Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0242.01 Nicole Myers x4326 SENATE BILL 24-032 Senate Committees House Committees Transportation & Energy A BILL FOR AN ACT C ONCERNING METHODS TO I NCREASE THE USE OF TRANSIT .101 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) Transportation Legislation Review Committee. Statewide transit pass exploratory committee. Section 1 of the bill creates the statewide transit pass exploratory committee (committee) within the department of transportation (department) to produce a viable proposal for the creation, implementation, and administration of a statewide transit pass. The committee is required to meet as necessary to produce a viable proposal by July 1, 2026, with the goal of implementing a statewide transit pass by January 1, 2028. SENATE SPONSORSHIP Priola and Jaquez Lewis, Cutter, Exum, Winter F. HOUSE SPONSORSHIP Vigil, Froelich, Lindsay, Lindstedt, Mabrey, Mauro, Parenti Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. The committee consists of 15 members appointed by the executive director of the department and is required to include representatives of a diverse group of transit agencies throughout the state, a representative of an entity or interest group involved in passenger rail systems, a representative of an organization with a statewide perspective regarding transportation, and 2 representatives of the department, one who is knowledgeable about the department's inter-city regional bus service and one who is knowledgeable about innovative mobility. In conducting its work and in producing a viable proposal for the creation, implementation, and administration of a statewide transit pass the committee is required to consider: ! Various specified logistics of creating a statewide transit pass; ! A method for determining the price of a statewide transit pass; ! A structure for the sale of the statewide transit pass to individuals and to employers for their employees; ! The services that will be offered to statewide transit pass holders; ! The types of statewide transit passes that would be offered, including different options for the duration of the pass to accommodate Colorado residents and visitors to Colorado; ! Additional opportunities for collaboration across transit agencies in the state to make it easier and more appealing for people to use transit; ! The technology that would be necessary to monitor the use of the statewide transit pass and track ridership across transit agencies; ! Local, tribal, state, and federal laws, rules, or regulations that need to be considered in connection with the creation of a statewide transit pass; ! The best method for advertising and marketing a statewide transit pass; ! The potential impacts that a statewide transit pass will have on transit pass programs that are currently offered by transit agencies; ! The potential impacts of section 20 of article X of the state constitution to local governments in connection with revenue generated by the sale of a statewide transit pass; ! A proposal for the structure and composition of a permanent advisory board to oversee the creation, implementation, and administration of a statewide transit pass; and ! Any other issues that need to be discussed or addressed, as deemed necessary and appropriate by a majority vote of the SB24-032 -2- members of the committee. In producing a viable proposal for the creation, implementation, and administration of a statewide transit pass, the committee is required to solicit input from specified subject matter experts and interested parties across the state. The committee is required to submit its proposal for the creation, implementation, and administration of a statewide transit pass, including recommendations for any necessary legislation in connection with the proposal, to the executive director and the members of the transportation legislation review committee of the general assembly on or before July 1, 2026. Ozone season transit grant program. The ozone season transit grant program was created in the Colorado energy office in 2022. Section 2 makes the following changes to the ozone season transit grant program: ! Relocates the ozone season transit grant program to the department; ! Requires the transit association that receives money from the state and uses the money to make grants to transit agencies to consider grants that have been or will be awarded to the transit agency through the youth fare free transit grant program, created in the bill, when making grants to ensure that transit agencies do not receive grants through the ozone season transit grant program for services that are paid for with grants from the youth fare free transit grant program; ! Requires the state treasurer to transfer $7 million to the ozone season transit grant program fund on July 1, 2024, and on July 1 of each year thereafter; and ! Makes the ozone season transit grant program permanent by repealing the statute that would repeal the ozone season transit grant program on July 1, 2024. Youth fare free transit grant program. Section 3 creates the youth fare free transit grant program in the department to provide grants to the regional transportation district (RTD) and a transit association to provide fare free year-round transit services for individuals who are 19 years of age or younger (youth). To receive a grant, a transit association or the RTD must submit an application to the department in accordance with the policies established by the department. A transit association that receives a grant may use the money to make grants to eligible transit agencies. The eligible transit agencies and the RTD may use the grant money to provide operating support for its transit operations and general transit programs, so long as the eligible transit agency or the RTD provides uninterrupted fare free year-round transit services for youth riders. The RTD is required to report to the department and an eligible SB24-032 -3- transit agency that receives a grant from a transit association is required to report to the transit association regarding the estimated change in youth ridership during the year in which fare free services were offered compared to previous years, any changes that the RTD or the eligible transit agency would make in how it provides fare free transit services to youth or in its use of the grant money based on its experiences, and how the RTD or the eligible transit agency marketed the fare free transit services for youth. The transit association is required to submit to the department a summary of the reported information for all eligible transit agencies that received a grant through the transit association. The bill creates the youth fare free transit grant program fund (fund) and transfers $7 million from the general fund to the fund on July 1, 2024, and on July 1 of each year thereafter. The money in the fund is continuously appropriated to the department for the youth fare free transit grant program. The department is required to establish policies governing the youth fare free transit grant program and to report to the house of representatives transportation, housing, and local government committee and the senate transportation committee, or their successor committees, by December 31 of each year of the program. Income tax credit for the purchase of a transit pass. For income tax years beginning on or after January 1, 2024, but before January 1, 2029, section 4 creates an income tax credit allowed to any taxpayer in an amount equal to 30% of the amount spent by the taxpayer to purchase one or more transit passes for use by the taxpayer during the income tax year for which the credit is claimed. To claim the credit a taxpayer is required to include a credit certificate issued by the department with the income tax return filed with the department of revenue. The credit certificate that the department issues must identify the taxpayer and certify that the taxpayer purchased one or more transit passes for the taxpayer's use during the income tax year for which the credit is claimed. The amount of the credit not used as an offset against income taxes in the current income tax year is refunded to the taxpayer. No later than January 1, 2025, and no later than January 1 of each year thereafter through January 1, 2029, the department is required to provide the department of revenue with an electronic report of the taxpayers receiving a credit certificate. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 43-1-132 as2 follows:3 SB24-032-4- 43-1-132. Statewide transit pass exploratory committee -1 legislative declaration. (1) T HE GENERAL ASSEMBLY HEREBY FINDS AND2 DECLARES THAT:3 (a) (I) O VER-RELIANCE ON PERSONAL PASSENGER VEHICLES FOR4 TRANSPORTATION CONTRIBUTES TO POOR AIR QUALITY AND CLIMATE5 CHANGE AND HAS A NEGATIVE ECONOMIC IMPACT ON FAMILIES IN THE6 STATE;7 (II) (A) N ATIONWIDE, THE NUMBER OF JOBS WITHIN THE TYPICAL8 COMMUTE DISTANCE FOR RESIDENTS IN MAJOR METROPOLITAN AREAS HAS9 DECLINED OVER TIME ACCORDING TO A REPORT BY THE BROOKINGS10 I NSTITUTION TITLED "THE GROWING DISTANCE BETWEEN PEOPLE AND11 J OBS IN METROPOLITAN AMERICA";12 (B) C OLORADANS DRIVE MORE MILES PER PERSON T HAN THEY13 USED TO, IN PART DUE TO STRESS ON TRANSPORTATION INFRASTRUCTURE14 AND INCREASING HOUSEHOLD COSTS ; AND15 (C) S INCE 1981, PER CAPITA VEHICLE MILES TRAVELED IN16 C OLORADO HAVE RISEN BY OVER TWENTY PERCENT ACCORDING TO DATA17 FROM THE FEDERAL HIGHWAY ADMINISTRATION;18 (III) H IGH TRANSPORTATION COSTS IMPACT LOW -INCOME19 HOUSEHOLDS IN PARTICULAR , WITH HOUSEHOLDS MAKING LESS THAN20 FORTY THOUSAND DOLLARS PER YEAR IN THE WESTERN UNITED STATES21 SPENDING OVER TWENTY -FOUR PERCENT OF THEIR INCOME ON22 TRANSPORTATION, WHEN SPENDING MORE THAN FIFTEEN PERCENT OF23 INCOME ON TRANSPORTATION IS CONSIDERED COST BURDENED ,24 ACCORDING TO DATA FROM THE BUREAU OF LABOR STATISTICS25 C ONSUMER EXPENDITURE SURVEYS;26 (IV) (A) I N ADDITION TO ECONOMIC IMPACTS , THE INCREASE IN27 SB24-032 -5- VEHICLE TRAFFIC HAS AN ENVIRONMENTAL IMPACT ;1 (B) T HE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY2 HAS CLASSIFIED THE DENVER METRO/NORTH FRONT RANGE AREA AS3 BEING IN SEVERE NONATTAINMENT FOR OZONE AND GROUND LEVEL4 OZONE, WHICH HAS SERIOUS IMPACTS ON HUMAN HEALTH , PARTICULARLY5 FOR VULNERABLE POPULATIONS ;6 (C) A CCORDING TO THE GREENHOUSE GAS POLLUTION REDUCTION7 ROADMAP, PUBLISHED BY THE COLORADO ENERGY OFFICE AND DATED8 J ANUARY 14, 2021, THE TRANSPORTATION SECTOR IS THE SINGLE LARGEST9 SOURCE OF GREENHOUSE GAS POLLUTION IN COLORADO;10 (D) N EARLY SIXTY PERCENT OF THE GREENHOUSE GAS EMISSIONS11 FROM THE TRANSPORTATION SECTOR COME FROM LIGHT -DUTY VEHICLES,12 WHICH CONSTITUTE THE MAJORITY OF CARS AND TRUCKS THAT13 C OLORADANS DRIVE EVERY DAY ;14 (E) A S PART OF THE GREENHOUSE GAS POLLUTION REDUCTION15 ROADMAP, A STRATEGIC ACTION PLAN TO ACHIEVE LEGISLATIVELY16 ADOPTED TARGETS OF REDUCING GREENHOUSE GAS POLLUTION17 ECONOMY-WIDE BY FIFTY PERCENT BELOW 2005 LEVELS BY 2030 AND18 NINETY PERCENT BY 2050, THE STATE COMMITTED TO REDUCING19 EMISSIONS FROM THE TRANSPORTATION SECTOR BY FORTY -ONE PERCENT20 BY 2030 FROM A 2005 BASELINE; AND21 (F) T HE GREENHOUSE GAS TRANSPORTATION PLANNING22 S TANDARD ADOPTED BY THE TRANSPORTATION COMMISSION IN 2021 SET23 A TARGET TO REDUCE TRANSPORTATION GREENHOUSE GAS EMISSIONS24 THROUGH THE TRANSPORTATION PLANNING PROCESS BY ONE MILLION FIVE25 HUNDRED THOUSAND TONS BY 2030;26 (b) T HE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT :27 SB24-032 -6- (I) THE ENVIRONMENTAL AND ECONOMIC ISSUES THAT RESULT1 FROM INCREASED RELIANCE ON PASSENGER VEHICLES AND AN INCREASE2 IN THE NUMBER OF MILES TRAVELED PER PERSON IS A MATTER OF3 STATEWIDE CONCERN;4 (II) O NE OF THE KEY FINDINGS OF THE GREENHOUSE GAS5 POLLUTION REDUCTION ROADMAP IS THAT REDUCING GROWTH IN DRIVING6 IS AN IMPORTANT TOOL TO ACHIEVE THE STATE 'S CLIMATE GOALS AND7 THAT EXPANDING PUBLIC TRANSIT IS AN IMPORTANT NEAR -TERM ACTION8 THAT CAN HELP ACHIEVE THOSE GOALS ; AND9 (III) I T IS THE STATE'S RESPONSIBILITY TO SUPPORT PROGRAMS10 THAT REDUCE THE GROWTH IN DRIVING AND EXPAND PUBLIC TRANSIT .11 (2) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE12 REQUIRES:13 (a) "C OMMITTEE" MEANS THE STATEWIDE TRANSIT PASS14 EXPLORATORY COMMITTEE CREATED IN SUBSECTION (3) OF THIS SECTION.15 (b) "S TATEWIDE TRANSIT PASS" OR "PASS" MEANS A SINGLE16 TRANSIT PASS THAT CAN BE USED ON TRANSIT PROVIDED BY TRANSIT17 AGENCIES ACROSS THE STATE.18 (c) "T RANSIT AGENCY" MEANS A PROVIDER OF PUBLIC19 TRANSPORTATION, AS DEFINED IN 49 U.S.C. SEC. 5302 (15), AS AMENDED.20 (3) (a) N O LATER THAN OCTOBER 1, 2024, THE EXECUTIVE21 DIRECTOR SHALL CREATE A STATEWIDE TRANSIT PASS EXPLORATORY22 COMMITTEE TO PRODUCE A VIABLE PROPOSAL FOR THE CREATION ,23 IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE TRANSIT PASS .24 T HE COMMITTEE SHALL MEET AS NECESSARY TO PRODUCE A VIABLE25 PROPOSAL BY JULY 1, 2026, WITH THE GOAL OF IMPLEMENTING A26 STATEWIDE TRANSIT PASS BY JANUARY 1, 2028.27 SB24-032 -7- (b) THE COMMITTEE CONSISTS OF THE FOLLOWING FIFTEEN1 MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR :2 (I) T HREE REPRESENTATIVES FROM THE FIVE LARGEST TRANSIT3 AGENCIES IN THE STATE;4 (II) E IGHT REPRESENTATIVES FROM A DIVERSE GROUP OF TRANSIT5 AGENCIES THROUGHOUT THE STATE INCLUDING AT LEAST ONE6 REPRESENTATIVE FROM A TRANSIT AGENCY THAT SERVES A RURAL PART7 OF THE STATE THAT IS NOT A RESORT COMMUNITY AND AT LEAST ONE8 REPRESENTATIVE FROM A TRANSIT AGENCY THAT SERVES ONE OR MORE9 RESORT COMMUNITIES;10 (III) O NE REPRESENTATIVE OF AN ENTITY OR INTEREST GROUP11 INVOLVED IN THE PROMOTION , PLANNING, OR DEVELOPMENT OF12 PASSENGER RAIL SYSTEMS;13 (IV) O NE REPRESENTATIVE FROM AN ORGANIZATION WITH A14 STATEWIDE PERSPECTIVE REGARDING TRANSPORTATION ; AND15 (V) T WO REPRESENTATIVES OF THE DEPARTMENT , ONE WHO IS16 KNOWLEDGEABLE ABOUT THE DEPARTMENT 'S INTER-CITY REGIONAL BUS17 SERVICE AND ONE WHO IS KNOWLEDGEABLE ABOUT THE DEPARTMENT 'S18 INNOVATIVE MOBILITY PROGRAM .19 (c) M EMBERS OF THE COMMITTEE SERVE AT THE PLEASURE OF THE20 EXECUTIVE DIRECTOR AND WITHOUT COMPENSATION .21 (4) I N CONDUCTING ITS WORK AND IN PRODUCING A VIABLE22 PROPOSAL FOR THE CREATION, IMPLEMENTATION, AND ADMINISTRATION23 OF A STATEWIDE TRANSIT PASS, THE COMMITTEE SHALL CONSIDER THE24 FOLLOWING:25 (a) T HE LOGISTICS OF CREATING A STATEWIDE TRANSIT PASS ,26 INCLUDING:27 SB24-032 -8- (I) A VIABLE STRUCTURE FOR THE PASS TO ALLOW PASS HOLDERS1 TO USE SERVICES PROVIDED BY TRANSIT AGENCIES ACROSS THE STATE2 WITH A SINGLE PASS;3 (II) A PLAN FOR COORDINATION AMONG TRANSIT AGENCIES4 ACROSS THE STATE TO IMPLEMENT AND ADMINISTER THE PASS ;5 (III) A METHOD FOR COST-SHARING THE EXPENSES IN CONNECTION6 WITH THE CREATION , IMPLEMENTATION , ADMINISTRATION, AND7 ADVERTISEMENT OF THE PASS;8 (IV) A STRUCTURE FOR SHARING , APPORTIONING, AND9 DISTRIBUTING REVENUE FROM THE SALE OF THE PASS AMONG THE TRANSIT10 AGENCIES THAT PARTICIPATE IN THE PASS; AND11 (V) T HE POSSIBILITY OF CREATING A FORMULA TO DISTRIBUTE12 REVENUE FROM THE SALE OF THE PASS AMONG THE TRANSIT AGENCIES13 THAT PARTICIPATE IN THE PASS , THE FACTORS TO CONSIDER IN THE14 CREATION OF SUCH A FORMULA, AND A DETERMINATION REGARDING THE15 FREQUENCY WITH WHICH THE FORMULA WOULD BE RECALCULATED ;16 (b) A METHOD FOR DETERMINING THE PRICE OF A STATEWIDE17 TRANSIT PASS, INCLUDING WHETHER THERE WILL BE OPTIONS FOR18 DISCOUNTED PASSES FOR LOW-INCOME POPULATIONS AND CONSIDERATION19 OF HOW TRANSIT OPERATORS WOULD CONTINUE TO COLLECT A FARE FROM20 THE PASS THAT IS CONSISTENT WITH THEIR EXISTING FARE STRUCTURE ;21 (c) A STRUCTURE FOR THE SALE OF THE STATEWIDE TRANSIT PASS22 TO INDIVIDUALS AND TO EMPLOYERS FOR THEIR EMPLOYEES , INCLUDING:23 (I) A N OPT-IN OR OPT-OUT PROGRAM WITH A MOTOR VEHICLE24 REGISTRATION OR WITH THE RENEWAL OF A DRIVER LICENSE OR STATE25 IDENTIFICATION CARD ISSUED BY THE DEPARTMENT OF REVENUE ;26 (II) O NLINE SALES; AND27 SB24-032 -9- (III) SALES KIOSKS AT AIRPORTS, TRAIN AND BUS STATIONS ,1 TOURISM OFFICES, AND OTHER PHYSICAL LOCATIONS ACROSS THE STATE ;2 (d) T HE SERVICES THAT WILL BE OFFERED TO STATEWIDE TRANSIT3 PASS HOLDERS, INCLUDING:4 (I) C ONSIDERATION OF WHETHER THE PASS WOULD COVER ONLY5 SERVICES ON FIXED ROUTES OR PROVIDE ACCESS-ON-DEMAND SERVICES IN6 ADDITION TO SERVICES ON FIXED ROUTES;7 (II) I F ACCESS-ON-DEMAND SERVICES WOULD BE INCLUDED IN THE8 PASS, HOW THE COST OF THOSE RIDES FACTORS INTO THE COST OF THE9 PASS;10 (III) C ONSIDERATION OF THE REQUIREMENTS OF THE FEDERAL11 "A MERICANS WITH DISABILITIES ACT OF 1990", 42, U.S.C., SEC. 12101, ET12 SEQ., AS AMENDED, REGARDING ACCESSIBILITY AND ACCESS TO TRANSIT ;13 AND14 (IV) C ONSIDERATION OF FEDERAL LAWS RELATING TO15 ANTIDISCRIMINATION, INCLUDING TITLE VI OF THE FEDERAL "CIVIL16 R IGHTS ACT OF 1964", PUB.L. 88-352, AS AMENDED;17 (e) T HE TYPES OF STATEWIDE TRANSIT PASSES THAT WOULD BE18 OFFERED, INCLUDING DIFFERENT OPTIONS FOR THE DURATION OF THE PASS19 TO ACCOMMODATE COLORADO RESIDENTS WHO MAY USE A PASS20 YEAR-ROUND, FOR A PORTION OF THE YEAR, OR OTHER LONGER DURATION,21 AND VISITORS TO COLORADO WHO MAY USE A PASS FOR A DAY , WEEK, OR22 OTHER LIMITED DURATION;23 (f) A DDITIONAL OPPORTUNITIES FOR COLLABORATION ACROSS24 TRANSIT AGENCIES IN THE STATE , IN ADDITION TO THE CREATION ,25 IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE TRANSIT PASS ,26 TO MAKE IT EASIER AND MORE APPEALING FOR PEOPLE TO USE TRANSIT ,27 SB24-032 -10- INCLUDING:1 (I) T HE POSSIBILITY OF TRANSIT AGENCIES ALLOWING CUSTOMERS2 TO PURCHASE A TICKET IN ONE TRANSACTION FOR AN ENTIRE TRIP THAT3 REQUIRES TRANSIT SERVICES PROVIDED BY MULTIPLE TRANSIT AGENCIES ;4 AND5 (II) T HE POSSIBILITY OF TRANSIT AGENCIES SUBMITTING THEIR6 TRIP PLANNING DATA TO A CENTRAL SOURCE TO ALLOW CUSTOMERS TO7 CREATE AN ITINERARY THAT REQUIRES SERVICES PROVIDED BY MULTIPLE8 TRANSIT AGENCIES;9 (g) T HE TECHNOLOGY THAT WOULD BE NEEDED TO MONITOR THE10 USE OF THE STATEWIDE TRANSIT PASS AND TRACK RIDERSHIP ACROSS11 TRANSIT AGENCIES TO ASSIST TRANSIT AGENCIES IN DETERMINING AND12 UNDERSTANDING THE FINANCIAL IMPACT OF THE PASS IN THE FUTURE ;13 (h) A NY ADDITIONAL LOCAL, TRIBAL, STATE OR FEDERAL LAWS,14 RULES, OR REGULATIONS THAT NEED TO BE CONSIDERED IN CONNECTION15 WITH THE CREATION OF A STATEWIDE TRANSIT PASS ;16 (i) T HE BEST METHOD FOR ADVERTISING AND MARKETING A17 STATEWIDE TRANSIT PASS;18 (j) T HE POTENTIAL IMPACTS THAT A STATEWIDE TRANSIT PASS19 WILL HAVE ON TRANSIT PASS PROGRAMS THAT ARE CURRENTLY OFFERED20 BY TRANSIT AGENCIES;21 (k) T HE POTENTIAL IMPACTS OF SECTION 20 OF ARTICLE X OF THE22 STATE CONSTITUTION TO LOCAL GOVERNMENTS IN CONNECTION WITH23 REVENUE GENERATED BY THE SALE OF A STATEWIDE TRANSIT PASS ;24 (l) A PROPOSAL FOR THE STRUCTURE AND COMPOSITION OF A25 PERMANENT ADVISORY BOARD TO OVERSEE THE CREATION ,26 IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE TRANSIT PASS ;27 SB24-032 -11- AND1 (m) A NY OTHER ISSUES THAT NEED TO BE DISCUSSED OR2 ADDRESSED, AS DEEMED NECESSARY AND APPROPRIATE BY A MAJORITY3 VOTE OF THE MEMBERS OF THE COMMITTEE .4 (5) I N PRODUCING A VIABLE PROPOSAL FOR THE CREATION ,5 IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE TRANSIT PASS ,6 THE COMMITTEE SHALL SOLICIT INPUT FROM SUBJECT MATTER EXPERTS7 AND INTERESTED PARTIES ACROSS THE STATE , INCLUDING:8 (a) T HE TRANSIT AND RAIL ADVISORY COMMITTEE CREATED IN9 SECTION 43-1-1104 (1)(b);10 (b) T RANSIT AGENCIES FROM ACROSS THE STATE , INCLUDING A11 PRESENTATION BY AND DISCUSSION WITH MEMBERS OF THE COMMITTEE12 REGARDING A STATEWIDE TRANSIT PASS AT AN ANNUAL MEETING13 ORGANIZED BY A NONPROFIT ENTITY TO PROVIDE TRAINING ON A VARIETY14 OF TOPICS, INCLUDING TRANSIT MANAGEMENT , LEADERSHIP15 DEVELOPMENT, DRIVER SAFETY, SYSTEM SAFETY, HUMAN SERVICES16 ISSUES, MOBILITY, AND POLICY ISSUES IN CONNECTION WITH THE FEDERAL17 TRANSIT ADMINISTRATION AND THE DEPARTMENT ; AND18 (c) M EMBERS OF THE PUBLIC, INCLUDING AN OPPORTUNITY FOR19 MEMBERS OF THE PUBLIC TO FOLLOW THE WORK OF THE COMMITTEE AND20 TO PROVIDE WRITTEN COMMENTS REGARDING THE PROPOSAL FOR THE21 CREATION, IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE22 TRANSIT PASS OR DISCUSSIONS IN CONNECTION WITH THE PROPOSAL .23 (6) T HE COMMITTEE SHALL SUBMIT ITS PROPOSAL FOR THE24 CREATION, IMPLEMENTATION, AND ADMINISTRATION OF A STATEWIDE25 TRANSIT PASS, INCLUDING RECOMMENDATIONS FOR ANY NECESSARY26 LEGISLATION IN CONNECTION WITH THE PROPOSAL , TO THE EXECUTIVE27 SB24-032 -12- DIRECTOR AND THE MEMBERS OF THE TRANSPORTATION LEGISLATION1 REVIEW COMMITTEE OF THE GENERAL ASSEMBLY ON OR BEFORE JULY 1,2 2026.3 SECTION 2. In Colorado Revised Statutes, add with amended4 and relocated provisions 43-1-133 as follows:5 43-1-133. [Formerly 24-38.5-114]. Ozone season transit grant6 program - fund - creation - policies - report - definitions. (1) As used7 in this section, unless the context otherwise requires:8 (a) "Eligible transit agency" means a transit agency that is:9 (I) A regional service authority providing surface transportation10 pursuant to part 1 of article 7 of title 32, a regional transportation11 authority created pursuant to part 6 of article 4 of title 43, or any other12 political subdivision of the state, public entity, or nonprofit corporation13 providing mass transportation services to the general public other than the14 regional transportation district; and15 (II) Eligible to receive money under a grant authorized by 4916 U.S.C. sec. 5307 or 49 U.S.C. sec. 5311.17 (b) "Fund" means the ozone season transit grant program fund18 established in subsection (8) of this section.19 (c) "Office" means the Colorado energy office created in section20 24-38.5-101.21 (d) (c) "Ozone season" means the period from June 1 to August22 31 of a calendar year; except that, if an eligible transit agency operates in23 an area in which ozone-causing traffic levels are typically highest during24 a different period than June 1 to August 31 of a calendar year and the25 eligible transit agency identifies the different period in an application for26 a grant to offer fare-free service during the identified period that is27 SB24-032 -13- submitted to a transit association in accordance with the requirements of1 this section, "ozone season" means, for that eligible transit agency, the2 different period identified in the grant application.3 (e) (d) "Program" means the ozone season transit grant program4 created in subsection (2) of this section.5 (f) (e) "Regional transportation district" means the regional6 transportation district established in article 9 of title 32.7 (f.5) (f) "Transit agency" means a provider of public8 transportation, as defined in 49 U.S.C. sec. 5302 (15), as amended.9 (g) "Transit association" means a Colorado nonprofit corporation10 formed to represent transit interests in Colorado whose membership11 includes transit agencies, transit-related businesses, and governmental12 entities.13 (2) The ozone season transit grant program is created in the office14 DEPARTMENT. The purposes of the program are:15 (a) To provide grants to transit associations for the purpose of16 providing grants to eligible transit agencies in order to offer free transit17 services for a minimum of thirty days during ozone season; and18 (b) To provide grants to the regional transportation district for the19 purpose of providing free transportation services for a minimum of thirty20 days during ozone season.21 (3) The office DEPARTMENT shall administer the program and22 award grants in accordance with this section and the policies developed23 by the office DEPARTMENT pursuant to subsection (6) of this section.24 Subject to available appropriations, grants shall be paid out of the fund.25 (4) (a) To receive a grant, a transit association or the regional26 transportation district must submit an application to the office27 SB24-032 -14- DEPARTMENT in accordance with the requirements of this section and the1 policies established by the office DEPARTMENT in accordance with2 subsection (6) of this section. The office DEPARTMENT may award grants3 of up to three million dollars each year to a transit association and up to4 eleven million dollars each year to the regional transportation district;5 except that:6 (I) If the office DEPARTMENT awards a grant for a year to a transit7 association in an amount less than three million dollars, then the8 maximum amount of the grant that the office DEPARTMENT may award to9 the transit association for the next year is three million dollars plus an10 amount equal to the difference between three million dollars and the11 amount of the grant awarded to the transit association for the prior year;12 and13 (II) If the office DEPARTMENT awards a grant for a year to the14 regional transportation district in an amount less than eleven million15 dollars, then the maximum amount of the grant that the office16 DEPARTMENT may award to the regional transportation district for the next17 year is eleven million dollars plus an amount equal to the difference18 between eleven million dollars and the amount of the grant awarded to the19 regional transportation district for the prior year.20 (b) A transit association, the regional transportation district, or an21 eligible transit agency that receives a grant from a transit association22 THROUGH THE PROGRAM is not required to expend a grant in the year in23 which it is received and retains the grant amount until it is expended. The24 retention of all or a portion of a grant received during one year by a transit25 association or the regional transportation district for use in a subsequent26 year does not reduce the maximum amount that the transit association or27 SB24-032 -15- regional transportation district is eligible to receive as a new grant during1 the subsequent year as set forth in this subsection (4).2 (5) A grant recipient may use the grant money as follows:3 (a) (I) A transit association that receives a grant may use the4 money to establish a grant program for eligible transit agencies in5 accordance with this section. A transit association may use a portion of6 the grant money to pay its direct and indirect costs in administering the7 grant program including reasonable costs to market the program to8 eligible transit agencies.9 (II) To receive a grant from the transit association, an eligible10 transit agency must submit an application to the transit association. At a11 minimum, the application must describe the free transit services that will12 be newly provided, expanded to include additional free types of service,13 expanded to include additional free routes, or provided more frequently14 with the grant money, indicate to what extent the eligible transit agency15 will match the grant money with other money, and commit to providing16 the new or expanded free services for at least thirty days during the ozone17 season.18 (III) An eligible transit agency that receives a grant through the19 transit association may use the money to cover the costs associated with20 providing new or expanded free transit services within its service area21 during ozone season, including offering additional free services or free22 routes or increasing the frequency of service on routes for which the23 eligible transit agency currently offers free service. Grant money may be24 used to replace fare box revenue and to pay for other expenses necessary25 to implement and measure the effectiveness of the program, including26 reasonable marketing expenses incurred to raise awareness of free service27 SB24-032 -16- and increase ridership, expenses incurred in conducting rider surveys to1 better measure the impact of the program on ridership and vehicle miles2 traveled in private motor vehicles, and expenses associated with an3 increase in ridership as a result of the program.4 (IV) An eligible transit agency shall not use grant money to offset5 or replace funding for free transit services that the eligible transit agency6 offers as of January 1 of the funding year; except that an eligible transit7 agency may use grant money that was not expended in the year in which8 it was received or grant money from a grant awarded for a subsequent9 year to continue funding for any such free transit services that were10 previously funded with grant money.11 (V) In awarding grants under this subsection (5)(a), the transit12 association shall:13 (A) Allocate money among applicants with the goals of reducing14 ozone formation, increasing ridership on transit, and reducing vehicle15 miles traveled in the state; and16 (B) Consider the extent to which the applicant will match grant17 money with other money; AND18 (C) C ONSIDER THE GRANTS THAT APPLICANTS HAVE BEEN19 AWARDED THROUGH THE YOUTH FARE FREE TRANSIT GRANT PROGRAM ,20 CREATED IN SECTION 43-1-134, TO ENSURE THAT THE APPLICANT DOES21 NOT RECEIVE GRANT MONEY PURSUANT TO THE PROGRAM FOR22 TRANSPORTATION SERVICES COVERED BY GRANTS AWARDED THROUGH23 THE YOUTH FARE FREE TRANSIT GRANT PROGRAM .24 (VI) Each eligible transit agency that receives a grant shall report25 on the use of the money to the transit association in accordance with26 policies established by the transit association and the office DEPARTMENT.27 SB24-032 -17- The report must include, at a minimum, information on how the grant1 money was spent; the free services that were offered using the grant2 money; and estimates of the change in ridership during the period that3 free services were offered compared to previous months, the same month4 in previous years, and the months after the program concluded. The report5 may include additional information, including a narrative analysis, to6 provide context on the ridership data included in the report. On or before7 December 1 of each year of the grant program, the transit association8 shall submit a report to the office DEPARTMENT compiling and9 summarizing the reported information for all eligible transit agencies that10 received a grant through the transit association.11 (VII) A transit association receiving a grant shall develop and12 publicize policies for the grant, including the process and deadlines for13 an eligible transit agency to apply for and receive a grant, the information,14 including notice that the eligible transit agency must identify any period15 other than June 1 to August 31 of a calendar year for its ozone season in16 the application, and documentation required for the application, reporting17 requirements and deadlines, and any additional requirements necessary18 to administer the grant.19 (b) (I) The regional transportation district may use grant money20 to cover the costs of providing at least thirty days of free transit on all21 services offered by the regional transportation district. Grant money may22 be used to replace fare box revenue and to pay for other expenses23 necessary to implement the program, including reasonable marketing24 expenses incurred to raise awareness of free service and increase25 ridership and expenses associated with an increase in ridership as a result26 of the program.27 SB24-032 -18- (II) On or before December 1 of each year for which the regional1 transportation district receives a grant, the regional transportation district2 shall submit a report to the office DEPARTMENT on the implementation of3 the program in accordance with the policies established by the office4 DEPARTMENT. At a minimum, the report must include information on how5 the grant money was spent; the free services that were offered using the6 grant money; and estimates of the change in ridership during the period7 that free services were offered compared to previous months, the same8 month in previous years, and the months after the program concluded.9 The report may include additional information, including a narrative10 analysis, to provide context on the ridership data included in the report.11 (III) The state auditor shall audit the regional transportation12 district's use of the grant money as part of its next performance audit of13 the regional transportation district conducted pursuant to section 32-9-11514 (3).15 (6) The office DEPARTMENT shall establish and publicize policies16 for the program. At a minimum, the policies must address the process and17 any deadlines for applying for and receiving a grant under the program,18 the information and documentation required for the application, reporting19 requirements and deadlines, and any additional policies necessary to20 administer the program.21 (7) The office DEPARTMENT may seek, accept, and expend gifts,22 grants, or donations from private or public sources for the purposes of this23 section. The office DEPARTMENT shall transmit all money received24 through gifts, grants, or donations to the state treasurer, who shall credit25 the money to the fund.26 (8) (a) The ozone season transit grant program fund is hereby27 SB24-032 -19- created in the state treasury. The fund consists of money transferred to the1 fund in accordance with subsection (8)(d) SUBSECTIONS (8)(d) AND (8)(e)2 of this section, any other money that the general assembly appropriates or3 transfers to the fund, and any gifts, grants, or donations credited to the4 fund pursuant to subsection (7) of this section.5 (b) The state treasurer shall credit all interest and income derived6 from the deposit and investment of money in the fund to the fund.7 (c) Money in the fund is continuously appropriated to the office8 DEPARTMENT for the purposes specified in this section.9 (d) Three days after May 26, 2022, the state treasurer shall10 transfer twenty-eight million dollars from the general fund to the fund.11 (e) O N JULY 1, 2024, AND ON JULY 1 OF EACH YEAR THEREAFTER,12 THE GENERAL ASSEMBLY SHALL TRANSFER SEVEN MILLION DOLLARS TO13 THE FUND.14 (9) On or before December 31 of each year of the program, the15 office DEPARTMENT shall submit a report on the implementation of the16 program to the house of representatives transportation and local17 government committee and the senate transportation and energy18 committee, or their successor committees. The report must summarize19 and compile the information submitted to the office DEPARTMENT20 pursuant to subsections (5)(a)(VI) and (5)(b)(II) of this section.21 (10) This section is repealed, effective July 1, 2024.22 SECTION 3. In Colorado Revised Statutes, add 43-1-134 as23 follows:24 43-1-134. Youth fare free transit grant program - fund -25 creation - policies - report - definitions - repeal. (1) A S USED IN THIS26 SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :27 SB24-032 -20- (a) "ELIGIBLE TRANSIT AGENCY" MEANS A TRANSIT AGENCY THAT1 IS:2 (I) A REGIONAL SERVICE AUTHORITY PROVIDING SURFACE3 TRANSPORTATION PURSUANT TO PART 1 OF ARTICLE 7 OF TITLE 32, A4 REGIONAL TRANSPORTATION AUTHORITY CREATED PURSUANT TO PART 65 OF ARTICLE 4 OF TITLE 43, OR ANY OTHER POLITICAL SUBDIVISION OF THE6 STATE, PUBLIC ENTITY, OR NONPROFIT CORPORATION PROVIDING MASS7 TRANSPORTATION SERVICES TO THE GENERAL PUBLIC OTHER THAN THE8 REGIONAL TRANSPORTATION DISTRICT ; AND9 (II) E LIGIBLE TO RECEIVE MONEY UNDER A GRANT AUTHORIZED BY10 49 U.S.C. SEC. 5307 OR 49 U.S.C. SEC. 5311.11 (b) "F UND" MEANS THE YOUTH FARE FREE TRANSIT GRANT12 PROGRAM FUND ESTABLISHED IN SUBSECTION (8) OF THIS SECTION.13 (c) "P ROGRAM" MEANS THE YOUTH FARE FREE TRANSIT GRANT14 PROGRAM CREATED IN SUBSECTION (2) OF THIS SECTION.15 (d) "R EGIONAL TRANSPORTATION DISTRICT" MEANS THE REGIONAL16 TRANSPORTATION DISTRICT ESTABLISHED IN ARTICLE 9 OF TITLE 32.17 (e) "T RANSIT AGENCY" MEANS A PROVIDER OF PUBLIC18 TRANSPORTATION, AS DEFINED IN 49 U.S.C. SEC. 5302 (15), AS AMENDED.19 (f) "T RANSIT ASSOCIATION" MEANS A COLORADO NONPROFIT20 CORPORATION FORMED TO REPRESENT TRANSIT INTERESTS IN COLORADO21 WHOSE MEMBERSHIP INCLUDES TRANSIT AGENCIES , TRANSIT-RELATED22 BUSINESSES, AND GOVERNMENTAL ENTITIES .23 (g) "Y OUTH" MEANS AN INDIVIDUAL WHO IS NINETEEN YEARS OF24 AGE OR YOUNGER.25 (2) T HE YOUTH FARE FREE TRANSIT GRANT PROGRAM IS CREATED26 IN THE DEPARTMENT. THE PURPOSES OF THE PROGRAM ARE :27 SB24-032 -21- (a) TO PROVIDE GRANTS TO TRANSIT ASSOCIATIONS FOR THE1 PURPOSE OF PROVIDING GRANTS TO ELIGIBLE TRANSIT AGENCIES IN ORDER2 TO OFFER YEAR-ROUND FARE FREE TRANSIT SERVICES TO YOUTH RIDERS ;3 AND4 (b) T O PROVIDE GRANTS TO THE REGIONAL TRANSPORTATION5 DISTRICT FOR THE PURPOSE OF PROVIDING YEAR -ROUND FARE FREE6 TRANSIT SERVICES TO YOUTH RIDERS.7 (3) T HE DEPARTMENT SHALL ADMINISTER THE PROGRAM AND8 AWARD GRANTS IN ACCORDANCE WITH THIS SECTION AND THE POLICIES9 DEVELOPED BY THE DEPARTMENT PURSUANT TO SUBSECTION (6) OF THIS10 SECTION. SUBJECT TO AVAILABLE APPROPRIATIONS, GRANTS ARE PAID OUT11 OF THE FUND.12 (4) (a) T O RECEIVE A GRANT, A TRANSIT ASSOCIATION OR THE13 REGIONAL TRANSPORTATION DISTRICT MUST SUBMIT AN APPLICATION TO14 THE DEPARTMENT IN ACCORDANCE WITH THE REQUIREMENTS OF THIS15 SECTION AND THE POLICIES ESTABLISHED BY THE DEPARTMENT IN16 ACCORDANCE WITH SUBSECTION (6) OF THIS SECTION. THE DEPARTMENT17 MAY AWARD GRANTS OF UP TO FIVE MILLION DOLLARS EACH YEAR TO A18 TRANSIT ASSOCIATION AND UP TO FOUR MILLION FIVE HUNDRED19 THOUSAND DOLLARS EACH YEAR TO THE REGIONAL TRANSPORTATION20 DISTRICT; EXCEPT THAT:21 (I) I F THE DEPARTMENT AWARDS A GRANT FOR A YEAR TO A22 TRANSIT ASSOCIATION IN AN AMOUNT LESS THAN FIVE MILLION DOLLARS ,23 THEN THE MAXIMUM AMOUNT OF THE GRANT THAT THE DEPARTMENT MAY24 AWARD TO THE TRANSIT ASSOCIATION FOR THE NEXT YEAR IS FIVE MILLION25 DOLLARS PLUS AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN FIVE26 MILLION DOLLARS AND THE AMOUNT OF THE GRANT AWARDED TO THE27 SB24-032 -22- TRANSIT ASSOCIATION FOR THE PRIOR YEAR ; AND1 (II) I F THE DEPARTMENT AWARDS A GRANT FOR A YEAR TO THE2 REGIONAL TRANSPORTATION DISTRICT IN AN AMOUNT LESS THAN FOUR3 MILLION FIVE HUNDRED THOUSAND DOLLARS , THEN THE MAXIMUM4 AMOUNT OF THE GRANT THAT THE DEPARTMENT MAY AWARD TO THE5 REGIONAL TRANSPORTATION DISTRICT FOR THE NEXT YEAR IS FOUR6 MILLION FIVE HUNDRED THOUSAND DOLLARS PLUS AN AMOUNT EQUAL TO7 THE DIFFERENCE BETWEEN FOUR MILLION FIVE HUNDRED THOUSAND8 DOLLARS AND THE AMOUNT OF THE GRANT AWARDED TO THE REGIONAL9 TRANSPORTATION DISTRICT FOR THE PRIOR YEAR .10 (b) A TRANSIT ASSOCIATION, THE REGIONAL TRANSPORTATION11 DISTRICT, OR AN ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT IS12 NOT REQUIRED TO EXPEND A GRANT IN THE YEAR IN WHICH IT IS RECEIVED13 AND RETAINS THE GRANT AMOUNT UNTIL IT IS EXPENDED . THE RETENTION14 OF ALL OR A PORTION OF A GRANT RECEIVED DURING ONE YEAR BY A15 TRANSIT ASSOCIATION OR THE REGIONAL TRANSPORTATION DISTRICT FOR16 USE IN A SUBSEQUENT YEAR DOES NOT REDUCE THE MAXIMUM AMOUNT17 THAT THE TRANSIT ASSOCIATION OR REGIONAL TRANSPORTATION DISTRICT18 IS ELIGIBLE TO RECEIVE PURSUANT TO THIS SUBSECTION (4) AS A NEW19 GRANT DURING THE SUBSEQUENT YEAR .20 (5) (a) (I) A TRANSIT ASSOCIATION THAT RECEIVES A GRANT MAY21 USE THE MONEY TO ESTABLISH A GRANT PROGRAM FOR ELIGIBLE TRANSIT22 AGENCIES IN ACCORDANCE WITH THIS SECTION . A TRANSIT ASSOCIATION23 MAY USE A PORTION OF THE GRANT MONEY TO PAY ITS DIRECT AND24 INDIRECT COSTS IN ADMINISTERING THE GRANT PROGRAM INCLUDING25 REASONABLE COSTS TO CREATE A STATEWIDE MARKETING CAMPAIGN FOR26 USE BY ELIGIBLE TRANSIT AGENCIES.27 SB24-032 -23- (II) TO RECEIVE A GRANT FROM A TRANSIT ASSOCIATION , AN1 ELIGIBLE TRANSIT AGENCY MUST SUBMIT AN APPLICATION TO THE TRANSIT2 ASSOCIATION. AT A MINIMUM, THE APPLICATION MUST DESCRIBE THE3 ELIGIBLE TRANSIT AGENCY 'S CURRENT YOUTH RIDERSHIP AND THE4 METHOD THAT THE ELIGIBLE TRANSIT AGENCY USES TO TRACK YOUTH5 RIDERS.6 (III) A N ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT7 THROUGH THE TRANSIT ASSOCIATION MAY USE THE GRANT MONEY TO8 PROVIDE OPERATING SUPPORT FOR ITS TRANSIT OPERATIONS AND GENERAL9 TRANSIT PROGRAMS, SO LONG AS THE ELIGIBLE TRANSIT AGENCY PROVIDES10 UNINTERRUPTED FARE FREE YEAR -ROUND TRANSIT SERVICES FOR YOUTH11 RIDERS.12 (IV) I N AWARDING GRANTS UNDER THIS SUBSECTION (5)(a), A13 TRANSIT ASSOCIATION SHALL:14 (A) A LLOCATE MONEY AMONG APPLICANTS WITH THE GOALS OF15 INCREASING YOUTH RIDERSHIP ON TRANSIT, REDUCING OZONE FORMATION,16 AND REDUCING VEHICLE MILES TRAVELED IN THE STATE ; AND17 (B) C ONSIDER DISTRIBUTING GRANT MONEY USING A FORMULA18 DEVELOPED BY THE TRANSIT ASSOCIATION THAT TAKES INTO ACCOUNT19 YOUTH RIDERSHIP IN THE SERVICE AREA OF THE APPLICANT AND THE20 EXTENT TO WHICH THE APPLICANT WILL MATCH GRANT MONEY WITH21 OTHER MONEY; EXCEPT THAT APPLICANTS ARE NOT REQUIRED TO MATCH22 GRANT MONEY TO BE ELIGIBLE TO RECEIVE A GRANT .23 (V) (A) E ACH ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT24 SHALL REPORT ON THE USE OF THE MONEY TO THE TRANSIT ASSOCIATION25 IN ACCORDANCE WITH POLICIES ESTABLISHED BY THE TRANSIT26 ASSOCIATION AND THE DEPARTMENT . THE REPORT MUST INCLUDE, AT A27 SB24-032 -24- MINIMUM, ESTIMATES OF THE CHANGE IN YOUTH RIDERSHIP DURING THE1 YEAR IN WHICH FARE FREE SERVICES WERE OFFERED TO YOUTH RIDERS2 COMPARED TO PREVIOUS YEARS , ANY CHANGES THAT THE ELIGIBLE3 TRANSIT AGENCY WOULD MAKE IN HOW IT PROVIDES FARE FREE TRANSIT4 SERVICES TO YOUTH RIDERS OR IN ITS USE OF THE GRANT MONEY BASED ON5 ITS EXPERIENCES, AND HOW THE ELIGIBLE TRANSIT AGENCY MARKETED6 THE FARE FREE TRANSIT SERVICES FOR YOUTH RIDERS . THE REPORT MAY7 INCLUDE ADDITIONAL INFORMATION , INCLUDING A NARRATIVE ANALYSIS,8 TO PROVIDE CONTEXT ON THE RIDERSHIP DATA INCLUDED IN THE REPORT .9 E ACH ELIGIBLE TRANSIT AGENCY THAT RECEIVES A GRANT THROUGH THE10 TRANSIT ASSOCIATION SHALL SUBMIT ITS REPORT TO THE TRANSIT11 ASSOCIATION BY JANUARY 31, 2025, AND BY JANUARY 31 OF EACH YEAR12 THEREAFTER.13 (B) B Y FEBRUARY 28, 2025, AND BY FEBRUARY 28 OF EACH YEAR14 THEREAFTER, THE TRANSIT ASSOCIATION SHALL SUBMIT A REPORT TO THE15 DEPARTMENT COMPILING AND SUMMARIZING THE REPORTED INFORMATION16 FOR ALL ELIGIBLE TRANSIT AGENCIES THAT RECEIVED A GRANT THROUGH17 THE TRANSIT ASSOCIATION.18 (VI) A TRANSIT ASSOCIATION THAT RECEIVES A GRANT FROM THE19 DEPARTMENT SHALL DEVELOP AND PUBLICIZE POLICIES FOR THE GRANT ,20 INCLUDING THE PROCESS AND DEADLINES FOR AN ELIGIBLE TRANSIT21 AGENCY TO APPLY FOR AND RECEIVE A GRANT , THE INFORMATION AND22 DOCUMENTATION REQUIRED FOR THE APPLICATION , REPORTING23 REQUIREMENTS AND DEADLINES , AND ANY ADDITIONAL REQUIREMENTS24 NECESSARY TO ADMINISTER THE GRANT .25 (b) (I) T HE REGIONAL TRANSPORTATION DISTRICT MAY USE GRANT26 MONEY TO PROVIDE OPERATING SUPPORT FOR ITS TRANSIT OPERATIONS27 SB24-032 -25- AND GENERAL TRANSIT PROGRAMS , SO LONG AS THE REGIONAL1 TRANSPORTATION DISTRICT PROVIDES UNINTERRUPTED FARE FREE2 YEAR-ROUND TRANSIT SERVICES FOR YOUTH RIDERS .3 (II) O N OR BEFORE DECEMBER 1 OF EACH YEAR FOR WHICH THE4 REGIONAL TRANSPORTATION DISTRICT RECEIVES A GRANT , THE REGIONAL5 TRANSPORTATION DISTRICT SHALL SUBMIT A REPORT TO THE DEPARTMENT6 ON THE IMPLEMENTATION OF THE PROGRAM IN ACCORDANCE WITH THE7 POLICIES ESTABLISHED BY THE DEPARTMENT . THE REPORT MUST INCLUDE,8 AT A MINIMUM, ESTIMATES OF THE CHANGE IN YOUTH RIDERSHIP DURING9 THE YEAR IN WHICH FARE FREE SERVICES WERE OFFERED TO YOUTH RIDERS10 COMPARED TO PREVIOUS YEARS , ANY CHANGES THAT THE REGIONAL11 TRANSPORTATION DISTRICT WOULD MAKE IN HOW IT PROVIDES FARE FREE12 TRANSIT SERVICES TO YOUTH RIDERS OR IN ITS USE OF THE GRANT MONEY13 BASED ON ITS EXPERIENCES, AND HOW THE REGIONAL TRANSPORTATION14 DISTRICT MARKETED THE FARE FREE TRANSIT SERVICES FOR YOUTH15 RIDERS. THE REPORT MAY INCLUDE ADDITIONAL INFORMATION , INCLUDING16 A NARRATIVE ANALYSIS, TO PROVIDE CONTEXT ON THE RIDERSHIP DATA17 INCLUDED IN THE REPORT.18 (III) T HE STATE AUDITOR SHALL AUDIT THE REGIONAL19 TRANSPORTATION DISTRICT'S USE OF THE GRANT MONEY AS PART OF ITS20 NEXT PERFORMANCE AUDIT OF THE REGIONAL TRANSPORTATION DISTRICT21 CONDUCTED PURSUANT TO SECTION 32-9-115 (3).22 (6) (a) (I) T HE DEPARTMENT SHALL ESTABLISH AND PUBLICIZE23 POLICIES FOR THE PROGRAM. AT A MINIMUM, THE POLICIES MUST ADDRESS24 THE PROCESS AND ANY DEADLINES FOR APPLYING FOR AND RECEIVING A25 GRANT UNDER THE PROGRAM , THE INFORMATION AND DOCUMENTATION26 REQUIRED FOR THE APPLICATION , REPORTING REQUIREMENTS AND27 SB24-032 -26- DEADLINES, AND ANY ADDITIONAL POLICIES NECESSARY TO ADMINISTER1 THE PROGRAM.2 (II) I N ADMINISTERING THE GRANT PROGRAM , THE DEPARTMENT3 SHALL AWARD FORMULA -BASED GRANTS TO A TRANSIT ASSOCIATION AND4 THE REGIONAL TRANSPORTATION DISTRICT FOR USE BY THE TRANSIT5 ASSOCIATION OR THE REGIONAL TRANSPORTATION DISTRICT DURING THE6 TWELVE MONTHS FOLLOWING THE AWARD OF THE GRANT MONEY . THE7 DEPARTMENT SHALL ENSURE THAT GRANTS ARE AWARDED BY JULY 15,8 2024, AND BY JULY 15 OF EACH YEAR THEREAFTER.9 (7) T HE DEPARTMENT MAY SEEK , ACCEPT, AND EXPEND GIFTS,10 GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE11 PURPOSES OF THIS SECTION. THE DEPARTMENT SHALL TRANSMIT ALL12 MONEY RECEIVED THROUGH GIFTS , GRANTS, OR DONATIONS TO THE STATE13 TREASURER, WHO SHALL CREDIT THE MONEY TO THE FUND .14 (8) (a) T HE YOUTH FARE FREE TRANSIT GRANT PROGRAM FUND IS15 HEREBY CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF16 MONEY TRANSFERRED TO THE FUND IN ACCORDANCE WITH SUBSECTION17 (8)(d) OF THIS SECTION, ANY OTHER MONEY THAT THE GENERAL ASSEMBLY18 APPROPRIATES OR TRANSFERS TO THE FUND , AND ANY GIFTS, GRANTS, OR19 DONATIONS CREDITED TO THE FUND PURSUANT TO SUBSECTION (7) OF THIS20 SECTION.21 (b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND22 INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE23 FUND TO THE FUND.24 (c) M ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE25 DEPARTMENT FOR THE PURPOSES SPECIFIED IN THIS SECTION .26 (d) O N JULY 1, 2024, AND ON JULY 1 OF EACH YEAR THEREAFTER,27 SB24-032 -27- THE STATE TREASURER SHALL TRANSFER SEVEN MILLION DOLLARS FROM1 THE GENERAL FUND TO THE FUND .2 (9) O N OR BEFORE DECEMBER 31 OF EACH YEAR OF THE PROGRAM,3 THE DEPARTMENT SHALL SUBMIT A REPORT ON THE IMPLEMENTATION OF4 THE PROGRAM TO THE HOUSE OF REPRESENTATIVES TRANSPORTATION AND5 LOCAL GOVERNMENT COMMI TTEE AND THE SENATE TRANSPORTATION AND6 ENERGY COMMITTEE, OR THEIR SUCCESSOR COMMITTEES . THE REPORT7 MUST SUMMARIZE AND COMPILE THE INFORMATION SUBMITTED TO THE8 DEPARTMENT PURSUANT TO SUBSECTIONS (5)(a)(V) AND (5)(b)(II) OF THIS9 SECTION.10 SECTION 4. In Colorado Revised Statutes, add 39-22-560 as11 follows:12 39-22-560. Credit against tax - taxpayer expenditures for13 transit passes - legislative declaration - definitions. (1) I N14 ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL15 THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE16 PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE17 DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES18 THAT:19 (a) T HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT20 ALLOWED BY THIS SECTION ARE:21 (I) T O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,22 SPECIFICALLY THE PURCHASE OF TRANSIT PASSES AND THE USE OF TRANSIT23 AS AN ALTERNATIVE TO TRAVELING IN PERSONAL MOTOR VEHICLES ; AND24 (II) T O PROVIDE TAX RELIEF TO TAXPAYERS THAT USE TRANSIT AS25 AN ALTERNATIVE TO TRAVELING IN PERSONAL MOTOR VEHICLES .26 (b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT27 SB24-032 -28- ALLOWED BY THIS SECTION IS TO INCREASE THE USE OF TRANSIT BY1 TAXPAYERS AS AN ALTERNATIVE TO TRAVELING IN PERSONAL MOTOR2 VEHICLES BY PROVIDING AN INCENTIVE TO TAXPAYERS WHO USE TRANSIT3 ON A REGULAR BASIS AS EVIDENCED BY THE PURCHASE OF A TRANSIT PASS .4 T O ALLOW THE GENERAL ASSEMBLY AND THE STATE AUDITOR TO5 MEASURE THE EFFECTIVENESS OF THE CREDIT , THE DEPARTMENT OF6 REVENUE, WHEN ADMINISTERING THE CREDIT , SHALL REQUIRE EACH7 TAXPAYER WHO CLAIMS THE CREDIT TO PROVIDE INFORMATION ABOUT8 THE SPECIFIC TRANSIT PASS PURCHASED , THE NUMBER OF MONTHS IN9 WHICH THE TAXPAYER PURCHASED A TRANSIT PASS DURING THE INCOME10 TAX YEAR FOR WHICH THE CREDIT IS CLAIMED , AND IF FEASIBLE, THE11 NUMBER OF TRIPS TAKEN BY THE TAXPAYER USING TRANSIT DURING THE12 INCOME TAX YEAR FOR WHICH THE CREDIT IS CLAIMED .13 (2) A S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE14 REQUIRES:15 (a) "D EPARTMENT" MEANS THE DEPARTMENT OF TRANSPORTATION16 CREATED IN SECTION 43-1-103 (1).17 (b) "P UBLIC TRANSPORTATION ENTITY " MEANS A MASS TRANSIT18 DISTRICT, A MASS TRANSIT AUTHORITY, OR ANY OTHER PUBLIC ENTITY19 AUTHORIZED UNDER THE LAWS OF THIS STATE TO PROVIDE MASS20 TRANSPORTATION SERVICES TO THE GENERAL PUBLIC .21 (c) "T RANSIT PASS" MEANS ANY PASS , COUPON, CARD,22 IDENTIFICATION, OR OTHER DOCUMENT ISSUED BY A PUBLIC23 TRANSPORTATION ENTITY THAT CAN BE USED TO OBTAIN PUBLIC TRANSIT24 FOR A PERIOD OF AT LEAST ONE MONTH.25 (3) FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1,26 2024, BUT BEFORE JANUARY 1, 2029, SUBJECT TO THE PROVISIONS OF27 SB24-032 -29- SUBSECTION (4) OF THIS SECTION, THERE IS ALLOWED A CREDIT TO ANY1 TAXPAYER IN AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AMOUNT2 SPENT BY THE TAXPAYER TO PURCHASE ONE OR MORE TRANSIT PASSES FOR3 USE BY THE TAXPAYER DURING THE INCOME TAX YEAR FOR WHICH THE4 CREDIT IS CLAIMED.5 (4) (a) T O CLAIM THE CREDIT UNDER THIS SECTION, A TAXPAYER6 MUST INCLUDE A CREDIT CERTIFICATE WITH THE INCOME TAX RETURN7 FILED WITH THE DEPARTMENT OF REVENUE .8 (b) T HE DEPARTMENT SHALL DEVELOP A PROCESS FOR ISSUING9 CREDIT CERTIFICATES TO TAXPAYERS WHO INTEND TO CLAIM THE CREDIT10 ALLOWED IN THIS SECTION. THE CREDIT CERTIFICATE MUST IDENTIFY THE11 TAXPAYER AND CERTIFY THAT THE TAXPAYER PURCHASED ONE OR MORE12 TRANSIT PASSES FOR THE TAXPAYER'S USE DURING THE INCOME TAX YEAR13 FOR WHICH THE CREDIT IS CLAIMED. THE DEPARTMENT SHALL DETERMINE14 THE FORM AND MANNER FOR A TAXPAYER WHO REQUESTS A CREDIT15 CERTIFICATE TO PROVIDE PROOF TO THE DEPARTMENT THAT THE16 TAXPAYER PURCHASED ONE OR MORE TRANSIT PASSES FOR THE17 TAXPAYER'S USE.18 (5) T HE AMOUNT OF ANY CREDIT ALLOWED UNDER THIS SECTION19 THAT EXCEEDS THE TAXPAYER 'S INCOME TAXES DUE IS REFUNDED TO THE20 TAXPAYER.21 (6) N O LATER THAN JANUARY 1, 2025, AND NO LATER THAN22 J ANUARY 1 OF EACH YEAR THEREAFTER THROUGH JANUARY 1, 2029, THE23 DEPARTMENT SHALL PROVIDE THE DEPARTMENT OF REVENUE WITH AN24 ELECTRONIC REPORT OF THE TAXPAYERS RECEIVING A CREDIT CERTIFICATE25 AS ALLOWED IN THIS SECTION FOR THE PREVIOUS CALENDAR YEAR THAT26 INCLUDES THE FOLLOWING INFORMATION :27 SB24-032 -30- (a) EACH TAXPAYER'S NAME;1 (b) T HE AMOUNT THAT EACH TAXPAYER SPENT ON ONE OR MORE2 TRANSIT PASSES DURING AN INCOME TAX YEAR FOR WHICH THE CREDIT IS3 CLAIMED FOR THE TAXPAYER'S USE; AND4 (c) T HE AMOUNT OF THE CREDIT ALLOWED PURS UANT TO THIS5 SECTION.6 (7) T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.7 SECTION 5. In Colorado Revised Statutes, repeal 24-38.5-114.8 SECTION 6. Effective date. This act takes effect upon passage;9 except that section 2 of this act takes effect July 1, 2024.10 SECTION 7. Safety clause. The general assembly finds,11 determines, and declares that this act is necessary for the immediate12 preservation of the public peace, health, or safety or for appropriations for13 the support and maintenance of the departments of the state and state14 institutions.15 SB24-032 -31-