BOMA Denver | 2011 Legislative session

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2011 Legislative Session

The gavel slammed down on the 2011 Colorado legislative session on May 11, 2011 ending the 120 day Session of the 68th General Assembly. Republicans controlling the House and Democrats the Senate proved an effective method of disposing of extreme bills. Legislators were forced to moderate and find compromise on many pieces of legislation. However, the split chambers ensured partisan bickering over big ticket items including the budget and redistricting.

The split chambers definitely proved beneficial to the commercial real estate industry, setting the stage for a bit calmer session than in recent years. BOMA met a number of times with the county assessors to address concerns with SB 11-119, concerning the disclosure of income information by commercial property owners in a property tax appeal, ultimately producing a bill that should help streamline the appeals process and provide helpful information to both the assessor and the property owner.

SB 130 concerning disclosure of building energy performance sponsored by Senator Johnston was introduced early in the session but did not get heard in committee until the last couple days of the session. This bill, which was opposed by BOMA, died in committee. It would have required certain utilities to maintain energy consumption data for all commercial buildings and a commercial building's owner and the utility are required to upload the energy consumption data to EPA’s portfolio manager. Unfortunately, an attempt to appeal a bill passed last year regulating sprinkler fitters failed to make of the Senate Appropriations Committee (after passing through the House), even though it had a positive fiscal note, proving that the divided government while usually helpful, can also make it more difficult to pass desirable legislation. A bevy of energy-related bills that would have adversely affected the industry were also introduced this year, but none of them made it to the Governor’s desk.

Issues we had a much-appreciated reprieve from this year include construction defects, elevator legislation and retainage (although a bill did pass addressing retainage on public project only) to name a few. All in all the 2011 Legislative Session was quite successful for BOMA and the industry as a whole.

SB 11-050 VALUE OF CONDEMNED CONSERVATION EASEMENT (Roberts—Gerou)
The bill creates the 12-member Condemnation of Conserved Property Task Force. The task force will meet during the interim to study the valuation of property being condemned that is subject to a conservation easement. Appointments to the task force will be made by June 15, 2011. The task force will hold at least four public meetings, the first of which will be conducted by August 2, 2011. The task force will submit a written report of its findings and recommendations to the Agriculture, Natural Resources, and Energy and Local Government committees of the Senate and the Agriculture, Livestock, and Natural Resources and Local Government Committees of the House of Representatives by October 17, 2011. Members of the task force will serve without compensation and shall not be entitled to reimbursement for expenses.

SB 11-119 APPEAL VALUATION COMMERCIAL REAL PROPERTY (Guzman—Pabon)
This bill requires any petitioner appealing a valuation of rent-producing commercial real property to the Board of Assessment Appeals (BAA) to provide to the County Board of Equalization (CBE), or the Board of County Commissioners (BCC) in the case of an abatement denial, the following information:

• detailed actual annual rental income;
• tenant reimbursements;
• itemized expenses;
• rent roll data as specified.
• all of the above information must be provided for two full years, including the base year for the relevant property tax year.

Petitioners will be notified of their obligation to provide this information when they receive their CBE determination. The bill requires the petitioner to provide this information to the CBE or the BCC within 90 days after the appeal has been filed with the BAA. The accessor, CBE or BCC as applicable, must, upon request of the petitioner provide to a petitioner who has filed an appeal not more than 90 days after receipt at petitioner’s request, the following information:

• all of the data used by the county in calculating the value of the property, including the capitalization rate for the property
• the names of any commercially available and copyrighted publications used in calculating the value of the property.

The bill ends the accrual of interest on the underlying property tax obligation if the petitioner fails to provide this information by the deadline. If a petitioner fails to provide the required information by the specified deadline, the bill authorizes the county to move the BAA to compel disclosure and issue appropriated sanctions as necessary. If an order compelling disclosure is issued by the BAA and the petitioner still fails to comply, the BAA may dismiss the action, or enter a judgement by default against the petitioner.

The bill specifies that any information provided by a petitioner constitutes proprietary information that relates specifically to the valuation of the taxpayer's property and is not public record. The party providing the information must redact all confidential information. The bill specifies that such information may only be used by the BAA, the CBE, the BCC or a person hired to appraise the subject property.

Position: Amend
Outcome: Successfully amended; Signed by Governor 4/17/11

SB 11-130 TRANSPARENCY BUILDING ENERGY PERFORMANCE (Johnston—Kerr A.)
On and after January 1, 2012, this bill requires all utilities with at least 40,000 customers to maintain energy consumption data for all commercial buildings served by the utility. Beginning January 1, 2013, a commercial building's owner and the utility are required to upload the energy consumption data to a portfolio manager maintained by the United States Environmental Protection Agency (EPA) for the purpose of generating an energy performance rating. Associated costs incurred by the utility may only be recovered from customers that receive energy performance ratings. The Colorado Public Utilities Commission (PUC) is authorized promulgate rules in order to facilitate this process. Owners or agents of commercial buildings are required to disclose the building's energy performance rating to purchasers or lessees at the time of conveyance and, upon request, to prospective purchasers or lessees. This disclosure is required by the following dates:

• January 1, 2012, for commercial buildings larger than 50,000 square feet; and
• January 1, 2013, or all commercial buildings, regardless of size.

Finally, the bill specifies that a person supplying false information related to the disclosure of an energy performance rating commits a Class 1 misdemeanor. The bill also authorizes the Real Estate Commission in the Department of Regulatory Agencies to develop standardized forms for energy performance ratings disclosures.

SB 11-131 COLORADO SMART GRID TASK FORCE RECOMMENDATIONS (Williams S.—Solano)
SB 10-180, adopted in the 2010 legislative session, created an interim task force to study issues related to the development of a smart energy grid in Colorado and to make recommendations for future legislation. This bill, implements those recommendations through three separate state agencies.

First, the bill directs the Division of Employment and Training in the Department of Labor and Employment to study the scope, magnitude, and impact of the development of the smart grid on jobs in Colorado. In collaboration with the Department of Higher Education (DHE), the division is also required to identify public-private partnerships to fund programs to support the technical skills necessary to deploy a smart grid in Colorado. Finally, the division is tasked with producing and delivering a report of its findings by January 20, 2012, to the Governor and the General Assembly. Funding for these tasks is to come from gifts, grants and donations received by the Governor's Energy Office (GEO), and is subject to annual appropriation by the General Assembly. If by June 1, 2011, the GEO has not received sufficient funds to support this study, the division is relieved of its obligations under the bill and all moneys received to that point are returned. Second, the bill directs the GEO to establish an independent clearinghouse of information for consumers. This information is intended to supplement information provided by utilities through existing demand-side management programs.

Third, the bill creates a smart grid division within the Office of Economic Development and International Trade (OEDIT) to promote entrepreneurship, technology transfers, and other economic development efforts related to the smart grid. Division operations are to be funded through gifts, grants and donations from public or private sources, that are subject to annual appropriation by the General Assembly.

SB 11-179 WORKER INDENTIFICATION OFF-SITE WORK (Carroll)
This bill allows an employee working at an off-site premises to show the custodian of the premises an employer-issued identification card rather than a government-issued identification card to verify the employee's identity. If the employee has an employer-issued identification card, the custodian may require the employee to surrender it while the employee is on the premises, but cannot require the employee to surrender his or her government-issued identification card. An off-site premises is defined as a building or property that is not owned, leased, operated, or otherwise under the control of the employer, including a commercial building, other than a federal, state, or local government building, or a multi-residential property. The bill is effective July 1, 2011.

SB 11-207 REGULATE ROOFERS AND ROOFING CONTRACTORS (Tochtrop)
The bill requires residential roofers, master roofers, and roofing contractors who perform roofing work that exceeds $1,000 in cost to obtain a registration from the division of registrations (division) in the department of regulatory agencies in order to perform roofing work in this state on or after March 1, 2012. The director of the division (director) is to issue:

• A "residential roofer" registration to an individual or sole proprietorship who performs roofing work only on residential property;
• A "master roofer" registration to an individual or sole proprietorship who performs roofing work on commercial property or both commercial and residential property; and
• A "roofing contractor" registration to a roofing contractor business that employs at least one full-time registered roofer, permitting the roofing contractor to perform roofing work only on the type of property on which the employed registered roofer is permitted to perform roofing work.

To receive a registration, an applicant must pay the required fee, pass a nationally recognized examination approved by the director, submit proof of minimum general liability coverage, and post a bond of at least $25,000 if performing residential roofing work only and at least $100,000 if performing commercial roofing work. The bill permits the director to issue a provisional registration to a residential or master roofer who has not yet passed the examination and who applies for a registration on or after March 1, 2012, but prior to a date determined by the director. The roofer who receives a provisional registration must pass the examination by the date determined by the director, and failure to do so automatically invalidates the registration.

A registered residential roofer, master roofer, or roofing contractor is required to provide a written contract to clients before performing any roofing work, and the contract must contain certain minimum information, such as the scope of roofing services to be performed; the dates and costs of the services; the roofing contractor's contact information, registration number, and type of registration; and the name of the roofing contractor's surety and liability insurer. Contracts also must contain a rescission clause allowing the client to rescind the contract and obtain a full refund of any deposit within 72 hours after entering the contract. Registered roofers and roofing contractors are prohibited from advertising or promising to waive or pay an insurance deductible applicable to a claim for coverage under a property or casualty insurance policy for roofing work on residential property and are subject to claims for damages resulting from a violation of the prohibition. Additionally, an insurer is not bound by a registered roofer or roofing contractor's estimate of roofing work costs if the roofer or roofing contractor promises to waive an applicable deductible. Residential property owners who enter into a contract for roofing work with a registered roofer or roofing contractor, the payment for which is to be made from a property or casualty insurance policy covering the property, may cancel the contract within 72 hours after receipt of notice from the insurer that the claim is denied. The property owner must give a written cancellation notice to the roofer or roofing contractor, and the roofer or roofing contractor must return any payments or deposits to the property owner within 10 days after the contract is canceled.
The regulation of roofing contractors is subject to sunset review and repeal on September 1, 2017.

HB 11-1115 PUBLIC ENTITY CONSTRUCTION RETAINAGE (Priola—Tochtrop)
This bill sets payment standards for construction contracts between contractors and public entities with contracts exceeding $150,000 and reduces the amount that may be withheld from a contractor to ensure that work is satisfactorily completed. Under current law, 10 percent of the contract amount is retained through the first half of the project. After the project reaches 50 percent completion, the state releases remaining installment payments without holding retainage, provided it determines that satisfactory progress is being made on the work. This bill reduces the amount of retainage held to 5 percent of the total project and removes the timing restrictions. Retainage deposits and contract balances for completed work must also be paid within 45 days of occupancy or use. A public entity may retain double the amount of moneys necessary to complete or correct any work performed by a contractor that is unsatisfactory, for up to 30 days after the work is completed.

HB 11-1120 REPEAL REGISTRATION OF SPRINKLER FITTERS (Gerou—Roberts)
House Bill 10-1241, a bill passed during the 2010 legislative session, created a registration program for sprinkler fitters in the Division of Fire Safety in the Colorado Department of Public Safety. A sprinkler fitter is a person authorized to work on fire suppression systems. This bill requires sprinkler fitters to register with the division by July 1, 2011. It also requires sprinkler fitters to complete 8,000 hours of appropriate training and 700 hours of additional education prior to registration with the division. HB 11-1120 repeals the registration requirement and program. Although we successfully moved the bill through the House, we were not able to pass the bill out of Senate Appropriations.

HB 11-1199 LIMIT GOVERNMENT FEE INSTALL SOLAR ENERGY PANEL (Gardner B.—Mitchell)
Current law, set to expire on July 1, 2011, prohibits municipalities and counties from charging a permit fee in excess of $500 for a residential application or $1,000 for a nonresidential application to install an active solar energy device or system. Following the expiration of local permit fee limits, local governments may set fees for solar installations based on actual costs or any other lawful method.

This bill extends the sunset date for statutory limits on solar device fees to July 1, 2018. Local limits of $500 for residential and $1,000 for nonresidential applications are extended. Additionally, state government is prohibited from charging fees greater than $500 for a residential application or $2,000 for a nonresidential application. The bill specifies that fee limits apply to permits, plan review, or other fees. State or local government agencies are permitted to charge the actual cost to review plans and issue a permit if a subject solar device produces the equivalent of at least 2 megawatts of direct current electricity. Finally, the bill requires governmental agencies to itemize all fees and taxes assessed for a solar device application.

The bill creates the Colorado Construction Notice and Lien Review Committee. The committee will consider and make recommendations to the General Assembly regarding labor and materials notice requirements at construction sites. The nine-member committee will include appointments made by: the President of the Senate; the Speaker of the House of Representatives; the Minority Leader of the Senate; the Minority Leader of the House of Representatives; and the Governor.

Appointments will be made by July 1, 2011. Persons making committee appointments shall ensure that representatives from the following industries and occupations are appointed to the committee: general contractors; subcontractors; title companies; the construction equipment industry; commercial developers; homebuilders; persons familiar with the Colorado lien laws; and material suppliers. The committee shall meet at the State Capitol Building at least six times during the interim and will report its findings in writing to the Business, Labor, and Technology Committee of the Senate and the Economic and Business Development Committee of the House of Representatives prior to commencement of the 2012 legislative session.

HB 11-1026 STORM WATER MANAGEMENT SYSTEM ADMINISTRATOR (Gerou—Jahn)
The bill, authorizes the Department of Public Health and Environment, Water Quality Control Division (WQCD), to designate one or more nonprofit storm water management system administrators to assist in state compliance with the federally mandated National Pollutant Discharge Elimination System (NPDES). Storm water management system administrators are required to demonstrate to state water quality regulators that they are sufficiently qualified and capable of enforcing appropriate water quality standards, with a minimum one-year track record of implementing a program prior to application. Audits conducted by nonprofit storm water management system administrators are open to inspection by state regulators but are privileged from other disclosure if corrective action is taken within the time required by the storm water permit. The bill provides for revocation of storm water management system administrator status if the state finds deficiencies in a nonprofit's program. A representative of the WQCD may sit on the board of a nonprofit storm water management system administrator. For entities holding a municipal separate storm sewer system (MS4) permit, including state and local agencies, the bill allows MS4s to review audits in their jurisdiction and to use those audits as part of its own storm water permit compliance plan. As amended, the bill authorizes the department to expend moneys from the Water Quality Improvement Fund to provide grants for storm water management best practices training.

HB 11-1047 COMMERCIAL PROPERTY IN NEW ENERGY IMPROVEMENT DISTRICTS (Jones—Schwartz)
The bill expands the scope of the new energy improvement program established in 2010 by making commercial buildings, including buildings owned or used by nonprofit entities, eligible to be included in the district.

HB 11-1050 BOILER INSPECTION REGULATION (Soper—Tochtrop)
The bill makes technical changes to the state's boiler inspection laws, administered by the Department of Labor and Employment in the Division of Oil and Public Safety. The bill defines the position of chief boiler inspector, changes provisions related to the duration and display of boiler inspection certificates, and adjusts the proration of boiler inspection fees.

HB 11-1066 DUE PROCESS PRIOR TO GOVERNMENT TAKING (McKinley)
The bill reinforces a property owner's right to procedural due process in eminent domain proceedings. Specifically, the bill prohibits governmental takings of:

• livestock without compensation;
• airspace up to 500 feet above real property by publicly owned aircraft; and
• seepage water that has been used for irrigation purposes continuously by a landowner for at least 25 years.

The bill also reinforces the requirement that a person authorized to take such property must follow applicable court procedures required by statute.

HB 11-1113 IMPACT FEES TRANSPARENCY (Holbert—Foster)
The bill requires local governments to publish on their official web site certain information regarding the collection of land development impact fees. Local governments must update their web site at least once annually to show an accounting of impact fees collected, the accounts into which fees are deposited, the disbursal of funds from these accounts, and any interest accrued. The bill applies to the 2011 and subsequent fiscal years.

HB 11-1130 COMMODITY METALS TRANSACTIONS VIOLATIONS (Priola—Heath)
This bill addresses commodity metals sales transactions. Specifically, it:

• no longer allows a seller to verify his or her identity with an identification document that does not contain a picture;
• requires buyers to sign up with and properly use the national scrap theft alert system maintained by the Institute of Scrap Recycling Industries;
• allows buyers to pay sellers in cash for any transaction of $300 or less;
• requires payment by check for transactions over $300 unless payment is made through a process in which a picture is taken of the seller;
• requires buyers to take a photograph or video recording of the seller and merchandise in each transaction and to keep such photograph or recording for 180 days;
• removes the requirement that buyers hold commodity metals purchases separate from other inventory for five working days;
• newly applies regulation of commodity metals to purchases of less than 25 pounds;
• clarifies that commodity metals do not include precious metals such as gold, silver, or Platinum, which was language requested by CPBA
• creates and provides direction for the work of the Commodity Metals Theft Task Force, which is repealed July 1, 2016.

HB 11-1132 ON-BILL ENERGY EFFICIENCY IMPROVEMENT FINANCING (Lee)
Under current law, public electric or natural gas utilities are not allowed to cover the up-front costs of energy efficiency improvements to real property and have property owners repay them over time using a meter conservation charge on their utility bills. This bill authorizes such on-bill financing. Specifically, the bill:

• authorizes public utilities to enter into on-bill financing agreements with residential customers;
• requires public utilities to perform energy audits that include an estimate of the costs and expected savings from energy efficiency improvements,
• specifies limitations and requirements for an on-bill financing agreement;
• allows public utilities to disconnect utility service if a customer fails to pay the meter conservation charge;
• requires public utilities to file on-bill financing agreements with the appropriate county clerk and recorder; and
• allows public utilities to count energy savings from on-bill financing toward compliance with mandated demand-side management goals.

HB 11-1146 DEFINE AGRICULTURAL LAND FOR PROPERTY TAX (Massey—Steadman)
Under current law, residential property on agricultural land is assessed at the residential assessment rate. However, the land underneath it is classified as agricultural, and is assessed and valued as such. This bill amends the definition of "agricultural land" to exclude up to two acres of land associated with residential improvements located on the land unless the residence is "integral to an agricultural operation" conducted on the land. The bill affects property taxes starting in property tax year 2012. A residential improvement is “integral” to an agricultural operation if an individual occupying the residential improvement either regularly conducts, supervises, or administers material aspects of the agricultural operation or is the spouse or a parent, grandparent, sibling, or child or the individual. The bill also authorizes taxing districts to obtain voter approval to retain and spend any revenues realized in excess of TABOR limits as a result of this legislation.

HB 11-1202 APPROPRIATIONS FOR CHANGE ORDER PRIOR TO WORK (Labuda—Tochtrop)
This bill requires contracts for public works projects to include a clause stating that appropriations must be available to the public entity prior to beginning any work under a change order. The bill applies to contracts entered into on or after January 1, 2012.

HB 11-1220 ACCELERATE URBAN TRANSPORTATION PROJECTS FOR ECONOMIC DEVELOPMENT (Beezley—Delgrosso)
The bill provides a mechanism to divert an increment of state sales tax revenue to fund a portion of state transportation projects. Transportation project infill zones are authorized to help complete funding for certain state highway projects in undeveloped and underdeveloped areas. Under the bill, a transportation project funded by a transportation project infill zone is eligible for state sales tax increment financing. Local governments create a transportation project infill zone by identifying a transportation project that:

• is adjacent to or within undeveloped or underdeveloped land;
• involves improvements to the state highway system within the scope of a project approved for, or conditioned upon approval in, the Statewide Transportation Improvement Program;
• will accelerate commercial development in the infill zone;
• is eligible to receive federal highway matching funds; and
• does not require the exercise of condemnation powers.

Local governments may apply individually or collectively to the state’s Office of Economic Development (OED) and Economic Development Commission (EDC) for approval of a transportation project, including the designation of the associated transportation project infill zone. An application must include a description of the project, a defense of the criteria above, a cost estimate and funding plan, and an application fee if required by the OED. The OED reviews projects and makes a recommendation within 60 days of receiving an application, the EDC reviews the OED recommendation and holds a hearing within 90 days of receipt. The EDC makes a final decision to approve or disapprove the transportation project within 30 days after the hearing.

Local governments that build an approved transportation project get to keep 50 percent of the incremental state sales tax for up to 15 years following the completion of the project. The bill makes provisions for local government bonding against the state sales tax increment. The local government is required to produce an annual report including tax increment collections and construction status.

The Department of Revenue sets the base year revenue and thereafter acts as a collecting agent for state sales taxes. To simplify the collection process, the department may compel businesses in the infill zone to file sales taxes electronically. The department is charged with distributing state sales tax revenue to local governments and developing appropriate forms, lists, and procedures. The department and OED are required to prepare an annual report to various committees of the General Assembly. A post-enactment review of the bill's implementation is to be completed five years after the bill takes effect.

HB 11-1228 ECONOMIC DEVELOPMENT THROUGH DISTRIBUTED GENERATION (Solano—Schwartz)
This bill directs the Office of Economic Development (OED), by July 1, 2011, to commission a study of the potential economic benefits to increasing the amount of distributed generation (DG) within the state's renewable portfolio standard (RPS). Specifically, the OED would contract with a private analyst to look at additional, market-based incentives to promote DG, and the potential new job and economic development that these incentives could provide. The bill specifies the structure of the study, and various elements that must be included in the final report. The study is to be funded through gifts, grants, and donations. A report is due to the business affairs committees of the General Assembly by December 15, 2011. The bill is repealed on July 1, 2012.

HB 11-1263 BUSINESS PERSONAL PROPERTY TAX EXEMPTION (Priola—Scheffel)
Under current law, the property tax exemption for business personal property on a single personal property schedule is $5,500 for property tax years 2011 and 2012, $7,000 for property tax years 2013 and 2014, and an inflation-adjusted amount every two years thereafter. This bill increases the exemption for property tax years 2013 and 2014 to $14,000, which in turn increases the future inflation-adjusted amount of the exemption. For property tax years 2011 through 2021, the bill also caps a portion of the business personal property tax liability of a state assessed public utility at the actual value of the public utility's operating property and plant for the 2010 property tax year, plus an annual growth factor. The 2010 actual value is defined as the base year. The growth factor is set at 2.0 percent of the base valuation for each of the first five property tax years and 1.0 percent of the base valuation for the last five property tax years.

SB 11-026 NEW BUSINESS PERSONAL PROPERTY TAX EXEMPTION (Scheffel—Holbert)
The bill exempts from property tax an increasing percentage of all business personal property first used in a business in future property tax years. The exemption percentages, determined by the year in which the property is first used, are as follows:

• 25 percent in property tax years 2013 and 2014;
• 50 percent in property tax years 2015 and 2016;
• 75 percent in property tax years 2017 and 2018; and
• 100 percent in property tax years 2019 and thereafter.

The percent exempted remains constant over the life of the property. Current law exempts any business personal property with an actual value less than $5,500 that would otherwise appear on a single property tax schedule, and most taxpayers file a single schedule in each county that they have property. The exemption in this bill is applied prior to determining whether the per schedule business personal property tax exemption applies. The bill also specifies how the exemption applies to a state-assessed public utility.

SB 11-030 TRANSPARENCY IN GAS ELECTRIC UTILITY BILLS (Beezley—Williams S.)
This bill requires all investor-owned gas and electric utilities (IOUs) to provide their customers with information on factors affecting utility rates on a quarterly basis. Specifically, the bill requires electric utilities to provide information on:

• the types of fuels used to generate electricity;
• the percentage of the utility's electricity attributable to each fuel type used;
• the load profile for each, and
• the total cost of generating electricity per kilowatt-hour for each.

The cost calculation is to include all ancillary costs associated with that fuel type. Natural gas utilities are also required to provide information on the cost per thousand cubic feet of gas under contract, and all ancillary costs, including the costs of underground storage and pipeline expansions. Finally, the bill specifies that the IOUs costs of revising the format of their current utility bills to provide the additional information may be recovered through rates.

SB 11-032 ON-BILL FINANCING PROGRAM FOR ENERGY COST SAVINGS (Johnston)
The bill:
• Requires the public utilities commission (PUC) to promulgate rules no later than January 1, 2012, to establish an on-bill clean energy improvement financing program under which a retail customer of a PUC-regulated public utility that sells electricity or natural gas may enter into an on-bill financing arrangement with the public utility under which the public utility finances the costs of completing a clean energy improvement to the customer's real property and the customer agrees to repay the costs by paying a temporary surcharge or a temporary increased rate for electricity or natural gas, as applicable, on the customer's utility bill; and
• Specifies minimum provisions that the rules must include relating to:
• The imposition of temporary surcharges or temporary increased rates;
• The application of energy savings from the program to a public utility's demand-side management targets or goals; and
• The exemption of a public utility from participation in the program if participation will not reduce the public utility's future present value revenue requirements.

SB 11-045 STREAMLINE ELECTRIC POWERLINE SITING (Johnston—Levy)
This bill creates the 16-member Task Force on Statewide Transmission Siting and Permitting, and specifies its membership. Members of the task force must be appointed within 30 days of the effective date of the bill, and the task force will be chaired by the Director of the Colorado Public Utilities Commission (PUC). The task force is required to hold at least 4 public meetings, solicit comments from members of the public, and report on its findings, including the adoption of any recommended statutory changes to the Governor and the General Assembly by December 1, 2011. At a minimum, the task force is required to consider comments on:

• an inventory and evaluation of Colorado's current siting and permitting framework for electric transmission facilities;
• whether Colorado's electric power transmission infrastructure is capable of meeting and exceeding Colorado's existing renewable energy standard (RES) requirements;
• whether Colorado's current transmission siting and permitting framework presents a barrier to developing a transmission infrastructure to meet Colorado's RES;
• how other states approach siting and permitting of transmission facilities, and identification of possible models for improving Colorado's process;
• actions to streamline siting and permitting processes for transmission facilities; and
• the advantages and disadvantages of a statewide transmission siting and permitting framework, including political considerations.

The bill authorizes the task force to accept gifts, grants, and donations, but specifies that the PUC is not required to solicit such moneys on behalf of the task force. If by June 1, 2011, sufficient moneys have not been raised to cover task force expenses, the task force is disbanded and the PUC must return any contributions. The bill repeals December 31, 2011.

SB 11-055 PRIOR NOTICE FOR SECURITY SCANS (Lundberg—Joshi)
The bill requires notice to be posted at the point of entry into any public facility area utilizing a security scanning system — such as metal detectors, hand-held magnetometers, and whole-body scanning machines. Public facilities subject to the bill are any facility operated by the state, counties, municipalities, or home rule counties and municipalities. The notice is required to display the following information regarding security scanning devices and policies utilized at the respective entry point:

• security scanning information — type of security scanning system(s) in use;
• health hazard information — exposure levels to any radiation from the device or system in use;
• privacy information — information regarding images generated by the scanning system and privacy or modesty policies;
• rights for refusal information — consequences a person may face for refusing to be scanned or submit to alternative security measures, and all options for refusing to be scanned, including availability of alternative security measures; and
• alternative security measure information — types, and related policies, of pat-down searches, or any related searches, in use at the facility.

SB 11-058 ELECTRIC UTILITIES LEAST COST PLANNING RULES (Renfroe)
This bill makes several significant modifications to the statute governing electric utilities in Colorado. First, the bill repeals and reenacts Section 40-2-123, C.R.S., which contains additional criteria that the Colorado Public Utilities Commission (PUC) is to consider when evaluating utility proposals to acquire energy generation resources. Currently, the PUC is required to consider:

• the likelihood of new environmental regulation and the risk of higher future costs associated with greenhouse gas emissions;
• proposals by Colorado electric utilities to propose, fund, and construct integrated gasification combined cycle (IGCC) generation facilities;
• whether acquisition of utility-scale solar resources would benefit the public;
• implementation of new electricity generation technologies using geothermal energy, and the combustion of material derived from wastewater treatment, municipal solid waste or produced biogenically in geologic strata; and
• projects funded by the federal American Recovery and Reinvestment Act of 2009.

This bill repeals all of the above criteria and requires only that the PUC adopt and use least-cost planning rules when considering utility investments in energy efficiency and in resource acquisitions necessary to meet the renewable energy portfolio standards. Further, the bill eliminates the Governor's Energy Office's responsibility to provide assistance to public utilities for IGCC projects.

SB 11-063 HEALTH CARE IN LOCAL GOVERNMENT MASTER PLANS(Giron—Kefalas)
The bill authorizes local governments to include a community health element in their master land use plan or comprehensive plan. The community health element may address accessibility, availability, affordability, and delivery of health care and other health-related issues within the territorial boundaries of the local government. The bill authorizes planning commissions to consider population estimates and projections provided by the Department of Local Affairs.

Position: Monitor
Outcome: Lost of Third Reading in House

SB 11- 064 LIMIT STATE HIGHWAY ACCESS PERMIT CONDITIONS (Grantham)
Senate Bill 11-064 prohibits the Colorado Department of Transportation (CDOT) from requiring a property owner to pay for state highway improvements — such as an auxiliary lane — as a condition of receiving an access permit to construct a driveway (or relocate an existing driveway) providing access between a state highway and an owner's property. Exceptions are provided for when a local authority provides written agreement that:

• the state highway improvement is necessary; and
• the property owner should be required to pay the improvement's costs.

SB 11-067 REGISTRATION OF INTERIOR DESIGNERS (Jahn—Massey)
This bill creates a registration program for interior designers in the Division of Registrations in the Department of Regulatory Agencies (DORA). An interior designer prepares design documents and specifications for non-structural elements of interior spaces in buildings and files the documents necessary to obtain building permits. Persons applying to the DORA for a certificate of registration must document that they have:

• a baccalaureate degree in interior design and 2 years professional experience; or
• an associate's degree in interior design and 4 years of professional experience; and
• passed the qualification test used by the National Council for Interior Design Qualifications.
Only persons who meet the requirements and obtain a certificate of registration from the division are permitted to use the title "Registered Interior Designer."

In addition, the bill:
• defines the scope of practice for a registered interior designer;
• provides the division with the ability to set fees and schedule renewals of registrations;
• establishes the grounds for disciplinary proceedings and authorizes disciplinary actions, including fines up to $5,000.

The registration program is subject to a sunset review prior to its repeal, effective July 1, 2021.

SB 11-077 DEADLY FORCE AGAINST A BUSINESS INTRUDER (Grantham—Becker)
Current law permits the occupant of a dwelling to use deadly physical force against another person who has unlawfully entered the dwelling if the occupant reasonably believes the intruder is committing, has committed, or intends to commit a crime other than the unlawful entry. This bill adds a place of business to the places that may be defended with deadly physical force and an owner, manager, or employee of a business to the individuals who may defend a place using deadly physical force.

SB 11-098 PHASE-OUT BUSINESS PERSONAL PROPERTY TAX (King S.)
Beginning with the first odd-numbered property tax year after a year in which the total statewide assessed value of business personal property increases by at least 12 percent, the bill exempts from property tax an increasing percentage of all business personal property. The exemption percentages in the years following this growth threshold are as follows:

• 20 percent in property tax years 1-4;
• 40 percent in property tax years 5-8;
• 60 percent in property tax years 9-12;
• 80 percent in property tax years 13-16; and
• 100 percent in property tax years 17 and thereafter.

This exemption applies regardless of when the property was first purchased and put to use. The Property Tax Administrator is required to certify when the growth threshold is met and publish the exemption percentage applicable for each property tax year. Current law exempts any business personal property with an actual value less than $5,500 that would otherwise appear on a single property tax schedule, and most taxpayers file a single schedule in each county that they own property. The exemption in this bill is applied prior to determining whether the per schedule business personal property tax exemption applies. The bill also specifies how the exemption applies to a state-assessed public utility.

SB11-234 RESIDENTIAL REAL PROPERTY TRANSFER FEE COVENANTS (Jahn—Massey)
The bill prohibits the application of new transfer fee covenants and liens on residential property transfers recorded on or after July, 1, 2011. These covenants require sellers to pay a fee upon selling residential real property. Any person who records, or causes or suffers to be recorded, a covenant on or after July 1, 2011, is liable for actual damages and attorney fees, expenses, and costs under certain circumstances. The prohibition does not apply to fees paid to real estate brokers, fees imposed by a governmental entity, fees paid to a homeowners association, fees paid to certain non-profit organizations, and any fee that does not bind any successor in title and that is not payable by a grantee upon the conveyance of residential property upon which there are residential improvements.

The bill makes private transfer fees on residential real property non-binding and unenforceable in Colorado after the effective date of the bill. For residential private transfer fee covenants that existed prior to that date, the bill requires that covenant details and payee information be recorded in the grantee-grantor index with the office of the county clerk and recorder in the county where the property is located.

For residential property to which a transfer fee covenant was attached prior to July 1, 2011, the person to which the fee is to be paid (payee) must file a notice of transfer fee with the county clerk and recorder by October 1, 2011. Elements of the notice are specified in the bill. If the payee fails to comply fully with the notice requirements, the seller may proceed with the conveyance and shall not be subject to any obligations under the covenant. If the payee complies with the notice requirement, the seller must pay the transfer fee but subsequent owners are exempted.

Upon written request of the property owner, the payee must provide a written statement within 30 days specifying the amount of the transfer fee payable. If the statement is not received within 30 days, the seller may convey the property without payment of the transfer fee.

SB 11-256 PENALTIES FOR GRAFFITI (Guzman—Ferrandino)
This bill changes the manner in which multiple offenses for defacing property and causing more than $500 in damage may be treated. Specifically, it allows damages from two or more offenses committed within six months to be aggregated and charged as a single class 1 misdemeanor. Offenses charged in this manner shall continue to be subject to a mandatory minimum of fine of $750 upon conviction. If House Bill 11-1032 becomes law, the bill also grants the court discretion to impose alternatives in sentencing, including restorative justice, and to suspend all or part of the fine for successful completion of the alternative sentence. Additionally, the Colorado Department of Transportation (CDOT) is authorized to enter into memoranda of understanding (MOUs) with local governments where CDOT property is located. Such MOUs would clarify that if a local government chooses to remove graffiti from CDOT property, it does so at its own expense.

SB 11-264 CLARIFY LIS PENDENS AND LIENS (Newell—Gardner B.)
Under current law, a party against whom a mechanic's lien or real estate broker's lien has been filed may file a bond (or similar instrument of obligation) as a substitute for the property to which the lien is attached. This bill provides that the lien is immediately and forever discharged upon the effective filing of such a bond. The bill eliminates any requirement for a mechanic's lien or real estate broker's lien claimant to file a lis pendens or notice of a lis pendens when a bond has been substituted.

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2012
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