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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0098.01 MKH HOUSE BILL 98­1147

STATE OF COLORADO

BY REPRESENTATIVE Pankey

STATE, VETERANS & MILITARY AFFAIRS

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE LIMITATION OF STATE GENERAL FUND APPROPRIATIONS FOR THE PURPOSE OF INCREASING THE AMOUNT OF STATE GENERAL FUND MONEYS AVAILABLE FOR OTHER PURPOSES, AND, IN CONNECTION THEREWITH, ESTABLISHING A GRANT PROGRAM FOR EDUCATIONAL VOUCHERS TO BE FUNDED WITH A PORTION OF SUCH STATE GENERAL FUND MONEYS MADE AVAILABLE.

Bill Summary

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

For fiscal year 1999­2000, limits general fund appropriations to the judicial department, the legislative department, the governor's office, the lieutenant governor's office, the office of state planning and budgeting, and each principal department of state government to 3% over a department or agency's general fund appropriations for the 1998­99 fiscal year. For subsequent fiscal years, limits growth in general fund appropriations to said governmental entities to the rate of inflation, not to exceed the existing statutory spending limit of 6% over the general fund appropriations for the previous fiscal year. Allows this limit to be exceeded under certain circumstances, including the declaration of a fiscal emergency by the general assembly.

Requires additional general fund appropriations to be made to the department of transportation for capital construction projects and public­private initiatives, to the K­12 educational voucher program, and to the Colorado commission on higher education for the tuition assistance grant program, as long as overall general fund appropriations do not exceed current statutory limits.

Establishes the educational voucher fund to receive general fund moneys within existing statutory appropriation limitations. Provides that moneys in the fund are to be used for grants to school districts to allow children to attend nonpublic schools.


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

SECTION 1.  Part 2 of article 75 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

24­75­201.4.  Restriction on general fund appropriations to agencies and departments of state government. (1)  EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (3), (4), AND (5) OF THIS SECTION, FOR THE FISCAL YEAR 1999­2000, STATE GENERAL FUND APPROPRIATIONS TO THE FOLLOWING GOVERNMENT ENTITIES SHALL NOT EXCEED THREE PERCENT OVER SUCH GOVERNMENT ENTITY'S STATE GENERAL FUND APPROPRIATIONS FOR THE 1998­99 FISCAL YEAR, AND, FOR EACH FISCAL YEAR THEREAFTER, SAID APPROPRIATIONS SHALL NOT EXCEED THE RATE OF INFLATION FOR THE PREVIOUS FISCAL YEAR SUBJECT TO THE LIMITS SET FORTH IN SECTION 24­75­201.1:

(a)  THE GOVERNOR'S OFFICE;

(b)  THE JUDICIAL DEPARTMENT;

(c)  THE LEGISLATIVE DEPARTMENT;

(d)  THE LIEUTENANT GOVERNOR'S OFFICE;

(e)  THE OFFICE OF STATE PLANNING AND BUDGETING; AND

(f)  EACH PRINCIPAL DEPARTMENT LISTED IN SECTION 24­1­110.

(2)  FOR PURPOSES OF THIS SECTION, "INFLATION" MEANS THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR THE DENVER­BOULDER CONSOLIDATED METROPOLITAN STATISTICAL AREA FOR ALL URBAN CONSUMERS, ALL GOODS, AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, OR ITS SUCCESSOR INDEX.

(3)  EXCEPT AS OTHERWISE PROVIDED UNDER SUBSECTION (4) OF THIS SECTION, IMMEDIATELY AFTER APPROPRIATIONS HAVE BEEN MADE IN ACCORDANCE WITH SUBSECTION (1) OF THIS SECTION:

(a)  THE DEPARTMENT OF TRANSPORTATION SHALL BE APPROPRIATED ADDITIONAL GENERAL FUND MONEYS IN EXCESS OF THE THREE PERCENT LIMITATION SET FORTH IN SUBSECTION (1) OF THIS SECTION FOR STATE HIGHWAY CONSTRUCTION, RECONSTRUCTION, REPAIR, AND MAINTENANCE PROJECTS AND, FOR PUBLIC­PRIVATE INITIATIVES AS DEFINED IN SECTION 43­1­1201, C.R.S., IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE BALANCE REMAINING IN THE GENERAL FUND THAT CAN OTHERWISE BE APPROPRIATED PURSUANT TO SECTION 24­75­201.1;

(b)  STATE GENERAL FUND MONEYS IN AN AMOUNT EQUAL TO TWENTY­FIVE PERCENT OF THE BALANCE REMAINING IN THE GENERAL FUND THAT CAN OTHERWISE BE APPROPRIATED PURSUANT TO SECTION 24­75­201.1 SHALL BE APPROPRIATED TO THE K­12 EDUCATIONAL VOUCHER FUND CREATED IN ARTICLE 39 OF TITLE 22, C.R.S.; AND

(c)  STATE GENERAL FUND MONEYS IN AN AMOUNT EQUAL TO TWENTY­FIVE PERCENT OF THE BALANCE REMAINING IN THE GENERAL FUND THAT CAN OTHERWISE BE APPROPRIATED PURSUANT TO SECTION 24­75­201.1 SHALL BE APPROPRIATED TO THE COLORADO COMMISSION ON HIGHER EDUCATION FOR PURPOSES OF FUNDING THE TUITION ASSISTANCE GRANT PROGRAM CREATED UNDER ARTICLE 3.7 OF TITLE 23, C.R.S.

(4)  THE LIMITATION ON THE AMOUNT OF STATE GENERAL FUND APPROPRIATIONS SET FORTH IN SUBSECTION (1) OF THIS SECTION SHALL NOT APPLY TO:

(a)  ANY AMOUNT NECESSARY FOR REAPPRAISALS OF ANY CLASS OR CLASSES OF TAXABLE PROPERTY FOR PROPERTY TAX PURPOSES AS REQUIRED BY SECTION 39­1­105.5, C.R.S.;

(b)  ANY STATE GENERAL FUND APPROPRIATION MADE AS A RESULT OF ANY REQUIREMENT OF FEDERAL LAW FOR ANY NEW PROGRAM OR SERVICE OR FOR ANY INCREASE IN THE LEVEL OF SERVICE FOR AN EXISTING PROGRAM BEYOND THE EXISTING LEVEL OF SERVICE;

(c)  ANY STATE GENERAL FUND APPROPRIATION MADE AS A RESULT OF ANY REQUIREMENT OF A FINAL STATE OR FEDERAL COURT ORDER FOR ANY NEW PROGRAM OR SERVICE OR FOR ANY INCREASE IN THE LEVEL OF SERVICE FOR AN EXISTING PROGRAM BEYOND THE EXISTING LEVEL OF SERVICE; OR

(d)  ANY STATE GENERAL FUND APPROPRIATION OF ANY MONEYS DERIVED FROM ANY INCREASE IN THE RATE OR AMOUNT OF ANY TAX OR FEE THAT IS APPROVED BY A MAJORITY OF THE REGISTERED ELECTORS OF THE STATE VOTING AT ANY GENERAL OR ODD­YEAR ELECTION, AS APPLICABLE.

(5) (a)  THE LIMITATION ON THE AMOUNT OF STATE GENERAL FUND APPROPRIATIONS THAT MAY BE APPROPRIATED PURSUANT TO SUBSECTION (1) OF THIS SECTION MAY BE EXCEEDED FOR A GIVEN FISCAL YEAR UPON THE DECLARATION OF A FISCAL EMERGENCY FOR ONE OR MORE GOVERNMENT ENTITIES BY THE GENERAL ASSEMBLY. FOR PURPOSES OF THIS SECTION, A FISCAL EMERGENCY MAY ONLY BE DECLARED IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN SECTION 24­75­201.1 (1) (a) (IV).

(b)  IN THE EVENT THAT A FISCAL EMERGENCY IS DECLARED PURSUANT TO THIS SUBSECTION (5), THE AMOUNT OF MONEY REQUIRED TO BE APPROPRIATED PURSUANT TO PARAGRAPHS (a) TO (c) OF SUBSECTION (3) OF THIS SECTION MAY BE REDUCED DURING THE FISCAL YEAR IN WHICH THE FISCAL CRISIS IS DECLARED, TO THE EXTENT NECESSARY TO ADDRESS SUCH FISCAL CRISIS.

(c)  ANY FUNDS APPROPRIATED IN A GIVEN FISCAL YEAR WHICH EXCEED THE LIMITATION ESTABLISHED BY SUBSECTION (1) OF THIS SECTION BECAUSE OF THE DECLARATION OF A FISCAL EMERGENCY BY THE GENERAL ASSEMBLY PURSUANT TO THIS SUBSECTION (5) SHALL NOT BE INCLUDED IN THE CALCULATION OF THE MAXIMUM LEVEL OF STATE GENERAL FUND APPROPRIATIONS THAT MAY BE MADE PURSUANT TO SUBSECTION (1) OF THIS SECTION FOR SUBSEQUENT FISCAL YEARS TO A GOVERNMENT ENTITY FOR WHICH A FISCAL EMERGENCY IS DECLARED.

(6)  FOR PURPOSES OF THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a)  "GOVERNMENT ENTITY" MEANS ANY OF THE DEPARTMENTS LISTED UNDER SUBSECTION (1) OF THIS SECTION.

(b)  "INCREASE IN THE LEVEL OF SERVICE FOR AN EXISTING PROGRAM" DOES NOT INCLUDE ANY INCREASE IN EXPENDITURES NECESSARY TO OFFSET AN INCREASE IN COSTS TO PROVIDE SUCH SERVICE DUE TO INFLATION OR ANY INCREASE IN THE NUMBER OF RECIPIENTS OF SUCH SERVICE UNLESS SUCH INCREASE RESULTS FROM ANY REQUIREMENT OF FEDERAL LAW THAT EITHER ENLARGES AN EXISTING CLASS OF RECIPIENTS OR ADDS A NEW CLASS OF RECIPIENTS.

(c)  "REQUIREMENT OF FEDERAL LAW" MEANS ANY FEDERAL LAW, RULE, REGULATION, EXECUTIVE ORDER, GUIDELINE, STANDARD, OR OTHER FEDERAL ACTION THAT HAS THE FORCE AND EFFECT OF LAW AND WHICH EITHER REQUIRES THE STATE TO TAKE ACTION OR DOES NOT DIRECTLY REQUIRE THE STATE TO TAKE ACTION BUT WILL, ACCORDING TO FEDERAL LAW, RESULT IN THE LOSS OF FEDERAL FUNDS IF THE STATE ACTION IS NOT TAKEN TO COMPLY WITH SUCH FEDERAL ACTION.

SECTION 2.  Title 22, Colorado Revised Statutes, is amended by THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 39

K­12 Educational Voucher Program

22­39­101.  Legislative declaration.  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT COMPETITION BETWEEN PUBLIC AND PRIVATE SCHOOLS PROMOTES THE STATE'S INTEREST IN PROVIDING THE HIGHEST QUALITY OF EDUCATION TO ALL CHILDREN. THE GENERAL ASSEMBLY FURTHER FINDS THAT AN EDUCATED POPULACE IS ESSENTIAL TO THE SOCIAL AND ECONOMIC HEALTH OF THIS STATE AND THAT THE STATE'S EFFORT TO ASSIST FAMILIES IN MEETING THE RISING COST OF PRIVATE EDUCATIONAL EXPENSES SERVES THE PURPOSE OF ENSURING THAT THE STATE'S CITIZENRY IS WELL EDUCATED. FINALLY, THE GENERAL ASSEMBLY FINDS THAT EDUCATIONAL VOUCHER PROGRAMS WILL HELP TO RELIEVE THE FINANCIAL BURDEN ON PUBLIC SCHOOLS, THEREBY IMPROVING THE QUALITY OF EDUCATION FOR PUBLIC SCHOOL STUDENTS. THEREFORE, THE PURPOSE OF THIS ARTICLE IS TO ENHANCE THE EDUCATION OF ALL CHILDREN IN THIS STATE.

22­39­102.  Definitions.  AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

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

(2) (a)  "NONPUBLIC SCHOOL" MEANS:

(I)  ANY NONPUBLIC SCHOOL OPERATING IN THIS STATE THAT DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY, RACE, CREED, COLOR, NATIONAL ORIGIN, OR ANCESTRY; OR

(II)  A CHARTER SCHOOL ESTABLISHED PURSUANT TO THE PROVISIONS OF ARTICLE 30.5 OF THIS TITLE OR A NON­PUBLIC HOME­BASED EDUCATIONAL PROGRAM OPERATED PURSUANT TO SECTION 22­33­104.5.

(b)  "NONPUBLIC SCHOOL" DOES NOT INCLUDE A SCHOOL THAT CHARGES A CHILD WHO USES AN EDUCATIONAL VOUCHER PURSUANT TO THIS ARTICLE AN AMOUNT OF TUITION THAT EXCEEDS THE NORMAL AND USUAL AMOUNT OF TUITION CHARGED OTHER CHILDREN ENROLLED IN THE SCHOOL.

(c)  IN THE EVENT THAT A STATE APPELLATE COURT OR A FEDERAL COURT DETERMINES THAT PROVIDING EDUCATION VOUCHERS PURSUANT TO THIS ARTICLE TO A PARENT WHO CHOOSES TO ENROLL HIS OR HER CHILD IN A PAROCHIAL SCHOOL VIOLATED EITHER THE STATE OR THE FEDERAL CONSTITUTION, THE DEFINITION OF "NONPUBLIC SCHOOL" AS DEFINED IN THIS SUBSECTION (2) SHALL BE CONSTRUED AS EXCLUDING PAROCHIAL SCHOOLS.

(3)  "QUALIFIED VOUCHER PROGRAM" MEANS A SCHOOL DISTRICT EDUCATIONAL VOUCHER PROGRAM THAT HAS BEEN APPROVED FOR GRANT MONEYS BY THE BOARD PURSUANT TO THIS ARTICLE.

(4)  "SCHOOL DISTRICT" MEANS ANY PUBLIC SCHOOL DISTRICT ORGANIZED UNDER THE LAWS OF COLORADO, EXCEPT A JUNIOR COLLEGE DISTRICT.

22­39­103.  Educational voucher fund ­ grant program ­ creation. (1)  THE EDUCATIONAL VOUCHER FUND IS ESTABLISHED IN THE STATE TREASURY AND CONSISTS OF:

(a)  MONEYS APPROPRIATED BY THE GENERAL ASSEMBLY, INCLUDING BUT NOT LIMITED TO MONEYS APPROPRIATED PURSUANT TO SECTION 24­75­201.4 (2) (b), C.R.S.; AND

(b)  GIFTS AND DONATIONS.

(2)  ANY SCHOOL DISTRICT MAY APPLY FOR GRANT MONEYS FROM THE EDUCATIONAL VOUCHER FUND AND, UPON APPROVAL OF THE BOARD, MAY USE SUCH GRANT MONEYS TO ESTABLISH AND MAINTAIN A QUALIFIED VOUCHER PROGRAM.

(3)  MONEYS IN THE EDUCATIONAL VOUCHER FUND SHALL BE USED TO PROVIDE GRANTS TO SCHOOL DISTRICTS THAT ARE UNDERTAKING QUALIFIED EDUCATIONAL VOUCHER PROGRAMS TO ENABLE ANY STUDENT IN ANY ONE OF THE GRADES ONE THROUGH TWELVE OR IN KINDERGARTEN IF KINDERGARTEN IS OFFERED IN THE SCHOOL DISTRICT, AND WHO RESIDES IN A PARTICIPATING SCHOOL DISTRICT, TO ATTEND A NONPUBLIC SCHOOL.

(4)  ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE EDUCATIONAL VOUCHER 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.

22­39­104.  Grant application requirements ­ evaluation criteria ­ state board. (1)  BEGINNING JANUARY 1, 1999, APPLICATIONS FOR GRANTS FROM THE EDUCATIONAL VOUCHER FUND SHALL BE SUBMITTED BY SCHOOL DISTRICTS TO THE BOARD NO LATER THAN JULY 1 OF EACH YEAR FOR THE FOLLOWING FISCAL YEAR.

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

(3)  IN ORDER TO APPLY FOR GRANT MONEYS FROM THE EDUCATIONAL VOUCHER FUND, A SCHOOL DISTRICT SHALL SUBMIT A PROPOSAL FOR THE IMPLEMENTATION OF ITS VOUCHER PROGRAM. ALL APPLICATIONS SUBMITTED TO THE BOARD SHALL BE IN A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE:

(a)  A DESCRIPTION OF THE SCOPE AND NATURE OF THE VOUCHER PROGRAM;

(b)  THE SCHOOL DISTRICT'S FORMULA OR CRITERIA FOR ESTABLISHING THE AMOUNT OF EACH EDUCATIONAL VOUCHER;

(c)  THE STANDARDS BY WHICH STUDENTS WILL BE CHOSEN TO RECEIVE EDUCATIONAL VOUCHERS;

(d)  THE ESTIMATED NUMBER OF STUDENTS WHO WILL BE ELIGIBLE TO RECEIVE EDUCATIONAL VOUCHERS IN THE SCHOOL DISTRICT;

(e)  THE RATIO IN WHICH THE SCHOOL DISTRICT WILL APPORTION EDUCATIONAL VOUCHERS BETWEEN PRIMARY AND SECONDARY SCHOOL STUDENTS;

(f)  THE MANNER IN WHICH THE SCHOOL DISTRICT WILL DISTRIBUTE EDUCATIONAL VOUCHERS;

(g)  THE SCHOOL DISTRICT'S PLAN FOR ADVERTISING THE AVAILABILITY OF EDUCATIONAL VOUCHERS WITHIN THE SCHOOL DISTRICT;

(h)  THE CRITERIA AND STANDARDS THE SCHOOL DISTRICT WILL USE TO COMPARE THE ACHIEVEMENT OF STUDENTS WHO ATTEND NONPUBLIC SCHOOLS USING EDUCATIONAL VOUCHERS AND STUDENTS ATTENDING PUBLIC SCHOOLS IN THE SCHOOL DISTRICT.

(4)  THE BOARD SHALL EVALUATE GRANT APPLICATIONS ON THE FOLLOWING CRITERIA:

(a)  THE ACADEMIC PERFORMANCE OF STUDENTS WHO ATTEND PUBLIC SCHOOLS IN THE SCHOOL DISTRICT;

(b)  THE EXTENT TO WHICH THE VOUCHER PROGRAM WILL ADDRESS ENROLLMENT GROWTH ISSUES WITHIN THE SCHOOL DISTRICT;

(c)  THE EFFICIENT DISTRIBUTION OF EDUCATIONAL VOUCHERS WITHIN THE SCHOOL DISTRICT;

(d)  THE QUALITY OF PUBLIC SCHOOL CAPITAL FACILITIES WITHIN THE SCHOOL DISTRICT;

(e)  ANY OTHER CRITERIA THAT THE BOARD MAY DEEM IMPORTANT.

(5)  AFTER EVALUATING GRANT APPLICATIONS PURSUANT TO THE PROVISIONS SET FORTH IN THIS SECTION, THE BOARD SHALL DECIDE WHICH GRANT APPLICATIONS TO APPROVE AND THE AMOUNTS THEREOF BY MARCH 1 OF THE FISCAL YEAR IN WHICH THE APPLICATION IS SUBMITTED. GRANT MONEYS SHALL BE DISTRIBUTED BY JULY 1 OF THE FISCAL YEAR FOLLOWING THEIR APPROVAL.

22­39­105.  Student participation.  STUDENT PARTICIPATION IN ANY QUALIFIED EDUCATIONAL VOUCHER PROGRAM SHALL BE ON A VOLUNTARY BASIS.

22­39­106.  Determination of school district enrollment.  FOR PURPOSES OF DETERMINING A DISTRICT'S PUPIL ENROLLMENT UNDER ARTICLE 54 OF THIS TITLE, FOR BUDGET YEARS BEGINNING ON OR AFTER JULY 1, 2001, ANY STUDENT WHO RECEIVES AN EDUCATIONAL VOUCHER FROM A QUALIFIED VOUCHER PROGRAM IN THE CURRENT BUDGET YEAR SHALL NOT BE CONSIDERED TO BE ENROLLED IN THE DISTRICT OF RESIDENCE.

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.