Office of Sen.

Mike Johnston
Colorado General Assembly | 200 E. Colfax Avenue | Denver, CO 80203 | 303.866.4864

FACT SHEET MEMORANDUM

SB 12-040 Higher Education Facilities Eligible for Controlled Maintenance Sen. Bacon & Rep. Vigil Staff Name: Antonio Mendez What the Bill Does: Controlled maintenance is defined in statute1 as corrective repairs or replacement of existing stateowned, general-funded buildings and other physical facilities, including but not limited to utilities and site improvements, which are suitable for retention and use for at least five years.2 The definition also includes replacement and repair of the equipment necessary for the operation of such facilities, when such work is not funded in an agency's operating budget to be accomplished by the agency's physical plant staff. Capital renewal projects are hybrids between a capital construction request and controlled maintenance.3 This bill seeks to amend the current statute regarding maintenance funding for higher education facilities by creating two distinct classes of building, auxiliary and academic. The bill defines an academic facility as any building central to the role of the institution and gives examples such as classrooms, libraries, and administrative buildings. The bill defines auxiliary facility as a building or facility funded from an auxiliary source and gives the examples of parking, housing and dining facilities. This bill would give auxiliary facilities that have been repurposed as academic facilities after January 1st, 2010, the ability to receive state-controlled maintenance funding, as well as academic buildings which did not previously qualify. The January 1st, 2010, date is the result of changes made in 2009 to the review and approval process of capital construction projects. Colorado Context: For fiscal year 2012-13 there have been 16 higher education project requests and one higher education capital renewal request totaling $252 million dollars. Although financially, this bill will not affect Colorado until 2025-26, the bill will expand the ability of institutions of higher education to request funds for state-controlled maintenance. Bill Provisions: States that beginning January 1, 2010, all higher education academic facilities acquired or constructed from cash funds held by the institution and operated and maintained from such cash

1
2

C.R.S. 24-30-1301(2) http://www.colorado.gov/cs/Satellite/DPA-EO/DEO/1251570153256 http://fm.colorado.edu/planning/Glossary/CapitalRenewal.html

DRAFT 1/29/2012 5:32 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.

funds or from state moneys that did not previously qualify for state-controlled maintenance funding will qualify for state-controlled maintenance funding. States that beginning January 1, 2010, any higher education auxiliary facilities, acquired or constructed and operated and maintained solely from cash funds held by the institution, which is repurposed for use as an academic facility qualifies for state-controlled maintenance funding, subject to funding approval by the capital development committee and the fifteen-year rule4. Charges the Office of the State Architect, along with Department of Higher Education and the Office of State Planning and Budgeting, to develop guidelines in assisting to distinguish between Academic and Auxiliary classifications.

Fiscal Impact: There is no fiscal impact associated with this legislation until after 2025-2026. Higher Education Facilities that this bill affects only qualify 15 years after January 1, 2010. The fiscal note states that, it is unlikely that requests for controlled maintenance of these facilities will increase the overall amount recommended for funding in future years.5

Pursuant to HB 12-1011s passage, C.R.S. 24-30-1303.9 will contain a fifteen-year rule for qualification of state controlled maintenance funds. This rule has been the state practice since 2002-03. 5 http://www.leg.state.co.us/clics/clics2012a/csl.nsf/fsbillcont3/DE6E62B1C1A6F52887257981007E0669?Open&file=SB040_00. pdf.

DRAFT 1/29/2012 5:32 PM

For a complete list of fact sheets, visit www.mikejohnston.org/in-the-legislature.