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Second Regular Session
Sixty-first General Assembly
LLS NO. 980363.01 DLC
SENATE BILL 98091
STATE OF COLORADO
BY SENATOR Feeley
A BILL FOR AN ACT
CONCERNING THE RETENTION OF A PORTION OF STATE REVENUES
IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR
SPENDING FOR THE PURPOSE OF PROVIDING FINANCIAL ASSISTANCE TO
ELIGIBLE SCHOOL DISTRICTS FOR CAPITAL CONSTRUCTION PROJECTS.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Defines "excess revenues" as the amount of state revenues that is in excess of the state fiscal year spending limitation for that fiscal year as prescribed by section 20 of article X of the state constitution.
Requires annual transfers from the general fund, commencing January 31, 1999, of $100 million or an amount equal to 1/3rd of the excess revenues for the preceding fiscal year, whichever is less, to the school capital construction trust fund. Specifies that such transfers are not appropriations that are subject to state spending limits.
Creates the school capital construction trust fund consisting of the specified excess revenues. Specifies that moneys in the fund shall be used to make loans to school districts that are undertaking capital construction projects. Requires that moneys in the fund be appropriated to the department of education in the annual appropriation bill for loans to school districts with approved capital construction projects.
Allows school districts to submit applications to the Colorado postsecondary educational facilities authority for a loan of moneys from the fund. Authorizes the state board authority to evaluate loan applications and specifies the criteria for loan eligibility. Provides that, if the authority approves the loan application, it shall determine the amount of the loan to be made to the school district for the capital construction project and the terms for repayment.
Specifies that moneys appropriated from the fund for such loans shall not be included in either state or school district constitutional spending limits.
Requires the Colorado postsecondary educational facilities authority to notify the department of education of the approval of a loan application and provides for the payment of moneys appropriated to the department for such loans to that school district.
Prohibits grants of moneys from the fund to school
districts unless specifically authorized by the general assembly
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:
2475216. Excess revenues transfer school capital construction trust fund. (1) FOR PURPOSES OF THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "EXCESS REVENUES" MEANS THE AMOUNT OF STATE REVENUES FOR A PARTICULAR STATE FISCAL YEAR FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING THAT IS IN EXCESS OF THE STATE FISCAL YEAR SPENDING LIMITATION PRESCRIBED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION FOR THAT FISCAL YEAR.
(2) THE STATE CONTROLLER AND STATE AUDITOR SHALL JOINTLY NOTIFY THE STATE TREASURER OF THE AMOUNT OF EXCESS REVENUES NO LATER THAN TEN DAYS PRIOR TO THE DATE OF ANY TRANSFER REQUIRED BY THIS SECTION.
(3) NO TRANSFER SHALL BE REQUIRED UNDER THIS SECTION IF THERE ARE NO EXCESS REVENUES FOR THE FISCAL YEAR.
(4) ON JANUARY 31, 1999, THE STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND ONE HUNDRED MILLION DOLLARS OR AN AMOUNT EQUAL TO ONETHIRD OF THE EXCESS REVENUES FOR THE 199798 FISCAL YEAR, WHICHEVER IS LESS, TO THE SCHOOL CAPITAL CONSTRUCTION TRUST FUND CREATED IN SECTION 2243.7102, C.R.S.
(5) ON NOVEMBER 1, 1999, AND ON NOVEMBER 1 OF EACH SUCCEEDING YEAR, THE STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND ONE HUNDRED MILLION DOLLARS OR AN AMOUNT EQUAL TO ONETHIRD OF THE EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR, WHICHEVER IS LESS, TO THE SCHOOL CAPITAL CONSTRUCTION TRUST FUND CREATED IN SECTION 2243.1102, C.R.S.
(6) ANY TRANSFER OF REVENUES FROM THE GENERAL FUND MADE PURSUANT TO THIS SECTION SHALL NOT BE DEEMED TO BE AN APPROPRIATION 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:
School Capital Construction
2243.7101. Short title. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "SCHOOL CAPITAL CONSTRUCTION ASSISTANCE PROGRAM ACT".
2243.7102. Definitions. AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "AUTHORITY" MEANS THE COLORADO POSTSECONDARY EDUCATIONAL FACILITIES AUTHORITY CREATED PURSUANT TO SECTION 2315104, C.R.S.
(2) "FUND" MEANS THE SCHOOL CAPITAL CONSTRUCTION TRUST FUND CREATED IN SECTION 2243.7103.
2243.7103. School capital construction trust fund established purpose. (1) THERE IS HEREBY ESTABLISHED IN THE STATE TREASURY THE SCHOOL CAPITAL CONSTRUCTION TRUST FUND. THE FUND SHALL CONSIST OF THE MONEYS TRANSFERRED THERETO PURSUANT TO SECTION 2475216, C.R.S. SUBJECT TO APPROPRIATION BY THE GENERAL ASSEMBLY, MONEYS IN THE FUND SHALL BE USED TO MAKE LOANS TO SCHOOL DISTRICTS THAT ARE UNDERTAKING APPROVED CAPITAL CONSTRUCTION PROJECTS.
(2) THE GENERAL ASSEMBLY SHALL APPROPRIATE MONEYS CREDITED TO THE FUND TO THE DEPARTMENT OF EDUCATION IN THE GENERAL APPROPRIATION BILL FOR THE 200001 FISCAL YEAR AND FOR EACH FISCAL YEAR THEREAFTER. SUCH MONEYS MAY BE LOANED BY THE DEPARTMENT TO SCHOOL DISTRICTS WITH APPROVED CAPITAL CONSTRUCTION PROJECTS.
2243.7104. Eligible projects loans criteria. (1) APPLICATIONS FROM SCHOOL DISTRICTS FOR A LOAN OF MONEYS FROM THE FUND SHALL BE SUBMITTED TO THE AUTHORITY NO LATER THAN JULY 1, 1999, FOR ANY LOAN THAT MAY BE MADE FROM MONEYS APPROPRIATED FOR THE 200001 FISCAL YEAR AND ON JULY 1 OF EACH YEAR THEREAFTER FOR THE NEXT FOLLOWING FISCAL YEAR.
(2) THE AUTHORITY IS AUTHORIZED TO EVALUATE LOAN APPLICATIONS SUBMITTED BY SCHOOL DISTRICTS PURSUANT TO SUBSECTION (1) OF THIS SECTION. IN ORDER TO BE ELIGIBLE FOR A LOAN OF MONEYS FROM THE FUND, A SCHOOL DISTRICT MUST SPECIFY THE FOLLOWING IN SUCH APPLICATION:
(a) THE CAPITAL CONSTRUCTION PROJECT FOR WHICH THE LOAN IS REQUESTED;
(b) THE AMOUNT OF THE LOAN REQUESTED;
(c) THAT PRIOR TO SUBMITTAL OF SUCH APPLICATION, THE BOARD OF EDUCATION OF THE SCHOOL DISTRICT APPLYING FOR THE LOAN HAS RECEIVED APPROVAL AT AN ELECTION TO ISSUE BONDS FOR ONE OR MORE OF THE FOLLOWING PURPOSES:
(I) FOR ACQUIRING OR PURCHASING BUILDINGS OR GROUNDS;
(II) FOR ENLARGING, IMPROVING, REMODELING, REPAIRING, OR MAKING ADDITIONS TO ANY SCHOOL BUILDING;
(III) FOR CONSTRUCTING OR ERECTING SCHOOL BUILDINGS;
(IV) FOR EQUIPPING OR FURNISHING ANY SCHOOL BUILDING, INCLUDING, BUT NOT LIMITED TO, THE PURCHASE OF ADVANCED TECHNOLOGY EQUIPMENT, BUT ONLY IN CONJUNCTION WITH A CONSTRUCTION PROJECT FOR A NEW BUILDING OR FOR AN ADDITION TO AN EXISTING BUILDING OR IN CONJUNCTION WITH A PROJECT FOR SUBSTANTIAL REMODELING, IMPROVEMENT, OR REPAIR OF AN EXISTING BUILDING; OR
(V) FOR IMPROVING SCHOOL GROUNDS;
(d) THAT THE SCHOOL DISTRICT SHALL USE ANY MONEYS LOANED TO THE DISTRICT FROM THE FUND FOR THE CAPITAL CONSTRUCTION PROJECT FOR WHICH THE BONDED INDEBTEDNESS WAS APPROVED;
(e) THAT THE TOTAL PROCEEDS FROM THE ISSUANCE OF THE BONDS APPROVED AT SUCH ELECTION IS NOT LESS THAN THE AMOUNT OF THE LOAN REQUESTED AND SHALL BE USED TO MATCH THE PROCEEDS FROM ANY LOAN MADE TO THE SCHOOL DISTRICT PURSUANT TO THIS SECTION.
(3) THE AUTHORITY SHALL CONDUCT SUCH INVESTIGATION AS IT DEEMS PROPER AND, IF THE AUTHORITY APPROVES THE LOAN APPLICATION, SHALL DETERMINE THE AMOUNT OF THE LOAN TO BE PROVIDED TO THE SCHOOL DISTRICT FOR THE CAPITAL CONSTRUCTION PROJECT AND THE TERMS OF REPAYMENT.
(4) UPON NOTIFICATION OF THE APPROVAL OF A LOAN APPLICATION BY THE AUTHORITY. THE DEPARTMENT OF EDUCATION SHALL DIRECT THE PAYMENT OF MONEYS APPROPRIATED TO THE DEPARTMENT FOR SUCH LOANS FROM THE FUND 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 STATE BOARD AND SHALL NOT BE USED BY THE SCHOOL DISTRICT FOR ANY OTHER PURPOSE.
(5) MONEYS APPROPRIATED FROM THE FUND FOR SUCH LOANS SHALL NOT BE INCLUDED IN EITHER STATE OR SCHOOL DISTRICT FISCAL YEAR SPENDING FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND SECTION 2477102 (17), C.R.S., SINCE VOTER APPROVAL OF THIS SECTION PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION CONSTITUTES VOTER APPROVAL FOR BOTH THE STATE AND ALL SCHOOL DISTRICTS.
2243.7105. Grants. MONEYS IN THE FUND SHALL BE LOANED ONLY TO THOSE SCHOOL DISTRICTS THAT CAN REPAY THE LOAN. NO GRANT OF MONEYS FROM THE FUND SHALL BE MADE TO A SCHOOL DISTRICT FOR A CAPITAL CONSTRUCTION PROJECT UNLESS SPECIFICALLY AUTHORIZED BY THE GENERAL ASSEMBLY ACTING BY BILL.
SECTION 3. 2315107 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:
2315107. General powers of the authority. (1) In addition to any other powers granted to the authority by this article, the authority shall have the following powers:
(w) TO EVALUATE THE LOAN APPLICATIONS OF SCHOOL DISTRICTS MADE PURSUANT TO SECTION 2243.7103, C.R.S., IN THE SCHOOL CAPITAL CONSTRUCTION ASSISTANCE PROGRAM ACT.
SECTION 4. 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 in 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 MAKING FUNDS AVAILABLE TO PROVIDE FINANCIAL ASSISTANCE TO SCHOOL DISTRICTS FOR ELIGIBLE CAPITAL CONSTRUCTION PROJECTS, SHALL THE STATE OF COLORADO BE PERMITTED TO ANNUALLY RETAIN THE LESSER OF ONE HUNDRED MILLION DOLLARS OF OR AN AMOUNT EQUAL TO ONETHIRD OF THE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMIT ON STATE SPENDING FOR THE 199798 FISCAL YEAR AND FOR EACH FISCAL YEAR THEREAFTER, NOTWITHSTANDING ANY RESTRICTION ON FISCAL YEAR SPENDING, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND, IN CONNECTION THEREWITH, TO SPECIFY THAT SUCH TRANSFERS ARE NOT SUBJECT TO ANY STATE CONSTITUTIONAL OR STATUTORY RESTRICTION OR LIMITATION ON FISCAL YEAR SPENDING OR APPROPRIATIONS?" 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.