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1389CE51CC6B6C2F872584F9005289F8 Hearing Summary




PUBLIC
BILL SUMMARY For CONCERNING THE METHOD USED TO ESTIMATE NON-FEE REVENUE CREDITED TO A CASH FUND FOR THE CALCULATION OF UNCOMMITTED RESERVES IN THE CASH FUND AT THE END OF A FISCAL YEAR

JOINT COMMITTEE COMMITTEE ON STATUTORY REVISION COMMITTEE
Date Jan 24, 2020      
Location SCR 357



Concerning the method used to estimate non-fee revenue credited to a cash fund for the calculation of uncommitted reserves in the cash fund at the end of a fiscal year - Introduce LLS 20-0913


08:01:34 AM  

Nicole Myers, OLLS, testified before the committee, explaining that statute limits the amount of unlimited reserves that may remain in a cash fund at the end of a fiscal year. The definition of "unlimited reserves" excludes revenue credited to a cash fund that is estimated to be derived from non-fee sources. The statute further specifies that when calculating the estimated revenue from non-fee sources, the estimate is required to be an amount "equal to the portion of total revenues received from non-fee sources in the prior fiscal year." It's the phrase "prior fiscal year" that is causing confusion among executive branch agencies. Since the statute was enacted over 20 years ago, the Office of the State Controller has directed agencies to use "the closing fiscal year" when calculating this revenue; however, some agencies read the statute as "the year prior to the closing fiscal year." While OLLS interprets the statute to read as "the year prior to the closing fiscal year," but acknowledges that this has not been the prevailing interpretation. Staff also recognizes that the OSC's interpretation is more logical. The bill to incorporate OSC's change is meant to correct a defect in the law and to eliminate antiquated language and bring the statute into harmony with modern conditions.

08:03:56 AM  

Bob Jaros, the State Controller, also testified, explaining generally that statute dictates what is a fee and what is not. The fees in the non-fee sources are the fees set by the department. If, at the end of the prior fiscal year, a cash fund's reserve is above the limit, the department must reduce the fee or decrease expenditures.



08:12:34 AM
Motion Introduce LLS 20-0913
Moved Zenzinger
Seconded
Arndt
Brad Ramming, Esq.
Patrice Bernadette Collins, Esq.
McKean
Moreno
Tate Excused
Valdez D.
Van Winkle Excused
Zenzinger
Woodward
Final YES: 0   NO: 0   EXC: 2   ABS:  0   FINAL ACTION:  Pass Without Objection






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