HB 1065

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 26-1065
     BY REPRESENTATIVE(S) McCluskie and Woodrow, Boesenecker,
     Camacho, Jackson, Lindsay, Paschal, Stewart R., Velasco, Zokaie, Bacon,
     Carter, Duran, English, Froelich, Hamrick, Lieder, Lukens, McCormick,
     Nguyen, Rutinel, Rydin, Stewart K., Phillips, Ricks, Smith, Valdez;
     also SENATOR(S) Roberts and Exum, Hinrichsen, Jodeh, Kipp, Amabile,
     Bridges, Cutter, Daugherty, Gonzales J., Lindstedt, Wallace, Coleman.
     CONCERNING TRANSIT AND HOUSING INVESTMENT ZONES, AND, IN
          CONNECTION THEREWITH, MAKING AN APPROPRIATION.
     Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1. Legislative declaration. (1) The general assembly
     finds and declares that:
             (a) Colorado has invested significantly in public transit systems in
     the last several decades, funding over six billion dollars across eighty-five
     miles of new rail lines along the front range;
            (b) Investments in public transit systems across Colorado will
     continue in the coming years with new bus rapid transit lines, rail systems,
     and upgrades to local, intercity, and regional bus services;
     ________
     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.
        (c) Despite recent investments in public transit systems across
Colorado, transit ridership in Colorado lags behind peer states around the
country, due in part to a lack of housing near these transit lines and
infrastructure barriers that can make it challenging for people to access
transit stations;
       (d) Encouraging more housing near transit is important for
increasing transit ridership and improving the cost-effectiveness of transit
services;
       (e) Researchers have found that higher residential densities citywide
increase cost-effectiveness for light rail and bus rapid transit services, as
described in the article "Cost of a Ride: The Effects of Densities on
Fixed-Guideway Transit Ridership and Costs" by Erick Guerra and Robert
Cervero;
       (f) Most light and commuter rail stations and frequent bus corridors
in Colorado have lower housing unit density than is necessary to support
frequent transit;
       (g) Based on 2020 census block housing unit data, over ninety
percent of rail stations and eighty-four percent of bus rapid transit and
frequent bus corridors along the front range have fewer than fifteen housing
units per acre on average within walking distance, while researchers have
generally found that a minimum of fifteen housing units per acre of built
density is needed to support frequent transit;
        (h) Transit-oriented development, including connecting housing
opportunities and services with safe multimodal infrastructure and public
transit, improves the accessibility of communities for people with
disabilities and limited mobility;
        (i) People with disabilities are more likely to live in households with
zero cars, are less likely to drive, and are more likely to rely on public
transit or paratransit, according to the 2017 "National Household Travel
Survey";
       (j) The design of the built environment surrounding transit stations,
including the presence of sidewalks, crosswalks, bike lanes, and other
PAGE 2-HOUSE BILL 26-1065
multimodal infrastructure, influences the accessibility to transit stations and
overall transit ridership, as identified by studies such as "Travel and the
Built Environment: A Meta-Analysis" by Reid Ewing and Robert Cervero,
and "Transit commuting, the network accessibility effect, and the built
environment in station areas across the United States" in the journal
Research in Transportation Economics;
        (k) Improvements to the design of the built environment surrounding
transit stations support placemaking, which is the process of intentionally
planning, designing, and building infrastructure and housing that capitalize
on a community's amenities and culture;
      (l) Placemaking can enhance the desirability of a given community
and the well-being of those who live in, work in, or visit a given
community, and can create a strong demand for housing in a community;
       (m) The 2023 Community and Transportation Preferences Survey
published by the National Association of Realtors found that when deciding
where to live, seventy-nine percent of people said being within an easy walk
of other places and things, such as shops and parks, is very/somewhat
important, eighty-five percent said sidewalks and places to walk are
very/somewhat important, and sixty-five percent said having public
transport nearby is very/somewhat important; and
        (n) The 1998 Assessment of the Economic Impacts of Rural Public
Transportation published by the Transit Cooperative Research Program,
which assessed the economic impacts of rural public transportation, found
that there was an eleven percent difference in average net earnings growth
between rural counties that had public transit systems and those rural
counties that did not.
       (2) (a) Pursuant to section 39-26-104 (3), sales delivered to a
purchaser within a transit investment area are properly sourced to the transit
investment area;
        (b) Due to technical limitations, the increment calculation can only
factor in sales made in person within the TIF area, even though additional
online and delivery sales will be induced through more housing availability
and attractive living options due to transit access provided;
PAGE 3-HOUSE BILL 26-1065
        (c) According to the United States census bureau's Quarterly Retail
E-Commerce Sales Report, approximately fifteen percent of sales nationally
are made online, and therefore we assume that, to determine the allocated
increment, the calculated increment based on in-person sales only should be
inflated by twenty percent in order to account for sales that are unable to be
captured due to technical limitations, but would otherwise be included in
the allocated increment; and
       (d) Therefore, it may be necessary to allow the department to
allocate a small amount of state sales tax revenue in excess of the state sales
tax collected on in-person sales made within each transit investment area.
A small amount of the general fund is needed to fulfill the increment that
would have been calculated if tracking at that level of detail were feasible,
and is a technical adjustment, not state fiscal year spending.
       (3) Therefore, by enacting this House Bill 26-1065, the general
assembly intends to establish new financing tools utilizing tax increment
financing to encourage local government efforts to improve infrastructure
near transit and rail stations that will promote placemaking and spur
housing development supported by tax credits, which would not occur
without the enactment of this House Bill 26-1065.
       (4) Given that communities across the state can use support to
further invest in infrastructure, transit, and housing, the general assembly
finds and declares that the new financing options created in this House Bill
26-1065 are available to communities throughout the state, and this
financing option should be used in a manner that considers geographic
diversity.
        (5) Although this House Bill 26-1065 only allows the Colorado
economic development commission to approve six transit investment
projects, the general assembly anticipates that these transit investment
projects will be successful and it is the intent of the general assembly to
later authorize the Colorado economic development commission to approve
additional transit investment projects as state resources allow.
         SECTION 2. In Colorado Revised Statutes, add part 4 to article 46
of title 24 as follows:
                                   PART 4
PAGE 4-HOUSE BILL 26-1065
                 TRANSIT INVESTMENT AREA ACT
        24-46-401. Short title.
        THE SHORT TITLE OF THIS PART 4 IS THE "TRANSIT INVESTMENT AREA
ACT".
        24-46-402. Definitions.
        AS USED IN THIS PART 4, UNLESS THE CONTEXT OTHERWISE REQUIRES:
        (1) "AERIAL TRANSIT FACILITY" MEANS ONE OR MORE PHYSICAL
STRUCTURES THAT USE AERIAL CABLES TO MOVE PASSENGERS AND THAT
LINK DIRECTLY TO ANOTHER FORM OF MASS TRANSIT, SUCH AS PASSENGER
RAIL, LIGHT RAIL, OTHER TYPES OF TRAINS, TROLLEYS, OR BUSES.
      (2) (a) "BASE YEAR REVENUE" MEANS AN AMOUNT EQUAL TO THE
STATE SALES TAX REVENUE COLLECTED ON IN-PERSON SALES MADE WITHIN
A PROPOSED TRANSIT INVESTMENT AREA DURING THE TWELVE-MONTH
PERIOD IMMEDIATELY PRIOR TO THE MONTH IN WHICH A TRANSIT
INVESTMENT PROJECT IS AUTHORIZED, AS DETERMINED BY THE
DEPARTMENT.
        (b)
          AFTER THE FIRST TWELVE MONTHS OF STATE SALES TAX
COLLECTION PURSUANT TO SECTION 24-46-406 (1), AND ANNUALLY
THEREAFTER, THE DEPARTMENT SHALL ADJUST THE BASE YEAR REVENUE BY
THE AMOUNT OF THE BASELINE GROWTH RATE ESTABLISHED BY THE
COMMISSION.
      (3) "BASELINE GROWTH RATE" MEANS THE FORECASTED GROWTH IN
STATE SALES TAX REVENUE COLLECTED ON IN-PERSON SALES MADE WITHIN
A PROPOSED TRANSIT INVESTMENT AREA ABOVE THE BASE YEAR REVENUE
THAT WOULD BE COLLECTED ON IN-PERSON SALES MADE WITHIN A PROPOSED
TRANSIT INVESTMENT AREA IF THE PROPOSED TRANSIT INVESTMENT PROJECT
DID NOT OCCUR, AS DETERMINED BY THE COMMISSION PURSUANT TO
SECTION 24-46-404 (3).
      (4) "BOND" MEANS A BOND OR OTHER CONTRACTUAL OBLIGATION
AND FORM OF INDEBTEDNESS FOR THE PAYMENT OF WHICH A FINANCING
ENTITY HAS PROMISED TO PLEDGE STATE SALES TAX INCREMENT REVENUE
PAGE 5-HOUSE BILL 26-1065
OR ANY OTHER LEGALLY AVAILABLE REVENUES PLEDGED AT THE DISCRETION
OF THE FINANCING ENTITY.
     (5) "COMMISSION" MEANS THE COLORADO ECONOMIC DEVELOPMENT
COMMISSION CREATED IN SECTION 24-46-102.
      (6) "COUNTY REVITALIZATION AUTHORITY" HAS THE MEANING SET
FORTH IN SECTION 30-31-103 (6).
       (7) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE CREATED
IN SECTION 24-35-101.
     (8) "DIRECTOR" MEANS THE DIRECTOR OF THE COLORADO OFFICE OF
ECONOMIC DEVELOPMENT CREATED IN SECTION 24-48.5-101.
        (9) "ELIGIBLE COSTS" MEANS THE COSTS OF:
        (a) DESIGNING, CONSTRUCTING, FINANCING, AND MAINTAINING
ELIGIBLE IMPROVEMENTS DESIGNATED BY THE COMMISSION AS PART OF AN
APPROVED TRANSIT INVESTMENT PROJECT. THESE COSTS INCLUDE THE COSTS
OF:
        (I) ENGINEERING, INCLUDING CONSTRUCTION ENGINEERING;
        (II) SURVEYING, INCLUDING CONSTRUCTION SURVEYING;
        (III) CONSTRUCTION LABOR AND MATERIALS;
        (IV) DESIGN, INCLUDING BONDING, INSURANCE, AND PERMITTING
FEES;
        (V) PLANNING;
        (VI) LEGAL SERVICES;
        (VII) ACCOUNTING;
        (VIII) OVERHEAD OR ADMINISTRATIVE STAFFING;
        (IX) FINANCING;
PAGE 6-HOUSE BILL 26-1065
      (X) BOND ISSUANCE OR REISSUANCE AND UNDERWRITING;
      (XI) INTEREST PAYMENTS;
      (XII) LOAN ORIGINATION FEES;
      (XIII) OPERATIONS; AND
      (XIV) SIMILAR NECESSARY AND CONVENIENT COSTS INCURRED BY
THE FINANCING ENTITY IN EXERCISING ITS POWERS PURSUANT TO THIS PART
4.
      (b) FUNDS ADVANCED BY PRIVATE DEVELOPERS WITHIN THE TRANSIT
INVESTMENT PROJECT TO, OR ON BEHALF OF, THE FINANCING ENTITY FOR
ELIGIBLE IMPROVEMENTS, WHETHER A PRIVATE DEVELOPER ADVANCES
THOSE FUNDS PURSUANT TO LOANS OR CONTRACTUAL FUNDING AND
REIMBURSEMENT AGREEMENTS;
     (c) REASONABLE INTEREST ON THE FUNDS ADVANCED BY A PRIVATE
DEVELOPER PURSUANT TO SUBSECTION (8)(b) OF THIS SECTION;
      (d)    A FINANCING ENTITY'S COSTS FOR PURCHASING ELIGIBLE
IMPROVEMENTS CONSTRUCTED AND OWNED BY THIRD PARTIES EITHER
BEFORE OR AFTER DESIGNATION OF THE TRANSIT INVESTMENT PROJECT; AND
     (e) COSTS AND EXPENSES INCURRED BY A FINANCING ENTITY
PURSUANT TO SECTION 24-35-124 AND IN COMPLYING WITH ITS ANNUAL
REPORT AND AUDIT OBLIGATIONS UNDER THIS PART 4.
      (10)      "ELIGIBLEIMPROVEMENTS" MEANS THE SPECIFIC
IMPROVEMENTS AUTHORIZED BY THE COMMISSION AS PART OF AN APPROVED
TRANSIT INVESTMENT PROJECT, INCLUDING:
      (a) ROADS;
      (b) STREETS;
      (c) STATE HIGHWAYS;
      (d) RIGHTS-OF-WAY;
PAGE 7-HOUSE BILL 26-1065
      (e) LIGHTING;
      (f) DIRECTION AND LOCATION SIGNAGE AND SIMILAR SIGNAGE;
      (g) LAND ACQUISITION;
      (h) SURVEYING, ENGINEERING, SOILS TESTING, SITE PLANNING,
GRADING, AND SIMILAR ACTIVITIES NECESSARY OR CONVENIENT FOR SITE
PREPARATION AND DEVELOPMENT;
      (i) TRAILS AND PATHS;
      (j) PUBLIC SAFETY FACILITIES;
      (k) LANDSCAPING;
      (l) STREET TREES;
      (m) PUBLIC PLAZAS AND PEDESTRIAN SPACES;
      (n) TRANSPORTATION FACILITIES;
      (o) BICYCLE AND PEDESTRIAN INFRASTRUCTURE;
      (p) SURFACE AND STRUCTURED PARKING FACILITIES; AND
     (q) ANY OTHER FACILITIES OR IMPROVEMENTS NECESSARY OR
CONVENIENT FOR THE COMPLETION OF AN APPROVED PROJECT.
      (11) (a) "FINANCING ENTITY" MEANS THE ENTITY DESIGNATED BY
THE COMMISSION IN CONNECTION WITH ITS APPROVAL OF A TRANSIT
INVESTMENT PROJECT TO RECEIVE AND USE STATE SALES TAX INCREMENT
REVENUE.
      (b) A COUNTY REVITALIZATION AUTHORITY, A METROPOLITAN
DISTRICT, AN URBAN RENEWAL AUTHORITY, OR ANY TRANSIT INVESTMENT
AUTHORITY TO BE FORMED PURSUANT TO THIS PART 4 MAY QUALIFY AS A
FINANCING ENTITY.
      (12) "FINANCING TERM" MEANS THE AGGREGATE PERIOD NOT TO
PAGE 8-HOUSE BILL 26-1065
EXCEED THIRTY YEARS AUTHORIZED BY THE COMMISSION PURSUANT TO THIS
PART 4 DURING WHICH THE FINANCING ENTITY IS AUTHORIZED TO RECEIVE
AND USE STATE SALES TAX INCREMENT REVENUE TO FINANCE ELIGIBLE
COSTS.
      (13) "INFLATION OR DEFLATION" MEANS THE ANNUAL PERCENTAGE
CHANGE IN THE UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR
STATISTICS CONSUMER PRICE INDEX, OR A SUCCESSOR INDEX, FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN
CONSUMERS.
     (14) "LOCAL GOVERNMENT" MEANS A CITY, COUNTY, CITY AND
COUNTY, TOWN, OR A GROUP OF CONTIGUOUS CITIES, COUNTIES, CITIES AND
COUNTIES, OR TOWNS.
      (15) "OFFICE OF ECONOMIC DEVELOPMENT" MEANS THE COLORADO
OFFICE OF ECONOMIC DEVELOPMENT CREATED IN SECTION 24-48.5-101.
      (16) "PASSENGER RAIL STATION" HAS THE MEANING SET FORTH IN
SECTION 32-22-102 (8).
     (17) (a) "STATE SALES TAX INCREMENT REVENUE" MEANS AN
ANNUAL AMOUNT EQUAL TO THE TOTAL OF:
     (I) THE ANNUAL REVENUE DERIVED FROM STATE SALES TAXES
COLLECTED ON IN-PERSON SALES MADE WITHIN A DESIGNATED TRANSIT
INVESTMENT AREA IN EXCESS OF THE AMOUNT OF BASE YEAR REVENUE
ADJUSTED TO ACCOUNT FOR THE BASELINE GROWTH RATE; AND
      (II) TWENTY PERCENT OF THE AMOUNT CALCULATED PURSUANT TO
SUBSECTION (17)(a)(I) OF THIS SECTION, WHICH TWENTY PERCENT
APPROXIMATES SALES DELIVERED FROM WITHOUT THE DESIGNATED TRANSIT
INVESTMENT AREA THAT ARE UNABLE TO BE MEASURED AND THEREFORE
NOT INCLUDED AS IN-PERSON SALES MADE WITHIN A DESIGNATED TRANSIT
INVESTMENT AREA.
      (b) (I) EXCEPT THAT, AS APPLIED FOR A TRANSIT INVESTMENT AREA
THAT IS WITHIN A REGIONAL TOURISM ZONE ESTABLISHED BY THE
COMMISSION PURSUANT TO SECTION 24-46-305 (3), "STATE SALES TAX
INCREMENT REVENUE" MEANS AN ANNUAL AMOUNT EQUAL TO THE LESSER
PAGE 9-HOUSE BILL 26-1065
OF:
      (A)  STATE SALES TAX INCREMENT REVENUE AS DETERMINED
PURSUANT TO SUBSECTION (17)(a) OF THIS SECTION; OR
      (B) THE EXCESS, IF ANY, OF THE REGIONAL TOURISM ACT STATE
SALES TAX INCREMENT REVENUE OVER THE PAYABLE REGIONAL TOURISM
ACT STATE SALES TAX INCREMENT REVENUE.
     (II) AS USED IN THIS SUBSECTION (17)(b), UNLESS THE CONTEXT
OTHERWISE REQUIRES:
      (A) "PAYABLE REGIONAL TOURISM ACT STATE SALES TAX
INCREMENT REVENUE" MEANS THE AMOUNT OF REGIONAL TOURISM ACT
STATE SALES TAX INCREMENT REVENUE THAT, PURSUANT TO SECTION
24-46-307 (1)(b), THE DEPARTMENT ALLOCATES AND PAYS INTO A SPECIAL
FUND CREATED BY A FINANCING ENTITY IN ACCORDANCE WITH THE AMOUNT
OF REGIONAL TOURISM ACT STATE SALES TAX INCREMENT REVENUE
AUTHORIZED FOR ALLOCATION BY THE DEPARTMENT TO THE FINANCING
ENTITY BY THE COMMISSION PURSUANT TO SECTION 24-46-305 (4).
     (B) "REGIONAL TOURISM ACT STATE SALES TAX INCREMENT
REVENUE" MEANS THE AMOUNT OF "STATE SALES TAX INCREMENT
REVENUE", AS DEFINED IN SECTION 24-46-303 (12), ATTRIBUTED TO THE
PORTION OF A REGIONAL TOURISM ZONE THAT IS WITHIN THE TRANSIT
INVESTMENT AREA.
      (C) "REGIONAL TOURISM ZONE" HAS THE MEANING SET FORTH IN
SECTION 24-46-303 (11).
      (18) "TRANSIT AGENCY" MEANS A LOCAL OR REGIONAL TRANSIT
DISTRICT, OR A REGIONAL TRANSPORTATION AUTHORITY THAT PROVIDES
PUBLIC TRANSIT.
      (19) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA
DESIGNATED BY THE OFFICE OF ECONOMIC DEVELOPMENT IN THE TRANSIT
AND HOUSING INVESTMENT ZONE MAP PURSUANT TO SECTION 24-48.5-136.
      (20) "TRANSIT INVESTMENT AREA" MEANS A GEOGRAPHIC AREA
THAT IS WITHIN A TRANSIT AND HOUSING INVESTMENT ZONE AND THAT THE
PAGE 10-HOUSE BILL 26-1065
COMMISSION APPROVES AS PART OF A TRANSIT INVESTMENT PROJECT
PURSUANT TO SECTION 24-46-404 (3)(d)(I)(B). A TRANSIT INVESTMENT
AREA:
      (a) SHALL NOT EXTEND INTO THE TERRITORIAL BOUNDARIES OF ANY
LOCAL GOVERNMENT, UNLESS THE LOCAL GOVERNMENT REQUESTS THAT THE
TRANSIT INVESTMENT AREA IS WITHIN ITS BOUNDARIES AT LEAST IN PART;
      (b)   MAY ONLY INCLUDE PART OF A LOCAL GOVERNMENT'S
JURISDICTION;
      (c)  MAY INCLUDE NONCONTIGUOUS TRACTS OR PARCELS OF
PROPERTY IN THE SAME TRANSIT INVESTMENT AREA; AND
      (d) MAY EXTEND BEYOND THE RELEVANT TRANSIT INVESTMENT
ZONE DESIGNATED BY THE OFFICE OF ECONOMIC DEVELOPMENT PURSUANT
TO SECTION 24-48.5-136, IF THE RELEVANT TRANSIT INVESTMENT ZONE
ENCOMPASSES A COMMUNITY THAT IS NOT EVENLY DISTRIBUTED DUE TO
GEOGRAPHICAL CONSTRAINT INCLUDING MOUNTAINS, WATER FEATURES,
AND OTHER NATURAL TOPOGRAPHICAL FEATURES, BUT IN SO DOING SHALL
NOT EXTEND FURTHER THAN THREE MILES FROM A TRANSPORTATION
FACILITY AS CALCULATED BY MEASURING THE DISTANCE ALONG A ROAD OR
PEDESTRIAN NETWORK THAT IS USED TO ACCESS THE TRANSPORTATION
FACILITY.
      (21) "TRANSIT INVESTMENT AUTHORITY" OR "AUTHORITY" MEANS
A CORPORATE BODY ORGANIZED PURSUANT TO THIS PART 4 FOR THE
PURPOSES, WITH THE POWERS, AND SUBJECT TO THE RESTRICTIONS SET
FORTH IN THIS PART 4 AND THE FORMATION OF WHICH HAS BEEN APPROVED
BY THE COMMISSION PURSUANT TO THIS PART 4.
       (22) "TRANSIT INVESTMENT PROJECT" OR "PROJECT" MEANS A
DEVELOPMENT PROJECT THAT IS PLANNED TO INCLUDE A TRANSPORTATION
FACILITY OR SIGNIFICANT IMPROVEMENTS TO A TRANSPORTATION FACILITY
TOGETHER WITH ANCILLARY USES, STRUCTURES, AND IMPROVEMENTS, AND
THAT THE COMMISSION APPROVES PURSUANT TO SECTION 24-46-404 (3).
      (23) (a) "TRANSIT STATION" MEANS AN IN-PERSON LOCATION
DESIGNED TO INTEGRATE AND FACILITATE THE CONNECTION BETWEEN
MULTIPLE MODES OF TRANSPORTATION, INCLUDING:
PAGE 11-HOUSE BILL 26-1065
      (I) PUBLIC TRANSIT, SUCH AS BUSES;
      (II) LIGHT RAIL, AERIAL TRANSIT, AND COMMUTER RAIL;
      (III) ACTIVE TRANSPORTATION, SUCH AS BICYCLE AND PEDESTRIAN
INFRASTRUCTURE;
      (IV) SHARED MOBILITY SERVICES INCLUDING CAR SHARE, BIKE
SHARE, AND SCOOTER SHARE;
      (V) RIDE-HAILING AND DEMAND-RESPONSIVE SERVICES; AND
      (VI) PRIVATE VEHICLES.
      (b) A TRANSIT STATION MAY INCLUDE RELATED INFRASTRUCTURE
THAT SUPPORTS SEAMLESS AND EFFICIENT MULTIMODAL TRAVEL, SUCH AS
PARK-AND-RIDE FACILITIES, ELECTRIC VEHICLE CHARGING STATIONS,
BICYCLE STORAGE, WAYFINDING SYSTEMS, AND PASSENGER AMENITIES.
      (24) "TRANSPORTATION FACILITY" MEANS A TRANSIT STATION OR
PASSENGER RAIL STATION.
       (25) "URBAN RENEWAL AUTHORITY" HAS THE MEANING SET FORTH
IN SECTION 31-25-103 (8.5).
      24-46-403.     Transit investment project - application -
requirements - transit investment zones cash fund.
      (1) BEGINNING JANUARY 1, 2027, A LOCAL GOVERNMENT, EITHER
ALONE OR IN PARTNERSHIP WITH A TRANSIT AGENCY THAT HAS JURISDICTION
WITHIN A PROPOSED TRANSIT INVESTMENT AREA, MAY SUBMIT AN
APPLICATION TO THE OFFICE OF ECONOMIC DEVELOPMENT FOR THE
APPROVAL OF A TRANSIT INVESTMENT PROJECT, INCLUDING THE:
      (a) DESIGNATION OF A TRANSIT INVESTMENT AREA;
      (b)   CREATION OF A TRANSIT INVESTMENT AUTHORITY, AS
NECESSARY; AND
      (c) DESIGNATION OF A FINANCING ENTITY TO RECEIVE, USE, AND
PAGE 12-HOUSE BILL 26-1065
DISBURSE STATE SALES TAX INCREMENT REVENUE FOR ELIGIBLE COSTS.
      (2) (a) BEFORE A LOCAL GOVERNMENT SUBMITS AN APPLICATION FOR
A TRANSIT INVESTMENT PROJECT TO THE OFFICE OF ECONOMIC
DEVELOPMENT PURSUANT TO SUBSECTION (1) OF THIS SECTION, THE LOCAL
GOVERNMENT MUST SUBMIT A MAP SHOWING THE PROPOSED BOUNDARIES OF
A PROPOSED TRANSIT INVESTMENT AREA TO THE OFFICE OF ECONOMIC
DEVELOPMENT, ALONG WITH DATA USED TO ESTIMATE THE STATE SALES TAX
INCREMENT REVENUE AND A CALCULATION SHOWING THE PROJECTED
BASELINE GROWTH RATE. THE OFFICE OF ECONOMIC DEVELOPMENT SHALL
VERIFY WHETHER THE PROPOSED TRANSIT INVESTMENT AREA IS WITHIN A
TRANSIT AND HOUSING INVESTMENT ZONE THAT IS ESTABLISHED IN
RELATION TO A TRANSIT FACILITY THAT IS THE SUBJECT OF THE TRANSIT
INVESTMENT PROJECT IN THE LOCAL GOVERNMENT'S APPLICATION
SUBMITTED PURSUANT TO SUBSECTION (1) OF THIS SECTION, AND THE OFFICE
OF ECONOMIC DEVELOPMENT SHALL ENTER INTO A CONTRACT WITH A
THIRD-PARTY ANALYST TO ESTIMATE THE BASELINE GROWTH RATE FOR THE
PROPOSED TRANSIT INVESTMENT AREA. IN ESTIMATING THE BASELINE
GROWTH RATE, THE THIRD-PARTY ANALYST SHALL CONSIDER THE GROWTH
RATE FOR THE PROPOSED TRANSIT INVESTMENT AREA DURING AT LEAST THE
PREVIOUS TEN CALENDAR YEARS, IF AVAILABLE. THE THIRD-PARTY ANALYST
SHALL DELIVER ITS ESTIMATE TO THE OFFICE OF ECONOMIC DEVELOPMENT
WHO SHALL PROVIDE THE ESTIMATE TO THE OFFICE OF THE STATE PLANNING
AND BUDGETING AND THE COMMISSION FOR REVIEW.
      (b) THE OFFICE OF STATE PLANNING AND BUDGETING SHALL SUBMIT
TO THE COMMISSION A REVIEW OF THE THIRD-PARTY ANALYST'S ESTIMATE
WITHIN THIRTY CALENDAR DAYS OF RECEIPT OF THE ESTIMATE FROM THE
OFFICE OF ECONOMIC DEVELOPMENT.
      (c) THE COMMISSION SHALL TAKE INTO ACCOUNT THE ESTIMATE
PROVIDED BY THE THIRD-PARTY ANALYST AND THE REVIEW PROVIDED BY
THE OFFICE OF STATE PLANNING AND BUDGETING AND SHALL ESTABLISH A
BASELINE GROWTH RATE FOR USE BY THE LOCAL GOVERNMENT AND THE
THIRD-PARTY ANALYST IN THE COMMISSION'S APPLICATION ASSUMPTIONS
AND BY THE DEPARTMENT.
     (d) THE OFFICE OF ECONOMIC DEVELOPMENT MAY CHARGE A LOCAL
GOVERNMENT A SUBMISSION FEE OF UP TO SEVEN THOUSAND FIVE HUNDRED
DOLLARS PER SUBMISSION, AND THE STATE TREASURER SHALL CREDIT THAT
PAGE 13-HOUSE BILL 26-1065
FEE TO THE TRANSIT INVESTMENT ZONES CASH FUND CREATED IN
SUBSECTION (6) OF THIS SECTION, FOR THE COSTS INCURRED IN
CONTRACTING WITH A THIRD-PARTY ANALYST FOR THE ESTIMATION OF THE
BASELINE GROWTH RATE FOR THE PROPOSED TRANSIT INVESTMENT AREA
PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION. THE OFFICE OF
ECONOMIC DEVELOPMENT SHALL ANNUALLY ADJUST FOR INFLATION OR
DEFLATION THE FEE REQUIRED PURSUANT TO THIS SUBSECTION (2)(b) AND
SHALL ROUND THE ADJUSTED AMOUNT UPWARD OR DOWNWARD TO THE
NEAREST HUNDRED DOLLARS.
      (e) THE LOCAL GOVERNMENT AND THE THIRD-PARTY ANALYST
RETAINED PURSUANT TO SUBSECTION (3)(j) OF THIS SECTION SHALL USE THE
BASELINE GROWTH RATE DETERMINED BY THE COMMISSION IN THEIR
ASSUMPTIONS AND ECONOMIC ANALYSES FOR THE PURPOSE OF CALCULATING
THEIR ESTIMATE OF THE MAXIMUM ANNUAL AND TOTAL CUMULATIVE
DOLLAR AMOUNTS OF STATE SALES TAX INCREMENT REVENUE AVAILABLE TO
BE PLEDGED TO THE PROPOSED TRANSIT INVESTMENT PROJECT AS REQUIRED
BY SUBSECTIONS (3)(i) AND (3)(j) OF THIS SECTION.
      (3) A LOCAL GOVERNMENT THAT SUBMITS AN APPLICATION
PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST SUBMIT THE
APPLICATION TO THE OFFICE OF ECONOMIC DEVELOPMENT IN A FORM AND
MANNER TO BE DETERMINED BY THE COMMISSION. AN APPLICATION MUST
INCLUDE AT LEAST:
      (a) MAPS OF THE PROPOSED PROJECT AREA SHOWING BOTH CURRENT
CONDITIONS AND A CONCEPTUAL RENDERING OF THE PROPOSED TRANSIT
INVESTMENT PROJECT IN ITS ANTICIPATED BUILT CONDITION;
      (b) A MAP SHOWING THE PROPOSED BOUNDARIES OF THE PROPOSED
TRANSIT INVESTMENT AREA;
      (c)  A NARRATIVE DESCRIPTION OF THE PROPOSED TRANSIT
INVESTMENT PROJECT, INCLUDING:
      (I) THE LOCATION AND ESTIMATED OVERALL COST;
      (II) ESTIMATED ELIGIBLE COSTS;
      (III)   THE   ANTICIPATED SCOPE AND PHASING OF ELIGIBLE
PAGE 14-HOUSE BILL 26-1065
IMPROVEMENTS;
      (IV) THE INFRASTRUCTURE EXISTING OR NEEDED IN CONNECTION
WITH THE PROPOSED TRANSIT INVESTMENT PROJECT; AND
      (V) AN OPERATIONS, MAINTENANCE, AND CAPITAL RESERVE PLAN
FOR THE PROPOSED TRANSIT INVESTMENT PROJECT;
      (d)  A DISCUSSION OF THE APPLICATION AND PRIORITIZATION
CRITERIA ESTABLISHED IN SUBSECTION (4) OF THIS SECTION AND SECTION
24-46-404 (3)(f)(II) RESPECTIVELY AND HOW THE PROPOSED TRANSIT
INVESTMENT PROJECT WILL MEET THESE CRITERIA. THIS DISCUSSION SHALL
INCLUDE AN ECONOMIC ANALYSIS DETAILING:
      (I) PROJECTED ECONOMIC DEVELOPMENT INCLUDING THE PROJECTED
REAL ESTATE DEVELOPMENT, GROWTH IN COMMERCIAL ACTIVITY, TOURISM,
INCREASES IN THE RESIDENTIAL POPULATION, JOBS, OR ANY OTHER
ECONOMIC IMPROVEMENTS THAT WILL INCREASE STATE SALES TAX REVENUE
THAT WILL BE CATALYZED, INDUCED, SUPPORTED, OR FACILITATED BY THE
PROPOSED PROJECT IN THE PROPOSED TRANSIT AND INVESTMENT AREA;
      (II) IMPACT OF THE PROJECT ON FUTURE STATE SALES TAX REVENUE
IN THE TRANSIT INVESTMENT AREA DURING AND AFTER THE PROPOSED
FINANCING TERM; AND
      (III) ANY OTHER INFORMATION REASONABLY REQUESTED BY THE
COMMISSION;
      (e) (I) A DESCRIPTION OF THE PROPOSED FINANCING ENTITY; AND
      (II) A GENERAL DESCRIPTION OF THE PROPOSED FINANCING ENTITY'S
PLAN FOR FINANCING THE ELIGIBLE COSTS AND PROVIDING THE PROPOSED
ELIGIBLE IMPROVEMENTS;
      (f) IF APPLICABLE, A REQUEST FOR AUTHORIZATION OF A TRANSIT
INVESTMENT AUTHORITY, WHICH REQUEST SHALL INCLUDE A DESCRIPTION
OF THE PROPOSED TRANSIT INVESTMENT AUTHORITY'S:
      (I) GEOGRAPHIC BOUNDARIES;
PAGE 15-HOUSE BILL 26-1065
      (II) REQUESTED POWERS; AND
      (III) ANTICIPATED SOURCES OF REVENUE, IF ANY, IN ADDITION TO
STATE SALES TAX INCREMENT REVENUE;
      (g) IF IT IS ANTICIPATED THAT THE PROPOSED FINANCING ENTITY
WILL ENTER INTO CONTRACTUAL ARRANGEMENTS WITH ONE OR MORE URBAN
RENEWAL AUTHORITIES, METROPOLITAN DISTRICTS, AUTHORITIES FORMED
BY INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE
METROPOLITAN DISTRICTS , LOCAL GOVERNMENTS , REGIONAL
TRANSPORTATION AUTHORITIES, OR PRIVATE PARTIES WITH RESPECT TO THE
METHOD OF FINANCING THE ELIGIBLE COSTS AND PROVIDING THE PROPOSED
ELIGIBLE IMPROVEMENTS, A GENERAL DESCRIPTION OF THE CONTEMPLATED
CONTRACTUAL ARRANGEMENTS;
      (h)   IF  IT IS ANTICIPATED THAT THE PROPOSED 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 THE ANTICIPATED TIMING OF THE PHASES;
       (i) CONCERNING THE FINANCING OF THE PROPOSED ELIGIBLE PUBLIC
IMPROVEMENTS BY THE FINANCING ENTITY, THE FOLLOWING PROPOSED
ITEMS:
      (I) THE FINANCING TERM;
      (II) THE MAXIMUM ANNUAL DOLLAR AMOUNT OF STATE SALES TAX
INCREMENT REVENUE THAT CAN BE ALLOCATED TO THE FINANCING ENTITY;
      (III) THE TOTAL CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX
INCREMENT REVENUE THAT CAN BE ALLOCATED TO THE FINANCING ENTITY;
AND
      (IV) WHETHER THE STATE SALES TAX INCREMENT REVENUE THAT
EXCEEDS THE PROJECTED COSTS OF ELIGIBLE COSTS WILL BE SPENT ON
ADDITIONAL ELIGIBLE COSTS INCURRED IN CONNECTION WITH THE TRANSIT
INVESTMENT PROJECT.
     (j) UPON RECEIPT OF AN APPLICATION, THE OFFICE OF ECONOMIC
DEVELOPMENT SHALL COMMISSION A REPORT BY A THIRD-PARTY ANALYST
PAGE 16-HOUSE BILL 26-1065
WHO IS AN EXPERT IN THE FIELD OF ECONOMIC OR PUBLIC FINANCIAL
ANALYSIS CALCULATING THE ANNUAL AND TOTAL CUMULATIVE DOLLAR
AMOUNTS OF STATE SALES TAX INCREMENT REVENUE AVAILABLE TO BE
PLEDGED TO THE PROPOSED TRANSIT INVESTMENT PROJECT TO BE SET BY THE
COMMISSION PURSUANT TO SECTION 24-46-404 (3). THE REVIEWING
THIRD-PARTY ANALYST MUST BE CHOSEN THROUGH A REQUEST FOR
PROPOSALS ISSUED BY THE OFFICE OF ECONOMIC DEVELOPMENT TO ENSURE
AN INDEPENDENT AND THOROUGH ANALYSIS, AND THE THIRD-PARTY
ANALYST SHALL REPORT TO THAT OFFICE. THE OFFICE OF ECONOMIC
DEVELOPMENT SHALL REQUIRE A LOCAL GOVERNMENT THAT SUBMITS AN
APPLICATION PURSUANT TO SUBSECTION (1) OF THIS SECTION TO PAY THE
COSTS FOR THE THIRD-PARTY ANALYST CHOSEN BY THE OFFICE OF ECONOMIC
DEVELOPMENT PURSUANT TO THIS SUBSECTION (3)(j) TO COMMISSION THE
REPORT; EXCEPT THAT, IF THE OFFICE OF ECONOMIC DEVELOPMENT
DETERMINES THAT THE PAYMENT OF THESE COSTS BY A LOCAL GOVERNMENT
WOULD CONSTITUTE AN EXTREME NEGATIVE FINANCIAL HARDSHIP FOR THE
LOCAL GOVERNMENT, THE OFFICE OF ECONOMIC DEVELOPMENT MAY PAY
THESE COSTS FROM THE TRANSIT INVESTMENT ZONES CASH FUND CREATED
IN SUBSECTION (6) OF THIS SECTION OR, IF THERE IS INSUFFICIENT MONEY IN
THE TRANSIT INVESTMENT ZONES CASH FUND, THE OFFICE OF ECONOMIC
DEVELOPMENT MAY PAY THESE COSTS FROM THE GENERAL FUND TO THE
EXTENT THE GENERAL ASSEMBLY HAS SPECIFICALLY APPROPRIATED
DEDICATED FUNDING WHICH IS AVAILABLE FOR THIS PURPOSE; EXCEPT THAT
THE OFFICE SHALL NOT PAY THESE COSTS FOR MORE THAN TWO APPLICANTS
IN AN APPLICATION CYCLE. AS PART OF CREATING THE REPORT, THE
THIRD-PARTY ANALYST MUST:
      (I) ESTIMATE THE TOTAL STATE SALES TAX INCREMENT REVENUE
DURING THE FINANCING TERM IN THE PROPOSED TRANSIT INVESTMENT AREA
THAT THE FINANCING ENTITY IS ELIGIBLE TO RECEIVE;
       (II) ESTIMATE THE MAXIMUM ANNUAL DOLLAR AMOUNT OF STATE
SALES TAX INCREMENT REVENUE IN THE TRANSIT INVESTMENT AREA THAT
THE FINANCING ENTITY IS ELIGIBLE TO RECEIVE; AND
        (III) ASSESS THE APPLICATION'S SATISFACTION OF THE CRITERIA
DESCRIBED IN SUBSECTION (4) OF THIS SECTION AND SECTION 24-46-404
(3)(f)(II);
      (IV) TAKE INTO ACCOUNT PROJECTED ECONOMIC DEVELOPMENT
PAGE 17-HOUSE BILL 26-1065
INCLUDING THE PROJECTED REAL ESTATE DEVELOPMENT, GROWTH IN
COMMERCIAL ACTIVITY, TOURISM, INCREASE IN THE RESIDENTIAL
POPULATION, JOBS OR ANY OTHER ECONOMIC IMPROVEMENTS THAT WILL
INCREASE STATE SALES TAX REVENUE THAT WILL BE CATALYZED, INDUCED,
SUPPORTED, OR FACILITATED BY THE PROPOSED PROJECT IN THE PROPOSED
TRANSIT AND INVESTMENT AREA INCLUDED IN THE APPLICATION; AND
      (V) PROVIDE OTHER RELEVANT INFORMATION REQUIRED BY THE
OFFICE OF ECONOMIC DEVELOPMENT OR THE COMMISSION.
      (k)  A LOCAL GOVERNMENT THAT SUBMITS AN APPLICATION
PURSUANT TO SUBSECTION (1) OF THIS SECTION MUST SHARE THE DATA AND
ASSUMPTIONS IT USED IN ITS APPLICATION WITH THE THIRD-PARTY ANALYST,
AND THE ANALYST SHALL RELY ON THE DATA AND REASONING AS IT DEEMS
APPROPRIATE IN THE EXERCISE OF ITS INDEPENDENT JUDGMENT. AN
APPLICANT THAT IS DISSATISFIED WITH THE REPORT PRODUCED BY THE
THIRD-PARTY ANALYST MAY REVISE ITS APPLICATION AND REQUEST THAT
THE THIRD-PARTY ANALYST REVISE THE REPORT.
      (4) AN APPLICATION MUST DEMONSTRATE THAT IT SATISFIES EACH
OF THE FOLLOWING CRITERIA:
      (a) THE PROPOSED TRANSIT INVESTMENT PROJECT IS REASONABLY
ANTICIPATED TO RESULT IN A SUBSTANTIAL INCREASE IN TRANSIT
UTILIZATION;
      (b) THE BOUNDARIES OF THE PROPOSED TRANSIT INVESTMENT AREA
ARE ONLY AS LARGE AS NECESSARY TO ACCOMPLISH THE PROPOSED TRANSIT
INVESTMENT PROJECT GOALS;
      (c) THE PROPOSED TRANSIT INVESTMENT PROJECT OR SUBSTANTIAL
PORTIONS OF THE PROPOSED PROJECT HAVE BEEN IDENTIFIED AS PART OF A
LOCAL PLANNING PROCESS;
        (d) THE COSTS IDENTIFIED PURSUANT TO SECTION 24-46-403
(3)(c)(II) ARE ELIGIBLE COSTS;
      (e) THE LOCAL GOVERNMENT THAT SUBMITTED THE APPLICATION
FOR THE PROPOSED TRANSIT INVESTMENT PROJECT HAS PROVIDED RELIABLE
ECONOMIC DATA DEMONSTRATING THAT, IN THE ABSENCE OF STATE SALES
PAGE 18-HOUSE BILL 26-1065
TAX INCREMENT REVENUE, THE PROPOSED PROJECT IS NOT REASONABLY
ANTICIPATED TO BE DEVELOPED WITHIN THE FORESEEABLE FUTURE; AND
      (f) THE PROPOSED TRANSIT INVESTMENT PROJECT WILL BE CARRIED
OUT IN A MANNER CONSISTENT WITH THE HIRING, APPRENTICESHIP, AND
WORKFORCE STANDARDS APPLICABLE TO INFRASTRUCTURE PROJECTS THAT
ARE FINANCED BY THE BUILDING URGENT INFRASTRUCTURE AND
LEVERAGING DOLLARS AUTHORITY AS REQUIRED BY SECTION 24-117-105
(6), TO THE EXTENT THESE STANDARDS ARE NOT INCONSISTENT WITH THE
REQUIREMENTS OF THIS PART 4.
      (5) THE OFFICE OF ECONOMIC DEVELOPMENT SHALL PROVIDE THE
COMMISSION WITH EACH APPLICATION RECEIVED AFTER THE DIRECTOR'S
REVIEW PURSUANT TO SECTION 24-46-404.
      (6) (a) THE TRANSIT INVESTMENT ZONES CASH FUND IS CREATED IN
THE STATE TREASURY. THE FUND CONSISTS OF SUBMISSION FEES COLLECTED
BY THE OFFICE OF ECONOMIC DEVELOPMENT AND CREDITED TO THE FUND
PURSUANT TO SUBSECTION (2)(b) OF THIS SECTION, AND ANY OTHER MONEY
THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE
FUND.
      (b) IN ACCORDANCE WITH SECTION 24-36-114 (1), THE STATE
TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE
DEPOSIT AND INVESTMENT OF MONEY IN THE TRANSIT INVESTMENT ZONES
CASH FUND TO THE GENERAL FUND.
      (c)   SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL
ASSEMBLY, THE OFFICE OF ECONOMIC DEVELOPMENT MAY EXPEND MONEY
FROM THE FUND TO PAY OR PARTIALLY PAY:
      (I) THE COST INCURRED IN CONTRACTING WITH A THIRD-PARTY
ANALYST TO ESTIMATE THE BASELINE GROWTH RATE FOR THE PROPOSED
TRANSIT INVESTMENT AREA PURSUANT TO SUBSECTION (2)(a) OF THIS
SECTION; AND
      (II) THE COSTS FOR THIRD-PARTY ANALYSTS AS DESCRIBED IN
SUBSECTION (3)(j) OF THIS SECTION.
      24-46-404. Transit investment project approval - director -
PAGE 19-HOUSE BILL 26-1065
commission - review.
      (1) UPON RECEIPT OF A LOCAL GOVERNMENT'S APPLICATION FOR THE
APPROVAL OF A TRANSIT INVESTMENT PROJECT, THE DIRECTOR OR THE
DIRECTOR'S DESIGNEE SHALL REVIEW THE APPLICATION AND MAKE AN
INITIAL DETERMINATION AS TO WHETHER THE APPLICATION HAS MET THE
CRITERIA FOR A TRANSIT INVESTMENT PROJECT SPECIFIED IN SECTION
24-46-403 (4).
      (2) AFTER REVIEWING AN APPLICATION FOR APPROVAL OF A TRANSIT
INVESTMENT PROJECT FOR COMPLETENESS, THE DIRECTOR SHALL FORWARD
THE APPLICATION:
      (a)  TO THE THIRD-PARTY ANALYST WHO WILL REVIEW THE
APPLICATION PURSUANT TO SECTION 24-46-403 (3)(j);
     (b) AT LEAST THIRTY DAYS PRIOR TO A PUBLIC HEARING HELD
PURSUANT TO SUBSECTION (3) OF THIS SECTION, TO ANY LOCAL
GOVERNMENT THAT IS ADJACENT TO THE LOCATION OF THE PROPOSED
TRANSIT INVESTMENT AREA TO NOTIFY THE ADJACENT JURISDICTIONS OF THE
PROPOSAL; AND
      (c) TO THE COMMISSION WITH A RECOMMENDATION THAT THE
COMMISSION APPROVE, APPROVE WITH CONDITIONS, OR DENY THE
APPLICATION.
      (3) (a) UPON RECEIVING AN APPLICATION FOR THE APPROVAL OF A
TRANSIT INVESTMENT PROJECT, THE COMMISSION SHALL HOLD A PUBLIC
HEARING, SUBJECT TO THE OPEN MEETINGS LAW UNDER PART 4 OF ARTICLE
6 OF THIS TITLE 24, TO REVIEW AND CONSIDER THE APPLICATION. THE
COMMISSION MAY HOLD THE HEARING VIRTUALLY.
      (b) AFTER HOLDING A HEARING PURSUANT TO SUBSECTION (3)(a) OF
THIS SECTION, WHILE GIVING CONSIDERATION TO THE DIRECTOR'S
RECOMMENDATIONS AND THE REPORT COMPLETED BY A THIRD-PARTY
ANALYST PURSUANT TO SECTION 24-46-403 (3)(j), THE COMMISSION SHALL
TIMELY APPROVE, APPROVE WITH CONDITIONS, OR DENY AN APPLICATION.
      (c) THE COMMISSION SHALL APPROVE A LOCAL GOVERNMENT'S
APPLICATION FOR THE APPROVAL OF A TRANSIT INVESTMENT PROJECT IF A
PAGE 20-HOUSE BILL 26-1065
MAJORITY OF THE COMMISSIONERS PARTICIPATING IN THE REVIEW OF THE
APPLICATION FINDS THAT THE APPLICATION DEMONSTRATES THAT EACH OF
THE CRITERIA IDENTIFIED IN SECTION 24-46-403 (4) IS MATERIALLY MET AND
HAS BEEN PRIORITIZED IN ACCORDANCE WITH SECTION 24-46-403 (3)(f)(II).
       (d) (I) IF THE COMMISSION APPROVES AN APPLICATION FOR A
TRANSIT INVESTMENT PROJECT, IT SHALL ADOPT A RESOLUTION THAT
SPECIFIES:
          (A)
          THE LOCAL GOVERNMENT THAT HAS BEEN APPROVED TO
UNDERTAKE A TRANSIT INVESTMENT PROJECT;
      (B)   THE BOUNDARY OF THE TRANSIT INVESTMENT AREA
ESTABLISHED IN CONNECTION WITH THE TRANSIT INVESTMENT PROJECT;
      (C) WHETHER THE COMMISSION HAS AUTHORIZED THE CREATION OF
A TRANSIT INVESTMENT AUTHORITY;
          (D) THE BASELINE GROWTH RATE, PURSUANT TO SECTION 24-46-403
(2)(c);
          (E) THE APPROVED FINANCING TERM;
          (F)   THE MAXIMUM DOLLAR AMOUNT OF STATE SALES TAX
INCREMENT REVENUE THAT CAN BE ANNUALLY DEDICATED TO THE TRANSIT
INVESTMENT PROJECT, AS DETERMINED PURSUANT TO SUBSECTION (3)(j)(II)
OF THIS SECTION; AND
          (G) THE TOTAL CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX
INCREMENT REVENUE THAT CAN BE DEDICATED TO THE TRANSIT
INVESTMENT PROJECT, AS DETERMINED PURSUANT TO SUBSECTION (3)(j)(I)
OF THIS SECTION.
          (II) IN DETERMINING THE MAXIMUM ANNUAL DOLLAR AMOUNT OF
STATE SALES TAX INCREMENT REVENUE THAT CAN BE DEDICATED TO THE
TRANSIT INVESTMENT PROJECT PURSUANT TO SUBSECTION (3)(b)(I)(E) OF
THIS SECTION, THE COMMISSION SHALL CONSIDER THE AMOUNT IDENTIFIED
BY THE APPLICANT PURSUANT TO SECTION 24-46-403 (3)(i)(II) AND SHALL
ATTEMPT TO ENSURE THAT THE MAXIMUM ANNUAL DOLLAR AMOUNT DOES
NOT PREVENT DEDICATING THE TOTAL CUMULATIVE DOLLAR AMOUNT
PAGE 21-HOUSE BILL 26-1065
ESTABLISHED BY THE COMMISSION PURSUANT TO THIS SUBSECTION (3)(d) TO
BE PAID TO THE TRANSIT INVESTMENT PROJECT. AFTER ADOPTING THE
RESOLUTION REQUIRED PURSUANT TO THIS SUBSECTION (3)(d), THE
COMMISSION MAY ADOPT A SUBSEQUENT RESOLUTION THAT INCREASES THE
MAXIMUM ANNUAL DOLLAR AMOUNT THAT CAN BE DEDICATED TO THE
TRANSIT INVESTMENT PROJECT, BUT THE COMMISSION SHALL NOT INCREASE
THE MAXIMUM ANNUAL DOLLAR AMOUNT BY AN AMOUNT THAT WOULD
RESULT IN DEDICATING A TOTAL DOLLAR AMOUNT TO THE TRANSIT
INVESTMENT PROJECT THAT EXCEEDS THE TOTAL CUMULATIVE DOLLAR
AMOUNT ESTABLISHED BY THE COMMISSION PURSUANT TO THIS SUBSECTION
(3)(d).
       (III) (A) IN DETERMINING THE TOTAL CUMULATIVE DOLLAR AMOUNT
OF STATE SALES TAX INCREMENT REVENUE THAT CAN BE DEDICATED TO THE
TRANSIT INVESTMENT PROJECT PURSUANT TO SUBSECTION (3)(d)(I)(F) OF
THIS SECTION, THE COMMISSION SHALL AWARD AN AMOUNT EQUAL TO THE
TOTAL CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT
REVENUE THAT THE THIRD-PARTY ANALYST DETERMINES CAN BE DEDICATED
TO THE TRANSIT INVESTMENT PROJECT AS REPORTED PURSUANT TO SECTION
24-46-403 (3)(j).
          (B) NOTWITHSTANDING SUBSECTION (3)(d)(III)(A) OF THIS SECTION,
IF THE ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO SECTION
24-46-403 (3)(c)(II) ARE LESS THAN THE TOTAL CUMULATIVE DOLLAR
AMOUNT OF STATE SALES TAX INCREMENT REVENUE THAT THE THIRD-PARTY
ANALYST DETERMINES CAN BE DEDICATED TO THE TRANSIT INVESTMENT
PROJECT AS REPORTED PURSUANT TO SECTION 24-46-403 (3)(j) AND THE
APPLICATION DID NOT AFFIRM THAT STATE SALES TAX INCREMENT REVENUE
THAT EXCEEDS THE ESTIMATED ELIGIBLE COSTS WILL BE SPENT ON
ADDITIONAL ELIGIBLE COSTS INCURRED IN CONNECTION WITH THE TRANSIT
INVESTMENT PROJECT, IN DETERMINING THE TOTAL CUMULATIVE DOLLAR
AMOUNT OF STATE SALES TAX INCREMENT REVENUE THAT CAN BE
DEDICATED TO THE TRANSIT INVESTMENT PROJECT PURSUANT TO
SUBSECTION (3)(d)(I)(F) OF THIS SECTION, THE COMMISSION SHALL AWARD
A TOTAL CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT
REVENUE EQUAL TO THE ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT
TO SECTION 24-46-403 (3)(c)(II).
          (C) NOTWITHSTANDING SUBSECTION (3)(d)(III)(A) OF THIS SECTION,
IF THE ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO SECTION
PAGE 22-HOUSE BILL 26-1065
24-46-403 (3)(c)(II) ARE LESS THAN THE TOTAL CUMULATIVE DOLLAR
AMOUNT OF STATE SALES TAX INCREMENT REVENUE THAT THE THIRD-PARTY
ANALYST DETERMINES CAN BE DEDICATED TO THE TRANSIT INVESTMENT
PROJECT AS REPORTED PURSUANT TO SECTION 24-46-403 (3)(j) AND THE
APPLICATION AFFIRMED THAT STATE SALES TAX INCREMENT REVENUE THAT
EXCEEDS THE ESTIMATED ELIGIBLE COSTS WILL BE SPENT ON ADDITIONAL
ELIGIBLE COSTS INCURRED IN CONNECTION WITH THE TRANSIT INVESTMENT
PROJECT, IN DETERMINING THE TOTAL CUMULATIVE DOLLAR AMOUNT OF
STATE SALES TAX INCREMENT REVENUE THAT CAN BE DEDICATED TO THE
TRANSIT INVESTMENT PROJECT PURSUANT TO SUBSECTION (3)(d)(I)(F) OF
THIS SECTION, THE COMMISSION SHALL AWARD A TOTAL CUMULATIVE
DOLLAR AMOUNT OF STATE SALES TAX INCREMENT REVENUE EQUAL TO THE
ESTIMATED ELIGIBLE COSTS IDENTIFIED PURSUANT TO SECTION 24-46-403
(3)(c)(II) AND ALLOW FOR THE EXPENDITURE OF ADDITIONAL STATE SALES
TAX INCREMENT REVENUE FOR ADDITIONAL ELIGIBLE COSTS INCURRED IN
CONNECTION WITH THE TRANSIT INVESTMENT PROJECT BEYOND THOSE
ESTIMATED IN THE APPLICATION SUCH THAT THE APPLICANT CAN SPEND IN
TOTAL, ON ADDITIONAL AND ESTIMATED ELIGIBLE COSTS, UP TO THE TOTAL
CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT REVENUE
DETERMINED BY THE THIRD-PARTY ANALYST.
      (e) THE COMMISSION SHALL NOT APPROVE ANY PROPOSED TRANSIT
INVESTMENT PROJECT THAT WOULD LIKELY CREATE A STATE SALES TAX
INCREMENT REVENUE DEDICATION OF MORE THAN SEVENTY-FIVE MILLION
DOLLARS TO ALL TRANSIT INVESTMENT PROJECTS IN ANY GIVEN FISCAL
YEAR.
      (f) (I) THE COMMISSION SHALL NOT APPROVE MORE THAN THREE
TRANSIT INVESTMENT PROJECTS PURSUANT TO THIS SUBSECTION (3) IN ANY
CALENDAR YEAR AND SHALL NOT APPROVE MORE THAN SIX TRANSIT
INVESTMENT PROJECTS PURSUANT TO THIS SUBSECTION (3) IN TOTAL.
      (II) IF THE COMMISSION DETERMINES MORE THAN THREE TRANSIT
INVESTMENT PROJECT APPLICATIONS IN A GIVEN CALENDAR YEAR MEET
EACH OF THE CRITERIA ESTABLISHED IN SECTION 24-46-403 (4), THE
COMMISSION SHALL PRIORITIZE THE THREE PROJECTS THAT THE COMMISSION
WILL APPROVE USING THE FOLLOWING CRITERIA:
      (A) INCLUSION IN OR FIT WITH LOCAL, REGIONAL, OR STATE
TRANSPORTATION PLANS;
PAGE 23-HOUSE BILL 26-1065
      (B) STATEWIDE GEOGRAPHIC EQUITY;
      (C) SCALE OF IMPACT; AND
      (D) THE DEDICATION OF MATCHING LOCAL, SPECIAL DISTRICT, OR
OTHER NONSTATE PROVIDED FUNDING FOR THE PROJECT.
      (III) IF THE COMMISSION DOES NOT APPROVE A PROPOSED TRANSIT
INVESTMENT PROJECT BECAUSE DOING SO WOULD CAUSE THE COMMISSION
TO APPROVE MORE THAN THREE PROPOSED TRANSIT INVESTMENT PROJECTS
IN THE SAME CALENDAR YEAR, THE COMMISSION MAY CONSIDER SUCH A
PROJECT FOR APPROVAL, APPROVAL WITH CONDITIONS, OR DENIAL IN THE
NEXT CALENDAR YEAR, SUBJECT TO THE PRIORITIZATION OF ALL
APPLICATIONS RECEIVED IN THE NEXT YEAR AND ALL APPLICATIONS BEING
RECONSIDERED FROM THE PRIOR YEAR BEING CONSIDERED IN A SINGLE POOL.
      (4) (a) AS PART OF THE APPROVAL OF A PROPOSED TRANSIT
INVESTMENT PROJECT, THE COMMISSION SHALL AUTHORIZE:
      (I) THE DEPARTMENT TO COLLECT THE STATE SALES TAX INCREMENT
REVENUE IN CONNECTION WITH THE PROPOSED TRANSIT INVESTMENT
PROJECT ON BEHALF OF THE RELEVANT FINANCING ENTITY FOR THE
DURATION OF THE FINANCING TERM UP TO THE MAXIMUM ANNUAL AND
TOTAL CUMULATIVE DOLLAR AMOUNTS OF STATE SALES TAX INCREMENT
REVENUE THAT CAN BE DEDICATED TO THE TRANSIT INVESTMENT PROJECT;
      (II) THE DEPARTMENT TO ADJUST THE BASE YEAR REVENUE BY THE
AMOUNT OF THE BASELINE GROWTH RATE SPECIFIED IN THE RESOLUTION
APPROVING A TRANSIT INVESTMENT PROJECT;
      (III) A FINANCING ENTITY TO RECEIVE AND USE THE STATE SALES
TAX INCREMENT REVENUE UP TO THE MAXIMUM ANNUAL AND TOTAL
CUMULATIVE DOLLAR AMOUNTS THAT CAN BE DEDICATED TO THE TRANSIT
INVESTMENT PROJECT FOR THE DURATION OF THE FINANCING TERM; AND
      (IV) THE USE OF THE STATE SALES TAX INCREMENT REVENUE BY THE
FINANCING ENTITY PURSUANT TO THIS PART 4 AND ANY CONDITIONS OF
APPROVAL IMPOSED BY THE COMMISSION AND INCORPORATED IN WRITING
INTO THE COMMISSION'S RESOLUTION APPROVING THE PROPOSED TRANSIT
INVESTMENT PROJECT.
PAGE 24-HOUSE BILL 26-1065
      (b)   IN IMPLEMENTING THE AUTHORIZATION DESCRIBED IN
SUBSECTION (4)(a)(II) OF THIS SECTION, THE DEPARTMENT SHALL REMIT
STATE SALES TAX INCREMENT REVENUE TO THE FINANCING ENTITY ON A
MONTHLY BASIS PROMPTLY AFTER COLLECTING THAT REVENUE.
      (5) (a) FOR EACH YEAR OF THE FINANCING TERM, THE AMOUNT OF
STATE SALES TAX INCREMENT REVENUE DEDICATED TO A TRANSIT
INVESTMENT PROJECT MUST NOT EXCEED THE MAXIMUM ANNUAL DOLLAR
AMOUNT SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF
THIS SECTION. THE TOTAL AMOUNT OF STATE SALES TAX INCREMENT
REVENUE DEDICATED TO A TRANSIT INVESTMENT PROJECT FOR THE ENTIRE
DURATION OF THE PROJECT SHALL NOT EXCEED THE TOTAL CUMULATIVE
DOLLAR AMOUNT SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION
(3) OF THIS SECTION. THE DEPARTMENT SHALL TRACK THE MAXIMUM
ANNUAL AND TOTAL CUMULATIVE DOLLAR AMOUNTS OF STATE SALES TAX
INCREMENT REVENUE REMITTED TO THE FINANCING ENTITY IN CONNECTION
WITH A TRANSIT INVESTMENT PROJECT AND SHALL NOTIFY THE COMMISSION
WHEN CUMULATIVE PAYMENTS EQUAL NINETY PERCENT OF THE LIMITS SET
BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS SECTION FOR THE
COMMISSION'S CONCURRENCE REGARDING THE DOLLAR LIMITS.
      (b) (I) AFTER THE DEPARTMENT HAS REMITTED THE MAXIMUM
ANNUAL DOLLAR AMOUNT OF STATE SALES TAX INCREMENT REVENUE
SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS
SECTION TO THE FINANCING ENTITY FOR A CALENDAR YEAR, THE
DEPARTMENT SHALL NOT REMIT ANY ADDITIONAL STATE SALES TAX
INCREMENT REVENUE FROM THE STATE TO THE FINANCING ENTITY UNTIL THE
FOLLOWING YEAR.
      (II)   AFTER  THE DEPARTMENT HAS REMITTED THE TOTAL
CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT REVENUE
SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS
SECTION TO THE FINANCING ENTITY, THE DEPARTMENT SHALL NOT REMIT
ANY ADDITIONAL STATE SALES TAX INCREMENT REVENUE FROM THE STATE
TO THE FINANCING ENTITY, EVEN IF THE APPROVED FINANCING TERM IS NOT
COMPLETED.
     (III) AFTER THE FINANCING TERM SPECIFIED BY THE COMMISSION
PURSUANT TO SUBSECTION (3) OF THIS SECTION IS COMPLETED, THE
DEPARTMENT SHALL NOT REMIT ANY ADDITIONAL STATE SALES TAX
PAGE 25-HOUSE BILL 26-1065
INCREMENT REVENUE FROM THE STATE TO THE FINANCING ENTITY, EVEN IF
THE TOTAL CUMULATIVE DOLLAR AMOUNT OF STATE SALES TAX INCREMENT
REVENUE SPECIFIED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF
THIS SECTION HAS NOT BEEN REACHED.
      (IV) THE DEPARTMENT SHALL NOTIFY THE COMMISSION IF IT IS NO
LONGER REMITTING STATE SALES TAX INCREMENT REVENUE TO THE
FINANCING ENTITY PURSUANT TO THIS SUBSECTION (5)(b).
      (6) FOLLOWING THE COMMISSION'S APPROVAL OF AN APPLICATION,
AND THE ESTABLISHMENT OF THE TERMS OF AWARD INCLUDING THE ITEMS
DESCRIBED IN SUBSECTION (3)(d)(I) OF THIS SECTION, THE COMMISSION
SHALL PROMPTLY TRANSMIT WRITTEN NOTICE AND A COPY OF THE APPROVAL
TO THE EXECUTIVE DIRECTOR OF THE DEPARTMENT. THE COMMISSION SHALL
INCLUDE ANY INFORMATION DEEMED NECESSARY BY THE DEPARTMENT TO
FULFILL ITS OBLIGATIONS PURSUANT TO THIS PART 4 IN THE WRITTEN NOTICE.
     24-46-405. Transit investment authority - board - creation -
powers and duties.
      (1) THE COMMISSION SHALL NOT DENY A REQUEST TO AUTHORIZE
THE CREATION OF A TRANSIT INVESTMENT AUTHORITY IF THE COMMISSION
OTHERWISE APPROVES AN APPLICATION FOR A TRANSIT INVESTMENT PROJECT
THAT INCLUDES A REQUEST FOR THE FORMATION OF A TRANSIT INVESTMENT
AUTHORITY.
      (2) A TRANSIT INVESTMENT AUTHORITY IS GOVERNED BY A BOARD
CONSISTING OF THE FOLLOWING MEMBERS:
      (a) IF THE APPLICANT IS A SINGLE LOCAL GOVERNMENT:
      (I) TWO MEMBERS APPOINTED BY THE COMMISSION WHO ARE
OWNERS OF COMMERCIAL PROPERTY WITHIN THE TRANSIT INVESTMENT
AREA;
      (II) TWO MEMBERS APPOINTED BY THE LOCAL GOVERNMENT WHO
ARE ELECTED OFFICIALS OF THE LOCAL GOVERNMENT; AND
      (III) ONE MEMBER APPOINTED BY THE TRANSIT AGENCY OR ENTITY
THAT OPERATES THE TRANSPORTATION FACILITY THAT IS THE SUBJECT OF
PAGE 26-HOUSE BILL 26-1065
THE PROPOSED TRANSIT INVESTMENT PROJECT.
      (b) IF THE APPLICANT IS TWO LOCAL GOVERNMENTS:
      (I)   TWO MEMBERS APPOINTED BY THE COMMISSION WHO ARE
OWNERS OF COMMERCIAL PROPERTY WITHIN THE TRANSIT INVESTMENT
AREA;
      (II) ONE MEMBER APPOINTED BY THE TRANSIT AGENCY OR ENTITY
THAT OPERATES THE TRANSPORTATION FACILITY THAT IS THE SUBJECT OF
THE PROPOSED TRANSIT INVESTMENT PROJECT; AND
     (III) ONE MEMBER APPOINTED BY EACH OF THE TWO LOCAL
GOVERNMENTS WHO IS AN ELECTED OFFICIAL OF ONE OF THE LOCAL
GOVERNMENTS.
      (c) IF THE APPLICANT IS MORE THAN TWO LOCAL GOVERNMENTS:
      (I) ONE MEMBER APPOINTED BY EACH LOCAL GOVERNMENT IN THE
TRANSIT INVESTMENT AUTHORITY WHO IS AN ELECTED OFFICIAL OF ONE OF
THE LOCAL GOVERNMENTS; AND
      (II) THREE OR MORE MEMBERS, AS DETERMINED BY THE COMMISSION
SO THAT THE TOTAL NUMBER OF MEMBERS ON A GOVERNING BOARD IS AN
ODD NUMBER, REPRESENTING COMMERCIAL PROPERTY OWNERS WITHIN THE
TRANSIT INVESTMENT AREA, APPOINTED BY THE COMMISSION; AND
      (d) ONE MEMBER APPOINTED BY THE TRANSIT AGENCY OR ENTITY
THAT OPERATES THE TRANSPORTATION FACILITY THAT IS THE SUBJECT OF
THE PROPOSED TRANSIT INVESTMENT PROJECT.
      (3) UNLESS LIMITED BY THE COMMISSION'S CONDITIONS OF
APPROVAL, EACH TRANSIT INVESTMENT AUTHORITY HAS ALL THE POWERS
NECESSARY OR CONVENIENT TO CARRY OUT THIS PART 4, INCLUDING THE
FOLLOWING POWERS:
      (a) PERPETUAL EXISTENCE AND SUCCESSION;
      (b) TO ADOPT, HAVE, AND USE A CORPORATE SEAL;
PAGE 27-HOUSE BILL 26-1065
     (c) TO SUE AND BE SUED AND TO BE A PARTY TO SUITS, ACTIONS, AND
PROCEEDINGS;
      (d) TO UNDERTAKE TRANSIT INVESTMENT PROJECTS;
      (e) TO ENTER INTO CONTRACTS AND AGREEMENTS AFFECTING THE
AFFAIRS OF THE TRANSIT INVESTMENT AUTHORITY AS NECESSARY TO
COMPLETE A TRANSIT INVESTMENT PROJECT;
      (f) TO RECEIVE, INVEST, PLEDGE, SPEND, AND OTHERWISE USE AND
EXPEND STATE SALES TAX INCREMENT REVENUE IN ACCORDANCE WITH AN
APPROVED TRANSIT INVESTMENT PROJECT;
     (g) TO ASSIGN AND PLEDGE TO ANY COUNTY REVITALIZATION
AUTHORITY, METROPOLITAN DISTRICT , AUTHORITY FORMED BY
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN
DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR URBAN RENEWAL
AUTHORITY HAVING ALL OR ANY PORTION OF THE TRANSIT INVESTMENT
AREA WITHIN ITS BOUNDARIES OR SERVICE AREA THE TRANSIT INVESTMENT
AUTHORITY'S RIGHT TO RECEIVE AND USE STATE SALES TAX INCREMENT
REVENUE TO SUPPORT BONDS OR OTHER FINANCING INSTRUMENTS ISSUED OR
ENTERED INTO BY THE COUNTY REVITALIZATION AUTHORITY ,
METROPOLITAN DISTRICT, AUTHORITY FORMED BY INTERGOVERNMENTAL
AGREEMENT AMONG TWO OR MORE METROPOLITAN DISTRICTS, REGIONAL
TRANSPORTATION AUTHORITY, OR URBAN RENEWAL AUTHORITY FOR
ELIGIBLE COSTS OR TO ACQUIRE ELIGIBLE IMPROVEMENTS, INCLUDING LOANS
OR FUNDING AND REIMBURSEMENT AGREEMENTS WITH DEVELOPERS
INVOLVED IN THE TRANSIT INVESTMENT PROJECT OR OTHER THIRD PARTIES;
      (h) TO BORROW MONEY AND INCUR INDEBTEDNESS AND EVIDENCE
THE SAME BY CERTIFICATES AND NOTE AND DEBENTURES;
      (i) TO ISSUE BONDS IN ACCORDANCE WITH SECTION 24-46-409;
      (j) TO INVEST ANY OF THE AUTHORITY'S FUNDS THAT ARE NOT
REQUIRED FOR IMMEDIATE DISBURSEMENT;
      (k) TO DEPOSIT ANY FUNDS NOT REQUIRED FOR IMMEDIATE
DISBURSEMENT IN ANY DEPOSITORY AUTHORIZED IN SECTION 24-75-603
AND, FOR THE PURPOSE OF MAKING THE DEPOSITS, TO APPOINT BY WRITTEN
PAGE 28-HOUSE BILL 26-1065
RESOLUTION ONE OR MORE PERSONS TO ACT AS CUSTODIANS OF THE
AUTHORITY'S FUND, WHICH PERSON SHALL GIVE SURETY BONDS IN THE
AMOUNTS AND FORM AND FOR THE PURPOSES REQUIRED BY THE AUTHORITY;
      (l) TO MAKE APPROPRIATIONS AND EXPENDITURES OF ITS FUNDS AND
TO SET UP, ESTABLISH, AND MAINTAIN GENERAL, SEPARATE, OR SPECIAL
FUNDS AND BANK ACCOUNTS OR OTHER ACCOUNTS AS IT DEEMS NECESSARY
OR CONVENIENT TO CARRY OUT THIS PART 4;
       (m) TO ACCEPT ON ITS OWN BEHALF REAL OR PERSONAL PROPERTY
FOR ITS OWN USE;
      (n) TO ACCEPT GIFTS AND CONVEYANCES MADE TO THE AUTHORITY
UPON THE TERMS OR CONDITIONS APPROVED BY THE AUTHORITY'S BOARD;
      (o) 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;
      (p) TO HAVE AND EXERCISE ALL RIGHTS AND POWERS NECESSARY OR
INCIDENTAL TO OR IMPLIED FROM THE SPECIFIC POWERS GRANTED TO THE
TRANSIT INVESTMENT AUTHORITY BY THIS PART 4. THE SPECIFIC POWERS
SHALL NOT BE CONSIDERED A LIMITATION UPON ANY POWER NECESSARY OR
APPROPRIATE TO CARRY OUT THIS PART 4.
       (q) 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 24.
      (r) TO ENSURE THAT EVERY CONTRACT, CONSTRUCTION ACTIVITY,
PROCUREMENT, AND PROJECT DELIVERY FOR AN APPROVED TRANSIT
INVESTMENT PROJECT COMPLIES WITH THE HIRING, APPRENTICESHIP, AND
WORKFORCE STANDARDS APPLICABLE TO INFRASTRUCTURE PROJECTS THAT
ARE FINANCED BY THE BUILDING URGENT INFRASTRUCTURE AND
LEVERAGING DOLLARS AUTHORITY AS REQUIRED BY SECTION 24-117-105
(6), TO THE EXTENT APPLICABLE, AND INCORPORATE THESE STANDARDS INTO
SOLICITATIONS AND AGREEMENTS AS APPLICABLE.
      (4) A TRANSIT INVESTMENT AUTHORITY DOES NOT HAVE THE POWER
PAGE 29-HOUSE BILL 26-1065
OF EMINENT DOMAIN AND DOES 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 TRANSIT INVESTMENT
AUTHORITY IS SUBJECT TO THE "COLORADO OPEN RECORDS ACT", PART 2
OF ARTICLE 72 OF THIS TITLE 24, AND THE "COLORADO SUNSHINE ACT OF
1972", ARTICLE 6 OF THIS TITLE 24.
      24-46-406. 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 TRANSIT INVESTMENT PROJECT SHALL STATE THAT THE
DEPARTMENT SHALL, AFTER ANNUALLY RETAINING AN AMOUNT OF THE
STATE SALES TAX INCREMENT REVENUE ESTABLISHED BY THE DEPARTMENT
AS NECESSARY TO OFFSET THE DEPARTMENT'S ACTUAL DIRECT COSTS AND
EXPENSES INCURRED IN PERFORMING THE DEPARTMENT'S COLLECTION AND
DISBURSEMENT FUNCTIONS ESTABLISHED IN THIS PART 4 IN CONNECTION
WITH THE TRANSIT INVESTMENT PROJECT, DIVIDE AND DISTRIBUTE STATE
SALES TAXES LEVIED AND COLLECTED ON IN-PERSON SALES MADE WITHIN
THE TRANSIT INVESTMENT AREA COMMENCING ON THE FIRST DAY OF THE
FIRST MONTH AFTER THE DEPARTMENT HAS COLLECTED THE BASE YEAR
REVENUE FOR THE YEAR AFTER THE EFFECTIVE DATE OF THE COMMISSION'S
APPROVAL OF THE PROJECT AS FOLLOWS:
      (a) FIRST, THE PORTION OF STATE SALES TAXES COLLECTED ON
IN-PERSON SALES MADE WITHIN THE BOUNDARIES OF THE TRANSIT
INVESTMENT AREA EQUAL TO THE BASE YEAR REVENUE AS ADJUSTED FOR
THE BASELINE GROWTH RATE, IF APPLICABLE, IS PAID INTO THE STATE
TREASURY AS STATE SALES TAXES ARE NORMALLY COLLECTED AND PAID;
      (b) SECOND, THE PORTION OF STATE SALES TAXES COLLECTED ON
IN-PERSON SALES MADE WITHIN THE BOUNDARIES OF THE TRANSIT
INVESTMENT AREA EQUAL TO THE STATE SALES TAX INCREMENT REVENUE
   ARE PAID INTO A SPECIAL FUND ESTABLISHED BY THE FINANCING ENTITY
PURSUANT TO SUBSECTION (2) OF THIS SECTION; AND
     (c) THIRD, EXCESS STATE SALES TAX COLLECTIONS ABOVE THE
MAXIMUM ANNUAL DOLLAR AMOUNT OF STATE SALES TAX INCREMENT
REVENUE IN ANY GIVEN YEAR AND ANY CUMULATIVE EXCESS STATE SALES
PAGE 30-HOUSE BILL 26-1065
TAX COLLECTIONS ABOVE THE TOTAL CUMULATIVE STATE SALES TAX
INCREMENT REVENUE ARE PAID INTO THE STATE TREASURY AS SALES TAXES
ARE NORMALLY COLLECTED AND PAID AND, IF THERE IS INSUFFICIENT STATE
SALES TAXES COLLECTED ON IN-PERSON SALES MADE WITHIN THE
BOUNDARIES OF THE TRANSIT INVESTMENT AREA TO MAKE THE ALLOCATION
DESCRIBED IN SUBSECTION (1)(b) OF THIS SECTION, TO THE EXTENT
NECESSARY TO ACCOUNT FOR THE AMOUNT SET FORTH IN SECTION
24-46-402 (17)(a)(II), THE DEPARTMENT SHALL ALLOCATE STATE SALES TAX
REVENUE IN EXCESS OF THE STATE SALES TAX COLLECTED ON IN-PERSON
SALES MADE WITHIN THE TRANSIT INVESTMENT AREA, WHICH ALLOCATION
IS NEVERTHELESS STATE SALES TAX INCREMENT REVENUE.
       (2) (a) A FINANCING ENTITY MUST SEGREGATE REVENUE ALLOCATED
TO THE FINANCING ENTITY BY THE DEPARTMENT PURSUANT TO SUBSECTION
(1)(b) OF THIS SECTION IN A SPECIAL FUND. THE FINANCING ENTITY SHALL
SEGREGATE THE SPECIAL FUND FROM THE FINANCING ENTITY'S OTHER FUNDS.
THE FINANCING ENTITY MAY USE THE MONEY IN THE SPECIAL FUND 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, THE FINANCING ENTITY FOR FINANCING OR REFINANCING, IN
WHOLE OR IN PART, A TRANSIT INVESTMENT PROJECT.
      (b) A FINANCING ENTITY MAY USE REVENUE ALLOCATED TO THE
FINANCING ENTITY BY THE DEPARTMENT PURSUANT TO SUBSECTION (1)(b)
OF THIS SECTION SOLELY TO FINANCE ELIGIBLE COSTS INCURRED FOR THE
PURPOSE OF CONSTRUCTING THE ELIGIBLE IMPROVEMENTS AND
IMPLEMENTING THE TRANSIT INVESTMENT PROJECT.
      (3) EXCEPT FOR THE AMOUNT RETAINED BY THE DEPARTMENT
PURSUANT TO SUBSECTION (1) OF THIS SECTION, STATE SALES TAX
INCREMENT REVENUE, TOGETHER WITH ANY INVESTMENT INCOME EARNED
ON THAT REVENUE, IS FOR ALL PURPOSES ASSIGNED TO, THE PROPERTY OF,
AND THE REVENUE OF THE APPLICABLE FINANCING ENTITY AND IS NOT FOR
ANY PURPOSE REVENUE OR PROPERTY OF THE STATE.
      (4) A SINGLE DEBT ISSUANCE OF A FINANCING ENTITY MUST NOT
HAVE A MATURITY DATE IN EXCESS OF THIRTY YEARS FROM THE DATE OF
ISSUANCE, UNLESS THE FINANCING ENTITY BOTH:
PAGE 31-HOUSE BILL 26-1065
      (a) ANTICIPATES ISSUING A SERIES OF BONDS OR OTHER FORMS OF
DEBT; AND
      (b) HAS 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 FROM THE
DATE OF ISSUANCE OF THE CONSOLIDATING OR REFINANCING BONDS.
      (5) NO LOCAL GOVERNMENT SHALL BE LIABLE FOR ANY DEBT
ISSUANCE OF THE FINANCING ENTITY, AND A DEBT ISSUANCE OF THE
FINANCING ENTITY SHALL NOT CONSTITUTE A DEBT OF A LOCAL
GOVERNMENT.
      (6) ON OR BEFORE JULY 1, 2029, AND ON OR BEFORE JULY 1 EVERY
THREE YEARS THEREAFTER, THE DEPARTMENT MUST SUBMIT A REPORT TO
THE OFFICE OF STATE PLANNING AND BUDGETING AND THE COMMISSION ON
TECHNOLOGICAL OR OTHER METHODS TO INCORPORATE SALES DELIVERED
FROM WITHOUT THE TRANSIT INVESTMENT AREA INTO THE CALCULATION OF
THE INCREMENT AND TO ALLOW FOR THE DESIGNATION OF ADDITIONAL
TRANSIT AND HOUSING INVESTMENT ZONES AND TRANSIT INVESTMENT
AREAS, INCLUDING COST ESTIMATES, ADMINISTRATIVE BURDEN, AND
BURDEN ON TAXPAYERS.
      24-46-407. Annual report - audit.
      (1) (a) WITHIN NINETY DAYS OF THE END OF THE FIRST FULL STATE
FISCAL YEAR AFTER THE COMMISSION APPROVES A TRANSIT INVESTMENT
PROJECT AND ON THE SAME DATE EACH YEAR THEREAFTER, THE FINANCING
ENTITY SHALL PREPARE AND SUBMIT TO THE COMMISSION AN ANNUAL
REPORT DETAILING:
      (I) THE TOTAL AMOUNT OF STATE SALES TAX INCREMENT REVENUE
THAT THE FINANCING ENTITY HAS RECEIVED OVER THE PAST YEAR;
      (II) HOW THE FINANCING ENTITY HAS SPENT THE STATE SALES TAX
INCREMENT REVENUE THAT IT HAS RECEIVED;
      (III) PROJECTED STATE SALES TAX INCREMENT REVENUE FOR THE
REMAINDER OF THE PERIOD FOR WHICH THE FINANCING ENTITY MAY RECEIVE
STATE SALES TAX INCREMENT REVENUE; AND
PAGE 32-HOUSE BILL 26-1065
     (IV) A SUMMARY OF THE STATUS OF CONSTRUCTION OF THE ELIGIBLE
IMPROVEMENTS RELATED TO THE TRANSIT INVESTMENT PROJECT.
       (b) IN ADDITION TO THE INFORMATION DESCRIBED IN SUBSECTION
(1)(a) OF THIS SECTION, A FINANCING ENTITY SUBMITTING A REPORT
PURSUANT TO THIS SUBSECTION (1) SHALL ALSO INCLUDE IN THAT REPORT
WHETHER THE FINANCIAL ENTITY IS USING ANY STATE SALES TAX
INCREMENT REVENUE FOR PURPOSES OTHER THAN FOR ELIGIBLE COSTS AND
ANY OTHER FINANCIAL INFORMATION THAT IS REASONABLY REQUIRED BY
THE COMMISSION.
      (c)   IF ANY INFORMATION PROVIDED IN THE ANNUAL REPORT
DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION WILL BE A TRADE SECRET,
PROPRIETARY, OR OTHERWISE ENTITLED TO PROTECTION PURSUANT TO PART
2 OF ARTICLE 72 OF THIS TITLE 24, THAT INFORMATION IS SO DESIGNATED BY
THE FINANCING ENTITY AND KEPT CONFIDENTIAL BY THE STATE.
      (d) THE GOVERNING BODY OF THE FINANCING ENTITY SHALL ATTEST
TO THE ACCURACY OF THE INFORMATION PROVIDED IN THE ANNUAL REPORT
DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION.
      (2) (a) IN CONNECTION WITH THE ANNUAL REPORT REQUIRED
PURSUANT TO SUBSECTION (1) OF THIS SECTION, 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.
      (b) IF THE AUDIT PREPARED PURSUANT TO SUBSECTION (2)(a) OF THIS
SECTION FINDS THAT A FINANCING ENTITY HAS USED STATE SALES TAX
INCREMENT REVENUE FOR UNAUTHORIZED PURPOSES, THE FINANCING ENTITY
IS LIABLE FOR THE REPAYMENT TO THE GENERAL FUND OF THE STATE SALES
TAX INCREMENT REVENUE THAT WAS INTENDED FOR THE TRANSIT
INVESTMENT PROJECT. THE FINANCING ENTITY MAY MAKE THE REPAYMENT:
      (I) FROM THE FINANCING ENTITY'S FUNDS DERIVED FROM SOURCES
OTHER THAN STATE SALES TAX INCREMENT REVENUE;
      (II) BY OFFSETTING AGAINST FUTURE STATE SALES TAX INCREMENT
REVENUE THAT THE DEPARTMENT WOULD OTHERWISE DISBURSE TO THE
FINANCING ENTITY; OR
PAGE 33-HOUSE BILL 26-1065
      (III) FROM OTHER FUNDS THAT ARE LEGALLY AVAILABLE TO THE
FINANCING ENTITY FOR SUCH PURPOSE.
      (4)  IF A FINANCING ENTITY IS A COUNTY REVITALIZATION
AUTHORITY, A METROPOLITAN DISTRICT, AN AUTHORITY FORMED BY
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN
DISTRICTS, A REGIONAL TRANSPORTATION AUTHORITY, OR AN URBAN
RENEWAL AUTHORITY, IT MAY COMPLY WITH THIS SECTION BY SUBMITTING
TO THE COMMISSION A COPY OF THE REPORT THAT THE COUNTY
REVITALIZATION AUTHORITY, METROPOLITAN DISTRICT, AUTHORITY FORMED
BY INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE
METROPOLITAN DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR
URBAN RENEWAL AUTHORITY IS OTHERWISE REQUIRED TO SUBMIT TO A
LOCAL GOVERNMENT PURSUANT TO LAW. THE FINANCING ENTITY SHALL
DELIVER A COPY OF THE REPORT THAT THE COUNTY REVITALIZATION
AUTHORITY , METROPOLITAN DISTRICT , AUTHORITY FORMED BY
INTERGOVERNMENTAL AGREEMENT AMONG TWO OR MORE METROPOLITAN
DISTRICTS, REGIONAL TRANSPORTATION AUTHORITY, OR URBAN RENEWAL
AUTHORITY IS OTHERWISE REQUIRED TO SUBMIT TO A LOCAL GOVERNMENT
PURSUANT TO LAW AT THE SAME TIME AS AN ANNUAL REPORT OR AUDIT
OTHERWISE REQUIRED BY LAW.
      (5) THE OFFICE OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT
SHALL PREPARE A REPORT FOR THE OFFICE OF ECONOMIC DEVELOPMENT TO
SUBMIT 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 INCLUDE INFORMATION ON ALL STATE SALES TAX INCREMENT
REVENUE COLLECTED FOR TRANSIT INVESTMENT DURING THE PRIOR STATE
FISCAL YEAR AND INFORMATION FROM THE REPORTS REQUIRED PURSUANT
TO SUBSECTION (6) OF THIS SECTION.
      (6) (a) EACH YEAR, NO LATER THAN SEPTEMBER 1, THE DEPARTMENT
SHALL REPORT TO THE COMMISSION THE AGGREGATE AMOUNT OF STATE
SALES TAX INCREMENT REVENUE ALLOCATED TO FINANCING ENTITIES FOR
APPROVED TRANSIT INVESTMENT PROJECTS.
      (b) EVERY TWO YEARS, NO LATER THAN NOVEMBER 1, THE OFFICE
PAGE 34-HOUSE BILL 26-1065
OF ECONOMIC DEVELOPMENT AND THE DEPARTMENT SHALL REPORT TO THE
COMMISSION DETAILED INFORMATION ON EACH TRANSIT INVESTMENT
PROJECT APPROVED TO RECEIVE STATE SALES TAX INCREMENT REVENUE,
INCLUDING:
      (I) THE AMOUNT OF STATE SALES TAX INCREMENT REVENUE
ALLOCATED FOR THE PROJECT;
     (II) THE BOUNDARIES OF THE APPROVED TRANSIT INVESTMENT AREA
AND NARRATIVE FOR THE TRANSIT INVESTMENT PROJECT;
      (III) THE PROPOSED TERM OF FINANCING AND THE NEW NET REVENUE
THAT IS APPROVED FOR THE TRANSIT INVESTMENT PROJECT;
      (IV)   THE ACTUAL STATE SALES TAX INCREMENT REVENUE
COLLECTED WITHIN THE TRANSIT INVESTMENT AREA COMPARED TO THE
PROJECTED REVENUES CONTAINED IN THE APPROVED APPLICATION THAT
PROPOSED THE TRANSIT INVESTMENT AREA; AND
      (V) AN ASSESSMENT OF THE OVERALL EFFECTIVENESS OF THE
TRANSIT INVESTMENT PROJECT IN ACHIEVING INCREASED TRANSIT
RIDERSHIP.
      24-46-408. Commencement of development.
      (1) SUBSTANTIAL WORK ON A TRANSIT INVESTMENT PROJECT,
INCLUDING 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 MUST COMMENCE
WITHIN FIVE YEARS FROM THE DATE OF THE COMMISSION'S APPROVAL OF THE
PROJECT.
      (2) IF SUBSTANTIAL WORK ON THE TRANSIT INVESTMENT PROJECT
TOWARD THE GOALS SPECIFIED IN THE APPLICATION PURSUANT TO SECTION
24-46-403 DOES NOT COMMENCE WITHIN FIVE YEARS OF THE COMMISSION'S
APPROVAL, THE COMMISSION MAY REVOKE OR MODIFY ITS APPROVAL OF THE
PAGE 35-HOUSE BILL 26-1065
FINANCING ENTITY OR THE PROJECT. REVOCATION OF APPROVAL MAY BE
APPEALED TO THE COMMISSION, WHICH MAY REINSTATE ITS APPROVAL UPON
A SHOWING OF GOOD CAUSE FOR THE DELAY. IF SUBSTANTIAL WORK ON THE
PROJECT DOES NOT COMMENCE WITHIN ONE YEAR OF REINSTATEMENT OF
APPROVAL FROM THE COMMISSION, THE COMMISSION SHALL REVOKE
APPROVAL OF THE PROJECT.
      (3) UPON THE REVOCATION OF THE APPROVAL OF A FINANCING
ENTITY OR THE TRANSIT INVESTMENT PROJECT:
      (a) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (3)(b) OF THIS
SECTION, THE COMMISSION MAY REQUIRE THE FINANCING ENTITY TO REFUND
TO THE STATE TREASURER ANY STATE SALES TAX INCREMENT REVENUE THAT
THE PROJECT HAS GENERATED OR THAT THE FINANCING ENTITY HAS
COLLECTED FROM THE TIME OF THE ORIGINAL APPROVAL FOR THE PROJECT
OR FINANCING ENTITY;
      (b) ANY STATE SALES TAX INCREMENT REVENUE THAT THE TRANSIT
INVESTMENT PROJECT HAS GENERATED OR THAT THE FINANCING ENTITY HAS
COLLECTED FROM THE TIME OF THE ORIGINAL APPROVAL FOR THE PROJECT
OR FINANCING ENTITY MAY REMAIN DEDICATED TO THE PROJECT ONLY TO
THE EXTENT THAT IT HAS BEEN PREVIOUSLY EXPENDED OR PLEDGED BY THE
FINANCING ENTITY FOR THE FINANCING OF ELIGIBLE COSTS; AND
      (c) THE STATE SHALL NOT REMIT FURTHER FUNDS TO THE REVOKED
FINANCIAL ENTITY OR TRANSIT INVESTMENT PROJECT.
      (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 BY THE FINANCING ENTITY OR CERTIFIED
PUBLIC ACCOUNTANT PURSUANT TO SECTION 24-46-407 AND ANY
SUPPLEMENTAL DATA DEEMED NECESSARY BY THE COMMISSION.
      (5) FAILURE OF A PROJECT TO COMPLY WITH THE HIRING,
APPRENTICESHIP , AND WORKFORCE STANDARDS APPLICABLE TO
INFRASTRUCTURE PROJECTS THAT ARE FINANCED BY THE BUILDING URGENT
INFRASTRUCTURE AND LEVERAGING DOLLARS AUTHORITY AS REQUIRED BY
SECTION 24-117-105 (6), TO THE EXTENT APPLICABLE, CONSTITUTES
GROUNDS FOR THE COMMISSION TO REVOKE OR MODIFY PROJECT APPROVAL
PAGE 36-HOUSE BILL 26-1065
PURSUANT TO THIS SECTION. PRIOR TO REVOKING PROJECT APPROVAL
PURSUANT TO THIS SUBSECTION (5), THE COMMISSION SHALL PROVIDE
NOTICE AND AN OPPORTUNITY TO CURE.
      (6) THE COMMISSION ONLY HAS THE AUTHORITY TO REVOKE ITS
APPROVAL OF A FINANCING ENTITY OR A TRANSIT INVESTMENT PROJECT
PURSUANT TO THIS SECTION.
      24-46-409. 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 TRANSIT INVESTMENT 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, REFINANCING, OR
EXTENSION OF ANY BONDS PREVIOUSLY ISSUED BY THE FINANCING ENTITY
UNDER THIS SECTION.
      (2) (a) BONDS ISSUED UNDER THIS SECTION MAY BE GENERAL
OBLIGATION OR REVENUE 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 MAY BE 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 TRANSIT INVESTMENT 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.
PAGE 37-HOUSE BILL 26-1065
      (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,
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 OR INDENTURE 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 DO NOT CONSTITUTE AN
INDEBTEDNESS OF THE STATE OR OF ANY COUNTY, MUNICIPALITY, OR PUBLIC
BODY OF THE STATE OTHER THAN THE FINANCING ENTITY ISSUING THE BONDS
AND ARE NOT SUBJECT TO 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, INDENTURE, OR OTHER DOCUMENT PURSUANT TO WHICH
SUCH OBLIGATIONS ARE ISSUED 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 AS MAY BE DETERMINED BY THE
FINANCING ENTITY NOT TO EXCEED THIRTY YEARS, EXCEPT AS THE
MATURITY MAY BE EXTENDED IN ACCORDANCE WITH SECTION 24-46-406 (4)
AND IN ACCORDANCE WITH ARTICLE 57 OF TITLE 11; BEAR INTEREST AT A
RATE PAYABLE OR COMPOUNDABLE AT INTERVALS DETERMINED BY THE
FINANCING ENTITY; 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,
PAGE 38-HOUSE BILL 26-1065
CONDITIONS, AND AGREEMENTS, INCLUDING PROVISIONS CONCERNING
EVENTS OF DEFAULT; AND HAVE OTHER CHARACTERISTICS THAT MAY BE
PROVIDED BY THE RESOLUTION OR BY THE TRUST AGREEMENT, INDENTURE,
OR MORTGAGE, IF ANY, ISSUED PURSUANT TO THE 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 OFFICIALS THAT MAY BE DESIGNATED
IN SAID RESOLUTION OR TRUST AGREEMENT, INDENTURE, OR MORTGAGE.
COUPONS, IF ANY, ATTACHED TO THE BONDS SHALL BEAR THE FACSIMILE
SIGNATURE OF THE OFFICIAL OF THE FINANCING ENTITY THAT 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 A MANNER AND FOR A 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 IS PUBLISHED PRIOR
TO THE SALE IN A NEWSPAPER HAVING GENERAL CIRCULATION IN THE
MUNICIPALITY, OR IN ANOTHER MEDIUM OF PUBLICATION AS THE FINANCING
ENTITY MAY DEEM APPROPRIATE IN ACCORDANCE WITH SECTION 24-6-402,
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 OFFICIALS AFTER THE
AUTHORIZATION THEREOF, BUT BEFORE THE DELIVERY OF THE BONDS, THE
SIGNATURES OR FACSIMILE SIGNATURES, AS THE CASE MAY BE, ARE
NEVERTHELESS VALID AND SUFFICIENT FOR ALL PURPOSES, THE SAME AS IF
THE OFFICIALS HAD REMAINED IN OFFICE UNTIL THE 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 A BOND THAT IS ISSUED UNDER THIS SECTION OR
THE SECURITY OF SUCH A BOND, ANY BOND RECITING IN SUBSTANCE THAT IT
PAGE 39-HOUSE BILL 26-1065
HAS BEEN ISSUED BY THE FINANCING ENTITY IN CONNECTION WITH A TRANSIT
INVESTMENT PROJECT OR ANY ACTIVITY OR OPERATION OF THE FINANCING
ENTITY UNDER THIS PART 4 IS CONCLUSIVELY DEEMED TO HAVE BEEN ISSUED
FOR SUCH PURPOSES; AND SUCH TRANSIT INVESTMENT PROJECT OR SUCH
OPERATION OR ACTIVITY, AS THE CASE MAY BE, IS CONCLUSIVELY DEEMED
TO HAVE BEEN INITIATED, PLANNED , LOCATED , UNDERTAKEN ,
ACCOMPLISHED, AND CARRIED OUT IN ACCORDANCE WITH THIS PART 4. NO
LEGAL OR EQUITABLE ACTION BROUGHT WITH RESPECT TO THE VALIDITY OR
ENFORCEABILITY OF ANY BOND THAT IS ISSUED UNDER THIS SECTION OR THE
SECURITY OF SUCH A BOND SHALL BE COMMENCED MORE THAN THIRTY DAYS
AFTER THE AUTHORIZATION OF THE BOND OR BONDS BY THE FINANCING
ENTITY.
       (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 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 THE 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 THE BONDS
IS LIABLE PERSONALLY ON THE BONDS OR IS SUBJECT TO ANY PERSONAL
LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE OF THE BONDS.
      (15)  NO COMMISSIONER OR OTHER OFFICER OF A TRANSIT
INVESTMENT AUTHORITY ISSUING BONDS PURSUANT TO THIS PART 4 AND NO
PERSON EXECUTING THE BONDS IS LIABLE PERSONALLY ON THE BONDS OR
SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF
THE ISSUANCE OF THE BONDS.
      (16) BONDS THAT ARE ISSUED PURSUANT TO THIS PART 4 ARE
DECLARED TO BE ISSUED FOR AN ESSENTIAL PUBLIC AND GOVERNMENTAL
PURPOSE AND, TOGETHER WITH INTEREST THEREON AND INCOME
THEREFROM, ARE EXEMPT FROM ALL STATE OF COLORADO TAXES.
PAGE 40-HOUSE BILL 26-1065
      SECTION 3. In Colorado Revised Statutes, add 24-35-124 as
follows:
       24-35-124. Transit investment area - authority of department -
definitions.
     (1) IN ADDITION TO THE OTHER FUNCTIONS AND POWERS OF THE
DEPARTMENT AND THE EXECUTIVE DIRECTOR PURSUANT TO THIS PART 1, THE
DEPARTMENT SHALL:
      (a) ESTABLISH AND DETERMINE THE BASE YEAR REVENUE FOR EACH
TRANSIT INVESTMENT AREA;
      (b)   COLLECT, ACCOUNT FOR, AND REMIT TO THE APPLICABLE
FINANCING ENTITY THE RELEVANT AMOUNT OF STATE SALES TAX INCREMENT
REVENUE GENERATED WITHIN EACH TRANSIT INVESTMENT AREA;
     (c) SHARE DATA AS NECESSARY WITH THE COLORADO OFFICE OF
ECONOMIC DEVELOPMENT IN CONNECTION WITH THE "TRANSIT INVESTMENT
AREA ACT", PART 4 OF ARTICLE 46 OF THIS TITLE 24; AND
      (d)   OTHERWISE PERFORM THE FUNCTIONS REQUIRED OF THE
DEPARTMENT IN THE WRITTEN NOTICE PROVIDED TO THE EXECUTIVE
DIRECTOR IN CONNECTION WITH THE ESTABLISHMENT OF A FINANCING
ENTITY OR TRANSIT INVESTMENT AREA.
      (2) THE EXECUTIVE DIRECTOR HAS THE AUTHORITY TO:
      (a)    CREATE FORMS AND ADOPT RULES AS NECESSARY OR
CONVENIENT TO IMPLEMENT THE DEPARTMENT'S RESPONSIBILITIES WITH
RESPECT TO THE DETERMINATION OF BASE YEAR REVENUE, COLLECTION AND
DISBURSEMENT OF STATE SALES TAX INCREMENT REVENUE, AND OTHER
FUNCTIONS OF THE DEPARTMENT PURSUANT TO PART 4 OF ARTICLE 46 OF
THIS TITLE 24;
      (b) ENTER INTO CONTRACTS WITH FINANCING ENTITIES, IN THE
MANNER PROVIDED FOR IN SECTION 24-35-110, REGARDING THE
PERFORMANCE OF THE DEPARTMENT'S FUNCTIONS IN IMPLEMENTING PART 4
OF ARTICLE 46 OF THIS TITLE 24; AND
PAGE 41-HOUSE BILL 26-1065
      (c) RETAIN ANNUALLY AN AMOUNT OF THE STATE SALES TAX
INCREMENT REVENUE ESTABLISHED BY THE DEPARTMENT AS NECESSARY TO
OFFSET THE DEPARTMENT'S ACTUAL DIRECT COSTS AND EXPENSES INCURRED
IN PERFORMING THE COLLECTION AND DISBURSEMENT FUNCTIONS
ESTABLISHED IN PART 4 OF ARTICLE 46 OF THIS TITLE 24.
      (3) EXCEPT FOR THE AMOUNT RETAINED BY THE DEPARTMENT
PURSUANT TO SECTION 24-46-406 (1), ALL STATE SALES TAX INCREMENT
REVENUE COLLECTED BY THE DEPARTMENT ON BEHALF OF A FINANCING
ENTITY IS FOR ALL PURPOSES ASSIGNED TO, THE PROPERTY OF, AND THE
REVENUE OF THE APPLICABLE FINANCING ENTITY AND IS NOT TO BE
CONSTRUED OR TREATED FOR ANY PURPOSE AS REVENUE OR PROPERTY OF
THE STATE.
      (4) IN COLLECTING AND DISBURSING STATE SALES TAX INCREMENT
REVENUE AS PROVIDED IN THIS SECTION AND OTHERWISE PERFORMING ITS
RESPONSIBILITIES PURSUANT TO PART 4 OF ARTICLE 46 OF THIS TITLE 24, THE
DEPARTMENT SHALL ACT SOLELY AS A COLLECTING AGENT FOR A FINANCING
ENTITY AND SHALL SEGREGATE IN A SEPARATE FUND ANY PORTION OF STATE
SALES TAX INCREMENT REVENUE THAT IS DEDICATED TO THE FINANCING
ENTITY BUT WILL NOT BE REMITTED TO THE FINANCING ENTITY IN THE
IMMEDIATE FUTURE.
      (5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
      (a) "BASE YEAR REVENUE" HAS THE MEANING SET FORTH IN SECTION
24-46-402 (2).
       (b) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE CREATED
IN SECTION 24-35-101.
     (c) "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF THE
DEPARTMENT.
      (d) "FINANCING ENTITY" HAS THE MEANING SET FORTH IN SECTION
24-46-402 (11).
      (e) "STATE SALES TAX INCREMENT REVENUE" HAS THE MEANING SET
FORTH IN SECTION 24-46-402 (17).
PAGE 42-HOUSE BILL 26-1065
      (f) "TRANSIT INVESTMENT AREA" HAS THE MEANING SET FORTH IN
SECTION 24-46-402 (20).
      SECTION 4. In Colorado Revised Statutes, add 24-48.5-136 as
follows:
      24-48.5-136. Transit and housing investment zones map - transit
and housing investment zone criteria - definitions.
      (1) ON OR BEFORE OCTOBER 30, 2026, THE COLORADO OFFICE OF
ECONOMIC DEVELOPMENT, IN CONSULTATION WITH THE DEPARTMENT OF
LOCAL AFFAIRS AND THE DEPARTMENT OF TRANSPORTATION, SHALL PUBLISH
A TRANSIT AND HOUSING INVESTMENT ZONE MAP BASED ON THE CRITERIA
FOR IDENTIFYING TRANSIT AND HOUSING INVESTMENT ZONES ESTABLISHED
IN SUBSECTION (2) OF THIS SECTION.
      (2)  THE OFFICE SHALL DESIGNATE TRANSIT AND HOUSING
INVESTMENT ZONES, FOR PURPOSES OF SUBSECTION (1) OF THIS SECTION,
AND SHALL DO SO BASED ON THE LOCATION OF TRANSPORTATION FACILITIES
AS IDENTIFIED IN A PUBLISHED TRANSIT PLAN AND MAY, IN CONSULTATION
WITH LOCAL GOVERNMENTS AND TRANSIT AGENCIES, USE PREEXISTING
ROUTES, MAPS, AND SCHEDULES TO INFORM THE OFFICE'S DESIGNATION OF
TRANSIT AND HOUSING INVESTMENT ZONES.
      (3) 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) "PASSENGER RAIL STATION" HAS THE MEANING SET FORTH IN
SECTION 32-22-102 (8).
      (c) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA
WITHIN TWO MILES OF A TRANSPORTATION FACILITY AS IDENTIFIED BY THE
OFFICE IN THE TRANSIT AND HOUSING INVESTMENT ZONES MAP CREATED
PURSUANT TO SUBSECTION (1) OF THIS SECTION.
      (d) "TRANSIT STATION" HAS THE MEANING SET FORTH IN SECTION
24-46-402 (23).
PAGE 43-HOUSE BILL 26-1065
      (e) "TRANSPORTATION FACILITY" MEANS A TRANSIT STATION OR
PASSENGER RAIL STATION.
        SECTION 5. In Colorado Revised Statutes, 29-1-102, amend (13)
as follows:
       29-1-102. Definitions.
       As used in this part 1, unless the context otherwise requires:
        (13) "Local government" means any authority, county, municipality,
city and county, district, or other political subdivision of the state of
Colorado; any institution, department, agency, or authority of any of the
foregoing; and any other entity, organization, or corporation formed by
intergovernmental agreement or other contract between or among any of the
foregoing. The office of the county public trustee shall be deemed an
agency of the county for the purposes of this part 1. "Local government"
does not include the Colorado educational and cultural facilities authority,
the university of Colorado hospital authority, collegeinvest, the Colorado
health facilities authority, the Colorado housing and finance authority, the
Colorado agricultural development authority, the Colorado sheep and wool
authority, the Colorado beef council authority, the Colorado horse
development authority, the building urgent infrastructure and leveraging
dollars authority, the middle-income housing authority, the fire and police
pension association, A TRANSIT INVESTMENT AUTHORITY, any public entity
insurance or investment pool formed pursuant to state law, any county or
municipal housing authority, any association of political subdivisions
formed pursuant to section 29-1-401, or any home rule city or town, home
rule city and county, cities and towns operating under a territorial charter,
school district, or local college district.
      SECTION 6. In Colorado Revised Statutes, add 30-31-116.5 as
follows:
       30-31-116.5. Transit investment areas - definition.
      (1) A COUNTY REVITALIZATION AUTHORITY THAT IS DESIGNATED AS
A FINANCING ENTITY, PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, HAS
ALL THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT PART 4 OF
ARTICLE 46 OF TITLE 24, INCLUDING THE POWER TO RECEIVE STATE SALES
PAGE 44-HOUSE BILL 26-1065
TAX INCREMENT REVENUE GENERATED WITHIN AN APPROVED TRANSIT
INVESTMENT AREA, AS DEFINED IN SECTION 24-46-402 (20), AND TO
DISBURSE AND OTHERWISE USE THE REVENUE FOR ALL LAWFUL PURPOSES,
INCLUDING FINANCING ELIGIBLE COSTS AND THE DESIGN, CONSTRUCTION,
MAINTENANCE, AND OPERATION OF ELIGIBLE IMPROVEMENTS, AS SUCH
TERMS ARE DEFINED IN SECTION 24-46-402 OR OTHERWISE INCORPORATED
INTO THE COLORADO ECONOMIC DEVELOPMENT COMMISSION'S CONDITIONS
OF APPROVAL.
      (2) NOTWITHSTANDING SECTION 30-31-109 (8), AUTHORIZATION TO
RECEIVE STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART 4 OF
ARTICLE 46 OF TITLE 24, IS NOT A SUBSTANTIAL MODIFICATION TO THE PLAN,
AND CORRESPONDING CHANGES TO THE PLAN MAY BE MADE BY THE
GOVERNING BODY OF THE AUTHORITY TO INCORPORATE THE USE OF STATE
SALES TAX INCREMENT REVENUE WITHOUT THE REQUIREMENT OF
SUBMISSION TO OR APPROVAL BY THE GOVERNING BODY OF THE COUNTY
THAT HAS ESTABLISHED THE AUTHORITY.
      (3) A COUNTY REVITALIZATION AUTHORITY THAT RECEIVES STATE
SALES TAX INCREMENT REVENUE, WHETHER PURSUANT TO DESIGNATION AS
A FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, OR
PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH FINANCING
ENTITY, SHALL NOT USE THE STATE SALES TAX INCREMENT REVENUE TO
ACQUIRE PROPERTY THROUGH THE EXERCISE OF EMINENT DOMAIN.
      (4) NOTHING IN THIS SECTION OBVIATES OR OVERRIDES THE
REQUIREMENTS FOR THE AUTHORIZATION OF A NEW COUNTY
REVITALIZATION AUTHORITY PURSUANT TO THIS ARTICLE 31.
      (5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, "STATE SALES TAX INCREMENT REVENUE" HAS THE MEANING SET
FORTH IN SECTION 24-46-402 (17).
      SECTION 7. In Colorado Revised Statutes, add 31-25-117 as
follows:
      31-25-117. Transit investment areas - definition.
      (1) AN URBAN RENEWAL AUTHORITY THAT IS DESIGNATED AS A
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24 HAS ALL
PAGE 45-HOUSE BILL 26-1065
OF THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT PART 4 OF
ARTICLE 46 OF TITLE 24, INCLUDING THE POWERS TO RECEIVE STATE SALES
TAX INCREMENT REVENUE GENERATED WITHIN AN APPROVED TRANSIT
INVESTMENT AREA, AS DEFINED IN SECTION 24-46-402 (20), AND DISBURSE
AND OTHERWISE USE SUCH REVENUE FOR ALL LAWFUL PURPOSES, INCLUDING
FINANCING OF ELIGIBLE COSTS AND THE DESIGN, CONSTRUCTION,
MAINTENANCE, AND OPERATION OF ELIGIBLE IMPROVEMENTS, AS SUCH
TERMS ARE DEFINED IN SECTION 24-46-402, OR OTHERWISE INCORPORATED
INTO THE COLORADO ECONOMIC DEVELOPMENT COMMISSION'S CONDITIONS
OF APPROVAL.
      (2) NOTWITHSTANDING SECTION 31-25-107 (7), AUTHORIZATION TO
RECEIVE STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART 4 OF
ARTICLE 46 OF TITLE 24, IS NOT A SUBSTANTIAL MODIFICATION TO THE PLAN
AND CORRESPONDING CHANGES TO THE PLAN MAY BE MADE BY THE
GOVERNING BODY OF THE AUTHORITY TO INCORPORATE THE USE OF STATE
SALES TAX INCREMENT REVENUE WITHOUT THE REQUIREMENT OF
SUBMISSION TO OR APPROVAL BY THE GOVERNING BODY OF A MUNICIPALITY
THAT HAS ESTABLISHED THE AUTHORITY PURSUANT TO SECTION 31-25-104
(1).
      (3) AN URBAN RENEWAL AUTHORITY THAT RECEIVES STATE SALES
TAX INCREMENT REVENUE, WHETHER PURSUANT TO DESIGNATION AS A
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, OR
PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH FINANCING
ENTITY, SHALL NOT USE THE STATE SALES TAX INCREMENT REVENUE TO
ACQUIRE PROPERTY THROUGH THE EXERCISE OF EMINENT DOMAIN.
       (4)   NOTHING IN THIS SECTION OBVIATES OR OVERRIDES THE
REQUIREMENTS FOR THE AUTHORIZATION OF A NEW URBAN RENEWAL
AUTHORITY UNDER THIS PART 1.
      (5) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, "STATE SALES TAX INCREMENT REVENUE" HAS THE MEANING SET
FORTH IN SECTION 24-46-402 (17).
      SECTION 8. In Colorado Revised Statutes, add 32-1-1010 as
follows:
       32-1-1010. Transit investment areas - definition.
PAGE 46-HOUSE BILL 26-1065
       (1) IN ADDITION TO THE POWERS SPECIFIED IN THIS PART 10, AND
NOTWITHSTANDING ANY LIMITATION ON THE POWERS OF A METROPOLITAN
DISTRICT OTHERWISE SPECIFIED IN THIS PART 10 OR IN THE METROPOLITAN
DISTRICT'S SERVICE PLAN, ANY METROPOLITAN DISTRICT DESIGNATED AS AN
APPROVED FINANCING ENTITY, PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE
24, HAS ALL THE POWERS NECESSARY OR CONVENIENT TO CARRY OUT PART
4 OF ARTICLE 46 OF TITLE 24, INCLUDING THE POWER TO RECEIVE STATE
SALES TAX INCREMENT REVENUE AND TO DISBURSE AND OTHERWISE USE
SUCH REVENUE FOR ALL LAWFUL PURPOSES PURSUANT TO PART 4 OF ARTICLE
4 OF TITLE 24. LAWFUL PURPOSES INCLUDE THE FINANCING OF ELIGIBLE
COSTS AND THE DESIGN, CONSTRUCTION, MAINTENANCE, AND OPERATION OF
ELIGIBLE IMPROVEMENTS AS DEFINED IN SECTION 24-46-402 (10) OR
OTHERWISE INCORPORATED INTO THE COLORADO ECONOMIC DEVELOPMENT
COMMISSION'S CONDITIONS OF APPROVAL PURSUANT TO PART 4 OF ARTICLE
46 OF TITLE 24.
       (2) NOTWITHSTANDING ANY PROVISION OF SECTION 32-1-207 OR OF
THE METROPOLITAN DISTRICT'S SERVICE PLAN, AUTHORIZATION TO RECEIVE
STATE SALES TAX INCREMENT REVENUE, PURSUANT TO PART 4 OF ARTICLE
46 OF TITLE 24, IS NOT CONSIDERED A SUBSTANTIAL MODIFICATION TO THE
PLAN AND CORRESPONDING CHANGES TO THE PLAN MAY BE MADE BY THE
GOVERNING BODY TO INCORPORATE THE USE OF STATE SALES TAX
INCREMENT REVENUE OF THE METROPOLITAN DISTRICT WITHOUT THE
REQUIREMENT OF PETITION TO OR APPROVAL BY THE BOARD OF COUNTY
COMMISSIONERS OR THE GOVERNING BODY OF THE MUNICIPALITY, AS
APPLICABLE.
      (3)  A METROPOLITAN DISTRICT RECEIVING STATE SALES TAX
INCREMENT REVENUE, WHETHER PURSUANT TO DESIGNATION AS A
FINANCING ENTITY PURSUANT TO PART 4 OF ARTICLE 46 OF TITLE 24, OR
PURSUANT TO A CONTRACT ENTERED INTO WITH ANY SUCH ENTITY, SHALL
NOT USE THE STATE SALES TAX INCREMENT REVENUE TO ACQUIRE PROPERTY
THROUGH THE EXERCISE OF EMINENT DOMAIN.
      (4) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, "STATE SALES TAX INCREMENT REVENUE" HAS THE MEANING SET
FORTH IN SECTION 24-46-402 (17).
      SECTION 9. In Colorado Revised Statutes, 39-21-113, add (40) as
follows:
PAGE 47-HOUSE BILL 26-1065
      39-21-113. Reports and returns - rule - repeal.
       (40) (a) NOTWITHSTANDING THE CONFIDENTIALITY REQUIREMENTS
IN THIS SECTION:
      (I) THE EXECUTIVE DIRECTOR MAY PROVIDE THE COLORADO OFFICE
OF ECONOMIC DEVELOPMENT WITH ANY INFORMATION OBTAINED PURSUANT
TO THIS SECTION IN RELATION TO PART 4 OF ARTICLE 46 OF TITLE 24; AND
      (II) BOTH THE EXECUTIVE DIRECTOR AND THE COLORADO OFFICE OF
ECONOMIC DEVELOPMENT MAY PROVIDE INFORMATION OBTAINED PURSUANT
TO THIS SECTION IN RELATION TO PART 4 OF ARTICLE 46 OF TITLE 24 TO A
THIRD-PARTY ANALYST.
      (b) ANY INFORMATION PROVIDED TO THE COLORADO OFFICE OF
ECONOMIC DEVELOPMENT OR A THIRD-PARTY ANALYST PURSUANT TO THIS
SUBSECTION (40) IS CONFIDENTIAL, AND ALL EMPLOYEES OF THE COLORADO
OFFICE OF ECONOMIC DEVELOPMENT AND THE THIRD-PARTY ANALYST ARE
SUBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION (4) OF THIS SECTION
AND THE PENALTIES SPECIFIED IN SUBSECTION (6) OF THIS SECTION.
        SECTION 10. In Colorado Revised Statutes, add part 57 to article
22 of title 39 as follows:
                        PART 57
           COLORADO AFFORDABLE HOUSING IN
         TRANSIT AND HOUSING INVESTMENT ZONES
                      TAX CREDIT
      39-22-5701. Tax preference performance statement - report.
      (1) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX
PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FINDS AND DECLARES
THAT THE PURPOSE OF THE TAX CREDIT PROVIDED IN THIS SECTION IS TO
INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS BY SUPPORTING THE
DEVELOPMENT OF AFFORDABLE HOUSING WITHIN TRANSIT AND HOUSING
INVESTMENT ZONES.
PAGE 48-HOUSE BILL 26-1065
       (2) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE
SPECIFIED IN SUBSECTION (1) OF THIS SECTION BASED ON THE REPORT
DESCRIBED IN SUBSECTION (3) OF THIS SECTION.
      (3) FOR EACH ALLOCATION YEAR, THE AUTHORITY SHALL, BY
DECEMBER 31 OF THAT YEAR, PROVIDE A WRITTEN REPORT TO THE GENERAL
ASSEMBLY AND MAKE THE REPORT AVAILABLE TO THE PUBLIC. WITH
RESPECT TO TAX CREDITS ALLOCATED PURSUANT TO THIS PART 57, THE
REPORT MUST:
      (a) SPECIFY THE TOTAL NUMBER OF QUALIFIED DEVELOPMENTS AND
UNITS SUPPORTED BY EACH DEVELOPMENT IN CONNECTION WITH THE
CREDIT;
      (b) DESCRIBE EACH QUALIFIED DEVELOPMENT IN CONNECTION WITH
WHICH THE AUTHORITY ISSUED CREDITS, INCLUDING IN THAT DESCRIPTION
THE GEOGRAPHIC LOCATION OF THE DEVELOPMENT, THE HOUSEHOLD TYPE
AND ANY SPECIFIC DEMOGRAPHIC INFORMATION AVAILABLE ABOUT
RESIDENTS INTENDED TO BE SERVED BY THE DEVELOPMENT, THE INCOME
LEVELS INTENDED TO BE SERVED BY THE DEVELOPMENT, AND THE RENTS OR
SET-ASIDES AUTHORIZED FOR EACH DEVELOPMENT; AND
      (c) PROVIDE HOUSING MARKET AND DEMOGRAPHIC INFORMATION
THAT DEMONSTRATES HOW THE QUALIFIED DEVELOPMENTS SUPPORTED BY
CREDITS ARE ADDRESSING THE NEED FOR AFFORDABLE HOUSING WITHIN THE
COMMUNITIES THEY ARE INTENDED TO SERVE AS WELL AS INFORMATION
ABOUT ANY REMAINING DISPARITIES IN THE AFFORDABILITY OF HOUSING
WITHIN THOSE COMMUNITIES.
      39-22-5702. Definitions.
      AS USED IN THIS PART 57, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
      (1) "ALLOCATION CERTIFICATE" MEANS A STATEMENT ISSUED BY THE
AUTHORITY CERTIFYING THAT A GIVEN DEVELOPMENT QUALIFIES FOR THE
CREDIT AND SPECIFYING THE AMOUNT OF THE CREDIT ALLOWED.
      (2) "ALLOCATION PLAN" MEANS AN ALLOCATION PLAN ADOPTED BY
PAGE 49-HOUSE BILL 26-1065
THE AUTHORITY THAT GOVERNS THE SELECTION CRITERIA AND PREFERENCES
FOR ALLOCATING THE TAX CREDIT ALLOWED PURSUANT TO THIS PART 57.
     (3) "AUTHORITY" MEANS THE COLORADO HOUSING AND FINANCE
AUTHORITY CREATED IN SECTION 29-4-704.
      (4) "COMPLIANCE PERIOD" MEANS THE PERIOD OF FIFTEEN YEARS
BEGINNING WITH THE FIRST INCOME TAX YEAR OF A CREDIT PERIOD.
      (5) "CREDIT" MEANS THE COLORADO AFFORDABLE HOUSING IN
TRANSIT AND HOUSING INVESTMENT ZONES TAX CREDIT ALLOWED PURSUANT
TO THIS PART 57.
      (6) "CREDIT PERIOD" MEANS THE PERIOD OF SIX INCOME TAX YEARS
BEGINNING WITH THE INCOME TAX YEAR IN WHICH A QUALIFIED
DEVELOPMENT IS PLACED IN SERVICE. IF A QUALIFIED DEVELOPMENT IS
COMPRISED OF MORE THAN ONE BUILDING, THE DEVELOPMENT IS DEEMED TO
BE PLACED IN SERVICE IN THE INCOME TAX YEAR DURING WHICH THE LAST
BUILDING OF THE QUALIFIED DEVELOPMENT IS PLACED IN SERVICE.
      (7) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.
      (8) "FEDERAL TAX CREDIT" MEANS THE FEDERAL LOW-INCOME
HOUSING TAX CREDIT PROVIDED BY SECTION 42 OF THE INTERNAL REVENUE
CODE.
      (9) "QUALIFIED BASIS" MEANS THE QUALIFIED BASIS OF THE
DEVELOPMENT AS DETERMINED PURSUANT TO SECTION 42 OF THE INTERNAL
REVENUE CODE.
      (10) "QUALIFIED DEVELOPMENT" MEANS A HOUSING DEVELOPMENT
THAT IS LOCATED IN A TRANSIT AND HOUSING INVESTMENT ZONE WITHIN THE
STATE AND IS DETERMINED BY THE AUTHORITY TO MEET THE CRITERIA
ESTABLISHED IN THE ALLOCATION PLAN, INCLUDING PROVIDING THE
REQUIRED NUMBER OF AFFORDABLE HOUSING UNITS.
       (11) "QUALIFIED TAXPAYER" MEANS AN INDIVIDUAL, A PERSON, A
FIRM, A CORPORATION, OR ANY OTHER ENTITY THAT OWNS AN INTEREST,
DIRECT OR INDIRECT, IN A QUALIFIED DEVELOPMENT AND IS SUBJECT TO THE
TAXES IMPOSED BY THIS ARTICLE 22.
PAGE 50-HOUSE BILL 26-1065
      (12) "TRANSIT AND HOUSING INVESTMENT ZONE" MEANS THE AREA
DESIGNATED BY THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT IN THE
TRANSIT AND HOUSING INVESTMENT ZONE MAP PURSUANT TO SECTION
24-48.5-136.
      (13) "TRANSFEREE" MEANS A TAXPAYER SUBJECT TO THE TAXES
IMPOSED BY THIS ARTICLE 22 THAT ACQUIRES CREDITS FROM A
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY PURSUANT TO SECTION
39-22-5703 (5).
       39-22-5703. Credit against tax - affordable housing located in a
transit and housing investment zone.
      (1) FOR INCOME TAX YEARS DURING THE CREDIT PERIOD, THERE IS
ALLOWED TO ANY QUALIFIED TAXPAYER A CREDIT WITH RESPECT TO THE
INCOME TAXES IMPOSED BY THIS ARTICLE 22 IN THE AMOUNT DETERMINED
BY THE AUTHORITY PURSUANT TO THIS PART 57.
       (2) (a) DURING EACH CALENDAR YEAR OF THE PERIOD BEGINNING ON
JANUARY 1, 2027, AND ENDING ON DECEMBER 31, 2033, THE AUTHORITY
MAY ALLOCATE A CREDIT, THE FULL AMOUNT OF WHICH MAY BE CLAIMED
AGAINST THE TAXES IMPOSED BY THIS ARTICLE 22, FOR EACH INCOME TAX
YEAR OF THE SIX-YEAR CREDIT PERIOD. DURING EACH CALENDAR YEAR OF
THE PERIOD BEGINNING ON JANUARY 1, 2027, AND ENDING ON DECEMBER
31, 2033, THE AGGREGATE AMOUNT OF THE CREDITS ALLOCATED BY THE
AUTHORITY SHALL NOT EXCEED EIGHT MILLION THREE HUNDRED
THIRTY-THREE THOUSAND THREE HUNDRED THIRTY-THREE DOLLARS.
      (b) THE AUTHORITY MAY ALSO ALLOCATE ANY UNALLOCATED
CREDITS FROM THE IMMEDIATELY PRECEDING CALENDAR YEAR SO LONG AS
UNALLOCATED CREDITS DO NOT EXCEED MORE THAN HALF OF THE ANNUAL
DOLLAR LIMITS SPECIFIED IN SUBSECTION (2)(a) OF THIS SECTION, AND THESE
UNALLOCATED CREDITS ARE NOT INCLUDED IN THE ANNUAL DOLLAR LIMITS
SPECIFIED IN SUBSECTION (2)(a) OF THIS SECTION.
     (c) THE AGGREGATE AMOUNT OF CREDITS ALLOCATED BY THE
AUTHORITY IN EACH OF THE 2027 THROUGH 2033 CALENDAR YEARS MUST
NOT EXCEED THE AGGREGATE AMOUNT OF ANY CREDIT RECAPTURED OR
OTHERWISE RETURNED TO THE AUTHORITY IN THE CALENDAR YEAR.
PAGE 51-HOUSE BILL 26-1065
      (3) THE AUTHORITY MAY ALLOCATE CREDITS TO AN OWNER OF A
QUALIFIED DEVELOPMENT BY ISSUING TO THE OWNER AN ALLOCATION
CERTIFICATE. THE AUTHORITY MAY DETERMINE THE TIME AT WHICH THE
ALLOCATION CERTIFICATE IS ISSUED. THE CREDIT MUST BE IN AN AMOUNT
DETERMINED BY THE AUTHORITY, SUBJECT TO THE FOLLOWING GUIDELINES:
      (a) THE CREDIT MUST BE NECESSARY FOR THE FINANCIAL FEASIBILITY
OF THE DEVELOPMENT; AND
      (b) THE AGGREGATE SUM OF CREDITS ALLOCATED ANNUALLY MUST
NOT EXCEED THE LIMITS SET FORTH IN SUBSECTION (2) OF THIS SECTION.
      (4) IF AN OWNER OF A QUALIFIED DEVELOPMENT RECEIVING AN
ALLOCATION OF A CREDIT IS A PARTNERSHIP, LIMITED LIABILITY COMPANY,
S CORPORATION, OR SIMILAR PASS-THROUGH ENTITY, THE OWNER MAY
ALLOCATE THE CREDIT AMONG ITS PARTNERS, SHAREHOLDERS, MEMBERS, OR
OTHER QUALIFIED TAXPAYERS IN ANY MANNER AGREED TO BY SUCH
PERSONS REGARDLESS OF WHETHER ANY SUCH PERSONS ARE DEEMED A
PARTNER FOR FEDERAL INCOME TAX PURPOSES. THE OWNER SHALL CERTIFY
TO THE DEPARTMENT THE AMOUNT OF CREDIT ALLOCATED TO EACH
PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER. EACH
PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER
ADMITTED AS A PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED
TAXPAYER OF THE OWNER PRIOR TO THE FILING OF A TAX RETURN CLAIMING
THE CREDIT IS ALLOWED TO CLAIM SUCH AMOUNT SUBJECT TO ANY
RESTRICTIONS SET FORTH IN THIS PART 57.
      (5) (a)    THE  AUTHORITY MAY ALLOCATE CREDITS TO A
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY, INCLUDING THE
MIDDLE-INCOME HOUSING AUTHORITY CREATED IN SECTION 29-4-1104, WITH
RESPECT TO A QUALIFIED DEVELOPMENT THAT IS OWNED BY SUCH ENTITY.
      (b) (I) A GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY MAY
TRANSFER CREDITS THAT THE AUTHORITY HAS ALLOCATED TO IT PURSUANT
TO THIS SUBSECTION (5) TO A TRANSFEREE.
     (II) A GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY THAT
TRANSFERS A CREDIT PURSUANT TO SUBSECTION (5)(b)(I) OF THIS SECTION
SHALL INVEST IN THE RELEVANT QUALIFIED DEVELOPMENT ANY
COMPENSATION RECEIVED IN CONNECTION WITH THE TRANSFER MADE
PAGE 52-HOUSE BILL 26-1065
PURSUANT TO SUBSECTION (5)(b)(I) OF THIS SECTION AND SHALL NOTIFY THE
DEPARTMENT OF THE IDENTITY OF THE TRANSFEREE.
      (III) A TRANSFEREE TO WHICH A CREDIT IS TRANSFERRED BY A
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY PURSUANT TO THIS
SUBSECTION (5)(b) IS ENTITLED TO CLAIM THE CREDIT IN THE SAME MANNER
AND SUBJECT TO THE SAME CONDITIONS AND ALLOCATION RIGHTS AS AN
OWNER OF A QUALIFIED DEVELOPMENT TO WHICH THE AUTHORITY HAS
ALLOCATED A CREDIT PURSUANT TO SUBSECTION (3) OF THIS SECTION.
      (c) (I)    CREDITS THAT THE AUTHORITY HAS ALLOCATED TO A
GOVERNMENTAL OR QUASI-GOVERNMENTAL ENTITY PURSUANT TO
SUBSECTION (5)(a) OF THIS SECTION OR A CREDIT THAT A GOVERNMENTAL
OR QUASI-GOVERNMENTAL ENTITY TRANSFERS PURSUANT TO SUBSECTION
(5)(b) OF THIS SECTION ARE SUBJECT TO RECAPTURE IF, AS OF THE LAST DAY
OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD, THE AMOUNT OF
THE QUALIFIED BASIS OF THE GOVERNMENTAL OR QUASI-GOVERNMENTAL
ENTITY IS LESS THAN THE QUALIFIED BASIS OF THE GOVERNMENTAL OR
QUASI-GOVERNMENTAL ENTITY AS OF THE LAST DAY OF THE PRIOR TAXABLE
YEAR.
      (II)      IF A CREDIT TRANSFERRED BY A GOVERNMENTAL OR
QUASI-GOVERNMENTAL ENTITY IS RECAPTURED PURSUANT TO SUBSECTION
(5)(c)(I) OF THIS SECTION, THE GOVERNMENT OR QUASI-GOVERNMENTAL
ENTITY SHALL NOTIFY THE DEPARTMENT OF THE IDENTITY OF THE
TRANSFEREE TO WHICH IT TRANSFERRED THE CREDIT AND THE TRANSFEREE
MUST INCREASE THE TRANSFEREE'S STATE INCOME TAX LIABILITY PURSUANT
TO SECTION 39-22-5704 IN THE SAME MANNER AND TO THE SAME EXTENT AS
A PARTNER, SHAREHOLDER, MEMBER, OR OTHER QUALIFIED TAXPAYER OF AN
OWNER ALLOCATED A CREDIT PURSUANT TO SUBSECTION (4) OF THIS
SECTION.
      (6) NO CREDIT SHALL BE ALLOCATED PURSUANT TO THIS PART 57
UNLESS THE QUALIFIED DEVELOPMENT IS THE SUBJECT OF A RECORDED DEED
RESTRICTION REQUIRING THE DEVELOPMENT TO BE MAINTAINED AND
OPERATED AS A QUALIFIED DEVELOPMENT, AND IS IN ACCORDANCE WITH THE
ACCESSIBILITY AND ADAPTABILITY REQUIREMENTS OF THE FEDERAL TAX
CREDITS AND TITLE VIII OF THE "CIVIL RIGHTS ACT OF 1968", AS AMENDED
BY THE "FAIR HOUSING AMENDMENTS ACT OF 1988", 42 U.S.C. SEC. 3601
ET SEQ., FOR A PERIOD OF FIFTEEN INCOME TAX YEARS, OR A LONGER PERIOD
PAGE 53-HOUSE BILL 26-1065
AS MAY BE AGREED TO BETWEEN THE AUTHORITY AND THE OWNER,
BEGINNING WITH THE FIRST INCOME TAX YEAR OF THE CREDIT PERIOD
UNLESS CORRECTED WITHIN THE TIME THAT IS APPLICABLE TO
DEVELOPMENTS RECEIVING FEDERAL TAX CREDITS PURSUANT TO SECTION
42(h)(6)(J) OF THE INTERNAL REVENUE CODE AS APPLICABLE TO THE
COVENANT DESCRIBED IN THIS SUBSECTION (6).
      (7) THE ALLOCATED CREDIT AMOUNT MAY BE TAKEN AGAINST THE
TAXES IMPOSED BY THIS ARTICLE 22 FOR EACH INCOME TAX YEAR OF THE
CREDIT PERIOD AS SET FORTH IN SUBSECTION (2) OF THIS SECTION. ANY
AMOUNT OF CREDIT THAT EXCEEDS THE TAX DUE FOR AN INCOME TAX YEAR
MAY BE CARRIED FORWARD AS A TAX CREDIT AGAINST THE INCOME TAX
LIABILITY FOR THE THREE SUBSEQUENT TAX YEARS AND MUST BE APPLIED
FIRST TO THE EARLIEST YEARS POSSIBLE. ANY AMOUNT OF THE CREDIT THAT
IS NOT USED MUST NOT BE REFUNDED TO THE TAXPAYER.
     (8) UNLESS OTHERWISE PROVIDED IN THIS PART 57 OR THE CONTEXT
CLEARLY REQUIRES OTHERWISE, THE AUTHORITY SHALL DETERMINE
ELIGIBILITY FOR A CREDIT AND ALLOCATE CREDITS IN ACCORDANCE WITH
THE STANDARDS AND REQUIREMENTS SET FORTH IN THE ALLOCATION PLAN;
HOWEVER, THE AUTHORITY SHALL ADMINISTER THE CREDIT ALLOWED
PURSUANT TO THIS PART 57 CONSISTENTLY WITH THE CREDIT PURSUANT TO
PART 21 OF THIS ARTICLE 22 EXCEPT TO THE EXTENT THE ALLOCATION PLAN
IS INCONSISTENT WITH PART 21 OF THIS ARTICLE 22, IN WHICH CASE THE
ALLOCATION PLAN CONTROLS. NOTWITHSTANDING THE FOREGOING, ANY
COMBINATION OF FEDERAL AND STATE CREDITS, OR STANDALONE AMOUNT
OF STATE CREDITS, ALLOWED MUST BE THE LEAST AMOUNT NECESSARY TO
ENSURE THE FINANCIAL FEASIBILITY OF A QUALIFIED DEVELOPMENT.
      39-22-5704. Recapture.
       (1) AS OF THE LAST DAY OF ANY INCOME TAX YEAR DURING THE
COMPLIANCE PERIOD, IF THE AMOUNT OF THE QUALIFIED BASIS OF A
QUALIFIED DEVELOPMENT WITH RESPECT TO A QUALIFIED TAXPAYER IS LESS
THAN THE AMOUNT OF THE QUALIFIED BASIS AS OF THE LAST DAY OF THE
PRIOR INCOME TAX YEAR, THEN THE AMOUNT OF THE QUALIFIED TAXPAYER'S
STATE INCOME TAX LIABILITY FOR THAT TAXABLE YEAR MUST BE INCREASED
BY THE CREDIT RECAPTURE AMOUNT.
      (2) FOR PURPOSES OF SUBSECTION (1) OF THIS SECTION, THE CREDIT
PAGE 54-HOUSE BILL 26-1065
RECAPTURE AMOUNT IS AN AMOUNT EQUAL TO THE AGGREGATE DECREASE
IN THE CREDIT ALLOWED TO THE TAXPAYER PURSUANT TO THIS PART 57 FOR
ALL PRIOR INCOME TAX YEARS THAT WOULD HAVE RESULTED IF THE
ACCELERATED PORTION OF THE CREDIT ALLOWABLE BY REASON OF THIS
PART 57 WAS NOT ALLOWED FOR ALL PRIOR INCOME TAX YEARS WITH
RESPECT TO THE REDUCED AMOUNT OF QUALIFIED BASIS DESCRIBED IN
SUBSECTION (1) OF THIS SECTION.
      (3)   FOR PURPOSES OF SUBSECTION (2) OF THIS SECTION, THE
ACCELERATED PORTION OF THE CREDIT FOR THE PRIOR INCOME TAX YEARS
WITH RESPECT TO ANY AMOUNT OF QUALIFIED BASIS IS THE DIFFERENCE
BETWEEN:
      (a) THE AGGREGATE AMOUNT OF THE CREDIT ALLOWED PURSUANT
TO THIS PART 57, NOTWITHSTANDING THIS SUBSECTION (3), FOR THE YEARS
WITH RESPECT TO THE QUALIFIED BASIS; AND
     (b) THE AGGREGATE AMOUNT OF THE CREDIT THAT WOULD BE
ALLOWED PURSUANT TO THIS PART 57 FOR THE YEARS WITH RESPECT TO THE
QUALIFIED BASIS IF THE AGGREGATE CREDIT THAT WOULD HAVE BEEN
ALLOWABLE, BUT FOR THIS SUBSECTION (3), FOR THE ENTIRE COMPLIANCE
PERIOD WERE ALLOWABLE RATABLY OVER FIFTEEN YEARS.
     (4) IN THE EVENT THAT RECAPTURE OF ANY CREDIT IS REQUIRED IN
ANY TAX YEAR, THE RETURN SUBMITTED FOR THAT TAX YEAR TO THE
DEPARTMENT SHALL INCLUDE THE PROPORTION OF CREDIT REQUIRED TO BE
RECAPTURED, THE IDENTITY OF EACH QUALIFIED TAXPAYER SUBJECT TO THE
RECAPTURE, AND THE AMOUNT OF CREDIT PREVIOUSLY ALLOCATED TO THE
QUALIFIED TAXPAYER.
      (5) NOTWITHSTANDING SUBSECTION (1) OF THIS SECTION, CREDITS
ISSUED PURSUANT TO THIS PART 57 MUST NOT BE RECAPTURED IF A
QUALIFIED DEVELOPMENT, AFTER THE INITIAL AWARD OF CREDITS, CEASES
BEING LOCATED IN A TRANSIT AND HOUSING INVESTMENT ZONE.
      39-22-5705. Filing requirements.
      AN OWNER OF A QUALIFIED DEVELOPMENT TO WHICH A CREDIT HAS
BEEN ALLOCATED AND EACH QUALIFIED TAXPAYER TO WHICH THE OWNER
HAS ALLOCATED A PORTION OF SAID CREDIT, IF ANY, SHALL FILE WITH THEIR
PAGE 55-HOUSE BILL 26-1065
STATE INCOME TAX RETURN A COPY OF THE ALLOCATION CERTIFICATE
ISSUED BY THE AUTHORITY WITH RESPECT TO THE DEVELOPMENT AND A
COPY OF THE OWNER'S CERTIFICATION TO THE DEPARTMENT AS TO THE
ALLOCATION OF THE CREDIT AMONG THE QUALIFIED TAXPAYERS HAVING
OWNERSHIP INTERESTS IN THE DEVELOPMENT.
       39-22-5706.   Parallel credits - insurance premium taxes -
definition.
      (1) ANY TAXPAYER WHO IS SUBJECT TO THE TAX ON INSURANCE
PREMIUMS ESTABLISHED BY SECTIONS 10-3-209, 10-5-111, AND 10-6-128
AND THEREFORE EXEMPT FROM THE PAYMENT OF INCOME TAX AND WHO IS
OTHERWISE ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS PART 57 MAY
CLAIM THE CREDIT AND CARRY THE CREDIT FORWARD AGAINST THE
INSURANCE PREMIUM TAX ON ITS CALENDAR QUARTER ESTIMATED TAX
PAYMENTS MADE IN ACCORDANCE WITH SECTION 10-3-209 TO THE SAME
EXTENT AS THE TAXPAYER WOULD HAVE BEEN ABLE TO CLAIM OR CARRY
FORWARD THE CREDIT OR REFUND AGAINST INCOME TAX. ALL OTHER
PROVISIONS OF THIS PART 57 WITH RESPECT TO THE CREDIT, INCLUDING THE
AMOUNT, ALLOCATION, AND RECAPTURE OF THE CREDIT AND THE YEARS FOR
WHICH THE CREDIT MAY BE CLAIMED, APPLY TO A CREDIT CLAIMED
PURSUANT TO THIS SECTION.
       (2) FOR PURPOSES OF ADMINISTERING THIS SECTION, ANY REFERENCE
IN THIS ARTICLE 22 TO "INCOME TAX YEAR" MEANS CALENDAR YEAR.
      39-22-5707. Compliance monitoring.
       THE AUTHORITY, IN CONSULTATION WITH THE DEPARTMENT, SHALL
MONITOR AND OVERSEE COMPLIANCE WITH THIS PART 57 AND SHALL REPORT
SPECIFIC OCCURRENCES OF NONCOMPLIANCE TO THE DEPARTMENT.
      39-22-5708. Repeal.
      THIS PART 57 IS REPEALED, EFFECTIVE DECEMBER 31, 2063.
       SECTION 11. In Colorado Revised Statutes, 39-26-901, amend
(4)(b) and (4)(c); and add (4)(d) as follows:
      39-26-901. Temporary adjustment of rates of state sales and use
PAGE 56-HOUSE BILL 26-1065
taxes - refund of excess state revenues - legislative declaration -
definition - repeal.
      (4) Any temporary state sales and use tax rate reduction pursuant to
subsection (1) of this section does not affect the calculation of the amount
of:
       (b) The state sales tax increment revenue for regional tourism zones
in accordance with part 3 of article 46 of title 24; or
       (c) The aviation fund created in section 43-10-109; OR
       (d) THE STATE SALES TAX INCREMENT REVENUE FOR TRANSIT AND
HOUSING INVESTMENT AREAS IN ACCORDANCE WITH PART 4 OF ARTICLE 46
OF TITLE 24.
        SECTION 12. Appropriation. For the 2026-27 state fiscal year,
$213,349 is appropriated to the office of the governor for use by economic
development programs. This appropriation consists of $190,849 from the
general fund and $22,500 from the transit investment zones cash fund
created in section 24-46-403 (6)(a), C.R.S., and is based on an assumption
that the office will require an additional 1.0 FTE. To implement this act, the
office may use this appropriation for transit and housing investment zones.
       SECTION 13. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 57-HOUSE BILL 26-1065
the support and maintenance of the departments of the state and state
institutions.
____________________________        ____________________________
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 58-HOUSE BILL 26-1065