In re Interrogatories Submitted by the General Assembly on House Bill 04-1098

Summary

The Colorado Supreme Court considered two interrogatories concerning the constitutionality of House Bill 04-1098, which defined and excluded certain federal funds from the category of custodial moneys. The court declined to answer whether the bill's general definition of custodial moneys was constitutionally adequate because the status of federal grants must be determined case by case. It answered the second interrogatory affirmatively, holding that federal funds provided for general or essential state government services, including funds under the Jobs and Growth Tax Relief Reconciliation Act of 2003, are not custodial funds and may constitutionally be excluded from that definition.

Holdings

1. Federal funds granted to Colorado for general or essential state government services under circumstances like those of the Jobs Act are not custodial funds; they are general-fund moneys subject to the General Assembly's legislative appropriation process. The General Assembly may constitutionally exclude such funds from the definition of custodial moneys.
2. The court declined to answer the first interrogatory. Although the statutory definition codifies factors relevant to custodial-fund analysis, it is not an exhaustive constitutional test; the status of each federal grant must be determined case by case in light of all relevant circumstances.

Questions Presented

1. Whether House Bill 04-1098's definition of custodial moneys comports with Colorado's separation-of-powers and appropriations provisions.
2. Whether the General Assembly may constitutionally exclude federal funds granted for general or essential state government services, including Jobs Act funds, from the definition of custodial moneys.

Disposition

other