Colorado 2025 Regular Session

Colorado Senate Bill SB117 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fifth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 25-0754.01 Jason Gelender x4330
8	8	SENATE BILL 25-117
9	9	Senate Committees House Committees
10	10	State, Veterans, & Military Affairs
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE REDUCTION OF TRANSPORTATION COSTS , AND, IN101
14	14	CONNECTION THEREWITH , REPEALING CERTAIN GOVERNMENT102
15	15	FEES IMPOSED ON GASOLINE AND CERTAIN SPECIAL FUEL ,103
16	16	PASSENGER RIDES BOOKED THROUGH T RANSPORTATION104
17	17	NETWORK COMPANIES , SHORT-TERM MOTOR VEHICLE RENTALS ,105
18	18	AND WASTE TIRES AND REQUIRING THE NONATTAINMENT AREA106
19	19	AIR POLLUTION MITIGATION ENTERPRISE TO ESTABLISH A107
20	20	REFORMULATED GASOLINE COST STABILIZATION REBATE108
21	21	PROGRAM.109
22	22	Bill Summary
23	23	(Note: This summary applies to this bill as introduced and does
24	24	not reflect any amendments that may be subsequently adopted. If this bill
25	25	passes third reading in the house of introduction, a bill summary that
26	26	SENATE SPONSORSHIP
27	27	Bright, Baisley, Carson, Catlin, Frizell, Kirkmeyer, Liston, Lundeen, Pelton B., Pelton R.,
28	28	Rich, Simpson
29	29	HOUSE SPONSORSHIP
30	30	(None),
31	31	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
32	32	Capital letters or bold & italic numbers indicate new material to be added to existing law.
33	33	Dashes through the words or numbers indicate deletions from existing law. applies to the reengrossed version of this bill will be available at
34	34	http://leg.colorado.gov.)
35	35	For the purpose of reducing transportation costs, the bill repeals
36	36	the following fees, effective July 1, 2025:
37	37	! The road usage fee imposed by the state and the bridge and
38	38	tunnel impact fee imposed by the statewide bridge and
39	39	tunnel enterprise that are imposed on the purchase of each
40	40	gallon of taxed gasoline and special fuel;
41	41	! The fee imposed by the state on short-term motor vehicle
42	42	rentals;
43	43	! The passenger per-ride fees imposed on car share rides by
44	44	the state, the clean fleet enterprise, and the nonattainment
45	45	area air pollution mitigation enterprise; and
46	46	! The waste tire enterprise fee imposed on the purchase of
47	47	new motor vehicle and trailer tires by the waste tire
48	48	management enterprise. Because this fee is the only source
49	49	of revenue for the waste tire management enterprise, the
50	50	bill also repeal the enterprise.
51	51	The bill also requires the nonattainment area air pollution
52	52	mitigation enterprise, no later than January 1, 2026, to establish a
53	53	reformulated gasoline cost stabilization program to offer reformulated
54	54	gasoline cost stabilization rebates to individuals who own motor vehicles
55	55	that are registered in counties in which the federal government requires
56	56	all gasoline sold to be reformulated gasoline.
57	57	Be it enacted by the General Assembly of the State of Colorado:1
58	58	SECTION 1. In Colorado Revised Statutes, 25-7.5-102, amend2
59	59	(13) and (16)(b)(II); and repeal (3), (19), (24), (26), (27), (28), and (29)3
60	60	as follows:4
61	61	25-7.5-102. Definitions. As used in this article 7.5, unless the5
62	62	context otherwise requires:6
63	63	(3) "Car share ride" means a prearranged ride for which the rider
64	64	7
65	65	agrees, at the time the rider requests the ride through a digital network, to8
66	66	be transported with another rider who has separately requested a9
67	67	prearranged ride regardless of whether or not another rider is actually10
68	68	transported with the rider.11
69	69	SB25-117-2- (13) "Inflation" means the average annual percentage change in1
70	70	the United States department of labor, bureau of labor statistics, consumer2
71	71	price index for Denver-Aurora-Lakewood for all items and all urban3
72	72	consumers, or its applicable predecessor or successor index, for the five4
73	73	years ending on the last December 31 before a state fiscal year for which5
74	74	an inflation adjustment to be made to the clean fleet per ride fee imposed6
75	75	by section 25-7.5-103 (7) or the clean fleet retail delivery fee imposed by7
76	76	section 25-7.5-103 (8) begins.8
77	77	(16) "Motor vehicle fleet" means a group of motor vehicles that9
78	78	is owned or operated:10
79	79	(b) By a business entity for a business if:11
80	80	(II) The group of motor vehicles is owned or operated by a12
81	81	company that rents motor vehicles in the fleet to transportation network13
82	82	company drivers for use in providing transportation network company14
83	83	services or is owned and operated directly or indirectly through15
84	84	independent contractors who own or lease individual motor vehicles in16
85	85	the group by a transportation network company or by a retailer for the17
86	86	purpose of making retail deliveries.18
87	87	(19) "Prearranged ride" has the same meaning as set forth in19
88	88	section 40-10.1-602 (2).20
89	89	(24) "Rider" has the same meaning as set forth in section21
90	90	40-10.1-602 (5).22
91	91	(26) "Transportation network company" has the same meaning as23
92	92	set forth in section 40-10.1-602 (3).24
93	93	(27) "Transportation network company driver" has the same25
94	94	meaning as set forth in section 40-10.1-602 (4).26
95	95	(28) "Transportation network company services" has the same27
96	96	SB25-117
97	97	-3- meaning as set forth in section 40-10.1-602 (6).1
98	98	(29) "Zero emissions motor vehicle" means a battery electric2
99	99	motor vehicle or a hydrogen fuel cell motor vehicle.3
100	100	SECTION 2. In Colorado Revised Statutes, 25-7.5-103, amend4
101	101	(3) introductory portion, (3)(a), (5)(a), and (6)(h); and repeal (7) as5
102	102	follows:6
103	103	25-7.5-103. Clean fleet enterprise - creation - board - powers7
104	104	and duties - fees - fund. (3) The business purpose of the enterprise is to8
105	105	incentivize and support the use of electric motor vehicles, including9
106	106	motor vehicles that originally were powered exclusively by internal10
107	107	combustion engines but have been converted into electric motor vehicles,11
108	108	and, to the extent temporarily necessitated by the limitations of current12
109	109	electric motor vehicle technology for certain fleet uses, compressed13
110	110	natural gas motor vehicles that are fueled by recovered methane, by14
111	111	businesses and governmental entities that own or operate fleets of motor15
112	112	vehicles, including fleets composed of personal motor vehicles owned or16
113	113	leased by individual contractors who provide prearranged rides for17
114	114	transportation network companies or deliver goods for a third-party18
115	115	delivery service. To allow the enterprise to accomplish this purpose and19
116	116	fully exercise its powers and duties through the board, the enterprise may:20
117	117	(a) Impose a clean fleet per ride fee and a clean fleet retail21
118	118	delivery fee as authorized by subsections (7) and (8) SUBSECTION (8) of22
119	119	this section;23
120	120	(5) (a) The clean fleet enterprise fund is hereby created in the state24
121	121	treasury. The fund consists of clean fleet per ride fee revenue and clean25
122	122	fleet retail delivery fee revenue credited to the fund pursuant to26
123	123	subsections (7) and (8) SUBSECTION (8) of this section, any monetary27
124	124	SB25-117
125	125	-4- gifts, grants, donations, or other payments received by the enterprise, any1
126	126	federal money that may be credited to the fund, and any other money that2
127	127	the general assembly may appropriate or transfer to the fund. The state3
128	128	treasurer shall credit all interest and income derived from the deposit and4
129	129	investment of money in the fund to the fund. Money in the fund is5
130	130	continuously appropriated to the enterprise for the purposes set forth in6
131	131	this article 7.5 and to pay the enterprise's reasonable and necessary7
132	132	operating expenses, including the repayment of any loan received8
133	133	pursuant to subsection (5)(b) of this section.9
134	134	(6) In addition to any other powers and duties specified in this10
135	135	section, the board has the following general powers and duties:11
136	136	(h) To promulgate rules for the sole purpose of setting the12
137	137	amounts AMOUNT of the clean fleet per ride fee and the clean fleet retail13
138	138	delivery fee at or below the maximum amounts AMOUNT authorized in14
139	139	this section; and15
140	140	(7) (a) In furtherance of its business purpose, beginning in state16
141	141	fiscal year 2022-23, the enterprise shall impose a clean fleet per ride fee17
142	142	to be paid by a transportation network company for each prearranged ride18
143	143	requested and accepted through the company's digital network. For the19
144	144	purpose of minimizing compliance costs for transportation network20
145	145	companies and administrative costs for the state, the department of21
146	146	revenue shall collect the clean fleet per ride fee on behalf of the22
147	147	enterprise, and a transportation network company shall pay the fee to the23
148	148	department of revenue as required by section 40-10.1-607.5 (2). The24
149	149	enterprise shall ensure that during the first ten state fiscal years of fee25
150	150	collections, expenditures that support transportation network company26
151	151	operations equal or exceed cumulative clean fleet per ride fee revenue.27
152	152	SB25-117
153	153	-5- (b) For prearranged rides requested and accepted during state1
154	154	fiscal year 2022-23, the enterprise shall impose the clean fleet per ride fee2
155	155	in a maximum amount of:3
156	156	(I) Three and three-quarters cents for each prearranged ride that4
157	157	is a car share ride or for which the driver transports the rider in a zero5
158	158	emissions motor vehicle; and6
159	159	(II) Seven and one-half cents for every other prearranged ride.7
160	160	(c) (I) Except as otherwise provided in subsection (7)(c)(II) of this8
161	161	section, for prearranged rides requested and accepted during state fiscal9
162	162	year 2023-24 or during any subsequent state fiscal year, the enterprise10
163	163	shall impose the clean fleet per ride fee in a maximum amount that is the11
164	164	applicable maximum amount for the prior state fiscal year adjusted for12
165	165	inflation. The enterprise shall notify the department of revenue of the13
166	166	amount of the clean fleet per ride fee to be collected for rides requested14
167	167	and accepted during each state fiscal year no later than March 15 of the15
168	168	calendar year in which the state fiscal year begins and the department of16
169	169	revenue shall publish the amount no later than April 15 of the calendar17
170	170	year in which the state fiscal year begins.18
171	171	(II) The enterprise is authorized to adjust the amount of the clean19
172	172	fleet per ride fee for prearranged rides requested and accepted during a20
173	173	state fiscal year only if the rate of inflation is positive and cumulative21
174	174	inflation from the time of the last adjustment in the amount of the fee,22
175	175	when applied to the sum of the current clean fleet per ride fee and the23
176	176	current air pollution mitigation per ride fee imposed as required by24
177	177	section 43-4-1303 (7) and rounded to the nearest whole cent, will result25
178	178	in an increase of at least one whole cent in the total amount of the clean26
179	179	fleet per ride fee and the air pollution mitigation per ride fee paid by a27
180	180	SB25-117
181	181	-6- person who requests and accepts a prearranged ride. The amount of1
182	182	cumulative inflation to be applied to the sum of the current clean fleet per2
183	183	ride fee and the current air pollution mitigation per ride fee and rounded3
184	184	to the nearest whole cent is the lesser of actual cumulative inflation or4
185	185	five percent.5
186	186	(d) As required by section 40-10.1-607.5 (3)(a), the department of6
187	187	revenue shall transmit all net clean fleet per ride fee revenue collected to7
188	188	the state treasurer, who shall credit the revenue to the fund.8
189	189	SECTION 3. In Colorado Revised Statutes, 30-20-1401, amend9
190	190	(2)(a); and repeal (1)(d), (1)(e), (1)(f), (1)(g), (1)(h), (1)(i), and (1)(j) as10
191	191	follows:11
192	192	30-20-1401. Legislative declaration - rules - enforcement -12
193	193	recyclable material. (1) The general assembly finds and declares that:13
194	194	(d) It is in the state's interest to provide for the recovery, recycling,14
195	195	reuse, and management of waste tires through a government-run15
196	196	enterprise;16
197	197	(e) Providing statewide waste tire recycling, beneficial reuse, and17
198	198	management constitutes a valuable service and benefit, and a waste tire18
199	199	management enterprise would provide useful business services to tire19
200	200	retailers, automobile dealers, automobile repair shops, service stations,20
201	201	automotive fleet centers, waste tire haulers, waste tire collection facilities,21
202	202	waste tire processors, recycling and waste facilities, landfills, consumers,22
203	203	and all residents of Colorado;23
204	204	(f) The waste tire management enterprise will aid in the proper24
205	205	management of waste tires by providing financial incentives and rebates25
206	206	for the recycling of waste tires into end-use tire-derived products, which26
207	207	financial incentives and rebates directly compensate people who properly27
208	208	SB25-117
209	209	-7- dispose of or recycle waste tires, provide fee payers more convenient1
210	210	waste tire and disposal options, increase the production of tire-derived2
211	211	products, and positively impact human health and safety and the3
212	212	environment;4
213	213	(g) It is necessary, appropriate, and in the best interest of the state5
214	214	to acknowledge that, by providing the business services specified in this6
215	215	part 14, the enterprise engages in an activity conducted in the pursuit of7
216	216	a benefit, gain, or livelihood and therefore operates as a business;8
217	217	(h) Consistent with the determination of the Colorado supreme9
218	218	court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.10
219	219	1995), that the power to impose taxes is inconsistent with enterprise status11
220	220	under section 20 of article X of the state constitution, it is the conclusion12
221	221	of the general assembly that the waste tire enterprise fee collected by the13
222	222	enterprise is a fee, not a tax, because the fee is imposed for the specific14
223	223	purpose of allowing the enterprise to defray the costs of providing the15
224	224	business services specified in sections 30-20-1404 and 30-20-1405 to16
225	225	consumers who ultimately pay the enterprise fee, which enterprise fee is17
226	226	imposed at rates that are reasonably calculated based on the cost of18
227	227	providing the services needed by those consumers;19
228	228	(i) So long as the enterprise qualifies as an enterprise for the20
229	229	purposes of section 20 of article X of the state constitution, the revenue21
230	230	from the waste tire enterprise fee collected by the enterprise is not state22
231	231	fiscal year spending, as defined in section 24-77-102 (17), or state23
232	232	revenues, as defined in section 24-77-103.6 (6)(c), and does not count24
233	233	against either the state fiscal year spending limit imposed by section 2025
234	234	of article X of the state constitution or the excess state revenues cap, as26
235	235	defined in section 24-77-103.6 (6)(b)(I); and27
236	236	SB25-117
237	237	-8- (j) The enterprise created in this part 14 is necessary to continue1
238	238	Colorado's management of waste tires and provide incentives to local2
239	239	governments; for-profit waste tire management, recycling, and reuse3
240	240	companies; and other organizations that are involved in waste tire4
241	241	recycling, beneficial reuse, and management.5
242	242	(2) (a) The commission in consultation with the enterprise, shall6
243	243	promulgate rules for the implementation and enforcement of sections7
244	244	30-20-1403, 30-20-1404, and 30-20-1405, as applicable.8
245	245	SECTION 4. In Colorado Revised Statutes, 30-20-1402, repeal9
246	246	(1.7), (4.5), and (14.5) as follows:10
247	247	30-20-1402. Definitions. As used in this part 14, unless the11
248	248	context otherwise requires:12
249	249	(1.7) "Board of directors" or "board" means the board of directors13
250	250	of the enterprise.14
251	251	(4.5) "Enterprise" means the waste tire management enterprise15
252	252	created in section 30-20-1403.16
253	253	(14.5) "Waste tire enterprise fee" or "enterprise fee" means money17
254	254	collected pursuant to section 30-20-1403 (2.5)(a).18
255	255	SECTION 5. In Colorado Revised Statutes, 30-20-1403, amend19
256	256	(2.5)(b)(III), (2.5)(c)(I), and (2.5)(c)(II); and repeal (1.5), (2.5)(a),20
257	257	(2.5)(c)(III), and (3)(a) as follows:21
258	258	30-20-1403. Waste tire recycling, beneficial reuse, and22
259	259	management - waste tire fees - distribution - rules - repeal.23
260	260	(1.5) Enterprise. (a) (I) There is created in the department the waste tire24
261	261	management enterprise. The enterprise is and operates as a25
262	262	government-owned business within the department to collect the waste26
263	263	tire enterprise fee charged by retailers of new tires pursuant to subsection27
264	264	SB25-117
265	265	-9- (2.5) of this section and to use the waste tire enterprise fee to promote1
266	266	waste tire recycling, beneficial reuse, and management strategies in2
267	267	Colorado.3
268	268	(II) The enterprise is and operates as a government-owned4
269	269	business within the department for the purpose of conducting the business5
270	270	activities specified in this section. The enterprise is a type 1 entity, as6
271	271	defined in section 24-1-105, and exercises its powers and performs its7
272	272	duties and functions under the department.8
273	273	(III) The enterprise constitutes an enterprise for purposes of9
274	274	section 20 of article X of the state constitution so long as it retains the10
275	275	authority to issue revenue bonds and receives less than ten percent of its11
276	276	total revenues in grants from all Colorado state and local governments12
277	277	combined. So long as it constitutes an enterprise pursuant to this13
278	278	subsection (1.5)(a), the enterprise is not subject to section 20 of article X14
279	279	of the state constitution.15
280	280	(b) The enterprise's primary powers and duties are to:16
281	281	(I) Collect the waste tire enterprise fee;17
282	282	(II) Promote waste tire recycling, beneficial reuse, and18
283	283	management strategies throughout Colorado;19
284	284	(III) Issue revenue bonds payable from the revenues of the20
285	285	enterprise to promote the waste tire recycling, beneficial reuse, and21
286	286	management strategies specified in this section;22
287	287	(IV) Publish each year, on the department's website and as23
288	288	otherwise deemed appropriate by the board, the waste tire recycling,24
289	289	beneficial reuse, and management strategies that the board has prioritized25
290	290	through the collection of the waste tire enterprise fee;26
291	291	(V) Adopt, amend, or repeal policies for the regulation of the27
292	292	SB25-117
293	293	-10- enterprise's affairs and the conduct of the enterprise's business consistent1
294	294	with this part 14;2
295	295	(VI) (A) Contract with any public or private entity, including state3
296	296	agencies, consultants, and the attorney general's office, for professional4
297	297	and technical assistance, office space and administrative services, advice,5
298	298	and other services related to the conduct of the affairs of the enterprise.6
299	299	The board shall encourage diversity in applicants for contracts and shall7
300	300	generally avoid using single-source bids.8
301	301	(B) The enterprise shall pay a fair market rate to any public entity,9
302	302	private entity, contractor, or consultant, which may include a state agency,10
303	303	the attorney general's office, or the department, that is hired by the11
304	304	enterprise to perform duties pursuant to this subsection (1.5)(b).12
305	305	(VII) Prepare and submit an annual financial report pursuant to13
306	306	subsection (1.5)(i) of this section.14
307	307	(c) The enterprise is governed by a board of directors. The board15
308	308	consists of the following nine members:16
309	309	(I) Two members appointed by the executive director of the17
310	310	department to represent the department, including one with expertise in18
311	311	sustainability and one with expertise in compliance;19
312	312	(II) One member appointed by the executive director of the20
313	313	department who represents a county that has experience with the21
314	314	management of waste tires; and22
315	315	(III) Six members appointed by the executive director of the23
316	316	department who are representatives of nonprofit and for-profit entities24
317	317	engaged in the recovery, recycling, reuse, and management of waste tires,25
318	318	including a tire retailer, a waste tire collection facility, a waste tire26
319	319	processor, and a waste tire hauler. To the extent practicable, the27
320	320	SB25-117
321	321	-11- representation of nonprofit and for-profit entities must be balanced1
322	322	equally.2
323	323	(d) Of the members appointed to the board of directors pursuant3
324	324	to subsection (1.5)(c)(III) of this section, at least one member must do4
325	325	business in a rural county in the state.5
326	326	(e) (I) The member representing the department who has expertise6
327	327	in sustainability and is appointed pursuant to subsection (1.5)(c)(I) of this7
328	328	section shall call the first meeting of the board.8
329	329	(II) The board shall elect a chair from among its members to serve9
330	330	for a term not to exceed two years.10
331	331	(III) The board shall meet quarterly, and the chair of the board11
332	332	may call additional meetings as necessary for the board to complete its12
333	333	duties.13
334	334	(IV) The term of office for a board member is three years; except14
335	335	that four of the six members appointed pursuant to subsection (1.5)(c)(III)15
336	336	of this section serve initial terms of two years. A board member may16
337	337	serve unlimited terms.17
338	338	(f) (I) A member of the board of directors, except for members18
339	339	appointed pursuant to subsections (1.5)(c)(I) and (1.5)(c)(II) of this19
340	340	section, may receive a per diem stipend while on official enterprise20
341	341	business.21
342	342	(II) The per diem stipend shall be at least equal to the Colorado22
343	343	state employee per diem for intra-state travel as established by the23
344	344	department of personnel.24
345	345	(III) All members of the board of directors may receive25
346	346	reimbursement for actual and necessary expenses incurred while on26
347	347	official enterprise business.27
348	348	SB25-117
349	349	-12- (IV) The enterprise may use money in the waste tire management1
350	350	enterprise fund, created in section 30-20-1404, to pay the per diem2
351	351	stipend to a board member and to reimburse a board member for actual3
352	352	and necessary expenses incurred as part of the enterprise's operating4
353	353	expenses.5
354	354	(g) The department shall provide office space and administrative6
355	355	staff to the enterprise, if requested by the board. In accordance with7
356	356	subsection (1.5)(b)(VI)(B) of this section, the enterprise shall pay the8
357	357	department a fair market rate for any office space or administrative staff9
358	358	used by the board in performance of the enterprise's duties.10
359	359	(h) (I) The department may transfer money from any legally11
360	360	available source to the enterprise for the purpose of defraying expenses12
361	361	incurred by the enterprise before it receives fee revenue. The enterprise13
362	362	may accept and expend any money so transferred, and, notwithstanding14
363	363	any state fiscal rule or generally accepted accounting principle that could15
364	364	otherwise be interpreted to require a contrary conclusion, such a transfer16
365	365	is a loan from the department to the enterprise that is required to be repaid17
366	366	and is not a grant for purposes of section 20 (2)(d) of article X of the state18
367	367	constitution or as defined in section 24-77-102 (7).19
368	368	(II) All money transferred as a loan to the enterprise must be20
369	369	credited to the waste tire administration, enforcement, market21
370	370	development, and cleanup fund, created in section 30-20-1404 (1)(a).22
371	371	Loan liabilities that are recorded in the waste tire administration,23
372	372	enforcement, market development, and cleanup fund but that are not24
373	373	required to be paid in the current state fiscal year shall not be considered25
374	374	when calculating sufficient statutory fund balance for purposes of section26
375	375	24-75-109.27
376	376	SB25-117
377	377	-13- (III) As the enterprise receives sufficient revenue in excess of1
378	378	expenses, it shall reimburse the department for the principal amount of2
379	379	any loan made by the department, plus interest at a rate agreed upon by3
380	380	the department and the enterprise.4
381	381	(i) (I) On or before June 30, 2026, and every June 30 of each year5
382	382	thereafter, the enterprise shall prepare and submit an annual financial6
383	383	report to legislative council staff and the joint budget committee of the7
384	384	general assembly.8
385	385	(II) The financial report prepared by the enterprise pursuant to9
386	386	subsection (1.5)(i)(I) of this section must include the enterprise's10
387	387	projected revenue and expenditures and proposed budget for the11
388	388	following fiscal year.12
389	389	(III) The enterprise shall post a copy of the enterprise's financial13
390	390	report on the enterprise's public website.14
391	391	(2.5) Waste tire administration fee. (a) (I) Effective July 1,15
392	392	2025, retailers of new motor vehicle tires and new trailer tires shall16
393	393	collect a waste tire enterprise fee in an amount to be set by the enterprise,17
394	394	in coordination with the commission. The waste tire enterprise fee18
395	395	amount must not exceed two dollars and fifty cents on the sale of each19
396	396	new tire. The maximum per tire enterprise fee amount may be adjusted by20
397	397	the enterprise every two years in accordance with any annual percentage21
398	398	change in the United States department of labor's bureau of labor statistics22
399	399	consumer price index for the Denver-Aurora-Lakewood metropolitan area23
400	400	for all items paid by all urban consumers, or its applicable successor24
401	401	index.25
402	402	(II) Effective July 1, 2025, the board of directors may review the26
403	403	waste tire enterprise fee on an annual basis and, in accordance with the27
404	404	SB25-117
405	405	-14- fee amount limit set forth in subsection (2.5)(a)(I) of this section, adjust1
406	406	the waste tire fee amount so that the waste tire enterprise fee is imposed2
407	407	in an amount that is:3
408	408	(A) Reasonably related to the direct and indirect costs of operating4
409	409	the enterprise in accordance with this part 14 and the services provided5
410	410	by the enterprise, which costs must not exceed the equivalent of one-half6
411	411	of the waste tire enterprise fee collected for each new tire sold pursuant7
412	412	to this subsection (2.5);8
413	413	(B) Sufficient to pay costs associated with providing rebates as9
414	414	described in section 30-20-1405; and10
415	415	(C) Sufficient to provide grants to eligible entities pursuant to the11
416	416	waste tire management grant program established in section 30-20-1418.12
417	417	(b) (III) The waste tire administration fee amount must
418	418	BE AT13
419	419	LEAST FIFTY CENTS AND MUST not exceed half of the amount of the waste
420	420	14
421	421	tire enterprise fee ONE DOLLAR AND TWENTY -FIVE CENTS; except that the15
422	422	minimum amount of the waste tire administration fee on the sale of each16
423	423	new tire must be fifty cents or more COMMISSION, IN COORDINATION WITH17
424	424	THE DEPARTMENT, MAY ADJUST THE ADMINISTRATION FEE EVERY TWO18
425	425	YEARS IN ACCORDANCE WITH ANY ANNUAL PERCENTAGE CHANGE IN THE19
426	426	U
427	427	NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS20
428	428	CONSUMER PRICE INDEX FOR THE DENVER-AURORA-LAKEWOOD21
429	429	METROPOLITAN AREA FOR ALL ITEMS PAID BY ALL URBAN CONSUMERS , OR22
430	430	ITS APPLICABLE SUCCESSOR INDEX.23
431	431	(c) (I) On and after July 1, 2025, retailers of new motor vehicle24
432	432	tires and new trailer tires shall collect both the enterprise fee and
433	433	the25
434	434	administration fee from the consumer at the point of sale.26
435	435	(II) The receipt from the retailer to the consumer for every new27
436	436	SB25-117
437	437	-15- motor vehicle tire or new trailer tire purchased must contain the following1
438	438	statement in the largest bold-faced type capable based on point-of-sale2
439	439	software and on existing invoice printers, not to exceed fifteen points:3
440	440	"Section 30-20-1403, Colorado Revised Statutes, requires retailers to4
441	441	collect a waste tire enterprise fee set by the waste tire management5
442	442	enterprise, which is a government-owned business within the6
443	443	department of public health and environment, and a waste tire7
444	444	administration fee set by the solid and hazardous waste commission8
445	445	on the sale of each new motor vehicle tire and each new trailer tire."9
446	446	(III) The retailer shall submit to the enterprise by the twentieth day10
447	447	of each quarter of each calendar year the enterprise fee collected pursuant11
448	448	to this section in the preceding quarter of the calendar year, together with12
449	449	any report required by the enterprise. The enterprise shall transmit the13
450	450	enterprise fees to the state treasurer, who shall credit them in accordance14
451	451	with subsection (3)(a) of this section or as specified in rules promulgated15
452	452	by the commission.16
453	453	(3) (a) Beginning on July 1, 2025, the state treasurer shall17
454	454	distribute the revenue from the waste tire enterprise fee assessed in18
455	455	subsection (2.5)(a) of this section as follows:19
456	456	(I) The portion of the enterprise fee collected to cover the costs20
457	457	described in subsection (2.5)(a)(II)(A) of this section to the waste tire21
458	458	management enterprise fund created in section 30-20-1404;22
459	459	(II) The portion of the enterprise fee collected to cover the costs23
460	460	described in subsection (2.5)(a)(II)(B) of this section to the end users24
461	461	fund created in section 30-20-1405;25
462	462	(III) All interest earned on the investment of money in the waste26
463	463	tire management enterprise fund to the waste tire management enterprise27
464	464	SB25-117
465	465	-16- fund. Any unexpended and unencumbered money in the waste tire1
466	466	management enterprise fund at the end of any fiscal year shall remain in2
467	467	the waste tire management enterprise fund.3
468	468	(IV) All interest earned on the investment of money in the end4
469	469	users fund to the end users fund. Any unexpended and unencumbered5
470	470	money in the end users fund at the end of any fiscal year shall remain in6
471	471	the end users fund.7
472	472	SECTION 6. In Colorado Revised Statutes, repeal 30-20-14048
473	473	as follows:9
474	474	30-20-1404. Waste tire management enterprise fund - creation10
475	475	- rules. (1) (a) There is created in the state treasury the waste tire11
476	476	management enterprise fund, referred to in this section as the "fund",12
477	477	consisting of the fee revenue credited pursuant to section 30-20-140313
478	478	(2.5)(a) and any other money appropriated or transferred to it. Money14
479	479	credited to the fund is continuously appropriated to the enterprise for the15
480	480	purposes set forth in this section and to pay the enterprise's reasonable16
481	481	and necessary operating expenses.17
482	482	(b) The state treasurer shall credit all interest earned on the18
483	483	investment of money in the fund to the fund. Any unexpended and19
484	484	unencumbered money in the fund at the end of any fiscal year shall20
485	485	remain in the fund.21
486	486	(2) The enterprise may, in consultation with the department, use22
487	487	the money in the fund for:23
488	488	(a) Collecting the waste tire enterprise fee assessed in section24
489	489	30-20-1403 (2.5)(a);25
490	490	(b) (I) Inspecting retailers to determine whether all fees are being26
491	491	collected;27
492	492	SB25-117
493	493	-17- (II) This subsection (2)(b) is repealed, effective July 1, 2025.1
494	494	(c) (I) Enforcing the requirements of this part 14 pursuant to2
495	495	existing authority, including sections 30-20-113 and 30-20-114;3
496	496	(II) This subsection (2)(c) is repealed, effective July 1, 2025.4
497	497	(d) (I) Developing a system to address the receipt by registered5
498	498	persons of unmanifested waste tires from unregistered haulers;6
499	499	(II) This subsection (2)(d) is repealed, effective July 1, 2025.7
500	500	(e) Repealed.8
501	501	(f) Hiring a contractor to clean up waste tires and tire-derived9
502	502	product that have been illegally disposed of or have been disposed of at10
503	503	a landfill pursuant to section 30-20-1009 (2) and funding a grant program11
504	504	to reimburse local governing authorities for cleaning up waste tires and12
505	505	tire-derived products that have been illegally disposed of or have been13
506	506	disposed of at a landfill pursuant to section 30-20-1009 (2);14
507	507	(g) Financing one-time or occasional community cleanup events15
508	508	where waste tires are accepted for drop-off by persons not engaged in16
509	509	commercial or industrial activity and where, at the conclusion of the17
510	510	event, the waste tires are either picked up by a registered waste tire hauler18
511	511	or transported to a registered waste tire hauler or to any registered facility;19
512	512	(h) Training and hiring contractors to provide training in the20
513	513	implementation of this part 14;21
514	514	(i) (I) Providing grants to law enforcement, fire departments, local22
515	515	health departments, state agencies, and any other applicable entities for23
516	516	purchasing equipment and supplies to implement this part 14;24
517	517	(II) This subsection (2)(i) is repealed, effective July 1, 2025.25
518	518	(j) (I) Training of and enforcement by entities that enforce this26
519	519	part 14;27
520	520	SB25-117
521	521	-18- (II) This subsection (2)(j) is repealed, effective July 1, 2025.1
522	522	(k) (I) Awarding grants and developing educational programs for2
523	523	enforcement, fire prevention and suppression, proper waste tire3
524	524	management and disposal, training, and customer technical assistance;4
525	525	(II) This subsection (2)(k) is repealed, effective July 1, 2025.5
526	526	(l) (I) Maintaining an online complaint form and processes for law6
527	527	enforcement, fire departments, and citizens to report potential waste tire7
528	528	violations;8
529	529	(II) This subsection (2)(l) is repealed, effective July 1, 2025.9
530	530	(m) and (n) Repealed.10
531	531	(o) Encouraging waste tire market development;11
532	532	(p) Reimbursing the division of fire prevention and control in the12
533	533	department of public safety for:13
534	534	(I) Inspections of facilities where waste tires are present14
535	535	conducted by the division to determine whether the waste tire collection15
536	536	facilities, waste tire processors, and waste tire monofills are in16
537	537	compliance with the rules promulgated by the director of the division17
538	538	pursuant to section 24-33.5-1203.5 (2); and18
539	539	(II) Technical and other assistance the division provides to the19
540	540	department or the public related to waste tires, including assistance20
541	541	related to:21
542	542	(A) The development of fire prevention education materials; and22
543	543	(B) Review of fire prevention plans.23
544	544	(III) This subsection (2)(p) is repealed, effective July 1, 2025.24
545	545	(q) The payment of any bonds issued pursuant to section25
546	546	30-20-1403 (1.5)(b);26
547	547	(r) Reimbursement of any contractors used for cleanup and27
548	548	SB25-117
549	549	-19- remediation activities engaged in pursuant to subsections (2)(f) and (2)(g)1
550	550	of this section;2
551	551	(s) The payment of per diem and the reimbursement of actual and3
552	552	necessary expenses for board members while on official enterprise4
553	553	business;5
554	554	(t) Funding grants in accordance with the waste tire management6
555	555	grant program established in section 30-20-1418; and7
556	556	(u) Any other activity necessary to implement section 30-20-1403,8
557	557	as determined by the board of directors.9
558	558	(3) (a) If the department is denied access or if consent to access10
559	559	has not been given to clean up a site where the department reasonably11
560	560	believes waste tires exist illegally, the department may obtain from the12
561	561	district court for the judicial district in which the property is located a13
562	562	warrant to enter the property and remove the waste tires.14
563	563	(b) This subsection (3) is repealed, effective July 1, 2025.15
564	564	(4) (a) In addition to any penalties assessed, the department may16
565	565	issue an order requiring the owner or operator to compensate the17
566	566	department for the cost of remediation of the site, and the department may18
567	567	request the attorney general to bring suit for compensation from the19
568	568	owner or operator for money expended remediating the site. The20
569	569	department shall use the recovered moneys to reimburse the fund for21
570	570	actual costs of remediating the site and of seeking compensation pursuant22
571	571	to this section. The state treasurer shall credit all additional moneys to the23
572	572	general fund.24
573	573	(b) The department may place a lien on a property on which the25
574	574	department funds the remediation of waste tires pursuant to this section26
575	575	until the costs of remediation have been repaid to the department. If27
576	576	SB25-117
577	577	-20- complete repayment has not been made before a sale of the property, the1
578	578	department shall be repaid in full, to the extent possible, from proceeds2
579	579	of the sale.3
580	580	(c) This subsection (4) is repealed, effective July 1, 2025.4
581	581	(5) (a) In providing assistance pursuant to this section, the5
582	582	enterprise shall give primary consideration to protection of public health6
583	583	and the environment.7
584	584	(b) In awarding contracts for services pursuant to this section, the8
585	585	enterprise may give preferential bidding treatment to individuals or9
586	586	entities that will recycle, pursuant to rules of the department concerning10
587	587	recycling, and reuse, rather than dispose of, the waste tires.11
588	588	(6) The enterprise shall, either itself or through a contractor, create12
589	589	a priority abatement list of illegal waste tire disposal sites.13
590	590	(7) The enterprise, in coordination with the department and the14
591	591	department of transportation, shall systematically investigate and research15
592	592	the use of tire-derived aggregates in technically feasible and economically16
593	593	viable civil applications associated with the department of transportation's17
594	594	roadway mission. The department shall include any findings regarding18
595	595	tire-derived aggregates, as appropriate, in the department's annual report19
596	596	to the general assembly.20
597	597	(8) (a) Notwithstanding any other provision of this section, on21
598	598	June 30, 2020, the state treasurer shall transfer five million three hundred22
599	599	seventy-two thousand four hundred fifteen dollars from the fund to the23
600	600	general fund.24
601	601	(b) This subsection (8) is repealed, effective July 1, 2025.25
602	602	SECTION 7. In Colorado Revised Statutes, 30-20-1405, amend26
603	603	(1)(a), (1)(b), (2)(a) introductory portion, (3), (4)(a), (4)(b) introductory27
604	604	SB25-117
605	605	-21- portion, (5) introductory portion, (5)(c), (5)(e) introductory portion, (6)1
606	606	introductory portion, (6)(b)(II), (7), (8) introductory portion, and (9) as2
607	607	follows:3
608	608	30-20-1405. End users fund - creation - quarterly rebates -4
609	609	rules - repeal. (1) (a) There is created in the state treasury the end users5
610	610	fund, referred to in this section as the "fund", consisting of the fee6
611	611	revenue credited pursuant to section 30-20-1403 (3)(a)(II) ANY MONEY7
612	612	THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE8
613	613	FUND.9
614	614	(b) The state treasurer shall credit all interest and any other return10
615	615	on the investment of money in the fund to the fund. Money credited to the11
616	616	fund is continuously appropriated to the enterprise DEPARTMENT for the12
617	617	purposes set forth in this section.13
618	618	(2) (a) The enterprise, in consultation with the department shall14
619	619	use the money in the fund to provide quarterly rebates to in-state:15
620	620	(3) The rebate is subject to the following conditions:16
621	621	(a) The enterprise DEPARTMENT shall pay the rebate amount17
622	622	quarterly, on a per-ton basis; and18
623	623	(b) Once the enterprise DEPARTMENT has paid a rebate on a19
624	624	particular quantity of tire-derived product, every part of that particular20
625	625	quantity of tire-derived product is no longer eligible for payment of the21
626	626	rebate.22
627	627	(4) (a) The enterprise DEPARTMENT, in consultation with the23
628	628	commission, shall annually set the amount of the rebate, on a per-ton24
629	629	basis, and the enterprise DEPARTMENT shall pay the set rebate amount for25
630	630	each ton of qualified tire-derived product. The enterprise DEPARTMENT26
631	631	shall calculate the rebate to equal, but not exceed, the amount of the27
632	632	SB25-117
633	633	-22- anticipated income transferred into the fund during each succeeding1
634	634	twelve-month period.2
635	635	(b) Each year, the enterprise DEPARTMENT shall continue to3
636	636	provide the rebate in accordance with the tiered structure set forth in4
637	637	subsection (5)(e) of this section until:5
638	638	(5) The commission shall promulgate rules governing6
639	639	administration of the rebate. On and after the effective date of this7
640	640	section, as amended, the commission shall consult with the enterprise8
641	641	DEPARTMENT in adopting rules governing administration of the rebate.9
642	642	The commission's rules must include the following:10
643	643	(c) If the balance of the fund is anticipated to be insufficient to11
644	644	pay out all of the rebates applied for, a requirement that the enterprise12
645	645	DEPARTMENT:13
646	646	(I) Alternative daily cover must verify with the enterprise14
647	647	DEPARTMENT that the alternative daily cover meets all specification15
648	648	standards for all type-B tire-derived aggregate, as established by the16
649	649	ASTM standard D6270; and17
650	650	(II) Tire-derived aggregate must verify with the enterprise18
651	651	DEPARTMENT that the tire-derived aggregate meets all specification19
652	652	standards for all type-A and type-B tire-derived aggregate, as established20
653	653	by the ASTM standard D6270; and21
654	654	(e) Three tiers of rebate amounts that the enterprise DEPARTMENT22
655	655	may pay out based on the amount of the waste tire that was used and23
656	656	destroyed as follows:24
657	657	(6) The enterprise DEPARTMENT:25
658	658	(b) May deny:26
659	659	(II) All future rebates pursuant to this section and grants of money27
660	660	SB25-117
661	661	-23- from the waste tire management enterprise fund created in section1
662	662	30-20-1404 to an applicant that knowingly or intentionally provides false2
663	663	information to the enterprise DEPARTMENT when applying for a rebate. or3
664	664	for a grant of money from the waste tire management enterprise fund4
665	665	(7) Waste tires obtained from rural counties are eligible for an5
666	666	additional rebate amount of twenty-five dollars per ton; however, the6
667	667	additional rebate amount must not exceed the rebate amount for tier 37
668	668	rebates as determined by rule pursuant to subsection (5)(e)(III) of this8
669	669	section. To qualify for the additional rebate amount set forth in this9
670	670	subsection (7), an end user must provide evidence to the enterprise10
671	671	DEPARTMENT documenting the county of origin for each waste tire.11
672	672	(8) The enterprise DEPARTMENT shall require that an end user12
673	673	submit an application for a rebate that contains self-certifications13
674	674	provided by the end user regarding:14
675	675	(9) (a) On or after January 1, 2026, and until December 31, 2041,15
676	676	the enterprise DEPARTMENT may issue rebates applied for pursuant to this16
677	677	section.17
678	678	(b) The commission, in consultation with the enterprise18
679	679	DEPARTMENT, shall repeal any rules concerning the fund and19
680	680	implementation of this section once the enterprise DEPARTMENT has20
681	681	issued the final rebates pursuant to subsection (9)(a) of this section.21
682	682	SECTION 8. In Colorado Revised Statutes, repeal 30-20-141822
683	683	as follows:23
684	684	30-20-1418. Waste tire management grant program -24
685	685	definitions - repeal. (1) As used in this section, unless the context25
686	686	otherwise requires:26
687	687	(a) "Eligible entity" means the following entities that provide27
688	688	SB25-117
689	689	-24- services related to waste tire recycling, beneficial reuse, and management1
690	690	in Colorado:2
691	691	(I) Municipalities, counties, and cities and counties;3
692	692	(II) Nonprofit and for-profit businesses involved in waste tire4
693	693	recycling, beneficial reuse, and management; and5
694	694	(III) Institutions of higher education and public or private schools.6
695	695	(b) "Grant program" means the waste tire management grant7
696	696	program created in this section.8
697	697	(2) (a) There is created the waste time management grant9
698	698	program, which shall be administered by the enterprise.10
699	699	(b) The enterprise shall, subject to available appropriations and11
700	700	revenues, award grants from the waste tire management enterprise fund,12
701	701	created in section 30-20-1404, in accordance with this section.13
702	702	(3) (a) The purpose of the grant program is to:14
703	703	(I) Promote the development of waste tire recycling, beneficial15
704	704	reuse, and management strategies in accordance with this part 14;16
705	705	(II) Develop waste tire recycling, beneficial reuse, and17
706	706	management facilities and infrastructure; and18
707	707	(III) Expand waste tire recycling, beneficial reuse, and19
708	708	management services to fee payers.20
709	709	(b) The grant program is intended to provide economic and21
710	710	technical assistance to eligible entities in their efforts related to the22
711	711	recycling, beneficial reuse, and management of waste tires.23
712	712	(4) (a) An eligible entity may submit an application to the24
713	713	enterprise for a grant pursuant to the application policies and procedures25
714	714	established by the board.26
715	715	(b) At a minimum, an application submitted to the board must27
716	716	SB25-117
717	717	-25- include the following information:1
718	718	(I) An application narrative that describes how the eligible entity2
719	719	will use the grant, including how the grant will promote the recycling,3
720	720	beneficial reuse, and management of waste tires;4
721	721	(II) An estimate of the cost of the equipment, infrastructure, or5
722	722	project the eligible entity is intending to fund with the grant and whether6
723	723	the equipment, infrastructure, or project meets the requirements specified7
724	724	in subsection (5) of this section;8
725	725	(III) The amount of in-kind contributions or matching funds, if9
726	726	any, to the project budget from the applicant or other sources outside of10
727	727	the grant; and11
728	728	(IV) Whether there is local community support for the grant12
729	729	application.13
730	730	(5) (a) The board may award grants to eligible entities for the14
731	731	following purposes:15
732	732	(I) The purchase of waste tire recycling, beneficial reuse, and16
733	733	management equipment or infrastructure;17
734	734	(II) Staffing of waste tire recycling, beneficial reuse, and18
735	735	management facilities;19
736	736	(III) Marketing and communications for waste tire recycling,20
737	737	beneficial reuse, and management services;21
738	738	(IV) Policy and research development related to waste tire22
739	739	recycling, beneficial reuse, and management strategies;23
740	740	(V) Community engagement regarding waste tire recycling,24
741	741	beneficial reuse, and management; and25
742	742	(VI) Other projects or uses as determined by the board.26
743	743	(b) (I) The board may award grants to an eligible entity for the27
744	744	SB25-117
745	745	-26- purchase of equipment or infrastructure, but no more than fifty percent of1
746	746	the cost of any equipment or infrastructure can be funded through the2
747	747	grant program.3
748	748	(II) The board may award grants to an eligible entity that fund one4
749	749	hundred percent of the cost of a project that does not involve the purchase5
750	750	of equipment or infrastructure.6
751	751	(c) In awarding grants to eligible entities, the board is subject to7
752	752	the following conditions:8
753	753	(I) Up to forty percent of the enterprise's annual grant funding9
754	754	may go to a single award; and10
755	755	(II) If the board awards a grant to an eligible entity for the11
756	756	purchase of infrastructure or equipment, the eligible entity is ineligible to12
757	757	receive a grant for the following five years.13
758	758	(6) (a) (I) The board shall establish criteria and policies to14
759	759	determine which grants to award from the grant applications, which15
760	760	criteria and policies it shall make available to applicants.16
761	761	(II) The board shall give priority to projects that advance17
762	762	sustainable design, production, recoverability, reuse, repair, or recycling18
763	763	of waste tires, with the highest priority given to projects that would keep19
764	764	waste tire material available for remanufacturing.20
765	765	(b) The board shall establish policies for the grant program, which21
766	766	must include:22
767	767	(I) An application form and application procedures;23
768	768	(II) A deadline each year for when grant program applications24
769	769	must be submitted;25
770	770	(III) A policy that requires a grant recipient to enter into a grant26
771	771	agreement with the board that includes a scope of work and deadlines for27
772	772	SB25-117
773	773	-27- the achievement of that work;1
774	774	(IV) Criteria for measuring progress of the projects that receive2
775	775	funding through the grant program;3
776	776	(V) A policy that requires annual reporting by grant recipients on4
777	777	the progress of the project financed by the grant; and5
778	778	(VI) A policy regarding a grant recipient's noncompliance with the6
779	779	grant agreement entered into by the grant recipient and the board, which7
780	780	policy may include a mechanism for the board to convert the grant8
781	781	recipient's grant to a loan with interest.9
782	782	(7) (a) The grant program is funded by the waste tire enterprise10
783	783	fee. The board may designate up to ten percent of the revenue generated11
784	784	from the enterprise fee to the grant program in any given year.12
785	785	(b) The board shall not award any grants to eligible entities13
786	786	through the grant program after December 31, 2040.14
787	787	(8) This section is repealed, effective December 31, 2042.15
788	788	SECTION 9. In Colorado Revised Statutes, 39-21-102, amend16
789	789	(7) as follows:17
790	790	39-21-102. Scope. (7) The provisions of This article 21 apply18
791	791	APPLIES to the fees imposed pursuant to part 3 of article 38.5 of title 2419
792	792	AND article 7.5 of title 25, and the fees collected pursuant to section20
793	793	40-10.1-607.5, but only to the extent that the provisions of this article 2121
794	794	are not inconsistent with the provisions of part 3 of article 38.5 of title 2422
795	795	and article 7.5 of title 25. and section 40-10.1-607.523
796	796	SECTION 10. In Colorado Revised Statutes, 39-21-119.5, repeal24
797	797	(2)(r), (4)(d)(II), and (4)(k) as follows:25
798	798	39-21-119.5. Mandatory electronic filing of returns -26
799	799	mandatory electronic payment - penalty - waiver - definitions.27
800	800	SB25-117
801	801	-28- (2) Except as provided in subsection (6) of this section, the executive1
802	802	director may, as specified in subsection (3) of this section, require the2
803	803	electronic filing of returns and require the payment of any tax or fee due3
804	804	by electronic funds transfer for the following:4
805	805	(r) Any daily vehicle rental fee report required to be filed and5
806	806	payment required to be made pursuant to section 43-4-804 (1)(b)(II);6
807	807	(4) Except as provided in subsection (6) of this section, on and7
808	808	after August 2, 2019, electronic filing of returns and the payment of any8
809	809	tax or fee by electronic funds transfer is required for the following:9
810	810	(d) (II) Any road usage fee report or bridge and tunnel impact fee10
811	811	report required to be filed with a gasoline or special fuel report pursuant11
812	812	to section 43-4-217 (7);12
813	813	(k) Any clean fleet per ride fee and air pollution mitigation per13
814	814	ride fee return required to be filed and payment required pursuant to14
815	815	section 40-10.1-607.5;15
816	816	SECTION 11. In Colorado Revised Statutes, 39-26-706, amend16
817	817	(5) as follows:17
818	818	39-26-706. Miscellaneous sales and use tax exemptions -18
819	819	internet access - refractory materials - precious metal bullion and19
820	820	coins. (5) On and after July 1, 2010 JULY 1, 2025, the collection of the20
821	821	waste tire ANY fee pursuant to section 30-20-1403, C.R.S., is exempt from21
822	822	taxation under part 1 of this article ARTICLE 26.22
823	823	SECTION 12. In Colorado Revised Statutes, 39-27-301, amend23
824	824	(1), (4), and (6); and repeal (3.3) as follows:24
825	825	39-27-301. Definitions. As used in this part 3, unless the context25
826	826	otherwise requires:26
827	827	(1) "Agreement" means a motor fuel tax and fee agreement under27
828	828	SB25-117
829	829	-29- this part 3.1
830	830	(3.3) "Fee" means the road usage fee imposed by section 43-4-2172
831	831	(3) and (4) and the bridge and tunnel impact fee imposed by section3
832	832	43-4-805 (5)(g.5).4
833	833	(4) "Licensee" means a motor carrier who has been issued a fuel5
834	834	tax license under a motor fuel tax and fee agreement.6
835	835	(6) "Motor fuel" means all fuel subject to fees and subject to tax7
836	836	under this article 27.8
837	837	SECTION 13. In Colorado Revised Statutes, repeal9
838	838	40-10.1-607.5 as follows:10
839	839	40-10.1-607.5. Fees - enterprise per ride fees - collection -11
840	840	distribution of fee proceeds - enterprise per ride fees fund - rules -12
841	841	definitions. (1) As used in this section, unless the context otherwise13
842	842	requires:14
843	843	(a) "Air pollution mitigation per ride fee" means the air pollution15
844	844	mitigation per ride fee imposed by the nonattainment area air pollution16
845	845	mitigation enterprise as required by section 43-4-1303 (7).17
846	846	(b) "Car share ride" means a prearranged ride for which the rider18
847	847	agrees, at the time the rider requests the ride through a digital network, to19
848	848	be transported with another rider who has separately requested a20
849	849	prearranged ride.21
850	850	(c) "Clean fleet per ride fee" means the clean fleet per ride fee22
851	851	imposed by the clean fleet enterprise created in section 25-7.5-103 (1)(a)23
852	852	as required by section 25-7.5-103 (7).24
853	853	(d) "Enterprise per ride fees" means the clean fleet per ride fee25
854	854	and the air pollution mitigation per ride fee.26
855	855	(2) For prearranged rides requested and accepted during state27
856	856	SB25-117
857	857	-30- fiscal year 2022-23 or any subsequent state fiscal year, each1
858	858	transportation network company shall pay to the department of revenue,2
859	859	at the time and in the manner prescribed by the department, the enterprise3
860	860	per ride fees, which, for the purpose of minimizing compliance costs for4
861	861	transportation network companies and administrative costs for the state,5
862	862	the department shall collect on behalf of the enterprises.6
863	863	(3) The department of revenue shall transmit all net enterprise per7
864	864	ride fee revenue to the state treasurer, who shall credit the net revenue as8
865	865	follows:9
866	866	(a) All net clean fleet per ride fee revenue shall be credited to the10
867	867	clean fleet enterprise fund created in section 25-7.5-103 (5); and11
868	868	(b) All net air pollution mitigation per ride fee revenue shall be12
869	869	credited to the nonattainment area air pollution mitigation enterprise fund13
870	870	created in section 43-4-1303 (5).14
871	871	(4) When collecting the enterprise per ride fees, the department of15
872	872	revenue shall retain an amount that does not exceed the total cost of16
873	873	collecting, administering, and enforcing the enterprise per ride fees and17
874	874	shall transmit the amount retained to the state treasurer, who shall credit18
875	875	it to the enterprise per ride fees fund, which is hereby created in the state19
876	876	treasury. All money in the enterprise per ride fees fund is continuously20
877	877	appropriated to the department of revenue to defray the costs incurred by21
878	878	the department in collecting, enforcing, and administering the enterprise22
879	879	per ride fees.23
880	880	(5) The collection, administration, and enforcement of the24
881	881	enterprise per ride fees collected as required by subsection (2) of this25
882	882	section shall be performed by the executive director of the department of26
883	883	revenue in the same manner as the collection, administration, and27
884	884	SB25-117
885	885	-31- enforcement of state taxes pursuant to article 21 of title 39. The1
886	886	department of revenue may promulgate rules to implement this section. 2
887	887	SECTION 14. In Colorado Revised Statutes, 43-4-203, amend3
888	888	(1)(e) and (1)(f); and repeal (1)(g) as follows:4
889	889	43-4-203. Sources of revenue. (1) All net revenue from the5
890	890	following sources shall be paid into and credited to the highway users tax6
891	891	fund as soon as it is received:7
892	892	(e) From interest or income earned on the deposit and investment8
893	893	of moneys MONEY in the fund; AND9
894	894	(f) From the imposition of electric motor vehicle road usage10
895	895	equalization fees pursuant to section 42-3-304 (25)(a.5). and11
896	896	(g) From the imposition of road usage fees pursuant to section12
897	897	43-4-217 (3) and (4).13
898	898	SECTION 15. In Colorado Revised Statutes, 43-4-205, amend14
899	899	(6.8)(a) as follows:15
900	900	43-4-205. Allocation of fund. (6.8) (a) Revenue from the electric16
901	901	motor vehicle fee, the electric motor vehicle road usage equalization fee,17
902	902	and the commercial electric motor vehicle fee imposed pursuant to18
903	903	section 42-3-304 (25) that is credited to the highway users tax fund as19
904	904	required by section 42-3-304 (25)(a), (25)(a.5), and (25)(a.7) and revenue20
905	905	from the road usage fees imposed pursuant to section 43-4-217 (3) and (4)21
906	906	that is credited to the highway users tax fund as required by section22
907	907	43-4-217 (8) must be allocated and expended in accordance with the23
908	908	formula specified in subsection (6)(b) of this section.24
909	909	SECTION 16. In Colorado Revised Statutes, repeal 43-4-217 as25
910	910	follows:26
911	911	43-4-217. Additional funding - road usage fees - rules -27
912	912	SB25-117
913	913	-32- legislative declaration - definitions. (1) The general assembly hereby1
914	914	finds and declares that:2
915	915	(a) State motor fuel excise taxes levied on the purchase of motor3
916	916	fuels represent the largest source of state funding for the construction,4
917	917	maintenance, and supervision of the highways, roads, and streets of the5
918	918	state;6
919	919	(b) The amount of motor fuel taxes paid for motor fuel used to7
920	920	propel a motor vehicle bears a reasonable relationship to the vehicle's use8
921	921	of and impact on the highways, roads, and streets of the state because the9
922	922	amount of motor fuel used by a vehicle is in large part a function of the10
923	923	amount of miles traveled by the vehicle and the weight of the vehicle;11
924	924	(c) Motor fuel tax rates have not been increased in over12
925	925	twenty-five years, and motor fuel tax revenue has not kept pace and will13
926	926	not keep pace with inflation or the increased transportation infrastructure14
927	927	demands of the growing population of the state because:15
928	928	(I) The amount of motor fuel tax paid does not depend on the16
929	929	price of motor fuel and therefore does not increase when motor fuel17
930	930	prices increase but instead depends on the quantity of motor fuel18
931	931	purchased, which for most drivers does not increase over time; and19
932	932	(II) Motor vehicles have become more fuel-efficient over time;20
933	933	(d) It is necessary, appropriate, and in the best interest of the state21
934	934	to mitigate the declining purchasing power of motor fuel excise taxes by22
935	935	collecting a road usage fee from persons who use the transportation23
936	936	system to travel by motor vehicle, basing the amount of the fee on24
937	937	reasonable estimates of fee payers' usage of and impact on the system,25
938	938	and using fee revenue solely for the construction, maintenance, and26
939	939	supervision of the highways of the state;27
940	940	SB25-117
941	941	-33- (e) Because motor fuel consumption is reasonably related to use1
942	942	of and impact on the transportation system, it is fair to fee payers,2
943	943	reasonable, and appropriate to calculate the amount of the road usage fee3
944	944	based on their motor fuel consumption;4
945	945	(f) It is also fair to fee payers, reasonable, and appropriate to5
946	946	streamline fee collection by collecting the road usage fee from6
947	947	distributors of motor fuels when motor fuel taxes are collected because7
948	948	the amount of the fee will be incorporated into the retail price of motor8
949	949	fuel and therefore passed on to users of the transportation system in9
950	950	precise proportion to their consumption of motor fuel and in reasonable10
951	951	relation to their use of and impact on the transportation system; and11
952	952	(g) In accordance with numerous Colorado judicial precedents, the12
953	953	road usage fee and the bridge and tunnel impact fee imposed as13
954	954	authorized by section 43-4-805 (5)(g.5) and collected by the department14
955	955	of revenue on behalf of the statewide bridge and tunnel enterprise15
956	956	pursuant to this section are fees and are not taxes because:16
957	957	(I) The fees are imposed not to raise revenue for general17
958	958	governmental purposes but instead are imposed for the sole purpose of18
959	959	funding the construction, maintenance, and supervision of the19
960	960	transportation system, with a priority placed on projects that are20
961	961	designated as ten-year vision projects on the department's ten-year vision21
962	962	project list;22
963	963	(II) Fee revenue defrays costs incurred by the state in funding23
964	964	construction, maintenance, and supervision of the transportation system24
965	965	that is necessitated by increased use of the system by the fee payers who25
966	966	use motor vehicles on the transportation system; and26
967	967	(III) The fees are imposed at rates that are reasonably calculated27
968	968	SB25-117
969	969	-34- to defray the costs of providing the service, are based on the use and1
970	970	impact on the transportation system by fee payers, and are thus2
971	971	proportional to the benefits received by fee payers.3
972	972	(2) As used in this section:4
973	973	(a) "Gasoline" means gasoline, as defined in section 39-27-1015
974	974	(12), that is taxed at the rate specified in section 39-27-102 (1)(a)(II)(A).6
975	975	(b) "Inflation" means the average annual percentage change in the7
976	976	United States department of transportation, federal highway8
977	977	administration, national highway construction cost index or its applicable9
978	978	predecessor or successor index for the five-year period ending on the last10
979	979	December 31 before a state fiscal year for which an adjustment to the11
980	980	road usage fee imposed pursuant to subsection (3) or (4) of this section12
981	981	is to be made begins.13
982	982	(c) "Special fuel" means special fuel, as defined in section14
983	983	39-27-101 (29), that is taxed at the rate specified in section 39-27-10215
984	984	(1)(a)(II)(B). "Special fuel" does not include diesel fuel and kerosene to16
985	985	which indelible dye meeting federal regulations is added before or upon17
986	986	removal from a terminal so long as such fuel is not used for a taxable18
987	987	purpose as described in section 39-27-102.5 (1.5).19
988	988	(3) (a) Except as otherwise provided in subsection (6) of this20
989	989	section, on and after April 1, 2023, each distributor of gasoline that pays21
990	990	the excise tax imposed on gasoline shall also pay, at the same time and in22
991	991	the same manner as the excise tax, a road usage fee in the amount23
992	992	specified in subsection (3)(b)(I) of this section or annually calculated by24
993	993	the department of revenue as required by subsection (3)(b)(II) or25
994	994	(3)(b)(III) of this section.26
995	995	(b) (I) The amount of the road usage fee for each gallon of27
996	996	SB25-117
997	997	-35- gasoline acquired, sold, offered for sale, or used in this state from April1
998	998	1, 2023, through June 30, 2023, and during state fiscal years 2023-242
999	999	through 2031-32 is:3
1000	1000	(A) Two cents per gallon from April 1, 2023, through June 30,4
1001	1001	2023;5
1002	1002	(B) Three cents per gallon for state fiscal year 2023-24;6
1003	1003	(C) Four cents per gallon for state fiscal year 2024-25;7
1004	1004	(D) Five cents per gallon for state fiscal year 2025-26;8
1005	1005	(E) Six cents per gallon for state fiscal year 2026-27;9
1006	1006	(F) Seven cents per gallon for state fiscal year 2027-28; and10
1007	1007	(G) Eight cents per gallon for state fiscal years 2028-29 through11
1008	1008	2031-32.12
1009	1009	(II) Except as otherwise provided in subsection (3)(b)(III) of this13
1010	1010	section, the amount of the road usage fee for each gallon of gasoline14
1011	1011	acquired, sold, offered for sale, or used in this state during state fiscal15
1012	1012	year 2032-33 or during any subsequent state fiscal year is the sum of:16
1013	1013	(A) The nominal amount of eight cents on December 31, 2030,17
1014	1014	adjusted for inflation; and18
1015	1015	(B) The difference between the nominal amount of twenty-two19
1016	1016	cents on December 31, 2030, adjusted for inflation, and the nominal20
1017	1017	amount of twenty-two cents on December 31, 2030.21
1018	1018	(III) An adjustment for inflation shall be made pursuant to22
1019	1019	subsection (3)(b)(II) of this section only if the rate of inflation is positive23
1020	1020	and must be the lesser of the actual rate of inflation or five percent. The24
1021	1021	department of revenue shall calculate the inflation adjusted amount of the25
1022	1022	road usage fee for state fiscal year 2032-33 and shall publish the amount26
1023	1023	no later than April 15, 2032.27
1024	1024	SB25-117
1025	1025	-36- (4) (a) Except as otherwise provided in subsection (6) of this1
1026	1026	section, on and after April 1, 2023, each distributor of special fuel that2
1027	1027	pays the excise tax imposed on special fuel shall also pay, at the same3
1028	1028	time and in the same manner as the excise tax, a road usage fee in the4
1029	1029	amount specified in subsection (4)(b)(I) of this section or annually5
1030	1030	calculated by the department of revenue as required by subsection6
1031	1031	(4)(b)(II) or (4)(b)(III) of this section.7
1032	1032	(b) (I) The amount of the road usage fee for each gallon of special8
1033	1033	fuel acquired, sold, offered for sale, or used in this state from April 1,9
1034	1034	2023, through June 30, 2023, and during state fiscal years 2023-2410
1035	1035	through 2031-32 is:11
1036	1036	(A) Two cents per gallon from April 1, 2023, through June 30,12
1037	1037	2023;13
1038	1038	(B) Three cents per gallon for state fiscal year 2023-24;14
1039	1039	(C) Four cents per gallon for state fiscal year 2024-25;15
1040	1040	(D) Five cents per gallon for state fiscal year 2025-26;16
1041	1041	(E) Six cents per gallon for state fiscal year 2026-27;17
1042	1042	(F) Seven cents per gallon for state fiscal year 2027-28; and18
1043	1043	(G) Eight cents per gallon for state fiscal years 2028-29 through19
1044	1044	2031-32.20
1045	1045	(II) Except as otherwise provided in subsection (4)(b)(III) of this21
1046	1046	section, the amount of the road usage fee for each gallon of special fuel22
1047	1047	acquired, sold, offered for sale, or used in this state during state fiscal23
1048	1048	year 2032-33 or during any subsequent state fiscal year is the sum of:24
1049	1049	(A) The nominal amount of eight cents on December 31, 2030,25
1050	1050	adjusted for inflation; and26
1051	1051	(B) The difference between the nominal amount of twenty and27
1052	1052	SB25-117
1053	1053	-37- one-half cents on December 31, 2030, adjusted for inflation, and the1
1054	1054	nominal amount of twenty and one-half cents on December 31, 2030.2
1055	1055	(III) An adjustment for inflation shall be made pursuant to3
1056	1056	subsection (4)(b)(II) of this section only if the rate of inflation is positive4
1057	1057	and must be the lesser of the actual rate of inflation or five percent. The5
1058	1058	department of revenue shall calculate the inflation adjusted amount of the6
1059	1059	road usage fee for state fiscal year 2032-33 and shall publish the amount7
1060	1060	no later than April 15, 2032.8
1061	1061	(5) Each distributor of special fuel that pays the excise tax9
1062	1062	imposed on special fuel shall also pay, at the same time and in the same10
1063	1063	manner as the excise tax and the road usage fee imposed pursuant to11
1064	1064	subsections (3) and (4) of this section, a bridge and tunnel impact fee in12
1065	1065	the amount imposed by the statewide bridge and tunnel enterprise as13
1066	1066	authorized by section 43-4-805 (5)(g.5). The collection and14
1067	1067	administration of the bridge and tunnel impact fee by the department of15
1068	1068	revenue on behalf of the statewide bridge and tunnel enterprise is done on16
1069	1069	behalf of the enterprise for the purpose of minimizing compliance costs17
1070	1070	for distributors and administrative costs for the state, and all bridge and18
1071	1071	tunnel impact fee revenue is revenue of the enterprise only and is19
1072	1072	excluded from state fiscal year spending, as defined in section 24-77-10220
1073	1073	(17).21
1074	1074	(6) (a) A distributor is not required to pay the road usage fee22
1075	1075	imposed by subsection (3) or (4) of this section or the bridge and tunnel23
1076	1076	impact fee imposed as authorized by section 43-4-805 (5)(g.5), if the24
1077	1077	distributor would otherwise be liable for the excise tax on the gasoline or25
1078	1078	special fuel subject to the fee but is allowed to sell the gasoline or special26
1079	1079	fuel without payment of the applicable excise tax pursuant to section27
1080	1080	SB25-117
1081	1081	-38- 39-27-102 (1)(b)(II) or section 39-27-102.5 (2)(b).1
1082	1082	(b) Gasoline or special fuel removed from a terminal in this state2
1083	1083	by a person licensed as an exporter pursuant to section 39-27-1043
1084	1084	exclusively for delivery to another state is not subject to the road usage4
1085	1085	fee imposed by subsection (3) or (4) of this section or the bridge and5
1086	1086	tunnel impact fee imposed as authorized by section 43-4-805 (5)(g.5).6
1087	1087	(c) The burden of proving that gasoline or special fuel is not7
1088	1088	subject to the road usage fee imposed by subsection (3) or (4) of this8
1089	1089	section or the bridge and tunnel impact fee imposed as authorized by9
1090	1090	section 43-4-805 (5)(g.5) is on the distributor under such reasonable10
1091	1091	requirements of proof as the executive director of the department of11
1092	1092	revenue may prescribe.12
1093	1093	(7) The collection, administration, and enforcement of the road13
1094	1094	usage fees imposed by subsection (3) or (4) of this section and the bridge14
1095	1095	and tunnel impact fee imposed as authorized by section 43-4-805 (5)(g.5)15
1096	1096	shall be performed by the executive director of the department of revenue16
1097	1097	in the same manner as the collection, administration, and enforcement of17
1098	1098	state gasoline and special fuel taxes pursuant to article 27 of title 39. A18
1099	1099	distributor who pays the road usage fee as required by subsection (3) or19
1100	1100	(4) of this section shall remit the fee, together with any bridge and tunnel20
1101	1101	impact fee that the distributor also pays as required by section 43-4-80521
1102	1102	(5)(g.5) and subsection (5) of this section, to the department of revenue22
1103	1103	at the same time and in the same manner in which the distributor remits23
1104	1104	gasoline or special fuel taxes collected by the distributor as required by24
1105	1105	article 27 of title 39. The department of revenue may promulgate rules to25
1106	1106	implement this section.26
1107	1107	(8) In accordance with section 43-4-203 (1)(f), the state treasurer27
1108	1108	SB25-117
1109	1109	-39- shall credit all road usage fee revenue collected as required by this section1
1110	1110	to the highway users tax fund created in section 43-4-201. In accordance2
1111	1111	with section 43-4-805 (5)(g.5), the state treasurer shall credit all bridge3
1112	1112	and tunnel impact fee revenue collected as required by this section to the4
1113	1113	statewide bridge and tunnel enterprise special revenue fund created in5
1114	1114	section 43-4-805 (3)(a). All fees credited to the highway users tax fund6
1115	1115	pursuant to this section shall be allocated from the highway users tax fund7
1116	1116	to the state, counties, and municipalities as required by section 43-4-2058
1117	1117	(6.8).9
1118	1118	SECTION 17. In Colorado Revised Statutes, 43-4-802, amend10
1119	1119	(2)(c) and (2)(d) as follows:11
1120	1120	43-4-802. Legislative declaration. (2) The general assembly12
1121	1121	further finds and declares that:13
1122	1122	(c) Increasing funding for designated bridge projects, preventative14
1123	1123	maintenance bridge projects, tunnel projects, and road safety projects in15
1124	1124	the short- and medium-term through the imposition of bridge and road16
1125	1125	safety surcharges a bridge and tunnel impact fee, and other new fees at17
1126	1126	rates reasonably calculated based on the benefits received by the persons18
1127	1127	paying the fees will not only provide funding to complete the projects but19
1128	1128	will also accelerate the state's economic recovery by increasing bridge,20
1129	1129	tunnel, and road construction, repair, reconstruction, and maintenance21
1130	1130	activity, as well as related economic activity, and by employing22
1131	1131	significant numbers of Coloradans;23
1132	1132	(d) The creation of a statewide bridge and tunnel enterprise24
1133	1133	authorized to complete designated bridge projects, preventative25
1134	1134	maintenance bridge projects, and tunnel projects, to impose a bridge26
1135	1135	safety surcharge and a bridge and tunnel impact fee and issue revenue27
1136	1136	SB25-117
1137	1137	-40- bonds, and, if required approvals are obtained, to contract with the state1
1138	1138	to receive one or more loans of money received by the state under the2
1139	1139	terms of one or more financed purchase of an asset or certificate of3
1140	1140	participation agreements authorized by this part 8 and to use the revenues4
1141	1141	generated by the bridge safety surcharge and the bridge and tunnel impact5
1142	1142	fee to repay any such loan or loans, will improve the safety and efficiency6
1143	1143	of the state transportation system by allowing the state to accelerate the7
1144	1144	repair, reconstruction, and replacement of structurally deficient,8
1145	1145	functionally obsolete, and rated as poor bridges, to perform preventative9
1146	1146	maintenance on bridges rated as fair and good, and to repair, maintain,10
1147	1147	and more safely operate tunnels;11
1148	1148	SECTION 18. In Colorado Revised Statutes, 43-4-804, repeal12
1149	1149	(1)(b) as follows:13
1150	1150	43-4-804. Highway safety projects - surcharges and fees -14
1151	1151	crediting of money to highway users tax fund - definition. (1) The15
1152	1152	following surcharges, fees, and fines shall be collected and credited to the16
1153	1153	highway users tax fund created in section 43-4-201 (1)(a) and allocated17
1154	1154	to the state highway fund, counties, and municipalities as specified in18
1155	1155	section 43-4-205 (6.3):19
1156	1156	(b) (I) (A) Except as otherwise provided in subsections (1)(b)(III)20
1157	1157	and (1)(b)(IV) of this section, a daily vehicle rental fee is imposed on all21
1158	1158	short-term vehicle rentals at the rate of two dollars per day; except that a22
1159	1159	subsequent renewal of a short-term vehicle rental is exempt from the fee23
1160	1160	to the extent that the renewal extends the total rental period beyond thirty24
1161	1161	days. The rental invoice shall list the daily vehicle rental fee separately as25
1162	1162	a Colorado road safety program fee. On and after July 1, 2022, a car26
1163	1163	sharing program, as defined in section 6-1-1202 (4), shall collect the daily27
1164	1164	SB25-117
1165	1165	-41- vehicle rental fee for any short-term vehicle rental of twenty-four hours1
1166	1166	or longer that is enabled by the car sharing program.2
1167	1167	(B) As used in this subsection (1)(b), "short-term vehicle rental"3
1168	1168	means the rental of any motor vehicle, as defined in section 42-1-1024
1169	1169	(58), with a gross vehicle weight rating of twenty-six thousand pounds or5
1170	1170	less that is rented within Colorado for a period of not more than thirty6
1171	1171	days.7
1172	1172	(II) A person who collects the daily vehicle rental fee imposed by8
1173	1173	subsection (1)(b)(I) of this section and who pays specific ownership tax9
1174	1174	on the vehicles rented in the manner specified in either section 42-3-10710
1175	1175	(11) or (12), or both, shall, no later than the twentieth day of each month,11
1176	1176	submit to the department of revenue a report, using forms furnished by12
1177	1177	the department of revenue, of daily vehicle rental fees collected for the13
1178	1178	preceding month and shall include with the report the remittance of all14
1179	1179	such fees. A person who collects the daily vehicle rental fee imposed by15
1180	1180	subsection (1)(b)(I) of this section but does not pay specific ownership16
1181	1181	tax on the vehicles in the manner specified in either section 42-3-107 (11)17
1182	1182	or (12), or both, shall submit the report and the remittance of fees18
1183	1183	collected in the same manner or in such other manner as the executive19
1184	1184	director of the department of revenue may prescribe by rules promulgated20
1185	1185	in accordance with article 4 of title 24. The executive director of the21
1186	1186	department of revenue shall forward all daily vehicle rental fees collected,22
1187	1187	together with all congestion impact fees imposed by the transportation23
1188	1188	enterprise pursuant to section 43-4-806 (7.6) collected, to the state24
1189	1189	treasurer and shall identify the amounts of each fee being forwarded. The25
1190	1190	state treasurer shall credit the daily vehicle rental fees imposed pursuant26
1191	1191	to subsection (1)(b)(I)(A) of this section to the highway users tax fund27
1192	1192	SB25-117
1193	1193	-42- and shall credit the congestion impact fees imposed by the transportation1
1194	1194	enterprise pursuant to section 43-4-806 (7.6) to the transportation special2
1195	1195	fund as required by section 43-4-806 (7.6)(b).3
1196	1196	(III) Because vehicle sharing is an alternative to personal vehicle4
1197	1197	ownership that reduces the number of vehicle miles traveled on the5
1198	1198	highways of the state by encouraging the use of transit and reducing the6
1199	1199	number of trips made in privately owned vehicles and thereby benefits the7
1200	1200	state by reducing traffic congestion, greenhouse gas emissions, and the8
1201	1201	amount of wear and tear on the highways, the daily vehicle rental fee9
1202	1202	imposed pursuant to this paragraph (b) shall not be imposed on any10
1203	1203	vehicle rented pursuant to a vehicle sharing arrangement if:11
1204	1204	(A) Under the terms of the arrangement, an organization provides12
1205	1205	passenger vehicles for the use of members of the organization who have13
1206	1206	paid a membership fee to the organization and charges an additional fee14
1207	1207	for each use of a passenger vehicle;15
1208	1208	(B) A member of the organization is not required to enter into a16
1209	1209	separate written agreement with the organization each time the member17
1210	1210	reserves and uses a passenger vehicle;18
1211	1211	(C) The average paid usage period for all passenger vehicles19
1212	1212	provided by the organization during the prior calendar year was six hours20
1213	1213	or less;21
1214	1214	(D) At least three-quarters of all passenger vehicle rentals made22
1215	1215	by the organization during the prior calendar year in each municipality or23
1216	1216	county in which the organization does business were made to members24
1217	1217	of the organization who maintain a residence within the city or county;25
1218	1218	(E) Fuel and full insurance coverage are included in the member26
1219	1219	usage rates; and27
1220	1220	SB25-117
1221	1221	-43- (F) Passenger vehicles provided by the organization are stationed1
1222	1222	in self-serve locations throughout the county or municipality in which the2
1223	1223	organization does business.3
1224	1224	(IV) (A) For short-term vehicle rentals beginning during state4
1225	1225	fiscal year 2022-23 and for short-term vehicle rental periods beginning5
1226	1226	during any subsequent state fiscal year, the department of revenue shall6
1227	1227	annually adjust the amount of the daily vehicle rental fee for inflation.7
1228	1228	The department of revenue shall calculate the inflation adjusted amount8
1229	1229	of the short-term vehicle rental fee for each state fiscal year and shall9
1230	1230	publish the amount no later than the May 1 of the calendar year in which10
1231	1231	the state fiscal year begins.11
1232	1232	(B) As used in this subsection (1)(b)(IV), "inflation" means the12
1233	1233	average annual percentage change in the United States department of13
1234	1234	labor, bureau of labor statistics, consumer price index for14
1235	1235	Denver-Aurora-Lakewood for all items and all urban consumers, or its15
1236	1236	applicable predecessor or successor index, for the five years ending on the16
1237	1237	last December 31 before a state fiscal year for which an inflation17
1238	1238	adjustment to the short-term vehicle rental fee is to be made begins.18
1239	1239	SECTION 19. In Colorado Revised Statutes, 43-4-805, amend19
1240	1240	(1)(b)(II), (2)(b)(I), (2)(c), (3)(a), (5)(r)(I), and (5)(r)(III)(A); and repeal20
1241	1241	(5)(g)(III) and (5)(g.5) as follows:21
1242	1242	43-4-805. Statewide bridge enterprise - creation - board -22
1243	1243	funds - powers and duties - legislative declaration - definitions.23
1244	1244	(1) The general assembly hereby finds and declares that:24
1245	1245	(b) Due to the limited availability of state and federal funding and25
1246	1246	the need to accomplish the financing, repair, reconstruction, and26
1247	1247	replacement of designated bridges; the completion of preventative27
1248	1248	SB25-117
1249	1249	-44- maintenance bridge projects; and the completion of tunnel projects as1
1250	1250	promptly and efficiently as possible, it is necessary to create a statewide2
1251	1251	bridge and tunnel enterprise and to authorize the enterprise to:3
1252	1252	(II) Impose a bridge safety surcharge a bridge and tunnel impact4
1253	1253	fee, and a bridge and tunnel retail delivery fee at rates reasonably5
1254	1254	calculated to defray the costs of completing designated bridge projects,6
1255	1255	preventative maintenance bridge projects, and tunnel projects and7
1256	1256	distribute the burden of defraying the costs in a manner based on the8
1257	1257	benefits received by persons paying the fees and using designated bridges9
1258	1258	and tunnels and receiving retail deliveries, receive and expend revenue10
1259	1259	generated by the surcharge and fees FEE and other money, issue revenue11
1260	1260	bonds and other obligations, contract with the state, if required approvals12
1261	1261	are obtained, to receive one or more loans of money received by the state13
1262	1262	under the terms of one or more financed purchase of an asset or certificate14
1263	1263	of participation agreements authorized by this part 8, expend revenue15
1264	1264	generated by the surcharge
1265	1265	AND FEE to repay any such loan or loans16
1266	1266	received, and exercise other powers necessary and appropriate to carry17
1267	1267	out its purposes; and18
1268	1268	(2) (b) The business purpose of the bridge enterprise is to finance,19
1269	1269	repair, reconstruct, and replace any designated bridge in the state,20
1270	1270	complete preventative maintenance bridge projects, and complete tunnel21
1271	1271	projects and, as agreed upon by the enterprise and the commission, or the22
1272	1272	department to the extent authorized by the commission, to maintain the23
1273	1273	bridges it finances, repairs, reconstructs, and replaces. To allow the24
1274	1274	bridge enterprise to accomplish this purpose and fully exercise its powers25
1275	1275	and duties through the bridge enterprise board, the bridge enterprise may:26
1276	1276	(I) Impose a bridge safety surcharge a bridge and tunnel impact
1277	1277	27
1278	1278	SB25-117
1279	1279	-45- fee, and a bridge and tunnel retail delivery fee as authorized by1
1280	1280	subsections (5)(g) (5)(g.5), and (5)(g.7) of this section;2
1281	1281	(c) The bridge enterprise constitutes an enterprise for purposes of3
1282	1282	section 20 of article X of the state constitution so long as it retains the4
1283	1283	authority to issue revenue bonds and receives less than ten percent of its5
1284	1284	total revenues in grants from all Colorado state and local governments6
1285	1285	combined. So long as it constitutes an enterprise pursuant to this7
1286	1286	subsection (2)(c), the bridge enterprise shall not be subject to any8
1287	1287	provisions of section 20 of article X of the state constitution. Consistent9
1288	1288	with the determination of the Colorado supreme court in Nicholl v. E-47010
1289	1289	Public Highway Authority, 896 P.2d 859 (Colo. 1995), that the power to11
1290	1290	impose taxes is inconsistent with "enterprise" status under section 20 of12
1291	1291	article X of the state constitution, the general assembly finds and declares13
1292	1292	that a bridge safety surcharge a bridge and tunnel impact fee, or a bridge14
1293	1293	and tunnel retail delivery fee imposed by the bridge enterprise as15
1294	1294	authorized by subsection (5)(g) (5)(g.5), or (5)(g.7) of this section is not16
1295	1295	a tax but is instead a fee imposed by the bridge enterprise to defray the17
1296	1296	cost of completing designated bridge projects, preventative maintenance18
1297	1297	bridge projects, and tunnel projects that the enterprise provides as a19
1298	1298	specific service to the persons upon whom the fee is imposed and at rates20
1299	1299	reasonably calculated based on the benefits received by such persons.21
1300	1300	(3) (a) The statewide bridge and tunnel enterprise special revenue22
1301	1301	fund, referred to in this part 8 as the "bridge special fund", is hereby23
1302	1302	created in the state treasury. All revenue received by the bridge enterprise,24
1303	1303	including, but not limited to, revenue from a bridge safety surcharge25
1304	1304	imposed as authorized by subsection (5)(g) of this section, revenue from26
1305	1305	a bridge and tunnel impact fee imposed as authorized by subsection27
1306	1306	SB25-117
1307	1307	-46- (5)(g.5) of this section, revenue from a bridge and tunnel retail delivery1
1308	1308	fee imposed as authorized by subsection (5)(g.7) of this section, and any2
1309	1309	money loaned to the enterprise by the state pursuant to subsection (5)(r)3
1310	1310	of this section, shall be deposited into the bridge special fund. The bridge4
1311	1311	enterprise board may establish separate accounts within the bridge special5
1312	1312	fund as needed in connection with any specific designated bridge project,6
1313	1313	preventative maintenance bridge project, or tunnel project. The bridge7
1314	1314	enterprise also may deposit or permit others to deposit other money into8
1315	1315	the bridge special fund, but in no event may revenue from any tax9
1316	1316	otherwise available for general purposes be deposited into the bridge10
1317	1317	special fund. The state treasurer, after consulting with the bridge11
1318	1318	enterprise board, shall invest any money in the bridge special fund,12
1319	1319	including any surplus or reserves, but excluding any proceeds from the13
1320	1320	sale of bonds or earnings on such proceeds invested pursuant to section14
1321	1321	43-4-807 (2), that are not needed for immediate use. Such money may be15
1322	1322	invested in the types of investments authorized in sections 24-36-109,16
1323	1323	24-36-112, and 24-36-113.17
1324	1324	(5) In addition to any other powers and duties specified in this18
1325	1325	section, the bridge enterprise board has the following powers and duties:19
1326	1326	(g) (III) The bridge safety surcharge shall not be imposed on any20
1327	1327	rental vehicle on which a daily vehicle rental fee is imposed pursuant to21
1328	1328	section 43-4-804 (1)(b).22
1329	1329	(g.5) (I) In furtherance of its business purpose, to impose a bridge23
1330	1330	and tunnel impact fee to be paid in the amount imposed by the bridge24
1331	1331	enterprise as authorized by subsection (5)(g.5)(II) or (5)(g.5)(III) of this25
1332	1332	section by each distributor of special fuel, as defined in section 43-4-21726
1333	1333	(2)(c), that pays the excise tax imposed on special fuel pursuant to article27
1334	1334	SB25-117
1335	1335	-47- 27 of title 39, at the same time and in the same manner as the excise tax1
1336	1336	and the road usage fee imposed pursuant to section 43-4-217 (3) and (4).2
1337	1337	For the purpose of minimizing compliance costs for distributors and3
1338	1338	administrative costs for the state, the department of revenue shall collect4
1339	1339	and administer the bridge and tunnel impact fee on behalf of the bridge5
1340	1340	enterprise in the same manner in which it collects and administers the6
1341	1341	excise tax and the road usage fee imposed pursuant to section 43-4-2177
1342	1342	(3) and (4).8
1343	1343	(II) For each gallon of special fuel acquired, sold, offered for sale,9
1344	1344	or used in this state during state fiscal years 2022-23 through 2031-32, the10
1345	1345	bridge enterprise shall impose the bridge and tunnel impact fee in an11
1346	1346	amount of up to:12
1347	1347	(A) Two cents per gallon for state fiscal year 2022-23;13
1348	1348	(B) Three cents per gallon for state fiscal year 2023-24;14
1349	1349	(C) Four cents per gallon for state fiscal year 2024-25;15
1350	1350	(D) Five cents per gallon for state fiscal year 2025-26;16
1351	1351	(E) Six cents per gallon for state fiscal year 2026-27;17
1352	1352	(F) Seven cents per gallon for state fiscal year 2027-28; and18
1353	1353	(G) Eight cents per gallon for state fiscal years 2028-29 through19
1354	1354	2031-32.20
1355	1355	(III) For each gallon of special fuel acquired, sold, offered for21
1356	1356	sale, or used in this state during state fiscal year 2032-33 or during any22
1357	1357	subsequent state fiscal year, the bridge enterprise shall impose the bridge23
1358	1358	and tunnel impact fee in an amount of up to the maximum amount of the24
1359	1359	fee for the prior state fiscal year adjusted for inflation. The bridge25
1360	1360	enterprise shall notify the department of revenue of the amount of the26
1361	1361	bridge and tunnel impact fee to be collected for each state fiscal year no27
1362	1362	SB25-117
1363	1363	-48- later than March 15 of the calendar year in which the state fiscal year1
1364	1364	begins, and the department of revenue shall publish the amount no later2
1365	1365	than April 15 of the calendar year in which the state fiscal year begins.3
1366	1366	(IV) As used in this subsection (5)(g.5), "inflation" means the4
1367	1367	average annual percentage change in the United States department of5
1368	1368	transportation, federal highway administration, national highway6
1369	1369	construction cost index or its applicable predecessor or successor index7
1370	1370	for the five-year period ending on the last December 31 before a state8
1371	1371	fiscal year for which an adjustment to the bridge and tunnel impact fee9
1372	1372	imposed as authorized by this subsection (5)(g.5) is to be made begins.10
1373	1373	(r) (I) To contract with the state to borrow money under the terms11
1374	1374	of one or more loan contracts entered into by the state and the bridge12
1375	1375	enterprise pursuant to subsection (5)(r)(III) of this section, to expend any13
1376	1376	money borrowed from the state for the purpose of completing designated14
1377	1377	bridge projects, preventative maintenance bridge projects, and tunnel15
1378	1378	projects and for any other authorized purpose that constitutes the16
1379	1379	construction, supervision, and maintenance of the public highways of this17
1380	1380	state for purposes of section 18 of article X of the state constitution, and18
1381	1381	to use revenue generated by any bridge safety surcharge bridge and tunnel19
1382	1382	impact fee, or bridge and tunnel retail delivery fee imposed pursuant to20
1383	1383	subsection (5)(g) (5)(g.5), or (5)(g.7) of this section and any other legally21
1384	1384	available money of the bridge enterprise to repay the money borrowed22
1385	1385	and any other amounts payable under the terms of the loan contract.23
1386	1386	(III) (A) If the state treasurer receives a list from the governor24
1387	1387	pursuant to subsection (5)(r)(II) of this section, the state, acting by and25
1388	1388	through the state treasurer, may enter into a loan contract with the bridge26
1389	1389	enterprise and may raise the money needed to make a loan pursuant to the27
1390	1390	SB25-117
1391	1391	-49- terms of the loan contract by selling or leasing one or more of the state1
1392	1392	buildings or other state capital facilities on the list. The state treasurer2
1393	1393	shall have sole discretion to enter into a loan contract on behalf of the3
1394	1394	state and to determine the amount of a loan; except that the principal4
1395	1395	amount of a loan shall not exceed the maximum amount specified by the5
1396	1396	governor pursuant to subsection (5)(r)(II) of this section. The state6
1397	1397	treasurer shall also have sole discretion to determine the timing of the7
1398	1398	entry of the state into any loan contract or the sale or lease of one or more8
1399	1399	state buildings or other state capital facilities. The loan contract shall9
1400	1400	require the bridge enterprise to pledge to the state all or a portion of the10
1401	1401	revenues of any bridge safety surcharge bridge and tunnel impact fee, or11
1402	1402	bridge and tunnel retail delivery fee imposed pursuant to subsection (5)(g)12
1403	1403	(5)(g.5), or (5)(g.7) of this section for the repayment of the loan and may13
1404	1404	also require the bridge enterprise to pledge to the state any other legally14
1405	1405	available revenue of the bridge enterprise. Any loan contract entered into15
1406	1406	by the state, acting by and through the state treasurer, and the bridge16
1407	1407	enterprise pursuant to this subsection (5)(r)(III)(A) and any pledge of17
1408	1408	revenue by the bridge enterprise pursuant to such a loan contract shall be18
1409	1409	only for the benefit of, and enforceable only by, the state and the bridge19
1410	1410	enterprise. Specifically, but without limiting the generality of said20
1411	1411	limitation, no such loan contract or pledge shall be for the benefit of, or21
1412	1412	enforceable by, a seller under a financed purchase of an asset or22
1413	1413	certificate of participation agreement entered into pursuant to this23
1414	1414	subsection (5)(r)(III), an owner of any instrument evidencing rights to24
1415	1415	receive rentals or other payments made and to be made under such a25
1416	1416	financed purchase of an asset or certificate of participation agreement as26
1417	1417	authorized by subsection (5)(r)(IV)(B) of this section, a party to any27
1418	1418	SB25-117
1419	1419	-50- ancillary agreement or instrument entered into pursuant to subsection1
1420	1420	(5)(r)(V) of this section, or a party to any interest rate exchange2
1421	1421	agreement entered into pursuant to subsection (5)(r)(VII)(A) of this3
1422	1422	section.4
1423	1423	SECTION 20. In Colorado Revised Statutes, 43-4-806, amend5
1424	1424	(7.6)(b) as follows:6
1425	1425	43-4-806. High-performance transportation enterprise -7
1426	1426	creation - enterprise status - board - funds - powers and duties - user8
1427	1427	fees - limitations - reporting requirements - violations on the peak9
1428	1428	period shoulder lanes - legislative declaration - definitions.10
1429	1429	(7.6) (b) The congestion impact fee must be collected, submitted to the11
1430	1430	department of revenue, administered by the department of revenue, and12
1431	1431	forwarded by the department of revenue to the state treasurer in the same13
1432	1432	manner in which the daily vehicle rental fee
1433	1433	THAT WAS imposed pursuant14
1434	1434	to section 43-4-804 (1)(b)(I)(A) is
1435	1435	SECTION 43-4-804 (1)(b) BEFORE THE15
1436	1436	REPEAL OF SAID SECTION 43-4-804 (1)(b) BY THIS SENATE BILL 25-___,16
1437	1437	ENACTED IN 2025, WAS collected, submitted, administered, and forwarded17
1438	1438	pursuant to section 43-4-804 (1)(b)(II) The department of revenue, when18
1439	1439	forwarding the congestion impact fee to the state treasurer, with the daily19
1440	1440	vehicle rental fee imposed pursuant to section 43-4-804 (1)(b)(I)(A), shall20
1441	1441	identify the amounts of each fee being forwarded, and AS SAID21
1442	1442	SUBSECTION EXISTED PRIOR TO ITS REPEAL BY THIS SENATE BILL 25-___,22
1443	1443	ENACTED IN 2025. The state treasurer shall credit all congestion impact23
1444	1444	fees to the transportation special fund. Any vehicle rented pursuant to a24
1445	1445	vehicle sharing arrangement that is exempt, pursuant to section 43-4-80425
1446	1446	(1)(b)(III), from the daily vehicle rental fee imposed pursuant to section26
1447	1447	43-4-804 (1)(b)(I)(A) is also exempt from the congestion impact fee.27
1448	1448	SB25-117
1449	1449	-51- SECTION 21. In Colorado Revised Statutes, 43-4-1301, amend1
1450	1450	(1)(a), (1)(c), (2)(a), and (2)(c) as follows:2
1451	1451	43-4-1301. Legislative declaration. (1) The general assembly3
1452	1452	hereby finds and declares that:4
1453	1453	(a) Rapid and continuing growth in retail deliveries made by5
1454	1454	motor vehicles and in prearranged rides arranged through transportation6
1455	1455	network companies has increased and will continue to increase traffic7
1456	1456	congestion and air pollution from motor vehicle emissions, along with the8
1457	1457	adverse environmental and health impacts that result from such pollution,9
1458	1458	in nonattainment areas, including but not limited to disproportionately10
1459	1459	impacted communities and communities adjacent to highways;11
1460	1460	(c) Instead of reducing the impacts of retail deliveries and12
1461	1461	prearranged rides arranged through transportation network companies, by13
1462	1462	limiting retail delivery and prearranged ride activity through regulation,14
1463	1463	it is more appropriate to continue to allow persons who receive retail15
1464	1464	deliveries and benefit from the convenience afforded by unfettered retail16
1465	1465	deliveries and to allow transportation network companies that arrange17
1466	1466	prearranged rides to continue to provide RECEIVE that service without18
1467	1467	undue restrictions and to instead impose a small fee on each retail19
1468	1468	delivery and prearranged ride and use fee revenue to fund necessary20
1469	1469	mitigation activities.21
1470	1470	(2) The general assembly further finds and declares that:22
1471	1471	(a) The enterprise provides impact remediation services when, in23
1472	1472	exchange for the payment of air pollution mitigation per ride fees by24
1473	1473	transportation network companies and air pollution mitigation retail25
1474	1474	delivery fees by or on behalf of purchasers of tangible personal property26
1475	1475	for retail delivery, it acts as authorized by this section to mitigate the27
1476	1476	SB25-117
1477	1477	-52- impacts of prearranged rides arranged through transportation network1
1478	1478	companies and residential and commercial deliveries on the state's2
1479	1479	transportation infrastructure, air quality, and emissions;3
1480	1480	(c) Consistent with the determination of the Colorado supreme4
1481	1481	court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.5
1482	1482	1995), that the power to impose taxes is inconsistent with enterprise status6
1483	1483	under section 20 of article X of the state constitution, it is the conclusion7
1484	1484	of the general assembly that the revenue collected by the enterprise is8
1485	1485	generated by fees, not taxes, because the air pollution mitigation per ride9
1486	1486	fee and the air pollution mitigation retail delivery fee imposed by the10
1487	1487	enterprise as authorized by section 43-4-1303 are IS:11
1488	1488	(I) Imposed for the specific purpose of allowing the enterprise to12
1489	1489	defray the costs of providing the remediation services specified in this13
1490	1490	section, including mitigating impacts to air quality and greenhouse gas14
1491	1491	emissions caused by the activities on which the fees are FEE IS assessed,15
1492	1492	and contribute CONTRIBUTES to the implementation of the comprehensive16
1493	1493	regulatory scheme required for the planning, funding, development,17
1494	1494	construction, maintenance, and supervision of a sustainable transportation18
1495	1495	system; and19
1496	1496	(II) Collected at rates that are A RATE THAT IS reasonably20
1497	1497	calculated based on the impacts caused by fee payers and the cost of21
1498	1498	remediating those impacts; and22
1499	1499	SECTION 22. In Colorado Revised Statutes, 43-4-1302, amend23
1500	1500	(15); and repeal (4), (18), (22), (24), and (25) as follows:24
1501	1501	43-4-1302. Definitions. As used in this part 13, unless the context25
1502	1502	otherwise requires:26
1503	1503	(4) "Car share ride" means a prearranged ride for which the rider27
1504	1504	SB25-117
1505	1505	-53- agrees, at the time the rider requests the ride through a digital network, to1
1506	1506	be transported with another rider who has separately requested a2
1507	1507	prearranged ride regardless of whether or not another rider is actually3
1508	1508	transported with the rider.4
1509	1509	(15) "Inflation" means the average annual percentage change in5
1510	1510	the United States department of labor, bureau of labor statistics, consumer6
1511	1511	price index for Denver-Aurora-Lakewood for all items and all urban7
1512	1512	consumers, or its applicable predecessor or successor index, for the five8
1513	1513	years ending on the last December 31 before a state fiscal year for which9
1514	1514	an inflation adjustment to be made to the air pollution mitigation per ride10
1515	1515	fee imposed by section 43-4-1303 (7) or the air pollution mitigation retail11
1516	1516	delivery fee imposed by section 43-4-1303 (8) begins.12
1517	1517	(18) "Prearranged ride" has the same meaning as set forth in13
1518	1518	section 40-10.1-602 (2).14
1519	1519	(22) "Rider" has the same meaning as set forth in section15
1520	1520	40-10.1-602 (5).16
1521	1521	(24) "Transportation network company" has the same meaning as17
1522	1522	set forth in section 40-10.1-602 (3).18
1523	1523	(25) "Zero emissions motor vehicle" means a battery electric19
1524	1524	motor vehicle or a hydrogen fuel cell motor vehicle.20
1525	1525	SECTION 23. In Colorado Revised Statutes, 43-4-1303, amend21
1526	1526	(3) introductory portion, (3)(a), (5)(a), (6)(h), and (9); and repeal (7) as22
1527	1527	follows:23
1528	1528	43-4-1303. Nonattainment area air pollution mitigation24
1529	1529	enterprise - creation - board - powers and duties - rules - fees - grants25
1530	1530	- reformulated gasoline cost stabilization program - fund. (3) The26
1531	1531	business purpose of the enterprise is to mitigate the environmental and27
1532	1532	SB25-117
1533	1533	-54- health impacts of increased air pollution from motor vehicle emissions in1
1534	1534	nonattainment areas that results from the rapid and continuing growth in2
1535	1535	retail deliveries made by motor vehicles and in prearranged rides3
1536	1536	provided by transportation network companies by providing funding for4
1537	1537	eligible projects that reduce traffic, including demand management5
1538	1538	projects that encourage alternatives to driving alone or that directly6
1539	1539	reduce air pollution, such as retrofitting of construction equipment,7
1540	1540	construction of roadside vegetation barriers, and planting trees along8
1541	1541	medians. To allow the enterprise to accomplish this purpose and fully9
1542	1542	exercise its powers and duties through the board, the enterprise may:10
1543	1543	(a) Impose an air pollution mitigation per ride fee and an air11
1544	1544	pollution mitigation retail delivery fee as authorized by subsections (7)12
1545	1545	and (8) SUBSECTION (8) of this section;13
1546	1546	(5) (a) The nonattainment area air pollution mitigation enterprise14
1547	1547	fund is hereby created in the state treasury. The fund consists of air15
1548	1548	pollution mitigation per ride fee revenue and air pollution mitigation retail16
1549	1549	delivery fee revenue credited to the fund pursuant to subsections (7) and17
1550	1550	(8) SUBSECTION (8) of this section, any monetary gifts, grants, donations,18
1551	1551	or other payments received by the enterprise, any federal money that may19
1552	1552	be credited to the fund, and any other money that the general assembly20
1553	1553	may appropriate or transfer to the fund. The state treasurer shall credit all21
1554	1554	interest and income derived from the deposit and investment of money in22
1555	1555	the fund to the fund. Money in the fund is continuously appropriated to23
1556	1556	the enterprise for the purposes set forth in this part 13 and to pay the24
1557	1557	enterprise's reasonable and necessary operating expenses, including the25
1558	1558	repayment of any loan received pursuant to subsection (5)(b) of this26
1559	1559	section.27
1560	1560	SB25-117
1561	1561	-55- (6) In addition to any other powers and duties specified in this1
1562	1562	section, the board has the following general powers and duties:2
1563	1563	(h) To promulgate rules for the sole purpose of setting the3
1564	1564	amounts AMOUNT of the air pollution mitigation per ride fee and the air4
1565	1565	pollution mitigation retail delivery fee at or below the maximum amounts5
1566	1566	AMOUNT authorized in this section; and6
1567	1567	(7) (a) In furtherance of its business purpose, beginning in state7
1568	1568	fiscal year 2022-23, the enterprise shall impose an air pollution mitigation8
1569	1569	per ride fee to be paid by a transportation network company for each9
1570	1570	prearranged ride requested and accepted through the company's digital10
1571	1571	network. For the purpose of minimizing compliance costs for11
1572	1572	transportation network companies and administrative costs for the state,12
1573	1573	the department of revenue shall collect the air pollution mitigation per13
1574	1574	ride fee on behalf of the enterprise, and a transportation network company14
1575	1575	shall pay the fee to the department of revenue as required by section15
1576	1576	40-10.1-607.5 (2).16
1577	1577	(b) For prearranged rides requested and accepted during state17
1578	1578	fiscal year 2022-23, the enterprise shall impose the air pollution18
1579	1579	mitigation per ride fee in a maximum amount of:19
1580	1580	(I) Eleven and one-quarter cents for each prearranged ride that is20
1581	1581	a car share ride or for which the driver transports the rider in a zero21
1582	1582	emissions motor vehicle; and22
1583	1583	(II) Twenty-two and one-half cents for every other prearranged23
1584	1584	ride.24
1585	1585	(c) (I) Except as otherwise provided in subsection (7)(c)(II) of this25
1586	1586	section, for prearranged rides requested and accepted during state fiscal26
1587	1587	year 2023-24 or during any subsequent state fiscal year, the enterprise27
1588	1588	SB25-117
1589	1589	-56- shall impose the air pollution mitigation per ride fee in a maximum1
1590	1590	amount that is the applicable maximum amount for the prior state fiscal2
1591	1591	year adjusted for inflation. The enterprise shall notify the department of3
1592	1592	revenue of the amount of the air pollution mitigation per ride fee to be4
1593	1593	collected for rides requested and accepted during each state fiscal year no5
1594	1594	later than March 15 of the calendar year in which the state fiscal year6
1595	1595	begins, and the department of revenue shall publish the amount no later7
1596	1596	than April 15 of the calendar year in which the state fiscal year begins.8
1597	1597	(II) The enterprise is authorized to adjust the amount of the air9
1598	1598	pollution mitigation per ride fee for prearranged rides requested and10
1599	1599	accepted during a state fiscal year only if the rate of inflation is positive11
1600	1600	and cumulative inflation from the time of the last adjustment in the12
1601	1601	amount of the fee, when applied to the sum of the current air pollution13
1602	1602	mitigation per ride fee and the current clean fleet per ride fee imposed as14
1603	1603	required by section 25-7.5-103 (7) and rounded to the nearest whole cent,15
1604	1604	will result in an increase of at least one whole cent in the total amount of16
1605	1605	the air pollution mitigation per ride fee and the clean fleet per ride fee17
1606	1606	paid by a person who requests and accepts a prearranged ride. The18
1607	1607	amount of cumulative inflation to be applied to the sum of the current air19
1608	1608	pollution mitigation per ride fee and the current clean fleet per ride fee20
1609	1609	and rounded to the nearest whole cent is the lesser of actual cumulative21
1610	1610	inflation or five percent.22
1611	1611	(d) As required by section 40-10.1-607.5 (3)(a), the department of23
1612	1612	revenue shall transmit all net air pollution mitigation per ride fee revenue24
1613	1613	collected to the state treasurer, who shall credit the revenue to the fund.25
1614	1614	(9) (a) In furtherance of its business purpose, and subject to the26
1615	1615	requirements set forth in this subsection (9), the enterprise is authorized27
1616	1616	SB25-117
1617	1617	-57- to provide grants to eligible entities for eligible projects. The enterprise1
1618	1618	shall actively seek input from communities, including but not limited to2
1619	1619	disproportionately impacted communities, and local governments to3
1620	1620	mitigate the environmental and health impacts of highway projects,4
1621	1621	reduce traffic congestion, and improve neighborhood connectivity for5
1622	1622	communities adjacent to highways. The enterprise shall include6
1623	1623	mitigation strategies that take into account the input as well as issues and7
1624	1624	impacts of particular importance to the state such as reduction of8
1625	1625	greenhouse gas emissions and fine particulate matter.9
1626	1626	(b) I
1627	1627	N ADDITION TO THE GRANTS PROVIDED TO ELIGIBLE ENTITIES10
1628	1628	FOR ELIGIBLE PROJECTS, NO LATER THAN JANUARY 1, 2026, THE11
1629	1629	ENTERPRISE SHALL ESTABLISH A REFORMULATED GASOLINE COST12
1630	1630	STABILIZATION PROGRAM TO OFFER REFORMULATED GASOLINE COST13
1631	1631	STABILIZATION REBATES TO INDIVIDUALS WHO OWN MOTOR VEHICLES14
1632	1632	THAT ARE REGISTERED IN COUNTIES IN WHICH THE FEDERAL GOVERNMENT15
1633	1633	REQUIRES ALL GASOLINE SOLD TO BE REFORMULATED GASOLINE . FOR16
1634	1634	EACH STATE FISCAL YEAR, THE ENTERPRISE SHALL DEDICATE AT LEAST17
1635	1635	TWENTY PERCENT OF ITS ANNUAL FEE REVENUE TO THE COST18
1636	1636	STABILIZATION PROGRAM; EXCEPT THAT THE ENTERPRISE SHALL DEDICATE19
1637	1637	TEN PERCENT OF ITS ANNUAL FEE REVENUE FOR THE 2025-26 STATE FISCAL20
1638	1638	YEAR TO THE PROGRAM. IN ESTABLISHING THE PROGRAM, THE ENTERPRISE21
1639	1639	SHALL BASE THE PER-GALLON AMOUNT OF EACH COST STABILIZATION22
1640	1640	REBATE ON THE AMOUNT BY WHICH THE RETAIL PRICE OF A GALLON OF23
1641	1641	REFORMULATED GASOLINE EXCEEDS THE PRICE OF A GALLON OF GASOLINE24
1642	1642	THAT IS NOT REFORMULATED AND THE AMOUNT OF MONEY AVAILABLE FOR25
1643	1643	THE PROGRAM.26
1644	1644	SECTION 24. Effective date. This act takes effect July 1, 2025.27
1645	1645	SB25-117
1646	1646	-58- SECTION 25. Safety clause. The general assembly finds,1
1647	1647	determines, and declares that this act is necessary for the immediate2
1648	1648	preservation of the public peace, health, or safety or for appropriations for3
1649	1649	the support and maintenance of the departments of the state and state4
1650	1650	institutions.5
1651	1651	SB25-117
1652	1652	-59-