Senate Bill 25-173 Rerevised

A Bill for an Act

• Page 1, Line 101Concerning the classification of certain state revenue for

• Page 1, Line 102purposes of calculating state fiscal year spending

• Page 1, Line 103pursuant to section 20 of article X of the state

• Page 1, Line 104constitution, and, in connection therewith, clarifying

• Page 1, Line 105the statutory definitions of damage awards and

• Page 1, Line 106property sale for purposes of calculating state fiscal

• Page 1, Line 107year spending.

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.)

Section 20 of article X of the state constitution (TABOR) defines "fiscal year spending" as not including either "damage awards" or "property sales". Although TABOR does not define either "damage award" or "property sale", the TABOR implementing statutes do. The bill clarifies both of these definitions for state fiscal years commencing on or after July 1, 2024.

The bill clarifies that "damage award", as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes certain civil penalties imposed by the state.

The bill also clarifies that "property sale", as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes certain specified sales by the state.

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

• Page 2, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly finds and declares that:

• Page 2, Line 3(a)  Section 20 (2)(e) of article X of the state constitution exempts

• Page 2, Line 4"damage awards" and "property sales" from "fiscal year spending", as defined in section 20 (2)(e) of article X of the state constitution;

• Page 2, Line 5(b)  Under the existing statutory definition of "damage award",

• Page 2, Line 6some money that the state collects as fines or penalties for violations of

• Page 2, Line 7certain legal requirements is treated as state fiscal year spending when

• Page 2, Line 8determining whether the state has exceeded the state's fiscal year spending limit despite the constitutional exemption for such collections;

• Page 2, Line 9(c)  It is inconsistent with section 20 of article X of the state

• Page 2, Line 10constitution to treat money that the state collects as fines or penalties for

• Page 2, Line 11violations of certain legal requirements as state revenue in light of the specific exemption for "damage awards";

• Page 2, Line 12(d)  Under the existing statutory definition of "property sales",

• Page 2, Line 13some money that the state collects from sales of tangible or intangible

• Page 3, Line 1assets is treated as state fiscal year spending when determining whether

• Page 3, Line 2the state has exceeded the state's fiscal year spending limit despite the constitutional exemption for such collections;

• Page 3, Line 3(e)  It is inconsistent with section 20 of article X of the state

• Page 3, Line 4constitution to treat money that the state collects from sales of tangible or

• Page 3, Line 5intangible assets as state fiscal year spending in light of the specific exemption for "property sales"; and

• Page 3, Line 6(f)  Nothing in this act operates to exclude any money that has

• Page 3, Line 7been included as "damage awards" or "property sales" under the

• Page 3, Line 8preexisting definitions of those terms from the clarified definitions of

• Page 3, Line 9those terms in this act - that money continues to be included in these clarified definitions.

• Page 3, Line 10SECTION 2.  In Colorado Revised Statutes, 24-77-102, amend (2) and (11) as follows:

• Page 3, Line 1124-77-102.  Definitions. As used in this article 77, unless the context otherwise requires:

• Page 3, Line 12(2)  "Damage award" means any pecuniary compensation received by the state as a result of:

• Page 3, Line 13(a)  Any judgment or allowance in favor of the state; and

• Page 3, Line 14(b)  For state fiscal years commencing on or after July 1, 2024:

• Page 3, Line 15(I)  A civil monetary penalty assessed by the department

• Page 3, Line 16of health care policy and financing pursuant to section 25.5-6-205;

• Page 3, Line 17(II)  A civil monetary penalty imposed by the division of

• Page 3, Line 18administration of the department of public health and

• Page 3, Line 19environment pursuant to section 25-8-608;

• Page 4, Line 1(III)  A monetary penalty imposed by the energy and

• Page 4, Line 2carbon management commission pursuant to section 34-60-121 (1);

• Page 4, Line 3(IV)  A monetary fine or penalty collected by the division

• Page 4, Line 4of administration of the department of public health and

• Page 4, Line 5environment pursuant to section 25-7-115, 25-7-122, or 25-7-123

• Page 4, Line 6and deposited in the community impact cash fund created in section 25-7-129; and

• Page 4, Line 7(V)  A monetary penalty collected by the division of labor

• Page 4, Line 8standards and statistics of the department of labor and pursuant to section 8-1-114.

• Page 4, Line 9(11)  "Property sale" means:

• Page 4, Line 10(a)  Any transfer of the ownership of an estate in tangible assets or

• Page 4, Line 11intangible rights, excluding leasehold interests, in which or to which the

• Page 4, Line 12state has rights protected by law from the state to any party for consideration; or

• Page 4, Line 13(b)  Any contract resulting in the payment of pecuniary

• Page 4, Line 14compensation to the state for permitting another to exploit, use, or market

• Page 4, Line 15nonrenewable natural resources which are located on real property owned by the state and which are subject to depletion with use; or

• Page 4, Line 16(c)  For state fiscal years commencing on or after July 1,

• Page 4, Line 172024, a transfer of rights in tangible or intangible property,

• Page 4, Line 18excluding leasehold interests, in which or to which the state

• Page 4, Line 19has rights protected by law from the state to any party for consideration. Such a transfer of rights includes:

• Page 4, Line 20(I)  Merchandise sales at the History Colorado Center;

• Page 4, Line 21(II)  Merchandise sales at state historical society museums other than the History Colorado Center;

• Page 5, Line 1(III)  Sales of supplies related to agricultural inspections;

• (IV)  Sales of supplies related to wildfire equipment repair;

• Page 5, Line 2(V)  Sales of supplies related to pesticide inspections;

• Page 5, Line 3(VI)  Sales related to the correctional education program established in section 17-32-105;

• Page 5, Line 4(VII)  Sales related to the business enterprise program created in part 2 of article 84 of title 8;

• Page 5, Line 5(VIII)  Non-concession sales at the Colorado state fair; and

• Page 5, Line 6(IX)  The sale of wine for promotional purposes by the

• Page 5, Line 7Colorado wine industry development board, created in article 29.5 of title 35.

• Page 5, Line 8SECTION 3.  Safety clause. The general assembly finds,

• Page 5, Line 9determines, and declares that this act is necessary for the immediate

• Page 5, Line 10preservation of the public peace, health, or safety or for appropriations for

• Page 5, Line 11the support and maintenance of the departments of the state and state institutions.