Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0954.01 Conrad Imel x2313
HOUSE BILL 22-1400
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING MA TTERS RELATED TO A PR OCEDURAL REQUIREMENT101
FOR STATE ENTERPRISES.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Under existing law, an institution of higher education (institution)
or a group of institutions that is managed by a single governing board and
any auxiliary facility or group of auxiliary facilities with similar functions
that is managed by the governing body of an institution or by the board
of directors of the Auraria higher education center (AHEC) may be
designated as an enterprise by the institution's or facility's governing
HOUSE
2nd Reading Unamended
April 29, 2022
HOUSE SPONSORSHIP
McCluskie and Tipper,
SENATE SPONSORSHIP
Moreno,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. body. A number of auxiliary facilities are designated as enterprises in
existing law.
The bill permits an institution or an auxiliary facility that was
designated as an enterprise as of January 1, 2021, and that subsequently
disqualifies as an enterprise, to qualify and be redesignated as an
enterprise without voter approval.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Colorado's colleges and universities have been permitted to be4
designated as enterprises since 2004, and being designated as an5
enterprise gives those institutions flexibility to enhance educational6
opportunities for low-income and other under-represented students, as7
well as increase overall educational excellence;8
(b) In order to maintain enterprise status, a college or university9
must not receive more than ten percent of its total annual revenues in10
grants from all Colorado state and local governments combined;11
(c) The general assembly supports colleges and universities by12
funding capital construction projects, other large-scale projects, and13
various other programs, and the amount of that funding contributes to14
some institutions, most commonly smaller institutions that serve students15
from rural areas, occasionally temporarily losing enterprise status and16
later requalifying and being redesignated as enterprises;17
(d) Small higher education institutions have often temporarily lost18
their enterprise status in the past as a result of state capital grants;19
(e) A college or university losing enterprise status for one year20
does not have significant implications for the institutions or the state, but21
an institution losing its enterprise status for longer than one year may22
1400-2- effect the state because of the impact it has on calculating state revenue1
limits;2
(f) The recent increase in available federal funds related to the3
COVID-19 pandemic may result in the state having additional state4
money available to allocate to colleges and universities. Because more5
state money is available, the general assembly may want to appropriate6
additional state money to colleges and universities for capital construction7
and other infrastructure upgrades, which may result in institutions,8
including community colleges and some four-year institutions,9
temporarily losing enterprise status only to requalify for enterprise status10
at a later date after the funds are no longer available.11
(g) Because of the number of colleges and universities in12
Colorado and the frequency with which institutions may temporarily lose13
enterprise status only to later requalify as an enterprise, requiring a14
statewide ballot question for each institution to be redesignated as an15
enterprise each time the institution requalifies, will result in frequent and16
costly statewide ballot questions decided by voters who may not live and17
work near the institution whose enterprise status is the subject of the18
ballot question, and may limit the ability of colleges and universities to19
provide the best educational services to Colorado students.20
(2) Therefore, the general assembly determines that it is in the best21
interest of Colorado students and colleges and universities to permit22
institutions that have already qualified for enterprise status and that lose23
enterprise status to later qualify and be redesignated as an enterprise24
without voter approval in a manner does not limit the voters' authority to25
approve new educational enterprises.26
SECTION 2. In Colorado Revised Statutes, 23-5-101.5, add (7)27
1400
-3- as follows:1
23-5-101.5. Enterprise status of auxiliary facilities -2
definitions. (7)
NOTWITHSTANDING SECTION 24-77-108, AN AUXILIARY3
FACILITY, OR GROUP OF AUXILIARY FACILITIES WITH SIMILAR FUNCTIONS ,4
THAT IS MANAGED BY THE GOVERNING BODY OF AN INSTITUTION OF5
HIGHER EDUCATION OR BY THE BOARD OF DIRECTORS OF THE AURARIA6
HIGHER EDUCATION CENTER , THAT WAS DESIGNATED AS AN ENTERPRISE7
AS OF JANUARY 1, 2021, AND THAT SUBSEQUENTLY DISQUALIFIES AS AN8
ENTERPRISE, DOES NOT REQUIRE VOTER APPROVAL IN ORDER TO QUALIFY9
AND BE REDESIGNATED AS AN ENTERPRISE .10
SECTION 3. In Colorado Revised Statutes, 23-5-101.7, add (6)11
as follows:12
23-5-101.7. Enterprise status of institutions of higher13
education. (6) N
OTWITHSTANDING SECTION 24-77-108, AN INSTITUTION14
OF HIGHER EDUCATION , OR A GROUP OF INSTITUTIONS OF HIGHER15
EDUCATION THAT IS MANAGED BY A SINGLE GOVERNING BOARD , THAT WAS16
DESIGNATED AS AN ENTERPRISE AS OF JANUARY 1, 2021, AND THAT17
SUBSEQUENTLY DISQUALIFIES AS AN ENTERPRISE , DOES NOT REQUIRE18
VOTER APPROVAL IN ORDER TO QUALIFY AND BE REDESI GNATED AS AN19
ENTERPRISE.20
SECTION 4. Safety clause. The general assembly hereby finds,21
determines, and declares that this act is necessary for the immediate22
preservation of the public peace, health, or safety.April 29, 202223
1400
-4-