Summary of Legislation

This bill creates the Public Safety Radio Communications Trust Fund for the acquisition and maintenance of public safety radio communications systems for use by the Departments of Public Safety, Transportation, Natural Resources, and Corrections. Moneys in the fund are subject to annual appropriation to the Department of Personnel for further distribution per statute.

The bill declares the state's intent to commit to the trust fund all or part of any surplus revenue remaining in the General Fund at the end of each fiscal year, except for:

• those revenues in excess of the state fiscal year spending limitation that must be refunded pursuant to Section 20 of Article X of the Colorado Constitution;
• those revenues in excess of the state fiscal year spending limitation that are retained for other purposes upon voter approval pursuant to Section 20 of Article X of the Colorado Constitution; and
• those revenues put into contingency funds or reserves.

The total amount of principal in the trust fund shall not exceed $50 million, except for the amounts of any donations, grants, bequests, or other donations. The bill authorizes the Department of Personnel to solicit and accept grants, donations, bequests, and other contributions to the trust fund from local, state, federal entities. All unexpended and unencumbered moneys, and all interest earnings of the trust fund shall remain in the trust fund.

The bill requires the Executive Director of the Department of Personnel to do the following:

• formulate recommendations for a public safety radio communications systems required by the FCC Public Safety National Plan;
• adopt recommended standards for the replacement of analog-based equipment with a digital-based radio equipment for use by the Department of Public Safety;
• adopt recommended standards and set a timetable for the replacement of existing radio telecommunications equipment with a system that satisfies the requirements of the FCC Public Safety National Plan;
• administer the Public Safety Communications Trust Fund;
• adopt rules for distributions of Trust Fund moneys;
• consider certain factors when determining distribution of moneys from the Trust Fund;
• develop bid specifications that identify all services, requirements, and costs consistent with existing state law; and
• keep an accurate account of all activities related to the fund and submit an annual report to the Governor, the Capital Development Committee, the Joint Budget Committee and the State Auditor.

The bill allows the State Auditor to investigate the activities of the fund and to prescribe accounting methods and procedures. The bill requires the Legislative Audit Committee to review audit reports and fund expenditures commencing on July 1, 1999, and every two years thereafter. The bill authorizes the Capital Development Committee to review the annual capital construction and maintenance requests from the Department of Personnel regarding the Public Safety Communications Trust Fund.

The bill transfers $50 million from the General Fund to the Capital Construction Fund for appropriation to the Public Safety Communications Trust Fund for appropriation to the Department of Personnel for FY 1998-99.

The bill will become effective upon the signature of the Governor.

State Revenue

The bill authorizes the Department of Personnel to solicit and accept grants, donations, bequests, and other contributions to the trust fund from local, state, and federal entities. The bill limits the total amount of principal in the trust fund to not exceed $50 million, except for the amounts of any donations, grants, bequests, or other donations. Any unexpended balance in the trust fund will earn investment earnings at an annual rate of 6.0 percent.

Section 24-36-114, C.R.S. authorizes the State Treasurer to assess a management fee of 15.0 percent of the monthly investment earnings of the trust fund. The amount of the management fee will be transferred monthly from the trust fund as revenue to the General Fund.

Moneys in the General Fund earn investment earnings at an annual rate of 6.0 percent. Therefore, the transfer of $50 million from the General Fund will reduce annual investment earnings to the General Fund by $3,000,000.

State Expenditures

This bill requires the Department of Personnel, Division of Colorado Information Technology Services (CITS), to develop and implement a two-way radio (digital trunked radio) system for voice communications for state and local governmental agencies. This system will replace the existing voice communications systems currently used by the Departments of Agriculture, Corrections, Higher Education, Law, Natural Resources, Public Safety, Transportation, and Revenue.

This bill creates the Public Safety Communications Trust Fund and transfers up to $50 million from the General Fund to the Capital Construction Fund for appropriation to the trust fund for appropriation to the Department of Personnel for FY 1998-99. The bill authorizes all moneys in the trust fund to be used for the following:

• the acquisition and maintenance of public safety communications systems;
• payment of maintenance expenses including the cost of leased or rented equipment, payments to local governmental entities for radio communication systems, and payments related to public safety radio systems.

Local Government Impact

The bill requires the Department of Personnel to consider the need for achieving functional interoperability among local government, state, and federal public safety radio communications systems. The bill requires the department to adopt rules regarding distribution of trust fund moneys to, and repayment of such moneys by, state and local governments. This fiscal note assumes local governments would be allowed to receive grants or loans as distributions from the trust fund to develop local government systems. This fiscal note cannot ascertain whether loans, if any, to local governments would be subject to interest costs.

Spending Authority

This fiscal note would imply the Department of Personnel would require a Public Safety Communications Trust Fund spending authority of $50,000,000 for FY 1998-99 to implement the provisions of this bill.

Departments Contacted