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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0520.01D SLE SENATE BILL 98­168

STATE OF COLORADO

BY SENATOR Norton;

also REPRESENTATIVE Anderson.

EDUCATION

A BILL FOR AN ACT

CONCERNING FINANCIAL ASSISTANCE FOR PUBLIC SCHOOL EMERGENCY 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 emergency capital construction fund in the state treasury. Requires the state treasurer to annually transfer the appropriate amount of excess revenues to the fund for a specified number of fiscal years. States that such transfers are not appropriations subject to the statutory general fund appropriations limit. Specifies that moneys appropriated from the fund shall not be included in either state or school district constitutional spending limits.

Specifies that moneys in the fund shall be used to make grants to school districts for emergency capital construction projects. Requires that moneys in the fund be appropriated to the department of education for grants awarded to school districts.

Allows school districts to submit applications to the department of education for a grant from the fund for an emergency capital construction project. Authorizes the department to evaluate grant applications and to make recommendations regarding such applications. Provides that, if the state board approves the grant application, the state board shall determine the amount of the grant to be made to the school district for the emergency capital construction project. Requires the state board to notify the general assembly and the joint budget committee of the approval of any grant applications and provides for the payment of moneys appropriated to the department for such grants to that school district.

Creates the school district emergency capital construction account within the capital construction fund. Authorizes the general assembly to transfer by bill moneys to the account. Excludes transfers to the account from the statutory general fund appropriations limit. Specifies that moneys transferred to or appropriated from the account for school district emergency capital construction projects shall not be included in either state or school district constitutional spending limits.

Requires the state controller, based upon the financial statement prepared to ensure compliance with section 20 of article X of the state constitution, to certify the amount of state revenues in excess of the constitutional limitation on state fiscal year spending for a given fiscal year by a specified date. Requires the state auditor to conduct an audit of the certified amount of excess state revenues by a specified date.

Refers the act to the voters 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

Financial Assistance for Public School

Emergency Capital Construction Projects

22­43.7­101.  Short title.  THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE "PUBLIC SCHOOL EMERGENCY CAPITAL CONSTRUCTION FINANCIAL ASSISTANCE ACT".

22­43.7­102.  Definitions.  AS USED IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "BOARD" MEANS THE STATE BOARD OF EDUCATION.

(2)  "CAPITAL CONSTRUCTION PROJECT" MEANS:

(a)  RECONSTRUCTION, REPAIR, REMODELING, OR RENOVATION OF EXISTING BUILDINGS OR OTHER PHYSICAL FACILITIES TO MAKE PHYSICAL CHANGES TO MEET STANDARDS REQUIRED BY APPLICABLE BUILDING CODES OR TO CORRECT OTHER CONDITIONS THAT ARE HAZARDOUS TO THE HEALTH AND SAFETY OF PERSONS BUT THAT ARE NOT COVERED BY BUILDING CODES;

(b)  PURCHASE OF THE SERVICES OF ARCHITECTS, ENGINEERS, AND OTHER CONSULTANTS TO PREPARE PLANS, PROGRAM DOCUMENTS, AND OTHER STUDIES ASSOCIATED WITH A PROJECT THAT MEETS THE CRITERIA ESTABLISHED IN PARAGRAPH (a) OF THIS SUBSECTION (1) AND TO SUPERVISE THE CONSTRUCTION OR EXECUTION OF SUCH PROJECT.

(3)  "DEPARTMENT" MEANS THE DEPARTMENT OF EDUCATION.

(4)  "EMERGENCY CAPITAL CONSTRUCTION PROJECT" MEANS A CAPITAL CONSTRUCTION PROJECT THAT ADDRESSES IMMEDIATE SAFETY HAZARDS OR HEALTH CONCERNS AT AN EXISTING SCHOOL BUILDING OR PHYSICAL FACILITY.

(5)  "FUND" MEANS THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND CREATED IN SECTION 22­43.7­103.

(6)  "SCHOOL DISTRICT" SHALL HAVE THE SAME MEANING AS SET FORTH IN SECTION 22­30­103 (13).

22­43.7­103.  School emergency capital construction fund ­ created. (1)  THERE IS HEREBY ESTABLISHED IN THE STATE TREASURY THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND, WHICH SHALL CONSIST OF GENERAL FUND REVENUES TRANSFERRED THERETO PURSUANT TO SUBSECTION (2) OF THIS SECTION AND ANY OTHER REVENUES THAT THE GENERAL ASSEMBLY MAY MAKE AVAILABLE. ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. ANY MONEYS REMAINING IN THE FUND AT THE END OF ANY FISCAL YEAR SHALL NOT REVERT OR BE TRANSFERRED TO THE GENERAL FUND OF THE STATE.

(2) (a)  NO LATER THAN FEBRUARY 1, 1999, THE STATE TREASURER SHALL TRANSFER AN AMOUNT OF REVENUES FROM THE GENERAL FUND TO THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND EQUAL TO THE LESSER OF:

(I)  FIFTY MILLION DOLLARS; OR

(II)  THE AMOUNT OF STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING THAT ARE IN EXCESS OF THE FISCAL YEAR SPENDING LIMITATION IMPOSED UPON THE STATE BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION FOR THE 1997­98 STATE FISCAL YEAR.

(b) (I)  UPON CERTIFICATION THAT STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING EXCEED THE LIMITATION ON FISCAL YEAR SPENDING IMPOSED UPON THE STATE BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION FOR ANY FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1998, BUT PRIOR TO JULY 1, 2002, THE STATE TREASURER SHALL TRANSFER AN AMOUNT OF REVENUES FROM THE GENERAL FUND TO THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND EQUAL TO THE LESSER OF:

(A)  FIFTY MILLION DOLLARS; OR

(B)  THE AMOUNT OF STATE REVENUES FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING THAT ARE IN EXCESS OF THE FISCAL YEAR SPENDING LIMITATION IMPOSED UPON THE STATE BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION FOR SUCH STATE FISCAL YEAR AS CERTIFIED AND AUDITED PURSUANT TO SECTION 24­77­106.5, C.R.S.

(II)  THE STATE TREASURER SHALL TRANSFER SAID AMOUNT OF REVENUES TO THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND NO LATER THAN NOVEMBER 1 OF THE CALENDAR YEAR IN WHICH THE STATE FISCAL YEAR FOR WHICH SUCH EXCESS STATE REVENUES ARE CERTIFIED ENDED.

(c)  ANY TRANSFER OF REVENUES FROM THE GENERAL FUND TO THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND PURSUANT TO THE PROVISIONS OF THIS SUBSECTION (2) SHALL NOT BE DEEMED TO BE AN APPROPRIATION SUBJECT TO THE LIMITATION OF SECTION 24­75­201.1, C.R.S.

(3)  MONEYS TRANSFERRED TO OR APPROPRIATED FROM THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND PURSUANT TO THIS ARTICLE SHALL CONSTITUTE A VOTER­APPROVED REVENUE CHANGE AND SHALL NOT BE INCLUDED IN EITHER STATE OR LOCAL GOVERNMENT 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.

22­43.7­104.  Applications ­ grants for emergency projects ­ notification. (1)  APPLICATIONS FROM SCHOOL DISTRICTS FOR GRANTS OF MONEY FROM THE FUND FOR EMERGENCY CAPITAL CONSTRUCTION PROJECTS SHALL BE SUBMITTED TO THE DEPARTMENT NO LATER THAN JULY 1, 1999, FOR ANY GRANT TO BE MADE FROM MONEYS APPROPRIATED FOR THE 2000­01 FISCAL YEAR AND NO LATER THAN JULY 1 OF EACH YEAR THEREAFTER FOR ANY GRANT TO BE MADE FROM MONEYS APPROPRIATED FOR THE NEXT FOLLOWING FISCAL YEAR.

(2)  THE DEPARTMENT IS AUTHORIZED TO EVALUATE GRANT APPLICATIONS SUBMITTED BY SCHOOL DISTRICTS PURSUANT TO SUBSECTION (1) OF THIS SECTION. IN ORDER TO BE ELIGIBLE FOR A GRANT OF MONEYS FROM THE FUND, A SCHOOL DISTRICT MUST SPECIFY THE FOLLOWING IN SUCH APPLICATION:

(a)  A DESCRIPTION OF THE SCOPE AND NATURE OF THE EMERGENCY CAPITAL CONSTRUCTION PROJECT FOR WHICH THE GRANT IS REQUESTED;

(b)  THE AMOUNT OF THE GRANT REQUESTED;

(c)  THE FORM AND AMOUNT OF FINANCIAL EFFORT THAT WILL BE PROVIDED BY THE SCHOOL DISTRICT, IF ANY, FOR THE EMERGENCY CAPITAL CONSTRUCTION PROJECT;

(d)  WHETHER AN ELECTION IS REQUIRED BEFORE THE SCHOOL DISTRICT CAN PROVIDE SUCH FINANCIAL EFFORT FOR THE EMERGENCY CAPITAL CONSTRUCTION PROJECT AND, IF SO, THE ANTICIPATED DATE OF THE ELECTION;

(e)  INFORMATION DOCUMENTING THE SCHOOL DISTRICT'S NEED FOR THE EMERGENCY CAPITAL CONSTRUCTION PROJECT AND FOR THE AMOUNT OF GRANT REQUESTED;

(f)  SUCH OTHER INFORMATION THE DEPARTMENT MAY REQUIRE FOR THE EVALUATION OF THE EMERGENCY CAPITAL CONSTRUCTION PROJECT AND THE GRANT APPLICATION OF THE SCHOOL DISTRICT.

(3)  THE DEPARTMENT SHALL CONDUCT AN INVESTIGATION AS IT DEEMS NECESSARY AND PROPER AND SHALL MAKE A RECOMMENDATION TO THE BOARD ON ANY GRANT APPLICATION OF A SCHOOL DISTRICT FOR AN EMERGENCY CAPITAL CONSTRUCTION PROJECT. IF THE BOARD APPROVES A GRANT APPLICATION, THE BOARD SHALL DETERMINE THE AMOUNT OF THE GRANT TO BE PROVIDED TO THE SCHOOL DISTRICT FOR THE EMERGENCY CAPITAL CONSTRUCTION PROJECT.

(4)  FOR GRANT APPLICATIONS FOR GRANTS TO BE MADE FROM MONEYS APPROPRIATED IN THE 2000­01 FISCAL YEAR, AND TO MADE FROM MONEYS APPROPRIATED IN EACH SUCCEEDING FISCAL YEAR, THE DEPARTMENT SHALL COMPLETE ITS INVESTIGATION, AND THE BOARD SHALL COMPLETE ACTION ON ALL GRANT APPLICATIONS NO LATER THAN NOVEMBER 1, 1999, AND NO LATER THAN NOVEMBER 1 OF EACH YEAR THEREAFTER. THE BOARD SHALL NOTIFY THE GENERAL ASSEMBLY AND THE JOINT BUDGET COMMITTEE OF THE AMOUNT OF GRANTS AWARDED FOR THE 2000­01 FISCAL YEAR AND FOR THE EACH SUCCEEDING FISCAL YEAR THEREAFTER. THE AGGREGATE AMOUNT OF GRANTS AWARDED BY THE BOARD IN ANY FISCAL YEAR SHALL NOT EXCEED THE AMOUNT OF MONEYS ESTIMATED TO BE IN THE FUND FOR THE FISCAL YEAR IN WHICH SUCH GRANTS ARE TO BE PAID. THE GENERAL ASSEMBLY SHALL APPROPRIATE BY BILL FOR THE 2000­01 FISCAL YEAR AND FOR EACH FISCAL YEAR THEREAFTER AN AMOUNT OF MONEYS FROM THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND EQUAL TO THE AMOUNT OF GRANTS AWARDED BY THE BOARD FOR SAID FISCAL YEAR.

(5)  NO GRANT OF MONEYS FROM THE FUND SHALL BE MADE TO A SCHOOL DISTRICT FOR AN EMERGENCY CAPITAL CONSTRUCTION PROJECT UNLESS SPECIFICALLY AUTHORIZED BY THE GENERAL ASSEMBLY ACTING BY BILL. UPON MONEYS BEING APPROPRIATED FROM THE FUND FOR A GRANT, THE DEPARTMENT SHALL DISTRIBUTE THE GRANT TO THE SCHOOL DISTRICT. GRANTS RECEIVED BY SCHOOL DISTRICTS PURSUANT TO THIS SECTION SHALL ONLY BE USED FOR THE EMERGENCY CAPITAL CONSTRUCTION PROJECT FOR WHICH THE GRANT WAS AWARDED BY THE BOARD AND SHALL NOT BE USED BY THE SCHOOL DISTRICT FOR ANY OTHER PURPOSE.

22­43.7­105.  Rules.  THE BOARD SHALL ADOPT RULES AS NECESSARY FOR THE ADMINISTRATION OF THIS ARTICLE IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S.

SECTION 2.  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 EMERGENCY CAPITAL CONSTRUCTION ACCOUNT. THE ACCOUNT SHALL CONSIST OF SUCH MONEYS AS ARE ALLOCATED THERETO BY THE GENERAL ASSEMBLY ACTING BY BILL. MONEYS IN THE ACCOUNT SHALL BE TRANSFERRED BY THE GENERAL ASSEMBLY, BY BILL, TO THE SCHOOL EMERGENCY CAPITAL CONSTRUCTION FUND CREATED IN 22­43.7­103, 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. MONEYS TRANSFERRED TO THE ACCOUNT ARE IN ADDITION TO ANY MONEYS TRANSFERRED TO THE CAPITAL CONSTRUCTION FUND PURSUANT TO SUBSECTION (2) OF THIS SECTION.

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

(c)  MONEYS TRANSFERRED TO THE ACCOUNT 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), 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.

SECTION 3.  24­77­106.5, Colorado Revised Statutes, is amended to read:

24­77­106.5.  Annual financial report ­ certification of state excess revenues. (1) (a)  For each fiscal year, the controller shall prepare a financial report for the state for purposes of ascertaining compliance with the provisions of this article. Any financial report prepared pursuant to this section shall include, but shall not be limited to, state fiscal year spending, reserves, revenues, and debt.

(b)  BASED UPON THE FINANCIAL STATEMENT PREPARED IN ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1) FOR ANY FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1998, THE CONTROLLER SHALL CERTIFY TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE NO LATER THAN SEPTEMBER 1 FOLLOWING THE END OF A FISCAL YEAR THE AMOUNT OF STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION, IF ANY, FOR SUCH FISCAL YEAR.

(2)  Such ANY financial report PREPARED AND CERTIFICATION OF STATE EXCESS REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS SECTION shall be audited by the state auditor. NO LATER THAN SEPTEMBER 15 FOLLOWING THE CERTIFICATION MADE BY THE STATE CONTROLLER FOR ANY GIVEN FISCAL YEAR, THE STATE AUDITOR SHALL REPORT AND TRANSMIT TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE THE RESULTS OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH THIS SUBSECTION (2).

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 and section 20 of article X 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 PROVIDING FINANCIAL GRANTS TO SCHOOL DISTRICTS FOR EMERGENCY CAPITAL CONSTRUCTION PROJECTS, SHALL THE STATE OF COLORADO BE PERMITTED TO ANNUALLY RETAIN UP TO FIFTY MILLION DOLLARS OF THE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE SPENDING FOR THE 1997­98 FISCAL YEAR AND FOR EACH OF THE FOUR SUCCEEDING FISCAL YEARS, NOTWITHSTANDING ANY RESTRICTION ON FISCAL YEAR SPENDING, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND, SHALL THE STATE BE AUTHORIZED TO TRANSFER MONEYS TO A SPECIAL ACCOUNT IN THE STATE CAPITAL CONSTRUCTION FUND TO BE USED FOR THIS PURPOSE WITH SUCH TRANSFERS NOT BEING SUBJECT ANY STATE CONSTITUTIONAL OR STATUTORY RESTRICTION OR LIMITATION ON FISCAL YEAR SPENDING OR APPROPRIATIONS, AND, IN CONNECTION THEREWITH, PROVIDING FOR A SCHOOL DISTRICT EMERGENCY CAPITAL CONSTRUCTION GRANT PROGRAM, SPECIFYING PROCEDURES FOR THE REVIEW AND APPROVAL OF GRANT APPLICATIONS, AND DIRECTING THE DEPARTMENT OF EDUCATION TO ALLOCATE MONEYS APPROPRIATED FOR A GRANT 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.