Colo. Rev. Stat. § 37-98-106 – Future of severance taxes and water funding task force - created - membership - third party to conduct study - report - definitions - repeal.

(1) As used in this section, unless the context otherwise requires:
1. (a) Committee means the water resources and agriculture review committee created in section 37-98-102 (1)(a)(I).
2. (b) Task force means the future of severance taxes and water funding task force created in subsection (2) of this section.
3. (c) Third party means the third party hired by the department of natural resources pursuant to subsection (5)(a) of this section.
(2)
1. (a) The future of severance taxes and water funding task force is created in the department of natural resources.
2. (b) The task force consists of the following members:
  1. (I) The executive director of the department of natural resources or the executive director's designee;
  2. (II) The director of the Colorado water conservation board created in section 37-60-102 or the director's designee;
  3. (III) The commissioner of agriculture or the commissioner's designee;
  4. (IV) A representative of an environmental advocacy organization, appointed by the speaker of the house of representatives;
  5. (V) A representative of the oil and gas industry with experience in severance tax issues, appointed by the minority leader of the senate;
  6. (VI) A representative of a water conservation district, appointed by the president of the senate;
  7. (VII) A representative of the agriculture industry with, to the extent possible, experience in the intersection of agriculture, water projects, and the oil and gas industry, appointed by the minority leader of the house of representatives;
  8. (VIII) A county commissioner from a county that contains oil and gas operations, appointed by the governor;
  9. (IX) An elected municipal official or city or town manager from a city, town, or city and county that has been socially or economically impacted by the development, processing, or energy conversion of oil and gas operations subject to taxation under article 29 of title 39, appointed by the governor; and
  10. (X) The executive director of the department of local affairs or the executive director's designee.
(3) The purpose of the task force is to consult and coordinate with the third party in the development of a study regarding the future of severance taxes and water funding in the state.
(4)
1. (a) No later than September 1, 2025, the appointing authorities shall make appointments to the task force.
2. (b) The department of natural resources shall provide staff and other resources to support the work of the task force.
3. (c) The task force shall conduct meetings as necessary to perform its duties pursuant to this section. Every meeting of the task force must be open to the public and include an opportunity for public testimony.
4. (d) The members of the task force serve without compensation but may be reimbursed for any reasonable expenses incurred in the performance of the duties required under this section.
(5)
1. (a) The department of natural resources shall contract with a third party to conduct a future of severance taxes and water funding study. The purpose of the study is to explore ways to continue funding water needs and energy impact grants distributed pursuant to section 39-29-110 (1)(b)(I) in the face of the decreasing availability of severance tax revenue collected pursuant to article 29 of title 39 and to develop related recommendations. The study must focus on identifying ways to alleviate the need to transfer revenues derived from severance taxes to the general fund and to replace severance tax revenue that was previously transferred.
2. (b) No later than January 15, 2026, the third party shall submit a draft report to the department of natural resources and the task force describing the study's findings and any recommendations. The task force shall review and provide input on the draft report.
3. (c) No later than July 15, 2026, the third party shall:
  1. (I) In consultation with the department of natural resources and the task force, create a final report that incorporates the task force's input regarding the draft report; and
  2. (II) Submit the final report to the committee.
4. (d) Following the submission of the report to the committee, the task force shall present a summary of the report to the committee during the 2026 legislative interim.
(6) The task force shall be funded solely with money from the severance tax perpetual base fund created in section 39-29-109 (2)(a)(I.5).
(7) This section is repealed, effective December 31, 2026.

Source: L. 2025: Entire section added, (SB 25-040), ch. 193, p. 860, § 2, effective August 6.

Cross references: For the legislative declaration in SB 25-040, see section 1 of chapter 193, Session Laws of Colorado 2025.

PROHIBITION OF TURF AND INVASIVE PLANTS