Colorado Legislative Strategies Updates 5.13.2024

COLORADO LEGISLATIVE STRATEGIES NEWSLETTER

End of Session Newsletter

May 13, 2024

Introduction
The 2024 legislative session – technically the Second Regular Session of the 74th General Assembly – is officially in the books! Well, in legislative terms it’s in the journals; but the House Journal is over 2,000 pages and the Senate Journal is nearly 1,500 pages so this end of session newsletter is a much better way to get all the big news from this session.
2024 was the sixth year of Governor Polis and total control by Democrats in the General Assembly. And like in those previous years, Governor Polis and leadership in both chambers by and large got what they wanted. So in one sense this session was more of the same but there were also several things that will characterize the 2024 session. 
For one thing, the 2024 election loomed large over the session. Of course, there was the normal jockeying of members attempting to run for higher office and members working their way through party assemblies or petitions to get on the primary ballot. But it was the potential ballot measures that really shaped what happened on several issues this session. 
After ballot measures filed by both sides led to “grand compromises” at the very end of session on the environment, liability damage caps, and maybe even property taxes (there was a compromise bill but a controversial ballot measure may still appear on the ballot), one lesson from this session is filing and funding ballot measures as a legislative strategy. 
​Usually the end of session is much more acrimonious. House Republicans even walked out on the final day of last session over a bill introduced on property taxes just three days before the end of session. Fast forward to this session where once again there was a property tax bill introduced just three days before the end of session that instead received Republican support. And the end of this session was generally much more friendly between the parties than year’s past. 

Another thing that sets this session apart from last session is the difference between a package of bills and one gargantuan bill. The biggest story at the end of last session was the defeat of Governor Polis’ huge signature land use bill. Conversely, this session the Governor broke his land use goals up into small bills that were amended and changed but ultimately all passed. 
​And last year one big bill on gig workers died in the first committee, but this year it was broken up into two different bills that both were heavily amended and passed this session.
Moreover, last session the massive air quality bill was gutted and turned into an interim committee. This session, proponents broke up their agenda into multiple bills that then forced industry into getting serious about the ballot that then led to historic compromise bills passing. 
But don’t let all this about compromises at the end fool you into believing it was all sunshine and rainbows this session. The legislative process is still an adversarial process most of the time, and this session had no shortage of winners and losers. 
This session there were 705 bills introduced – 525 passed (mostly with bipartisan support and often with significant changes from the introduced version) but 105 were voted down and another 75 died on the calendar. The sheer volume of what gets done in only 120 days is astounding. But you don’t have time for all that! So what follows are the big things from the 2024 session broken out into just 12 digestible sections: 
Here’s what to know from the 2024 session on: 1) Housing; 2) Education; 3) Energy & Environment; 4) Property Taxes; 5) Tax Credits; 6) Technology; 7) Agriculture & Water; 8) Business; 9) Health; 10) Transportation; 11) Guns and 12) General Assembly. 
1) Housing
Once again, housing was a major theme for the legislative session. In recent years, Governor Polis has expressed that expanding affordable housing is a top priority for his administration, arguably now more than ever.
Several bills passed as part of the Governor’s package including House Bill 1007, which prohibits local governments from setting occupancy limits for non-related residents; House Bill 1152, which deals with accessory dwelling units (ADUs); and House Bill 1313, which requires local governments to change their zoning policies to allow for more housing units around transit. 
Other housing bills that passed also took up a significant amount of time on the calendar. House Bill 1098, which requires landlords to renew a tenant’s lease unless there is cause to not renew or “just cause eviction”; House Bill 1175, which gives local governments a right of first refusal to purchase publicly subsidized affordable housing; and House Bill 1304, which restricts local governments from enforcing minimum parking requirements for residential buildings, were all among the more controversial bills to be debated on the floor and in committee this year.
Among some of the bigger bills that didn’t reach the finish line were House Bill 1057, which would have prohibited landlords from using algorithms to determine rent prices; House Bill 1230, which would have strengthened construction defect laws; Senate Bill 106, which would have eased construction defect laws to increase housing; and Senate Bill 33, which would have quadrupled property taxes for short term rental owners whose properties are rented out for 90 days or more per year. All of those bills faced significant opposition. 
Expect to see those bills and more on housing come back next session. It took just cause eviction and right of first refusal two years to pass. And expect housing to continue to be a top issue in future legislative sessions. 
2) Education
Another top priority for the General Assembly and Governor Polis was tackling education issues, particularly funding for K-12 education. This year, the legislature was able to pay off the budget stabilization factor, which represented the deficit in public school funding. Through Senate Bill 188, the School Finance Act, the budget stabilization factor was finally paid off. 
Additionally, House Bill 1448 addressed public education funding and is awaiting the Governor’s signature. By attempting to rewrite the school finance formula for the first time in 30 years, the bill is intended to prioritize rural school districts and school districts with at-risk students. 
Some institutions of higher education are also set to receive funding through House Bill 1231, another bill that was a priority for the Governor’s office. The bill provides funding for four major projects on higher education campuses, including the creation of University of Northern Colorado’s College of Osteopathic Medicine. 
Outside the sphere of funding, several other bills were passed to increase accessibility and equity in public school education, such as Senate Bill 70. With bipartisan support, the bill allows for students enrolled in online public education systems to take Colorado’s annual standardized test remotely in their traditional educational setting.
However, some of the education bills to pass were also the topic of hours-long debate on both the House and Senate floor. One of the most controversial education bills to pass this year was House Bill 1039, which requires public school employees to address students by their chosen name, and classifies intentionally using a different name as discriminatory. The bill was signed by Governor Polis in April.
House Bill 1363 was another controversial education bill, but didn’t make it to the Governor’s desk for signature. The bill was aimed at placing limitations on charter schools, but received pushback from both sides of the aisle, as well as the Governor’s office.
3) Energy & Environment
It was clear that air quality and ozone would be a big issue this session after the interim committee to look at the issue. Progressive Democrats brought forward several bills that generated a lot of opposition from industry and even the Governor’s office. 
The first controversial bill to go down was Senate Bill 159 to completely phase out new oil and gas permits in the state. Then several other bills – Senate Bill 165, Senate Bill 166, House Bill 1330 and House Bill 1367– were killed as part of the end of session deal that paved the way for Senate Bill 229 and Senate Bill 230 to address those issues as part of the compromise. These two “grand compromise” bills increase regulatory authority at the Energy & Carbon Management Commission (ECMC) and the Air Quality Control Division to address ozone emissions and levies a production fee on oil & gas companies to pay for clean transit projects and wildlife habitat mitigation. 
Additionally, House Bill 1339, House Bill 1357 and House Bill 1359 all died on the House Appropriations calendar in the last weeks of the session. Another ozone related bill, Senate Bill 95, met its demise in the House Finance Committee even though proponents made many modifications to the bill in order to get bipartisan support from many of the legislators who sat on the interim committee.
There were also significant energy bills that did pass. Senate Bill 185 updates the law on statutory pooling and House Bill 1346 further clarifies the law for carbon capture and sequestration projects and directs the state to consider the cumulative impacts from all ECMC regulated  projects before permits can be granted. 
There were also several bills dealing with renewable energy. Senate Bill 207 updated the state’s community solar program and created more access to distributed energy generation while passing on savings to income qualified customers. There was also Senate Bill 218 to modernize the state’s distribution system planning, and Senate Bill 212 on renewable energy siting. 
4) Property Taxes
After a sharp increase in property taxes last year, there have been several attempts over the last year to prevent another huge increase in taxes for property owners. In last year’s election, there was Proposition HH, a statewide ballot measure to address property tax increases, but that ballot measure overwhelmingly failed. 
After the election, Governor Polis called a special session to address property taxes, which created the Commission on Property Taxes. The commission consisted of lawmakers, local leaders, and business community leaders to recommend potential policy solutions to preventing big increases in property taxes. 
After months of discussions, negotiations, and recommendations from the commission, Senate Bill 233 was introduced in the last three days of session. The bill caps local property tax growth at 5.5 percent starting in 2025 and decouples assessment rates for school districts and other taxing districts by setting a flat 7.15 percent assessment rate. 
Although leaders on both sides of the aisle have expressed that the intention of Senate Bill 233 is to offer a “permanent solution” to property tax issues, there’s a catch – the bill is set to go into effect unless voters approve a ballot measure in November to address property taxes differently. 
A potential ballot measure backed by two conservative groups, Advance Colorado and Colorado Concern, would put a cap on property tax growth that could risk school and local government budgets. The groups appear to be moving forward with the ballot measure, despite Senate Bill 233 being passed. Stay tuned for what happens with that ballot measure and the aftermath. 
5) Tax Credits
A big focus for many legislators was affordability as costs continue to rise. How to deploy tax credits most effectively and equitably generated a lot of bills this session. Tax credit bills were a popular idea because TABOR restricts how much revenue there is to spend, and because we are forecasted to be in a TABOR surplus the tax credits are essentially paid for out of that. 
Notable tax credit bills that passed include House Bill 1340, which establishes a refundable income tax credit to cover two years of higher education for anyone making under $90,000. Additionally, House Bill 1134 expands the Earned Income Tax Credit for working families. 
House Bill 1311, which creates the Family Affordability Tax Credit, was one of the bigger proposals to make it through the legislative process in the final days of session. Among other tax credit bills that made it to the finish line in the final days of session was House Bill 1434, which expands the existing affordable housing tax credit.
Other bills in the tax credit realm were bills related to workforce development, which is another long standing priority for Governor Polis. House Bill 1365, which expanded Polis’ Opportunity Now Colorado grants and incentivizes employers to invest in training new members of the workforce. Another priority for the Governor’s office was House Bill 1325, which would create tax incentives for the development of quantum technology in Colorado.
However, many of the bills that would have created additional tax credits didn’t make it off the calendar in both chambers. Among the tax credit bills that didn’t make it across the finish line were House Bill 1125, which would have created a tax credit for certain costs involved in converting a commercial structure to a residential structure; House Bill 1208, which would have created an income tax credit for eligible teachers;  Senate Bill 146, which would have created an income tax credit for certain renters; and Senate Bill 152, which would have created a tax credit for food and beverage retailers that source ingredients from local producers who use regenerative agriculture practices.
6) Technology
Social media, data privacy, and artificial intelligence (AI) were hot topics for the General Assembly this year. However, many of these bills required longer conversations with stakeholders and will likely come back next year. 
Bills that passed related to data privacy included House Bill 1130, which adds an individual’s biometric data to the Colorado Privacy Act, and Senate Bill 41, which makes changes to the Colorado Privacy Act as it relates to data from a minor’s online activity.
Bills that passed related to AI were slightly more controversial. House Bill 1468 shifts the existing Facial Recognition Task Force to focus more specifically on AI policy. Senate Bill 205, which was introduced late in the session and mirrored a similar bill in Connecticut, deals with first-in-the-nation AI regulation. It was pitched as focused on preventing algorithmic discrimination but it was controversial because it would impact a wide range of industries.
As with several bills from this session, Senate Bill 205 could end up on the Governor’s veto list. 
Bills related to social media were mostly meant to address social media use by youth. House Bill 1136 directs the state to create and maintain a “resource bank” of information and materials related to mental and physical health impacts of social media on juveniles.
Another bill directed at social media use by youth was Senate Bill 158, which did not have the support to pass this year. As introduced, the bill would have allowed law enforcement to access social media activities and data for up to 90 days without a warrant. 
7) Agriculture & Water
The regulation of state waters was another pressing issue to be addressed this year. As a result of the Supreme Court’s decision in Sackett v. EPA last year, which changes how a body of water is protected under the Environmental Protection Agency. So, the state needed to come up with a process for how “dredge and fill” permits and state waters are regulated. The big source of debate here was which department would oversee the regulation. 
House Bill 1379, which was introduced by Speaker McCluskie and both chairs of the House and Senate Agriculture committees, called for regulation to be housed under the Department of Public Health and Environment (CDPHE). Proponents of the CDPHE approach argued the department has more experience in permitting, specifically in permits for stormwater and wastewater discharges. However, CDPHE has a historically long backlog in permit approval which caused concern that a new permitting program would not be able to efficiently issue permits. The bill also applies to all state waters, which is an expansion from the federal program
Senate Bill 127, which was introduced by Senator Kirkmeyer and Representative Bird, originally established a new commission under the Department of Natural Resources (DNR) to create and enforce rules related to dredge and fill regulation. Proponents of the DNR approach argued that DNR has more experience in dealing with water issues. Additionally, this bill only focused on the “gap” waters that the Sackett case created, which was a much more narrow approach. Eventually, sponsors of both bills came to a compromise and 1379 passed. 
The controversial reintroduction of gray wolves at the beginning of this year also influenced different areas of this year’s legislative session. In March, three appointments made by Governor Polis to the Colorado Parks and Wildlife Commission were the subject of major controversy during their confirmation. The Senate Agriculture & Natural Resources Committee forwarded the appointees to the full Senate without favorable recommendation, a rare rebuke of the Governor’s vision for the Wildlife Commission. In the end two of the appointees were confirmed but one withdrew from consideration when it became apparent that he would not have the votes needed to get confirmed.
Senate Bill 171, which authorizes the Division of Parks and Wildlife to reintroduce wolverines in Colorado, also received some hesitation from lawmakers. Compared to the reintroduction of wolves, the bill included more guardrails for the reintroduction of wolverines. The bill passed both chambers in the last week of session and is awaiting the Governor’s signature.
8) Business
Several bills related to various business issues were also introduced this year. However, many of the more progressive proposals to regulate businesses didn’t make it through. 
Of the bills that did make it through the process, House Bill 1260 was generally the most controversial. Although it was slightly scaled back through amendments, the bill prohibits retaliation from an employer if an employee declines to participate in an employer-sponsored meeting where the employee believes religious or political opinions are being communicated.  
House Bill 1351 was another controversial bill, with negotiations lasting until the final day of session. At surface level, the bill deals with the continuation of the state’s Division of Banking. However, a concerning provision in the introduced version of the bill would have allowed for credit unions to purchase banks. This provision was removed through an amendment on the Senate floor and the bill was ultimately passed without it. 
Other business related bills that made it through the process include House Bill 1121, which deals with a consumer “right to repair” requirement for digital electronic equipment, and House Bill 1129, which requires disclosures of certain information to drivers from delivery network companies.
Among the business related bills that did not make it through the process were House Bill 1014, which would have removed the significant impact standard used when determining whether a business has committed a deceptive trade practice, and House Bill 1151, which would have required businesses to disclose mandatory fees in advertisements.
Controversial bills related to alcohol sales also didn’t make it through the process. Senate Bill 181, which would have imposed a “fee” on alcohol manufacturers and distributors to pay for substance abuse programs, and House Bill 1373, which would have essentially repealed liquor licenses for large retailers, both failed in committee during the last week of session. 
9) Health
Compared to previous years, this year was relatively quiet for legislation in the healthcare space. Senate Bill 130, which would have increased limits on damages an individual can seek for medical malpractice, was a major source of controversy. In the final days of session,  Governor Polis announced a compromise had been reached between providers, the business community, and trial lawyers to avoid an expensive fight at the ballot box. As a result, Senate Bill 130 died on the calendar. 
House Bill 1075, which would have directed the Colorado School of Public Health to analyze draft model legislation to implement a single-payer healthcare system, also died on the calendar. This bill was similar to a different bill last year, which was amended to remove the “implementation” piece that was included in this year’s bill, but also died on the calendar.
Senate Bill 54, which would have required insurance coverage for diabetes prevention and obesity treatment, ultimately died on the House Appropriations calendar. However, the bill overcame several obstacles and made it further than many bills like this around the country.
Several bills that increase access to care by removing barriers for patients are on their way to the Governor’s desk including House Bill 1149, which requires modifications to prior authorization requirements; Senate Bill 203, which requires Colorado’s Prescription Drug Affordability Board to consider recommendations from the Rare Disease Advisory Council when evaluating drugs for affordability; and Senate Bill 110, which removes prior authorization requirements for certain drugs.
10) Transportation
Transportation, particularly rail, was another top priority for the Governor and Democrats. Several bills this session dealt with finding funding for rail. Senate Bill 230, part of the compromise between environmentalists and industry, establishes a new fee on oil and gas production and directs funds to increase transit service. Additionally, Senate Bill 184 sets a new fee on rental cars to fund construction of long distance passenger rail throughout the state. 
Another bill, Senate Bill 32, makes permanent a set of grant programs that allow transit agencies to offer free transit during ozone season and provides free transit for youth year-round. The bill also establishes a committee to develop a proposal for a statewide transit pass. 
In his State of the State speech at the beginning of the session, Governor Polis devoted a significant portion to his vision for passenger train transit and he is likely to tout the funding established this session for years to come. But it wasn’t all successful for the Governor in the area on transit this session. 
Governor Polis pushed House Bill 1447, a major RTD reform bill. The bill generated significant pushback from current RTD elected officials and others because of the way it would have reshaped the way RTD elections work. The bill ultimately died even after the most controversial portion had been amended out.  
11) Guns
Similar to previous years, several bills related to guns were the topic of long floor debates and some weekend work. Toward the end of session, there were a few bills in particular that seemed to cause more drama than others.
House Bill 1349 refers a measure to the ballot that would ask voters whether a 6.5 percent excise tax will be imposed on guns and ammunition. When the bill was introduced in the Senate, it was assigned to the Senate Finance committee. Senator Mullica, the chair of the Senate Finance committee, was rather slow to schedule the bill for a hearing until he received pressure from fellow Democrats. In the last days of the session, the bill passed the Senate and is now awaiting the Governor’s signature. 
Senate Bill 131 was another controversial gun bill. As introduced, the bill outlined a list of places, or “sensitive spaces,” in which an individual couldn’t carry a gun, even if that individual had a concealed carry permit. After receiving pushback, a strike below amendment was introduced that applied the bill only to institutes of higher education and the Capitol building. The addition of the Capitol was controversial because several legislators regularly carry firearms. However, the bill was passed and is also awaiting signature from the Governor. 
That being said, not all gun bills made it to the Governor’s desk. House Bill 1292, which would ban “assault weapons” in Colorado, was a repeat bill from last year, but didn’t make it through the Senate. Last year, it was widely speculated Governor Polis wasn’t very enthusiastic about this bill because of the broad definition of “assault weapon”. This year’s bill made it further than last year’s, but was postponed indefinitely by the bill sponsor in the Senate State, Veterans, and Military Affairs committee at the end of the session. 
12) General Assembly
Finally, in addition to all the issues areas above, the General Assembly itself generated a lot of news this session. First of all, the session started with two Democrats (Elisabeth Epps and Bob Marshall) having sued their own leadership and caucus and the entire General Assembly. 
The lawsuit was ultimately settled but the ridiculous new procedures around open meetings stifled communication throughout the session. Senate Bill 157 did pass and addressed open meetings but didn’t really solve anything. And results of legislators’ funding preferences were released publicly but that just meant that several legislators chose not to participate and in the end it didn’t really matter for making final funding decisions. 
Leadership changes were also a story this session. After Dominick Moreno vacated his role as Senate Majority Leader and triggered elections that brought Robert Rodriguez in as Majority Leader and Faith Winter as Assistant Majority Leader. Republicans didn’t make any changes to their leadership team from last year and it looked like leadership was set for this session. However, news of a DUI changed all of that in the middle of the session. 
Early in the session, news broke that House Minority Leader Mike Lynch was issued a DUI a couple of years ago. He never publicly reported it to his colleagues and he ultimately stepped down as House Minority Leader and Rose Pugliese stepped in as the top House Republican. Ty Winter then became Assistant Minority Leader and both were able to successfully navigate a House Republican caucus that can be difficult at times. 
The General Assembly is a constantly changing body. This session had several newly appointed legislators and next session will bring even more new faces after the election. Here are all the legislators who will just finished their last legislative session:
(Graduation by Vitamin C, if you are so inclined)
Termed-out: Senators Fenberg, Fields, Gardner, Ginal, Priola, Smallwood, and Zenzinger; Representatives Catlin, Kennedy, Herod, McLachlan, and Weissman. But we may see Catlin and Weissman return next year because both are running for the Senate. Not running again: Senator Will and Representatives Bockenfeld, Ortiz, and Wilson. Running for Congress: Representatives Evans, Lynch, and Holtorf. Running for the Senate and will probably be back but possibly not: Representatives Amabile, Daugherty, and Snyder. 
In that departing group are the last Democrats who know what it’s like to be in the minority… So savor this session now, because the next session will be a whole other beast. 
Conclusion
Congratulations on making it through the 2024 legislative session! And way to go on making it to the end of a long end of session newsletter. Hopefully you’ve enjoyed these weekly updates about what’s going on at the Capitol and beyond. 
Keep an eye out for newsletters over the interim about elections, revenue forecasts, newsworthy legislative activity, and anything else that you should know.
Lastly, as is tradition for CLS, the final day of the session included a custom shirt. To the 2024 legislative session – Bye Ken! Bye Barbie!