C.R.S.
Section 12-15-104
Certification of conservation easement holders
- rules
- definition
- repeal
(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;(c)
An audit of the applicant’s financial records;(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.(c)
and (d)(Deleted by amendment, L. 2019.)(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)
This section is repealed, effective July 1, 2026.
Source:
Section 12-15-104 — Certification of conservation easement holders - rules - definition - repeal, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-12.pdf (accessed Oct. 20, 2023).
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