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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0279.01 Jacob Bennington x2371 HOUSE BILL 26-1059
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING THE CASH FUNDS CREATED IN CONNECTION WITH MONEY101
RETAINED BY THE DEPARTMENT OF REVENUE TO MITIGATE THE102
ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT IN103
COLLECTING CERTAIN CHARGES.104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill w ill be av ailable at
http://leg.colorado.gov.)
Current law allows the department of revenue (department) to
retain an amount equal to its administrative costs in collecting,
administering, and enforcing the production fees for clean transit and
HOUSE SPONSORSHIP
Hartsook and Stewart R.,
SENATE SPONSORSHIP
Frizell and Snyder,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
wildlife and land remediation, the enterprise per ride fees, and the retail
delivery fees and the enterprise retail delivery fees. Current law also
allows the department to retain 3% of the prepaid wireless trust cash fund
to mitigate administrative costs. The money retained by the department
is currently transmitted into multiple individual cost recovery cash funds
that are used to mitigate the department's administrative costs of
collecting those fees and charges. These cash funds include the oil and
gas production fees collection fund, the enterprise per ride fees fund, and
the retail delivery fees fund (cost recovery funds).
The bill repeals each of these cost recovery funds and directs the
state treasurer to transmit the money retained by the department to
mitigate the department's administrative costs for all the programs into a
single cost recovery cash fund, which is created in the bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 24-35-123 as2
follows:3
24-35-123. Cost recovery cash fund - creation - definitions. 4
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE5
REQUIRES:6
(a) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.7
(b) "C OST RECOVERY CASH FUND " OR "FUND" MEANS THE COST8
RECOVERY CASH FUND CREATED IN SUBSECTION (2) OF THIS SECTION. 9
(2) (a) THE COST RECOVERY CASH FUND IS CREATED IN THE STATE10
TREASURY. THE FUND CONSISTS OF MONEY RETAINED BY THE11
DEPARTMENT AND CREDITED TO THE F UND BY THE STATE TREASURER IN12
CONNECTION WITH THE FOLLOWING:13
(I) THE COST OF COLLECTING , ADMINISTERING, AND ENFORCING14
THE PREPAID WIRELESS 911 CHARGE PURSUANT TO SECTION 29-11-102.515
(3)(e)(II);16
(II) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING17
THE PRODUCTION FEES FOR CLEAN TRANSIT AND THE PRODUCTION FEES18
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FOR WILDLIFE AND LAND REMEDIATION PURSUANT TO SECTION 33-61-1041
(1);2
(III) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING3
THE ENTERPRISE PER RIDE FEES PURSUANT TO SECTION 40-10.1-607.5 (4);4
AND5
(IV) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING6
THE RETAIL DELIVERY FEE AND THE ENTERPRISE RETAIL DELIVERY FEES7
PURSUANT TO SECTION 43-4-218 (4)(b).8
(b) A LL MONEY IN THE COST RECOVERY CASH FUND IS9
CONTINUOUSLY APPROPRIATED TO THE DEPARTMENT TO DEFRAY THE10
COSTS INCURRED BY THE DEPARTMENT IN COLLECTING, ENFORCING, AND11
ADMINISTERING THE FOLLOWING CHARGES AND FEES: 12
(I) THE PREPAID WIRELESS 911 CHARGE COLLECTED PURSUANT TO13
PART 1 OF ARTICLE 11 OF TITLE 29;14
(II) T HE PRODUCTION FEES FOR CLEAN TRANSIT AND THE15
PRODUCTION FEES FOR WILDLIFE AND LAND REMEDIATION COLLECTED16
PURSUANT TO ARTICLE 61 OF TITLE 33;17
(III) T HE ENTERPRISE PER RIDE FEES COLLECTED PURSUANT TO18
SECTION 40-10.1-607.5; AND19
(IV) T HE RETAIL DELIVERY FEES AND THE ENTERPRISE RETAIL20
DELIVERY FEES COLLECTED PURSUANT TO SECTION 43-4-218.21
(3) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND22
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE23
COST RECOVERY CASH FUND TO THE FUND.24
(4) T HE FUND IS EXEMPT FROM THE LIMITATIONS SET FORTH IN25
SECTION 24-75-402.26
SECTION 2. In Colorado Revised Statutes, 24-75-402, amend27
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(5)(mmm) and (5)(nnn); and add (5)(ooo) as follows:1
24-75-402. Cash funds - limit on uncommitted reserves -2
reduction in the amount of fees - exclusions - definitions.3
(5) Notwithstanding any provision of this section to the contrary,4
the following cash funds are excluded from the limitations specified in5
this section:6
(mmm) The reentry services for justice-involved individuals7
reinvestment cash fund created in section 25.5-4-505.7; and8
(nnn) The health-related social needs reinvestment cash fund9
created in section 25.5-5-340; AND10
(ooo) T HE COST RECOVERY CASH FUND CREATED IN SECTION11
24-35-123 (2).12
SECTION 3. In Colorado Revised Statutes, 29-11-102.5, amend13
(3)(e)(II) as follows:14
29-11-102.5. Imposition of charge on prepaid wireless -15
prepaid wireless trust cash fund - rules - transfer - applicability -16
definitions - repeal.17
(3) (e) (II) The department may expend WHEN COLLECTING THE18
PREPAID WIRELESS 911 CHARGE, THE EXECUTIVE DIRECTOR MAY RETAIN19
an amount, not to exceed three percent of the collected charges in the20
prepaid wireless trust cash fund, necessary to reimburse the department21
for its direct costs of administering the collection and remittance of22
prepaid wireless 911 charges AND SHALL TRANSMIT THE AMOUNT23
RETAINED TO THE STATE TREASURER, WHO SHALL CREDIT THE AMOUNT TO24
THE COST RECOVERY CASH FUND CREATED IN SECTION 24-35-123 (2).25
SECTION 4. In Colorado Revised Statutes, 33-61-103, amend26
(1)(d) as follows:27
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33-61-103. Fee for oil and gas production - remediation of1
harm to wildlife and land - cash fund.2
(1) (d) The executive director shall transmit any fees collected3
pursuant to subsection (1)(c) of this section to the state treasurer, who4
shall credit the fees, minus the costs to the department of revenue for5
administering the fees pursuant to section 33-61-104, which costs shall6
be credited to the oil and gas production fees collection fund created in7
section 33-61-104 (1), to the CASH fund SPECIFIED IN SECTION 33-61-1048
(1).9
SECTION 5. In Colorado Revised Statutes, 33-61-104, amend10
(1) as follows:11
33-61-104. Collection and administration of production fees12
- rules - transfer - repeal.13
(1) When collecting the production fees for clean transit and the14
production fees for wildlife and land remediation, the executive director15
shall retain an amount that does not exceed the total cost of collecting,16
administering, and enforcing the production fees for clean transit and the17
production fees for wildlife and land remediation and shall transmit the18
amount retained to the state treasurer, who shall credit the AMOUNT AS19
FOLLOWS: production fees for clean transit and the production fees for20
wildlife and land remediation21
(a) (I) PRIOR TO JULY 1, 2027, to the oil and gas production fees22
collection fund, which is created in the state treasury. All money in the oil23
and gas production fees collection fund is continuously appropriated to24
the department of revenue to defray the costs incurred by the department25
of revenue in collecting, enforcing, and administering the production fees26
for wildlife and land remediation and the production fees for clean transit. 27
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(II) THIS SUBSECTION (1)(a) IS REPEALED, EFFECTIVE JULY 1, 2027.1
THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND2
UNENCUMBERED MONEY REMAINING IN THE OIL AND GAS PRODUCTION3
FEES COLLECTION FUND ON JUNE 30, 2027, TO THE COST RECOVERY CASH4
FUND CREATED IN SECTION 24-35-123 (2).5
(b) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND6
CREATED IN SECTION 24-35-123 (2).7
SECTION 6. In Colorado Revised Statutes, 40-10.1-607.5,8
amend (4) as follows:9
40-10.1-607.5. Fees - enterprise per ride fees - collection -10
distribution of fee proceeds - rules - transfer - definitions - repeal.11
(4) When collecting the enterprise per ride fees, the department of12
revenue shall retain an amount that does not exceed the total cost of13
collecting, administering, and enforcing the enterprise per ride fees and14
shall transmit the amount retained to the state treasurer, who shall credit15
it THE AMOUNT AS FOLLOWS:16
(a) (I) PRIOR TO JULY 1, 2027, to the enterprise per ride fees fund,17
which is hereby created in the state treasury. All money in the enterprise18
per ride fees fund is continuously appropriated to the department of19
revenue to defray the costs incurred by the department in collecting,20
enforcing, and administering the enterprise per ride fees.21
(II) THIS SUBSECTION (4)(a) IS REPEALED, EFFECTIVE JULY 1, 2027.22
THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND23
UNENCUMBERED MONEY REMAINING IN THE ENTERPRISE PER RIDE FEES24
FUND ON JUNE 30, 2027, TO THE COST RECOVERY CASH FUND CREATED IN25
SECTION 24-35-123 (2).26
(b) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND27
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CREATED IN SECTION 24-35-123 (2).1
SECTION 7. In Colorado Revised Statutes, 43-4-218, amend2
(4)(b) as follows:3
43-4-218. Ad ditional funding - retail delivery fee - cost4
recovery cash fund - simultaneous collection of enterprise fees - rules5
- legislative declaration - definitions - repeal.6
(4) (b) When collecting the retail delivery fee and, in accordance7
with subsection (4)(a) of this section, the enterprise retail delivery fees,8
the department of revenue shall retain an amount that does not exceed the9
total cost of collecting, administering, and enforcing the retail delivery fee10
and the enterprise retail delivery fees and shall transmit the amount11
retained to the state treasurer, who shall credit it THE AMOUNT AS12
FOLLOWS:13
(I) (A) P RIOR TO JULY 1, 2027, to the retail delivery fees fund,14
which is hereby created in the state treasury. All money in the retail15
delivery fees fund is continuously appropriated to the department of16
revenue to defray the costs incurred by the department in collecting,17
enforcing, and administering the retail delivery fee and the enterprise18
retail delivery fees.19
(B) THIS SUBSECTION (4)(b)(I) IS REPEALED , EFFECTIVE JULY 1,20
2027. THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND21
UNENCUMBERED MONEY REMAINING IN THE RETAIL DELIVERY FEES FUND22
ON JUNE 30, 2027, TO THE COST RECOVERY CASH FUND CREATED IN23
SECTION 24-35-123 (2).24
(II) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND25
CREATED IN SECTION 24-35-123 (2).26
SECTION 8. Act subject to petition - effective date. This act27
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takes effect at 12:01 a.m. on the day following the expiration of the1
ninety-day period after final adjournment of the general assembly (August2
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a3
referendum petition is filed pursuant to section 1 (3) of article V of the4
state constitution against this act or an item, section, or part of this act5
within such period, then the act, item, section, or part will not take effect6
unless approved by the people at the general election to be held in7
November 2026 and, in such case, will take effect on the date of the8
official declaration of the vote thereon by the governor.9
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