State Fiscal Policies Relating to Section 20 of Article X of the State Constitution

C.R.S. tit. 24, art. 77

in effect

C.R.S. § 24-77-101 Legislative declaration

24-77-101. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) Section 20 of article X of the state constitution, which was approved by the registered electors of this state at the 1992 general election, limits fiscal year spending of the state government; (b) It is within the legislative prerogative of the general assembly to enact legislation which will facilitate the operation of section 20 of article X; (c) It is a legislative prerogative to facilitate compliance with the state fiscal year spending limit and legislation to implement section 20 of article X as it relates to state government is a reasonable and necessary exercise of the legislative prerogative; (d) In interpreting the provisions of section 20 of article X, the general assembly has attempted to give the words of said constitutional provision their natural and obvious significance; (e) Where the meaning of section 20 of article X is uncertain, the general assembly has attempted to ascertain the intent of those who adopted the measure and, when appropriate, the intent of the proponents, as well as to apply other generally accepted rules of construction; (f) The content of this article represents the considered judgment of the general assembly as to the meaning of the provisions of section 20 of article X as it relates to state government. (2) The general assembly further finds and declares that: (a) The adoption of section 20 of article X imposes a limit on state fiscal year spending and the provisions of this article were enacted to facilitate compliance with the state fiscal year spending limit; (b) This article reflects the judgment of the general assembly regarding the meaning and implementation of section 20 of article X of the state constitution as it relates to state government; (c) The provisions of this article should not be construed to substitute for generally accepted accounting principles which are applicable to financial documents and reports of state government; (d) The purpose of preparing figures in accordance with this article, to ensure compliance with the state fiscal year spending limit, may differ from the purpose of preparing financial statements of the state, to determine the financial condition of the state; (e) The financial statements of the state prepared by the state controller shall be prepared, insofar as possible, in conformity with generally accepted accounting principles; and (f) The financial report required by this article shall be prepared in conformity with generally accepted accounting principles unless otherwise provided by law or unless an irreconcilable conflict exists between generally accepted accounting principles and the provisions of section 20 of article X in which case the provisions of said constitutional provision shall control. (3) The general assembly further finds and declares that: (a) When revenues exceed the state fiscal year spending limitation for any given fiscal year, section 20 (7)(d) of article X of the state constitution requires that the excess revenues be refunded in the next fiscal year unless voters approve a revenue change allowing the state to retain the revenues; (b) It is the duty and intent of the general assembly to comply with the constitutional requirement to refund state excess revenues; (c) It is within the legislative prerogative to facilitate compliance with the constitutional requirement to refund state excess revenues and legislation relating to the refunding of such excess revenues is a reasonable and necessary exercise of the legislative prerogative; and (d) State excess revenues that are carried forward from the fiscal year in which they accrued shall be refunded in the next fiscal year and shall not be available for any other governmental purpose unless voters have authorized the state to retain such revenues.

C.R.S. § 24-77-102 Definitions

24-77-102. Definitions. As used in this article 77, unless the context otherwise requires: (1) (a) "Collections for another government" means any revenue that is collected by the state for the benefit and use of another government other than the state and passed through to that government other than the state for the benefit of and use by that government. (b) For state fiscal years commencing on or after July 1, 2023, notwithstanding the definition of "collections for another government" in subsection (1)(a) of this section, the only revenues collected by the state for the benefit and use of another government other than the state and passed through to that government other than the state for the benefit of and use by that government that qualify as "collections for another government" without further identification by the general assembly are revenues collected pursuant to: (I) The authority of the government for whose benefit the state collects the revenue; (II) The authority of the state and apportioned to another government in connection with that government forgoing the imposition of certain taxes and collecting the corresponding tax revenue; or (III) A constitutional requirement that the state collect the revenue for the benefit of another government. (c) "Collections for another government", with respect to revenue that is collected in accordance with subsection (1)(b)(II) of this section, includes the revenue from the gross state cigarette tax, as defined in section 39-22-623 (1)(a)(II)(A), collected by the state pursuant to article 28 of title 39, and passed through by direct distribution to any government other than the state pursuant to sections 24-22-118 and 39-22-623. (d) "Collections for another government", with respect to revenue that is collected in accordance with subsection (1)(b)(III) of this section, includes the limited gaming tax revenues that are collected by the state pursuant to section 9 (5)(a) of article XVIII of the state constitution and section 44-30-601 and passed through by direct distribution only, and not through grants, to any government other than the state pursuant to section 9 (5)(b)(II) and (5)(b)(III) of article XVIII of the state constitution and sections 44-30-701 (1)(d)(II) to (1)(d)(IV), 44-30-1201 (1), and 44-30-1202. (2) "Damage award" means any pecuniary compensation received by the state as a result of any judgment or allowance in favor of the state. (3) "Enterprise" means a government-owned business: (a) Which has authority to issue its own revenue bonds; and (b) Which receives less than ten percent of its annual revenues in grants from all state and local governments in Colorado combined. (4) "Expenditure" means the appropriation or disbursement of any state general fund or cash fund moneys for any expense incurred by the state. (5) "Federal funds" means any pecuniary resources received by the state from the national government of the United States. (6) "Gift" means something of value which is given to the state voluntarily by any person or entity, regardless of whether such person or entity specifies the purpose or purposes for which such thing of value is to be used. "Gift" includes, but is not limited to, voluntary contributions received by the state as a result of any state voluntary contribution program established pursuant to article 22 of title 39, C.R.S. "Gift" does not include federal funds or any pecuniary compensation received by the state from any other governmental entity. (7) (a) "Grant" means any direct cash subsidy or other direct contribution of money from the state or any local government in Colorado which is not required to be repaid. ult of any state voluntary contribution program established pursuant to article 22 of title 39, C.R.S. "Gift" does not include federal funds or any pecuniary compensation received by the state from any other governmental entity. (7) (a) "Grant" means any direct cash subsidy or other direct contribution of money from the state or any local government in Colorado which is not required to be repaid. (b) "Grant" does not include: (I) Any indirect benefit conferred upon an enterprise from the state or any local government in Colorado; (II) Any revenues resulting from rates, fees, assessments, or other charges imposed by an enterprise for the provision of goods or services by such enterprise; (III) Any federal funds, regardless of whether such federal funds pass through the state or any local government in Colorado prior to receipt by an enterprise; (IV) Any moneys received by the division of parks and wildlife, created in section 33-9-104, from the great outdoors Colorado trust fund established in section 2 of article XXVII of the state constitution; (V) Any revenues received by the division of brand inspection created in section 24-1-123 (4)(g)(I). (8) "Inflation" means the percentage change in the consumer price index for the Denver-Boulder consolidated metropolitan statistical area for all urban consumers, all goods, as published by the United States department of labor, bureau of labor statistics, or its successor index. (9) "Pension contributions by employees" means the amount contributed by state employees to the retirement plans of such employees. (10) "Pension fund earnings" means the amount which is earned from the investment of moneys set apart for the payment of retirement income for state employees. (11) "Property sale" means: (a) Any transfer of the ownership of an estate in tangible assets or intangible rights, excluding leasehold interests, in which or to which the state has rights protected by law from the state to any party for consideration; or (b) Any contract resulting in the payment of pecuniary compensation to the state for permitting another to exploit, use, or market nonrenewable natural resources which are located on real property owned by the state and which are subject to depletion with use. (12) "Reserve" means any unrestricted general fund or cash fund year-end balance which is held by the state to meet any needs or demands. (13) "Reserve increase" means any action which has the effect of increasing a reserve. (14) "Reserve transfers or expenditures" means moneys which are passed from one fund of cash or assets held by the state as a reserve to another such fund or moneys which are disbursed from such fund. (15) (a) "Special purpose authority" means any entity that is created pursuant to state law to serve a valid public purpose, which is either a political subdivision of the state or an instrumentality of the state, which is not an agency of the state, and which is not subject to administrative direction by any department, commission, bureau, or agency of the state. ch are disbursed from such fund. (15) (a) "Special purpose authority" means any entity that is created pursuant to state law to serve a valid public purpose, which is either a political subdivision of the state or an instrumentality of the state, which is not an agency of the state, and which is not subject to administrative direction by any department, commission, bureau, or agency of the state. (b) "Special purpose authority" includes, but is not limited to: (I) The Colorado housing and finance authority created pursuant to section 29-4-704, C.R.S.; (II) The university of Colorado hospital authority created pursuant to section 23-21-503 (1), C.R.S.; (III) The Colorado water resources and power development authority created pursuant to section 37-95-104 (1), C.R.S.; (IV) Pinnacol Assurance created pursuant to section 8-45-101, C.R.S.; (V) The Colorado educational and cultural facilities authority created pursuant to section 23-15-104 (1), C.R.S.; (VI) The Colorado health facilities authority created pursuant to section 25-25-104 (1), C.R.S.; (VII) (Deleted by amendment, L. 2000, p. 1296, § 19, effective May 26, 2000.) (VIII) The Colorado agricultural development authority created pursuant to section 35-75-104 (1), C.R.S.; (IX) The public employees' retirement association created pursuant to section 24-51-201 (1); (X) The Denver health and hospital authority created pursuant to section 25-29-103 (1), C.R.S.; (XI) The Pueblo depot activity development authority created pursuant to section 29-23-104, C.R.S.; (XII) and (XIII) Repealed. (XIV) The venture capital authority created in section 24-46-202; (XV) The statewide internet portal authority created pursuant to section 24-37.7-102, C.R.S.; (XVI) Repealed. (XVII) The Colorado channel authority created pursuant to article 49.9 of this title; (XVIII) Repealed. (XIX) The Colorado electric transmission authority created in section 40-42-103 (1); (XX) The middle-income housing authority created in section 29-4-1104 (1); and (XXI) The equal justice authority created in section 13-5.7-202. (16) (a) "State" means the central civil government of the state of Colorado, which shall consist of the following: (I) The legislative, executive, and judicial branches of government established by article III of the state constitution; (II) All organs of the branches of government specified in subparagraph (I) of paragraph (a) of this subsection (16), including the departments of the executive branch; the legislative houses and agencies; and the appellate and trial courts and court personnel; and (III) State institutions of higher education. (b) "State" does not include: (I) Any enterprise; (I.5) An institution or group of institutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.7, C.R.S.; (I.6) An institution or group of institutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.8, C.R.S.; (II) Any special purpose authority; (III) Any organization declared to be a joint governmental entity under section 2-3-311 (2), C.R.S. nstitutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.7, C.R.S.; (I.6) An institution or group of institutions of higher education that has been designated as an enterprise pursuant to section 23-5-101.8, C.R.S.; (II) Any special purpose authority; (III) Any organization declared to be a joint governmental entity under section 2-3-311 (2), C.R.S. (17) (a) "State fiscal year spending" means all state expenditures and reserve increases occurring during any given fiscal year as established by section 24-30-204, including, but not limited to, state expenditures or reserve increases from: (I) Moneys received by the state from enterprises; and (II) Cash funds of state institutions of higher education. For purposes of this subparagraph (II), "cash funds" means funds received from tuition income, fees, indirect cost recoveries, and other sources of funds that can be appropriated as cash funds from state institutions of higher education, excepting those funds derived from gifts, federal funds, or other sources for which any expenditure or reserve increase is not subject to the provisions of section 20 of article X of the state constitution. (III) and (IV) (Deleted by amendment, L. 2000, p. 2044, § 6, effective December 28, 2000.) (b) "State fiscal year spending" does not include reserve transfers or expenditures or any state expenditures or reserve increases: (I) For refunds of excess state revenues made in the current fiscal year or in the subsequent fiscal year; (II) From gifts, including any interest earned thereon; (III) From federal funds, including any interest earned thereon; (IV) From collections for another government; (V) From pension contributions by employees; (VI) From pension fund earnings; (VII) From damage awards, including any interest earned thereon; (VIII) From property sales, including any interest earned on proceeds therefrom; and (IX) From net proceeds from state-supervised lottery games, as defined in section 3 (1) of article XXVII of the state constitution.

C.R.S. § 24-77-103 Limitation on state fiscal year spending - legislative declaration - report

24-77-103. Limitation on state fiscal year spending - legislative declaration - report. (1) For fiscal year 1993-94 and each fiscal year thereafter, state fiscal year spending shall not exceed an amount equal to: (a) State fiscal year spending for the previous fiscal year as may be adjusted pursuant to the provisions of section 24-77-103.5; as modified by (b) An amount equal to a percentage calculated pursuant to subsection (2) of this section times the state fiscal year spending for the previous fiscal year, as adjusted for qualification and disqualification of enterprises, as adjusted pursuant to the provisions of subsection (2.3) of this section, and as reduced by an amount equal to: (I) Annual debt service changes; and (II) Refunds made pursuant to section 20 (1) and (3)(c) of article X of the state constitution; and (III) The amount of any revenues resulting from approval by a majority of the registered electors of the state voting on the issue at a statewide election held after 1991; as modified by (c) To the extent not otherwise included in state fiscal year spending for the previous fiscal year, an amount equal to: (I) Annual debt service changes; and (II) Refunds made pursuant to section 20 (1) and (3)(c) of article X of the state constitution; and (III) An amount of any revenues resulting from approval by a majority of the registered electors of the state voting on the issue at a statewide election held after 1991. (2) (a) (I) For purposes of paragraph (b) of subsection (1) of this section, and in accordance with section 20 (7)(a) of article X of the state constitution, the percentage of allowable increase in state fiscal year spending shall equal the sum of inflation as modified by the percentage change in state population in the prior calendar year. (II) The general assembly hereby finds and declares that: (A) Section 20 (7)(a) of article X of the state constitution requires the maximum annual percentage change in state fiscal year spending to equal inflation plus the percentage change in state population in the prior calendar year adjusted for revenue changes approved by voters. (B) It is the considered judgment of the general assembly that the inclusion of inflation and the percentage change in state population in the prior calendar year when calculating the maximum annual percentage change in state fiscal year spending is designed to allow state fiscal year spending to increase to the extent necessary, but only to the extent necessary, to ensure that state population growth and inflation, which are factors beyond the direct control of state government, do not unduly affect the ability of the state to fund transportation projects and other projects and services needed to meet the demands of a growing population. (III) The general assembly further finds and declares that: (A) For the purpose of determining the maximum percentage change in state fiscal year spending for any given fiscal year, section 20 (7)(a) of article X of the state constitution requires the state to annually determine population by annual federal census estimates and to further adjust the population determined every decade to match the decennial federal census. (B) Section 20 (7)(a) of article X of the state constitution does not specify how adjustments to population to match the decennial federal census are to be made and it is therefore within the legislative prerogative to determine the manner in which such adjustments are to be made. census estimates and to further adjust the population determined every decade to match the decennial federal census. (B) Section 20 (7)(a) of article X of the state constitution does not specify how adjustments to population to match the decennial federal census are to be made and it is therefore within the legislative prerogative to determine the manner in which such adjustments are to be made. (C) The results of the 2000 federal census indicate that the annual federal census estimates used to determine population for the purpose of determining the maximum annual percentage change in state fiscal year spending in the fiscal years prior to the 2001-02 fiscal year underestimated population growth in the state, which caused a cumulative reduction in the maximum annual percentage change in state fiscal year spending during the prior fiscal years, resulted in over-refunds of state revenues during the prior fiscal years, and impaired the state's ability to fund transportation projects and other projects and services needed to meet the demands of the state's growing population. (D) It is consistent with the purposes of section 20 (7)(a) of article X of the state constitution for the general assembly to enact legislation that will ensure that the state can recoup state revenues lost because the underestimates of population growth in the state in the fiscal years prior to the 2001-02 fiscal year resulted in over-refunds of state revenues and that the state can also recoup state revenues lost in the future due to over-refunds resulting from future underestimates of population growth. (E) The mechanism for allowing the adjustment of population every decade to match the federal census to occur over more than one fiscal year when the actual amount of state fiscal year spending for the first fiscal year in which such an adjustment can be made is insufficient to allow the state to recoup the full amount of all over-refunds resulting from underestimates of population growth that is set forth in subparagraph (II.5) of paragraph (b) of this subsection (2), is reasonable, necessary, in the best interests of the state, and consistent with the requirements and objectives of section 20 (7)(a) of article X of the state constitution. (b) (I) Except as otherwise provided in subparagraphs (II) and (II.5) of this paragraph (b), the percentage change in state population for any given calendar year shall be the percentage change between the estimate of state population due to be issued by the United States bureau of census in December of such calendar year with a reference date of July 1 of the same calendar year and the estimate of state population due to be issued by the United States bureau of census in December of the same calendar year with a reference date of July 1 of the immediately preceding calendar year. (II) Except as otherwise provided in subparagraph (II.5) of this paragraph (b), for any calendar year for which an estimate of state population is not issued due to the federal census of the United States bureau of census, the percentage change in state population for such calendar year shall be the percentage change between the state population as reported in the federal census conducted by the United States bureau of census due in December of such calendar year and the estimate of state population due to be issued by the United States bureau of census in December of the same year with a reference date of July 1 of the immediately preceding calendar year. for such calendar year shall be the percentage change between the state population as reported in the federal census conducted by the United States bureau of census due in December of such calendar year and the estimate of state population due to be issued by the United States bureau of census in December of the same year with a reference date of July 1 of the immediately preceding calendar year. (II.5) (A) If the limitation on state fiscal year spending for a given fiscal year is calculated with a percentage of allowable increase in state fiscal year spending that includes a percentage change in state population determined in accordance with subparagraph (II) of this paragraph (b) and the limitation on state fiscal year spending exceeds the actual amount of state fiscal year spending for that fiscal year, the percentage change in state population shall be reduced so that the limitation on state fiscal year spending for that fiscal year calculated with a percentage of allowable increase in state fiscal year spending that includes such reduced percentage change in state population equals the amount of state fiscal year spending for that fiscal year. (B) The difference between the percentage change in state population determined in accordance with subparagraph (II) of this paragraph (b) and the reduced percentage change in state population used to calculate the limitation on state fiscal year spending pursuant to sub-subparagraph (A) of this subparagraph (II.5) shall be carried forward as an adjustment of the percentage change in state population determined pursuant to subparagraph (I) of this paragraph (b) for a maximum period of nine fiscal years. If the amount of state fiscal year spending for the immediately subsequent fiscal year exceeds the limitation on state fiscal year spending for that fiscal year, the unused adjustment shall be added first to the percentage change in state population determined pursuant to subparagraph (I) of this paragraph (b) that is included in the percentage of the allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for that fiscal year to the greatest extent possible without causing the limitation on state fiscal year spending to exceed the actual amount of state fiscal year spending for that fiscal year. (C) Any remaining portion of the unused adjustment shall continue to be added, to the greatest extent possible, to the percentage change in state population determined pursuant to subparagraph (I) of this paragraph (b) that is included in the percentage of allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for subsequent fiscal years without causing the limitation on state fiscal year spending for a given fiscal year to exceed the actual amount of state fiscal year spending for that fiscal year. (D) Any portion of the unused adjustment that remains unused after the expiration of the maximum period of nine fiscal years shall not be included in the percentage of allowable increase in state fiscal year spending used in calculating the limitation on state fiscal year spending for any fiscal year subsequent to the expiration of such period. (III) The department of local affairs shall notify the president of the senate, the speaker of the house of representatives, the governor, and the chairman of the joint budget committee of the general assembly of the percentage change in state population calculated pursuant to this paragraph (b) no later than January 15 following the calendar year for which such percentage is calculated. Such percentage shall not be subject to later modification based upon any subsequent revision of census counts or population estimates issued by the United States bureau of the census. committee of the general assembly of the percentage change in state population calculated pursuant to this paragraph (b) no later than January 15 following the calendar year for which such percentage is calculated. Such percentage shall not be subject to later modification based upon any subsequent revision of census counts or population estimates issued by the United States bureau of the census. (2.3) (a) The general assembly hereby finds and declares that section 20 of article X of the state constitution fails to provide guidance as to how the absorption of an existing local government district by the state is to be treated for purposes of compliance with said constitutional provision. The general assembly further finds and declares that it is not reasonable for state fiscal year spending to remain at the same level, with an accompanying reduction in revenues available to fund other state services, in order that the state may absorb local government districts that provide higher education services. The general assembly further finds and declares that the method of absorbing local government districts that provide higher education services by the state for purposes of compliance with section 20 of article X of the state constitution embodied in this subsection (2.3) reasonably restrains most the growth of government since government as a whole has not grown while preserving essential state services. (b) For purposes of paragraph (b) of subsection (1) of this section, when any local government district that provides higher education services joins the state, the amount of state fiscal year spending allowable for the fiscal year in which such joinder takes effect shall be adjusted by the amount of fiscal year spending of such local government district that provides higher education services in accordance with section 20 of article X of the state constitution in the current fiscal year. (3) The base for the calculation of state reserve increases for fiscal year 1992-93 shall be the state unrestricted year-end fund balances of the state general fund and of all state cash funds for fiscal year 1991-92. For purposes of this section, the amount of said state unrestricted year-end fund balances does not constitute and shall not be included in state fiscal year spending for fiscal year 1992-93. (4) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, the state may refuse to accept any moneys, in whole or in part, from any enterprise in any given fiscal year, notwithstanding any law to the contrary. (5) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, the state may refuse to accept any gift, including but not limited to real property, for which state expenditures would be required for the maintenance and operation of such gift and which does not include sufficient revenues for said purposes. (6) (a) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, any moneys continuously appropriated by a permanent statute or constitutional provision shall be included in the general appropriation bill for informational purposes. (b) The authority to expend such moneys shall be modified only by duly enacted amendment to the permanent statute or constitutional provision which continuously appropriates such moneys. set forth in subsection (1) of this section, any moneys continuously appropriated by a permanent statute or constitutional provision shall be included in the general appropriation bill for informational purposes. (b) The authority to expend such moneys shall be modified only by duly enacted amendment to the permanent statute or constitutional provision which continuously appropriates such moneys. (c) Except as otherwise provided in this paragraph (c), any moneys continuously appropriated by a permanent statute or constitutional provision shall be subject to revenue and expenditure limits established annually by the general assembly as provided by law for the purpose of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section. The provisions of this paragraph (c) shall not apply to moneys continuously appropriated to the limited gaming control commission pursuant to section 9 of article XVIII of the state constitution. (7) For purposes of complying with the limitation on state fiscal year spending set forth in subsection (1) of this section, and notwithstanding section 24-1-136 (11)(a)(I), each state institution of higher education shall prepare a written report for each quarter of the fiscal year, which shall include the total amount of net revenues generated during such period from any facility, activity, or operation managed by such state institution of higher education that is an enterprise and the total amount of such net revenues and any other thing of value received by such state institution of higher education from such enterprises. The report shall be filed with the president of the senate, the speaker of the house of representatives, and the chair of the joint budget committee no later than thirty days after the close of such period.

C.R.S. § 24-77-103.5 Legislative declaration - correction of errors - authority of the controller and auditor

24-77-103.5. Legislative declaration - correction of errors - authority of the controller and auditor. (1) The general assembly finds and declares that ascertaining compliance with the provisions of section 20 of article X of the state constitution requires that accurate calculations be made of state fiscal year spending. The general assembly further finds and declares that it is reasonable to account for any errors in calculating state fiscal year spending by authorizing the controller to make equivalent adjustments in state fiscal year spending for the fiscal year in which such errors are discovered in accordance with the provisions of this subsection (1). (2) For purposes of section 24-77-103, for any given fiscal year, if the controller discovers an error involving a prior fiscal year by whatever means available affecting the calculation of state fiscal year spending, the controller may correct such error by increasing or decreasing in an appropriate amount the allowable state fiscal year spending for the fiscal year in which such error is discovered, subject to a review of such adjustment by the state auditor.

C.R.S. § 24-77-103.6 Retention of excess state revenues - general fund exempt account - required uses - excess state revenues legislative report - definitions

24-77-103.6. Retention of excess state revenues - general fund exempt account - required uses - excess state revenues legislative report - definitions. (1) (a) Notwithstanding any provision of law to the contrary, for each fiscal year commencing on or after July 1, 2005, but before July 1, 2010, the state shall be authorized to retain and spend all state revenues in excess of the limitation on state fiscal year spending. (b) Notwithstanding any provision of law to the contrary, for each fiscal year commencing on or after July 1, 2010, the state shall be authorized to retain and spend all state revenues that are in excess of the limitation on state fiscal year spending, but less than the excess state revenues cap for the given fiscal year. (2) There is hereby created in the general fund the general fund exempt account, which consists of an amount of money equal to the amount of state revenues in excess of the limitation on state fiscal year spending that the state retains for a given fiscal year pursuant to this section, except as otherwise provided in subsection (2.5) of this section. The general assembly shall appropriate or transfer the money in the account for the following purposes: (a) To fund health care; (b) To fund education, including any capital construction projects related thereto; (c) To fund retirement plans for firefighters and police officers, so long as the general assembly determines that such funding is necessary; and (d) To pay for strategic transportation projects included in the department of transportation's strategic transportation project investment program. (2.5) (a) If the amount of money that, based on revenue estimates, was appropriated or transferred from the account for a state fiscal year commencing on or after July 1, 2020, is less than the amount of approved excess state revenues, then: (I) An amount of money in the general fund equal to the unaccounted amount constitutes a portion of the approved excess state revenues for the state fiscal year; and (II) An amount equal to one-half of the unaccounted amount for the general fund appropriations for both of the following line items are appropriations of the state's approved excess state revenues for the state fiscal year: (A) The line item for medical and long-term care services for medicaid eligible individuals, or a successor line item, which is an authorized use specified in section 24-77-104.5 (2)(a)(I)(I); and (B) The state share of districts' total program funding, or a successor line item, which is an authorized use specified in section 24-77-104.5 (3)(a)(I). (b) If the amount of money that, based on estimates, was appropriated or transferred from the account for a state fiscal year commencing on or after July 1, 2020, is greater than the amount of approved excess state revenues, then an amount of money in the account equal to the overage is not approved excess state revenues for the state fiscal year. The amount of each appropriation or transfer from the account for the fiscal year that constitutes approved excess state revenues is equal to the amount of the appropriation or transfer, reduced in proportion to the overage. than the amount of approved excess state revenues, then an amount of money in the account equal to the overage is not approved excess state revenues for the state fiscal year. The amount of each appropriation or transfer from the account for the fiscal year that constitutes approved excess state revenues is equal to the amount of the appropriation or transfer, reduced in proportion to the overage. (c) As used in this subsection (2.5), unless the context otherwise requires: (I) "Account" means the general fund exempt account created in subsection (2) of this section. (II) "Approved excess state revenues" means the state revenues that the state is authorized to retain and spend for a state fiscal year in accordance with the voters' approval of this section at the November 2005 statewide election, as reported by the state controller in the annual financial report required by section 24-77-106.5 (1)(b), or, if the amount changes in the final accounting for the state fiscal year, in the comprehensive annual financial report of the state for the state fiscal year. (III) "Overage" means the amount by which the amount of money appropriated or transferred from the account for a state fiscal year exceeds the approved excess state revenues for the state fiscal year. (IV) "Unaccounted amount" means the amount by which the approved excess state revenues for a state fiscal year exceed the amount of money appropriated or transferred from the account for the state fiscal year. (3) The statutory limitation on general fund appropriations set forth in section 24-75-201.1 (1)(a), and the exceptions or exclusions thereto, shall apply to the moneys in the general fund exempt account. (4) The approval of this section by the registered electors of the state voting on the issue at the November 2005 statewide election constitutes a voter-approved revenue change to allow the retention and expenditure of state revenues in excess of the limitation on state fiscal year spending. (5) (a) For each fiscal year that the state retains and spends state revenues in excess of the limitation on state fiscal year spending pursuant to this section, the director of research of the legislative council shall prepare an excess state revenues legislative report that includes the following information: (I) The amount of excess state revenues that the state retained; and (II) A description of how the excess state revenues were expended. (b) The report required by this subsection (5) shall be completed by October 15 following a fiscal year that the state retains and spends revenues in excess of the limitation on state fiscal year spending pursuant to this section and may be amended thereafter as necessary. The director of research shall publish and link to the official website of the general assembly a copy of the report. (6) As used in this section: (a) "Education" means: (I) Public elementary and high school education; and (II) Higher education. ins and spends revenues in excess of the limitation on state fiscal year spending pursuant to this section and may be amended thereafter as necessary. The director of research shall publish and link to the official website of the general assembly a copy of the report. (6) As used in this section: (a) "Education" means: (I) Public elementary and high school education; and (II) Higher education. (b) (I) "Excess state revenues cap" for a given fiscal year means: (A) (Deleted by amendment, L. 2017.) (B) For each fiscal year up to and including the 2016-17 fiscal year, an amount that is equal to the highest total state revenues for a fiscal year from the period of the 2005-06 fiscal year through the 2009-10 fiscal year, adjusted each subsequent fiscal year for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes; (C) For the 2017-18 fiscal year, an amount that is equal to the excess state revenues cap for the 2016-17 fiscal year calculated pursuant to subsection (6)(b)(I)(B) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes, less two hundred million dollars; (D) For the 2018-19 fiscal year, the amount of the excess state revenues cap for the 2017-18 fiscal year calculated pursuant to subsection (6)(b)(I)(C) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes; (E) For the 2019-20 fiscal year, the amount of the excess state revenues cap for the 2018-19 fiscal year calculated pursuant to subsection (6)(b)(I)(D) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes; (F) For the 2020-21 fiscal year, an amount that is equal to the excess state revenues cap for the 2019-20 fiscal year calculated pursuant to subsection (6)(b)(I)(E) of this section, adjusted for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes, plus two hundred twenty-four million nine hundred fifty-seven thousand six hundred two dollars; and (G) For the 2021-22 fiscal year and each succeeding fiscal year, the amount of the excess state revenues cap for the 2020-21 fiscal year calculated pursuant to subsection (6)(b)(I)(F) of this section, adjusted each subsequent fiscal year for inflation, the percentage change in state population, the qualification or disqualification of enterprises, and debt service changes. (II) As used in this paragraph (b), inflation and the percentage change in state population shall be the same rates that are used in calculating the maximum annual percentage change in state fiscal year spending pursuant to section 24-77-103, and the qualification or disqualification of an enterprise or debt service changes shall change the excess state revenues cap in the same manner as such change affects the limitation on state fiscal year spending. (c) "State revenues" means state revenues not excluded from state fiscal year spending, as defined in section 24-77-102 (17).

C.R.S. § 24-77-103.7 Over-refunds of state revenues - definitions

24-77-103.7. Over-refunds of state revenues - definitions. (1) For purposes of this section, "over-refund" means a refund of state revenues that occurs when, through one or more mechanisms utilized pursuant to law to refund state revenues in excess of the limitation on state fiscal year spending for any given fiscal year, the amount of state revenues actually refunded during any given fiscal year exceeds the amount of state revenues in excess of the limitation on state fiscal year spending for the immediately preceding fiscal year required to be refunded without making any calculations or reductions as otherwise provided in this section. (2) The amount of any over-refunds actually made in a fiscal year commencing on or after July 1, 2001, that have not been used to reduce the amount of state revenues in excess of the limitation on state fiscal year spending for said fiscal year in accordance with the provisions of this section shall be carried forward as a reduction of subsequent fiscal years' state revenues in excess of the limitation on state fiscal year spending and shall be applied first to the earliest fiscal years possible. (3) For the fiscal year commencing on July 1, 2004, the controller shall: (a) Calculate state fiscal year spending for the fiscal year in accordance with the provisions of section 24-77-103 without making any reduction in state fiscal year spending for the amount of over-refunds actually made in said fiscal year or for the amount of any over-refunds made in the fiscal years commencing on or after July 1, 2001, but prior to July 1, 2004, that have been carried forward to said fiscal year in accordance with subsection (2) of this section; and (b) Reduce the sum of the amount of state revenues in excess of the limitation on state fiscal year spending for said fiscal year and the amount of any unrefunded state revenues in excess of the limitation on state fiscal year spending for the fiscal years commencing on or after July 1, 2001, but prior to July 1, 2004, that have been carried forward to said fiscal year in accordance with section 24-77-103.8 (3) by an amount equal to the sum of the amount of over-refunds actually made in said fiscal year and the amount of any over-refunds made in the fiscal years commencing on or after July 1, 2001, but prior to July 1, 2004, that have been carried forward to said fiscal year in accordance with subsection (2) of this section; however, the amount of said reduction shall not exceed the amount of state revenues in excess of the limitation on state fiscal year spending for said fiscal year. (4) For fiscal years commencing on or after July 1, 2005, the controller shall: (a) Calculate state fiscal year spending for the fiscal year in accordance with the provisions of section 24-77-103 without making any reduction in state fiscal year spending for the amount of over-refunds actually made in said fiscal year or for the amount of any over-refunds made in previous fiscal years that have been carried forward to said fiscal year in accordance with subsection (2) of this section; and state fiscal year spending for the fiscal year in accordance with the provisions of section 24-77-103 without making any reduction in state fiscal year spending for the amount of over-refunds actually made in said fiscal year or for the amount of any over-refunds made in previous fiscal years that have been carried forward to said fiscal year in accordance with subsection (2) of this section; and (b) Reduce the sum of the amount of state revenues in excess of the limitation on state fiscal year spending for the fiscal year and the amount of any unrefunded state revenues in excess of the limitation on state fiscal year spending for previous fiscal years that have been carried forward to said fiscal year in accordance with section 24-77-103.8 (3) by an amount equal to the sum of the amount of over-refunds actually made in said fiscal year and the amount of any over-refunds made in previous fiscal years that have been carried forward to said fiscal year in accordance with subsection (2) of this section; however, the amount of said reduction shall not exceed the amount of state revenues in excess of the limitation on state fiscal year spending for said fiscal year. (5) All calculations and reductions made by the controller pursuant to this section shall be subject to review by the state auditor.

C.R.S. § 24-77-103.8 Unrefunded state revenues

24-77-103.8. Unrefunded state revenues. (1) Any amount of state revenues in excess of the limitation on state fiscal year spending for the 1996-97 fiscal year that voters statewide did not authorize the state to retain and spend and that are required to be refunded pursuant to section 20 (7)(d) of article X of the state constitution, but that are not refunded by the state as required, shall be added to and refunded with any state revenues in excess of the limitation on state fiscal year spending for the 1998-99 fiscal year required to be refunded. (2) Any amount of state revenues in excess of the limitation on state fiscal year spending for the 1997-98 fiscal year and every fiscal year thereafter through the 2000-01 fiscal year that voters statewide did not authorize the state to retain and spend and that are required to be refunded pursuant to section 20 (7)(d) of article X of the state constitution, but that are not refunded by the state as required, shall be added to and refunded with any state revenues in excess of the limitation on state fiscal year spending for the fiscal year following the fiscal year for which state revenues in excess of the limitation on state fiscal year spending were required to be refunded. (3) Any amount of state revenues in excess of the limitation on state fiscal year spending for the 2001-02 fiscal year and for every fiscal year thereafter that voters statewide did not authorize the state to retain and spend and that are required to be refunded pursuant to section 20 (7)(d) of article X of the state constitution, but that are not refunded by the state as required, shall be carried forward and added to the amount of any unrefunded state revenues in excess of the limitation on state fiscal year spending for previous fiscal years that has been carried forward. Said aggregate amount of unrefunded state revenues shall be added to and refunded with subsequent fiscal years' state revenues in excess of the limitation on state fiscal year spending that are required to be refunded; however, the amount of state revenues in excess of the limitation on state fiscal year spending that was required to be refunded but was not refunded during the most recently completed fiscal year shall be applied first to the fiscal year immediately following the most recently completed fiscal year.

C.R.S. § 24-77-103.9 Over-refunds of and unrefunded state revenues - records and disclosure

24-77-103.9. Over-refunds of and unrefunded state revenues - records and disclosure. (1) The department of revenue shall maintain a record of: (a) Any amount of over-refund, as defined in section 24-77-103.7 (1), made in each fiscal year commencing on and after July 1, 2004; and (b) Any amount of state revenues in excess of the limitation on state fiscal year spending for any fiscal year commencing on or after July 1, 2004, that voters statewide did not authorize the state to retain and spend and that are required to be refunded pursuant to section 20 (7)(d) of article X of the state constitution, but that are not refunded by the state as required by the end of the next fiscal year. (2) The amount of any over-refunds or unrefunded excess state revenues, as determined by the records maintained pursuant to subsection (1) of this section, for any fiscal year commencing on and after July 1, 2004, shall be disclosed in the state financial report required to be prepared by the controller pursuant to section 24-77-106.5 for such fiscal year.

C.R.S. § 24-77-104 State emergency reserve - cash fund - creation - declaration of emergency - reimbursement of emergency reserve expenditures - definition

24-77-104. State emergency reserve - cash fund - creation - declaration of emergency - reimbursement of emergency reserve expenditures - definition. (1) The state shall establish a state emergency reserve that is held by the state for emergencies declared pursuant to subsection (3) of this section. For each state fiscal year, the state emergency reserve shall not be less than three percent of state fiscal year spending minus annual bonded debt service. (2) (a) The state emergency reserve consists of money in the state emergency reserve cash fund created in subsection (6) of this section and any other money or capital asset that is annually designated by the general assembly in the general appropriation bill or by separate bill to constitute the emergency reserve. The principal of the controlled maintenance trust fund created in section 24-75-302.5 (2), may constitute all or some portion of the state emergency reserve. (b) Repealed. (3) The state emergency reserve may be expended in any given fiscal year upon: (a) The declaration of a state emergency by the passage of a joint resolution which is approved by a two-thirds majority of the members of both houses of the general assembly and which is approved by the governor in accordance with section 39 of article V of the state constitution; or (b) The declaration of a disaster emergency by the governor pursuant to section 24-33.5-704 (4). (4) Nothing in this section shall be construed to limit, modify, or abridge the powers and duties of the governor to respond to disasters as provided for in part 7 of article 33.5 of this title. (5) Nothing in this section shall be construed to limit the ability of the general assembly to define the term "emergency" pursuant to section 20 (2)(c) of article X of the state constitution. (6) (a) The state emergency reserve cash fund, referred to in this subsection (6) as the "fund", is hereby created in the state treasury. The fund consists of money transferred to the fund pursuant to subsection (6)(c) of this section, interest and income credited to the fund pursuant to section 24-75-226 (4)(c)(II), and any other money that the general assembly may appropriate to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the state emergency reserve cash fund to the fund. (b) Money in the fund shall not be expended or appropriated for any purpose other than for a declared emergency in accordance with subsection (3) of this section. If the governor declares a disaster emergency pursuant to section 24-33.5-704 (4), then the governor may transfer money from the fund to the disaster emergency fund created in section 24-33.5-706, if the money in the disaster emergency fund is insufficient. (c) (I) On June 30, 2021, the state treasurer shall transfer one hundred one million dollars from the general fund to the fund. (II) On June 30, 2021, the state treasurer shall transfer one hundred million dollars from the controlled maintenance trust fund created in section 24-75-302.5 (2)(a) to the fund. eated in section 24-33.5-706, if the money in the disaster emergency fund is insufficient. (c) (I) On June 30, 2021, the state treasurer shall transfer one hundred one million dollars from the general fund to the fund. (II) On June 30, 2021, the state treasurer shall transfer one hundred million dollars from the controlled maintenance trust fund created in section 24-75-302.5 (2)(a) to the fund. (d) (I) On June 30, 2023, the state treasurer shall transfer twenty million dollars from the general fund to the fund. (II) On June 30, 2023, the state treasurer shall transfer ten million dollars from the revenue loss restoration cash fund created in section 24-75-227 (2)(a) that originates from the general fund to the fund. (7) (a) Beginning July 1, 2021, if any money in a fund that is designated by the general assembly as part of the state emergency reserve is expended and the state subsequently receives a reimbursement for the expenditure, then the state treasurer shall deposit the reimbursement into the fund that was the original source of the money. This subsection (7) applies regardless of whether the expenditure is made directly from the fund or if it is transferred from the fund to the disaster emergency fund, created in section 24-33.5-706 (2)(a), or any other fund, or if the expenditure is of money in the fund that was previously reimbursed before being spent again. (b) As used in this subsection (7), "reimbursement" means a repayment of expenditures for which the state previously designated emergency money. Federal cost share provided through a federal emergency management agency public assistance grant pursuant to the federal "Robert T. Stafford Disaster Relief and Emergency Assistance Act", as amended, 42 U.S.C. sec. 5121 et seq., is not a "reimbursement" for the purposes of this subsection (7).

C.R.S. § 24-77-104.5 General fund exempt account - referendum C money - specification of uses for health care and education - definitions

24-77-104.5. General fund exempt account - referendum C money - specification of uses for health care and education - definitions. (1) The moneys in the general fund exempt account created in section 24-77-103.6 (2) shall be appropriated or transferred in the following manner: (a) (I) If available, the amount set forth in subparagraph (II) of this paragraph (a) shall be used as follows: (A) If the voters of the state approve the ballot issue set forth in House Joint Resolution 05-1057, enacted at the first regular session of the sixty-fifth general assembly and submitted to the voters as referendum "D", the general assembly may appropriate moneys from the account to the critical needs fund created in section 24-115-111 to make payments on principal and interest on critical needs notes issued pursuant to section 24-115-110. Such an appropriation shall be an authorized use of moneys in the account pursuant to the provisions of section 24-77-103.6 (2)(b), (2)(c), and (2)(d). (B) If the voters of the state do not approve referendum "D", if the principal and interest on notes issued pursuant to section 24-115-110 is less than the amount set forth in subparagraph (II) of this paragraph (a), or if the general assembly elects not to appropriate moneys to the critical needs fund to repay the principal and interest on notes issued pursuant to section 24-115-110, moneys in the account shall be used in a manner consistent with section 24-77-103.6 (2). (II) The amount appropriated or transferred pursuant to this subsection (1) shall be fifty-five million dollars in the state fiscal year 2005-06, ninety-five million dollars in state fiscal year 2006-07, and one hundred twenty-five million dollars in each subsequent state fiscal year. (b) If there are any moneys in the account after the appropriations or transfers required by paragraph (a) of this subsection (1) are made, then all moneys remaining in the account shall be split equally for the following three purposes: (I) Funding for health care, which shall be limited to the uses set forth in subsection (2) of this section; (II) Funding for preschool through twelfth grade education, which shall be limited to the uses set forth in subsection (3) of this section; and (III) Funding for the benefit of students attending community colleges and other institutions of higher education, which shall be limited to the uses set forth in subsection (4) of this section. (2) (a) Funding for health care, as used in subparagraph (I) of paragraph (b) of subsection (1) of this section, shall be limited to funding for: (I) Health care for Colorado's elderly, low-income, and disabled populations, including: (A) Physician visits; (B) Hospital visits; (C) Long-term care services, including nursing home care, home-based care, and community-based services; (D) Prescription drugs; (E) Mental health services; (F) Prenatal care; (G) Immunizations; (H) Services for persons with developmental disabilities; and (I) Medical services premiums; (II) Programs to lower the cost of health insurance premiums for individuals and small businesses. sits; (C) Long-term care services, including nursing home care, home-based care, and community-based services; (D) Prescription drugs; (E) Mental health services; (F) Prenatal care; (G) Immunizations; (H) Services for persons with developmental disabilities; and (I) Medical services premiums; (II) Programs to lower the cost of health insurance premiums for individuals and small businesses. (b) All of the uses set forth in paragraph (a) of this subsection (2) are permitted under section 24-77-103.6 (2)(a). The general assembly shall not be required to appropriate or transfer moneys from the account for all of the programs and services set forth in paragraph (a) of this subsection (2). (3) (a) Funding for preschool through twelfth grade education, as used in subsection (1)(b)(II) of this section, is limited to funding for: (I) Per-pupil funding for preschool through twelfth grade education through the "Public School Finance Act of 2025", article 54 of title 22, or any successor act; (II) Capital construction projects related to preschool through twelfth grade public education; (III) Kindergarten and preschool programs; (IV) Libraries; (V) Textbooks; (VI) Student assessment and accountability; (VII) Repealed. (VIII) School breakfast and lunch programs; and (IX) Categorical programs as defined in section 17 (2)(a) of article IX of the state constitution. (b) As used in section 24-77-103.6 (6)(a)(I), "public elementary and high school education" means preschool through twelfth grade public education. Accordingly, all of the uses set forth in paragraph (a) of this subsection (3) are permitted under section 24-77-103.6 (2)(b). The general assembly shall not be required to appropriate or transfer moneys from the account for all of the programs and services set forth in paragraph (a) of this subsection (3). (c) Moneys from the account appropriated or transferred for funding for preschool through twelfth grade education may count as part of the general assembly's general fund maintenance of effort that is required pursuant to section 17 (5) of article IX of the state constitution. (4) (a) Funding for the benefit of students attending community colleges and other institutions of higher education, as used in subsection (1)(b)(III) of this section, is limited to funding for: (I) Need-based financial aid; (II) Merit-based financial aid; (III) The college opportunity fund program created in parts 1 and 2 of article 18 of title 23, C.R.S.; (IV) Fee-for-service contracts authorized pursuant to section 23-18-303.5; (V) Capital construction projects related to higher education; (VI) Work-study programs; (VII) Tuition for qualified Indian pupils who attend Fort Lewis college; (VIII) Local district college grants; and (IX) Area technical college grants. (b) All of the uses set forth in paragraph (a) of this subsection (4) are permitted under section 24-77-103.6 (2)(b). The general assembly shall not be required to appropriate or transfer moneys from the account for all of the programs and services set forth in paragraph (a) of this subsection (4). (5) As used in this section, "account" means the general fund exempt account created in section 24-77-103.6 (2).

C.R.S. § 24-77-105 Emergency taxes - declaration of emergency - limitation

24-77-105. Emergency taxes - declaration of emergency - limitation. (1) Emergency taxes may be imposed by the state pursuant to the requirements set forth in paragraph (a) of subsection (2) of this section without prior approval of the registered electors of the state; except that no state property tax shall be imposed as an emergency tax. (2) (a) Any emergency tax may be imposed by the state upon: (I) The declaration of a state emergency by the passage of a joint resolution which is approved by a two-thirds majority of the members of both houses of the general assembly and which is approved by the governor in accordance with section 39 of article V of the state constitution; and (II) The imposition of an emergency tax by the passage of a bill which is approved by a two-thirds majority of the members of both houses of the general assembly and which is approved by the governor in accordance with section 11 of article IV of the state constitution. (b) Any emergency tax which is imposed pursuant to paragraph (a) of this subsection (2) shall be subject to approval by a majority of the registered electors of the state at the next statewide election which occurs sixty days or more after the declaration of the emergency pursuant to subparagraph (I) of paragraph (a) of this subsection (2). Any emergency tax which is not approved at such election shall expire as of the last day of the month in which such election was held. (3) Revenues from any emergency tax imposed pursuant to the provisions of subsection (2) of this section shall not be expended until all of the state emergency reserve has been expended for such emergency. (4) Any emergency tax revenues which are not expended on the declared state emergency shall be refunded within one hundred eighty days after such emergency has ended.

C.R.S. § 24-77-106 Establishment of annual allowable uncommitted reserves - legislative declaration

24-77-106. Establishment of annual allowable uncommitted reserves - legislative declaration. (1) The general assembly hereby finds and declares that: (a) Section 20 of article X of the state constitution limits state fiscal year spending; (b) Subject to certain exclusions specified in section 20 of article X of the state constitution, all state general fund revenues and all state cash fund revenues are included in the limitation on state fiscal year spending; (c) The legislative powers of the general assembly, including but not limited to its plenary power of appropriation, authorize and require the general assembly to assure compliance with the limitation on state fiscal year spending and to make fundamental fiscal policy decisions establishing the level of activity of all departments and agencies of state government, including those funded by revenues generated from fees; and (d) Consonant with the exercise of such legislative powers, the general assembly must establish limits on the amount of uncommitted reserves that may be maintained by the departments and agencies of state government for cash funds under their control and must exercise any other necessary controls on cash fund revenues, including but not limited to the power of appropriation. (2) (Deleted by amendment, L. 99, p. 1237, § 4, effective August 4, 1999.) (3) For the 1999-2000 fiscal year and each fiscal year thereafter, each department or agency of state government shall maintain the uncommitted reserves of any cash fund under its control in accordance with section 24-75-402.

C.R.S. § 24-77-106.5 Annual financial report - certification of excess state revenues

24-77-106.5. Annual financial report - certification of excess state revenues. (1) (a) For each fiscal year, the controller shall prepare a financial report for the state for purposes of ascertaining compliance with the provisions of this article. Any financial report prepared pursuant to this section shall include, but shall not be limited to, state fiscal year spending, reserves, revenues, revenues that the state is authorized to retain and spend pursuant to voter approval of section 24-77-103.6, and debt. Such financial report shall be audited by the state auditor. (b) Notwithstanding section 24-1-136 (11)(a)(I), based upon the financial report prepared in accordance with subsection (1)(a) of this section for any given fiscal year, the controller shall certify to the governor, the general assembly, and the executive director of the department of revenue no later than September 1 following the end of a fiscal year the amount of state revenues in excess of the limitation on state fiscal year spending imposed by section 20 (7)(a) of article X of the state constitution, if any, for such fiscal year and the state revenues in excess of such limitation that the state is authorized to retain and spend pursuant to voter approval of section 24-77-103.6. (2) Any financial report prepared and certification of state excess revenues made pursuant to subsection (1) of this section shall be audited by the state auditor. No later than September 15 following the certification made by the state controller for any given fiscal year, the state auditor shall report and transmit to the governor, the joint budget committee, the finance committees of the house of representatives and the senate, and the executive director of the department of revenue the results of any audit conducted in accordance with this subsection (2). (3) Notwithstanding any generally accepted accounting principles to the contrary, financial reports prepared pursuant to subsection (1) of this section shall not include any unrealized gains or losses on investments held by the state.

C.R.S. § 24-77-107 Construction

24-77-107. Construction. Nothing contained in this article shall be construed to apply to or impose, by implication or otherwise, any limitation, restriction, or prohibition upon or expansion of any local government fiscal policies.

C.R.S. § 24-77-108 Creation of a new fee-based enterprise

24-77-108. Creation of a new fee-based enterprise. In order to provide transparency and oversight to government mandated fees the People of the State of Colorado find and declare that: (1) A state enterprise qualified or created after January 1, 2021, as defined under Colo. Const. Art. X, section 20(2)(d), shall not receive more than $100,000,000 in revenue from fees and surcharges in its first five fiscal years unless approved at a statewide general election. If a state enterprise has collected one hundred million dollars ($100,000,000) in fees and surcharges within its first five fiscal years prior to receiving voter approval, the state enterprise shall stop collecting fees and surcharges. Ballot titles for enterprises shall begin, "SHALL AN ENTERPRISE BE CREATED TO COLLECT REVENUE TOTALING (full dollar collection for first five fiscal years) IN ITS FIRST FIVE YEARS...?" (2) Revenue collected for enterprises created simultaneously or within the five preceding years serving primarily the same purpose shall be aggregated in calculating the applicability of this section. (3) For the purposes of applying the requirements of subsections (1) and (2) of this section: (a) Enterprises serve primarily the same purpose when they provide the same services in the same geographic area; and (b) The first five fiscal years of a state enterprise for the purpose of calculating the one hundred million dollar amount set forth in subsection (1) are the first five state fiscal years since the creation or first qualification of the enterprise.

C.R.S. § 24-77-109 Definition of fee - scope - definitions - repeal

24-77-109. Definition of fee - scope - definitions - repeal. (1) If a constitutional amendment is adopted at the 2024 statewide general election that amends section 20 of article X of the Colorado constitution to define the term "fee", the following provisions apply: (a) The constitutional amendment described in this subsection (1) applies to fees increased only by: (I) Legislation enacted by the general assembly on or after the effective date of the constitutional amendment; (II) Rules of the applicable rule-making authority on or after the effective date of the constitutional amendment; and (III) Formal approval or enactment by a governing board with legal authority to assess and raise fees on or after the effective date of the constitutional amendment. (b) If a fee exists in state law or rules before the effective date of the constitutional amendment and is subject to a time frame, schedule, adjustment, or mathematical formula with predetermined objective components for increasing the fee, any increase to the fee amount does not constitute an increase for the purpose of the constitutional amendment described in this subsection (1). (c) The constitutional amendment described in this subsection (1) does not apply to fees established before the effective date of the constitutional amendment. A fee is established before the effective date of the constitutional amendment if, regardless of when the fee begins to be charged or otherwise assessed, the fee is created by legislation or rules enacted or adopted before the effective date of the constitutional amendment or the fee is created by a citizen-initiated measure that takes effect before the effective date of the constitutional amendment. (d) As used in the constitutional amendment described in this subsection (1) and as used in this subsection (1): (I) "Costs incurred by the government in providing said specific benefit" means all direct and indirect costs a governmental entity incurs to provide a specific benefit, including administrative expenses, salaries and wages, costs of materials, rentals of real and personal property, overhead, payments to contractors, and any other costs incurred to provide the specific benefit. (II) (A) "Fair share" means the total anticipated costs incurred by the government in providing a specific benefit during the state fiscal year divided by the anticipated number of payers of the fee during the state fiscal year. (B) "Fair share" does not mean a mathematical certainty or approximation of the payer's total benefit in comparison to the total payers that remit the fee. (III) "Specific benefit" means a service, item, or other type of direct or indirect benefit conferred on the payer of the fee, which may include benefits realized through investments in public priorities, needs, interests, programs, infrastructure, and services, regardless of whether the specific benefit is directly used by the payer, whether the payer chooses to avail themself of the specific benefit, and whether the specific benefits are made available to persons that do not pay the fee. (IV) "Voluntarily incurred" means a payer is not formally compelled, required, or mandated to pay a fee and has the ability to refuse, take action, or opt to take no action to avoid incurring the fee. A payer's actual ability to refuse services or opt not to purchase property that is connected with a fee is evidence that a fee is voluntarily incurred. (2) Repealed. (3) If a constitutional amendment that amends section 20 of article X of the Colorado constitution to define the term "fee" is not adopted at the 2024 statewide general election, this section is repealed, effective June 30, 2025. (4) The general assembly declares that: ices or opt not to purchase property that is connected with a fee is evidence that a fee is voluntarily incurred. (2) Repealed. (3) If a constitutional amendment that amends section 20 of article X of the Colorado constitution to define the term "fee" is not adopted at the 2024 statewide general election, this section is repealed, effective June 30, 2025. (4) The general assembly declares that: (a) The constitutional amendment described in subsection (1) of this section directly amends section 20 of article X of the state constitution, and that section 20 of article X contains provisions of law governing election processes specific to state fiscal matters, including voter approval requirements and ballot language that must be submitted to the voters for certain measures, and contains subsections entitled "election provisions" and "required elections"; (b) The amendment described in subsection (1) of this section would amend section 20 of article X of the state constitution, and that such amendment, by defining a "fee", is likely to impact constitutional election requirements and may result in additional revenue sources being submitted to the voters pursuant to election requirements contained in section 20 of article X; and (c) Therefore, this section, by construing and effectuating such constitutional amendment, is a law regarding elections.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-24.docxFetched: 10/6/2026