Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0174.01 GWF HOUSE BILL 97­1308

STATE OF COLORADO

BY REPRESENTATIVE Saliman;

also SENATOR Bishop.

EDUCATION

A BILL FOR AN ACT

CONCERNING THE USE OF LOTTERY SPILLOVER REVENUES ALLOCATED TO THE STATE GENERAL FUND PURSUANT TO SECTION 3 (1) (b) (III) OF ARTICLE XXVII OF THE STATE CONSTITUTION 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.)

Creates a special account within the capital construction fund to be known as the "school construction and renovation account". Directs the state treasurer to transfer net lottery proceeds allocated to the state general fund (the lottery "spillover") to this account beginning with the first quarter of fiscal year 1998­99. Provides that moneys in the account are to be expended in accordance with the provisions of the school district capital construction assistance program created by this act and that unexpended balances and interest earnings remain in the account at the close of any fiscal year.

Creates a school district capital construction assistance program that provides that moneys in the account 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 project that has not been evaluated and included on the prioritized list prepared by the state board of education.

Permits use of moneys in the school construction and renovation account for capital construction projects involving instructional facilities, including classrooms, libraries, physical plants, and administrative areas; however, does not permit use of moneys in the account 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 all public schools within the district. 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 (including the student­teacher ratio) 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 senate and house of representatives 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 account, that only projects on the prioritized list may receive grants of moneys from the account, 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.

Provides that the act shall be automatically repealed on a specified date and that any moneys remaining in the school construction and renovation account immediately prior to such repeal shall be transferred to the general fund.

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

SECTION 1.  24­75­302, Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

24­75­302.  Capital construction fund ­ capital assessment fees ­ calculation ­ repeal. (3.5) (a)  THERE IS HEREBY CREATED A SPECIAL ACCOUNT WITHIN THE CAPITAL CONSTRUCTION FUND ESTABLISHED PURSUANT TO SUBSECTION (1) OF THIS SECTION TO BE KNOWN AS THE "SCHOOL CONSTRUCTION AND RENOVATION ACCOUNT". ALL NET LOTTERY PROCEEDS ALLOCATED TO THE GENERAL FUND PURSUANT TO SECTION 33­60­104 (1) (c), C.R.S., BEGINNING WITH THE FIRST QUARTER OF FISCAL YEAR 1998­99 SHALL BE TRANSFERRED BY THE STATE TREASURER TO SUCH SPECIAL ACCOUNT. THE ACCOUNT SHALL ALSO CONTAIN SUCH ADDITIONAL MONEYS AS MAY BE MADE AVAILABLE BY THE GENERAL ASSEMBLY. ALL MONEYS IN THE ACCOUNT SHALL BE EXPENDED IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 43.7 OF TITLE 22, C.R.S. ALL MONEYS UNEXPENDED OR UNENCUMBERED IN ANY FISCAL YEAR SHALL REMAIN IN THE ACCOUNT. ALL INTEREST EARNED FROM THE INVESTMENT OF MONEYS IN SAID ACCOUNT SHALL REMAIN THEREIN AND SHALL NOT REVERT TO THE GENERAL FUND. TRANSFERS MADE PURSUANT TO THIS SUBSECTION (3.5) SHALL NOT BE DEEMED TO BE APPROPRIATIONS SUBJECT TO THE LIMITATIONS OF SECTION 24­75­201.1. ANY UNEXPENDED OR UNENCUMBERED MONEYS REMAINING IN THE ACCOUNT AS OF JUNE 30, 2001, SHALL BE TRANSFERRED TO THE GENERAL FUND.

(b)  THIS SUBSECTION (3.5) IS REPEALED, EFFECTIVE JULY 1, 2001.

SECTION 2.  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)  "ACCOUNT" MEANS THE SCHOOL CONSTRUCTION AND RENOVATION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND CREATED IN SECTION 24­75­302 (3.5), C.R.S.

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

(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 account ­ purpose ­ legislative declaration. (1)  SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY, MONEYS IN THE SCHOOL CONSTRUCTION AND RENOVATION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND SHALL BE USED TO PROVIDE MATCHING GRANTS TO SCHOOL DISTRICTS THAT ARE UNDERTAKING QUALIFIED CAPITAL CONSTRUCTION PROJECTS.

(2)  IT IS DECLARED TO BE THE POLICY OF THE GENERAL ASSEMBLY THAT MATCHING GRANTS FROM THE ACCOUNT 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.

(3)  THE ACCOUNT SHALL CONSIST OF THE MONEYS TRANSFERRED THERETO PURSUANT TO SECTION 24­75­302 (3.5), C.R.S., AND SUCH ADDITIONAL MONEYS AS MAY BE MADE AVAILABLE BY THE GENERAL ASSEMBLY.

22­43.7­104.  Eligible projects ­ criteria. (1)  MATCHING GRANTS MAY BE PROVIDED FROM THE ACCOUNT 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 ACCOUNT 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.

(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, THE STUDENT­TEACHER RATIO 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; AND

(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 ACCOUNT. ONLY CAPITAL CONSTRUCTION PROJECTS ON THE PRIORITIZED LIST MAY RECEIVE MATCHING GRANTS FROM THE ACCOUNT, 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.

22­43.7­107.  Repeal of article.  THIS ARTICLE IS REPEALED, EFFECTIVE JULY 1, 2001.

SECTION 3.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day 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; 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.