2018 Colorado Legislative Session Report
This report is a summary of key state bills affecting Colorado’s nonprofit sector. For more information about this report, contact Mark Turner at (303) 813-4203 or [email protected]
Special thanks to the firm of Aponté and Busam (www.aponte-busam.com) for representing us at the Capitol and to our Public Policy Committee, which provided invaluable guidance throughout the 2018 session of the Colorado General Assembly. Information about these bills is based on information provided by the offices of Colorado Legislative Council and Legislative Legal Services.
Charitable Giving, Taxes, and Trusts
SB 18-141 Income Tax Checkoff Nonprofit Donation Fund 1
Our Position: Actively Support 2
Final Status: Signed by the Governor on May 25.
Sponsors: Special thanks to Sen. Lois Court (D-Denver), and Reps. James Wilson (R-Salida) & Chris Hansen (D-Denver) for sponsoring!
Summary: Authorizes a new line on the Colorado tax form in 2020 (tax year 2019) for the Donate to a Colorado Nonprofit Fund. On this line, taxpayers can write (or type) in a nonprofit to receive a tax refund donation.
The nonprofit must be registered to fundraise (under the Colorado Charitable Solicitations Act) with the Colorado Secretary of State for at least five years and be in good standing. The program must be funded entirely by private gifts, grants, and donations rather than taxpayer dollars. The fund will only be established if sufficient funds to pay for program administration and staff are raised by September 30, 2020.3
Implications for Nonprofits: Colorado taxpayers received over $1 billion last year in tax refunds. If they donate just one percent of the amount of their refunds via the Donate to a Colorado Nonprofit Fund, this would generate more than $10 million of donations to support Colorado’s nonprofit organizations.
This fund allows taxpayers to donate to one of up to 11,000 organizations registered to fundraise in Colorado for at least five years. SB 18-141 does not affect the ability of taxpayers to donate to the 19 other tax checkoffs, or of the General Assembly to oversee the existing tax checkoff program.
HB 18-1013 Colorado Nonprofit Sustainability Act 4 Our Position: Actively Support
1 Bill: https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_141_enr.pdf 2 https://www.coloradononprofits.org/policy-updates/governor-signs-bill-authorize-donate-colorado-nonprofit-tax-checkoff- fund/may-29-2018 3 Fiscal Note - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb141_r2.pdf 4 Bill - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1013_01.pdf
Final Status: Postponed indefinitely by the House Appropriations Committee on May 10.
Sponsors: Special thanks to Rep. Alec Garnett (D-Denver) and Sen. Kevin Priola (R-Henderson) for sponsoring!
Summary: Proposes a 25% tax credit for donations up to $20,000 ($5,000 maximum credit) made between 2019 and 2022 to a Colorado nonprofit’s endowment fund.
Implications for Nonprofits: 1013 proposed an incentive for additional charitable giving to help Colorado’s nonprofits build up their reserves and be financially sustainable. From up to $12 million of tax credits, it would have leveraged up to $48 million in additional giving each year to existing and newly established endowments. 5
With federal tax reform projected to reduced charitable giving by as much as $20 billion per year nationwide, this act would have encouraged donors of all incomes to invest in sustaining the work of nonprofit organizations over the long-term and participate in planned giving. 6 Unfortunately, 1013 was not one of the new programs that received budgetary funds this year.
HB 18-1359 Removal of Threshold for Charitable Contributions 7
Position: Support
Final Status: Postponed indefinitely by the House Committee on Appropriations on May 8.
Sponsors: Special thanks to Reps. Adrienne Benavidez (D-Denver) & Dan Pabon (D-Denver) for sponsoring!
Summary: Under current law, taxpayers who take the standard deduction on their federal tax return can claim an annual state income tax deduction for charitable giving in excess of $500. At Colorado’s income tax rate, taxpayers save $4.63 on their taxes for every $100 they give. Based on 2015 data, 155,704 Colorado taxpayers claimed this deduction, giving an average of $1,562 and saving $72.32 on their taxes.8
With the passage of the federal Tax Cuts and Jobs Act, the standard deduction has nearly doubled and only 5 to 15 percent of American taxpayers are projected to itemize their federal deductions rather than 33 percent previously. As a result, these taxpayers would not be able to deduct their charitable contributions on their federal taxes. They would become eligible to take Colorado’s charitable deduction provided they give more than $500. Because federal income tax rates are much greater than Colorado’s rate, previous itemizers would receive less of a tax benefit for their charitable contributions.
5 Fiscal Note- http://www.leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1013_00.pdf 6 Webpage- https://www.coloradononprofits.org/policy-updates/colorado-nonprofit-sustainability-act/may-10-2018 7 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1359_01.pdf 8 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1359_f1.pdf As introduced, HB 18-1359 proposed allowing standard deduction filers to deduct the entire amount of their contributions. The House Finance Committee amended the bill to only allow taxpayers who give more than $500 to deduct the full amount of their annual contributions.
Implications for Nonprofits: As introduced, taxpayers would have saved $23.15 on their taxes for the first $500 of giving and 4.63% of any amounts given over $500 under HB 18-1359. This would have allowed all Colorado’s standard deduction filers to benefit from the Colorado Charitable Deduction regardless of how much or how little they give. We preferred this version of 1359 for that reason. 9
As amended, taxpayers would still have to give more than $500 to benefit from this giving incentive but they could fully deduct their contributions on Colorado taxes. By expanding the benefit of this deduction, more taxpayers would have been encouraged to increase their giving over $500. Unfortunately, budget funds were not available this year to expand Colorado’s charitable deduction.
SB 18-067 Auction Alcohol in Sealed Container Special Events 10
Position: Support
Final Status: Signed by the Governor on March 1.
Sponsors: Special thanks to Sens. Rachel Zenzinger (D-Arvada) & Kevin Priola (R-Henderson), and Reps. Tracy Kraft-Tharp (D-Arvada) & Kevin Van Winkle (R-Highlands Ranch)!
Summary: This bill allows tax-exempt organizations - including nonprofit, fraternal, religious, or philanthropic organizations, or state institutions of higher education - to auction sealed alcohol beverages for fundraising purposes at venues with liquor licenses. The organization must be eligible to apply for a special event permit, be exempted from special event permit requirements, or hold the event at a venue licensed to sell beverages for on-premises consumption. 11
Implications for Nonprofits: We supported this bill because many nonprofits auction off alcohol at their fundraising events even though Colorado law had prohibited this practice. With so many high-quality microbreweries, distilleries, and wineries in Colorado, alcohol can be a popular item with donors at fundraisers. Provided donors do not open and consume containers of alcohol on- site, we believe this legislation will help nonprofits raise more funds without significant risks to donors or nonprofit organizations.
HB 18-1004 Continue Child Care Contribution Tax Credit 12
Position: Support
Final Status: Signed by the Governor on May 30.
9 Webpage- https://www.coloradononprofits.org/policy-updates/support-expansion-colorados-charitable-deduction/may-10-2018 10 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_067_signed.pdf 11 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb067_f1.pdf 12 Bill - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1004_enr.pdf Sponsors: Special thanks to Reps. James Coleman (D-Denver) & James Wilson (R-Salida), and Sens. John Kefalas (D-Fort Collins) & Jack Tate (R-Centennial) for sponsoring!
Summary: Extends the Child Care Contribution Tax Credit through 2025. The Child Care Contribution Tax Credit allows taxpayers to claim an income tax credit of 50 percent of the value of a contribution up to $100,000 to “Accepted Child Care Centers.” The credit may be carried forward up to five years but must be used in the earliest tax year possible. 13
Accepted centers must be licensed by the Department of Human Services or registered and approved by the Department of Revenue. These facilities include child care centers, child placement agencies, foster care homes, family child care homes, residential treatment centers, day care centers, before and after school programs, and summer camps. Facilities must also care for children 12 years and younger.
Implications for Nonprofits: We supported 1004 because it incentivizes charitable giving to support child care services.14 Nonprofits run many of the licensed facilities that benefit from this policy. Child care services also benefit many nonprofit employees.
SB 18-007 Affordable Housing Tax Credit 15
Position: Support
Final Status: Signed by the Governor on May 22.
Sponsors: Special thanks to Reps. Crisanta Duran (D-Denver) & Jon Becker (R-Fort Morgan), and Sens. Jack Tate (R-Centennial) & Lucia Guzman (D-Denver) for sponsoring!
Summary: Changes the name of the Low-income Housing Tax Credit to the “Affordable Housing Tax Credit.” Extends this credit through 2024. This credit is available for developers who invest in affordable housing projects. The annual credit amount depends on the amount invested in affordable housing but cannot exceed 30% of the qualified basis of the qualified development. 16
Implications for Nonprofits: This tax credit provides incentives for developers to create affordable living spaces. Affordable housing not only benefits working families that rely on nonprofits for services, it also helps nonprofit employees live in places that are convenient for their work and lifestyle.
SB 18-088 Taxation of Retail Marijuana Sales 17
Position: Support
Final Status: Signed by the Governor on February 22.
13 https://www.colorado.gov/pacific/sites/default/files/Income35.pdf 14 Fiscal Impact- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1004_r1.pdf 15 Bill- http://www.leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_007_signed.pdf 16 Fiscal Note - http://www.leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb007_00.pdf 17 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_088_signed.pdf Sponsors: Special thanks to Sen. Bob Gardner (R- Colorado Springs) and Rep. K.C. Becker (D- Boulder) for sponsoring!
Summary: Clarifies that special districts or limited purpose governmental entities can levy taxes on retail marijuana sales if they had done so prior to July 2017. SB 18-088 also requires the governing bodies of special districts and limited purpose governmental entities to determine whether levying this tax complies with the Constitution and applicable Colorado court decisions. If additional voter approval is required, the sales tax cannot be levied until voter approval is obtained. 18
Implications for Nonprofits: 088 corrects a legislative drafting error that took away the authority of special districts like RTD, the Scientific and Cultural Facilities District, local health districts, and others to collect marijuana sales tax revenues. Marijuana tax revenues help these special districts provide services that benefit their communities as well as the nonprofits serving those communities.
SB 18-046 Special License Plate Nonprofit Donation 19
Position: Support
Final Status: Signed by the Governor on March 1.
Sponsors: Special thanks to Sen. Dominick Moreno (D-Commerce City), and Reps. Dafna Michaelson Jenet (D-Commerce City) & Faith Winter (D-Westminster) for sponsoring!
Summary: This bill authorizes a $10 increase of the minimum donation amount for each special license plate sold by the state of Colorado. Starting July 1, 2019, SB 18-046 authorizes adjustment of the donation amount annually for inflation. Currently, purchasers of license plates can choose to give to one of thirty-nine charities. 20
Implications for Nonprofits: We supported this bill because it would increase the required donation for all special license plates that benefit nonprofits. Future legislative action would not be necessary to adjust the donation amount for inflation.
SB 18-180 Colorado Trust Code 21
Position: Support
Sponsors: Special thanks to Reps. Matt Gray (D-Broomfield) & Cole Wist (R-Centennial), and Sen. Bob Gardner (R- Colorado Springs) for sponsoring!
Final Status: Signed by the Governor on April 26.
Summary: This bill harmonizes Colorado’s trust law with the Uniform Trust Code, which has been adopted by over thirty states. 22
18 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb088_00.pdf 19 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_046_signed.pdf 20 Fiscal Note - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb046_00.pdf 21 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_180_signed.pdf 22 Fiscal Note - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb180_f1.pdf
Implications for Nonprofits: We supported this bill because it makes Colorado’s trust laws more clear and consistent with common law and legal practices in other states. 23 It also ensures that trusts can benefit from innovations in state trust laws that are not part of common law.
HB 18-1195 Tax Credits for Contributions to Affordable Housing 24
Position: Support
Final Status: Postponed indefinitely on May 7 by the Senate Committee on State, Veterans, and Military Affairs
Sponsors: Special thanks to Reps. Dan Pabon (D-Denver) & Jeff Bridges (D-Greenwood Village), and Sen. Jack Tate (R-Centennial) for sponsoring!
Summary: 1195 offers a 50% tax credit for contributions to a fund specifically for the development of affordable housing. 25 Proceeds of the fund would be distributed to developers that work with organizations to build affordable housing.
The housing must be owner occupied and can be single family or multi-family. A 15-year deed restriction prohibits a low-income owner from selling to a buyer who is not low-income. Developers must show their plans for affordable housing before receiving funding
Implications for Nonprofits: We supported 1195 because it would provide additional incentives for taxpayers to donate to a fund that would benefit nonprofit organizations helping to build affordable homes for Colorado families. Despite House amendments reducing the impact of the bill on state tax revenues, 1195 did not generate necessary support to move forward in the Senate.
HB 18-1022 Revenue (DOR) Issue Sales Tax Request for Information (RFI) 26
Final Status: Signed by the Governor on March 1
Sponsors: Reps. Lang Sias (R-Arvada) & Tracy Kraft-Tharp (D-Arvada), and Sens. Cheri Jahn (U- Wheat Ridge) & Tim Neville (R-Littleton).
Summary: This bill directs DOR to issue an RFI to implement an electronic sales and use tax simplification system. The system must provide: • accurate address location information; • a single application process for sales tax licenses; • a uniform sales tax remittance form; • a single point of remittance for sales and use tax; and • a taxability matrix of each item subject to sales or use tax in state and local jurisdictions.27
23 Uniform Trust Code- http://www.uniformlaws.org/Act.aspx?title=Trust%20Code 24 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1195_ren.pdf 25 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1195_r1.pdf 26 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1022_signed.pdf 27 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1022_00.pdf
Implications for Nonprofits: If a capable vendor is selected, this system would simplify sales tax collection for businesses and nonprofits, particularly for organizations that conduct business across multiple taxing jurisdictions.
HB 18-1305 Income Tax Check-off Young Americans Financial Education 28
Final Status: Signed by the Governor on May 4
Sponsors: Reps. James Coleman (D-Denver) & Patrick Neville (R-Castle Rock), and Sen. Tim Neville (R-Littleton)
Summary: This bill creates a voluntary contribution designation on the Colorado tax return to benefit the Young Americans Center for Financial Education. 29
Implications for Nonprofits: This adds the Young Americans Center for Financial Education to the list of funds designated to appear on the voluntary contributions schedule on Colorado’s tax return for the next five years.
SB 18-070 Church Property Tax Exemption 30
Final Status: Postponed indefinitely by the House Committee on State, Veterans, and Military Affairs on April 4.
Sponsors: Sen. Tim Neville (R-Littleton) & Reps. Timothy Leonard (R-Evergreen) & Stephen Humphrey (R-Severance)
Summary: This bill allows churches leasing property solely and exclusively for religious purposes to be exempt from paying state and local taxes on their property. It removes the requirement that property must be owned by a church to be eligible for exemption. 31
Implications for Nonprofits: For the first time, churches would have been exempt from taxes on property they use for religious purposes but do not own. Nonprofits and educational institutions could only apply for exemption from taxes on property they own.
Proponents argued that tax-exemption should apply to property used for religious purposes even if it is only leased by the church. Also, this would help newly-formed churches save money until they can afford to buy property.
SB 18-070 would also have reduced local property tax revenues supporting public services. For this reason, 070 did not generate sufficient support to move forward in the House.
HB 18-1291 Sunset Conservation Easement Oversight Commission 32
28 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1305_signed.pdf 29 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1305_00.pdf 30 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_070_ren.pdf 31 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb070_f1.pdf 32 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1291_signed.pdf
Final Status: Signed by Governor on May 29
Sponsors: Special thanks to Reps. Faith Winter (D-Westminster) and Dan Thurlow (R-Grand Junction), and Sen. Jerry Sonnenberg (R-Sterling)
Summary: 1291 moves this commission and credit certification program to the newly created Division of Conservation in the Department of Regulatory Agencies (DORA). The division is a Type 2 Agency that can exercise its powers, duties, and functions independent from DORA. The program and the commission are continued through July 1, 2019. 33
1291 also does the following: • reduces commission membership from nine to seven members; • requires an online, publicly available list of organizations that have applied for certification and their application status; • authorizes sharing of publicly available information on easement with a third-party vendor to create a registry and a map; • authorizes expedited certification of entities accredited by national land conservation organizations; • authorizes a streamlined, low cost process for easement holders that focuses on stewardship capabilities for those who do not intend to accept new easement donations; • requires reviewing the adequacy of program fees to pay for administrative costs but not be a disincentive for creation of new conservation easements; • requires adoption of best practices used by entities that regularly review conservation easement transactions; and • requires the division to create a working group to develop recommendations by December 2018 for the following: o An alternative method to the current appraisal process for baseline property value; o A process for a court to extinguish a conservation easement; o A process to provide retroactive tax credits to taxpayers whose credits were denied in whole or part between 2000 and 2008; o A form to inform landowners of the legal consequences of terminating an easement.
Implications for Nonprofits: 1291 continues the conservation easement program and makes reforms to help increase transparency, streamline administration of the program and address past abuses of the program. The working group should provide additional recommendations to strengthen the program. Continuing the program not only incentivizes land donations for public use, but it also supports the work of many nonprofits that conserve land for uses that benefit the public.
HB 18-1255 Childhood Cancer Awareness Special License Plate 34
Final Status: Signed by the Governor on May 22
33 Fiscal Note-https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1291_r1.pdf
34 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1255_signed.pdf Sponsors: Reps. Crisanta Duran (D-Denver) & Rep. Terri Carver (R-Colorado Springs), and Sens. John Cooke (R-Greeley) & John Kefalas (D- Fort Collins)
Summary: 1255 creates a childhood cancer awareness license plate. A person can purchase this plate by paying $50 and submitting a certificate confirming a donation to an organization chosen by DOR that assists children with cancer. The organization may choose a minimum donation amount that cannot be lower than $25 or higher than $75. A new organization will be chosen every five years. 35
Implications for Nonprofits: Increases donations to a nonprofit organization that assists children in Colorado who have cancer and their families.
Boards, Volunteers, and Employees
HB 18-1298 Colorado Secure Savings Plan 36
Position: Support
Final Status: Postponed indefinitely by the Senate Committee on State, Veterans, and Military Affairs on May 1
Sponsors: Special thanks to Reps. Brittany Pettersen (D-Lakewood) & Jeff Bridges (D-Greenwood Village), and Sens. Nancy Todd (D-Aurora) & Kerry Donovan (D-Wolcott) for sponsoring!
Summary: 1298 would establish a board of trustees to study the feasibility of creating a Colorado Secure Savings Plan for private sector employees. The plan would consist of an Individual Retirement Account (IRA) provided by one or more financial services vendors approved by the board. Participating employees would make contributions to the IRA through automatic payroll deductions. Money received from enrollees, participating employers, or other grants, donations, or loans would go into the Colorado Secure Savings Plan Fund, a trust established for the plan.
The board must use an open bid process to engage one or more financial services vendors to provide and bear all financial responsibility for a low-risk investment portfolio and/or a target date fund. Before selecting a vendor, the board must conduct market and financial analyses and receive legislative approval for plan implementation. 37
Implications for Nonprofits: We supported this bill because the secure savings plan would have benefitted employees of nonprofits and businesses unable to offer retirement savings options to their employees currently. 38
SB 18-214 Request Self-Sufficiency Waiver Medicaid Program 39
Position: Oppose
35 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1255_00.pdf 36 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1298_ren.pdf 37 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1298_r1.pdf 38 Bell Policy Center webpage- http://www.bellpolicy.org/2018/04/05/colorado-secure-savings-plan-hb1298/ 39 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_214_01.pdf
Final Status: Postponed indefinitely by the Senate Committee on Health and Human Services on March 29.
Sponsors: Sen. Larry Crowder (R-Alamosa) and Rep. Susan Beckman (R-Littleton)
Summary: This bill directs the Department of Health Care Policy and Financing (HCPF) to request a federal waiver to implement self-sufficiency requirements for Medicaid eligibility. This includes: • verifying income monthly to maintain eligibility; • requiring able-bodied adults to become employed, actively seek employment, attend job or vocational training, or volunteer at a nonprofit organization for at least 20 hours per week unless excepted • establishing a lifetime limit of 5 years for Medicaid enrollment unless excepted
The bill authorizes HCPF to: • prohibit enrollment in Medicaid if a person fails to report a change of family income or makes a false statement regarding compliance with work requirements; • impose meaningful copayments to deter non-emergency use of emergency departments and the use of ambulance services for non-emergency transportation or when not medically necessary
Implications for Nonprofits: SB 18-214 requires most Medicaid recipients to volunteer for 20 hours per week if they are not employed. The bill does not provide additional resources to help nonprofits manage this significant increase in volunteers. Because Medicaid recipients are volunteering to maintain benefits, rather than supporting a cause, this could make placement and management of volunteers more challenging for many nonprofits. 40
In addition, this bill would place an unnecessary burden on families that benefit from Medicaid. Most recipients are already working or seeking employment and these additional reporting requirements could put their coverage in jeopardy.
HB 18-1324 Codify Governor’s Commission on Community Service 41
Position: Support
Final Status: Signed by the Governor on April 30
Sponsors: Special thanks to Millie Hamner (D-Dillon) and Sen. Kevin Lundberg (R-Berthoud) for sponsoring!
Summary: Initially established by the Governor’s executive order, 1324 re-establishes this commission in Colorado law. The commission’s purpose is to allocate state funds to support community service, volunteerism, mentoring, and literacy in the state. The commission is authorized to receive gifts, grants, and donations.
40 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb214_00.pdf 41 Bill- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1324_signed.pdf The commission consists of the commissioner of education and up to nineteen members appointed by the Governor representing community-based organizations, local governments, labor organizations, service program participants, businesses, persons with expertise in youth development, senior involvement, and other areas related to the commission’s programs. 42
Implications for Nonprofits: We supported this bill because authorizing the commission in statute ensures continuity in the program and allows the commission to receive private grants and donations.
HB 18-1303 Youth Sports Coach Exempt Employment Security Act 43
Final Status: Signed by the Governor on June 6
Sponsors: Reps. Cole Wist (R-Centennial) & Alec Garnett (D-Denver), and Sen. Jack Tate (R- Centennial)
Summary: The bill exempts nonprofit youth sports coaches from the definition of employment under the “Colorado Employment Security Act” if they sign a written agreement and meet the definition of an independent contractor.
Implications for Nonprofits: This helps nonprofit youth sports organizations to more efficiently run their organizations without fear of employment audits or paying unemployment benefits for coaches who are not actual employees. 44
HB 18-1256 Sunset Continue Civil Rights Division and Commission 45
Position: Support
Final Status: Signed by Governor on May 22
Sponsors: Special thanks to Speaker of the House, Crisanta Duran (D-Denver), Rep. Leslie Herod (D-Denver), Sen. Bob Gardner (R-Colorado Springs) for sponsoring!
Summary: 1256 continues the civil rights division and commission through 2027: • Requires the Colorado auditor to conduct a performance audit of the division and commission in December 2019 and 2024; • The commission still consists of seven commissioners as follows: o Requiring one commissioner to represent businesses with 5 to 50 employees and another to represent businesses with more than 50 employees; o Requiring one commissioner to represent business and industry and another to represent employee associations for workers; o Two commissioners representing employee associations for workers; and o One commissioner representing the community at large.
42 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1324_f1.pdf 43 Bill - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1303_signed.pdf 44 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1303_00.pdf 45 Bill- http://www.leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1256_signed.pdf • The commission must include: o Four members from groups who might experience discrimination based on disability, race, creed, color, sex, sexual orientation, national origin, ancestry, marital status, religion, or age; o No more than six members affiliated with a major party and no more than three from the same political party. Members must be affiliated with a major party, or unaffiliated, for at least two years following appointment o Geographic representation where practicable; • If the Senate rejects an individual nominated by Governor for appointment, that nominee is not eligible to be appointed for two years. However, the rejected nominee may be nominated for a future opening that occurs after the original opening is filled.
Implications for Nonprofits: The civil rights commission and division manage an important administrative process to protect the civil rights of Coloradans. 1256 continues these protections through 2027 and makes changes to ensure the views of various key stakeholders are part of how the commission makes decisions. 46
Economic Development
SB 18-005 Rural Economic Advancement of Colorado Towns 47
Position: Support
Final Status: Signed by the Governor on March 22
Sponsors: Special thanks to Sens. Kerry Donovan (D-Wolcott) & Ray Scott (R-Grand Junction), and Rep. Dylan Roberts (D-Steamboat Springs) for sponsoring!
Summary: Authorizes the Department of Local Affairs (DOLA) to provide non-monetary economic assistance to rural communities experiencing significant economic events that have caused substantial job loss. Rural means a county of fewer than 50,000 residents or a municipality with fewer than 20,000 residents if not contiguous to a larger municipality.
If practicable, DOLA will coordinate non-monetary resources and assistance from all state agencies, including job training, workforce development, technical assistance, and other non-monetary resources, to the rural community experiencing an event. 48
Implications for Nonprofits: We supported this legislation because it increases resources available to rural communities to create jobs and increase economic development after significant economic events. The legislation helps align grants with local needs and supports activities of nonprofits, for- profits, and local governments.
HB18-1190 Modify Job Creation Main Street Revitalization Act 49
46 Fiscal Note- http://www.leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1256_00.pdf 47 Bill - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_005_signed.pdf
48 Fiscal Note- https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_sb005_f1.pdf 49 Bill - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/2018a_1190_signed.pdf Final Status: Signed by the Governor on May 30.
Sponsors: Reps. Daneya Esgar (D-Pueblo) & Hugh McKean (R-Loveland), and Sens. Jack Tate (R- Centennial) & Leroy Garcia (D-Pueblo)
Summary: This bill makes several modifications to the historic preservation tax credit established by the Colorado Job Creation and Main Street Revitalization Act including: • Extending the credit to tax years 2020 through 2029; • Removing residential projects from being subject to the $10 million annual cap; • Requiring the $10 million to be distributed evenly between commercial projects with costs up to $2 million or greater than $2 million; • Charging a $500 fee for projects for tax credits of $250,000 or more for commercial properties and $250 for tax credits under $250,000; • Requiring applications to be reviewed in the order received rather than by a lottery process; • Changing the minimum amount of expenditures for the tax credit from 25 percent or the original owner’s price of the building less the value of land to at least $20,000; and • Increasing the tax credit to 35 percent of qualified costs in rural areas. 50
Implications for Nonprofits: This bill allows for nonprofits across Colorado to preserve, conserve, and/or revitalize historic properties, not only maintaining Colorado’s history but giving opportunities for community and economic development.
50 Fiscal Note - https://leg.colorado.gov/sites/default/files/documents/2018A/bills/fn/2018a_hb1190_r1.pdf