerning the implementation of proposition 130, and, in
Page 1, Line 102connection therewith, making an appropriation.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)
Joint Budget Committee. At the November 2024 statewide election, voters approved proposition 130, which requires the state to provide $350 million in additional funding to local law enforcement agencies to improve recruitment, training, and retention of local law enforcement officers and to provide a $1 million death benefit to the family of a first responder who is killed in the line of duty. The bill modifies and implements proposition 130.
The bill creates the peace officer training and support fund (fund). The bill establishes a formula by which the department of public safety (department) disburses $350 million in additional funding to local law enforcement agencies from the fund for permissible purposes. Permissible purposes include the recruitment of peace officers, the hiring of additional peace officers to address specific geographic areas or specific types of criminal activity, the initial and continuing education and training for peace officers, and the compensation of peace officers. No later than January 15, 2026, the department is required to adopt policies and procedures to assist in the determination whether the expenditure of money received from the fund is for a permissible purpose.
Beginning July 1, 2026, the formula requires the department to disburse an amount to each law enforcement agency equal to the total of $15,000 and an amount multiplied by the number of P.O.S.T-certified officers, noncertified deputy sheriffs, and detention officers budgeted by a local government for the law enforcement agency. Law enforcement agencies and local governments may not use these funds to supplant or supplement other spending. Local governments must include evidence of compliance with the supplanting and supplementing requirement in their annual audit and provide a copy of this audit to the department. The department must review an audit provided by a local government for compliance with the requirements of the bill.
The bill also establishes funding for the fund. First, the bill directs the state treasurer to transfer $15 million from the general fund to the fund on July 1, 2026. Second, the bill directs the state treasurer to issue a warrant from the general fund of $500 million to the public employees' retirement association (PERA) on July 1, 2025. Beginning July 1, 2027, until the state treasurer has transferred a total of $350 million from the general fund to the fund:
- The amount of each annual direct distribution made by the state to PERA is reduced by the amount of PERA's earnings from the $500 million, up to a maximum of $35 million; and
- The state treasurer annually transfers an amount equal to the amount of PERA's earnings from the $500 million, up to a maximum of $35 million, from the general fund to the fund.
However, beginning July 1, 2027, and each July 1 thereafter until the state treasurer has transferred a total of $350 million from the general fund to the fund, the state treasurer is required to transfer at least $15 million from the general fund to the fund regardless of the amount of PERA's earnings from the $500 million.
The bill clarifies that the $500 million in the warrant that the state treasurer transfers to PERA is included in the general fund reserve. Accordingly, the bill prohibits a future general assembly from lowering the general fund reserve to an amount less than $1 billion. If the general assembly does so reduce the reserve, the general assembly shall also make corresponding reductions to the direct distributions made by the state to PERA. The bill also requires the governor to adjust general fund expenditures so that they do not result in the general fund reserve being reduced to an amount less than $1 billion.
The bill establishes a process by which the department distributes a $1 million death benefit to the family of a first responder who dies on or after November 5, 2024, as either the direct and proximate result of a personal injury sustained while performing official duties as a first responder or because of an occupational disease arising out of and in the course of the first responder's employment or service as a first responder. These payments are paid out of the death benefit fund, which is created in the bill. The bill requires the state treasurer to transfer $5 million from the general fund to the death benefit fund on both July 1, 2026, and July 1, 2027, and to make annual transfers from the general fund thereafter as necessary to ensure that the fund maintains a balance of $10 million. The bill also requires a survivor of an eligible first responder to deduct an amount equal to these payments from their federal taxable income for the purpose of determining their state income tax liability unless the survivor qualifies for a corresponding federal income tax deduction.
The bill also requires the department to provide technical assistance to law enforcement agencies and local governments in complying with the requirements of the bill and allows the executive director of the department to adopt rules as necessary to implement the bill.
Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 3, Line 2SECTION 1. In Colorado Revised Statutes, repeal 24-33.5-503 (1)(gg).
Page 3, Line 3SECTION 2. In Colorado Revised Statutes, repeal24-33.5-537.
SECTION 3. In Colorado Revised Statutes, repeal 24-33.5-538.
Page 3, Line 4SECTION 4. In Colorado Revised Statutes, add 24-33.5-121 as follows:
Page 3, Line 524-33.5-121. Peace officer training and support fund - peace
Page 3, Line 6officer training and support distribution - first responder death
Page 3, Line 7benefit administration - death benefit fund - rules - definitions -
Page 4, Line 1repeal. (1) Definitions.As used in this section, unless the context otherwise requires:
Page 4, Line 2(a) "Child" means a first responder's adopted child,
Page 4, Line 3stepchild, or biological child and includes a biological child born after the eligible first responder's death.
Page 4, Line 4(b) "Firefighter" has the same meaning as set forth in section 29-5-501 (2).
Page 4, Line 5(c) "First responder" means a peace officer, firefighter, or emergency medical service provider.
Page 4, Line 6(d) "Fulfillment year" means the state fiscal year during
Page 4, Line 7which the state treasurer has transferred a total of three
Page 4, Line 8hundred fifty million dollars to the fund pursuant to subsection (2)(b) of this section.
Page 4, Line 9(e) "Fund" means the peace officer training and support fund established in subsection (2) of this section.
Page 4, Line 10(f) "Law enforcement agency" means a county sheriff's
Page 4, Line 11office, a municipal police department, a town marshal's office, or a municipal court.
Page 4, Line 12(g) "Occupational disease" means, but is not limited to,
Page 4, Line 13cancers, respiratory illnesses, cardiovascular conditions, and
Page 4, Line 14other diseases or conditions that are reasonably determined to
Page 4, Line 15have arisen from exposure to hazardous substances, extreme
Page 4, Line 16physical exertion, or traumatic events while serving as a first responder.
Page 4, Line 17(h) "Parent" means a first responder's biological parent or adoptive parent.
Page 4, Line 18(i) "Peace officer" means a certified peace officer
Page 5, Line 1described in section 16-2.5-102 and a noncertified deputy sheriff or detention officer as described in section 16-2.5-103 (2).
Page 5, Line 2(j) (I) "Permissible purpose" means the initial and
Page 5, Line 3continuing education and training for peace officers and the compensation of peace officers.
Page 5, Line 4(II) As used in this subsection (1)(j), "compensation" means
Page 5, Line 5pay to a newly hired, current, or rehired peace officer,
Page 5, Line 6reimbursement to a peace officer for tuition paid to attend a
Page 5, Line 7training academy, and bonuses paid to peace officers for hiring, rehiring, merit, or retention.
Page 5, Line 8(k) "Spouse" means an individual to whom an eligible first
Page 5, Line 9responder is married or with whom an eligible first responder has established a civil union.
Page 5, Line 10(l) "Training academy" has the same meaning as set forth in section 24-31-304 (1).
Page 5, Line 11(2) Peace officer training and support fund. (a) The peace
Page 5, Line 12officer training and support fund is created in the state
Page 5, Line 13treasury. The fund consists of gifts, grants, donations, money
Page 5, Line 14credited to the fund pursuant to this section, and any other
Page 5, Line 15money that the general assembly may appropriate or transfer to the fund.
Page 5, Line 16(b) (I) (A) On July 1, 2026, the state treasurer shall
Page 5, Line 17transfer fifteen million dollars from the general fund to the fund.
Page 5, Line 18(B) In state fiscal year 2026-27, the general assembly may
Page 5, Line 19appropriate twenty million dollars from the general fund to
Page 5, Line 20the fund.
Page 6, Line 1(II) On July 1, 2027, and each July 1 thereafter through
Page 6, Line 2July 1 of the fulfillment year, the state treasurer shall
Page 6, Line 3transfer an amount equal to the greater of fifteen million
Page 6, Line 4dollars or the adjusted investment amount from the general fund to the fund.
Page 6, Line 5(III) As used in this subsection (2)(b), unless the context otherwise requires:
Page 6, Line 6(A) "Adjusted investment amount" means, for any year,
Page 6, Line 7the reported reduction in that year minus the backfill amount and plus the payback amount.
Page 6, Line 8(B) "Backfill amount" means the cumulative difference
Page 6, Line 9between the reported reduction and fifteen million dollars in
Page 6, Line 10every previous year in which the reported reduction was less than fifteen million dollars.
Page 6, Line 11(C) "Reported reduction" means, for any year, the amount
Page 6, Line 12of the reduction in the warrant issued pursuant to section
Page 6, Line 1324-51-414 (1) reported to the state treasurer by the office of
Page 6, Line 14state planning and budgeting pursuant to section 24-51-414 (8.5)(a)(II).
Page 6, Line 15(D) "Payback amount" means the cumulative difference
Page 6, Line 16between the reported reduction and the amount that the state
Page 6, Line 17treasurer transferred from the general fund to the fund in
Page 6, Line 18every previous year in which the reported reduction was greater than fifteen million dollars.
Page 6, Line 19(c) The state treasurer shall credit all interest and
Page 6, Line 20income derived from the deposit and investment of money in the
Page 6, Line 21fund to the general fund.
Page 7, Line 1(d) Money in the fund is continuously appropriated to the
Page 7, Line 2department for the department to distribute in accordance with
Page 7, Line 3subsection (3)(b) of this section; and for state fiscal years
Page 7, Line 4commencing on or after July 1, 2026, the general assembly may
Page 7, Line 5annually appropriate no more than two and one-half percent of
Page 7, Line 6the amount that the state treasurer transfers to the fund in
Page 7, Line 7that same fiscal year pursuant to subsection (2)(b) of this
Page 7, Line 8section to the department for the direct and indirect costs of administering subsection (3) of this section.
Page 7, Line 9(3) Peace officer training and support distribution. (a) Law
Page 7, Line 10enforcement agency certification.On or before December 15, 2026,
Page 7, Line 11and each December 15 thereafter through the fulfillment year,
Page 7, Line 12a law enforcement agency may submit a certification to the
Page 7, Line 13department in a form and manner determined by the department. The certification shall include:
Page 7, Line 14(I) The number of peace officers that the relevant local
Page 7, Line 15government has budgeted for the law enforcement agency in the upcoming year;
Page 7, Line 16(II) The total dollar amount that the relevant local
Page 7, Line 17government budgeted for the law enforcement agency to expend for a permissible purpose;
Page 7, Line 18(III) A resolution or ordinance adopted by the relevant
Page 7, Line 19local government that the local government will only expend
Page 7, Line 20money awarded by the department from the fund in accordance with the requirements of subsection (3)(c) of this section; and
Page 7, Line 21(IV) If the law enforcement agency is a sheriff's office, a
Page 7, Line 22certification by the law enforcement agency that it will only
Page 8, Line 1expend money awarded by the department from the fund in
Page 8, Line 2accordance with the requirements of subsection (3)(c) of this section.
Page 8, Line 3(b) Distribution formula. (I) No later than December 31,
Page 8, Line 42026, and each December 31 thereafter through the fulfillment
Page 8, Line 5year, the department shall annually disburse from the fund to
Page 8, Line 6each eligible law enforcement agency an amount equal to the
Page 8, Line 7base amount plus the total of the number of peace officers that
Page 8, Line 8the law enforcement agency identified for that year pursuant
Page 8, Line 9to subsection (3)(a)(I) of this section multiplied by the peace officer adjustment.
Page 8, Line 10(II) As used in this subsection (3)(b), unless the context otherwise requires:
Page 8, Line 11(A) "Base amount" means fifteen thousand dollars.
Page 8, Line 12(B) "Eligible law enforcement agency" means, for any
Page 8, Line 13year, a law enforcement agency that submits a certification to
Page 8, Line 14the department in that year pursuant to subsection (3)(a) of this section.
Page 8, Line 15(C) "Peace officer adjustment" means, for any year, an
Page 8, Line 16amount equal to the amount that the state treasurer
Page 8, Line 17transferred to the fund in that year pursuant to subsection
Page 8, Line 18(2)(b) of this section, minus the amount annually appropriated by
Page 8, Line 19the general assembly pursuant to subsection (2)(d) of this
Page 8, Line 20section for the department's direct and indirect costs of
Page 8, Line 21administering this subsection (3) for the fiscal year that
Page 8, Line 22commences in that year, minus the base amount multiplied by the
Page 8, Line 23number of eligible law enforcement agencies that year, divided
Page 9, Line 1by the total number of peace officers that eligible law
Page 9, Line 2enforcement agencies identified pursuant to subsection (3)(a) of this section that year.
Page 9, Line 3(c) Supplanting and supplementing. (I) (A) A law
Page 9, Line 4enforcement agency shall only spend, and a local government
Page 9, Line 5shall only budget for a law enforcement agency to spend, any
Page 9, Line 6money received pursuant to this subsection (3) for a permissible purpose; and
Page 9, Line 7(B) A law enforcement agency shall spend, and a local
Page 9, Line 8government shall budget for a law enforcement agency to
Page 9, Line 9spend, the money that the law enforcement agency receives
Page 9, Line 10pursuant to this subsection (3) to increase funding that would,
Page 9, Line 11in the absence of money from the fund, be made available from
Page 9, Line 12other state or local sources. A law enforcement agency shall
Page 9, Line 13not spend, and a local government shall not budget for a law
Page 9, Line 14enforcement agency to spend, money that the law enforcement
Page 9, Line 15agency receives pursuant to this subsection (3) to supplant
Page 9, Line 16other money that would, in the absence of the money received
Page 9, Line 17pursuant to this subsection (3), be made available from other state and local sources for a permissible purpose.
Page 9, Line 18(II) A law enforcement agency or a local government is
Page 9, Line 19presumed to have violated subsection (3)(c)(I)(B) of this section
Page 9, Line 20if the law enforcement agency or local government reduces or
Page 9, Line 21replaces the budgeting with or expenditure of federal, local, or
Page 9, Line 22state money in the immediately preceding year used for a
Page 9, Line 23permissible purpose with money received pursuant to this
Page 9, Line 24subsection (3) because the local government already budgeted
Page 10, Line 1for or the law enforcement agency already expected or received money pursuant to this subsection (3); and
Page 10, Line 2(III) A law enforcement agency or local government
Page 10, Line 3rebuts a presumption established pursuant to subsection (3)(c)(II)
Page 10, Line 4of this section if the law enforcement agency or local government establishes by contemporaneous records that:
Page 10, Line 5(A) The law enforcement agency or local government
Page 10, Line 6reduced or eliminated expenditures for multiple purposes other than for a permissible purpose;
Page 10, Line 7(B) There was a reduction in federal, local, or state
Page 10, Line 8money paid to the law enforcement agency or local government for a permissible purpose; and
Page 10, Line 9(C) The law enforcement agency or local government
Page 10, Line 10reduced or eliminated permissible purpose expenditures without
Page 10, Line 11taking into consideration the receipt or expected receipt of money pursuant to this subsection (3).
Page 10, Line 12(IV) The department may enforce the requirements of this
Page 10, Line 13subsection (3) through the review of audits pursuant to section
Page 10, Line 1429-1-603 (6)(b) and may take corrective action by working with
Page 10, Line 15a law enforcement agency to ensure compliance with this subsection (3).
Page 10, Line 17(4) First responder death benefit administration. (a) (I) If the
Page 10, Line 18executive director determines that a first responder has died on
Page 10, Line 19or after November 5, 2024, as the direct and proximate result of
Page 10, Line 20a personal injury sustained while performing their official
Page 10, Line 21duties or because of an occupational disease arising out of and
Page 11, Line 1in the course of their employment or service as a first responder,
Page 11, Line 2the department shall pay a benefit of one million dollars from
Page 11, Line 3the death benefit fund created in subsection (4)(e)(I) of this
Page 11, Line 4section as follows, if the indicated payee is living on the date on
Page 11, Line 5which the executive director makes the determination described in this subsection (4)(a)(I):
Page 11, Line 6(A) If there is no child who survived the first responder, to the surviving spouse of the first responder;
Page 11, Line 7(B) If there is at least one child who survived the first
Page 11, Line 8responder and a surviving spouse of the first responder, fifty
Page 11, Line 9percent to the surviving child or children, in equal shares, and fifty percent to the surviving spouse;
Page 11, Line 10(C) If there is no surviving spouse of the first responder, to the surviving child or children, in equal shares;
Page 11, Line 11(D) If there is no surviving spouse of the first responder
Page 11, Line 12and no surviving child, to the surviving individual or individuals
Page 11, Line 13designated by the first responder in the most recently executed
Page 11, Line 14designation of beneficiary on file at the time of death with the
Page 11, Line 15governing body or state agency, apportioned in accordance with
Page 11, Line 16the designation of beneficiary or, if apportionment is not indicated, in equal shares;
Page 11, Line 17(E) If there is no surviving spouse of the first responder,
Page 11, Line 18no surviving child of the eligible first responder, and no
Page 11, Line 19individual qualifying under subsection (4)(a)(I)(D) of this
Page 11, Line 20section, to the surviving beneficiaries under the most recently
Page 11, Line 21executed life insurance policy of the first responder on file at
Page 11, Line 22the time of death with the governing body or state agency,
Page 12, Line 1apportioned in accordance with the insurance policy or, if apportionment is not indicated, in equal shares; or
Page 12, Line 2(F) If there is no individual qualifying under subsections
Page 12, Line 3(4)(a)(I)(A) to (4)(a)(I)(E) of this section, to the surviving parent or parents, in equal shares, of the first responder; and
Page 12, Line 4(II) If the executive director is unable to identify an
Page 12, Line 5individual described by subsections (4)(a)(I)(A) to (4)(a)(I)(F) of
Page 12, Line 6this section for a first responder, then no payment is made pursuant to this section for that first responder.
Page 12, Line 7(b) If the executive director determines that a first
Page 12, Line 8responder has died on or after November 5, 2024, as the direct
Page 12, Line 9and proximate result of a personal injury sustained while
Page 12, Line 10performing their official duties or because of an occupational
Page 12, Line 11disease arising out of and in the course of their employment or
Page 12, Line 12service as a first responder, if that first responder has died
Page 12, Line 13after separation from service as a first responder, while on an
Page 12, Line 14authorized leave of absence as a first responder, or while
Page 12, Line 15performing qualified military service, as defined in 26 U.S.C. sec.
Page 12, Line 16414 (u)(5), the department shall pay a benefit to a payee in
Page 12, Line 17connection with that first responder in accordance with subsection (4)(a) of this section.
Page 12, Line 18(c) A payment under this section shall not be used to
Page 12, Line 19offset or reduce payments available from any other source,
Page 12, Line 20including a public disability plan or insurance plan, private
Page 12, Line 21disability plan or insurance plan, or benefits provided under Colorado's workers' compensation law.
Page 12, Line 22(d) (I) The executive director shall determine whether a
Page 13, Line 1first responder whose death results in a payment pursuant to
Page 13, Line 2this subsection (4) qualifies for line-of-duty status under
Page 13, Line 3section 101 (h) of the federal "Internal Revenue Code of 1986"
Page 13, Line 4and whether any of the exceptions specified in section 101 (h)(2)
Page 13, Line 5of the federal "Internal Revenue Code of 1986" are applicable
Page 13, Line 6and shall inform the taxpayer who receives the payment and the department of revenue of the executive director's decision.
Page 13, Line 7(II) A taxpayer who receives a payment pursuant to this
Page 13, Line 8subsection (4) that does not qualify for the federal income tax
Page 13, Line 9exemption described in section 101 (h) of the federal "Internal
Page 13, Line 10Revenue Code of 1986", including a payment that does not
Page 13, Line 11qualify as a result of the exceptions described in section 101
Page 13, Line 12(h)(2) of the federal "Internal Revenue Code of 1986", shall,
Page 13, Line 13pursuant to section 39-22-104 (4)(dd), subtract the amount of the
Page 13, Line 14payment from the taxpayer's federal taxableincome. The
Page 13, Line 15executive director shall provide the taxpayer and the
Page 13, Line 16department of revenue any information deemed necessary by the department of revenue for this tax subtraction.
Page 13, Line 17(e) (I) The death benefit fund is created in the state
Page 13, Line 18treasury. The fund consists of gifts, grants, and donations
Page 13, Line 19credited to the fund and any other money that the general assembly may appropriate or transfer to the fund.
Page 13, Line 20(II) In accordance with section 24-36-114 (1), the state
Page 13, Line 21treasurer shall credit all interest and income derived from the
Page 13, Line 22deposit and investment of money in the death benefit fund to the general fund.
Page 13, Line 23(III) (A) Money in the fund is annually appropriated to the
Page 14, Line 1department for paying benefits pursuant to this subsection (4)
Page 14, Line 2and for the direct and indirect costs of administering this subsection (4).
Page 14, Line 3(B) The department may expend no more than two percent
Page 14, Line 4of the money that the general assembly annually appropriates
Page 14, Line 5to the death benefit fund for the direct and indirect costs of administering this subsection (4).
Page 14, Line 6(IV) (A) On July 1, 2025, and July 1, 2026, the state
Page 14, Line 7treasurer shall transfer five million dollars from the general fund to the death benefit fund.
Page 14, Line 8(B) On July 1, 2027, and each July 1 thereafter, if the
Page 14, Line 9balance of the death benefit fund is less than ten million
Page 14, Line 10dollars, on July 2 of that year, the state treasurer shall
Page 14, Line 11transfer an amount from the general fund to the death benefit
Page 14, Line 12fund equal to the difference between ten million dollars and the balance of the death benefit fund.
Page 14, Line 13(5) Technical assistance.The department shall, subject to
Page 14, Line 14available appropriations, provide technical assistance to law
Page 14, Line 15enforcement agencies and local governments in complying with the requirements of this section and section 29-1-603.
Page 14, Line 16(6) Rules.The executive director shall adopt rules that
Page 14, Line 17specify standards and establish procedures as necessary to
Page 14, Line 18determine whether section 101 (h) of the federal "Internal
Page 14, Line 19Revenue Code of 1986", as amended, applies to a payment
Page 14, Line 20awarded pursuant to subsection (4) of this section and may adopt additional rules as necessary to implement this section.
Page 14, Line 21SECTION 5. In Colorado Revised Statutes, 24-51-414, amend (1)(a) and (4); and add (8.5) as follows:
Page 15, Line 124-51-414. Direct distribution - definitions. (1) (a) Except as
Page 15, Line 2otherwise provided in
subsections (6), (7), and (8)Page 15, Line 3(8), and (8.5) of this section, on July 1, 2018, on July 1, 2019, on July 1,
Page 15, Line 42021, and on July 1 each year thereafter until there are no unfunded
Page 15, Line 5actuarial accrued liabilities of any division of the association that receives
Page 15, Line 6the distribution pursuant to this section, the state treasurer shall issue a
Page 15, Line 7warrant to the association in an amount equal to two hundred twenty-five
Page 15, Line 8million dollars. Such amount shall be paid to the association from the general fund, or any other fund, subject to section 24-51-413.
Page 15, Line 9(4) (a) The association shall allocate the direct distribution to the
Page 15, Line 10trust funds of each division of the association as it would an employer
Page 15, Line 11contribution, in a manner that is proportionate to the annual payroll of
Page 15, Line 12each division as reported to the association; except that the association
Page 15, Line 13shall not allocate any portion of the direct distribution amount to the local government division of the association.
Page 15, Line 14(b) (I) Notwithstanding any provision of this subsection (4)
Page 15, Line 15to the contrary, on or after July 1, 2025, if the allocation
Page 15, Line 16methodology described in this subsection (4) would result in the
Page 15, Line 17blended total contribution amount equaling less than
Page 15, Line 18ninety-eight percent of the blended total required contribution
Page 15, Line 19the association may instead allocate the direct distribution to
Page 15, Line 20the trust funds of each division of the association in an
Page 15, Line 21actuarial manner as necessary to achieve at least ninety-eight
Page 15, Line 22percent of the blended total required contribution; except that
Page 15, Line 23the association shall not allocate any portion of the direct
Page 15, Line 24distribution amount to the local government division of the association.
Page 16, Line 1(II) As used in this subsection (4)(b), unless the context otherwise requires:
Page 16, Line 2(A) "Blended total contribution amount" has the same meaning as in section 24-51-413 (1)(a).
Page 16, Line 3(B) "Blended total required contribution" has the same meaning as in section 24-51-413 (1)(b).
Page 16, Line 4(C) "Fulfillment year" has the same meaning as set forth in subsection (8.5)(d)(III) of this section.
Page 16, Line 5(8.5) (a) (I) The amount of a warrant to be issued on July
Page 16, Line 61, 2027, and each July 1 thereafter through the fulfillment
Page 16, Line 7year, to the association pursuant to subsection (1) of this
Page 16, Line 8section is reduced by the least of thirty-five million dollars,
Page 16, Line 9the deferred inflow of resources amount, the deferred inflow
Page 16, Line 10of resources amount multiplied by the annual rate of return on
Page 16, Line 11investments for the association in the immediately preceding
Page 16, Line 12association fiscal year as published in the relevant annual
Page 16, Line 13actuarial valuation report pursuant to section 25-41-204 (7), or
Page 16, Line 14the amount necessary for the total amount transferred by the
Page 16, Line 15state treasurer to the peace officer training and support fund
Page 16, Line 16pursuant to section 24-33.5-121 (2)(b) to equal three hundred
Page 16, Line 17fifty million dollars; except that, if the amount of the warrant
Page 16, Line 18is reduced pursuant to section 24-75-201.1 (5)(b)(II), the amount
Page 16, Line 19of the warrant is not also reduced pursuant to this subsection (8.5)(a)(I).
Page 16, Line 20(II) On or before June 30, 2027, and each June 30 thereafter
Page 16, Line 21through the fulfillment year, the office of state planning and
Page 17, Line 1budgeting shall report to the state treasurer the amount by
Page 17, Line 2which the warrant issued to the association pursuant to
Page 17, Line 3subsection (1) of this section is reduced pursuant to subsection(8.5)(a)(I) of this section.
Page 17, Line 4(b) (I) On or before June 30, 2034, and each June 30
Page 17, Line 5thereafter through the fulfillment year, the office of state
Page 17, Line 6planning and budgeting shall calculate, for the purposes of
Page 17, Line 7determining the adjusted warrant reduction amount and the fulfillment year:
Page 17, Line 8(A) The total of the amount that the state treasurer has
Page 17, Line 9previously transferred to the peace officer training and support
Page 17, Line 10fund pursuant to section 24-33.5-121 (2)(b) and the amount that
Page 17, Line 11the state treasurer is projected to transfer to the peace officer
Page 17, Line 12training and support fund pursuant to section 24-33.5-121 (2)(b) on July 1 of the next state fiscal year; and
Page 17, Line 13(B) The total of the amount described in subsection
Page 17, Line 14(8.5)(b)(I)(A) of this section and the amount that the state
Page 17, Line 15treasurer is projected to transfer to the peace officer training
Page 17, Line 16and support fund pursuant to section 24-33.5-121 (2)(b) on July 1
Page 17, Line 17of the next state fiscal year immediately succeeding the next state fiscal year.
Page 17, Line 18(II) If the total amount calculated by the office of state
Page 17, Line 19planning and budgeting pursuant to subsection (8.5)(b)(I)(A) of
Page 17, Line 20this section exceeds three hundred fifty million dollars, the
Page 17, Line 21office of state planning and budgeting shall report to the state
Page 17, Line 22treasurer, the association, the department of public safety, and
Page 17, Line 23the joint budget committee that the next state fiscal year is projected to be the fulfillment year.
Page 18, Line 1(III) If the total amount calculated by the office of state
Page 18, Line 2planning and budgeting pursuant to subsection (8.5)(b)(I)(B) of
Page 18, Line 3this section exceeds three hundred fifty million dollars, the
Page 18, Line 4office of state planning and budgeting shall report to the joint
Page 18, Line 5budget committee of the general assembly that the office of
Page 18, Line 6state planning and budgeting projects that the state fiscal year
Page 18, Line 7immediately succeeding the next state fiscal year is projected to be the fulfillment year.
Page 18, Line 8(c) (I) The association shall deem the amount of the
Page 18, Line 9warrants issued by the state treasurer pursuant to section
Page 18, Line 1024-75-201.1 (5)(a)(I), any earnings on that amount, and any
Page 18, Line 11adjustments made pursuant to subsection (8.5)(c)(II) of this section as a deferred inflow of resources.
Page 18, Line 12(II) For 2027, and each year thereafter through the
Page 18, Line 13fulfillment year, if, pursuant to subsection (8.5)(a)(I) of this
Page 18, Line 14section or section 24-75-201.1 (5)(b)(II), there is a reduction in the
Page 18, Line 15amount of the warrant to be issued to the association pursuant
Page 18, Line 16to subsection (1) of this section, the association shall recognize
Page 18, Line 17a portion of the deferred inflow of resources amount equal to
Page 18, Line 18the amount of that reduction as a direct distribution subject to allocation pursuant to subsection (4) of this section.
Page 18, Line 19(III) After the fulfillment year, the association may
Page 18, Line 20recognize any amount of deferred inflow of resources as a
Page 18, Line 21direct distribution for purposes of section 24-51-413 (1), as necessary pursuant to subsection (4)(b) of this section.
Page 18, Line 22(d) As used in this subsection (8.5), unless the context otherwise requires:
Page 19, Line 1(I) "Adjusted warrant reduction amount" means the
Page 19, Line 2amount necessary to ensure that the state treasurer transfers
Page 19, Line 3a total amount equal to three hundred fifty million dollars to
Page 19, Line 4the peace officer training and support fund pursuant to section24-33.5-121 (2)(b).
Page 19, Line 5(II) "Deferred inflow of resources amount" means the
Page 19, Line 6amount designated as a deferred inflow of resources by the association pursuant to subsection (8.5)(c)(I) of this section.
Page 19, Line 7(III) "Fulfillment year" means the first state fiscal year
Page 19, Line 8during which the total amount transferred by the state
Page 19, Line 9treasurer to the peace officer training and support fund
Page 19, Line 10pursuant to section 24-33.5-121 (2)(b) equals or exceeds three hundred fifty million dollars.
Page 19, Line 11SECTION 6. In Colorado Revised Statutes, 24-75-201.1, amend (5) as follows:
Page 19, Line 1224-75-201.1. Restriction on state appropriations - legislative
Page 19, Line 13declaration - definitions - repeal. (5) (a) (I) On or after July 1, 2025,
Page 19, Line 14and before October 1, 2025, the state treasurer shall issue
Page 19, Line 15multiple warrants to the public employees' retirement
Page 19, Line 16association totaling an amount equal to five hundred million dollars from the general fund; and
Page 19, Line 17(II) For the purpose of determining the unrestricted
Page 19, Line 18general fund year-end balances pursuant to this section, the
Page 19, Line 19five hundred million dollars in the warrant issued by the state
Page 19, Line 20treasurer pursuant to subsection (5)(a)(I) of this section is
Page 19, Line 21included in those balances.
Page 20, Line 1(b) (I) Until the state fiscal year after the fulfillment
Page 20, Line 2year, the general assembly shall not reduce the fiscal year
Page 20, Line 3unrestricted general fund year-end balances that must be
Page 20, Line 4retained as a reserve to an amount less than one billion dollars
Page 20, Line 5without also reducing the amount of the warrant described in section 24-51-414;
Page 20, Line 6(II) If, during a state fiscal year before the year after the
Page 20, Line 7fulfillment year, the general assembly reduces the fiscal year
Page 20, Line 8unrestricted general fund year-end balances that must be
Page 20, Line 9retained as a reserve to an amount less than one billion
Page 20, Line 10dollars, notwithstanding any law to the contrary, the general
Page 20, Line 11assembly shall reduce the total amount of the warrant
Page 20, Line 12described in section 24-51-414 for one or more fiscal years by a
Page 20, Line 13total amount equal to the difference, not to exceed the
Page 20, Line 14remaining deferred inflow of resources amount, between the
Page 20, Line 15fiscal year unrestricted general fund year-end balances that must be retained as a reserve and one billion dollars; and
Page 20, Line 16(III) As used in subsection (1)(d) of this section and in this subsection (5)(b), unless the context otherwise requires:
Page 20, Line 17(A) "Deferred inflow of resources amount" has the same meaning as in section 24-51-414 (8.5)(e)(II).
Page 20, Line 18(B) "Fulfillment year" means the first state fiscal year
Page 20, Line 19during which the state treasurer has transferred a total of three hundred fifty million dollars to the fund.
Page 20, Line 20SECTION 7. In Colorado Revised Statutes, 24-75-201.5, add (1)(h) as follows:
Page 20, Line 2124-75-201.5. Revenue shortfalls - required actions by the
Page 21, Line 1governor with respect to the reserve. (1) (h) Whenever the revenue
Page 21, Line 2estimate for the current fiscal year, prepared in accordance
Page 21, Line 3with section 24-75-201.3 (2), indicates that general fund
Page 21, Line 4expenditures for that fiscal year based on appropriations then
Page 21, Line 5in effect will result in the use of an amount of the reserve
Page 21, Line 6required by section 24-75-201.1 (1)(d) that would result in that
Page 21, Line 7reserve equaling less than one billion dollars, the governor
Page 21, Line 8shall formulate a plan for reducing such general fund
Page 21, Line 9expenditures so that said reserve, as of the close of the fiscal
Page 21, Line 10year, will be at least one billion dollars. The governor shall
Page 21, Line 11promptly notify the general assembly of the plan and promptly
Page 21, Line 12implement the plan in accordance with section 24-2-102 (4) or 24-50-109.5 or any other lawful means.
Page 21, Line 13SECTION 8. In Colorado Revised Statutes, 29-1-603, add (6) as follows:
Page 21, Line 1429-1-603. Audits required. (6) (a) For the audit of a local
Page 21, Line 15government for any budget year in which a law enforcement
Page 21, Line 16agency that the local government establishes a budget for
Page 21, Line 17receives funds from the peace officer training and support fund
Page 21, Line 18established in section 24-33.5-121 (2), the audit report for that
Page 21, Line 19local government shall include evidence that the local
Page 21, Line 20government complied with the requirements of section
Page 21, Line 2124-33.5-121 (3). The evidence in the audit report shall include the
Page 21, Line 22amount distributed by the department of public safety to the
Page 21, Line 23law enforcement agency pursuant to section 24-33.5-121 (4), how
Page 21, Line 24much of that amount the law enforcement agency expended, and
Page 21, Line 25the purposes for which the law enforcement agency expended that amount.
Page 22, Line 1(b) A local government subject to an audit described in
Page 22, Line 2subsection (6)(a) of this section shall provide a copy of that
Page 22, Line 3audit to the department of public safety in a form and manner
Page 22, Line 4determined by the department of public safety. The department
Page 22, Line 5of public safety shall review a subset of the audits received
Page 22, Line 6pursuant to this subsection (6)(b) for compliance with the requirements of section 24-33.5-121 (3).
Page 22, Line 7(c) Any local government that receives funds from the
Page 22, Line 8peace officer training and support fund established in section
Page 22, Line 924-33.5-121(2) for any budget year and that fails to complete an
Page 22, Line 10audit required by this section for that budget year or that fails
Page 22, Line 11to provide a copy of that audit to the department of public
Page 22, Line 12safety as required by this section for that budget year or that
Page 22, Line 13is exempt from performing an audit by section 29-1-604 for that
Page 22, Line 14budget year, shall, on or before December 31 of the year in
Page 22, Line 15which the audit is not completed, provided, or for which the
Page 22, Line 16local government is exempted from the audit, in a form and
Page 22, Line 17manner determined by the department, provide a report to the
Page 22, Line 18department that states the amount distributed by the
Page 22, Line 19department of public safety to the law enforcement agency
Page 22, Line 20pursuant to section 24-33.5-121(4), how much of that amount the
Page 22, Line 21law enforcement agency expended, and the purposes for which the law enforcement agency expended that amount.
Page 22, Line 22SECTION 9. In Colorado Revised Statutes, repeal as added by House Bill 25-1290 32-9-160 (3).
Page 22, Line 23SECTION 10. In Colorado Revised Statutes, 39-22-104, add (4)(dd) as follows:
Page 23, Line 139-22-104. Income tax imposed on individuals, estates, and
Page 23, Line 2trusts - single rate - report - tax preference performance statement
Page 23, Line 3- legislative declaration - definitions - repeal. (4) There shall be subtracted from federal taxable income:
Page 23, Line 4(dd) (I) For income tax years commencing on or after
Page 23, Line 5January 1, 2026, for a taxpayer who receives a payment pursuant
Page 23, Line 6to section 24-33.5-121 (4) that does not qualify for the federal
Page 23, Line 7income tax exemption described in section 101 (h) of the internal
Page 23, Line 8revenue code, including a payment that does not qualify as a
Page 23, Line 9result of the exceptions described in section 101 (h)(2) of the
Page 23, Line 10internal revenue code,an amount equal to the amount received pursuant to section 24-33.5-121 (4); and
Page 23, Line 11(II) In accordance with section 39-21-304 (1), which
Page 23, Line 12requires each bill that creates a new tax expenditure to include
Page 23, Line 13a tax preference performance statement as part of a statutory
Page 23, Line 14legislative declaration, the general assembly finds and declares that:
Page 23, Line 15(A) The purpose of the income tax subtraction created in
Page 23, Line 16this subsection (4)(dd) is to provide tax relief for certain
Page 23, Line 17individuals, specifically taxpayers who have received a payment
Page 23, Line 18in connection with the death of a first responder pursuant to section 24-33.5-121 (4); and
Page 23, Line 19(B) The general assembly and the state auditor shall
Page 23, Line 20measure the effectiveness of the subtraction in achieving the
Page 23, Line 21purpose specified in subsection (4)(dd)(II)(A) of this section based
Page 23, Line 22on the number and aggregate amount of subtractions claimed;
Page 24, Line 1(III) The department of revenue shall maintain
Page 24, Line 2information about the number of taxpayers who claim the
Page 24, Line 3subtraction in a tax year and the aggregate amount of
Page 24, Line 4subtractions claimed in a tax year, in addition to any other
Page 24, Line 5information determined necessary by the department of
Page 24, Line 6revenue, to evaluate the effectiveness of the tax subtraction
Page 24, Line 7allowed in this subsection (4)(dd) in achieving the purpose
Page 24, Line 8specified in subsection (4)(dd)(II)(A) of this section, and shall
Page 24, Line 9provide this information upon request of the general assembly or the state auditor; and
Page 24, Line 10(IV) Notwithstanding section 39-21-304 (4), the tax
Page 24, Line 11subtraction allowed in this subsection (4)(dd) extends
Page 24, Line 12indefinitely until no less than five years after the executive
Page 24, Line 13director of the department of public safety disburses the last
Page 24, Line 14payment in connection with the death of a first responder pursuant to section 24-33.5-121 (4).
Page 24, Line 15SECTION 11. Appropriation. For the 2025-26 state fiscal year,
Page 24, Line 16$5,046,967 is appropriated to the department of public safety for use by
Page 24, Line 17the executive director's office. This appropriation is from the death
Page 24, Line 18benefit fund created in section 24-33.5-121 (4)(e)(I), C.R.S., and is based
Page 24, Line 19on an assumption that the office will require an additional 0.5 FTE. To
Page 24, Line 20implement this act, the office may use this appropriation for the death benefit program.
Page 24, Line 21SECTION 12. Safety clause. The general assembly finds,
Page 24, Line 22determines, and declares that this act is necessary for the immediate
Page 24, Line 23preservation of the public peace, health, or safety or for appropriations for
Page 25, Line 1the support and maintenance of the departments of the state and state institutions.