SENATE Amended 2nd Reading April 12, 2005 HOUSE 3rd Reading Unamended February 1, 2005 HOUSE Amended 2nd Reading January 31, 2005First Regular Session Sixty-fifth General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 05-0666.01 Jason Gelender HOUSE BILL 05-1001 HOUSE SPONSORSHIP Garcia, SENATE SPONSORSHIP Sandoval, House Committees Senate Committees Finance State, Veterans & Military Affairs A BILL FOR AN ACT Concerning charges credited to cash funds for specific purposes, and, in connection therewith, prohibiting the use of such charges for general governmental purposes. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Prohibits moneys derived from a charge imposed by the state that are credited to a cash fund from being transferred to the general fund of the state or appropriated for purposes that are not related to the operation or administration of a specific program, achievement of a specific purpose, or provision of a specific service for which the state imposed the charge or that were not statutorily authorized purposes for which moneys credited to the cash fund could be spent at the time the charge was credited to the cash fund. Specifies that a charge shall not exceed the amount estimated to be necessary to defray the costs of operating or administering the specific program, achieving the specific purpose, or providing the specific service for which the state imposed the charge and to provide for a reasonable reserve as defined by law. Defines a "charge" as a tax, fee, assessment, fine, penalty, or toll that is credited to a cash fund and is imposed by the state to generate revenue to fund one or more specific programs, purposes, or services and not to fund unspecified general governmental purposes. Also defines other terms. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 4 of article 75 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 24-75-403. Cash funds - restriction on use of moneys - definitions. (1) (a) (I) Except as otherwise provided in paragraph (b) of this subsection (1) and notwithstanding any other provision of law, on or after July 1, 2005, moneys derived from a charge: (A) May only be transferred to the general fund of the state for a purpose for which transfers to the general fund were statutorily authorized at the time the charge was credited to the cash fund or for the purpose of defraying the indirect administrative costs associated with a specific program, a specific purpose, or a specific service for which the state imposed the charge; and (B) Shall only be appropriated for purposes that are related to the operation or administration of a specific program, achievement of a specific purpose, or provision of a specific service for which the state imposed the charge or that were statutorily authorized purposes for which moneys credited to the cash fund could be spent at the time the charge was credited to the cash fund. (II) Notwithstanding the provisions of subparagraph (I) of this paragraph (a), the general assembly may transfer moneys from a cash fund to the general fund of the state or appropriate moneys from a cash fund for a purpose not authorized by said subparagraph (I) so long as the general assembly authorizes the transfer or appropriation by enacting a bill that: (A) Is approved by a vote of two-thirds of the members of each house of the general assembly on third reading and final passage; and (B) Authorizes transfers or appropriations from only one cash fund. (b) The general assembly may designate any moneys in a cash fund, including moneys derived from a charge, as all or a portion of the reserve required by section 20 (5) of article X of the state constitution and section 24-77-104 and may expend the moneys designated as authorized by said sections. A cash fund from which moneys designated as all or a portion of the reserve are expended during any state fiscal year shall be fully reimbursed for the expenditures on or before the last day of the next state fiscal year. (c) A charge shall not exceed the amount estimated to be necessary to defray the direct and indirect costs of operating or administering the specific program, achieving the specific purpose, or providing the specific service for which the state imposed the charge and to provide for a reasonable reserve as defined by law. (2) As used in this section: (a) "Cash fund" means any fund, other than the state general fund or any federal fund, established by law or the state constitution to fund one or more specific programs, purposes, or services. (b) "Charge" means a tax , fee, assessment, fine, penalty, or toll that is credited to a cash fund and is imposed by the state to generate revenue to fund one or more specific programs, purposes, or services and not to fund unspecified general governmental purposes. (c) "State" means the state of Colorado and any board, commission, enterprise, authority, department, corporation, instrumentality, or agency thereof. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.