2018 Colorado Revised Statutes
Title 39 - Taxation
Specific Taxes
Article 29 - Severance Tax
§ 39-29-109.3. Severance tax operational fund - repeal
(1) For fiscal years commencing on and after July 1, 1997, the executive director of the department of natural resources shall submit with the department's budget request for each fiscal year a list and description of the programs the executive director recommends to be funded from the severance tax operational fund created in section 39-29-109 (2)(b), referred to in this section as the "operational fund". The general assembly may appropriate moneys from the total moneys available in the operational fund to fund recommended programs as follows:
(a)
(I) For programs or projects within the Colorado oil and gas conservation commission, up to thirty-five percent of the moneys in the operational fund for fiscal years commencing on or after July 1, 2009.
(II) Moneys appropriated for programs or projects pursuant to subparagraph (I) of this paragraph (a) shall be used by the Colorado oil and gas conservation commission for plugging and abandonment projects, for well-site location reclamation projects, or for regulatory and environmental programs or projects as specifically appropriated by the general assembly for use on such programs or projects; except that, if the commission determines that an emergency exists, the commission may expend any moneys received for the emergency without any further appropriation. In determining the uses of these moneys, the commission shall give priority to uses that reduce industry fees and mill levies.
(b) For programs within the Colorado geological survey, up to fifteen percent of the moneys in the operational fund;
(b.5) For the avalanche information center, up to five percent of the moneys in the operational fund;
(c) For programs within the division of reclamation, mining, and safety, up to thirty percent of the moneys in the operational fund for fiscal years commencing before July 1, 2008, and up to twenty-five percent of the moneys in the operational fund for fiscal years commencing on or after July 1, 2008. As part of any appropriation made, five hundred thousand dollars, or so much as may be available, shall be transferred to the abandoned mine reclamation fund created in section 34-34-102 (1), C.R.S.
(d) For programs within the Colorado water conservation board and for purposes authorized by article 75 of title 37, C.R.S., up to five percent of the moneys in the operational fund;
(e) For fiscal years commencing on or after July 1, 2008, only, for programs within the division of parks and wildlife that monitor, manage, or mitigate the impacts of mineral or mineral fuel production activities on wildlife in any region of the state in which production activity is occurring or, from any location in the state, research such impacts, up to five percent of the moneys in the operational fund, which moneys shall not supplant moneys that would otherwise be made available for such programs;
(f) For fiscal years commencing on or after July 1, 2009, for programs within the division of parks and wildlife that operate, maintain, or improve state parks in any region of the state in which production activity is occurring, up to ten percent of the moneys in the operational fund.
(1.5) and (1.7) Repealed.
(2) Subject to the requirements of subsections (3) and (4) of this section, if the general assembly chooses not to spend up to one hundred percent of the money in the operational fund as specified in subsection (1) of this section, the state treasurer shall transfer the following amounts, with the exception of the fiscal year commencing on July 1, 2018:
(a)
(I) To the water supply reserve fund created in section 39-29-109 (2)(c), the following amounts:
(A) to (D) Repealed.
(E) For each state fiscal year commencing on or after July 1, 2012, ten million dollars.
(II) (Deleted by amendment, L. 2009, (SB 09-106), ch. 386, p. 2090, § 2, effective July 1, 2009.)
(b) To fund the conservation district grant fund created in section 35-1-106.7, C.R.S., for soil and water conservation, the following amounts:
(I) to (III) Repealed.
(IV)
(A) For the state fiscal year commencing July 1, 2011, through the state fiscal year commencing on July 1, 2021, four hundred fifty thousand dollars.
(B) This subparagraph (IV) is repealed, effective July 1, 2023.
(c)
(I) To the water efficiency grant program cash fund created in section 37-60-126 (12), C.R.S., for use in accordance with that section, the following amounts:
(A) For each state fiscal year commencing on or after July 1, 2012, five hundred fifty thousand dollars.(B) (Deleted by amendment, L. 2009, (SB 09-293), ch. 370, p. 2008, § 1, effective June 1, 2009.)
(II) Moneys transferred pursuant to this paragraph (c) shall be in addition to and shall not replace any moneys appropriated to the Colorado water conservation board pursuant to paragraph (d) of subsection (1) of this section.
(III) This paragraph (c) is repealed, effective July 1, 2020.
(d) Repealed.(e) To the species conservation trust fund created in section 24-33-111 (2)(a), C.R.S., the following amounts:
(I) to (IX) Repealed.
(X)
(A) For the state fiscal year commencing July 1, 2017, five million dollars.
(B) This subparagraph (X) is repealed, effective July 1, 2019.
(XI)
(A) For the state fiscal year commencing July 1, 2018, five million dollars.
(B) This subparagraph (XI) is repealed, effective July 1, 2020.
(f) For providing energy-related assistance to low-income households as specified in section 40-8.7-112:
(I) to (IV) Repealed.
(V)
(A) For the state fiscal year commencing July 1, 2012, and each state fiscal year thereafter, through the state fiscal year commencing July 1, 2023, thirteen million dollars as follows:
Twenty-five percent to the department of human services low-income energy assistance fund created in section 40-8.7-112 (1); twenty-five percent to the energy outreach Colorado low-income energy assistance fund created in section 40-8.7-112 (2)(a); and fifty percent to the Colorado energy office low-income energy assistance fund created in section 40-8.7-112 (3)(a).
(B) This subsection (2)(f)(V) is repealed, effective July 1, 2025.
(g) and (h) Repealed.
(i) To the interbasin compact committee operation fund created in section 37-75-107, C.R.S., the following amounts:
(I) Repealed.
(II) For the state fiscal year commencing July 1, 2009, and for each state fiscal year thereafter, seven hundred forty-five thousand sixty-seven dollars.
(j) Repealed.
(k)
(I) For seven state fiscal years, beginning with the state fiscal year commencing on July 1, 2017, one million fifty thousand dollars per year to the forest restoration and wildfire risk mitigation grant program cash fund created in section 23-31-310 (8.5).
(II) This subsection (2)(k) is repealed, effective September 1, 2023.
(l) Repealed.
(m) For the mitigation of aquatic nuisance species as specified in article 10.5 of title 33:
(I) Repealed.
(II) For the state fiscal year commencing July 1, 2009, and every state fiscal year thereafter, four million six thousand five dollars to the division of parks and wildlife aquatic nuisance species fund created in section 33-10.5-108 (1).
(n)
(I) For seven fiscal years commencing on or after July 1, 2017, the state treasurer shall transfer:
(A) One million three hundred five thousand dollars to the healthy forests and vibrant communities fund created in section 23-31-313 (10);
(B) Fifty thousand dollars to the wildland-urban interface training fund created in section 24-33.5-1212 (5);
(C) Ninety-five thousand dollars to the wildfire preparedness fund created in section 24-33.5-1227 (1).
(II) This subsection (2)(n) is repealed, effective September 1, 2023.
(o) For the state fiscal year commencing July 1, 2015, and for each state fiscal year thereafter, one hundred twenty-seven thousand dollars to the special account in the general fund established pursuant to section 34-32-122 (1)(a), C.R.S., by the mined land reclamation board established in section 34-32-105, C.R.S., for the purpose of reclaiming lands that were obligated to be reclaimed under permits upon which financial warranties have been forfeited;
(p) Repealed.
(q) For the state fiscal year commencing July 1, 2015, one million dollars to the Colorado water conservation board construction fund, created in section 37-60-121 (1)(a), C.R.S., for the Colorado water conservation board to continue to provide planning and engineering studies, including implementation measures, to address: Technical needs for watershed restoration and flood mitigation projects throughout the state; aquatic habitat protection; flexible operations for multiple uses; restoration work; quantification of environmental flow needs; and monitoring efforts to support watershed health goals outlined in the Colorado water plan. The money remains available for the designated purposes until June 30, 2019, at which time any unused money will revert to the operational fund.
(r) For the state fiscal year commencing July 1, 2015, one million two hundred thousand dollars to the Colorado water conservation board construction fund, created in section 37-60-121 (1)(a), C.R.S., for the Colorado water conservation board to participate in the development of modern tools and methods for determining large rain events for regulating and designing dam spillways in the state. The money remains available for the designated purposes until June 30, 2019, at which time any unused money will revert to the operational fund.
(s) Repealed.
(3)
(a) Except as provided in paragraph (b) of this subsection (3), it is the intent of the general assembly that the operational fund maintain a reserve equal to the current state fiscal year's operating appropriations for the programs specified in subsection (1) of this section plus fifteen percent of the current fiscal year's transfers specified in subsection (2) of this section. Moneys may be transferred from the reserve to offset temporary revenue reductions in the programs specified in subsection (1) of this section and to offset reductions for programs specified in subsection (2) of this section, up to fifteen percent of the current fiscal year's transfers specified in subsection (2) of this section; except that, if the general assembly determines that transfers of moneys from the reserve are needed during a state revenue crisis, the transfers shall be a loan from the reserve to be repaid as soon as moneys are available. This provision is intended to mitigate the impact of fluctuations in the amount of revenue credited to the fund from year to year so as to maintain current levels of service for the programs specified in subsection (1) of this section.
(b) and (c) Repealed.
(4)
(a) Except as provided in subsections (4)(b) and (4)(c) of this section, all transfers specified in subsection (2) of this section shall be made by the state treasurer in three installments, as follows:
(I) Forty percent on July 1;
(II) Thirty percent on January 4;(III) Thirty percent on April 1.
(b)
(I) If the revenue estimate prepared by the staff of the legislative council in June of any fiscal year indicates that the amount of severance tax revenues to be credited to the operational fund in the next fiscal year as specified in section 39-29-109 (2)(b) is insufficient for the state treasurer to make the transfers set forth in subsection (2) of this section and to meet the reserve requirement specified in subsection (3) of this section, all transfers scheduled to be made on July 1 shall be proportionally reduced. The July 1 proportional reduction shall be calculated based on the size of the annual transfers as specified in subsection (2) of this section and shall be made to the extent necessary to cover forty percent of the projected shortfall between total moneys available in the operational fund and the sum of the total operating appropriations for the programs specified in subsection (1) of this section, the total fiscal year's transfers specified in subsection (2) of this section, and the reserve requirement specified in subsection (3) of this section; except that up to one-third of the fifteen percent of the current fiscal year's transfers specified as part of the reserve set forth in subsection (3) of this section shall be used to offset any proportional reduction required by this subparagraph (I) in any fiscal year.
(II) If the revenue estimate prepared by the staff of the legislative council in December of any fiscal year indicates that the amount of severance tax revenues credited to the operational fund as specified in section 39-29-109 (2)(b) is insufficient for the state treasurer to make the transfers set forth in subsection (2) of this section and to meet the reserve requirement specified in subsection (3) of this section, all transfers scheduled to be made on January 4 of the fiscal year shall be proportionally reduced. The January 4 proportional reduction shall be calculated based on the size of the annual transfers as specified in subsection (2) of this section and shall be made to the extent necessary to cover seventy percent of the projected shortfall between total moneys available in the operational fund and the sum of the total operating appropriations for the programs specified in subsection (1) of this section, the total fiscal year's transfers specified in subsection (2) of this section, and the reserve requirement specified in subsection (3) of this section; except that up to one-third of the fifteen percent of the current fiscal year's transfers specified as part of the reserve set forth in subsection (3) of this section shall be used to offset any proportional reduction required by this subparagraph (II) in any fiscal year.
(III) If the revenue estimate prepared by the staff of the legislative council in March of any fiscal year indicates that the amount of severance tax revenues credited to the operational fund as specified in section 39-29-109 (2)(b) is insufficient for the state treasurer to make the transfers set forth in subsection (2) of this section and to meet the reserve requirement specified in subsection (3) of this section, all transfers scheduled to be made on April 1 of the fiscal year shall be proportionally reduced. The April 1 proportional reduction shall be calculated based on the size of the annual transfers as specified in subsection (2) of this section and shall be made to the extent necessary to cover the projected shortfall between total moneys available in the operational fund and the sum of the total operating appropriations for the programs specified in subsection (1) of this section, the total fiscal year's transfers specified in subsection (2) of this section, and the reserve requirement specified in subsection (3) of this section; except that any moneys remaining of the fifteen percent of the current fiscal year's transfers specified as part of the reserve set forth in subsection (3) of this section shall be used to offset any proportional reduction required by this subparagraph (III) in any fiscal year.
(IV) If proportional reductions are made to either the July 1 or January 4 installments, the April 1 installment may be increased to offset proportional reductions made earlier in the current fiscal year to the maximum extent allowable under the revenue estimate prepared by the staff of the legislative council in March of any fiscal year. The April 1 installment shall only be increased if the revenue estimate indicates that the amount of severance tax revenues credited to the operational fund as specified in section 39-29-109 (2)(b) is sufficient to fund the increased installments and still meet the reserve requirement specified in subsection (3) of this section.
(c) Repealed.
(d) Due to decreases in state severance tax revenue, the state treasurer shall not make any transfers specified in subsection (2) of this section for the fiscal year commencing on July 1, 2018, unless severance tax receipts are deposited in the severance tax operational fund during the fiscal year and there is sufficient money in the operational fund reserve so that no transfer is required under subsection (7)(c) of this section.
(5) In addition to the distributions specified in paragraph (a) of subsection (4) of this section, if there were any proportional reductions required in a fiscal year as specified in paragraph (b) of said subsection (4), after the reserve specified in subsection (3) of this section is made whole if any portion of the reserve was used as specified in paragraph (b) of subsection (4) of this section to offset any proportional reduction required by said paragraph (b) of subsection (4), the state treasurer shall make proportional distributions on August 20 of the following fiscal year to the programs specified in subsection (2) of this section if the revenues actually received in the operational fund for the previous fiscal year were sufficient for the state treasurer to more fully make the transfers set forth in subsection (2) of this section and to fully meet the reserve requirement specified in subsection (3) of this section.
(6) Repealed.
(7) The state treasurer shall transfer the following amounts from the general fund to the operational fund:
(a) On July 1, 2018, seventeen million thirty thousand nine hundred twenty-five dollars;
(b) On January 1, 2019, three million dollars; and
(c) On July 1, 2019, an amount equal to the portion of the operational fund reserve required by subsection (3)(a) of this section for the operating appropriations for the fiscal year commencing on July 1, 2019, for the programs specified in subsection (1) of this section or fourteen million two hundred fourteen thousand eight hundred fifty-four dollars, whichever amount is less.
