HOUSE BILL 22-1328
BY REPRESENTATIVE(S) Titone and McLachlan, Amabile, Bernett,
Esgar, Froelich, Herod, Hooton, Jodeh, Kipp, Lindsay, McCormick,
Valdez D.;
also SENATOR(S) Donovan, Bridges, Buckner, Fields, Ginal, Gonzales,
Hinrichsen, Jaquez Lewis, Lee, Pettersen, Story, Winter, Zenzinger,
Fenberg.
C
ONCERNING MODIFICATIONS TO THE "COLORADO LOANS FOR INCREASING
MAIN STREET BUSINESS ECONOMIC RECOVERY ACT".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-36-203, amend
(4)(b) and (4)(c) as follows:
24-36-203. Definitions. As used in this part 2, unless the context
otherwise requires:
(4) "Eligible borrower" means a business that, as determined by the
oversight board:
(b) Has at least five
ONE but fewer than one hundred employees;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (c) Can demonstrate that it had at least two consecutive years ONE
YEAR
of positive cash flow prior to February 29, 2020
AS DETERMINED BY
THE OVERSIGHT BOARD
; and
SECTION 2. In Colorado Revised Statutes, 24-36-205, amend
(3)(a)(II), (3)(b), (4)(a), (4)(b) introductory portion, (4)(b)(I), (4)(b)(II), and
(4)(d) as follows:
24-36-205. Small business recovery loan program - creation -
requirements - oversight. (3) (a) Notwithstanding any restriction on the
investment of state money set forth in section 24-36-113 or in any other
provision of law, subject to the availability of money in the small business
recovery fund and the requirements of this part 2:
(II) Subject to the limitations in subsection (3)(b) of this section, in
fiscal year
YEARS 2021-22, 2022-23, AND 2023-24, the state treasurer may
provide up to thirty A TOTAL OF FORTY million dollars in first loss capital to
a loan program or programs or to the Colorado credit reserve from the small
business recovery fund.
(b) The money provided under this subsection (3) must be provided
in tranches of ten million dollars or less, up to a maximum amount of fifty
million dollars in all tranches combined across fiscal years 2020-21 and
2021-22 THROUGH 2023-24. The state treasurer shall not provide a tranche
to a loan program or to the Colorado credit reserve until at least ninety
percent of the money in any prior tranche has been invested in small
business loans in accordance with subsection (4) of this section, as
determined by the oversight board and certified by the loan program
manager. Money provided to the Colorado credit reserve is considered
invested in small business loans for the purposes of this subsection (3)(b)
once it is paid to the Colorado housing and finance authority.
(4) Any contract for the administration of a loan program must
include the following terms in order to receive money provided by the state
treasurer pursuant to subsection (3) of this section:
(a) Except for money contributed to the Colorado credit reserve, the
money provided by the state treasurer in a single tranche shall not be
committed pursuant to a contract relating to a loan program until money is
PAGE 2-HOUSE BILL 22-1328 committed pursuant to a contract relating to a loan program from other
sources at a ratio of
AT LEAST four dollars from other sources for each one
dollar provided by the state. If a loan program manager does not secure
sufficient investments from other sources to meet this requirement within
the time allowed by a contract, the money provided by the state shall be
returned to the small business recovery fund.
(b) Except for money contributed to the Colorado credit reserve,
once the money in a tranche is matched in accordance with subsection (4)(a)
of this section, it must be used to make loans or purchase participation
interest in loans for working capital,
INCLUDING THE PURCHASE OF
EQUIPMENT
, to eligible borrowers, or other activities that accomplish the
same purpose. The oversight board shall consult with lending industry
leaders and representatives of small businesses with regard to subsections
(4)(b)(I) to (4)(b)(VI) of this section. Each loan must be subject to the
following terms:
(I) The loan must be in an amount of at least thirty
TEN thousand
dollars but not more than five hundred thousand dollars, as determined by
the oversight board;
(II) The loan must have a maximum initial maturity of five
UP TO
TEN
years, based on the need of the eligible borrower, with no penalty for
prepayment, as determined by the oversight board. The originating lender
may extend the term for purposes of restructuring the loan.
(d) (I) A loan program manager shall make every effort to achieve
targets
BENCHMARKS published by the oversight board pursuant to section
24-36-204 (8)(d) for the percentage of loans supported by the program that
are made to businesses owned by
SOCIALLY AND ECONOMICALLY
DISADVANTAGED INDIVIDUALS
, INCLUDING BUSINESSES OWNED BY women,
minorities, and veterans and to businesses located in rural counties. A loan
program manager shall consult with the minority business office within the
office of the governor and the division of business funding and incentives
within the office of economic development to develop an outreach strategy
for marketing the loan program to businesses owned by women, minorities,
and veterans and businesses located in rural counties.
(II) For money contributed to the Colorado credit reserve, the
oversight board may waive the requirements of this subsection (4)(d) or
PAGE 3-HOUSE BILL 22-1328 may establish alternative targets BENCHMARKS for the percentage of loans
supported by the program that are made to businesses owned by
SOCIALLY
AND ECONOMICALLY DISADVANTAGED INDIVIDUALS
, INCLUDING BUSINESSES
OWNED BY
women, minorities, and veterans and to businesses located in
rural counties.
SECTION 3. In Colorado Revised Statutes, 24-36-206, amend
(2)(b) and (9)(a) introductory portion as follows:
24-36-206. Small business recovery tax credits - authorization
to issue - terms - report. (2) (b) The department is authorized to issue tax
credit certificates to qualified taxpayers equal to the lesser of a
COMBINED
total face value of up to twenty-eight million dollars or COMBINED total
sales proceeds of up to twenty-one million dollars in fiscal year 2021-22;
except that, if money received by the state from the federal government has
been appropriated, transferred, or allocated to the fund for the purposes of
this part 2, the value of the tax sales proceeds that the department is
authorized to raise under this subsection (2)(b) in fiscal year 2021-22 is
reduced by the amount of federal money appropriated, transferred, or
allocated by the fund YEARS 2021-22 AND 2022-23.
(9) (a) The department shall provide a report to the division of
insurance in the department of regulatory agencies for each fiscal year in
which it issues tax credit certificates pursuant to this part 2 within thirty
days of
AFTER the close of the fiscal year ISSUANCE OF THE CREDITS. The
report must include:
SECTION 4. In Colorado Revised Statutes, 24-36-207, amend (2)
and (3) as follows:
24-36-207. Use of small business recovery tax credits - carry
over. (2) For a tax credit certificate issued in fiscal year 2021-22
OR FISCAL
YEAR
2022-23:
(a) The qualified taxpayer may claim
UP TO FIFTY PERCENT OF the
credit against premium tax liability incurred for a taxable year that begins
on or after January 1, 2027
JANUARY 1, 2023; except that a taxpayer may
not reduce its estimated tax payments in proportion to such credit prior to
July 1, 2027
JULY 1, 2023; AND
PAGE 4-HOUSE BILL 22-1328 (b) THE QUALIFIED TAXPAYER MAY CLAIM THE REMAINING AMOUNT
OF THE CREDIT AGAINST PREMIUM TAX LIABILITY INCURRED FOR A TAXABLE
YEAR THAT BEGINS ON OR AFTER
JANUARY 1, 2024; EXCEPT THAT A
TAXPAYER MAY NOT REDUCE THE TAXPAYER
'S ESTIMATED TAX PAYMENTS
IN PROPORTION TO SUCH CREDIT PRIOR TO
JULY 1, 2024.
(3) (a) The total credit to be applied by a qualified taxpayer in any
one year must not exceed the premium tax liability of the qualified taxpayer
for the taxable year. If the qualified taxpayer cannot use the entire amount
of the tax credit for the taxable year in which the taxpayer is eligible for the
credit, the excess may be carried over to succeeding taxable years and used
as a credit against the premium tax liability of the taxpayer for those taxable
years; except that:
(I) F
OR A CREDIT ISSUED IN FISCAL YEAR 2020-21, the credit may not
be carried over to any taxable year that begins after December 31, 2031;
AND
(II) FOR A CREDIT ISSUED IN FISCAL YEAR 2021-22 OR 2022-23, THE
CREDIT MAY NOT BE CARRIED OVER TO ANY TAXABLE YEAR THAT BEGINS
AFTER
DECEMBER 31, 2029.
(b) Any amount of the credit that is not timely claimed expires and
is not refundable.
SECTION 5. In Colorado Revised Statutes, 24-36-208, amend (4),
(5), and (6) as follows:
24-36-208. Small business recovery fund - repeal. (4) Beginning
in fiscal year 2025-26
YEAR 2027-28, the state treasurer shall credit any
unexpended and unencumbered money remaining in the fund at the end of
a fiscal year to the general fund.
(5) The state treasurer shall transfer all unexpended and
unencumbered money in the fund at the end of the fiscal year on June 30,
2029 JUNE 30, 2037, to the general fund.
(6) This section is repealed, effective July 1, 2029 JULY 1, 2037.
SECTION 6. In Colorado Revised Statutes, amend 24-36-210 as
PAGE 5-HOUSE BILL 22-1328 follows:
24-36-210. Repeal of part. This part 2 is repealed, effective
December 31, 2033 DECEMBER 31, 2040.
SECTION 7. Safety clause. The general assembly hereby finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 6-HOUSE BILL 22-1328