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First Regular Session

Sixty-first General Assembly

LLS NO. 97­0083.01 GWF HOUSE BILL 97­1007

STATE OF COLORADO

BY REPRESENTATIVES Tool, Anderson, Entz, and Lamborn;

also SENATORS J. Johnson and B. Alexander.

ENGROSSED

EDUCATION

A BILL FOR AN ACT

CONCERNING AN ASSISTANCE PROGRAM FOR SCHOOL DISTRICT CAPITAL CONSTRUCTION.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

K­12 Capital Construction Interim Committee. Establishes a school construction and renovation fund to receive lottery moneys allocated to it by the state constitution. Provides that moneys in the fund are to be used to make matching grants to school districts for capital construction projects. Declares the policy of the general assembly not to provide matching grants for any projects that have not been evaluated and included on the prioritized list prepared by the state board of education. Provides that expenditures of moneys from the fund are not part of state or school district fiscal year spending.

Permits use of moneys in the school construction and renovation fund for capital construction projects involving instructional facilities, including classrooms, libraries, physical plants, and administrative areas; however, does not permit use of moneys in the fund for athletic, recreational, or other noninstructional facilities.

Requires grant applications to be submitted by school districts to the state board of education no later than July 1 of each year. Declares the intent of the general assembly that, in applying for grants, school districts give consideration to the needs of both traditional public schools and charter schools. Directs the state board or its designees to review the applications and to prioritize them based on the relationship of the project to safety concerns, the relative wealth of the school district, the enrollment growth within the district, and whether the project will assist in incorporating technology into the educational environment. Authorizes the state board to prescribe the form of the applications, to request additional information, and to promulgate rules for the implementation of the program. Directs the state board to transmit its prioritized list of eligible projects to the joint budget committee and the education committees of the house and senate no later than December 1 of each year. Provides that the joint budget committee shall determine how many of the eligible projects can receive grants of moneys from the fund, that only projects on the prioritized list may receive grants of moneys from the fund, and that the projects shall be funded in the priority determined by the state board.

Provides that the amount of a grant shall be no more than the difference between the school district assessed valuation per pupil and the statewide average assessed valuation per pupil, expressed as a percentage, multiplied by the cost of the capital construction project.

Makes conforming amendments. Provides that this act shall not take effect unless the constitutional amendment providing for the use of lottery revenues for these purposes is adopted by the electorate.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Title 22, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 43.7

School District Capital Construction

Assistance Program

22­43.7­101.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)   SECTION 2 OF ARTICLE IX OF THE STATE CONSTITUTION REQUIRES THE GENERAL ASSEMBLY TO PROVIDE FOR THE ESTABLISHMENT AND MAINTENANCE OF A THOROUGH AND UNIFORM SYSTEM OF FREE PUBLIC SCHOOLS THROUGHOUT THE STATE;

(b)  THE GENERAL ASSEMBLY DESIRES TO ASSIST SCHOOL DISTRICTS IN ENSURING THAT PUBLIC SCHOOLS IN COLORADO ARE SUFFICIENT TO MEET STUDENTS' FUNDAMENTAL EDUCATIONAL NEEDS; AND

(c)  COLORADO SCHOOL DISTRICTS HAVE DIFFERING FINANCIAL ABILITIES TO MEET THESE FACILITIES NEEDS, INCLUDING BOTH THE NEED FOR NEW PUBLIC SCHOOLS AND THE NEED FOR RENOVATIONS OF AND CONTROLLED MAINTENANCE AT PUBLIC SCHOOLS.

(2)  THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT THE ESTABLISHMENT OF A PROGRAM TO PROVIDE MATCHING GRANTS TO SCHOOL DISTRICTS FOR CAPITAL CONSTRUCTION PROJECTS WOULD ASSIST THE DISTRICTS IN MEETING THEIR FACILITIES NEEDS.

(3)  IT IS THE INTENT OF THE GENERAL ASSEMBLY IN ENACTING THIS ARTICLE TO ESTABLISH A PROGRAM THAT WILL PROVIDE MATCHING FUNDS TO SCHOOL DISTRICTS THAT DESIRE TO UNDERTAKE CAPITAL CONSTRUCTION PROJECTS AND THAT HAVE A NEED FOR FINANCIAL ASSISTANCE IN ORDER TO UNDERTAKE THESE PROJECTS ADEQUATELY.

22­43.7­102.  Definitions. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "CAPITAL CONSTRUCTION" SHALL HAVE THE MEANING SET FORTH IN SECTION 24­75­301 (1), C.R.S.

(2)  "FUND" MEANS THE SCHOOL CONSTRUCTION AND RENOVATION FUND CREATED PURSUANT TO THIS ARTICLE.

(3)  "STATE AID" MEANS THAT PORTION OF A SCHOOL DISTRICT'S FINANCIAL BASE OF SUPPORT FOR PUBLIC EDUCATION THAT IS PROVIDED BY THE STATE PURSUANT TO ARTICLE 54 OF THIS TITLE.

(4)  "STATE BOARD" MEANS THE STATE BOARD OF EDUCATION CREATED PURSUANT TO SECTION 1 OF ARTICLE IX OF THE STATE CONSTITUTION.

22­43.7­103.  School construction and renovation fund ­ created ­ purpose ­ exemption from fiscal year spending ­ legislative declaration. (1)  THERE IS HEREBY ESTABLISHED IN THE STATE TREASURY THE SCHOOL CONSTRUCTION AND RENOVATION FUND. THE FUND SHALL CONSIST OF THE MONEYS AS MAY BE MADE AVAILABLE BY THE GENERAL ASSEMBLY.

(2)   SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY, MONEYS IN THE FUND SHALL BE USED TO PROVIDE MATCHING GRANTS TO SCHOOL DISTRICTS THAT ARE UNDERTAKING QUALIFIED CAPITAL CONSTRUCTION PROJECTS AND FOR THE EXPENSES INCURRED BY THE STATE BOARD IN ADMINISTERING THIS ARTICLE.

(3)  IT IS DECLARED TO BE THE POLICY OF THE GENERAL ASSEMBLY THAT MATCHING GRANTS FROM THE FUND SHALL NOT BE AUTHORIZED FOR ANY SCHOOL DISTRICT CAPITAL CONSTRUCTION PROJECT THAT HAS NOT BEEN EVALUATED BY THE STATE BOARD AND INCLUDED ON THE PRIORITIZED LIST PREPARED BY THE STATE BOARD PURSUANT TO THIS ARTICLE.

(4)  ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. ANY MONEYS NOT APPROPRIATED SHALL REMAIN IN THE FUND AND SHALL NOT BE TRANSFERRED OR REVERT TO THE GENERAL FUND OF THE STATE AT THE END OF ANY FISCAL YEAR.

22­43.7­104.  Eligible projects ­ criteria. (1)  MATCHING GRANTS MAY BE PROVIDED FROM THE FUND PURSUANT TO THIS ARTICLE ONLY FOR SCHOOL DISTRICT CAPITAL CONSTRUCTION PROJECTS INVOLVING INSTRUCTIONAL FACILITIES, INCLUDING CLASSROOMS, LIBRARIES, PHYSICAL PLANTS, AND ASSOCIATED ADMINISTRATIVE AREAS.

(2)  MATCHING GRANTS SHALL NOT BE PROVIDED PURSUANT TO THIS ARTICLE FOR ANY PORTION OF A SCHOOL DISTRICT CAPITAL CONSTRUCTION PROJECT INVOLVING ATHLETIC, RECREATIONAL, OR OTHER NONINSTRUCTIONAL FACILITIES WITHIN THE DISTRICT, EVEN IF SUCH FACILITIES ARE LOCATED ON A SCHOOL SITE.

22­43.7­105.  Grant application requirements ­ evaluation criteria ­ state board ­ duties. (1)  APPLICATIONS FOR MATCHING GRANTS FROM THE FUND SHALL BE SUBMITTED TO THE STATE BOARD NO LATER THAN JULY 1 OF EACH YEAR FOR THE FOLLOWING FISCAL YEAR.

(2)  THE MEMBERS OF THE STATE BOARD OR ITS DESIGNEES SHALL EVALUATE SUCH APPLICATIONS BASED ON THE FACTORS SET FORTH IN THIS SECTION AND SUCH OTHER FACTORS AS THE STATE BOARD MAY ESTABLISH BY RULE. SUCH RULES SHALL BE PROMULGATED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S.

(3)  IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT, IN SUBMITTING APPLICATIONS FOR MATCHING GRANTS PURSUANT TO THIS SECTION, SCHOOL DISTRICTS GIVE CONSIDERATION TO THE NEEDS OF ALL PUBLIC SCHOOLS LOCATED WITHIN THE DISTRICT, INCLUDING BOTH TRADITIONAL PUBLIC SCHOOLS AND CHARTER SCHOOLS ESTABLISHED PURSUANT TO ARTICLE 30.5 OF THIS TITLE.

(4)  ALL APPLICATIONS SUBMITTED TO THE STATE BOARD SHALL BE IN A FORM PRESCRIBED BY THE STATE BOARD AND SHALL INCLUDE:

(a)  A DESCRIPTION OF THE SCOPE AND NATURE OF THE CAPITAL CONSTRUCTION PROJECT;

(b)  A DESCRIPTION OF THE ARCHITECTURAL, FUNCTIONAL, AND CONSTRUCTION STANDARDS THAT ARE TO BE APPLIED TO THE FACILITY THAT IS THE SUBJECT OF THE CAPITAL CONSTRUCTION PROJECT;

(c)  THE FORM AND AMOUNT OF FINANCIAL EFFORT THAT WILL BE PROVIDED BY THE SCHOOL DISTRICT FOR THE CAPITAL CONSTRUCTION PROJECT;

(d)  WHETHER AN ELECTION IS REQUIRED BEFORE THE DISTRICT CAN PROCEED WITH THE CAPITAL CONSTRUCTION PROJECT AND, IF SO, THE ANTICIPATED DATE OF THE ELECTION; AND

(e)  SUCH OTHER INFORMATION THE STATE BOARD MAY REQUIRE FOR THE EVALUATION OF THE CAPITAL CONSTRUCTION PROJECT.

(5)  APPLICATIONS THAT DESCRIBE CAPITAL CONSTRUCTION PROJECTS DEEMED ELIGIBLE BY THE STATE BOARD FOR MATCHING GRANTS SHALL BE PRIORITIZED BASED ON THE FOLLOWING CRITERIA, IN DESCENDING ORDER OF IMPORTANCE:

(a)  CAPITAL CONSTRUCTION PROJECTS THAT WILL ADDRESS IMMEDIATE SAFETY HAZARDS OR HEALTH CONCERNS AT EXISTING SCHOOL FACILITIES, CONSIDERING THE AGE OF THE FACILITIES AND ANY PREVIOUS RENOVATION WORK OR CONTROLLED MAINTENANCE THAT HAS BEEN PERFORMED AT THE FACILITIES;

(b)  CAPITAL CONSTRUCTION PROJECTS IN A SCHOOL DISTRICT THAT HAS A LOWER RELATIVE WEALTH COMPARED TO OTHER SCHOOL DISTRICTS IN THE STATE BASED ON THE PER PUPIL ASSESSED VALUATION WITHIN THE DISTRICT AND THE AMOUNT OF STATE AID TO WHICH THE SCHOOL DISTRICT IS ENTITLED RELATIVE TO THE DISTRICT'S TOTAL PROGRAM, AS DEFINED IN SECTION 22­54­103 (6);

(c)  CAPITAL CONSTRUCTION PROJECTS THAT WILL ADDRESS ENROLLMENT GROWTH ISSUES WITHIN A SCHOOL DISTRICT, CONSIDERING THE AMOUNT OF ENROLLMENT GROWTH IN THE SCHOOL DISTRICT AND OTHER STEPS TAKEN BY THE SCHOOL DISTRICT TO ADDRESS ENROLLMENT GROWTH CONCERNS;

(d)  CAPITAL CONSTRUCTION PROJECTS THAT ARE DESIGNED TO INCORPORATE TECHNOLOGY INTO THE EDUCATIONAL ENVIRONMENT;

(e)  ALL OTHER CAPITAL CONSTRUCTION PROJECTS.

(6)  FROM THE APPLICATIONS SUBMITTED FOR THE NEXT FISCAL YEAR, THE STATE BOARD SHALL PREPARE A PRIORITIZED LIST OF ELIGIBLE CAPITAL CONSTRUCTION PROJECTS AND SHALL SUBMIT SUCH LIST TO THE JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY NO LATER THAN DECEMBER 1 OF EACH YEAR FOR CONSIDERATION FOR INCLUSION IN THE GENERAL APPROPRIATIONS BILL. SAID LIST SHALL ALSO BE SUBMITTED TO THE EDUCATION COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES NO LATER THAN DECEMBER 1. THE JOINT BUDGET COMMITTEE SHALL DETERMINE THE NUMBER OF CAPITAL CONSTRUCTION PROJECTS ON THE LIST THAT MAY RECEIVE MATCHING GRANTS FROM MONEYS AVAILABLE IN THE FUND. ONLY CAPITAL CONSTRUCTION PROJECTS ON THE PRIORITIZED LIST MAY RECEIVE MATCHING GRANTS FROM THE FUND, AND THE CAPITAL CONSTRUCTION PROJECTS SHALL BE FUNDED IN THE PRIORITY DETERMINED BY THE STATE BOARD.

(7)  THE STATE BOARD IS AUTHORIZED TO PROMULGATE RULES FOR THE ADMINISTRATION OF THIS ARTICLE. SUCH RULES SHALL BE PROMULGATED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S.

22­43.7­106. Amount of grants. IN DETERMINING THE AMOUNT OF A MATCHING GRANT MADE PURSUANT TO THIS ARTICLE, IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE AMOUNT OF A GRANT SHALL BE NO MORE THAN THE DIFFERENCE BETWEEN THE VALUATION FOR ASSESSMENT PER PUPIL WITHIN THE DISTRICT PROPOSING THE CAPITAL CONSTRUCTION PROJECT AND THE AVERAGE VALUATION FOR ASSESSMENT PER PUPIL STATEWIDE, EXPRESSED AS A PERCENTAGE OF THE STATEWIDE AVERAGE, MULTIPLIED BY THE COST OF THE CAPITAL CONSTRUCTION PROJECT.

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.