Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 24-1168.01 Rebecca Bayetti x4348
HOUSE BILL 24-1453
House Committees Senate Committees
Finance Finance
A BILL FOR AN ACT
C
ONCERNING THE RELOCATION OF THE CLIMBER ACT FROM THE101
DEPARTMENT OF THE TREASURY TO THE OFFICE OF ECONOMIC102
DEVELOPMENT.103
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
.)
The bill relocates the "Colorado Loans for Increasing Main Street
Business Economic Recovery Act" and renames it the "Colorado Loans
for Increasing Main Street Business Economic Resiliency Act"
(CLIMBER Act). Specifically, the bill moves the administration of the
CLIMBER Act loan program and insurance premium tax credits from the
SENATE
3rd Reading Unamended
May 3, 2024
SENATE
2nd Reading Unamended
May 2, 2024
HOUSE
3rd Reading Unamended
April 26, 2024
HOUSE
2nd Reading Unamended
April 25, 2024
HOUSE SPONSORSHIP
Ricks, Bacon, Duran, English, Epps, Hamrick, Joseph, Lieder, Lindsay, Lindstedt, Lukens,
Mabrey, McCluskie, Titone, Velasco, Vigil, Woodrow
SENATE SPONSORSHIP
Coleman and Kolker, Bridges, Cutter, Exum, Jaquez Lewis, Michaelson Jenet, Priola,
Sullivan
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. department of the treasury (department) to the office of economic
development (office) and transfers the associated powers, duties, and
functions of the administration of the CLIMBER Act from the department
to the office. Along with this relocation, the bill makes the following
changes to the CLIMBER Act:
! For the small business recovery and resiliency loan
program, removes the requirement that at least 90% of the
money in any prior tranche be invested in small business
loans before the office can provide another tranche to a
loan program or to the Colorado credit reserve;
! Allows the office to accept and expend gifts, grants,
donations, and federal funds to support the CLIMBER Act
and credits this money to the existing small business
recovery and resiliency fund; and
! Removes the future repeal of the CLIMBER Act and other
future repeal dates located within the individual provisions
of the CLIMBER Act.
The bill also makes a conforming amendment and repeals the
provisions of law where the CLIMBER Act was previously codified.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add with amended2
and relocated provisions part 6 of article 48.5 of title 24 as follows:3
PART 64
COLORADO LOANS FOR INCREASING MAIN STREET5
BUSINESS ECONOMIC RESILIENCY ACT6
24-48.5-601. [Formerly 24-36-201] Short title. The short title of7
this part 2
PART 6 is the "Colorado Loans for Increasing Main Street8
Business Economic Recovery RESILIENCY Act" or "CLIMBER Act". 9
24-48.5-602. [Formerly 24-36-202] Legislative declaration.10
(1) The general assembly hereby finds and declares that:11
(a) There are nearly one hundred forty thousand small businesses12
with employees in Colorado;13
(b) Small businesses in Colorado make up a disproportionately14
1453-2- larger share of the economy of the state compared to the United States as1
a whole;2
(c) Small businesses collectively employed over one million3
Coloradans before the public health crisis caused by COVID-19 began;4
(d) The COVID-19 pandemic has harmed public health and5
economic conditions across the entire world, including the state of6
Colorado, across metropolitan regions, small towns, and rural7
communities, and has had a particularly deep negative financial impact8
on small businesses, their employees, and their home communities;9
(e) The wide-ranging
AND CONTINUING health and economic10
impacts of the COVID-19 pandemic are unprecedented in recent history11
and create unique challenges for the state;12
(f) The health, safety, and welfare of the people of the state13
depend on the recovery of the state's economy, including the small14
businesses that make up a significant share of that economy;15
(g) On March 27, 2020, the president of the United States signed16
the federal "Coronavirus Aid, Relief, and Economic Security Act", also17
known as the "CARES Act", Pub.L. 116-136, to provide necessary18
federal funding for COVID-19 response and recovery;19
(h) The CARES Act, along with other federal laws and programs,20
provided many critical resources for small businesses, but those resources21
are not expected to be sufficient to sustain the large and diverse small22
business community in the state as it recovers over the next few years
23
from the COVID-19 crisis
AND THE RESULTING ONGOING ECONOMIC24
HARDSHIPS;25
(i) The governor's council on economic stabilization and growth,26
made up of volunteers from the private, public, and philanthropic sectors27
1453
-3- with diverse backgrounds from across Colorado, has recommended that1
the state seed the establishment of a fund of over one hundred million2
dollars to stimulate loans from lending institutions doing business in3
Colorado to Colorado small businesses to support the state's recovery and4
resiliency from the effects of the COVID-19 pandemic;5
(j) There is a well-functioning network of respected lending6
institutions across the state who are committed to the health of Colorado's7
economy and want to contribute their expertise and community8
relationships to support the success of Colorado's small business9
community;10
(k) The state will rely on those lending institutions as essential11
partners in a small business recovery loan program; and12
(l) Authorizing the creation of a small business recovery
AND13
RESILIENCY loan program seeded by money provided by the state will14
support Colorado small businesses affected by the COVID-19 crisis, and
15
assist in the overall economic recovery of the state,
AND SUPPORT16
RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES EMERGE .17
(2) The general assembly further finds and declares that:18
(a) While the loan program authorized by this part 2
PART 6 will19
be predominately capitalized by private sector investments, the limited20
use of state money obtained through the sale of insurance premium tax21
credits that will result in future state tax expenditures incurred for the22
purpose of supporting the program will, under the current economic23
conditions, result in the formation of more private capital at better terms24
for small business borrowers than would otherwise be available;25
(b) The loan program, if successful, has the potential to help small26
businesses survive the crisis caused by
THE COVID-19 pandemic, and to
27
1453
-4- protect jobs across the state, AND SUPPORT RESILIENCY FOR SMALL1
BUSINESSES AS NEW CHALLENGES EMERGE , which in turn will generate2
and sustain tax revenues to both the state and local governments;3
(c) Preserving jobs with small businesses will also reduce public4
expenditures on safety net programs and other forms of assistance needed5
by those who have become unemployed as a result of the crisis caused by6
COVID-19;7
(d) The state money contributed to the loan program therefore8
serves an important and discrete public purpose in securing the state's9
economic and overall recovery from the crisis caused by COVID-19
AND10
IN ENSURING THE STATE'S RESILIENCY AMONG SMALL BUSINESSES AS NEW11
CHALLENGES EMERGE; and12
(e) Supporting the state's recovery from the crisis caused by13
COVID-19
AND ENSURING THE STATE 'S RESILIENCY AMONG SMALL14
BUSINESSES AS NEW CHALLENGES EMERGE is the primary purpose of the15
loan program and outweighs any benefit to private individuals or entities.16
(3) The general assembly further finds and declares that:17
(a) The insurance premium tax credits authorized by this part 2
18
PART 6 as a method to provide money to the loan program are available19
only to insurance companies that incur premium tax liability in the state;20
(b) The tax credits can only be used by an insurance company to21
offset tax liability actually incurred by the insurance company;22
(c) The tax credits are not refundable and do not impose an23
obligation of payment in any future year upon the state;24
(d) The use of proceeds from the sale of insurance premium tax25
credits to seed the loan program allows the state to accomplish this26
important public purpose through the use of future tax expenditures and27
1453
-5- therefore:1
(I) Does not require the state to borrow money, extend or pledge2
the state's credit, or obligate the state to make future payments from state3
revenues; and4
(II) Does not otherwise create any multiple-fiscal year direct or5
indirect district debt or other financial obligation whatsoever for purposes6
of section 20 (4)(a) of article X of the state constitution.7
24-48.5-603. [Formerly 24-36-203] Definitions. As used in this8
part 2 PART 6, unless the context otherwise requires:9
(1) "Colorado credit reserve" means the Colorado credit reserve10
program described in section 24-46-104 (1)(n).11
(2) "Contract" means a contract entered into by the state treasurer12
OFFICE OF ECONOMIC DEVELOPMENT in accordance with section13
24-36-205 (1) SECTION 24-48.5-605 (1).14
(3) "Department" means the department of the treasury.15
(4) "Eligible borrower" means a business that, as determined by16
the oversight board:17
(a) Has its principal place of business in the state;18
(b) Has at least one but fewer than one hundred employees;19
(c) Can demonstrate that it had at least one year of positive cash20
flow as determined by the oversight board; and21
(d) Can demonstrate that it has a current debt-service coverage22
ratio of at least one-to-one or a higher level as determined by the23
oversight board.24
(5) "Loan program" means a THE small business recovery AND25
RESILIENCY loan program established in accordance with section26
24-36-205 SECTION 24-48.5-605.27
1453
-6- (6) "Loan program manager" means an entity the state treasurer1
OFFICE OF ECONOMIC DEVELOPMENT contracts with to establish and2
administer the loan program in accordance with section 24-36-205 (2)3
SECTION 24-48.5-605 (2).4
(7) "Office" of economic development means the Colorado office5
of economic development created in section 24-48.5-101.6
(8) "Oversight board" means the small business recovery
AND7
RESILIENCY loan program oversight board created in section 24-36-204
8
SECTION 24-48.5-604.9
(9) "Premium tax liability" means the liability imposed by section10
10-3-209 or 10-6-128, or, in the case of a repeal or reduction by the state11
of the liability imposed by section 10-3-209 or 10-6-128, any other tax12
liability imposed upon an insurance company by the state.13
(10) "Qualified taxpayer" means an insurance company authorized14
to do business in Colorado that has premium tax liability owing to the15
state and that purchases a tax credit under this part 2 PART 6. "Qualified16
taxpayer" also includes an insurance company that receives or assumes a17
tax credit transferred in accordance with section 24-36-206 (7)(e) or18
24-36-207 (6), SECTION 24-48.5-606 (7)(e) OR 24-48.5-607 (6), or that19
receives or assumes a tax credit as an affiliate of a qualified taxpayer or20
transferee. For purposes of this subsection (10) PART 6, "affiliate" has the21
same meaning as set forth in section 10-3-801 (1).22
(11) "Small business recovery
AND RESILIENCY fund" or "fund"23
means the small business recovery
AND RESILIENCY fund established in24
section 24-36-208
SECTION 24-48.5-608.25
(12) "Small business recovery tax credit" or "tax credit" means the26
tax credit created in section 24-36-206 SECTION 24-48.5-606.27
1453
-7- (13) "Tax credit sale proceeds" or "sale proceeds" means the1
money or other liquid asset acceptable to the state treasurer that a2
qualified taxpayer pays to the department
AND that is deposited in the3
small business recovery
AND RESILIENCY fund. 4
24-48.5-604. [Formerly 24-36-204] Small business recovery and5
resiliency loan program oversight board - creation - report. (1) The6
small business recovery
AND RESILIENCY loan program oversight board7
is hereby created in the department
DIVISION OF BUSINESS FUNDING AND8
INCENTIVES WITHIN THE OFFICE to help establish and oversee the terms9
and conditions of a contract or contracts through which the treasurer10
OFFICE may provide first loss capital to a loan program or the Colorado11
credit reserve. This section does not prohibit a loan program manager of12
a specific loan program or the Colorado credit reserve from establishing13
a separate investment advisory committee for that loan program.14
(2) (a) The oversight board consists of five members, as follows:15
(I) The state treasurer or the state treasurer's designee;16
(II) The director of the minority business office created in section17
24-49.5-102, on behalf of the office of economic development, or the18
director's designee;19
(III) One member appointed by the speaker of the house of20
representatives;21
(IV) One member appointed by the president of the senate; and22
(V) One member appointed by the governor.23
(b) The appointing authorities shall make their initial24
appointments to the oversight board no later than July 31, 2020.25
(c) The members appointed pursuant to subsection (2)(a) of this26
section must have substantial private sector experience in commercial27
1453
-8- banking or capital market activities and must have obtained1
executive-level positions in these industries.2
(d) The chair of the governor's council on economic stabilization3
and growth and the co-chairs of the council's financial services committee4
shall consult with and provide recommendations on initial appointments5
to the appointing authorities.6
(3) Each member of the oversight board who is appointed7
pursuant to subsection (2) of this section serves at the pleasure of the8
official who appointed the member. The term of appointment is three9
years. An appointed member may serve multiple terms. In the event of a10
vacancy in an appointed position on the oversight board, a new member11
shall MUST be appointed in the same manner as provided in subsections12
(2)(a)(III) to (2)(a)(V) of this section for the unexpired portion of the13
term.14
(4) Each member of the oversight board serves without15
compensation but is entitled to reimbursement for actual, reasonable, and16
necessary expenses incurred in the performance of his or her THE17
MEMBER'S duties as a member of ON the oversight board.18
(5) The state treasurer, or the state treasurer's designee, shall serve19
SERVES as the chair of the oversight board.20
(6) The oversight board shall meet at least once every quarter. The21
chair may call such additional meetings as are necessary for the oversight22
board to complete its duties.23
(7) The oversight board is a state public body subject to part 4 of24
article 6 of this title 24. In addition to any other requirements, the25
oversight board shall hold meetings open to the public, publish the agenda26
for each meeting in advance, keep and publish minutes from each27
1453
-9- meeting, provide advanced notification of meeting times to banking trade1
associations and other groups that request notification, and receive2
written and public testimony at each meeting.3
(8) The oversight board's activities with regard to a contract or4
contracts for the provision of state money for a loan program established5
in accordance with section 24-36-205 SECTION 24-48.5-605 include, at a6
minimum:7
(a) Consulting with the state treasurer OFFICE AND THE DIVISION8
OF BUSINESS FUNDING AND INCENTIVES WITHIN THE OFFICE on the9
selection of a loan program manager;10
(b) In consultation with lending industry leaders and11
representatives of small businesses, determining specific terms applicable12
to a loan program as required in section 24-36-205 SECTION 24-48.5-605,13
which terms must be designed in good faith to procure the participation14
of lending institutions and be consistent with regulatory requirements and15
underwriting criteria, including the duration of the geographic restriction16
of money in a loan program;17
(c) Providing guidance and input throughout the implementation18
of a loan program;19
(d) Establishing and publishing targets for the percentage of loans20
supported by a loan program that are made to businesses owned by21
women, minorities, and veterans and to businesses located in rural22
counties. In establishing the targets required by this subsection (8)(d), the23
oversight board shall consult with the minority business office within the24
office of the governor and
WITH the division of business funding and25
incentives within the office. of economic development
26
(e) Regularly reviewing progress in achieving the targets27
1453
-10- established pursuant to subsection (8)(d) of this section and making1
adjustments to a loan program to help achieve the targets if needed; and2
(f) Providing such additional oversight and creating policies and3
procedures as may be necessary to ensure that the program complies with4
the requirements of this part 2 PART 6 and fulfills its purpose PURPOSES5
of supporting the state's recovery from the COVID-19 pandemic by6
assisting Colorado small businesses in recovering from the crisis caused7
by COVID-19
AND OF ENSURING RESILIENCY AMONG SMALL BUSINESSES8
AS NEW CHALLENGES EMERGE .9
(9) The oversight board shall consult with small businesses in10
establishing the criteria for eligible borrowers pursuant to section
11
24-36-203 (4) SECTION 24-48.5-603 (4).12
(10) The oversight board shall adopt a conflict of interest policy13
for its members in order to prevent those who serve on the board from14
profiting or otherwise benefiting from eligible loans.15
(11) A member of the oversight board may assist in raising money16
or investments for a loan program without compensation.17
(12) (a) The oversight board shall submit a written report on the18
implementation of the loan program to the joint budget committee. The19
oversight board shall submit its first report on or before November 30,20
2020, and shall submit the report each six months thereafter for a period21
of two years. After the report submitted November 30, 2022, the22
oversight board shall submit the report annually, on or before November23
30 of each year. The oversight board shall also submit the report once24
each year in fiscal years 2020-21 and 2021-22 to the business affairs and25
labor committee of the house of representatives or any successor26
committee, and the business, labor, and technology committee of the27
1453
-11- senate, or any successor committee COMMITTEES. Notwithstanding the1
requirement in section 24-1-136 (11)(a)(I), the requirement to submit the2
report required in this subsection (11) continues until this section is3
repealed.4
(b) The report must include, at a minimum, information on the5
following:6
(I) The number and size of loans made;7
(II) The geographic distribution of loans made;8
(III) The distribution of loans made by business sector;9
(IV) The demographics of the owners of the businesses receiving10
loans, including the number of businesses owned by women, minorities,11
and veterans;12
(V) The number of loans made to rural businesses;13
(VI) The size of the businesses receiving loans;14
(VII) The number of people employed by the businesses receiving15
loans;16
(VIII) Distributions or revenue received by the state from the17
program;18
(IX) The financial performance of the fund;19
(X) The default rates for loans made by the program;20
(XI) Borrower interest rates on the loans and an explanation of21
how the rates comply with the requirements of section 24-36-20522
(4)(b)(V) SECTION 24-48.5-605 (4)(b)(V); and23
(XII) Any other information requested by the chair of the joint24
budget committee,
OR BY the business affairs and labor committee of the25
house of representatives or any successor committee,
or the business,26
labor, and technology committee of the senate, or any successor27
1453
-12- committee COMMITTEES.1
(c) The oversight board shall make a presentation to a joint2
meeting of the business affairs and labor committee of the house of3
representatives and the business, labor, and technology committee of the4
senate, or any successor committees, at least once each fiscal year or more5
often if requested by the chairs of the committees.6
(13) This section is repealed, effective June 30, 2029.7
24-48.5-605. [Formerly 24-36-205] Small business recovery and8
resiliency loan program - creation - requirements - oversight.9
(1) (a) The state treasurer OFFICE is authorized to enter into a contract or10
contracts to establish a small business recovery
AND RESILIENCY loan11
program in accordance with this part 2
PART 6.12
(b) The purpose of the loan program is to support the state's13
recovery from the economic crisis caused by COVID-19 through14
leveraging private investment to support Colorado small businesses15
recovering from the crisis caused by COVID-19 by making loans,16
acquiring participation interest in loans, leveraging private small business17
lending through the Colorado credit reserve program, or other activities18
that accomplish the same purpose. T
HE LOAN PROGRAM IS ALSO DESIGNED19
TO SUPPORT RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES20
EMERGE. The loan program shall
MAY only make loans directly if federal21
or state bank regulators prohibit the banking industry from originating22
loans for the loan program.23
(2) The state treasurer OFFICE may contract with the Colorado24
housing and finance authority created in part 7 of article 4 of title 29 or25
with a bank, nonprofit organization, nondepository community26
development financial institution, business development corporation,27
1453
-13- certified public accountant firm, or fund manager to administer a loan1
program. If the state treasurer OFFICE contracts with an entity other than2
the Colorado housing and finance authority to administer a loan program,3
the state treasurer OFFICE shall use an open and competitive process to4
select the entity. The state treasurer OFFICE shall consult with the director5
of the office of economic development and the oversight board in6
selecting and contracting with a loan program manager.7
(3) (a) Notwithstanding any restriction on the investment of state8
money set forth in section 24-36-113 or in any other provision of law,9
subject to the availability of money in the small business recovery
AND10
RESILIENCY fund and the requirements of this part 2
PART 6, THE OFFICE11
MAY PROVIDE FIRST LOSS CAPITAL TO A LOAN PROGRAM OR PROGRAMS OR12
TO THE COLORADO CREDIT RESERVE FROM THE SMALL BUSINESS13
RECOVERY AND RESILIENCY FUND .14
(I) In fiscal year 2020-21, the state treasurer may provide up to15
thirty million dollars in first loss capital to a loan program or programs or16
to the Colorado credit reserve from the small business recovery fund; and17
(II) Subject to the limitations in subsection (3)(b) of this section,18
in fiscal years 2021-22, 2022-23, and 2023-24, the state treasurer may19
provide up to a total of forty million dollars in first loss capital to a loan20
program or programs or to the Colorado credit reserve from the small21
business recovery fund.22
(b) The money provided under this subsection (3) must be23
provided in tranches of ten million dollars or less. up to a maximum24
amount of fifty million dollars in all tranches combined across fiscal25
years. 2020-21 through 2023-24. The state treasurer shall not provide a26
tranche to a loan program or to the Colorado credit reserve until at least27
1453
-14- ninety percent of the money in any prior tranche has been invested in1
small business loans in accordance with subsection (4) of this section, as2
determined by the oversight board and certified by the loan program3
manager. Money provided to the Colorado credit reserve is considered4
invested in small business loans for the purposes of this subsection (3)(b)5
once it is paid to the Colorado housing and finance authority.6
(4) Any contract for the administration of a loan program must7
include the following terms in order to receive money provided by the8
state treasurer OFFICE pursuant to subsection (3) of this section:9
(a) Except for money contributed to the Colorado credit reserve,10
the money
FROM THE SMALL BUSINESS RECOVERY AND RESILIENCY FUND11
provided by the state treasurer
OFFICE in a single tranche shall MAY not12
be committed pursuant to a contract relating to a loan program until13
money is committed pursuant to a contract relating to a loan program14
from other sources at a ratio of at least four dollars from other sources for15
each one dollar provided by the state
FROM THE SMALL BUSINESS16
RECOVERY AND RESILIENCY FUND . If a loan program manager does not17
secure sufficient investments from other sources to meet this requirement18
within the time allowed by a contract, the money provided by the state19
shall
MUST be returned to the small business recovery AND RESILIENCY20
fund.21
(b) Except for money contributed to the Colorado credit reserve,22
once the money in a tranche is matched in accordance with subsection23
(4)(a) of this section, it must be used to make loans or purchase24
participation interest in loans for working capital, including the purchase25
of equipment, to eligible borrowers, or other activities that accomplish the26
same purpose. The oversight board shall consult with lending industry27
1453
-15- leaders and representatives of small businesses with regard to subsections1
(4)(b)(I) to (4)(b)(VI) of this section. Each loan must be subject to the2
following terms:3
(I) The loan must be in an amount of at least ten thousand dollars4
but not more than five hundred thousand dollars, as determined by the5
oversight board;6
(II) The loan must have a maximum initial maturity of up to ten7
years, based on the need of the eligible borrower, with no penalty for8
prepayment, as determined by the oversight board. The originating lender9
may extend the term for purposes of restructuring the loan;10
(III) The principal must be amortized over the term of the loan or11
a longer period, as determined by the oversight board;12
(IV) Principal and interest payments may be deferred for up to one13
year, as determined by the oversight board, with the unpaid interest being14
capitalized. Deferrals must be limited to circumstances of hardship15
created by the COVID-19 pandemic
OR BASED ON ONGOING ECONOMIC16
CONDITIONS.17
(V) The loan must carry an interest rate that is lower than would18
otherwise be available on a risk-adjusted basis from a commercial lender19
or that bears terms that are not otherwise available from a commercial20
lender, as determined by the oversight board; and21
(VI) The eligible borrower may provide a personal guarantee,22
collateral, or other security as determined by the oversight board, which23
may be subordinate to existing debt.24
(c) (I) In order to
TO ensure geographic equity, each tranche of25
loan funding must be subject to an initial period of time in which a26
portion of the money is allocated to each county on a basis proportional27
1453
-16- to the county's share of small businesses relative to the state, the county's1
share of small business employees relative to the state, the county's share2
of small business personal property relative to the state, or other similar3
metrics as determined by the oversight board, or based on a formula4
established under subsection (4)(c)(IV) of this section. The money5
allocated to each county must be reserved for applications from eligible6
borrowers located in that county for the initial period of time. For the7
purposes of this subsection (4)(c), an eligible borrower is considered to8
be located in the county in which it has its principal place of business, as9
reflected in its most recent filing with the secretary of state or subject to10
such other documentation as the oversight board establishes. The11
oversight board shall determine the amount of time in which the money12
in each tranche is subject to a geographic restriction under this subsection13
(4)(c)(I).14
(II) Once the time period established by the oversight board under15
subsection (4)(c)(I) of this section has passed, all money remaining in the16
tranche is available to eligible borrowers on a statewide basis.17
(III) For money contributed to the Colorado credit reserve, the18
oversight board may waive the requirements of this subsection (4)(c) or19
establish alternative geographic distribution requirements or targets.20
(IV) For any tranche of loan funding, the oversight board may, in21
its discretion, establish an alternative formula for the allocation of funds22
MONEY to counties for purposes of subsection (4)(c)(I) of this section that23
accounts for how affected each county has been by the COVID-1924
pandemic and its impacts
OR BASED ON ONGOING ECONOMIC CONDITIONS .25
(d) (I) A loan program manager shall make every effort to achieve26
benchmarks published by the oversight board pursuant to section
27
1453
-17- 24-36-204 (8)(d) SECTION 24-48.5-604 (8)(d) for the percentage of loans1
supported by the program that are made to businesses owned by socially2
and economically disadvantaged individuals, including businesses owned3
by women, minorities, and veterans, and to businesses located in rural4
counties. A loan program manager shall consult with the minority5
business office within the office of the governor and the division of6
business funding and incentives within the office of economic7
development to develop an outreach strategy for marketing the loan8
program to businesses owned by women, minorities, and veterans and9
businesses located in rural counties.10
(II) For money contributed to the Colorado credit reserve, the11
oversight board may waive the requirements of this subsection (4)(d) or12
may establish alternative benchmarks for the percentage of loans13
supported by the program that are made to businesses owned by socially14
and economically disadvantaged individuals, including businesses owned15
by women, minorities, and veterans, and to businesses located in rural16
counties.17
(e) A loan program manager shall work with the division of18
business funding and incentives within the office of economic19
development to align the program with other access to capital programs20
in the state.21
(5) If the money in a tranche is not fully invested in small business22
loans as determined by the oversight board in the time period allowed23
under a contract, the portion of the unused money provided by the state24
shall MUST be returned to the small business recovery AND RESILIENCY25
fund.26
(6) Distributions or revenue paid to the state pursuant to a contract27
1453
-18- under this section shall MUST be deposited in the small business recovery1
AND RESILIENCY fund. except that, if such distributions or revenue are2
paid after the small business recovery fund is repealed, the money shall3
be paid to the state treasurer, who shall credit the money to the general4
fund5
(7) The loan program manager shall report on the implementation6
of the loan program to the oversight board at least quarterly, within one7
month after the end of each calendar quarter, or more often if requested8
by the oversight board. The reports REPORT must include the information9
necessary to allow the
OVERSIGHT board to provide the reports required10
in section 24-36-204 (12)
SECTION 24-48.5-604 (12), and any additional11
information requested by the board. 12
24-48.5-606. [Formerly 24-36-206] Small business recovery tax13
credits - authorization to issue - terms - report. (1) A qualified14
taxpayer may purchase small business recovery tax credits from the15
department in accordance with this section and may apply the tax credits16
against its premium tax liability in accordance with section 24-36-20717
SECTION 24-48.5-607.18
(2) (a) The department is authorized to issue tax credit certificates19
to qualified taxpayers equal to the lesser of a total face value of up to20
forty million dollars or total sales proceeds of up to thirty million five21
hundred thousand dollars in fiscal year 2020-21.22
(b) The department is authorized to issue tax credit certificates to23
qualified taxpayers equal to the lesser of a combined total face value of24
up to twenty-eight million dollars or combined total sales proceeds of up25
to twenty-one million dollars in fiscal years 2021-22 and 2022-23.26
(c) The department may contract with an independent third party27
1453
-19- to conduct or consult on a bidding process among qualified taxpayers to1
purchase the tax credits.2
(d) The department shall consult with insurance companies in3
advance of issuing any tax credits in accordance with this section.4
(3) An insurance company authorized to do business in Colorado5
seeking to purchase tax credits must apply to the department in the6
manner prescribed by the department.7
(4) Using procedures adopted by the department or, if applicable,8
by an independent third party, each insurance company that submits an9
application shall make a timely and irrevocable offer, contingent only10
upon the department's issuance to the insurance company of the tax credit11
certificates, to make a specified purchase payment amount to the12
department on dates specified by the department. The offer must include13
all of the following:14
(a) The requested amount of tax credits, which must not be less15
than any minimum amount established in procedures by the department16
or, if applicable, the independent third party;17
(b) The qualified taxpayer's proposed tax credit purchase amount18
for each tax credit dollar requested. The minimum proposed tax credit19
purchase amount must be either:20
(I) The percentage of the requested dollar amount of tax credits21
that the department and OR, if applicable, the independent third party22
determines to be consistent with market conditions as of the offer date;23
or24
(II) If no amount is established by the department or
THE25
independent third party pursuant to subsection (4)(b)(I) of this section,26
seventy-five percent of the requested dollar amount of tax credits; and27
1453
-20- (c) Any other information THAT the department or, if applicable,1
THE independent third party requires.2
(5) The department shall provide written notice to each insurance3
company that submits an application indicating whether or not the4
insurance company has been approved as a purchaser of tax credits and,5
if so, the amount of tax credits allocated and the date by which payment6
of the tax credit sale proceeds must be made.7
(6) On receipt of payment of the sale proceeds, the department8
shall issue to each qualified taxpayer a tax credit certificate. The tax9
credit certificate must state all of the following:10
(a) The total amount of premium tax credits that the qualified11
taxpayer may claim;12
(b) The amount that the qualified taxpayer has paid or agreed to13
pay in return for the issuance of the tax credit certificates and the date of14
the payment;15
(c) The dates on which the tax credits will be available for use by16
the qualified taxpayer;17
(d) Any penalties or other remedies for noncompliance;18
(e) The procedures to be used for transferring or assuming the tax19
credits in accordance with subsection (7)(e) of this section or section20
24-36-207 (6) SECTION 24-48.5-607 (6), or between affiliates; as defined21
in section 10-3-801 (1)22
(f) The serial number of the tax credit certificate; and23
(g) Any other requirements deemed necessary by the department24
as a condition of issuing the tax credit certificate.25
(7) (a) The department shall not issue a tax credit certificate to any26
qualified taxpayer that fails to provide the tax credit sale proceeds within27
1453
-21- the time SPECIFIED BY the department. specifies1
(b) A qualified taxpayer that fails to provide the tax credit sale2
proceeds within the time
SPECIFIED BY the department specifies
is subject3
to a penalty equal to ten percent of the amount of the purchase price that4
remains unpaid. The penalty must be paid to the department within thirty5
days after demand.6
(c) The department may offer to reallocate the defaulted tax7
credits among other qualified taxpayers so that the result after reallocation8
is the same as if the initial allocation had been performed without9
considering the tax credit allocation to the defaulting qualified taxpayer.10
(d) If the reallocation of tax credits under subsection (7)(c) of this11
section results in the payment by another qualified taxpayer of the amount12
of tax credit sale proceeds not paid by the defaulting qualified taxpayer,13
the department may waive the penalty imposed under subsection (7)(b)14
of this section.15
(e) A qualified taxpayer that fails to pay the tax credit sale16
proceeds within the time specified
BY THE DEPARTMENT may avoid the17
imposition of the penalty by transferring the allocation of tax credits to a18
new or existing qualified taxpayer within thirty days after the due date of19
the defaulted installment. Any transferee of an allocation of tax credits of20
a defaulting qualified taxpayer under this subsection (7) shall agree to pay21
the tax credit sale proceeds within five days after the date of the transfer.22
(8) The tax credit sale proceeds provided by a qualifying taxpayer23
in return for a tax credit certificate must be deposited in the small24
business recovery
AND RESILIENCY fund.25
(9) (a) The department shall provide a report to the division of26
insurance in the department of regulatory agencies for each fiscal year in27
1453
-22- which it issues tax credit certificates pursuant to this part 2 PART 6 within1
thirty days after the issuance of the credits. The report must include:2
(I) The name and identifying number issued by the national3
association of insurance commissioners, or any successor organization,4
of each qualified taxpayer to which the department issued a tax credit5
certificate;6
(II) The total amount of the tax credit allocated to the qualified7
taxpayer; and8
(III) The serial number of the tax credit certificate issued to the9
qualified taxpayer.10
(b) The department shall maintain records of each tax credit11
certificate issued, transferred, or assumed that are sufficient to allow the12
division of insurance in the department of regulatory agencies to verify13
the issuance and ownership of the credit.14
24-48.5-607. [Formerly 24-36-207] Use of small business15
recovery tax credits - carry over. (1) For a tax credit certificate issued16
in fiscal year 2020-21:17
(a) The qualified taxpayer may claim up to fifty percent of the18
credit against premium tax liability incurred for a taxable year that begins19
on or after January 1, 2025; except that a taxpayer may not reduce its20
estimated tax payments in proportion to such credit prior to July 1, 2025;21
and22
(b) The qualified taxpayer may claim the remaining amount of the23
credit against premium tax liability incurred for a taxable year that begins24
on or after January 1, 2026; except that a taxpayer may not reduce its25
estimated tax payments in proportion to such credit prior to July 1, 2026.26
(2) For a tax credit certificate issued in fiscal year 2021-22 or27
1453
-23- fiscal year 2022-23:1
(a) The qualified taxpayer may claim up to fifty percent of the2
credit against premium tax liability incurred for a taxable year that begins3
on or after January 1, 2023; except that a taxpayer may not reduce its4
estimated tax payments in proportion to such credit prior to July 1, 2023;5
and6
(b) The qualified taxpayer may claim the remaining amount of the7
credit against premium tax liability incurred for a taxable year that begins8
on or after January 1, 2024; except that a taxpayer may not reduce the9
taxpayer's estimated tax payments in proportion to such credit prior to10
July 1, 2024.11
(3) (a) The total credit to be applied by a qualified taxpayer in any12
one year must not exceed the premium tax liability of the qualified13
taxpayer for the taxable year. If the qualified taxpayer cannot use the14
entire amount of the tax credit for the taxable year in which the taxpayer15
is eligible for the credit, the excess may be carried over to succeeding16
taxable years and used as a credit against the premium tax liability of the17
taxpayer for those taxable years; except that:18
(I) For a credit issued in fiscal year 2020-21, the credit may not be19
carried over to any taxable year that begins after December 31, 2031; and20
(II) For a credit issued in fiscal year 2021-22 or 2022-23, the21
credit may not be carried over to any taxable year that begins after22
December 31, 2029.23
(b) Any amount of the credit that is not timely claimed expires and24
is not refundable.25
(4) A qualified taxpayer claiming a credit under this part 2 PART26
6 shall submit the tax credit certificate with its tax return.27
1453
-24- (5) A qualified taxpayer claiming a tax credit under this part 21
shall PART 6 WILL not be required to pay any additional or retaliatory tax2
as a result of claiming the credit.3
(6) If a qualified taxpayer holding an unclaimed tax credit is part4
of a merger, acquisition, or line of business divestiture transaction, the tax5
credit may be transferred to and assumed by the resulting entity if the6
resulting entity is an insurance company authorized to do business in7
Colorado that has premium tax liability. The qualified taxpayer that8
originally purchased the credit and the resulting entity shall notify the9
department in writing of the transfer or assumption of the credit in10
accordance with procedures adopted by the department. The department11
shall provide a copy of the notice to the division of insurance in the12
department of regulatory agencies and shall maintain a record of the13
transfer or assumption of the tax credit. The transfer or assumption of the14
tax credit does not affect the time schedule for claiming the tax credit as15
provided in this section.16
24-48.5-608. [Formerly 24-36-208] Small business recovery and17
resiliency fund. (1) The small business recovery
AND RESILIENCY fund18
is hereby created in the state treasury. The fund consists of:19
(a) Tax credit sale proceeds received from qualified taxpayers and20
deposited in the fund pursuant to section 24-36-205
SECTION 24-48.5-605;21
(b) Distributions, revenue, or money returned to the state from a22
loan program established pursuant to section 24-36-205 SECTION23
24-48.5-605 and deposited in the fund; and24
(c) Any other money that the general assembly may appropriate25
or transfer to the fund;
AND26
(d) A
NY GIFTS, GRANTS, DONATIONS, OR FEDERAL FUNDS RECEIVED27
1453
-25- PURSUANT TO SUBSECTION (7) OF THIS SECTION.1
(2) The state treasurer shall credit all interest and income derived2
from the deposit and investment of money in the small business recovery3
AND RESILIENCY fund to the fund.4
(3) Money in the fund is continuously appropriated to the5
department
OFFICE for the purposes specified in this part 2 PART 6. The6
department OFFICE may expend money in the fund to pay for its direct and7
indirect costs in implementing and administering this part 2 PART 6.8
(4) Beginning in fiscal year 2027-28, the state treasurer shall9
credit any unexpended and unencumbered money remaining in the fund10
at the end of a fiscal year to the general fund.11
(5) The state treasurer shall transfer all unexpended and12
unencumbered money in the fund at the end of the fiscal year on June 30,13
2037, to the general fund.14
(6) This section is repealed, effective July 1, 2037.15
(7) T
HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,16
OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF17
THIS PART 6. THE OFFICE MAY ACCEPT AND EXPEND ANY FEDERAL MONEY18
MADE AVAILABLE FOR ANY PURPOSE CONSISTENT WITH THE PROVISIONS19
OF THIS PART 6. THE OFFICE SHALL TRANSMIT ALL MONEY RECEIVED20
THROUGH GIFTS, GRANTS, DONATIONS, OR FEDERAL MONEY TO THE STATE21
TREASURER, WHO SHALL CREDIT THE MONEY TO THE SMALL BUSINESS22
RECOVERY AND RESILIENCY FUND .23
24-48.5-609. Transfer of functions - continuity of existence.24
(1) O
N SEPTEMBER 1, 2024, THE POWERS, DUTIES, AND FUNCTIONS OF THE25
DEPARTMENT IN CONNECTION WITH THE SMALL BUSINESS RECOVERY AND26
RESILIENCY LOAN PROGRAM PURSUANT TO THE FORMER PART 2 OF27
1453
-26- ARTICLE 36 OF THIS TITLE 24 ARE TRANSFERRED TO THE OFFICE PURSUANT1
TO THIS SECTION.2
(2) (a) O
N AND AFTER SEPTEMBER 1, 2024, THE OFFICERS AND3
EMPLOYEES OF THE DEPARTMENT WHOSE POWERS , DUTIES, AND4
FUNCTIONS CONCERN THE SMALL BUSINESS RECOVERY AND RESILIENCY5
LOAN PROGRAM AND WHOSE EMPLOYMENT IS DEEMED NECESSARY TO6
CARRY OUT THE SMALL BUSINESS RECOVERY AND RESILIENCY LOAN7
PROGRAM ARE TRANSFERRED TO THE DIVISION OF BUSINESS FUNDING AND8
INCENTIVES WITHIN THE OFFICE AND BECOME EMPLOYEES THEREOF .9
(b) A
NY EMPLOYEES WHO ARE TRANSFERRED TO THE OFFICE10
PURSUANT TO THIS SUBSECTION (2) AND WHO ARE CLASSIFIED EMPLOYEES11
IN THE STATE PERSONNEL SYSTEM SHALL RETAIN ALL RIGHTS TO THE12
PERSONNEL SYSTEM AND RETIREMENT BENEFITS PURSUANT TO THE LAWS13
OF THE STATE, AND THEIR SERVICES SHALL BE DEEMED TO HAVE BEEN14
CONTINUOUS. ALL TRANSFERS AND ANY ABOLISHMENT OF POSITIONS IN15
THE STATE PERSONNEL SYSTEM SHALL BE MADE AND PROCESSED IN16
ACCORDANCE WITH STATE PERSONNEL SYSTEM LAWS AND REGULATIONS .17
(3) O
N OR BEFORE SEPTEMBER 1, 2024, ALL ITEMS OF PROPERTY,18
REAL AND PERSONAL , INCLUDING OFFICE FURNITURE AND FIXTURES ,19
BOOKS, DOCUMENTS, AND RECORDS OF THE DEPARTMENT PERTAINING TO20
THE POWERS, DUTIES, AND FUNCTIONS TRANSFERRED TO THE OFFICE ARE21
TRANSFERRED TO AND BECOME THE PROPERTY OF THE OFFICE .22
(4) W
HENEVER THE DEPARTMENT OR THE STATE TREASURER IS23
REFERRED TO OR DESIGNATED BY A CONTRACT OR OTHER DOCUMENT IN24
CONNECTION WITH THE POWERS , DUTIES, AND FUNCTIONS TRANSFERRED25
TO THE OFFICE PURSUANT TO THIS SECTION , SUCH REFERENCE OR26
DESIGNATION WILL BE DEEMED TO APPLY TO THE OFFICE , AS APPLICABLE.27
1453
-27- ALL CONTRACTS ENTERED INTO BY THE DEPARTMENT OR THE STATE1
TREASURER PRIOR TO SEPTEMBER 1, 2024, IN CONNECTION WITH THE2
SMALL BUSINESS RECOVERY AND RESILIENCY LOAN PROGRAM ARE HEREBY3
VALIDATED, WITH THE OFFICE SUCCEEDING TO ALL THE RIGHTS AND4
OBLIGATIONS OF SUCH CONTRACTS . ANY APPROPRIATIONS OF MONEY5
FROM PRIOR FISCAL YEARS OPEN TO SATISFY OBLIGATIONS INCURRED6
PURSUANT TO SUCH CONTRACTS ARE TRANSFERRED AND APPROPRIATED7
TO THE OFFICE FOR THE PAYMENT OF SUCH OBLIGATIONS .8
(5) A
LL POLICIES AND GUIDELINES OF THE DEPARTMENT IN9
CONNECTION WITH THE POWERS , DUTIES, AND FUNCTIONS TRANSFERRED10
TO THE OFFICE PURSUANT TO THIS SECTION CONTINUE TO BE EFFECTIVE11
UNTIL REVISED, AMENDED, REPEALED, OR NULLIFIED PURSUANT TO LAW.12
(6) T
HE RELOCATION OF THE CLIMBER ACT FROM THE13
DEPARTMENT TO THE OFFICE PURSUANT TO THIS PART 6 DOES NOT AFFECT14
THE VALIDITY OF ANY AGREEMENTS ENTERED INTO BY OR TAX CREDIT15
CERTIFICATES ISSUED BY THE STATE TREASURER OR THE DEPARTMENT16
PURSUANT TO THE AUTHORITY CONTAINED IN PART 2 OF ARTICLE 36 OF17
TITLE 24 AS IT EXISTED PRIOR TO SEPTEMBER 1, 2024.18
SECTION 2. Repeal of provisions being relocated in this act.19
In Colorado Revised Statutes, repeal 24-36-201, 24-36-202, 24-36-203,20
24-36-204, 24-36-205, 24-36-206, 24-36-207, and 24-36-208.21
SECTION 3. Repeal of provisions not being relocated in this22
act. In Colorado Revised Statutes, repeal 24-36-209 and 24-36-210 as23
follows:24
24-36-209. Office of economic development. The office of
25
economic development shall assist the state treasurer and the department26
in implementing this part 2.27
1453
-28- 24-36-210. Repeal of part. This part 2 is repealed, effective1
December 31, 2040.2
SECTION 4. In Colorado Revised Statutes, 24-75-402, amend3
(5)(qq) as follows:4
24-75-402. Cash funds - limit on uncommitted reserves -5
reduction in the amount of fees - exclusions - definitions - repeal.6
(5) Notwithstanding any provision of this section to the contrary, the7
following cash funds are excluded from the limitations specified in this8
section:9
(qq) The small business recovery
AND RESILIENCY fund created in10
section 24-36-208
SECTION 24-48.5-608;11
SECTION 5. Effective date. This act takes effect on September12
1, 2024.13
SECTION 6. Safety clause. The general assembly finds,14
determines, and declares that this act is necessary for the immediate15
preservation of the public peace, health, or safety or for appropriations for16
the support and maintenance of the departments of the state and state17
institutions.18
1453
-29-