Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 24-0196.02 Megan McCall x4215
HOUSE BILL 24-1231
House Committees Senate Committees
Health & Human Services Finance
Finance Appropriations
Appropriations
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
SENATE
3rd Reading Unamended
April 26, 2024
SENATE
2nd Reading Unamended
April 25, 2024
HOUSE
3rd Reading Unamended
April 17, 2024
HOUSE
Amended 2nd Reading
April 15, 2024
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., Clifford, Epps, Herod, Marvin,
McCluskie, McCormick, Parenti, Rutinel, Snyder, Taggart, Valdez, Velasco, Vigil, Woodrow
SENATE SPONSORSHIP
Kirkmeyer and Mullica, Priola, Michaelson Jenet, Pelton B., Bridges, Buckner, Cutter,
Exum, Fenberg, Fields, Ginal, Hansen, Jaquez Lewis, Kolker, Roberts, Simpson, Zenzinger
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, 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, AND MAKING107
AN APPROPRIATION.108
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
1231-2- students.
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
1231-3- future demonstrated need for more physicians to serve Colorado1
communities;2
(b) The physician shortage is felt most acutely in rural and other3
underserved communities;4
(c) With an increasing disparity between the demand for and5
supply of physicians, there is an urgent need for medical education6
programs to begin work now to train providers;7
(d) This is particularly critical because physician training can take8
up to a decade, meaning a physician shortage in 2034 is a problem that9
needs to be addressed today;10
(e) To address this critical issue, the University of Northern11
Colorado is establishing an osteopathic medical college and plans to12
enroll 150 graduate-level medical students in a four-year medical degree13
program every year;14
(f) The osteopathic medical profession has a long tradition of15
providing care where patients lack doctors; and16
(g) Opening the College of Osteopathic Medicine requires capital17
investment for construction of a building and a temporary cash reserve as18
required by the University of Northern Colorado's accrediting body.19
(2) The general assembly further finds and declares that:20
(a) A statement for the Committee on Health, Education, Labor21
and Pensions of the United States Senate made by the American Hospital22
Association on February 16, 2023, stated that there is "a historic23
workforce crisis complete with real-time short-term staffing shortages and24
a daunting long-range picture of an unfulfilled talent pipeline in25
healthcare". This is especially true in Colorado, where workforce26
shortages are at an all-time high and the state is projected to need an27
1231
-4- estimated 10,000 more nurses by 2026.1
(b) Metropolitan State University of Denver is prepared to meet2
this urgent demand by growing its allied health programs by 25%,3
enrolling nearly 7,000 students by 2030 who will go on to deliver care in4
critical areas, such as mental and behavioral health, nursing, social work,5
and speech, language, and hearing sciences;6
(c) As such, Metropolitan State University of Denver has7
identified an opportunity to address the urgent labor market needs by8
creating interdisciplinary learning spaces for aspiring health-care9
professionals, allowing for growth of the university's programs that serve10
this sector;11
(d) To accomplish this, Metropolitan State University of Denver's12
Health Institute will begin construction of a new facility, the Health13
Institute Tower, that will grow the health-care workforce through14
innovation, increased instructional and training capacity, and expansion15
of programs in high-need health-care-related areas;16
(e) In addition, the Health Institute Tower will advance and retain17
Colorado's health-care workers through interdisciplinary training,18
education, and industry partnerships, all while delivering health and19
wellness services to surrounding communities; and20
(f) The Health Institute Tower will enable average enrollment21
growth of 25% across all 10 healthcare-focused academic departments at22
the university, which disciplines are all experiencing greater demand and23
will be positioned to grow enrollment due to additional square footage for24
instruction and training and greater efficiencies provided by the Health25
Institute Tower.26
(3) The general assembly further finds and declares that:27
1231
-5- (a) Colorado State University has led innovations in veterinary1
education, animal care, biomedical discovery, and public health and now2
must adapt its delivery of education and modernize its facilities through3
a new veterinary health education complex;4
(b) The veterinary health education complex will be a5
one-of-a-kind complex with educational, clinical, and research capacity6
serving society's evolving relationship with animals as companions,7
livestock, and wildlife;8
(c) Colorado State University's current veterinary education9
facilities are outdated and not large enough to meet the increasing needs10
of students and the state;11
(d) The veterinary health education complex will address the12
shortage of veterinarians and those who can care for animals with new13
facilities for integrated education, clinical practice, and applicable14
research in one location; will provide upgraded technology and facilities15
to educate, retain, and graduate veterinarians; and will allow for best16
practices in health education to be realized by employing experiential17
learning strategies with state-of-the-art laboratories, simulation skill labs,18
active learning classrooms, and clinical experiences; and19
(e) The project will allow Colorado State University to increase20
veterinary student enrollment by potentially 20%, with the incoming21
first-year class helping to alleviate the severe workforce shortage in the22
field of veterinary medicine.23
(4) The general assembly further finds and declares that:24
(a) Trinidad state college's valley campus has origins back to25
1936, serves approximately 500 career and technical students annually,26
and had its last major renovation to a portion of the campus' main27
1231
-6- building over 23 years ago;1
(b) The provision of allied health certificate and degree programs2
is critical to serving the health-care needs of Alamosa, Colorado, and its3
surrounding communities, which face shortages in critical health-care4
personnel;5
(c) The renovation of the campus' main building will add a6
two-story addition to the building that will allow for critical allied health7
programs including those for nursing, emergency medical technicians,8
dental assisting, and medical assisting to move into the main building9
from the program's current condition-challenged space and significantly10
support student success initiatives and regional workforce needs;11
(d) The campus services over 130 allied health students annually,12
and the renovation project will expand capacity of the allied health13
programs offered at the campus by as much as 50% in nursing, nursing14
aide, emergency medical technician, medical assisting, and dental15
assisting programs; and16
(e) The renovation project will also address much needed deferred17
maintenance issues of the campus' main building, will create an assembly18
space to serve both the college and community, and will allow critical19
student services, including services that assist students from20
disadvantaged backgrounds, to move to a more student-accessible21
location in the building, thereby providing better access to these services22
for allied health program students and the student body as a whole.23
(5) The general assembly further finds and declares that financing24
the capital construction needs of the University of Northern Colorado's25
College of Osteopathic Medicine, the Metropolitan State University of26
Denver's Health Institute Tower, Colorado State University's veterinary27
1231
-7- health and education complex, and Trinidad State College's valley1
campus main building renovation will, in part, come from the state2
through execution of one or more financed purchase of an asset or3
certificate of participation agreements, which, while each project is4
separate, may be executed in connection with each other.5
SECTION 2. In Colorado Revised Statutes, add 24-36-124 as6
follows:7
24-36-124. Financed purchase of an asset or certificate of8
participation agreements - fund capital costs related projects at four9
institutions of higher education - definitions. (1) A
S USED IN THIS10
SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :11
(a) "A
GREEMENT" MEANS ONE OR MORE FINANCED PURCHASE OF12
AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS EXECUTED AS13
REQUIRED BY SUBSECTION (2)(a) OF THIS SECTION.14
(b) "A
PPLICABLE BOARD" MEANS EITHER:15
(I) T
HE BOARD OF TRUSTEES FOR THE UNIVERSITY OF NORTHERN16
C
OLORADO ESTABLISHED PURSUANT TO SECTION 23-40-104 (1)(a);17
(II) T
HE BOARD OF TRUSTEES FOR METROPOLITAN STATE18
UNIVERSITY OF DENVER ESTABLISHED PURSUANT TO SECTION 23-54-10219
(1)(a);20
(III) T
HE BOARD OF GOVERNORS OF THE COLORADO STATE21
UNIVERSITY SYSTEM ESTABLISHED PURSUANT TO SECTION 23-30-10122
(1)(a);
OR23
(IV) T
HE STATE BOARD FOR COMMUNITY COLLEGES AND24
OCCUPATIONAL EDUCATION CREATED IN SECTION 23-60-104 (1)(b).25
(2) (a) N
OTWITHSTANDING THE PROVISIONS OF SECTIONS26
24-82-102 (1)(b)
AND 24-82-801, AND PURSUANT TO SECTION 24-36-121,27
1231
-8- NO LATER THAN DECEMBER 31, 2024, THE STATE, ACTING BY AND1
THROUGH THE STATE TREASURER , SHALL EXECUTE AN AGREEMENT FOR2
THE PURPOSES DESCRIBED IN SUBSECTION (4) OF THIS SECTION, THE TOTAL3
AMOUNT OF THE PRINCIPAL OF WHICH AGREEMENT SHALL NOT EXCEED4
TWO HUNDRED FORTY-SIX MILLION NINE HUNDRED THIRTY-SIX THOUSAND5
NINETY-TWO DOLLARS , PLUS REASONABLE AND NECESSARY6
ADMINISTRATIVE, MONITORING, AND CLOSING COSTS AND INTEREST ,7
INCLUDING CAPITALIZED INTEREST.8
(b) T
HE ANTICIPATED ANNUAL STATE-FUNDED PAYMENTS FOR THE9
PRINCIPAL AND INTEREST COMPONENTS OF THE AMOUNT PAYABLE UNDER10
AN AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2)(a) OF THIS11
SECTION SHALL NOT EXCEED SEVENTEEN MILLION FIVE HUNDRED12
THOUSAND DOLLARS, WITH PRINCIPAL AMORTIZATION NOT OCCURRING13
BEFORE JULY 1, 2027.14
(c) T
HE STATE, ACTING BY AND THROUGH THE STATE TREASURER ,15
AT THE STATE TREASURER 'S SOLE DISCRETION, MAY ENTER INTO AN16
AGREEMENT AUTHORIZED BY SUBSECTION (2)(a) OF THIS SECTION WITH17
ANY FOR-PROFIT OR NONPROFIT CORPORATION , TRUST, OR COMMERCIAL18
BANK ACTING AS A TRUSTEE AS THE LESSOR .19
(d) T
HE AGREEMENT MUST PROVIDE THAT ALL OF THE20
OBLIGATIONS OF THE STATE UNDER THE AGREEMENT ARE SUBJECT TO THE21
ACTION OF THE GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY22
AVAILABLE FOR ALL PAYMENTS THEREUNDER . PAYMENTS UNDER THE23
AGREEMENT MUST BE MADE SUBJECT TO ANNUAL APPROPRIATION BY THE24
GENERAL ASSEMBLY, AS APPLICABLE, FROM THE GENERAL FUND OR FROM25
ANY OTHER LEGALLY AVAILABLE SOURCE OF MONEY .26
(e) T
HE AGREEMENT MUST ALSO PROVIDE THAT THE OBLIGATIONS27
1231
-9- OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY1
PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR2
LIMITING THE CREATION OF STATE DEBT AND ARE NOT A MULTIPLE3
FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION4
OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF5
THE STATE CONSTITUTION . IF THE STATE DOES NOT RENEW THE6
AGREEMENT, THE SOLE SECURITY AVAILABLE TO THE LESSOR IS THE7
PROPERTY THAT IS THE SUBJECT OF THE NONRENEWED AGREEMENT .8
(f) (I) T
HE AGREEMENT MAY CONTAIN SUCH TERMS , PROVISIONS,9
AND CONDITIONS AS THE STATE TREASURER , ACTING ON BEHALF OF THE10
STATE, DEEMS APPROPRIATE, INCLUDING ALL OPTIONAL TERMS; EXCEPT11
THAT THE AGREEMENT MUST SPECIFICALLY AUTHORIZE THE STATE OR THE12
APPLICABLE BOARD TO RECEIVE FEE TITLE TO ALL REAL AND PERSONAL13
PROPERTY THAT IS THE SUBJECT OF THE AGREEMENT ON OR BEFORE THE14
EXPIRATION OF THE TERMS OF THE AGREEMENT .15
(II) T
HE STATE TREASURER, ACTING ON BEHALF OF THE STATE, HAS16
THE AUTHORITY TO DETERMINE WHAT COLLATERAL TO USE FOR THE17
AGREEMENT AS THE STATE TREASURER DEEMS APPROPRIATE .18
(g) T
HE AGREEMENT MAY PROVIDE FOR THE ISSUANCE ,19
DISTRIBUTION, AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO20
RECEIVE RENTALS AND OTHER PAYMENTS MADE AND TO BE MADE UNDER21
THE AGREEMENT. THE INSTRUMENTS MAY BE ISSUED , DISTRIBUTED, OR22
SOLD ONLY BY THE LESSOR OR ANY PERSON DESIGNATED BY THE LESSOR23
AND NOT BY THE STATE . THE INSTRUMENTS DO NOT CREATE A24
RELATIONSHIP BETWEEN THE PURCHASERS OF THE INSTRUMENTS AND THE25
STATE OR CREATE ANY OBLIGATION ON THE PART OF THE STATE TO THE26
PURCHASERS. THE INSTRUMENTS ARE NOT A NOTE, BOND, OR ANY OTHER27
1231
-10- EVIDENCE OF STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE1
STATE CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE2
CREATION OF STATE DEBT AND ARE NOT A MULTIPLE FISCAL -YEAR DIRECT3
OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE4
WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE5
CONSTITUTION.6
(h) I
NTEREST PAID UNDER AN AGREEMENT AUTHORIZED PURS UANT7
TO SUBSECTION (2)(a) OF THIS SECTION, INCLUDING INTEREST8
REPRESENTED BY THE INSTRUMENTS , IS EXEMPT FROM COLORADO INCOME9
TAX.10
(i) T
HE STATE, ACTING BY AND THE THROUGH THE STATE11
TREASURER AND THE APPLICABLE BOARD , IS AUTHORIZED TO ENTER INTO12
ANCILLARY AGREEMENTS AND INSTRUMENTS THAT ARE NECESSARY OR13
APPROPRIATE IN CONNECTION WITH AN AGREEMENT , INCLUDING BUT NOT14
LIMITED TO DEEDS, GROUND LEASES, SUB-LEASES, EASEMENTS, OR OTHER15
INSTRUMENTS RELATED TO THE REAL PROPERTY ON WHICH THE FACILITIES16
ARE LOCATED.17
(j) T
HE PROVISIONS OF SECTION 24-30-202 (5)(b) DO NOT APPLY18
TO AN AGREEMENT OR TO ANY ANCILLARY AGREEMENT OR INSTRUMENT19
ENTERED INTO PURSUANT TO THIS SUBSECTION (2). THE STATE20
CONTROLLER OR THEIR DESIGNEE SHALL WAIVE ANY PROVISION OF THE21
FISCAL RULES PROMULGATED PURSUANT TO SECTIONS 24-30-202 (1) AND22
(13)
THAT THE STATE CONTROLLER FINDS INCOMPATIBLE OR INAPPLICABLE23
WITH RESPECT TO AN AGREEMENT OR AN ANCILLARY AGREEMENT OR24
INSTRUMENT.25
(3) (a) B
EFORE EXECUTING THE AGREEMENT , IN ORDER TO26
PROTECT AGAINST FUTURE INTEREST RATE INCREASES , THE STATE, ACTING27
1231
-11- BY AND THROUGH THE STATE TREASURER AND AT THE DISCRETION OF THE1
STATE TREASURER, MAY ENTER INTO AN INTEREST RATE EXCHANGE2
AGREEMENT PURSUANT TO ARTICLE 59.3 OF TITLE 11. SUCH INTEREST3
RATE EXCHANGE AGREEMENT IS A PROPOSED PUBLIC SECURITY FOR THE4
PURPOSES OF ARTICLE 59.3 OF TITLE 11. ANY PAYMENTS MADE BY THE5
STATE UNDER AN INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO6
PURSUANT TO THIS SUBSECTION (3) MUST BE MADE SOLELY FROM MONEY7
AVAILABLE TO THE STATE TREASURER FROM THE EXECUTION OF THE8
AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS9
SECTION OR FROM MONEY DESCRIBED IN SUBSECTION (2)(d) OF THIS10
SECTION.11
(b) A
N INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO12
PURSUANT TO THIS SUBSECTION (3) MUST ALSO PROVIDE THAT THE13
OBLIGATIONS OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE14
MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW15
CONCERNING OR LIMITING THE CREATION OF STATE DEBT OR ANY16
MULTIPLE FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL17
OBLIGATION OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF18
ARTICLE X OF THE STATE CONSTITUTION.19
(c) A
NY MONEY RECEIVED BY THE STATE UNDER AN INTEREST20
RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS21
SUBSECTION (3) MUST BE USED TO MAKE PAYMENTS ON AN AGREEMENT22
ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION OR TO PAY23
THE COSTS RELATED TO THE PURPOSES SET FORTH IN SUBSECTION (4) OF24
THIS SECTION FOR WHICH AN AGREEMENT WAS EXECUTED .25
(4) T
HE PROCEEDS OF AN AGREEMENT ENTERED INTO PURSUANT26
TO SUBSECTION (2)(a) OF THIS SECTION MUST BE USED TO FUND CAPITAL27
1231
-12- CONSTRUCTION COSTS RELATED TO THE CONSTRUCTION OF THE1
FOLLOWING FACILITIES FOR THE FOLLOWING INSTITUTIONS OF HIGHER2
EDUCATION:3
(a) U
NIVERSITY OF NORTHERN COLORADO'S COLLEGE OF4
OSTEOPATHIC MEDICINE;5
(b) M
ETROPOLITAN STATE UNIVERSITY OF DENVER'S HEALTH6
INSTITUTE TOWER THAT WILL INCREASE HEALTH -CARE-RELATED7
INSTRUCTIONAL AND TRAINING CAPACITY AND EXPAND PROGRAMS IN8
HIGH-NEED AREAS RELATED TO HEALTH CARE ;9
(c) C
OLORADO STATE UNIVERSITY 'S VETERINARY HEALTH AND10
EDUCATION COMPLEX; AND11
(d) T
RINIDAD STATE COLLEGE'S VALLEY CAMPUS MAIN BUILDING12
RENOVATION THAT WILL INCREASE CAPACITY TO PROVIDE ALLIED HEALTH13
CERTIFICATE AND DEGREE PROGRAMS , ADDRESS DEFERRED MAINTENANCE ,14
CREATE AN ASSEMBLY SPACE TO SERVE THE COLLEGE AND COMMUNITY ,15
AND ALLOW CRITICAL STUDENT SERVICES TO MOVE TO A MORE16
STUDENT-ACCESSIBLE LOCATION WITHIN THE BUILDING .17
SECTION 3. In Colorado Revised Statutes, 24-75-201.1, amend18
(1)(d)(XXIII) as follows:19
24-75-201.1. Restriction on state appropriations - legislative20
declaration - definitions. (1) (d) For each fiscal year, unrestricted21
general fund year-end balances must be retained as a reserve in the22
following amounts:23
(XXIII) (A) E
XCEPT AS OTHERWISE PROVIDED IN SUBSECTION24
(1)(d)(XXIII)(B)
OF THIS SECTION, for the fiscal year 2022-23, and each25
fiscal year thereafter, fifteen percent of the amount appropriated for26
expenditure from the general fund for that fiscal year.27
1231
-13- (B) FOR THE FISCAL YEAR 2023-24 AND EACH FISCAL YEAR1
THEREAFTER UNTIL THE ESCROW MONEY IS RELEASED AS SET FORTH IN2
SECTION 23-40-107, FIFTEEN PERCENT OF THE AMOUNT APPROPRIATED FOR3
EXPENDITURE FROM THE GENERAL FUND FOR THAT FISCAL YEAR REDUCED4
BY FORTY-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS . AS5
USED IN THIS SUBSECTION (1)(d)(XXIII)(B), "ESCROW MONEY" HAS THE6
SAME MEANING AS SET FORTH IN SECTION 23-40-107 (1)(c).7
SECTION 4. In Colorado Revised Statutes, add 23-40-107 as8
follows:9
23-40-107. Escrow requirement for accreditation of college of10
osteopathic medicine - cash fund - offset to appropriation - legislative11
declaration - report - definitions - repeal. (1) T
HE GENERAL ASSEMBLY12
FINDS AND DECLARES THAT:13
(a) T
HE ACCREDITATION BODY FOR THE COLLEGE OF OSTEOPATHIC14
MEDICINE OF THE UNIVERSITY OF NORTHERN COLORADO REQUIRES THAT15
THE UNIVERSITY DEPOSIT MONEY INTO AN ESCROW ACCOUNT TO BE HELD16
AND RELEASED ONLY UPON EITHER THE :17
(I) F
AILURE OF THE COLLEGE TO COMPLETE ACCREDITATION ; OR18
(II) G
RADUATION OF THE FIRST COHORT FROM THE COLLEGE ;19
(b) M
ONEY FOR THE ESCROW IS FROM A TRANSFER OF GENERAL20
FUND MONEY TO THE UNIVERSITY IN THE AMOUNT REQUIRED BY THE21
ACCREDITATION BODY;22
(c) I
N CONNECTION WITH THE TRANSFER OF MONEY FROM THE23
GENERAL FUND TO SATISFY THE ACCREDITATION BODY 'S ESCROW24
REQUIREMENTS, THERE IS A TEMPORARY REDUCTION IN THE STATE'S CASH25
RESERVE SET FORTH IN SECTION 24-75-201.1, WHICH IS A STRATEGIC26
INVESTMENT OF A SMALL PORTION OF THE REQUIRED STATUTORY RESERVE27
1231
-14- IN THE GENERAL FUND TO REDUCE COSTS OF THE UNIVERSITY REQUIRED1
FOR ACCREDITATION OF THE COLLEGE WHILE ENSURING THAT THE STATE2
MAXIMIZES THE BENEFIT OF THE HISTORIC AND IMPORTANT LEVELS3
MAINTAINED AS RESERVES IN THE GENERAL FUND ;4
(d) D
URING THE PERIOD THAT THE MONEY IS HELD IN ESCROW , THE5
TRANSACTION OF GENERAL FUND MONEY IS A NON -EXCHANGE6
TRANSACTION WITH A LONG-TERM TIME COMPONENT WHICH CONSTITUTES7
DEFERRED OUTFLOW OF RESOURCES BY THE STATE AND DEFERRED INFLOW8
OF RESOURCES BY THE UNIVERSITY , THE PRINCIPAL OF WHICH IS NOT9
RECOGNIZED AS REVENUE OR EXPENSE UNTIL REC OGNITION OF THE MONEY10
WHEN IT IS RELEASED FROM ESCROW ;11
(e) I
F THE MONEY, INCLUDING ANY EARNED INTEREST, IS RELEASED12
FROM ESCROW UPON THE GRADUATION OF THE FIRST C OHORT FROM THE13
COLLEGE, THE UNIVERSITY INTENDS TO RETAIN THE MONEY AND THE14
GENERAL ASSEMBLY INTENDS TO REDUCE ALL OR A PORTION OF THE TOTAL15
STATE APPROPRIATION TO THE UNIVERSITY FOR THE FISCAL YEAR IN WHICH16
THE MONEY IS RELEASED FROM ESCROW , AND FOR SUBSEQUENT FISCAL17
YEARS AS NEEDED, BY AN EQUIVALENT AMOUNT ; AND18
(f) T
HE RETENTION BY THE UNIVERSITY OF NORTHERN COLORADO19
OF THE MONEY RELEASED FROM ESCROW IS NOT INTENDED TO AFFECT OR20
IN ANY WAY MODIFY OR OTHERWISE IMPACT THE HIGHER EDUCATION21
FUNDING ALLOCATION MODEL ESTABLISHED IN ARTICLE 18 OF THIS TITLE22
23.23
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE24
REQUIRES:25
(a) "C
OLLEGE" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE26
OF THE UNIVERSITY.27
1231
-15- (b) "ESCROW ACCOUNT" MEANS THE ACCOUNT ESTABLISHED AND1
GOVERNED BY AN ESCROW AGREEMENT THAT IS ENTERED INTO BETWEEN2
AN ESCROW AGENT, THE ACCREDITING BODY FOR THE COLLEGE , AND THE3
UNIVERSITY TO RECEIVE AND HOLD THE ESCROW MONEY .4
(c) "E
SCROW MONEY" MEANS THE MONEY THAT IS DEPOSITED AND5
HELD IN THE ESCROW ACCOUNT AND RELEASED TO THE UNIVERSITY UPON6
EITHER THE FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION OR7
THE GRADUATION OF THE FIRST COHORT FROM THE COLLEGE , INCLUDING8
ANY EARNED INTEREST OR INVESTMENT INCOME .9
(d) "F
UND" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE10
ESCROW MONEY CASH FUND CREATED IN SUBSECTION (3)(a) OF THIS11
SECTION.12
(e) "U
NIVERSITY" MEANS THE UNIVERSITY OF NORTHERN13
C
OLORADO.14
(3) (a) T
HE COLLEGE OF OSTEOPATHIC MEDICINE ESCROW MONEY15
CASH FUND IS CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF16
MONEY TRANSFERRED TO THE FUND PURSUANT TO SUBSECTION (3)(b) OF17
THIS SECTION.18
(b) O
N OR BEFORE JUNE 30, 2024, THE STATE TREASURER SHALL19
TRANSFER FORTY-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS20
FROM THE GENERAL FUND TO THE FUND .21
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE22
UNIVERSITY FOR THE PURPOSE OF THE UNIVERSITY DEPOSITING THE MONEY23
INTO THE ESCROW ACCOUNT TO SATISFY NECESSARY COSTS IN24
ACCORDANCE WITH THE ACCREDITING BODY OF THE COLLEGE 'S RULES AND25
REGULATIONS FOR OPERATING RESERVE AND ESCROW RESERVE26
REQUIREMENTS.27
1231
-16- (d) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE DECEMBER 31,1
2025.2
(4) I
F THE ESCROW MONEY IS RELEASED TO THE UNIVERSITY DUE3
TO FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION , THE4
UNIVERSITY SHALL PROVIDE A REPORT TO THE JOINT BUDGET COMMITTEE5
OF THE GENERAL ASSEMBLY, THE STATE TREASURER, AND THE OFFICE OF6
STATE PLANNING AND BUDGETING WITHIN TEN DAYS OF THE RELEASE OF7
THE ESCROW MONEY THAT SETS FORTH THE CIRCUMSTANCES FOR THE8
RELEASE OF THE ESCROW MONEY AND INFORMATION CONCERNING THE USE9
OF THE ESCROW MONEY BY THE UNIVERSITY AS REQUIRED BY THE10
ACCREDITATION BODY TO PAY OPERATING AND TEACH OUT COSTS OF11
STUDENTS OF THE COLLEGE.12
(5) (a) W
ITHIN TEN DAYS OF RECEIPT OF NOTICE FROM THE13
ACCREDITATION BODY THAT THE ESCROW MONEY WILL BE RELEASED TO14
THE UNIVERSITY IN ACCORDANCE WITH THE REQUIREMENTS AND15
CONDITIONS OF ACCREDITATION BEI NG MET FOR THE GRADUATION OF THE16
FIRST COHORT OF THE COLLEGE, THE UNIVERSITY SHALL PROVIDE NOTICE17
OF THE SAME TO THE JOINT BUDGET COMMITTEE OF THE GENERAL18
ASSEMBLY, THE STATE TREASURER, AND THE OFFICE OF STATE PLANNING19
AND BUDGETING.20
(b) F
OR THE STATE FISCAL YEAR IN WHICH THE ESCROW MONEY21
WILL BE RELEASED TO THE UNIVERSITY FOR THE REASON SET FORTH IN22
SUBSECTION (5)(a) OF THIS SECTION, THE AMOUNT TO BE PAID TO THE23
UNIVERSITY PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT24
NEGOTIATED PURSUANT TO SECTION 23-18-303.5 FOR THAT STATE FISCAL25
YEAR IS REDUCED BY THE LESSER OF THE AMOUNT OF THE ESCROW MONEY26
OR THE AMOUNT OF A PORTION OF THE ESCROW MONEY THAT REDUCES THE27
1231
-17- AMOUNT TO BE PAID PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT TO1
ZERO, AND THE UNIVERSITY SHALL USE THE ESCROW MONEY , OR A2
PORTION OF IT, AS APPLICABLE, TO OFFSET THE REDUCTION.3
(c) I
F THERE IS ESCROW MONEY REMAINING AFTER THE OFFSET4
REQUIRED BY SUBSECTION (5)(b) OF THIS SECTION IS MADE, THEN MONEY5
THAT THE UNIVERSITY WOULD OTHERWISE RECEIVE FROM THE COLLEGE6
OPPORTUNITY FUND IS REDUCED BY THE LESSER OF THE AMOUNT OF THE7
REMAINING ESCROW MONEY OR THE AMOUNT OF A PORTION OF THE8
REMAINING ESCROW MONEY THAT REDUCES THE MONEY THE UNIVERSITY9
WOULD OTHERWISE RECEIVE FROM THE COLLEGE OPPORTUNITY FUND TO10
ZERO, AND THE UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY ,11
OR A PORTION OF IT, AS APPLICABLE, TO OFFSET THE REDUCTION.12
(d) I
F, AFTER THE OFFSETS REQUIRED BY SUBSECTIONS (5)(b) AND13
(5)(c)
OF THIS SECTION, THERE REMAINS ANY EXCESS ESCROW MONEY ,14
THEN IN THE NEXT STATE FISCAL YEAR, THE AMOUNT TO BE PAID TO THE15
UNIVERSITY PURSUANT TO THE FEE -FOR-SERVICE AGREEMENT16
NEGOTIATED PURSUANT TO SECTION 23-18-303.5 FOR THAT STATE FISCAL17
YEAR IS REDUCED BY THE AMOUNT OF ANY EXCESS ESCROW MONEY AND18
THE UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY TO OFFSET19
THE REDUCTION.20
SECTION 5. Capital construction appropriation. For the21
2024-25 state fiscal year, the general assembly anticipates that the22
department of higher education will receive $246,936,092 in cash funds23
from the proceeds of the financed purchase of asset or certificate of24
participation agreements executed pursuant to section 24-36-124, C.R.S.25
This figure is subject to the "(I)" notation as defined in the annual general26
appropriation act for the same fiscal year. To implement this act, the27
1231
-18- department is anticipated to use this amount as follows:1
(a) $127,542,028 for construction of the college of osteopathic2
medicine at the university of northern Colorado;3
(b) $50,000,000 for construction of the health institute tower at4
Metropolitan university of Denver; 5
(c) $50,000,000 for construction of the veterinary health education6
complex at Colorado state university; and7
(d) $19,394,064 for renovation of the valley campus main building8
at Trinidad state college.9
SECTION 6. Safety clause. The general assembly finds,10
determines, and declares that this act is necessary for the immediate11
preservation of the public peace, health, or safety or for appropriations for12
the support and maintenance of the departments of the state and state13
institutions.14
1231
-19-