SB 64 — Modify Colorado Agricultural Future Loan Program

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0503.01This Christopherbill McMichaelhas x4775been SENATEprepared BILLfor 26-064the SENATEsignatures SPONSORSHIPof SimpsonandRoberts,the Amabile,Bridges,Coleman,Exum,GonzalesJ.,Hinrichsen,Jodeh,appropriate Kipp,Kolker,Lindstedt,Liston,Marchman,MichaelsonJenet,PeltonR.,Rodriguez,Snyder,legislative Wallace,officers Weissman HOUSE SPONSORSHIP McCormick and Soper,the Bacon,Governor. Boesenecker, Duran, English, Espenoza, Goldstein, Gonzalez R., Hamrick, Joseph, Lieder, Lindsay, Lukens, Marshall, Martinez, Mauro, McCluskie, Nguyen, Richardson, Rutinel, Slaugh, Smith, Stewart K., Taggart, Titone d d e 2 E a 2 S U 1 U g 1 H d c e a Senate Committees House Committees R M Agriculture & Natural Resources Agriculture, Water & Natural Resources 3 A BILL FOR AN ACT e n 2 C ONCERNING MODIFYING THE C OLORADO AGRICULTURAL FUTURE E m 2 S n 0 LOAN PROGRAM TO ALLOW CERTAIN ELIGIBLE ENTITIES TO O U h H i r QUALIFY FOR FUNDING FROM THE PROGRAM .

aTo Mdetermine Rwhether dthe BillGovernor Summaryhas dsigned (Note:the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisSENATE summaryBILL applies26-064 toBY thisSENATOR(S) billSimpson as introduced and doesRoberts, dAmabile, 6Bridges, eExum, 0GonzalesJ.,Hinrichsen,Jodeh,Kipp,Kolker,Lindstedt,Liston,Marchman, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillMichaelson EJenet, aPelton ,R., passesRodriguez, thirdSnyder, readingWallace, inWeissman, theColeman; house of introduction, a bill summary that T U 1 N g r applies to the reengrossed version of this bill will be available at S d a http://leg.colorado.gov.) e b R e F The bill modifies the Colorado agricultural future loan program (program) to permit certain eligible entities to receive funding from the program.

AnalsoREPRESENTATIVE(S)McCormickandSoper,Bacon,Boesenecker, eligibleDuran, entityEnglish, isEspenoza, definedGoldstein, asGonzalez anR., entityHamrick, thatJoseph, isLieder,Lindsay,Lukens,Marshall,Martinez,Mauro,Nguyen,Richardson, certifiedRutinel, bySlaugh, theSmith, eStewart divisionK., ofTaggart, conservationTitone, orMcCluskie. an entity that:

nCONCERNING 2MODIFYING !THE Isadistrictthathasauthoritytoconductwateractivities,anC mOLORADO 2AGRICULTURAL TFUTURE nLOAN 0PROGRAM ATO UALLOW 1CERTAIN EELIGIBLE iENTITIES rTO ShadingQUALIFY denotesFOR HOUSEFUNDING amendment.FROM THE PROGRAM .

Double underlining denotes SENATE amendment.

S a r Capital letters or bold & italic numbers indicate new material to be added to existing law.R e Dashes through the words or numbers indicate deletions from existing law.

n F irrigation district, or a ditch and reservoir company;

and ! Has a letter of support from an entity certified by the division of conservation.

Thebilldirectsthecommissionerofagriculturetoadoptrulesthat prioritize the provision of loans to eligible entities that applyfor loans in order to acquire and conserve agriculturally productive land and to transfer ownership of that land to an eligible farmer or rancher who qualifies for a loan from the program.

SECTION1.SECTION 1.

InColoradoRevisedStatutes,35-1.2-102,add(5.5)In Colorado Revised Statutes, 35-1.2-102, add (5.5) as follows:

(5.5)________ "ELIGIBLECapital ENTIT"letters MEANSor ANbold ENTITY& THATitalic :numbers indicate new material added to existing law;

(a)dashes ICERTIFIEDBYTHEDIVISIONOFCONSERVATIONPURSUANTTOthrough SECTIONwords 12-15-104;ORor (b)numbers (I)indicate (A)deletions Ifrom Aexisting DISTRICTlaw THATand HASsuch AUTHORITYmaterial TOis CONDUCTnot WATERpart ACTIVITIESof ,the ASact. THOSE TERMS ARE DEFINED IN SECTION 37-45.1-102;OR (B) IS AN IRRIGATION DISTRICT CREATED PURSUANT TO ARTICLE 41, 45, 46, 47, 48,OR 50 OF TITLE 37 OR A DITCH AND RESERVOIR COMPANY CREATED PURSUANT TO ARTICLE 42 OF TITLE7;AND (II) H AS A LETTER OF SUPPORT,IN A FORM APPROVED BY THE COMMISSIONER ,FROM AN ENTITY THAT IS CERTIFIED PURSUANT TO SECTION 12-15-104.

(5.5) "ELIGIBLE ENTITY "MEANS AN ENTITY THAT :

(a) I CERTIFIED BY THE DIVISION OF CONSERVATION PURSUANT TO SECTION 12-15-104;

OR (b) (I) (A)SADISTRICT THAT HAS AUTHORITY TOCONDUCT WATER ACTIVITIES, AS THOSE TERMS ARE DEFINED IN SECTION 37-45.1-102;

OR (B) ISANIRRIGATIONDISTRICT CREATEDPURSUANT TOARTICLE 41, 45, 46, 47, 48,OR 50 OF TITLE 37 OR A DITCH AND RESERVOIR COMPANY CREATED PURSUANT TO ARTICLE 42 OF TITLE 7;AND (II) H AS A LETTER OF SUPPORT , IN A FORM APPROVED BY THE COMMISSIONER ,FROMANENTITYTHATISCERTIFIEDPURSUANTTOSECTION 12-15-104.

In Colorado Revised Statutes, 35-1.2-103, amend (6)(a),(6)(a),(7) (7)introductoryportion, introductory(7)(b)(II),(7)(c)(VII)introductoryportion, portion, (7)(b)(II), (7)(c)(VII) introductory portion, and (7)(c)(VII)(F);

ColoradoColoradoagriculturalfutureloanprogram-created agricultural future loan program - -2- 064 created - application - criteria - awards - rules.

(6) ThedepartmentshallreviewapplicationsreceivedpursuanttoThe department shall review applications received pursuant to this section.

In awarding grants and distributingdistributingmoneytofinancialentities money to financial entities for awarding loans, the department shall:

(a) Ensure applicants approved for loans or grants meet the requirements for eligible businesses,GIBLEbusinesses, ENTITIE,ELIGIBLE ENTITIES , and eligible farmersorrancherspursuanttosection35-1.2-102(5),(5.5),and(6);andfarmers (7)or Pursuantranchers pursuant to articlesection 435-1.2-102 of(5), title(5.5), 24, the commissioner shall promulgate ADOPT such rules as are required in this article 1.2 and such(6); additional rules as may be necessary to implement the loan program.

and (7) Pursuant to article 4 of title 24, the commissioner shall promulgate ADOPT such rules as are required in this article 1.2 and such additional rules as may be necessary to implement the loan program.

(b) OnOnandafterJanuary1,2023,totheextentpracticable,prioritize andthe afterprovision Januaryof 1,loans 2023, to theeligible extentfarmers practicable,or prioritizetheprovisionofloanstoeligiblefarmersorrancherswhoapplyranchers who apply for loans or grants from the loan program and who:

PAGE 2-SENATE BILL 26-064 (II) Represent a population that is underserved or underrepresented in Colorado agriculture;

(VII) Permissible uses of moneyawardedaslow-interestloanstomoney awarded as low-interest loans to eligible farmers or ranchers,IBLEranchers, ENTITIE,ELIGIBLE ENTITIES , and eligible businesses, which uses may include:

AND (d) PPRIORITIZETHEPROVISIONOFLOANSTOELIGIBLEENTITIESTHAT RIORITIZEAPPLY THEFOR PROVISION OF LOANS TO ELIGIBLEACQUIRE ENTITIESAND THATCONSERVE APPLYAGRICULTURALLY FORPRODUCTIVE LOANSLAND AND THAT SEEK TO ACQUIRETRANSFER ANDOWNERSHIP CONSERVEOF AGRICULTURALLYTHE PRODUCTIVELANDANDTHATSEEKTOTRANSFEROWNERSHIPOFTHELANDLAND TO AN ELIGIBLE FARMER OR RANCHER WHO QUALIFIES FOR A LOAN PURSUANT TO SUBSECTION (7)(b)(OR(7)(b)(I)OR (7)(b)(IIOF(7)(b)(II)OF THIS SECTIO.SECTION .

Act subject to petition - effective date - -3-applicability. 064 applicability.(1) Thisacttakeseffectat12:01a.m.onthedayfollowing the expiration of the ninety-day period after final adjournment of the generalassembly(August12,2026,ifadjournmentsinedieisonMay13, 2026);

except(1) that,This if a referendum petition is filed pursuant to section 1 (3)ofarticleVofthestateconstitutionagainstthisactoranitem,section, or part of this act withintakes such period, then the act, item, section, or part will not take effect unless approved bythe people at the12:01 generala.m. election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2)on Thisthe actday appliesfollowing tothe applicationsexpiration submittedof onthe orninety-day period after final adjournment of the applicablegeneral effectiveassembly date(August 12, 2026, if adjournment sine die is on May 13, 2026);exceptthat,if areferendumpetitionisfiledpursuanttosection1(3) of article V of the state constitution against this act.act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in suchcase,willtakeeffectonthedateof the official declaration of the vote thereon by the governor.

-4-PAGE 0643-SENATE BILL 26-064 (2) This act applies to applications submitted on or after the applicable effective date of this act.

____________________________ ____________________________ James Rashad Coleman, Sr.

Julie McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 4-SENATE BILL 26-064