Economic Development

C.R.S. tit. 24, art. 46
in effect

C.R.S. § 24-46-101 Legislative declaration

24-46-101. Legislative declaration. The general assembly hereby finds and declares that, in light of current economic conditions in Colorado, it is in the best interests of the people of this state that measures be taken to encourage, promote, and stimulate economic development and employment in Colorado. To that end, it is the purpose of this article to bring together people representing a broad spectrum of interests, including higher education, agriculture, advanced technologies, finance and banking, venture capital, energy, and industry, to review the economic condition of Colorado, to develop and implement programs for the promotion of economic development in Colorado, and to ensure that such economic development programs create employment opportunities for Colorado residents and benefit Colorado companies.

C.R.S. § 24-46-102 Colorado economic development commission - creation - membership - definition

24-46-102. Colorado economic development commission - creation - membership - definition. (1) There is created the Colorado economic development commission in the Colorado office of economic development, referred to in this article 46 as the "commission". (2) (a) The commission consists of the governor or the governor's designee and ten members who shall be appointed as follows: (I) Four members appointed by the governor, one of whom must be from west of the continental divide and one of whom must be from the eastern slope from a predominantly rural area; (II) Three members appointed by the speaker of the house of representatives, one of whom must have advanced industry business and research experience. In making this appointment, the speaker shall give preference to a person whose experience is in more than one advanced industry. (III) Three members appointed by the president of the senate, one of whom must have advanced industry business and research experience. In making this appointment, the president shall give preference to a person whose experience is in more than one advanced industry. (b) A member of the general assembly shall not be appointed as a member of the commission. (c) A member serves at the pleasure of the member's appointing authority. (d) As used in this subsection (2), "advanced industry" means the following industries: (I) Advanced manufacturing; (II) Aerospace; (III) Bioscience; (IV) Electronics; (V) Energy and natural resources; (VI) Infrastructure engineering; and (VII) Information technology. (3) Each July 1, the commission shall schedule an orientation with office of economic development staff in order to receive an official overview of the statutory requirements for a production company to earn a performance-based incentive for film production in Colorado as set forth in sections 24-48.5-114 and 24-48.5-116. (4) Beginning on September 1, 2022, the economic development commission shall establish a public-private partnership subcommittee to review proposed contracts, sales, and leases of state property as specified in section 24-94-105. The subcommittee consists of at least three members of the commission as selected by the commission. At no time shall all of the members of the subcommittee be appointees from the same appointing authority.

C.R.S. § 24-46-103 Commission - organization - meetings

24-46-103. Commission - organization - meetings. (1) The commission shall adopt its own rules of procedure, shall elect a chairman and a vice-chairman from its membership, and shall keep a record of its proceedings. (2) The commission shall meet at least once each quarter. Members shall serve without compensation but shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of their duties.

C.R.S. § 24-46-104 Powers and duties of commission

24-46-104. Powers and duties of commission. (1) The commission has the following powers and duties: (a) To adopt an annual budget; (b) To develop operating guidelines relating to the manner and forms of financial assistance such as loans, grants, and local match requirements to be provided for various types of projects; (c) To review the economic needs of the various geographical regions of Colorado; (d) To identify the types of businesses which need the most support in terms of economic development; (e) and (f) (Deleted by amendment, L. 91, p. 823, § 1, effective March 29, 1991.) (g) To make information and assistance available for businesses interested in relocating or expanding their operations in the state of Colorado; (h) To receive and expend donations or grants from the private sector; (i) To contract for those services, including personnel services, and materials required by the activities of the commission; (j) To review and recommend to the governor expenditures of moneys of the fund for economic incentives and marketing, as provided in section 24-46-105, for reimbursement for actual and necessary expenses of the commission, as authorized in section 24-46-103 (2), and for operational expenses of the commission; (k) To exercise any other powers or perform any other duties which are consistent with the purposes for which the commission was created and which are reasonably necessary for the fulfillment of the commission's assigned responsibilities; (l) and (m) Repealed. (n) To contract with the Colorado housing and finance authority, created in part 7 of article 4 of title 29, for the operation of: (I) A Colorado credit reserve program for the purpose of increasing the availability of credit to small businesses in Colorado; and (II) Repealed. (o) To oversee the Colorado office of film, television, and media loan guarantee program pursuant to section 24-48.5-115 and the performance-based incentive for film production in Colorado pursuant to section 24-48.5-116; and (p) To consult with the Colorado office of economic development pursuant to section 24-48.5-117. (q) (I) To expend eight million dollars to contract with the Colorado housing and finance authority, created in part 7 of article 4 of title 29, for the creation and operation of one or more of the following programs to benefit low- to moderate-income residents in local governments that have been certified as accessory dwelling unit supportive jurisdictions by the department of local affairs: (A) An accessory dwelling unit credit enhancement program that supports lenders offering affordable loans to eligible low- and moderate-income borrowers for the construction or conversion of accessory dwelling units; (B) A program that allows for the buying down of interest rates on loans made to eligible low- and moderate-income borrowers in connection with the construction or conversion of accessory dwelling units; (C) A program that offers down payment assistance in connection with accessory dwelling units, principal reduction on loans to eligible low- and moderate-income borrowers made in connection with accessory dwelling units, or both; or (D) A program in which the Colorado housing and finance authority offers loans, revolving lines of credit, or grants to eligible non-profits, public housing authorities, and community development financial institutions to make direct loans or grants to support the construction or conversion of accessory dwelling units for low- and moderate-income borrowers or tenants. (II) Any contract made by the commission with the Colorado housing and finance authority pursuant to this subsection (1)(q) may include normal and customary fees and expenses for administrating the programs described in this subsection (1)(q). ons to make direct loans or grants to support the construction or conversion of accessory dwelling units for low- and moderate-income borrowers or tenants. (II) Any contract made by the commission with the Colorado housing and finance authority pursuant to this subsection (1)(q) may include normal and customary fees and expenses for administrating the programs described in this subsection (1)(q). (2) The commission shall report to the general assembly no later than November 1 of each year regarding the work of the commission. The report shall include the information required to be collected by the commission pursuant to section 24-46-105.1.

C.R.S. § 24-46-104.3 Transferable income tax credits for certain businesses located in the state - definitions

24-46-104.3. Transferable income tax credits for certain businesses located in the state - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Business" means a person doing business in the state. (b) "Department" means the Colorado department of revenue. (c) "Income tax credit" means the income tax credits allowed to a business no sooner than the income tax year commencing January 1, 2019, in section 39-22-531, 39-30-104, 39-30-105.1, or 39-30-105.5. (d) "Office" means the Colorado office of economic development created in section 24-48.5-101. (e) "Period" means ten consecutive income tax years starting with the business' income tax year that commences immediately following the date the business receives precertification from the commission authorizing the income tax credits to be treated differently pursuant to this section. (f) "Precertification" means the written precertification the commission may issue as allowed in subsection (2)(a) of this section that must set forth the income tax credits a business may treat differently and the total estimated value of the income tax credits that the business may treat differently pursuant to this section. (g) "Strategic capital investment" means a capital investment totaling not less than one hundred million dollars that the commission finds will be significant to the state and is expected to be productive over many years. (h) "Twelve-month interval" means each twelve-month interval from July 1, 2017, through June 30, 2020, during which the commission may issue precertifications. (2) (a) (I) Subject to the limitations specified in subsection (2)(b) of this section, commencing July 1, 2017, through June 30, 2020, if a business intends to make a strategic capital investment in the state, the commission may issue a written precertification to the business to grant the business the authority to treat its allowed income tax credits during the business' period differently as specified in this section. The strategic capital investment must be initiated after the issuance of the precertification and completed before the end of the business' period; except that, if a business makes a strategic capital investment that could result in allowed income tax credits with a total value greater than the precertification limitations set forth in subsection (2)(b) of this section, the commission may issue a second or third written precertification to the same business in the following twelve-month intervals for the same strategic capital investment, even if the strategic capital investment has already been initiated or completed. If, after precertification and during the business' period, the business meets the requirements of one or more of the income tax credits as set forth in the statutory sections pertaining to each credit, then once the income tax credits are allowed, the business may elect, by filing a written election as specified in subsection (2)(a)(III) of this section, to: (A) Use the income tax credits as an offset against the business' income taxes in the income tax year that the income tax credit is allowed; (B) Carry forward the income tax credits to be used against the business' income tax liability for no more than five years, except as provided in subsection (2)(a)(II) of this section, using the carried forward income tax credits in the earliest income tax years possible; or (C) Transfer the income tax credits during the carry-forward period described in subsection (2)(a)(I)(B) of this section and as allowed in subsection (4) of this section. (II) The five-year carry-forward period commences when the income tax credit is allowed and is not limited by the end of the business' period described in this section. tax credits in the earliest income tax years possible; or (C) Transfer the income tax credits during the carry-forward period described in subsection (2)(a)(I)(B) of this section and as allowed in subsection (4) of this section. (II) The five-year carry-forward period commences when the income tax credit is allowed and is not limited by the end of the business' period described in this section. (III) If a business elects to treat its allowed income tax credits differently as specified in this section and as allowed in the precertification, the business must file a written election with the office. If the business files the written election, then, except as provided in subsection (2)(b)(II) of this section, the business may not elect to receive a refund as allowed in section 39-30-104 (2.6). (b) (I) All precertifications issued by the commission in each twelve-month interval may not exceed ten million dollars of estimated total value of all income tax credits. Any portion of the ten million dollars not precertified in a twelve-month interval may not be carried forward to the next twelve-month interval. (II) If the actual value of the income tax credits that a business is allowed exceeds the precertification's estimated value of the income tax credits, then the business may not treat the difference between the estimated value of the income tax credits and the actual value of the income tax credits differently as specified in this section. Instead, the difference must be treated as specified in the statutory sections for each income tax credit. (3) The business shall notify the commission when the business has met the requirements of one or more of the income tax credits in the period, shall provide the commission with verifiable evidence that the strategic capital investment was made, and shall submit an audit opinion from an independent certified public accountant attesting that the income tax credit or income tax credits have been properly calculated. If the commission agrees that the business has satisfied the terms of the precertification, then the office shall notify the department in writing of the different treatment of the business' income tax credits for the business' period. (4) (a) If the business chooses to transfer its allowed income tax credits, then the income tax credits are freely transferable and assignable, subject to the commission's issuance of the precertification pursuant to this section, and subject to any notice and verification requirements to be determined by the office; except that the business may only transfer the portion of the income tax credits that were not applied against the business' income tax imposed by article 22 of title 39. (b) The transferee may use all or a portion of the transferred income tax credit as an offset against the transferee's income tax imposed by article 22 of title 39. Any unused portion of the transferred income tax credit may be carried forward and used as an income tax credit against the transferee's subsequent years' income tax liability for an interval not to exceed three additional income tax years from the date of the transferee's acquisition and shall be applied first to the earliest income tax years possible. The transferee may transfer any unused portion of the acquired income tax credit to a secondary transferee in that three income tax year interval, but the secondary transferee may only offset its acquired income tax credit against its income tax imposed by article 22 of title 39 for the remainder of the three income tax year intervals from the date of the first transferee's acquisition. possible. The transferee may transfer any unused portion of the acquired income tax credit to a secondary transferee in that three income tax year interval, but the secondary transferee may only offset its acquired income tax credit against its income tax imposed by article 22 of title 39 for the remainder of the three income tax year intervals from the date of the first transferee's acquisition. (c) With respect to the income tax credit set forth in section 39-30-104, if the business seeks a waiver of the limitation specified in section 39-30-104 (2)(c) and as allowed in section 39-30-104 (2)(c)(II), and the commission approves such waiver, then the approved waiver of the limitation must be reflected in the precertification and applies to any transferee of the business' income tax credit allowed under section 39-30-104. (d) The office shall establish notice and verification requirements for transferred income tax credits. (e) The transferor and the transferee of the income tax credits shall jointly file a copy of the written transfer agreement with the office within thirty days after the transfer. Any filing of the written transfer agreement with the office perfects the transfer. (f) The office shall develop a system to track the transfers of income tax credits and to certify the ownership of the income tax credits. A certification by the office of the ownership and the amount of income tax credits may be relied on by the department and the transferee as being accurate to the extent the data supplied by the business is accurate, and the office shall not adjust the amount of income tax credits as to the transferee. The office, the department, and any other state agency retain any remedies they may have against the business and any other taxpayer that misrepresents the value of the transferable income tax credit in a transfer. The office shall establish policies to permit verification of the ownership and amount of the income tax credits and shall post those policies on the office's website; except that the policies may not unduly restrict or hinder the transfer of the tax credits as allowed in this section. (g) The office shall provide a report to the department specifying the ownership and transfers of income tax credits as allowed in this section. The report must be provided on a schedule to be determined by the department and the office. (5) The commission and the office shall post on the office's website all nonconfidential information related to the precertification and approval of the treatment of the income tax credits as specified in this section. Nothing in this section may be construed to abrogate the confidentiality provisions set forth in section 39-21-113. (6) The commission shall include information regarding any transferability authorized pursuant to this section, including the names of the businesses and the amounts transferred, in its annual report required to be presented to the general assembly pursuant to section 24-46-104 (2). The commission shall annually report the same information to the finance committees of the house of representatives and the senate, or such successor committees, notwithstanding the limitations in section 24-1-136 (11).

C.R.S. § 24-46-104.5 Statewide enterprise zone - existing enterprise zones - recommendations to the general assembly - repeal

24-46-104.5. Statewide enterprise zone - existing enterprise zones - recommendations to the general assembly - repeal. (Repealed)

C.R.S. § 24-46-105 Colorado economic development fund - creation - report - repeal

24-46-105. Colorado economic development fund - creation - report - repeal. (1) (a) There is hereby created a fund to be known as the Colorado economic development fund, referred to in this part 1 as the "fund", which shall be administered by the commission and which consists of all money that may be available to the commission. The commission may transfer to the fund any general fund money appropriated to the commission and the commission may expend such money without further appropriation. (b) (I) On April 1, 2023, the state treasurer shall transfer five million dollars from the general fund to the fund. The commission shall allocate the money transferred pursuant to this subsection (1)(b)(I) to the Colorado office of economic development created pursuant to section 24-48.5-101 to use in connection with the federal "Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022", Pub.L. 117-167. (II) In addition to the reporting requirements specified in section 24-48.5-101 (7) and notwithstanding the requirement in section 24-1-136 (11)(a)(I), on or before November 1, 2023, and on or before November 1 of each year thereafter through 2028, the Colorado office of economic development shall submit a report to the joint budget committee detailing how the Colorado office of economic development is expending the money transferred pursuant to subsection (1)(b)(I) of this section and detailing all projects that the Colorado office of economic development funded pursuant to the federal "Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022", Pub.L. 117-167. The report must include the following information: (A) A detailed list of the projects funded; (B) The identity of all entities receiving funding and the geographic location of the entities receiving funding; (C) The type of funding provided; (D) Any anticipated economic benefits that the funding is expected to produce; (E) Project timelines and anticipated completion dates; (F) Any efforts to provide funding to rural or underserved areas; and (G) The amount of any administrative costs related to administering the money transferred pursuant to subsection (1)(b)(I) of this section. (III) This subsection (1)(b) is repealed, effective December 31, 2028. (c) (I) On July 1, 2024, the state treasurer shall transfer eight million dollars from the general fund to the fund. The commission shall use the funds transferred pursuant to this subsection (1)(c)(I) to contract with the Colorado housing and finance authority, created in part 7 of article 4 of title 29, for the purposes described in section 24-46-104 (1)(q). (II) This subsection (1)(c) is repealed, effective July 1, 2025. (2) The moneys in the fund shall be subject to annual appropriation by the general assembly, except as provided in subsection (2.5) of this section, for the purposes of this part 1. Any moneys not expended or encumbered from any appropriation at the end of any fiscal year shall remain available for expenditure in the next fiscal year without further appropriation. Any interest earned on the investment or deposit of moneys in the fund shall not be credited to the general fund of the state but shall instead be credited to the revolving account created in subsection (2.5) of this section. Contributions of money, property, or services may be received from any state agency, county, municipality, federal agency, person, or corporation for use in carrying out the purposes of this part 1. (2.5) (a) The moneys in the fund may be used by the commission to make grants or loans to both public and private persons and entities for use in carrying out the purposes of this part 1, subject to the provisions of paragraph (b) of this subsection (2.5) and subsections (3) and (4) of this section. In determining whether to make a grant or loan, the commission shall consider each of the following guidelines: (I) The amount of the grant or loan; e commission to make grants or loans to both public and private persons and entities for use in carrying out the purposes of this part 1, subject to the provisions of paragraph (b) of this subsection (2.5) and subsections (3) and (4) of this section. In determining whether to make a grant or loan, the commission shall consider each of the following guidelines: (I) The amount of the grant or loan; (II) The number of jobs that are likely to be generated in the state as a direct or indirect result of the facility or operation the grant or loan would fund and ancillary facilities thereto; (III) The quality and wage level of jobs created; (IV) The extent to which a person or entity establishing or expanding a business operation or facility intends to employ Colorado residents at the new or expanded operation or facility the grant or loan would fund and ancillary facilities thereto; (V) The extent to which a person or entity establishing or expanding a business facility or operation intends to contract with Colorado residents and Colorado-based companies for services and goods at the new or expanded operation or facility the grant or loan would fund and ancillary facilities thereto; and (VI) The extent of the public benefits expected to result from the grant or loan. (b) The commission may establish whatever terms and conditions it deems appropriate in making grants or loans pursuant to this section; except that the terms and conditions established by the commission shall meet or exceed the requirements established in subsection (4) of this section for a grant or loan awarded in part or in whole based on a private person's or entity's creation of full-time permanent new jobs in the state. The loan amount and any interest earned thereon shall be paid back to the commission, and such moneys shall be credited to a special account in the fund to be known as the revolving account. In accordance with subsection (2) of this section, interest earned on the investment or deposit of moneys in the economic development fund shall also be credited to the revolving account. All moneys in the revolving account may be used by the commission to make loans and grants as provided in this subsection (2.5) without further appropriation by the general assembly. The commission shall not approve grants or loans to state departments or agencies for specific projects which are typically considered by the general assembly in the general appropriation bill or in supplemental appropriation bills unless the joint budget committee approves the application for such grants or loans. (3) The governor is not authorized to expend moneys from the fund unless such expenditure has been reviewed and recommended by the commission. The governor may reject any recommendations by the commission. (4) (a) The commission shall award a grant or loan from moneys in the fund based in part or in whole on a private person's or entity's creation of full-time permanent new jobs in the state, only if the person or entity: (I) Pays all of its new employees hired on or after August 3, 2007, a minimum wage as determined by the commission; (II) Creates one or more new jobs and maintains the jobs for at least one year; and (III) (A) Has not been adjudicated to be in violation of any federal, state, or local laws affecting the health, safety, or working conditions of employees for at least the prior five years, as certified by the person or entity; or (B) Has been adjudicated to be in violation of a federal, state, or local law affecting the health, safety, or working conditions of employees within five years of applying for a grant or loan pursuant to this section, but can provide evidence to the commission that it has corrected the violation or has taken steps to correct the violation and can provide an estimated date by which the violation will be corrected. dicated to be in violation of a federal, state, or local law affecting the health, safety, or working conditions of employees within five years of applying for a grant or loan pursuant to this section, but can provide evidence to the commission that it has corrected the violation or has taken steps to correct the violation and can provide an estimated date by which the violation will be corrected. (b) The provisions of this subsection (4) do not apply to the following: (I) A nonprofit entity; (II) An intern or trainee who is under the age of twenty-one and who is employed for a period of not longer than three months; or (III) Grants awarded to new businesses under the rural jump-start zone act under section 39-30.5-105 (5). (c) No person or entity shall pay an employee through a third party or treat an employee as a subcontractor or independent contractor to avoid the requirements of this subsection (4). The provisions of this paragraph (c) shall not apply to a person or entity that hires subcontractors or independent contractors in the normal course of the person's or entity's business. (5) and (6) Repealed. (7) (a) There is hereby created an account within the Colorado economic development fund established pursuant to subsection (1) of this section to be known as the rural jump-start zone grant fund account. The account consists of any money appropriated to the fund by the general assembly. The money in the account is subject to annual appropriation by the general assembly for the purposes set forth in this subsection (7). Any money not expended or encumbered from any appropriation at the end of any fiscal year remains available for expenditure in the next fiscal year without further appropriation. The money in the account may be used: (I) By the commission to make grants as set forth in sections 39-30.5-104 (7)(c) and (7)(d) and 39-30.5-105 (5); and (II) For the direct and indirect costs that the Colorado office of economic development incurs, not to exceed three hundred thousand dollars to administer the rural jump-start zone grant program under section 39-30.5-105 (5). (b) This subsection (7) is repealed, effective July 1, 2025. Any money remaining in the rural jump-start zone grant fund account on June 30, 2025, reverts to the general fund.

C.R.S. § 24-46-105.1 Reporting requirement - new jobs created

24-46-105.1. Reporting requirement - new jobs created. (1) Every private person or entity that receives a grant or loan from the commission pursuant to this article, awarded in part or in whole on the basis of the person's or entity's creation of full-time permanent new jobs with wage requirements shall file a progress report with the commission. The progress report shall include, but shall not be limited to, the following: (a) The name of the person or entity that received the grant or loan and, if the recipient is an entity, the name of the chief officer of the entity; (b) The business address and business phone number of the person or entity that received the grant or loan; (c) The amount of the grant or loan awarded to the person or entity by the commission; (d) A statement of the number of new full-time permanent jobs that the person or entity that received the grant or loan has created to date; (e) Payroll or other data to verify the number of new jobs created by the person or entity; (f) The average annual compensation level of new full-time permanent employees of the new jobs created; (g) A statement as to whether the person or entity that received the grant or loan reduced employment at any other site controlled by the person or entity in the state as a result of automation, merger, acquisition, corporate restructuring, or other business activity; and (h) Any other information reasonably required by the commission to evaluate the progress of the person or entity that received the grant or loan and the effectiveness of awarding the grant or loan. (2) The progress report submitted to the commission shall include a signed certification by the private person who received the grant or loan or, if the recipient is a private entity, the chief officer of the entity that received the grant or loan as to the accuracy of the progress report. (3) Any private person or entity that receives a grant or loan pursuant to this article based in part or in whole on the person's or entity's creation of full-time permanent new jobs in the state shall file the progress report required pursuant to subsection (1) of this section. (4) The commission shall include the information collected each year pursuant to subsection (1) of this section in the commission's report to the general assembly pursuant to section 24-46-104 (2). The commission's report shall also include a statement as to whether the private person or entity that received the grant or loan has achieved the person's or entity's job creation and wage requirement. (5) The commission shall inform a private person or entity that receives a grant or loan based in part or in whole on the person's or entity's creation of full-time permanent new jobs in the state that the person or entity is required to comply with the requirements of this section at the time the commission awards the grant or loan.

C.R.S. § 24-46-105.3 Economic development incentives - employers in compliance with federal law - legislative declaration

24-46-105.3. Economic development incentives - employers in compliance with federal law - legislative declaration. (1) The general assembly hereby finds and declares that the commission encourages, promotes, and stimulates economic development and employment in Colorado by awarding economic development incentives to employers in the form of grants, loans, and performance-based incentives. The general assembly further finds that it is in the best interest of the people of the state to ensure that United States citizens and others lawfully present in the state are the beneficiaries of employment opportunities that are made possible through moneys awarded to employers the commission. The general assembly recognizes that many local governments also participate in programs to develop new businesses, expand existing businesses, promote economic development within their jurisdictions, and create employment opportunities for Colorado. The general assembly further recognizes that it would be in the best interest of the people of the state if local governments would take steps to ensure that United States citizens and others lawfully present in the state are the beneficiaries of employment opportunities created through economic development incentives offered at the local level. Therefore, the general assembly hereby encourages all local governments that participate in economic development incentive programs to develop standards to ensure that all employers who are awarded economic development incentives employ only United States citizens or people who are lawfully present in the state and have the authority to work. (2) In addition to the requirements specified for any employer to receive a grant, loan, performance-based incentive, or other economic development incentive pursuant to the provisions of this article, an employer shall be in compliance with the provisions of 8 U.S.C. sec. 1324a in order to be eligible to receive such economic development incentive. The commission shall develop a procedure by which an employer that receives an economic development incentive pursuant to this article shall provide proof to the commission that each employee employed by the employer within the United States is a United States citizen or, if not a United States citizen, is lawfully present in the state and authorized to work. (3) During the process of awarding a grant, loan, performance-based incentive, or other economic development incentive to an employer, the commission shall have the discretion to determine when to verify that the employer is in compliance with the provisions of 8 U.S.C. sec. 1324a. (4) If the commission determines that an employer who receives an economic development incentive pursuant to this article is not in compliance with the provisions of 8 U.S.C. sec. 1324a, or is unable to prove that it is in compliance with the requirements of 8 U.S.C. sec. 1324a, the commission shall notify the employer by certified mail of the commission's determination of noncompliance. The employer shall repay the total amount of money received as an economic development incentive to the commission within thirty days of receipt of the notice. (5) Notwithstanding the provisions of this article, any employer that has been issued a notice of noncompliance pursuant to subsection (4) of this section shall be ineligible to qualify for a grant, loan, performance-based incentive, or other economic development incentive awarded pursuant to this article for five years after the date that the employer has repaid the commission in full pursuant to the requirements of subsection (4) of this section. any employer that has been issued a notice of noncompliance pursuant to subsection (4) of this section shall be ineligible to qualify for a grant, loan, performance-based incentive, or other economic development incentive awarded pursuant to this article for five years after the date that the employer has repaid the commission in full pursuant to the requirements of subsection (4) of this section. (6) Upon determination that an employer is ineligible to receive an economic development incentive pursuant to this section, the commission shall allow the employer to appear at a hearing before the commission and to establish proof that the employer is in compliance with the provisions of 8 U.S.C. sec. 1324a. The commission shall satisfy the requirements of this subsection (6) within existing resources. (7) This section shall be enforced without regard to race, religion, gender, ethnicity, or national origin.

C.R.S. § 24-46-105.5 Local economic development - participation in federal programs

24-46-105.5. Local economic development - participation in federal programs. Any local government may participate in federal programs to develop new business, expand existing business, or promote economic development within its jurisdiction. Any local government participating in such programs may enter into contracts for the administration of such programs and expend moneys as required for participation in such programs.

C.R.S. § 24-46-105.7 Performance-based incentive for new job creation - new jobs incentives cash fund

24-46-105.7. Performance-based incentive for new job creation - new jobs incentives cash fund. (1) (Deleted by amendment, L. 2008, p. 943, § 1, effective August 5, 2008.) (2) On or after January 1, 2006, but prior to January 1, 2011, any employer that satisfies the criteria that the commission has established for an employer to qualify for a grant or a loan from the commission pursuant to section 24-46-105 (2.5) may be eligible to receive a performance-based incentive from the commission from the moneys in the new jobs incentives cash fund created in this section. (3) An employer that qualifies to receive a performance-based incentive for new jobs created pursuant to this section and that qualifies for an income tax credit pursuant to section 39-30-105.1, shall be allowed to receive the incentive allowed pursuant to this section and claim the credit allowed pursuant to section 39-30-105.1. (4) (a) and (b) (Deleted by amendment, L. 2008, p. 943, § 1, effective August 5, 2008.) (c) The commission shall develop procedures for the administration of this section, including establishing a procedure for employers to apply for performance-based incentives and for the commission to issue payment of the incentives. (5) On or before March 1, 2007, and on or before March 1 of each year thereafter, the commission shall report to the business affairs and labor committee of the house of representatives and the business affairs, labor, and technology committee of the senate, or any successor committees, regarding the performance-based incentives awarded pursuant to this section. The report shall include but need not be limited to the number of employers that received the performance-based incentive pursuant to this section and the total amount of all incentives received during the most recent fiscal year for which such information is available. (6) The total amount of performance-based incentives that the commission issues pursuant to this section in any fiscal year shall not exceed the amount appropriated to the commission to be used for the purposes of this section in the applicable fiscal year. The commission shall issue incentives to applicants at the commission's discretion until the amount appropriated has been expended. (7) (a) The commission shall not allow any employer that has been approved to receive a performance-based incentive for the creation of new jobs prior to June 5, 2006, to claim an incentive pursuant to this section for the same jobs for which the previous incentive was approved. (b) (Deleted by amendment, L. 2008, p. 943, § 1, effective August 5, 2008.) (8) Of the total amount appropriated by the general assembly to the commission to be used for the purposes of this section, an amount equal to fifteen percent of the amount appropriated shall be used by the commission to award performance-based incentives pursuant to this section to employers who open a new business or expand or relocate an existing business and create new jobs in an enterprise zone that is not within the boundaries of the counties of Denver, Boulder, Douglas, Arapahoe, Jefferson, or Broomfield. (9) (a) There is hereby created in the state treasury the new jobs incentives cash fund, referred to in this section as the "fund". The fund shall consist of: (I) Money transferred to the fund in accordance with section 44-30-701 (2); and (II) Any moneys appropriated to the fund by the general assembly. (b) The moneys in the fund shall be annually appropriated by the general assembly for the purposes of this section. All moneys not expended or encumbered, and all interest earned on the investment or deposit of moneys in the fund, shall remain in the fund and shall not revert to the general fund at the end of any fiscal year. Any moneys not expended or encumbered from any appropriation at the end of any fiscal year shall remain available for expenditure in the next fiscal year without further appropriation.

C.R.S. § 24-46-105.8 Performance-based incentive for film production in Colorado - film incentives cash fund - definitions

24-46-105.8. Performance-based incentive for film production in Colorado - film incentives cash fund - definitions. (1) to (3) (Deleted by amendment, L. 2009, (HB 09-1010), ch. 419, p. 2332, § 3, effective July 1, 2009.) (4) Repealed. (5) and (6) (Deleted by amendment, L. 2009, (HB 09-1010), ch. 419, p. 2332, § 3, effective July 1, 2009.)

C.R.S. § 24-46-106 Repeal of part

24-46-106. Repeal of part. This part 1 is repealed, effective July 1, 2035.

C.R.S. § 24-46-107 Temporary extension of carry-forward provisions - Colorado job growth incentive tax credit - enterprise zone tax credits - definitions - repeal

24-46-107. Temporary extension of carry-forward provisions - Colorado job growth incentive tax credit - enterprise zone tax credits - definitions - repeal. (1) As used in this section, unless the context otherwise requires: (a) "Office" means the Colorado office of economic development created in section 24-48.5-101. (b) (I) "Taxpayer" means any person doing business in the state, including an affiliated group, that operates in a strategic industry that was disproportionally impacted by the COVID-19 pandemic and experienced significant financial hardship caused by the COVID-19 pandemic. (II) "Strategic industry" and "significant financial hardship" for purposes of the definition of "taxpayer" in subsection (1)(b)(I) of this section shall be determined by the commission and the office. When determining significant financial hardship, any financial assistance or relief that the taxpayer may have received from other sources including federal, state, or local assistance may be considered but shall not be dispositive for purposes of eligibility. (2) The commission may allow a taxpayer to carry forward for a period of five years the tax credits set forth in section 39-22-531 and in article 30 of title 39 that would otherwise expire between January 1, 2021, and December 31, 2025; except that the aggregate amount of all tax credits permitted to be carried forward pursuant to this subsection (2) is zero dollars for the first two years in the five-year period, ten million dollars for the third year in the five-year period, and fifteen million dollars for the fourth and fifth year in the five-year period and the tax credit set forth in section 39-30-103.5 is not eligible for the five-year carry-forward period set forth in this section. Taxpayers must apply to the commission and the office pursuant to subsection (3) of this section for approval to carry forward the tax credits as set forth in this subsection (2). (3) (a) A taxpayer may apply for approval by the commission to carry forward a tax credit as set forth in subsection (2) of this section in accordance with timing, deadlines, policies, and procedures established by the commission, in consultation with the office, and as follows: (I) A taxpayer shall apply one time to the commission for the extended carry-forward period set forth in subsection (2) of this section and must identify in the application all of the anticipated credits that the taxpayer requests to extend for each tax year that the extended period applies to; (II) At a minimum, the application must include certification by the taxpayer's president, chief executive officer, or chief financial officer that, based on the taxpayer's current and expected financial results, it is anticipated that the taxpayer will not be able to use the tax credits before the credits expire as the result of losses experienced during tax years 2020 and 2021 due to the COVID-19 pandemic; (III) The application must include documentation from the taxpayer demonstrating significant financial hardship caused by the COVID-19 pandemic; and (IV) In consultation with potential applicants, the commission and the office shall determine additional appropriate policies, procedures, requirements, and deadlines to administer the application process and extension approvals pursuant to this section, which may include additional verification procedures to demonstrate that applicants are making bonafide requests for the five-year extension. nd (IV) In consultation with potential applicants, the commission and the office shall determine additional appropriate policies, procedures, requirements, and deadlines to administer the application process and extension approvals pursuant to this section, which may include additional verification procedures to demonstrate that applicants are making bonafide requests for the five-year extension. (b) In consultation with the office, the commission shall receive, review, and approve applications by taxpayers on a first come, first served, rolling basis. In addition to the application requirements set forth in subsection (3)(a) of this section, the commission may consider additional economic development commitments to the state by the taxpayer in determining approval of applications including: (I) The size of the taxpayer's current operation in the state relative to both the state as a whole and the region the taxpayer is based in; (II) Any strategic economic development benefits that the taxpayer provides with existing operations to the state in terms of supply chain, benefits to other industries, or other spillover benefits that the applicant's operations provide to the state or region; and (III) Any additional forthcoming economic development benefits that the taxpayer may provide to the state or region based on commitments that the applicant has recently made or proposes that are outside the scope of the original incentive award. (c) When an application is approved, the commission shall issue letters to the department of revenue and approved taxpayers that must specify the type and amount of credits eligible for the five-year extension and for what years in the period the extension is eligible. (4) This section is repealed, effective July 1, 2035.

C.R.S. § 24-46-108 Refundable income tax credits for certain businesses located in the state - definitions - repeal

24-46-108. Refundable income tax credits for certain businesses located in the state - definitions - repeal. (1) As used in this section, unless the context otherwise requires: (a) "Advanced manufacturing" means the use of innovative technologies and processes to enhance existing and create new products, including, but not limited to, production activities that depend on automation, computation, enhanced prototyping, lasers, networking, robotics, sensing, simulation, and software, and other similar activities as may be determined by the commission, in this state. (b) "ARPA" means the federal "American Rescue Plan Act of 2021", Pub.L. 117-2, as amended. (c) "CHIPS Act" means the federal "Creating Helpful Incentives to Produce Semiconductors and Science Act of 2022", Pub.L. 117-167, as amended. (d) "Department" means the department of revenue. (e) "Income tax credit" means an income tax credit allowed to a taxpayer under section 39-30-104, 39-30-105.1, 39-30-105.5, or 39-22-531 (2) and (3)(a)(I)(D). (f) "Investor" means a partner, shareholder, or member of a tax payer that is a partnership, limited liability company, S corporation, or other similar pass-through entity. (g) "Office" means the Colorado office of economic development created in section 24-48.5-101. (h) "Project" means a taxpayer's advanced manufacturing or semiconductor manufacturing business activities. (i) "Refund certificate" means a written, conditional approval by the commission that is associated with a taxpayer's approved project and that sets forth the maximum amount of income tax credits that the taxpayer may claim as a refund in accordance with this section. (j) (I) "Semiconductor manufacturing" means the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture or enhance semiconductors, or semiconductor manufacturing equipment in this state for which a taxpayer may receive federal financial assistance under the CHIPS Act. (II) The definition of "semiconductor manufacturing" for purposes of this section may be modified or expanded by the commission, including to reflect any differences between the definition in subsection (1)(j)(I) of this section and the definition of "semiconductor manufacturing" that may be used by the United States department of commerce in implementing the CHIPS Act. (k) "Taxpayer" means a person engaged in advanced manufacturing or semiconductor manufacturing that is subject to tax under article 22 of title 39. (2) (a) Subject to the limitations set forth in subsection (2)(b) of this section, for state fiscal years 2023-24 through 2028-29, the commission may approve and issue a refund certificate if the applicant demonstrates that the applicant is a taxpayer that is engaged in or will engage in a project eligible for an income tax credit. Subject to the conditions in subsection (7) of this section and any other conditions established by the commission, a taxpayer that holds a refund certificate may claim a refund of eighty percent of the income tax credit types listed on the refund certificate that are earned by the taxpayer during the twelve years following the commission's approval and are not used to offset the taxpayer's state income taxes due. The limitations on the amount of credit allowed per income tax year set forth in sections 39-30-104 (2)(c) and 39-30-105.5 (2) do not apply to income tax credits refunded under this section. Refunds of the income tax credits claimed pursuant to this section are a reduction in tax revenue. ve years following the commission's approval and are not used to offset the taxpayer's state income taxes due. The limitations on the amount of credit allowed per income tax year set forth in sections 39-30-104 (2)(c) and 39-30-105.5 (2) do not apply to income tax credits refunded under this section. Refunds of the income tax credits claimed pursuant to this section are a reduction in tax revenue. (b) The commission shall approve refund certificates pursuant to this section subject to the following limitations: (I) The maximum total amount of income tax credits for which the commission may approve refund tax credit certificates for all taxpayers is fifteen million dollars per fiscal year; except that, if the commission approves refund certificates for less than fifteen million dollars of income tax credits during any fiscal year, the remaining authorized but unencumbered amount of income tax credits is added to the maximum amount of income tax credits for which the commission may approve refund certificates during the next fiscal year; (II) The maximum total amount of income tax credits for which the commission may approve refund certificates for all taxpayers for all fiscal years from July 1, 2023, through June 30, 2028, is seventy-five million dollars; except that, if the commission has approved refund certificates for less than seventy-five million dollars of income tax credits on June 30, 2028, the commission may approve refund certificates for new and existing applicants equal to the remaining amount through the fiscal year ending June 30, 2029; and (III) Compliance with the limitations set forth in this subsection (2)(b) shall be calculated based on the total amount of the income tax credits included in the refund certificates and not eighty percent of such amount. (c) (I) A taxpayer that receives a refund certificate shall notify the commission promptly if the project included in the certificate is canceled, modified, or otherwise becomes ineligible for the estimated credit, in which case the refund certificate may be canceled or modified. (II) A refund certificate may be revoked or modified if a taxpayer that receives a refund certificate does not commence the project approved therein within two years of the commission's approval of the refund certificate or otherwise fails to meet the terms of the refund certificate. (III) Notwithstanding the limitations in subsection (2)(b) of this section, if a taxpayer's refund certificate is canceled or modified pursuant to subsection (2)(c)(I) of this section or revoked or modified pursuant to (2)(c)(II) of this section, the amount of the canceled, revoked, or modified income tax credits shall be available to the commission to use in approving other taxpayers' applications for a refund certificate. (3) A taxpayer must apply to the commission for a refund certificate allowed under subsection (2)(a) of this section in accordance with deadlines, policies, and procedures established by the office, in consultation with the commission, as follows: (a) A taxpayer must submit an application including all information and documentation required for a pending project under this subsection (3) to the commission prior to obtaining precertification of any income tax credit for the project pursuant to section 39-30-103 (7) or 39-36-104 (5)(a) or on or before the first day of the taxpayer's credit period under section 39-22-531 (1)(d)(II), as applicable; and xpayer must submit an application including all information and documentation required for a pending project under this subsection (3) to the commission prior to obtaining precertification of any income tax credit for the project pursuant to section 39-30-103 (7) or 39-36-104 (5)(a) or on or before the first day of the taxpayer's credit period under section 39-22-531 (1)(d)(II), as applicable; and (b) An application for a refund certificate must be submitted in a form prescribed by the office and must include: (I) Each income tax credit type for which the taxpayer intends to request a refund; (II) A description of the project that will support each income tax credit type, including: (A) The location of the project; (B) The investment to be made for the project; (C) The jobs to be created by the project; and (D) The anticipated total amount of income tax credits to be generated by the project. (III) Identification of the type and estimated or actual amount of any additional income tax credits or other financial assistance from any federal, state, or local government agency received, applied for, or intended to be applied for by the taxpayer related to the same project; and (IV) Any other information the office or the commission may reasonably require for evaluation of the taxpayer's application for a refund certificate. (c) Nothing in subsection (3)(b) of this section requires the disclosure to the public of any information that reveals the amount of compensation paid to any individual employee of a business, any Colorado income tax return, any information regarding expenditures on research and development, or other proprietary information of a business included in a taxpayer's application. (4) In reviewing applications submitted pursuant to subsection (3)(b) of this section, the commission shall prioritize applications deemed eligible for a refund certificate as follows: (a) For fiscal years 2023-24 and 2024-25, the commission shall give highest priority to taxpayers engaged in semiconductor manufacturing that have received or are expected to receive matching money under ARPA, the CHIPS Act, or other federal legislation that provides incentives for semiconductor manufacturing; and (b) For fiscal years 2025-26 through 2028-29, the commission shall give highest priority to taxpayers engaged in advanced manufacturing or semiconductor manufacturing that have received or are expected to receive matching money under ARPA, the CHIPS Act, or other federal legislation that provides incentives for advanced manufacturing or semiconductor manufacturing. (5) The commission, taking into consideration the priority assessment conducted pursuant to subsection (4) of this section, shall approve or deny applications for refund certificates in its discretion based on the following criteria: (a) Whether the taxpayer was previously awarded a refund certificate under this section; (b) The type and amount of all federal, state, and local financial assistance received, applied for, or intended to be applied for by the taxpayer, as disclosed pursuant to subsection (3)(b)(III) of this section, and the manner in which the governmental entity offering the applicable financial assistance has benefitted or may benefit therefrom; (c) The size of the taxpayer's current operation in the state relative to the state as a whole and the region of the state in which the taxpayer is based; (d) Any strategic economic benefits that the taxpayer provides with existing operations to the state or region in terms of supply chain, benefits to other industries, or other spillover benefits; and ce has benefitted or may benefit therefrom; (c) The size of the taxpayer's current operation in the state relative to the state as a whole and the region of the state in which the taxpayer is based; (d) Any strategic economic benefits that the taxpayer provides with existing operations to the state or region in terms of supply chain, benefits to other industries, or other spillover benefits; and (e) Any additional forthcoming economic development benefits that the taxpayer may provide to the state or region based on commitments that the taxpayer has recently made or proposes to make in the near term. (6) (a) The commission may approve all, part, or none of the amount of a taxpayer's application for a refund certificate made pursuant to subsection (3)(b) of this section. If the commission approves a taxpayer's application in part, the commission may approve additional refund certificates up to the full amount of the taxpayer's original application in a subsequent fiscal year through fiscal year 2028-29. (b) Upon approval by the commission, and after the satisfaction of any contingencies imposed pursuant to subsection (10) of this section, the office shall issue a refund certificate that describes the taxpayer's approved project, including the information required under subsection (3)(b)(II) of this section, and sets forth the maximum amount of income tax credits that the taxpayer may claim as a refund in accordance with this section. (c) If a taxpayer receiving a refund certificate pursuant to this section is a partnership, limited liability company, S corporation, or other similar pass-through entity, the taxpayer may allocate the approved maximum total amount of credit which the taxpayer might earn and use to claim a refund in connection with the taxpayer's project among its investors in any manner agreed to by the investors. The taxpayer shall certify to the office the amount of credit allocated to each investor and the office shall issue refund certificates in the appropriate amounts to each investor. Each investor is allowed to claim a refund of eighty percent of the amount of the credit subject to any restrictions set forth in this section. (7) To claim a refund in connection with an approved refund certificate, a taxpayer must: (a) Commence the project approved by the commission in the refund certificate before the refund certificate is canceled, revoked, or modified by the commission pursuant to subsection (2)(c) of this section; (b) Earn one or more income tax credits in connection with the approved project in accordance with section 39-30-104, 39-30-105.1, 39-30-105.5, or 39-22-531 (2) and (3)(a)(I)(D), not later than twelve years from the date the refund certificate for the income tax credit is approved by the commission; (c) Apply the income tax credits to the taxpayer's state income tax liability, if any, for the income tax year in which a refund is claimed; (d) Submit all required records and information to the department on or before the due date, including extensions, for filing the taxpayer's state income tax return for the income tax year in which an income tax credit in excess of the amount applied for pursuant to subsection (7)(c) of this section will be refunded, including: (I) All records and information necessary to claim the income tax credit earned in connection with the taxpayer's approved project, including the required certification under section 39-30-103 (7) or 39-36-104 (5); (II) The refund certificate associated with the project through which the taxpayer earned the income tax credit and the amount of the credit; (III) A refund election statement on a form prescribed by the department; and (IV) Any additional documentation required by section 39-36-106 (1)(b) or otherwise required by law; ing the required certification under section 39-30-103 (7) or 39-36-104 (5); (II) The refund certificate associated with the project through which the taxpayer earned the income tax credit and the amount of the credit; (III) A refund election statement on a form prescribed by the department; and (IV) Any additional documentation required by section 39-36-106 (1)(b) or otherwise required by law; (e) Subject to the limitation in subsection (8) of this section, agree to receive a refund of the eighty percent of the amount of the credit remaining after applying the credit under subsection (7)(c) of this section and forgo the remaining twenty percent of the amount claimed as a refund; and (8) A taxpayer may not claim cumulative refunds in excess of the maximum total amount of income tax credits that the commission has approved in the refund certificate. Any credit earned in excess of the amount in the refund certificate and forgone under subsection (7)(e) of this section is retained by the taxpayer and may be used in accordance with the statute pursuant to which it was earned. (9) On or before September 30, 2023, and on or before September 30 of each calendar year thereafter through September 30, 2029, the commission shall provide the department all records and information required by the department to establish that a taxpayer is approved to claim refundable income tax credits up to the maximum total amount approved by the commission in connection with the taxpayer's project as set forth in the taxpayer's refund certificate for the preceding calendar year or any fiscal year ending in the preceding calendar year. The report must contain the following information for each taxpayer: (a) The taxpayer's name; (b) The taxpayer's Colorado account number and federal employer identification number; (c) Each income tax credit type for which the taxpayer may request a refund, as identified pursuant to subsection (3)(b)(I) of this section and in the taxpayer's refund certificate; (d) A description of the taxpayer's project, including the information from subsection (3)(b)(II), approved in the refund certificate as the basis for the taxpayer's income tax credit claim; and (e) The maximum total amount of credit the taxpayer may use to claim a refund pursuant to this section as stated in the refund certificate. (10) The commission, in consultation with the office, may establish additional policies, procedures, requirements, and guidelines to administer the application process for and approval of refund certificates pursuant to this section including, but not limited to: (a) A limit on the total refund amount that may be approved by the commission for a single taxpayer in a given year; (b) A limit on the total refund amount that may be approved by the commission for a single taxpayer for multiple years or all years for which the taxpayer has applied for a refund certificate; (c) A limit on the total refund amount that may be approved by the commission for a specified semiconductor or advanced manufacturing activity; (d) The adoption of new or modification of existing policies, procedures, requirements, or guidelines to align with federal statutes, regulations, or guidelines as needed to facilitate taxpayer eligibility for federal financial assistance under ARPA, the CHIPS Act, and other similar federal legislation, including by ensuring that the tax incentives available pursuant to this section qualify as "covered incentives" according to 15 U.S.C. sec. 4651 (3); or (e) Contingencies that must be satisfied by the taxpayer before the taxpayer can obtain a refund certificate. (11) This section is repealed, effective January 1, 2045.

C.R.S. § 24-46-201 Definitions

24-46-201. Definitions. As used in this part 2, unless the context otherwise requires: (1) "Authority" means the venture capital authority created in section 24-46-202. (2) "Certified capital" means an amount of cash that is contributed by a qualified taxpayer to the authority that is deposited in a venture capital fund. (3) (a) "Distressed urban community" means an area within a city or city and county: (I) Where a qualified business would not be a qualified rural business; and (II) That has been designated as an enterprise zone pursuant to article 30 of title 39, C.R.S. (b) If a distressed urban community's enterprise zone status is terminated pursuant to article 30 of title 39, C.R.S., a certified investment shall nevertheless continue to be considered an investment in a qualified business that has its principal business operation located in a distressed urban community if the location was in an enterprise zone at the time of the first qualified investment by the fund manager in the business. (4) "Enterprise fund" means the enterprise fund created in section 24-46-202. (5) "Fund manager" means a partnership, corporation, trust, or limited liability company that invests cash in qualified businesses or qualified rural businesses and is selected through the authority's competitive selection process to establish and manage one or more venture capital funds as described in this part 2. A fund manager shall have at least two years of money management experience in the venture capital industry or the equivalent as determined by the authority. (6) "Premium tax liability" means the liability imposed by section 10-3-209 or 10-6-128, C.R.S., or, in the case of a repeal or reduction by the state of the liability imposed by section 10-3-209 or 10-6-128, C.R.S., any other tax liability imposed upon an insurance company by the state. (7) "Proceeds" means any revenues arising from the use of certified capital, including, but not limited to, income generated from qualified investments and income generated from all certified capital not currently invested in qualified investments. (8) (a) "Qualified business" means a business that, subject to paragraphs (b) and (c) of this subsection (8), meets all of the following criteria as of the time of a fund manager's first qualified investment in the business and as otherwise determined by the authority: (I) The business: (A) Is headquartered in this state and its principal business operations are located in this state; or (B) Has entered into a contract with a fund manager to comply, within nine months after finalization of the contract, with sub-subparagraph (A) of this subparagraph (I) and the contract contains enforceable provisions requiring a return of any investment of certified capital and any other revenues required to be paid in the event of noncompliance with this subsection (8) or a contract provision; (II) Is a small business; (III) Is not a business predominantly engaged in: (A) Professional services provided by accountants, doctors, or lawyers; (B) Banking; lending; real estate development; insurance; oil and gas exploration; direct gambling activities, which do not include ancillary gambling businesses such as manufacturers of gaming equipment and others as defined by the authority; or (C) Making loans to or investing in a fund manager or affiliates of a fund manager; (IV) Does not receive an investment from a venture capital fund that exceeds fifteen percent of the venture capital fund's aggregate total of certified capital; and (V) Maintains its business in this state for at least five years after first receiving an investment of certified capital and has entered into a contract with a fund manager to comply with this requirement. The contract shall contain enforceable provisions requiring a return of any investment of certified capital and any other revenues required to be paid in the event of noncompliance with this subparagraph (V) or a contract provision. e for at least five years after first receiving an investment of certified capital and has entered into a contract with a fund manager to comply with this requirement. The contract shall contain enforceable provisions requiring a return of any investment of certified capital and any other revenues required to be paid in the event of noncompliance with this subparagraph (V) or a contract provision. (b) If a business meets some, but not all, of the criteria set forth in paragraph (a) of this subsection (8), the business may nevertheless be deemed to be a qualified business if the authority determines that the investment of certified capital in the business proposed by a fund manager pursuant to this part 2 will further the economic development of the state. (c) Any business that is classified as a qualified business at the time of the first qualified investment in the business by a fund manager shall remain classified as a qualified business, and may receive continuing qualified investments from a venture capital fund. The continuing investments shall be qualified investments even though the business may not meet the definition of a qualified business at the time of the continuing investments; except that a qualified business shall comply with subparagraph (V) of paragraph (a) of this subsection (8) for at least five years after an initial qualified investment to remain a qualified business and to receive continuing qualified investments. (9) "Qualified distribution" means any distribution out of certified capital from a venture capital fund for expenses related to managing and operating the fund. Qualified distributions shall not exceed two and one-half percent annually of the total amount of certified capital allocated to each venture capital fund unless authorized by the authority after a review of extraordinary items. "Qualified distribution" does not include the use of certified capital for litigation challenging the validity, implementation, or effect of this part 2 or article 3.5 of title 10, C.R.S., lobbying, or governmental relations. (10) (a) "Qualified investment" means, subject to paragraph (b) of this subsection (10), the investment of certified capital by a fund manager in a qualified business or qualified rural business, as applicable, for the purchase of any debt, debt participation, equity, or hybrid security, including a debt instrument or security that has the characteristics of debt but provides for conversion into equity or equity participation instruments, including, but not limited to, options or warrants; except that a fund manager shall use certified capital only to make seed and early-stage investments in qualified businesses or qualified rural businesses, as applicable; except that the authority may allow a qualified investment in a qualified rural business that is not a seed or early-stage investment if the investment is appropriate and later-stage capital investments are not otherwise available to the qualified rural business. An investment shall be deemed to be a qualified investment only if the qualified business or qualified rural business in which the investment is made expends the qualified investment within Colorado; except that this limitation shall not be deemed to preclude the purchase of services or goods from outside of Colorado if such services are performed and such goods are used in Colorado. ral business. An investment shall be deemed to be a qualified investment only if the qualified business or qualified rural business in which the investment is made expends the qualified investment within Colorado; except that this limitation shall not be deemed to preclude the purchase of services or goods from outside of Colorado if such services are performed and such goods are used in Colorado. (b) A fund manager shall not make a loan to a qualified business or qualified rural business unless the business has received two written loan rejection letters from two different commercial banks headquartered or chartered in Colorado that make small business loans, one of which shall be a preferred lender designated by the federal small business administration. Any such loan by a fund manager shall not be made through or in connection with any guaranteed loan program. (11) (a) "Qualified rural business" means a qualified business that has its principal business operations in any county, but not any city and county, in this state that, as of June 9, 2001, has a population of not more than one hundred fifty thousand people and, if the county's population exceeds twenty thousand people, that has a growth rate that does not exceed the statewide average for the period of 1990-2000 by more than twenty-five percent as defined in the two most recent decennial censuses. Additionally, a qualified rural business shall be located in an area designated as an enterprise zone pursuant to article 30 of title 39, C.R.S., unless the authority waives this requirement. (b) Any business that is classified as a qualified rural business at the time of the first qualified investment in the business by a fund manager shall remain classified as a qualified rural business and may receive continuing qualified investments from a venture capital fund. The continuing investments shall be qualified investments even though the business may not meet the definition of a qualified rural business at the time of the continuing investments; except that, to remain a qualified rural business and to receive qualified investments, a qualified rural business shall comply with subparagraph (V) of paragraph (a) of subsection (8) of this section for at least five years after an initial qualified investment. (12) "Qualified taxpayer" means an insurance company that has contributed certified capital to the authority and received a tax credit certificate from the authority pursuant to section 24-46-204; except that, upon payment of certified capital by a qualified taxpayer, the qualified taxpayer may transfer or sell all or a portion of its venture capital tax credits to another insurance company, in which case "qualified taxpayer" shall be deemed to refer to such insurance company. A transfer or sale of venture capital tax credits by a qualified taxpayer shall not affect the schedule for taking the venture capital tax credits as provided in this part 2. (13) "Seed and early-stage investment" means the first investment from a professional venture capital firm to a qualified business. A seed investment is made to a qualified business that has not yet fully established commercial operations or that involves continued research and product development. An early-stage investment is made to a qualified business for product development or initial marketing, manufacturing, or sales activities. (14) "Venture capital fund" means one or more rural venture capital funds, one or more distressed urban community venture capital funds, or one or more statewide venture capital funds as described in section 24-46-203 (1), located outside of the state treasury, containing certified capital that is managed by a fund manager to make qualified investments. (15) "Venture capital tax credit" or "tax credit" means the tax credit created by section 24-46-204 that a qualified taxpayer may claim pursuant to this part 2.

C.R.S. § 24-46-202 Venture capital authority - board - staffing fund - bonds - enterprise fund - distribution of proceeds

24-46-202. Venture capital authority - board - staffing fund - bonds - enterprise fund - distribution of proceeds. (1) (a) There is hereby created as a special purpose authority, as defined in section 24-77-102 (15), the venture capital authority. The authority shall be a body corporate, a political subdivision of the state, and a public instrumentality, and its exercise of the powers conferred by this part 2 shall be deemed and held to be the performance of an essential public function; except that the authority shall not be an agency of state government and shall not be subject to administrative direction by any department, commission, board, or agency of the state. The authority shall constitute an enterprise for the 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 total annual revenues in grants, as defined in section 24-77-102 (7), from all Colorado state and local governments combined. The authority shall not be a district for purposes of section 20 of article X of the state constitution. (b) (I) The governing body of the authority is a board of directors consisting of nine members, of whom five shall be appointed by the governor, two shall be appointed by the president of the senate, and two shall be appointed by the speaker of the house of representatives. Board members must be residents of this state. Board members must have experience in venture capital, investment banking, institutional investment, fund management, or banking. A board member shall not have a business relationship with a current or proposed fund manager in the previous three years or for at least three years after an allocation of certified capital. Each member shall serve until a successor has been appointed. Any member is eligible for reappointment. The person making the original appointment shall fill any vacancy by appointment for the remainder of an unexpired term. (II) The members of the board shall serve four-year terms; except that the terms shall be staggered so that no more than four members' terms expire in the same year. The terms expire on May 5 of each year. (c) Any member of the board may be removed by the governor for misfeasance, malfeasance, willful neglect of duty, or other cause, after notice and a public hearing, unless the notice and hearing have been expressly waived in writing. (d) (I) The board of directors of the authority shall adopt its own rules of procedure, shall elect a chair and a vice-chair from its membership, and shall keep a record of its proceedings. The authority may hire staff as it deems necessary or convenient to administer this part 2. The Colorado office of economic development and the Colorado economic development commission shall cooperate with the authority in such administration. The authority shall pay the office in advance as agreed upon by the authority and the office for all costs incurred by the office in providing staffing for the authority, including but not limited to the costs of compensation for employees staffing the authority and administration related to such staffing. The office shall credit any payment received from the authority to the venture capital authority staffing fund, which fund is hereby created in the state treasury. The fund is continuously appropriated to the office to pay costs incurred by the office in providing staffing for the authority. Interest and income derived from the deposit and investment of moneys in the fund shall remain in the fund and shall not be transferred to the general fund or any other fund at the end of any fiscal year. (II) The authority shall meet at least once each quarter. Members shall serve without compensation but shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of their duties. rived from the deposit and investment of moneys in the fund shall remain in the fund and shall not be transferred to the general fund or any other fund at the end of any fiscal year. (II) The authority shall meet at least once each quarter. Members shall serve without compensation but shall be entitled to reimbursement for actual and necessary expenses incurred in the performance of their duties. (2) (a) The authority may, by resolution that meets the requirements of subsection (3) of this section, authorize and issue revenue bonds in an amount not to exceed five million dollars in the aggregate for expenses of the authority. Bonds may be issued only after approval by both houses of the general assembly acting either by bill or joint resolution and after approval by the governor in accordance with section 39 of article V of the state constitution. Bonds shall be payable only from the enterprise fund. (b) All bonds issued by the authority shall provide that: (I) No holder of bonds may compel the state or any subdivision thereof to exercise its appropriation or taxing power; and (II) The bonds do not constitute a debt or financial obligation of the state and are payable only from the net revenues allocated to the authority for expenses as designated in the bonds. (3) (a) Any resolution authorizing the issuance of bonds under this section shall state: (I) The date of issuance of the bonds; (II) A maturity date or dates during a period not to exceed twenty years after the date of issuance of the bonds; (III) The interest rate or rates on, and the denomination or denominations of, the bonds; and (IV) The medium of payment of the bonds and the place where the bonds will be paid. (b) Any resolution authorizing the issuance of bonds under this section may: (I) State that the bonds are to be issued in one or more series; (II) State a rank or priority of the bonds; and (III) Provide for redemption of the bonds prior to maturity, with or without premium. (4) Any bonds issued pursuant to the terms of this section may be sold at public or private sale. If bonds are to be sold at a public sale, the authority shall advertise the sale in any manner the authority deems appropriate. All bonds issued pursuant to the terms of this section shall be sold at a price not less than the par value thereof, together with all accrued interest up to the date of delivery. (5) Notwithstanding any provision of law to the contrary, all bonds issued pursuant to this section are negotiable. (6) (a) A resolution pertaining to issuance of bonds under this section may contain covenants as to: (I) The purpose to which the proceeds of sale of the bonds may be applied, and the permissible use and disposition thereof; (II) Such matters as are customary in the issuance of revenue bonds, including, without limitation, the issuance and lien position of other or additional bonds; and (III) Books of account and the inspection and audit thereof. under this section may contain covenants as to: (I) The purpose to which the proceeds of sale of the bonds may be applied, and the permissible use and disposition thereof; (II) Such matters as are customary in the issuance of revenue bonds, including, without limitation, the issuance and lien position of other or additional bonds; and (III) Books of account and the inspection and audit thereof. (b) Any resolution made pursuant to the terms of this section shall be deemed a contract with the holders of the bonds, and the duties of the authority under the resolution shall be enforceable by any appropriate action in a court having jurisdiction. (7) Bonds issued under this section and bearing the signatures of the board members of the authority in office on the date of the signing shall be deemed valid and binding obligations regardless of whether, prior to delivery and payment, any or all of the persons whose signatures appear thereon have ceased to be members of the board. (8) (a) Except as otherwise provided in the resolution authorizing the bonds, all bonds of the same issue under this section shall have a prior and paramount lien on the net revenues pledged therefor. The authority may provide for preferential security for any bonds, both principal and interest, to be issued under this section to the extent deemed feasible and desirable by the authority over any bonds that may be issued thereafter. (b) Bonds of the same issue or series issued under this section shall be equally and ratably secured, without priority by reason of number, date, sale, execution, or delivery, by a lien on the net revenue pledged in accordance with the terms of the resolution authorizing the bonds. (9) The authority may accept grants from any source and shall deposit the grants in the enterprise fund, which fund is hereby created in the authority. The enterprise fund shall be a revolving fund administered by the authority as a government-owned business that provides oversight concerning the investment of revenues in the enterprise fund pursuant to this part 2. Revenues earned on the investment or deposit of moneys in the enterprise fund shall be credited to the enterprise fund. (10) (a) The authority shall utilize the enterprise fund: (I) As a revolving, evergreen fund to provide continued seed and early-stage investment capital to qualified businesses and qualified rural businesses, and for this purpose the authority shall transfer revenues in the fund to one or more venture capital funds for the purpose of enabling a fund manager to make qualified investments; and (II) For its direct and indirect expenses in administering this part 2, including repayment of revenue bonds and payment for costs of staffing the authority paid to the Colorado office of economic development pursuant to subparagraph (I) of paragraph (d) of subsection (1) of this section. (b) The authority shall deposit revenues from the following sources in the enterprise fund: (I) Distributions of an amount equal to one hundred percent of certified capital prior to the distribution of any remaining proceeds; (II) Distributions of all remaining proceeds according to the authority's contract with each fund manager; (III) Fees; and (IV) Assessed penalties.

C.R.S. § 24-46-203 Venture capital funds - managers - qualified investments - contract - distributions

24-46-203. Venture capital funds - managers - qualified investments - contract - distributions. (1) The authority shall establish procedures and additional selection criteria for, and shall conduct, a competitive process for the selection of one or more fund managers to establish and manage one or more rural venture capital funds and to establish and manage one or more statewide venture capital funds. The authority shall establish and publicize the deadlines for the competitive selection process. The authority may establish reasonable application fees. In conducting the competitive process, the authority shall not be subject to the requirements of the "Procurement Code", articles 101 to 112 of this title. The authority shall select fund managers by December 31, 2004, and thereafter as necessary. When selecting a fund manager, the authority shall place a significant emphasis on: (a) The total amount of venture capital managed by the applicant in Colorado and elsewhere; (b) The applicant's historical return on investment, with an emphasis on returns from seed and early stage investments; (c) The percentage of proceeds to be retained by the applicant in comparison with the percentage of proceeds to be distributed to the enterprise fund. (2) The authority shall allocate: (a) Twenty-five percent of certified capital to one or more fund managers for the establishment and management of one or more rural venture capital funds for the purpose of making qualified investments in qualified rural businesses; (b) Fifty percent of certified capital to one or more fund managers for the establishment and management of one or more statewide venture capital funds for the purpose of making qualified investments in other qualified businesses; and (c) Twenty-five percent of certified capital to one or more fund managers for the establishment and management of one or more distressed urban community venture capital funds for the purpose of making qualified investments in qualified businesses whose principal business operations are located in a distressed urban community. (3) As soon as practicable after the selection date, the authority and each fund manager shall enter into a contract whereby the fund manager shall establish and manage the venture capital funds pursuant to this part 2 and shall comply with other requirements established by the authority. The contract shall specify that the fund manager shall make qualified investments according to the following schedule: (a) By January 1, 2006, the fund manager shall have made at least one qualified investment. (b) Within the period ending three years after an allocation date, a fund manager shall have made qualified investments cumulatively equal to at least thirty percent of the certified capital allocated to it on such allocation date. (c) Within the period ending five years after an allocation date, a fund manager shall have made qualified investments cumulatively equal to at least fifty percent of the certified capital allocated to it on such allocation date. ate, a fund manager shall have made qualified investments cumulatively equal to at least thirty percent of the certified capital allocated to it on such allocation date. (c) Within the period ending five years after an allocation date, a fund manager shall have made qualified investments cumulatively equal to at least fifty percent of the certified capital allocated to it on such allocation date. (d) Within the period ending ten years after an allocation date, a fund manager shall have made qualified investments cumulatively equal to at least one hundred percent of the certified capital allocated to it on such allocation date. (4) A fund manager may, before making a proposed qualified investment in a specific business, request from the authority a written opinion that the business in which it proposes to invest is located in a distressed urban community or should be considered a qualified business or qualified rural business, as applicable. Upon receiving a request, the authority shall have thirty working days to determine whether the business is located in a distressed urban community or the business meets the definition of a qualified business or qualified rural business, as applicable, and notify the fund manager of its determination with an explanation of the determination. If the authority fails to notify the fund manager of its determination within thirty working days, the business in which the fund manager proposes to invest shall be deemed to be located in a distressed urban community or to be a qualified business or qualified rural business, as applicable. (5) A fund manager shall invest all certified capital not currently invested in qualified investments in: (a) Cash that is deposited in a federally insured financial institution; (b) Certificates of deposit in a federally insured financial institution; (c) Investment securities that are obligations of the United States, its agencies, or instrumentalities or obligations that are guaranteed fully as to principal and interest by the United States; (d) Debt instruments rated at least "AA" or its equivalent by a nationally recognized credit rating organization, or issued by, or guaranteed with respect to payment by, an entity whose unsecured indebtedness is rated at least "AA" or its equivalent by a nationally recognized credit rating organization, and that are not subordinated to other unsecured indebtedness of the issuer or the guarantor, as the case may be; (e) Obligations of this state, any municipality in this state, or any political subdivision thereof; (f) Interests in money market funds, the portfolios of which are limited to cash and obligations described in this subsection (5); or (g) Any other investments approved in advance and in writing by the authority. (6) (a) The authority's contract with a fund manager shall state the terms governing the distribution, other than a qualified distribution, of certified capital and proceeds. Unless authorized by its contract with the authority and until it has made the distribution specified in paragraph (b) of this subsection (6), a fund manager shall not make any distributions from: (I) Certified capital other than qualified distributions; or (II) Proceeds. ger shall state the terms governing the distribution, other than a qualified distribution, of certified capital and proceeds. Unless authorized by its contract with the authority and until it has made the distribution specified in paragraph (b) of this subsection (6), a fund manager shall not make any distributions from: (I) Certified capital other than qualified distributions; or (II) Proceeds. (b) (I) The fund manager shall distribute to the authority an amount equal to one hundred percent of certified capital allocated to venture capital funds managed by the fund manager prior to making distributions pursuant to subparagraph (II) of this paragraph (b). The authority shall deposit the distribution in the enterprise fund. (II) After the distribution made pursuant to subparagraph (I) of this paragraph (b) has occurred, the fund manager shall distribute all remaining certified capital and proceeds on a pro-rated basis between the authority and the fund manager as negotiated in the contract by the authority and as certified capital and proceeds become available. The authority shall deposit the distributions to the enterprise fund. (7) (a) In addition to other items as specified by the authority, on or before January 31 of each year, each fund manager shall report the following to the authority: (I) The balance of certified capital at the end of the immediately preceding calendar year for each venture capital fund managed by the fund manager; (II) The number of jobs created in Colorado from qualified investments made by the fund manager and the amount of proceeds, if any, received by the fund manager from the investments; (III) The amount of qualified distributions made by the fund manager from certified capital during the immediately preceding calendar year; and (IV) All qualified investments made by the fund manager from certified capital during the immediately preceding calendar year. (b) Annually, and within ninety days after the close of its fiscal year, each fund manager shall provide to the authority an audited financial statement that includes the opinion of an independent certified public accountant. The audit shall address the methods of operation and conduct of the business of the fund manager to determine whether the fund manager is complying with this part 2 and the authority's contract and whether the certified capital received by the fund manager has been invested as required under this part 2 and the authority's contract. (8) Venture capital fund offering materials shall include the following statement: The state of Colorado does not endorse the quality of management or the potential for earnings of such fund and is not liable for damages or losses to any investor in the fund or any other entity. Selection by the Colorado Venture Capital Authority to participate in this program does not constitute a recommendation or endorsement of the venture capital fund or its investments by the Colorado Venture Capital Authority. (9) If a fund manager violates any applicable provision of this part 2 or any material provision of the authority's contract with the fund manager, the authority may require the fund manager to make a payment in an amount up to the amount of certified capital received by the fund manager in addition to penalties as determined by the authority. The payments shall be deposited in the enterprise fund. The authority may use additional remedies, as specified in its contract with a fund manager, to ensure appropriate oversight of the venture capital program. The authority shall conduct an annual review of each fund manager to determine its compliance with the requirements of this part 2 and its contract with the authority.

C.R.S. § 24-46-204 Venture capital tax credits - contributions to authority - report

24-46-204. Venture capital tax credits - contributions to authority - report. (1) For tax years commencing on or after January 1, 2005, but no later than January 1, 2014, and subject to the requirements and limitations of this section, there shall be allowed to any qualified taxpayer a venture capital tax credit to be used against the taxpayer's premium tax liability. The authority shall issue tax credit certificates to qualified taxpayers with a total value of fifty million dollars to be taken by one or more qualified taxpayers at the rate of up to five million dollars per year for each of the calendar years from 2005 through 2014; except that if H.B. 04-1206 is enacted at the second regular session of the sixty-fourth general assembly, becomes law, and is subsequently declared to be unconstitutional by a final judgment that invalidates the tax credits enacted by such bill, the authority shall issue tax credit certificates to qualified taxpayers with a total value of one hundred million dollars to be taken by one or more qualified taxpayers at the rate of up to ten million dollars per year for each of the remaining calendar years through 2014. A qualified taxpayer shall submit the tax credit certificate with the taxpayer's tax return. (2) Upon completion of the authority's competitive selection process for fund managers pursuant to section 24-46-203, but no earlier than January 31, 2004, and no later than December 1 of each year from 2005 until 2014, the authority shall issue a tax credit certificate to a qualified taxpayer pursuant to subsection (5) of this section and shall allocate certified capital contributed to the authority by the qualified taxpayer to one or more fund managers selected by the authority in accordance with section 24-46-203 (2). (3) If the amount of the tax credit claimed by a qualified taxpayer exceeds the amount due on its premium tax liability in the tax year for which the tax credit is being claimed, the amount of the tax credit not used to offset taxes may be carried forward for up to ten years as tax credits against the qualified taxpayer's subsequent years' premium tax liability. (4) A qualified taxpayer claiming a tax credit against premium tax liability earned through a contribution of certified capital to the authority shall not be required to pay any additional or retaliatory tax as a result of claiming the credit. (5) (a) An insurance company shall become a qualified taxpayer if all of the conditions of the tax credit certificate and the following conditions are met: (I) Pursuant to a form established by the authority, the insurance company shall make a timely and irrevocable offer, contingent only upon the authority's issuance to the insurance company of a tax credit certificate, to make a specified contribution of certified capital to the authority on dates specified by the authority. The offer shall include the requested amount of tax credits, the year for which the tax credits are requested, the insurance company's specified contribution for each tax credit dollar requested, which contribution shall be no less than eighty percent of the requested amount of tax credits, and any other information required by the authority. (II) The authority shall issue a tax credit certificate to the insurance company. The tax credit certificate shall state the date by which cash contributions shall be made by the qualified taxpayer, the date by which tax credits shall be available for use by the qualified taxpayer, penalties and any other remedies for noncompliance, and any other requirements deemed necessary by the authority as a condition of issuing the tax credit certificate. (III) Pursuant to subsection (7) of this section, the insurance company timely makes the contribution of certified capital to the authority specified in subparagraph (I) of this paragraph (a). able for use by the qualified taxpayer, penalties and any other remedies for noncompliance, and any other requirements deemed necessary by the authority as a condition of issuing the tax credit certificate. (III) Pursuant to subsection (7) of this section, the insurance company timely makes the contribution of certified capital to the authority specified in subparagraph (I) of this paragraph (a). (b) The authority shall establish and publicize to insurance companies: (I) Deadlines for submitting irrevocable offers for contributions and for issuing tax credit certificates; (II) Forms and requirements for offers and the content requirements of such offers; and (III) Any other requirement determined to be necessary by the authority. (c) (I) A tax credit certificate shall specify: (A) An amount of money that a qualified taxpayer may claim as a tax credit pursuant to this section; (B) The amount of certified capital that the qualified taxpayer has contributed or will contribute by the dates specified in the tax credit certificate; (C) The calendar year in which the tax credits may be used against the qualified taxpayer's premium tax liability; (D) Penalties and remedies in the event of noncompliance by the qualified taxpayer; and (E) Other conditions deemed necessary by the authority. (II) The authority shall continue to issue tax credit certificates in the order of the insurance companies that have offered to contribute the next highest value per tax credit dollar requested until the authority has issued five million dollars of tax credit certificates per year, or if H.B. 04-1206 is enacted at the second regular session of the sixty-fourth general assembly, becomes law, and is subsequently declared to be unconstitutional, until the authority has issued ten million dollars of tax credit certificates per year; except that the authority may issue tax credit certificates on an annual basis, a multi-year basis, or periodically as it deems necessary. (6) On or before January 31, 2006, and on or before each succeeding January 31 until January 31, 2015, the authority shall provide a report to the division of insurance in the department of regulatory agencies. The report shall identify each qualified taxpayer for the tax year that ended during the prior calendar year by name and identifying number issued by the national association of insurance commissioners, or any analogous successor organization, and shall list the amount of the tax credits allowed to the qualified taxpayer. (7) (a) To become a qualified taxpayer, an insurance company shall pay the specified amount of certified capital to the authority when due. (b) (I) If an insurance company fails to make a payment of certified capital to the authority when due, the authority shall provide the insurance company with a notice by certified mail that the insurance company has fifteen working days to cure the defect. The fifteen-day period shall begin on the date the notice is postmarked. (II) Failure by an insurance company to make the payment of certified capital by the end of the fifteenth working day shall result in an immediate forfeiture of any right to claim the tax credits. The authority shall be authorized to reallocate such tax credits to other qualified taxpayers as deemed necessary by the authority. Reallocation shall not diminish the authority's ability to use penalties and remedies as stated in the tax certificate. (III) The authority shall assess penalties against a qualified taxpayer that fails to make the payment of certified capital by the end of the fifteenth working day as stated in the tax credit certificate and may pursue other remedies and actions as stated in the tax certificate.

C.R.S. § 24-46-205 Administrative expenses

24-46-205. Administrative expenses. All direct and indirect expenditures incurred by the authority in carrying out the responsibilities assigned in this part 2 shall be paid from the enterprise fund without the necessity of an appropriation by the general assembly.

C.R.S. § 24-46-206 Office - report

24-46-206. Office - report. The office of economic development shall assist the authority in administering this part 2. The authority shall submit a report to the state auditor on May 1 of each year regarding the results of the implementation of this part 2.

C.R.S. § 24-46-207 Conflict of interest

24-46-207. Conflict of interest. No member or employee of the executive branch shall become an officer, director, employee, or consultant of or receive any compensation from the authority or a fund manager either during the term of the member or employee's employment with the executive branch or for six years after such term ends. However, this section shall not prohibit any employee of the Colorado office of economic development from staffing the authority or prohibit the authority from paying the office for costs of staffing the authority incurred by the office in providing staffing for the authority as required by section 24-46-202 (1)(d)(I).

C.R.S. § 24-46-301 Short title

24-46-301. Short title. This part 3 shall be known and may be cited as the "Colorado Regional Tourism Act".

C.R.S. § 24-46-302 Legislative declaration

24-46-302. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) The health, safety, and welfare of the people of the state of Colorado are enhanced by a diverse revenue stream, and the people of the state would benefit from an expansion of opportunities for investment in large-scale regional tourism projects that will attract significant investment and revenue from outside the state; (b) Diversification of the state's economic base can contribute to much-needed economic stability; (c) Colorado is in competition with other states to attract large-scale regional tourism projects; (d) It is in the best interests of the people of the state to provide a financing mechanism for attracting, constructing, and operating large-scale regional tourism projects that will attract significant investment and revenue from outside the state; and (e) In keeping with Colorado's tradition of local governments playing a significant role in land use and development projects, regional tourism projects should be proposed by a local government or by one or more local governments working together.

C.R.S. § 24-46-303 Definitions

24-46-303. Definitions. As used in this part 3, unless the context otherwise requires: (1) "Base year revenue" means the state sales tax revenue collected during the twelve-month period immediately prior to the month in which a regional tourism project is authorized, as determined by the department of revenue. (1.5) "Baseline growth rate" means the forecasted growth in state sales tax revenue above the base year revenue that would be collected in a proposed regional tourism zone if the proposed regional tourism project did not occur, as determined pursuant to section 24-46-304 (1.5). (2) "Commission" means the Colorado economic development commission created in section 24-46-102. (3) "Director" means the director of the Colorado office of economic development created in section 24-48.5-101. (4) "Eligible costs" means the costs of designing, constructing, financing, and maintaining eligible improvements designated by the commission as part of an approved regional tourism project, including but not limited to costs of engineering, construction engineering, surveying, construction surveying, construction labor and materials, design, planning, legal services, accounting, overhead or administrative staffing, financing, bond issuance or reissuance, underwriting, interest payments, loan origination fees, and similar necessary and convenient costs incurred by the financing entity in exercising its powers pursuant to this part 3. Moneys advanced by private developers within the regional tourism project to the financing entity for eligible improvements, whether pursuant to loans or contractual funding and reimbursement agreements, together with reasonable interest thereon, shall be eligible costs. In addition, the financing entity's costs for purchasing eligible improvements constructed and owned by third parties either prior to or subsequent to designation of the regional tourism project shall be eligible costs. Costs and expenses incurred by the financing entity pursuant to section 24-35-118 and in complying with its annual report and audit obligations under this part 3 shall be eligible costs. (5) "Eligible improvements" means the specific improvements authorized by the commission as part of an approved regional tourism project, whether publicly or privately owned, including but not limited to storm sewer and sanitary sewer collection, conveyance, distribution, treatment, and related facilities and real property interests necessary or convenient thereto; potable and nonpotable water supplies and collection, conveyance, distribution, treatment, and related facilities and real property interests related thereto; roads; streets; state highways; rights-of-way; lighting; traffic signals and signs; direction and location signage and similar signage; land acquisition; surveying, engineering, soils testing, site planning, grading, and similar activities necessary or convenient for site preparation and development; park and recreational facilities; trails and paths; public safety facilities; landscaping; tourism and entertainment facilities; transportation facilities; surface and structured parking facilities; and any other facilities or improvements necessary to or convenient for the completion of an approved project. (6) "Financing entity" means the entity designated by the commission in connection with its approval of a regional tourism project to receive and utilize state sales tax increment revenue. A financing entity may be a county revitalization authority created pursuant to article 31 of title 30, a metropolitan district created pursuant to title 32, an urban renewal authority created pursuant to part 1 of article 25 of title 31, or any regional tourism authority to be formed pursuant to this part 3. l of a regional tourism project to receive and utilize state sales tax increment revenue. A financing entity may be a county revitalization authority created pursuant to article 31 of title 30, a metropolitan district created pursuant to title 32, an urban renewal authority created pursuant to part 1 of article 25 of title 31, or any regional tourism authority to be formed pursuant to this part 3. (7) "Financing term" means the aggregate period authorized by the commission pursuant to this part 3 within which the financing entity is authorized to receive and utilize state sales tax increment revenue to finance eligible costs. (7.5) "Gambling-related activities" means any betting, wagering, or payments made on or in connection with one or more games that qualify as gambling as defined in section 18-10-102 (2), or limited gaming as defined in section 9 of article XVIII of the state constitution and section 44-30-103 (22). (8) "Local government" means a city, county, city and county, or town or a group of contiguous cities, counties, city and counties, or towns. (9) "Regional tourism authority" or "authority" means a corporate body organized pursuant to this part 3 for the purposes, with the powers, and subject to the restrictions set forth in this part 3 and the formation of which has been approved by the commission pursuant to this part 3. (10) "Regional tourism project" or "project" means a development project that is planned to include a tourism or entertainment facility together with ancillary uses, structures, and improvements, and that has been approved by the commission pursuant to this part 3. (11) "Regional tourism zone" means the geographic area defined by the commission as part of an approved regional tourism project. A regional tourism zone shall not extend into the territorial boundaries of any local government except for the local government that is requesting the designation of the regional tourism zone. A regional tourism zone may be limited to portions of a local government and may include noncontiguous tracts or parcels of property. (12) "State sales tax increment revenue" means the portion of the revenue derived from state sales taxes, including any revenue attributable to the baseline growth rate, collected within a designated regional tourism zone in excess of the amount of base year revenue. "State sales tax increment revenue" does not include any additional revenue derived from state sales taxes that are due to the changes set forth in section 39-26-105 (1)(d), enacted in 2019, to the amount retained by a vendor to cover the vendor's expenses in collecting and remitting sales tax. (13) "Tourism or entertainment facility" means a facility or group of interrelated facilities constructed primarily for use as a tourism or entertainment venue that is reasonably anticipated to draw a significant number of regional, national, or international patrons. A tourism or entertainment facility may include but need not be limited to museums, stadiums, arenas, major sports facilities, performing arts theaters, theme or amusement parks, conference center or resort hotels, or other similar venues. "Tourism or entertainment facility" shall not include any facility or group of interrelated facilities that directly or indirectly offer, make available, or facilitate in any manner one or more gambling-related activities.

C.R.S. § 24-46-304 Regional tourism project - application - requirements

24-46-304. Regional tourism project - application - requirements. (1) Any local government may apply for approval of a regional tourism project, including designation of a regional tourism zone, the creation of a regional tourism authority, and designation of a financing entity to receive, utilize, and disburse state sales tax increment revenue for eligible costs. (1.5) (a) Before a local government submits an application for a regional tourism project to the Colorado office of economic development pursuant to subsection (2) of this section, the local government shall submit a map showing the proposed boundaries of the proposed regional tourism zone to the office of state planning and budgeting. The office of state planning and budgeting, in conjunction with the Colorado office of economic development, shall determine the baseline growth rate for the area included in the proposed regional tourism zone. In determining the baseline growth rate, the office of state planning and budgeting and the Colorado office of economic development shall consider the growth rate in the area included in the proposed regional tourism zone during the previous five calendar years at a minimum. (b) The office of state planning and budgeting may charge a local government a submission fee of up to three thousand dollars per submission for the costs incurred in determining the baseline growth rate. (c) The local government and the third-party analyst retained pursuant to paragraph (i) of subsection (2) of this section shall use the baseline growth rate in their assumptions and economic analyses for the purpose of calculating the total cumulative dollar amount and percentage of the state sales tax increment revenue that can be dedicated to the proposed regional tourism project as required by paragraphs (h) and (i) of subsection (2) of this section. (2) A local government shall submit an application for a regional tourism project to the Colorado office of economic development in a form and manner to be determined by the commission. The office shall provide the commission with each application received after the director's review pursuant to section 24-46-305. The application shall include, but need not be limited to, the following: (a) Maps of the proposed project area showing both current conditions and a conceptual rendering of the proposed project in its anticipated built condition; (b) A map showing the proposed boundaries of the proposed regional tourism zone; (c) A narrative description of the proposed project, including the location and estimated overall cost, estimated eligible costs, anticipated scope and phasing of eligible improvements, and the infrastructure existing or needed in connection with the project; (d) A discussion of each of the application criteria and how the project will meet each of the criteria, including an economic analysis detailing projected economic development, impact on future state sales tax revenue during and after the financing term, the number of new jobs to be created by the project by job category as defined by the Colorado department of labor and employment occupational employment statistics survey and the wages and, to the extent that it is reasonably possible, information on health benefits for jobs in each category, market impact, anticipated regional and in-state competition, the ability to attract out-of-state tourists, the fiscal impact to local governments within and adjacent to the regional tourism zone, an analysis of the impact to local school districts and an estimate of the percentage of total program that the state will become responsible to fund through the state's share of total program pursuant to section 22-54-106, if the county revitalization authority or an urban renewal authority is the financing entity for the regional tourism project and uses property tax revenue to finance the project, and any other information reasonably requested by the commission; f the percentage of total program that the state will become responsible to fund through the state's share of total program pursuant to section 22-54-106, if the county revitalization authority or an urban renewal authority is the financing entity for the regional tourism project and uses property tax revenue to finance the project, and any other information reasonably requested by the commission; (e) A description of the proposed financing entity, a general description of the financing entity's plan for financing the eligible costs and providing the eligible improvements, and whether authorization of a regional tourism authority is requested. A request for authorization of a regional tourism authority shall include a description of the proposed authority's geographic boundaries, requested powers, and anticipated sources of revenue, if any, in addition to state sales tax increment revenue. (f) If it is anticipated that the financing entity will enter into contractual arrangements with one or more urban renewal authorities, metropolitan districts, local governments, or private parties with respect to the method of financing the eligible costs and providing eligible improvements, a general description of such contemplated contractual arrangements; (g) If it is anticipated that the eligible improvements will be constructed in phases or that financing of the eligible costs will be accomplished in phases, a description of the contemplated phases and anticipated timing of the phases; (h) The proposed financing term, the total cumulative dollar amount of revenue that can be allocated to the financing entity, the percentage of state sales tax increment revenue to be allocated to the financing entity, and the portion of the financing term during which such percentage is to be allocated to the financing entity. No single debt issuance of the financing entity shall have a maturity date in excess of thirty years; except that the financing term may exceed thirty years to the extent that the financing entity anticipates issuing a series of bonds or other forms of debt and provided that the financing entity shall have the ability to consolidate or refinance previously issued debt or bonds with a maturity date for such consolidated or refinanced debt or bonds not to exceed thirty years. (i) Along with the economic analysis submitted with the application, a report by a third-party analyst who is an expert in the field of economic or public financial analysis calculating the total cumulative dollar amount and percentage of the state sales tax increment revenue that can be dedicated to the regional tourism project to be set by the commission pursuant to section 24-46-305 (3)(d). The applicant shall share its data and reasoning with the third-party analyst, and the analyst shall rely on such data and reasoning as it deems appropriate in the exercise of its independent judgment. An applicant dissatisfied with such report may revise its application and request report revisions. The reviewing third-party analyst shall be chosen through a request for proposals issued by the office of state planning and budgeting to ensure an independent and thorough analysis, and the third-party analyst shall report to that office. The office of state planning and budgeting shall charge an application fee to the applicant to pay the costs for the third-party analyst to: (I) Assess the assumptions used in the application to estimate net new tourism revenues to Colorado; (II) Calculate the total anticipated sales tax increment revenue in the proposed regional tourism zone; (III) Calculate the amount and percentage of the total regional tourism zone sales tax increment revenue that each county and municipality that is a party to a multi-party application is eligible to receive; and (IV) Assess the probability of the proposed project moving forward without funding from tax increment financing. ipated sales tax increment revenue in the proposed regional tourism zone; (III) Calculate the amount and percentage of the total regional tourism zone sales tax increment revenue that each county and municipality that is a party to a multi-party application is eligible to receive; and (IV) Assess the probability of the proposed project moving forward without funding from tax increment financing. (3) An application by a local government for designation as a regional tourism project shall be approved by the commission upon a finding by the majority of the commissioners participating in the review of the application that the application demonstrates that each of the following criteria are materially met: (a) The project is of an extraordinary and unique nature and is reasonably anticipated to contribute significantly to economic development and tourism in the state and the communities where the project is located; (b) The project is reasonably anticipated to result in a substantial increase in out-of-state tourism; (c) A significant portion of the sales tax revenue generated by the project is reasonably anticipated to be attributable to transactions with nonresidents of the state. An exception to this requirement may apply if a significant portion of the sales tax revenue generated by the project is reasonably anticipated to be attributable to residents of the state but the revenue would otherwise leave the state due to a lack of a similar project or facility in the state. (d) The local government has provided reliable economic data demonstrating that, in the absence of state sales tax increment revenue, the project is not reasonably anticipated to be developed within the foreseeable future. (4) The general assembly shall appropriate fifty thousand dollars to the office of state planning and budgeting for the 2014-15 state fiscal year to be used by the office for necessary and additional analytical work related to the proposed regional tourism projects.

C.R.S. § 24-46-305 Regional tourism project approval - director - commission - review

24-46-305. Regional tourism project approval - director - commission - review. (1) Upon receipt of a local government's application for a regional tourism project, the director or the director's designee shall review the application and shall make an initial determination regarding whether the application has met the criteria for a regional tourism project specified in section 24-46-304. (2) (a) Upon review of each application for completeness, the director shall forward the application to any county or counties where the regional tourism project will be implemented and to municipalities adjacent to where the regional tourism project will be implemented for an opportunity to review the application and submit comments to the commission. The director shall provide such counties and municipalities with the application at least thirty days prior to the public hearing held pursuant to subsection (3) of this section. The director shall also forward the application to the commission with a recommendation that the commission approve or deny the application or approve the application with conditions; except that the commission shall not approve any project that, if approved, would likely create a state sales tax revenue dedication of more than fifty million dollars to all regional tourism projects in any given year. (b) The commission shall not approve more than two initial projects pursuant to this subsection (2). (c) On or after May 31, 2014, but prior to January 1, 2016, the commission may approve two new regional tourism projects. (3) The commission shall hold a public hearing, subject to the provisions of the "Colorado Sunshine Act of 1972", article 6 of this title, to review and consider the application. After the hearing has been held, the commission shall review each application and give consideration to the director's recommendations. The commission shall take action on the application within a reasonable time after submission. If the commission approves the application, it shall adopt a resolution specifying the following: (a) The local government that has been approved to undertake a regional tourism project; (b) The area of the regional tourism zone; (c) Whether the commission has authorized the creation of a regional tourism authority; and (d) The total cumulative dollar amount and percentage of the state sales tax increment revenue that will be dedicated to the regional tourism project. Such percentage shall be set at a value that in the best estimation of the commission will result in only the net new revenue likely created by the project and related development being dedicated to the financing entity and shall exclude any sales tax revenue the state would likely have received without the project and development. The total cumulative dollar amount and percentage of the sales tax increment revenue that can be dedicated to the regional tourism project shall not exceed the third-party analyst's calculation of the total cumulative dollar amount and percentage of sales tax increment revenue that can be dedicated to the regional tourism project, as reported pursuant to section 24-46-304 (2)(i), by more than fifty percent; except that the commission may determine a total cumulative dollar amount and percentage of the sales tax increment revenue that can be dedicated to the regional tourism project that exceeds the third-party analyst's calculations by more than fifty percent by a unanimous vote of all members of the commission. sm project, as reported pursuant to section 24-46-304 (2)(i), by more than fifty percent; except that the commission may determine a total cumulative dollar amount and percentage of the sales tax increment revenue that can be dedicated to the regional tourism project that exceeds the third-party analyst's calculations by more than fifty percent by a unanimous vote of all members of the commission. (4) As part of the approval of a regional tourism project, the commission shall authorize the department of revenue to collect the percentage of the state sales tax increment revenue set by the commission pursuant to paragraph (d) of subsection (3) of this section on behalf of the approved financing entity and shall authorize the financing entity to receive and utilize the state sales tax increment revenue for the duration of the financing term. In implementing such authorization, the department of revenue shall remit such revenue to the financing entity on a monthly basis promptly after collection. The commission shall authorize the utilization of the state sales tax increment revenue by the financing entity pursuant to this part 3 and any conditions of approval imposed by the commission and incorporated in writing into the commission's resolution of approval. (4.5) The total amount of state sales tax increment revenue dedicated to the regional tourism project for the entire duration of the project shall not exceed the total cumulative dollar amount specified by the commission pursuant to paragraph (d) of subsection (3) of this section. The department of revenue shall track the annual and cumulative state sales tax increment revenue remitted to the financing entity for the project and shall notify the commission when cumulative payments approach the limits set by the commission for the commission's concurrence regarding the dollar limits. After the department of revenue has cumulatively remitted such total cumulative dollar amount to the financing entity pursuant to subsection (4) of this section, the department of revenue shall not remit any additional sales tax increment revenue from the state to the financing entity, even if the approved financing term is not completed. The department of revenue shall notify the commission if it is no longer remitting sales tax increment revenue to the financing entity because the financing entity has reached its total cumulative dollar amount of sales tax increment revenue. (5) Following the commission's approval of an application, the commission shall promptly transmit written notice and a copy of the approval to the executive director of the department of revenue. Such transmittal shall include any information deemed necessary by the department of revenue to fulfill its obligations pursuant to this part 3.

C.R.S. § 24-46-306 Regional tourism authority - board - creation - powers and duties

24-46-306. Regional tourism authority - board - creation - powers and duties. (1) The commission shall not deny a request to authorize the creation of a regional tourism authority if the commission otherwise approves an application for a regional tourism project that includes a request for the formation of a regional tourism authority. (2) A regional tourism authority, if authorized, shall be governed by a board consisting of the following members: (a) If the applicant is a single local governmental entity, two members appointed by the commission who are owners of commercial property within the regional tourism zone and three members appointed by the local governmental entity. Of the members appointed by the local governmental entity, at least one member shall be a locally elected official and at least one member shall represent the community at large. (b) If the applicant is two local governmental entities, three members appointed by the commission who are owners of commercial property within the regional tourism zone and two members appointed by each of the local governmental applicants. Of the members appointed by the local governmental applicants, at least one member shall be an elected official of the local government and at least one member shall represent the community at large. (c) Except as otherwise provided in paragraph (d) of this subsection (2), if the applicant is more than two local governmental entities, a single member who is an elected official and a single member who represents the community at large appointed by each local governmental entity and one less than an equal number of commercial property owners within the tourism zone appointed by the commission. (d) If the applicant is more than two local governmental entities that consist of more than two counties, a single member who is an elected official and a single member who represents the county at large appointed by each county governmental entity and one less than an equal number of commercial property owners within the regional tourism zone who are appointed by the commission. (3) Unless limited by the commission's conditions of approval, each authority shall have all of the powers necessary or convenient to carry out and effect the purposes and provisions of this part 3, including but not limited to the following powers: (a) Perpetual existence and succession; (b) To adopt, have, and use a corporate seal; (c) To sue and be sued and to be a party to suits, actions, and proceedings; (d) To undertake regional tourism projects; (e) To enter into contracts and agreements affecting the affairs of the regional tourism authority as necessary to complete a regional tourism project; (f) To receive, invest, pledge, spend, and otherwise utilize and expend state sales tax increment revenue in accordance with an approved regional tourism project; (g) To assign and pledge to any county revitalization authority, metropolitan district, or urban renewal authority having all or any portion of the regional tourism zone within its boundaries or service area the authority's right to receive and utilize state sales tax increment revenue to support bonds or other financing instruments issued or entered into by the metropolitan district or urban renewal authority for eligible costs or to acquire eligible improvements, including but not limited to loans or funding and reimbursement agreements with developers involved in the regional tourism project or other third parties; (h) To borrow money and incur indebtedness and evidence the same by certificates and note and debentures, to issue bonds, and to invest any moneys of the authority not required for immediate disbursement in property or in securities in which public bodies may legally invest funds subject to their control pursuant to part 6 of article 75 of this title; ional tourism project or other third parties; (h) To borrow money and incur indebtedness and evidence the same by certificates and note and debentures, to issue bonds, and to invest any moneys of the authority not required for immediate disbursement in property or in securities in which public bodies may legally invest funds subject to their control pursuant to part 6 of article 75 of this title; (i) To deposit any moneys not required for immediate disbursement in any depository authorized in section 24-75-603 and, for the purpose of making such deposits, to appoint by written resolution one or more persons to act as custodians of the moneys of the authority, which person or persons shall give surety bonds in the amounts and form and for the purposes as the authority requires; (j) To make such appropriations and expenditures of its funds and to set up, establish, and maintain such general, separate, or special funds and bank accounts or other accounts as it deems necessary or convenient to carry out and effect the purposes and provisions of this part 3; (k) To accept on behalf of the regional tourism authority real or personal property for the use of the authority and to accept gifts and conveyances made to the authority upon such terms or conditions as the board of the authority may approve; (l) To adopt, amend, and enforce bylaws and rules that are not in conflict with the constitution and laws of the state for carrying out the business, objects, and affairs of the authority; (m) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted to the regional tourism authority by this part 3. Such specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this part 3; and (n) To authorize the use of electronic records or signatures and to adopt rules, standards, policies, and procedures for use of electronic records or signatures pursuant to article 71.3 of this title. (4) A regional tourism authority shall not have the power of eminent domain and shall not have the power to impose or levy any sales tax, use tax, property tax, or any other tax. (5) The board of directors of a regional tourism authority shall be subject to the provisions of the "Colorado Open Records Act", article 72 of this title, and the "Colorado Sunshine Act of 1972", article 6 of this title.

C.R.S. § 24-46-307 State sales tax increment revenue

24-46-307. State sales tax increment revenue. (1) In order to implement the collection of state sales tax increment revenue, the resolution adopted by the commission approving a regional tourism project shall state that state sales taxes, if any, levied and collected after the effective date of the commission's approval of the project shall be divided and distributed by the department of revenue as follows: (a) The portion of state sales taxes collected within the boundaries of the regional tourism zone equal to the base year revenue shall be paid into the state treasury as such state sales taxes are normally collected and paid; and (b) The portion of sales tax revenue in excess of the base year revenue shall be allocated to and, when collected, paid into a special fund established by the financing entity. The financing entity shall segregate such revenue from other moneys of the financing entity, if any, and shall utilize such sales tax revenue solely to finance eligible costs incurred for the purpose of constructing the eligible improvements and implementing the regional tourism project. The special fund may be used, without limitation, to pay the principal of, the interest on, and any premiums due in connection with the bonds of, loans or advances to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such financing entity for financing or refinancing, in whole or in part, a regional tourism project. Any excess state sales tax collections not allocated pursuant to this paragraph (b) shall be paid into the funds of the state treasury. (2) State sales tax increment revenue, together with any investment income earned thereon, shall be construed and treated for all purposes as being assigned to, the property of, and the revenue of the applicable financing entity and shall not be construed or treated for any purpose as revenue or property of the state.

C.R.S. § 24-46-308 Annual report - audit

24-46-308. Annual report - audit. (1) Within ninety days of the end of the first full state fiscal year after the commission approves a regional tourism project and on the same date each year thereafter, the financing entity shall prepare and submit to the commission an annual report detailing the total amount of state sales tax increment revenue that the regional tourism project has collected over the past year, how such revenue has been spent, projected revenue for the remainder of the period for which the regional tourism project may collect state sales tax increment revenue, and a summary of the status of construction of the eligible improvements. If any information provided in the annual report is a trade secret, proprietary, or otherwise entitled to protection pursuant to article 72 of this title, it shall be so designated and shall be kept confidential by the state. The governing body of the financing entity shall attest to the accuracy of the information provided in the annual report. (2) With the annual report, a financing entity shall submit an independent audit of its financial status that is prepared by a certified public accountant attesting to the accuracy of the annual report. In the report, the financing entity shall state whether any state sales tax increment revenue is being used for purposes other than for eligible costs, and any other financial information that is reasonably required by the commission. (3) If the audit finds that state sales tax increment revenue has been used for unauthorized purposes, the financing entity shall be liable for the repayment of such state sales tax increment revenue to the project or to the general fund of the state. The repayment may be made from moneys of the financing entity derived from sources other than state sales tax increment revenue, if any, by offset against future state sales tax increment revenue that otherwise would be disbursed to it by the department of revenue, or from other moneys that are legally available to the financing entity for such purpose. (4) If the financing entity is a county revitalization authority, a metropolitan district, or an urban renewal authority, it may comply with the requirements of this section by submitting to the commission a copy of the report that the metropolitan district or urban renewal authority is otherwise required to submit to a local government pursuant to law. Such copy must be delivered to the commission concurrently with the delivery of the annual report and audit when otherwise required by law. (5) The Colorado office of economic development and the department of revenue shall prepare a report to be submitted by the office no later than November 1 of the applicable fiscal year to the finance committees of the house of representatives and senate, the business and economic development committee of the house of representatives, and the business, labor, and technology committee of the senate, or any successor committees. The report shall present information on all tax expenditures for regional tourism economic development during the prior fiscal year and shall include information from the reports required pursuant to subsection (6) of this section. (6) (a) Each year, no later than September 1, the department of revenue shall report the aggregate amount of state sales tax increment revenue diverted to financing entities for approved projects. rmation on all tax expenditures for regional tourism economic development during the prior fiscal year and shall include information from the reports required pursuant to subsection (6) of this section. (6) (a) Each year, no later than September 1, the department of revenue shall report the aggregate amount of state sales tax increment revenue diverted to financing entities for approved projects. (b) Every two years, no later than September 1, the Colorado office of economic development and the department of revenue shall report detailed information on each project approved to receive state sales tax increment revenue, including but not necessarily limited to: (I) The name, address, and contact for each recipient; (II) The amount of sales tax revenue diverted for the project; (III) The boundaries of the approved regional tourism zone and narrative for the project; (IV) The proposed term of financing and the percent of the new net revenue that is approved for the project; (V) The actual state sales tax revenue collected within the zone compared to the projected revenues contained in the approved application; (VI) The number of net new jobs directly created by the project in each category as defined by the Colorado department of labor and employment occupation employment statistics survey and the wages and health benefits for jobs in each category; and (VII) An assessment of the overall effectiveness of the project.

C.R.S. § 24-46-309 Commencement of development

24-46-309. Commencement of development. (1) Substantial work on a regional tourism project, including but not limited to the financing entity's issuance of bonds or other debt instruments, the repayment of which is secured by a pledge of the state sales tax increment revenue or the commencement of actual development or predevelopment, such as erecting permanent structures, excavating the ground to lay foundations, mass grading of the site, or work of a similar description that manifests an intention and purpose to complete the project shall commence within five years from the date of approval of the project by the commission. (2) If substantial work on the regional tourism project toward the goals specified in the application pursuant to section 24-46-304 does not commence within five years of approval by the commission, the commission may revoke or modify its approval of the financing entity or the regional tourism project. Revocation of approval may be appealed to the commission, which may reinstate its approval upon a showing of good cause for the delay. Any state sales tax increment revenue that the regional tourism project has generated from the time of the original approval for the project may remain dedicated to the project to the extent that it has been previously expended or pledged by the financing entity for the financing of eligible costs. If substantial work on the regional tourism project does not commence within one year of reinstatement of approval from the commission, the commission shall revoke approval of the project. (3) If the commission revokes its approval of the financing entity or the regional tourism project, the commission may require that any state sales tax increment revenue collected during that period, together with investment income earned thereon, that was not previously expended or pledged by the financing entity for the financing of eligible costs shall be refunded to the state treasurer, and no further moneys shall be remitted by the state. (4) In evaluating whether substantial work has been commenced for purposes of administering this section, the commission shall rely on the information and data supplied in the annual reports submitted pursuant to section 24-46-308. The commission shall have authority to revoke its approval of a financing entity or a regional tourism project only pursuant to this section.

C.R.S. § 24-46-310 Issuance of bonds by a financing entity

24-46-310. Issuance of bonds by a financing entity. (1) A financing entity may issue bonds from time to time in its discretion to finance any eligible improvements with respect to a regional tourism project and may also issue refunding or other bonds of the financing entity from time to time in its discretion for the payment, retirement, renewal, or extension of any bonds previously issued by the financing entity under this section and to provide for the replacement of lost, destroyed, or mutilated bonds previously issued under this section. (2) (a) Bonds issued under this section may be general obligation bonds of the financing entity, the payment of which, as to principal and interest and premiums, if any, the full faith, credit, and assets, acquired and to be acquired, of the financing entity are irrevocably pledged. (b) Bonds issued under this section may be special obligations of the financing entity that, as to principal and interest and premiums, if any, are payable solely from and secured only by a pledge of any income, proceeds, revenues, or funds of the financing entity, including, without limitation, state sales tax increment revenue. (3) Notwithstanding any other provision of this section, any bonds issued under this section may be additionally secured as to the payment of the principal and interest and premiums, if any, by a mortgage of any regional tourism project, or any part thereof, title to which is then or thereafter in the financing entity or of any other real or personal property or interests therein then owned or thereafter acquired by the financing entity. (4) Notwithstanding any other provision of this section, general obligation bonds issued under this section may be additionally secured as to the payment of the principal and interest and premiums, if any, as provided in subsection (2) of this section, with or without being also additionally secured as to payment of the principal and interest and premiums, if any, by a mortgage as provided in subsection (3) of this section or a trust agreement as provided in subsection (5) of this section. (5) Notwithstanding any other provision of this section, any bonds issued under this section may be additionally secured as to the payment of the principal and interest and premiums, if any, by a trust agreement by and between the financing entity and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the state. (6) Bonds issued under this section shall not constitute an indebtedness of the state or of any county, municipality, or public body of the state other than the financing entity issuing such bonds and shall not be subject to the provisions of any other law or of the charter of any municipality relating to the authorization, issuance, or sale of bonds. a trust company within or without the state. (6) Bonds issued under this section shall not constitute an indebtedness of the state or of any county, municipality, or public body of the state other than the financing entity issuing such bonds and shall not be subject to the provisions of any other law or of the charter of any municipality relating to the authorization, issuance, or sale of bonds. (7) Bonds issued under this section shall be authorized by a resolution of the financing entity and may be issued in one or more series and shall bear such date, be payable upon demand or mature at such time, bear interest at such rate, be in such denomination, be in such form, either coupon or registered or otherwise, carry such conversion or registration privileges, have such rank or priority, be executed in the name of the financing entity in such manner, be payable in such medium of payment, be payable at such place, be subject to such callability provisions or terms of redemption, with or without premiums, be secured in such manner, be of such description, contain or be subject to such covenants, provisions, terms, conditions, and agreements, including provisions concerning events of default, and have such other characteristics as may be provided by such resolution or by the trust agreement, indenture, or mortgage, if any, issued pursuant to such resolution. The seal, or a facsimile thereof, of the financing entity shall be affixed, imprinted, engraved, or otherwise reproduced upon each of its bonds issued under this section. Bonds issued under this section shall be executed in the name of the financing entity by the manual or facsimile signatures of such officials as may be designated in said resolution or trust agreement, indenture, or mortgage; except that at least one signature on each such bond shall be a manual signature. Coupons, if any, attached to such bonds shall bear the facsimile signature of such official of the financing entity as may be designated as provided in this subsection (7). Said resolution or trust agreement, indenture, or mortgage may provide for the authentication of the pertinent bonds by the trustee. (8) Bonds issued under this section may be sold by the financing entity in such manner and for such price as the financing entity, in its discretion, may determine, at par, below par, or above par, at private sale or at public sale after notice published prior to such sale in a newspaper having general circulation in the municipality, or in such other medium of publication as the financing entity may deem appropriate, or may be exchanged by the financing entity for other bonds issued by it under this section. (9) If any of the officials of the financing entity whose signatures or facsimile signatures appear on any of its bonds or coupons issued under this section cease to be such officials before the delivery of such bonds, such signatures or facsimile signatures, as the case may be, shall nevertheless be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. (10) Notwithstanding any other provision of law, any bonds that are issued pursuant to this section are fully negotiable. (11) In any suit, action, or proceeding involving the validity or enforceability of any bond that is issued under this section or the security therefor, any such bond reciting in substance that it has been issued by the financing entity in connection with a regional tourism project or any activity or operation of the financing entity under this part 3 shall be conclusively deemed to have been issued for such purposes; and such regional tourism project or such operation or activity, as the case may be, shall be conclusively deemed to have been initiated, planned, located, undertaken, accomplished, and carried out in accordance with the provisions of this part 3. urism project or any activity or operation of the financing entity under this part 3 shall be conclusively deemed to have been issued for such purposes; and such regional tourism project or such operation or activity, as the case may be, shall be conclusively deemed to have been initiated, planned, located, undertaken, accomplished, and carried out in accordance with the provisions of this part 3. (12) Pending the preparation of any definitive bonds under this section, a financing entity may issue its interim certificates or receipts or its temporary bonds, with or without coupons, exchangeable for such definitive bonds when the latter have been executed and are available for delivery. (13) A person retained or employed by a financing entity as an advisor or a consultant for the purpose of rendering financial advice and assistance may purchase or participate in the purchase or distribution of its bonds when such bonds are offered at public or private sale. (14) No commissioner or other officer of a financing entity issuing bonds under this section and no person executing such bonds is liable personally on such bonds or is subject to any personal liability or accountability by reason of the issuance thereof. (15) No commissioner or other officer of a regional tourism authority issuing bonds pursuant to this part 3 and no person executing such bonds shall be liable personally on such bonds or shall be subject to any personal liability or accountability by reason of the issuance of the bonds. (16) Bonds that are issued pursuant to this part 3 are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, shall be exempted from all taxes.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026

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