Colorado 2022 Regular Session

Colorado House Bill HB1400 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-third General Assembly
	3	+	STATE OF COLORADO
	4	+	REVISED
	5	+	This Version Includes All Amendments Adopted
	6	+	on Second Reading in the Second House
	7	+	LLS NO. 22-0954.01 Conrad Imel x2313
1	8		HOUSE BILL 22-1400
2		-	BY REPRESENTATIVE(S) McCluskie and Tipper, Duran, Esgar,
3		-	Kennedy, Kipp, Lindsay, Titone, Weissman, Woodrow, Garnett, Jodeh,
4		-	Valdez D.;
5		-	also SENATOR(S) Moreno, Simpson, Zenzinger.
	9	+	House Committees Senate Committees
	10	+	Finance Appropriations
	11	+	A BILL FOR AN ACT
6	12		C
7		-	ONCERNING MATTERS RELATED TO A PROCEDURAL REQUIREMENT FOR
8		-	STATE ENTERPRISES
9		-	.
10		-
11		-	Be it enacted by the General Assembly of the State of Colorado:
12		-	SECTION 1. Legislative declaration. (1) The general assembly
13		-	finds and declares that:
14		-	(a) Colorado's colleges and universities have been permitted to be
15		-	designated as enterprises since 2004, and being designated as an enterprise
16		-	gives those institutions flexibility to enhance educational opportunities for
17		-	low-income and other under-represented students, as well as increase
18		-	overall educational excellence;
19		-	(b) In order to maintain enterprise status, a college or university
20		-	must not receive more than ten percent of its total annual revenues in grants
21		-	from all Colorado state and local governments combined;
22		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
23		-	officers and the Governor. To determine whether the Governor has signed the bill
24		-	or taken other action on it, please consult the legislative status sheet, the legislative
25		-	history, or the Session Laws.
26		-	________
27		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
28		-	through words or numbers indicate deletions from existing law and such material is not part of
29		-	the act. (c) The general assembly supports colleges and universities by
30		-	funding capital construction projects, other large-scale projects, and various
31		-	other programs, and the amount of that funding contributes to some
32		-	institutions, most commonly smaller institutions that serve students from
33		-	rural areas, occasionally temporarily losing enterprise status and later
34		-	requalifying and being redesignated as enterprises;
35		-	(d) Small higher education institutions have often temporarily lost
36		-	their enterprise status in the past as a result of state capital grants;
37		-	(e) A college or university losing enterprise status for one year does
38		-	not have significant implications for the institutions or the state, but an
39		-	institution losing its enterprise status for longer than one year may effect the
40		-	state because of the impact it has on calculating state revenue limits;
41		-	(f) The recent increase in available federal funds related to the
42		-	COVID-19 pandemic may result in the state having additional state money
43		-	available to allocate to colleges and universities. Because more state money
44		-	is available, the general assembly may want to appropriate additional state
45		-	money to colleges and universities for capital construction and other
46		-	infrastructure upgrades, which may result in institutions, including
47		-	community colleges and some four-year institutions, temporarily losing
48		-	enterprise status only to requalify for enterprise status at a later date after
49		-	the funds are no longer available.
50		-	(g) Because of the number of colleges and universities in Colorado
51		-	and the frequency with which institutions may temporarily lose enterprise
52		-	status only to later requalify as an enterprise, requiring a statewide ballot
53		-	question for each institution to be redesignated as an enterprise each time
54		-	the institution requalifies, will result in frequent and costly statewide ballot
55		-	questions decided by voters who may not live and work near the institution
56		-	whose enterprise status is the subject of the ballot question, and may limit
57		-	the ability of colleges and universities to provide the best educational
58		-	services to Colorado students.
59		-	(2) Therefore, the general assembly determines that it is in the best
60		-	interest of Colorado students and colleges and universities to permit
61		-	institutions that have already qualified for enterprise status and that lose
62		-	enterprise status to later qualify and be redesignated as an enterprise without
63		-	PAGE 2-HOUSE BILL 22-1400 voter approval in a manner does not limit the voters' authority to approve
64		-	new educational enterprises.
65		-	SECTION 2. In Colorado Revised Statutes, 23-5-101.5, add (7) as
66		-	follows:
67		-	23-5-101.5. Enterprise status of auxiliary facilities - definitions.
68		-	(7) N
69		-	OTWITHSTANDING SECTION 24-77-108, AN AUXILIARY FACILITY, OR
70		-	GROUP OF AUXILIARY FACILITIES WITH SIMILAR FUNCTIONS
71		-	, THAT IS
72		-	MANAGED BY THE GOVERNING BODY OF AN INSTITUTION OF HIGHER
73		-	EDUCATION OR BY THE BOARD OF DIRECTORS OF THE
74		-	AURARIA HIGHER
75		-	EDUCATION CENTER
76		-	, THAT WAS DESIGNATED AS AN ENTERPRISE AS OF
77		-	JANUARY 1, 2021, AND THAT SUBSEQUENTLY DISQUALIFIES AS AN
78		-	ENTERPRISE
79		-	, DOES NOT REQUIRE VOTER APPROVAL IN ORDER TO QUALIFY
80		-	AND BE REDESIGNATED AS AN ENTERPRISE
81		-	.
82		-	SECTION 3. In Colorado Revised Statutes, 23-5-101.7, add (6) as
83		-	follows:
84		-	23-5-101.7. Enterprise status of institutions of higher education.
85		-	(6) N
86		-	OTWITHSTANDING SECTION 24-77-108, AN INSTITUTION OF HIGHER
87		-	EDUCATION
88		-	, OR A GROUP OF INSTITUTIONS OF HIGHER EDUCATION THAT IS
89		-	MANAGED BY A SINGLE GOVERNING BOARD
90		-	, THAT WAS DESIGNATED AS AN
91		-	ENTERPRISE AS OF
92		-	JANUARY 1, 2021, AND THAT SUBSEQUENTLY
93		-	DISQUALIFIES AS AN ENTERPRISE
94		-	, DOES NOT REQUIRE VOTER APPROVAL IN
95		-	ORDER TO QUALIFY AND BE REDESIGNATED AS AN ENTERPRISE
96		-	.
97		-	SECTION 4. In Colorado Revised Statutes, 24-77-108, amend (1);
98		-	and add (3) as follows:
99		-	24-77-108. Creation of a new fee-based Enterprise. In order to
100		-	provide transparency and oversight to government mandated fees the People
101		-	of the State of Colorado find and declare that:
	13	+	ONCERNING MA TTERS RELATED TO A PR OCEDURAL REQUIREMENT101
	14	+	FOR STATE ENTERPRISES.102
	15	+	Bill Summary
	16	+	(Note: This summary applies to this bill as introduced and does
	17	+	not reflect any amendments that may be subsequently adopted. If this bill
	18	+	passes third reading in the house of introduction, a bill summary that
	19	+	applies to the reengrossed version of this bill will be available at
	20	+	http://leg.colorado.gov
	21	+	.)
	22	+	Under existing law, an institution of higher education (institution)
	23	+	or a group of institutions that is managed by a single governing board and
	24	+	any auxiliary facility or group of auxiliary facilities with similar functions
	25	+	that is managed by the governing body of an institution or by the board
	26	+	of directors of the Auraria higher education center (AHEC) may be
	27	+	designated as an enterprise by the institution's or facility's governing
	28	+	SENATE
	29	+	Amended 2nd Reading
	30	+	May 9, 2022
	31	+	HOUSE
	32	+	3rd Reading Unamended
	33	+	May 2, 2022
	34	+	HOUSE
	35	+	2nd Reading Unamended
	36	+	April 29, 2022
	37	+	HOUSE SPONSORSHIP
	38	+	McCluskie and Tipper, Duran, Esgar, Garnett, Kennedy, Kipp, Lindsay, Titone,
	39	+	Weissman, Woodrow
	40	+	SENATE SPONSORSHIP
	41	+	Moreno,
	42	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	43	+	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
	44	+	Dashes through the words indicate deletions from existing statute. body. A number of auxiliary facilities are designated as enterprises in
	45	+	existing law.
	46	+	The bill permits an institution or an auxiliary facility that was
	47	+	designated as an enterprise as of January 1, 2021, and that subsequently
	48	+	disqualifies as an enterprise, to qualify and be redesignated as an
	49	+	enterprise without voter approval.
	50	+	Be it enacted by the General Assembly of the State of Colorado:1
	51	+	SECTION 1. Legislative declaration. (1) The general assembly2
	52	+	finds and declares that:3
	53	+	(a) Colorado's colleges and universities have been permitted to be4
	54	+	designated as enterprises since 2004, and being designated as an5
	55	+	enterprise gives those institutions flexibility to enhance educational6
	56	+	opportunities for low-income and other under-represented students, as7
	57	+	well as increase overall educational excellence;8
	58	+	(b) In order to maintain enterprise status, a college or university9
	59	+	must not receive more than ten percent of its total annual revenues in10
	60	+	grants from all Colorado state and local governments combined;11
	61	+	(c) The general assembly supports colleges and universities by12
	62	+	funding capital construction projects, other large-scale projects, and13
	63	+	various other programs, and the amount of that funding contributes to14
	64	+	some institutions, most commonly smaller institutions that serve students15
	65	+	from rural areas, occasionally temporarily losing enterprise status and16
	66	+	later requalifying and being redesignated as enterprises;17
	67	+	(d) Small higher education institutions have often temporarily lost18
	68	+	their enterprise status in the past as a result of state capital grants;19
	69	+	(e) A college or university losing enterprise status for one year20
	70	+	does not have significant implications for the institutions or the state, but21
	71	+	an institution losing its enterprise status for longer than one year may22
	72	+	1400-2- effect the state because of the impact it has on calculating state revenue1
	73	+	limits;2
	74	+	(f) The recent increase in available federal funds related to the3
	75	+	COVID-19 pandemic may result in the state having additional state4
	76	+	money available to allocate to colleges and universities. Because more5
	77	+	state money is available, the general assembly may want to appropriate6
	78	+	additional state money to colleges and universities for capital construction7
	79	+	and other infrastructure upgrades, which may result in institutions,8
	80	+	including community colleges and some four-year institutions,9
	81	+	temporarily losing enterprise status only to requalify for enterprise status10
	82	+	at a later date after the funds are no longer available.11
	83	+	(g) Because of the number of colleges and universities in12
	84	+	Colorado and the frequency with which institutions may temporarily lose13
	85	+	enterprise status only to later requalify as an enterprise, requiring a14
	86	+	statewide ballot question for each institution to be redesignated as an15
	87	+	enterprise each time the institution requalifies, will result in frequent and16
	88	+	costly statewide ballot questions decided by voters who may not live and17
	89	+	work near the institution whose enterprise status is the subject of the18
	90	+	ballot question, and may limit the ability of colleges and universities to19
	91	+	provide the best educational services to Colorado students.20
	92	+	(2) Therefore, the general assembly determines that it is in the best21
	93	+	interest of Colorado students and colleges and universities to permit22
	94	+	institutions that have already qualified for enterprise status and that lose23
	95	+	enterprise status to later qualify and be redesignated as an enterprise24
	96	+	without voter approval in a manner does not limit the voters' authority to25
	97	+	approve new educational enterprises.26
	98	+	SECTION 2. In Colorado Revised Statutes, 23-5-101.5, add (7)27
	99	+	1400
	100	+	-3- as follows:1
	101	+	23-5-101.5. Enterprise status of auxiliary facilities -2
	102	+	definitions. (7)
	103	+	NOTWITHSTANDING SECTION 24-77-108, AN AUXILIARY3
	104	+	FACILITY, OR GROUP OF AUXILIARY FACILITIES WITH SIMILAR FUNCTIONS ,4
	105	+	THAT IS MANAGED BY THE GOVERNING BODY OF AN INSTITUTION OF5
	106	+	HIGHER EDUCATION OR BY THE BOARD OF DIRECTORS OF THE AURARIA6
	107	+	HIGHER EDUCATION CENTER , THAT WAS DESIGNATED AS AN ENTERPRISE7
	108	+	AS OF JANUARY 1, 2021, AND THAT SUBSEQUENTLY DISQUALIFIES AS AN8
	109	+	ENTERPRISE, DOES NOT REQUIRE VOTER APPROVAL IN ORDER TO QUALIFY9
	110	+	AND BE REDESIGNATED AS AN ENTERPRISE .10
	111	+	SECTION 3. In Colorado Revised Statutes, 23-5-101.7, add (6)11
	112	+	as follows:12
	113	+	23-5-101.7. Enterprise status of institutions of higher13
	114	+	education. (6) N
	115	+	OTWITHSTANDING SECTION 24-77-108, AN INSTITUTION14
	116	+	OF HIGHER EDUCATION , OR A GROUP OF INSTITUTIONS OF HIGHER15
	117	+	EDUCATION THAT IS MANAGED BY A SINGLE GOVERNING BOARD , THAT WAS16
	118	+	DESIGNATED AS AN ENTERPRISE AS OF JANUARY 1, 2021, AND THAT17
	119	+	SUBSEQUENTLY DISQUALIFIES AS AN ENTERPRISE , DOES NOT REQUIRE18
	120	+	VOTER APPROVAL IN ORDER TO QUALIFY AND BE REDESI GNATED AS AN19
	121	+	ENTERPRISE.20
	122	+	SECTION 4. In Colorado Revised Statutes, 24-77-108, amend
	123	+	21
	124	+	(1); and add (3) as follows:22
	125	+	24-77-108. Creation of a new fee-based Enterprise. In order to23
	126	+	provide transparency and oversight to government mandated fees the24
	127	+	People of the State of Colorado find and declare that:25
102	128		(1) A
103	129		STATE ENTERPRISE QUALIFIED OR CREATED after January 1,
104		-	2021, any state enterprise qualified or created,
105		-	as defined under Colo.
106		-	Const. Art. X, section 20(2)(d), with projected or actual revenue from fees
107		-	and surcharges of over SHALL NOT RECEIVE MORE THAN $100,000,000 total
108		-	IN REVENUE FROM FEES AND SURCHARGES in its first five fiscal years must
109		-	be UNLESS approved at a statewide general election. IF A STATE ENTERPRISE
110		-	PAGE 3-HOUSE BILL 22-1400 HAS COLLECTED ONE HUNDRED MILLION DOLLARS ($100,000,000) IN FEES
111		-	AND SURCHARGES WITHIN ITS FIRST FIVE FISCAL YEARS PRIOR TO RECEIVING
112		-	VOTER APPROVAL
113		-	, THE STATE ENTERPRISE SHALL STOP COLLECTING FEES
114		-	AND SURCHARGES
115		-	. Ballot titles for enterprises shall begin, "SHALL AN
116		-	ENTERPRISE BE CREATED TO COLLECT REVENUE TOTALING
117		-	(full dollar collection for first five fiscal years) IN ITS FIRST FIVE
118		-	YEARS...?"
	130	+	26
	131	+	2021, any state enterprise qualified or created, as defined under Colo.27
	132	+	1400
	133	+	-4- Const. Art. X, section 20(2)(d), with projected or actual revenue from1
	134	+	fees and surcharges of over SHALL NOT RECEIVE MORE THAN2
	135	+	$100,000,000 total IN REVENUE FROM FEES AND SURCHARGES in its first3
	136	+	five fiscal years must be UNLESS approved at a statewide general election.4
	137	+	I
	138	+	F A STATE ENTERPRISE HAS COLLECTED ONE HUNDRED MILLION DOLLARS
	139	+	5
	140	+	($100,000,000)
	141	+	IN FEES AND SURCHARGES WITHIN ITS FIRST FIVE FISCAL
	142	+	6
	143	+	YEARS PRIOR TO RECEIVING VOTER APPROVAL , THE STATE ENTERPRISE7
	144	+	SHALL STOP COLLECTING FEES AND SURCHARGES . Ballot titles for8
	145	+	enterprises shall begin, "SHALL AN ENTERPRISE BE CREATED TO9
	146	+	COLLECT REVENUE TOTALING (full dollar collection for first five10
	147	+	fiscal years) IN ITS FIRST FIVE YEARS...?"11
119	148		(3) F
120	149		OR THE PURPOSES OF APPLYING THE REQUIREMENTS OF
121		-	~~SUBSECTIONS~~
122		-	(1) AND (2) OF THIS SECTION:
	150	+	12
	151	+	SUBSECTIONS (1) AND (2) OF THIS SECTION:13
123	152		(a) E
124		-	NTERPRISES SERVE PRIMARILY THE SAME PURPOSE WHEN THEY
125		-	PROVIDE THE SAME SERVICES IN THE SAME GEOGRAPHIC AREA
126		-	; AND
127		-	(b) THE FIRST FIVE FISCAL YEARS OF A STATE ENTERPRISE FOR THE
128		-	PURPOSE OF CALCULATING THE ONE HUNDRED MILLION DOLLAR AM OUNT SET
129		-	FORTH IN SUBSECTION
130		-	(1) ARE THE FIRST FIVE STATE FISCAL YEARS SINCE
131		-	THE CREATION OR FIRST QUALIFICATION OF THE ENTERPRISE
132		-	.
133		-	SECTION 5. Safety clause. The general assembly hereby finds,
134		-	PAGE 4-HOUSE BILL 22-1400 determines, and declares that this act is necessary for the immediate
135		-	preservation of the public peace, health, or safety.
136		-	____________________________ ____________________________
137		-	Alec Garnett Steve Fenberg
138		-	SPEAKER OF THE HOUSE PRESIDENT OF
139		-	OF REPRESENTATIVES THE SENATE
140		-	____________________________ ____________________________
141		-	Robin Jones Cindi L. Markwell
142		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
143		-	OF REPRESENTATIVES THE SENATE
144		-	APPROVED________________________________________
145		-	(Date and Time)
146		-	_________________________________________
147		-	Jared S. Polis
148		-	GOVERNOR OF THE STATE OF COLORADO
149		-	PAGE 5-HOUSE BILL 22-1400
	153	+	NTERPRISES SERVE PRIMARILY THE SAME PURPOSE WHEN
	154	+	14
	155	+	THEY PROVIDE THE SAME SERVICES IN THE SAME GEOGRAPHIC AREA ; AND15
	156	+	(b) T
	157	+	HE FIRST FIVE FISCAL YEARS OF A STATE ENTERPRISE FOR THE
	158	+	16
	159	+	PURPOSE OF CALCULATING THE ONE HUNDRED MILLION DOLLAR AMOUNT17
	160	+	SET FORTH IN SUBSECTION (1) ARE THE FIRST FIVE STATE FISCAL YEARS18
	161	+	SINCE THE CREATION OR FIRST QUALIFICATION OF THE ENTERPRISE .19
	162	+	SECTION 5. Safety clause. The general assembly hereby finds,20
	163	+	determines, and declares that this act is necessary for the immediate21
	164	+	preservation of the public peace, health, or safety.22
	165	+	1400
	166	+	-5-