HB 1059

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1059
     BY REPRESENTATIVE(S) Hartsook and Stewart R., Boesenecker, Duran,
     Weinberg;
     also SENATOR(S) Frizell and Snyder, Kipp, Coleman.
     CONCERNING THE CASH FUNDS CREATED IN CONNECTION WITH MONEY
             RETAINED BY THE DEPARTMENT OF REVENUE TO MITIGATE THE
             ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT IN
             COLLECTING CERTAIN CHARGES.
     Be it enacted by the General Assembly of the State of Colorado:
           SECTION 1. In Colorado Revised Statutes, add 24-35-123 as
     follows:
             24-35-123. Cost recovery cash fund - creation - definitions.
           (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
     REQUIRES:
             (a) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.
             (b) "COST RECOVERY CASH FUND" OR "FUND" MEANS THE COST
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
RECOVERY CASH FUND CREATED IN SUBSECTION (2) OF THIS SECTION.
     (2) (a) THE COST RECOVERY CASH FUND IS CREATED IN THE STATE
TREASURY. THE FUND CONSISTS OF MONEY RETAINED BY THE DEPARTMENT
AND CREDITED TO THE FUND BY THE STATE TREASURER IN CONNECTION WITH
THE FOLLOWING:
        (I) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING THE
PREPAID WIRELESS 911 CHARGE PURSUANT TO SECTION 29-11-102.5
(3)(e)(II);
      (II) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING THE
PRODUCTION FEES FOR CLEAN TRANSIT AND THE PRODUCTION FEES FOR
WILDLIFE AND LAND REMEDIATION PURSUANT TO SECTION 33-61-104 (1);
      (III) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING
THE ENTERPRISE PER RIDE FEES PURSUANT TO SECTION 40-10.1-607.5 (4);
AND
      (IV) THE COST OF COLLECTING, ADMINISTERING, AND ENFORCING
THE RETAIL DELIVERY FEE AND THE ENTERPRISE RETAIL DELIVERY FEES
PURSUANT TO SECTION 43-4-218 (4)(b).
      (b)   ALL MONEY   IN THE COST RECOVERY CASH FUND IS
CONTINUOUSLY APPROPRIATED TO THE DEPARTMENT TO DEFRAY THE COSTS
INCURRED BY THE DEPARTMENT IN COLLECTING, ENFORCING, AND
ADMINISTERING THE FOLLOWING CHARGES AND FEES:
      (I) THE PREPAID WIRELESS 911 CHARGE COLLECTED PURSUANT TO
PART 1 OF ARTICLE 11 OF TITLE 29;
     (II) THE PRODUCTION FEES FOR CLEAN TRANSIT AND THE
PRODUCTION FEES FOR WILDLIFE AND LAND REMEDIATION COLLECTED
PURSUANT TO ARTICLE 61 OF TITLE 33;
      (III) THE ENTERPRISE PER RIDE FEES COLLECTED PURSUANT TO
SECTION 40-10.1-607.5; AND
      (IV) THE RETAIL DELIVERY FEES AND THE ENTERPRISE RETAIL
DELIVERY FEES COLLECTED PURSUANT TO SECTION 43-4-218.
PAGE 2-HOUSE BILL 26-1059
      (3) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE COST
RECOVERY CASH FUND TO THE FUND.
      (4) THE FUND IS EXEMPT FROM THE LIMITATIONS SET FORTH IN
SECTION 24-75-402.
       (5) ON OR BEFORE NOVEMBER 1, 2027, AND ON OR BEFORE
NOVEMBER 1 OF EACH YEAR THEREAFTER, THE DEPARTMENT SHALL SUBMIT
A REPORT TO THE JOINT BUDGET COMMITTEE WITH THE FOLLOWING:
     (a) THE COST ASSOCIATED WITH COLLECTING, ADMINISTERING, AND
ENFORCING EACH FEE AND CHARGE THAT IS COLLECTED, ADMINISTERED, AND
ENFORCED FROM MONEY IN THE COST RECOVERY CASH FUND; AND
       (b)   WHERE APPLICABLE AND WHEN INFORMATION IS READILY
AVAILABLE, DETAILS ON SPECIFIC TASKS THAT CONTRIBUTE A SIGNIFICANT
PORTION OF THE OVERALL WORKLOAD IN CONNECTION WITH THE FEES AND
CHARGES THAT HAVE THE LARGEST COST TO COLLECT, ADMINISTER, AND
ENFORCE.
      SECTION 2. In Colorado Revised Statutes, 24-75-402, amend
(5)(mmm) and (5)(nnn); and add (5)(qqq) as follows:
      24-75-402. Cash funds - limit on uncommitted reserves -
reduction in the amount of fees - exclusions - definitions.
       (5) Notwithstanding any provision of this section to the contrary, the
following cash funds are excluded from the limitations specified in this
section:
       (mmm) The reentry services for justice-involved individuals
reinvestment cash fund created in section 25.5-4-505.7; and
        (nnn) The health-related social needs reinvestment cash fund created
in section 25.5-5-340; AND
      (qqq) THE COST RECOVERY CASH FUND CREATED IN SECTION
24-35-123 (2).
PAGE 3-HOUSE BILL 26-1059
        SECTION 3. In Colorado Revised Statutes, 29-11-102.5, amend
(3)(e)(II) as follows:
      29-11-102.5. Imposition of charge on prepaid wireless - prepaid
wireless trust cash fund - rules - transfer - applicability - definitions -
repeal.
       (3) (e) (II) The department may expend WHEN COLLECTING THE
PREPAID WIRELESS 911 CHARGE, THE EXECUTIVE DIRECTOR MAY RETAIN an
amount, not to exceed three percent of the collected charges in the prepaid
wireless trust cash fund, necessary to reimburse the department for its direct
costs of administering the collection and remittance of prepaid wireless 911
charges AND SHALL TRANSMIT THE AMOUNT RETAINED TO THE STATE
TREASURER, WHO SHALL CREDIT THE AMOUNT TO THE COST RECOVERY CASH
FUND CREATED IN SECTION 24-35-123 (2).
       SECTION 4. In Colorado Revised Statutes, 33-61-103, amend
(1)(d) as follows:
       33-61-103. Fee for oil and gas production - remediation of harm
to wildlife and land - cash fund.
       (1) (d) The executive director shall transmit any fees collected
pursuant to subsection (1)(c) of this section to the state treasurer, who shall
credit the fees, minus the costs to the department of revenue for
administering the fees pursuant to section 33-61-104, which costs shall be
credited to the oil and gas production fees collection fund created in section
33-61-104 (1), to the CASH fund SPECIFIED IN SECTION 33-61-104 (1).
        SECTION 5. In Colorado Revised Statutes, 33-61-104, amend (1)
as follows:
       33-61-104. Collection and administration of production fees -
rules - transfer - repeal.
       (1) When collecting the production fees for clean transit and the
production fees for wildlife and land remediation, the executive director
shall retain an amount that does not exceed the total cost of collecting,
administering, and enforcing the production fees for clean transit and the
production fees for wildlife and land remediation and shall transmit the
PAGE 4-HOUSE BILL 26-1059
amount retained to the state treasurer, who shall credit the AMOUNT AS
FOLLOWS: production fees for clean transit and the production fees for
wildlife and land remediation
       (a) (I) PRIOR TO JULY 1, 2027, to the oil and gas production fees
collection fund, which is created in the state treasury. All money in the oil
and gas production fees collection fund is continuously appropriated to the
department of revenue to defray the costs incurred by the department of
revenue in collecting, enforcing, and administering the production fees for
wildlife and land remediation and the production fees for clean transit.
       (II) THIS SUBSECTION (1)(a) IS REPEALED, EFFECTIVE JULY 1, 2027.
THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND
UNENCUMBERED MONEY REMAINING IN THE OIL AND GAS PRODUCTION FEES
COLLECTION FUND ON JUNE 30, 2027, TO THE COST RECOVERY CASH FUND
CREATED IN SECTION 24-35-123 (2).
     (b) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND
CREATED IN SECTION 24-35-123 (2).
        SECTION 6. In Colorado Revised Statutes, 40-10.1-607.5, amend
(4) as follows:
       40-10.1-607.5. Fees - enterprise per ride fees - collection -
distribution of fee proceeds - rules - transfer - definitions - repeal.
        (4) When collecting the enterprise per ride fees, the department of
revenue shall retain an amount that does not exceed the total cost of
collecting, administering, and enforcing the enterprise per ride fees and
shall transmit the amount retained to the state treasurer, who shall credit it
THE AMOUNT AS FOLLOWS:
        (a) (I) PRIOR TO JULY 1, 2027, to the enterprise per ride fees fund,
which is hereby created in the state treasury. All money in the enterprise per
ride fees fund is continuously appropriated to the department of revenue to
defray the costs incurred by the department in collecting, enforcing, and
administering the enterprise per ride fees.
       (II) THIS SUBSECTION (4)(a) IS REPEALED, EFFECTIVE JULY 1, 2027.
THE   STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND
PAGE 5-HOUSE BILL 26-1059
UNENCUMBERED MONEY REMAINING IN THE ENTERPRISE PER RIDE FEES FUND
ON JUNE 30, 2027, TO THE COST RECOVERY CASH FUND CREATED IN SECTION
24-35-123 (2).
     (b) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND
CREATED IN SECTION 24-35-123 (2).
       SECTION 7. In Colorado Revised Statutes, 43-4-218, amend
(4)(b) as follows:
       43-4-218. Additional funding - retail delivery fee - cost recovery
cash fund - simultaneous collection of enterprise fees - rules - legislative
declaration - definitions - repeal.
        (4) (b) When collecting the retail delivery fee and, in accordance
with subsection (4)(a) of this section, the enterprise retail delivery fees, the
department of revenue shall retain an amount that does not exceed the total
cost of collecting, administering, and enforcing the retail delivery fee and
the enterprise retail delivery fees and shall transmit the amount retained to
the state treasurer, who shall credit it THE AMOUNT AS FOLLOWS:
        (I) (A) PRIOR TO JULY 1, 2027, to the retail delivery fees fund, which
is hereby created in the state treasury. All money in the retail delivery fees
fund is continuously appropriated to the department of revenue to defray the
costs incurred by the department in collecting, enforcing, and administering
the retail delivery fee and the enterprise retail delivery fees.
       (B) THIS SUBSECTION (4)(b)(I) IS REPEALED, EFFECTIVE JULY 1, 2027.
THE  STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND
UNENCUMBERED MONEY REMAINING IN THE RETAIL DELIVERY FEES FUND ON
JUNE 30, 2027, TO THE COST RECOVERY CASH FUND CREATED IN SECTION
24-35-123 (2).
     (II) BEGINNING JULY 1, 2027, TO THE COST RECOVERY CASH FUND
CREATED IN SECTION 24-35-123 (2).
       SECTION 8. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly (August
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
PAGE 6-HOUSE BILL 26-1059
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within
such period, then the act, item, section, or part will not take effect unless
approved by the people at the general election to be held in November 2026
and, in such case, will take effect on the date of the official declaration of
the vote thereon by the governor.
____________________________  ____________________________
Julie McCluskie  James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
____________________________  ____________________________
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
        APPROVED________________________________________
                           (Date and Time)
                    _________________________________________
                   Jared S. Polis
                   GOVERNOR OF THE STATE OF COLORADO
PAGE 7-HOUSE BILL 26-1059