HOUSE BILL 24-1231
BY REPRESENTATIVE(S) 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, McCormick, Parenti, Rutinel, Snyder, Taggart, Valdez, Velasco,
Vigil, Woodrow, McCluskie;
also SENATOR(S) Kirkmeyer and Mullica, Priola, Michaelson Jenet,
Pelton B., Bridges, Buckner, Cutter, Exum, Fields, Ginal, Hansen,
Jaquez Lewis, Kolker, Roberts, Simpson, Zenzinger, Fenberg.
C
ONCERNING STATE FUNDING FOR FOUR PROJECTS RELATED TO HEALTH
SCIENCES EDUCATION PROGRAMS FOR MEDICAL PROFESSIONS BEING
UNDERTAKEN BY STATE INSTITUTIONS OF HIGHER EDUCATION
, AND,
IN CONNECTION THEREWITH , AUTHORIZING THE STATE TO ISSUE
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION
AGREEMENTS TO FINANCE A PORTION OF CAPITAL COSTS ASSOCIATED
WITH CONSTRUCTION OF FACILITIES FOR THE UNIVERSITY OF
NORTHERN
COLORADO'S COLLEGE OF OSTEOPATHIC MEDICINE ,
METROPOLITAN STATE UNIVERSITY OF DENVER'S HEALTH INSTITUTE
TOWER
, COLORADO STATE UNIVERSITY 'S VETERINARY HEALTH
EDUCATION CAMPUS
, AND EXPANSION AND RENOVATION OF
TRINIDAD STATE COLLEGE 'S VALLEY CAMPUS MAIN BUILDING ,
PROVIDING FUNDING FOR ESCROW MONEY THAT IS REQUIRED FOR
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. ACCREDITATION OF THE UNIVERSITY OF NORTHERN COLORADO'S
COLLEGE OF OSTEOPATHIC MEDICINE BY TRANSFERRING MONEY FROM
THE GENERAL FUND FOR ULTIMATE DEPOSIT TO AN ESCROW ACCOUNT
AND REDUCING THE STATE RESERVE BY THE SAME AMOUNT FOR THE
PERIOD DURING WHICH THE MONEY IS HELD IN ESCROW
, AND MAKING
AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) The state is facing a physician shortage, and a rapidly growing
population and an aging physician workforce have created a current and
future demonstrated need for more physicians to serve Colorado
communities;
(b) The physician shortage is felt most acutely in rural and other
underserved communities;
(c) With an increasing disparity between the demand for and supply
of physicians, there is an urgent need for medical education programs to
begin work now to train providers;
(d) This is particularly critical because physician training can take
up to a decade, meaning a physician shortage in 2034 is a problem that
needs to be addressed today;
(e) To address this critical issue, the University of Northern
Colorado is establishing an osteopathic medical college and plans to enroll
150 graduate-level medical students in a four-year medical degree program
every year;
(f) The osteopathic medical profession has a long tradition of
providing care where patients lack doctors; and
(g) Opening the College of Osteopathic Medicine requires capital
investment for construction of a building and a temporary cash reserve as
required by the University of Northern Colorado's accrediting body.
PAGE 2-HOUSE BILL 24-1231 (2) The general assembly further finds and declares that:
(a) A statement for the Committee on Health, Education, Labor and
Pensions of the United States Senate made by the American Hospital
Association on February 16, 2023, stated that there is "a historic workforce
crisis complete with real-time short-term staffing shortages and a daunting
long-range picture of an unfulfilled talent pipeline in healthcare". This is
especially true in Colorado, where workforce shortages are at an all-time
high and the state is projected to need an estimated 10,000 more nurses by
2026.
(b) Metropolitan State University of Denver is prepared to meet this
urgent demand by growing its allied health programs by 25%, enrolling
nearly 7,000 students by 2030 who will go on to deliver care in critical
areas, such as mental and behavioral health, nursing, social work, and
speech, language, and hearing sciences;
(c) As such, Metropolitan State University of Denver has identified
an opportunity to address the urgent labor market needs by creating
interdisciplinary learning spaces for aspiring health-care professionals,
allowing for growth of the university's programs that serve this sector;
(d) To accomplish this, Metropolitan State University of Denver's
Health Institute will begin construction of a new facility, the Health
Institute Tower, that will grow the health-care workforce through
innovation, increased instructional and training capacity, and expansion of
programs in high-need health-care-related areas;
(e) In addition, the Health Institute Tower will advance and retain
Colorado's health-care workers through interdisciplinary training, education,
and industry partnerships, all while delivering health and wellness services
to surrounding communities; and
(f) The Health Institute Tower will enable average enrollment
growth of 25% across all 10 healthcare-focused academic departments at
the university, which disciplines are all experiencing greater demand and
will be positioned to grow enrollment due to additional square footage for
instruction and training and greater efficiencies provided by the Health
Institute Tower.
PAGE 3-HOUSE BILL 24-1231 (3) The general assembly further finds and declares that:
(a) Colorado State University has led innovations in veterinary
education, animal care, biomedical discovery, and public health and now
must adapt its delivery of education and modernize its facilities through a
new veterinary health education complex;
(b) The veterinary health education complex will be a one-of-a-kind
complex with educational, clinical, and research capacity serving society's
evolving relationship with animals as companions, livestock, and wildlife;
(c) Colorado State University's current veterinary education facilities
are outdated and not large enough to meet the increasing needs of students
and the state;
(d) The veterinary health education complex will address the
shortage of veterinarians and those who can care for animals with new
facilities for integrated education, clinical practice, and applicable research
in one location; will provide upgraded technology and facilities to educate,
retain, and graduate veterinarians; and will allow for best practices in health
education to be realized by employing experiential learning strategies with
state-of-the-art laboratories, simulation skill labs, active learning
classrooms, and clinical experiences; and
(e) The project will allow Colorado State University to increase
veterinary student enrollment by potentially 20%, with the incoming
first-year class helping to alleviate the severe workforce shortage in the
field of veterinary medicine.
(4) The general assembly further finds and declares that:
(a) Trinidad state college's valley campus has origins back to 1936,
serves approximately 500 career and technical students annually, and had
its last major renovation to a portion of the campus' main building over 23
years ago;
(b) The provision of allied health certificate and degree programs is
critical to serving the health-care needs of Alamosa, Colorado, and its
surrounding communities, which face shortages in critical health-care
personnel;
PAGE 4-HOUSE BILL 24-1231 (c) The renovation of the campus' main building will add a two-story
addition to the building that will allow for critical allied health programs
including those for nursing, emergency medical technicians, dental
assisting, and medical assisting to move into the main building from the
program's current condition-challenged space and significantly support
student success initiatives and regional workforce needs;
(d) The campus services over 130 allied health students annually,
and the renovation project will expand capacity of the allied health
programs offered at the campus by as much as 50% in nursing, nursing aide,
emergency medical technician, medical assisting, and dental assisting
programs; and
(e) The renovation project will also address much needed deferred
maintenance issues of the campus' main building, will create an assembly
space to serve both the college and community, and will allow critical
student services, including services that assist students from disadvantaged
backgrounds, to move to a more student-accessible location in the building,
thereby providing better access to these services for allied health program
students and the student body as a whole.
(5) The general assembly further finds and declares that financing
the capital construction needs of the University of Northern Colorado's
College of Osteopathic Medicine, the Metropolitan State University of
Denver's Health Institute Tower, Colorado State University's veterinary
health and education complex, and Trinidad State College's valley campus
main building renovation will, in part, come from the state through
execution of one or more financed purchase of an asset or certificate of
participation agreements, which, while each project is separate, may be
executed in connection with each other.
SECTION 2. In Colorado Revised Statutes, add 24-36-124 as
follows:
24-36-124. Financed purchase of an asset or certificate of
participation agreements - fund capital costs related projects at four
institutions of higher education - definitions. (1) A
S USED IN THIS
SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "A
GREEMENT" MEANS ONE OR MORE FINANCED PURCHASE OF AN
PAGE 5-HOUSE BILL 24-1231 ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS EXECUTED AS
REQUIRED BY SUBSECTION
(2)(a) OF THIS SECTION.
(b) "A
PPLICABLE BOARD" MEANS EITHER:
(I) T
HE BOARD OF TRUSTEES FOR THE UNIVERSITY OF NORTHERN
COLORADO ESTABLISHED PURSUANT TO SECTION 23-40-104 (1)(a);
(II) T
HE BOARD OF TRUSTEES FOR METROPOLITAN STATE
UNIVERSITY OF
DENVER ESTABLISHED PURSUANT TO SECTION 23-54-102
(1)(a);
(III) T
HE BOARD OF GOVERNORS OF THE COLORADO STATE
UNIVERSITY SYSTEM ESTABLISHED PURSUANT TO SECTION
23-30-101 (1)(a);
OR
(IV) THE STATE BOARD FOR COMMUNITY COLLEGES AND
OCCUPATIONAL EDUCATION CREATED IN SECTION
23-60-104 (1)(b).
(2) (a) N
OTWITHSTANDING THE PROVISIONS OF SECTIONS 24-82-102
(1)(b)
AND 24-82-801, AND PURSUANT TO SECTION 24-36-121, NO LATER
THAN
DECEMBER 31, 2024, THE STATE, ACTING BY AND THROUGH THE STATE
TREASURER
, SHALL EXECUTE AN AGREEMENT FOR THE PURPOSES DESCRIBED
IN SUBSECTION
(4) OF THIS SECTION, THE TOTAL AMOUNT OF THE PRINCIPAL
OF WHICH AGREEMENT SHALL NOT EXCEED TWO HUNDRED FORTY
-SIX
MILLION NINE HUNDRED THIRTY
-SIX THOUSAND NINETY-TWO DOLLARS, PLUS
REASONABLE AND NECESSARY ADMINISTRATIVE
, MONITORING, AND CLOSING
COSTS AND INTEREST
, INCLUDING CAPITALIZED INTEREST.
(b) T
HE ANTICIPATED ANNUAL STATE -FUNDED PAYMENTS FOR THE
PRINCIPAL AND INTEREST COMPONENTS OF THE AM OUNT PAYABLE UNDER AN
AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION
(2)(a) OF THIS
SECTION SHALL NOT EXCEED SEVENTEEN MILLION FIVE HUNDRED THOUSAND
DOLLARS
, WITH PRINCIPAL AMORTIZATION NOT OCCURRING BEFORE JULY 1,
2027.
(c) T
HE STATE, ACTING BY AND THROUGH THE STATE TREASURER , AT
THE STATE TREASURER
'S SOLE DISCRETION, MAY ENTER INTO AN AGREEMENT
AUTHORIZED BY SUBSECTION
(2)(a) OF THIS SECTION WITH ANY FOR-PROFIT
OR NONPROFIT CORPORATION
, TRUST, OR COMMERCIAL BANK ACTING AS A
PAGE 6-HOUSE BILL 24-1231 TRUSTEE AS THE LESSOR.
(d) T
HE AGREEMENT MUST PROVIDE THAT ALL OF THE OBLIGATIONS
OF THE STATE UNDER THE AGREEMENT ARE SUBJECT TO THE ACTION OF THE
GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY AVAILABLE FOR ALL
PAYMENTS THEREUNDER
. PAYMENTS UNDER THE AGREEMENT MUST BE
MADE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY
, AS
APPLICABLE
, FROM THE GENERAL FUND OR FROM ANY OTHER LEGALLY
AVAILABLE SOURCE OF MONEY
.
(e) T
HE AGREEMENT MUST ALSO PROVIDE THAT THE OBLIGATIONS OF
THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY
PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR
LIMITING THE CREATION OF STATE DEBT AND ARE NOT A MULTIPLE
FISCAL
-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION
OF THE STATE WITHIN THE MEANING OF SECTION
20 (4) OF ARTICLE X OF THE
STATE CONSTITUTION
. IF THE STATE DOES NOT RENEW THE AGREEMENT , THE
SOLE SECURITY AVAILABLE TO THE LESSOR IS THE PROPERTY THAT IS THE
SUBJECT OF THE NONRENEWED AGREEMENT
.
(f) (I) T
HE AGREEMENT MAY CONTAIN SUCH TERMS , PROVISIONS,
AND CONDITIONS AS THE STATE TREASURER , ACTING ON BEHALF OF THE
STATE
, DEEMS APPROPRIATE, INCLUDING ALL OPTIONAL TERMS ; EXCEPT
THAT THE AGREEMENT MUST SPECIFICALLY AUTHORIZE THE STATE OR THE
APPLICABLE BOARD TO RECEIVE FEE TITLE TO ALL REAL AND PERSONAL
PROPERTY THAT IS THE SUBJECT OF THE AGREEMENT ON OR BEFORE THE
EXPIRATION OF THE TERMS OF THE AGREEMENT
.
(II) T
HE STATE TREASURER, ACTING ON BEHALF OF THE STATE, HAS
THE AUTHORITY TO DETERMINE WHAT COLLATERAL TO USE FOR THE
AGREEMENT AS THE STATE TREASURER DEEMS APPROPRIATE
.
(g) T
HE AGREEMENT MAY PROVIDE FOR THE ISSUANCE ,
DISTRIBUTION, AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO RECEIVE
RENTALS AND OTHER PAYMENTS MADE AND TO BE MADE UNDER THE
AGREEMENT
. THE INSTRUMENTS MAY BE ISSUED , DISTRIBUTED, OR SOLD
ONLY BY THE LESSOR OR ANY PERSON DESIGNATED BY THE LESSOR AND NOT
BY THE STATE
. THE INSTRUMENTS DO NOT CREATE A RELATIONSHIP
BETWEEN THE PURCHASERS OF THE INSTRUMENTS AND THE STATE OR
CREATE ANY OBLIGATION ON THE PART OF THE STATE TO THE PURCHASERS
.
PAGE 7-HOUSE BILL 24-1231 THE INSTRUMENTS ARE NOT A NOTE , BOND, OR ANY OTHER EVIDENCE OF
STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE STATE
CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE CREATION OF
STATE DEBT AND ARE NOT A MULTIPLE FISCAL
-YEAR DIRECT OR INDIRECT
DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING
OF SECTION
20 (4) OF ARTICLE X OF THE STATE CONSTITUTION.
(h) I
NTEREST PAID UNDER AN AGREEMENT AUTHORIZED PURSUANT
TO SUBSECTION
(2)(a) OF THIS SECTION, INCLUDING INTEREST REPRESENTED
BY THE INSTRUMENTS
, IS EXEMPT FROM COLORADO INCOME TAX.
(i) T
HE STATE, ACTING BY AND THE THROUGH THE STATE TREASURER
AND THE APPLICABLE BOARD
, IS AUTHORIZED TO ENTER INTO ANCILLARY
AGREEMENTS AND INSTRUMENTS THAT ARE NECESSARY OR APPROPRIATE IN
CONNECTION WITH AN AGREEMENT
, INCLUDING BUT NOT LIMITED TO DEEDS,
GROUND LEASES, SUB-LEASES, EASEMENTS, OR OTHER INSTRUMENTS
RELATED TO THE REAL PROPERTY ON WHICH THE FACILITIES ARE LOCATED
.
(j) T
HE PROVISIONS OF SECTION 24-30-202 (5)(b) DO NOT APPLY TO
AN AGREEMENT OR TO ANY ANCILLARY AGREEMENT OR INSTRUMENT
ENTERED INTO PURSUANT TO THIS SUBSECTION
(2). THE STATE CONTROLLER
OR THEIR DESIGNEE SHALL WAIVE ANY PROVISION OF THE FISCAL RULES
PROMULGATED PURSUANT TO SECTIONS
24-30-202 (1) AND (13) THAT THE
STATE CONTROLLER FINDS INCOMPATIBLE OR INAPPLICABLE WITH RESPECT
TO AN AGREEMENT OR AN ANCILLARY AGREEMENT OR INSTRUMENT
.
(3) (a) B
EFORE EXECUTING THE AGREEMENT , IN ORDER TO PROTECT
AGAINST FUTURE INTEREST RATE INCREASES
, THE STATE, ACTING BY AND
THROUGH THE STATE TREASURER AND AT THE DISCRETION OF THE STATE
TREASURER
, MAY ENTER INTO AN INTEREST RATE EXCHANGE AGREEMENT
PURSUANT TO ARTICLE
59.3 OF TITLE 11. SUCH INTEREST RATE EXCHANGE
AGREEMENT IS A PROPOSED PUBLIC SECU RITY FOR THE PURPOSES OF ARTICLE
59.3 OF TITLE 11. ANY PAYMENTS MADE BY THE STATE UNDER AN INTEREST
RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS SUBSECTION
(3) MUST BE MADE SOLELY FROM MONEY AVAILABLE TO THE STATE
TREASURER FROM THE EXECUTION OF THE AGREEMENT ENTERED INTO
PURSUANT TO SUBSECTION
(2) OF THIS SECTION OR FROM MONEY DESCRIBED
IN SUBSECTION
(2)(d) OF THIS SECTION.
(b) A
N INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO
PAGE 8-HOUSE BILL 24-1231 PURSUANT TO THIS SUBSECTION (3) MUST ALSO PROVIDE THAT THE
OBLIGATIONS OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE
MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW
CONCERNING OR LIMITING THE CREATION OF STATE DEBT OR ANY MULTIPLE
FISCAL
-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION
OF THE STATE WITHIN THE MEANING OF SECTION
20 (4) OF ARTICLE X OF THE
STATE CONSTITUTION
.
(c) A
NY MONEY RECEIVED BY THE STATE UNDER AN INTEREST RATE
EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS SUBSECTION
(3)
MUST BE USED TO MAKE PAYMENTS ON AN AGREEMENT ENTERED INTO
PURSUANT TO SUBSECTION
(2) OF THIS SECTION OR TO PAY THE COSTS
RELATED TO THE PURPOSES SET FORTH IN SUBSECTION
(4) OF THIS SECTION
FOR WHICH AN AGREEMENT WAS EXECUTED
.
(4) T
HE PROCEEDS OF AN AGREEMENT ENTERED INTO PURSUANT TO
SUBSECTION
(2)(a) OF THIS SECTION MUST BE USED TO FUND CAPITAL
CONSTRUCTION COSTS RELATED TO THE CONSTRUCTION OF THE FOLLOWING
FACILITIES FOR THE FOLLOWING INSTITUTIONS OF HIGHER EDUCATION
:
(a) U
NIVERSITY OF NORTHERN COLORADO'S COLLEGE OF
OSTEOPATHIC MEDICINE
;
(b) M
ETROPOLITAN STATE UNIVERSITY OF DENVER'S HEALTH
INSTITUTE TOWER THAT WILL INCREASE HEALTH
-CARE-RELATED
INSTRUCTIONAL AND TRAINING CAPACITY AND EXPAND PROGRAMS IN
HIGH
-NEED AREAS RELATED TO HEALTH CARE ;
(c) C
OLORADO STATE UNIVERSITY 'S VETERINARY HEALTH AND
EDUCATION COMPLEX
; AND
(d) TRINIDAD STATE COLLEGE'S VALLEY CAMPUS MAIN BUILDING
RENOVATION THAT WILL INCREASE CAPACITY TO PROVIDE ALLIED HEALTH
CERTIFICATE AND DEGREE PROGRAMS
, ADDRESS DEFERRED MAINTENANCE ,
CREATE AN ASSEMBLY SPACE TO SERVE THE COLLEGE AND COMMUNITY , AND
ALLOW CRITICAL STUDENT SERVICES TO MOVE TO A MORE
STUDENT
-ACCESSIBLE LOCATION WITHIN THE BUILDING .
SECTION 3. In Colorado Revised Statutes, 24-75-201.1, amend
(1)(d)(XXIII) as follows:
PAGE 9-HOUSE BILL 24-1231 24-75-201.1. Restriction on state appropriations - legislative
declaration - definitions. (1) (d) For each fiscal year, unrestricted general
fund year-end balances must be retained as a reserve in the following
amounts:
(XXIII) (A) E
XCEPT AS OTHERWISE PROVIDED IN SUBSECTION
(1)(d)(XXIII)(B) OF THIS SECTION, for the fiscal year 2022-23, and each
fiscal year thereafter, fifteen percent of the amount appropriated for
expenditure from the general fund for that fiscal year.
(B) F
OR THE FISCAL YEAR 2023-24 AND EACH FISCAL YEAR
THEREAFTER UNTIL THE ESCROW MONEY IS RELEASED AS SET FORTH IN
SECTION
23-40-107, FIFTEEN PERCENT OF THE AMOUNT APPROPRIATED FOR
EXPENDITURE FROM THE GENERAL FUND FOR THAT FISCAL YEAR REDUCED
BY FORTY
-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS . AS USED
IN THIS SUBSECTION
(1)(d)(XXIII)(B), "ESCROW MONEY" HAS THE SAME
MEANING AS SET FORTH IN SECTION
23-40-107 (1)(c).
SECTION 4. In Colorado Revised Statutes, add 23-40-107 as
follows:
23-40-107. Escrow requirement for accreditation of college of
osteopathic medicine - cash fund - offset to appropriation - legislative
declaration - report - definitions - repeal. (1) T
HE GENERAL ASSEMBLY
FINDS AND DECLARES THAT
:
(a) T
HE ACCREDITATION BODY FOR THE COLLEGE OF OSTEOPATHIC
MEDICINE OF THE UNIVERSITY OF NORTHERN
COLORADO REQUIRES THAT THE
UNIVERSITY DEPOSIT MONEY INTO AN ESCROW ACCOUNT TO BE HELD AND
RELEASED ONLY UPON EITHER THE
:
(I) F
AILURE OF THE COLLEGE TO COMPLETE ACCREDITATION ; OR
(II) GRADUATION OF THE FIRST COHORT FROM THE COLLEGE ;
(b) M
ONEY FOR THE ESCROW IS FROM A TRANSFER OF GENERAL FUND
MONEY TO THE UNIVERSITY IN THE AMOUNT REQUIRED BY THE
ACCREDITATION BODY
;
(c) I
N CONNECTION WITH THE TRANSFER OF MONEY FROM THE
PAGE 10-HOUSE BILL 24-1231 GENERAL FUND TO SATISFY THE ACCREDITATION BODY 'S ESCROW
REQUIREMENTS
, THERE IS A TEMPORARY REDUCTION IN THE STATE 'S CASH
RESERVE SET FORTH IN SECTION
24-75-201.1, WHICH IS A STRATEGIC
INVESTMENT OF A SMALL PORTION OF THE REQUIRED STATUTORY RESERVE
IN THE GENERAL FUND TO REDUCE COSTS OF THE UNIVERSITY REQUIRED FOR
ACCREDITATION OF THE COLLEGE WHILE ENSURING THAT THE STATE
MAXIMIZES THE BENEFIT OF THE HISTORIC AND IMPORTANT LEVELS
MAINTAINED AS RESERVES IN THE GENERAL FUND
;
(d) D
URING THE PERIOD THAT THE MONEY IS HELD IN ESCROW , THE
TRANSACTION OF GENERAL FUND MONEY IS A NON
-EXCHANGE TRANSACTION
WITH A LONG
-TERM TIME COMPONENT WHICH CONSTITUTES DEFERRED
OUTFLOW OF RESOURCES BY THE STATE AND DEFERRED INFLOW OF
RESOURCES BY THE UNIVERSITY
, THE PRINCIPAL OF WHICH IS NOT
RECOGNIZED AS REVENUE OR EXPENSE UNTIL RECOGNITION OF THE MONEY
WHEN IT IS RELEASED FROM ESCROW
;
(e) I
F THE MONEY, INCLUDING ANY EARNED INTEREST, IS RELEASED
FROM ESCROW UPON THE GRADUATION OF THE FIRST COHORT FROM THE
COLLEGE
, THE UNIVERSITY INTENDS TO RETAIN THE MONEY AND THE
GENERAL ASSEMBLY INTENDS TO REDUCE ALL OR A PORTION OF THE TOTAL
STATE APPROPRIATION TO THE UNIVERSITY FOR THE FISCAL YEAR IN WHICH
THE MONEY IS RELEASED FROM ESCROW
, AND FOR SUBSEQUENT FISCAL
YEARS AS NEEDED
, BY AN EQUIVALENT AMOUNT ; AND
(f) THE RETENTION BY THE UNIVERSITY OF NORTHERN COLORADO OF
THE MONEY RELEASED FROM ESCROW IS NOT INTENDED TO AFFECT OR IN ANY
WAY MODIFY OR OTHERWISE IMPACT THE HIGHER EDUCATION FUNDING
ALLOCATION MODEL ESTABLISHED IN ARTICLE
18 OF THIS TITLE 23.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "C
OLLEGE" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE OF
THE UNIVERSITY
.
(b) "E
SCROW ACCOUNT" MEANS THE ACCOUNT ESTABLISHED AND
GOVERNED BY AN ESCROW AGREEMENT THAT IS ENTERED INTO BETWEEN AN
ESCROW AGENT
, THE ACCREDITING BODY FOR THE COLLEGE , AND THE
UNIVERSITY TO RECEIVE AND HOLD THE ESCROW MONEY
.
PAGE 11-HOUSE BILL 24-1231 (c) "ESCROW MONEY" MEANS THE MONEY THAT IS DEPOSITED AND
HELD IN THE ESCROW ACCOUNT AND RELEASED TO THE UNIVERSITY UPON
EITHER THE FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION OR THE
GRADUATION OF THE FIRST C OHORT FROM THE COLLEGE
, INCLUDING ANY
EARNED INTEREST OR INVESTMENT INCOME
.
(d) "F
UND" MEANS THE COLLEGE OF OSTEOPATHIC MEDICINE ESCROW
MONEY CASH FUND CREATED IN SUBSECTION
(3)(a) OF THIS SECTION.
(e) "U
NIVERSITY" MEANS THE UNIVERSITY OF NORTHERN COLORADO.
(3) (a) T
HE COLLEGE OF OSTEOPATHIC MEDICINE ESCROW MONEY
CASH FUND IS CREATED IN THE STATE TREASURY
. THE FUND CONSISTS OF
MONEY TRANSFERRED TO THE FUND PURSUANT TO SUBSECTION
(3)(b) OF
THIS SECTION
.
(b) O
N OR BEFORE JUNE 30, 2024, THE STATE TREASURER SHALL
TRANSFER FORTY
-ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS
FROM THE GENERAL FUND TO THE FUND
.
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE
UNIVERSITY FOR THE PURPOSE OF THE UNIVERSITY DEPOSITING THE MONEY
INTO THE ESCROW ACCOUNT TO SATISFY NECESSARY COSTS IN ACCORDANCE
WITH THE ACCREDITING BODY OF THE COLLEGE
'S RULES AND REGULATIONS
FOR OPERATING RESERVE AND ESCROW RESERVE REQUIREMENTS
.
(d) T
HIS SUBSECTION (3) IS REPEALED, EFFECTIVE DECEMBER 31,
2025.
(4) I
F THE ESCROW MONEY IS RELEASED TO THE UNIVERSITY DUE TO
FAILURE OF THE COLLEGE TO COMPLETE ACCREDITATION
, THE UNIVERSITY
SHALL PROVIDE A REPORT TO THE JOINT BUDGET COMMITTEE OF THE
GENERAL ASSEMBLY
, THE STATE TREASURER, AND THE OFFICE OF STATE
PLANNING AND BUDGETING WITHIN TEN DAYS OF THE RELEASE OF THE
ESCROW MONEY THAT SETS FORTH THE CIRCUMSTANCES FOR THE RELEASE
OF THE ESCROW MONEY AND INFORMATION CONCERNING THE USE OF THE
ESCROW MONEY BY THE UNIVERSITY AS REQUIRED BY THE ACCREDITATION
BODY TO PAY OPERATING AND TEACH OUT COSTS OF STUDENTS OF THE
COLLEGE
.
PAGE 12-HOUSE BILL 24-1231 (5) (a) WITHIN TEN DAYS OF RECEIPT OF NOTICE FROM THE
ACCREDITATION BODY THAT THE ESCROW MONEY WILL BE RELEASED TO THE
UNIVERSITY IN ACCORDANCE WITH THE REQUIREMENTS AND CONDITIONS OF
ACCREDITATION BEING MET FOR THE GRADUATION OF THE FIRST COHORT OF
THE COLLEGE
, THE UNIVERSITY SHALL PROVIDE NOTICE OF THE SAME TO THE
JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY
, THE STATE
TREASURER
, AND THE OFFICE OF STATE PLANNING AND BUDGETING .
(b) F
OR THE STATE FISCAL YEAR IN WHICH THE ESCROW MONEY WILL
BE RELEASED TO THE UNIVERSITY FOR THE REASON SET FORTH IN
SUBSECTION
(5)(a) OF THIS SECTION, THE AMOUNT TO BE PAID TO THE
UNIVERSITY PURSUANT TO THE FEE
-FOR-SERVICE AGREEMENT NEGOTIATED
PURSUANT TO SECTION
23-18-303.5 FOR THAT STATE FISCAL YEAR IS
REDUCED BY THE LESSER OF THE AMOUNT OF THE ESCROW MONEY OR 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, AND
THE UNIVERSITY SHALL USE THE ESCROW MONEY
, OR A PORTION OF IT, AS
APPLICABLE
, TO OFFSET THE REDUCTION.
(c) I
F THERE IS ESCROW MONEY REMAINING AFTER THE OFFSET
REQUIRED BY SUBSECTION
(5)(b) OF THIS SECTION IS MADE, THEN MONEY
THAT THE UNIVERSITY WOULD OTHERWISE RECEIVE FROM THE COLLEGE
OPPORTUNITY FUND IS REDUCED BY THE LESSER OF THE AMOUNT OF THE
REMAINING ESCROW MONEY OR THE AMOUNT OF A PORTION OF THE
REMAINING ESCROW MONEY THAT REDUCES THE MONEY THE UNIVERSITY
WOULD OTHERWISE RECEIVE FROM THE COLLEGE OPPORTUNITY FUND TO
ZERO
, AND THE UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY , OR
A PORTION OF IT
, AS APPLICABLE, TO OFFSET THE REDUCTION.
(d) I
F, AFTER THE OFFSETS REQUIRED BY SUBSECTIONS (5)(b) AND
(5)(c) OF THIS SECTION, THERE REMAINS ANY EXCESS ESCROW MONEY , THEN
IN THE NEXT STATE FISCAL YEAR
, THE AMOUNT TO BE PAID TO THE
UNIVERSITY PURSUANT TO THE FEE
-FOR-SERVICE AGREEMENT NEGOTIATED
PURSUANT TO SECTION
23-18-303.5 FOR THAT STATE FISCAL YEAR IS
REDUCED BY THE AMOUNT OF ANY EXCESS ESCROW MONEY AND THE
UNIVERSITY SHALL USE THE REMAINING ESCROW MONEY TO OFFSET THE
REDUCTION
.
SECTION 5. Capital construction appropriation. For the
2024-25 state fiscal year, the general assembly anticipates that the
PAGE 13-HOUSE BILL 24-1231 department of higher education will receive $246,936,092 in cash funds
from the proceeds of the financed purchase of asset or certificate of
participation agreements executed pursuant to section 24-36-124, C.R.S.
This figure is subject to the "(I)" notation as defined in the annual general
appropriation act for the same fiscal year. To implement this act, the
department is anticipated to use this amount as follows:
(a) $127,542,028 for construction of the college of osteopathic
medicine at the university of northern Colorado;
(b) $50,000,000 for construction of the health institute tower at
Metropolitan university of Denver;
(c) $50,000,000 for construction of the veterinary health education
complex at Colorado state university; and
(d) $19,394,064 for renovation of the valley campus main building
at Trinidad state college.
SECTION 6. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 14-HOUSE BILL 24-1231 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 15-HOUSE BILL 24-1231