Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. R12-0510.01 Jason Gelender x4330 SCR12-003 SENATE SPONSORSHIP Lundberg, Lambert, Neville HOUSE SPONSORSHIP (None), Senate Committees House Committees State, Veterans & Military Affairs SENATE CONCURRENT RESOLUTION 12-003 Submitting to the registered electors of the state of Colorado an amendment to the Colorado constitution concerning the temporary distribution to the state education fund of state lottery net proceeds that would otherwise be distributed to the great outdoors Colorado trust fund. Resolution Summary (Note: This summary applies to this resolution as introduced and does not reflect any amendments that may be subsequently adopted. If this resolution passes third reading in the house of introduction, a resolution summary that applies to the reengrossed version of this resolution will be available at http://www.leg.state.co.us/billsummaries.) From January 1, 2013, through December 31, 2017, the resolution requires the state lottery net proceeds that would otherwise be distributed to the great outdoors Colorado trust fund under existing law to instead be distributed to the state education fund. Be It Resolved by the Senate of the Sixty-eighth General Assembly of the State of Colorado, the House of Representatives concurring herein: SECTION 1. At the next election at which such question may be submitted, there shall be submitted to the registered electors of the state of Colorado, for their approval or rejection, the following amendment to the constitution of the state of Colorado, to wit: In the constitution of the state of Colorado, section 3 of article XXVII, amend (1) (b) as follows: Section 3. Moneys allocated to Trust Fund. (1) Beginning with the proceeds from the fourth quarter of the State's Fiscal Year 1992-1993, all proceeds from all programs, including Lotto and every other state-supervised lottery game operated under the authority of Article XVIII, Section 2 of the Colorado Constitution, whether by the Colorado Lottery Commission or otherwise (such programs defined hereafter in this Article as "Lottery Programs"), net of prizes and expenses of the state lottery division and after a sufficient amount of money has been reserved, as of the end of any fiscal quarter, to ensure the operation of the lottery for the ensuing fiscal quarter (such netted proceeds defined hereafter in this Article as "Net Proceeds") are set aside, allocated, allotted, and continuously appropriated as follows, and the Treasurer shall distribute such proceeds no less frequently than quarterly, as follows: (b) For each quarter including and after the first quarter of the State's Fiscal Year 1998-1999: (I) Forty percent to the Conservation Trust Fund for distribution to municipalities and counties and other eligible entities for parks, recreation and open space purposes; (II) Ten percent to the Division of Parks and Outdoor Recreation for the acquisition, development and improvement of new and existing state parks, recreation areas and recreational trails; and (III) Except as otherwise provided in subparagraph (IV) of this paragraph (b), all remaining Net Proceeds in trust to the Board of the Trust Fund, provided, however, that in any state fiscal year in which the portion of the Net Proceeds which would otherwise be given in trust to the State Board of the Trust Fund exceeds the amount of $35 million, to be adjusted each year for changes from the 1992 Consumer Price Index-Denver, the Net Proceeds in excess of such amount or adjusted amount shall be allocated to the General Fund of the State of Colorado; and (IV) From January 1, 2013, through December 31, 2017, only, the moneys that would otherwise be distributed to the Trust Fund pursuant to subparagraph (III) of this paragraph (b) shall instead be credited to the state education fund created in section 17 (4) (a) of article IX of this constitution. In the constitution of the state of Colorado, section 17 of article IX, amend (4) (a) as follows: Section 17. Education - Funding. (4) State Education Fund Created. (a) There is hereby created in the department of the treasury the state education fund. Beginning on the effective date of this measure, all state revenues collected from a tax of one third of one percent on federal taxable income, as modified by law, of every individual, estate, trust and corporation, as defined in law, shall be deposited in the state education fund. In addition, from January 1, 2013, through December 31, 2017, a portion of state lottery net proceeds shall be deposited in the state education fund as required by section 3 (1) (b) (IV) of article XXVII of this constitution. Revenues generated from a tax of one third of one percent on federal taxable income, as modified by law, of every individual, estate, trust and corporation, as defined in law, shall not be subject to the limitation on fiscal year spending set forth in article X, section 20 of the Colorado constitution. All interest earned on monies in the state education fund shall be deposited in the state education fund and shall be used before any principal is depleted. Monies remaining in the state education fund at the end of any fiscal year shall remain in the fund and not revert to the general fund. SECTION 2. Each elector voting at said election and desirous of voting for or against said amendment shall cast a vote as provided by law either "Yes" or "No" on the proposition: "Shall there be an amendment to the Colorado constitution concerning the temporary distribution to the state education fund of state lottery net proceeds that would otherwise be distributed to the great outdoors Colorado trust fund?" SECTION 3. The votes cast for the adoption or rejection of said amendment shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress, and if a majority of the electors voting on the question shall have voted "Yes", the said amendment shall become a part of the state constitution.