Colo. Rev. Stat. § 12-15-103, Conservation easement oversight commission

(1) There is created in the division a conservation easement oversight commission. The commission is a type 2 entity, as defined in section 24-1-105, and exercises its powers and performs its duties and functions under the division. The commission consists of nine members as follows:

(a) One voting member representing the great outdoors Colorado trust fund, appointed by and serving at the pleasure of the executive director of the state board of the great outdoors Colorado trust fund;

(b) One voting member representing the department of natural resources, appointed by and serving at the pleasure of the executive director of the department of natural resources;

(c) One voting member representing the department of agriculture, appointed by and serving at the pleasure of the commissioner of agriculture;

(d) Four voting members appointed by the governor as follows:

(I) Two voting representatives of certified conservation easement holders;

(II) A voting individual who is competent and qualified to analyze the conservation purpose of conservation easements; and

(III) A voting individual who meets the definition of socially disadvantaged farmer or rancher in 7 U.S.C. sec. 2279;

(e) Two voting members of the general public, one appointed by the president of the senate to serve at the pleasure of the president and one appointed by the speaker of the house of representatives to serve at the pleasure of the speaker. Appointments made pursuant to this subsection (1)(e) are for three-year terms and no member shall serve more than two consecutive terms.

(2) In making appointments to the commission, the governor shall consult with the three members of the commission appointed pursuant to subsections (1)(a) to (1)(c) of this section and with appropriate organizations representing the particular interest or area of expertise that the appointees in subsections (1)(d)(I) and (1)(d)(II) of this section represent. Not more than two of the governor's appointees serving at the same time shall be from the same political party. In making the initial appointments, the governor shall appoint one member for a term of two years. All other appointments by the governor are for terms of three years. No member shall serve more than two consecutive terms. In the event of a vacancy by death, resignation, removal, or otherwise, the governor shall appoint a member to fill the unexpired term. The governor may remove any member for misconduct, neglect of duty, or incompetence.

(3) (a) At the request of the division or the department of revenue, the commission shall advise the division and the department of revenue regarding conservation easements for which a state income tax credit is claimed pursuant to section 39-22-522.

(b) The commission shall review conservation easement tax credit certificate applications and requests for optional preliminary advisory opinions in accordance with section 12-15-106.

(4) The commission shall meet at least quarterly. The division shall convene the meetings of the commission and provide staff support as requested by the commission. A majority of the voting members of the commission constitutes a quorum for the transaction of all business, and actions of the commission require a vote of a majority of the voting members present in favor of the action taken. The commission may delegate to the director of the division the authority to act on behalf of the commission on occasions and in circumstances that the commission deems necessary for the efficient and effective administration and execution of the commission's responsibilities under this article 15.

(5) The commission shall establish a conflict-of-interest policy to ensure that any member of the commission is disqualified from performing an act that conflicts with a private pecuniary interest of the member or from participating in the deliberation or decision-making process for certification for an applicant represented by the member.

(6) The commission shall advise and make recommendations to the director of the division regarding the certification of conservation easement holders in accordance with section 12-15-104.

(7) Commission members are immune from liability in accordance with the provisions of the Colorado Governmental Immunity Act, article 10 of title 24.

(8) Repealed.

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 718, � 1, effective October 1; (8) amended, (HB 19-1264), ch. 420, p. 3681, � 13, effective October 1. L. 2022: IP(1) amended, (SB 22-162), ch. 469, p. 3393, � 114, effective August 10. L. 2024: IP(1), (1)(a), IP(1)(d), and (1)(d)(I) amended, (1)(d)(III) added, and (8) repealed, (SB 24-126), ch. 211, p. 1290, � 2, effective August 7. L. 2025: IP(1) amended, (SB 25-275), ch. 377, p. 2041, � 56, effective August 6.

Editor's note: (1) This section is similar to former � 12-61-1103 as it existed prior to 2019.

(2) Before its relocation in 2019, this section was amended in HB 19-1264. Those amendments were superseded by the repeal and reenactment of this title 12, effective October 1, 2019. For those amendments to the former section in effect from June 30, 2019, to October 1, 2019, see HB 19-1264, chapter 420, Session Laws of Colorado 2019.

Cross references: (1) For the short title (the Debbie Haskins 'Administrative Organization Act of 1968' Modernization Act) in SB 22-162, see section 1 of chapter 469, Session Laws of Colorado 2022.

(2) For the legislative declaration in SB 24-126, see section 1 of chapter 211, Session Laws of Colorado 2024.

12-15-104. Certification of conservation easement holders - rules - definition. (1) The division shall, in consultation with the commission created in section 12-15-103, establish and administer a certification program for qualified organizations under section 170 (h) of the federal Internal Revenue Code of 1986, as amended, that hold conservation easements for which a tax credit is claimed pursuant to section 39-22-522. The purposes of the program are to:

(a) Establish minimum qualifications for certifying organizations that hold conservation easements to encourage professionalism and stability; and

(b) Identify fraudulent or unqualified applicants, as determined under the rules of the division, to prevent them from becoming certified by the program.

(2) The division shall establish and accept applications for certification. The division shall conduct a review of each application and consider the recommendations of the commission before making a final determination to grant or deny certification. In reviewing an application and in granting certification, the division and the commission may consider:

(a) The applicant's process for reviewing, selecting, and approving a potential conservation easement;

(b) The applicant's stewardship practices and capacity, including the ability to maintain, monitor, and defend the purposes of the easement;

(d) The applicant's system of governance and ethics regarding conflicts of interest and transactions with related parties as described in section 267 (b) of the federal Internal Revenue Code of 1986, as amended, donors, board members, and insiders. For purposes of this subsection (2)(d), insiders means board and staff members, substantial contributors, parties related to those above, those who have an ability to influence decisions of the organization, and those with access to information not available to the general public.

(e) Any other information deemed relevant by the division or the commission; and

(f) The unique circumstances of the different entities to which this certification applies as set forth in subsection (4) of this section.

(3) At the time of submission of an application, and each year the entity is certified pursuant to this section, the applicant shall pay the division a fee, as prescribed by the division, to cover the costs of the division and the commission in administering the certification program for entities that hold conservation easements for which tax credits are claimed pursuant to section 39-22-522. The division shall have the authority to accept and expend gifts, grants, and donations for the purposes of this section. The state treasurer shall credit fees, gifts, grants, and donations collected pursuant to this subsection (3) to the conservation cash fund created in section 12-15-107. On or before each January 1, the division shall certify to the general assembly the amount of the fee prescribed by the division pursuant to this subsection (3).

(4) The certification program applies to:

(a) Nonprofit entities holding easements on property with conservation values consisting of recreation or education, protection of environmental systems, or preservation of open space;

(b) Nonprofit entities holding easements on property for historic preservation; and

(c) The state and any municipality, county, city and county, special district, or other political subdivision of the state that holds an easement.

(5) The certification program shall contain a provision allowing for the expedited or automatic certification of an entity that is currently accredited by national land conservation organizations that are broadly accepted by the conservation industry.

(6) The commission shall meet at least quarterly and make recommendations to the division regarding the certification program. The division is authorized to determine whether an applicant for certification possesses the necessary qualifications for certification required by the rules adopted by the division. If the division determines that an applicant does not possess the applicable qualifications for certification or that the applicant has violated any provision of this article 15, the rules promulgated by the division, or any division order, the division may deny the applicant a certification or deny the renewal of a certification, and, in such instance, the division shall provide the applicant with a statement in writing setting forth the basis of the division's determination. The applicant may request a hearing on the determination as provided in section 24-4-104 (9). The division shall notify successful applicants in writing. An applicant that is not certified may reapply for certification in accordance with procedures established by the division.

(7) The division shall promulgate rules to effectuate the duties of the commission pursuant to article 4 of title 24. The rules shall specifically address the following:

(a) Allowing for the expedited or automatic certification of an entity that is currently accredited by national land conservation organizations that are broadly accepted by the conservation industry; and

(b) A streamlined and lower-cost process for conservation easement holders that do not intend to accept new donations of conservation easements for which tax credits would be claimed that focuses on the holder's stewardship capabilities.

(8) A conservation easement tax credit certificate application may be submitted pursuant to section 12-15-106 only if the entity has been certified in accordance with this section at the time the donation of the easement is made. The division shall make information available to the public concerning the date that it commences accepting applications for entities that hold conservation easements and the requirements of this subsection (8).

(9) The division shall maintain and update an online list, accessible to the public, of the organizations that have applied for certification and whether each has been certified, rejected for certification, or had its certification revoked or suspended in accordance with this section.

(10) The division may investigate the activities of any entity that is required to be certified pursuant to this section and to impose discipline for noncompliance, including the suspension or revocation of a certification or the imposition of fines. The division may promulgate rules in accordance with article 4 of title 24 for the certification program and discipline authorized by this section.

(11) The division may subpoena persons and documents, which subpoenas may be enforced by a court of competent jurisdiction if not obeyed, for purposes of conducting investigations pursuant to subsection (10) of this section.

(12) Nothing in this section:

(a) Affects any tax credit that was claimed pursuant to section 39-22-522 before certification was required by this section; or

(b) Requires the certification of an entity that holds a conservation easement for which a tax credit is not claimed pursuant to section 39-22-522.

(13) Repealed.

Source: L. 2019: Entire title R&RE with relocations, (HB 19-1172), ch. 136, p. 719, � 1, effective October 1; (7) and (13) amended, (HB 19-1264), ch. 420, p. 3682, � 14, effective October 1. L. 2024: (13) repealed, (SB 24-126), ch. 211, p. 1290, � 3, effective August 7.

Editor's note: (1) This section is similar to former � 12-61-1104 as it existed prior to 2019.

Cross references: For the legislative declaration in SB 24-126, see section 1 of chapter 211, Session Laws of Colorado 2024.