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Colorado House Bill HB1453

Colorado 2024 Regular Session

Colorado House Bill HB1453 Compare Versions

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1+Second Regular Session
2+Seventy-fourth General Assembly
3+STATE OF COLORADO
4+REREVISED
5+This Version Includes All Amendments
6+Adopted in the Second House
7+LLS NO. 24-1168.01 Rebecca Bayetti x4348
18 HOUSE BILL 24-1453
2-BY REPRESENTATIVE(S) Ricks, Bacon, Duran, English, Epps, Hamrick,
3-Joseph, Lieder, Lindsay, Lindstedt, Lukens, Mabrey, Titone, Velasco, Vigil,
4-Woodrow, McCluskie;
5-also SENATOR(S) Coleman and Kolker, Bridges, Cutter, Exum,
6-Jaquez Lewis, Michaelson Jenet, Priola, Sullivan.
9+House Committees Senate Committees
10+Finance Finance
11+A BILL FOR AN ACT
712 C
8-ONCERNING THE RELOCATION OF THE CLIMBER ACT FROM THE
9-DEPARTMENT OF THE TREASURY TO THE OFFICE OF ECONOMIC
10-DEVELOPMENT
11-.
12-
13-Be it enacted by the General Assembly of the State of Colorado:
14-SECTION 1. In Colorado Revised Statutes, add with amended
15-and relocated provisions part 6 of article 48.5 of title 24 as follows:
16-PART 6
17-COLORADO LOANS FOR INCREASING MAIN STREET
18-BUSINESS ECONOMIC RESILIENCY ACT
19-24-48.5-601. [Formerly 24-36-201] Short title. The short title of
13+ONCERNING THE RELOCATION OF THE CLIMBER ACT FROM THE101
14+DEPARTMENT OF THE TREASURY TO THE OFFICE OF ECONOMIC102
15+DEVELOPMENT.103
16+Bill Summary
17+(Note: This summary applies to this bill as introduced and does
18+not reflect any amendments that may be subsequently adopted. If this bill
19+passes third reading in the house of introduction, a bill summary that
20+applies to the reengrossed version of this bill will be available at
21+http://leg.colorado.gov
22+.)
23+The bill relocates the "Colorado Loans for Increasing Main Street
24+Business Economic Recovery Act" and renames it the "Colorado Loans
25+for Increasing Main Street Business Economic Resiliency Act"
26+(CLIMBER Act). Specifically, the bill moves the administration of the
27+CLIMBER Act loan program and insurance premium tax credits from the
28+SENATE
29+3rd Reading Unamended
30+May 3, 2024
31+SENATE
32+2nd Reading Unamended
33+May 2, 2024
34+HOUSE
35+3rd Reading Unamended
36+April 26, 2024
37+HOUSE
38+2nd Reading Unamended
39+April 25, 2024
40+HOUSE SPONSORSHIP
41+Ricks, Bacon, Duran, English, Epps, Hamrick, Joseph, Lieder, Lindsay, Lindstedt, Lukens,
42+Mabrey, McCluskie, Titone, Velasco, Vigil, Woodrow
43+SENATE SPONSORSHIP
44+Coleman and Kolker, Bridges, Cutter, Exum, Jaquez Lewis, Michaelson Jenet, Priola,
45+Sullivan
46+Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
47+Capital letters or bold & italic numbers indicate new material to be added to existing law.
48+Dashes through the words or numbers indicate deletions from existing law. department of the treasury (department) to the office of economic
49+development (office) and transfers the associated powers, duties, and
50+functions of the administration of the CLIMBER Act from the department
51+to the office. Along with this relocation, the bill makes the following
52+changes to the CLIMBER Act:
53+! For the small business recovery and resiliency loan
54+program, removes the requirement that at least 90% of the
55+money in any prior tranche be invested in small business
56+loans before the office can provide another tranche to a
57+loan program or to the Colorado credit reserve;
58+! Allows the office to accept and expend gifts, grants,
59+donations, and federal funds to support the CLIMBER Act
60+and credits this money to the existing small business
61+recovery and resiliency fund; and
62+! Removes the future repeal of the CLIMBER Act and other
63+future repeal dates located within the individual provisions
64+of the CLIMBER Act.
65+The bill also makes a conforming amendment and repeals the
66+provisions of law where the CLIMBER Act was previously codified.
67+Be it enacted by the General Assembly of the State of Colorado:1
68+SECTION 1. In Colorado Revised Statutes, add with amended2
69+and relocated provisions part 6 of article 48.5 of title 24 as follows:3
70+PART 64
71+COLORADO LOANS FOR INCREASING MAIN STREET5
72+BUSINESS ECONOMIC RESILIENCY ACT6
73+24-48.5-601. [Formerly 24-36-201] Short title. The short title of7
2074 this part 2
21- PART 6 is the "Colorado Loans for Increasing Main Street
22-Business Economic Recovery RESILIENCY Act" or "CLIMBER Act".
23-NOTE: This bill has been prepared for the signatures of the appropriate legislative
24-officers and the Governor. To determine whether the Governor has signed the bill
25-or taken other action on it, please consult the legislative status sheet, the legislative
26-history, or the Session Laws.
27-________
28-Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29-through words or numbers indicate deletions from existing law and such material is not part of
30-the act. 24-48.5-602. [Formerly 24-36-202] Legislative declaration.
31-(1) The general assembly hereby finds and declares that:
32-(a) There are nearly one hundred forty thousand small businesses
33-with employees in Colorado;
34-(b) Small businesses in Colorado make up a disproportionately
35-larger share of the economy of the state compared to the United States as a
36-whole;
37-(c) Small businesses collectively employed over one million
38-Coloradans before the public health crisis caused by COVID-19 began;
39-(d) The COVID-19 pandemic has harmed public health and
40-economic conditions across the entire world, including the state of
41-Colorado, across metropolitan regions, small towns, and rural communities,
42-and has had a particularly deep negative financial impact on small
43-businesses, their employees, and their home communities;
75+ PART 6 is the "Colorado Loans for Increasing Main Street8
76+Business Economic Recovery RESILIENCY Act" or "CLIMBER Act". 9
77+24-48.5-602. [Formerly 24-36-202] Legislative declaration.10
78+(1) The general assembly hereby finds and declares that:11
79+(a) There are nearly one hundred forty thousand small businesses12
80+with employees in Colorado;13
81+(b) Small businesses in Colorado make up a disproportionately14
82+1453-2- larger share of the economy of the state compared to the United States as1
83+a whole;2
84+(c) Small businesses collectively employed over one million3
85+Coloradans before the public health crisis caused by COVID-19 began;4
86+(d) The COVID-19 pandemic has harmed public health and5
87+economic conditions across the entire world, including the state of6
88+Colorado, across metropolitan regions, small towns, and rural7
89+communities, and has had a particularly deep negative financial impact8
90+on small businesses, their employees, and their home communities;9
4491 (e) The wide-ranging
45-AND CONTINUING health and economic impacts
46-of the COVID-19 pandemic are unprecedented in recent history and create
47-unique challenges for the state;
48-(f) The health, safety, and welfare of the people of the state depend
49-on the recovery of the state's economy, including the small businesses that
50-make up a significant share of that economy;
51-(g) On March 27, 2020, the president of the United States signed the
52-federal "Coronavirus Aid, Relief, and Economic Security Act", also known
53-as the "CARES Act", Pub.L. 116-136, to provide necessary federal funding
54-for COVID-19 response and recovery;
55-(h) The CARES Act, along with other federal laws and programs,
56-provided many critical resources for small businesses, but those resources
57-are not expected to be sufficient to sustain the large and diverse small
92+AND CONTINUING health and economic10
93+impacts of the COVID-19 pandemic are unprecedented in recent history11
94+and create unique challenges for the state;12
95+(f) The health, safety, and welfare of the people of the state13
96+depend on the recovery of the state's economy, including the small14
97+businesses that make up a significant share of that economy;15
98+(g) On March 27, 2020, the president of the United States signed16
99+the federal "Coronavirus Aid, Relief, and Economic Security Act", also17
100+known as the "CARES Act", Pub.L. 116-136, to provide necessary18
101+federal funding for COVID-19 response and recovery;19
102+(h) The CARES Act, along with other federal laws and programs,20
103+provided many critical resources for small businesses, but those resources21
104+are not expected to be sufficient to sustain the large and diverse small22
58105 business community in the state as it recovers over the next few years
59- from
60-the COVID-19 crisis
61-AND THE RESULTING ONGOING ECONOMIC HARDSHIPS ;
62-(i) The governor's council on economic stabilization and growth,
63-made up of volunteers from the private, public, and philanthropic sectors
64-PAGE 2-HOUSE BILL 24-1453 with diverse backgrounds from across Colorado, has recommended that the
65-state seed the establishment of a fund of over one hundred million dollars
66-to stimulate loans from lending institutions doing business in Colorado to
67-Colorado small businesses to support the state's recovery and resiliency
68-from the effects of the COVID-19 pandemic;
69-(j) There is a well-functioning network of respected lending
70-institutions across the state who are committed to the health of Colorado's
71-economy and want to contribute their expertise and community
72-relationships to support the success of Colorado's small business
73-community;
74-(k) The state will rely on those lending institutions as essential
75-partners in a small business recovery loan program; and
106+23
107+from the COVID-19 crisis
108+AND THE RESULTING ONGOING ECONOMIC24
109+HARDSHIPS;25
110+(i) The governor's council on economic stabilization and growth,26
111+made up of volunteers from the private, public, and philanthropic sectors27
112+1453
113+-3- with diverse backgrounds from across Colorado, has recommended that1
114+the state seed the establishment of a fund of over one hundred million2
115+dollars to stimulate loans from lending institutions doing business in3
116+Colorado to Colorado small businesses to support the state's recovery and4
117+resiliency from the effects of the COVID-19 pandemic;5
118+(j) There is a well-functioning network of respected lending6
119+institutions across the state who are committed to the health of Colorado's7
120+economy and want to contribute their expertise and community8
121+relationships to support the success of Colorado's small business9
122+community;10
123+(k) The state will rely on those lending institutions as essential11
124+partners in a small business recovery loan program; and12
76125 (l) Authorizing the creation of a small business recovery
77-AND
78-RESILIENCY
79- loan program seeded by money provided by the state will
126+AND13
127+RESILIENCY loan program seeded by money provided by the state will14
80128 support Colorado small businesses affected by the COVID-19 crisis, and
81-assist in the overall economic recovery of the state, AND SUPPORT
82-RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES EMERGE
83-.
84-(2) The general assembly further finds and declares that:
129+15
130+assist in the overall economic recovery of the state,
131+AND SUPPORT16
132+RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES EMERGE .17
133+(2) The general assembly further finds and declares that:18
85134 (a) While the loan program authorized by this part 2
86- PART 6 will be
87-predominately capitalized by private sector investments, the limited use of
88-state money obtained through the sale of insurance premium tax credits that
89-will result in future state tax expenditures incurred for the purpose of
90-supporting the program will, under the current economic conditions, result
91-in the formation of more private capital at better terms for small business
92-borrowers than would otherwise be available;
93-(b) The loan program, if successful, has the potential to help small
135+ PART 6 will19
136+be predominately capitalized by private sector investments, the limited20
137+use of state money obtained through the sale of insurance premium tax21
138+credits that will result in future state tax expenditures incurred for the22
139+purpose of supporting the program will, under the current economic23
140+conditions, result in the formation of more private capital at better terms24
141+for small business borrowers than would otherwise be available;25
142+(b) The loan program, if successful, has the potential to help small26
94143 businesses survive the crisis caused by
95144 THE COVID-19 pandemic, and to
96-protect jobs across the state, AND SUPPORT RESILIENCY FOR SMALL
97-BUSINESSES AS NEW CHALLENGES EMERGE
98-, which in turn will generate and
99-sustain tax revenues to both the state and local governments;
100-(c) Preserving jobs with small businesses will also reduce public
101-expenditures on safety net programs and other forms of assistance needed
102-by those who have become unemployed as a result of the crisis caused by
103-PAGE 3-HOUSE BILL 24-1453 COVID-19;
104-(d) The state money contributed to the loan program therefore serves
105-an important and discrete public purpose in securing the state's economic
106-and overall recovery from the crisis caused by COVID-19
107-AND IN ENSURING
108-THE STATE
109-'S RESILIENCY AMONG SMALL BUSINESSES AS NEW CHALLENGES
110-EMERGE
111-; and
112-(e) Supporting the state's recovery from the crisis caused by
145+27
146+1453
147+-4- protect jobs across the state, AND SUPPORT RESILIENCY FOR SMALL1
148+BUSINESSES AS NEW CHALLENGES EMERGE , which in turn will generate2
149+and sustain tax revenues to both the state and local governments;3
150+(c) Preserving jobs with small businesses will also reduce public4
151+expenditures on safety net programs and other forms of assistance needed5
152+by those who have become unemployed as a result of the crisis caused by6
153+COVID-19;7
154+(d) The state money contributed to the loan program therefore8
155+serves an important and discrete public purpose in securing the state's9
156+economic and overall recovery from the crisis caused by COVID-19
157+AND10
158+IN ENSURING THE STATE'S RESILIENCY AMONG SMALL BUSINESSES AS NEW11
159+CHALLENGES EMERGE; and12
160+(e) Supporting the state's recovery from the crisis caused by13
113161 COVID-19
114-AND ENSURING THE STATE 'S RESILIENCY AMONG SMALL
115-BUSINESSES AS NEW CHALLENGES EMERGE
116- is the primary purpose of the loan
117-program and outweighs any benefit to private individuals or entities.
118-(3) The general assembly further finds and declares that:
162+AND ENSURING THE STATE 'S RESILIENCY AMONG SMALL14
163+BUSINESSES AS NEW CHALLENGES EMERGE is the primary purpose of the15
164+loan program and outweighs any benefit to private individuals or entities.16
165+(3) The general assembly further finds and declares that:17
119166 (a) The insurance premium tax credits authorized by this part 2
120- PART
121-6 as a method to provide money to the loan program are available only to
122-insurance companies that incur premium tax liability in the state;
123-(b) The tax credits can only be used by an insurance company to
124-offset tax liability actually incurred by the insurance company;
125-(c) The tax credits are not refundable and do not impose an
126-obligation of payment in any future year upon the state;
127-(d) The use of proceeds from the sale of insurance premium tax
128-credits to seed the loan program allows the state to accomplish this
129-important public purpose through the use of future tax expenditures and
130-therefore:
131-(I) Does not require the state to borrow money, extend or pledge the
132-state's credit, or obligate the state to make future payments from state
133-revenues; and
134-(II) Does not otherwise create any multiple-fiscal year direct or
135-indirect district debt or other financial obligation whatsoever for purposes
136-of section 20 (4)(a) of article X of the state constitution.
137-24-48.5-603. [Formerly 24-36-203] Definitions. As used in this part
138-2 PART 6, unless the context otherwise requires:
139-PAGE 4-HOUSE BILL 24-1453 (1) "Colorado credit reserve" means the Colorado credit reserve
140-program described in section 24-46-104 (1)(n).
141-(2) "Contract" means a contract entered into by the state treasurer
142-OFFICE OF ECONOMIC DEVELOPMENT in accordance with section 24-36-205
143-(1) SECTION 24-48.5-605 (1).
144-(3) "Department" means the department of the treasury.
145-(4) "Eligible borrower" means a business that, as determined by the
146-oversight board:
147-(a) Has its principal place of business in the state;
148-(b) Has at least one but fewer than one hundred employees;
149-(c) Can demonstrate that it had at least one year of positive cash
150-flow as determined by the oversight board; and
151-(d) Can demonstrate that it has a current debt-service coverage ratio
152-of at least one-to-one or a higher level as determined by the oversight board.
153-(5) "Loan program" means a
154- THE small business recovery AND
155-RESILIENCY
156- loan program established in accordance with section 24-36-205SECTION 24-48.5-605.
157-(6) "Loan program manager" means an entity the state treasurer
158-OFFICE OF ECONOMIC DEVELOPMENT contracts with to establish and
159-administer the loan program in accordance with section 24-36-205 (2)
160-SECTION 24-48.5-605 (2).
161-(7) "Office" of economic development means the Colorado office
162-of economic development created in section 24-48.5-101.
167+18
168+PART 6 as a method to provide money to the loan program are available19
169+only to insurance companies that incur premium tax liability in the state;20
170+(b) The tax credits can only be used by an insurance company to21
171+offset tax liability actually incurred by the insurance company;22
172+(c) The tax credits are not refundable and do not impose an23
173+obligation of payment in any future year upon the state;24
174+(d) The use of proceeds from the sale of insurance premium tax25
175+credits to seed the loan program allows the state to accomplish this26
176+important public purpose through the use of future tax expenditures and27
177+1453
178+-5- therefore:1
179+(I) Does not require the state to borrow money, extend or pledge2
180+the state's credit, or obligate the state to make future payments from state3
181+revenues; and4
182+(II) Does not otherwise create any multiple-fiscal year direct or5
183+indirect district debt or other financial obligation whatsoever for purposes6
184+of section 20 (4)(a) of article X of the state constitution.7
185+24-48.5-603. [Formerly 24-36-203] Definitions. As used in this8
186+part 2 PART 6, unless the context otherwise requires:9
187+(1) "Colorado credit reserve" means the Colorado credit reserve10
188+program described in section 24-46-104 (1)(n).11
189+(2) "Contract" means a contract entered into by the state treasurer12
190+OFFICE OF ECONOMIC DEVELOPMENT in accordance with section13
191+24-36-205 (1) SECTION 24-48.5-605 (1).14
192+(3) "Department" means the department of the treasury.15
193+(4) "Eligible borrower" means a business that, as determined by16
194+the oversight board:17
195+(a) Has its principal place of business in the state;18
196+(b) Has at least one but fewer than one hundred employees;19
197+(c) Can demonstrate that it had at least one year of positive cash20
198+flow as determined by the oversight board; and21
199+(d) Can demonstrate that it has a current debt-service coverage22
200+ratio of at least one-to-one or a higher level as determined by the23
201+oversight board.24
202+(5) "Loan program" means a THE small business recovery AND25
203+RESILIENCY loan program established in accordance with section26
204+24-36-205 SECTION 24-48.5-605.27
205+1453
206+-6- (6) "Loan program manager" means an entity the state treasurer1
207+OFFICE OF ECONOMIC DEVELOPMENT contracts with to establish and2
208+administer the loan program in accordance with section 24-36-205 (2)3
209+SECTION 24-48.5-605 (2).4
210+(7) "Office" of economic development means the Colorado office5
211+of economic development created in section 24-48.5-101.6
163212 (8) "Oversight board" means the small business recovery
164-AND
165-RESILIENCY
166- loan program oversight board created in section 24-36-204
167-SECTION 24-48.5-604.
168-(9) "Premium tax liability" means the liability imposed by section
169-10-3-209 or 10-6-128, or, in the case of a repeal or reduction by the state of
170-PAGE 5-HOUSE BILL 24-1453 the liability imposed by section 10-3-209 or 10-6-128, any other tax liability
171-imposed upon an insurance company by the state.
172-(10) "Qualified taxpayer" means an insurance company authorized
173-to do business in Colorado that has premium tax liability owing to the state
174-and that purchases a tax credit under this part 2
175- PART 6. "Qualified
176-taxpayer" also includes an insurance company that receives or assumes a tax
177-credit transferred in accordance with section 24-36-206 (7)(e) or 24-36-207
178-(6), SECTION 24-48.5-606 (7)(e) OR 24-48.5-607 (6), or that receives or
179-assumes a tax credit as an affiliate of a qualified taxpayer or transferee. For
180-purposes of this subsection (10)
181- PART 6, "affiliate" has the same meaning
182-as set forth in section 10-3-801 (1).
213+AND7
214+RESILIENCY loan program oversight board created in section 24-36-204
215+8
216+SECTION 24-48.5-604.9
217+(9) "Premium tax liability" means the liability imposed by section10
218+10-3-209 or 10-6-128, or, in the case of a repeal or reduction by the state11
219+of the liability imposed by section 10-3-209 or 10-6-128, any other tax12
220+liability imposed upon an insurance company by the state.13
221+(10) "Qualified taxpayer" means an insurance company authorized14
222+to do business in Colorado that has premium tax liability owing to the15
223+state and that purchases a tax credit under this part 2 PART 6. "Qualified16
224+taxpayer" also includes an insurance company that receives or assumes a17
225+tax credit transferred in accordance with section 24-36-206 (7)(e) or18
226+24-36-207 (6), SECTION 24-48.5-606 (7)(e) OR 24-48.5-607 (6), or that19
227+receives or assumes a tax credit as an affiliate of a qualified taxpayer or20
228+transferee. For purposes of this subsection (10) PART 6, "affiliate" has the21
229+same meaning as set forth in section 10-3-801 (1).22
183230 (11) "Small business recovery
184-AND RESILIENCY fund" or "fund"
231+AND RESILIENCY fund" or "fund"23
185232 means the small business recovery
186-AND RESILIENCY fund established in
233+AND RESILIENCY fund established in24
187234 section 24-36-208
188- SECTION 24-48.5-608.
189-(12) "Small business recovery tax credit" or "tax credit" means the
190-tax credit created in section 24-36-206 SECTION 24-48.5-606.
191-(13) "Tax credit sale proceeds" or "sale proceeds" means the money
192-or other liquid asset acceptable to the state treasurer that a qualified
193-taxpayer pays to the department
194-AND that is deposited in the small business
195-recovery
196-AND RESILIENCY fund.
197-24-48.5-604. [Formerly 24-36-204] Small business recovery and
198-resiliency loan program oversight board - creation - report. (1) The
235+ SECTION 24-48.5-608.25
236+(12) "Small business recovery tax credit" or "tax credit" means the26
237+tax credit created in section 24-36-206 SECTION 24-48.5-606.27
238+1453
239+-7- (13) "Tax credit sale proceeds" or "sale proceeds" means the1
240+money or other liquid asset acceptable to the state treasurer that a2
241+qualified taxpayer pays to the department
242+AND that is deposited in the3
199243 small business recovery
200-AND RESILIENCY loan program oversight board is
201-hereby created in the department
202- DIVISION OF BUSINESS FUNDING AND
203-INCENTIVES WITHIN THE OFFICE
204- to help establish and oversee the terms and
205-conditions of a contract or contracts through which the treasurer
206- OFFICE may
207-provide first loss capital to a loan program or the Colorado credit reserve.
208-This section does not prohibit a loan program manager of a specific loan
209-program or the Colorado credit reserve from establishing a separate
210-investment advisory committee for that loan program.
211-(2) (a) The oversight board consists of five members, as follows:
212-(I) The state treasurer or the state treasurer's designee;
213-PAGE 6-HOUSE BILL 24-1453 (II) The director of the minority business office created in section
214-24-49.5-102, on behalf of the office of economic development, or the
215-director's designee;
216-(III) One member appointed by the speaker of the house of
217-representatives;
218-(IV) One member appointed by the president of the senate; and
219-(V) One member appointed by the governor.
220-(b) The appointing authorities shall make their initial appointments
221-to the oversight board no later than July 31, 2020.
222-(c) The members appointed pursuant to subsection (2)(a) of this
223-section must have substantial private sector experience in commercial
224-banking or capital market activities and must have obtained executive-level
225-positions in these industries.
226-(d) The chair of the governor's council on economic stabilization
227-and growth and the co-chairs of the council's financial services committee
228-shall consult with and provide recommendations on initial appointments to
229-the appointing authorities.
230-(3) Each member of the oversight board who is appointed pursuant
231-to subsection (2) of this section serves at the pleasure of the official who
232-appointed the member. The term of appointment is three years. An
233-appointed member may serve multiple terms. In the event of a vacancy in
234-an appointed position on the oversight board, a new member shall
235- MUST be
236-appointed in the same manner as provided in subsections (2)(a)(III) to
237-(2)(a)(V) of this section for the unexpired portion of the term.
238-(4) Each member of the oversight board serves without
239-compensation but is entitled to reimbursement for actual, reasonable, and
240-necessary expenses incurred in the performance of his or her
241- THE MEMBER'S
242-duties as a member of ON the oversight board.
243-(5) The state treasurer, or the state treasurer's designee, shall serve
244-SERVES as the chair of the oversight board.
245-PAGE 7-HOUSE BILL 24-1453 (6) The oversight board shall meet at least once every quarter. The
246-chair may call such additional meetings as are necessary for the oversight
247-board to complete its duties.
248-(7) The oversight board is a state public body subject to part 4 of
249-article 6 of this title 24. In addition to any other requirements, the oversight
250-board shall hold meetings open to the public, publish the agenda for each
251-meeting in advance, keep and publish minutes from each meeting, provide
252-advanced notification of meeting times to banking trade associations and
253-other groups that request notification, and receive written and public
254-testimony at each meeting.
255-(8) The oversight board's activities with regard to a contract or
256-contracts for the provision of state money for a loan program established in
257-accordance with section 24-36-205
258- SECTION 24-48.5-605 include, at a
259-minimum:
260-(a) Consulting with the state treasurer OFFICE AND THE DIVISION OF
261-BUSINESS FUNDING AND INCENTIVES WITHIN THE OFFICE
262- on the selection of
263-a loan program manager;
264-(b) In consultation with lending industry leaders and representatives
265-of small businesses, determining specific terms applicable to a loan program
266-as required in section 24-36-205
267- SECTION 24-48.5-605, which terms must
268-be designed in good faith to procure the participation of lending institutions
269-and be consistent with regulatory requirements and underwriting criteria,
270-including the duration of the geographic restriction of money in a loan
271-program;
272-(c) Providing guidance and input throughout the implementation of
273-a loan program;
274-(d) Establishing and publishing targets for the percentage of loans
275-supported by a loan program that are made to businesses owned by women,
276-minorities, and veterans and to businesses located in rural counties. In
277-establishing the targets required by this subsection (8)(d), the oversight
278-board shall consult with the minority business office within the office of the
279-governor and
280-WITH the division of business funding and incentives within
281-the office. of economic development
282-PAGE 8-HOUSE BILL 24-1453 (e) Regularly reviewing progress in achieving the targets established
283-pursuant to subsection (8)(d) of this section and making adjustments to a
284-loan program to help achieve the targets if needed; and
285-(f) Providing such additional oversight and creating policies and
286-procedures as may be necessary to ensure that the program complies with
287-the requirements of this part 2
288- PART 6 and fulfills its purpose PURPOSES of
289-supporting the state's recovery from the COVID-19 pandemic by assisting
290-Colorado small businesses in recovering from the crisis caused by
291-COVID-19
292-AND OF ENSURING RESILIENCY AMONG SMALL BUSINESSES AS
293-NEW CHALLENGES EMERGE
294-.
295-(9) The oversight board shall consult with small businesses in
296-establishing the criteria for eligible borrowers pursuant to section 24-36-203
297-(4) SECTION 24-48.5-603 (4).
298-(10) The oversight board shall adopt a conflict of interest policy for
299-its members in order to prevent those who serve on the board from profiting
300-or otherwise benefiting from eligible loans.
301-(11) A member of the oversight board may assist in raising money
302-or investments for a loan program without compensation.
303-(12) (a) The oversight board shall submit a written report on the
304-implementation of the loan program to the joint budget committee. The
305-oversight board shall submit its first report on or before November 30,
306-2020, and shall submit the report each six months thereafter for a period of
307-two years. After the report submitted November 30, 2022, the oversight
308-board shall submit the report annually, on or before November 30 of each
309-year. The oversight board shall also submit the report once each year in
310-fiscal years 2020-21 and 2021-22 to the business affairs and labor
311-committee of the house of representatives or any successor committee,
312- and
313-the business, labor, and technology committee of the senate, or any
314-successor committee
315- COMMITTEES. Notwithstanding the requirement in
316-section 24-1-136 (11)(a)(I), the requirement to submit the report required
317-in this subsection (11) continues until this section is repealed.
318-(b) The report must include, at a minimum, information on the
319-following:
320-PAGE 9-HOUSE BILL 24-1453 (I) The number and size of loans made;
321-(II) The geographic distribution of loans made;
322-(III) The distribution of loans made by business sector;
323-(IV) The demographics of the owners of the businesses receiving
324-loans, including the number of businesses owned by women, minorities, and
325-veterans;
326-(V) The number of loans made to rural businesses;
327-(VI) The size of the businesses receiving loans;
328-(VII) The number of people employed by the businesses receiving
329-loans;
330-(VIII) Distributions or revenue received by the state from the
331-program;
332-(IX) The financial performance of the fund;
333-(X) The default rates for loans made by the program;
334-(XI) Borrower interest rates on the loans and an explanation of how
335-the rates comply with the requirements of section 24-36-205 (4)(b)(V)
336-SECTION 24-48.5-605 (4)(b)(V); and
337-(XII) Any other information requested by the chair of the joint
244+AND RESILIENCY fund. 4
245+24-48.5-604. [Formerly 24-36-204] Small business recovery and5
246+resiliency loan program oversight board - creation - report. (1) The6
247+small business recovery
248+AND RESILIENCY loan program oversight board7
249+is hereby created in the department
250+ DIVISION OF BUSINESS FUNDING AND8
251+INCENTIVES WITHIN THE OFFICE to help establish and oversee the terms9
252+and conditions of a contract or contracts through which the treasurer10
253+OFFICE may provide first loss capital to a loan program or the Colorado11
254+credit reserve. This section does not prohibit a loan program manager of12
255+a specific loan program or the Colorado credit reserve from establishing13
256+a separate investment advisory committee for that loan program.14
257+(2) (a) The oversight board consists of five members, as follows:15
258+(I) The state treasurer or the state treasurer's designee;16
259+(II) The director of the minority business office created in section17
260+24-49.5-102, on behalf of the office of economic development, or the18
261+director's designee;19
262+(III) One member appointed by the speaker of the house of20
263+representatives;21
264+(IV) One member appointed by the president of the senate; and22
265+(V) One member appointed by the governor.23
266+(b) The appointing authorities shall make their initial24
267+appointments to the oversight board no later than July 31, 2020.25
268+(c) The members appointed pursuant to subsection (2)(a) of this26
269+section must have substantial private sector experience in commercial27
270+1453
271+-8- banking or capital market activities and must have obtained1
272+executive-level positions in these industries.2
273+(d) The chair of the governor's council on economic stabilization3
274+and growth and the co-chairs of the council's financial services committee4
275+shall consult with and provide recommendations on initial appointments5
276+to the appointing authorities.6
277+(3) Each member of the oversight board who is appointed7
278+pursuant to subsection (2) of this section serves at the pleasure of the8
279+official who appointed the member. The term of appointment is three9
280+years. An appointed member may serve multiple terms. In the event of a10
281+vacancy in an appointed position on the oversight board, a new member11
282+shall MUST be appointed in the same manner as provided in subsections12
283+(2)(a)(III) to (2)(a)(V) of this section for the unexpired portion of the13
284+term.14
285+(4) Each member of the oversight board serves without15
286+compensation but is entitled to reimbursement for actual, reasonable, and16
287+necessary expenses incurred in the performance of his or her THE17
288+MEMBER'S duties as a member of ON the oversight board.18
289+(5) The state treasurer, or the state treasurer's designee, shall serve19
290+SERVES as the chair of the oversight board.20
291+(6) The oversight board shall meet at least once every quarter. The21
292+chair may call such additional meetings as are necessary for the oversight22
293+board to complete its duties.23
294+(7) The oversight board is a state public body subject to part 4 of24
295+article 6 of this title 24. In addition to any other requirements, the25
296+oversight board shall hold meetings open to the public, publish the agenda26
297+for each meeting in advance, keep and publish minutes from each27
298+1453
299+-9- meeting, provide advanced notification of meeting times to banking trade1
300+associations and other groups that request notification, and receive2
301+written and public testimony at each meeting.3
302+(8) The oversight board's activities with regard to a contract or4
303+contracts for the provision of state money for a loan program established5
304+in accordance with section 24-36-205 SECTION 24-48.5-605 include, at a6
305+minimum:7
306+(a) Consulting with the state treasurer OFFICE AND THE DIVISION8
307+OF BUSINESS FUNDING AND INCENTIVES WITHIN THE OFFICE on the9
308+selection of a loan program manager;10
309+(b) In consultation with lending industry leaders and11
310+representatives of small businesses, determining specific terms applicable12
311+to a loan program as required in section 24-36-205 SECTION 24-48.5-605,13
312+which terms must be designed in good faith to procure the participation14
313+of lending institutions and be consistent with regulatory requirements and15
314+underwriting criteria, including the duration of the geographic restriction16
315+of money in a loan program;17
316+(c) Providing guidance and input throughout the implementation18
317+of a loan program;19
318+(d) Establishing and publishing targets for the percentage of loans20
319+supported by a loan program that are made to businesses owned by21
320+women, minorities, and veterans and to businesses located in rural22
321+counties. In establishing the targets required by this subsection (8)(d), the23
322+oversight board shall consult with the minority business office within the24
323+office of the governor and
324+WITH the division of business funding and25
325+incentives within the office. of economic development
326+26
327+(e) Regularly reviewing progress in achieving the targets27
328+1453
329+-10- established pursuant to subsection (8)(d) of this section and making1
330+adjustments to a loan program to help achieve the targets if needed; and2
331+(f) Providing such additional oversight and creating policies and3
332+procedures as may be necessary to ensure that the program complies with4
333+the requirements of this part 2 PART 6 and fulfills its purpose PURPOSES5
334+of supporting the state's recovery from the COVID-19 pandemic by6
335+assisting Colorado small businesses in recovering from the crisis caused7
336+by COVID-19
337+AND OF ENSURING RESILIENCY AMONG SMALL BUSINESSES8
338+AS NEW CHALLENGES EMERGE .9
339+(9) The oversight board shall consult with small businesses in10
340+establishing the criteria for eligible borrowers pursuant to section
341+11
342+24-36-203 (4) SECTION 24-48.5-603 (4).12
343+(10) The oversight board shall adopt a conflict of interest policy13
344+for its members in order to prevent those who serve on the board from14
345+profiting or otherwise benefiting from eligible loans.15
346+(11) A member of the oversight board may assist in raising money16
347+or investments for a loan program without compensation.17
348+(12) (a) The oversight board shall submit a written report on the18
349+implementation of the loan program to the joint budget committee. The19
350+oversight board shall submit its first report on or before November 30,20
351+2020, and shall submit the report each six months thereafter for a period21
352+of two years. After the report submitted November 30, 2022, the22
353+oversight board shall submit the report annually, on or before November23
354+30 of each year. The oversight board shall also submit the report once24
355+each year in fiscal years 2020-21 and 2021-22 to the business affairs and25
356+labor committee of the house of representatives or any successor26
357+committee, and the business, labor, and technology committee of the27
358+1453
359+-11- senate, or any successor committee COMMITTEES. Notwithstanding the1
360+requirement in section 24-1-136 (11)(a)(I), the requirement to submit the2
361+report required in this subsection (11) continues until this section is3
362+repealed.4
363+(b) The report must include, at a minimum, information on the5
364+following:6
365+(I) The number and size of loans made;7
366+(II) The geographic distribution of loans made;8
367+(III) The distribution of loans made by business sector;9
368+(IV) The demographics of the owners of the businesses receiving10
369+loans, including the number of businesses owned by women, minorities,11
370+and veterans;12
371+(V) The number of loans made to rural businesses;13
372+(VI) The size of the businesses receiving loans;14
373+(VII) The number of people employed by the businesses receiving15
374+loans;16
375+(VIII) Distributions or revenue received by the state from the17
376+program;18
377+(IX) The financial performance of the fund;19
378+(X) The default rates for loans made by the program;20
379+(XI) Borrower interest rates on the loans and an explanation of21
380+how the rates comply with the requirements of section 24-36-20522
381+(4)(b)(V) SECTION 24-48.5-605 (4)(b)(V); and23
382+(XII) Any other information requested by the chair of the joint24
338383 budget committee,
339-OR BY the business affairs and labor committee of the
384+OR BY the business affairs and labor committee of the25
340385 house of representatives or any successor committee,
341- or the business, labor,
342-and technology committee of the senate, or any successor committee
343-COMMITTEES.
344-(c) The oversight board shall make a presentation to a joint meeting
345-of the business affairs and labor committee of the house of representatives
346-and the business, labor, and technology committee of the senate, or any
347-successor committees, at least once each fiscal year or more often if
348-requested by the chairs of the committees.
349-PAGE 10-HOUSE BILL 24-1453 (13) This section is repealed, effective June 30, 2029.
350-24-48.5-605. [Formerly 24-36-205] Small business recovery and
351-resiliency loan program - creation - requirements - oversight.
352-(1) (a) The state treasurer OFFICE is authorized to enter into a contract or
386+ or the business,26
387+labor, and technology committee of the senate, or any successor27
388+1453
389+-12- committee COMMITTEES.1
390+(c) The oversight board shall make a presentation to a joint2
391+meeting of the business affairs and labor committee of the house of3
392+representatives and the business, labor, and technology committee of the4
393+senate, or any successor committees, at least once each fiscal year or more5
394+often if requested by the chairs of the committees.6
395+(13) This section is repealed, effective June 30, 2029.7
396+24-48.5-605. [Formerly 24-36-205] Small business recovery and8
397+resiliency loan program - creation - requirements - oversight.9
398+(1) (a) The state treasurer OFFICE is authorized to enter into a contract or10
353399 contracts to establish a small business recovery
354-AND RESILIENCY loan
400+AND RESILIENCY loan11
355401 program in accordance with this part 2
356- PART 6.
357-(b) The purpose of the loan program is to support the state's
358-recovery from the economic crisis caused by COVID-19 through leveraging
359-private investment to support Colorado small businesses recovering from
360-the crisis caused by COVID-19 by making loans, acquiring participation
361-interest in loans, leveraging private small business lending through the
362-Colorado credit reserve program, or other activities that accomplish the
363-same purpose. T
364-HE LOAN PROGRAM IS ALSO DESIGNED TO SUPPORT
365-RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES EMERGE
366-. The loan
367-program shall
368- MAY only make loans directly if federal or state bank
369-regulators prohibit the banking industry from originating loans for the loan
370-program.
371-(2) The state treasurer
372- OFFICE may contract with the Colorado
373-housing and finance authority created in part 7 of article 4 of title 29 or with
374-a bank, nonprofit organization, nondepository community development
375-financial institution, business development corporation, certified public
376-accountant firm, or fund manager to administer a loan program. If the state
377-treasurer OFFICE contracts with an entity other than the Colorado housing
378-and finance authority to administer a loan program, the state treasurer
379-OFFICE shall use an open and competitive process to select the entity. The
380-state treasurer OFFICE shall consult with the director of the office of
381-economic development and the oversight board in selecting and contracting
382-with a loan program manager.
383-(3) (a) Notwithstanding any restriction on the investment of state
384-money set forth in section 24-36-113 or in any other provision of law,
402+ PART 6.12
403+(b) The purpose of the loan program is to support the state's13
404+recovery from the economic crisis caused by COVID-19 through14
405+leveraging private investment to support Colorado small businesses15
406+recovering from the crisis caused by COVID-19 by making loans,16
407+acquiring participation interest in loans, leveraging private small business17
408+lending through the Colorado credit reserve program, or other activities18
409+that accomplish the same purpose. T
410+HE LOAN PROGRAM IS ALSO DESIGNED19
411+TO SUPPORT RESILIENCY FOR SMALL BUSINESSES AS NEW CHALLENGES20
412+EMERGE. The loan program shall
413+ MAY only make loans directly if federal21
414+or state bank regulators prohibit the banking industry from originating22
415+loans for the loan program.23
416+(2) The state treasurer OFFICE may contract with the Colorado24
417+housing and finance authority created in part 7 of article 4 of title 29 or25
418+with a bank, nonprofit organization, nondepository community26
419+development financial institution, business development corporation,27
420+1453
421+-13- certified public accountant firm, or fund manager to administer a loan1
422+program. If the state treasurer OFFICE contracts with an entity other than2
423+the Colorado housing and finance authority to administer a loan program,3
424+the state treasurer OFFICE shall use an open and competitive process to4
425+select the entity. The state treasurer OFFICE shall consult with the director5
426+of the office of economic development and the oversight board in6
427+selecting and contracting with a loan program manager.7
428+(3) (a) Notwithstanding any restriction on the investment of state8
429+money set forth in section 24-36-113 or in any other provision of law,9
385430 subject to the availability of money in the small business recovery
386-AND
387-RESILIENCY
388- fund and the requirements of this part 2
389- PART 6, THE OFFICE
390-MAY PROVIDE FIRST LOSS CAPITAL TO A LOAN PROGRAM OR PROGRAMS OR
391-TO THE
392-COLORADO CREDIT RESERVE FROM THE SMALL BUSINESS RECOVERY
393-AND RESILIENCY FUND
394-.
395-PAGE 11-HOUSE BILL 24-1453 (I) In fiscal year 2020-21, the state treasurer may provide up to thirty
396-million dollars in first loss capital to a loan program or programs or to the
397-Colorado credit reserve from the small business recovery fund; and
398-(II) Subject to the limitations in subsection (3)(b) of this section, in
399-fiscal years 2021-22, 2022-23, and 2023-24, the state treasurer may provide
400-up to a total of forty million dollars in first loss capital to a loan program or
401-programs or to the Colorado credit reserve from the small business recovery
402-fund.
403-(b) The money provided under this subsection (3) must be provided
404-in tranches of ten million dollars or less. up to a maximum amount of fifty
405-million dollars in all tranches combined across fiscal years. 2020-21
406-through 2023-24. The state treasurer shall not provide a tranche to a loan
407-program or to the Colorado credit reserve until at least ninety percent of the
408-money in any prior tranche has been invested in small business loans in
409-accordance with subsection (4) of this section, as determined by the
410-oversight board and certified by the loan program manager. Money
411-provided to the Colorado credit reserve is considered invested in small
412-business loans for the purposes of this subsection (3)(b) once it is paid to
413-the Colorado housing and finance authority.
414-(4) Any contract for the administration of a loan program must
415-include the following terms in order to receive money provided by the state
416-treasurer OFFICE pursuant to subsection (3) of this section:
417-(a) Except for money contributed to the Colorado credit reserve, the
418-money
419-FROM THE SMALL BUSINESS RECOVERY AND RESILIENCY FUND
431+AND10
432+RESILIENCY fund and the requirements of this part 2
433+ PART 6, THE OFFICE11
434+MAY PROVIDE FIRST LOSS CAPITAL TO A LOAN PROGRAM OR PROGRAMS OR12
435+TO THE COLORADO CREDIT RESERVE FROM THE SMALL BUSINESS13
436+RECOVERY AND RESILIENCY FUND .14
437+(I) In fiscal year 2020-21, the state treasurer may provide up to15
438+thirty million dollars in first loss capital to a loan program or programs or16
439+to the Colorado credit reserve from the small business recovery fund; and17
440+(II) Subject to the limitations in subsection (3)(b) of this section,18
441+in fiscal years 2021-22, 2022-23, and 2023-24, the state treasurer may19
442+provide up to a total of forty million dollars in first loss capital to a loan20
443+program or programs or to the Colorado credit reserve from the small21
444+business recovery fund.22
445+(b) The money provided under this subsection (3) must be23
446+provided in tranches of ten million dollars or less. up to a maximum24
447+amount of fifty million dollars in all tranches combined across fiscal25
448+years. 2020-21 through 2023-24. The state treasurer shall not provide a26
449+tranche to a loan program or to the Colorado credit reserve until at least27
450+1453
451+-14- ninety percent of the money in any prior tranche has been invested in1
452+small business loans in accordance with subsection (4) of this section, as2
453+determined by the oversight board and certified by the loan program3
454+manager. Money provided to the Colorado credit reserve is considered4
455+invested in small business loans for the purposes of this subsection (3)(b)5
456+once it is paid to the Colorado housing and finance authority.6
457+(4) Any contract for the administration of a loan program must7
458+include the following terms in order to receive money provided by the8
459+state treasurer OFFICE pursuant to subsection (3) of this section:9
460+(a) Except for money contributed to the Colorado credit reserve,10
461+the money
462+FROM THE SMALL BUSINESS RECOVERY AND RESILIENCY FUND11
420463 provided by the state treasurer
421- OFFICE in a single tranche shall MAY not be
422-committed pursuant to a contract relating to a loan program until money is
423-committed pursuant to a contract relating to a loan program from other
424-sources at a ratio of at least four dollars from other sources for each one
425-dollar provided by the state
426-FROM THE SMALL BUSINESS RECOVERY AND
427-RESILIENCY FUND
428-. If a loan program manager does not secure sufficient
429-investments from other sources to meet this requirement within the time
430-allowed by a contract, the money provided by the state shall
431- MUST be
432-returned to the small business recovery
433-AND RESILIENCY fund.
434-(b) Except for money contributed to the Colorado credit reserve,
435-once the money in a tranche is matched in accordance with subsection (4)(a)
436-PAGE 12-HOUSE BILL 24-1453 of this section, it must be used to make loans or purchase participation
437-interest in loans for working capital, including the purchase of equipment,
438-to eligible borrowers, or other activities that accomplish the same purpose.
439-The oversight board shall consult with lending industry leaders and
440-representatives of small businesses with regard to subsections (4)(b)(I) to
441-(4)(b)(VI) of this section. Each loan must be subject to the following terms:
442-(I) The loan must be in an amount of at least ten thousand dollars
443-but not more than five hundred thousand dollars, as determined by the
444-oversight board;
445-(II) The loan must have a maximum initial maturity of up to ten
446-years, based on the need of the eligible borrower, with no penalty for
447-prepayment, as determined by the oversight board. The originating lender
448-may extend the term for purposes of restructuring the loan;
449-(III) The principal must be amortized over the term of the loan or a
450-longer period, as determined by the oversight board;
451-(IV) Principal and interest payments may be deferred for up to one
452-year, as determined by the oversight board, with the unpaid interest being
453-capitalized. Deferrals must be limited to circumstances of hardship created
454-by the COVID-19 pandemic
455-OR BASED ON ONGOING ECONOMIC CONDITIONS .
456-(V) The loan must carry an interest rate that is lower than would
457-otherwise be available on a risk-adjusted basis from a commercial lender or
458-that bears terms that are not otherwise available from a commercial lender,
459-as determined by the oversight board; and
460-(VI) The eligible borrower may provide a personal guarantee,
461-collateral, or other security as determined by the oversight board, which
462-may be subordinate to existing debt.
464+ OFFICE in a single tranche shall MAY not12
465+be committed pursuant to a contract relating to a loan program until13
466+money is committed pursuant to a contract relating to a loan program14
467+from other sources at a ratio of at least four dollars from other sources for15
468+each one dollar provided by the state
469+FROM THE SMALL BUSINESS16
470+RECOVERY AND RESILIENCY FUND . If a loan program manager does not17
471+secure sufficient investments from other sources to meet this requirement18
472+within the time allowed by a contract, the money provided by the state19
473+shall
474+ MUST be returned to the small business recovery AND RESILIENCY20
475+fund.21
476+(b) Except for money contributed to the Colorado credit reserve,22
477+once the money in a tranche is matched in accordance with subsection23
478+(4)(a) of this section, it must be used to make loans or purchase24
479+participation interest in loans for working capital, including the purchase25
480+of equipment, to eligible borrowers, or other activities that accomplish the26
481+same purpose. The oversight board shall consult with lending industry27
482+1453
483+-15- leaders and representatives of small businesses with regard to subsections1
484+(4)(b)(I) to (4)(b)(VI) of this section. Each loan must be subject to the2
485+following terms:3
486+(I) The loan must be in an amount of at least ten thousand dollars4
487+but not more than five hundred thousand dollars, as determined by the5
488+oversight board;6
489+(II) The loan must have a maximum initial maturity of up to ten7
490+years, based on the need of the eligible borrower, with no penalty for8
491+prepayment, as determined by the oversight board. The originating lender9
492+may extend the term for purposes of restructuring the loan;10
493+(III) The principal must be amortized over the term of the loan or11
494+a longer period, as determined by the oversight board;12
495+(IV) Principal and interest payments may be deferred for up to one13
496+year, as determined by the oversight board, with the unpaid interest being14
497+capitalized. Deferrals must be limited to circumstances of hardship15
498+created by the COVID-19 pandemic
499+OR BASED ON ONGOING ECONOMIC16
500+CONDITIONS.17
501+(V) The loan must carry an interest rate that is lower than would18
502+otherwise be available on a risk-adjusted basis from a commercial lender19
503+or that bears terms that are not otherwise available from a commercial20
504+lender, as determined by the oversight board; and21
505+(VI) The eligible borrower may provide a personal guarantee,22
506+collateral, or other security as determined by the oversight board, which23
507+may be subordinate to existing debt.24
463508 (c) (I) In order to
464- TO ensure geographic equity, each tranche of loan
465-funding must be subject to an initial period of time in which a portion of the
466-money is allocated to each county on a basis proportional to the county's
467-share of small businesses relative to the state, the county's share of small
468-business employees relative to the state, the county's share of small business
469-personal property relative to the state, or other similar metrics as determined
470-by the oversight board, or based on a formula established under subsection
471-PAGE 13-HOUSE BILL 24-1453 (4)(c)(IV) of this section. The money allocated to each county must be
472-reserved for applications from eligible borrowers located in that county for
473-the initial period of time. For the purposes of this subsection (4)(c), an
474-eligible borrower is considered to be located in the county in which it has
475-its principal place of business, as reflected in its most recent filing with the
476-secretary of state or subject to such other documentation as the oversight
477-board establishes. The oversight board shall determine the amount of time
478-in which the money in each tranche is subject to a geographic restriction
479-under this subsection (4)(c)(I).
480-(II) Once the time period established by the oversight board under
481-subsection (4)(c)(I) of this section has passed, all money remaining in the
482-tranche is available to eligible borrowers on a statewide basis.
483-(III) For money contributed to the Colorado credit reserve, the
484-oversight board may waive the requirements of this subsection (4)(c) or
485-establish alternative geographic distribution requirements or targets.
486-(IV) For any tranche of loan funding, the oversight board may, in its
487-discretion, establish an alternative formula for the allocation of funds
488-MONEY to counties for purposes of subsection (4)(c)(I) of this section that
489-accounts for how affected each county has been by the COVID-19
509+ TO ensure geographic equity, each tranche of25
510+loan funding must be subject to an initial period of time in which a26
511+portion of the money is allocated to each county on a basis proportional27
512+1453
513+-16- to the county's share of small businesses relative to the state, the county's1
514+share of small business employees relative to the state, the county's share2
515+of small business personal property relative to the state, or other similar3
516+metrics as determined by the oversight board, or based on a formula4
517+established under subsection (4)(c)(IV) of this section. The money5
518+allocated to each county must be reserved for applications from eligible6
519+borrowers located in that county for the initial period of time. For the7
520+purposes of this subsection (4)(c), an eligible borrower is considered to8
521+be located in the county in which it has its principal place of business, as9
522+reflected in its most recent filing with the secretary of state or subject to10
523+such other documentation as the oversight board establishes. The11
524+oversight board shall determine the amount of time in which the money12
525+in each tranche is subject to a geographic restriction under this subsection13
526+(4)(c)(I).14
527+(II) Once the time period established by the oversight board under15
528+subsection (4)(c)(I) of this section has passed, all money remaining in the16
529+tranche is available to eligible borrowers on a statewide basis.17
530+(III) For money contributed to the Colorado credit reserve, the18
531+oversight board may waive the requirements of this subsection (4)(c) or19
532+establish alternative geographic distribution requirements or targets.20
533+(IV) For any tranche of loan funding, the oversight board may, in21
534+its discretion, establish an alternative formula for the allocation of funds22
535+MONEY to counties for purposes of subsection (4)(c)(I) of this section that23
536+accounts for how affected each county has been by the COVID-1924
490537 pandemic and its impacts
491-OR BASED ON ONGOING ECONOMIC CONDITIONS .
492-(d) (I) A loan program manager shall make every effort to achieve
493-benchmarks published by the oversight board pursuant to section 24-36-204
494-(8)(d) SECTION 24-48.5-604 (8)(d) for the percentage of loans supported by
495-the program that are made to businesses owned by socially and
496-economically disadvantaged individuals, including businesses owned by
497-women, minorities, and veterans, and to businesses located in rural counties.
498-A loan program manager shall consult with the minority business office
499-within the office of the governor and the division of business funding and
500-incentives within the office of economic development
501- to develop an
502-outreach strategy for marketing the loan program to businesses owned by
503-women, minorities, and veterans and businesses located in rural counties.
504-(II) For money contributed to the Colorado credit reserve, the
505-oversight board may waive the requirements of this subsection (4)(d) or
506-may establish alternative benchmarks for the percentage of loans supported
507-by the program that are made to businesses owned by socially and
508-PAGE 14-HOUSE BILL 24-1453 economically disadvantaged individuals, including businesses owned by
509-women, minorities, and veterans, and to businesses located in rural counties.
510-(e) A loan program manager shall work with the division of business
511-funding and incentives within the office of economic development to align
512-the program with other access to capital programs in the state.
513-(5) If the money in a tranche is not fully invested in small business
514-loans as determined by the oversight board in the time period allowed under
515-a contract, the portion of the unused money provided by the state shall
516- MUST
517-be returned to the small business recovery AND RESILIENCY fund.
518-(6) Distributions or revenue paid to the state pursuant to a contract
519-under this section shall MUST be deposited in the small business recovery
520-AND RESILIENCY fund. except that, if such distributions or revenue are paid
521-after the small business recovery fund is repealed, the money shall be paid
522-to the state treasurer, who shall credit the money to the general fund
523-(7) The loan program manager shall report on the implementation
524-of the loan program to the oversight board at least quarterly, within one
525-month after the end of each calendar quarter, or more often if requested by
526-the oversight board. The reports
527- REPORT must include the information
538+OR BASED ON ONGOING ECONOMIC CONDITIONS .25
539+(d) (I) A loan program manager shall make every effort to achieve26
540+benchmarks published by the oversight board pursuant to section
541+27
542+1453
543+-17- 24-36-204 (8)(d) SECTION 24-48.5-604 (8)(d) for the percentage of loans1
544+supported by the program that are made to businesses owned by socially2
545+and economically disadvantaged individuals, including businesses owned3
546+by women, minorities, and veterans, and to businesses located in rural4
547+counties. A loan program manager shall consult with the minority5
548+business office within the office of the governor and the division of6
549+business funding and incentives within the office of economic7
550+development to develop an outreach strategy for marketing the loan8
551+program to businesses owned by women, minorities, and veterans and9
552+businesses located in rural counties.10
553+(II) For money contributed to the Colorado credit reserve, the11
554+oversight board may waive the requirements of this subsection (4)(d) or12
555+may establish alternative benchmarks for the percentage of loans13
556+supported by the program that are made to businesses owned by socially14
557+and economically disadvantaged individuals, including businesses owned15
558+by women, minorities, and veterans, and to businesses located in rural16
559+counties.17
560+(e) A loan program manager shall work with the division of18
561+business funding and incentives within the office of economic19
562+development to align the program with other access to capital programs20
563+in the state.21
564+(5) If the money in a tranche is not fully invested in small business22
565+loans as determined by the oversight board in the time period allowed23
566+under a contract, the portion of the unused money provided by the state24
567+shall MUST be returned to the small business recovery AND RESILIENCY25
568+fund.26
569+(6) Distributions or revenue paid to the state pursuant to a contract27
570+1453
571+-18- under this section shall MUST be deposited in the small business recovery1
572+AND RESILIENCY fund. except that, if such distributions or revenue are2
573+paid after the small business recovery fund is repealed, the money shall3
574+be paid to the state treasurer, who shall credit the money to the general4
575+fund5
576+(7) The loan program manager shall report on the implementation6
577+of the loan program to the oversight board at least quarterly, within one7
578+month after the end of each calendar quarter, or more often if requested8
579+by the oversight board. The reports REPORT must include the information9
528580 necessary to allow the
529-OVERSIGHT board to provide the reports required in
530-section 24-36-204 (12)
531- SECTION 24-48.5-604 (12), and any additional
532-information requested by the board.
533-24-48.5-606. [Formerly 24-36-206] Small business recovery tax
534-credits - authorization to issue - terms - report. (1) A qualified taxpayer
535-may purchase small business recovery tax credits from the department in
536-accordance with this section and may apply the tax credits against its
537-premium tax liability in accordance with section 24-36-207
538- SECTION
539-24-48.5-607.
540-(2) (a) The department is authorized to issue tax credit certificates
541-to qualified taxpayers equal to the lesser of a total face value of up to forty
542-million dollars or total sales proceeds of up to thirty million five hundred
543-thousand dollars in fiscal year 2020-21.
544-(b) The department is authorized to issue tax credit certificates to
545-qualified taxpayers equal to the lesser of a combined total face value of up
546-PAGE 15-HOUSE BILL 24-1453 to twenty-eight million dollars or combined total sales proceeds of up to
547-twenty-one million dollars in fiscal years 2021-22 and 2022-23.
548-(c) The department may contract with an independent third party to
549-conduct or consult on a bidding process among qualified taxpayers to
550-purchase the tax credits.
551-(d) The department shall consult with insurance companies in
552-advance of issuing any tax credits in accordance with this section.
553-(3) An insurance company authorized to do business in Colorado
554-seeking to purchase tax credits must apply to the department in the manner
555-prescribed by the department.
556-(4) Using procedures adopted by the department or, if applicable, by
557-an independent third party, each insurance company that submits an
558-application shall make a timely and irrevocable offer, contingent only upon
559-the department's issuance to the insurance company of the tax credit
560-certificates, to make a specified purchase payment amount to the department
561-on dates specified by the department. The offer must include all of the
562-following:
563-(a) The requested amount of tax credits, which must not be less than
564-any minimum amount established in procedures by the department or, if
565-applicable, the independent third party;
566-(b) The qualified taxpayer's proposed tax credit purchase amount for
567-each tax credit dollar requested. The minimum proposed tax credit purchase
568-amount must be either:
569-(I) The percentage of the requested dollar amount of tax credits that
570-the department and
571- OR, if applicable, the independent third party determines
572-to be consistent with market conditions as of the offer date; or
581+OVERSIGHT board to provide the reports required10
582+in section 24-36-204 (12)
583+ SECTION 24-48.5-604 (12), and any additional11
584+information requested by the board. 12
585+24-48.5-606. [Formerly 24-36-206] Small business recovery tax13
586+credits - authorization to issue - terms - report. (1) A qualified14
587+taxpayer may purchase small business recovery tax credits from the15
588+department in accordance with this section and may apply the tax credits16
589+against its premium tax liability in accordance with section 24-36-20717
590+SECTION 24-48.5-607.18
591+(2) (a) The department is authorized to issue tax credit certificates19
592+to qualified taxpayers equal to the lesser of a total face value of up to20
593+forty million dollars or total sales proceeds of up to thirty million five21
594+hundred thousand dollars in fiscal year 2020-21.22
595+(b) The department is authorized to issue tax credit certificates to23
596+qualified taxpayers equal to the lesser of a combined total face value of24
597+up to twenty-eight million dollars or combined total sales proceeds of up25
598+to twenty-one million dollars in fiscal years 2021-22 and 2022-23.26
599+(c) The department may contract with an independent third party27
600+1453
601+-19- to conduct or consult on a bidding process among qualified taxpayers to1
602+purchase the tax credits.2
603+(d) The department shall consult with insurance companies in3
604+advance of issuing any tax credits in accordance with this section.4
605+(3) An insurance company authorized to do business in Colorado5
606+seeking to purchase tax credits must apply to the department in the6
607+manner prescribed by the department.7
608+(4) Using procedures adopted by the department or, if applicable,8
609+by an independent third party, each insurance company that submits an9
610+application shall make a timely and irrevocable offer, contingent only10
611+upon the department's issuance to the insurance company of the tax credit11
612+certificates, to make a specified purchase payment amount to the12
613+department on dates specified by the department. The offer must include13
614+all of the following:14
615+(a) The requested amount of tax credits, which must not be less15
616+than any minimum amount established in procedures by the department16
617+or, if applicable, the independent third party;17
618+(b) The qualified taxpayer's proposed tax credit purchase amount18
619+for each tax credit dollar requested. The minimum proposed tax credit19
620+purchase amount must be either:20
621+(I) The percentage of the requested dollar amount of tax credits21
622+that the department and OR, if applicable, the independent third party22
623+determines to be consistent with market conditions as of the offer date;23
624+or24
573625 (II) If no amount is established by the department or
574-THE
575-independent third party pursuant to subsection (4)(b)(I) of this section,
576-seventy-five percent of the requested dollar amount of tax credits; and
577-(c) Any other information
578-THAT the department or, if applicable, THE
579-independent third party requires.
580-PAGE 16-HOUSE BILL 24-1453 (5) The department shall provide written notice to each insurance
581-company that submits an application indicating whether or not the insurance
582-company has been approved as a purchaser of tax credits and, if so, the
583-amount of tax credits allocated and the date by which payment of the tax
584-credit sale proceeds must be made.
585-(6) On receipt of payment of the sale proceeds, the department shall
586-issue to each qualified taxpayer a tax credit certificate. The tax credit
587-certificate must state all of the following:
588-(a) The total amount of premium tax credits that the qualified
589-taxpayer may claim;
590-(b) The amount that the qualified taxpayer has paid or agreed to pay
591-in return for the issuance of the tax credit certificates and the date of the
592-payment;
593-(c) The dates on which the tax credits will be available for use by
594-the qualified taxpayer;
595-(d) Any penalties or other remedies for noncompliance;
596-(e) The procedures to be used for transferring or assuming the tax
597-credits in accordance with subsection (7)(e) of this section or section
598-24-36-207 (6) SECTION 24-48.5-607 (6), or between affiliates; as defined in
599-section 10-3-801 (1)
600-(f) The serial number of the tax credit certificate; and
601-(g) Any other requirements deemed necessary by the department as
602-a condition of issuing the tax credit certificate.
603-(7) (a) The department shall not issue a tax credit certificate to any
604-qualified taxpayer that fails to provide the tax credit sale proceeds within
605-the time
606-SPECIFIED BY the department. specifies
607-(b) A qualified taxpayer that fails to provide the tax credit sale
626+THE25
627+independent third party pursuant to subsection (4)(b)(I) of this section,26
628+seventy-five percent of the requested dollar amount of tax credits; and27
629+1453
630+-20- (c) Any other information THAT the department or, if applicable,1
631+THE independent third party requires.2
632+(5) The department shall provide written notice to each insurance3
633+company that submits an application indicating whether or not the4
634+insurance company has been approved as a purchaser of tax credits and,5
635+if so, the amount of tax credits allocated and the date by which payment6
636+of the tax credit sale proceeds must be made.7
637+(6) On receipt of payment of the sale proceeds, the department8
638+shall issue to each qualified taxpayer a tax credit certificate. The tax9
639+credit certificate must state all of the following:10
640+(a) The total amount of premium tax credits that the qualified11
641+taxpayer may claim;12
642+(b) The amount that the qualified taxpayer has paid or agreed to13
643+pay in return for the issuance of the tax credit certificates and the date of14
644+the payment;15
645+(c) The dates on which the tax credits will be available for use by16
646+the qualified taxpayer;17
647+(d) Any penalties or other remedies for noncompliance;18
648+(e) The procedures to be used for transferring or assuming the tax19
649+credits in accordance with subsection (7)(e) of this section or section20
650+24-36-207 (6) SECTION 24-48.5-607 (6), or between affiliates; as defined21
651+in section 10-3-801 (1)22
652+(f) The serial number of the tax credit certificate; and23
653+(g) Any other requirements deemed necessary by the department24
654+as a condition of issuing the tax credit certificate.25
655+(7) (a) The department shall not issue a tax credit certificate to any26
656+qualified taxpayer that fails to provide the tax credit sale proceeds within27
657+1453
658+-21- the time SPECIFIED BY the department. specifies1
659+(b) A qualified taxpayer that fails to provide the tax credit sale2
608660 proceeds within the time
609661 SPECIFIED BY the department specifies
610- is subject
611-to a penalty equal to ten percent of the amount of the purchase price that
612-remains unpaid. The penalty must be paid to the department within thirty
613-PAGE 17-HOUSE BILL 24-1453 days after demand.
614-(c) The department may offer to reallocate the defaulted tax credits
615-among other qualified taxpayers so that the result after reallocation is the
616-same as if the initial allocation had been performed without considering the
617-tax credit allocation to the defaulting qualified taxpayer.
618-(d) If the reallocation of tax credits under subsection (7)(c) of this
619-section results in the payment by another qualified taxpayer of the amount
620-of tax credit sale proceeds not paid by the defaulting qualified taxpayer, the
621-department may waive the penalty imposed under subsection (7)(b) of this
622-section.
623-(e) A qualified taxpayer that fails to pay the tax credit sale proceeds
624-within the time specified
625-BY THE DEPARTMENT may avoid the imposition of
626-the penalty by transferring the allocation of tax credits to a new or existing
627-qualified taxpayer within thirty days after the due date of the defaulted
628-installment. Any transferee of an allocation of tax credits of a defaulting
629-qualified taxpayer under this subsection (7) shall agree to pay the tax credit
630-sale proceeds within five days after the date of the transfer.
631-(8) The tax credit sale proceeds provided by a qualifying taxpayer
632-in return for a tax credit certificate must be deposited in the small business
633-recovery
634-AND RESILIENCY fund.
635-(9) (a) The department shall provide a report to the division of
636-insurance in the department of regulatory agencies for each fiscal year in
637-which it issues tax credit certificates pursuant to this part 2
638- PART 6 within
639-thirty days after the issuance of the credits. The report must include:
640-(I) The name and identifying number issued by the national
641-association of insurance commissioners, or any successor organization, of
642-each qualified taxpayer to which the department issued a tax credit
643-certificate;
644-(II) The total amount of the tax credit allocated to the qualified
645-taxpayer; and
646-(III) The serial number of the tax credit certificate issued to the
647-qualified taxpayer.
648-PAGE 18-HOUSE BILL 24-1453 (b) The department shall maintain records of each tax credit
649-certificate issued, transferred, or assumed that are sufficient to allow the
650-division of insurance in the department of regulatory agencies to verify the
651-issuance and ownership of the credit.
652-24-48.5-607. [Formerly 24-36-207] Use of small business recovery
653-tax credits - carry over. (1) For a tax credit certificate issued in fiscal year
654-2020-21:
655-(a) The qualified taxpayer may claim up to fifty percent of the credit
656-against premium tax liability incurred for a taxable year that begins on or
657-after January 1, 2025; except that a taxpayer may not reduce its estimated
658-tax payments in proportion to such credit prior to July 1, 2025; and
659-(b) The qualified taxpayer may claim the remaining amount of the
660-credit against premium tax liability incurred for a taxable year that begins
661-on or after January 1, 2026; except that a taxpayer may not reduce its
662-estimated tax payments in proportion to such credit prior to July 1, 2026.
663-(2) For a tax credit certificate issued in fiscal year 2021-22 or fiscal
664-year 2022-23:
665-(a) The qualified taxpayer may claim up to fifty percent of the credit
666-against premium tax liability incurred for a taxable year that begins on or
667-after January 1, 2023; except that a taxpayer may not reduce its estimated
668-tax payments in proportion to such credit prior to July 1, 2023; and
669-(b) The qualified taxpayer may claim the remaining amount of the
670-credit against premium tax liability incurred for a taxable year that begins
671-on or after January 1, 2024; except that a taxpayer may not reduce the
672-taxpayer's estimated tax payments in proportion to such credit prior to July
673-1, 2024.
674-(3) (a) The total credit to be applied by a qualified taxpayer in any
675-one year must not exceed the premium tax liability of the qualified taxpayer
676-for the taxable year. If the qualified taxpayer cannot use the entire amount
677-of the tax credit for the taxable year in which the taxpayer is eligible for the
678-credit, the excess may be carried over to succeeding taxable years and used
679-as a credit against the premium tax liability of the taxpayer for those taxable
680-years; except that:
681-PAGE 19-HOUSE BILL 24-1453 (I) For a credit issued in fiscal year 2020-21, the credit may not be
682-carried over to any taxable year that begins after December 31, 2031; and
683-(II) For a credit issued in fiscal year 2021-22 or 2022-23, the credit
684-may not be carried over to any taxable year that begins after December 31,
685-2029.
686-(b) Any amount of the credit that is not timely claimed expires and
687-is not refundable.
688-(4) A qualified taxpayer claiming a credit under this part 2
689- PART 6
690-shall submit the tax credit certificate with its tax return.
691-(5) A qualified taxpayer claiming a tax credit under this part 2 shall
692-PART 6 WILL not be required to pay any additional or retaliatory tax as a
693-result of claiming the credit.
694-(6) If a qualified taxpayer holding an unclaimed tax credit is part of
695-a merger, acquisition, or line of business divestiture transaction, the tax
696-credit may be transferred to and assumed by the resulting entity if the
697-resulting entity is an insurance company authorized to do business in
698-Colorado that has premium tax liability. The qualified taxpayer that
699-originally purchased the credit and the resulting entity shall notify the
700-department in writing of the transfer or assumption of the credit in
701-accordance with procedures adopted by the department. The department
702-shall provide a copy of the notice to the division of insurance in the
703-department of regulatory agencies and shall maintain a record of the transfer
704-or assumption of the tax credit. The transfer or assumption of the tax credit
705-does not affect the time schedule for claiming the tax credit as provided in
706-this section.
707-24-48.5-608. [Formerly 24-36-208] Small business recovery and
662+ is subject3
663+to a penalty equal to ten percent of the amount of the purchase price that4
664+remains unpaid. The penalty must be paid to the department within thirty5
665+days after demand.6
666+(c) The department may offer to reallocate the defaulted tax7
667+credits among other qualified taxpayers so that the result after reallocation8
668+is the same as if the initial allocation had been performed without9
669+considering the tax credit allocation to the defaulting qualified taxpayer.10
670+(d) If the reallocation of tax credits under subsection (7)(c) of this11
671+section results in the payment by another qualified taxpayer of the amount12
672+of tax credit sale proceeds not paid by the defaulting qualified taxpayer,13
673+the department may waive the penalty imposed under subsection (7)(b)14
674+of this section.15
675+(e) A qualified taxpayer that fails to pay the tax credit sale16
676+proceeds within the time specified
677+BY THE DEPARTMENT may avoid the17
678+imposition of the penalty by transferring the allocation of tax credits to a18
679+new or existing qualified taxpayer within thirty days after the due date of19
680+the defaulted installment. Any transferee of an allocation of tax credits of20
681+a defaulting qualified taxpayer under this subsection (7) shall agree to pay21
682+the tax credit sale proceeds within five days after the date of the transfer.22
683+(8) The tax credit sale proceeds provided by a qualifying taxpayer23
684+in return for a tax credit certificate must be deposited in the small24
685+business recovery
686+AND RESILIENCY fund.25
687+(9) (a) The department shall provide a report to the division of26
688+insurance in the department of regulatory agencies for each fiscal year in27
689+1453
690+-22- which it issues tax credit certificates pursuant to this part 2 PART 6 within1
691+thirty days after the issuance of the credits. The report must include:2
692+(I) The name and identifying number issued by the national3
693+association of insurance commissioners, or any successor organization,4
694+of each qualified taxpayer to which the department issued a tax credit5
695+certificate;6
696+(II) The total amount of the tax credit allocated to the qualified7
697+taxpayer; and8
698+(III) The serial number of the tax credit certificate issued to the9
699+qualified taxpayer.10
700+(b) The department shall maintain records of each tax credit11
701+certificate issued, transferred, or assumed that are sufficient to allow the12
702+division of insurance in the department of regulatory agencies to verify13
703+the issuance and ownership of the credit.14
704+24-48.5-607. [Formerly 24-36-207] Use of small business15
705+recovery tax credits - carry over. (1) For a tax credit certificate issued16
706+in fiscal year 2020-21:17
707+(a) The qualified taxpayer may claim up to fifty percent of the18
708+credit against premium tax liability incurred for a taxable year that begins19
709+on or after January 1, 2025; except that a taxpayer may not reduce its20
710+estimated tax payments in proportion to such credit prior to July 1, 2025;21
711+and22
712+(b) The qualified taxpayer may claim the remaining amount of the23
713+credit against premium tax liability incurred for a taxable year that begins24
714+on or after January 1, 2026; except that a taxpayer may not reduce its25
715+estimated tax payments in proportion to such credit prior to July 1, 2026.26
716+(2) For a tax credit certificate issued in fiscal year 2021-22 or27
717+1453
718+-23- fiscal year 2022-23:1
719+(a) The qualified taxpayer may claim up to fifty percent of the2
720+credit against premium tax liability incurred for a taxable year that begins3
721+on or after January 1, 2023; except that a taxpayer may not reduce its4
722+estimated tax payments in proportion to such credit prior to July 1, 2023;5
723+and6
724+(b) The qualified taxpayer may claim the remaining amount of the7
725+credit against premium tax liability incurred for a taxable year that begins8
726+on or after January 1, 2024; except that a taxpayer may not reduce the9
727+taxpayer's estimated tax payments in proportion to such credit prior to10
728+July 1, 2024.11
729+(3) (a) The total credit to be applied by a qualified taxpayer in any12
730+one year must not exceed the premium tax liability of the qualified13
731+taxpayer for the taxable year. If the qualified taxpayer cannot use the14
732+entire amount of the tax credit for the taxable year in which the taxpayer15
733+is eligible for the credit, the excess may be carried over to succeeding16
734+taxable years and used as a credit against the premium tax liability of the17
735+taxpayer for those taxable years; except that:18
736+(I) For a credit issued in fiscal year 2020-21, the credit may not be19
737+carried over to any taxable year that begins after December 31, 2031; and20
738+(II) For a credit issued in fiscal year 2021-22 or 2022-23, the21
739+credit may not be carried over to any taxable year that begins after22
740+December 31, 2029.23
741+(b) Any amount of the credit that is not timely claimed expires and24
742+is not refundable.25
743+(4) A qualified taxpayer claiming a credit under this part 2 PART26
744+6 shall submit the tax credit certificate with its tax return.27
745+1453
746+-24- (5) A qualified taxpayer claiming a tax credit under this part 21
747+shall PART 6 WILL not be required to pay any additional or retaliatory tax2
748+as a result of claiming the credit.3
749+(6) If a qualified taxpayer holding an unclaimed tax credit is part4
750+of a merger, acquisition, or line of business divestiture transaction, the tax5
751+credit may be transferred to and assumed by the resulting entity if the6
752+resulting entity is an insurance company authorized to do business in7
753+Colorado that has premium tax liability. The qualified taxpayer that8
754+originally purchased the credit and the resulting entity shall notify the9
755+department in writing of the transfer or assumption of the credit in10
756+accordance with procedures adopted by the department. The department11
757+shall provide a copy of the notice to the division of insurance in the12
758+department of regulatory agencies and shall maintain a record of the13
759+transfer or assumption of the tax credit. The transfer or assumption of the14
760+tax credit does not affect the time schedule for claiming the tax credit as15
761+provided in this section.16
762+24-48.5-608. [Formerly 24-36-208] Small business recovery and17
708763 resiliency fund. (1) The small business recovery
709-AND RESILIENCY fund is
710-hereby created in the state treasury. The fund consists of:
711-(a) Tax credit sale proceeds received from qualified taxpayers and
764+AND RESILIENCY fund18
765+is hereby created in the state treasury. The fund consists of:19
766+(a) Tax credit sale proceeds received from qualified taxpayers and20
712767 deposited in the fund pursuant to section 24-36-205
713- SECTION 24-48.5-605;
714-(b) Distributions, revenue, or money returned to the state from a
715-loan program established pursuant to section 24-36-205 SECTION
716-PAGE 20-HOUSE BILL 24-1453 24-48.5-605 and deposited in the fund; and
717-(c) Any other money that the general assembly may appropriate or
718-transfer to the fund;
719-AND
720-(d) ANY GIFTS, GRANTS, DONATIONS, OR FEDERAL FUNDS RECEIVED
721-PURSUANT TO SUBSECTION
722-(7) OF THIS SECTION.
723-(2) The state treasurer shall credit all interest and income derived
724-from the deposit and investment of money in the small business recovery
725-AND RESILIENCY fund to the fund.
726-(3) Money in the fund is continuously appropriated to the
768+ SECTION 24-48.5-605;21
769+(b) Distributions, revenue, or money returned to the state from a22
770+loan program established pursuant to section 24-36-205 SECTION23
771+24-48.5-605 and deposited in the fund; and24
772+(c) Any other money that the general assembly may appropriate25
773+or transfer to the fund;
774+AND26
775+(d) A
776+NY GIFTS, GRANTS, DONATIONS, OR FEDERAL FUNDS RECEIVED27
777+1453
778+-25- PURSUANT TO SUBSECTION (7) OF THIS SECTION.1
779+(2) The state treasurer shall credit all interest and income derived2
780+from the deposit and investment of money in the small business recovery3
781+AND RESILIENCY fund to the fund.4
782+(3) Money in the fund is continuously appropriated to the5
727783 department
728- OFFICE for the purposes specified in this part 2 PART 6. The
729-department OFFICE may expend money in the fund to pay for its direct and
730-indirect costs in implementing and administering this part 2 PART 6.
731-(4) Beginning in fiscal year 2027-28, the state treasurer shall credit
732-any unexpended and unencumbered money remaining in the fund at the end
733-of a fiscal year to the general fund.
734-(5) The state treasurer shall transfer all unexpended and
735-unencumbered money in the fund at the end of the fiscal year on June 30,
736-2037, to the general fund.
737-(6) This section is repealed, effective July 1, 2037.
738-(7) THE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR
739-DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS
740-PART
741-6. THE OFFICE MAY ACCEPT AND EXPEND ANY FEDERAL MONEY MADE
742-AVAILABLE FOR ANY PURPOSE CONSISTENT WITH THE PROVISIONS OF THIS
743-PART
744-6. THE OFFICE SHALL TRANSMIT ALL MONEY RECEIVED THROUGH GIFTS ,
745-GRANTS, DONATIONS, OR FEDERAL MONEY TO THE STATE TREASURER , WHO
746-SHALL CREDIT THE MONEY TO THE SMALL BUSINESS RECOVERY AND
747-RESILIENCY FUND
748-.
749-24-48.5-609. Transfer of functions - continuity of existence.
784+ OFFICE for the purposes specified in this part 2 PART 6. The6
785+department OFFICE may expend money in the fund to pay for its direct and7
786+indirect costs in implementing and administering this part 2 PART 6.8
787+(4) Beginning in fiscal year 2027-28, the state treasurer shall9
788+credit any unexpended and unencumbered money remaining in the fund10
789+at the end of a fiscal year to the general fund.11
790+(5) The state treasurer shall transfer all unexpended and12
791+unencumbered money in the fund at the end of the fiscal year on June 30,13
792+2037, to the general fund.14
793+(6) This section is repealed, effective July 1, 2037.15
794+(7) T
795+HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,16
796+OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF17
797+THIS PART 6. THE OFFICE MAY ACCEPT AND EXPEND ANY FEDERAL MONEY18
798+MADE AVAILABLE FOR ANY PURPOSE CONSISTENT WITH THE PROVISIONS19
799+OF THIS PART 6. THE OFFICE SHALL TRANSMIT ALL MONEY RECEIVED20
800+THROUGH GIFTS, GRANTS, DONATIONS, OR FEDERAL MONEY TO THE STATE21
801+TREASURER, WHO SHALL CREDIT THE MONEY TO THE SMALL BUSINESS22
802+RECOVERY AND RESILIENCY FUND .23
803+24-48.5-609. Transfer of functions - continuity of existence.24
750804 (1) O
751-N SEPTEMBER 1, 2024, THE POWERS, DUTIES, AND FUNCTIONS OF THE
752-DEPARTMENT IN CONNECTION WITH THE SMALL BUSINESS RECOVERY AND
753-RESILIENCY LOAN PROGRAM PURSUANT TO THE FORMER PART
754-2 OF ARTICLE
755-PAGE 21-HOUSE BILL 24-1453 36 OF THIS TITLE 24 ARE TRANSFERRED TO THE OFFICE PURSUANT TO THIS
756-SECTION
757-.
805+N SEPTEMBER 1, 2024, THE POWERS, DUTIES, AND FUNCTIONS OF THE25
806+DEPARTMENT IN CONNECTION WITH THE SMALL BUSINESS RECOVERY AND26
807+RESILIENCY LOAN PROGRAM PURSUANT TO THE FORMER PART 2 OF27
808+1453
809+-26- ARTICLE 36 OF THIS TITLE 24 ARE TRANSFERRED TO THE OFFICE PURSUANT1
810+TO THIS SECTION.2
758811 (2) (a) O
759-N AND AFTER SEPTEMBER 1, 2024, THE OFFICERS AND
760-EMPLOYEES OF THE DEPARTMENT WHOSE POWERS
761-, DUTIES, AND FUNCTIONS
762-CONCERN THE SMALL BUSINESS RECOVERY AND RESILIENCY L OAN PROGRAM
763-AND WHOSE EMPLOYMENT IS DEEMED NECESSARY TO CARRY OUT THE SMALL
764-BUSINESS RECOVERY AND RESILIENCY LOAN PROGRAM ARE TRANSFERRED TO
765-THE DIVISION OF BUSINESS FUNDING AND INCENTIVES WITHIN THE OFFICE
766-AND BECOME EMPLOYEES THEREOF
767-.
812+N AND AFTER SEPTEMBER 1, 2024, THE OFFICERS AND3
813+EMPLOYEES OF THE DEPARTMENT WHOSE POWERS , DUTIES, AND4
814+FUNCTIONS CONCERN THE SMALL BUSINESS RECOVERY AND RESILIENCY5
815+LOAN PROGRAM AND WHOSE EMPLOYMENT IS DEEMED NECESSARY TO6
816+CARRY OUT THE SMALL BUSINESS RECOVERY AND RESILIENCY LOAN7
817+PROGRAM ARE TRANSFERRED TO THE DIVISION OF BUSINESS FUNDING AND8
818+INCENTIVES WITHIN THE OFFICE AND BECOME EMPLOYEES THEREOF .9
768819 (b) A
769-NY EMPLOYEES WHO ARE TRANSFERRED TO THE OFFICE
770-PURSUANT TO THIS SUBSECTION
771-(2) AND WHO ARE CLASSIFIED EMPLOYEES
772-IN THE STATE PERSONNEL SYSTEM SHALL RETAIN ALL RIGHTS TO THE
773-PERSONNEL SYSTEM AND RETIREMENT BENEFITS PURSUANT TO THE LAWS OF
774-THE STATE
775-, AND THEIR SERVICES SHALL BE DEEMED TO HAVE BEEN
776-CONTINUOUS
777-. ALL TRANSFERS AND ANY ABOLISHMENT OF POSITIONS IN THE
778-STATE PERSONNEL SYSTEM SHALL BE MADE AND PROCESSED IN ACCOR DANCE
779-WITH STATE PERSONNEL SYSTEM LAWS AND REGULATIONS
780-.
820+NY EMPLOYEES WHO ARE TRANSFERRED TO THE OFFICE10
821+PURSUANT TO THIS SUBSECTION (2) AND WHO ARE CLASSIFIED EMPLOYEES11
822+IN THE STATE PERSONNEL SYSTEM SHALL RETAIN ALL RIGHTS TO THE12
823+PERSONNEL SYSTEM AND RETIREMENT BENEFITS PURSUANT TO THE LAWS13
824+OF THE STATE, AND THEIR SERVICES SHALL BE DEEMED TO HAVE BEEN14
825+CONTINUOUS. ALL TRANSFERS AND ANY ABOLISHMENT OF POSITIONS IN15
826+THE STATE PERSONNEL SYSTEM SHALL BE MADE AND PROCESSED IN16
827+ACCORDANCE WITH STATE PERSONNEL SYSTEM LAWS AND REGULATIONS .17
781828 (3) O
782-N OR BEFORE SEPTEMBER 1, 2024, ALL ITEMS OF PROPERTY,
783-REAL AND PERSONAL, INCLUDING OFFICE FURNITURE AND FIXTURES, BOOKS,
784-DOCUMENTS, AND RECORDS OF THE DEPARTMENT PERTAINING TO THE
785-POWERS
786-, DUTIES, AND FUNCTIONS TRANSFERRED TO THE OFFICE ARE
787-TRANSFERRED TO AND BECOME THE PROPERTY OF THE OFFICE
788-.
829+N OR BEFORE SEPTEMBER 1, 2024, ALL ITEMS OF PROPERTY,18
830+REAL AND PERSONAL , INCLUDING OFFICE FURNITURE AND FIXTURES ,19
831+BOOKS, DOCUMENTS, AND RECORDS OF THE DEPARTMENT PERTAINING TO20
832+THE POWERS, DUTIES, AND FUNCTIONS TRANSFERRED TO THE OFFICE ARE21
833+TRANSFERRED TO AND BECOME THE PROPERTY OF THE OFFICE .22
789834 (4) W
790-HENEVER THE DEPARTMENT OR THE STATE TREASURER IS
791-REFERRED TO OR DESIGNATED BY A CONTRACT OR OTHER DOCUMENT IN
792-CONNECTION WITH THE POWERS
793-, DUTIES, AND FUNCTIONS TRANSFERRED TO
794-THE OFFICE PURSUANT TO THIS SECTION
795-, SUCH REFERENCE OR DESIGNATION
796-WILL BE DEEMED TO APPLY TO THE OFFICE
797-, AS APPLICABLE. ALL CONTRACTS
798-ENTERED INTO BY THE DEPARTMENT OR THE STATE TREASURER PRIOR TO
799-SEPTEMBER 1, 2024, IN CONNECTION WITH THE SMALL BUSINESS RECOVERY
800-AND RESILIENCY LOAN PROGRAM ARE HEREBY VALIDATED
801-, WITH THE OFFICE
802-SUCCEEDING TO ALL THE RIGHTS AND OBLIGATIONS OF SUCH CONTRACTS
803-.
804-A
805-NY APPROPRIATIONS OF MONEY FROM PRIOR FISCAL YEARS OPEN TO
806-SATISFY OBLIGATIONS INCURRED PURSUANT TO SUCH CONTRACTS ARE
807-TRANSFERRED AND APPROPRIATED TO THE OFFICE FOR THE PAYMENT OF
808-SUCH OBLIGATIONS
809-.
810-PAGE 22-HOUSE BILL 24-1453 (5) ALL POLICIES AND GUIDELINES OF THE DEPARTMENT IN
811-CONNECTION WITH THE POWERS
812-, DUTIES, AND FUNCTIONS TRANSFERRED TO
813-THE OFFICE PURSUANT TO THIS SECTION CONTINUE TO BE EFFECTIVE UNTIL
814-REVISED
815-, AMENDED, REPEALED, OR NULLIFIED PURSUANT TO LAW.
835+HENEVER THE DEPARTMENT OR THE STATE TREASURER IS23
836+REFERRED TO OR DESIGNATED BY A CONTRACT OR OTHER DOCUMENT IN24
837+CONNECTION WITH THE POWERS , DUTIES, AND FUNCTIONS TRANSFERRED25
838+TO THE OFFICE PURSUANT TO THIS SECTION , SUCH REFERENCE OR26
839+DESIGNATION WILL BE DEEMED TO APPLY TO THE OFFICE , AS APPLICABLE.27
840+1453
841+-27- ALL CONTRACTS ENTERED INTO BY THE DEPARTMENT OR THE STATE1
842+TREASURER PRIOR TO SEPTEMBER 1, 2024, IN CONNECTION WITH THE2
843+SMALL BUSINESS RECOVERY AND RESILIENCY LOAN PROGRAM ARE HEREBY3
844+VALIDATED, WITH THE OFFICE SUCCEEDING TO ALL THE RIGHTS AND4
845+OBLIGATIONS OF SUCH CONTRACTS . ANY APPROPRIATIONS OF MONEY5
846+FROM PRIOR FISCAL YEARS OPEN TO SATISFY OBLIGATIONS INCURRED6
847+PURSUANT TO SUCH CONTRACTS ARE TRANSFERRED AND APPROPRIATED7
848+TO THE OFFICE FOR THE PAYMENT OF SUCH OBLIGATIONS .8
849+(5) A
850+LL POLICIES AND GUIDELINES OF THE DEPARTMENT IN9
851+CONNECTION WITH THE POWERS , DUTIES, AND FUNCTIONS TRANSFERRED10
852+TO THE OFFICE PURSUANT TO THIS SECTION CONTINUE TO BE EFFECTIVE11
853+UNTIL REVISED, AMENDED, REPEALED, OR NULLIFIED PURSUANT TO LAW.12
816854 (6) T
817-HE RELOCATION OF THE CLIMBER ACT FROM THE
818-DEPARTMENT TO THE OFFICE PURSUANT TO THIS PART
819-6 DOES NOT AFFECT
820-THE VALIDITY OF ANY AGREEMENTS ENTERED INTO BY OR TAX CREDIT
821-CERTIFICATES ISSUED BY THE STATE TREASURER OR THE DEPARTMENT
822-PURSUANT TO THE AUTHORITY CONTAINED IN PART
823-2 OF ARTICLE 36 OF TITLE
824-24 AS IT EXISTED PRIOR TO SEPTEMBER 1, 2024.
825-SECTION 2. Repeal of provisions being relocated in this act. In
826-Colorado Revised Statutes, repeal 24-36-201, 24-36-202, 24-36-203,
827-24-36-204, 24-36-205, 24-36-206, 24-36-207, and 24-36-208.
828-SECTION 3. Repeal of provisions not being relocated in this act.
829-In Colorado Revised Statutes, repeal 24-36-209 and 24-36-210 as follows:
855+HE RELOCATION OF THE CLIMBER ACT FROM THE13
856+DEPARTMENT TO THE OFFICE PURSUANT TO THIS PART 6 DOES NOT AFFECT14
857+THE VALIDITY OF ANY AGREEMENTS ENTERED INTO BY OR TAX CREDIT15
858+CERTIFICATES ISSUED BY THE STATE TREASURER OR THE DEPARTMENT16
859+PURSUANT TO THE AUTHORITY CONTAINED IN PART 2 OF ARTICLE 36 OF17
860+TITLE 24 AS IT EXISTED PRIOR TO SEPTEMBER 1, 2024.18
861+SECTION 2. Repeal of provisions being relocated in this act.19
862+In Colorado Revised Statutes, repeal 24-36-201, 24-36-202, 24-36-203,20
863+24-36-204, 24-36-205, 24-36-206, 24-36-207, and 24-36-208.21
864+SECTION 3. Repeal of provisions not being relocated in this22
865+act. In Colorado Revised Statutes, repeal 24-36-209 and 24-36-210 as23
866+follows:24
830867 24-36-209. Office of economic development. The office of
831-economic development shall assist the state treasurer and the department in
832-implementing this part 2.
833-24-36-210. Repeal of part. This part 2 is repealed, effective
834-December 31, 2040.
835-SECTION 4. In Colorado Revised Statutes, 24-75-402, amend
836-(5)(qq) as follows:
837-24-75-402. Cash funds - limit on uncommitted reserves -
838-reduction in the amount of fees - exclusions - definitions - repeal.
839-(5) Notwithstanding any provision of this section to the contrary, the
840-following cash funds are excluded from the limitations specified in this
841-section:
868+25
869+economic development shall assist the state treasurer and the department26
870+in implementing this part 2.27
871+1453
872+-28- 24-36-210. Repeal of part. This part 2 is repealed, effective1
873+December 31, 2040.2
874+SECTION 4. In Colorado Revised Statutes, 24-75-402, amend3
875+(5)(qq) as follows:4
876+24-75-402. Cash funds - limit on uncommitted reserves -5
877+reduction in the amount of fees - exclusions - definitions - repeal.6
878+(5) Notwithstanding any provision of this section to the contrary, the7
879+following cash funds are excluded from the limitations specified in this8
880+section:9
842881 (qq) The small business recovery
843-AND RESILIENCY fund created in
882+AND RESILIENCY fund created in10
844883 section 24-36-208
845- SECTION 24-48.5-608;
846-SECTION 5. Effective date. This act takes effect on September 1,
847-2024.
848-PAGE 23-HOUSE BILL 24-1453 SECTION 6. Safety clause. The general assembly finds,
849-determines, and declares that this act is necessary for the immediate
850-preservation of the public peace, health, or safety or for appropriations for
851-the support and maintenance of the departments of the state and state
852-institutions.
853-____________________________ ____________________________
854-Julie McCluskie Steve Fenberg
855-SPEAKER OF THE HOUSE PRESIDENT OF
856-OF REPRESENTATIVES THE SENATE
857-____________________________ ____________________________
858-Robin Jones Cindi L. Markwell
859-CHIEF CLERK OF THE HOUSE SECRETARY OF
860-OF REPRESENTATIVES THE SENATE
861- APPROVED________________________________________
862- (Date and Time)
863- _________________________________________
864- Jared S. Polis
865- GOVERNOR OF THE STATE OF COLORADO
866-PAGE 24-HOUSE BILL 24-1453
884+ SECTION 24-48.5-608;11
885+SECTION 5. Effective date. This act takes effect on September12
886+1, 2024.13
887+SECTION 6. Safety clause. The general assembly finds,14
888+determines, and declares that this act is necessary for the immediate15
889+preservation of the public peace, health, or safety or for appropriations for16
890+the support and maintenance of the departments of the state and state17
891+institutions.18
892+1453
893+-29-