Colorado Legislative Council Staff



(Replaces Fiscal Note dated February 6, 1998)

TABOR Refund Impact

No General Fund Impact

HUTF Revenue Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-537

Rep. Tupa

Sen. Reeves


Bill Status:

Fiscal Analyst:

February 18, 1998

House Second Reading

Scott Nachtrieb (866-4752)



Summary of Legislation


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Highway Users Tax Fund (HUTF)



State Expenditures

General Fund

Other Fund



FTE Position Change



Local Government Impact — Additional HUTF distributions

            The bill would allow alumni associations of private or public Colorado colleges or universities to apply to the Department of Revenue for special alumni license plates. Alumni associations would have to obtain commitments to purchase 500 alumni plates from persons before the department would produce a license plate. The alumni association would bear all the costs of designing the plate and would have to conform with standards established by the department.

            Alumni associations would have to set qualifications for persons seeking to obtain the plates that include membership in the alumni association, specified levels of contributions to the college or university, or payment of specified association dues, including special dues established for the alumni plates. The moneys collected for special dues could only be used for scholarships and support of academic programs. The taxes and fees for special alumni license plates would be the same as the taxes and fees for regular license plates, plus a one-time fee of $10. The renewal procedures for special alumni license plates would be the same as for other license plates. This bill’s fiscal impact depends upon an alumni association getting 500 people to commit to purchasing the license plates. Therefore, this bill is assessed as having a conditional fiscal impact.


State Revenues

            This fiscal note has been revised based on the receipt of additional information. Under the DOR rules concerning special plates, the department allows people to apply in March of each year for special plates. The Plates are then issued in January of the following year. Groups would not be able to submit applications by March of 1998 but would submit applications for these special plates in March, 1999. The plates would be issued in January, 2000. The revenue would be received in FY 1999-00.

            It is estimated that only 20 institutions in the state would qualify for special license plates under the provisions of this bill. It is assumed that only five of those institutions will find 500 person that want the special plate. This would generate 2,500 special license plates. Each person purchasing the plate would pay a one-time fee of $10.00. This would generate an estimated $25,000 in additional HUTF Revenue ($10 X 2,500). The State Highway Fund would receive 65 percent of the new revenues.

TABOR Refund Impact

            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

State Expenditures

            The Department of Revenue would have to modify the computer programs for registering motor vehicles. This programming is estimated at 480 hours and would be completed during the annual review and rewrite of computer programs. The Registration Administrative Manual would have to be revised and information would have to be added to the Special License Plate Application Form. This would require $2,241 in General Funds. These costs could be absorbed within the existing resources and would not require additional appropriations.

Local Government Impact

            Local governments would receive additional HUTF distributions from the increase HUTF revenues. Counties would receive 26 percent and cities would receive nine percent.

Spending Authority

            This fiscal note implies that no additional spending authority would be required for FY 1998-99 to implement this bill.

Departments Contacted       Revenue