2023 Colorado Revised Statutes › Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001) › GAMING AND RACING (§§ 44-30-101 — 44-33-108) › Article 30 - COLORADO LIMITED GAMING ACT (§§ 44-30-101 — 44-30-1703) › Part 7 - LIMITED GAMING FUND (§§ 44-30-701 — 44-30-705) › Section 44-30-702 - Revenues attributable to local revisions to gaming limits - extended limited gaming fund - identification - separate administration - distribution - legislative declaration - definitions

(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.
(2)
Interest earned on money in the fund shall remain in the fund, and money remaining in 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.
(3)
From the fund, the state treasurer shall pay:
(a)
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.
(b)
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:
(I)
For revenues collected in fiscal year 2009-10, the payment shall equal six percent of the first year's limited gaming revenues attributable to extended limited gaming.
(II)
For each fiscal year after 2009-10, the annual payment shall be increased or decreased as follows and shall constitute the annual adjustment:
(A)
For any year in which the annual growth of limited gaming revenues attributable to extended limited gaming exceeds or equals six percent, add an amount equal to six percent of said revenues;
(B)
For any year in which the annual growth in limited gaming revenues attributable to extended limited gaming is between zero and six percent, add an amount equal to the actual percentage growth of said revenues;
(C)
For any year in which limited gaming tax revenues experience a decline, subtract an amount 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)
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.
(II)
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.
(III)
Twelve percent to the governing bodies of Gilpin and Teller counties 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 county.
(4)
Definitions.
As used in this section, unless the context otherwise requires:
(a)
"Colleges that were operating on and after January 1, 2008" means: Aims community college, 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 college, Pikes Peak state college, Pueblo community college, Red Rocks community college, Trinidad state 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.
(b)
"Extended limited gaming" means the extension of hours, games, or bet limits by a local vote in accordance with section 9 (7)(a) of article XVIII of the state constitution.
(c)
(I)
"Full-time equivalent student enrollment" means the number of in-state, full-time equivalent 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 non-degree-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:
(A)
Students who are admitted to a college on a competitive basis and are not enrolled in certificate, AA, AS, AGS, or AAS developmental or vocational courses;
(B)
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
(C)
Students who are enrolled in classes that are not supported by state general fund money.
(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:
(A)
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
(B)
If growth in limited gaming tax revenues is between zero and three percent in any fiscal 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
(C)
If limited gaming tax revenues decline from year to year, the previous fiscal year's adjusted base shall be reduced by the actual percentage decline in limited gaming tax revenue.
(e)
"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.
(f)
"Previous fiscal year" means, with respect to a college receiving money under this section, 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.
(b)
Money distributed under this section to colleges listed in subsection (4)(a) of this section, 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.
(c)
Any higher education funding formula that allocates state-appropriated money shall not use money distributed under this section to supplant state money otherwise allocated by the formula.
(d)
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.
(6)
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.
(7)
Reduction in revenues operation of hold-harmless provisions - continuity of funding - recovery.
(a)
Legislative declaration.
The general assembly finds, determines, and declares that:
(I)
Section 9 (7) of article XVIII of the state constitution, initiated and enacted by the people 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;
(II)
Amendment 50 explicitly authorized the general assembly to "enact, as necessary, legislation that will facilitate the operation of this [initiative]";
(III)
Pursuant to that authority, it is reasonable for the general assembly to address the effects of the global pandemic and economic recession of 2020 in a way that:
(A)
Avoids long-term economic damage to any of the beneficiaries of limited gaming tax revenues; and
(B)
Equitably allocates the limited gaming tax revenues in fiscal years immediately following this severe funding decline among all recipients;
(IV)
The allocation provisions of section 9 (7) of article XVIII of the state constitution did not contemplate the unprecedented significant decline in limited gaming revenues caused by the global pandemic, and, in 2020, the general assembly desired to address the original implementing statutory formula for the allocation of gaming revenues, consistent with the state constitution in a manner that modified the statutory annual adjustment provisions to retain the constitutional allocation, thus reflecting the proportionate allocation to the beneficiaries of limited gaming tax revenues;
(V)
This reallocation, however, did not anticipate the rapidity and extent of the growth of the limited gaming revenues post-pandemic, which was due in part to the voters' approval in 2020 of the modifications to section 9 (7) of article XVIII of the state constitution in the initiative commonly referred to as "Amendment 77", which permitted the gaming towns to increase or remove bet limits and approve new casino games with local voter approval;
(VI)
Therefore, it is necessary to adjust the allocation for the state fiscal year 2021-22 as set forth in subsection (7)(c) of this section to achieve the purposes set forth in subsection (7)(a)(III) of this section;
(VII)
Further, the global pandemic and economic recession of 2020 demonstrated that the existing methodology for determining the limited gaming tax revenues attributable to extended limited gaming is susceptible to distortion when there is a significant decline in the limited gaming tax revenues and in the fiscal years thereafter when the revenues are restored;
(VIII)
To equitably allocate limited gaming tax revenues in fiscal years following a significant decline and to avoid long-term economic damage to any of the beneficiaries of those revenues, it is necessary for the general assembly to enact legislation that will facilitate the operation of section 9 (7) of article XVIII of the state constitution.
(a.5)
As used in this subsection (7), unless the context otherwise requires:
(I)
"Extended limited gaming fund recipients" means the recipients of limited gaming tax revenues attributable to extended limited gaming under section 9 (7) of article XVIII of the state constitution.
(II)
"Fiscal year with a significant decrease in total limited gaming tax revenue" means:
(A)
A fiscal year in which the total limited gaming tax revenue collections have declined by five percent or more from the immediately preceding fiscal year; or
(B)
If subsection (7)(a.5)(II)(A) of this section does not apply, the second of two consecutive fiscal years with a cumulative decline of total limited gaming tax revenue collections that is six percent or more from the fiscal year immediately preceding the first of the two consecutive fiscal years.
(III)
"Limited gaming fund recipients" means the recipients listed in section 9 (5)(b)(II) of article XVIII of the state constitution.
(IV)
"Recent total limited gaming tax revenues peak" means total limited gaming tax revenue collections for the fiscal year that is:
(A)
Prior to the fiscal year with a significant decrease in total limited gaming tax revenues; and
(B)
The last fiscal year in which total limited gaming tax revenue collections increased from the immediately preceding fiscal year.
(b)
(I)
For state fiscal year 2020-21, the growth in total net gaming tax distributions is allocated between the limited gaming fund recipients and the extended limited gaming fund recipients 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.
(II)
(Deleted by amendment, L. 2022.)
(c)
(I)
For purposes of determining the limited gaming tax revenues attributable to extended limited gaming, the adjusted base for state fiscal year 2021-22 is equal to one hundred thirteen million nine hundred seventy-three thousand twelve dollars, which is equal to the adjusted base for state fiscal year 2018-19 increased by two and one-half percent, with that sum increased by three percent, with that sum increased by three percent. All limited gaming tax revenues for state fiscal year 2021-22 in excess of this adjusted base are limited gaming tax revenues attributable to extended limited gaming for state fiscal year 2021-22.
(II)
The adjusted base that is established in subsection (7)(c)(I) of this section constitutes the adjusted base that is used in the calculation set forth in subsection (4)(d) of this section for purposes of determining the limited gaming tax revenues attributable to extended limited gaming for state fiscal year 2022-23, and future calculations under subsection (4)(d) of this section are derived from this initial amount as subsequently adjusted.
(d)
If there is a fiscal year with a significant decrease in total limited gaming tax revenues, then:
(I)
Beginning with the next fiscal year and continuing for each consecutive fiscal year thereafter with total limited gaming tax revenues that are less than or equal to the recent total limited gaming tax revenues peak, the annual growth or decline in total gaming tax distributions is allocated between the limited gaming fund recipients and the extended limited gaming fund recipients based on the relative percentages in which each group of recipients shared in the decrease in total net gaming tax distributions from the fiscal year with the recent total limited gaming tax revenues peak to the fiscal year with a significant decrease in total limited gaming revenue.
(II)
(A)
For purposes of determining the limited gaming tax revenues attributable to extended limited gaming, for the next fiscal year in which total limited gaming revenues exceed the recent total limited gaming tax revenues peak, the adjusted base for the fiscal year is equal to the recent total limited gaming tax revenues peak increased by three percent or the actual percentage increase of total limited gaming revenues for the fiscal year above the recent total limited gaming revenues peak, whichever percentage is less. For this next fiscal year, all limited gaming tax revenues in excess of this adjusted base are limited gaming tax revenues attributable to extended limited gaming for the fiscal year.
(B)
The adjusted base that is established in subsection (7)(d)(II)(A) of this section constitutes the adjusted base that is used in the calculation set forth in subsection (4)(d) of this section for purposes of determining the limited gaming tax revenues attributable to extended limited gaming for the fiscal year immediately following the fiscal year set forth in subsection (7)(d)(II)(A) of this section, and future calculations under subsection (4)(d) of this section are derived from this initial amount as subsequently adjusted.
(e)
The commission may make any adjustments to the allocations set forth in this subsection (7) 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).
Amended by 2022 Ch. 422, § 3, eff. 6/7/2022.
Amended by 2022 Ch. 122, § 2, eff. 4/22/2022.
Amended by 2021 Ch. 155, § 2, eff. 9/7/2021.
Amended by 2020 Ballot Amendment 77, passed by voters in 11/3/2020 election, eff. on date of official proclamation by governor 5/1/2021.
Amended by 2020 Ch. 215, § 1, eff. 6/30/2020.
Renumbered from C.R.S. § 12-47.1-701.5 and amended by 2018 Ch. 14, § 2, eff. 10/1/2018.
L. 2018: Entire article added with relocations, (SB 18 -034), ch. 201, p. 201, § 2, effective October 1. L. 2020: IP(3)(b) and IP(4)(d) amended and (7) added, (HB 20-1400), ch. 1037, p. 1037, § 1, effective June 30. Initiated 2020: (3)(c)(I) amended, Amendment 77, effective 5/1/2021. See L. 2021, p. 4211. L. 2021: IP(4) and (4)(a) amended, (SB 21-008), ch. 881, p. 881, § 2, effective September 7.
(1) This section is similar to former § 12-47.1-701.5 as it existed prior to 2018.
(2) Subsection (3)(c)(I) was amended by Amendment 77, effective May 1, 2021. The proclamation of the governor was December 31, 2020. The vote count for the measure at the general election held November 3, 2020, was as follows:
FOR: 1,854,153
AGAINST: 1,208,414