House Bill 25b-1016 Introduced

A Bill for an Act

• Page 1, Line 101Concerning procedures for the governor to reduce spending

• Page 1, Line 102when there is a reduction in revenue to the state, and,

• Page 1, Line 103in connection therewith, requiring the governor to

• Page 1, Line 104reduce spending based on interim revenue estimates and

• Page 1, Line 105to notify and consult with the joint budget committee

• Page 1, Line 106when implementing a spending reduction plan, and

• Page 1, Line 107requiring the governor and the legislative council

• Page 1, Line 108staff to present any updated revenue estimates to the

• Page 1, Line 109joint budget committee.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

Under existing law, the governor is permitted to, by executive order, suspend or discontinue the functions or services of state government for 3 months when there are not sufficient revenues available to carry on the functions of the state government. The governor may extend the executive order every 3 months. The bill requires the governor to formulate a spending reduction plan (discretionary spending reduction plan) if the governor extends the initial executive order. The governor and the office of state planning and budgeting (OSPB) shall present the discretionary spending reduction plan to the joint budget committee (JBC) at a JBC meeting and consult with the JBC about the plan. The heads of departments included in the discretionary spending reduction plan shall be available at the JBC meeting to respond to questions from the JBC.

Under existing law, the governor is required to formulate and implement a plan to reduce general fund expenditures (required spending reduction plan) when the governor's regular quarterly revenue estimate indicates that appropriations from the general fund then in effect will result in either using more than one-half of the required amount of general fund reserve (reserve) or the balance of the reserve dropping to below $1 billion. In addition to the regular quarterly revenue estimate trigger, the bill adds as a required spending reduction trigger for the governor that an interim revenue estimate prepared by the governor indicates the same. The bill requires the governor and OSPB to present a required spending reduction plan to the JBC at a JBC meeting and consult with the JBC about the required spending reduction plan before implementing the plan. The heads of departments included in the required spending reduction plan shall be available at the JBC meeting to respond to questions from the JBC.

The bill requires the director of OSPB and the chief economist of the legislative council staff to present to the JBC any interim revenue estimates made by their respective agencies.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 24-2-102, amend (4) as follows:

• Page 2, Line 324-2-102.  Appointment of officers and employees. (4) (a)  If,

• Page 2, Line 4during any fiscal period year, the governor determines that there

• Page 2, Line 5are not, or will not be, sufficient revenues available for expenditure

• Page 3, Line 1during such period the fiscal year to carry on the functions of the state

• Page 3, Line 2government and to support its agencies and institutions, and such fact is

• Page 3, Line 3made to appear to the governor, the governor may, in the exercise of

• Page 3, Line 4his the governor's discretion, by executive order, he may suspend or

• Page 3, Line 5discontinue, in whole or in part, the functions or services of any

• Page 3, Line 6department, board, bureau, or agency of the state government; except that

• Page 3, Line 7the authority of the governor to restrict the expenditure of moneys money

• Page 3, Line 8appropriated from the capital construction fund shall must be determined

• Page 3, Line 9by the provisions of in accordance with the requirements in section 24-75-201.5.

• Page 3, Line 10(b)  Such A discontinuance or suspension shall become made

• Page 3, Line 11pursuant to this subsection (1) becomes effective upon the first day

• Page 3, Line 12of the calendar month following the entry of such the executive order

• Page 3, Line 13and shall may continue for such a period of time, not to exceed three months, as shall be determined by such set forth in the executive order.

• Page 3, Line 14(c) (I)  If, during any such period of time it again appears to when

• Page 3, Line 15an executive order issued by the governor pursuant to this

• Page 3, Line 16section is in effect, the governor determines that such the deficiency

• Page 3, Line 17of revenues still persists, from time to time, he the governor may

• Page 3, Line 18extend the operation of such the executive order for a like period of time not to exceed three months; but months.

• Page 3, Line 19(II)  If the governor extends the operation of an executive

• Page 3, Line 20order pursuant to subsection (4)(c)(I) of this section, the

• Page 3, Line 21governor shall formulate a plan for reducing general fund

• Page 3, Line 22expenditures. The governor shall promptly notify the general

• Page 3, Line 23assembly of the plan. Within twenty-eight days after extension

• Page 3, Line 24of the executive order pursuant to subsection (4)(c)(I) of this

• Page 4, Line 1section, the joint budget committee shall hold a meeting to

• Page 4, Line 2consult with the governor about the plan. The governor or the

• Page 4, Line 3office of state planning and budgeting, or both, shall attend the

• Page 4, Line 4joint budget committee meeting to present the plan and consult

• Page 4, Line 5with the committee. The head of any department included in the

• Page 4, Line 6governor's plan, or the department head's designee, shall be

• Page 4, Line 7available at the meeting, including being available remotely if

• Page 4, Line 8necessary, to respond to questions from the joint budget committee.

• Page 4, Line 9(d)  The state shall not be is not liable for the payment of any

• Page 4, Line 10claim for salaries or expenses subject to a suspension or

• Page 4, Line 11discontinuation pursuant to this subsection (1) purporting to have

• Page 4, Line 12accrued against any such department, board, bureau, or agency during any

• Page 4, Line 13such period of the suspension or discontinuation, and the controller

• Page 4, Line 14shall not issue nor may and the state treasurer shall not honor any warrant therefor.

• Page 4, Line 15(e)  Elective officers shall not be subject to the provisions of this

• Page 4, Line 16article article 2, parts 2 and 11 of article 30, and articles 31, 35, 36, and 101 to 111 of this title title 24.

• Page 4, Line 17SECTION 2.  In Colorado Revised Statutes, 24-75-201.5, amend (1) as follows:

• Page 4, Line 1824-75-201.5.  Revenue shortfalls - required actions by the

• Page 4, Line 19governor with respect to the reserve - definition. (1) (a)  Whenever the

• Page 4, Line 20revenue estimate for the current fiscal year, prepared by the governor

• Page 4, Line 21in accordance with section 24-75-201.3 (2), or an interim revenue

• Page 4, Line 22estimate prepared by the governor, indicates that general fund

• Page 4, Line 23expenditures for such that fiscal year based on appropriations then in

• Page 5, Line 1effect will result in the use of one-half or more of the reserve required by

• Page 5, Line 2section 24-75-201.1 (1)(d), the governor shall formulate a plan for

• Page 5, Line 3reducing such general fund expenditures so that said the reserve, as of

• Page 5, Line 4the close of the fiscal year, will be at least one-half of the amount

• Page 5, Line 5required by said section 24-75-201.1 (1)(d). The governor shall promptly

• Page 5, Line 6notify the general assembly of the plan. As soon as practicable after

• Page 5, Line 7receiving the notification, the joint budget committee shall

• Page 5, Line 8hold a meeting to consult with the governor about the plan. The

• Page 5, Line 9governor or the office of state planning and budgeting, or both,

• Page 5, Line 10shall attend the joint budget committee meeting to present the

• Page 5, Line 11plan and consult with the committee. The head of any

• Page 5, Line 12department included in the governor's plan, or the department

• Page 5, Line 13head's designee, shall be available at the meeting, including

• Page 5, Line 14being available remotely if necessary, to respond to questions

• Page 5, Line 15from the joint budget committee. After the joint budget

• Page 5, Line 16committee meeting, the plan shall be promptly implemented by the

• Page 5, Line 17governor shall promptly implement the plan using the procedures set forth in section 24-2-102 (4) or 24-50-109.5 or any other lawful means.

• Page 5, Line 18(b) to (g)  Repealed.

• Page 5, Line 19(h)  (b)  Whenever the revenue estimate for the current fiscal year,

• Page 5, Line 20prepared by the governor in accordance with section 24-75-201.3 (2),

• Page 5, Line 21or an interim revenue estimate prepared by the governor,

• Page 5, Line 22indicates that general fund expenditures for that fiscal year based on

• Page 5, Line 23appropriations then in effect will result in the use of an amount of the

• Page 5, Line 24reserve required by section 24-75-201.1 (1)(d) that would result in that

• Page 5, Line 25reserve equaling less than one billion dollars, the governor shall formulate

• Page 5, Line 26a plan for reducing such general fund expenditures so that said the

• Page 6, Line 1reserve, as of the close of the fiscal year, will be at least one billion

• Page 6, Line 2dollars. The governor shall promptly notify the general assembly of the

• Page 6, Line 3plan. and As soon as practicable after receiving the notification,

• Page 6, Line 4the joint budget committee shall hold a meeting to consult with

• Page 6, Line 5the governor about the plan. The governor and the office of

• Page 6, Line 6state planning and budgeting shall attend the joint budget

• Page 6, Line 7committee meeting to present the plan and consult with the

• Page 6, Line 8committee. After the joint budget committee meeting, the

• Page 6, Line 9governor shall promptly implement the plan in accordance with section 24-2-102 (4) or 24-50-109.5 or any other lawful means.

• Page 6, Line 10(c)  As used in this subsection (1), "interim revenue estimate

• Page 6, Line 11prepared by the governor" means an updated revenue estimate

• Page 6, Line 12in the time between two estimates made by the governor

• Page 6, Line 13pursuant to section 24-75-201.3 (2), which interim estimate is

• Page 6, Line 14prepared by the governor, designated by the governor as an

• Page 6, Line 15interim revenue estimate that is an update to the most recent

• Page 6, Line 16prior revenue estimate, transmitted to the general assembly,

• Page 6, Line 17and presented at a meeting of the joint budget committee as an

• Page 6, Line 18interim revenue estimate that is an update to the most recent prior revenue estimate.

• Page 6, Line 19SECTION 3.  In Colorado Revised Statutes, 24-75-201.3, add (3) as follows:

• Page 6, Line 2024-75-201.3.  Procedures relating to revenue estimates. (3)  If

• Page 6, Line 21the governor issues an interim revenue estimate in the time

• Page 6, Line 22between two estimates made pursuant to subsection (2) of this

• Page 6, Line 23section or the legislative council staff issues an interim revenue

• Page 6, Line 24estimate between its regularly issued quarterly revenue

• Page 7, Line 1estimates, the joint budget committee shall hold a meeting as

• Page 7, Line 2soon as practicable after the issuance of the interim revenue

• Page 7, Line 3estimate to hear a presentation of the interim revenue estimate.

• Page 7, Line 4If the governor issued an interim revenue estimate, the director

• Page 7, Line 5of the office of state planning and budgeting shall present the

• Page 7, Line 6interim estimate to the joint budget committee. If the legislative

• Page 7, Line 7council staff issued an interim revenue estimate, the chief

• Page 7, Line 8economist of the legislative council staff shall present the

• Page 7, Line 9interim estimate to the joint budget committee. If both the

• Page 7, Line 10governor and the legislative council staff issued interim

• Page 7, Line 11revenue estimates, the joint budget committee may hear presentations about each estimate at the same meeting.

• Page 7, Line 12SECTION 4.  Applicability. This act applies to executive orders

• Page 7, Line 13issued, plans formulated, and revenue estimates and interim revenue estimates made on or after the effective date of this act.

• Page 7, Line 14SECTION 5.  Safety clause. The general assembly finds,

• Page 7, Line 15determines, and declares that this act is necessary for the immediate

• Page 7, Line 16preservation of the public peace, health, or safety or for appropriations for

• Page 7, Line 17the support and maintenance of the departments of the state and state institutions.