SENATE 3rd Reading Unamended February 18, 2009 SENATE Amended 2nd Reading February 17, 2009First Regular Session Sixty-seventh General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 09-0131.01 Duane Gall SENATE BILL 09-016 SENATE SPONSORSHIP Kopp and Penry, Gibbs, Schwartz HOUSE SPONSORSHIP King S. and Scanlan, Lundberg Senate Committees House Committees Finance A BILL FOR AN ACT Concerning measures to encourage the restoration of forest areas affected by bark beetle infestation. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Wildfire Issues in Wild Land-Urban Interface Areas. Provides a 5-year exemption from business personal property taxes for qualified businesses that remove trees killed by bark beetles if such businesses assist in forest restoration efforts on the affected land after the beetle-killed timber is removed. Establishes a revolving fund to provide start-up revenues for new Colorado businesses that process and sell beetle-killed timber for beneficial uses. Directs the state forester to: Publish a list of affected lands, designating those areas where the need for clearing of beetle-killed timber is most urgent; and Offer the services of an ombudsman to assist property owners and businesses in applying for any necessary federal and state permits or other authorization to go onto forest lands to harvest beetle-killed timber. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 39-3-118.5, Colorado Revised Statutes, is amended to read: 39-3-118.5. Business personal property - exemption - removal of beetle-killed timber - definitions - conditions - recapture. (1) For property tax years commencing on and after January 1, 1996, business personal property shall be exempt from the levy and collection of property tax until such business personal property is first used in the business after acquisition. (2) (a) For the property tax year commencing on January 1, 2009, and for the subsequent property tax years through the property tax year commencing on January 1, 2013, all business personal property that is used to harvest, transport, process, and market beetle-killed timber and is first used in a business during such year, but only to the extent that it is used to harvest, transport, process, and market beetle-killed timber, shall be exempt from the levy and collection of property tax. The exemption provided in this paragraph (a) shall be available during all years that such property is subject to property taxation. (b) The value of the business personal property after the exemption is applied as specified in paragraph (a) of this subsection (2) shall be the actual value of the property used to determine whether the property also qualifies for an exemption pursuant to section 39-3-119.5. (c) As used in this subsection (2), "beetle-killed timber" means dead pine or spruce trees, or parts thereof, taken from land designated by the Colorado state forest service as land affected by the bark beetle infestation. (3) (a) To claim the exemption provided in subsection (2) of this section, the taxpayer must undertake, and substantially complete as agreed, reseeding or other forest restoration efforts, as described in a forest stewardship plan approved by the Colorado state forest service, within the time period specified in such plan. (b) Taxes that would have been payable but for the exemption provided in subsection (2) of this section shall be immediately payable and subject to recapture if the taxpayer initially met the conditions set forth in paragraph (a) of this subsection (3) and, on or before December 31, 2014, fails to meet one or more of the conditions. SECTION 2. Part 3 of article 31 of title 23, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 23-31-312. Bark-beetle mitigation loans - definitions - revolving fund - repeal. (1) Short title. This section shall be known and may be cited as the "Colorado Bark-beetle Mitigation Act". (2) Definitions. As used in this section, unless the context otherwise requires: (a) "Forest service" means the Colorado state forest service identified in section 23-31-302 and the division of forestry created in section 24-33-104 (1) (k), C.R.S. (b) "State forester" means the state forester appointed pursuant to section 23-31-207. (3) Bark-beetle mitigation loan program. The forest service shall issue a statewide request for proposals for loans to businesses to provide start-up capital for new facilities or equipment to harvest, remove, use, and market beetle-killed timber taken from private, federal, state, county, or municipal forest lands. (4) Eligibility requirements - applications. The forest service shall solicit applications for, and shall make, loans under this section. In deciding whether to make a loan, the forest service shall consider the extent to which the applicant: (a) Helps retain or expand other local businesses; (b) Helps maintain or increase the number of jobs in the area; (c) Contributes to the stability of rural communities; (d) Demonstrates operational experience and a good reputation; (e) Promotes and publicizes the efforts undertaken pursuant to this section; and (f) Helps recruit new business activity in the area, under this section and otherwise. (5) Report. No later than July 1, 2010, the state forester shall submit a report to the governor, which report shall include an assessment of whether, and to what extent, projects funded by loans under this section have achieved the purposes identified in this section. (6) Administrative costs. The forest service may utilize no more than twenty percent of any amounts appropriated in any fiscal year for its direct and indirect costs in administering the loan program. (7) Bark-beetle mitigation revolving fund. There is hereby created in the state treasury the bark-beetle mitigation revolving fund, which shall be administered by the department of higher education. All moneys in the fund are continuously appropriated to the department of higher education for allocation to the board of governors of the Colorado state university system for loans specified in this section. The state treasurer may accept gifts, grants, and donations for deposit in the fund. All moneys in the fund at the end of each fiscal year shall be retained in the fund and shall not revert to the general fund or any other fund. (8) Repeal. This section is repealed, effective July 1, 2014. SECTION 3. 23-31-304, Colorado Revised Statutes, is amended to read: 23-31-304. State responsibility determined. (1) The state forester shall: (a) Determine, in consultation with local authorities and with the approval of the governor, geographic areas of the state, including wild land-urban interface areas, in which the state has a financial responsibility for managing forest fires. The management of fires in all other areas is primarily the responsibility of local or federal agencies, as the case may be. The state forester may exclude all lands owned or controlled by the federal government or any agency thereof, and the state forester shall exclude all lands within the exterior boundaries of incorporated cities or towns. (b) Determine, in consultation with local authorities and with the approval of the governor, geographic areas of the state, including wild land-urban interface areas, in which infestation by bark beetles has created an imminent danger of fire and in which the removal of beetle-killed timber should be encouraged, whether through financial incentives or loans under sections 39-3-118.5, C.R.S., and 23-31-312, respectively, or otherwise; and (c) Provide a designated staff member to act as an ombudsman to assist property owners and businesses in applying for any necessary federal, state, or local permits, private licenses or easements, or other authorization to go onto public or private forest lands to harvest beetle-killed timber. SECTION 4. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.