DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
CONSERVATION EASEMENTS 
4CCR 725-4

NOTICE OF PROPOSED PERMANENT RULEMAKING HEARING
November 3, 2014

A-6	 CONDITIONAL CERTIFICATION
	Pursuant to and in compliance with Title 12, Article 61 and Title 24, Article 4, C.R.S. as amended, notice of proposed rulemaking is hereby given, including notice to the Attorney General of the State of Colorado and to all persons who have requested to be advised of the intention of the Colorado Department of Regulatory Agencies and the Division of Real Estate (the “Division”) to promulgate rules, or to amend, repeal or repeal and re-enact the present rules related to conservation easements.
	Section 1. Authority
		The statutory basis for the adoption of these rules regarding conservation easement holders is in Part 11 of Title 12, Article 61, C.R.S. The specific rulemaking provisions contained therein are section 12-61-720(11), C.R.S.
	Section 2. Scope and Purpose
	The purpose of this rule is to formally establish a conditional certification for conservation easement holders.
	Section 3. Applicability
	The provisions of this section shall be applicable to qualified organizations that meet the requirements of section 170(h) of the federal “Internal Revenue Code of 1986”, as amended, and section 38-30.5-104(2), C.R.S.to hold conservation easements for which a tax credit is claimed pursuant to section 39-22-522, C.R.S. (“Conservation Easement Holders”).
	Section 4. A-6 Conditional Certification
	The Director of the Division of Real Estate in consultation with the Conservation Easement Oversight Commission may issue conditional certification to any Conservation Easement Holder that does not clearly demonstrate, to the satisfaction of the Director, compliance with rule A-1 Qualifications for Certification to Hold Conservation Easements.
	The terms and length of conditional certification will be determined by the Director and may include but are not limited to:
	1.	A requirement that the conditionally certified Conservation Easement Holder co-hold conservation easements for which a state tax credit is claimed with a fully certified Conservation Easement Holder.
	a.	For the purpose of Rule A-6 “co-hold” shall mean more than one nonprofit entity or government entity is named as a grantee of the conservation easement.
	2.	Submission of all requested project and governance documentation in a manner prescribed by the Director.
	3.	Approval of project documentation by the Director prior to the conservation easement holder accepting a new conservation easement.
	4.	Any other restriction or term deemed necessary by the Director to ensure ongoing compliance with all applicable rules and statutes.
	Conservation Easement Holders granted conditional certification are subject to all fees, statutes and rules promulgated for certified Conservation Easement Holders, including, but not limited to rule A-1 Qualifications for Certification to Hold Conservation Easements, and all other rules regarding expiration and renewal of state certification.  [REPEALED]

A hearing on the above subject matter will be held on Monday, November 3, 2014, at the Colorado Division of Real Estate, 1560 Broadway, Suite 1250-C, Denver, Colorado 80202 beginning at 9:00 a.m. 

Any interested person may participate in the rule making through submission of written data, views and arguments to the Division of Real Estate. Persons are requested to submit data, views and arguments to the Division of Real Estate in writing no less than ten (10) days prior to the hearing date and time set forth above. However, all data, views and arguments submitted prior to or at the rulemaking hearing or prior to the closure of the rulemaking record (if different from the date and time of hearing), shall be considered.

Please be advised that the rule being considered is subject to further changes and modifications after public comment and formal hearing.