First Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 05-0254.01 Jason Gelender HOUSE BILL 05-1005 HOUSE SPONSORSHIP Lundberg, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning the creation of a revenue shortfall relief fund, and, in connection therewith, requiring the general assembly to annually appropriate general fund moneys to the revenue shortfall relief fund unless total state general fund appropriations fall below a specified level and authorizing transfers from the revenue shortfall relief fund to the general fund if total state general fund appropriations fall below that level. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Creates a revenue shortfall relief fund, and requires interest and income earned on the deposit and investment of moneys in the fund to be credited to and remain in the fund. For fiscal years commencing on or after July 1, 2006, requires the general assembly to appropriate from the general fund to the revenue shortfall relief fund a specified amount of the maximum state general fund appropriations growth permitted by existing law for the fiscal year unless insufficient general fund revenues cause total state general fund appropriations for the fiscal year to be less, by a specified amount, than the maximum amount permitted under existing law. Authorizes the general assembly, by an affirmative vote of 2/3 of the members of each house, to authorize the transfer of moneys from the revenue shortfall relief fund to the general fund in fiscal years in which insufficient general fund revenues cause total state general fund appropriations for the fiscal year to be less, by a specified amount, than the maximum amount permitted under existing law to the extent necessary to enable the general assembly to increase total state general fund appropriations up to the specified amount. Prohibits moneys transferred from the revenue shortfall relief fund to the general fund from being used to supplant general fund moneys transferred during the same fiscal year from the general fund to the capital construction fund or any other fund for the purpose of funding new capital construction projects or accelerating the completion of capital construction projects started in a prior fiscal year. Defines terms. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 1 of article 75 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 24-75-112. Revenue shortfall relief fund - creation - appropriations to fund - transfers from fund - definitions. (1) As used in this section: (a) "Limit" means the maximum total state general fund appropriations permitted for a fiscal year as calculated pursuant to section 24-75-201.1 (1) (a). (b) "Maximum annual state general fund appropriations growth", with respect to any fiscal year, means the difference between the limit for the fiscal year and the total state general fund appropriations for the prior fiscal year. (2) The revenue shortfall relief fund is hereby created in the state treasury. Interest and income earned on the deposit and investment of moneys in the fund shall be credited to the fund and shall not revert to the general fund or any other fund at the end of any fiscal year. (3) Except as otherwise provided in subsection (4) of this section, for any fiscal year that commences on or after July 1, 2006, the general assembly shall appropriate from the general fund to the revenue shortfall relief fund an amount equal to one-twelfth of maximum annual state general fund appropriations growth for the fiscal year. (4) For any fiscal year that commences on or after July 1, 2006, if, due to insufficient general fund revenues, the total state general fund appropriations made are less than the total state general fund appropriations that could have been made under the limit, moneys shall be appropriated to or may be transferred from the revenue shortfall relief fund as follows: (a) If total state general fund appropriations for the fiscal year equal or exceed the sum of total state general fund appropriations for the prior fiscal year and eleven-twelfths of the maximum annual state general fund appropriations growth, but are less than the sum of total state general fund appropriations for the prior fiscal year and the maximum annual state general fund appropriations growth, all appropriations in excess of the sum of total state general funds appropriations for the prior fiscal year and eleven-twelfths of maximum annual state general fund appropriations growth shall be made to the revenue shortfall relief fund. (b) If total state general fund appropriations for the fiscal year are less than the sum of total state general fund appropriations for the prior fiscal year and eleven-twelfths of maximum annual state general fund appropriations growth, the general assembly, by an affirmative vote of two-thirds of the members of each house, may authorize the transfer of moneys from the revenue shortfall relief fund to the general fund to the extent necessary to enable the general assembly to increase total state general fund appropriations up to the sum of total state general fund appropriations for the prior fiscal year and eleven-twelfths of maximum annual state general fund appropriations growth. (5) Moneys transferred from the revenue shortfall relief fund to the general fund pursuant to paragraph (b) of subsection (4) of this section shall not be used to supplant general fund moneys transferred during the same fiscal year from the general fund to the capital construction fund or any other fund for the purpose of funding new capital construction projects or accelerating the completion of capital construction projects started in a prior fiscal year. SECTION 2. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution (August 10, 2005, if adjournment sine die is on May 11, 2005); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.