First Regular Session

Sixty-first General Assembly

LLS NO. 97­0095.01 JAP SENATE BILL 97­044

STATE OF COLORADO

BY SENATORS Thiebaut, Bishop, Hernandez, and Powers;

also REPRESENTATIVES Anderson, Clarke, and Leyba.

REVISED

EDUCATION

A BILL FOR AN ACT

CONCERNING HIGHER EDUCATION AUXILIARY FACILITIES THAT ARE DESIGNATED AS ENTERPRISES.

Bill Summary

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

Legislative Audit Committee. Specifies the conditions under which an institution may pledge internal revenues received by an enterprise auxiliary facility for the repayment of revenue bonds issued on behalf of the enterprise auxiliary facility.

Deletes certain auxiliary facilities from the list of auxiliary facilities that are designated as enterprises. Adds the Lowry enterprise to the list of auxiliary facilities designated by the Colorado community college and occupational education system as an enterprise.

Authorizes the board of regents to cross pledge funds from enterprise auxiliary facilities for the repayment of bonds secured by the research building revolving fund and to pledge research building revolving funds for the repayment of bonds issued on behalf of enterprise auxiliary facilities.

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

SECTION 1.  23­5­101.5, Colorado Revised Statutes, 1995 Repl. Vol., is amended BY THE ADDITION OF A NEW SUBSECTION to read:

23­5­101.5.  Enterprise status of auxiliary facilities. (1.5)  IN PLEDGING REVENUES FOR THE REPAYMENT OF REVENUE BONDS ISSUED ON BEHALF OF ANY AUXILIARY FACILITY OR GROUP OF AUXILIARY FACILITIES THAT IS DESIGNATED AS AN ENTERPRISE, THE INSTITUTION OF HIGHER EDUCATION AND THE AUXILIARY FACILITY OR GROUP OF AUXILIARY FACILITIES MAY PLEDGE INTERNAL REVENUES ONLY IF THE AUXILIARY FACILITY OR GROUP OF AUXILIARY FACILITIES:

(a)  IS ACCOUNTED FOR SEPARATELY IN INSTITUTIONAL FINANCIAL RECORDS;

(b)  IS SELF­SUPPORTING FROM REVENUES RECEIVED AS GIFTS FROM NONGOVERNMENTAL SOURCES OR IN EXCHANGE FOR GOODS AND SERVICES; AND

(c)  ENGAGES IN THE TYPE OF ACTIVITIES THAT ARE COMMONLY CARRIED ON FOR PROFIT OUTSIDE THE PUBLIC SECTOR.

SECTION 2.  23­5­101.5 (2), Colorado Revised Statutes, 1995 Repl. Vol., is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

23­5­101.5.  Enterprise status of auxiliary facilities. (2)  As used in this article:

(c)  "INTERNAL REVENUES" MEANS REVENUES RECEIVED IN EXCHANGE FOR THE PROVISION OF GOODS OR SERVICES TO THE INSTITUTION OF HIGHER EDUCATION WITH WHICH THE AUXILIARY FACILITY OR GROUP OF AUXILIARY FACILITIES IS ASSOCIATED; EXCEPT THAT REVENUES RECEIVED FROM ANOTHER AUXILIARY FACILITY OR GROUP OF AUXILIARY FACILITIES THAT HAS BEEN DESIGNATED AS AN ENTERPRISE ARE NOT "INTERNAL REVENUES".

SECTION 3.  23­5­101.5 (4) (a) (III), (4) (a) (V), (4) (a) (VI), (4) (b) (III), (4) (e) (IV), (4) (e) (V), (4) (f) (II), and (4) (f) (III), Colorado Revised Statutes, 1995 Repl. Vol., are amended, and the said 23­5­101.5 (4) (e) is further amended BY THE ADDITION OF A NEW SUBPARAGRAPH, to read:

23­5­101.5.  Enterprise status of auxiliary facilities. (4)  The expiration of the following designations of auxiliary facilities as enterprises, which are scheduled for expiration pursuant to subsection (3) of this section, are postponed until June 30, 1999:

(a)  Auraria higher education center:

(III)  Reprographics; AND

(V)  Facilities remodeling; and

(VI)  Information services;

(b)  University of Colorado:

(III)  Research support services, INCLUDING BUT NOT LIMITED TO THE RESEARCH BUILDING REVOLVING FUND CREATED IN SECTION 23­20­124; and

(e)  Colorado community college and occupational education system:

(IV)  Sales and services of educational activities; and

(V)  Tec operations; AND

(VI)  LOWRY ENTERPRISE;

(f)  Colorado state university system:

(II)  Continuing education; AND

(III)  General operations; and

SECTION 4.  23­1­123 (5) and (7), Colorado Revised Statutes, 1995 Repl. Vol., are amended to read:

23­1­123.  Commission directive ­ fee policies. (5)  In adopting fee policies pursuant to this section, the commission may SHALL adopt separate policies for fees used for academic purposes and fees used for nonacademic DIFFERENT purposes, INCLUDING BUT NOT LIMITED TO THE FOLLOWING FEE POLICIES:

(a)  Fees related to bonds issued on behalf of auxiliary facilities on or after July 1, 1997. (I)  FOR ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON OR AFTER JULY 1, 1997, ON BEHALF OF AN AUXILIARY FACILITY, THE ISSUING OR INCURRING GOVERNING BOARD MAY:

(A)  ASSESS A USER FEE AGAINST PERSONS USING THE AUXILIARY FACILITY THAT INCLUDES THE AMOUNT NECESSARY FOR REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS AND ANY AMOUNT NECESSARY FOR THE OPERATION AND MAINTENANCE OF THE AUXILIARY FACILITY; AND

(B)  ASSESS A GENERAL STUDENT FEE FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS IF THE GENERAL STUDENT FEE IS APPROVED BY A MAJORITY OF THE VOTES CAST BY THE STUDENT BODY AT A REGULARLY SCHEDULED ELECTION. IF THE GENERAL STUDENT FEE IS TO BE ASSESSED AT A PARTICULAR COLLEGE THAT IS PART OF THE STATE SYSTEM OF COMMUNITY COLLEGES, THE GENERAL STUDENT FEE NEED ONLY BE APPROVED BY A MAJORITY OF THE VOTES CAST BY THE STUDENT BODY OF THE COLLEGE WHERE THE AUXILIARY FACILITY IS LOCATED AND WHERE THE GENERAL STUDENT FEE IS TO BE ASSESSED.

(II)  ANY GENERAL STUDENT FEE THAT IS ASSESSED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (a) MAY BE INCREASED WITHOUT STUDENT APPROVAL IF THE REVENUES FROM THE FEE INCREASE ARE ONLY USED FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED FOR THE SPECIFIC PROJECT AND IF:

(A)  THE INCREASE IS NECESSITATED BY A COVENANT IN THE BOND RESOLUTION OR OTHER AGREEMENT THAT ORIGINALLY AUTHORIZED THE BONDS OR OTHER DEBT OBLIGATIONS AND THE GOVERNING BOARD DISCLOSED TO THE STUDENT BODY AT THE TIME OF THE INITIAL ELECTION APPROVING THE FEE THAT THE FEE COULD BE SUBJECT TO INCREASE WITHOUT STUDENT VOTER APPROVAL BASED ON THE COVENANT; OR

(B)  THE INCREASE IS ASSESSED FOR THE REPAYMENT OF BONDS THAT ARE ISSUED TO REFUND THE EXISTING BONDS FOR THE SPECIFIC PROJECT AND THE MATURITY DATE OF THE REFUNDING BONDS IS THE SAME OR EARLIER THAN THE MATURITY DATE OF THE EXISTING BONDS.

(III)  WHILE BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED PURSUANT TO THIS PARAGRAPH (a) REMAIN OUTSTANDING, THE ISSUING OR INCURRING GOVERNING BOARD MAY, BY AGREEMENT BETWEEN THE AUXILIARY FACILITY ON BEHALF OF WHICH THE BONDS OR OTHER DEBT OBLIGATIONS WERE ISSUED OR INCURRED AND ANY OTHER AUXILIARY FACILITY, SUBJECT TO THE RESTRICTIONS SPECIFIED IN PARAGRAPH (c) OF THIS SUBSECTION (5), PLEDGE ANY EXCESS REVENUE RECEIVED FROM THE USER FEE OR THE GENERAL STUDENT FEE ASSESSED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH (a) FOR THE REPAYMENT OF ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON BEHALF OF THE OTHER AUXILIARY FACILITY; EXCEPT THAT THE PLEDGE AGREEMENT SHALL BE TERMINATED OR EXPIRE UPON FULL REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS ORIGINALLY INCURRED FOR THE SPECIFIC PROJECT ON BEHALF OF THE PLEDGING AUXILIARY FACILITY.

(IV)  ON AND AFTER THE DATE UPON WHICH ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED PURSUANT TO THIS PARAGRAPH (a) ARE FULLY REPAID:

(A)  THE AMOUNT OF THE USER FEE ASSESSED AGAINST PERSONS USING THE AUXILIARY FACILITY, IF ANY, SHALL BE REDUCED, IF NECESSARY, SO AS NOT TO EXCEED ONE HUNDRED TEN PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR; EXCEPT THAT THE GOVERNING BOARD MAY REDUCE THE AMOUNT OF THE USER FEE TO AN AMOUNT NOT TO EXCEED ONE HUNDRED TWENTY PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR AND SET ASIDE THE ADDITIONAL TEN PERCENT IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY;

(B)  THE GOVERNING BOARD SHALL CEASE COLLECTING ANY GENERAL STUDENT FEE ASSESSED FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS; EXCEPT THAT, IF NO USER FEE WAS ASSESSED FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS OR IF THE AMOUNT OF THE USER FEE IS LESS THAN THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR, THE GOVERNING BOARD MAY CONTINUE COLLECTING THE GENERAL STUDENT FEE SO LONG AS THE GENERAL STUDENT FEE IS REDUCED, IF NECESSARY, TO AN AMOUNT THAT, IN COMBINATION WITH ANY USER FEE COLLECTED FOR THE AUXILIARY FACILITY, DOES NOT EXCEED ONE HUNDRED TEN PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR. NOTWITHSTANDING THE PROVISIONS OF THIS SUB­SUBPARAGRAPH (B), THE GOVERNING BOARD MAY REDUCE THE AMOUNT OF THE GENERAL STUDENT FEE TO AN AMOUNT THAT, IN COMBINATION WITH ANY USER FEE COLLECTED FOR THE AUXILIARY FACILITY, DOES NOT EXCEED ONE HUNDRED TWENTY PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR AND SET ASIDE THE ADDITIONAL TEN PERCENT IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY.

(C)  THE REVENUES RECEIVED PURSUANT TO THIS SUBPARAGRAPH (IV), EITHER THROUGH A USER FEE OR THROUGH A GENERAL STUDENT FEE, MAY NOT BE PLEDGED FOR THE REPAYMENT OF ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED ON BEHALF OF ANY OTHER AUXILIARY FACILITY. ANY AMOUNT OF SAID REVENUE THAT EXCEEDS BOTH THE AMOUNT NECESSARY FOR THE OPERATION AND MAINTENANCE OF THE AUXILIARY FACILITY AND ANY AMOUNT SET ASIDE IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY IS SURPLUS AND MAY BE USED BY THE GOVERNING BOARD AS PROVIDED IN SECTION 23­5­103 (3).

(b)  Fees related to bonds issued on behalf of auxiliary facilities prior to July 1, 1997. (I)  FOR ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED PRIOR TO JULY 1, 1997, ON BEHALF OF AN AUXILIARY FACILITY FOR A SPECIFIC PROJECT:

(A)  APPROVAL OF THE STUDENT BODY IS NOT REQUIRED FOR ANY FEE ASSESSED FOR REPAYMENT OF SAID BONDS OR OTHER DEBT OBLIGATIONS;

(B)  APPROVAL OF THE STUDENT BODY IS NOT REQUIRED TO INCREASE ANY FEE THAT IS APPLIED TO THE REPAYMENT OF SAID BONDS OR OTHER DEBT OBLIGATIONS IF THE FEE INCREASE IS NECESSITATED BY A COVENANT IN THE AUTHORIZING BOND RESOLUTION OR OTHER AGREEMENT FOR THE SPECIFIC PROJECT FOR WHICH THE BONDS OR OTHER DEBT OBLIGATIONS WERE ISSUED OR INCURRED;

(C)  APPROVAL OF THE STUDENT BODY IS NOT REQUIRED TO INCREASE ANY FEE THAT IS APPLIED TO THE REPAYMENT OF SAID BONDS OR OTHER DEBT OBLIGATIONS IF THE FEE INCREASE IS ASSESSED FOR THE REPAYMENT OF BONDS THAT ARE ISSUED TO REFUND THE EXISTING BONDS FOR THE SPECIFIC PROJECT AND THE MATURITY DATE OF THE REFUNDING BONDS IS THE SAME OR EARLIER THAN THE MATURITY DATE OF THE EXISTING BONDS.

(II)  WHILE BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED PURSUANT TO THIS PARAGRAPH (b) REMAIN OUTSTANDING, THE ISSUING OR INCURRING GOVERNING BOARD MAY, BY AGREEMENT BETWEEN THE AUXILIARY FACILITY ON BEHALF OF WHICH THE BONDS OR OTHER DEBT OBLIGATIONS WERE ISSUED OR INCURRED AND ANY OTHER AUXILIARY FACILITY, SUBJECT TO THE RESTRICTIONS SPECIFIED IN PARAGRAPH (c) OF THIS SUBSECTION (5), PLEDGE ANY EXCESS REVENUE RECEIVED FROM THE FEE FOR THE REPAYMENT OF ANY BONDS OR OTHER DEBT OBLIGATIONS INCURRED ON BEHALF OF THE OTHER AUXILIARY FACILITY; EXCEPT THAT:

(A)  IF THE PLEDGE AGREEMENT IS ENTERED INTO ON OR AFTER JANUARY 1, 1997, THE PLEDGE AGREEMENT SHALL BE TERMINATED OR EXPIRE UPON FULL REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS ORIGINALLY INCURRED FOR THE SPECIFIC PROJECT ON BEHALF OF THE SPECIFIC AUXILIARY FACILITY;

(B)  IF THE PLEDGE AGREEMENT IS ENTERED INTO PRIOR TO JANUARY 1, 1997, THE PLEDGE AGREEMENT SHALL BE TERMINATED OR EXPIRE UPON FULL REPAYMENT OF ALL BONDS OR OTHER DEBT OBLIGATIONS FOR WHICH THE USER FEE REVENUE WAS PLEDGED AS OF JANUARY 1, 1997.

(III)  ON AND AFTER THE DATE UPON WHICH ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED PURSUANT TO THIS PARAGRAPH (b) ARE FULLY REPAID OR, IF REVENUES FROM SAID BONDS OR OTHER DEBT OBLIGATIONS ARE PLEDGED AS PROVIDED IN SUB­SUBPARAGRAPH (B) OF SUBPARAGRAPH (II) OF THIS PARAGRAPH (b), ON AND AFTER THE DATE UPON WHICH THE PLEDGE AGREEMENT IS TERMINATED OR EXPIRES:

(A)  THE AMOUNT OF THE USER FEE, IF ANY, ASSESSED AGAINST PERSONS USING THE AUXILIARY FACILITY SHALL BE REDUCED, IF NECESSARY, SO AS NOT TO EXCEED ONE HUNDRED TEN PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR; EXCEPT THAT THE GOVERNING BOARD MAY REDUCE THE AMOUNT OF THE USER FEE TO AN AMOUNT NOT TO EXCEED ONE HUNDRED TWENTY PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR AND SET ASIDE THE ADDITIONAL TEN PERCENT IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY;

(B)  THE GOVERNING BOARD SHALL CEASE COLLECTING ANY GENERAL STUDENT FEE ASSESSED FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS; EXCEPT THAT, IF NO USER FEE WAS ASSESSED FOR THE REPAYMENT OF THE BONDS OR OTHER DEBT OBLIGATIONS OR IF THE AMOUNT OF THE USER FEE IS LESS THAN THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR, THE GOVERNING BOARD MAY CONTINUE COLLECTING THE GENERAL STUDENT FEE SO LONG AS THE GENERAL STUDENT FEE IS REDUCED, IF NECESSARY, TO AN AMOUNT THAT, IN COMBINATION WITH ANY USER FEE COLLECTED FOR THE AUXILIARY FACILITY, DOES NOT EXCEED ONE HUNDRED TEN PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR. NOTWITHSTANDING THE PROVISIONS OF THIS SUB­SUBPARAGRAPH (B), THE GOVERNING BOARD MAY REDUCE THE AMOUNT OF THE GENERAL STUDENT FEE TO AN AMOUNT THAT, IN COMBINATION WITH ANY USER FEE COLLECTED FOR THE AUXILIARY FACILITY, DOES NOT EXCEED ONE HUNDRED TWENTY PERCENT OF THE COSTS INCURRED IN OPERATING AND MAINTAINING THE AUXILIARY FACILITY DURING THE PRECEDING YEAR AND SET ASIDE THE ADDITIONAL TEN PERCENT IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY.

(C)  THE REVENUES RECEIVED PURSUANT TO THIS SUBPARAGRAPH (III), EITHER THROUGH A USER FEE OR THROUGH A GENERAL STUDENT FEE, MAY NOT BE PLEDGED FOR THE REPAYMENT OF ANY BONDS OR OTHER DEBT OBLIGATIONS ISSUED ON BEHALF OF ANY OTHER AUXILIARY FACILITY. ANY AMOUNT OF SAID REVENUE THAT EXCEEDS BOTH THE AMOUNT NECESSARY FOR THE OPERATION AND MAINTENANCE OF THE AUXILIARY FACILITY AND ANY AMOUNT SET ASIDE IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE AUXILIARY FACILITY IS SURPLUS AND MAY BE USED BY THE GOVERNING BOARD AS PROVIDED IN SECTION 23­5­103 (3).

(c)  Restrictions on pledging of amounts received in fees. (I)  SUBJECT TO THE PROVISIONS OF PARAGRAPHS (a) AND (b) OF THIS SUBSECTION (5), A USER FEE THAT IS ASSESSED AGAINST PERSONS USING AN AUXILIARY FACILITY THAT IS NOT DESIGNATED AS AN ENTERPRISE PURSUANT TO SECTION 23­5­101.5 MAY BE PLEDGED FOR THE REPAYMENT OF BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON BEHALF OF ANY OTHER AUXILIARY FACILITY THAT IS NOT DESIGNATED AS AN ENTERPRISE, AS PROVIDED IN SECTIONS 23­5­102 AND 23­5­103.

(II)  SUBJECT TO THE PROVISIONS OF PARAGRAPHS (a) AND (b) OF THIS SUBSECTION (5), A USER FEE THAT IS ASSESSED AGAINST PERSONS USING AN AUXILIARY FACILITY THAT IS DESIGNATED AS AN ENTERPRISE BY THE UNIVERSITY OF COLORADO PURSUANT TO SECTION 23­5­101.5 MAY BE PLEDGED FOR THE REPAYMENT OF BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON BEHALF OF ANOTHER AUXILIARY FACILITY THAT IS DESIGNATED AS AN ENTERPRISE BY THE UNIVERSITY OF COLORADO, AS PROVIDED IN SECTIONS 23­5­102 AND 23­5­103.

(III)  A GOVERNING BOARD MAY NOT PLEDGE A USER FEE ASSESSED AGAINST PERSONS USING AN AUXILIARY FACILITY THAT IS NOT DESIGNATED AS AN ENTERPRISE FOR REPAYMENT OF BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON BEHALF OF ANY AUXILIARY FACILITY THAT IS DESIGNATED AS AN ENTERPRISE OR ON BEHALF OF THE INSTITUTION WITH WHICH THE AUXILIARY FACILITY IS ASSOCIATED. EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH (c), A GOVERNING BOARD MAY NOT PLEDGE A USER FEE ASSESSED AGAINST PERSONS USING AN AUXILIARY FACILITY THAT IS DESIGNATED AS AN ENTERPRISE PURSUANT TO SECTION 23­1­101.5 FOR THE REPAYMENT OF BONDS OR OTHER DEBT OBLIGATIONS ISSUED OR INCURRED ON BEHALF OF ANY OTHER AUXILIARY FACILITY, REGARDLESS OF WHETHER THE OTHER AUXILIARY FACILITY IS DESIGNATED AS AN ENTERPRISE, OR ON BEHALF OF THE INSTITUTION WITH WHICH THE AUXILIARY FACILITY IS ASSOCIATED.

(7)  For purposes of this section:

(a)  "AUXILIARY FACILITY" HAS THE SAME MEANING AS DEFINED IN SECTION 23­5­101.5 (2) (a).

(b)  "Fees" means any mandatory campus­wide fee assessed against students by any institution of higher education, including the Auraria higher education center, the revenues from which are used for academic or nonacademic purposes, including but not limited to the following:

(a) (I)  Support for student programs, including but not limited to cultural or social events, off­campus housing assistance, student clubs, student organizations, and student media;

(b) (II)  Construction, maintenance, operation, or lease of areas that are used as student centers, recreational facilities, parking lots, or child care centers or for payment of bonds issued for principal or interest payments on long­term debt for student facilities;

(c) (III)  Establishment and operation of campus health clinics or contract health services;

(d) (IV)  Support for intercollegiate or intramural club athletic activities or for payment of bonds allocated for the principal or interest payments on the long­term debt of any facility used for intercollegiate athletics;

(e) (V)  Payment of direct and indirect operating expenses of student government;

(f) (VI)  Providing or purchasing equipment or programmatic activities relating to computer equipment, laboratory equipment, or other technology;

(g) (VII)  Providing administrative services, including registration fees;

(h) (VIII)  Payment for costs incurred in specific courses including, but not limited to, laboratory, music, art, materials, and telecourse fees;

(i) (IX)  Payment of nonspecific costs related to the instructional program or college; and

(j) (X)  Payment for additional insurance costs necessary due to the nature of a particular course.

(c)  "USER FEE" MEANS A FEE PAID BY A STUDENT TO EXERCISE A PRIVILEGE OR RECEIVE A SERVICE PROVIDED BY AN AUXILIARY FACILITY. "USER FEE"DOES NOT INCLUDE:

(I)  ANY GENERAL FEE CHARGED TO ALL STUDENTS;

(II)  ANY FEE PAID FOR CONTINUING EDUCATION FACILITIES OR ACTIVITIES; OR

(III)  ANY FEE PAID TO PURCHASE A TICKET TO AN ATHLETIC EVENT OCCURRING AT THE INSTITUTION.

SECTION 5.  23­5­103 (1) and (3), Colorado Revised Statutes, 1995 Repl. Vol., are amended to read:

23­5­103.  Pledge of income. (1)  The governing board of any one or more state educational institutions, including, but not limited to, the colleges under the control and operation of the trustees of the state colleges in Colorado, which enters into such a contract for the advancement of moneys is authorized, in connection with or as a part of such contract, to pledge the net income derived or to be derived from such land or facilities so constructed, acquired, and equipped as security for the repayment of the moneys advanced therefor, together with interest thereon, and for the establishment and maintenance of reserves in connection therewith; and, for the same purpose, any such governing board is also authorized, SUBJECT TO THE LIMITATIONS SPECIFIED IN SECTION 23­1­123 (5), to pledge the net income derived or to be derived from other auxiliary facilities which are not individually designated as enterprises and which are not acquired and not to be acquired with moneys appropriated to the institution by the state of Colorado, and to pledge the net income, fees, and revenues derived from such sources, if unpledged, or, if pledged, the net income, fees, and revenues currently in excess of the amount required to meet principal, interest, and reserve requirements in connection with outstanding obligations to which such net income, fees, and revenues have theretofore been pledged. If the contract for the advancement of moneys is entered into by the university of Colorado on behalf of a designated enterprise auxiliary facility that is associated with the university of Colorado, the board of regents is authorized to pledge only the net income, including fees and revenues derived or to be derived from the designated enterprise auxiliary facility and any other designated enterprise auxiliary facilities.

(3)  If the pledged net income, fees, and revenues exceed the amount required to meet principal, interest, and reserve requirements in connection with revenue bonds of the institution to which such income has been pledged AND EXCEED THE AMOUNT NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE AUXILIARY FACILITY PLUS ANY AMOUNT SET ASIDE IN A RESERVE FUND FOR REPAIR AND REPLACEMENT OF THE FACILITY, the governing board may retain such surplus and utilize the same in such manner as in its judgment is for the best interests of the educational institution. Such surplus shall be used by the governing board for the purposes of rehabilitating, altering, adding to, or equipping any existing auxiliary facilities acquired pursuant to the provisions of this article and for the acquisition of sites for constructing, acquiring, and equipping additional auxiliary facilities pursuant to such provisions or for prior redemption of outstanding bonds. USE OF SUCH SURPLUS SHALL BE REVIEWED IN ADVANCE BY REPRESENTATIVES OF THE STUDENT GOVERNMENT AT THE INSTITUTION WITH WHICH THE AUXILIARY FACILITY IS ASSOCIATED.

SECTION 6. 23­20­124, Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:

23­20­124. Research building revolving fund ­ appropriation of fund ­ report. There is established in the office of the treasurer of the university a fund to be known as the university of Colorado research building revolving fund. There shall be credited to said fund the user charges or rents authorized by section 23­20­123 and imposed by the board of regents of the university of Colorado, specific appropriations or grants or gifts made to said fund, and the proceeds of the sale of anticipation warrants authorized by sections 23­20­123 to 23­20­125. No payments from student fees, tuition receipts, or general funds shall be deposited in the research building revolving fund or used for said programs; EXCEPT THAT THE BOARD OF REGENTS, MAY, PURSUANT TO SECTIONS 23­5­102 AND 23­5­103, PLEDGE THE REVENUES AND NET INCOME OF ANY OTHER DESIGNATED ENTERPRISE AUXILIARY FACILITIES IN CONNECTION WITH BONDS OR OTHER OBLIGATIONS SECURED BY THE RESEARCH BUILDING REVOLVING FUND. All interest accumulated in this fund shall follow the fund. All such moneys so credited to said fund are appropriated to the university of Colorado for the payment of maintenance and operating costs for its research buildings and facilities and for the planning, construction, and equipping of additional research buildings and facilities for the university of Colorado. IN ADDITION, THE BOARD OF REGENTS MAY, PURSUANT TO SECTIONS 23­5­102 AND 23­5­103, PLEDGE THE RESEARCH BUILDING REVOLVING FUND IN CONNECTION WITH BONDS OR OTHER OBLIGATIONS ISSUED BY OR ON BEHALF OF ANY OTHER DESIGNATED ENTERPRISE AUXILIARY FACILITIES. An annual report of activities and the condition of the fund shall be made to the governor and the joint budget and capital development committees of the general assembly as a part of the university of Colorado's annual budget submission. Such report shall specify the amount, debt service, and purpose of any bonds issued pursuant to section 23­20­129.

SECTION 7. 23­20­125, Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:

23­20­125. Anticipation warrants. The state treasurer is authorized to issue anticipation warrants in such amounts as requested by the board of regents of the university of Colorado, the total amount of which shall not exceed four million dollars, to be repaid exclusively from the user revenues accruing to the university of Colorado research building revolving fund as provided in sections 23­20­123 to 23­20­125 OR FROM REVENUES AND NET INCOME OF ANY OTHER DESIGNATED ENTERPRISE AUXILIARY FACILITIES THAT ARE PLEDGED TO THE REPAYMENT OF SUCH ANTICIPATION WARRANTS PURSUANT TO SECTIONS 23­5­102 AND 23­5­103; such anticipation warrants shall bear interest at a rate not exceeding four percent per annum except those issued on or after February 15, 1968, which shall bear interest not exceeding six percent per annum, and shall not be sold at a price less than the face value thereof. Disbursements from said fund shall be only by warrant upon vouchers certified by the board of regents of the university of Colorado.

SECTION 8. 23­20­129 (3), Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:

23­20­129. Bonds. (3)  Such bonds shall be payable exclusively from, and shall be secured by a pledge of, the university of Colorado research building revolving fund created in section 23­20­124. IN ADDITION, THE BOARD OF REGENTS MAY, PURSUANT TO SECTIONS 23­5­102 AND 23­5­103, PLEDGE THE REVENUES AND NET INCOME OF ANY OTHER DESIGNATED ENTERPRISE AUXILIARY FACILITIES IN CONNECTION WITH BONDS ISSUED AS PROVIDED IN THIS SECTION.

SECTION 9.  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.