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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0419.01 Nicole Myers x4326 SENATE BILL 26-042
Senate Committees House Committees
Finance
A BILL FOR AN ACT
CONCERNING THE CLASSIFICATION OF CERTAIN STATE REVENUE FOR101
THE PURPOSES OF CALCULATING STATE FISCAL YEAR SPENDING102
PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE103
CONSTITUTION, AND, IN CONNECTION THEREWITH, CLARIFYING104
THE STATUTORY DEFINITIONS OF COLLECTIONS FOR ANOTHER105
GOVERNMENT AND DAMAGE AWARDS.106
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
SENATE SPONSORSHIP
Weissman and Amabile,
HOUSE SPONSORSHIP
Zokaie and Sirota,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
"fiscal year spending" as excluding "collections for another government"
and "damage awards". Although TABOR does not define either
"collections for another government" or "damage awards", the TABOR
implementing statutes define both terms. The bill clarifies both of these
definitions for state fiscal years commencing on or after July 1, 2025.
The bill clarifies that "collections for another government", 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 revenue from the excise tax on gasoline used as fuel for the
propulsion of specified aircraft collected by the state and distributed to
governmental or airport entities operating an FAA-designated public use
airport.
The bill also 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
fines and penalties imposed by the state.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration.2
(1) The general assembly finds and declares that:3
(a) Section 20 (2)(e) of article X of the state constitution exempts4
"collections for another government" and "damage awards" from "fiscal5
year spending", as defined in section 20 (2)(e) of article X of the state6
constitution;7
(b) Under the existing statutory definition of "damage award",8
some money that the state collects as fines or penalties for violations of9
certain legal requirements is treated as state fiscal year spending when10
determining whether the state has exceeded the state's fiscal year11
spending limit despite the constitutional exemption for such collections;12
(c) It is inconsistent with section 20 of article X of the state13
constitution to treat money that the state collects as fines or penalties for14
violations of certain legal requirements as state revenue in light of the15
specific exemption for "damage awards";16
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(d) Under the existing definition of "collections for another1
government", some money that the state collects from the excise tax on2
gasoline that is used as fuel for the propulsion of certain aircraft and that3
is distributed to other governmental or airport entities is treated as state4
fiscal year spending when determining whether the state has exceeded the5
state's fiscal year spending limit despite the constitutional exemption for6
such collections;7
(e) It is inconsistent with section 20 of article X of the state8
constitution to treat money that the state collects from the excise tax on9
gasoline that is used as fuel for the propulsion of certain aircraft and that10
is distributed to other governmental and airport entities as state fiscal year11
spending in light of the specific exemption for "collections for another12
government"; and13
(f) Nothing in this act operates to exclude any money that has14
been included as "collections for another government" or "damage15
awards" under the preexisting definition of those terms from the clarified16
definitions of those terms in this act - that money continues to be included17
in these clarified definitions.18
SECTION 2. In Colorado Revised Statutes, 24-77-102, amend19
(1)(b), (2)(a), (2)(b)(IV), and (2)(b)(V); and add (1)(e) and (2)(c) as20
follows:21
24-77-102. Definitions.22
As used in this article 77, unless the context otherwise requires:23
(1) (b) EXCEPT AS OTHERWISE SPECIFIED IN SUBSECTION (1)(b)(IV)24
OF THIS SECTION , for state fiscal years commencing on or after July 1,25
2023, notwithstanding the definition of "collections for another26
government" in subsection (1)(a) of this section, the only revenues27
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collected by the state for the benefit and use of another government other1
than the state and passed through to that government other than the state2
for the benefit of and use by that government that qualify as "collections3
for another government" without further identification by the general4
assembly are revenues collected pursuant to:5
(I) The authority of the government for whose benefit the state6
collects the revenue;7
(II) The authority of the state and apportioned to another8
government in connection with that government forgoing the imposition9
of certain taxes and collecting the corresponding tax revenue; or10
(III) A constitutional requirement that the state collect the revenue11
for the benefit of another government; OR12
(IV) FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1,13
2025, THE AUTHORITY OF THE STATE TO COLLECT AN EXCISE TAX ON14
GASOLINE THAT IS USED AS JET FUEL AND DISTRIBUTE THE REVENUE TO A15
NON-STATE ENTITY.16
(e) "COLLECTIONS FOR ANOTHER GOVERNMENT", WITH RESPECT17
TO REVENUE THAT IS COLLECTED IN ACCORDANCE WITH SUBSECTION18
(1)(b)(IV) OF THIS SECTION , INCLUDES THE REVENUE FROM THE EXCISE19
TAX ON GASOLINE USED AS FUEL FOR THE PROPULSION OF20
NONTURBO-PROPELLER, NONJET ENGINE , TURBO -PROPELLER, OR JET21
ENGINE AIRCRAFT COLLECTED BY THE STATE PURSUANT TO SECTION22
39-27-102 (1)(a)(IV) THAT IS PLACED, PURSUANT TO SECTION 39-27-11223
(2)(b), IN THE AVIATION FUND CREATED IN SECTION 43-10-109 AND24
DISTRIBUTED IN ACCORDANCE WITH SECTION 43-10-110 TO25
GOVERNMENTAL OR AIRPORT ENTITIES OPERATING AN FAA-DESIGNATED26
PUBLIC USE AIRPORT.27
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(2) "Damage award" means any pecuniary compensation received1
by the state as a result of:2
(a) Any judgment or allowance in favor of the state; and3
(b) For state fiscal years commencing on or after July 1, 2024:4
(IV) A monetary fine or penalty collected by the division of5
administration of the department of public health and environment6
pursuant to section 25-7-115, 25-7-122, or 25-7-123 and deposited in the7
community impact cash fund created in section 25-7-129 or in the motor8
vehicle emissions assistance fund created in section 25-7-129.5; and9
(V) A monetary penalty collected by the division of labor10
standards and statistics of the department of labor and pursuant to section11
8-1-114; AND12
(c) FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1,13
2025: 14
(I) A FINE, PENALTY, OR FORFEITURE THAT IS CREDITED TO THE15
HIGHWAY USERS TAX FUND PURSUANT TO SECTIONS 18-4-509 (2)(a),16
39-27-104 (1)(g), 42-1-217 (1)(a), 42-1-217 (1)(b), 42-1-217 (1)(d),17
42-1-217 (1)(e), 42-1-217 (2), 42-4-225 (3), AND 42-4-235 (2)(a);18
(II) A MONETARY PENALTY COLLECTED PURSUANT TO SECTION19
10-1-310, 10-3-1108, OR 10-3-1109, BY THE COMMISSIONER OF20
INSURANCE IN THE DIVISION OF INSURANCE IN THE DEPARTMENT OF21
REGULATORY AGENCIES;22
(III) A CIVIL MONEY PENALTY COLLECTED PURSUANT TO SECTION23
11-30-106.5 OR 11-44-123, BY THE COMMISSIONER OF FINANCIAL24
SERVICES IN THE DIVISION OF FINANCIAL SERVICES IN THE DEPARTMENT OF25
REGULATORY AGENCIES;26
(IV) A CIVIL MONEY PENALTY COLLECTED PURSUANT TO SECTION27
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11-102-503 OR 11-109-602, BY THE BANKING BOARD IN THE DIVISION OF1
BANKING IN THE DEPARTMENT OF REGULATORY AGENCIES;2
(V) A CIVIL MONETARY PENALTY COLLECTED PURSUANT TO3
SECTION 25-1-107.5, BY THE DEPARTMENT OF HEALTH CARE POLICY AND4
FINANCING;5
(VI) A FINE COLLECTED PURSUANT TO SECTION 25-1.5-117, BY THE6
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT;7
(VII) A N OVERPAYMENT OR CIVIL MONETARY PENALTY8
COLLECTED PURSUANT TO SECTION 25.5-4-301 (2)(a)(I), BY THE9
DEPARTMENT OF HEALTH CARE POLICY AND FINANCING;10
(VIII) PROCEEDS OWING TO THE STATE AS A RESULT OF AN ACTION11
OR SETTLEMENT OF A CLAIM PURSUANT TO SECTION 25.5-4-306;12
(IX) A CIVIL PENALTY COLLECTED PURSUANT TO SECTION13
25-11-107 (4) BY THE DEPARTMENT OF PUBLIC HEALTH AND14
ENVIRONMENT OR BY THE ATTORNEY GENERAL ON BEHALF OF THE15
DEPARTMENT;16
(X) A N ADMINISTRATIVE PENALTY COLLECTED PURSUANT TO17
SECTION 25-17-407, BY THE DEPARTMENT OF PUBLIC HEALTH AND18
ENVIRONMENT;19
(XI) A N ADMINISTRATIVE OR CIVIL PENALTY COLLECTED20
PURSUANT TO SECTION 25-15-309, BY THE DEPARTMENT OF PUBLIC21
HEALTH AND ENVIRONMENT; 22
(XII) A N ADMINISTRATIVE OR CIVIL PENALTY COLLECTED23
PURSUANT TO SECTION 30-20-113 (5), BY THE DEPARTMENT OF PUBLIC24
HEALTH AND ENVIRONMENT; 25
(XIII) THE SIXTY-FIVE PERCENT MONETARY PENALTY COLLECTED26
PURSUANT TO SECTION 8-81-101 (4)(a)(II), BY THE DIVISION OF27
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UNEMPLOYMENT INSURANCE IN THE DEPARTMENT OF LABOR AND1
EMPLOYMENT;2
(XIV) A PENALTY COLLECTED PURSUANT TO SECTION 38-12-1105,3
BY THE DIVISION OF HOUSING IN THE DEPARTMENT OF LOCAL AFFAIRS;4
(XV) A MONETARY PENALTY COLLECTED PURSUANT TO SECTION5
44-30-524 BY THE COLORADO LIMITED GAMING CONTROL COMMISSION IN6
THE DIVISION OF GAMING IN THE DEPARTMENT OF REVENUE; 7
(XVI) A PENALTY COLLECTED PURSUANT TO SECTION 8-1-116 BY8
THE DIRECTOR OF THE DIVISION OF LABOR STANDARDS AND STATISTICS IN9
THE DEPARTMENT OF LABOR AND EMPLOYMENT;10
(XVII) A PENALTY COLLECTED PURSUANT TO SECTION 25-5-100911
BY THE STATE BOARD OF HEALTH IN THE DEPARTMENT OF PUBLIC HEALTH12
AND ENVIRONMENT;13
(XVIII) MONEY DEPOSITED IN THE CRIME VICTIM COMPENSATION14
FUND OF EACH JUDICIAL DISTRICT PURSUANT TO SECTION 24-4.1-117 (2)15
INCLUDING ALL MONEY PAID AS A COST OR SURCHARGE LEVIED ON16
CRIMINAL ACTIONS PURSUANT TO SECTION 24-4.1-119; ALL MONEY17
RECEIVED FROM ANY ACTION OR SUIT TO RECOVER DAMAGES FROM AN18
ASSAILANT FOR A COMPENSABLE CRIME WHICH WAS THE BASIS FOR19
APPROVAL OF, AND LIMITED TO, COMPENSATION RECEIVED UNDER PART 120
OF ARTICLE 4.1 OF THIS TITLE 24; AND ANY RESTITUTION PAID BY AN21
ASSAILANT TO A VICTIM FOR DAMAGES FOR A COMPENSABLE CRIME WHICH22
WAS THE BASIS FOR APPROVAL OF COMPENSATION RECEIVED UNDER PART23
1 OF ARTICLE 4.1 OF THIS TITLE 24 AND FOR DAMAGES FOR WHICH THE24
VICTIM HAS RECEIVED APPROVAL OF , AND LIMITED TO , COMPENSATION25
RECEIVED UNDER PART 1 OF ARTICLE 4.1 OF THIS TITLE 24; AND26
(XIX) R EIMBURSEMENTS COLLECTED PURSUANT TO SECTION27
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25.5-4-301 BY THE DEPARTMENT OF HEALTH CARE POLICY AND FINANCING1
FROM LEGALLY RESPONSIBLE PARTIES WHEN THE DEPARTMENT HAS PAID2
CLAIMS ON BEHALF OF A MEMBER OF THE STATE'S MEDICAID PROGRAM;3
SECTION 3. Safety clause. The general assembly finds,4
determines, and declares that this act is necessary for the immediate5
preservation of the public peace, health, or safety or for appropriations for6
the support and maintenance of the departments of the state and state7
institutions.8
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