First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0786.02 Pierce Lively x2059
SENATE BILL 25-173
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE CLASSIFICATION OF CERTAIN STATE REVENUE FOR101
PURPOSES OF CALCULATING ST ATE FISCAL YEAR SPENDING102
PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE103
CONSTITUTION, AND, IN CONNECTION THEREWITH , CLARIFYING104
THE STATUTORY DEFINITIONS OF DAMAGE AWARDS AND105
PROPERTY SALE FOR PURPOSES OF CALCULATING STATE FISCAL106
YEAR SPENDING.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
.)
SENATE SPONSORSHIP
Weissman,
HOUSE SPONSORSHIP
(None),
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. Section 20 of article X of the state constitution (TABOR) defines
"fiscal year spending" as not including either "damage awards" or
"property sales". Although TABOR does not define either "damage
award" or "property sale", the TABOR implementing statutes do. The bill
clarifies both of these definitions for state fiscal years commencing on or
after July 1, 2024.
The bill clarifies that "damage award", as used for the purpose of
determining whether specific money received by the state is subject to the
TABOR limitation on state fiscal year spending, includes certain civil
penalties imposed by the state.
The bill also clarifies that "property sale", as used for the purpose
of determining whether specific money received by the state is subject to
the TABOR limitation on state fiscal year spending, includes certain
specified sales by the state.
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) Section 20 (2)(e) of article X of the state constitution exempts4
"damage awards" and "property sales" from "fiscal year spending", as5
defined in section 20 (2)(e) of article X of the state constitution;6
(b) Under the existing statutory definition of "damage award",7
some money that the state collects as fines or penalties for violations of8
certain legal requirements is treated as state fiscal year spending when9
determining whether the state has exceeded the state's fiscal year10
spending limit despite the constitutional exemption for such collections; 11
(c) It is inconsistent with section 20 of article X of the state12
constitution to treat money that the state collects as fines or penalties for13
violations of certain legal requirements as state revenue in light of the14
specific exemption for "damage awards";15
(d) Under the existing statutory definition of "property sales",16
some money that the state collects from sales of tangible or intangible17
SB25-173-2- assets is treated as state fiscal year spending when determining whether1
the state has exceeded the state's fiscal year spending limit despite the2
constitutional exemption for such collections;3
(e) It is inconsistent with section 20 of article X of the state4
constitution to treat money that the state collects from sales of tangible or5
intangible assets as state fiscal year spending in light of the specific6
exemption for "property sales"; and7
(f) Nothing in this act operates to exclude any money that has8
been included as "damage awards" or "property sales" under the9
preexisting definitions of those terms from the clarified definitions of10
those terms in this act - that money continues to be included in these11
clarified definitions.12
SECTION 2. In Colorado Revised Statutes, 24-77-102, amend13
(2) and (11) as follows:14
24-77-102. Definitions. As used in this article 77, unless the15
context otherwise requires:16
(2) "Damage award" means any pecuniary compensation received17
by the state as a result of:18
(a) Any judgment or allowance in favor of the state;
AND19
(b) F
OR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1,20
2024:21
(I) A
CIVIL MONETARY PENALTY ASSESSED BY THE DEPARTMENT22
OF HEALTH CARE POLICY AND FINANCING PURSUANT TO SECTION23
25.5-6-205;24
(II) A
CIVIL MONETARY PENALTY IMPOSED BY THE DIVISION OF25
ADMINISTRATION OF THE DEPARTMENT OF PUBLIC HEALTH AND26
ENVIRONMENT PURSUANT TO SECTION 25-8-608;27
SB25-173
-3- (III) A MONETARY PENALTY IMPOSED BY THE ENERGY AND1
CARBON MANAGEMENT COMMISSION PURSUANT TO SECTION 34-60-1212
(1);3
(IV) A
MONETARY FINE OR PENALTY COLLECTED BY THE DIVISION4
OF ADMINISTRATION OF THE DEPARTMENT OF PUBLIC HEALTH AND5
ENVIRONMENT PURSUANT TO SECTION 25-7-115, 25-7-122, OR 25-7-1236
AND DEPOSITED IN THE COMMUNITY IMPACT CASH FUND CREATED IN7
SECTION 25-7-129; AND8
(V) A
MONETARY PENALTY COLLECTED BY THE DIVISION OF LABOR9
STANDARDS AND STATISTICS OF THE DEPARTMENT OF LABOR AND10
PURSUANT TO SECTION 8-1-114.11
(11) "Property sale" means:12
(a) Any transfer of the ownership of an estate in tangible assets or13
intangible rights, excluding leasehold interests, in which or to which the14
state has rights protected by law from the state to any party for15
consideration; or
16
(b) Any contract resulting in the payment of pecuniary17
compensation to the state for permitting another to exploit, use, or market18
nonrenewable natural resources which are located on real property owned19
by the state and which are subject to depletion with use;
OR20
(c) F
OR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1,21
2024,
A TRANSFER OF RIGHTS IN TANGIBLE OR INTANGIBLE PROPERTY ,22
EXCLUDING LEASEHOLD INTERESTS , IN WHICH OR TO WHICH THE STATE23
HAS RIGHTS PROTECTED BY LAW FROM THE STATE TO ANY PARTY FOR24
CONSIDERATION. SUCH A TRANSFER OF RIGHTS INCLUDES:25
(I) S
ALES AT THE HISTORY COLORADO CENTER;26
(II) S
ALES AT STATE HISTORICAL SOCIETY MUSEUMS OTHER THAN27
SB25-173
-4- THE HISTORY COLORADO CENTER;1
(III) S
ALES OF SUPPLIES RELATED TO AGRICULTURAL INSPECTIONS ;2
(IV) S
ALES OF SUPPLIES RELATED TO WILDFIRE EQUIPMENT REPAIR; 3
(V) S
ALES OF SUPPLIES RELATED TO PESTICIDE INSPECTIONS ;4
(VI) S
ALES RELATED TO THE CORRECTIONAL EDUCATION PROGRAM5
ESTABLISHED IN SECTION 17-32-105;6
(VII) S
ALES RELATED TO THE BUSINESS ENTERPRISE PROGRAM7
CREATED IN PART 2 OF ARTICLE 84 OF TITLE 8;8
(VIII) N
ON-CONCESSION SALES AT THE COLORADO STATE FAIR;9
AND10
(IX) T
HE SALE OF WINE FOR PROMOTIONAL PURPOSES BY THE11
C
OLORADO WINE INDUSTRY DEVELOPMENT BOARD , CREATED IN ARTICLE12
29.5
OF TITLE 35.13
SECTION 3. Safety clause. The general assembly finds,14
determines, and declares that this act is necessary for the immediate15
preservation of the public peace, health, or safety or for appropriations for16
the support and maintenance of the departments of the state and state17
institutions.18
SB25-173
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