Methods to Increase the Use of Transit

The statewide transit pass exploratory committee (committee) is created in the department of transportation (department) to produce a viable proposal for the creation, implementation, and administration of a statewide transit pass (proposal). The committee is required to meet as necessary to produce a viable proposal by July 1, 2026, with the goal of implementing a statewide transit pass by January 1, 2028. The committee consists of members, appointed by the executive director of the department, who represent specified types of organizations and have specified knowledge or experience. In conducting its work, the committee is required to consider specified issues and to solicit input from subject matter experts and interested parties across the state. The committee is required to submit its proposal, including recommendations for any necessary legislation in connection with the proposal, to the executive director of the department and the members of the transportation legislation review committee of the general assembly on or before July 1, 2026.

The existing ozone season transit grant program is combined with a new program to provide youth fare free transit grants and together are created as the zero fare transit grant program in the Colorado energy office (office). The zero fare transit grant program is created to provide grants to:

• The Colorado association of transit agencies (CASTA) for the purpose of providing grants to eligible transit agencies to offer either free transit services for a minimum of 30 days during ozone season or fare free year-round transit services for individuals who are 19 years of age or younger; and
• The regional transportation district (RTD) for the purpose of providing fare free year-round transit services for individuals who are 19 years of age or younger.

To receive a grant, CASTA or the RTD must submit an application to the office in accordance with the act and policies established by the office. An eligible transit agency that receives a grant from CASTA may use the grant money to either cover the costs associated with providing new or expanded free transit services within its service area during ozone season or to provide operating support for its transit operations and general transit programs so long as the eligible transit agency provides uninterrupted fare free year-round transit services to youth riders. The RTD may use the grant money to provide operating support for its transit operations and general transit programs, so long as the RTD provides uninterrupted fare free year-round transit services for youth riders.

The RTD is required to report to the office and an eligible transit agency that receives a grant from CASTA is required to report to CASTA regarding its use of the grant money. CASTA is required to submit to the office a summary of the reported information for all eligible transit agencies that received a grant through CASTA. The office is required to establish policies governing the zero fare transit grant program and to report to the house of representatives transportation, housing, and local government committee and the senate transportation committee, or their successor committees, by December 31 of each year of the program.

The zero fare transit fund (fund) is created in the treasury. The fund consists of money transferred to the fund from the ozone season transit grant program fund, money transferred to the fund from the multimodal transportation options fund, any other money that the general assembly appropriates or transfers to the fund, and any gifts, grants, or donations credited to the fund. The money in the fund is continuously appropriated to the office for the zero fare transit grant program.

The state treasurer is directed to transfer any money remaining in the ozone season transit grant program fund on June 30, 2024, to the fund. In addition, the state treasurer is directed to transfer $10 million from the multimodal transportation and mitigation options fund to the fund on July 1, 2024.

A regional transportation authority is allowed to derive up to one-half, rather than one-third, of its total revenue from a visitor benefit tax and, unlike in the past, to levy such a tax at a rate greater than 2%.

The department is authorized to use money that was previously transferred to the state highway fund for a designated purpose in connection with the development of the Burnham Yard rail property for new purposes including site preparation, site enhancements, planning, and facilitating a track alignment that preserves buildable land while promoting transit and rail capacity and increasing safety in connection with the development of the Burnham Yard rail property.

APPROVED by Governor May 16, 2024

EFFECTIVE May 16, 2024
(Note: This summary applies to this bill as enacted.)