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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0144.01 DLC HOUSE BILL 98­1174

STATE OF COLORADO

BY REPRESENTATIVES Keller and Entz;

also SENATOR Chlouber.

EDUCATION

A BILL FOR AN ACT

CONCERNING THE CREATION OF A SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT IN THE CAPITAL CONSTRUCTION FUND FOR THE PURPOSE OF DISTRIBUTING MONEYS TO QUALIFYING SCHOOL DISTRICTS FOR CAPITAL CONSTRUCTION PROJECTS.

Bill Summary

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

Creates the school district capital construction account within the capital construction fund. Requires annual transfers of a specified amount from the general fund to the account. Excludes these transfers to the account from the statutory general fund appropriations limit.

Creates a school district capital construction assistance program to provide moneys to school districts for qualified capital construction projects. Provides for the appropriation of moneys in the school district capital construction account to the department of education for allocation to school districts with approved capital construction projects.

Specifies that school districts having a per pupil assessed valuation below the statewide average are eligible for moneys from the school district capital construction account. Requires submittal of applications for moneys from the account to a joint committee of house and senate education committee members. Describes the information that an application must include. Directs the joint committee to review and prioritize the applications.

Directs the joint committee to transmit its prioritized list of eligible projects to the joint budget committee no later than December 1 of each year. Provides that the joint budget committee shall determine how many of the eligible projects shall receive payments from the account, that only projects on the prioritized list may receive payments of moneys from the account, and that the projects shall be funded in the priority determined by the joint committee.

Specifies that, based on the general appropriation bill, the department of education shall direct payment of moneys appropriated to the department for each such project to eligible school districts.


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

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

24­75­302.  Capital construction fund ­ capital assessment fees ­ calculation. (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 DISTRICT CAPITAL CONSTRUCTION ACCOUNT. THE ACCOUNT SHALL CONSIST OF SUCH MONEYS AS ARE ALLOCATED THERETO PURSUANT TO PARAGRAPH (b) OF THIS SUBSECTION (3.5). 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.

(b)  FOR THE 1999­2000 FISCAL YEAR AND FOR EACH OF THE SUCCEEDING FOUR FISCAL YEARS THEREAFTER, ONE HUNDRED MILLION DOLLARS SHALL BE TRANSFERRED FROM THE GENERAL FUND TO THE SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT IN THE CAPITAL CONSTRUCTION FUND. MONEYS TRANSFERRED PURSUANT TO THIS PARAGRAPH (b) ARE IN ADDITION TO ANY MONEYS TRANSFERRED TO THE CAPITAL CONSTRUCTION FUND PURSUANT TO SUBSECTION (2) OF THIS SECTION.

(c)  TRANSFERS MADE PURSUANT TO THIS SUBSECTION (3.5) SHALL NOT BE DEEMED TO BE APPROPRIATIONS SUBJECT TO THE LIMITATIONS OF SECTION 24­75­201.1.

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

ARTICLE 43.7

School District Capital Construction

Assistance Program

22­43.7­101.  Definitions.  AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "ACCOUNT" MEANS THE SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND CREATED IN SECTION 24­75­302 (3.5) (a), 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.

22­43.7­102.  School district capital construction account ­ purpose. (1)  THE SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND SHALL CONSIST OF THE MONEYS TRANSFERRED THERETO PURSUANT TO SECTION 24­75­302 (3.5), C.R.S. SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY, MONEYS IN THE ACCOUNT SHALL BE USED TO PROVIDE ASSISTANCE TO SCHOOL DISTRICTS THAT ARE UNDERTAKING QUALIFIED CAPITAL CONSTRUCTION PROJECTS.

(2)  THE GENERAL ASSEMBLY SHALL APPROPRIATE MONEYS CREDITED TO THE ACCOUNT TO THE DEPARTMENT OF EDUCATION IN THE GENERAL APPROPRIATION BILL FOR THE 2000­01 FISCAL YEAR AND FOR EACH OF THE SUCCEEDING FOUR FISCAL YEARS THEREAFTER. SUCH MONEYS SHALL BE DISTRIBUTED BY THE DEPARTMENT TO SCHOOL DISTRICTS WITH APPROVED CAPITAL CONSTRUCTION PROJECTS AS PROVIDED IN SECTION 22­43.7­103 (5).

22­43.7­103.  Eligible projects ­ criteria. (1)  A SCHOOL DISTRICT THAT HAS A PER PUPIL ASSESSED VALUATION BELOW THE STATEWIDE AVERAGE FOR PER PUPIL ASSESSED VALUATION SHALL BE ELIGIBLE FOR MONEYS FROM THE ACCOUNT.

(2)  APPLICATIONS FROM ELIGIBLE SCHOOL DISTRICTS FOR MONEYS FROM THE ACCOUNT SHALL BE SUBMITTED TO A JOINT COMMITTEE CONSISTING OF MEMBERS OF THE HOUSE AND SENATE EDUCATION COMMITTEES SPECIFIED IN SUBSECTION (3) OF THIS SECTION, REFERRED TO IN THIS SECTION AS THE "JOINT COMMITTEE", NO LATER THAN JULY 1,1999, FOR THE FOLLOWING FISCAL YEAR AND NO LATER THAN JULY 1 OF EACH YEAR THEREAFTER FOR THE FOLLOWING FISCAL YEAR.

(3) (a)  THE JOINT COMMITTEE SPECIFIED IN SUBSECTION (2) OF THIS SECTION IS AUTHORIZED TO EVALUATE APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (2) OF THIS SECTION AND TO PRIORITIZE A LIST OF ELIGIBLE CAPITAL CONSTRUCTION PROJECTS AS PROVIDED IN SUBSECTION (4) OF THIS SECTION.

(b)  THE JOINT COMMITTEE SHALL CONSIST OF SIX MEMBERS APPOINTED AS FOLLOWS:

(I)  THREE MEMBERS OF THE SENATE EDUCATION COMMITTEE APPOINTED BY THE PRESIDENT OF THE SENATE, NO MORE THAN TWO OF WHOM ARE MEMBERS OF THE SAME POLITICAL PARTY;

(II)  THREE MEMBERS OF THE HOUSE EDUCATION COMMITTEE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, NO MORE THAN TWO OF WHOM ARE MEMBERS OF THE SAME POLITICAL PARTY.

(c)  APPLICATIONS FROM SCHOOL DISTRICTS FOR ASSISTANCE FROM THE ACCOUNT SHALL INCLUDE:

(I)  THE AMOUNT OF ASSISTANCE REQUESTED FROM THE ACCOUNT;

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

(III)  EVIDENCE OF THE NEED FOR THE CAPITAL CONSTRUCTION PROJECT;

(IV)  EVIDENCE THAT THE SCHOOL DISTRICT DOES NOT HAVE SUFFICIENT MONEYS TO FINANCE THE CAPITAL CONSTRUCTION PROJECT WITHOUT ASSISTANCE FROM THE ACCOUNT;

(V)  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;

(VI)  THE AMOUNT THAT THE SCHOOL DISTRICT SHALL OBLIGATE FOR EXPENDITURE ON THE CAPITAL CONSTRUCTION PROJECT FROM FUNDS OTHER THAN ASSISTANCE FROM THE ACCOUNT.

(4)  APPLICATIONS FOR CAPITAL CONSTRUCTION PROJECTS DEEMED ELIGIBLE BY THE JOINT COMMITTEE FOR MONEYS FROM THE ACCOUNT SHALL BE PRIORITIZED BASED ON THE FOLLOWING CRITERIA, IN DESCENDING ORDER OF IMPORTANCE:

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

(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 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;

(e)  ALL OTHER CAPITAL CONSTRUCTION PROJECTS.

(5)  FROM THE APPLICATIONS SUBMITTED FOR THE NEXT FISCAL YEAR, THE JOINT COMMITTEE 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. THE JOINT BUDGET COMMITTEE SHALL DETERMINE THE NUMBER OF CAPITAL CONSTRUCTION PROJECTS ON THE LIST THAT MAY RECEIVE PAYMENTS FROM MONEYS AVAILABLE IN THE ACCOUNT. ONLY CAPITAL CONSTRUCTION PROJECTS ON THE PRIORITIZED LIST MAY RECEIVE MONEYS FROM THE ACCOUNT, AND THE CAPITAL CONSTRUCTION PROJECTS SHALL BE FUNDED IN THE PRIORITY DETERMINED BY THE JOINT COMMITTEE.

(6)  BASED ON THE GENERAL APPROPRIATION BILL FOR THE 2000­01 FISCAL YEAR AND EACH OF THE SUCCEEDING FOUR FISCAL YEARS THEREAFTER, ON JULY 1 OF EACH SUCH FISCAL YEAR, THE DEPARTMENT OF EDUCATION SHALL DIRECT THE PAYMENT OF MONEYS APPROPRIATED TO THE DEPARTMENT FOR EACH SUCH PROJECT FROM THE SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT TO THE TREASURER OF THE ELIGIBLE SCHOOL DISTRICT FOR CREDIT TO THE CAPITAL CONSTRUCTION ACCOUNT OF THE DISTRICT'S GENERAL FUND CREATED PURSUANT TO SECTION 22­45­103 (1) (a) (VI); EXCEPT THAT THE MONEYS CREDITED TO THE ACCOUNT PURSUANT TO THIS SECTION SHALL ONLY BE USED FOR THE CAPITAL CONSTRUCTION PROJECT FOR WHICH THE APPLICATION WAS APPROVED BY THE JOINT COMMITTEE AND SHALL NOT BE USED BY THE SCHOOL DISTRICT FOR ANY OTHER PURPOSE.

SECTION 3.  Refer to people under referendum.  This act shall be submitted to a vote of the registered electors of the state of Colorado at the next biennial regular general election, for their approval or rejection, under the provisions of the referendum as provided for in section 1 of article V of the state constitution, and article 40 of title 1, Colorado Revised Statutes. Each elector voting at said election and desirous of voting for or against said act shall cast a vote as provided by law either "Yes" or "No" on the proposition: "FOR THE PURPOSE OF PROVIDING FUNDS FOR ELIGIBLE SCHOOL DISTRICT CAPITAL CONSTRUCTION PROJECTS, SHALL THE GENERAL ASSEMBLY BE AUTHORIZED TO TRANSFER ANNUALLY ONE HUNDRED MILLION DOLLARS FOR THE 1999­2000 FISCAL YEAR AND FOR EACH OF THE SUCCEEDING FOUR FISCAL YEARS FROM THE STATE GENERAL FUND TO THE SCHOOL DISTRICT CAPITAL CONSTRUCTION ACCOUNT, WITH SUCH TRANSFERS NOT BEING SUBJECT TO THE STATUTORY LIMITATION ON STATE GENERAL FUND APPROPRIATIONS, AND, IN CONNECTION THEREWITH, PROVIDING FOR THE CREATION OF A JOINT LEGISLATIVE COMMITTEE TO REVIEW PROJECT APPLICATIONS AND PRIORITIZE APPROVED SCHOOL DISTRICT CAPITAL CONSTRUCTION PROJECTS, SPECIFYING THE CRITERIA FOR PRIORITIZATION OF SUCH PROJECTS, AND DIRECTING THE DEPARTMENT OF EDUCATION TO ALLOCATE MONEYS APPROPRIATED FOR AN APPROVED PROJECT TO A SCHOOL DISTRICT?" The votes cast for the adoption or rejection of said act shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress.