BOARD02079

• Board Meeting Date: 11/22/1999
• Description: CF Section - Special Purpose Accounts within CWCB Construction - STTF Statewide Water Planning Account
• Board Meetings - Doc Type: Memo

39-29-109 - Severance tax trust fund - cl-eated - administration - use of
Illonevs. (I) (a) There is hereby created in the office of the state treasurer the severance tax
trust ~d. The fund is to be perpetual and held in trust as a replacement for depleted natural
resources and for the development and conservation of the state's water resources pursuant to
sections 37-60-106 (I) (j) and (1) (I), 37-60-119, and 37-60-122, C.R.S., and for the use in
funding programs that promote and encourage sound natural resource planning, management,
and development related to minerals, energy, geology, and water. State severance tax receipts
shall be credited to the severance tax trust fund as provided in section 39-29-108. All income
derived from the deposit and investment of the moneys in the severance tax trust fund shall be
credited to the severance tax trust fund. At the end of any fiscal year, all unexpended and
unencumbered moneys in the fund shall remain therein and shall not be credited or transferred to
the general fund or any other fund. All moneys in the fund shall be subject to appropriation by
the general assembly for the following purposes:

(I) The perpetual base account. The moneys in the fund as of July 1,1995, and one-half of the
severance tax receipts credited to the severance tax trust fund for fiscal years commencing on
and after July 1,1995, shall be credited to the perpetual base account of the severance tax trust
fund and used for state water projects pursuant to sections 37-60-119 and 37-60-122, C.R.S. The
authorization and contract for each such project shall require repayment of principal and interest
to the severance tax trust fund and moneys so repaid shall be credited to the perpetual base
account of the severance tax trust fund.

(II) The operational account. One-half of the severance tax receipts credited to the severance tax
trust fund for tax years commencing on and after July I, 1995, shall be credited to the
operational account of the severance tax trust fund and used to fund programs established within
the Colorado oil and gas conservation commission, the Colorado geological survey, the division
of minerals and geology, and the Colorado water conservation board that promote and encourage
sound natural resource planning, management, and development related to minerals, energy,
geology, and water, as set forth in paragraph (c) of this subsection (1).

(b) (Deleted by amendment, 1. 96, p. 997, S 1, effective May 23,1996.)

(c) (I) 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 operational account of the severance tax trust fund. The state minerals, energy, and geology
policy advisory board established pursuant to section 34-20-104, C.R.S., shall review the
executive director's recommendation before submittal. The general assembly may appropriate
moneys from the total moneys available in the operational account of the severance tax trust fund
to fund recommended programs as follows:

(A) For programs or projects within the Colorado oil and gas conservation commission, up to
forty-five percent of the moneys in the operational account;

(B) For programs within the Colorado geological survey, up to twenty percent of the moneys in
the operational account;

(C) For programs within the division of minerals and geology, up to thirty percent of the moneys
in the operational account; and

Flood Control and Floodplain Management. Project Planning and Construction. InstJeam Flows and Water Rights Investigations.
Interstate Streams Investigations. Office or Conservation Planning. Personnel and Budget

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