A bill that would create a mechanism for local governments in Colorado to form “job creation districts” is pending in the state legislature. House Bill 13-1212, to be known as the “Job Creation District Act of 2013,” provides for an economic development tool that would be available to local governments to financially participate in and support an eligible project that generates jobs within an approved area of the jurisdictional boundaries of a local government. The bill authorizes the governing body of a local government to create a local job creation authority, which authority would have the power to, among other matters, approve one or more job creation districts within the jurisdictional boundaries of the local government, receive and use certain sales, use, lodging and real and personal property taxes collected within the applicable district to finance improvements within such district area (tax increment financing) and issue bonds to finance those improvements. The sales, use, lodging and real and personal property taxes available for use by an authority includes 90% of those tax revenues which exceed the amount of tax revenues generated within the district by all taxing authorities (excluding the state) for the 12-month period immediately preceding the creation of the district. The bill provides that bonds issued by an authority and any interest thereon are “exempt from all taxes.” The authority may receive and use such tax revenues for a maximum of 15 years after the creation of the district. The bill sets forth the criteria for approval of an eligible project within a local job creation district, which generally includes creating a minimum number of new jobs paying a prescribed minimum salary, making a minimum capital investment within the district, evidencing a positive net fiscal impact to the state general fund and providing for sufficient increased tax revenues to fund the public improvements necessary to support the project. While the legislation tracks Colorado Urban Renewal Law (Sections 31-25-101, et seq., C.R.S.) in certain respects, the approval criteria does not relate to any finding of a “blight area” or “slum area” with respect to the applicable district area as is required under Urban Renewal Law. This bill provides for tax incentives only to the extent the boundaries of the local job creation district do not overlap any boundaries of an “enterprise zone” established pursuant to Section 39-30-103, C.R.S., an “urban renewal area” as defined in Section 31-25-103(8) C.R.S., or a “tourism or entertainment facility” as defined in Section 24-46-303, C.R.S. Amendments to this bill have been proposed by the House Local Government Committee and referred to the House Finance Committee; however, the bill (including the proposed amendments) has not yet passed second reading in the House.