Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0196.02 Megan McCall x4215
HOUSE BILL 24-1231
House Committees Senate Committees
Health & Human Services
Finance
A BILL FOR AN ACT
C
ONCERNING STATE FUNDING FOR FOUR PROJECTS RELATED TO101
HEALTH SCIENCES EDUCATION PROGRAMS FOR MEDICAL102
PROFESSIONS BEING UNDERTAKEN BY STATE INSTITUTIONS OF103
HIGHER EDUCATION , AND, IN CONNECTION THEREWITH ,104
AUTHORIZING THE STATE TO ISSUE FINANCED PURCHASE OF AN105
ASSET OR CERTIFICATE OF P ARTICIPATION AGREEMENTS TO106
FINANCE A PORTION OF CAPITAL COSTS ASSOCIATED WITH107
CONSTRUCTION OF FACILITI ES FOR THE UNIVERSITY OF108
NORTHERN COLORADO'S COLLEGE OF OSTEOPATHIC MEDICINE ,109
METROPOLITAN STATE UNIVERSITY OF DENVER'S HEALTH110
INSTITUTE TOWER , COLORADO STATE UNIVERSITY 'S111
VETERINARY HEALTH EDUCATION CAMPUS , AND EXPANSION AND112
RENOVATION OF TRINIDAD STATE COLLEGE 'S VALLEY CAMPUS113
HOUSE SPONSORSHIP
Young and Daugherty, Amabile, Boesenecker, Hernandez, Kipp, Bacon, Bird, Bradfield,
Brown, Duran, English, Froelich, Garcia, Hamrick, Joseph, Lieder, Lindsay, Lynch, Mabrey,
Martinez, Mauro, Ortiz, Ricks, Titone, Willford, Winter T.
SENATE SPONSORSHIP
Kirkmeyer and Mullica, Priola, Michaelson Jenet, Pelton B.
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. MAIN BUILDING, AND PROVIDING FUNDING FOR ESCROW MONEY101
THAT IS REQUIRED FOR ACCREDITATION OF THE UNIVERSITY OF102
NORTHERN COLORADO'S COLLEGE OF OSTEOPATHIC MEDICINE103
BY TRANSFERRING MONEY FROM THE GENERAL FUND FOR104
ULTIMATE DEPOSIT TO AN ESCROW ACCOUNT AND REDUCING105
THE STATE RESERVE BY THE SAME AMOUNT FOR THE PERIOD106
DURING WHICH THE MONEY IS HELD IN ESCROW .107
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
.)
The bill requires the state treasurer, on behalf of the state, to
execute, no later than October 31, 2024, financed purchase of an asset or
certificate of participation agreements (financing agreements) to finance
capital costs related to the construction of facilities for 4 state institutions
of higher education. The financing agreements are to be issued in the
aggregate principal amount of $246,936,092 plus reasonable and
necessary administrative, monitoring, and closing costs and interest,
including capitalized interest. The anticipated annual state-funded
payments for the principal and interest components due under the
financing agreements must not exceed $17,500,000 with principal
amortization not occurring before July 1, 2027.
The proceeds from the financing agreements will be used for the
following 4 capital projects:
! Construction of facilities for the university of northern
Colorado's college of osteopathic medicine;
! Construction of a health institute tower by metropolitan
state university of Denver;
! Construction of a veterinary health education complex by
Colorado state university; and
! Renovation of Trinidad state college's valley campus main
building to move nursing and allied health programs into
the building, address deferred maintenance issues, and
create an assembly room that will serve both the college
and the community and a one-stop student services center
to support career and technical education and allied health
students.
HB24-1231-2- The bill also provides for a general fund transfer of $41,250,000
to the university of northern Colorado for deposit into an escrow account
to be held in escrow in accordance with the requirements of the
accrediting body of the college of osteopathic medicine.
If the money in escrow, including interest, is released to the
university of northern Colorado upon graduation of the first cohort from
the college of osteopathic medicine, then the university shall provide
notice of the release of escrow to the joint budget committee of the
general assembly, to the state treasurer, and to the office of state planning
and budgeting. Additionally, for the state fiscal year in which the escrow
money is released, the amount that is to be paid to the university pursuant
to its fee-for-service contract for that state fiscal year is reduced by the
lesser of an amount equal to the amount of the escrow money or an
amount equal to the amount of a portion of the escrow money that reduces
the amount to be paid pursuant to the fee-for-service agreement to zero.
If the amount of the escrow money exceeds the amount due under such
fee-for-service contract, then the amount the university of northern
Colorado would otherwise receive from the college opportunity fund is
reduced by an amount equal to the excess. If, after both reductions, there
remains excess escrow money, then in the next state fiscal year the
amount that is to be paid to the university of northern Colorado pursuant
to its fee-for-service contract for that state fiscal year is reduced by an
amount equal to the amount of the remaining escrow money. The
university of northern Colorado must use the escrow money, or a portion
of it, as applicable, for each applicable reduction as an offset for the
reduction.
If the escrow money is released for failure of the college of
osteopathic medicine to complete accreditation, then the university of
northern Colorado shall provide a report of this to the joint budget
committee of the general assembly, to the state treasurer, and to the office
of state planning and budgeting. For the period that the escrow money is
held in escrow, the amount of unrestricted general fund year-end balances
that must be retained as a reserve is reduced by $41,250,000.
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) The state is facing a physician shortage, and a rapidly growing4
population and an aging physician workforce have created a current and5
future demonstrated need for more physicians to serve Colorado6
HB24-1231-3- communities;1
(b) The physician shortage is felt most acutely in rural and other2
underserved communities;3
(c) With an increasing disparity between the demand for and4
supply of physicians, there is an urgent need for medical education5
programs to begin work now to train providers;6
(d) This is particularly critical because physician training can take7
up to a decade, meaning a physician shortage in 2034 is a problem that8
needs to be addressed today;9
(e) To address this critical issue, the University of Northern10
Colorado is establishing an osteopathic medical college and plans to11
enroll 150 graduate-level medical students in a four-year medical degree12
program every year;13
(f) The osteopathic medical profession has a long tradition of14
providing care where patients lack doctors; and15
(g) Opening the College of Osteopathic Medicine requires capital16
investment for construction of a building and a temporary cash reserve as17
required by the University of Northern Colorado's accrediting body.18
(2) The general assembly further finds and declares that:19
(a) A statement for the Committee on Health, Education, Labor20
and Pensions of the United States Senate made by the American Hospital21
Association on February 16, 2023, stated that there is "a historic22
workforce crisis complete with real-time short-term staffing shortages and23
a daunting long-range picture of an unfulfilled talent pipeline in24
healthcare". This is especially true in Colorado, where workforce25
shortages are at an all-time high and the state is projected to need an26
estimated 10,000 more nurses by 2026.27
HB24-1231
-4- (b) Metropolitan State University of Denver is prepared to meet1
this urgent demand by growing its allied health programs by 25%,2
enrolling nearly 7,000 students by 2030 who will go on to deliver care in3
critical areas, such as mental and behavioral health, nursing, social work,4
and speech, language, and hearing sciences;5
(c) As such, Metropolitan State University of Denver has6
identified an opportunity to address the urgent labor market needs by7
creating interdisciplinary learning spaces for aspiring health-care8
professionals, allowing for growth of the university's programs that serve9
this sector;10
(d) To accomplish this, Metropolitan State University of Denver's11
Health Institute will begin construction of a new facility, the Health12
Institute Tower, that will grow the health-care workforce through13
innovation, increased instructional and training capacity, and expansion14
of programs in high-need health-care-related areas;15
(e) In addition, the Health Institute Tower will advance and retain16
Colorado's health-care workers through interdisciplinary training,17
education, and industry partnerships, all while delivering health and18
wellness services to surrounding communities; and19
(f) The Health Institute Tower will enable average enrollment20
growth of 25% across all 10 healthcare-focused academic departments at21
the university, which disciplines are all experiencing greater demand and22
will be positioned to grow enrollment due to additional square footage for23
instruction and training and greater efficiencies provided by the Health24
Institute Tower.25
(3) The general assembly further finds and declares that:26
(a) Colorado State University has led innovations in veterinary27
HB24-1231
-5- education, animal care, biomedical discovery, and public health and now1
must adapt its delivery of education and modernize its facilities through2
a new veterinary health education complex;3
(b) The veterinary health education complex will be a4
one-of-a-kind complex with educational, clinical, and research capacity5
serving society's evolving relationship with animals as companions,6
livestock, and wildlife;7
(c) Colorado State University's current veterinary education8
facilities are outdated and not large enough to meet the increasing needs9
of students and the state;10
(d) The veterinary health education complex will address the11
shortage of veterinarians and those who can care for animals with new12
facilities for integrated education, clinical practice, and applicable13
research in one location; will provide upgraded technology and facilities14
to educate, retain, and graduate veterinarians; and will allow for best15
practices in health education to be realized by employing experiential16
learning strategies with state-of-the-art laboratories, simulation skill labs,17
active learning classrooms, and clinical experiences; and18
(e) The project will allow Colorado State University to increase19
veterinary student enrollment by potentially 20%, with the incoming20
first-year class helping to alleviate the severe workforce shortage in the21
field of veterinary medicine.22
(4) The general assembly further finds and declares that:23
(a) Trinidad state college's valley campus has origins back to24
1936, serves approximately 500 career and technical students annually,25
and had its last major renovation to a portion of the campus' main26
building over 23 years ago;27
HB24-1231
-6- (b) The provision of allied health certificate and degree programs1
is critical to serving the health-care needs of Alamosa, Colorado, and its2
surrounding communities, which face shortages in critical health-care3
personnel;4
(c) The renovation of the campus' main building will add a5
two-story addition to the building that will allow for critical allied health6
programs including those for nursing, emergency medical technicians,7
dental assisting, and medical assisting to move into the main building8
from the program's current condition-challenged space and significantly9
support student success initiatives and regional workforce needs;10
(d) The campus services over 130 allied health students annually,11
and the renovation project will expand capacity of the allied health12
programs offered at the campus by as much as 50% in nursing, nursing13
aide, emergency medical technician, medical assisting, and dental14
assisting programs; and15
(e) The renovation project will also address much needed deferred16
maintenance issues of the campus' main building, will create an assembly17
space to serve both the college and community, and will allow critical18
student services, including services that assist students from19
disadvantaged backgrounds, to move to a more student-accessible20
location in the building, thereby providing better access to these services21
for allied health program students and the student body as a whole.22
(5) The general assembly further finds and declares that financing23
the capital construction needs of the University of Northern Colorado's24
College of Osteopathic Medicine, the Metropolitan State University of25
Denver's Health Institute Tower, Colorado State University's veterinary26
health and education complex, and Trinidad State College's valley27
HB24-1231
-7- campus main building renovation will, in part, come from the state1
through execution of one or more financed purchase of an asset or2
certificate of participation agreements, which, while each project is3
separate, may be executed in connection with each other.4
SECTION 2. In Colorado Revised Statutes, add 24-36-124 as5
follows:6
24-36-124. Financed purchase of an asset or certificate of7
participation agreements - fund capital costs related projects at four8
institutions of higher education - definitions. (1) A
S USED IN THIS9
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :10
(a) "A
GREEMENT" MEANS ONE OR MORE FINANCED PURCHASE OF11
AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS EXECUTED AS12
REQUIRED BY SUBSECTION (2)(a) OF THIS SECTION.13
(b) "A
PPLICABLE BOARD" MEANS EITHER:14
(I) T
HE BOARD OF TRUSTEES FOR THE UNIVERSITY OF NORTHERN15
C
OLORADO ESTABLISHED PURSUANT TO SECTION 23-40-104 (1)(a);16
(II) T
HE BOARD OF TRUSTEES FOR METROPOLITAN STATE17
UNIVERSITY OF DENVER ESTABLISHED PURSUANT TO SECTION 23-54-10218
(1)(a);19
(III) T
HE BOARD OF GOVERNORS OF THE COLORADO STATE20
UNIVERSITY SYSTEM ESTABLISHED PURSUANT TO SECTION 23-30-10121
(1)(a);
OR22
(IV) T
HE STATE BOARD FOR COMMUNITY COLLEGES AND23
OCCUPATIONAL EDUCATION CREATED IN SECTION 23-60-104 (1)(b).24
(2) (a) N
OTWITHSTANDING THE PROVISIONS OF SECTIONS25
24-82-102 (1)(b)
AND 24-82-801, AND PURSUANT TO SECTION 24-36-121,26
NO LATER THAN OCTOBER 31, 2024, THE STATE, ACTING BY AND THROUGH27
HB24-1231
-8- THE STATE TREASURER , SHALL EXECUTE AN AGREEMENT FOR THE1
PURPOSES DESCRIBED IN SUBSECTION (4) OF THIS SECTION, THE TOTAL2
AMOUNT OF THE PRINCIPAL OF WHICH AGREEMENT SHALL NOT EXCEED3
TWO HUNDRED FORTY-SIX MILLION NINE HUNDRED THIRTY-SIX THOUSAND4
NINETY-TWO DOLLARS , PLUS REASONABLE AND NECESSARY5
ADMINISTRATIVE, MONITORING, AND CLOSING COSTS AND INTEREST ,6
INCLUDING CAPITALIZED INTEREST.7
(b) T
HE ANTICIPATED ANNUAL STATE-FUNDED PAYMENTS FOR THE8
PRINCIPAL AND INTEREST COMPONENTS OF THE AMOUNT PAYABLE UNDER9
AN AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2)(a) OF THIS10
SECTION SHALL NOT EXCEED SEVENTEEN MILLION FIVE HUNDRED11
THOUSAND DOLLARS, WITH PRINCIPAL AMORTIZATION NOT OCCURRING12
BEFORE JULY 1, 2027.13
(c) T
HE STATE, ACTING BY AND THROUGH THE STATE TREASURER ,14
AT THE STATE TREASURER 'S SOLE DISCRETION, MAY ENTER INTO AN15
AGREEMENT AUTHORIZED BY SUBSECTION (2)(a) OF THIS SECTION WITH16
ANY FOR-PROFIT OR NONPROFIT CORPORATION , TRUST, OR COMMERCIAL17
BANK ACTING AS A TRUSTEE AS THE LESSOR .18
(d) T
HE AGREEMENT MUST PROVIDE THAT ALL OF THE19
OBLIGATIONS OF THE STATE UNDER THE AGREEMENT ARE SUBJECT TO THE20
ACTION OF THE GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY21
AVAILABLE FOR ALL PAYMENTS THEREUNDER . PAYMENTS UNDER THE22
AGREEMENT MUST BE MADE SUBJECT TO ANNUAL APPROPRIATION BY THE23
GENERAL ASSEMBLY, AS APPLICABLE, FROM THE GENERAL FUND OR FROM24
ANY OTHER LEGALLY AVAILABLE SOURCE OF MONEY .25
(e) T
HE AGREEMENT MUST ALSO PROVIDE THAT THE OBLIGATIONS26
OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY27
HB24-1231
-9- PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR1
LIMITING THE CREATION OF STATE DEBT AND ARE NOT A MULTIPLE2
FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION3
OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF4
THE STATE CONSTITUTION . IF THE STATE DOES NOT RENEW THE5
AGREEMENT, THE SOLE SECURITY AVAILABLE TO THE LESSOR IS THE6
PROPERTY THAT IS THE SUBJECT OF THE NONRENEWED AGREEMENT .7
(f) (I) T
HE AGREEMENT MAY CONTAIN SUCH TERMS , PROVISIONS,8
AND CONDITIONS AS THE STATE TREASURER , ACTING ON BEHALF OF THE9
STATE, DEEMS APPROPRIATE, INCLUDING ALL OPTIONAL TERMS; EXCEPT10
THAT THE AGREEMENT MUST SPECIFICALLY AUTHORIZE THE STATE OR THE11
APPLICABLE BOARD TO RECEIVE FEE TITLE TO ALL REAL AND PERSONAL12
PROPERTY THAT IS THE SUBJECT OF THE AGREEMENT ON OR BEFORE THE13
EXPIRATION OF THE TERMS OF THE AGREEMENT .14
(II) T
HE STATE TREASURER, ACTING ON BEHALF OF THE STATE, HAS15
THE AUTHORITY TO DETERMINE WHAT COLLATERAL TO USE FOR THE16
AGREEMENT AS THE STATE TREASURER DEEMS APPROPRIATE .17
(g) T
HE AGREEMENT MAY PROVIDE FOR THE ISSUANCE ,18
DISTRIBUTION, AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO19
RECEIVE RENTALS AND OTHER PAYMENTS MADE AND TO BE MADE UNDER20
THE AGREEMENT. THE INSTRUMENTS MAY BE ISSUED , DISTRIBUTED, OR21
SOLD ONLY BY THE LESSOR OR ANY PERSON DESIGNATED BY THE LESSOR22
AND NOT BY THE STATE . THE INSTRUMENTS DO NOT CREATE A23
RELATIONSHIP BETWEEN THE PURCHASERS OF THE INSTRUMENTS AND THE24
STATE OR CREATE ANY OBLIGATION ON THE PART OF THE STATE TO THE25
PURCHASERS. THE INSTRUMENTS ARE NOT A NOTE, BOND, OR ANY OTHER26
EVIDENCE OF STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE27
HB24-1231
-10- STATE CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE1
CREATION OF STATE DEBT AND ARE NOT A MULTIPLE FISCAL -YEAR DIRECT2
OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE3
WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE4
CONSTITUTION.5
(h) I
NTEREST PAID UNDER AN AGREEMENT AUTHORIZED PURS UANT6
TO SUBSECTION (2)(a) OF THIS SECTION, INCLUDING INTEREST7
REPRESENTED BY THE INSTRUMENTS , IS EXEMPT FROM COLORADO INCOME8
TAX.9
(i) T
HE STATE, ACTING BY AND THE THROUGH THE STATE10
TREASURER AND THE APPLICABLE BOARD , IS AUTHORIZED TO ENTER INTO11
ANCILLARY AGREEMENTS AND INSTRUMENTS THAT ARE NECESSARY OR12
APPROPRIATE IN CONNECTION WITH AN AGREEMENT , INCLUDING BUT NOT13
LIMITED TO DEEDS, GROUND LEASES, SUB-LEASES, EASEMENTS, OR OTHER14
INSTRUMENTS RELATED TO THE REAL PROPERTY ON WHICH THE FACILITIES15
ARE LOCATED.16
(j) T
HE PROVISIONS OF SECTION 24-30-202 (5)(b) DO NOT APPLY17
TO AN AGREEMENT OR TO ANY ANCILLARY AGREEMENT OR INSTRUMENT18
ENTERED INTO PURSUANT TO THIS SUBSECTION (2). THE STATE19
CONTROLLER OR THEIR DESIGNEE SHALL WAIVE ANY PROVISION OF THE20
FISCAL RULES PROMULGATED PURSUANT TO SECTIONS 24-30-202 (1) AND21
(13)
THAT THE STATE CONTROLLER FINDS INCOMPATIBLE OR INAPPLICABLE22
WITH RESPECT TO AN AGREEMENT OR AN ANCILLARY AGREEMENT OR23
INSTRUMENT.24
(3) (a) B
EFORE EXECUTING THE AGREEMENT , IN ORDER TO25
PROTECT AGAINST FUTURE INTEREST RATE INCREASES , THE STATE, ACTING26
BY AND THROUGH THE STATE TREASURER AND AT THE DISCRETION OF THE27
HB24-1231
-11- STATE TREASURER, MAY ENTER INTO AN INTEREST RATE EXCHANGE1
AGREEMENT PURSUANT TO ARTICLE 59.3 OF TITLE 11. SUCH INTEREST2
RATE EXCHANGE AGREEMENT IS A PROPOSED PUBLIC SECURITY FOR THE3
PURPOSES OF ARTICLE 59.3 OF TITLE 11. ANY PAYMENTS MADE BY THE4
STATE UNDER AN INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO5
PURSUANT TO THIS SUBSECTION (3) MUST BE MADE SOLELY FROM MONEY6
AVAILABLE TO THE STATE TREASURER FROM THE EXECUTION OF THE7
AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS8
SECTION OR FROM MONEY DESCRIBED IN SUBSECTION (2)(d) OF THIS9
SECTION.10
(b) A
N INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO11
PURSUANT TO THIS SUBSECTION (3) MUST ALSO PROVIDE THAT THE12
OBLIGATIONS OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE13
MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW14
CONCERNING OR LIMITING THE CREATION OF STATE DEBT OR ANY15
MULTIPLE FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL16
OBLIGATION OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF17
ARTICLE X OF THE STATE CONSTITUTION.18
(c) A
NY MONEY RECEIVED BY THE STATE UNDER AN INTEREST19
RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS20
SUBSECTION (3) MUST BE USED TO MAKE PAYMENTS ON AN AGREEMENT21
ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION OR TO PAY22
THE COSTS RELATED TO THE PURPOSES SET FORTH IN SUBSECTION (4) OF23
THIS SECTION FOR WHICH AN AGREEMENT WAS EXECUTED .24
(4) T
HE PROCEEDS OF AN AGREEMENT ENTERED INTO PURSUANT25
TO SUBSECTION (2)(a) OF THIS SECTION MUST BE USED TO FUND CAPITAL26
CONSTRUCTION COSTS RELATED TO THE CONSTRUCTION OF THE27
HB24-1231
-12- FOLLOWING FACILITIES FOR THE FOLLOWING INSTITUTIONS OF HIGHER1
EDUCATION:2
(a) U
NIVERSITY OF NORTHERN COLORADO'S COLLEGE OF3
OSTEOPATHIC MEDICINE;4
(b) M
ETROPOLITAN STATE UNIVERSITY OF DENVER'S HEALTH5
INSTITUTE TOWER THAT WILL INCREASE HEALTH -CARE-RELATED6
INSTRUCTIONAL AND TRAINING CAPACITY AND EXPAND PROGRAMS IN7
HIGH-NEED AREAS RELATED TO HEALTH CARE ;8
(c) C
OLORADO STATE UNIVERSITY 'S VETERINARY HEALTH AND9
EDUCATION COMPLEX; AND10
(d) T
RINIDAD STATE COLLEGE'S VALLEY CAMPUS MAIN BUILDING11
RENOVATION THAT WILL INCREASE CAPACITY TO PROVIDE ALLIED HEALTH12
CERTIFICATE AND DEGREE PROGRAMS , ADDRESS DEFERRED MAINTENANCE ,13
CREATE AN ASSEMBLY SPACE TO SERVE THE COLLEGE AND COMMUNITY ,14
AND ALLOW CRITICAL STUDENT SERVICES TO MOVE TO A MORE15
STUDENT-ACCESSIBLE LOCATION WITHIN THE BUILDING .16
SECTION 3. In Colorado Revised Statutes, 24-75-201.1, amend17
(1)(d)(XXIII) as follows:18
24-75-201.1. Restriction on state appropriations - legislative19
declaration - definitions. (1) (d) For each fiscal year, unrestricted20
general fund year-end balances must be retained as a reserve in the21
following amounts:22
(XXIII) (A) E
XCEPT AS OTHERWISE PROVIDED IN SUBSECTION23
(1)(d)(XXIII)(B)
OF THIS SECTION, for the fiscal year 2022-23, and each24
fiscal year thereafter, fifteen percent of the amount appropriated for25
expenditure from the general fund for that fiscal year.26
(B) F
OR THE FISCAL YEAR 2023-24 AND EACH FISCAL YEAR27
HB24-1231
-13- THEREAFTER UNTIL THE ESCROW MONEY IS RELEASED AS SET FORTH IN1
SECTION 23-40-107, FIFTEEN PERCENT OF THE AMOUNT APPROPRIATED FOR2
EXPENDITURE FROM THE GENERAL FUND FOR THAT FISCAL YEAR REDUCED3
BY FORTY-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS . AS4
USED IN THIS SUBSECTION (1)(d)(XXIII)(B), "ESCROW MONEY" HAS THE5
SAME MEANING AS SET FORTH IN SECTION 23-40-107 (1)(c).6
SECTION 4. In Colorado Revised Statutes, add 23-40-107 as7
follows:8
23-40-107. Escrow requirement for accreditation of college of9
osteopathic medicine - cash fund - offset to appropriation - legislative10
declaration - report - definitions - repeal. (1) T
HE GENERAL ASSEMBLY11
FINDS AND DECLARES THAT:12
(a) T
HE ACCREDITATION BODY FOR THE COLLEGE OF OSTEOPATHIC13
MEDICINE OF THE UNIVERSITY OF NORTHERN COLORADO REQUIRES THAT14
THE UNIVERSITY DEPOSIT MONEY INTO AN ESCROW ACCOUNT TO BE HELD15
AND RELEASED ONLY UPON EITHER THE :16
(I) F
AILURE OF THE COLLEGE TO COMPLETE ACCREDITATION ; OR17
(II) G
RADUATION OF THE FIRST COHORT FROM THE COLLEGE ;18
(b) M
ONEY FOR THE ESCROW IS FROM A TRANSFER OF GENERAL19
FUND MONEY TO THE UNIVERSITY IN THE AMOUNT REQUIRED BY THE20
ACCREDITATION BODY;21
(c) I
N CONNECTION WITH THE TRANSFER OF MONEY FROM THE22
GENERAL FUND TO SATISFY THE ACCREDITATION BODY 'S ESCROW23
REQUIREMENTS, THERE IS A TEMPORARY REDUCTION IN THE STATE'S CASH24
RESERVE SET FORTH IN SECTION 24-75-201.1, WHICH IS A STRATEGIC25
INVESTMENT OF A SMALL PORTION OF THE REQUIRED STATUTORY RESERVE26
IN THE GENERAL FUND TO REDUCE COSTS OF THE UNIVERSITY REQUIRED27
HB24-1231
-14- FOR ACCREDITATION OF THE COLLEGE WHILE ENSURING THAT THE STATE1
MAXIMIZES THE BENEFIT OF THE HISTORIC AND IMPORTANT LEVELS2
MAINTAINED AS RESERVES IN THE GENERAL FUND ;3
(d) D
URING THE PERIOD THAT THE MONEY IS HELD IN ESCROW , THE4
TRANSACTION OF GENERAL FUND MONEY IS A NON -EXCHANGE5
TRANSACTION WITH A LONG-TERM TIME COMPONENT WHICH CONSTITUTES6
DEFERRED OUTFLOW OF RESOURCES BY THE STATE AND DEFERRED INFLOW7
OF RESOURCES BY THE UNIVERSITY , THE PRINCIPAL OF WHICH IS NOT8
RECOGNIZED AS REVENUE OR EXPENSE UNTIL REC OGNITION OF THE MONEY9
WHEN IT IS RELEASED FROM ESCROW ;10
(e) I
F THE MONEY, INCLUDING ANY EARNED INTEREST, IS RELEASED11
FROM ESCROW UPON THE GRADUATION OF THE FIRST COHORT FROM THE12
COLLEGE, THE UNIVERSITY INTENDS TO RETAIN THE MONEY AND THE13
GENERAL ASSEMBLY INTENDS TO REDUCE ALL OR A PORTION OF THE TOTAL14
STATE APPROPRIATION TO THE UNIVERSITY FOR THE FISCAL YEAR IN WHICH15
THE MONEY IS RELEASED FROM ESCROW , AND FOR SUBSEQUENT FISCAL16
YEARS AS NEEDED, BY AN EQUIVALENT AMOUNT ; AND17
(f) T
HE RETENTION BY THE UNIVERSITY OF NORTHERN COLORADO18
OF THE MONEY RELEASED FROM ESCROW IS NOT INTENDED TO AFFECT OR19
IN ANY WAY MODIFY OR OTHERWISE IMPACT THE HIGHER EDUCATION20
FUNDING ALLOCATION MODEL ESTABLISHED IN ARTICLE 18 OF THIS TITLE21
23.22
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
REQUIRES:24
(a) "C
OLLEGE" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE25
OF THE UNIVERSITY.26
(b) "E
SCROW ACCOUNT" MEANS THE ACCOUNT ESTABLISHED AND27
HB24-1231
-15- GOVERNED BY AN ESCROW AGREEMENT THAT IS ENTERED INTO BETWEEN1
AN ESCROW AGENT, THE ACCREDITING BODY FOR THE COLLEGE , AND THE2
UNIVERSITY TO RECEIVE AND HOLD THE ESCROW MONEY .3
(c) "E
SCROW MONEY" MEANS THE MONEY THAT IS DEPOSITED AND4
HELD IN THE ESCROW ACCOUNT AND RELEASED TO THE UNIVERSITY UPON5
EITHER THE FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION OR6
THE GRADUATION OF THE FIRST COHORT FROM THE COLLEGE , INCLUDING7
ANY EARNED INTEREST OR INVESTMENT INCOME .8
(d) "F
UND" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE9
ESCROW MONEY CASH FUND CREATED IN SUBSECTION (3)(a) OF THIS10
SECTION.11
(e) "U
NIVERSITY" MEANS THE UNIVERSITY OF NORTHERN12
C
OLORADO.13
(3) (a) T
HE COLLEGE OF OSTEOPATHIC MEDICINE ESCROW MONEY14
CASH FUND IS CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF15
MONEY TRANSFERRED TO THE FUND PURSUANT TO SUBSECTION (3)(b) OF16
THIS SECTION.17
(b) O
N OR BEFORE JUNE 30, 2024, THE STATE TREASURER SHALL18
TRANSFER FORTY-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS19
FROM THE GENERAL FUND TO THE FUND .20
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE21
UNIVERSITY FOR THE PURPOSE OF THE UNIVERSITY DEPOSITING THE MONEY22
INTO THE ESCROW ACCOUNT TO SATISFY NECESSARY COSTS IN23
ACCORDANCE WITH THE ACCREDITING B ODY OF THE COLLEGE 'S RULES AND24
REGULATIONS FOR OPERATING RESERVE AND ESCROW RESERVE25
REQUIREMENTS.26
(d) T
HIS SUBSECTION (3) IS REPEALED, EFFECTIVE DECEMBER 31,27
HB24-1231
-16- 2025.1
(4) I
F THE ESCROW MONEY IS RELEASED TO THE UNIVERSITY DUE2
TO FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION , THE3
UNIVERSITY SHALL PROVIDE A REPORT TO THE JOINT BUDGET COMMITTEE4
OF THE GENERAL ASSEMBLY, THE STATE TREASURER, AND THE OFFICE OF5
STATE PLANNING AND BUDGETING WITHIN TEN DAYS OF THE RELEASE OF6
THE ESCROW MONEY THAT SETS FORTH THE CIRCUMSTANCES FOR THE7
RELEASE OF THE ESCROW MONEY AND INFORMATION CONCERNING THE USE8
OF THE ESCROW MONEY BY THE UNIVERSITY AS REQUIRED BY THE9
ACCREDITATION BODY TO PAY OPERATING AND TEACH OUT COSTS OF10
STUDENTS OF THE COLLEGE.11
(5) (a) W
ITHIN TEN DAYS OF RECEIPT OF NOTICE FROM THE12
ACCREDITATION BODY THAT THE ESCROW MONEY WILL BE RELEASED TO13
THE UNIVERSITY IN ACCORDANCE WITH THE REQUIREMENTS AND14
CONDITIONS OF ACCREDITATION BEI NG MET FOR THE GRADUATION OF THE15
FIRST COHORT OF THE COLLEGE, THE UNIVERSITY SHALL PROVIDE NOTICE16
OF THE SAME TO THE JOINT BUDGET COMMITTEE OF THE GENERAL17
ASSEMBLY, THE STATE TREASURER, AND THE OFFICE OF STATE PLANNING18
AND BUDGETING.19
(b) F
OR THE STATE FISCAL YEAR IN WHICH THE ESCROW MONEY20
WILL BE RELEASED TO THE UNIVERSITY FOR THE REASON SET FORTH IN21
SUBSECTION (5)(a) OF THIS SECTION, THE AMOUNT TO BE PAID TO THE22
UNIVERSITY PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT23
NEGOTIATED PURSUANT TO SECTION 23-18-303.5 FOR THAT STATE FISCAL24
YEAR IS REDUCED BY THE LESSER OF THE AMOUNT OF THE ESCROW MONEY25
OR THE AMOUNT OF A PORTION OF THE ESCROW MONEY THAT REDUCES THE26
AMOUNT TO BE PAID PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT TO27
HB24-1231
-17- ZERO, AND THE UNIVERSITY SHALL USE THE ESCROW MONEY , OR A1
PORTION OF IT, AS APPLICABLE, TO OFFSET THE REDUCTION.2
(c) I
F THERE IS ESCROW MONEY REMAINING AFTER THE OFFSET3
REQUIRED BY SUBSECTION (5)(b) OF THIS SECTION IS MADE, THEN MONEY4
THAT THE UNIVERSITY WOULD OTHERWISE RECEIVE FROM THE COLLEGE5
OPPORTUNITY FUND IS REDUCED BY THE LESSER OF THE AMOUNT OF THE6
REMAINING ESCROW MONEY OR THE AMOUNT OF A PORTION OF THE7
REMAINING ESCROW MONEY THAT REDUCES THE MONEY THE UNIVERSITY8
WOULD OTHERWISE RECEIVE FROM THE COLLEGE OPPORTUNITY FUND TO9
ZERO, AND THE UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY ,10
OR A PORTION OF IT, AS APPLICABLE, TO OFFSET THE REDUCTION.11
(d) I
F, AFTER THE OFFSETS REQUIRED BY SUBSECTIONS (5)(b) AND12
(5)(c)
OF THIS SECTION, THERE REMAINS ANY EXCESS ESCROW MONEY ,13
THEN IN THE NEXT STATE FISCAL YEAR, THE AMOUNT TO BE PAID TO THE14
UNIVERSITY PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT15
NEGOTIATED PURSUANT TO SECTION 23-18-303.5 FOR THAT STATE FISCAL16
YEAR IS REDUCED BY THE AMOUNT OF ANY EXCESS ESCROW MONEY AND17
THE UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY TO OFFSET18
THE REDUCTION.19
SECTION 5. Safety clause. The general assembly finds,20
determines, and declares that this act is necessary for the immediate21
preservation of the public peace, health, or safety or for appropriations for22
the support and maintenance of the departments of the state and state23
institutions.24
HB24-1231
-18-