HOUSE 3rd Reading Unamended April 24, 2012 HOUSE Amended 2nd Reading April 23, 2012Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 12-0528.01 Ed DeCecco x4216 HOUSE BILL 12-1075 HOUSE SPONSORSHIP Beezley and DelGrosso, SENATE SPONSORSHIP Brophy, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning a limit on total state general fund appropriations. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Currently, the maximum allowable amount of total state general fund appropriations for a given fiscal year is equal to 5% of Colorado personal income. Beginning with the 2012-13 state fiscal year, the bill establishes a new limit for total state general fund appropriations that is equal to 6% over the total general fund appropriations for the previous fiscal year. The end-year surplus in the general fund, which is moneys above the new appropriation limit, is transferred as follows: 50% to the newly created state reserve fund; 25% to the highway users tax fund; and 25% to the capital construction fund. During economic downturns, the general assembly may appropriate or transfer moneys from the state reserve fund for any purpose by the enactment of a bill approved by a 2/3 majority vote of all of the members elected to each house. The moneys transferred to the highway users tax fund are allocated as follows: 60% to the state highway fund; 22% to counties; and 18% to municipalities. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-75-201.1, amend (1) (a) (II.5), (1) (a) (III) introductory portion, (1) (a) (IV), and (1) (a) (V) introductory portion; and add (1) (a) (II.7) as follows: 24-75-201.1. Restriction on state appropriations - legislative declaration - definitions. (1) (a) (II.5) Except as otherwise provided in subparagraphs (III) and (IV) of this paragraph (a), for the fiscal year 2009-10 and each fiscal year thereafter years 2009-10, 2010-11, and 2011-12, the total state general fund appropriations shall be limited to such moneys as are necessary for reappraisals of any class or classes of taxable property for property tax purposes as required by section 39-1-105.5, C.R.S., plus an amount equal to five percent of Colorado personal income. (II.7) Except as otherwise provided in subparagraphs (III) and (IV) of this paragraph (a), for the fiscal year 2012-13 and each fiscal year thereafter, the total state general fund appropriations shall be limited to such moneys as are necessary for reappraisals of any class or classes of taxable property for property tax purposes as required by section 39-1-105.5, C.R.S., plus six percent over the total state general fund appropriations for the previous fiscal year. (III) The limitation on the level of state general fund appropriations set forth in subparagraphs (II), and (II.5), and (II.7) of this paragraph (a) shall not apply to: (IV) (A) The limitation on the level of state general fund appropriations as set forth in subparagraphs (II), and (II.5), and (II.7) of this paragraph (a) may be exceeded for a given fiscal year upon the declaration of a state fiscal emergency by the general assembly. A state fiscal emergency may be declared by the passage of a joint resolution which is approved by a two-thirds majority vote of the members of both houses of the general assembly and which is approved by the governor in accordance with section 39 of article V of the state constitution. (B) Any funds appropriated in a given fiscal year which exceed the limitation on state general fund appropriations established by subparagraphs (II), and (II.5), and (II.7) of this paragraph (a) because of the declaration of a state fiscal emergency by the general assembly pursuant to sub-subparagraph (A) of this subparagraph (IV) shall not be included in the calculation of the maximum level of state general fund appropriations pursuant to sub-subparagraph (B) of subparagraph (II) of this paragraph (a) for subsequent fiscal years. (V) No state cash fund appropriation which either supplants any state general fund appropriation or, if not made, would necessitate a state general fund appropriation shall be made in order to circumvent the limitation on the level of state general fund appropriations set forth in subparagraphs (II), and (II.5), and (II.7) of this paragraph (a). The provisions of this subparagraph (V) shall not apply to any state cash fund appropriation: SECTION 2. In Colorado Revised Statutes, recreate and reenact, with amendments, 24-75-218 as follows: 24-75-218. Transfers of general fund surplus - definitions. (1) As used in this section, unless the context otherwise requires: (a) "Capital construction fund" means the capital construction fund created in section 24-75-302. (b) "Designated funds" means the capital construction fund, highway users tax fund, and the state reserve fund. (c) "Highway users tax fund" means the highway users tax fund created in section 43-4-201, C.R.S. (d) "State reserve fund" means the state reserve fund created in section 24-75-1401. (2) The state treasurer shall deduct the general fund surplus designated in accordance with section 24-75-201 (1) from the general fund and transfer such sum as follows: (a) Fifty percent of the surplus to the state reserve fund; (b) Twenty-five percent of the surplus to the highway users tax fund; and (c) Twenty-five percent of the surplus to the capital construction fund. (3) The state treasurer shall deduct the general fund surplus and transfer the amounts required pursuant to subsection (2) of this section in accordance with the following schedule: (a) On September 20, 2013, and each September 20 thereafter, the state treasurer shall deduct from the general fund and transfer to the designated funds amounts estimated by the treasurer to equal ninety percent of the amounts required to be deducted and transferred. (b) On the date during the state fiscal year on which the state controller distributes the comprehensive annual financial report of the state, the state treasurer shall deduct from the general fund and transfer to the designated funds amounts equal to the differences between the actual amounts required to be transferred and the estimated amounts previously transferred pursuant to paragraph (a) of this subsection (3). SECTION 3. In Colorado Revised Statutes, 24-75-302, amend (1) (a) as follows: 24-75-302. Capital construction fund - capital assessment fees - calculation. (1) (a) There is hereby created the capital construction fund to which shall be allocated moneys pursuant to section 24-75-218 and such other revenues as the general assembly may from time to time determine. Moneys in the capital construction fund may be appropriated for capital construction, as defined in section 24-75-301 (1), including the remodeling or renovation of existing buildings or other physical facilities designated as controlled maintenance projects in the general appropriation act; except that any moneys transferred to the capital construction fund for state highway reconstruction, repair, and maintenance projects may only be appropriated for such projects. The appropriation for such projects shall be set forth in a single line item as a total sum. All unappropriated balances in said fund at the close of any fiscal year shall remain therein and not revert to the general fund. All moneys unexpended or not encumbered from the capital construction fund appropriation to each department for any fiscal year shall revert to the capital construction fund at the end of the period for which such moneys are appropriated. Except as provided in sections 2-3-1304 (1) (a.5) and 24-30-1303.7 (1), C.R.S., no portion of the unexpended balance of a department's capital construction fund appropriation may be used by such department for any additional projects which are beyond the scope or design of the original project without further approval by the general assembly of such additional project. Anticipation warrants may be issued against the revenues of the fund as provided by law. Except as provided in subsection (7) of this section, all interest earned from the investment of moneys in said fund shall remain in said fund and become a part thereof. SECTION 4. In Colorado Revised Statutes, add part 14 to article 75 of title 24 as follows: PART 14 STATE RESERVE FUND 24-75-1401. State reserve fund - use. (1) The state reserve fund is hereby created in the state treasury. The fund consists of moneys transferred thereto pursuant to section 24-75-218 (2) and any other moneys required by law to be credited thereto. Interest and income earned on the deposit and investment of moneys in the fund must be credited to the fund. All moneys, including any interest and income, must remain in the fund unless appropriated or transferred from the fund pursuant to subsection (2) of this section. (2) During economic downturns, the general assembly may appropriate or transfer moneys from the state reserve fund for any purpose by the enactment of a bill approved by a two-thirds majority vote of all of the members elected to each house of the general assembly. SECTION 5. In Colorado Revised Statutes, 43-4-205, amend (6) (b) introductory portion as follows: 43-4-205. Allocation of fund. (6) Revenues raised by the excise tax imposed on gasoline and special fuel pursuant to sections 39-27-102 and 39-27-102.5, C.R.S., in excess of seven cents per gallon of tax, shall be placed in the highway users tax fund to be allocated as follows; except that revenues raised by the excise tax imposed on gasoline in excess of eighteen cents per gallon of tax shall be allocated according to the provisions of paragraph (b) of this subsection (6): (b) The remaining balance of such revenue from the excise tax imposed on gasoline and special fuel and revenues that are transferred to the fund pursuant to section 24-75-218, C.R.S., shall be expended only for improvements to highways within the state, including new construction, safety improvements, maintenance, and capacity improvements. No moneys shall be expended for administrative purposes. Such revenue shall be allocated as follows: SECTION 6. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.