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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0650.01D MKH SENATE BILL 98­127

STATE OF COLORADO

BY SENATOR Rizzuto

EDUCATION

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING SCHOOL CAPITAL FACILITY ASSISTANCE, AND MAKING APPROPRIATIONS THEREFOR.

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 K­12 capital equalization fund and the charter school capital facilities revolving fund to be administered by the state board of education.

Allows a qualifying school district to apply to the state board for grant moneys from the K­12 capital equalization fund to fund capital projects. Defines a "qualifying school district" as a school district with a per pupil assessed valuation below the statewide average per pupil assessed valuation. Sets limits on the amount of funding a school district may receive from the fund based on the disparity between the school district's per pupil assessed valuation and the statewide average per pupil assessed valuation. Establishes exceptions to said limit. Establishes certain criteria for grant applications. Stipulates that a qualifying school district must contribute towards the cost of the proposed capital project in order to receive grant moneys from the fund unless the school district has no bonding capacity. Specifies that transfers to the fund shall not be appropriations that are subject to state or school district spending limits.

Requires the state board of education to establish statewide standards for school buildings and equipment by July 1, 1999. After said standards are adopted, requires the board to give funding priority to school districts that are not in compliance with the standards and have the greatest disparity between the district's per pupil assessed valuation and the statewide average per pupil assessed valuation. Sets forth criteria for the state board to use in evaluating grant applications until such time as statewide standards are adopted.

Allows a charter school, with the consent of the local board of education, to apply for a loan from the charter school capital facilities revolving fund and use such loan moneys to purchase school buildings and grounds. Restricts the state board from using revolving fund moneys for any purpose other than enabling a charter school to purchase school buildings and grounds for use by the charter school in carrying out the educational program described in its charter. Requires that loans from the revolving fund be repaid with moneys that a charter school receives from the school district as part of its charter school contract. Directs the state board of education to promulgate rules for the administration of the revolving fund. Provides that if a charter school that purchases school buildings and grounds with moneys from the revolving fund does not renew its charter or has its charter revoked, the school district shall have the first right of refusal to purchase the buildings and grounds. Specifies that a school district shall not be required to obtain voter approval in order for a charter school to borrow moneys from the fund, as voter approval of the act constitutes voter approval of school district multiple­fiscal year obligations.

Transfers a specified amount from the general fund to the capital construction fund as of July 1, 1999.

Makes appropriations.

Refers the act to the electors of Colorado at the 1998 general election.

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

SECTION 1.  Title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read:

Article 43.7

K­12 Capital Equalization Fund

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

(1)  "CAPITAL PROJECT" MEANS A PROJECT UNDERTAKEN FOR ONE OR MORE OF THE FOLLOWING PURPOSES:

(a)  ACQUIRING OR PURCHASING SCHOOL BUILDINGS OR GROUNDS;

(b)  ENLARGING, IMPROVING, REMODELING, REPAIRING, OR MAKING ADDITIONS TO SCHOOL BUILDINGS;

(c)  CONSTRUCTING OR ERECTING SCHOOL BUILDINGS;

(d)  EQUIPPING OR FURNISHING SCHOOL BUILDINGS, BUT ONLY IN CONJUNCTION WITH A CONSTRUCTION PROJECT FOR A NEW SCHOOL BUILDING, AN ADDITION TO AN EXISTING SCHOOL BUILDING, OR SUBSTANTIAL REMODELING, IMPROVEMENT, OR REPAIR OF AN EXISTING SCHOOL BUILDING; OR

(e)  IMPROVING SCHOOL GROUNDS.

(2)  "FUND" MEANS THE K­12 CAPITAL EQUALIZATION FUND, CREATED IN SECTION 22­43.7­102.

(3)  "QUALIFYING SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT WITH A PER PUPIL ASSESSED VALUATION BELOW THE STATEWIDE AVERAGE PER PUPIL ASSESSED VALUATION AS DETERMINED FOR THE LATEST PROPERTY TAX YEAR.

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

22­43.7­102.  K­12 capital equalization fund and grant program. (1)  THE K­12 CAPITAL EQUALIZATION FUND IS HEREBY ESTABLISHED IN THE STATE TREASURY AND SHALL CONSIST OF:

(a)  MONEYS TRANSFERRED BY THE GENERAL ASSEMBLY; AND

(b)  GIFTS AND DONATIONS.

(2)  MONEYS SHALL BE ANNUALLY APPROPRIATED FROM THE FUND TO THE DEPARTMENT OF EDUCATION FOR ALLOCATION TO THE STATE BOARD FOR THE GRANT PROGRAM CREATED IN THIS ARTICLE.

(3)  ANY QUALIFYING SCHOOL DISTRICT MAY APPLY FOR GRANT MONEYS FROM THE FUND AND, UPON APPROVAL OF THE STATE BOARD, MAY USE SUCH GRANT MONEYS TO FUND CAPITAL PROJECTS.

(4)  MONEYS IN THE FUND SHALL ONLY BE USED TO PROVIDE GRANTS TO QUALIFYING SCHOOL DISTRICTS TO FUND CAPITAL PROJECTS.

(5)  ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE 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 AT THE END OF ANY FISCAL YEAR.

22­43.7­103.  Grant limits. (1)  EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (2) OF THIS SECTION, THE MAXIMUM AMOUNT OF A GRANT THAT A QUALIFYING SCHOOL DISTRICT MAY RECEIVE PER APPLICATION PURSUANT TO THIS ARTICLE SHALL BE DETERMINED AS FOLLOWS:

(a)   BY CALCULATING THE PERCENTAGE DIFFERENCE BETWEEN THE SCHOOL DISTRICT'S PER PUPIL ASSESSED VALUATION AND THE STATEWIDE AVERAGE PER PUPIL ASSESSED VALUATION AS DETERMINED FOR THE LATEST PROPERTY TAX YEAR;

(b)  BY MULTIPLYING THE PERCENTAGE DETERMINED IN PARAGRAPH (a) OF THIS SECTION BY THE ESTIMATED COST OF THE CAPITAL PROJECT FOR WHICH THE GRANT APPLICATION IS MADE.

(2)  IN NO EVENT SHALL A QUALIFYING SCHOOL DISTRICT RECEIVE A GRANT FOR ANY CAPITAL PROJECT UNLESS THE QUALIFYING SCHOOL DISTRICT ISSUES BONDS FOR, OR OTHERWISE FUNDS, THAT PART OF THE COST OF THE CAPITAL PROJECT NOT FUNDED BY GRANT MONEYS FROM THE FUND; EXCEPT THAT A QUALIFYING SCHOOL DISTRICT THAT HAS NO AVAILABLE BONDING CAPACITY PURSUANT TO SECTION 22­42­104 AND NO OTHER REVENUE TO CONTRIBUTE TO THE CAPITAL PROJECT, OR A QUALIFYING SCHOOL DISTRICT THAT IS UNABLE TO UTILIZE ITS AVAILABLE BONDING CAPACITY BECAUSE BONDING IS NOT ECONOMICALLY FEASIBLE AND THAT HAS NO OTHER REVENUE TO CONTRIBUTE TO THE CAPITAL PROJECT, MAY RECEIVE A GRANT IN THE FULL AMOUNT OF THE COST OF THE CAPITAL PROJECT WITHOUT CONTRIBUTING TO THE COST OF THE CAPITAL PROJECT.

22­43.7­104.  Grant application requirements ­ state board ­ evaluation criteria ­ distribution of grant moneys. (1)  QUALIFYING SCHOOL DISTRICTS MAY SUBMIT APPLICATIONS FOR GRANTS FROM THE FUND TO THE STATE BOARD NO LATER THAN JULY 1 OF THE FISCAL YEAR FOR WHICH THE GRANT IS REQUESTED.

(2)  IN ORDER TO APPLY FOR A GRANT FROM THE FUND, A QUALIFYING SCHOOL DISTRICT SHALL SUBMIT TO THE STATE BOARD A PROPOSAL FOR THE IMPLEMENTATION OF ITS CAPITAL PROJECT. ALL APPLICATIONS SUBMITTED SHALL BE IN A FORM PRESCRIBED BY THE STATE BOARD AND SHALL INCLUDE:

(a)  THE SCHOOL DISTRICT'S PER PUPIL ASSESSED VALUATION FOR THE LATEST PROPERTY TAX YEAR;

(b)  EVIDENCE OF HOW THE SCHOOL DISTRICT WILL FUND ITS SHARE OF THE CAPITAL PROJECT, WHETHER THE SCHOOL DISTRICT IS PROHIBITED FROM ISSUING BONDS FOR THE CAPITAL PROJECT DUE TO THE LIMITATION SET FORTH IN SECTION 22­42­104, OR WHETHER THE SCHOOL DISTRICT HAS REMAINING BONDING CAPACITY PURSUANT TO SAID SECTION BUT IS UNABLE TO ISSUE BONDS AND THE REASON THEREFOR;

(c)  IF A SCHOOL DISTRICT IS PROHIBITED FROM OR UNABLE TO ISSUE BONDS FOR THE CAPITAL PROJECT, EVIDENCE THAT THE SCHOOL DISTRICT HAS NO OTHER REVENUE AVAILABLE TO CONTRIBUTE TO THE COST OF THE CAPITAL PROJECT;

(d)  AN ARCHITECTURAL PLAN OR PROPOSAL FOR THE CAPITAL PROJECT INCLUDING PROOF THAT THE CAPITAL PROJECT WILL COMPLY WITH ALL APPLICABLE BUILDING CODES;

(e)  THE COST OF THE CAPITAL PROJECT PER SQUARE FOOT IF THE CAPITAL PROJECT INVOLVES CONSTRUCTING A NEW SCHOOL BUILDING OR RENOVATING AN EXISTING SCHOOL BUILDING;

(f)  ANY OTHER INFORMATION THE STATE BOARD DEEMS RELEVANT.

(3) (a)  THE STATE BOARD SHALL PRESCRIBE STATEWIDE STANDARDS FOR SCHOOL BUILDINGS AND EQUIPMENT. THE STATE BOARD SHALL ADOPT THESE STANDARDS BY JULY 1, 1999. WHEN STANDARDS PRESCRIBED PURSUANT TO THIS SECTION HAVE BEEN ADOPTED, THE STATE BOARD SHALL GIVE FUNDING PRIORITY TO QUALIFYING SCHOOL DISTRICTS THAT HAVE THE GREATEST DISPARITY BETWEEN THE DISTRICT'S PER PUPIL ASSESSED VALUATION FOR THE LATEST PROPERTY TAX YEAR AND THE STATEWIDE AVERAGE PER PUPIL ASSESSED VALUATION AND THAT ARE NOT IN COMPLIANCE WITH THE STANDARDS SO ADOPTED. UNTIL THE STATE BOARD ADOPTS THE STANDARDS PRESCRIBED IN THIS PARAGRAPH (a), THE STATE BOARD SHALL AWARD GRANT MONEYS FOR CAPITAL PROJECTS TO QUALIFYING SCHOOL DISTRICTS TAKING INTO ACCOUNT THE FOLLOWING FACTORS IN DESCENDING ORDER OF PRIORITY:

(I)  THE DISPARITY BETWEEN THE SCHOOL DISTRICT'S PER PUPIL ASSESSED VALUATION AND THE STATEWIDE AVERAGE PER PUPIL ASSESSED VALUATION FOR THE LATEST PROPERTY TAX YEAR;

(II)  THE EXTENT TO WHICH THE CAPITAL PROJECT WOULD REDUCE OR CORRECT ANY HEALTH OR SAFETY RISKS ASSOCIATED WITH THE CONDITION OF THE SCHOOL DISTRICT'S EXISTING SCHOOL CAPITAL FACILITIES;

(III)  THE EXTENT TO WHICH THE CAPITAL PROJECT WOULD COMPLY WITH ALL APPLICABLE FEDERAL, STATE, AND LOCAL BUILDING CODES.

(b)  THE STANDARDS PRESCRIBED BY THE STATE BOARD PURSUANT TO THIS SUBSECTION (3) SHALL ADDRESS THE FOLLOWING AREAS:

(I)  COMPLIANCE WITH APPLICABLE FEDERAL LAW AND LOCAL BUILDING CODES, INCLUDING THE FEDERAL "AMERICANS WITH DISABILITIES ACT" AND CITY AND COUNTY BUILDING, PLUMBING, ELECTRICAL, FIRE PREVENTION, AND MECHANICAL CODES;

(II)  THE EQUIPMENT AND MATERIALS NECESSARY TO ENABLE STUDENTS TO IMPROVE THEIR KNOWLEDGE IN THE DISTRICT'S CORE CURRICULUM AREAS;

(III)  THE REQUIRED CONSTRUCTION OR RENOVATION, OR BOTH, OF SPECIAL FACILITIES, CLASSROOM SPACE, AND AUXILIARY SPACE FOR EDUCATIONAL ACTIVITIES AND EXTRACURRICULAR ACTIVITIES;

(IV)  THE ADDITIONAL FACILITIES AND EQUIPMENT THAT CREATE AN ENVIRONMENT CONDUCIVE TO LEARNING, INCLUDING BUT NOT LIMITED TO STANDARDS THAT ADDRESS THERMAL AND HEALTH FACTORS;

(V)  ANY OTHER FACILITY­RELATED STANDARDS THAT THE STATE BOARD DETERMINES ARE NECESSARY FOR THE PURPOSES OF THIS SECTION.

(4)  THE STATE BOARD SHALL PROMULGATE RULES AND STANDARDS RELATING TO THE ADMINISTRATION OF THIS ARTICLE PURSUANT TO THE "STATE ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, C.R.S.

(5)  AFTER EVALUATING GRANT APPLICATIONS PURSUANT TO THE PROVISIONS SET FORTH IN THIS SECTION, THE STATE BOARD SHALL DECIDE WHICH GRANT APPLICATIONS TO APPROVE AND THE AMOUNTS THEREOF BY DECEMBER 1 OF THE YEAR IN WHICH THE APPLICATION IS SUBMITTED. UNDER NO CIRCUMSTANCES SHALL THE STATE BOARD APPROVE GRANT DISTRIBUTIONS IN EXCESS OF THE AMOUNT APPROPRIATED TO THE FUND FOR THE FISCAL YEAR IN WHICH GRANT APPLICATIONS ARE MADE.

(6)  AFTER APPROVING GRANT APPLICATIONS PURSUANT TO THE PROVISIONS SET FORTH IN THIS ARTICLE, THE STATE BOARD SHALL DIRECT THE PAYMENT OF MONEYS APPROPRIATED TO THE DEPARTMENT OF EDUCATION FOR ALLOCATION TO THE STATE BOARD FOR SUCH GRANTS FROM THE FUND TO THE TREASURER OF THE 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 A DISTRICT'S ACCOUNT PURSUANT TO THIS SECTION SHALL BE USED ONLY 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.

(7)  MONEYS APPROPRIATED FROM THE FUND FOR SUCH GRANTS 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., AS VOTER APPROVAL OF THIS SECTION PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTES VOTER APPROVAL FOR BOTH THE STATE AND ALL SCHOOL DISTRICTS.

SECTION 2.  22­30.5­104 (7) is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

22­30.5­104.  Charter school ­ requirements ­ authority. (7) (d)  A CHARTER SCHOOL MAY, WITH THE CONSENT OF THE LOCAL BOARD OF EDUCATION, APPLY FOR A LOAN FROM THE CHARTER SCHOOL CAPITAL FACILITIES REVOLVING FUND PURSUANT TO SECTION 22­30.5­302 AND MAY SPEND SUCH LOAN MONEYS TO PURCHASE SCHOOL BUILDINGS OR GROUNDS IN ACCORDANCE WITH PART 3 OF THIS ARTICLE. SUCH LOAN SHALL BE REPAID WITH MONEYS THAT A CHARTER SCHOOL RECEIVES FROM THE SCHOOL DISTRICT AS PART OF ITS CHARTER SCHOOL CONTRACT. A SCHOOL DISTRICT SHALL NOT BE REQUIRED TO OBTAIN VOTER APPROVAL IN ORDER FOR A CHARTER SCHOOL TO BORROW MONEYS FROM THE FUND FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AS VOTER APPROVAL OF THIS SECTION PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION CONSTITUTES VOTER APPROVAL OF ALL SCHOOL DISTRICT MULTIPLE­FISCAL YEAR OBLIGATIONS.

SECTION 3.  Article 30.5 of title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:

PART 3

CHARTER SCHOOL CAPITAL FACILITIES FUND

22­30.5­301.  Definitions.  FOR PURPOSES OF THIS PART 3, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "CHARTER SCHOOL" MEANS A SCHOOL THAT PROVIDES AN EDUCATIONAL PROGRAM PURSUANT TO A CHARTER IN ACCORDANCE WITH PART 1 OF THIS ARTICLE.

(2)  "LOCAL BOARD OF EDUCATION" MEANS THE BOARD OF EDUCATION OF A SCHOOL DISTRICT.

(3)  "REVOLVING FUND"MEANS THE CHARTER SCHOOL CAPITAL FACILITIES REVOLVING FUND, CREATED IN SECTION 22­30.5­302.

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

22­30.5­302.  Charter school capital facilities revolving fund. (1)  THERE IS HEREBY ESTABLISHED IN THE STATE TREASURY THE CHARTER SCHOOL CAPITAL FACILITIES REVOLVING FUND, WHICH SHALL BE MAINTAINED AND ADMINISTERED BY THE STATE BOARD. THE REVOLVING FUND SHALL CONSIST OF FEDERAL, STATE, OR PRIVATE GRANTS RECEIVED BY THE STATE BOARD FOR PURPOSES OF FUNDING SCHOOL CAPITAL FACILITIES FOR CHARTER SCHOOLS AND ALL MONEYS THAT MAY BE TRANSFERRED OR APPROPRIATED THERETO BY THE GENERAL ASSEMBLY. ALL INTEREST OR OTHER RETURN ON THE INVESTMENT OF MONEYS IN THE REVOLVING FUND AND ALL PAYMENTS OF PRINCIPAL AND INTEREST CREDITED TO THE REVOLVING FUND AS REPAYMENT OF LOANS MADE FROM THE REVOLVING FUND PURSUANT TO THIS SECTION SHALL BE CREDITED TO THE REVOLVING FUND. THE STATE TREASURER SHALL BE AUTHORIZED TO INVEST MONEYS IN THE REVOLVING FUND IN SUCH MANNER AS ALLOWED BY LAW SO LONG AS SUCH MONEYS ARE NOT NEEDED FOR THE PURPOSE OF THE REVOLVING FUND. MONEYS IN THE REVOLVING FUND SHALL BE ANNUALLY APPROPRIATED TO THE STATE BOARD OF EDUCATION FOR ALLOCATION TO THE STATE BOARD FOR THE PURPOSES SET FORTH IN THIS SECTION. ANY MONEYS CREDITED TO THE REVOLVING FUND SHALL REMAIN IN THE REVOLVING FUND AND SHALL NOT REVERT TO THE GENERAL FUND AT THE END OF ANY GIVEN FISCAL YEAR.

(2)  THE STATE BOARD SHALL MAKE LOANS TO CHARTER SCHOOLS FROM MONEYS IN THE FUND IN ACCORDANCE WITH THIS PART 3 AND SHALL ADOPT RULES IN ACCORDANCE WITH THE "STATE ADMINISTRATIVE PROCEDURE ACT", ARTICLE 4 OF TITLE 24, C.R.S., REGARDING:

(a)  THE ELIGIBILITY REQUIREMENTS FOR LOAN ASSISTANCE FROM THE REVOLVING FUND;

(b)  THE DISBURSEMENT OF REVOLVING FUND MONEYS;

(c)  THE INTEREST RATES TO BE CHARGED ON LOANS MADE FROM THE REVOLVING FUND; AND

(d)  THE REPAYMENT OF LOANS MADE FROM THE REVOLVING FUND.

(3)  A CHARTER SCHOOL MAY ONLY APPLY FOR A LOAN FROM THE REVOLVING FUND IF THE LOCAL BOARD OF EDUCATION CONSENTS TO SUCH APPLICATION AND USE OF FUND MONEYS FOR THE PURPOSES SET FORTH IN THIS PART 3. A LOAN FROM THE REVOLVING FUND AND ANY INTEREST THEREON SHALL BE REPAID WITH MONEYS A CHARTER SCHOOL RECEIVES FROM THE SCHOOL DISTRICT AS PART OF ITS CHARTER SCHOOL CONTRACT.

(4)  MONEYS IN THE REVOLVING FUND SHALL ONLY BE USED TO ENABLE A CHARTER SCHOOL TO PURCHASE SCHOOL BUILDINGS AND GROUNDS FOR USE BY THE CHARTER SCHOOL IN CARRYING OUT THE EDUCATIONAL PROGRAM DESCRIBED IN ITS CHARTER.

(5)  IN ADDITION TO REQUIRING THAT INTEREST BE PAID ON LOANS MADE FROM THE REVOLVING FUND, THE STATE BOARD MAY CHARGE TO AND COLLECT FROM A CHARTER SCHOOL RECEIVING A LOAN FROM THE REVOLVING FUND FEES AND CHARGES SUFFICIENT TO REIMBURSE THE STATE BOARD FOR REASONABLE EXPENSES INCURRED IN PROCESSING AND REVIEWING APPLICATIONS AND IN MAKING LOANS PURSUANT TO THIS PART 3.

(6)  IF A CHARTER SCHOOL THAT PURCHASES SCHOOL BUILDINGS AND GROUNDS WITH MONEYS LOANED FROM THE REVOLVING FUND PURSUANT TO THIS PART 3 DOES NOT RENEW ITS CHARTER OR HAS ITS CHARTER REVOKED, THE SCHOOL DISTRICT SHALL HAVE THE FIRST RIGHT OF REFUSAL TO PURCHASE SAID BUILDINGS AND GROUNDS.

SECTION 4.  24­75­302 (2) (l), Colorado Revised Statutes, is amended to read:

24­75­302.  Capital construction fund ­ capital assessment fees ­ calculation. (2)  As of July 1, 1988, and July 1 of each year thereafter through July 1, 2001, a sum as specified in this subsection (2) shall accrue to the capital construction fund. The state treasurer and the controller shall transfer such sum out of the general fund and into the capital construction fund as moneys become available in the general fund during the fiscal year beginning on said July 1. Transfers between funds pursuant to this subsection (2) shall not be deemed to be appropriations subject to the limitations of section 24­75­201.1. The amount which shall accrue pursuant to this subsection (2) shall be as follows:

(l)  On July 1, 1999, three hundred twenty­three thousand nine hundred ninety­eight dollars pursuant to H.B. 97­1186, enacted at the first regular session of the sixty­first general assembly, PLUS $___PURSUANT TO S.B. 98­___, ENACTED AT THE SECOND REGULAR SESSION OF THE SIXTY­FIRST GENERAL ASSEMBLY;

SECTION 5.  Appropriation. (1)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the capital construction fund created in section 24­75­302, Colorado Revised Statutes, not otherwise appropriated, to the K­12 capital equalization fund created in article 43.7 of title 22, Colorado Revised Statutes, for the fiscal year beginning July 1, 1999, the sum of ___ dollars ($ ), or so much thereof as may be necessary, for the implementation of this act.

(2)  In addition to any other appropriation, there is hereby appropriated, out of any moneys in the capital construction fund created in section 24­75­302, Colorado Revised Statutes, not otherwise appropriated, to the charter school capital facilities revolving fund created in section 22­30.5­302, Colorado Revised Statutes, for the fiscal year beginning July 1, 1999, the sum of ___ dollars ($ ), or so much thereof as may be necessary, for the implementation of this act.

SECTION 6.  Refer to people under referendum.  This act shall be submitted to a vote of the qualified 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, and in accordance with the provisions of section 20 of article X of the state constitution. 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 PURPOSES OF MAKING FUNDS AVAILABLE TO QUALIFYING SCHOOL DISTRICTS AND CHARTER SCHOOLS FOR SCHOOL CAPITAL FACILITIES, SHALL THE GENERAL ASSEMBLY BE AUTHORIZED TO TRANSFER ANNUALLY MONEYS FROM THE STATE GENERAL FUND TO THE CAPITAL CONSTRUCTION FUND, WITH SUCH TRANSFERS NOT BEING SUBJECT TO THE STATUTORY LIMITATION ON STATE GENERAL FUND APPROPRIATIONS, AND BEING EXEMPT FROM STATE AND SCHOOL DISTRICT FISCAL YEAR SPENDING FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND SHALL CHARTER SCHOOLS BE ALLOWED TO INCUR MULTIPLE­FISCAL YEAR OBLIGATIONS BY BORROWING MONEYS FOR PURCHASING SCHOOL FACILITIES, AND, IN CONNECTION THEREWITH, CREATING THE K­12 EQUALIZATION FUND AND CHARTER SCHOOL CAPITAL FACILITIES REVOLVING FUND TO BE ADMINISTERED BY THE STATE BOARD OF EDUCATION?" 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.