SENATE BILL 22-216
BY SENATOR(S) Hansen and Zenzinger, Rankin;
also REPRESENTATIVE(S) Herod and McCluskie, Lindsay, Sullivan.
C
ONCERNING THE REALLOCATION OF THE LIMITED GAMING TAX REVENUES
FOR FISCAL YEARS FOLLOWING A SIGNIFICANT DECREASE IN THE
REVENUES
, AND, IN CONNECTION THEREWITH , MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 24-80-217 as
follows:
24-80-217. State historical society strategic initiatives fund -
creation - repeal. (1) T
HE STATE HISTORICAL SOCIETY STRATEGIC
INITIATIVES FUND IS HEREBY CREATED IN THE STATE TREASURY
. THE FUND
CONSISTS OF MONEY TRANSFERRED TO THE FUND FROM THE LIMITED GAMING
FUND PURSUANT TO SECTION
44-30-701 (2)(a)(V.5)(A). THE STATE
TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE
DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO THE FUND
.
(2) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. ASSEMBLY, THE STATE HISTORICAL SOCIETY MAY EXPEND MONEY FROM THE
FUND FOR PROGRAMS AND ACTIVITIES THAT STRENGTHEN THE SOCIETY
'S
FINANCIAL POSITION AND EXPAND ITS IMPACT ON THE PEOPLE OF THE STATE
.
(3) (a) O
N JUNE 30, 2027, THE STATE TREASURER SHALL TRANSFER
ANY UNEXPENDED MONEY IN THE FUND TO THE GENERAL FUND
.
(b) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 2. In Colorado Revised Statutes, 44-30-701, amend
(2)(a)(III)(A); and add (2)(a)(V.5) as follows:
44-30-701. Limited gaming fund - created - repeal. (2) (a) Except
as provided in subsection (2)(b) or (2)(c) of this section, at the end of the
2012-13 state fiscal year and at the end of each state fiscal year thereafter,
the state treasurer shall transfer the state share as follows:
(III) (A) At the end of the 2017-18 state
2021-22 STATE fiscal year
and each state fiscal year thereafter, five million
SIX HUNDRED EIGHTY-NINE
THOUSAND NINE HUNDRED THIRTY
-EIGHT dollars, as annually increased by
an amount equal to the percentage increase in the state share as described
in subsection (1)(d)(I) of this section from the previous fiscal year to the
local government limited gaming impact fund created in section
44-30-1301, plus an amount equal to the projected direct and indirect costs
to administer the local government limited gaming impact grant program set
forth in section 44-30-1301 (2)(a) for the upcoming fiscal year; except that
such transfer shall be made at the beginning of the state fiscal year, and any
unspent money from such transfer reverts to the local government limited
gaming impact fund.
(V.5) (A) F
OR THE STATE FISCAL YEAR 2021-22, THREE MILLION
DOLLARS TO THE STATE HISTORICAL SOCIETY STRATEGIC INITIATIVES FUND
CREATED IN SECTION
24-80-217.
(B) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 3. In Colorado Revised Statutes, 44-30-702, amend
(7)(a)(III)(B), (7)(a)(IV), and (7)(b); and add (7)(a)(V), (7)(a)(VI),
(7)(a)(VII), (7)(a)(VIII), (7)(a.5), (7)(c), (7)(d), and (7)(e) as follows:
PAGE 2-SENATE BILL 22-216 44-30-702. Revenues attributable to local revisions to gaming
limits - extended limited gaming fund - identification - separate
administration - distribution - legislative declaration - definitions.
(7) Reduction in revenues - operation of hold-harmless provisions -
continuity of funding - recovery. (a) Legislative declaration. The
general assembly finds, determines, and declares that:
(III) Pursuant to that authority, it is reasonable for the general
assembly to address the effects of the global pandemic and economic
recession of 2020 in a way that:
(B) Equitably allocates the limited gaming tax revenues in fiscal
years immediately following this severe funding decline among all
recipients; and
(IV) The allocation provisions of section 9 (7) of article XVIII of
the state constitution do not DID NOT contemplate the unprecedented
significant decline in limited gaming revenues caused by the global
pandemic, and,
IN 2020, the general assembly desires DESIRED to address
the original implementing statutory formula for the allocation of gaming
revenues, consistent with the state constitution in a manner that modifies
MODIFIED the statutory annual adjustment provisions to retain the
constitutional allocation, thus reflecting the proportionate allocation to the
beneficiaries of limited gaming tax revenues;
(V) T
HIS REALLOCATION, HOWEVER, DID NOT ANTICIPATE THE
RAPIDITY AND EXTENT OF THE GROWTH OF THE LIMITED GAMING REVENUES
POST
-PANDEMIC, WHICH WAS DUE IN PART TO THE VOTERS APPROVAL IN
2020 OF THE MODIFICATIONS TO SECTION 9 (7) OF ARTICLE XVIII OF THE
STATE CONSTITUTION IN THE INITIATIVE COMMONLY REFERRED TO AS
"AMENDMENT 77", WHICH PERMITTED THE GAMING TOWNS TO INCREASE OR
REMOVE BET LIMITS AND APPROVE NEW CASINO GAMES WITH LOCAL VOTER
APPROVAL
;
(VI) T
HEREFORE, IT IS NECESSARY TO ADJUST THE ALLOCATION FOR
THE STATE FISCAL YEAR
2021-22 AS SET FORTH IN SUBSECTION (7)(c) OF
THIS SECTION TO ACHIEVE THE PURPOSES SET FORTH IN SUBSECTION
(7)(a)(III) OF THIS SECTION;
(VII) F
URTHER, THE GLOBAL PANDEMIC AND ECONOMIC RECESSION
PAGE 3-SENATE BILL 22-216 OF 2020 DEMONSTRATED THAT THE EXISTING METHODOLOGY FOR
DETERMINING THE LIMITED GAMING TAX REVENUES ATTRIBUTABLE TO
EXTENDED LIMITED GAMING IS SUSCEPTIBLE TO DISTORTION WHEN THERE IS
A SIGNIFICANT DECLINE IN THE LIMITED GAMING TAX REVENUES AND IN THE
FISCAL YEARS THEREAFTER WHEN THE REVENUES ARE RESTORED
;
(VIII) T
O EQUITABLY ALLOCATE LIMITED GAMING TAX REVENUES IN
FISCAL YEARS FOLLOWING A SIGNIFICANT DECLINE AND TO AVOID
LONG
-TERM ECONOMIC DAMAGE TO ANY OF THE BENEFICIARIES OF THOSE
REVENUES
, IT IS NECESSARY FOR THE GENERAL ASSEMBLY TO ENACT
LEGISLATION THAT WILL FACILITATE THE OPERATION OF SECTION
9 (7) OF
ARTICLE
XVIII OF THE STATE CONSTITUTION.
(a.5) A
S USED IN THIS SUBSECTION (7), UNLESS THE CONTEXT
OTHERWISE REQUIRES
:
(I) "E
XTENDED LIMITED GAMING FUND RECIPIENTS " MEANS THE
RECIPIENTS OF LIMITED GAMING TAX REVENUES ATTRIBUTABLE TO
EXTENDED LIMITED GAMING UNDER SECTION
9 (7) OF ARTICLE XVIII OF THE
STATE CONSTITUTION
.
(II) "F
ISCAL YEAR WITH A SIGNIFICANT DECREASE IN TOTAL LIMITED
GAMING TAX REVENUE
" MEANS:
(A) A
FISCAL YEAR IN WHICH THE TOTAL LIMITED GAMING TAX
REVENUE COLLECTIONS HAVE DECLINED BY FIVE PERCENT OR MORE FROM
THE IMMEDIATELY PRECEDING FISCAL YEAR
; OR
(B) IF SUBSECTION (7)(a.5)(II)(A) OF THIS SECTION DOES NOT APPLY,
THE SECOND OF TWO CONSECUTIVE FISCAL YEARS WITH A CUMULATIVE
DECLINE OF TOTAL LIMITED GAMING TAX REVENUE COLLECTIONS THAT IS SIX
PERCENT OR MORE FROM THE FISCAL YEAR IMMEDIATELY PRECEDING THE
FIRST OF THE TWO CONSECUTIVE FISCAL YEARS
.
(III) "L
IMITED GAMING FUND RECIPIENTS" MEANS THE RECIPIENTS
LISTED IN SECTION
9 (5)(b)(II) OF ARTICLE XVIII OF THE STATE
CONSTITUTION
.
(IV) "R
ECENT TOTAL LIMITED GAMING TAX REVENUES PEAK " MEANS
TOTAL LIMITED GAMING TAX REVENUE COLLECTIONS FOR THE FISCAL YEAR
PAGE 4-SENATE BILL 22-216 THAT IS:
(A) P
RIOR TO THE FISCAL YEAR WITH A SIGNIFICANT DECREASE IN
TOTAL LIMITED GAMING TAX REVENUES
; AND
(B) THE LAST FISCAL YEAR IN WHICH TOTAL LIMITED GAMING TAX
REVENUE COLLECTIONS INCREASED FROM THE IMMEDIATELY PRECEDING
FISCAL YEAR
.
(b) (I) Notwithstanding any provision of subsection (3)(b) or (4)(d)
of this section to the contrary, beginning in FOR state fiscal year 2020-21,
and continuing through each subsequent fiscal year until the fiscal year
immediately following the fiscal year in which total limited gaming tax
revenue collections have again equaled or exceeded the amount of total
limited gaming tax revenues collected in state fiscal year 2018-19, any
annual THE growth or decline in total net gaming tax distributions shall be
IS allocated between the limited gaming fund recipients listed in section 9
(5)(b)(II) of article XVIII of the state constitution and the recipients of
limited gaming tax revenues attributable to extended limited gaming under
section 9 (7) of article XVIII of the state constitution FUND RECIPIENTS
based on the relative percentages in which each group of recipients shared in the decrease in total net gaming tax distributions from state fiscal year 2018-19 to state fiscal year 2019-20. The commission may make any
adjustments necessary to ensure that the final distributions to all recipients
comply with constitutional requirements while achieving the intent of this
subsection (7). So long as this subsection (7) remains in effect, the annual
adjustments required under subsections (3)(b) and (4)(d) of this section are
temporarily superseded by the specific allocations to implement the
constitutional annual adjustment made pursuant to this subsection (7).
(II) As used in this subsection (7)(b), "limited gaming tax revenues
attributable to extended limited gaming" means that portion of total limited
gaming tax revenues allocated pursuant to subsection (7)(b)(I) of this
section to recipients of revenues derived from extended limited gaming
under section 9 (7) of article XVIII of the state constitution.
(c) (I) FOR PURPOSES OF DETERMINING THE LIMITED GAMING TAX
REVENUES ATTRIBUTABLE TO EXTENDED LIMITED GAMING
, THE ADJUSTED
BASE FOR STATE FISCAL YEAR
2021-22 IS EQUAL TO ONE HUNDRED THIRTEEN
MILLION NINE HUNDRED SEVENTY
-THREE THOUSAND TWELVE DOLLARS ,
PAGE 5-SENATE BILL 22-216 WHICH IS EQUAL TO THE ADJUSTED BASE FOR STATE FISCAL YEAR 2018-19
INCREASED BY TWO AND ONE-HALF PERCENT, WITH THAT SUM INCREASED BY
THREE PERCENT
, WITH THAT SUM INCREASED BY THREE PERCENT . ALL
LIMITED GAMING TAX REVENUES FOR STATE FISCAL YEAR
2021-22 IN EXCESS
OF THIS ADJUSTED BASE ARE LIMITED GAMING TAX REVENUES ATTRIBUTABLE
TO EXTENDED LIMITED GAMING FOR STATE FISCAL YEAR
2021-22.
(II) T
HE ADJUSTED BASE THAT IS ESTABLISHED IN SUBSECTION
(7)(c)(I) OF THIS SECTION CONSTITUTES THE ADJUSTED BASE THAT IS USED
IN THE CALCULATION SET FORTH IN SUBSECTION
(4)(d) OF THIS SECTION FOR
PURPOSES OF DETERMINING THE LIMITED GAMING TAX REVENUES
ATTRIBUTABLE TO EXTENDED LIMITED GAMING FOR STATE FISCAL YEAR
2022-23, AND FUTURE CALCULATIONS UNDER SUBSECTION (4)(d) OF THIS
SECTION ARE DERIVED FROM THIS INITIAL AMOUNT AS SUBSEQUENTLY
ADJUSTED
.
(d) I
F THERE IS A FISCAL YEAR WITH A SIGNIFICANT DECREASE IN
TOTAL LIMITED GAMING TAX REVENUES
, THEN:
(I) B
EGINNING WITH THE NEXT FISCAL YEAR AND CONTINUING FOR
EACH CONSECUTIVE FISCAL YEAR THEREAFTER WITH TOTAL LIMITED GAMING
TAX REVENUES THAT ARE LESS THAN OR EQUAL TO THE RECENT TOTAL
LIMITED GAMING TAX REVENUES PEAK
, THE ANNUAL GROWTH OR DECLINE
IN TOTAL GAMING TAX DISTRIBUTIONS IS ALLOCATED BETWEEN THE LIMITED
GAMING FUND RECIPIENTS AND THE EXTENDED LIMITED GAMING FUND
RECIPIENTS BASED ON THE RELATIVE PERCENTAGES IN WHICH EACH GROUP
OF RECIPIENTS SHARED IN THE DECREASE IN TOTAL NET GAMING TAX
DISTRIBUTIONS FROM THE FISCAL YEAR WITH THE RECENT TOTAL LIMITED
GAMING TAX REVENUES PEAK TO THE FISCAL YEAR WITH A SIGNIFICANT
DECREASE IN TOTAL LIMITED GAMING REVENUE
.
(II) (A) F
OR PURPOSES OF DETERMINING THE LIMITED GAMING TAX
REVENUES ATTRIBUTABLE TO EXTENDED LIMITED GAMING
, FOR THE NEXT
FISCAL YEAR IN WHICH TOTAL LIMITED GAMING REVENUES EXCEED THE
RECENT TOTAL LIMITED GAMING TAX REVENUES PEAK
, THE ADJUSTED BASE
FOR THE FISCAL YEAR IS EQUAL TO THE RECENT TOTAL LIMITED GAMING TAX
REVENUES PEAK INCREASED BY THREE PERCENT OR THE ACTUAL
PERCENTAGE INCREASE OF TOTAL LIMITED GAMING REVENUES FOR THE
FISCAL YEAR ABOVE THE RECENT TOTAL LIMITED GAMING REVENUES PEAK
,
WHICHEVER PERCENTAGE IS LESS. FOR THIS NEXT FISCAL YEAR, ALL LIMITED
PAGE 6-SENATE BILL 22-216 GAMING TAX REVENUES IN EXCESS OF THIS ADJUSTED BASE ARE LIMITED
GAMING TAX REVENUES ATTRIBUTABLE TO EXTENDED LIMITED GAMING FOR
THE FISCAL YEAR
.
(B) T
HE ADJUSTED BASE THAT IS ESTABLISHED IN SUBSECTION
(7)(d)(II)(A) OF THIS SECTION CONSTITUTES THE ADJUSTED BASE THAT IS
USED IN THE CALCULATION SET FORTH IN SUBSECTION
(4)(d) OF THIS
SECTION FOR PURPOSES OF DETERMINING THE LIMITED GAMING TAX
REVENUES ATTRIBUTABLE TO EXTENDED LIMITED GAMING FOR THE FISCAL
YEAR IMMEDIATELY FOLLOWING THE FISCAL YEAR SET FORTH IN SUBSECTION
(7)(d)(II)(A) OF THIS SECTION, AND FUTURE CALCULATIONS UNDER
SUBSECTION
(4)(d) OF THIS SECTION ARE DERIVED FROM THIS INITIAL
AMOUNT AS SUBSEQUENTLY ADJUSTED
.
(e) T
HE COMMISSION MAY MAKE ANY ADJUSTMENTS TO THE
ALLOCATIONS SET FORTH IN THIS SUBSECTION
(7) NECESSARY TO ENSURE
THAT THE FINAL DISTRIBUTIONS TO ALL RECIPIENTS COMPLY WITH
CONSTITUTIONAL REQUIREMENTS WHILE ACHIEVING THE INTENT OF THIS
SUBSECTION
(7). SO LONG AS THIS SUBSECTION (7) REMAINS IN EFFECT, THE
ANNUAL ADJUSTMENTS REQUIRED UNDER SUBSECTIONS
(3)(b) AND (4)(d) OF
THIS SECTION ARE TEMPORARILY SUPERSEDED BY THE SPECIFIC
ALLOCATIONS TO IMPLEMENT THE CONSTITUTIONAL ANNUAL ADJUSTMENT
MADE PURSUANT TO THIS SUBSECTION
(7).
SECTION 4. In Colorado Revised Statutes, add 44-30-702.5 as
follows:
44-30-702.5. Supplemental payments - definition - working
group - analysis of revenue attribution - report - repeal. (1) A
S USED IN
THIS SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "L
OCAL GOVERNMENT LIMITED GAMING RECIPIENT " MEANS THE
GOVERNING BODY OF
GILPIN COUNTY, TELLER COUNTY, OR THE CITIES OF
CENTRAL, BLACK HAWK, OR CRIPPLE CREEK.
(b) "T
OTAL LIMITED GAMING REVENUES" MEANS THE TOTAL AMOUNT
OF REVENUE DISTRIBUTED TO A LOCAL GOVERNMENT LIMITED GAMING
RECIPIENT FROM THE LIMITED GAMING FUND CREATED BY SECTION
9 (5)(a)
OF ARTICLE XVIII OF THE STATE CONSTITUTION AND THE EXTENDED LIMITED
GAMING FUND CREATED IN SECTION
44-30-702 (1)(a), AND THE TERM
PAGE 7-SENATE BILL 22-216 INCLUDES AMOUNTS DISTRIBUTED TO A LOCAL GOVERNMENT LIMITED
GAMING RECIPIENT FROM THE STATE HISTORICAL FUND IN ACCORDANCE
WITH SECTION
9 (5)(b)(II) OF ARTICLE XVIII OF THE STATE CONSTITUTION.
(c) "W
ORKING GROUP" MEANS THE WORKING GROUP CREATED IN
SUBSECTION
(4)(a) OF THIS SECTION.
(2) S
UBJECT TO THE PROVISIONS IN SUBSECTION (3) OF THIS SECTION,
AT THE END OF THE 2021-22 STATE FISCAL YEAR, THE DIVISION SHALL
DISTRIBUTE TO A LOCAL GOVERNMENT LIMITED GAMING RECIPIENT AN
AMOUNT EQUAL TO THE TOTAL LIMITED GAMING REVENUES THAT THE
RECIPIENT WOULD HAVE RECEIVED IF
SENATE BILL 22-216 HAD NOT BEEN
ENACTED INTO LAW MINUS THE AMOUNT THE RECIPIENT IS ENTITLED TO
RECEIVE BASED ON THE PASSAGE OF
SENATE BILL 22-216.
(3) T
HE DIVISION SHALL MAKE THE DISTRIBUTIONS FROM MONEY
APPROPRIATED BY THE GENERAL ASSEMBLY FROM THE GENERAL FUND
, AND
THE TOTAL DISTRIBUTIONS SHALL NOT EXCEED ONE MILLION TWO HUNDRED
FIFTY THOUSAND DOLLARS
. IF THE TOTAL AMOUNT TO BE DISTRIBUTED
BASED ON THE CALCULATION SET FORTH IN SUBSECTION
(2) OF THIS SECTION
WOULD OTHERWISE EXCEED THIS AMOUNT
, THEN THE DIVISION SHALL
PROPORTIONALLY REDUCE THE DISTRIBUTIONS TO THE ELIGIBLE LOCAL
GOVERNMENT LIMITED GAMING RECIPIENTS BASED ON THE RELATIVE
DISTRIBUTIONS
.
(4) (a) T
HE DIRECTOR SHALL CONVENE A WORKING GROUP TO STUDY
THE ATTRIBUTION OF LIMITED GAMING TAX REVENUE BETWEEN THE LIMITED
GAMING FUND AND THE EXTENDED LIMITED GAMING FUND BY
:
(I) D
ETERMINING IF THERE IS DATA AVAILABLE TO IDENTIFY THE
LIMITED GAMING TAX REVENUES ATTRIBUTABLE TO THE OPERATION OF
SECTION
9 (7) OF ARTICLE XVIII OF THE STATE CONSTITUTION; AND
(II) IF SUCH DATA IS AVAILABLE , COLLECTING THE DATA AND
COMPARING IT WITH THE CURRENT ALLOCATION REQUIRED BY LAW
.
(b) T
HE WORKING GROUP CONSISTS OF THE DIRECTOR , OR THE
DIRECTOR
'S DESIGNEE; A REPRESENTATIVE OF THE OFFICE OF STATE
PLANNING AND BUDGETING
; A REPRESENTATIVE OF THE STATE HISTORICAL
SOCIETY
; A REPRESENTATIVE FROM EACH OF THE LOCAL GOVERNMENT
PAGE 8-SENATE BILL 22-216 LIMITED GAMING RECIPIENTS ; AND ONE OR MORE REPRESENTATIVES
APPOINTED BY THE DIRECTOR TO REPRESENT THE STATE PUBLIC COMMUNITY
COLLEGES
, JUNIOR COLLEGES, AND LOCAL DISTRICT COLLEGES.
(c) T
HE WORKING GROUP SHALL PREPARE A WRITTEN REPORT OF ITS
FINDINGS AND SUBMIT THE REPORT TO THE JOINT BUDGET COMMITTEE NO
LATER THAN
NOVEMBER 1, 2022. INDIVIDUAL MEMBERS OF THE WORKING
GROUP MAY PROVIDE COMMENTS TO BE INCLUDED WITH THE SUBMISSION OF
THE REPORT
.
(5) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2023.
SECTION 5. Appropriation. (1) For the 2022-23 state fiscal year,
$1,500,000 is appropriated to the department of higher education for use by
history Colorado. This appropriation is from the state historical society
strategic initiatives fund created in section 24-80-217, C.R.S. To implement
this act, history Colorado may use this appropriation for programs and
activities that strengthen history Colorado's financial position and expand
its impact on the people of the state.
(2) For the 2022-23 state fiscal year, $800,000 is appropriated to the
department of higher education for use by history Colorado. This
appropriation is from the museum and preservation operations account of
the state historical fund created in section 44-30-1201 (5)(c)(I)(B), C.R.S.
To implement this act, history Colorado may use this appropriation as
follows:
(a) $150,000 for central administration;
(b) $160,000 for collections and curatorial services;
(c) $70,000 for the history Colorado center;
(d) $345,000 for statewide programming; and
(e) $75,000 for the office of archaeology and historic preservation.
(3) For the 2022-23 state fiscal year, $1,250,000 is appropriated to
the department of revenue for use by the division of gaming. This
appropriation is from the general fund. To implement this act, the division
PAGE 9-SENATE BILL 22-216 may use this appropriation for distributions to local government limited
gaming recipients pursuant to section 44-30-702.5 (2), C.R.S.
SECTION 6. Safety clause. The general assembly hereby finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Steve Fenberg Alec Garnett
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 10-SENATE BILL 22-216