(1) (a) Immediately after the limited gaming tax revenues attributable to extended limited gaming are determined, the state treasurer shall transfer the revenues, together with any associated interest, to the extended limited gaming fund, also referred to in this section as the "fund", which is hereby created in the state treasury.
(b) The commission shall annually determine the amount of gaming tax revenues generated in each city from extended limited gaming and shall report the amounts to the state treasurer.
Interest earned on money in the fund shall remain in the fund, and money remainingin the fund at the end of any fiscal year shall not revert to the general fund or to any other fund. Interest earnings shall be distributed annually in accordance with subsection (3)(c) of this section.
From the fund, the state treasurer shall pay:
First, that portion of the ongoing expenses of the commission and other state agencies that are related to the administration of extended limited gaming, as determined in accordance with rules of the commission. When making annual lump-sum distributions from the fund as described in subsection (5) of this section, the state treasurer may withhold an amount reasonably anticipated to be sufficient to pay the expenses until the next annual distribution.
Second, except as otherwise provided in subsection (7) of this section, annual adjustments, in connection with distributions to limited gaming fund recipients listed in section 9 (5)(b)(II) of article XVIII of the state constitution, to reflect the lesser of six percent, or the actual percentage, of annual growth in extended limited gaming tax revenues. As used in this subsection (3)(b), "annual adjustment" means an annual payment to limited gaming fund recipients listed in section 9 (5)(b)(II) of article XVIII of the state constitution, calculated as follows:
For revenues collected in fiscal year 2009-10, the payment shall equal six percent ofthe first year's limited gaming revenues attributable to extended limited gaming.
For each fiscal year after 2009-10, the annual payment shall be increased or decreased as follows and shall constitute the annual adjustment:
For any year in which the annual growth of limited gaming revenues attributable toextended limited gaming exceeds or equals six percent, add an amount equal to six percent of said revenues;
For any year in which the annual growth in limited gaming revenues attributable toextended limited gaming is between zero and six percent, add an amount equal to the actual percentage growth of said revenues;
For any year in which limited gaming tax revenues experience a decline, subtract anamount equal to the actual percentage decline of said revenues.
(III) Nothing in this subsection (3)(b) shall be construed to permit compounding or accumulation of the annual adjustment.
(c) Of the remaining gaming tax revenues, distributions in the following proportions:
(I) [Editor's note: This version of subsection (3)(c)(I) is effective until May 1, 2021.] Seventy-eight percent to the state's public community colleges, junior colleges, and local district colleges to supplement existing state funding for student financial aid programs and classroom instruction programs, including workforce preparation to enhance the growth of the state economy, to prepare Colorado residents for meaningful employment, and to provide Colorado businesses with well-trained employees. The revenue shall be distributed to colleges that were operating on and after January 1, 2008, in proportion to their respective full-time equivalent student enrollments in the previous fiscal year. For purposes of the distribution, the state treasurer shall use the most recent available figures on full-time equivalent student enrollment calculated by the Colorado commission on higher education in accordance with subsection (4)(c) of this section.
[Editor's note: This version of subsection (3)(c)(I) is effective May 1, 2021.] Seventy-eight percent to the state's public community colleges, junior colleges, and local district colleges to supplement existing state funding for student financial aid programs and classroom instruction programs, including programs to improve student retention and increase credential completion, as well as workforce preparation to enhance the growth of the state economy, to prepare Colorado residents for meaningful employment, and to provide Colorado businesses with well- trained employees. The revenue shall be distributed to colleges that were operating on and after January 1, 2008, in proportion to their respective full-time equivalent student enrollments in the previous fiscal year. For purposes of the distribution, the state treasurer shall use the most recent available figures on full-time equivalent student enrollment calculated by the Colorado commission on higher education in accordance with subsection (4)(c) of this section.
Ten percent to the governing bodies of the cities of Central, Black Hawk, and Cripple Creek to address local gaming impacts. The revenue shall be distributed based on the proportion of extended limited gaming tax revenues that are paid by licensees operating in each city.
Twelve percent to the governing bodies of Gilpin and Teller counties to addresslocal gaming impacts. The revenue shall be distributed based on the proportion of extended limited gaming tax revenues that are paid by licensees operating in each county.
(4) Definitions. As used in this section:
"Colleges that were operating on and after January 1, 2008" means: Aims communitycollege, Arapahoe community college, Colorado mountain college, Colorado Northwestern community college, the community college of Aurora, the community college of Denver, Front Range community college, Lamar community college, Morgan community college, Northeastern junior college, Otero junior college, Pikes Peak community college, Pueblo community college, Red Rocks community college, Trinidad state junior college, the two-year role and mission of Colorado Mesa university, currently referred to as Western Colorado community college division of Colorado Mesa university, the two-year academic role and mission of Adams state university, and the state board for community colleges and occupational education, for so long as each such college or board continues operating.
"Extended limited gaming" means the extension of hours, games, or bet limits by alocal vote in accordance with section 9 (7)(a) of article XVIII of the state constitution.
(I) "Full-time equivalent student enrollment" means the number of in-state, full-timeequivalent students enrolled at a college, as determined in accordance with article 7 of title 23, and the eligibility parameters contained in the "Policy for Reporting Full-Time Equivalent Student Enrollment" published as of January 1, 2008, by the Colorado commission on higher education, pursuant to its authority under section 23-1-105. The Colorado commission on higher education shall determine the full-time equivalent student enrollment for each college no later than August 15 of each year. For purposes of calculating a college's in-state, full-time equivalent student enrollment for any fiscal year, the number of students enrolled in certificate, AA, AS, AGS, or AAS degree courses and programs, as well as the nondegree-seeking students who are included as part of the community college role and mission for purposes of application to the department of higher education and enrollments in developmental courses by any students, regardless of degree intent, reported by the college to the department of higher education in its final student FTE report for that fiscal year shall be presumed correct; except that the following students shall be excluded:
Students who are admitted to a college on a competitive basis and are not enrolled incertificate, AA, AS, AGS, or AAS developmental or vocational courses;
Students who are admitted pursuant to the Colorado commission on higher education's undergraduate admissions standard index for a college or within the Colorado commission on higher education's admissions window for a college and are not enrolled in certificate, AA, AS, AGS, or AAS developmental or vocational courses; and
Students who are enrolled in classes that are not supported by state general fundmoney.
(II) With respect to the two-year mission at Adams state university, full-time equivalent student enrollment shall be limited to enrollment in the associate's degree programs that existed as of November 4, 2008.
(d) Except as otherwise provided in subsection (7) of this section, "limited gaming tax revenues attributable to extended limited gaming" means all limited gaming tax revenue in excess of the amount collected during fiscal year 2008-09, adjusted as follows:
(I) For revenues collected in fiscal year 2009-2010, reduced by a three percent growth factor on the 2008-2009 base of limited gaming tax revenues, which amount shall be added to the base and shall constitute the adjusted base; and (II) Thereafter:
Reduced by a three percent per fiscal year growth factor on the previous year's adjusted base, which growth factor shall be added to the previous fiscal year's adjusted base and shall constitute the new adjusted base; or
If growth in limited gaming tax revenues is between zero and three percent in anyfiscal year, the growth factor on the previous fiscal year's adjusted base shall be the actual percentage growth in limited gaming tax revenues, which shall be added to the previous fiscal year's adjusted base; or
If limited gaming tax revenues decline from year to year, the previous fiscal year'sadjusted base shall be reduced by the actual percentage decline in limited gaming tax revenue.
"Other state money appropriated or otherwise allocated for similar programs or purposes" means all money distributed from the general fund of the state by the general assembly for higher education or for the support of any institution of higher education, including without limitation the colleges listed in subsection (4)(a) of this section. If the total amount of spending described in this subsection (4)(e) is reduced from one state fiscal year to the next, the percentage of the reduction for the colleges listed in subsection (4)(a) of this section shall not exceed the percentage of reduction in total general fund operating funding, including college opportunity fund stipends and fee-for-service funds, for all institutions of higher education during the same state fiscal year.
"Previous fiscal year" means, with respect to a college receiving money under thissection, the fiscal year immediately preceding the fiscal year in which money is made available to the college pursuant to this section.
(5) Method of distribution - distribution to colleges - relationship to funding from other sources. (a) On or before September 1 of each year, the state treasurer shall distribute all money from the fund to the recipients identified in subsection (3)(c) of this section in the form of lump-sum payments. Distribution to colleges listed in subsection (4)(a) of this section shall be to the state board for community colleges and occupational education for those colleges listed in section 23-60-205, and to the respective governing boards of the colleges that are not so listed.
Money distributed under this section to colleges listed in subsection (4)(a) of thissection, and any interest or income earned on a college's deposit of the money, shall supplement and shall not supplant any other state money appropriated or otherwise allocated for similar programs or purposes. As used in this subsection (5), "state money" means general fund operating funding, including college opportunity fund stipends and fee-for-service funds, adjusted for inflation to the same degree as the inflation adjustment received by other institutions of higher education.
Any higher education funding formula that allocates state-appropriated money shallnot use money distributed under this section to supplant state money otherwise allocated by the formula.
Money distributed from the fund is hereby continuously appropriated to the governing boards of the colleges listed in subsection (4)(a) of this section. The money shall be included for informational purposes in the annual general appropriation bill or in supplemental appropriation bills for the purpose of complying with any applicable constitutional and statutory limits on state fiscal year spending.
Bonding authority. In addition to any other powers conferred by law, the governing body of each college listed in subsection (4)(a) of this section may issue bonds refundable from revenues received pursuant to this section.
Reduction in revenues due to force majeure - operation of hold-harmless provisions - continuity of funding - recovery. (a) Legislative declaration. The general assembly finds, determines, and declares that:
Section 9 (7) of article XVIII of the state constitution, initiated and enacted by thepeople of Colorado in 2008 and commonly referred to as "Amendment 50", authorized the extension of limited gaming activity for the purpose of helping fund Colorado's community colleges, junior colleges, and local district colleges through an increase in gaming tax revenues;
Amendment 50 explicitly authorized the general assembly to "enact, as necessary,legislation that will facilitate the operation of this [initiative]";
Pursuant to that authority, it is reasonable for the general assembly to address theeffects of the global pandemic and economic recession of 2020 in a way that:
Avoids long-term economic damage to any of the beneficiaries of limited gamingtax revenues; and
Equitably allocates the limited gaming tax revenues in fiscal years immediately following this severe funding decline among all recipients; and
(IV) The allocation provisions of section 9 (7) of article XVIII of the state constitution do not contemplate the unprecedented significant decline in limited gaming revenues caused by the global pandemic, and the general assembly desires to address the original implementing statutory formula for the allocation of gaming revenues, consistent with the state constitution, in a manner that modifies the statutory annual adjustment provisions to retain the constitutional allocation, thus reflecting the proportionate allocation to the beneficiaries of limited gaming tax revenues.
(b) (I) Notwithstanding any provision of subsection (3)(b) or (4)(d) of this section to the contrary, beginning in state fiscal year 2020-21 and continuing through each subsequent fiscal year until the fiscal year immediately following the fiscal year in which total limited gaming tax revenue collections have again equaled or exceeded the amount of total limited gaming tax revenues collected in state fiscal year 2018-19, any annual growth or decline in total net gaming tax distributions shall be allocated between the limited gaming fund recipients listed in section 9 (5)(b)(II) of article XVIII of the state constitution and the recipients of limited gaming tax revenues attributable to extended limited gaming under section 9 (7) of article XVIII of the state constitution based on the relative percentages in which each group of recipients shared in the decrease in total net gaming tax distributions from state fiscal year 2018-19 to state fiscal year 2019-20. The commission may make any adjustments necessary to ensure that the final distributions to all recipients comply with constitutional requirements while achieving the intent of this subsection (7). So long as this subsection (7) remains in effect, the annual adjustments required under subsections (3)(b) and (4)(d) of this section are temporarily superseded by the specific allocations to implement the constitutional annual adjustment made pursuant to this subsection (7).
(II) As used in this subsection (7)(b), "limited gaming tax revenues attributable to extended limited gaming" means that portion of total limited gaming tax revenues allocated pursuant to subsection (7)(b)(I) of this section to recipients of revenues derived from extended limited gaming under section 9 (7) of article XVIII of the state constitution.
Source: L. 2018: Entire article added with relocations, (SB 18-034), ch. 14, p. 201, § 2, effective October 1. L. 2020: IP(3)(b) and IP(4)(d) amended and (7) added, (HB 20-1400), ch. 215, p. 1037, § 1, effective June 30. Initiated 2020: (3)(c)(I) amended, Amendment 77, effective upon proclamation of the Governor.
Editor's note: This section is similar to former § 12-47.1-701.5 as it existed prior to 2018.