Immediate Attention: New Laws Affecting Municipalities

CML Newsletter
May 24, 2019


The First Regular Session of the 72nd General Assembly adjourned sine die on May 3. CML would like to bring to the attention of our members several new laws that have an immediate impact on municipal interests. Short summaries of the bills are listed below. Several bills await final action by Gov. Jared Polis and are not effective unless signed or become law without his signature.

If you have any questions, contact the lobbyist indicated in the summary by email: Kevin Bommer (kbommer@cml.org), Morgan Cullen (mcullen@cml.org), Brandy DeLange (bdelange@cml.org), and Meghan Dollar (mdollar@cml.org). They also can be contacted at 303-831-6411 or 866-578-0936. Shortly before the 97th CML Annual Conference in June, the League will publish the 2019 Colorado Laws Enacted Affecting Municipalities, which will summarize these bills and additional legislation of municipal interest. The publication is presented free online at www.cml.org/home/advocacy-legal/ Colorado-Laws-Enacted, where several prior editions are also available.

SB 19-016, Severance tax operational fund distribution methodology, changes the timing and distribution of money in the operational fund by separating the reserves into the core reserve and the grant program reserve (formally known as Tier One and Tier Two). The state treasurer will make transfers to the energy grant programs on August 15 after each fiscal year and must base the transfers on actual revenue as opposed to estimated revenue. Effective: April 1, 2019. Lobbyist: Brandy DeLange.

SB 19-019, county July 4th fireworks restrictions, allows a county to adopt a resolution that includes an express finding of high fire danger, based on competent evidence, to prohibit the sale and use of fireworks between May 31 and July 5. Competent evidence of high fire danger may include predictions of future fire danger such as those issued by the National Interagency Coordination Center and localized evidence of low fuel moisture. If this resolution is adopted and a change in weather occurs that diminishes the high fire danger, the county must promptly consider rescinding the fireworks restrictions. The bill applies to unincorporated areas of the county. Effective: March 21, 2019. Lobbyist: Meghan Dollar.

SB 19-028, Allow on and off premises beer licenses in rural areas, changes a provision of 2018 legislation related to retail sale of alcohol beverages both on and off a licensed premise. On/off licensees were required to select either an on or off premise license at the time of renewal, and on/off licenses were to be completely eliminated. This act releases the requirement to convert the on/off premises license and allows new licenses to be available, but the provisions only extend to licensees or applicants in the unincorporated area of a county with fewer than 35,000 residents or within a municipality with fewer than 7,500 residents. Effective: Feb. 20, 2019 for all license applications filed on or after June 4, 2018. Lobbyist: Kevin Bommer.

SB 19-030, Remedying improper guilty pleas, allows a defendant to petition the court and challenge a guilty plea in a deferred judgement on the grounds that the individual was not properly advised of all of the potential penalties associated with the guilty plea. This motion can be filed at any time and must allege in good faith that the defendant has suffered, is suffering, or will suffer an adverse immigration consequence. The bill also specifies that the defendant must allege in good faith that the guilty plea was obtained in violation of state or federal law regarding proper advisement. The bill specifies a process for the prosecution to weigh in and timelines the court must meet. This bill applies to deferred judgements accepted in municipal court. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

SB 19-032, Hazardous materials routing, requires the Department of Transportation (CDOT) to conduct a study to assess the feasibility of allowing the transportation of hazardous materials through the Eisenhower- Edwin C. Johnson Memorial Tunnel and prepare a study report that includes findings and recommendations as to whether and under what conditions the transportation of hazardous materials through the tunnel should be allowed. The bill also authorizes a public highway authority or a governmental partner in a public-private partnership to apply to the Colorado State Patrol (CSP) for a new or modified hazardous materials route designation for a road or highway that it directly or indirectly maintains. Effective: April 8, 2019. Lobbyist: Morgan Cullen.

SB 19-054, Military vehicle regulation, defines surplus military vehicles as off-highway vehicles for the purposes of titling these vehicles and of using these vehicles off-road. These changes in the definition do the following: Allow a surplus military vehicle to be titled as an off-highway vehicle; A surplus military vehicle is not registered as a motor vehicle; A surplus military vehicle is treated as an off-highway vehicle for the purposes of
on-road and off-road use. These changes do not apply to military vehicles that are valued for historical purposes. Effective: July 1, 2019. Lobbyist: Morgan Cullen.

SB 19-103, Legalizing minor's businesses, purports to prohibit municipalities and counties from requiring a business license or permit for businesses operated by any person under the age of 18 and located at a distance determined by the municipality or county as to not directly compete with other businesses. The prohibition applies to any minor's business that operates no more than 84 days per year. Municipalities and counties are not prohibited from enforcing local laws on the manner in which the business is conducted. Effective: April 1, 2019. Lobbyist: Kevin Bommer.

SB 19-156, Building codes, sunset state electrical board, continues the State Electrical Board and its regulatory oversight of electricians. The sunset also reflects changes made to decouple local and state electrical inspections as well as to the requirement to conduct contemporaneous reviews. If contemporaneous reviews are not conducted, the board may issue a cease-and- desist order to the local government but only after a show cause has been issued to the local government. Effective: July 1, 2019. Lobbyist: Brandy DeLange.

SB 19-175, Serious bodily injury vulnerable road user, creates a new class 1 traffic misdemeanor of causing serious bodily injury to a vulnerable person while carelessly driving. A violation results in 12 points issued to the driver's license, which results in a license being suspended. If guilty of the violation, the driver may be subject to a restitution order, required to attend a driver improvement course, or ordered to perform useful public service for no more than 320 hours. The bill defines vulnerable road user to include pedestrians, bicycles, peace officers, and others. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

SB 19-181, Protect public welfare oil and gas operations, clarifies the authority of counties and municipalities to regulate the surface impacts of oil and gas development under their land use powers. The bill grants new authority for local governments to adopt stricter regulations than the state. Within their own jurisdiction, municipalities have the option to impose fees to cover the costs of regulating, monitoring, and permitting sites. The act also reforms the makeup and scope of the Colorado Oil and Gas Conservation Commission (COGCC), directing the COGCC to regulate the development of oil and gas in a manner that protects public health, safety, and welfare, including protection of wildlife resources. Finally, the act makes changes to the forced pooling statute, changing the royalty rate for nonconsenting owners from 12.5 percent to 13 percent for a gas well and 16 percent for an oil well. Applicants must now also get the consent of more than 45 percent of the mineral interests that will be pooled. Effective: April 16, 2019. Lobbyist: Brandy DeLange.

SB 19-185, Protections for minor human trafficking victims, provides immunity to a minor charged with prostitution if probable cause exists to believe he or she was a victim of human trafficking or sexual servitude. This applies to prostitution-related municipal offenses. Lastly, this bill requires a post- enactment review five years after its passage. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

SB 19-212, General fund appropriation to implement state water plan, codifies the Water Plan Implementation Grant Program and provides a total of $10 million in funding from general fund appropriations. The grant program is administered through the Colorado Water Conservation Board (CWCB). Grants may be awarded to local governments, state agencies, mutual ditch companies, and nonprofit corporations who have clearly identified one of the following types of projects: water storage and supply projects; water conservation, land use, and drought planning projects; environmental and recreational projects that promote watershed health; and agriculture projects that provide technical assistance or improve agricultural and water efficiency. Grant money awarded may not exceed more than 50 percent of the total cost of the projects. Effective: April 17, 2019. Lobbyist: Brandy DeLange.

SB 19-221, Colorado water conservation board construction fund, appropriates funds from the Colorado Water Conservation Board (CWCB) Construction Fund to the CWCB and the Division of Water Resources for water-related projects including the Walker Recharge Project, the Republican River, and repeals an annual transfer from the Severance Tax Perpetual Base fund to the CWCB Construction Fund. Effective: Immediately upon governor's signature. Lobbyist: Brandy DeLange.

SB 19-227, Harm reduction substance abuse disorders, expands the medication take-back program to include syringes and creates a naloxone bulk purchasing program. The program will be run by the Colorado Department of Public Health and Environment (CDPHE) and allows local governments more access to naloxone which reverses opiate overdoses. The bill requires public entities to have naloxone available if they make an automatic defibrillator available. The entities can purchase the naloxone from the bulk purchasing program. HB 19-227 allows certified hospitals to be clean syringe exchange sites. Finally, the bill allows schools to develop policies related to providing opioid antagonists. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

SB 19-240, Industrial hemp products regulation, allows additional regulation at the state and local level for processing industrial hemp. The act creates clear authority for municipalities and counties to adopt local business licensing and regulation laws related to storage, extraction, processing, and manufacturing of industrial hemp and industrial hemp products. Local laws and regulations may not conflict with any state regulations, otherwise the state regulation controls. The act also establishes a state registration fee. Effective: Immediately upon the governor's signature. Lobbyist: Kevin Bommer.

SB 19-262, General fund transfer to HUTF, requires the state treasurer to transfer $100 million from the general fund to the highway users tax fund on July 1, 2019, for allocation to the state highway fund, counties, and municipalities in accordance with the existing "second stream" allocation formula, which allocates the money as follows: 60 percent to the state highway fund; 22 percent to counties; and 18 percent to municipalities. Ergo, this act will add an additional $18 million in municipal transportation revenue for 2019. Effective: Immediately upon the governor's signature. Lobbyist: Morgan Cullen.

SB 19-263, Delay referred transportation bonding measure to 2020, delays the referred measure via SB 18-001 for voter consideration until the 2020 election cycle. The bill also reduces the amount of notes authorized to be issued to offset the additional transportation funding that will result from the repeal of only two, rather than three, tranches of lease- purchase agreements authorized by SB 17-267. Effective: Immediately upon the governor's signature. Lobbyist: Morgan Cullen.

HB 19-1009, Substance use disorders recovery, appropriates $1 million to the Department of Local Affairs to expand the Housing Voucher Program and allows individuals with substance abuse disorders to apply for housing vouchers. The bill also requires certification of recovery residences and creates a grant program in the Department of Human Services (DHS) to defray recovery residences' certification costs. Finally, HB 19-1009 creates an advisory committee to advise the Department of Law on uses of any custodial funds received by the state as a result of opioid-related litigation. A municipal official may be appointed to the advisory committee. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

HB 19-1015, Recreation of the Colorado Water Institute, recreates the institute in state law until July 1, 2029. In addition to recreating the Institute, the Institute should also consult with state and local governments, water managers and user associations, drought and climate change planning organizations, and water quality planning organizations to identify, develop and implement water research information and education for water resources, quality and related policy issues. Effective: Feb. 20, 2019. Lobbyist: Brandy DeLange.

HB 19-1033, Local governments may regulate nicotine products, explicitly authorizes statutory and home rule municipalities to enact ordinances regulating the sales of tobacco or nicotine products to minors. Municipalities will be able to enact fees and licenses on cigarettes without forfeiting their share of cigarette sales taxes from the state. The act authorizes municipalities and counties to adopt additional sales taxes on tobacco or nicotine products; however any such local tax as applied to cigarettes would still result in a loss of state cigarette tax revenue currently shared with local governments. Further authority is granted to establish multijurisdictional IGAs for the collection and enforcement of local sales taxes. Effective: July 1, 2019. Lobbyist: Kevin Bommer.

HB 19-1071, Colorado Department of Public Health and Environment Water Quality Control, removes requirement that the Board of Health approve operating agreements that municipalities enter into for sewer construction, and clarifies that the board of directors of a water conservancy district must comply with the rules of the water quality control commission. Effective: March 7, 2019. Lobbyist: Brandy DeLange.

HB 19-1119, Peace officer internal investigation open records, allows the public to inspect investigation files upon the completion, which includes any appeals process, of an internal investigation. The bill applies in cases where the investigation examines the in-uniform or on-duty conduct of a peace officer related to a specific, identifiable incident of alleged misconduct involving a member of the public. The custodian of the records may first provide a summary of the investigation file and must only provide the entire file upon subsequent request. Witness interviews, video and audio recordings, transcripts, documentary evidence, investigative notes and final departmental decisions are subject to inspection. The custodian is required to redact certain information from the records prior to releasing them. If a record contains certain redacted information, the applicant may request a written explanation of the reasons for the redaction. The custodian may deny inspection of the file if there is an ongoing related criminal case until the case is dismissed or upon sentence for a conviction. The bill applies to internal investigations initiated after the effective date. Effective: April 12, 2019. Lobbyist: Meghan Dollar.

HB 19-1124, Enforcement of federal immigration detainers, prohibits state and local law enforcement officials from arresting or detaining an individual on the basis of a civil immigration detainer request. HB 19-1124 clarifies that law enforcement may assist federal authorities in the execution of a federal warrant or other federal criminal investigations. In addition, the bill prohibits a probation department officer or employee from providing personal information to federal immigration authorities. HB 19-1124 requires that persons in custody receive certain information in writing when being interviewed and again when they are released. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

HB 19-1191, Regulation of farm stands, allows a farm stand to operate regardless of whether or not the land on which the stand is located has been zoned for agriculture. Municipalities may still require appropriate licensing and/or permitting prior to operation. Effective: April 12, 2019. Lobbyist: Brandy DeLange.

HB 19-1217, PERA employees' local government division contribution rate, reduces an increase in the employee contribution increase scheduled for the Local Government Division of the Public Employees Retirement Association. The inadvertent increase included in prior legislation is repealed and will ensure the employee contributions remain at current levels. Effective: Immediately upon the governor's signature. Lobbyist: Kevin Bommer.

HB 19-1221, Regulation of e-scooters, excludes electric scooters from the definition of "toy vehicle" and includes electric scooters in the definition of "vehicle," thus authorizing the use of electric scooters on roadways. The bill affords riders of electric scooters the same rights and responsibilities that riders of electrical assisted bicycles have under the laws of the state. The bill preserves the authority of municipalities to determine whether or when to allow electronic scooters on sidewalks. Effective: Immediately upon the governor's signature. Lobbyist: Morgan Cullen.

HB 19-1224, Free menstrual hygiene products in custody, requires holding and correctional facilities, including county and municipal jails, to provide menstrual hygiene products at no cost to the person in custody. This requirement applies regardless of whether the facility is operated by a governmental or private entity. Effective: April 25, 2019. Lobbyist: Meghan Dollar.

HB 19-1225, No monetary bail for certain low-level offenses, prohibits the use of monetary bonds for any defendant charged with a petty offense, traffic offense, or a municipal offense. The bill does not apply to municipal offenses that have a comparable state misdemeanor. The use of monetary bond as part of a local pretrial release is allowed if the defendant is informed that they are entitled to release on a personal recognizance bond if he or she waits for the required bond hearing. Monetary bond conditions may be used for a defendant who fails to appear in court or violates a condition of the defendant's release on bond. Effective: April 25, 2019. Lobbyist: Meghan Dollar.

HB 19-1240, Sales and use tax administration, codifies sales tax rules adopted by the Department of Revenue with certain modifications. It establishes an economic nexus for remote sales without a retailer's physical presence in Colorado for sales made beginning June 1, 2019, and requires the collection and remittance of all sales taxes collected by the state based on the destination of the item sold. The act creates an exception to the destination sourcing rule for retailers with less than $100,000 in retail sales, as well as until the state develops a GIS-based address locator for accurate determination of proper taxing jurisdiction. The act also requires sales taxes collected by the state to be collected and remitted by marketplace facilitators beginning on October 1, 2019, for sales made by marketplace sellers, and the act contains other marketplace sales provisions. Existing provisions in the statute related to the implementation of the failed federal Marketplace Fairness Act (MFA) are repealed. With the exception of the repeal of MFA language and future availability of the address locator, the act does not implicate home rule municipalities that self-collect sales tax. Effective: June 1, 2019 – except marketplace facilitator requirements, which are effective Oct. 1, 2019. Lobbyist: Kevin Bommer.
 
HB 19-1250, Sexual offenses committed by a peace officer, creates the crime of unlawful sexual conduct by a peace officer, which is classified as a class 3 felony when a peace officer knowingly engages in sexual intrusion or penetration is inflicted on the victim and a class 4 felony when the victim is subject to unlawful sexual contact. The bill adds that the encounter includes circumstances where a peace officer contacts a victim for law enforcement purposes and the peace officer knows that the victim is or causes the individual to believe that he/she is the subject of an investigation. Victim consent is not a defense to sexual contact by a peace officer. An offender convicted of unlawful sexual contact must register as a sex offender and an offender convicted of class 3 felony unlawful sexual conduct is subject to lifetime supervision. The bill applies to all peace officers in Article 2.5 of Title 16. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.

HB 19-1335, Juvenile expungement clean-up, cleans up HB 17-1204, which created an expungement process in municipal and county courts. HB 19-1335 clarifies when juvenile delinquent records are automatically expunged; when a juvenile delinquent is eligible for expungement; and that juvenile record expungement applies in municipal court by establishing guidelines for municipal courts. The bill also streamlines who is notified when a record is expunged in municipal court, and when municipal courts must look back at previous cases to identify any that should be automatically expunged. Effective: Immediately upon the governor's signature. Lobbyist: Meghan Dollar.