Dear Friends,
Even though special sessions are considered somewhat rare, I have now been called into two of them. The first was in 2017 by Governor Hickenlooper to address a drafting error on a bill that would have unintentionally resulted in the loss of tax revenue for some special districts. The second time was this past week where we were called by Governor Polis to pass a package of bills to address the COVID-19 pandemic.
Unlike the 2017 special session where no bills passed and nothing was achieved, this time around was extremely productive. In just three days we passed 10 bills to address the various impacts of COVID-19. I've detailed the list of bills passed below and what they will do, but if you'd like to learn more you are welcome to join me for a virtual legislative town hall meeting on Saturday, December 19. We will also talk a little about the upcoming session slated to begin on January 13, 2021. You can find more details below.
I hope everyone enjoyed their Thanksgiving holiday and please, please, please--stay safe and continue following the COVID-19 safety guidelines!
Take care!
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General Assembly passes 10 relief bills in special session
The state legislature concluded its three-day special session last Wednesday, passing 10 COVID-19 relief bills that touched on seven topic areas outlined in the Governor's call to address the negative impacts of the pandemic. The COVID-19 relief package totaled approximately $350 million.
The passed legislation included:
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SB20B-001 COVID-19 Relief Small and Minority Businesses, Arts Organizations: This bill will send $57 million in direct aid, grants, and annual fee waivers to struggling small businesses--prioritizing those operating in counties experiencing severe capacity restrictions. It will also create grant programs and allocate funds specifically for art and cultural organizations, as well as minority-owned businesses.
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SB20B-002 Housing and Direct COVID Emergency Assistance: This bill will provide $50 million for emergency housing assistance to individuals and households who are in financial need due to COVID-19. Of that funding, $500,000 will specifically support the Eviction Legal Assistance Fund, which will help Coloradans stay in their homes this winter.
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HB20B-1002 Emergency Relief Programs for Child Care Sector: This bill will provide $45 million in relief for the child care industry through two COVID-19 emergency relief grant programs. This appropriation will expand access to safe and affordable child care, preserving child care opportunities for over 100,000 children and ensuring that facilities throughout the state can remain open.
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HB20B-1003 Food Pantry Assistance Grant Program: This bill will expand the food pantry assistance program and appropriate $3 million toward the program to provide food banks with the resources necessary to meet the needs of the rising number of Coloradans who are struggling with food insecurity as a result of the COVID-19 pandemic.
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HB20B-1004 Qualified Retailer Retain Sales Tax for Assistance: This bill will allow restaurants, bars, and food trucks to retain state sales tax they collect from November 2020 through February 2021. This will provide bars and restaurants from $2,000 to $10,000 in tax relief each month to help them make ends meet.
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HB20B-1005 Local Control to Impose Food Delivery Fee Restrictions: The bill authorizes local governments the ability to limit fees that a third-party food-delivery service may charge a retail food establishment where indoor dining is prohibited at a capacity of at least 50% or below. Many of the third-party food delivery services charge exorbitant fees that create a hardship on restaurants that are already suffering due to the increased restrictions.
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HB20B-1006 Insurance Premium Tax Payments and Credits: This bill will adjust how quarterly estimates on the tax on insurance premiums are calculated, as well as modify how credits against tax payments can be claimed or transferred in order to claim a refund for overpayments of the estimated premium tax liability. It fixes an error discovered in the CLIMBER Small Business Loan Program that was passed in June to help businesses who are struggling due to COVID-19.
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The CLIMBER Fund and HB20B-1006 on Insurance Premium Tax Payments
Many of the bills we passed in the special session to address the pandemic were extensions of bills we passed in June, such as utility assistance, food pantry assistance, housing assistance, etc. and their purpose was obvious to even the casual observer. But the bill I carried and passed, HB20B-1006 on Insurance Premium Tax Payments and Credits, is not as readily understood by the title alone.
Last June I passed a bill that established the CLIMBER Small Business Loan Program to help businesses who are struggling due to COVID-19. Money for the fund will be raised by selling insurance premium tax credits, matched 4-to-1 with private contributions. The CLIMBER Oversight Board, chaired by Treasurer Dave Young, discovered an issue with the law that needed to be addressed before launching the program on December 18. We needed to make sure the sale worked as a tax credit rather than a tax rebate, which will enable investors to apply their tax credit certificate on a quarterly, instead of annual basis, including their estimated pre-paid quarterly taxes.
This problem not only affected the CLIMBER program, but it also affected the Low Income Housing Tax Credits (LIHTC) as well. Fixing this tax credit problem now means the Colorado Treasury can get the best possible deal for small businesses and taxpayers when the credits are sold in December. With this fix, investors will be more likely to invest in these tax credits and the amount earned from this sale will be as high as possible. This will benefit Colorado small businesses at this most critical time.
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Virtual Legislative Town Hall Meeting: Saturday, December 19 at 10:30 am |
While we ordinarily do not meet in December, these are not ordinary times! Join us for a recap of the recently concluded Special Session, as well as a preview of the upcoming 2021 regular session.
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About Senator Rachel Zenzinger |
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Rachel Zenzinger was re-elected to a second term in the Colorado State Senate, representing District 19, in November 2020. Previously, she served on the Arvada City Council. Senator Zenzinger currently resides with her husband in Arvada where she is raising two teenagers.
Contact Information:
200 East Colfax, Denver, CO 80203
SenatorRachelZ@gmail.com
303-866-4840 office
303-748-0770 cell
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