WSPC02829

• File Number: 8200.700
• Description: Colorado River-Colorado River Basin-Colorado River Basin General Publications
• State: CO
• Date: 4/21/1977
• Author: Felix Sparks
• Title: Colorado River Documents and Major Events-Sparks Synopsis-July 1976-Senate Bill 35
• Water Supply Pro - Doc Type: Board Memo

'.

,.'

EXPLANATION OF PROPOSED AMENDMENTS TO S.B. 35

In 1920, Congress enacted a law to promote the mining of
coal, phospate, oil, oil shale, gas and sodium on the public domain,
commonly referred to as the Mineral Leasing Act of 1920 (41 Stat. 437).
Pursuant to Section 35 of the act, 37 1/2 percent of all monies
received from sales, bonuses, royalties and rentals of public land
under the provisions of the act were to be paid to each state within
the boundaries of which the leased lands or mineral deposits were
located. The act specifically provides that the funds received by the
states shall be used only for the construction and maintenance of
public roads and for the support of public schools or ather public
educational institutions, as the legislatures of the respective states
may direct.

In response to the original Federal Mineral Leasing Act, the
state of Colorado has enacted a statute which provides for the appor-
tionment of funds to the state public school fund, and to the counties
for the support of public schools and for the construction and main-
tenance of public roads (34-63-102, CRS 1973), with an amendment
relating to oil shale funds (34-63-104).

By Section 317 of the Public Lands Management and pOlicy Act
of 1976 (P.L. 94-579), Congress amended the 1920 Mineral Leasing Act.
This amendment increased the states share of mineral leasing receipts
from 37 1/2 to 50 percent and removed the restriction that such funds
could be used only for roads and schools. The amended act now provides
that the monies received by the state under the mineral leasing act are
(and at this point I now quote from the exact words of the amended act)
"to be used by such state and its subdivisions, as the legislature of
the state may direct giving priority to those subdivisions of the State
socially or economically impacted by development of minerals leased
under this Act, for (i) planning, (ii) construction and maintenance of
public facilities, and (iii) provision of public service. . ."

Since existing Colorado law is now inconsistent with the
revised federal law, a principal purpose of Senate Bill No. 35 is to
bring state law into conformity with the federal law under which the
mineral leasing funds are distributed. This is accomplished by Sectians
1 and 2 of the bill. These two sections contain an accurate paraphrasing
of the federal law, with additi9nal language to actually. effect the
distribution of funds.

The actual distribution is affected through subsections (2),
(3), (4) and (5) of the proposed amendment to Section 34-63-102, Colorado
Revised Statutes, as follows:

2448 \