First Regular Session
Sixty-second General Assembly
LLS NO. 99-0292.01 Bob Lackner HOUSE BILL 99-1126
STATE OF COLORADO
BY REPRESENTATIVES Kaufman, Alexander, Coleman, George,
Gotlieb, Mace, Miller, Morrison, Plant, Tate;
also SENATORS Blickensderfer, Feeley, Chlouber, Dyer, Phillips,
Reeves, Wham.
REENGROSSED
FINANCE
A BILL FOR AN ACT
101 CONCERNING THE PROMOTION OF CULTURAL ACTIVITIES, AND, IN
102 CONNECTION THEREWITH, ESTABLISHING THE COLORADO
103 CULTURAL TRUST FUND TO SUPPORT CULTURAL FACILITIES AND
104 PROGRAMS AND ESTABLISHING A CREDIT AGAINST THE STATE
105 INCOME TAX FOR CONTRIBUTIONS TO THE COLORADO CULTURAL
106 TRUST FUND.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Establishes a Colorado cultural trust fund as a public endowment
to support cultural facilities and programs in this state.
Authorizes the state council on the arts to administer the trust
fund.
Requires the general assembly to annually appropriate moneys to
the trust fund in accordance with a specified calculation. Specifies that
once the principal balance of the trust fund reaches a certain amount,
such annual appropriations will cease.
For income tax years commencing on or after January 1, 2000, but
prior to January 1, 2006, creates a credit against the state income tax for
contributions to the trust fund.
Expands the powers of the state council on the arts.
Provides that the governor's appointees to the state council on the
arts are to be confirmed by the senate.
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 23-9-103 (1), Colorado Revised Statutes, is
3 amended to read:
4 23-9-103. Establishment of council - members - term of office
5 - chairman - compensation. (1) There is hereby established within the
6 department of higher education a state council on the arts, referred to in
7 this article as the "council". The council shall consist of eleven members,
8 including the chairman, to be appointed by the governor AND CONFIRMED
9 BY THE SENATE. The members of the council shall be broadly
10 representative of the major fields of the arts and humanities and shall be
11 appointed from among private citizens who are widely known for their
12 competence and experience in connection with the arts and humanities,
13 as well as their knowledge of community and state interests. In making
14 these appointments, the governor shall seek and consider those
15 recommended for membership by persons or organizations involved in
16 civic, educational, business, labor, professional, cultural, ethnic, and
17 performing and creative arts fields, as well as those with knowledge of
18 community and state interests. At least one such person from each area
19 designated shall be a member of the council, the membership to include
20 both men and women.
21 SECTION 2. 23-9-105 (1), Colorado Revised Statutes, is
22 amended BY THE ADDITION OF THE FOLLOWING NEW
23 PARAGRAPHS to read:
24 23-9-105. Powers of the council. (1) The council has the powers
25 necessary to carry out the duties imposed upon it by this article,
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1 including, but not limited to, the power:
2 (i) TO SUE AND BE SUED AS A COUNCIL WITHOUT INDIVIDUAL
3 LIABILITY FOR ACTS OF THE BOARD;
4 (j) TO DEVELOP PROCEDURES TO ELICIT AND VERIFY INFORMATION
5 CONCERNING MONETARY [ ]CONTRIBUTIONS MADE TO CULTURAL
6 FACILITIES AND PROGRAMS. FOR PURPOSES OF THIS PARAGRAPH (j),
7 "CULTURAL FACILITIES"AND "CULTURAL PROGRAMS" HAVE THE SAME
8 MEANINGS AS SET FORTH IN SUBSECTIONS (2) AND (3), RESPECTIVELY, OF
9 SECTION 23-9-203.
10 (k) TO EXERCISE ANY OTHER POWER OR PERFORM ANY OTHER
11 DUTIES WHICH ARE CONSISTENT WITH THE PURPOSES FOR WHICH THE
12 COUNCIL WAS CREATED AND WHICH ARE REASONABLY NECESSARY FOR
13 THE FULFILLMENT OF THE COUNCIL'S RESPONSIBILITIES.
14 SECTION 3. Article 9 of title 23, Colorado Revised Statutes, is
15 amended BY THE ADDITION OF A NEW PART to read:
16 PART 2
17 COLORADO CULTURAL TRUST FUND ACT
23-9-201. Short title. THIS ARTICLE SHALL BE KNOWN AND MAY
18 BE CITED AS THE "COLORADO CULTURAL TRUST FUND ACT".
19 23-9-202. Legislative declaration. (1) THE GENERAL ASSEMBLY
20 HEREBY FINDS AND DECLARES THAT:
21 (a) ENCOURAGEMENT AND SUPPORT OF CULTURAL FACILITIES AND
22 PROGRAMS PRODUCES NUMEROUS PUBLIC BENEFITS, INCLUDING
23 ENHANCING THE STATE'S QUALITY OF LIFE, STIMULATING ECONOMIC
24 GROWTH AND INVESTMENT BY BUSINESS AND INDUSTRY, INCREASING THE
25 NUMBER OF WELL-EDUCATED CITIZENS IN THIS STATE, AND PRESERVING
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1 AND ENHANCING THIS STATE'S CULTURAL HERITAGE; AND
2 (b) PRESENT LEVELS OF PUBLIC AND PRIVATE RESOURCES ARE
3 INCREASINGLY UNABLE TO ASSURE AND PROVIDE LONG-TERM FUNDING
4 FOR CULTURAL FACILITIES AND PROGRAMS IN THIS STATE.
5 (2) IT IS THE PURPOSE OF THIS PART 2 TO CREATE A COLORADO
6 CULTURAL TRUST FUND AS A PUBLIC ENDOWMENT TO ENSURE THAT AN
7 APPROPRIATE LEVEL OF STATE FUNDING FOR CULTURAL FACILITIES AND
8 PROGRAMS WILL BE MAINTAINED IN THE FUTURE. IN ADDITION, THE
9 COLORADO CULTURAL TRUST FUND WILL STABILIZE FUNDING FOR THE
10 STATE COUNCIL ON THE ARTS IN FURTHERANCE OF ITS MISSION AS SET
11 FORTH IN THIS ARTICLE. BY ESTABLISHING THE COLORADO CULTURAL
12 TRUST FUND, THE GENERAL ASSEMBLY INTENDS AND DESIRES THAT
13 EXISTING FINANCIAL SUPPORT FOR CULTURAL FACILITIES AND PROGRAMS
14 IN THIS STATE BE MAINTAINED AT LEAST AT THEIR PRESENT LEVELS, AND
15 THAT NEW SOURCES OF FINANCIAL SUPPORT FOR COLORADO CULTURAL
16 FACILITIES AND PROGRAMS BE ELICITED.
17 [(3) BY ESTABLISHING THE COLORADO CULTURAL TRUST FUND, THE
18 GENERAL ASSEMBLY FURTHER INTENDS AND DESIRES THAT ANNUAL
19 GENERAL FUND APPROPRIATIONS BY THE GENERAL ASSEMBLY TO THE
20 STATE COUNCIL ON THE ARTS SHALL CONTINUE UNTIL SUCH TIME AS THE
21 INTEREST ANNUALLY EARNED ON THE INVESTMENT OR DEPOSIT OF MONEYS
22 IN SUCH TRUST FUND IS SUFFICIENT TO FUND THE DUTIES OF THE STATE
23 COUNCIL ON THE ARTS.]
24 23-9-203. Definitions. AS USED IN THIS PART 2, UNLESS THE
25 CONTEXT OTHERWISE REQUIRES:
26 (1) "COUNCIL" MEANS THE STATE COUNCIL ON THE ARTS
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1 ESTABLISHED PURSUANT TO SECTION 23-9-103.
2 (2) "CULTURAL FACILITY" HAS THE SAME MEANING AS SET FORTH
3 IN SECTION 32-13-103 (4), C.R.S.; EXCEPT THAT SUCH CULTURAL FACILITY
4 MUST BE INCORPORATED IN COLORADO AND MUST PRIMARILY SERVE THE
5 CITIZENS OF COLORADO.
6 (3) "CULTURAL PROGRAM" MEANS A PROGRAM ESTABLISHED,
7 SPONSORED, OR ADMINISTERED BY ANY GOVERNMENT OR GOVERNMENTAL
8 AGENCY OR SUBDIVISION, OR NONPROFIT ORGANIZATION THAT HAS AS ITS
9 PRIMARY PURPOSE THE ADVANCEMENT OR PRESERVATION OF THE VISUAL,
10 PERFORMING, OR LITERARY ARTS AND THAT PRIMARILY SERVES THE
11 CITIZENS OF COLORADO.
12 (4) "TRUST FUND" MEANS THE COLORADO CULTURAL TRUST FUND
13 CREATED PURSUANT TO THIS PART 2.
14 23-9-204. Colorado cultural trust fund - creation - source of
15 funds. (1) THERE IS HEREBY CREATED IN THE STATE TREASURY THE
16 COLORADO CULTURAL TRUST FUND, WHICH SHALL BE ADMINISTERED BY
17 THE COUNCIL AND WHICH SHALL CONSIST OF ALL MONEYS CONTRIBUTED
18 TO THE TRUST FUND AND ANY MONEYS APPROPRIATED THERETO BY THE
19 STATE. SUCH MONEYS SHALL BE TRANSMITTED TO THE STATE TREASURER
20 TO BE CREDITED TO THE TRUST FUND.
21 (2) ALL MONEYS IN THE TRUST FUND SHALL BE SUBJECT TO
22 ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY FOR ALLOCATION TO
23 THE COUNCIL.
24 [ (3) DURING THE PREPARATION OF THE BUDGET FOR THE 2001-02
25 FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER, THE COUNCIL SHALL
26 PROVIDE TO THE GENERAL ASSEMBLY A REPORT SHOWING:]
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1 (a) ALL CONTRIBUTIONS, GRANTS, GIFTS, AND BEQUESTS MADE TO
2 THE TRUST FUND DURING THE PREVIOUS CALENDAR YEAR; AND
3 (b) ALL CONTRIBUTIONS, GRANTS, GIFTS, AND BEQUESTS MADE BY
4 INDIVIDUALS, PRIVATE ORGANIZATIONS, CORPORATIONS, AND
5 FOUNDATIONS TO CULTURAL PROGRAMS AND FACILITIES AS DEFINED BY
6 THIS PART 2 DURING THE PREVIOUS CALENDAR YEAR, AS INDICATED BY
7 SUCH CULTURAL PROGRAMS AND FACILITIES ON OFFICIAL FORMS PREPARED
8 BY THE COUNCIL TO VERIFY THE AGGREGATE AMOUNT OF SUCH
9 CONTRIBUTIONS, GRANTS, GIFTS, AND BEQUESTS.
10 [(4) FOR THE 2001-02 FISCAL YEAR AND FOR EACH FISCAL YEAR
11 THEREAFTER, THE COUNCIL SHALL REQUEST THAT THE GENERAL ASSEMBLY
12 MAKE AN APPROPRIATION TO THE TRUST FUND, NOT TO EXCEED TEN
13 MILLION DOLLARS ANNUALLY, EQUAL TO THE AMOUNT OF THE AGGREGATE
14 TOTAL OF PARAGRAPHS (a) AND (b) OF SUBSECTION (3) OF THIS SECTION.
15 (5) AFTER SUCH TIME THAT THE STATE TREASURER CERTIFIES THAT
16 THE TOTAL AMOUNT OF ASSETS IN THE TRUST FUND EQUALS ONE HUNDRED
17 THIRTY-SIX MILLION DOLLARS, NO ADDITIONAL MONEYS SHALL BE
18 APPROPRIATED TO THE TRUST FUND BY THE GENERAL ASSEMBLY.
19 NOTHING IN THIS SUBSECTION (5) SHALL BE CONSTRUED TO PROHIBIT AT
20 ANY TIME THE COLLECTION OF MONEYS FOR THE TRUST FUND BY THE
21 COUNCIL PURSUANT TO SECTION 23-9-105 (1) (f).]
22 [(6)] ANY MONEYS IN THE TRUST FUND NOT APPROPRIATED SHALL
23 REMAIN IN THE TRUST FUND AND SHALL NOT BE TRANSFERRED TO OR
24 REVERT TO THE GENERAL FUND OF THE STATE AT THE END OF ANY FISCAL
25 YEAR. ANY INTEREST EARNED ON THE INVESTMENT OR DEPOSIT OF MONEYS
26 IN THE TRUST FUND SHALL REMAIN IN THE TRUST FUND AND SHALL NOT BE
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1 CREDITED TO THE GENERAL FUND OF THE STATE.
2 23-9-205. Disbursement from the trust fund. [UNTIL SUCH TIME
3 AS THE STATE TREASURER CERTIFIES THAT THE TOTAL AMOUNT OF ASSETS
4 IN THE TRUST FUND EQUALS ONE HUNDRED THIRTY-SIX MILLION DOLLARS,
5 NO MORE THAN FIFTY PERCENT OF] THE INTEREST CREDITED TO THE TRUST
6 FUND DURING THE PREVIOUS FISCAL YEAR SHALL BE AVAILABLE FOR
7 DISBURSEMENT OR EXPENDITURE BY THE COUNCIL.
8 [ ]
9 SECTION 4. Part 5 of article 22 of title 39, Colorado Revised
10 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
11 read:
12 39-22-522. Credit for Colorado cultural contributions -
13 definitions. (1) FOR INCOME TAX YEARS COMMENCING ON OR AFTER
14 [JANUARY 1, 2000, BUT PRIOR TO JANUARY 1, 2006, IF, BASED UPON THE
15 FINANCIAL REPORT PREPARED IN ACCORDANCE WITH SECTION 24-77-106.5,
16 C.R.S., THE CONTROLLER CERTIFIES THAT THE AMOUNT OF STATE
17 REVENUES FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR EXCEED
18 THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20
19 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION AND THE VOTERS
20 STATEWIDE DID NOT AUTHORIZE THE STATE TO RETAIN AND SPEND ALL OF
21 THE EXCESS STATE REVENUES FOR THAT STATE FISCAL YEAR, THEN
22 SUBJECT TO THE PROVISIONS OF THIS SECTION, ANY TAXPAYER WHO MAKES
23 A MONETARY] CONTRIBUTION TO THE COLORADO CULTURAL TRUST FUND
24 CREATED IN SECTION 23-9-204, C.R.S., SHALL BE ALLOWED A CREDIT
25 AGAINST THE INCOME TAX IMPOSED BY ARTICLE 22 OF THIS TITLE IN AN
26 AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF THE TOTAL VALUE OF THE
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1 CONTRIBUTION.
2 (2) THE CREDIT ALLOWED BY THIS SECTION SHALL NOT EXCEED
3 ONE HUNDRED THOUSAND DOLLARS [FOR EACH TAXPAYER] PER CALENDAR
4 YEAR.
5 (3) IF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO THE
6 PROVISIONS OF THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES
7 OTHERWISE DUE ON THE TAXPAYER'S INCOME IN THE INCOME TAX YEAR
8 FOR WHICH THE CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT
9 NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX
10 YEAR MAY BE CARRIED FORWARD AND USED AS A CREDIT AGAINST
11 SUBSEQUENT YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED
12 FIVE YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX
13 YEARS POSSIBLE. ANY CREDIT REMAINING AFTER SAID PERIOD SHALL NOT
14 BE REFUNDED OR CREDITED TO THE TAXPAYER.
15 [ (4) ANY CREDIT ALLOWED PURSUANT TO THE PROVISIONS OF THIS
16 SECTION SHALL BE PUBLISHED IN RULES PROMULGATED BY THE EXECUTIVE
17 DIRECTOR OF THE DEPARTMENT OF REVENUE IN ACCORDANCE WITH
18 ARTICLE 4 OF TITLE 24, C.R.S., AND SHALL BE INCLUDED IN INCOME TAX
19 FORMS FOR THAT TAXABLE YEAR.
20 (5) IF ONE OR MORE BALLOT QUESTIONS THAT SEEK
21 AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY
22 PORTION OF THE AMOUNT OF EXCESS STATE REVENUES FOR THE
23 IMMEDIATELY PRECEDING FISCAL YEAR ARE SUBMITTED TO THE VOTERS AT
24 A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY CALENDAR
25 YEAR COMMENCING ON OR AFTER JANUARY 1, 2000, THE EXECUTIVE
26 DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL NOT PUBLISH RULES
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1 CONTAINING ANY STATE INCOME TAX CREDIT ALLOWED PURSUANT TO THIS
2 SECTION UNTIL SUCH RULES ARE ABLE TO REFLECT THE IMPACT OF THE
3 RESULTS OF SUCH ELECTION ON THE STATE INCOME TAX CREDIT ALLOWED
4 PURSUANT TO THIS SECTION.
5 (6) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT
6 PROVIDING A STATE INCOME TAX CREDIT TO TAXPAYERS WHO MAKE
7 MONETARY CONTRIBUTIONS TO THE COLORADO CULTURAL TRUST FUND
8 CREATED IN SECTION 23-9-204, C.R.S., IS A REASONABLE METHOD OF
9 REFUNDING STATE EXCESS REVENUES REQUIRED TO BE REFUNDED IN
10 ACCORDANCE WITH SECTION 20 (7) (a) OF ARTICLE X OF THE STATE
11 CONSTITUTION.
12 SECTION 5. 24-77-106.5, Colorado Revised Statutes, is
13 amended to read:
14 24-77-106.5. Annual financial report - certification of state
15 excess revenues. (1) (a) For each fiscal year, the controller shall prepare
16 a financial report for the state for purposes of ascertaining compliance
17 with the provisions of this article. Any financial report prepared pursuant
18 to this section shall include, but shall not be limited to, state fiscal year
19 spending, reserves, revenues, and debt. Such financial report shall be
20 audited by the state auditor.
21 (b) BASED UPON THE FINANCIAL REPORT PREPARED IN
22 ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1) FOR ANY
23 GIVEN FISCAL YEAR, THE CONTROLLER SHALL CERTIFY TO THE GOVERNOR,
24 THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE
25 DEPARTMENT OF REVENUE NO LATER THAN SEPTEMBER 1 FOLLOWING THE
26 END OF A FISCAL YEAR THE AMOUNT OF STATE REVENUES IN EXCESS OF THE
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1 LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7)
2 (a) OF ARTICLE X OF THE STATE CONSTITUTION, IF ANY, FOR SUCH FISCAL
3 YEAR.
4 (2) ANY FINANCIAL REPORT PREPARED AND CERTIFICATION OF
5 STATE EXCESS REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS
6 SECTION SHALL BE AUDITED BY THE STATE AUDITOR. NO LATER THAN
7 SEPTEMBER 15 FOLLOWING THE CERTIFICATION MADE BY THE STATE
8 CONTROLLER FOR ANY GIVEN FISCAL YEAR, THE STATE AUDITOR SHALL
9 REPORT AND TRANSMIT TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND
10 THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE THE RESULTS
11 OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH THIS SUBSECTION (2).
12 (2) (3) Notwithstanding any generally accepted accounting
13 principles to the contrary, financial reports prepared pursuant to
14 subsection (1) of this section shall not include any unrealized gains or
15 losses on investments held by the state.
16 SECTION 6. Effective date. This act shall take effect at 12:01
17 a.m. on the day following the expiration of the ninety-day period after
18 final adjournment of the general assembly that is allowed for submitting
19 a referendum petition pursuant to article V, section 1 (3) of the state
20 constitution; except that, if a referendum petition is filed against this act
21 or an item, section, or part of this act within such period, then the act,
22 item, section, or part, if approved by the people, shall take effect on the
23 date of the official declaration of the vote thereon by proclamation of the
24 governor.]