Legislative Updates

2022 Post Session Report from Sewald Hanfling Public Affairs

The Second Session of the 73rd General Assembly concluded on May 11th with lawmakers working well into the evening ahead of the midnight deadline. Of the roughly 650 bills introduced throughout the legislative session, 130 bills had been signed into law by Governor Polis, 143 postponed indefinitely and 514 sent to the Governor for his signature.

May 2nd started the 30-Day Clock. This means any bill achieving final passage after that day has 30 days from adjournment to be acted on by the Governor – either signed or vetoed – or it automatically becomes law. Bills achieving final passage before that May 2nd date have only ten days for action by the Governor before they become law.

In addition to the bills we have kept you updated on over the past 120-plus days, we have provided a comprehensive list of this year’s most significant legislation below.

HB22-1355: Producer Responsibility Program For Recycling

Will charge businesses, specifically manufacturers of packaged goods, fees that would go toward creating a statewide recycling program known as a Producer Responsibility Organization (PRO). This bill was heavily amended and ended up exempting many industries from having to be a part of a PRO. While Maine and Oregon have recently adopted similar measures, the policy is a relatively new concept in the US with varying degrees of failure and success in Canada and Europe.

HB22-1326: Fentanyl Accountability And Prevention

The bill passed within final hours of the end of session, HB 1326 has been heavily amended and modified throughout its lifespan as a bill. As it makes its way to the Governor’s desk, HB 1326 makes the unlawful possession of any material, compound, mixture, or preparation that weighs more than 4 grams and contains any amount of fentanyl, carfentanal, or an analog thereof a level 4 drug felony. The bill would also allocate tens of millions of dollars to drug treatment and overdose prevention.

SB22-230: Collective Bargaining For Counties

Expands the rights of county employees to engage in collective bargaining. A highly anticipated and critiqued bill throughout the session, it has since been narrowed in scope to employees in counties with a population higher than 7,500.

Budget

HB22-1329: 2022-23 Long Bill

The total FY22-23 budget is $37.73 billion. It includes $13.72 billion in proposed General Fund spending, an increase of $1.48 billion (12%) from 2021-22. The budget also provides $637.5 million for capital construction and IT projects, considerably higher than the 2021-22 total of $367.7 million. The 15% General Fund reserve will total $2.03 billion. Other key elements of this year’s budget include a 3% raise for State Employees amounting to $75.3 millions and a 2% overall increase in community provider rates.

Business and Taxation

SB22-238: 2023 And 2024 Property Tax

Property taxes are set to be reduced by $700 million between 2023 and 2024 with the aim of helping people contend with the tax burden that has increased because of soaring property values in Colorado.

The bill reduces the valuation for assessment of nonresidential property, excluding agricultural and renewable energy production nonresidential property, from 29% of the actual value of the property to 27.9% of the actual value of the property. In addition, the bill reduces the valuation for assessment of residential property, including multi-family residential property, to 6.765% of the actual value of the property.

HB22-1416: Property Tax Administrative Procedures

Passed in conjunction with SB22-238, this bill would expand upon property tax assessment appeals process. HB22-1416 would specifically cap the amount values can be raised at the board of equalization, lengthen the appeals window, mandate notice of estimated taxes and notice of the abatement process, and open up the assessors handbook for review.

SB22-233: TABOR Refund Mechanism For FY 2021-22 Only

With this bill, Colorado taxpayers will receive their TABOR refunds by the Summer of 2022 instead of the Spring of 2023. Because of Colorado’s economic good fortune, individual filers will receive at least $500 and $1,000 for joint filers.

Climate and Environment

HB22-1244: Public Protections From Toxic Air Contaminants

Creates a new program to regulate a subset of air pollutants and allows the air quality control commission the authority to adopt rules that are more stringent than the corresponding requirements of the federal “Clean Air Act”. In its final form, some of the bill’s reporting rule adoption deadlines have been extended after concerns expressed by the Department of Public Health and Environment.

HB22-1026: Alternative Transportation Options Tax Credit

Replaces an existing income tax deduction for expenses by employers for providing alternative transportation options to employees with a refundable income tax credit of 50%.

SB22-193: Air Quality Improvement Investments

This bill sets aside $110 million to create several grant programs in the Colorado Energy Office and the Department of Public Health and Environment with the purpose of reducing air pollution. Some of those initiatives include, Industrial and Manufacturing Operations Clean Air Grant Program Cash Fund, Community Access to Electric Bicycles Cash Fund and Electrifying School Buses Grant Program Cash Fund.

Health

SB22-053: Health Facility Visitation During Pandemic

SB22-053 loosens visitation restrictions during a pandemic. This bill allows a patient in a hospital or long-term care facility to have one visitor during a pandemic.

HB22-1279: Reproductive Health Equity Act

Passed prior to the leaked opinion suggesting that the U.S. Supreme Court is poised to overturn Roe vs. Wade, HB22-1279 codifies the right to abortion in Colorado.

Education

HB22-1295: Department Early Childhood And Universal Preschool Program

Colorado 3- and 4- year olds will get access to 10 hours per week of free preschool under a program that will be overseen by a newly created Colorado Early Childhood Department. In 2020, Colorado voters approved a ballot measure to help fund the new preschool program with revenue from increased taxes on nicotine products. The department will also be responsible for a host of family and child services, and will license child care centers and work on recruiting and retaining early childhood workers.

SB22-008: Higher Education Support For Foster Youth

Requires all public higher education institutions in Colorado to waive undergraduate tuition and fees for any Colorado resident who have been in foster care. This bill will also create liaison positions to help foster students navigate through federal financial aid forms.

Looking Ahead

As of May 24, Governor Polis has until Friday, June 10th to decide the ultimate fate of the remaining unsigned bills passed by the legislature.

With the end of session, lawmakers are looking ahead to June and November as both parties prepare for their respective primaries next month (both on June 28th) and the election in November.

Regardless of this year’s electoral outcome, we look forward to continuing being a resource, advocate and partner to you during the interim and in 2023 and will continue to provide our expertise and analysis in the months to come.