Transit and Housing Investment Zones

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0227.01 Pierce Lively x2059 HOUSE BILL 26-1065
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING TRANSIT AND HOUSING INVESTMENT ZONES.101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Section 2 of the bill creates the "Transit Investment Area Act"
and:
! Creates a mechanism for a local government and transit
agency, subject to state approval, to undertake a transit
investment project (project), to designate a transit
investment area (area) in which the project will be built,
and to create a transit investment authority (authority) or to
designate other financing entities with the power to receive
HOUSE SPONSORSHIP
McCluskie and Woodrow, Boesenecker, Camacho, Jackson, Lindsay, Paschal, Stewart
R., Velasco, Zokaie
SENATE SPONSORSHIP
Roberts and Exum, Hinrichsen, Jodeh, Kipp
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.
and use the increment of revenue derived from the state
sales tax collected in the area that is equal to the amount of
state sales tax revenue collected in an area above a
designated base amount plus 20% of that same revenue
(state sales tax increment revenue) to be used to finance
eligible improvements related to the project;
! Allows a local government to apply to the office of
economic development and the Colorado economic
development commission (commission) to undertake a
project, and, in connection with the project, to form an
authority or to designate a county revitalization authority,
metropolitan district, or urban renewal authority as the
approved financing entity;
! Specifies the information that a local government is
required to include in the application for a project and the
criteria that the project is required to satisfy to be approved;
! Requires the director of the office of economic
development (director) to review each application for a
project and to make an initial determination regarding
whether the application meets the specified criteria;
! Requires the director to forward each application to the
commission with a recommendation regarding whether the
project should be approved;
! Directs the commission to review each application and to
approve or reject the project and, as part of the approval of
a project, allows the commission to authorize the collection
and use of the state sales tax increment revenue for a
designated number of years not to exceed 30 years;
! Allows the commission to approve no more than 3 transit
investment projects in any calendar year and no more than
6 in total;
! Allows the commission to dedicate no more than $75
million in a fiscal year to the transit investment projects it
approves;
! If requested by the local government, allows the
commission to authorize the creation of an authority to
receive and spend state sales tax increment revenue;
! Specifies that an authority is governed by a board
consisting of a certain number of members appointed by
the commission and a certain number of members
appointed by the local government;
! Specifies the powers of the authority and the manner in
which the state sales tax increment revenue is divided and
used;
! Requires the financing entity for a project to submit a
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report containing specified information to the commission;
and
! Authorizes a county revitalization authority, an urban
renewal authority, or a metropolitan district to receive and
disburse the state sales tax increment revenue generated
within an area and to act as the financing entity for the
area.
Section 9 creates the Colorado affordable housing in transit
investment zones tax credit (tax credit). The tax credit is administered in
the same manner as the Colorado affordable housing in transit-oriented
communities tax credit; except that the tax credit is awarded in
connection with qualified low- and middle-income housing projects in
transit and housing zones. The bill allows $50 million of credits to be
awarded each calendar year beginning in the 2027 calendar year through
the 2033 calendar year.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration.2
(1) The general assembly finds and declares that:3
(a) Colorado has invested significantly in public transit systems4
in the last several decades, f unding over six billion dollars across5
eighty-five miles of new rail lines along the front range;6
(b) Investments in public transit systems across Colorado will7
continue in the coming years with new bus rapid transit lines, rail8
systems, and upgrades to local, intercity, and regional bus services;9
(c) Despite r ecent investments in public transit systems across10
Colorado, transit ridership in Colorado lags behind peer states around the11
country, due in part to a lack of housing near these transit lines and12
infrastructure barriers that can make it challenging for people to access13
transit stations;14
(d) Encouraging more housing near transit is important for15
increasing transit ridership and improving the cost-effectiveness of transit16
services;17
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(e) Researchers have found that higher residential densities1
citywide increase cost-effectiveness for light rail and bus rapid transit2
services, as described in the article "Cost of a Ride: The Effects of3
Densities on Fixed-Guideway Transit Ridership and Costs" by Erick4
Guerra and Robert Cervero;5
(f) Most light and commuter rail stations and frequent bus6
corridors in Colorado have lower housing unit density than is necessary7
to support frequent transit;8
(g) Based on 2020 census block housing unit data, over ninety9
percent of rail stations and eighty-four percent of bus rapid transit and10
frequent bus corridors along the front range have fewer than fifteen11
housing units per acre on average within walking distance, while12
researchers have generally found that a minimum of fifteen housing units13
per acre of built density is needed to support frequent transit;14
(h) Transit-oriented development, including connecting housing15
opportunities and services with safe multimodal infrastructure and public16
transit, improves the accessibility of communities for people with17
disabilities and limited mobility;18
(i) People with disabilities are more likely to live in households19
with zero cars, are less likely to drive, and are more likely to rely on20
public transit or paratransit, according to the 2017 "National Household21
Travel Survey";22
(j) The design of the built environment surrounding transit23
stations, including the presence of sidewalks, crosswalks, bike lanes, and24
other multimodal infrastructure, infl uences the accessibility to transit25
stations and overall transit ridership, as identified by studies such as26
"Travel and the Built Environment: A Meta-Analysis" by Reid Ewing and27
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Robert Cervero, and "Transit commuting, the network accessibility effect,1
and the built environment in station areas across the United States" in the2
journal Research in Transportation Economics;3
(k) Improvements to the design of the built environment4
surrounding transit stations support placemaking, which is the process of5
intentionally planning, designing, and building infrastructure and housing6
that capitalize on a community's amenities and culture;7
(l) Placemaking can enhance the desirability of a given8
community and the well-being of those who live in, work in, or visit a9
given community, and can create a strong demand for housing in a10
community;11
(m) The 2023 Community and Transportation Preferences Survey12
published by the National Association of Realtors found that when13
deciding where to live, seventy-nine percent of people said being within14
an easy walk of other places and things, such as shops and parks, is15
very/somewhat important, eighty-five percent said sidewalks and places16
to walk are very/somewhat important, and sixty-five percent said having17
public transport nearby is very/somewhat important; and18
(n) The 1998 Assessment of the Economic Impacts of Rural19
Public Transportation published by the Transit Cooperative Research20
Program, which assessed the economic impacts of rural public21
transportation, f ound that there was an elev en percent difference in22
average net earnings growth between rural counties that had public transit23
systems and those rural counties that did not.24
(2) Therefore, by enacting this House Bill , the general25
assembly intends to establish new financing tools utilizing tax increment26
financing to encourage local government efforts to improve infrastructure27
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near transit and rail stations that will promote placemaking and spur1
housing development supported by tax credits, which would not occur2
without the enactment of this House Bill .3
SECTION 2. In Colorado Revised Statutes, add part 4 to article4
46 of title 24 as follows:5
PART 46
TRANSIT INVESTMENT AREA ACT7
24-46-401. Short title.8
THE SHORT TITLE OF THIS PART 4 IS THE "TRANSIT INVESTMENT9
AREA ACT".10
24-46-402. Definitions.11
AS USED IN THIS PART 4, UNLESS THE CONTEXT OTHERWISE12
REQUIRES:13
(1) "AERIAL TRANSIT FACILITY" MEANS ONE OR MORE PHYSICAL14
STRUCTURES THAT USE AERIAL CABLES TO MOVE PASSENGERS AND THAT15
LINK DIRECTLY TO ANOTHER FORM OF MASS TRANSIT, SUCH AS PASSENGER16
RAIL, LIGHT RAIL, OTHER TYPES OF TRAINS, TROLLEYS, OR BUSES.17
(2) "B ASE YEAR REVENUE " MEANS AN AMOUNT EQUAL TO THE18
STATE SALES TAX REVENUE COLLECTED ON SALES MADE AT PHYSICAL19
SITES WITHIN A PROPOSED TRANSIT INVESTMENT AREA DURING THE20
TWELVE-MONTH PERIOD IMMEDIATELY PRIOR TO THE MONTH IN WHICH A21
TRANSIT INVESTMENT PROJECT IS AUTHORIZED , AS DETERMINED BY THE22
DEPARTMENT.23
(3) "BASELINE GROWTH RATE" MEANS THE FORECASTED GROWTH24
IN STATE SALES TAX REVENUE COLLECTED ON SALES MADE AT PHYSICAL25
SITES WITHIN A PROPOSED TRANSIT INVESTMENT AREA ABOVE THE BASE26
YEAR REVENUE THAT WOULD BE COLLECTED ON SALES MADE AT PHYSICAL27
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SITES WITHIN A PROPOSED TRANSIT INVESTMENT AREA IF THE PROPOSED1
TRANSIT INVESTMENT PROJECT DID NOT OCCUR, AS DETERMINED BY THE2
OFFICE OF ECONOMIC DEVELOPMENT PURSUANT TO SECTION 24-46-403 (2),3
BASED ON DATA FROM THE PREVIOUS TEN -YEAR PERIOD IMMEDIATELY4
PRECEDING THE SUBMISSION OF AN APPLICATION.5
(4) "C OMMISSION" MEANS THE COLORADO ECONOMIC6
DEVELOPMENT COMMISSION CREATED IN SECTION 24-46-102.7
(5) "COUNTY REVITALIZATION AUTHORITY" HAS THE MEANING SET8
FORTH IN SECTION 30-31-103 (6).9
(6) "D EPARTMENT" MEANS THE DEPARTMENT OF REVENUE10
CREATED IN SECTION 24-35-101.11
(7) "DIRECTOR" MEANS THE DIRECTOR OF THE COLORADO OFFICE12
OF ECONOMIC DEVELOPMENT CREATED IN SECTION 24-48.5-101.13
(8) "ELIGIBLE COSTS" MEANS THE COSTS OF:14
(a) D ESIGNING, CONSTRUCTING, FINANCING, AND MAINTAINING15
ELIGIBLE IMPROVEMENTS DESIGNATED BY THE COMMISSION AS PART OF AN16
APPROVED TRANSIT INVESTMENT PROJECT . THESE COSTS INCLUDE THE17
COSTS OF:18
(I) ENGINEERING, INCLUDING CONSTRUCTION ENGINEERING;19
(II) SURVEYING, INCLUDING CONSTRUCTION SURVEYING;20
(III) CONSTRUCTION LABOR AND MATERIALS;21
(IV) DESIGN, INCLUDING BONDING, INSURANCE, AND PERMITTING22
FEES;23
(V) PLANNING;24
(VI) LEGAL SERVICES;25
(VII) ACCOUNTING;26
(VIII) OVERHEAD OR ADMINISTRATIVE STAFFING;27
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(IX) FINANCING;1
(X) BOND ISSUANCE OR REISSUANCE AND UNDERWRITING;2
(XI) INTEREST PAYMENTS;3
(XII) LOAN ORIGINATION FEES;4
(XIII) OPERATIONS; AND5
(XIV) SIMILAR NECESSARY AND CONVENIENT COSTS INCURRED BY6
THE FINANCING ENTITY IN EXERCISING ITS POWERS PURSUANT TO THIS7
PART 4.8
(b) F UNDS ADVANCED BY PRIVATE DEVELOPERS WITHIN THE9
TRANSIT INVESTMENT PROJECT TO , OR ON BEHALF OF , THE FINANCING10
ENTITY FOR ELIGIBLE IMPROVEMENTS, WHETHER A PRIVATE DEVELOPER11
ADVANCES THOSE FUNDS PURSUANT TO LOANS OR CONTRACTUAL FUNDING12
AND REIMBURSEMENT AGREEMENTS;13
(c) R EASONABLE INTEREST ON THE FUNDS ADVANCED BY A14
PRIVATE DEVELOPER PURSUANT TO SUBSECTION (8)(b) OF THIS SECTION;15
(d) A FINANCING ENTITY 'S COSTS FOR PURCHASING ELIGIBLE16
IMPROVEMENTS CONSTRUCTED AND OWNED BY THIRD PARTIES EITHER17
BEFORE OR AFTER DESIGNATION OF THE TRANSIT INVESTMENT PROJECT ;18
AND19
(e) C OSTS AND EXPENSES INCURRED BY A FINANCING ENTITY20
PURSUANT TO SECTION 24-35-123 AND IN COMPLYING WITH ITS ANNUAL21
REPORT AND AUDIT OBLIGATIONS UNDER THIS PART 4.22
(9) "E LIGIBLE IMPROVEMENTS " MEANS THE SPECIFIC23
IMPROVEMENTS AUTHORIZED BY THE COMMISSION AS PART OF AN24
APPROVED TRANSIT INVESTMENT PROJECT, INCLUDING:25
(a) ROADS;26
(b) STREETS;27
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(c) STATE HIGHWAYS;1
(d) RIGHTS-OF-WAY;2
(e) LIGHTING;3
(f) DIRECTION AND LOCATION SIGNAGE AND SIMILAR SIGNAGE;4
(g) LAND ACQUISITION;5
(h) S URVEYING, ENGINEERING , SOILS TESTING , SITE PLANNING ,6
GRADING, AND SIMILAR ACTIVITIES NECESSARY OR CONVENIENT FOR SITE7
PREPARATION AND DEVELOPMENT;8
(i) TRAILS AND PATHS;9
(j) PUBLIC SAFETY FACILITIES;10
(k) LANDSCAPING;11
(l) TRANSPORTATION FACILITIES;12
(m) BICYCLE AND PEDESTRIAN INFRASTRUCTURE;13
(n) SURFACE AND STRUCTURED PARKING FACILITIES; AND14
(o) A NY OTHER FACILITIES OR IMPROVEMENTS NECESSARY OR15
CONVENIENT FOR THE COMPLETION OF AN APPROVED PROJECT.16
(10) (a) "FINANCING ENTITY" MEANS THE ENTITY DESIGNATED BY17
THE COMMISSION IN CONNECTION WITH ITS APPROVAL OF A TRANSIT18
INVESTMENT PROJECT TO RECEIVE AND USE STATE SALES TAX INCREMENT19
REVENUE.20
(b) A COUNTY REVITALIZATION AUTHORITY , A METROPOLITAN21
DISTRICT, AN URBAN RENEWAL AUTHORITY, OR ANY TRANSIT INVESTMENT22
AUTHORITY TO BE FORMED PURSUANT TO THIS PART 4 MAY QUALIFY AS A23
FINANCING ENTITY.24
(11) "FINANCING TERM" MEANS THE AGGREGATE PERIOD NOT TO25
EXCEED THIRTY YEARS AUTHORIZED BY THE COMMISSION PURSUANT TO26
THIS PART 4 DURING WHICH THE FINANCING ENTITY IS AUTHORIZED TO27
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RECEIVE AND USE STATE SALES TAX INCREMENT REVENUE TO FINANCE1
ELIGIBLE COSTS.2
(12) "INFLATION OR DEFLATION" MEANS THE ANNUAL PERCENTAGE3
CHANGE IN THE UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF4
LABOR STATISTICS CONSUMER PRICE INDEX, OR A SUCCESSOR INDEX, FOR5
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN6
CONSUMERS.7
(13) "LOCAL GOVERNMENT" MEANS A CITY , COUNTY, CITY AND8
COUNTY, TOWN, OR A GROUP OF CONTIGUOUS CITIES , COUNTIES , CITIES9
AND COUNTIES, OR TOWNS.10
(14) "O FFICE OF ECONOMIC DEVELOPMENT " MEANS THE11
COLORADO OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION12
24-48.5-101.13
(15) "PASSENGER RAIL STATION" HAS THE MEANING SET FORTH IN14
SECTION 32-22-102 (8).15
(16) "STATE SALES TAX INCREMENT REVENUE" MEANS AN ANNUAL16
AMOUNT EQUAL TO THE TOTAL OF:17
(a) T HE ANNUAL REVENUE DERIVED FROM STATE SALES TAXES ,18
INCLUDING ANY REVENUE ATTRIBUTABLE TO THE BASELINE GROWTH19
RATE, COLLECTED ON SALES MADE AT PHYSICAL SITES WITHIN A20
DESIGNATED TRANSIT INVESTMENT AREA IN EXCESS OF THE AMOUNT OF21
BASE YEAR REVENUE ADJUSTED TO ACCOUNT FOR THE BASELINE GROWTH22
RATE; AND23
(b) T WENTY PERCENT OF THE BASE YEAR REVENUE , WHICH24
TWENTY PERCENT APPROXIMATES ONLINE SALES THAT ARE NOT INCLUDED25
AS SALES MADE AT PHYSICAL SITES WITHIN A DESIGNATED TRANSIT26
INVESTMENT AREA.27
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(17) "TRANSIT AGENCY" MEANS A LOCAL OR REGIONAL TRANSIT1
DISTRICT, OR A REGIONAL TRANSPORTATION AUTHORITY THAT PROVIDES2
PUBLIC TRANSIT.3
(18) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA4
DESIGNATED BY THE OFFICE OF ECONOMIC DEVELOPMENT IN THE TRANSIT5
AND HOUSING INVESTMENT ZONE MAP PURSUANT TO SECTION 24-48.5-136.6
(19) "TRANSIT INVESTMENT AREA" MEANS A GEOGRAPHIC AREA7
THAT IS WITHIN A TRANSIT AND HOUSING INVESTMENT ZONE AND THAT8
THE COMMISSION APPROVES AS PART OF A TRANSIT INVESTMENT PROJECT9
PURSUANT TO SECTION 24-46-404 (3)(d)(I)(B). A TRANSIT INVESTMENT10
AREA SHALL NOT EXTEND INTO THE TERRITORIAL BOUNDARIES OF ANY11
LOCAL GOVERNMENT UNLESS A LOCAL GOVERNMENT REQUESTS THE12
DESIGNATION OF THE TRANSIT INVESTMENT AREA. A TRANSIT INVESTMENT13
AREA MAY BE LIMITED TO PORTIONS OF A LOCAL GOVERNMENT AND MAY14
INCLUDE NONCONTINGUOUS TRACTS OR PARCELS OF PROPERTY.15
(20) "TRANSIT INVESTMENT AUTHORITY" OR "AUTHORITY" MEANS16
A CORPORATE BODY ORGANIZED PURSUANT TO THIS PART 4 FOR THE17
PURPOSES, WITH THE POWERS , AND SUBJECT TO THE RESTRICTIONS SET18
FORTH IN THIS PART 4 AND THE FORMATION OF WHICH HAS BEEN19
APPROVED BY THE COMMISSION PURSUANT TO THIS PART 4.20
(21) "T RANSIT INVESTMENT PROJECT " OR "PROJECT" MEANS A21
DEVELOPMENT PROJECT THAT IS PLANNED TO INCLUDE A TRANSPORTATION22
FACILITY OR SIGNIFICANT IMPROVEMENTS TO A TRANSPORTATION FACILITY23
TOGETHER WITH ANCILLARY USES , STRUCTURES , AND IMPROVEMENTS ,24
AND THAT THE COMMISSION APPROVES PURSUANT TO SECTION 24-46-40425
(3).26
(22) (a) "T RANSIT STATION " MEANS A PHYSICAL LOCATION27
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DESIGNED TO INTEGRATE AND FACILITATE THE CONNECTION BETWEEN1
MULTIPLE MODES OF TRANSPORTATION, INCLUDING:2
(I) PUBLIC TRANSIT, SUCH AS BUSES;3
(II) LIGHT RAIL, AERIAL TRANSIT, AND COMMUTER RAIL;4
(III) ACTIVE TRANSPORTATION, SUCH AS BICYCLE AND PEDESTRIAN5
INFRASTRUCTURE;6
(IV) S HARED MOBILITY SERVICES INCLUDING CAR SHARE , BIKE7
SHARE, AND SCOOTER SHARE;8
(V) RIDE-HAILING AND DEMAND-RESPONSIVE SERVICES; AND9
(VI) PRIVATE VEHICLES.10
(b) A TRANSIT STATION MAY INCLUDE RELATED INFRASTRUCTURE11
THAT SUPPORTS SEAMLESS AND EFFICIENT MULTIMODAL TRAVEL, SUCH AS12
PARK-AND-RIDE FACILITIES , ELECTRIC VEHICLE CHARGING STATIONS ,13
BICYCLE STORAGE, WAYFINDING SYSTEMS, AND PASSENGER AMENITIES.14
(23) "TRANSPORTATION FACILITY" MEANS A TRANSIT STATION OR15
PASSENGER RAIL STATION.16
(24) "URBAN RENEWAL AUTHORITY" HAS THE MEANING SET FORTH17
IN SECTION 31-25-103 (8.5).18
24-46-403. Transit investment project - application -19
requirements - transit investment zones cash fund.20
(1) BEGINNING JANUARY 1, 2027, A LOCAL GOVERNMENT, EITHER21
ALONE OR IN PARTNERSHIP WITH A TRANSIT AGENCY THAT HAS22
JURISDICTION WITHIN A PROPOSED TRANSIT INVESTMENT AREA , MAY23
SUBMIT AN APPLICATION TO THE OFFICE OF ECONOMIC DEVELOPMENT FOR24
THE APPROVAL OF A TRANSIT INVESTMENT PROJECT, INCLUDING THE:25
(a) DESIGNATION OF A TRANSIT INVESTMENT AREA;26
(b) C REATION OF A TRANSIT INVESTMENT AUTHORITY , AS27
HB26-1065-12-
NECESSARY; AND1
(c) DESIGNATION OF A FINANCING ENTITY TO RECEIVE, USE, AND2
DISBURSE STATE SALES TAX INCREMENT REVENUE FOR ELIGIBLE COSTS.3
(2) (a) BEFORE A LOCAL GOVERNMENT SUBMITS AN APPLICATION4
FOR A TRANSIT INVESTMENT PROJECT TO THE OFFICE OF ECONOMIC5
DEVELOPMENT PURSUANT TO SUBSECTION (1) OF THIS SECTION, THE LOCAL6
GOVERNMENT MUST SUBMIT A MAP SHOWING THE PROPOSED BOUNDARIES7
OF A PROPOSED TRANSIT INVESTMENT AREA TO THE OFFICE OF ECONOMIC8
DEVELOPMENT, ALONG WITH DATA AND A CALCULATION SHOWING THE9
PROJECTED BASELINE GROWTH RATE . THE OFFICE OF ECONOMIC10
DEVELOPMENT SHALL VERIFY WHETHER THE PROPOSED TRANSIT11
INVESTMENT AREA IS WITHIN A TRANSIT AND HOUSING INVESTMENT ZONE12
THAT IS ESTABLISHED IN RELATION TO A TRANSIT FACILITY THAT IS THE13
SUBJECT OF THE TRANSIT INVESTMENT PROJECT IN THE LOCAL14
GOVERNMENT'S APPLICATION SUBMITTED PURSUANT TO SUBSECTION (1)15
OF THIS SECTION , AND THE OFFICE OF ECONOMIC DEVELOPMENT SHALL16
ENTER INTO A CONTRACT WITH A THIRD PARTY TO DETERMINE THE17
BASELINE GROWTH RATE FOR THE PROPOSED TRANSIT INVESTMENT AREA.18
IN DETERMINING THE BASELINE GROWTH RATE, THE CONTRACTED THIRD19
PARTY SHALL CONSIDER THE GROWTH RATE FOR THE PROPOSED TRANSIT20
INVESTMENT AREA DURING AT LEAST THE PREVIOUS TEN CALENDAR21
YEARS. THE THIRD-PARTY CONTRACTOR SHALL DELIVER ITS FINDINGS TO22
THE OFFICE OF STATE PLANNING AND BUDGETING FOR REVIEW.23
(b) T HE OFFICE OF ECONOMIC DEVELOPMENT MAY CHARGE A24
LOCAL GOVERNMENT A SUBMISSION FEE OF UP TO FOUR THOUSAND FIVE25
HUNDRED DOLLARS PER SUBMISSION, AND THE STATE TREASURER SHALL26
CREDIT THAT FEE TO THE TRANSIT INVESTMENT ZONES CASH FUND27
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CREATED IN SUBSECTION (6) OF THIS SECTION, FOR THE COSTS INCURRED1
IN CONTRACTING WITH A THIRD PARTY FOR THE DETERMINATION OF THE2
BASELINE GROWTH RATE FOR THE PROPOSED TRANSIT INVESTMENT AREA3
PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION . THE OFFICE OF4
ECONOMIC DEVELOPMENT SHALL ANNUALLY ADJUST FOR INFLATION OR5
DEFLATION THE FEE REQUIRED PURSUANT TO THIS SUBSECTION (2)(b) AND6
SHALL ROUND THE ADJUSTED AMOUNT UPWARD OR DOWNWARD TO THE7
NEAREST HUNDRED DOLLARS.8
(c) T HE LOCAL GOVERNMENT AND THE THIRD -PARTY ANALYST9
RETAINED PURSUANT TO SUBSECTION (3)(j) OF THIS SECTION SHALL USE10
THE BASELINE GROWTH RATE DETERMINED BY A CONTRACTED THIRD11
PARTY PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION IN THEIR12
ASSUMPTIONS AND ECONOMIC ANALYSES FOR THE PURPOSE OF13
CALCULATING THE TOTAL CUMULATIVE DOLLAR AMOUNT AVAILABLE TO14
BE PLEDGED TO THE PROPOSED TRANSIT INVESTMENT PROJECT AS15
REQUIRED BY SUBSECTIONS (3)(i) AND (3)(j) OF THIS SECTION.16
(3) A LOCAL GOVERNMENT THAT SUBMITS AN APPLICATION17
PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST SUBMIT THE18
APPLICATION TO THE OFFICE OF ECONOMIC DEVELOPMENT IN A FORM AND19
MANNER TO BE DETERMINED BY THE COMMISSION. AN APPLICATION MUST20
INCLUDE AT LEAST:21
(a) M APS OF THE PROPOSED PROJECT AREA SHOWING BOTH22
CURRENT CONDITIONS AND A CONCEPTUAL RENDERING OF THE PROPOSED23
TRANSIT INVESTMENT PROJECT IN ITS ANTICIPATED BUILT CONDITION;24
(b) A MAP SHOWING THE PROPOSED BOUNDARIES OF THE PROPOSED25
TRANSIT INVESTMENT AREA;26
(c) A NARRATIVE DESCRIPTION OF THE PROPOSED TRANSIT27
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INVESTMENT PROJECT, INCLUDING:1
(I) THE LOCATION AND ESTIMATED OVERALL COST;2
(II) ESTIMATED ELIGIBLE COSTS;3
(III) T HE ANTICIPATED SCOPE AND PHASING OF ELIGIBLE4
IMPROVEMENTS;5
(IV) THE INFRASTRUCTURE EXISTING OR NEEDED IN CONNECTION6
WITH THE PROPOSED TRANSIT INVESTMENT PROJECT; AND7
(V) AN OPERATIONS, MAINTENANCE, AND CAPITAL RESERVE PLAN8
FOR THE PROPOSED TRANSIT INVESTMENT PROJECT;9
(d) A DISCUSSION OF THE APPLICATION CRITERIA ESTABLISHED IN10
SUBSECTION (4) OF THIS SECTION AND HOW THE PROPOSED TRANSIT11
INVESTMENT PROJECT WILL MEET THE CRITERIA. THIS DISCUSSION SHALL12
INCLUDE AN ECONOMIC ANALYSIS DETAILING:13
(I) PROJECTED ECONOMIC DEVELOPMENT;14
(II) I MPACT OF THE PROJECT ON FUTURE STATE SALES TAX15
REVENUE IN THE TRANSIT INVESTMENT AREA DURING AND AFTER THE16
FINANCING TERM; AND17
(III) ANY OTHER INFORMATION REASONABLY REQUESTED BY THE18
COMMISSION;19
(e) (I) A DESCRIPTION OF THE PROPOSED FINANCING ENTITY; AND20
(II) A GENERAL DESCRIPTION OF THE PROPOSED FINANCING21
ENTITY'S PLAN FOR FINANCING THE ELIGIBLE COSTS AND PROVIDING THE22
PROPOSED ELIGIBLE IMPROVEMENTS;23
(f) IF APPLICABLE, A REQUEST FOR AUTHORIZATION OF A TRANSIT24
INVESTMENT AUTHORITY, WHICH REQUEST SHALL INCLUDE A DESCRIPTION25
OF THE PROPOSED TRANSIT INVESTMENT AUTHORITY'S:26
(I) GEOGRAPHIC BOUNDARIES;27
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(II) REQUESTED POWERS; AND1
(III) ANTICIPATED SOURCES OF REVENUE, IF ANY, IN ADDITION TO2
STATE SALES TAX INCREMENT REVENUE;3
(g) IF IT IS ANTICIPATED THAT THE PROPOSED FINANCING ENTITY4
WILL ENTER INTO CONTRACTUAL ARRANGEMENTS WITH ONE OR MORE5
URBAN RENEWAL AUTHORITIES, METROPOLITAN DISTRICTS, AUTHORITIES6
FORMED BY INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE7
METROPOLITAN DISTRICTS , LOCAL GOVERNMENTS , REGIONAL8
TRANSPORTATION AUTHORITIES, OR PRIVATE PARTIES WITH RESPECT TO9
THE METHOD OF FINANCING THE ELIGIBLE COSTS AND PROVIDING THE10
PROPOSED ELIGIBLE IMPROVEMENTS , A GENERAL DESCRIPTION OF THE11
CONTEMPLATED CONTRACTUAL ARRANGEMENTS;12
(h) I F IT IS ANTICIPATED THAT THE PROPOSED ELIGIBLE13
IMPROVEMENTS WILL BE CONSTRUCTED IN PHASES OR THAT FINANCING OF14
THE ELIGIBLE COSTS WILL BE ACCOMPLISHED IN PHASES, A DESCRIPTION OF15
THE CONTEMPLATED PHASES AND THE ANTICIPATED TIMING OF THE16
PHASES;17
(i) C ONCERNING THE FINANCING OF THE PROPOSED ELIGIBLE18
PUBLIC IMPROVEMENTS BY THE FINANCING ENTITY , THE FOLLOWING19
PROPOSED ITEMS:20
(I) THE FINANCING TERM;21
(II) THE TOTAL CUMULATIVE DOLLAR AMOUNT OF REVENUE THAT22
CAN BE ALLOCATED TO THE FINANCING ENTITY; AND23
(III) THE PORTION OF THE FINANCING TERM DURING WHICH THE24
PERCENTAGE OF STATE SALES TAX INCREMENT REVENUE TO BE25
ALLOCATED TO THE FINANCING ENTITY IS TO BE ALLOCATED TO THE26
FINANCING ENTITY;27
HB26-1065-16-
(j) UPON RECEIPT OF AN APPLICATION, THE OFFICE OF ECONOMIC1
DEVELOPMENT SHALL COMMISSION A REPORT BY A THIRD-PARTY ANALYST2
WHO IS AN EXPERT IN THE FIELD OF ECONOMIC OR PUBLIC FI NANCIAL3
ANALYSIS CALCULATING THE TOTAL CUMULATIVE DOLLAR AMOUNT4
AVAILABLE TO BE PLEDGED TO THE PROPOSED TRANSIT INVESTMENT5
PROJECT TO BE SET BY THE COMMISSION PURSUANT TO SECTION 24-46-4046
(3). THE REVIEWING THIRD-PARTY ANALYST MUST BE CHOSEN THROUGH7
A REQUEST FOR PROPOSALS ISSUED BY THE OFFICE OF ECONOMIC8
DEVELOPMENT TO ENSURE AN INDEPENDENT AND THOROUGH ANALYSIS ,9
AND THE THIRD -PARTY ANALYST SHALL REPORT TO THAT OFFICE . THE10
OFFICE OF ECONOMIC DEVELOPMENT SHALL CHARGE AN APPLICATION FEE11
TO A LOCAL GOVERNMENT THAT SUBMITS AN APPLICATION PURSUANT TO12
SUBSECTION (1) OF THIS SECTION , AND THE STATE TREASURER SHALL13
CREDIT THAT FEE TO THE TRANSIT INVESTMENT ZONES CASH FUND14
CREATED IN SUBSECTION (6) OF THIS SECTION, TO PAY THE COSTS FOR THE15
THIRD-PARTY ANALYST TO:16
(I) C ALCULATE THE TOTAL ANTICIPATED STATE SALES TAX17
INCREMENT REVENUE DURING THE FINANCING TERM IN THE PROPOSED18
TRANSIT INVESTMENT AREA;19
(II) CALCULATE THE TOTAL REGIONAL TRANSIT INVESTMENT AREA20
STATE SALES TAX INCREMENT REVENUE THAT EACH LOCAL GOVERNMENT21
THAT IS A PARTY TO A MULTIPARTY APPLICATION IS ELIGIBLE TO RECEIVE;22
AND23
(III) ASSESS THE APPLICATION'S SATISFACTION OF THE CRITERIA24
DESCRIBED IN SUBSECTION (4) OF THIS SECTION AND THE PROVISION OF25
ANY INFORMATION REQUIRED BY THE OFFICE OF ECONOMIC DEVELOPMENT26
OR THE COMMISSION.27
HB26-1065-17-
(k) A LOCAL GOVERNMENT THAT SUBMITS AN APPLICATION1
PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST SHARE THE DATA2
AND ASSUMPTIONS IT USED IN ITS APPLICATION WITH THE THIRD -PARTY3
ANALYST, AND THE ANALYST SHALL RELY ON THE DATA AND REASONING4
AS IT DEEMS APPROPRIATE IN THE EXERCISE OF ITS INDEPENDENT5
JUDGMENT. AN APPLICANT THAT IS DISSATISFIED WITH THE REPORT6
PRODUCED BY THE THIRD-PARTY ANALYST MAY REVISE ITS APPLICATION7
AND REQUEST THAT THE THIRD-PARTY ANALYST REVISE THE REPORT.8
(4) AN APPLICATION MUST DEMONSTRATE THAT IT SATISFIES EACH9
OF THE FOLLOWING CRITERIA:10
(a) THE PROPOSED TRANSIT INVESTMENT PROJECT IS REASONABLY11
ANTICIPATED TO RESULT IN A SUBSTANTIAL INCREASE IN TRANSIT12
UTILIZATION;13
(b) T HE BOUNDARIES OF THE PROPOSED TRANSIT INVESTMENT14
AREA ARE ONLY AS LARGE AS NECESSARY TO ACCOMPLISH THE PROPOSED15
TRANSIT INVESTMENT PROJECT GOALS;16
(c) THE PROPOSED TRANSIT INVESTMENT PROJECT OR SUBSTANTIAL17
PORTIONS OF THE PROPOSED PROJECT HAVE BEEN IDENTIFIED AS PART OF18
A LOCAL PLANNING PROCESS;19
(d) T HE COSTS IDENTIFIED PURSUANT TO SECTION 24-46-40320
(3)(c)(II) ARE ELIGIBLE COSTS;21
(e) THE STATE SALES TAX INCREMENT REVENUE THAT EXCEEDS22
THE PROJECTED COSTS OF ELIGIBLE COSTS WILL BE SPENT ON ADDITIONAL23
ELIGIBLE COSTS INCURRED IN CONNECTION WITH THE TRANSIT24
INVESTMENT PROJECT; AND25
(f) THE LOCAL GOVERNMENT THAT SUBMITTED THE APPLICATION26
FOR THE PROPOSED TRANSIT INVESTMENT PROJECT HAS PROVIDED27
HB26-1065-18-
RELIABLE ECONOMIC DATA DEMONSTRATING THAT , IN THE ABSENCE OF1
STATE SALES TAX INCREMENT REVENUE , THE PROPOSED PROJECT IS NOT2
REASONABLY ANTICIPATED TO BE DEVELOPED WITHIN THE FORESEEABLE3
FUTURE.4
(5) THE OFFICE OF ECONOMIC DEVELOPMENT SHALL PROVIDE THE5
COMMISSION WITH EACH APPLICATION RECEIVED AFTER THE DIRECTOR'S6
REVIEW PURSUANT TO SECTION 24-46-404.7
(6) (a) THE TRANSIT INVESTMENT ZONES CASH FUND IS CREATED8
IN THE STATE TREASURY . THE FUND CONSISTS OF APPLICATION FEES9
COLLECTED BY THE OFFICE OF ECONOMIC DEVELOPMENT AND CREDITED TO10
THE FUND PURSUANT TO SUBSECTION (3)(j) OF THIS SECTION, SUBMISSION11
FEES COLLECTED BY THE OFFICE OF ECONOMIC DEVELOPMENT AND12
CREDITED TO THE FUND PURSUANT TO SUBSECTION (2)(b) OF THIS13
SECTION, AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY14
APPROPRIATE OR TRANSFER TO THE FUND.15
(b) I N ACCORDANCE WITH SECTION 24-36-114 (1), THE STATE16
TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE17
DEPOSIT AND INVESTMENT OF MONEY IN THE TRANSIT INVESTMENT ZONES18
CASH FUND TO THE GENERAL FUND.19
(c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE20
OFFICE OF ECONOMIC DEVELOPMENT TO PAY:21
(I) THE COST INCURRED IN CONTRACTING WITH A THIRD PARTY TO22
DETERMINE THE BASELINE GROWTH RATE FOR THE PROPOSED TRANSIT23
INVESTMENT AREA PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION ;24
AND25
(II) T HE COSTS FOR THIRD -PARTY ANALYSTS AS DESCRIBED IN26
SUBSECTION (3)(j) OF THIS SECTION.27
HB26-1065-19-
24-46-404. Transit investment project approval - director -1
commission - review.2
(1) UPON RECEIPT OF A LOCAL GOVERNMENT'S APPLICATION FOR3
THE APPROVAL OF A TRANSIT INVESTMENT PROJECT, THE DIRECTOR OR THE4
DIRECTOR'S DESIGNEE SHALL REVIEW THE APPLICATION AND MAKE AN5
INITIAL DETERMINATION AS TO WHETHER THE APPLICATION HAS MET THE6
CRITERIA FOR A TRANSIT INVESTMENT PROJECT SPECIFIED IN SECTION7
24-46-403 (4).8
(2) A FTER REVIEWING AN APPLICATION FOR APPROVAL OF A9
TRANSIT INVESTMENT PROJECT FOR COMPLETENESS, THE DIRECTOR SHALL10
FORWARD THE APPLICATION:11
(a) T O THE THIRD -PARTY ANALYST WHO WILL REVIEW THE12
APPLICATION PURSUANT TO SECTION 24-46-403 (3)(j);13
(b) A T LEAST THIRTY DAYS PRIOR TO A PUBLIC HEARING HELD14
PURSUANT TO SUBSECTION (3) OF THIS SECTION , TO ANY LOCAL15
GOVERNMENT THAT IS ADJACENT TO THE LOCATION OF THE PROPOSED16
TRANSIT INVESTMENT AREA TO NOTIFY THE ADJACENT JURISDICTIONS OF17
THE PROPOSAL; AND18
(c) T O THE COMMISSION WITH A RECOMMENDATION THAT THE19
COMMISSION APPROVE , APPROVE WITH CONDITIONS , OR DENY THE20
APPLICATION.21
(3) (a) UPON RECEIVING AN APPLICATION FOR THE APPROVAL OF22
A TRANSIT INVESTMENT PROJECT, THE COMMISSION SHALL HOLD A PUBLIC23
HEARING, SUBJECT TO THE OPEN MEETINGS LAW UNDER PART 4 OF ARTICLE24
6 OF THIS TITLE 24, TO REVIEW AND CONSIDER THE APPLICATION . THE25
COMMISSION MAY HOLD THE HEARING VIRTUALLY.26
(b) AFTER HOLDING A HEARING PURSUANT TO SUBSECTION (3)(a)27
HB26-1065-20-
OF THIS SECTION , WHILE GIVING CONSIDERATION TO THE DIRECTOR 'S1
RECOMMENDATIONS AND THE REPORT COMPLETED BY A THIRD -PARTY2
ANALYST PURSUANT TO SECTION 24-46-403 (3)(j), THE COMMISSION SHALL3
TIMELY APPROVE, APPROVE WITH CONDITIONS, OR DENY AN APPLICATION.4
(c) T HE COMMISSION SHALL APPROVE A LOCAL GOVERNMENT 'S5
APPLICATION FOR THE APPROVAL OF A TRANSIT INVESTMENT PROJECT IF A6
MAJORITY OF THE COMMISSIONERS PARTICIPATING IN THE REVIEW OF THE7
APPLICATION FINDS THAT THE APPLICATION DEMONSTRATES THAT EACH8
OF THE CRITERIA IDENTIFIED IN SECTION 24-46-403 (4) ARE MATERIALLY9
MET.10
(d) (I) I F THE COMMISSION APPROVES AN APPLICATION FOR A11
TRANSIT INVESTMENT PROJECT , IT SHALL ADOPT A RESOLUTION THAT12
SPECIFIES:13
(A) T HE LOCAL GOVERNMENT THAT HAS BEEN APPROVED TO14
UNDERTAKE A TRANSIT INVESTMENT PROJECT;15
(B) T HE BOUNDARY OF THE TRANSIT INVESTMENT AREA16
ESTABLISHED IN CONNECTION WITH THE TRANSIT INVESTMENT PROJECT;17
(C) WHETHER THE COMMISSION HAS AUTHORIZED THE CREATION18
OF A TRANSIT INVESTMENT AUTHORITY; AND19
(D) T HE TOTAL CUMULATIVE DOLLAR AMOUNT THAT CAN BE20
DEDICATED TO THE TRANSIT INVESTMENT PROJECT , AS DETERMINED21
PURSUANT TO SUBSECTION (3)(d)(II) OF THIS SECTION.22
(II) (A) I N DETERMINING THE TOTAL CUMULATIVE DOLLAR23
AMOUNT THAT CAN BE DEDICATED TO THE TRANSIT INVESTMENT PROJECT24
PURSUANT TO SUBSECTION (3)(d)(I)(D) OF THIS SECTION, THE COMMISSION25
SHALL AWARD AN AMOUNT EQUAL TO THE TOTAL CUMULATIVE DOLLAR26
AMOUNT THAT THE THIRD -PARTY ANALYST DETERMINES CAN BE27
HB26-1065-21-
DEDICATED TO THE TRANSIT INVESTMENT PROJECT AS REPORTED1
PURSUANT TO SECTION 24-46-403 (3)(j).2
(B) N OTWITHSTANDING SUBSECTION (3)(d)(II)(A) OF THIS3
SECTION, IF THE ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO4
SECTION 24-46-403 (3)(c)(II) ARE LESS THAN THE TOTAL CUMULATIVE5
DOLLAR AMOUNT THAT THE THIRD-PARTY ANALYST DETERMINES CAN BE6
DEDICATED TO THE TRANSIT INVESTMENT PROJECT AS REPORTED7
PURSUANT TO SECTION 24-46-403 (3)(j) AND THE APPLICATION DID NOT8
AFFIRM THAT STATE SALES TAX INCREMENT REVENUE THAT EXCEEDS THE9
ESTIMATED ELIGIBLE COSTS WILL BE SPENT ON ADDITIONAL ELIGIBLE10
COSTS INCURRED IN CONNECTION WITH THE TRANSIT INVESTMENT11
PROJECT, IN DETERMINING THE TOTAL CUMULATIVE DOLLAR AMOUNT12
THAT CAN BE DEDICATED TO THE TRANSIT INVESTMENT PROJECT13
PURSUANT TO SUBSECTION (3)(d)(I)(D) OF THIS SECTION, THE COMMISSION14
SHALL AWARD A TOTAL CUMULATIVE DOLLAR AMOUNT EQUAL TO THE15
ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO SECTION 24-46-40316
(3)(c)(II).17
(C) N OTWITHSTANDING SUBSECTION (3)(d)(II)(A) OF THIS18
SECTION, IF THE ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO19
SECTION 24-46-403 (3)(c)(II) ARE LESS THAN THE TOTAL CUMULATIVE20
DOLLAR AMOUNT THAT THE THIRD-PARTY ANALYST DETERMINES CAN BE21
DEDICATED TO THE TRANSIT INVESTMENT PROJECT AS REPORTED22
PURSUANT TO SECTION 24-46-403 (3)(j) AND THE APPLICATION AFFIRMED23
THAT STATE SALES TAX INCREMENT REVENUE THAT EXCEEDS THE24
ESTIMATED ELIGIBLE COSTS WILL BE SPENT ON ADDITIONAL ELIGIBLE25
COSTS INCURRED IN CONNECTION WITH THE TRANSIT INVESTMENT26
PROJECT, IN DETERMINING THE TOTAL CUMULATIVE DOLLAR AMOUNT27
HB26-1065-22-
THAT CAN BE DEDICATED TO THE TRANSIT INVESTMENT PROJECT1
PURSUANT TO SUBSECTION (3)(d)(I)(D) OF THIS SECTION, THE COMMISSION2
SHALL AWARD A TOTAL CUMULATIVE DOLLAR AMOUNT EQUAL TO THE3
ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO SECTION 24-46-4034
(3)(c)(II) AND ALLOW FOR THE EXPENDITURE OF ADDITIONAL STATE SALES5
TAX INCREMENT REVENUE FOR ADDITIONAL ELIGIBLE COSTS INCURRED IN6
CONNECTION WITH THE TRANSIT INVESTMENT PROJECT BEYOND THOSE7
ESTIMATED IN THE APPLICATION.8
(e) THE COMMISSION SHALL NOT APPROVE ANY PROPOSED TRANSIT9
INVESTMENT PROJECT THAT WOULD LIKELY CREATE A STATE SALES TAX10
INCREMENT REVENUE DEDICATION OF MORE THAN SEVENTY-FIVE MILLION11
DOLLARS TO ALL TRANSIT INVESTMENT PROJECTS IN ANY GIVEN FISCAL12
YEAR.13
(f) (I) THE COMMISSION SHALL NOT APPROVE MORE THAN THREE14
TRANSIT INVESTMENT PROJECTS PURSUANT TO THIS SUBSECTION (3) IN15
ANY CALENDAR YEAR AND SHALL NOT APPROVE MORE THAN SIX TRANSIT16
INVESTMENT PROJECTS PURSUANT TO THIS SUBSECTION (3) IN TOTAL.17
(II) IF THE COMMISSION DOES NOT APPROVE A PROPOSED TRANSIT18
INVESTMENT PROJECT BECAUSE DOING SO WOULD CAUSE THE COMMISSION19
TO APPROVE MORE THAN THREE PROPOSED TRANSIT INVESTMENT20
PROJECTS IN THE SAME CALENDAR YEAR, THE COMMISSION MAY CONSIDER21
SUCH A PROJECT FOR APPROVAL, APPROVAL WITH CONDITIONS, OR DENIAL22
IN THE NEXT CALENDAR YEAR.23
(4) (a) A S PART OF THE APPROVAL OF A PROPOSED TRANSIT24
INVESTMENT PROJECT, THE COMMISSION SHALL AUTHORIZE:25
(I) T HE DEPARTMENT TO COLLECT THE STATE SALES TAX26
INCREMENT REVENUE SET TO BE COLLECTED IN CONNECTION WITH THE27
HB26-1065-23-
PROPOSED TRANSIT INVESTMENT PROJECT ON BEHALF OF THE RELEVANT1
FINANCING ENTITY;2
(II) A FINANCING ENTITY TO RECEIVE AND USE THE STATE SALES3
TAX INCREMENT REVENUE FOR THE DURATION OF THE FINANCING TERM ;4
AND5
(III) THE USE OF THE STATE SALES TAX INCREMENT REVENUE BY6
THE FINANCING ENTITY PURSUANT TO THIS PART 4 AND ANY CONDITIONS7
OF APPROVAL IMPOSED BY THE COMMISSION AND INCORPORATED IN8
WRITING INTO THE COMMISSION'S RESOLUTION APPROVING THE PROPOSED9
TRANSIT INVESTMENT PROJECT.10
(b) I N IMPLEMENTING THE AUTHORIZATION DESCRIBED IN11
SUBSECTION (4)(a)(II) OF THIS SECTION, THE DEPARTMENT SHALL REMIT12
STATE SALES TAX INCREMENT REVENUE TO THE FINANCING ENTITY ON A13
MONTHLY BASIS PROMPTLY AFTER COLLECTING THAT REVENUE.14
(5) (a) T HE TOTAL AMOUNT OF STATE SALES TAX INCREMENT15
REVENUE DEDICATED TO A TRANSIT INVESTMENT PROJECT FOR THE ENTIRE16
DURATION OF THE PROJECT SHALL NOT EXCEED THE TOTAL CUMULATIVE17
DOLLAR AMOUNT SPECIFIED BY THE COMMISSION PURSUANT TO18
SUBSECTION (3) OF THIS SECTION . THE DEPARTMENT SHALL TRACK THE19
ANNUAL AND CUMULATIVE STATE SALES TAX INCREMENT REVENUE20
REMITTED TO THE FINANCING ENTITY IN CONNECTION WITH A TRANSIT21
INVESTMENT PROJECT AND SHALL NOTIFY THE COMMISSION WHEN22
CUMULATIVE PAYMENTS EQUAL NINETY PERCENT OF THE LIMITS SET BY23
THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS SECTION FOR THE24
COMMISSION'S CONCURRENCE REGARDING THE DOLLAR LIMITS.25
(b) A FTER THE DEPARTMENT HAS REMITTED THE TOTAL26
CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT REVENUE27
HB26-1065-24-
SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS1
SECTION TO THE FINANCING ENTITY, THE DEPARTMENT SHALL NOT REMIT2
ANY ADDITIONAL STATE SALES TAX INCREMENT REVENUE FROM THE STATE3
TO THE FINANCING ENTITY , EVEN IF THE APPROVED FINANCING TERM IS4
NOT COMPLETED. THE DEPARTMENT SHALL NOTIFY THE COMMISSION IF IT5
IS NO LONGER REMITTING STATE SALES TAX INCREMENT REVENUE TO THE6
FINANCING ENTITY PURSUANT TO THIS SUBSECTION (5)(b).7
(6) FOLLOWING THE COMMISSION'S APPROVAL OF AN APPLICATION,8
AND THE ESTABLISHMENT OF THE TERMS OF AWARD INCLUDING THE ITEMS9
DESCRIBED IN SUBSECTION (3)(d)(I) OF THIS SECTION, THE COMMISSION10
SHALL PROMPTLY TRANSMIT WRITTEN NOTICE AND A COPY OF THE11
APPROVAL TO THE EXECUTIVE DIRECTOR OF THE DEPARTMENT . THE12
COMMISSION SHALL INCLUDE ANY INFORMATION DEEMED NECESSARY BY13
THE DEPARTMENT TO FULFILL ITS OBLIGATIONS PURSUANT TO THIS PART14
4 IN THE WRITTEN NOTICE.15
24-46-405. Transit investment authority - board - creation -16
powers and duties.17
(1) THE COMMISSION SHALL NOT DENY A REQUEST TO AUTHORIZE18
THE CREATION OF A TRANSIT INVESTMENT AUTHORITY IF THE COMMISSION19
OTHERWISE APPROVES AN APPLICATION FOR A TRANSIT INVESTMENT20
PROJECT THAT INCLUDES A REQUEST FOR THE FORMATION OF A TRANSIT21
INVESTMENT AUTHORITY.22
(2) A TRANSIT INVESTMENT AUTHORITY IS GOVERNED BY A BOARD23
CONSISTING OF THE FOLLOWING MEMBERS:24
(a) IF THE TRANSIT INVESTMENT AUTHORITY IS A SINGLE LOCAL25
GOVERNMENT:26
(I) T WO MEMBERS APPOINTED BY THE COMMISSION WHO ARE27
HB26-1065-25-
OWNERS OF COMMERCIAL PROPERTY WITHIN THE TRANSIT INVESTMENT1
AREA;2
(II) TWO MEMBERS APPOINTED BY THE LOCAL GOVERNMENT WHO3
ARE ELECTED OFFICIALS OF THE LOCAL GOVERNMENT; AND4
(III) O NE MEMBER APPOINTED BY THE TRANSIT AGENCY THAT5
OPERATES THE TRANSPORTATION FACILITY THAT IS THE SUBJECT OF THE6
PROPOSED TRANSIT INVESTMENT PROJECT.7
(b) I F THE TRANSIT INVESTMENT AUTHORITY IS TWO LOCAL8
GOVERNMENTS:9
(I) T WO MEMBERS APPOINTED BY THE COMMISSION WHO ARE10
OWNERS OF COMMERCIAL PROPERTY WITHIN THE TRANSIT INVESTMENT11
AREA;12
(II) O NE MEMBER APPOINTED BY THE TRANSIT AGENCY THAT13
OPERATES THE TRANSPORTATION FACILITY THAT IS THE SUBJECT OF THE14
PROPOSED TRANSIT INVESTMENT PROJECT; AND15
(III) O NE MEMBER APPOINTED BY EACH OF THE TWO LOCAL16
GOVERNMENTS WHO IS AN ELECTED OFFICIAL OF ONE OF THE LOCAL17
GOVERNMENTS.18
(c) IF THE TRANSIT INVESTMENT AUTHORITY IS MORE THAN TWO19
LOCAL GOVERNMENTS:20
(I) ONE MEMBER APPOINTED BY EACH LOCAL GOVERNMENT IN THE21
TRANSIT INVESTMENT AUTHORITY WHO IS AN ELECTED OFFICIAL OF ONE OF22
THE LOCAL GOVERNMENTS; AND23
(II) T HREE OR MORE MEMBERS , AS DETERMINED BY THE24
COMMISSION SO THAT THE TOTAL NUMBER OF MEMBERS ON A GOVERNING25
BOARD IS AN ODD NUMBER , REPRESENTING COMMERCIAL PROPERTY26
OWNERS WITHIN THE TRANSIT INVESTMENT AREA , APPOINTED BY THE27
HB26-1065-26-
COMMISSION.1
(3) U NLESS LIMITED BY THE COMMISSION 'S CONDITIONS OF2
APPROVAL, EACH TRANSIT INVESTMENT AUTHORITY HAS ALL THE POWERS3
NECESSARY OR CONVENIENT TO CARRY OUT THIS PART 4, INCLUDING THE4
FOLLOWING POWERS:5
(a) PERPETUAL EXISTENCE AND SUCCESSION;6
(b) TO ADOPT, HAVE, AND USE A CORPORATE SEAL;7
(c) TO SUE AND BE SUED AND TO BE A PARTY TO SUITS , ACTIONS,8
AND PROCEEDINGS;9
(d) TO UNDERTAKE TRANSIT INVESTMENT PROJECTS;10
(e) TO ENTER INTO CONTRACTS AND AGREEMENTS AFFECTING THE11
AFFAIRS OF THE TRANSIT INVESTMENT AUTHORITY AS NECESSARY TO12
COMPLETE A TRANSIT INVESTMENT PROJECT;13
(f) TO RECEIVE, INVEST, PLEDGE, SPEND, AND OTHERWISE USE AND14
EXPEND STATE SALES TAX INCREMENT REVENUE IN ACCORDANCE WITH AN15
APPROVED TRANSIT INVESTMENT PROJECT;16
(g) T O ASSIGN AND PLEDGE TO ANY COUNTY REVITALIZATION17
AUTHORITY, METROPOLITAN DISTRICT , AUTHORITY FORMED BY18
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN19
DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR URBAN RENEWAL20
AUTHORITY HAVING ALL OR ANY PORTION OF THE TRANSIT INVESTMENT21
AREA WITHIN ITS BOUNDARIES OR SERVICE AREA THE TRANSIT22
INVESTMENT AUTHORITY'S RIGHT TO RECEIVE AND USE STATE SALES TAX23
INCREMENT REVENUE TO SUPPORT BONDS OR OTHER FINANCING24
INSTRUMENTS ISSUED OR ENTERED INTO BY THE COUNTY REVITALIZATION25
AUTHORITY , METROPOLITAN DISTRICT , AUTHORITY FORMED BY26
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN27
HB26-1065-27-
DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR URBAN RENEWAL1
AUTHORITY FOR ELIGIBLE COSTS OR TO ACQUIRE ELIGIBLE IMPROVEMENTS,2
INCLUDING LOANS OR FUNDING AND REIMBURSEMENT AGREEMENTS WITH3
DEVELOPERS INVOLVED IN THE TRANSIT INVESTMENT PROJECT OR OTHER4
THIRD PARTIES;5
(h) TO BORROW MONEY AND INCUR INDEBTEDNESS AND EVIDENCE6
THE SAME BY CERTIFICATES AND NOTE AND DEBENTURES;7
(i) TO ISSUE BONDS IN ACCORDANCE WITH SECTION 24-46-409;8
(j) T O INVEST ANY OF THE AUTHORITY 'S FUNDS THAT ARE NOT9
REQUIRED FOR IMMEDIATE DISBURSEMENT;10
(k) T O DEPOSIT ANY FUNDS NOT REQUIRED FOR IMMEDIATE11
DISBURSEMENT IN ANY DEPOSITORY AUTHORIZED IN SECTION 24-75-60312
AND, FOR THE PURPOSE OF MAKING THE DEPOSITS, TO APPOINT BY WRITTEN13
RESOLUTION ONE OR MORE PERSONS TO ACT AS CUSTODIANS OF THE14
AUTHORITY'S FUND, WHICH PERSON SHALL GIVE SURETY BONDS IN THE15
AMOUNTS AND FORM AND FOR THE PURPOSES REQUIRED BY THE16
AUTHORITY;17
(l) TO MAKE APPROPRIATIONS AND EXPENDITURES OF ITS FUNDS18
AND TO SET UP , ESTABLISH , AND MAINTAIN GENERAL , SEPARATE , OR19
SPECIAL FUNDS AND BANK ACCOUNTS OR OTHER ACCOUNTS AS IT DEEMS20
NECESSARY OR CONVENIENT TO CARRY OUT THIS PART 4;21
(m) TO ACCEPT ON ITS OWN BEHALF REAL OR PERSONAL PROPERTY22
FOR ITS OWN USE;23
(n) T O ACCEPT GIFTS AND CONVEYANCES MADE TO THE24
AUTHORITY UPON THE TERMS OR CONDITIONS APPROVED BY THE25
AUTHORITY'S BOARD;26
(o) TO ADOPT, AMEND, AND ENFORCE BYLAWS AND RULES THAT27
HB26-1065-28-
ARE NOT IN CONFLICT WITH THE CONSTITUTION AND LAWS OF THE STATE1
FOR CARRYING OUT THE BUSINESS , OBJECTS , AND AFFAIRS OF THE2
AUTHORITY;3
(p) TO HAVE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY4
OR INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS GRANTED TO5
THE TRANSIT INVESTMENT AUTHORITY BY THIS PART 4. THE SPECIFIC6
POWERS SHALL NOT BE CONSIDERED A LIMITATION UPON ANY POWER7
NECESSARY OR APPROPRIATE TO CARRY OUT THIS PART 4.8
(q) T O AUTHORIZE THE USE OF ELECTRONIC RECORDS OR9
SIGNATURES AND TO ADOPT RULES , STANDARDS , POLICIES , AND10
PROCEDURES FOR USE OF ELECTRONIC RECORDS OR SIGNATURES PURSUANT11
TO ARTICLE 71.3 OF THIS TITLE 24.12
(4) A TRANSIT INVESTMENT AUTHORITY DOES NOT HAVE THE13
POWER OF EMINENT DOMAIN AND DOES NOT HAVE THE POWER TO IMPOSE14
OR LEVY ANY SALES TAX, USE TAX, PROPERTY TAX, OR ANY OTHER TAX.15
(5) T HE BOARD OF DIRECTORS OF A TRANSIT INVESTMENT16
AUTHORITY IS SUBJECT TO THE "COLORADO OPEN RECORDS ACT", PART17
2 OF ARTICLE 72 OF THIS TITLE 24, AND THE "COLORADO SUNSHINE ACT18
OF 1972", ARTICLE 6 OF THIS TITLE 24.19
24-46-406. State sales tax increment revenue.20
(1) IN ORDER TO IMPLEMENT THE COLLECTION OF STATE SALES TAX21
INCREMENT REVENUE, THE RESOLUTION ADOPTED BY THE COMMISSION22
APPROVING A TRANSIT INVESTMENT PROJECT SHALL STATE THAT THE23
DEPARTMENT SHALL , NO LATER THAN NINETY DAYS AFTER THE24
COMMISSION'S ADOPTION OF THE RESOLUTION AND AFTER RETAINING AN25
AMOUNT OF THE STATE SALES TAX INCREMENT REVENUE ESTABLISHED BY26
THE DEPARTMENT AS NECESSARY TO OFFSET THE DEPARTMENT'S ACTUAL27
HB26-1065-29-
DIRECT COSTS AND EXPENSES INCURRED IN PERFORMING THE1
DEPARTMENT'S COLLECTION AND DISBURSEMENT FUNCTIONS ESTABLISHED2
IN THIS PART 4 IN CONNECTION WITH THE TRANSIT INVESTMENT PROJECT,3
DIVIDE AND DISTRIBUTE STATE SALES TAXES LEVIED AND COLLECTED ON4
SALES MADE AT PHYSICAL SITES WITHIN THE TRANSIT INVESTMENT AREA5
COMMENCING ON THE FIRST DAY OF THE FIRST MONTH AFTER THE6
DEPARTMENT HAS COLLECTED THE BASE YEAR REVENUE FOR THE YEAR7
AFTER THE EFFECTIVE DATE OF THE COMMISSION 'S APPROVAL OF THE8
PROJECT AS FOLLOWS:9
(a) F IRST, THE PORTION OF STATE SALES TAXES COLLECTED ON10
SALES MADE AT PHYSICAL SITES WITHIN THE BOUNDARIES OF THE TRANSIT11
INVESTMENT AREA EQUAL TO THE BASE YEAR REVENUE AND THE BASELINE12
GROWTH RATE IS PAID INTO THE STATE TREASURY AS STATE SALES TAXES13
ARE NORMALLY COLLECTED AND PAID;14
(b) SECOND, THE STATE SALES TAXES COLLECTED ON SALES MADE15
AT PHYSICAL SITES WITHIN THE BOUNDARIES OF THE TRANSIT INVESTMENT16
AREA EQUAL TO THE STATE SALES TAX INCREMENT REVENUE IS ARE PAID17
INTO A SPECIAL FUND ESTABLISHED BY THE FINANCING ENTITY PURSUANT18
TO SUBSECTION (2) OF THIS SECTION; AND19
(c) T HIRD, ANY EXCESS STATE SALES TAX COLLECTIONS NOT20
ALLOCATED PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION ARE PAID21
INTO THE STATE TREASURY AS SALES TAXES ARE NORMALLY COLLECTED22
AND PAID AND, IF THERE IS INSUFFICIENT STATE SALES TAXES COLLECTED23
ON SALES MADE AT PHYSICAL SITES WITHIN THE BOUNDARIES OF THE24
TRANSIT INVESTMENT AREA TO MAKE THE ALLOCATION DESCRIBED IN25
SUBSECTION (1)(b) OF THIS SECTION , THE STATE TREASURER SHALL26
TRANSFER THE NECESSARY DIFFERENCE FROM STATE SALES TAX REVENUE27
HB26-1065-30-
PAID INTO THE GENERAL FUND PURSUANT TO SUBSECTION (1)(a) OF THIS1
SECTION INTO THE SAME SPECIAL FUND ESTABLISHED BY THE FINANCING2
ENTITY PURSUANT TO SUBSECTION (2) OF THIS SECTION.3
(2) (a) A FINANCING ENTITY MUST SEGREGATE REVENUE4
ALLOCATED TO THE FINANCING ENTITY BY THE DEPARTMENT PURSUANT5
TO SUBSECTION (1)(b) OF THIS SECTION IN A SPECIAL FUND . THE6
FINANCING ENTITY SHALL SEGREGATE THE SPECIAL FUND FROM THE7
FINANCING ENTITY'S OTHER FUNDS. THE FINANCING ENTITY MAY USE THE8
MONEY IN THE SPECIAL FUND TO PAY THE PRINCIPAL OF, THE INTEREST ON,9
AND ANY PREMIUMS DUE IN CONNECTION WITH THE BONDS OF, LOANS OR10
ADVANCES TO , OR INDEBTEDNESS INCURRED BY , WHETHER FUNDED ,11
REFUNDED, ASSUMED , OR OTHERWISE , THE FINANCING ENTITY FOR12
FINANCING OR REFINANCING , IN WHOLE OR IN PART , A TRANSIT13
INVESTMENT PROJECT.14
(b) A FINANCING ENTITY MAY USE REVENUE ALLOCATED TO THE15
FINANCING ENTITY BY THE DEPARTMENT PURSUANT TO SUBSECTION (1)(b)16
OF THIS SECTION SOLELY TO FINANCE ELIGIBLE COSTS INCURRED FOR THE17
PURPOSE OF CONSTRUCTING THE ELIGIBLE IMPROVEMENTS AND18
IMPLEMENTING THE TRANSIT INVESTMENT PROJECT.19
(3) STATE SALES TAX INCREMENT REVENUE, TOGETHER WITH ANY20
INVESTMENT INCOME EARNED ON THAT REVENUE , IS FOR ALL PURPOSES21
ASSIGNED TO, THE PROPERTY OF, AND THE REVENUE OF THE APPLICABLE22
FINANCING ENTITY AND IS NOT FOR ANY PURPOSE REVENUE OR PROPERTY23
OF THE STATE.24
(4) A SINGLE DEBT ISSUANCE OF A FINANCING ENTITY MUST NOT25
HAVE A MATURITY DATE IN EXCESS OF THIRTY YEARS FROM THE DATE OF26
ISSUANCE, UNLESS THE FINANCING ENTITY BOTH:27
HB26-1065-31-
(a) ANTICIPATES ISSUING A SERIES OF BONDS OR OTHER FORMS OF1
DEBT; AND2
(b) HAS THE ABILITY TO CONSOLIDATE OR REFINANCE PREVIOUSLY3
ISSUED DEBT OR BONDS WITH A MATURITY DATE FOR SUCH CONSOLIDATED4
OR REFINANCED DEBT OR BONDS NOT TO EXCEED THIRTY YEARS FROM THE5
DATE OF ISSUANCE OF THE CONSOLIDATING OR REFINANCING BONDS.6
(5) ON OR BEFORE JULY 1, 2029, AND ON OR BEFORE JULY 1 EVERY7
THREE YEARS THEREAFTER, THE DEPARTMENT MUST SUBMIT A REPORT TO8
THE OFFICE OF STATE PLANNING AND BUDGETING AND THE COMMISSION ON9
TECHNOLOGICAL OR OTHER METHODS TO INCORPORATE DELIVERY SALES10
INTO THE CALCULATION OF THE INCREMENT AND TO ALLOW FOR THE11
DESIGNATION OF ADDITIONAL TRANSIT AND HOUSING INVESTMENT ZONES12
AND TRANSIT INVESTMENT AREAS , INCLUDING COST ESTIMATES ,13
ADMINISTRATIVE BURDEN, AND BURDEN ON TAXPAYERS.14
24-46-407. Annual report - audit.15
(1) (a) WITHIN NINETY DAYS OF THE END OF THE FIRST FULL STATE16
FISCAL YEAR AFTER THE COMMISSION APPROVES A TRANSIT INVESTMENT17
PROJECT AND ON THE SAME DATE EACH YEAR THEREAFTER , THE18
FINANCING ENTITY SHALL PREPARE AND SUBMIT TO THE COMMISSION AN19
ANNUAL REPORT DETAILING:20
(I) THE TOTAL AMOUNT OF STATE SALES TAX INCREMENT REVENUE21
THAT THE FINANCING ENTITY HAS RECEIVED OVER THE PAST YEAR;22
(II) HOW THE FINANCING ENTITY HAS SPENT THE STATE SALES TAX23
INCREMENT REVENUE THAT IT HAS RECEIVED;24
(III) PROJECTED STATE SALES TAX INCREMENT REVENUE FOR THE25
REMAINDER OF THE PERIOD FOR WHICH THE FINANCING ENTITY MAY26
RECEIVE STATE SALES TAX INCREMENT REVENUE; AND27
HB26-1065-32-
(IV) A SUMMARY OF THE STATUS OF CONSTRUCTION OF THE1
ELIGIBLE IMPROVEMENTS RELATED TO THE TRANSIT INVESTMENT PROJECT.2
(b) IN ADDITION TO THE INFORMATION DESCRIBED IN SUBSECTION3
(1)(a) OF THIS SECTION , A FINANCING ENTITY SUBMITTING A REPORT4
PURSUANT TO THIS SUBSECTION (1) SHALL ALSO INCLUDE IN THAT REPORT5
WHETHER THE FINANCIAL ENTITY IS USING ANY STATE SALES TAX6
INCREMENT REVENUE FOR PURPOSES OTHER THAN FOR ELIGIBLE COSTS7
AND ANY OTHER FINANCIAL INFORMATION THAT IS REASONABLY REQUIRED8
BY THE COMMISSION.9
(c) I F ANY INFORMATION PROVIDED IN THE ANNUAL REPORT10
DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION WILL BE A TRADE11
SECRET, PROPRIETARY , OR OTHERWISE ENTITLED TO PROTECTION12
PURSUANT TO PART 2 OF ARTICLE 72 OF THIS TITLE 24, THAT INFORMATION13
IS SO DESIGNATED BY THE FINANCING ENTITY AND KEPT CONFIDENTIAL BY14
THE STATE.15
(d) T HE GOVERNING BODY OF THE FINANCING ENTITY SHALL16
ATTEST TO THE ACCURACY OF THE INFORMATION PROVIDED IN THE17
ANNUAL REPORT DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION.18
(2) (a) I N CONNECTION WITH THE A NNUAL REPORT REQUIRED19
PURSUANT TO SUBSECTION (1) OF THIS SECTION , A FINANCING ENTITY20
SHALL SUBMIT AN INDEPENDENT AUDIT OF ITS FINANCIAL STATUS THAT IS21
PREPARED BY A CERTIFIED PUBLIC ACCOUNTANT ATTESTING TO THE22
ACCURACY OF THE ANNUAL REPORT.23
(b) IF THE AUDIT PREPARED PURSUANT TO SUBSECTION (2)(a) OF24
THIS SECTION FINDS THAT A FINANCING ENTITY HAS USED STATE SALES25
TAX INCREMENT REVENUE FOR UNAUTHORIZED PURPOSES, THE FINANCING26
ENTITY IS LIABLE FOR THE REPAYMENT TO THE GENERAL FUND OF THE27
HB26-1065-33-
STATE SALES TAX INCREMENT REVENUE THAT WAS INTENDED FOR THE1
TRANSIT INVESTMENT PROJECT. THE FINANCING ENTITY MAY MAKE THE2
REPAYMENT:3
(I) FROM THE FINANCING ENTITY'S FUNDS DERIVED FROM SOURCES4
OTHER THAN STATE SALES TAX INCREMENT REVENUE;5
(II) B Y OFFSETTING AGAINST FUTURE STATE SALES TAX6
INCREMENT REVENUE THAT THE DEPARTMENT WOULD OTHERWISE7
DISBURSE TO THE FINANCING ENTITY; OR8
(III) FROM OTHER FUNDS THAT ARE LEGALLY AVAILABLE TO THE9
FINANCING ENTITY FOR SUCH PURPOSE.10
(4) I F A FINANCING ENTITY IS A COUNTY REVITALIZATION11
AUTHORITY, A METROPOLITAN DISTRICT , AN AUTHORITY FORMED BY12
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN13
DISTRICTS, A REGIONAL TRANSPORTATION AUTHORITY , OR AN URBAN14
RENEWAL AUTHORITY, IT MAY COMPLY WITH THIS SECTION BY SUBMITTING15
TO THE COMMISSION A COPY OF THE REPORT THAT THE COUNTY16
REVITALIZATION AUTHORITY , METROPOLITAN DISTRICT , AUTHORITY17
FORMED BY INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE18
METROPOLITAN DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR19
URBAN RENEWAL AUTHORITY IS OTHERWISE REQUIRED TO SUBMIT TO A20
LOCAL GOVERNMENT PURSUANT TO LAW. THE FINANCING ENTITY SHALL21
DELIVER A COPY OF THE REPORT THAT THE COUNTY REVITALIZATION22
AUTHORITY, METROPOLITAN DISTRICT , AUTHORITY FORMED BY23
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN24
DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR URBAN RENEWAL25
AUTHORITY IS OTHERWISE REQUIRED TO SUBMIT TO A LOCAL GOVERNMENT26
PURSUANT TO LAW AT THE SAME TIME AS AN ANNUAL REPORT OR AUDIT27
HB26-1065-34-
OTHERWISE REQUIRED BY LAW.1
(5) T HE OFFICE OF ECONOMIC DEVELOPMENT AND THE2
DEPARTMENT SHALL PREPARE A REPORT FOR THE OFFICE OF ECONOMIC3
DEVELOPMENT TO SUBMIT NO LATER THAN NOVEMBER 1 OF THE4
APPLICABLE FISCAL YEAR TO THE FINANCE COMMITTEES OF THE HOUSE OF5
REPRESENTATIVES AND SENATE ; THE BUSINESS AND ECONOMIC6
DEVELOPMENT COMMITTEE OF THE HOUSE OF REPRESENTATIVES; AND THE7
BUSINESS, LABOR, AND TECHNOLOGY COMMITTEE OF THE SENATE; OR ANY8
SUCCESSOR COMMITTEES. THE REPORT SHALL INCLUDE INFORMATION ON9
ALL STATE SALES TAX INCREMENT REVENUE COLLECTED FOR TRANSIT10
INVESTMENT DURING THE PRIOR STATE FISCAL YEAR AND INFORMATION11
FROM THE REPORTS REQUIRED PURSUANT TO SUBSECTION (6) OF THIS12
SECTION.13
(6) (a) E ACH YEAR , NO LATER THAN SEPTEMBER 1, THE14
DEPARTMENT SHALL REPORT TO THE COMMISSION THE AGGREGATE15
AMOUNT OF STATE SALES TAX INCREMENT REVENUE ALLOCATED TO16
FINANCING ENTITIES FOR APPROVED TRANSIT INVESTMENT PROJECTS.17
(b) EVERY TWO YEARS, NO LATER THAN NOVEMBER 1, THE OFFICE18
OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL REPORT TO19
THE COMMISSION DETAILED INFORMATION ON EACH TRANSIT INVESTMENT20
PROJECT APPROVED TO RECEIVE STATE SALES TAX INCREMENT REVENUE,21
INCLUDING:22
(I) T HE AMOUNT OF STATE SALES TAX INCREMENT REVENUE23
ALLOCATED FOR THE PROJECT;24
(II) T HE BOUNDARIES OF THE APPROVED TRANSIT INVESTMENT25
AREA AND NARRATIVE FOR THE TRANSIT INVESTMENT PROJECT;26
(III) T HE PROPOSED TERM OF FINANCING AND THE NEW NET27
HB26-1065-35-
REVENUE THAT IS APPROVED FOR THE TRANSIT INVESTMENT PROJECT;1
(IV) T HE ACTUAL STATE SALES TAX INCREMENT REVENUE2
COLLECTED WITHIN THE TRANSIT INVESTMENT AREA COMPARED TO THE3
PROJECTED REVENUES CONTAINED IN THE APPROVED APPLICATION THAT4
PROPOSED THE TRANSIT INVESTMENT AREA; AND5
(V) A N ASSESSMENT OF THE OVERALL EFFECTIVENESS OF THE6
TRANSIT INVESTMENT PROJECT IN ACHIEVING INCREASED TRANSIT7
RIDERSHIP.8
24-46-408. Commencement of development.9
(1) S UBSTANTIAL WORK ON A TRANSIT INVESTMENT PROJECT ,10
INCLUDING THE FINANCING ENTITY'S ISSUANCE OF BONDS OR OTHER DEBT11
INSTRUMENTS, THE REPAYMENT OF WHICH IS SECURED BY A PLEDGE OF12
THE STATE SALES TAX INCREMENT REVENUE OR THE COMMENCEMENT OF13
ACTUAL DEVELOPMENT OR PREDEVELOPMENT , SUCH AS ERECTING14
PERMANENT STRUCTURES , EXCAVATING THE GROUND TO LAY15
FOUNDATIONS, MASS GRADING OF THE SITE , OR WORK OF A SIMILAR16
DESCRIPTION THAT MANIFESTS AN INTENTION AND PURPOSE TO COMPLETE17
THE PROJECT MUST COMMENCE WITHIN FIVE YEARS FROM THE DATE OF18
THE COMMISSION'S APPROVAL OF THE PROJECT.19
(2) IF SUBSTANTIAL WORK ON THE TRANSIT INVESTMENT PROJECT20
TOWARD THE GOALS SPECIFIED IN THE APPLICATION PURSUANT TO SECTION21
24-46-403 DOES NOT COMMENCE WITHIN FIVE YEARS OF THE22
COMMISSION'S APPROVAL, THE COMMISSION MAY REVOKE OR MODIFY ITS23
APPROVAL OF THE FINANCING ENTITY OR THE PROJECT . REVOCATION OF24
APPROVAL MAY BE APPEALED TO THE COMMISSION , WHICH MAY25
REINSTATE ITS APPROVAL UPON A SHOWING OF GOOD CAUSE FOR THE26
DELAY. IF SUBSTANTIAL WORK ON THE PROJECT DOES NOT COMMENCE27
HB26-1065-36-
WITHIN ONE YEAR OF REINSTATEMENT OF APPROVAL FROM THE1
COMMISSION, THE COMMISSION SHALL REVOKE APPROVAL OF THE PROJECT.2
(3) U PON THE REVOCATION OF THE APPROVAL OF A FI NANCING3
ENTITY OR THE TRANSIT INVESTMENT PROJECT:4
(a) E XCEPT AS OTHERWISE PROVIDED IN SUBSECTION (3)(b) OF5
THIS SECTION, THE COMMISSION MAY REQUIRE THE FINANCING ENTITY TO6
REFUND TO THE STATE TREASURER ANY STATE SALES TAX INCREMENT7
REVENUE THAT THE PROJECT HAS GENERATED OR THAT THE FINANCING8
ENTITY HAS COLLECTED FROM THE TIME OF THE ORIGINAL APPROVAL FOR9
THE PROJECT OR FINANCING ENTITY;10
(b) A NY STATE SALES TAX INCREMENT REVENUE THAT THE11
TRANSIT INVESTMENT PROJECT HAS GENERATED OR THAT THE FINANCING12
ENTITY HAS COLLECTED FROM THE TIME OF THE ORIGINAL APPROVAL FOR13
THE PROJECT OR FINANCING ENTITY MAY REMAIN DEDICATED TO THE14
PROJECT ONLY TO THE EXTENT THAT IT HAS BEEN PREVIOUSLY EXPENDED15
OR PLEDGED BY THE FINANCING ENTITY FOR THE FINANCING OF ELIGIBLE16
COSTS; AND17
(c) THE STATE SHALL NOT REMIT FURTHER FUNDS TO THE REVOKED18
FINANCIAL ENTITY OR TRANSIT INVESTMENT PROJECT.19
(4) I N EVALUATING WHETHER SUBSTANTIAL WORK HAS BEEN20
COMMENCED FOR PURPOSES OF ADMINISTERING THIS SECTION , THE21
COMMISSION SHALL RELY ON THE INFORMATION AND DATA SUPPLIED IN22
THE ANNUAL REPORTS SUBMITTED BY THE FINANCING ENTITY OR23
CERTIFIED PUBLIC ACCOUNTANT PURSUANT TO SECTION 24-46-407 AND24
ANY SUPPLEMENTAL DATA DEEMED NECESSARY BY THE COMMISSION.25
(5) THE COMMISSION ONLY HAS THE AUTHORITY TO REVOKE ITS26
APPROVAL OF A FINANCING ENTITY OR A TRANSIT INVESTMENT PROJECT27
HB26-1065-37-
PURSUANT TO THIS SECTION.1
24-46-409. Issuance of bonds by a financing entity.2
(1) A FINANCING ENTITY MAY ISSUE BONDS FROM TIME TO TIME IN3
ITS DISCRETION TO FINANCE ANY ELIGIBLE IMPROVEMENTS WITH RESPECT4
TO A TRANSIT INVESTMENT PROJECT AND MAY ALSO ISSUE REFUNDING OR5
OTHER BONDS OF THE FINANCING ENTITY FROM TIME TO TIME IN ITS6
DISCRETION FOR THE PAYMENT, RETIREMENT, RENEWAL, OR EXTENSION OF7
ANY BONDS PREVIOUSLY ISSUED BY THE FINANCING ENTITY UNDER THIS8
SECTION AND TO PROVIDE FOR THE REPLACEMENT OF LOST, DESTROYED,9
OR MUTILATED BONDS PREVIOUSLY ISSUED UNDER THIS SECTION.10
(2) (a) B ONDS ISSUED UNDER THIS SECTION MAY BE GENERAL11
OBLIGATION OR SPECIAL REVENUE BONDS OF THE FINANCING ENTITY, THE12
PAYMENT OF WHICH, AS TO PRINCIPAL AND INTEREST AND PREMIUMS , IF13
ANY, THE FULL FAITH , CREDIT , AND ASSETS , ACQUIRED AND TO BE14
ACQUIRED, OF THE FINANCING ENTITY ARE IRREVOCABLY PLEDGED.15
(b) B ONDS ISSUED UNDER THIS SECTION MAY BE SPECIAL16
OBLIGATIONS OF THE FINANCING ENTITY THAT , AS TO PRINCIPAL AND17
INTEREST AND PREMIUMS , IF ANY , ARE PAYABLE SOLELY FROM AND18
SECURED ONLY BY A PLEDGE OF ANY INCOME, PROCEEDS, REVENUES, OR19
FUNDS OF THE FINANCING ENTITY , INCLUDING , WITHOUT LIMITATION ,20
STATE SALES TAX INCREMENT REVENUE.21
(3) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,22
ANY BONDS ISSUED UNDER THIS SECTION MAY BE ADDITIONALLY SECURED23
AS TO THE PAYMENT OF THE PRINCIPAL AND INTEREST AND PREMIUMS, IF24
ANY, BY A MORTGAGE OF ANY TRANSIT INVESTMENT PROJECT , OR ANY25
PART THEREOF , TITLE TO WHICH IS THEN OR THEREAFTER IN THE26
FINANCING ENTITY OR OF ANY OTHER REAL OR PERSONAL PROPERTY OR27
HB26-1065-38-
INTERESTS THEREIN THEN OWNED OR THEREAFTER ACQUIRED BY THE1
FINANCING ENTITY.2
(4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,3
GENERAL OBLIGATION BONDS ISSUED UNDER THIS SECTION MAY BE4
ADDITIONALLY SECURED AS TO THE PAYMENT OF THE PRINCIPAL AND5
INTEREST AND PREMIUMS, IF ANY, AS PROVIDED IN SUBSECTION (2) OF THIS6
SECTION, WITH OR WITHOUT BEING ALSO ADDITIONALLY SECURED AS TO7
PAYMENT OF THE PRINCIPAL AND INTEREST AND PREMIUMS, IF ANY, BY A8
MORTGAGE AS PROVIDED IN SUBSECTION (3) OF THIS SECTION OR A TRUST9
AGREEMENT AS PROVIDED IN SUBSECTION (5) OF THIS SECTION.10
(5) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,11
ANY BONDS ISSUED UNDER THIS SECTION MAY BE ADDITIONALLY SECURED12
AS TO THE PAYMENT OF THE PRINCIPAL AND INTEREST AND PREMIUMS, IF13
ANY, BY A TRUST AGREEMENT OR INDENTURE BY AND BETWEEN THE14
FINANCING ENTITY AND A CORPORATE TRUSTEE , WHICH MAY BE ANY15
TRUST COMPANY OR BANK HAVING THE POWERS OF A TRUST COMPANY16
WITHIN OR WITHOUT THE STATE.17
(6) BONDS ISSUED UNDER THIS SECTION DO NOT CONSTITUTE AN18
INDEBTEDNESS OF THE STATE OR OF ANY COUNTY , MUNICIPALITY , OR19
PUBLIC BODY OF THE STATE OTHER THAN THE FINANCING ENTITY ISSUING20
THE BONDS AND ARE NOT SUBJECT TO ANY OTHER LAW OR OF THE21
CHARTER OF ANY MUNICIPALITY RELATING TO THE AUTHORIZATION ,22
ISSUANCE, OR SALE OF BONDS.23
(7) BONDS ISSUED UNDER THIS SECTION SHALL BE AUTHORIZED BY24
A RESOLUTION OF THE FINANCING ENTITY AND MAY BE ISSUED IN ONE OR25
MORE SERIES AND SHALL BEAR SUCH DATE; BE PAYABLE UPON DEMAND OR26
MATURE AT A TIME DETERMINED BY THE FINANCING ENTITY NOT TO27
HB26-1065-39-
EXCEED THIRTY YEARS, EXCEPT AS THE MATURITY MAY BE EXTENDED IN1
ACCORDANCE WITH SECTION 24-46-406 (4); BEAR INTEREST AT A RATE2
PAYABLE OR COMPOUNDABLE AT INTERVALS DETERMINED BY THE3
FINANCING ENTITY; BE IN SUCH DENOMINATION; BE IN SUCH FORM, EITHER4
COUPON OR REGISTERED OR OTHERWISE ; CARRY SUCH CONVERSION OR5
REGISTRATION PRIVILEGES; HAVE SUCH RANK OR PRIORITY; BE EXECUTED6
IN THE NAME OF THE FINANCING ENTITY IN SUCH MANNER, BE PAYABLE IN7
SUCH MEDIUM OF PAYMENT; BE PAYABLE AT SUCH PLACE; BE SUBJECT TO8
SUCH CALLABILITY PROVISIONS OR TERMS OF REDEMPTION , WITH OR9
WITHOUT PREMIUMS ; BE SECURED IN SUCH MANNER ; BE OF SUCH10
DESCRIPTION; CONTAIN OR BE SUBJECT TO SUCH COVENANTS, PROVISIONS,11
TERMS, CONDITIONS , AND AGREEMENTS , INCLUDING PROVISIONS12
CONCERNING EVENTS OF DEFAULT; AND HAVE OTHER CHARACTERISTICS13
THAT MAY BE PROVIDED BY THE RESOLUTION OR BY THE TRUST14
AGREEMENT, INDENTURE , OR MORTGAGE, IF ANY, ISSUED PURSUANT TO15
THE RESOLUTION. THE SEAL, OR A FACSIMILE THEREOF, OF THE FINANCING16
ENTITY SHALL BE AFFIXED , IMPRINTED , ENGRAVED , OR OTHERWISE17
REPRODUCED UPON EACH OF ITS BONDS ISSUED UNDER THIS SECTION .18
BONDS ISSUED UNDER THIS SECTION SHALL BE EXECUTED IN THE NAME OF19
THE FINANCING ENTITY BY THE MANUAL OR FACSIMILE SIGNATURES OF20
OFFICIALS THAT MAY BE DESIGNATED IN SAID RESOLUTION OR TRUST21
AGREEMENT, INDENTURE, OR MORTGAGE ; EXCEPT THAT AT LEAST ONE22
SIGNATURE ON EACH BOND SHALL BE A MANUAL SIGNATURE. COUPONS, IF23
ANY, ATTACHED TO THE BONDS SHALL BEAR THE FACSIMILE SIGNATURE OF24
THE OFFICIAL OF THE FINANCING ENTITY THAT MAY BE DESIGNATED AS25
PROVIDED IN THIS SUBSECTION (7). SAID RESOLUTION OR TRUST26
AGREEMENT, INDENTURE , OR MORTGAGE MAY PROVIDE FOR THE27
HB26-1065-40-
AUTHENTICATION OF THE PERTINENT BONDS BY THE TRUSTEE.1
(8) B ONDS ISSUED UNDER THIS SECTION MAY BE SOLD BY THE2
FINANCING ENTITY IN A MANNER AND FOR A PRICE AS THE FI NANCING3
ENTITY, IN ITS DISCRETION , MAY DETERMINE , AT PAR , BELOW PAR , OR4
ABOVE PAR , AT PRIVATE SALE OR AT PUBLIC SALE AFTER NOTICE IS5
PUBLISHED PRIOR TO THE SALE IN A NEWSPAPER HAVING GENERAL6
CIRCULATION IN THE MUNICIPALITY , OR IN ANOTHER MEDIUM OF7
PUBLICATION AS THE FINANCING ENTITY MAY DEEM APPROPRIATE, OR MAY8
BE EXCHANGED BY THE FINANCING ENTITY FOR OTHER BONDS ISSUED BY9
IT UNDER THIS SECTION.10
(9) IF ANY OF THE OFFICIALS OF THE FINANCING ENTITY WHOSE11
SIGNATURES OR FACSIMILE SIGNATURES APPEAR ON ANY OF ITS BONDS OR12
COUPONS ISSUED UNDER THIS SECTION CEASE TO BE OFFICIALS BEFORE THE13
DELIVERY OF THE BONDS, THE SIGNATURES OR FACSIMILE SIGNATURES, AS14
THE CASE MAY BE , ARE NEVERTHELESS VALID AND SUFFICIENT FOR ALL15
PURPOSES, THE SAME AS IF THE OFFICIALS HAD REMAINED IN OFFICE UNTIL16
THE DELIVERY.17
(10) N OTWITHSTANDING ANY OTHER PROVISION OF LAW , ANY18
BONDS THAT ARE ISSUED PURSUANT TO THIS SECTION ARE FULLY19
NEGOTIABLE.20
(11) I N ANY SUIT , ACTION , OR PROCEEDING INVOLVING THE21
VALIDITY OR ENFORCEABILITY OF ANY A BOND THAT IS ISSUED UNDER THIS22
SECTION OR THE SECURITY OF SUCH A BOND , ANY BOND RECITING IN23
SUBSTANCE THAT IT HAS BEEN ISSUED BY THE FINANCING ENTITY IN24
CONNECTION WITH A TRANSIT INVESTMENT PROJECT OR ANY ACTIVITY OR25
OPERATION OF THE FINANCING ENTITY UNDER THIS PART 4 IS26
CONCLUSIVELY DEEMED TO HAVE BEEN ISSUED FOR SUCH PURPOSES; AND27
HB26-1065-41-
SUCH TRANSIT INVESTMENT PROJECT OR SUCH OPERATION OR ACTIVITY, AS1
THE CASE MAY BE, IS CONCLUSIVELY DEEMED TO HAVE BEEN INITIATED ,2
PLANNED, LOCATED, UNDERTAKEN, ACCOMPLISHED, AND CARRIED OUT IN3
ACCORDANCE WITH THIS PART 4. ANY SUIT , ACTION , OR PROCEEDING4
INVOLVING THE VALIDITY OR ENFORCEABILITY OF ANY BOND THAT IS5
ISSUED UNDER THIS SECTION OR THE SECURITY OF SUCH A BOND SHALL BE6
COMMENCED WITHIN THIRTY DAYS OF THE AUTHORIZATION OF THE BOND7
OR BONDS BY THE FINANCING ENTITY.8
(12) PENDING THE PREPARATION OF ANY DEFINITIVE BONDS UNDER9
THIS SECTION, A FINANCING ENTITY MAY ISSUE ITS INTERIM CERTIFICATES10
OR RECEIPTS OR ITS TEMPORARY BONDS , WITH OR WITHOUT COUPONS ,11
EXCHANGEABLE FOR DEFINITIVE BONDS WHEN THE LATTER HAVE BEEN12
EXECUTED AND ARE AVAILABLE FOR DELIVERY.13
(13) A PERSON RETAINED OR EMPLOYED BY A FINANCING ENTITY14
AS AN ADVISOR OR A CONSULTANT FOR THE PURPOSE OF RENDERING15
FINANCIAL ADVICE AND ASSISTANCE MAY PURCHASE OR PARTICIPATE IN16
THE PURCHASE OR DISTRIBUTION OF ITS BONDS WHEN THE BONDS ARE17
OFFERED AT PUBLIC OR PRIVATE SALE.18
(14) N O COMMISSIONER OR OTHER OFFICER OF A FINANCING19
ENTITY ISSUING BONDS UNDER THIS SECTION AND NO PERSON EXECUTING20
THE BONDS IS LIABLE PERSONALLY ON THE BONDS OR IS SUBJECT TO ANY21
PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE22
OF THE BONDS.23
(15) N O COMMISSIONER OR OTHER OFFICER OF A TRANSIT24
INVESTMENT AUTHORITY ISSUING BONDS PURSUANT TO THIS PART 4 AND25
NO PERSON EXECUTING THE BONDS IS LIABLE PERSONALLY ON THE BONDS26
OR SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON27
HB26-1065-42-
OF THE ISSUANCE OF THE BONDS.1
(16) B ONDS THAT ARE ISSUED PURSUANT TO THIS PART 4 ARE2
DECLARED TO BE ISSUED FOR AN ESSENTIAL PUBLIC AND GOVERNMENTAL3
PURPOSE AND , TOGETHER WITH INTEREST THEREON AND INCOME4
THEREFROM, ARE EXEMPT FROM ALL STATE OF COLORADO TAXES.5
SECTION 3. In Colorado Revised Statutes, add 24-35-123 as6
follows:7
24-35-123. Transit investment area - authority of department8
- definitions.9
(1) IN ADDITION TO THE OTHER FUNCTIONS AND POWERS OF THE10
DEPARTMENT AND THE EXECUTIVE DIRECTOR PURSUANT TO THIS PART 1,11
THE DEPARTMENT SHALL:12
(a) E STABLISH AND DETERMINE THE BASE YEAR REVENUE FOR13
EACH TRANSIT INVESTMENT AREA;14
(b) C OLLECT, ACCOUNT FOR , AND REMIT TO THE APPLICABLE15
FINANCING ENTITY THE RELEVANT AMOUNT OF STATE SALES TAX16
INCREMENT REVENUE GENERATED WITHIN EACH TRANSIT INVESTMENT17
AREA;18
(c) SHARE DATA AS NECESSARY WITH THE COLORADO OFFICE OF19
ECONOMIC DEVELOPMENT IN CONNECTION WITH THE "TRANSIT20
INVESTMENT AREA ACT", PART 4 OF ARTICLE 46 OF THIS TITLE 24; AND21
(d) O THERWISE PERFORM THE FUNCTIONS REQUIRED OF THE22
DEPARTMENT IN THE WRITTEN NOTICE PROVIDED TO THE EXECUTIVE23
DIRECTOR IN CONNECTION WITH THE ESTABLISHMENT OF A FINANCING24
ENTITY OR TRANSIT INVESTMENT AREA.25
(2) THE EXECUTIVE DIRECTOR HAS THE AUTHORITY TO:26
(a) C REATE FORMS AND ADOPT RULES AS NECESSARY OR27
HB26-1065-43-
CONVENIENT TO IMPLEMENT THE DEPARTMENT'S RESPONSIBILITIES WITH1
RESPECT TO THE DETERMINATION OF BASE YEAR REVENUE , COLLECTION2
AND DISBURSEMENT OF STATE SALES TAX INCREMENT REVENUE , AND3
OTHER FUNCTIONS OF THE DEPARTMENT PURSUANT TO PART 4 OF ARTICLE4
46 OF THIS TITLE 24; AND5
(b) E NTER INTO CONTRACTS WITH FINANCING ENTITIES , IN THE6
MANNER PROVIDED FOR IN SECTION 24-35-110, REGARDING THE7
PERFORMANCE OF THE DEPARTMENT'S FUNCTIONS IN IMPLEMENTING PART8
4 OF ARTICLE 46 OF THIS TITLE 24.9
(3) ALL STATE SALES TAX INCREMENT REVENUE COLLECTED BY10
THE DEPARTMENT ON BEHALF OF A FINANCING ENTITY IS FOR ALL11
PURPOSES ASSIGNED TO , THE PROPERTY OF , AND THE REVENUE OF THE12
APPLICABLE FINANCING ENTITY AND IS NOT TO BE CONSTRUED OR TREATED13
FOR ANY PURPOSE AS REVENUE OR PROPERTY OF THE STATE.14
(4) IN COLLECTING AND DISBURSING STATE SALES TAX INCREMENT15
REVENUE AS PROVIDED IN THIS SECTION AND OTHERWISE PERFORMING ITS16
RESPONSIBILITIES PURSUANT TO PART 4 OF ARTICLE 46 OF THIS TITLE 24,17
THE DEPARTMENT SHALL ACT SOLELY AS A COLLECTING AGENT FOR A18
FINANCING ENTITY AND SHALL SEGREGATE IN A SEPARATE F UND ANY19
PORTION OF STATE SALES TAX INCREMENT REVENUE THAT IS DEDICATED20
TO THE FINANCING ENTITY BUT WILL NOT BE REMITTED TO THE FINANCING21
ENTITY IN THE IMMEDIATE FUTURE.22
(5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
REQUIRES:24
(a) "B ASE YEAR REVENUE " HAS THE MEANING SET FORTH IN25
SECTION 24-46-402 (2).26
(b) "D EPARTMENT" MEANS THE DEPARTMENT OF REVENUE27
HB26-1065-44-
CREATED IN SECTION 24-35-101.1
(c) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF2
THE DEPARTMENT.3
(d) "FINANCING ENTITY" HAS THE MEANING SET FORTH IN SECTION4
24-46-402 (10).5
(e) "STATE SALES TAX INCREMENT REVENUE" HAS THE MEANING6
SET FORTH IN SECTION 24-46-402 (16).7
(f) "TRANSIT INVESTMENT AREA" HAS THE MEANING SET FORTH IN8
SECTION 24-46-402 (19).9
SECTION 4. In Colorado Revised Statutes, add 24-48.5-136 as10
follows:11
24-48.5-136. Transit and housing investment zones map -12
transit and housing investment zone criteria - definitions.13
(1) ON OR BEFORE OCTOBER 30, 2026, THE COLORADO OFFICE OF14
ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE DEPARTMENT OF15
LOCAL AFFAIRS AND THE DEPARTMENT OF TRANSPORTATION , SHALL16
PUBLISH A TRANSIT AND HOUSING INVESTMENT ZONE MAP BASED ON THE17
CRITERIA FOR IDENTIFYING TRANSIT AND HOUSING INVESTMENT ZONES18
ESTABLISHED IN SUBSECTION (2) OF THIS SECTION.19
(2) THE DEPARTMENT SHALL DESIGNATE TRANSIT AND HOUSING20
INVESTMENT ZONES, FOR PURPOSES OF SUBSECTION (1) OF THIS SECTION,21
AND SHALL DO SO BASED ON THE LOCATION OF TRANSPORTATION22
FACILITIES AS IDENTIFIED IN A PUBLISHED TRANSIT PLAN AND MAY , IN23
CONSULTATION WITH LOCAL GOVERNMENTS AND TRANSIT AGENCIES, USE24
PREEXISTING ROUTES , MAPS , AND SCHEDULES TO INFORM THE25
DEPARTMENT'S DESIGNATION OF TRANSIT AND HOUSING INVESTMENT26
ZONES.27
HB26-1065-45-
(3) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
REQUIRES:2
(a) "PASSENGER RAIL STATION" HAS THE MEANING SET FORTH IN3
SECTION 32-22-102 (8).4
(b) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA5
WITHIN ONE AND ONE -HALF MILES OF A TRANSPORTATION FACILITY AS6
IDENTIFIED BY THE DEPARTMENT IN THE TRANSIT AND HOUSING7
INVESTMENT ZONES MAP CREATED PURSUANT TO SUBSECTION (1) OF THIS8
SECTION.9
(c) "TRANSIT STATION" HAS THE MEANING SET FORTH IN SECTION10
24-46-402 (22).11
(d) "TRANSPORTATION FACILITY" MEANS A TRANSIT STATION OR12
PASSENGER RAIL STATION.13
SECTION 5. In Colorado Revised Statutes, 29-1-102, amend14
(13) as follows:15
29-1-102. Definitions.16
As used in this part 1, unless the context otherwise requires:17
(13) "Local government" means any authority, county,18
municipality, city and county, district, or other political subdivision of the19
state of Colorado; any institution, department, agency, or authority of any20
of the foregoing; and any other entity, organization, or corporation21
formed by intergovernmental agreement or other contract between or22
among any of the foregoing. The office of the county public trustee shall23
be deemed an agency of the county for the purposes of this part 1. "Local24
government" does not include the Colorado educational and cultural25
facilities authority, the university of Colorado hospital authority,26
collegeinvest, the Colorado health facilities authority, the Colorado27
HB26-1065-46-
housing and finance authority, the Colorado agricultural development1
authority, the Colorado sheep and wool authority, the Colorado beef2
council authority, the Colorado horse development authority, the building3
urgent infrastructure and leveraging dollars authority, the middle-income4
housing authority, the fire and police pension association, A TRANSIT5
INVESTMENT AUTHORITY, any public entity insurance or investment pool6
formed pursuant to state law, any county or municipal housing authority,7
any association of political subdivisions formed pursuant to section8
29-1-401, or any home rule city or town, home rule city and county, cities9
and towns operating under a territorial charter, school district, or local10
college district.11
SECTION 6. In Colorado Revised Statutes, add 30-31-116.5 as12
follows:13
30-31-116.5. Transit investment areas - definition.14
(1) A COUNTY REVITALIZATION AUTHORITY THAT IS DESIGNATED15
AS A FINANCING ENTITY, PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24,16
HAS ALL THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT PART 417
OF ARTICLE 46 OF TITLE 24, INCLUDING THE POWER TO RECEIVE STATE18
SALES TAX INCREMENT REVENUE GENERATED WITHIN AN APPROVED19
TRANSIT INVESTMENT AREA, AS DEFINED IN SECTION 24-46-402 (19), AND20
TO DISBURSE AND OTHERWISE USE THE REVENUE FOR ALL LAWFUL21
PURPOSES, INCLUDING FINANCING ELIGIBLE COSTS AND THE DESIGN ,22
CONSTRUCTION , MAINTENANCE , AND OPERATION OF ELIGIBLE23
IMPROVEMENTS, AS SUCH TERMS ARE DEFINED IN SECTION 24-46-402 OR24
OTHERWISE INCORPORATED INTO THE COLORADO ECONOMIC25
DEVELOPMENT COMMISSION'S CONDITIONS OF APPROVAL.26
(2) NOTWITHSTANDING SECTION 30-31-109 (8), AUTHORIZATION27
HB26-1065-47-
TO RECEIVE STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART1
4 OF ARTICLE 46 OF TITLE 24, IS NOT A SUBSTANTIAL MODIFICATION TO2
THE PLAN, AND CORRESPONDING CHANGES TO THE PLAN MAY BE MADE BY3
THE GOVERNING BODY OF THE AUTHORITY TO INCORPORATE THE USE OF4
STATE SALES TAX INCREMENT REVENUE WITHOUT THE REQUIREMENT OF5
SUBMISSION TO OR APPROVAL BY THE GOVERNING BODY OF THE COUNTY6
THAT HAS ESTABLISHED THE AUTHORITY.7
(3) A COUNTY REVITALIZATION AUTHORITY THAT RECEIVES STATE8
SALES TAX INCREMENT REVENUE, WHETHER PURSUANT TO DESIGNATION9
AS A FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24,10
OR PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH FINANCING11
ENTITY, SHALL NOT USE THE STATE SALES TAX INCREMENT REVENUE TO12
ACQUIRE PROPERTY THROUGH THE EXERCISE OF EMINENT DOMAIN.13
(4) N OTHING IN THIS SECTION OBVIATES OR OVERRIDES THE14
REQUIREMENTS FOR THE AUTHORIZATION OF A NEW COUNTY15
REVITALIZATION AUTHORITY PURSUANT TO THIS ARTICLE 31.16
(5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE17
REQUIRES, "STATE SALES TAX INCREMENT REVENUE " HAS THE MEANING18
SET FORTH IN SECTION 24-46-402 (16).19
SECTION 7. In Colorado Revised Statutes, add 31-25-117 as20
follows: 21
31-25-117. Transit investment areas - definition.22
(1) AN URBAN RENEWAL AUTHORITY THAT IS DESIGNATED AS A23
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24 HAS24
ALL OF THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT PART 4 OF25
ARTICLE 46 OF TITLE 24, INCLUDING THE POWERS TO RECEIVE STATE SALES26
TAX INCREMENT REVENUE GENERATED WITHIN AN APPROVED TRANSIT27
HB26-1065-48-
INVESTMENT AREA, AS DEFINED IN SECTION 24-46-402 (19), AND DISBURSE1
AND OTHERWISE USE SUCH REVENUE FOR ALL LAWFUL PURPOSES ,2
INCLUDING FINANCING OF ELIGIBLE COSTS AND THE DESIGN ,3
CONSTRUCTION , MAINTENANCE , AND OPERATION OF ELIGIBLE4
IMPROVEMENTS, AS SUCH TERMS ARE DEFINED IN SECTION 24-46-402, OR5
OTHERWISE INCORPORATED INTO THE COLORADO ECONOMIC6
DEVELOPMENT COMMISSION'S CONDITIONS OF APPROVAL.7
(2) NOTWITHSTANDING SECTION 31-25-107 (7), AUTHORIZATION8
TO RECEIVE STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART9
4 OF ARTICLE 46 OF TITLE 24, IS NOT A SUBSTANTIAL MODIFICATION TO10
THE PLAN AND CORRESPONDING CHANGES TO THE PLAN MAY BE MADE BY11
THE GOVERNING BODY OF THE AUTHORITY TO INCORPORATE THE USE OF12
STATE SALES TAX INCREMENT REVENUE WITHOUT THE REQUIREMENT OF13
SUBMISSION TO OR APPROVAL BY THE GOVERNING BODY OF A14
MUNICIPALITY THAT HAS ESTABLISHED THE AUTHORITY PURSUANT TO15
SECTION 31-25-104 (1).16
(3) AN URBAN RENEWAL AUTHORITY THAT RECEIVES STATE SALES17
TAX INCREMENT REVENUE , WHETHER PURSUANT TO DESIGNATION AS A18
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, OR19
PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH FINANCING20
ENTITY, SHALL NOT USE THE STATE SALES TAX INCREMENT REVENUE TO21
ACQUIRE PROPERTY THROUGH THE EXERCISE OF EMINENT DOMAIN.22
(4) N OTHING IN THIS SECTION OBVIATES OR OVERRIDES THE23
REQUIREMENTS FOR THE AUTHORIZATION OF A NEW URBAN RENEWAL24
AUTHORITY UNDER THIS PART 1.25
(5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE26
REQUIRES, "STATE SALES TAX INCREMENT REVENUE " HAS THE MEANING27
HB26-1065-49-
SET FORTH IN SECTION 24-46-402 (16).1
SECTION 8. In Colorado Revised Statutes, add 32-1-1010 as2
follows:3
32-1-1010. Transit investment areas - definition.4
(1) IN ADDITION TO THE POWERS SPECIFIED IN THIS PART 10, AND5
NOTWITHSTANDING ANY LIMITATION ON THE POWERS OF A METROPOLITAN6
DISTRICT OTHERWISE SPECIFIED IN THIS PART 10 OR IN THE METROPOLITAN7
DISTRICT'S SERVICE PLAN, ANY METROPOLITAN DISTRICT DESIGNATED AS8
AN APPROVED FINANCING ENTITY, PURSUANT TO PART 4 OF ARTICLE 46 OF9
TITLE 24, HAS ALL THE POWERS NECESSARY OR CONVENIENT TO CARRY10
OUT PART 4 OF ARTICLE 46 OF TITLE 24, INCLUDING THE POWER TO11
RECEIVE STATE SALES TAX INCREMENT REVENUE AND TO DISBURSE AND12
OTHERWISE USE SUCH REVENUE FOR ALL LAWFUL PURPOSES PURSUANT TO13
PART 4 OF ARTICLE 4 OF TITLE 24. LAWFUL PURPOSES INCLUDE THE14
FINANCING OF ELIGIBLE COSTS AND THE DESIGN , CONSTRUCTION ,15
MAINTENANCE, AND OPERATION OF ELIGIBLE IMPROVEMENTS AS DEFINED16
IN SECTION 24-46-402 (9) OR OTHERWISE INCORPORATED INTO THE17
COLORADO ECONOMIC DEVELOPMENT COMMISSION 'S CONDITIONS OF18
APPROVAL PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24.19
(2) NOTWITHSTANDING ANY PROVISION OF SECTION 32-1-207 OR20
OF THE METROPOLITAN DISTRICT 'S SERVICE PLAN , AUTHORIZATION TO21
RECEIVE STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART 4 OF22
ARTICLE 46 OF TITLE 24, IS NOT CONSIDERED A SUBSTANTIAL23
MODIFICATION TO THE PLAN AND CORRESPONDING CHANGES TO THE PLAN24
MAY BE MADE BY THE GOVERNING BODY TO INCORPORATE THE USE OF25
STATE SALES TAX INCREMENT REVENUE OF THE METROPOLITAN DISTRICT26
WITHOUT THE REQUIREMENT OF PETITION TO OR APPROVAL BY THE BOARD27
HB26-1065-50-
OF COUNTY COMMISSIONERS OR THE GOVERNING BODY OF THE1
MUNICIPALITY, AS APPLICABLE.2
(3) A METROPOLITAN DISTRICT RECEIVING STATE SALES TAX3
INCREMENT REVENUE , WHETHER PURSUANT TO DESIGNATION AS A4
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, OR5
PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH ENTITY, SHALL6
NOT USE THE STATE SALES TAX INCREMENT REVENUE TO ACQUIRE7
PROPERTY THROUGH THE EXERCISE OF EMINENT DOMAIN.8
(4) AS USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE9
REQUIRES, "STATE SALES TAX INCREMENT REVENUE " HAS THE MEANING10
SET FORTH IN SECTION 24-46-402 (16).11
SECTION 9. In Colorado Revised Statutes, 39-21-113, add (40)12
as follows:13
39-21-113. Reports and returns - rule - repeal.14
(40) (a) NOTWITHSTANDING THE CONFIDENTIALITY REQUIREMENTS15
IN THIS SECTION:16
(I) T HE EXECUTIVE DIRECTOR MAY PROVIDE THE COLORADO17
OFFICE OF ECONOMIC DEVELOPMENT WITH ANY INFORMATION OBTAINED18
PURSUANT TO THIS SECTION IN RELATION TO PART 4 OF ARTICLE 46 OF19
TITLE 24 AND, IN CONNECTION WITH PROVIDING THE INFORMATION, MAY20
ENTER INTO AN AGREEMENT WITH THE COLORADO OFFICE OF ECONOMIC21
DEVELOPMENT THAT PROVIDES FOR THE PAYMENT OF THE COSTS22
INCURRED IN CONNECTION WITH SUPPLYING THE INFORMATION AND23
PROVIDING FOR THE PERIODIC UPDATING OF THE INFORMATION SUPPLIED;24
AND25
(II) BOTH THE EXECUTIVE DIRECTOR AND THE COLORADO OFFICE26
OF ECONOMIC DEVELOPMENT MAY PROVIDE INFORMATION OBTAINED27
HB26-1065-51-
PURSUANT TO THIS SECTION IN RELATION TO PART 4 OF ARTICLE 46 OF1
TITLE 24 TO A THIRD-PARTY ANALYST.2
(b) ANY INFORMATION PROVIDED TO THE COLORADO OFFICE OF3
ECONOMIC DEVELOPMENT OR A THIRD-PARTY ADMINISTRATOR PURSUANT4
TO THIS SUBSECTION (40) IS CONFIDENTIAL, AND ALL EMPLOYEES OF THE5
COLORADO OFFICE OF ECONOMIC DEVELOPMENT AND THE THIRD -PARTY6
ANALYST ARE SUBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION (4)7
OF THIS SECTION AND THE PENALTIES SPECIFIED IN SUBSECTION (6) OF THIS8
SECTION.9
SECTION 10. In Colorado Revised Statutes, add part 57 to10
article 22 of title 39 as follows:11
PART 5712
COLORADO AFFORDABLE HOUSING IN13
TRANSIT AND HOUSING INVESTMENT ZONES14
TAX CREDIT15
39-22-5701. Tax preference performance statement - report.16
(1) I N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH17
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE18
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY19
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND20
DECLARES THAT THE PURPOSE OF THE TAX CREDIT PROVIDED IN THIS21
SECTION IS TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS BY22
SUPPORTING THE DEVELOPMENT OF AFFORDABLE HOUSING WITHIN23
TRANSIT AND HOUSING INVESTMENT ZONES.24
(2) T HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL25
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE26
SPECIFIED IN SUBSECTION (1) OF THIS SECTION BASED ON THE REPORT27
HB26-1065-52-
DESCRIBED IN SUBSECTION (3) OF THIS SECTION.1
(3) F OR EACH ALLOCATION YEAR , THE AUTHORITY SHALL , BY2
DECEMBER 31 OF THAT YEAR , PROVIDE A WRITTEN REPORT TO THE3
GENERAL ASSEMBLY AND MAKE THE REPORT AVAILABLE TO THE PUBLIC.4
WITH RESPECT TO TAX CREDITS ALLOCATED PURSUANT TO THIS PART 57,5
THE REPORT MUST:6
(a) S PECIFY THE TOTAL NUMBER OF QUALIFIED DEVELOPMENTS7
AND UNITS SUPPORTED BY EACH DEVELOPMENT IN CONNECTION WITH THE8
CREDIT;9
(b) D ESCRIBE EACH QUALIFIED DEVELOPMENT IN CONNECTION10
WITH WHICH THE AUTHORITY ISSUED CREDITS , INCLUDING IN THAT11
DESCRIPTION THE GEOGRAPHIC LOCATION OF THE DEVELOPMENT , THE12
HOUSEHOLD TYPE AND ANY SPECIFIC DEMOGRAPHIC INFORMATION13
AVAILABLE ABOUT RESIDENTS INTENDED TO BE SERVED BY THE14
DEVELOPMENT, THE INCOME LEVELS INTENDED TO BE SERVED BY THE15
DEVELOPMENT, AND THE RENTS OR SET -ASIDES AUTHORIZED FOR EACH16
DEVELOPMENT; AND17
(c) PROVIDE HOUSING MARKET AND DEMOGRAPHIC INFORMATION18
THAT DEMONSTRATES HOW THE QUALIFIED DEVELOPMENTS SUPPORTED BY19
CREDITS ARE ADDRESSING THE NEED FOR AFFORDABLE HOUSING WITHIN20
THE COMMUNITIES THEY ARE INTENDED TO SERVE AS WELL AS21
INFORMATION ABOUT ANY REMAINING DISPARITIES IN THE AFFORDABILITY22
OF HOUSING WITHIN THOSE COMMUNITIES.23
39-22-5702. Definitions.24
AS USED IN THIS PART 57, UNLESS THE CONTEXT OTHERWISE25
REQUIRES:26
(1) "ALLOCATION CERTIFICATE" MEANS A STATEMENT ISSUED BY27
HB26-1065-53-
THE AUTHORITY CERTIFYING THAT A GIVEN DEVELOPMENT QUALIFIES FOR1
THE CREDIT AND SPECIFYING THE AMOUNT OF THE CREDIT ALLOWED.2
(2) "ALLOCATION PLAN" MEANS AN ALLOCATION PLAN ADOPTED3
BY THE AUTHORITY THAT GOVERNS THE SELECTION CRITERIA AND4
PREFERENCES FOR ALLOCATING THE TAX CREDIT ALLOWED PURSUANT TO5
THIS PART 57.6
(3) "AUTHORITY" MEANS THE COLORADO HOUSING AND FINANCE7
AUTHORITY CREATED IN SECTION 29-4-704.8
(4) "COMPLIANCE PERIOD" MEANS THE PERIOD OF FIFTEEN YEARS9
BEGINNING WITH THE FIRST TAXABLE YEAR OF A CREDIT PERIOD.10
(5) "C REDIT" MEANS THE COLORADO AFFORDABLE HOUSING IN11
TRANSIT AND HOUSING INVESTMENT ZONES TAX CREDIT ALLOWED12
PURSUANT TO THIS PART 57.13
(6) "C REDIT PERIOD " MEANS THE PERIOD OF SIX INCOME TAX14
YEARS BEGINNING WITH THE INCOME TAX YEAR IN WHICH A QUALIFIED15
DEVELOPMENT IS PLACED IN SERVICE . IF A QUALIFIED DEVELOPMENT IS16
COMPRISED OF MORE THAN ONE BUILDING, THE DEVELOPMENT IS DEEMED17
TO BE PLACED IN SERVICE IN THE INCOME TAX YEAR DURING WHICH THE18
LAST BUILDING OF THE QUALIFIED DEVELOPMENT IS PLACED IN SERVICE.19
(7) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.20
(8) "F EDERAL TAX CREDIT " MEANS THE FEDERAL LOW -INCOME21
HOUSING TAX CREDIT PROVIDED BY SECTION 42 OF THE INTERNAL22
REVENUE CODE.23
(9) "Q UALIFIED BASIS " MEANS THE QUALIFIED BASIS OF THE24
DEVELOPMENT AS DETERMINED PURSUANT TO SECTION 42 OF THE25
INTERNAL REVENUE CODE.26
(10) "Q UALIFIED DEVELOPMENT " MEANS A HOUSING27
HB26-1065-54-
DEVELOPMENT THAT IS LOCATED IN A TRANSIT AND HOUSING INVESTMENT1
ZONE WITHIN THE STATE AND IS DETERMINED BY THE AUTHORITY TO MEET2
THE CRITERIA ESTABLISHED IN THE ALLOCATION PLAN , INCLUDING3
PROVIDING THE REQUIRED NUMBER OF AFFORDABLE HOUSING UNITS.4
(11) "QUALIFIED TAXPAYER" MEANS AN INDIVIDUAL, A PERSON, A5
FIRM, A CORPORATION, OR ANY OTHER ENTITY THAT OWNS AN INTEREST,6
DIRECT OR INDIRECT, IN A QUALIFIED DEVELOPMENT AND IS SUBJECT TO7
THE TAXES IMPOSED BY THIS ARTICLE 22.8
(12) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA9
DESIGNATED BY THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT IN10
THE TRANSIT AND HOUSING INVESTMENT ZONE MAP PURSUANT TO SECTION11
24-48.5-136.12
39-22-5703. Credit against tax - affordable housing located in13
a transit and housing investment zone.14
(1) FOR INCOME TAX YEARS DURING THE CREDIT PERIOD, THERE IS15
ALLOWED TO ANY QUALIFIED TAXPAYER A CREDIT WITH RESPECT TO THE16
INCOME TAXES IMPOSED BY THIS ARTICLE 22 IN THE AMOUNT DETERMINED17
BY THE AUTHORITY PURSUANT TO THIS PART 57.18
(2) (a) DURING EACH CALENDAR YEAR OF THE PERIOD BEGINNING19
ON JANUARY 1, 2027, AND ENDING ON DECEMBER 31, 2033, THE20
AUTHORITY MAY ALLOCATE A CREDIT, THE FULL AMOUNT OF WHICH MAY21
BE CLAIMED AGAINST THE TAXES IMPOSED BY THIS ARTICLE 22, FOR EACH22
TAXABLE YEAR OF THE SIX -YEAR CREDIT PERIOD . DURING EACH23
CALENDAR YEAR OF THE PERIOD BEGINNING ON JANUARY 1, 2027, AND24
ENDING ON DECEMBER 31, 2033, THE AGGREGATE AMOUNT OF THE25
CREDITS ALLOCATED BY THE AUTHORITY SHALL NOT EXCEED EIGHT26
MILLION THREE HUNDRED THIRTY -THREE THOUSAND THREE HUNDRED27
HB26-1065-55-
THIRTY-THREE DOLLARS.1
(b) THE AUTHORITY MAY ALSO ALLOCATE NO MORE THAN HALF OF2
ANY UNALLOCATED CREDITS FROM THE IMMEDIATELY PRECEDING3
CALENDAR YEAR, AND THESE UNALLOCATED CREDITS ARE NOT INCLUDED4
IN THE ANNUAL DOLLAR LIMITS SPECIFIED IN SUBSECTION (2)(a) OF THIS5
SECTION.6
(c) T HE AGGREGATE AMOUNT OF CREDITS ALLOCATED BY THE7
AUTHORITY IN EACH OF THE 2027 THROUGH 2033 CALENDAR YEARS MUST8
NOT EXCEED THE AGGREGATE AMOUNT OF ANY CREDIT RECAPTURED OR9
OTHERWISE RETURNED TO THE AUTHORITY IN THE CALENDAR YEAR.10
(3) THE AUTHORITY MAY ALLOCATE CREDITS TO AN OWNER OF A11
QUALIFIED DEVELOPMENT BY ISSUING TO THE OWNER AN ALLOCATION12
CERTIFICATE. THE AUTHORITY MAY DETERMINE THE TIME AT WHICH THE13
ALLOCATION CERTIFICATE IS ISSUED. THE CREDIT MUST BE IN AN AMOUNT14
DETERMINED BY THE AUTHORITY , SUBJECT TO THE FOLLOWING15
GUIDELINES:16
(a) T HE CREDIT MUST BE NECESSARY FOR THE FINANCIAL17
FEASIBILITY OF THE DEVELOPMENT; AND18
(b) T HE AGGREGATE SUM OF CREDITS ALLOCATED ANNUALLY19
MUST NOT EXCEED THE LIMITS SET FORTH IN SUBSECTION (2) OF THIS20
SECTION.21
(4) IF AN OWNER OF A QUALIFIED DEVELOPMENT RECEIVING AN22
ALLOCATION OF A CREDIT IS A PARTNERSHIP, LIMITED LIABILITY COMPANY,23
S CORPORATION, OR SIMILAR PASS -THROUGH ENTITY, THE OWNER MAY24
ALLOCATE THE CREDIT AMONG ITS PARTNERS, SHAREHOLDERS, MEMBERS,25
OR OTHER QUALIFIED TAXPAYERS IN ANY MANNER AGREED TO BY SUCH26
PERSONS REGARDLESS OF WHETHER ANY SUCH PERSONS ARE DEEMED A27
HB26-1065-56-
PARTNER FOR FEDERAL INCOME TAX PURPOSES . THE OWNER SHALL1
CERTIFY TO THE DEPARTMENT THE AMOUNT OF CREDIT ALLOCATED TO2
EACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER.3
EACH PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER4
ADMITTED AS A PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED5
TAXPAYER OF THE OWNER PRIOR TO THE FILING OF A TAX RETURN6
CLAIMING THE CREDIT IS ALLOWED TO CLAIM SUCH AMOUNT SUBJECT TO7
ANY RESTRICTIONS SET FORTH IN THIS PART 57.8
(5) (a) T HE AUTHORITY MAY ALLOCATE CREDITS TO A9
GOVERNMENTAL OR QUASI -GOVERNMENTAL ENTITY , INCLUDING THE10
MIDDLE-INCOME HOUSING AUTHORITY CREATED IN SECTION 29-4-1104,11
WITH RESPECT TO A QUALIFIED DEVELOPMENT THAT IS OWNED BY SUCH12
ENTITY.13
(b) (I) A GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY MAY14
TRANSFER CREDITS THAT THE AUTHORITY HAS ALLOCATED TO IT15
PURSUANT TO THIS SUBSECTION (5) TO AN INDIVIDUAL , PERSON , FIRM,16
CORPORATION, OR OTHER ENTITY SUBJECT TO THE TAXES IMPOSED BY THIS17
ARTICLE 22.18
(II) A GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY THAT19
TRANSFERS A CREDIT PURSUANT TO SUBSECTION (5)(b)(I) OF THIS SECTION20
SHALL INVEST IN THE RELEVANT QUALIFIED DEVELOPMENT ANY21
COMPENSATION RECEIVED IN CONNECTION WITH THE TRANSFER MADE22
PURSUANT TO SUBSECTION (5)(b)(I) OF THIS SECTION AND SHALL NOTIFY23
THE DEPARTMENT OF THE IDENTITY OF THE TRANSFEREE.24
(III) A TRANSFEREE TO WHICH A CREDIT IS TRANSFERRED BY A25
GOVERNMENTAL OR QUASI -GOVERNMENTAL ENTITY PURSUANT TO THIS26
SUBSECTION (5)(b) IS ENTITLED TO CLAIM THE CREDIT IN THE SAME27
HB26-1065-57-
MANNER AND SUBJECT TO THE SAME CONDITIONS AND ALLOCATION1
RIGHTS AS AN OWNER OF A QUALIFIED DEVELOPMENT TO WHICH THE2
AUTHORITY HAS ALLOCATED A CREDIT PURSUANT TO SUBSECTION (3) OF3
THIS SECTION.4
(c) (I) C REDITS THAT THE AUTHORITY HAS ALLOCATED TO A5
GOVERNMENTAL OR QUASI -GOVERNMENTAL ENTITY PURS UANT TO6
SUBSECTION (5)(a) OF THIS SECTION OR A CREDIT THAT A GOVERNMENTAL7
OR QUASI-GOVERNMENTAL ENTITY TRANSFERS PURSUANT TO SUBSECTION8
(5)(b) OF THIS SECTION ARE SUBJECT TO RECAPTURE PURSUANT TO9
SECTION 39-22-5704.10
(II) I F A CREDIT TRANSFERRED BY A GOVERNMENTAL OR11
QUASI-GOVERNMENTAL ENTITY IS RECAPTURED PURSUANT TO SECTION12
39-22-5704, THE TRANSFEREE MUST INCREASE THE TRANSFEREE'S STATE13
INCOME TAX LIABILITY PURSUANT TO SECTION 39-22-5704 IN THE MANNER14
AND TO THE SAME EXTENT AS A PARTNER , SHAREHOLDER, MEMBER, OR15
OTHER QUALIFIED TAXPAYER ALLOCATED A CREDIT PURSUANT TO SECTION16
39-22-5703 (4).17
(6) NO CREDIT SHALL BE ALLOCATED PURSUANT TO THIS PART 5718
UNLESS THE QUALIFIED DEVELOPMENT IS THE SUBJECT OF A RECORDED19
DEED RESTRICTION REQUIRING THE DEVELOPMENT TO BE MAINTAINED AND20
OPERATED AS A QUALIFIED DEVELOPMENT, AND IS IN ACCORDANCE WITH21
THE ACCESSIBILITY AND ADAPTABILITY REQUIREMENTS OF THE FEDERAL22
TAX CREDITS AND TITLE VIII OF THE "CIVIL RIGHTS ACT OF 1968", AS23
AMENDED BY THE "FAIR HOUSING AMENDMENTS ACT OF 1988", 42 U.S.C.24
SEC. 3601 ET SEQ ., FOR A PERIOD OF FIFTEEN INCOME TAX YEARS , OR A25
LONGER PERIOD AS MAY BE AGREED TO BETWEEN THE AUTHORITY AND26
THE OWNER, BEGINNING WITH THE FIRST TAXABLE YEAR OF THE CREDIT27
HB26-1065-58-
PERIOD UNLESS CORRECTED WITHIN THE TIME THAT IS APPLICABLE TO1
DEVELOPMENTS RECEIVING FEDERAL TAX CREDITS PURSUANT TO SECTION2
42(h)(6)(J) OF THE INTERNAL REVENUE CODE AS APPLICABLE TO THE3
COVENANT DESCRIBED IN THIS SUBSECTION (6).4
(7) THE ALLOCATED CREDIT AMOUNT MAY BE TAKEN AGAINST THE5
TAXES IMPOSED BY THIS ARTICLE 22 FOR EACH INCOME TAX YEAR OF THE6
CREDIT PERIOD AS SET FORTH IN SUBSECTION (2) OF THIS SECTION . ANY7
AMOUNT OF CREDIT THAT EXCEEDS THE TAX DUE FOR AN INCOME TAX8
YEAR MAY BE CARRIED FORWARD AS A TAX CREDIT AGAINST THE INCOME9
TAX LIABILITY FOR THE THREE SUBSEQUENT TAX YEARS AND MUST BE10
APPLIED FIRST TO THE EARLIEST YEARS POSSIBLE . ANY AMOUNT OF THE11
CREDIT THAT IS NOT USED MUST NOT BE REFUNDED TO THE TAXPAYER.12
(8) U NLESS OTHERWISE PROVIDED IN THIS PART 57 OR THE13
CONTEXT CLEARLY REQUIRES OTHERWISE , THE AUTHORITY SHALL14
DETERMINE ELIGIBILITY FOR A CREDIT AND ALLOCATE CREDITS IN15
ACCORDANCE WITH THE STANDARDS AND REQUIREMENTS SET FORTH IN16
THE ALLOCATION PLAN; HOWEVER, THE AUTHORITY SHALL ADMINISTER17
THE CREDIT ALLOWED PURSUANT TO THIS PART 57 CONSISTENTLY WITH18
THE CREDIT PURSUANT TO PART 21 OF THIS ARTICLE 22 EXCEPT TO THE19
EXTENT THE ALLOCATION PLAN IS INCONSISTENT WITH PART 21 OF THIS20
ARTICLE 22, IN WHICH CASE THE ALLOCATION PLAN CONTROLS .21
NOTWITHSTANDING THE FOREGOING, ANY COMBINATION OF FEDERAL AND22
STATE CREDITS, OR STANDALONE AMOUNT OF STATE CREDITS, ALLOWED23
MUST BE THE LEAST AMOUNT NECESSARY TO ENSURE THE FINANCIAL24
FEASIBILITY OF A QUALIFIED DEVELOPMENT.25
39-22-5704. Recapture.26
(1) A S OF THE LAST DAY OF ANY TAXABLE YEAR DURING THE27
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COMPLIANCE PERIOD , IF THE AMOUNT OF THE QUALIFIED BASIS OF A1
QUALIFIED DEVELOPMENT WITH RESPECT TO A TAXPAYER IS LESS THAN2
THE AMOUNT OF THE QUALIFIED BASIS AS OF THE LAST DAY OF THE PRIOR3
TAXABLE YEAR, THEN THE AMOUNT OF THE TAXPAYER 'S STATE INCOME4
TAX LIABILITY FOR THAT TAXABLE YEAR MUST BE INCREASED BY THE5
CREDIT RECAPTURE AMOUNT.6
(2) F OR PURPOSES OF SUBSECTION (1) OF THIS SECTION , THE7
CREDIT RECAPTURE AMOUNT IS AN AMOUNT EQUAL TO THE AGGREGATE8
DECREASE IN THE CREDIT ALLOWED TO THE TAXPAYER PURSUANT TO THIS9
PART 57 FOR ALL PRIOR TAXABLE YEARS THAT WOULD HAVE RESULTED IF10
THE ACCELERATED PORTION OF THE CREDIT ALLOWABLE BY REASON OF11
THIS PART 57 WAS NOT ALLOWED FOR ALL PRIOR TAXABLE YEARS WITH12
RESPECT TO THE REDUCED AMOUNT OF QUALIFIED BASIS DESCRIBED IN13
SUBSECTION (1) OF THIS SECTION.14
(3) F OR PURPOSES OF SUBSECTION (2) O F T H I S S E C T I O N, THE15
ACCELERATED PORTION OF THE CREDIT FOR THE PRIOR TAXABLE YEARS16
WITH RESPECT TO ANY AMOUNT OF QUALIFIED BASIS IS THE DIFFERENCE17
BETWEEN:18
(a) THE AGGREGATE AMOUNT OF THE CREDIT ALLOWED PURSUANT19
TO THIS PART 57, NOTWITHSTANDING THIS SUBSECTION (3), FOR THE YEARS20
WITH RESPECT TO THE QUALIFIED BASIS; AND21
(b) T HE AGGREGATE AMOUNT OF THE CREDIT THAT WOULD BE22
ALLOWED PURSUANT TO THIS PART 57 FOR THE YEARS WITH RESPECT TO23
THE QUALIFIED BASIS IF THE AGGREGATE CREDIT THAT WOULD HAVE BEEN24
ALLOWABLE, BUT FOR THIS SUBSECTION (3), FOR THE ENTIRE COMPLIANCE25
PERIOD WERE ALLOWABLE RATABLY OVER FIFTEEN YEARS.26
(4) IN THE EVENT THAT RECAPTURE OF ANY CREDIT IS REQUIRED27
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IN ANY TAX YEAR, THE RETURN SUBMITTED FOR THAT TAX YEAR TO THE1
DEPARTMENT SHALL INCLUDE THE PROPORTION OF CREDIT REQUIRED TO2
BE RECAPTURED , THE IDENTITY OF EACH TAXPAYER SUBJECT TO THE3
RECAPTURE, AND THE AMOUNT OF CREDIT PREVIOUSLY ALLOCATED TO THE4
TAXPAYER.5
(5) NOTWITHSTANDING SUBSECTION (1) OF THIS SECTION, CREDITS6
ISSUED PURSUANT TO THIS PART 57 MUST NOT BE RECAPTURED IF A7
QUALIFIED DEVELOPMENT, AFTER THE INITIAL AWARD OF CREDITS, CEASES8
BEING LOCATED IN A TRANSIT AND HOUSING INVESTMENT ZONE.9
39-22-5705. Filing requirements.10
AN OWNER OF A QUALIFIED DEVELOPMENT TO WHICH A CREDIT HAS11
BEEN ALLOCATED AND EACH QUALIFIED TAXPAYER TO WHICH THE OWNER12
HAS ALLOCATED A PORTION OF SAID CREDIT , IF ANY , SHALL FILE WITH13
THEIR STATE INCOME TAX RETURN A COPY OF THE ALLOCATION14
CERTIFICATE ISSUED BY THE AUTHORITY WITH RESPECT TO THE15
DEVELOPMENT AND A COPY OF THE OWNER 'S CERTIFICATION TO THE16
DEPARTMENT AS TO THE ALLOCATION OF THE CREDIT AMONG THE17
QUALIFIED TAXPAYERS HAVING OWNERSHIP INTERESTS IN THE18
DEVELOPMENT.19
39-22-5706. Parallel credits - insurance premium taxes -20
definition.21
(1) ANY TAXPAYER WHO IS SUBJECT TO THE TAX ON INSURANCE22
PREMIUMS ESTABLISHED BY SECTIONS 10-3-209, 10-5-111, AND 10-6-12823
AND THEREFORE EXEMPT FROM THE PAYMENT OF INCOME TAX AND WHO24
IS OTHERWISE ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS PART 5725
MAY CLAIM THE CREDIT AND CARRY THE CREDIT FORWARD AGAINST THE26
INSURANCE PREMIUM TAX ON ITS CALENDAR QUARTER ESTIMATED TAX27
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PAYMENTS MADE IN ACCORDANCE WITH SECTION 10-3-209 TO THE SAME1
EXTENT AS THE TAXPAYER WOULD HAVE BEEN ABLE TO CLAIM OR CARRY2
FORWARD THE CREDIT OR REFUND AGAINST INCOME TAX . ALL OTHER3
PROVISIONS OF THIS PART 57 WITH RESPECT TO THE CREDIT , INCLUDING4
THE AMOUNT , ALLOCATION, AND RECAPTURE OF THE CREDIT AND THE5
YEARS FOR WHICH THE CREDIT MAY BE CLAIMED , APPLY TO A CREDIT6
CLAIMED PURSUANT TO THIS SECTION.7
(2) F OR PURPOSES OF ADMINISTERING THIS SECTION , ANY8
REFERENCE IN THIS ARTICLE 22 TO "INCOME TAX YEAR" MEANS CALENDAR9
YEAR.10
39-22-5707. Compliance monitoring.11
THE AUTHORITY, IN CONSULTATION WITH THE DEPARTMENT, SHALL12
MONITOR AND OVERSEE COMPLIANCE WITH THIS PART 57 AND SHALL13
REPORT SPECIFIC OCCURRENCES OF NONCOMPLIANCE TO THE14
DEPARTMENT.15
39-22-5708. Repeal.16
THIS PART 57 IS REPEALED, EFFECTIVE DECEMBER 31, 2063.17
SECTION 11. In Colorado Revised Statutes, 39-26-901, amend18
(4)(b) and (4)(c); and add (4)(d) as follows:19
39-26-901. Temporary adjustment of rates of state sales and20
use taxes - refund of excess state revenues - legislative declaration -21
definition - repeal.22
(4) Any temporary state sales and use tax rate reduction pursuant23
to subsection (1) of this section does not affect the calculation of the24
amount of:25
(b) The state sales tax increment revenue for regional tourism26
zones in accordance with part 3 of article 46 of title 24; or27
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(c) The aviation fund created in section 43-10-109; OR1
(d) THE STATE SALES TAX INCREMENT REVENUE FOR TRANSIT AND2
HOUSING INVESTMENT AREAS IN ACCORDANCE WITH PART 4 OF ARTICLE 463
OF TITLE 24.4
SECTION 12. Safety clause. The general assembly finds,5
determines, and declares that this act is necessary for the immediate6
preservation of the public peace, health, or safety or for appropriations for7
the support and maintenance of the departments of the state and state8
institutions.9
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