(1) The public school capital construction assistance fund is hereby created in the state treasury. The principal of the assistance fund shall consist of all moneys transferred or credited to the assistance fund pursuant to subsection (2) of this section. All interest and income earned on the deposit and investment of moneys in the assistance fund shall be credited to the assistance fund and shall not be transferred to the general fund or any other fund at the end of any fiscal year.
(2) (a) On July 1, 2008, the following moneys shall be transferred to the assistance fund:
All moneys remaining in the school construction and renovation fund, as said fundexisted prior to July 1, 2008;
All moneys remaining in the school capital construction expenditures reserve and theschool capital construction expenditures reserve fund as said reserve and reserve fund existed prior to July 1, 2008; and
All moneys remaining in the lottery proceeds contingency reserve fund as said fundexisted prior to July 1, 2008.
(b) For each fiscal year commencing on or after July 1, 2008, the following moneys shall be credited to the assistance fund:
(I) (A) Unless and until the state treasurer, pursuant to sub-subparagraph (B) of this subparagraph (I), provides written notice to the joint budget committee of the general assembly that the state treasurer has determined that the use of interest or income earned on the deposit and investment of moneys in the public school fund to make lease payments under a leasepurchase agreement entered into pursuant to section 22-43.7-110 (2) will prevent the interest component of the lease payments from qualifying for exemption from federal income taxation, the greater of thirty-five percent of the gross amount of public school lands income received during the fiscal year or forty million dollars. The moneys required to be credited to the assistance fund pursuant to this sub-subparagraph (A) may be taken from any single source or combination of sources of public school lands income.
Except as otherwise provided in sub-subparagraph (C) of this subparagraph (I), if thestate treasurer determines during any fiscal year that the use of interest or income earned on the deposit and investment of moneys in the public school fund to make lease payments under a lease-purchase agreement will prevent the interest component of the lease payments from qualifying for exemption from federal income taxation and provides written notice to the joint budget committee of the general assembly of the determination, for the portion of the fiscal year beginning on the date the written notice is provided to the joint budget committee and for each subsequent fiscal year, the greater of fifty percent of the gross amount of public school lands income other than interest or income earned on the deposit and investment of moneys in the public school fund received during the fiscal year or forty million dollars. The moneys required to be credited to the assistance fund pursuant to this sub-subparagraph (B) may be taken from any single source or combination of sources of public school lands income other than interest or income earned on the deposit and investment of moneys in the public school fund.
If, after making a determination and providing notice pursuant to sub-subparagraph(B) of this subparagraph (I), the state treasurer makes a new determination during any fiscal year that the use of interest or income earned on the deposit and investment of moneys in the public school fund to make lease payments under a lease-purchase agreement entered into pursuant to section 22-43.7-110 (2) will not prevent the interest component of the lease payments from qualifying for exemption from federal income taxation and the state treasurer provides written notice to the joint budget committee of the general assembly that the state treasurer has made a new determination and is rescinding the determination made pursuant to said sub-subparagraph (B) as of the date the written notice is provided, for the portion of the fiscal year beginning on the date the written notice is provided to the joint budget committee and for each subsequent fiscal year, the greater of thirty-five percent of the gross amount of public school lands income received during the fiscal year or forty million dollars. The moneys required to be credited to the assistance fund pursuant to this sub-subparagraph (C) may be taken from any single source or combination of sources of public school lands income.
The net proceeds made available to the state from the sale of instruments evidencingrights to receive lease payments made and to be made under the terms of any lease-purchase agreement entered into pursuant to section 22-43.7-110 (2), unless otherwise required by the documents pursuant to which the instruments are issued;
All moneys that would otherwise be transferred to the general fund pursuant tosection 3 (1)(b)(III) of article XXVII of the state constitution. The moneys credited to the assistance fund pursuant to this subparagraph (III) and any income and interest derived from the deposit and investment of such moneys shall be exempt from any restriction on spending, revenue, or appropriations, including, without limitation, the restrictions of section 20 of article X of the state constitution.
Matching moneys paid to the state for use by the state in making scheduled payments payable by the state under the terms of lease-purchase agreements entered into pursuant to section 22-43.7-110 (2);
Any moneys transferred or appropriated to the assistance fund pursuant to subsection (5) of this section.
Reserved.
For the state fiscal year commencing July 1, 2018, the state treasurer, as provided insection 39-28.8-305 (1)(a), shall credit to the assistance fund the greater of the first forty million dollars received and collected from the excise tax on retail marijuana imposed pursuant to part 3 of article 28.8 of title 39 or ninety percent of the money received and collected from the tax. For the state fiscal year commencing July 1, 2019, and for each state fiscal year thereafter except for the state fiscal year commencing July 1, 2020, the state treasurer, as provided in section 39-28.8305 (1)(a), shall annually credit to the assistance fund all of the money received and collected from the excise tax on retail marijuana imposed pursuant to part 3 of article 28.8 of title 39. For the state fiscal year commencing July 1, 2020, the state treasurer, as provided in section 39-28.8305 (1)(a), shall credit to the assistance fund the lesser of the first forty million dollars received and collected from the excise tax on retail marijuana imposed pursuant to part 3 of article 28.8 of title 39 or all of the money received and collected from the tax. For state fiscal years commencing before July 1, 2019, the state treasurer shall credit twelve and five-tenths percent of the amount annually credited pursuant to this subsection (2)(d) to the charter school facilities assistance account, which account is created within the assistance fund. For each state fiscal year commencing on or after July 1, 2019, the state treasurer shall credit to the charter school facilities assistance account a percentage of the amount credited pursuant to this subsection (2)(d) that is equal to the percentage of pupil enrollment, as defined in section 22-54-103 (10), statewide represented by pupils who were enrolled in charter schools for the prior school year. The department of education shall notify the state treasurer of the applicable percentage no later than June 1 of the immediately preceding fiscal year.
On May 21, 2019, if possible, or as soon as possible thereafter, the state treasurershall transfer four million two hundred fifty thousand dollars from the assistance fund to the charter school facilities assistance account of the assistance fund created in subsection (2)(d) of this section.
On July 1, 2020, the state treasurer shall transfer one hundred million dollars from theassistance fund to the state public school fund created in section 22-54-114 (1).
Subject to annual appropriation, the department may expend money in the assistancefund for the purposes of paying the direct and indirect administrative costs, including but not limited to the costs of conducting or contracting for the financial assistance priority assessment required by section 22-43.7-108 (1), incurred by the division, the board, and the department in exercising their powers and duties pursuant to this article 43.7, providing financial assistance, making payments required by section 22-43.7-114, and paying any transaction costs necessarily incurred in connection with the provision of financial assistance as authorized by this article 43.7. For state fiscal year 2020-21, the general assembly shall appropriate sixty million dollars from the assistance fund for use by the board in providing financial assistance in the form of matching cash grants only.
(3.5) In determining the amount of financial assistance that it provides and in so doing managing the balance of the assistance fund, the board shall ensure that, effective June 30, 2013, and effective each June 30 thereafter, the balance of the assistance fund, not including the amounts credited to the charter school facilities assistance account pursuant to paragraph (d) of subsection (2) of this section, is at least equal to the total amount of payments to be made by the state during the next fiscal year under the terms of any lease-purchase agreements entered into pursuant to section 22-43.7-110 (2) less the amount of any school district matching moneys and any federal moneys to be received for the purpose of making the payments.
For each fiscal year commencing on or after July 1, 2008, an emergency reserve of atleast one million dollars shall be maintained in the assistance fund except that an emergency reserve need not be maintained in any fiscal year in which the amount of either public school lands income or public school lands income other than interest or income earned on the deposit and investment of moneys in the public school fund, or both, credited to the assistance fund pursuant to subparagraph (I) of paragraph (b) of subsection (2) of this section is an amount equal to the difference between the total amount of lease payments to be made by the state under the terms of lease-purchase agreements entered into pursuant to section 22-43.7-110 (2) and the total amount of matching moneys to be paid to the state as lease payments under the terms of sublease-purchase agreements entered into pursuant to section 22-43.7-110 (2) rather than, to the extent applicable, thirty-five percent of the gross amount of public school lands income received by the state during the fiscal year or fifty percent of the gross amount of public school lands income other than interest or income earned on the deposit and investment of moneys in the public school fund received by the state during the fiscal year. The board may expend moneys from the emergency reserve only to provide emergency financial assistance to address a public school facility emergency in accordance with section 22-43.7-109 (8).
If the state treasurer, pursuant to sub-subparagraph (B) of subparagraph (I) of paragraph (b) of subsection (2) of this section, provides written notice to the joint budget committee of the general assembly that the state treasurer has determined that the use of interest or income earned on the deposit and investment of moneys in the public school fund to make lease payments under a lease-purchase agreement entered into pursuant to section 22-43.7-110 (2) will prevent the interest component of the lease payments from qualifying for exemption from federal income taxation, any such interest or income credited to the assistance fund before the treasurer provides the written notice shall be segregated into a separate restricted account of the assistance fund. All interest and income earned on the deposit and investment of moneys in the restricted account shall be credited to the restricted account. Moneys in the restricted account shall not be commingled with other moneys in the assistance fund. Notwithstanding any other provision of law, moneys in the restricted account shall not be used and shall not be available to pay lease payments under any lease-purchase agreements entered into pursuant to section 2243.7-110 (2) unless and until the state treasurer, pursuant to sub-subparagraph (C) of subparagraph (I) of paragraph (b) of subsection (2) of this section, provides written notice to the joint budget committee of the general assembly that the state treasurer is rescinding the determination made pursuant to sub-subparagraph (B) of said subparagraph (I) as of the date the written notice is provided. Moneys in the restricted account may be used for the other purposes for which moneys in the assistance fund may be used under this article.
If the amount of moneys in the assistance fund that, subject to the limitations setforth in subsection (5) of this section, is available to pay lease payments under any leasepurchase agreements entered into pursuant to section 22-43.7-110 (2) will be insufficient to cover the full amount of the lease payments required by the lease-purchase agreements, the general assembly may appropriate or transfer from any legally available source to the assistance fund sufficient moneys to make the lease payments.
Source: L. 2008: Entire article R&RE, p. 1043, § 1, effective May 22. L. 2009: (2)(b)(I), (2)(b)(II), and (4) amended and (2)(b)(V), (5), and (6) added, (SB 09-257), ch. 424, pp. 2364, 2366, §§ 2, 3, effective June 4. L. 2013: (3.5) added, (SB 13-214), ch. 398, p. 2324, § 2, effective June 5. L. 2014: (3) amended, (SB 14-112), ch. 47, p. 224, § 1, effective March 20; (2)(d) added, (HB 14-1287), ch. 226, p. 842, § 2, effective May 17; (2)(b)(I), (3), and (3.5) amended and (2)(d) added, (HB 14-1292), ch. 243, p. 910, § 15, effective May 21. L. 2018: (2)(d) amended, (HB 18-1070), ch. 322, p. 1929, § 1, effective May 30. L. 2019: (2)(d) and (3) amended and (2)(e) added, (HB 19-1055), ch. 246, p. 2402, § 1, effective May 21. L. 2020: (2)(d) and (3) amended and (2)(f) added, (HB 20-1418), ch. 197, p. 941, § 6, effective June 30.
Editor's note: Amendments to subsection (2)(d) by HB 14-1287 and HB 14-1292 were harmonized. Amendments to subsection (3) by SB 14-112 and HB 14-1292 were harmonized.
Cross references: (1) For the short title ("Student Success Act") in HB 14-1292, see section 1 of chapter 243, Session Laws of Colorado 2014.
(2) For the legislative declaration in HB 14-1287, see section 1 of chapter 226, Session Laws of Colorado 2014. For the legislative declaration in HB 14-1387, see section 1 of chapter 378, Session Laws of Colorado 2014. For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020.