Concerning the allocation of retail delivery fee revenue credited to the multimodal transportation and mitigation options fund.
Summary
HB26-1398 changes how Colorado distributes revenue from the retail delivery fee that is credited to the Multimodal Transportation and Mitigation Options Fund. Under current law, 85% of the fund’s retail delivery fee revenue is directed to local multimodal projects and 15% to state multimodal projects. Beginning July 1, 2026, the bill shifts that split to 70% for local multimodal projects and 30% for state multimodal projects.
The bill also updates the statutory language governing the local-project distribution formula. The Colorado commission must continue to allocate local funds using a formula based on population, transit ridership, and other criteria developed with input from transportation and advocacy stakeholders. Recipients generally must provide a matching amount equal to the award, although the commission may reduce or waive the match for smaller governments, agencies, or special circumstances, and may also exempt an individual recipient for a specific project when recommended by department staff.
Impact
The bill amends Colorado Revised Statutes section 43-4-1103, which governs the Multimodal Transportation and Mitigation Options Fund, by changing the required expenditure allocation for retail delivery fee revenue credited to the fund. It increases the share available for state multimodal projects and reduces the share for local multimodal projects, affecting how transportation-related fee revenue is distributed by the commission after July 1, 2026. The bill does not create a new fee or fund, but it materially changes the funding balance between local and state transportation priorities and preserves the existing matching and formula-based distribution framework for local awards.
Sentiment
The available record suggests the bill moved forward without recorded floor debate or committee transcript controversy, and it ultimately passed and was signed by the governor. Its placement in Appropriations and the absence of recorded votes or opposition in the provided materials indicate a generally procedural, budget-oriented reception rather than a highly contentious one. The bill’s purpose appears to have been framed as an adjustment to transportation funding allocation rather than a broader policy overhaul.
Contention
The main policy tension in the bill is the reallocation of retail delivery fee revenue away from local multimodal projects and toward state multimodal projects. Supporters likely favor the increased state share to address statewide transportation needs, while potential critics may prefer preserving the larger local allocation for city, county, transit, bicycle, and pedestrian projects. Another possible point of concern is the continued reliance on a matching requirement for local recipients, though the bill retains the commission’s discretion to reduce or waive that match in certain cases.