C.R.S. § 24-46-404: Transit investment project approval - director - commission - review.

(1) Upon receipt of a local government's application for the approval of a transit investment project, the director or the director's designee shall review the application and make an initial determination as to whether the application has met the criteria for a transit investment project specified in section 24-46-403 (4).

(2) After reviewing an application for approval of a transit investment project for completeness, the director shall forward the application:

(a) To the third-party analyst who will review the application pursuant to section 24-46-403 (3)(j);

(b) At least thirty days prior to a public hearing held pursuant to subsection (3) of this section, to any local government that is adjacent to the location of the proposed transit investment area to notify the adjacent jurisdictions of the proposal; and

(c) To the commission with a recommendation that the commission approve, approve with conditions, or deny the application.

(3) (a) Upon receiving an application for the approval of a transit investment project, the commission shall hold a public hearing, subject to the open meetings law under part 4 of article 6 of this title 24, to review and consider the application. The commission may hold the hearing virtually.

(b) After holding a hearing pursuant to subsection (3)(a) of this section, while giving consideration to the director's recommendations and the report completed by a third-party analyst pursuant to section 24-46-403 (3)(j), the commission shall timely approve, approve with conditions, or deny an application.

(c) The commission shall approve a local government's application for the approval of a transit investment project if a majority of the commissioners participating in the review of the application finds that the application demonstrates that each of the criteria identified in section 24-46-403 (4) is materially met and has been prioritized in accordance with section 24-46-403 (3)(f)(II).

(d) (I) If the commission approves an application for a transit investment project, it shall adopt a resolution that specifies:

(A) The local government that has been approved to undertake a transit investment project;

(B) The boundary of the transit investment area established in connection with the transit investment project;

(C) Whether the commission has authorized the creation of a transit investment authority;

(D) The baseline growth rate, pursuant to section 24-46-403 (2)(c);

(E) The approved financing term;

(F) The maximum dollar amount of state sales tax increment revenue that can be annually dedicated to the transit investment project, as determined pursuant to subsection (3)(j)(II) of this section; and

(G) The total cumulative dollar amount of state sales tax increment revenue that can be dedicated to the transit investment project, as determined pursuant to subsection (3)(j)(I) of this section.

(II) In determining the maximum annual dollar amount of state sales tax increment revenue that can be dedicated to the transit investment project pursuant to subsection (3)(b)(I)(E) of this section, the commission shall consider the amount identified by the applicant pursuant to section 24-46-403 (3)(i)(II) and shall attempt to ensure that the maximum annual dollar amount does not prevent dedicating the total cumulative dollar amount established by the commission pursuant to this subsection (3)(d) to be paid to the transit investment project. After adopting the resolution required pursuant to this subsection (3)(d), the commission may adopt a subsequent resolution that increases the maximum annual dollar amount that can be dedicated to the transit investment project, but the commission shall not increase the maximum annual dollar amount by an amount that would result in dedicating a total dollar amount to the transit investment project that exceeds the total cumulative dollar amount established by the commission pursuant to this subsection (3)(d).

(III) (A) In determining the total cumulative dollar amount of state sales tax increment revenue that can be dedicated to the transit investment project pursuant to subsection (3)(d)(I)(F) of this section, the commission shall award an amount equal to the total cumulative dollar amount of state sales tax increment revenue that the third-party analyst determines can be dedicated to the transit investment project as reported pursuant to section 24-46-403 (3)(j).

(B) Notwithstanding subsection (3)(d)(III)(A) of this section, if the estimated eligible costs identified pursuant to section 24-46-403 (3)(c)(II) are less than the total cumulative dollar amount of state sales tax increment revenue that the third-party analyst determines can be dedicated to the transit investment project as reported pursuant to section 24-46-403 (3)(j) and the application did not affirm that state sales tax increment revenue that exceeds the estimated eligible costs will be spent on additional eligible costs incurred in connection with the transit investment project, in determining the total cumulative dollar amount of state sales tax increment revenue that can be dedicated to the transit investment project pursuant to subsection (3)(d)(I)(F) of this section, the commission shall award a total cumulative dollar amount of state sales tax increment revenue equal to the estimated eligible costs identified pursuant to section 24-46-403 (3)(c)(II).

(C) Notwithstanding subsection (3)(d)(III)(A) of this section, if the estimated eligible costs identified pursuant to section 24-46-403 (3)(c)(II) are less than the total cumulative dollar amount of state sales tax increment revenue that the third-party analyst determines can be dedicated to the transit investment project as reported pursuant to section 24-46-403 (3)(j) and the application affirmed that state sales tax increment revenue that exceeds the estimated eligible costs will be spent on additional eligible costs incurred in connection with the transit investment project, in determining the total cumulative dollar amount of state sales tax increment revenue that can be dedicated to the transit investment project pursuant to subsection (3)(d)(I)(F) of this section, the commission shall award a total cumulative dollar amount of state sales tax increment revenue equal to the estimated eligible costs identified pursuant to section 24-46-403 (3)(c)(II) and allow for the expenditure of additional state sales tax increment revenue for additional eligible costs incurred in connection with the transit investment project beyond those estimated in the application such that the applicant can spend in total, on additional and estimated eligible costs, up to the total cumulative dollar amount of state sales tax increment revenue determined by the third-party analyst.

(e) The commission shall not approve any proposed transit investment project that would likely create a state sales tax increment revenue dedication of more than seventy-five million dollars to all transit investment projects in any given fiscal year.

(f) (I) The commission shall not approve more than three transit investment projects pursuant to this subsection (3) in any calendar year and shall not approve more than six transit investment projects pursuant to this subsection (3) in total.

(II) If the commission determines more than three transit investment project applications in a given calendar year meet each of the criteria established in section 24-46-403 (4), the commission shall prioritize the three projects that the commission will approve using the following criteria:

(A) Inclusion in or fit with local, regional, or state transportation plans;

(B) Statewide geographic equity;

(C) Scale of impact; and

(D) The dedication of matching local, special district, or other nonstate provided funding for the project.

(III) If the commission does not approve a proposed transit investment project because doing so would cause the commission to approve more than three proposed transit investment projects in the same calendar year, the commission may consider such a project for approval, approval with conditions, or denial in the next calendar year, subject to the prioritization of all applications received in the next year and all applications being reconsidered from the prior year being considered in a single pool.

(4) (a) As part of the approval of a proposed transit investment project, the commission shall authorize:

(I) The department to collect the state sales tax increment revenue in connection with the proposed transit investment project on behalf of the relevant financing entity for the duration of the financing term up to the maximum annual and total cumulative dollar amounts of state sales tax increment revenue that can be dedicated to the transit investment project;

(II) The department to adjust the base year revenue by the amount of the baseline growth rate specified in the resolution approving a transit investment project;

(III) A financing entity to receive and use the state sales tax increment revenue up to the maximum annual and total cumulative dollar amounts that can be dedicated to the transit investment project for the duration of the financing term; and

(IV) The use of the state sales tax increment revenue by the financing entity pursuant to this part 4 and any conditions of approval imposed by the commission and incorporated in writing into the commission's resolution approving the proposed transit investment project.

(b) In implementing the authorization described in subsection (4)(a)(II) of this section, the department shall remit state sales tax increment revenue to the financing entity on a monthly basis promptly after collecting that revenue.

(5) (a) For each year of the financing term, the amount of state sales tax increment revenue dedicated to a transit investment project must not exceed the maximum annual dollar amount specified by the commission pursuant to subsection (3) of this section. The total amount of state sales tax increment revenue dedicated to a transit investment project for the entire duration of the project shall not exceed the total cumulative dollar amount specified by the commission pursuant to subsection (3) of this section. The department shall track the maximum annual and total cumulative dollar amounts of state sales tax increment revenue remitted to the financing entity in connection with a transit investment project and shall notify the commission when cumulative payments equal ninety percent of the limits set by the commission pursuant to subsection (3) of this section for the commission's concurrence regarding the dollar limits.

(b) (I) After the department has remitted the maximum annual dollar amount of state sales tax increment revenue specified by the commission pursuant to subsection (3) of this section to the financing entity for a calendar year, the department shall not remit any additional state sales tax increment revenue from the state to the financing entity until the following year.

(II) After the department has remitted the total cumulative dollar amount of state sales tax increment revenue specified by the commission pursuant to subsection (3) of this section to the financing entity, the department shall not remit any additional state sales tax increment revenue from the state to the financing entity, even if the approved financing term is not completed.

(III) After the financing term specified by the commission pursuant to subsection (3) of this section is completed, the department shall not remit any additional state sales tax increment revenue from the state to the financing entity, even if the total cumulative dollar amount of state sales tax increment revenue specified by the commission pursuant to subsection (3) of this section has not been reached.

(IV) The department shall notify the commission if it is no longer remitting state sales tax increment revenue to the financing entity pursuant to this subsection (5)(b).

(6) Following the commission's approval of an application, and the establishment of the terms of award including the items described in subsection (3)(d)(I) of this section, the commission shall promptly transmit written notice and a copy of the approval to the executive director of the department. The commission shall include any information deemed necessary by the department to fulfill its obligations pursuant to this part 4 in the written notice.