HB 22-1400

House Bill 22-1400, which has been signed into law in Colorado, allows certain higher education institutions and their auxiliary facilities that were previously designated as state enterprises but lost this status to reapply for enterprise designation without needing voter approval. Additionally, the bill sets a cap of $100 million on revenue from fees and surcharges for new state enterprises within their first five fiscal years unless approved by voters in a statewide election. This means that any new enterprises collecting more than $100 million in fees and surcharges during this period must halt such collections until voter approval is obtained. The bill affects institutions of higher education and the state's enterprise management processes, ensuring clearer guidelines for revenue collection and requalification as an enterprise.

Official Summary

The act permits an institution of higher education (institution), or a group of institutions that is managed by a single governing board, that was designated as an enterprise by the institution's or facility's governing body as of January 1, 2021, and that subsequently disqualifies as an enterprise, to qualify and be redesignated as an enterprise without voter approval. The act permits an auxiliary facility, or group of auxiliary facilities with similar functions, that is managed by the governing body of an institution or by the board of directors of the Auraria higher education center that was designated as an enterprise by the institution's or facility's governing body as of January 1, 2021, and that subsequently disqualifies as an enterprise, to qualify and be redesignated as an enterprise without voter approval. The act prohibits a state enterprise that was qualified or created after January 1, 2021, from receiving more than $100,000,000 in revenue from fees and surcharges in its first 5 fiscal years unless approved at a statewide general election. The act repeals the requirement that an election be held based on an enterprise's projected revenue. If a state enterprise has collected $100,000,000 in fees and surcharges in its first 5 fiscal years prior to approval, the state enterprise must stop collecting fees and surcharges. The act clarifies that, for the purpose of applying the approval requirements, enterprises serve primarily the same purpose when they provide the same services in the same geographic area and that the first 5 fiscal years of a state enterprise for the purpose of calculating the $100,000,000 amount are the first 5 state fiscal years since the creation or first qualification of the enterprise. (Note: This summary applies to this bill as enacted.)

Votes