Transportation Funding Adjustments

HOUSE BILL 26-1430
BY REPRESENTATIVE(S) Boesenecker and Sirota, Bacon, Camacho,
Clifford, Duran, Froelich, Garcia, Lieder, Lindsay, McCormick, Nguyen,
Smith, Woodrow, Zokaie, McCluskie, Jackson, Ricks, Story, Titone;
also SENATOR(S) Lindstedt and Amabile, Ball, Benavidez, Hinrichsen,
Kipp, Wallace, Coleman.
CONCERNING ADJUSTMENTS TO TRANSPORTATION FUNDING.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Short title. The short title of this act is the "Colorado
Budget Protection Act".
SECTION 2. Legislative declaration. (1) The general assembly
finds and declares that:
(a) A proposed initiative for the 2026 general election could make
the state's already difficult-to-balance budget even harder to balance;
(b) A response to this proposed initiative is necessary to avoid
reductions of up to seven hundred million dollars in appropriations for
critical state services including K-12 public education, health care, and
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
higher education;
( c) These reduced appropriations could necessitate both a new
budget stabilization factor and increased higher education tuition; and
( d) The state has taken unprecedented steps over the last seven years
to increase funding for transportation programs and fully supports the need
for sustainable transportation investment, so long as that investment does
not come at the expense of critical state services for those ranging from
young children to elderly adults.
(2) Therefore, the general assembly finds and declares that, if the
voters approve a proposed initiative that would direct additional general
fund money to transportation, this act will lower the gasoline excise tax, the
special fuel excise tax, and the road usage fee to ensure that state
transportation funding is not increased at the expense of critical state
services that are funded by general fund money.
SECTION 3. In Colorado Revised Statutes, 24-75-219, amend
(7)( d)(II) as follows:
24-75-219. Transfers - transportation - capital construction -
definitions.
(7) In addition to any other transfers required by this section:
( d) (II) On July 1, 2026, the state treasurer shall transfer fifty million
five hundred thousand dollars from the general fund to the state highway
fund;
SECTION 4. In Colorado Revised Statutes, 24-75-219, amend as
amended by House Bill 26-1289 (7)(d)(II) as follows:
24-75-219. Transfers - transportation - capital construction -
definitions.
(7) In addition to any other transfers required by this section:
(d) (II) On July 1, 2026, the state treasurer shall transfer forty-five
million six hundred thousand FIVE HUNDRED THOUSAND dollars from the
PAGE 2-HOUSE BILL 26-1430
general fund to the state highway fund;
SECTION 5. In Colorado Revised Statutes, 24-75-219, amend
(7)(d)(III) and (7)(e); and add (7)(d)(Il.5) and (7)(d)(Ill.5) as follows:
24-75-219. Transfers - transportation - capital construction -
definitions.
(7) In addition to any other transfers required by this section:
(d) (11.5) ON JANUARY 1, 2027, OR AS SOON AS POSSIBLE
THEREAFTER, THE ST ATE TREASURER SHALL TRANSFER FIFTY MILLION
DOLLARS FROM THE SUPPORT ROAD TRANSPORTATION FUND CREATED IN
SECTION 43-4-1601 TO THE STATE HIGHWAY FUND.
(III) On each July 1 from July 1, 2027, through July 1, 2031, JULY
1, 2030, the state treasurer shall transfer one hundred million dollars from
the general fund SUPPORT ROAD TRANSPORTATION FUND CRE A TED IN
SECTION 43-4-1601 to the state highway fund; and
(111.5) ON JULY 1, 2031, THE STATE TREASU RE R SHALL TRANSFER
ONE HUNDRED MILLION DOLLARS FROM THE GENERAL FUND TO THE STATE
HIGHWAY FUND; AND
( e) The department of transportation shall expend ten million dollars
of each transfer from the general fund to the state highway fund made
pursuant to subsection (7)( d)(I) (7)(d)(II), 01 (7)(d)(III) of this section from
July 1, 2025, tht ough July 1, 2028, solely to mitigate the environmental and
health impacts of increased air pollution from motor vehicle emissions in
nonattainment areas by funding projects that reduce vehicle miles traveled
or that directly reduce air pollution.
SECTION 6. In Colorado Revised Statutes, 24-75-219, amend
(7)(e); amend as amended by House Bill 26-1289 (7)(d)(III); and add
(7)(d)(II.5) and (7)(d)(Ill.5) as follows:
24-75-219. Transfers - transportation - capital construction -
definitions.
(7) In addition to any other transfers required by this section:
PAGE 3-HOUSE BILL 26-1430
(d) (11.5) ON JANUARY 1, 2027, OR AS SOON AS POSSIBLE
THEREAFTER, THE STATE TREASURER SHALL TRANSFER FIFTY MILLION
DOLLARS FROM THE SUPPORT ROAD TRANSPORTATION FUND CREATED IN
SECTION 43-4-1601 TO THE ST ATE HIGHWAY FUND.
(III) On each July 1 from July 1, 2027, through Jul, 1, 2031 JULY 1,
2030, the state treasurer shall transfer nineey-six million fom hundred
thousand ONE HUNDRED MILLION dollars from the general fund SUPPORT
ROAD TRANSPORTATION FUND CREATED IN SECTION 43-4-1601 to the state
highway fund; and
(lll.5) ON JULY 1, 2031, THE STATE TREASURER SHALL TRANSFER
ONE HUNDRED MILLION DOLLARS FROM THE GENERAL FUND TO THE STATE
HIGHWAY FUND; AND
( e) The department of transportation shall expend ten million dollars
of each transfer from the general fund to the state highway fund made
pursuant to subsection (7)( d)(I) (7)(d)(II), or (7)(d)(III) of this section from
Jul)' 1, 2025, through Jul, 1, 2028, solely to mitigate the environmental and
health impacts of increased air pollution from motor vehicle emissions in
nonattainment areas by funding projects that reduce vehicle miles traveled
or that directly reduce air pollution.
SECTION 7. In Colorado Revised Statutes, 24-75-219, add
(7)(d)(Il.5) as follows:
24-75-219. Transfers - transportation - capital construction -
definitions.
(7) In addition to any other transfers required by this section:
(d) (11.5) ON JANUARY 1, 2027, OR AS SOON AS POSSIBLE
THEREAFTER, THE STATE TREASURER SHALL TRANSFER FIFTY MILLION
DOLLARS FROM THE GENERAL FUND TO THE STATE HIGHWAY FUND.
SECTION 8. In Colorado Revised Statutes, 24-82-1303, amend
(2)( d) introductory portion; and add (2)( d.5) as follows:
24-82-1303. Financed purchase of an asset or certificate of
participation agreements for capital construction and transportation
projects.
PAGE 4-HOUSE BILL 26-1430
(2) ( d) Any financed purchase of an asset or certificate of
participation agreement executed as required by subsection (2)(a) of this
section shall provide that all of the obligations of the state under the
agreement are subject to the action of the general assembly in annually
making money available for all payments thereunder. BEFORE JANUARY 1,
2027, AND ON AND AFTER JULY 1, 2031, payments under any financed
purchase of an asset or certificate of participation agreement must be made,
subject to annual allocation pursuant to section 43-1-113 by the
transportation commission created in section 43-1-106 (1) or subject to
annual appropriation by the general assembly, as applicable, from the
following sources of money:
( d.5) ANY FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF
PARTICIPATION AGREEMENT EXECUTED AS REQUIRED BY SUBSECTION (2)( a)
OF THIS SECTION SHALL PROVIDE THAT ALL OF THE OBLIGATIONS OF THE
STATE UNDER THE AGREEMENT ARE SUBJECT TO THE ACTION OF THE
GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY AVAILABLE FOR ALL
PAYMENTS THEREUNDER. ON AND AFTER JANUARY 1, 2027, AND BEFORE
JULY 1, 2031, PAYMENTS UNDER ANY FINANCED PURCHASE OF AN ASSET OR
CERTIFICATE OF PARTICIPATION AGREEMENT MUST BE MADE, SUBJECT TO
ANNUAL ALLOCATION PURSUANT TO SECTION 43-1-113 BY THE
TRANSPORTATION COMMISSION CREATED IN SECTION 43-1-106 (1) OR
SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY, AS
APPLICABLE, FROM THE FOLLOWING SOURCES OF MONEY:
(I) FIRST, NINE MILLION DOLLARS ANNUALLY, OR ANY LESSER
AMOUNT THAT IS SUFFICIENT TO MAKE EACH FULL PAYMENT DUE, SHALL BE
PAID FROM THE GENERAL FUND OR ANY OTHER LEGALLY AVAILABLE SOURCE
OF MONEY FOR THE PURPOSE OF FULLY FUNDING THE CONTROLLED
MAINTENANCE AND CAPITAL CONSTRUCTION PROJECTS IN THE STATE TO BE
FUNDED WITH THE PROCEEDS OF FINANCED PURCHASE OF AN ASSET OR
CERTIFICATE OF PARTICIPATION AGREEMENTS AS SPECIFIED IN SUBSECTION
(4)(a) OF THIS SECTION;
(11) NEXT, FIFTY MILLION DOLLARS ANNUALLY, OR ANY LESSER
AMOUNT THAT IS SUFFICIENT TO MAKE EACH FULL PAYMENT DUE, SHALL BE
\
PAID FROM ANY LEGALLY AVAILABLE MONEY UNDER THE CONTROL OF THE
TRANSPORTATION COMMISSION SOLELY FOR THE PURPOSE OF ALLOWING THE
CONSTRUCTION, SUPERVISION, AND MAINTENANCE OF ST ATE HIGHWAYS TO
BE FUNDED WITH THE PROCEEDS OF FINANCED PURCHASE OF AN ASSET OR
PAGE 5-HOUSE BILL 26-1430
CERTIFICATE OF PARTICIPATION AGREEMENTS AS SPECIFIED IN SUBSECTION
(4)(b) OF THIS SECTION AND SECTION 43-4-206 (l)(b)(V); AND
(III) THE REMAINDER OF THE AMOUNT NEEDED, IN ADDITION TO THE
AMOUNTS SPECIFIED IN SUBSECTIONS (2)( d.5) AND (2)( d.5)(1I) OF THIS
SECTION, TO MAKE EACH FULL PAYMENT DUE SHALL BE PAID FROM THE
SUPPORT ROAD TRANSPORTATION FUND CREATED IN SECTION 43-4-1601.
SECTION 9. In Colorado Revised Statutes, 39-26-123, add (3)(c)
as follows:
39-26-123. Receipts - disposition - transfers of general fund
surplus -sales tax holding fund -creation -definitions.
(3) For any state fiscal year commencing on or after July 1, 2013,
the state treasurer shall credit eighty-five percent of all net revenue
collected under this article 26 to the old age pension fund created in section
1 of article XXIV of the state constitution. The state treasurer shall credit
to the general fund the remaining fifteen percent of the net revenue, less:
(c) THEAMOUNTCREDITEDTOTHESUPPORTROADTRANSPORTATION
FUND CREATED IN SECTION 43-4-1601, AS REQUIRED BY SECTION 43-4-1601
(5).
SECTION 10. In Colorado Revised Statutes, 39-27-102, amend
(l)(a)(II)(A) and (l)(a)(II)(B) as follows:
39-27-102. Tax imposed on gasoline and special fuel -deposits
-penalties.
(1) (a) (II) (A) Except as provided in subsection (l)(a)(IV) of this
section, the excise tax imposed on gasoline is twenty-two cents per gallon
or fraction thereof; EXCEPT THAT, ON AND AFTER JANUARY 1, 2027, BUT
BEFORE JULY 1, 2030, THE EXCISE TAX IMPOSED ON GASOLINE IS FOURTEEN
CENTS PER GALLON OR FRACTION THEREOF.
(B) The excise tax imposed on special fuel by subsection (l)(a)(I)
of this section is twenty and one-half cents per gallon or a fraction thereof;
EXCEPT THAT, ON AND AFTER JANUARY 1, 2027, BUT BEFORE JULY 1, 2030,
THE EXCISE TAX IMPOSED ON SPECIAL FUEL BY SUBSECTION ( 1 )( a)(I) OF THIS
PAGE 6-HOUSE BILL 26-1430
SECTION IS THIRTEEN CENTS PER GALLON OR A FRACTION THEREOF. This
subsection (l)(a)(Il)(B) does not apply to any special fuel specified in
subsections (l)(a)(VI), (l)(a)(VII), and (l)(a)(VIII) of this section.
SECTION 11. In Colorado Revised Statutes, 42-3-112, add (1.6)
as follows:
42-3-112. Failure to pay tax -penalty - rules -repeal.
(1.6) (a) NOTWITHSTANDING SUBSECTION (l)(a)(I) OF THIS SECTION,
ON AND AFTER JANUARY 1, 2027, AND BEFORE JULY 1, 2030, THE LATE FEE
IMPOSED IN SUBSECTION (l)(a)(I) OF THIS SECTION IS SET AT FIFTEEN
DOLLARS FIFTY CENTS FOR EACH MONTH OR PORTION OF A MONTH
FOLLOWING THE EXPIRATION OF THE REGISTRATION PERIOD, OR, IF
APPLICABLE, THE EXPIRATION OF THE GRACE PERIOD DESCRIBED IN SECTION
42-3-114 FOR WHICH THE VEHICLE IS UNREGISTERED; EXCEPT THAT THE
AMOUNT OF THE LATE FEE MUST NOT EXCEED SIXTY-TWO DOLLARS.
(b) THIS SUBSECTION ( 1.6) IS REPEALED, EFFECTIVE JULY 1, 2030.
SECTION 12. In Colorado Revised Statutes, 42-3-304, amend
(25)(a), (25)(a.5)(11), and (25)(a.5)(IV) as follows:
42-3-304. Registration fees -passenger-mile taxes -clean screen
fund -fees -report - rules -definitions -repeal.
(25) (a) (I) In addition to any other fee imposed by this section, for
registration periods beginning during state fiscal years prior to state fiscal
year 2022-23, each authorized agent shall annually collect a fee of fifty
dollars at the time of registration on every electric motor vehicle. For
registration periods beginning during state fiscal year 2022-23 or during any
subsequent state fiscal year, each authorized agent shall continue to collect
the fee, and the amount of the fee for registration periods beginning during
any given state fiscal year is the amount of the fee collected for registration
periods beginning during the prior state fiscal year, adjusted for inflation;
except that an adjustment shall be made only if the rate of inflation is
positive and the adjustment must be the lesser of the actual rate of inflation
or five percent. The department of revenue shall annually calculate the
inflation-adjusted amount of the fee for registration periods beginning
during each state fiscal year and shall publish the amount no later than April
PAGE 7-HOUSE BILL 26-1430
15 of the calendar year in which the state fiscal year begins. The authorized
agent shall transmit the fee to the state treasurer, who shall credit thirty
dollars, adjusted for inflation, of each fee to the highway users tax fund
created in section 43-4-201, and twenty dollars, adjusted for inflation, of
each fee to the electric vehicle grant fund created in section 24-38.5-103.
(II) (A) N OTWITHSTANDING SUBSECTION (25)(a)(I) OF THIS SECTION,
THE FEE IMPOSED IN SUBSECTION (25)(a)(I) OF THIS SECTION IS SET AT THE
FOLLOWING AMOUNTS DURING THE FOLLOWING FISCAL YEARS BEGINNING ON
JANUARY 1, 2027:
FISCAL YEAR
2026-27
2027-28
2028-29
2029-30
-FEE
$38.35
$39.50
$40.68
$41.91
(B) THIS SUBSECTION (25)(a)(Il) IS REPEALED, EFFECTIVE JULY 1,
2031.
(a.5) (II) For registration periods beginning during state fiscal years
2022-23 through 2031-32, the amount of the electric motor vehicle road
usage equalization fee for a battery electric motor vehicle is as follows:
Fiscal Year
2022-23
2023-24
2024-25
2025-26
2026-27 BEFORE JANUARY 1, 2027
PAGE 8-HOUSE BILL 26-1430
Fee
$4
$8
$12
$16
$26
2026-27 ON AND AFTER JANUARY 1, 2027,
$16.12
2027-28
2028-29
2029-30
2030-31
2031-32
$36$22.32
$5t $31.62
$66 $40.92
$81
$96
(IV) For registration periods beginning during state fiscal years
2022-23 through 2031-32, the amount of the electric motor vehicle road
usage equalization fee for a plug-in hybrid electric motor vehicle is:
Fiscal Year
2022-23
2023-24
2024-25
2025-26
2026-27 BEFORE JANUARY 1, 2027
Fee
$3
$5
$8
$11
$13
2026-27 ON AND AFTER JANUARY 1, 2027
2027-28
2028-29
PAGE 9-HOUSE BILL 26-1430
$8.06
$t6 $9.92
$t9 $11.78
2029-30
2030-31
2031-32
$2+$13.12
$24
$27
SECTION 13. In Colorado Revised Statutes, 42-3-306, add
(2)(b )(VIII) and (2.5) as follows:
42-3-306. Registration fees -passenger and passenger-mile taxes
- fee schedule - repeal.
(2) Fees required for the annual registration of passenger-carrying
motor vehicles are as follows:
(b) (VIII) (A) NOTWITHSTANDING SUBSECTION (2)(b)(V) OF THIS
SECTION, THE FEES IMPOSED IN SUBSECTION (2)(b )(V) OF THIS SECTION ARE
SET AT THE FOLLOWING AMOUNTS FOR THE FOLLOWING AGE OF VEHICLES ON
AND AFTER JANUARY 1, 2027, AND BEFORE JULY 1, 2030: FOR MOTOR
VEHICLES LESS THAN SEVEN YEARS OLD, FIVE DOLLARS FIFTY-EIGHT CENTS,
FOR MOTOR VEHICLES AT LEAST SEVEN YEARS OLD BUT LESS THAN TEN
YEARS OLD, FOUR DOLLARS THIRTY-POUR CENTS, AND FOR MOTOR VEHICLES
TEN YEARS OLD OR OLDER, THREE DOLLARS TEN CENTS.
(B) THIS SUBSECTION (2)(b )(VIII) IS REPEALED, EFFECTIVE JULY 1,
2030.
(2.5) (a) NOTWITHSTANDING SUBSECTIONS (2)(a)AND (2)(b) OF THIS
SECTION, THE FEES IMPOSED IN SUBSECTIONS (2)(a) AND (2)(b) OF THIS
SECTION ARE SET AS FOLLOWS, ON AND AFTER JANUARY 1, 2027, AND
BEFORE JULY 1, 2030:
(I) MOTORCYCLES AND AUTOCYCLES, ONE DOLLAR EIGHTY-SIX
CENTS;
(II) PASSENGER CARS, STATION WAGONS, TAXICABS, AMBULANCES,
MOTOR HOMES, AND HEARSES:
(A) WEIGHING TWO THOUSAND POUNDS OR LESS, THREE DOLLARS
SEVENTY-TWO CENTS;
PAGE IO-HOUSE BILL 26-1430
(B) WEIGHING AT LEAST TWO THOUSAND ONE POUNDS AND
FORTY-FIVE HUNDRED POUNDS OR LESS, THREE DOLLARS SEVENTY-TWO
CENTS PLUS TWENTY CENTS PER ONE HUNDRED POUNDS, OR FRACTION
THEREOF, OF WEIGHT OVER TWO THOUSAND POUNDS; AND
(C) WEIGHING MORE THAN FOUR THOUSAND FIVE HUNDRED POUNDS,
SEVEN DOLLARS SEVENTY-FIVE CENTS PLUS SIXTY CENTS PER ONE HUNDRED
POUNDS, OR FRACTION THEREOF, OF WEIGHT OVER FOUR THOUSAND FIVE
HUNDRED POUNDS; EXCEPT THAT, FOR MOTOR HOMES WEIGHING MORE THAN
SIX THOUSAND FIVE HUNDRED POUNDS, SUCH FEES SHALL BE TWENTY-FOUR
DOLLARS FIFTY CENTS PLUS THIRTY CENTS PER ONE HUNDRED POUNDS, OR
FRACTION THEREOF, OF WEIGHT OVER SIX THOUSAND FIVE HUNDRED
POUNDS.
(b) THIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE JULY 1, 2030.
SECTION 14. In Colorado Revised Statutes, 42-4-505, add (l)(d)
as follows:
42-4-505. Longer vehicle combinations -rules.
( 1) ( d) NOTWITHSTANDING ANY LAW TO THE CONTRARY, FOR PERMIT
FEES COLLECTED ON OR AFTER JANUARY 1, 2027, THE DEPARTMENT OF
TRANSPORTATION, ON BEHALF OF THE ROAD ENTERPRISE CREATED IN
43-4-1703, SHALL TRANSMIT ALL PERMIT FEES COLLECTED PURSUANT TO
SUBSECTION ( 1 )( a) OF THIS SECTION TO THE STATE TREASURER, WHO SHALL
CREDIT THE PERMIT FEES TO THE ROAD ENTERPRISE CASH FUND CREA TED IN
SECTION 43-4-1705.
SECTION 15. In Colorado Revised Statutes, 42-4-510, add ( 11 )( c)
as follows:
42-4-510. Permits for excess size and weight and for
manufactured homes -penalty -rules -definitions.
(11) (c) (I) NOTWITHSTANDING ANY LAW TO THE CONTRARY, FOR
PERMITFEESCOLLECTEDONORAFTERJANUARY 1,2027, THE DEPARTMENT
OF TRANSPORTATION, ON BEHALF OF THE ROAD ENTERPRISE CREATED IN
43-4-1703, SHALL TRANSMIT ALL PERMIT FEES COLLECTED PURSUANT TO
SUBSECTION ( 11 )(a) OF THIS SECTION TO THE ST A TE TREASURER, WHO SHALL
PAGE I I-HOUSE BILL 26-1430
CREDIT THE PERMIT FEES TO THE ROAD ENTERPRISE CASH FUND CREA TED IN
SECTION 43-4-1705.
(II) THIS SUBSECTION (11 )( C) DOES NOT APPLY TO LOCAL FEES
IMPOSED BY A LOCAL GOVERNMENT OR LOCAL AUTHORITY PURSUANT TO
SUBSECTION (11 )(b) OF THIS SECTION, WHICH ARE REMITTED TO THE
APPROPRIATE LOCAL GOVERNMENT OR LOCAL AUTHORITY.
SECTION 16. In Colorado Revised Statutes, 43-1-106, add (17)(e)
as follows:
43-1-106. Transportation commission - efficiency and
accountability committee - powers and duties - report - rules -
definitions.
( 17) ( e) (I) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE
DEPARTMENT SHALL NOT CONVENE THE COMMITTEE CREATED IN
SUBSECTION ( 17)( a) OF THIS SECTION IN CALENDAR2026 AND MAY REDIRECT
ANY WORKLOAD SAVINGS RESULTING FROM THIS SUBSECTION ( 17)( e) TO
HELP OFFSET WORKLOAD IMPACTS ASSOCIATED WITH THE ADMINISTRATION
OF THE TRANSPORTATION FUNDING WORKING GROUP CREATED IN SECTION
43-1-139.
(II) THIS SUBSECTION ( 17)( e) IS REPEALED EFFECTIVE JULY 1, 2027.
SECTION 17. In Colorado Revised Statutes, add 43-1-139 as
follows:
43-1-139. Transportation funding working group - definitions
- repeal.
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "FACILITATOR" MEANS THE NEUTRAL FACILITATOR THAT THE
DEPARTMENT CONTRACTS WITH PURSUANT TO SUBSECTION (3) OF THIS
SECTION.
(b) "WORKING GROUP" MEANS THE TRANSPORTATION FUNDING
WORKING GROUP CREATED IN SUBSECTION (2) OF THIS SECTION.
PAGE 12-HOUSE BILL 26-1430
(2) THERE IS CREATED IN THE DEPARTMENT THE TRANSPORTATION
FUNDING WORKING GROUP. THE WORKING GROUP SHALL MEET AS
NECESSARY TO EVALUATE AND MAKE RECOMMENDATIONS CONCERNING
FUNDING STATE AND LOCAL SURFACE TRANSPORTATION MAINTENANCE,
REPAIR, CAPACITY, AND SAFETY.
(3) THE DEPARTMENT SHALL CONTRACT WITH A NEUTRAL
FACILITATOR TO ORGANIZE AND MANAGE THE WORKING GROUP'S MEETINGS,
GUIDE THE WORKING GROUP'S DELIBERATIONS, AND DRAFT THE REPORTS
REQUIRED PURSUANT TO SUBSECTIONS (7)(a) AND (7)(b) OF THIS SECTION.
(4) (a) THE WORKINGGROUPCONSISTSOFTHEFOLLOWING MEMBERS:
(I) THE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR'S
DESIGNEE;
(II) ONE MEMBER APPOINTED BY THE GOVERNOR WITH EXPERTISE IN
PUBLIC FINANCE;
(111) ONE MEMBER APPOINTED BY THE GOVERNOR TO REPRESENT
ENVIRONMENTAL CONSERVATION OR ENVIRONMENTAL JUSTICE GROUPS;
(IV) ONE MEMBER APPOINTED BY THE PRESIDENT OF THE SENA TE TO
REPRESENT COUNTIES ACROSS THE ST A TE;
(V) ONE MEMBER APPOINTED BY THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES WITH EXPERTISE AS A TRANSPORTATION PLANNER OR AS
A PROFESSIONAL ENGINEER;
(VI) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE
HOUSE OF REPRESENTATIVES TO REPRESENT AN ASSOCIATION OF MOTOR
CARRIERS;
(VII) ONE MEMBER APPOINTED BY THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES TO REPRESENT MUNICIPALITIES ACROSS THE ST A TE;
(VIII) ONE MEMBER APPOINTED BY THE PRESIDENT OF THE SENATE
TO REPRESENT ECONOMIC DEVELOPMENT ORGANIZATIONS; AND
(IX) ONE MEMBER APPOINTED BY THE MINORITY LEADER OF THE
PAGE 13-HOUSE BILL 26-1430
SENATE TO REPRESENT CONSTRUCTION CONTRACTOR PROFESSIONALS.
(b) THE APPLICABLE APPOINTING AUTHORITIES SHALL MAKE ALL OF
THE APPOINTMENTS DESCRIBED IN SUBSECTION (4)(a) OF THIS SECTION NO
LATER JUNE 19, 2026.
( c) MEMBERS OF THE WORKING GROUP SERVE AT THE PLEASURE OF
THE APPLICABLE APPOINTING AUTHORITY. IF A VACANCY OCCURS, THE
APPROPRIATE APPOINTING AUTHORITY SHALL APPOINT A REPLACEMENT
MEMBER WHO MEETS THE REQUIREMENTS SET FORTH IN SUBSECTION (4)(a)
OF THIS SECTION FOR THE VACANT POSITION NOT LATER THAN ONE WEEK
FROM THE DATE THE VACANCY EXISTS. IF THE APPROPRIATE APPOINTING
AUTHORITY FAILS TO APPOINT A REPLACEMENT MEMBER AS REQUIRED BY
THIS SUBSECTION (4)(c), THE GOVERNOR SHALL APPOINT A REPLACEMENT
MEMBER WHO MEETS THE REQUIREMENTS SET FORTH IN SUBSECTION (4)(a)
OF THIS SECTION.
( d) MEMBERS OF THE WORKING GROUP SERVE WITHOUT
COMPENSATION AND WITHOUT REIMBURSEMENT FOR EXPENSES.
(e) MEMBERSOFTHEWORKINGGROUPMAYPARTICIPATEREMOTELY
IN WORKING GROUP MEETINGS.
( 5) (a) THE F AC I LIT A TOR SHALL CONVENE THE FIRST MEETING OF THE
WORKING GROUP PRIOR TO JULY 3, 2026. THE WORKING GROUP SHALL ADOPT
BYLAWS AT THE FIRST WORKING GROUP MEETING.
(b) THE WORKING GROUP SHALL MEET AT LEAST ONCE EVERY TWO
WEEKS BEGINNING THE WEEK OF JUNE 29, 2026, THROUGH THE WEEK OF
NOVEMBER 2, 2026. THE WORKING GROUP MAY MEET MORE OFTEN AT THE
DISCRETION OF THE FACILITATOR. A MAJORITY OF THE MEMBERS OF THE
WORKING GROUP MAY VOTE TO EXTEND THE WORK OF THE COMMISSION PAST
THE WEEK OF NOVEMBER 2, 2026, OR TO TERMINATE THE WORKING GROUP'S
WORK AT ANY TIME.
( c) THE WORKING GROUP MAY MEET WITH SUBJECT MA TIER EXPERTS
AS NEEDED, SUCH AS EXPERTS ON THE ST ATE BUDGET, PUBLIC FINANCING,
AND TRANSPORTATION CONSTRUCTION.
( 6) THE WORKING GROUP'S PURPOSE IS TO IDENTIFY APPROACHES TO
PAGE 14-HOUSE BILL 26-1430
AUGMENT STATE AND LOCAL FUNDING FOR SURFACE TRANSPORTATION
MAINTENANCE, REPAIR, CAPACITY, AND SAFETY BY INCREASING REVENUE,
WHILE FOCUSING ON INCREASING REVENUE THAT IS PROTECTED FOR SUCH
PURPOSES, IS SUSTAINABLE, AND DOES NOT NECESSITATE CUTS TO CORE
STATE AND LOCAL SERVICES.
(7) (a) No LATER THAN SEPTEMBER 7, 2026, THE WORKING GROUP
SHALL SUBMIT A PRELIMINARY STATUS REPORT TO THE TRANSPORTATION,
HOUSING, AND LOCAL GOVERNMENT COMMITTEE OF THE HOUSE OF
REPRESENTATIVES, THE TRANSPORTATION AND ENERGY COMMITTEE OF THE
SENATE, THE TRANSPORTATION COMMISSION CREATED IN SECTION 43-1-106,
AND THE GOVERNOR. THE REPORT MUST INCLUDE:
(I) A SUMMARY OF THE WORKING GROUP'S DISCUSSIONS AND
FINDINGS; AND
(II) THE POTENTIAL STATE BUDGETARY IMPACTS, AS DISCUSSED BY
THE WORKING GROUP, OF POTENTIAL APPROACHES TO AUGMENT STATE AND
LOCAL FUNDING FOR SURFACE TRANSPORTATION MAINTENANCE, REPAIR,
CAPACITY, AND SAFETY NEEDS.
(b) No LATER THAN NOVEMBER 13, 2026, THE WORKING GROUP
SHALL SUBMIT A REPORT TO THE TRANSPORTATION, HOUSING, AND LOCAL
GOVERNMENT COMMITTEE OF THE HOUSE OF REPRESENTATIVES, THE
TRANSPORTATION AND ENERGY COMMITTEE OF THE SENATE, THE
TRANSPORTATION COMMISSION CREATED IN SECTION 43-1-106, AND THE
GOVERNOR. THE REPORT MUST INCLUDE THE WORKING GROUP'S FINDINGS
AND RECOMMENDATIONS TO THE GENERAL ASSEMBLY CONCERNING
MATTERS EVALUATED BY THE WORKING GROUP.
(8) (a) THE DEPARTMENT SHALL BE AVAILABLE TO ASSIST THE
WORKING GROUP IN CARRYING OUT THE WORKING GROUP'S DUTIES. THE
DEPARTMENT MAY ADOPT INTERNAL PROCEDURES TO ENSURE THAT THE
WORKING GROUP'S WORK IS CONDUCTED IN AN ORDERLY, TIMELY, AND
GOAL-ORIENTED MANNER.
(b) NOTWITHSTANDING ANY LAW TO THE CONTRARY, THE
DEPARTMENT MAY EXPEND MONEY FROM THE STATE HIGHWAY FUND,
CREATED IN SECTION 43-1-219, FOR THE WORKING GROUP'S PURPOSES
INCLUDING FOR HIRING PROFESSIONAL FACILITATION SERVICES, ASSISTING
PAGE 15-HOUSE BILL 26-1430
THE WORKING GROUP PURSUANT TO SUBSECTION (8)(a) OF THIS SECTION,
AND OTHER NECESSARY SERVICES.
(9) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 18. In Colorado Revised Statutes, 43-4-217, amend
(3)(b )(l)(E), (3)(b )(l)(G), ( 4)(b )(I)(E), and ( 4)(b )(l)(G); repeal (3)(b )(I)(F)
and ( 4 )(b )(I)(F), and add (3 )(b )(l)(E.5), (3 )(b )(l)(F .5), ( 4 )(b )(l)(E.5),
(4)(b)(l)(F.5), and (9) as follows:
43-4-217. Additional funding - road usage fees - rules -
legislative declaration -definitions.
(3) (b) (I) The amount of the road usage fee for each gallon of
gasoline acquired, sold, offered for sale, or used in this state from April 1,
2023, through June 30, 2023, and during state fiscal years 2023-24 through
2031-32 is:
(E) Six cents per gallon, for state fiscal year 2026-27, ON AND AFTER
JULY 1, 2026, BUT BEFORE JANUARY 1, 2027;
(E.5) FOUR CENTS PER GALLON, ON AND AFTER JANUARY 1, 2027,
BUT BEFORE JULY 1, 2027;
(F) Seven cents per gallon, fot state fiscal year 2027-28, and
(F.5) ANAMOUNTDETERMINEDPURSUANTTOSUBSECTION (9)(b) OF
THIS SECTION FOR STATE FISCAL YEARS 2027-28 THROUGH 2029-30; AND
(G) Eight cents per gallon, for state fiscal years 2028-29 through
2030-31 AND 2031-32.
( 4) (b) (I) The amount of the road usage fee for each gallon of
special fuel acquired, sold, offered for sale, or used in this state from April
1, 2023, through June 30, 2023, and during state fiscal years 2023-24
through 2031-32 is:
(E) Six cents per gallon, for state fiscal year 2026-27, ON AND AFTER
JULY 1, 2026, BUT BEFORE JANUARY 1, 2027;
PAGE 16-HOUSE BILL 26-1430
(E.5) FOUR CENTS PER GALLON, ON AND AFTER JANUARY 1, 2027,
BUT BEFORE JULY 1, 2027;
(F) Seven cents per gallon, fut state fiscal year 2027-28, and
(F .5) AN AMOUNT DETERMINED PURSUANT TO SUBSECTION (9)(b) OF
THIS SECTION FOR STATE FISCAL YEARS 2027-28 THROUGH 2029-30; AND
(G) Eight cents per gallon, for state fiscal years 2028-29 thrnugh
2030-31 AND 2031-32.
(9) (a) As PART OF THE MARCH REVENUE FORECAST, PREPARED IN
MARCH OF 2027, 2028, AND 2029, LEGISLATIVE COUNCIL STAFF AND THE
OFFICE OF STATE PLANNING AND BUDGETING SHALL PROJECT THE ROAD
USAGE FEE RATES NECESSARY FOR THE AMOUNT OF THE REDUCED ROAD
USAGE FEES REVENUE IN THE NEXT FISCAL YEAR, ASSUMING THAT THE ROAD
USAGE FEE RA TES ESTABLISHED IN SUBSECTIONS (3 )(b) AND ( 4 )(b) OF THIS
SECTION ARE EQUAL, TO EQUAL THE LESSER OF:
(I) THE TOTAL OF REQUIRED STATE REVENUE TRANSPORTATION
DIVERSION FOR THE NEXT STATE FISCAL YEAR MINUS THE SUM OF, FOR THE
NEXT FISCAL YEAR:
(A) REDUCED GASOLINE EXCISE TAX REVENUE;
(B) REDUCED SPECIAL FUEL EXCISE TAX REVENUE;
(C) REDUCED VEHICLE REGISTRATION FEE REVENUE; AND
(D) REDUCED TRANSPORTATION LEASE AND STATE HIGHWAY FUND
PAYMENT AMOUNTS; OR
(II) REVENUE FROM THE BASE ROAD USAGE FEES.
(b) IN MARCH OF 2027, 2028, AND 2029, UPON ADOPTING A MARCH
REVENUEFORECASTTOPREPARETHEGENERALANNUALAPPROPRIATIONACT
FOR THE NEXT STATE FISCAL YEAR, THE JOINT BUDGET COMMITTEE OF THE
GENERAL ASSEMBLY SHALL NOTIFY THE EXECUTIVE DIRECTOR OF THE
DEPARTMENT OF REVENUE OF THE ROAD USAGE FEE RA TES PROJECTED IN THE
ADOPTED REVENUE FORECAST, AND THAT RATE IS THE RATE OF THE ROAD
PAGE 17-HOUSE BILL 26-1430
USAGE FEE FOR THE NEXT STATE FISCAL YEAR.
( C) AS USED IN THIS SUBSECTION (9), UNLESS THE CONTEXT
OTHERWISE REQUIRES:
(I) "ADJUSTED ROAD USAGE FEES" MEANS THE RATE OF THE ROAD
USAGE FEES ON GASOLINE AND SPECIAL FUEL FOR A ST A TE FISCAL YEAR
ESTABLISHED IN ACCORDANCE WITH SUBSECTION (9)(a) OF THIS SECTION.
(II) "BASE ROAD USAGE FEES" MEANS:
(A) FOR STATE FISCAL YEAR 2027-28, SEVEN CENTS PER GALLON;
AND
(B) FOR STATE FISCAL YEARS 2028-29 AND 2029-30, EIGHT CENTS
PER GALLON.
(III) "REDUCED GASOLINE EXCISE TAX REVENUE" MEANS THE
DIFFERENCE IN REVENUE COLLECTED FOR A ST A TE FISCAL YEAR, IF THE
EXCISE TAX IMPOSED ON GASOLINE PURSUANT TO SECTION 39-27-102
( 1 )( a )(Il)(A) WERE IMPOSED AT A RA TE OF TWENTY-TWO CENTS PER GALLON
OR A FRACTION THEREOF OR WERE IMPOSED AT A RA TE OF FOURTEEN CENTS
PER GALLON OR A FRACTION THEREOF.
(IV) "R E DUCED ROAD USAGE FEES REVENUE" MEANS THE
DIFFERENCE IN REVENUE COLLECTED FROM THE FEE ON GASOLINE AND
SPECIAL FUEL FOR A STATE FISCAL YEAR BETWEEN THE AMOUNT BASED ON
THE BASE ROAD USAGE FEES AND THE AMOUNT BASED ON THE ADJUSTED
ROAD USAGE FEES.
(V) "REDUCED SPECIAL FUEL EXCISE TAX REVENUE" MEANS THE
DIFFERENCE IN REVENUE COLLECTED FOR A ST A TE FISCAL YEAR, IF THE
EXCISE TAX IMPOSED ON SPECIAL FUEL PURSUANT TO SECTION 39-27-102
(l)(a)(Il)(B) WERE IMPOSED AT A RATE OF TWENTY AND ONE-HALF CENTS
PER GALLON OR A FRACTION THEREOF OR WERE IMPOSED AT A RA TE OF
THIRTEEN CENTS PER GALLON OR A FRACTION THEREOF.
(VI) "REDUCEDTRANSPORTATIONLEASEANDSTATEHIGHWAYFUND
PAYMENTS" MEANS AN AMOUNT EQUAL TO THE SUM OF THE TRANSFERS
DESCRIBED IN SECTIONS 24-82-1303 (2)(d.5)(II), 24-82-1303 (2)(d.5)(III),
PAGE 18-HOUSE BILL 26-1430
24-75-219 (7)(d)(Il.5), AND 24-75-219 (7)(d)(III) FOR THE APPLICABLE
ST A TE FISCAL YEAR.
(VII) "REDUCED VEHICLE REGISTRATION FEE REVENUE" MEANS THE
DIFFERENCE IN REVENUE COLLECTED FOR A ST A TE FISCAL YEAR, AS A RESULT
OF THE REDUCTION OF ANY FEES IN SECTION 42-3-112, 42-3-304, 42-3-306,
AND 43-4-804 PURSUANT TO THIS HOUSE BILL 26-1430, ENACTED IN 2026.
(VIII) "REQUIRED STATE REVENUE TRANSPORTATION DIVERSION"
MEANS THE TOTAL AMOUNT APPROPRIATED OR TRANSFERRED FROM THE
SUPPORT ROAD TRANSPORTATION FUND CREATED IN SECTION 43-4-1601 FOR
A ST A TE FISCAL YEAR.
SECTION 19. In Colorado Revised Statutes, add 43-4-219 as
follows:
43-4-219.
transportation.
State revenue collected to support road
STATEREVENUECOLLECTEDTOSUPPORTROADTRANSPORTATION,AS
DEFINED IN SECTION 22 (3)(c) OF THE STATE CONSTITUTION, DOES NOT
INCLUDE FEE REVENUE RESULTING FROM A FEE IMPOSED BY ANY ENTERPRISE.
SECTION 20. In Colorado Revised Statutes, 43-4-804, add (2) as
follows:
43-4-804. Highway safety projects -surcharges, fees, and fines
- crediting of money to highway users tax fund - rules - definitions -
repeal.
(2) (a) NOTWITHSTANDING SUBSECTIONS (l)(a)(I) AND (l)(a)(IX) OF
THIS SECTION, THE ROAD SAFETY SURCHARGE IMPOSED IN SUBSECTION ( 1 )( a)
OF THIS SECTION IS SET AT THE FOLLOWING AMOUNTS:
(I) FOR A MOTORCYCLE, AS DEFINED IN SECTION 42-1-102 (55); A
TRAILER COACH, AS DEFINED IN SECTION 42-1-102 ( 106); AN AUTOCYCLE, AS
DEFINED IN SECTION 42-1-102 (7.5); OR ANY VEHICLE THAT WEIGHS TWO
THOUSAND POUNDS OR LESS:
(A) SEVEN DOLLARS SIXTY-THREE CENTS ON AND AFTER JANUARY
PAGE 19-HOUSE BILL 26-1430
1, 2027, AND BEFORE JULY 1, 2027; OR
(B) TEN DOLLARS ON AND AFTER JULY 1, 2027;
(II) FOR ANY VEHICLE THAT WEIGHS MORE THAN TWO THOUSAND
POUNDS BUT NOT MORE THAN FIVE THOUSAND POUNDS:
(A) ELEVEN DOLLARS NINETY-SEVEN CENTS ON AND AFTERJ ANUARY
1, 2027, AND BEFORE JULY 1, 2027; OR
(B) FOURTEEN DOLLARS ON AND AFTER JULY 1, 2027;
(Ill) FOR ANY VEHICLE THAT WEIGHS MORE THAN FIVE THOUSAND
POUNDS BUT NOT MORE THAN TEN THOUSAND POUNDS:
(A) FIFTEEN DOLLARS SEVEN CENTS ON AND AFTER JANUARY 1,
2027, AND BEFORE JULY 1, 2027; OR
(B) SEVENTEEN DOLLARS ON AND AFTER JULY 1, 2027;
(IV) FOR ANY VEHICLE THAT IS A PASSENGER BUS OR THAT WEIGHS
MORE THAN TEN THOUSAND POUNDS BUT NOT MORE THAN SIXTEEN
THOUSAND POUNDS:
(A) TWENTY DOLLARS SIXTY-FIVE CENTS ON AND AFTER JANUARY
1, 2027, AND BEFORE JULY 1, 2027; OR
(B) TWENTY-THREE DOLLARS ON AND AFTER JULY 1, 2027;
(V) FOR ANY VEHICLE THAT WEIGHS MORE THAN SIXTEEN THOUSAND
POUNDS:
(A) TWENTY-ONE DOLLARS EIGHTY-NINE CENTS ON AND AFTER
JANUARY 1, 2027, AND BEFORE JULY 1, 2027; OR
(B) TWENTY-FOUR DOLLARS ON AND AFTER JULY 1, 2027;
(b) THIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2030.
SECTION 21. In Colorado Revised Statutes, 43-4-1203, add (11)
PAGE 20-HOUSE BILL 26-1430
as follows:
43-4-1203. Clean transit enterprise -creation -board -powers
and duties -rules -fees -fund.
( 11) COMMENCING ON OR BEFORE JUNE 30, 2026, IN DETERMINING
THE AMOUNT OF REVENUE THE ENTERPRISE GENERA TES FROM FEES OR
SURCHARGES FOR PURPOSES OF SECTION 24-77-108, THE AMOUNT OF FEES
AND SURCHARGES MUST BE ACCOUNTED FOR ON A CASH RATHER THAN AN
ACCRUAL ACCOUNTING BASIS.
SECTION 22. In Colorado Revised Statutes, add part 16 to article
4 of title 43 as follows:
PART 16
SUPPORT ROAD TRANSPORTATION FUND
43-4-1601. Support road transportation fund -definitions.
(1) THE SUPPORT ROAD TRANSPORTATION FUND IS CREATED IN THE
STATE TREASURY. THE FUND CONSISTS OF STATE REVENUE COLLECTED TO
SUPPORT ROAD TRANSPORTATION CREDITED TO THE FUND BY THE STATE
TREASURER PURSUANT TO SUBSECTION (5) OF THIS SECTION.
(2) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO
THE FUND.
(3) (a) THE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO
THE DEPARTMENT OF TRANSPORTATION FOR USE BY THE TRANSPORTATION
COMMISSION FOR PAYMENTS MADE IN ACCORDANCE WITH SECTION
24-82-1303 (2)( d.5)(11) AND (2)( d.5)(111).
(b) THE STATE TREASURER SHALL APPORTION THE MONEY IN THE
FUND MONTHLY, EXCLUDING MONEY NECESSARY FOR THE TRANSFERS OR
PAYMENTS FROM THE FUND REQUIRED PURSUANT TO SECTIONS 24-82-1303
(2)(d.5)(11), 24-82-1303 (2)(d.5)(111), 24-75-219 (7)(d)(Il.5),AND24-75-219
(7)( d)(III), BASED UPON ESTIMATES FROM THE DEPARTMENT OF REVENUE OF
CURRENT MONTHLY COLLECTIONS OF STATE REVENUE COLLECTED TO
SUPPORT ROAD TRANSPORTATION, WITH MONTHLY RECONCILIATION OF THE
STATE, COUNTY, AND MUNICIPAL ACCOUNTS IN EACH SUCCESSIVE MONTH.
PAGE 21-HOUSE BILL 26-1430
THE DEPARTMENT OF REVENUE SHALL PROVIDE ESTIMATES TO THE STATE
TREASURER BY THE SEVENTH WORKING DAY OF EACH MONTH. THE STATE
TREASURER SHALL APPORTION THE MONEY IN THE FUND WITHIN FIVE
WORKING DAYS OF RECEIVING ESTIMATES FROM THE DEPARTMENT OF
REVENUE.
(c) THE STATE TREASURER SHALL APPORTION MONEY FROM THE
FUND AS FOLLOWS:
(I) SIXTY PERCENT IS PAID TO THE STATE HIGHWAY FUND AND
EXPENDED AS DESCRIBED IN SECTION 43-4-206;
(II) TWENTY-THREE PERCENT IS PAID TO THE COUNTY TREASURERS
OF THE RESPECTIVE COUNTIES AND ALLOCATED AND EXPENDED AS
DESCRIBED IN SECTION 43-4-207; AND
(III) SEVENTEEN PERCENT IS PAID TO CITIES AND INCORPORATED
TOWNS WITHIN THE LIMITS OF THE RESPECTIVE COUNTIES AND ALLOCATED
AND EXPENDED AS DESCRIBED IN SECTION 43-4-208 (2).
( 4) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, MONEY
ALLOCATED UNDER SUBSECTION (3) OF THIS SECTION SHALL NOT BE USED
FOR ANY PURPOSE THAT IS NOT AUTHORIZED BY SECTION 22 OF ARTICLE X
OF THE STATE CONSTITUTION.
(5) BEGINNING JANUARY 1, 2027, THE STATE TREASURER SHALL
CREDIT TO THE FUND STATE REVENUE COLLECTED TO SUPPORT ROAD
TRANSPORTATION AS REQUIRED BY SECTION 22 OF ARTICLE X OF THE ST ATE
CONSTITUTION.
(6) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "FUND" MEANS THE SUPPORT ROAD TRANSPORTATION FUND
CREATED IN SUBSECTION (1) OF THIS SECTION.
(b) "STATE REVENUE COLLECTED TO SUPPORT ROAD
TRANSPORTATION" HAS THE SAME MEANING AS IN SECTION 22 (3)(c) OF
ARTICLE X OF THE STATE CONSTITUTION.
SECTION 23. In Colorado Revised Statutes, add part 17 to article
PAGE 22-HOUSE BILL 26-1430
4 of title 43 as follows:
PART 17
ROAD ENTERPRISE
43-4-1701. Legislative declaration.
( 1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
(a) THE CONTINUED PROSPERITY OF THE STATE AND ITS CITIZENS
REQUIRES A SAFE, WELL-MAINTAINED, INTEGRATED, MULTIMODAL, AND
SUSTAINABLE SURFACE TRANSPORTATION SYSTEM THAT IS ACCESSIBLE IN
ALL PARTS OF THE STATE AND THAT ALLOWS EFFICIENT MOVEMENT OF
PEOPLE, GOODS, AND INFORMATION;
(b) THE ST A TE HIGHWAY SYSTEM IS A FUND AMENT AL ELEMENT OF
THE SURFACE TRANSPORTATION SYSTEM AND THE CONDITION OF THE
ROADWAYS COMPRISING THE STATE HIGHWAY SYSTEM ARE ESSENTIAL TO
THE EFFICIENT MOVEMENT OF PEOPLE, GOODS, AND INFORMATION;
( c) THE CONDITION OF THE ST A TE HIGHWAY SYSTEM, IN PARTICULAR
THE CONDITION OF THE ROADWAY SURF ACE, HAS DETERIORATED OVER TIME
AS A RESULT OF THE AGING OF THE SYSTEM AND INCREASED DEMANDS UPON
IT, INCLUDING GROWING POPULATION AND VEHICLE MILES TRAVELED;
(d) IN PARTICULAR OVERSIZE AND OVERWEIGHT VEHICLES AND
LONGER VEHICLE COMBINATIONS CAUSE A DISPROPORTIONATE AMOUNT OF
WEAR AND TEAR ON THE STATE'S HIGHWAY SYSTEM;
( e) THERE IS AN UllGENT PRESENT NEED TO IMPROVE THE CONDITION
OF THE STATE HIGHWAY SYSTEM THROUGH INCREASED INVESTMENT IN
PREVENTIVE MAINTENANCE, REPAIR, REHABILITATION, AND
RECONSTRUCTION OF THE ROADWAY SURFACE; AND
( t) DUE TO THE LIMITED AVAILABILITY OF ST A TE AND FEDERAL
FUNDING AND THE NEED TO COMPLETE PREVENTIVE MAINTENANCE, REPAIR,
REHABILITATION, AND RECONSTRUCTION PROJECTS TO IMPROVE THE
CONDITION OF THE ROADWAY SURF ACE OF THE STATE HIGHWAY SYSTEM AND
TO SUPPORT THE ONGOING MAINTENANCE OF THE ROADWAY SURFACE, IT IS
NECESSARY TO CREATE A ROAD ENTERPRISE AND TO AUTHORIZE THE
PAGE 23-HOUSE BILL 26-1430
ENTERPRISE TO:
(I) COMPLETE PREVENTIVE MAINTENANCE, REPAIR, REHABILITATION,
AND RECONSTRUCTION PROJECTS TO IMPROVE THE CONDITION OF THE
ROADWAY SURF ACE OF THE STATE HIGHWAY SYSTEM AND TO SUPPORT THE
ONGOING MAINTENANCE OF THE ROADWAY SURFACE; AND
(II) IMPOSE PERMIT FEES FOR OVERSIZE AND OVER WEIGHT VEHICLES
AND LONGER VEHICLE COMBINATIONS AT RA TES REASONABLY CALCULATED
TO DEFRAY THE COSTS OF MAINTAINING THE ROADWAY SURFACES OF THE
STATE HIGHWAY SYSTEM, RECEIVE AND EXPEND REVENUE GENERATED BY
THE PERMIT FEES AND OTHER MONEY, ISSUE REVENUE BONDS AND OTHER
OBLIGATIONS, AND EXERCISE OTHER POWERS NECESSARY AND APPROPRIATE
TO CARRY OUT ITS PURPOSES.
(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:
(a) THE ROAD ENTERPRISE PROVIDES BUSINESSES SERVICES WHEN,
IN EXCHANGE FOR THE PAYMENT OF PERMIT FEES FOR OVERSIZE AND
OVERWEIGHT VEHICLES AND LONGER VEHICLE COMBINATIONS, IT
COMPLETES PREVENTIVE MAINTENANCE, REPAIR, R E HABILITATION, AND
RECONSTRUCTION PROJECTS TO IMPROVE THE CONDITION OF THE ROADWAY
SURFACE OF THE STATE HIGHWAY SYSTEM AND SUPPORTS THE ONGOING
MAINTENANCE OF THE ROADWAY SURFACE;
(b) BY COMPLETING ROADWAY SURFACE PROJECTS AS SERVICES AS
AUTHORIZED BY THIS SECTION, THE ROAD ENTERPRISE PROVIDES A BENEFIT
TO FEE PAYERS BY IMPROVING THE CONDITION OF THE ROADWAY SURFACE
OF THE STATE HIGHWAY SYSTEM THAT OFFSETS THE WEAR AND TEAR
CAUSED BY THOSE FEE PAYERS AND, THEREFORE, OPERA TES AS A BUSINESS
IN ACCORDANCE WITH THE DETERMINATION OF THE COLORADO SUPREME
COURT IN COLORADO UNION OF TAXPAYERS FOUNDATION V. CITY OF
ASPEN, 2018 CO 36;
( c) CONSISTENT WITH THE DETERMINATION OF THE COLORADO
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 896
P.2d 859(COLO. 1995), THE POWER TO IMPOSE TAXES IS INCONSISTENT WITH
ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION, AND, THEREFORE, IT IS THE CONCLUSION OF THE GENERAL
ASSEMBLY THAT THE REVENUE COLLECTED BY THE ROAD ENTERPRISE IS
PAGE 24-HOUSE BILL 26-1430
GENERA TED BY FEES, NOT TAXES, BECAUSE THE PERMIT FEES FOR OVERSIZE
AND OVERWEIGHT VEHICLES AND LONGER VEHICLE COMBINATIONS IMPOSED
BY THE ENTERPRISE ARE:
(I) IMPOSED FOR THE SPECIFIC PURPOSE OF ALLOWING THE
ENTERPRISE TO DEFRAY THE COSTS OF PROVIDING THE SERVICES SPECIFIED
IN SECTION 43-4-1703 (2); AND
(II) COLLECTED AT RA TES THAT ARE RE ASONABLY CALCULATED
BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE ENTERPRISE;
( d) So LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE FOR
PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, THE
REVENUE FROM PERMIT FEES FOR OVERSIZE AND OVER WEIGHT VEHICLES AND
LONGER VEHICLE COMBINATIONS IS NOT ST A TE FISCAL YEAR SPENDING, AS
DEFINED IN SECTION 24-77-102 (17), OR STATE REVENUES, AS DEFINED IN
SECTION 24-77-103.6 (6)(c), AND DOES NOT COUNT AGAINST EITHER THE
STATE FISCAL YEAR SPENDING LIMIT IMPOSED BY SECTION 20 OF ARTICLE X
OF THE STATE CONSTITUTION OR THE EXCESS STATE REVENUES CAP, AS
DEFINED IN SECTION 24-77-103.6 (6)(b)(l)(G); AND
(e) No OTHER ENTERPRISE CREATED SIMULTANEOUSLY OR WITHIN
THE PRECEDING FIVE YEARS SERVES PRIMARILY THE SAME PURPOSE AS THE
ROAD ENTERPRISE, AND THE ROAD ENTERPRISE WILL GENERA TE REVENUE
FROM PERMIT FEES OF LESS THAN ONE HUNDR E D MILLION DOLLARS TOT AL IN
ITS FIRST FIVE FISCAL YEARS. ACCORDINGLY, THE CREATION OF THE ROAD
ENTERPRISE DOES NOT REQUIRE VOTER APPROVAL PURSUANT TO SECTION
24-77-108.
43-4-1702. Definitions.
As USED IN THIS PART 17, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(1) "ENTERPRISE" MEANS THE ROAD ENTERPRISE CREATED IN
SECTION 43-4-1703.
(2) "FEES" MEANS THE PERMIT FEES FOR OVERSIZE AND OVERWEIGHT
VEHICLES AND LONGER VEHICLE COMBINATIONS IMPOSED BY THE
ENTERPRISE AND COLLECTED PURSUANT TO SECTIONS 42-4-505 AND
PAGE 25-HOUSE BILL 26-1430
42-4-510.
(3) "FUND" MEANS THE ROAD ENTERPRISE CASH FUND CREATED IN
SECTION 43-4-1704 (1 ).
43-4-1703. Road enterprise -creation -powers and duties.
(1) (a) THE ROAD ENTERPRISE IS AND OPERATES AS A
GOVERNMENT-OWNED BUSINESS WITHIN THE DEPARTMENT IN ORDER TO
EXECUTE ITS BUSINESS PURPOSE AS SPECIFIED IN SUBSECTION (2) OF THIS
SECTION BY EXERCISING THE POWERS AND PERFORMING THE DUTIES AND
FUNCTIONS SET FORTH IN THIS SECTION. THE TRANSPORTATION COMMISSION
CREATED IN SECTION 43-1-106 ( 1) SHALL SERVE AS THE ENTERPRISE BOARD
AND SHALL, WITH THE CONSENT OF THE EXECUTIVE DIRECTOR, APPOINT AN
ENTERPRISE DIRECTOR WHO POSSESSES SUCH QUALIFICATIONS AS THE
COMMISSION AND THE STATE PERSONNEL BOARD MAY ESTABLISH. THE
ENTERPRISE DIRECTOR SHALL OVERSEE THE DISCHARGE OF ALL
RESPONSIBILITIES OF THE ENTERPRISE AND SHALL SERVE AT THE PLEASURE
OF THE ENTERPRISE BOARD.
(b) THE ENTERPRISE IS A TYPE 1 ENTITY, AS DEFINED IN SECTION
24-1-105, AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES AND
FUNCTIONS UNDER THE DEPARTMENT. THE GOVERNING BOARD OF THE
ENTERPRISE IS MADE UP OF THE TRANSPORTATION COMMISSION CREATED IN
SECTION 43-1-106 (1).
(2) (a) THE BUSINESS PURPOSE OF THE ENTERPRISE IS TO COMPLETE
PREVENTIVE MAINTENANCE, REPAIR, REHABILITATION, AND
RECONSTRUCTION PROJECTS TO IMPROVE THE CONDITION OF THE ROADWAY
SURFACE OF THE ST ATE HIGHWAY SYSTEM AND TO SUPPORT THE ONGOING
MAINTENANCE OF THE ROADWAY SURF ACE.
(b) TO ALLOW THE ENTERPRISE TO ACCOMPLISH THIS PURPOSE AND
FULLY EXERCISE ITS POWERS AND DUTIES THROUGH THE ENTERPRISE BOARD,
THE ENTERPRISE MAY:
(I) IMPOSE FEES AS AUTHORIZED BY SECTION 43-4-1705 (1);
(II) ISSUE REVENUE BONDS PAYABLE FROM THE REVENUES AND
OTHER AVAILABLE MONEY OF THE ENTERPRISE PLEDGED FOR THEIR
PAGE 26-HOUSE BILL 26-1430
PAYMENT;
(111) SEEK, ACCEPT, AND EXPEND MONEY FROM FEDERAL SOURCES;
AND
(VI) SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, AND DONATIONS.
(3) THE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES OF
SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT
RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS
THAN TEN PERCENT OF ITS TOT AL ANNUAL REVENUE IN GRANTS FROM ALL
COLORADO STATE AND LOCAL GOVERNMENTS COMBINED. SO LONG AS IT
CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (3), THE
ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION.
(4) IN ADDITION TO ANY OTHER POWERS AND DUTIES SPECIFIED IN
THIS SECTION, THE ENTERPRISE HAS THE FOLLOWING GENERAL POWERS AND
DUTIES:
(a) To PROVIDE SERVICES AS SET FORTH IN SUBSECTION (2) OF THIS
SECTION; AND
(b) TO HA VE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY OR
INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES
GRANTED BY THIS SECTION.
43-4-1704. Road enterprise cash fund.
( 1) THE ROAD ENTERPRISE CASH FUND IS CREA TED IN THE ST A TE
TREASURY. THE FUND CONSISTS OF FEES THAT THE STATE TREASURER
CREDITS TO THE FUND PURSUANT TO SECTIONS 42-4-505 (l)(d) AND
42-4-510 ( 11 )( C ); GIFTS, GRANTS, AND DONATIONS; AND ANY OTHER MONEY
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE
FUND.
(2) THESTATETREASURERSHALLCREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO
THE FUND.
PAGE 27-HOUSE BILL 26-1430
(3) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE
ENTERPRISE FOR THE DIRECT AND INDIRECT COSTS OF SERVING ITS BUSINESS
PURPOSE AND IN PERFORMING ITS POWERS AND DUTIES AS THE PURPOSE,
POWERS, AND DUTIES ARE SET FORTH IN SECTION 43-4-1703 (2).
( 4) THE DEPARTMENT MAY TRANSFER MONEY FROM ANY LEGALLY
AVAILABLE SOURCE TO THE ENTERPRISE FOR THE PURPOSE OF DEFRA YING
EXPENSES INCURRED BY THE ENTERPRISE BEFORE IT RECEIVES FEE REVENUE
OR REVENUE BOND PROCEEDS. THE ENTERPRISE MAY ACCEPT AND EXPEND
ANY MONEY SO TRANSFERRED, AND, NOTWITHSTANDING ANY ST A TE FISCAL
RULE OR GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD
OTHERWISE BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION, SUCH
A TRANSFER IS A LOAN FROM THE DEPARTMENT TO THE ENTERPRISE THAT IS
REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION 20
(2)(d) OF ARTICLEXOFTHESTATECONSTITUTIONORASDEFINED IN SECTION
24-77-102 (7). ALL MONEY TRANSFERRED AS A LOAN TO THE ENTERPRISE
MUST BE CREDITED TO THE FUND. AS THE ENTERPRISE RECEIVES SUFFICIENT
REVENUE IN EXCESS OF EXPENSES, THE ENTERPRISE SHALL REIMBURSE THE
DEPARTMENT FOR THE PRINCIPAL AMOUNT OF ANY LOAN MADE BY THE
DEPARTMENT PLUS INTEREST AT A RATE SET BY THE DEPARTMENT.
43-4-1705. Road enterprise fees.
( 1) IN FURTHERANCE OF ITS BUSINESS PURPOSE, BEGINNING JANUARY
1, 2027, THE ENTERPRISE SHALL IMPOSE FEES FOR OVERSIZE AND
OVERWEIGHT VEHICLES AND LONGER VEHICLE COMBINATIONS.
(2) FOR THE PURPOSE OF MINIMIZING COMPLIANCE COSTS FOR FEE
PAYERS AND ADMINISTRATIVE COSTS, THE DEPARTMENT, AS DESCRIBED IN
SECTIONS 42-4-505 (l)(d) AND 42-4-510 (1 l)(c), SHALL PERFORM THE
COLLECTION, ADMINISTRATION, AND ENFORCEMENT OF THE FEES IMPOSED
BY THE ENTERPRISE PURSUANT TO SUBSECTION ( 1) OF THIS SECTION.
(3) AS REQUIRED BY SECTIONS 42-4-505 (l)(d) AND 42-4-510
(1 l)(c), THEDEPARTMENTSHALL TRANSMIT ANYFEEREVENUEITCOLLECTS
TO THE ST A TE TREASURER, WHO SHALL CREDIT THE REVENUE, MINUS THE
COSTS TO THE DEPARTMENT FOR COLLECTING THE FEES, TO THE FUND.
SECTION 24. Effective date. (1) Except as otherwise provided in
this section, this act takes effect upon passage.
PAGE 28-HOUSE BILL 26-1430
(2) Section 3 of this act takes effect only if House Bill 26-1289 does
not become law.
(3) Section 4 of this act takes effect only if House Bill 26-1289
becomes law, in which case section 4 takes effect upon passage or on the
effective date of House Bill 26-1289, whichever is later.
( 4) Section 5 of this act takes effect only if House Bill 26-1289 does
not become law and an initiative that amends the state constitution to
change existing law on transportation funding and to increase the amount
of state revenue dedicated to road transportation is approved by the people
at the next general election, in which case section 5 of this act takes effect
on the date of the official declaration of the vote thereon by the governor or
January 1, 2027, whichever is later.
(5) Section 6 of this act takes effect only if House Bill 26-1289
becomes law and an initiative that amends the state constitution to change
existing law on transportation funding and to increase the amount of state
revenue dedicated to road transportation is approved by the people at the
next general election, in which case section 6 of this act takes effect on the
date of the official declaration of the vote thereon by the governor or
January 1, 2027, whichever is later.
( 6) Section 7 of this act takes effect only if an initiative that amends
the state constitution to change existing law on transportation funding and
to increase the amount of state revenue dedicated to road transportation is
not approved by the people at the next general election or does not appear
on the statewide ballot for the next general election, in which case section
7 takes effect on the date of the official declaration of the vote thereon by
the governor or January 1, 2027, whichever is later.
(7) Sections 8 through 13, 18 through 20, and 22 of this act take
effect only if an initiative that amends the state constitution to change
existing law on transportation funding and to increase the amount of state
revenue dedicated to road transportation is approved by the people at the
next general election, in which case sections 8 through 13, 18 through 20,
and 22 of this act take effect on the date of the official declaration of the
vote thereon by the governor or January 1, 2027, whichever is later.
(8) Sections 16 and 17 of this act take effect only if a petition for
PAGE 29-HOUSE BILL 26-1430
any ballot issue that would be part of the statewide ballot for the general
election held on November 3, 2026, and that would amend the state
constitution to change existing law on transportation funding and to
increase the amount of state revenue dedicated to road transportation is
either:
(a) Not filed with the secretary of state on or before May 27, 2026,
in which case sections 16 and 17 of this act take effect on June 1, 2026; or
(b) Withdrawn on or before June 15, 2026, pursuant to section
1-40-134, Colorado Revised Statutes, from the statewide ballot for the
general election held on November 3, 2026, in which case sections 16 and
17 of this act take effect on June 16, 2026.
SECTION 25. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 30-HOUSE BILL 26-1430
the support and maintenance of the departments of the state and state
institutions.
Jul~'----...
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~~
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED oh \°h,vrs~ ~~ Lf~ -zp2l, c.v-t l2-\sO~
(Date and Time) [ •
Jared S.
GOVE
PAGE 31-HOUSE BILL 26-1430
FCOLORADO