HB 24-1231

House Bill 24-1231, which has been signed into law in Colorado, allocates state funding for the construction and renovation of several higher education facilities. The bill provides up to $246 million in financing for projects at four institutions: a medical college at the University of Northern Colorado, a health institute tower at Metropolitan State University of Denver, a veterinary complex at Colorado State University, and renovations at Trinidad State College. Additionally, it includes a special fund of $41.25 million held in escrow specifically for the University of Northern Colorado's osteopathic medicine program to ensure its accreditation. The law is now effective, meaning these projects can proceed with state support as outlined.

Official Summary

The act requires the state treasurer, on behalf of the state, to execute, no later than December 31, 2024, financed purchase of an asset or certificate of participation agreements (financing agreements) to finance capital costs related to the construction of facilities for 4 state institutions of higher education. The financing agreements are to be issued in an aggregate principal amount of up to $246,936,092 plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest. The anticipated annual state-funded payments for the principal and interest components due under the financing agreements must not exceed $17,500,000 with principal amortization not occurring before July 1, 2027. The proceeds from the financing agreements will be used for the following 4 capital projects: Construction of facilities for the university of northern Colorado's college of osteopathic medicine; Construction of a health institute tower for metropolitan state university of Denver; Construction of a veterinary health education complex for Colorado state university; and Renovation of Trinidad state college's valley campus main building to move nursing and allied health programs into the building, address deferred maintenance issues, and create an assembly space that will serve both the college and the community and a one-stop student services center to support career and technical education and allied health students. The act also requires a general fund transfer of $41,250,000 to the university of northern Colorado for deposit into an escrow account to be held in escrow in accordance with the requirements of the accrediting body of the college of osteopathic medicine. If the money in escrow, including interest, is released to the university of northern Colorado upon graduation of the first cohort from the college of osteopathic medicine, then the university shall provide notice of the release of escrow to the joint budget committee of the general assembly, to the state treasurer, and to the office of state planning and budgeting. Additionally, for the state fiscal year in which the escrow money is released, the amount that is to be paid to the university pursuant to its fee-for-service contract for that state fiscal year is reduced by the lesser of an amount equal to the amount of the escrow money or an amount equal to the amount of a portion of the escrow money that reduces the amount to be paid pursuant to the fee-for-service contract to zero. If the amount of the escrow money exceeds the amount due under such fee-for-service contract, then the amount the university of northern Colorado would otherwise receive from the college opportunity fund is reduced by an amount equal to the excess. If, after both reductions, there remains excess escrow money, then in the next state fiscal year the amount that is to be paid to the university of northern Colorado pursuant to its fee-for-service contract for that state fiscal year is reduced by an amount equal to the amount of the remaining escrow money. The university of northern Colorado must use the escrow money, or a portion of it, as applicable, for each applicable reduction as an offset for the reduction. If the escrow money is released for failure of the college of osteopathic medicine to complete accreditation, then the university of northern Colorado shall provide a report of this to the joint budget committee of the general assembly, to the state treasurer, and to the office of state planning and budgeting. For the period that the escrow money is held in escrow, the amount of unrestricted general fund year-end balances that must be retained as a reserve is reduced by $41,250,000. The appropriation to implement the act anticipates that the department of higher education will receive $246,936,092 in cash funds from the proceeds of the financing agreements and is anticipated to use the amount as follows: $127,542,028 for construction of the college of osteopathic medicine at the university of northern Colorado; $50,000,000 for construction of the health institute tower at metropolitan state university of Denver; $50,000,000 for construction of the veterinary health education complex at Colorado state university; and $19,394,064 for renovation of the valley campus main building at Trinidad state college. APPROVED by Governor May 1, 2024 EFFECTIVE May 1, 2024(Note: This summary applies to this bill as enacted.)

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