Colorado Proposition 117, Require Voter Approval of Certain New Enterprises Exempt from TABOR Initiative (2020)

From Ballotpedia
Jump to: navigation, search
Colorado Proposition 117
Flag of Colorado.png
Election date
November 3, 2020
Topic
Taxes
Status
Approveda Approved
Type
State statute
Origin
Citizens


Colorado Proposition 117, the Require Voter Approval of Certain New Enterprises Exempt from TABOR Initiative, (#295) was on the ballot in Colorado as an initiated state statute on November 3, 2020. It was approved.

A "yes" vote supported requiring statewide voter approval of new state enterprises if the enterprise's projected or actual revenue from fees and surcharges is greater than $100 million within its first five years.

A "no" vote opposed requiring statewide voter approval of new state enterprises.


Sponsors referred to the measure as the Vote on Fees initiative.

Election results

Colorado Proposition 117

Result Votes Percentage

Approved Yes

1,573,114 52.55%
No 1,420,445 47.45%
Results are officially certified.
Source


Overview

What did Proposition 117 do?

See also: Ballot language and full text

The initiative was designed to require statewide voter approval of new state enterprises if the enterprise's projected or actual revenue from fees and surcharges is greater than $100 million within its first five years. Under the measure, revenue collected for enterprises that were created at the same time or that serve substantially the same purpose are aggregated when calculating the application of this amendment.[1]

What are enterprises?

See also: State enterprises

Enterprises were established through the Colorado Taxpayer's Bill of Rights (TABOR) amendment of 1992. Enterprises are government-owned businesses that provide goods or services for a fee or surcharge that is paid for by the individuals or entities that are purchasing the goods or services. This is in contrast to government agencies or programs that provide goods or services that are paid for by tax revenue. Enterprise revenue does not count toward the TABOR limit. TABOR limits the amount of money the state of Colorado can take in and spend. Any money collected above the TABOR limit is refunded to taxpayers unless the voters allow the state to spend it.[2][3]

Examples of Colorado enterprises that have had enterprise status since the passage of TABOR include the state lottery, state nursing homes, Colorado Correctional Industries, and College Assist (including the student loan program and College Access Network). Enterprises that gained enterprise status after the passage of TABOR include Colorado Parks and Wildlife (the Division of Wildlife), higher education institutions (universities and colleges), statewide tolling authority, statewide bridge enterprise, and more.[3]

Who was behind the campaigns surrounding Proposition 117?

See also: Support, Opposition, and Campaign finance


Colorado Rising State Action, a nonprofit group that described its mission as "advancing conservative principles in Colorado and holding liberals accountable," sponsored the initiative. Vote on Fees led the campaign in support of the initiative. Together, Voter Approval of Fees and Americans for Prosperity Colorado Issue Committee raised $2.17 million. The top two donors were Unite for Colorado and Americans for Prosperity. Americans for Prosperity Colorado Issue Committee also registered to support Proposition 116.[4]

Earthworks Action Fund, Protect Colorado's Recovery, and Fair Tax Colorado registered to oppose the measure. The committees reported contributions of $3.26 million. Protect Colorado's Recovery and Fair Tax Colorado also registered to oppose Proposition 116.[5]

Text of measure

Ballot title

The ballot title for Proposition 117 was as follows:

Shall there be a change to the Colorado Revised Statutes requiring statewide voter approval at the next even-year election of any newly created or qualified state enterprise that is exempt from the Taxpayer’s Bill of Rights, Article X, Section 20 of the Colorado constitution, if the projected or actual combined revenue from fees and surcharges of the enterprise, and all other enterprises created within the last five years that serve primarily the same purpose, is greater than $100 million within the first five fiscal years of the creation or qualification of the new enterprise?[6]

Summary and analysis

The summary and analysis provided for this measure in the 2020 State Ballot Information Booklet are available on page 50 at this link.

Fiscal impact statement

The fiscal impact statement was as follows:[7]

State and local government spending. Proposition 117 increases workload for state

agencies to estimate revenue that would be collected by proposed enterprises, since these estimates will be necessary in order to determine whether an election is required. County clerks may have additional workload or costs to the extent the measure results in more measures placed on the ballot. Indirect impacts that may result from the creation of fewer future enterprises are not estimated.[6]

Full text

The full text is as below. The underlined text was added to a new section within Article 77 of the Colorado Revised Statutes.[1]

24-77-108. Creation of a new fee-based Enterprise. In order to provide transparency and oversight to government mandated fees the People of the State of Colorado find and declare that:

(1) After January 1, 2021, any state enterprise qualifid or created, as defined under Colo.Const. Art. X section 20(2)(d) with projected or actual revenue from fees and surcharges of over $100,000,000 total in its first five fiscal years must be approved at a statewide general election. Ballot titles for enterprises shall begin, "SHALL AN ENTERPRISE BE CREATED TO COLLECT REVENUE TOTALING (full dollar collection for first five fiscal years) IN ITS FIRST FIVE YEARS...?"
(2) Revenue collected for enterprises created simultaneously or within the five preceding years serving primarily the same purpose shall be aggregated in calculating the applicability of this section.[6]

Readability score

See also: Ballot measure readability scores, 2020
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Colorado Title Board wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 41, and the FRE is -34. The word count for the ballot title is 93, and the estimated reading time is 24 seconds.


Support

Voteonfees.jpg

Vote on Fees led the campaign in support of the initiative. Colorado Rising State Action sponsored the initiative.[8]

Supporters

Political Parties

Organizations

  • Americans for Tax Reform
  • Colorado Rising State Action


Arguments

  • Vote on Fees: "Colorado’s state legislature uses the word 'FEE' to grow state programs and spending without having to ask Coloradans for the permission to raise taxes required under our Taxpayer’s Bill of Rights. Massive revenue increases like FASTER (car registration) fees, are taxes coming out of our pockets to pay for state programs, and should go through the same voter approval process as all tax increases. It’s not complicated — just ask the people. Two-thirds of state revenue now falls outside of TABOR. We need to do a better job of managing our state’s more than $30 billion budget. The status quo of continuing to grow and create new state programs and finance them off of 'fees' needs to end. "
  • Michael Fields, executive director of Colorado Rising State Action: "For too long the legislature has been going around the Taxpayer’s Bill of Rights (TABOR). [Senate Bill 20-215] was a perfect example of them trying to go around TABOR to raise revenue by calling them fees. Clearly, this is the move they are going to make, raising taxes by calling them fees."
  • Colorado Rising State Action: 'It’s time to put an end to state lawmaker practice of creating a new enterprise and charging exorbitant fees every time they want more revenue. The fact is that Coloradans love having a voice on tax increases through our Taxpayer’s Bill of Rights, and calling something a “fee” instead of a “tax” is just a way to get around the asking voters. This needs to end. Vote on Fees requires all new state enterprises (funded by fees and surcharges) with revenue of $100,000,000 or more in the first 5 years to be placed on the ballot. It strengthens TABOR and gives Coloradans more control over growing the state budget."


Official arguments

  • Official Blue Book argument: "Proposition 117 strengthens the role of citizens in determining the proper size and scope of government. The state government uses enterprises to grow its budget without voter approval. Coloradans approved TABOR to require voter consent for tax increases; this measure extends this principle to fees collected by large new enterprises. Fees, like taxes, are paid by everyday Coloradans and businesses, so voters should have a say in their creation."


Opposition

Opponents

Earthworks Action Fund and Protect Colorado's Recovery registered to oppose the measure.[5]

Arguments

Official arguments

  • Official Blue Book argument: "Enterprises were specifically exempted from the spending restrictions of TABOR and work as intended; they shift the responsibility for paying for a government-provided service from all taxpayers to the people who use and benefit from the service. If fewer enterprises are created as a result of Proposition 117, the state may be forced to choose between using tax revenue to pay for critical services that would otherwise be funded through user fees, or not providing these services."


Campaign finance

See also: Campaign finance requirements for Colorado ballot measures
The campaign finance information on this page reflects the most recently scheduled reports processed by Ballotpedia, which covered through November 30, 2020.


Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Support $427,827.00 $1,747,199.19 $2,175,026.19 $427,627.99 $2,174,827.18
Oppose $2,924,071.38 $334,106.02 $3,258,177.40 $2,924,071.37 $3,258,177.39


Ballotpedia identified two committees registered to support the initiative: Voter Approval of Fees and Americans for Prosperity Colorado Issue Committee. Together, the committees reported $2.17 million in contributions and $2.17 million in expenditures. Americans for Prosperity Colorado Issue Committee also registered to support Proposition 116.[5]

Earthworks Action Fund, Protect Colorado's Recovery, and Fair Tax Colorado registered to oppose the measure. The committees reported contributions of $3.26 million and expenditures of $3.36 million. Protect Colorado's Recovery and Fair Tax Colorado also registered to oppose Proposition 116.[5]

Support

The following table includes contribution and expenditure totals for the committees in support of the initiative.[5]

Committees in support of Proposition 117
Committee Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Voter Approval of Fees $427,827.00 $960,279.92 $1,388,106.92 $427,627.99 $1,387,907.91
Americans for Prosperity Colorado Issue Committee $0.00 $786,919.27 $786,919.27 $0.00 $786,919.27
Total $427,827.00 $1,747,199.19 $2,175,026.19 $427,627.99 $2,174,827.18

Donors

The following were the top donors to the support committees.[5]

Donor Cash Contributions In-Kind Contributions Total Contributions
Americans for Prosperity $0.00 $786,919.27 $786,919.27
Unite for Colorado $0.00 $626,822.05 $626,822.05
Better Jobs Coalition $250,000.00 $0.00 $250,000.00
Colorado Rising State Action $0.00 $178,351.93 $178,351.93
Western Citizens Protecting Our Constitution $100,000.00 $0.00 $100,000.00

Opposition

The following table includes contribution and expenditure totals for the committees in opposition to the initiative.[5]

Committees in opposition to Proposition 117
Committee Cash Contributions In-Kind Contributions Total Contributions Cash Expenditures Total Expenditures
Protect Colorado's Recovery $2,066,002.35 $128,145.26 $2,194,147.61 $2,066,002.35 $2,194,147.61
Fair Tax Colorado $793,568.03 $205,960.76 $999,528.79 $793,568.03 $999,528.79
Earthworks Action Fund $64,501.00 $0.00 $64,501.00 $64,500.99 $64,500.99
Total $2,924,071.38 $334,106.02 $3,258,177.40 $2,924,071.37 $3,258,177.39

Donors

The following were the top donors to the opposition committees.[5]

Donor Cash Contributions In-Kind Contributions Total Contributions
North Fund $750,000.00 $0.00 $750,000.00
Strategic Victory Fund $500,000.00 $0.00 $500,000.00
Colorado Fund for Children and Public Education $200,000.00 $0.00 $200,000.00
Sixteen Thirty Fund $200,000.00 $0.00 $200,000.00
Merle Chambers $106,000.00 $0.00 $106,000.00
Conservation Colorado $100,000.00 $740.91 $100,740.91

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Media editorials

See also: 2020 ballot measure media endorsements

Support

  • Colorado Springs Gazette Editorial Board: "... many [enterprises] can and do provide vital services. They also encourage more functions of government to support themselves through their activities, which encourages efficiency. Yet, if left unchecked, the fees that fund them can become a source of easy money for elected leaders, a sort of back-door budget that never has to pass muster with a public that may or may not support a given spending stream. And the money isn’t subject to the taxing and spending limits voters approved in the first place."
  • Durango Herald Editorial Board: "Proposition 117 ... will require voters to approve any new state enterprise that is expected to be supported by more than $100 million in revenue from fees over five years. Colorado is a leader in involving voters in setting taxation levels. That can apply to new initiatives supported by fees. Yes on Proposition 117."

Opposition

  • Colorado Springs Indy Editorial Board: "If this measure passes, formation of all new statewide enterprise funds expected to exceed a profit average of just $20 million a year during their first five years of operation must be approved by voters in an even-year election. This would mean that in the future, self-supporting enterprises such as the Colorado Lottery, Colorado Parks & Wildlife’s hunting and fishing permits and user fees, and the Petroleum Storage Tank Fund, would have needed to go on the ballot in an even-number year before the state could launch them, greatly slowing the process and increasing the cost and difficulty of establishing future enterprises. ... Vote No on Prop 117."
  • Journal-Advocate Editorial Board and Fort Morgan Times Editorial Board: "Enterprises are intended to be self-sustaining funds that operate on user-generated fees. While it’s possible that If fewer enterprises are created as a result of this proposition, the state may be forced to choose between using tax revenue to pay for critical services that would otherwise be funded through user fees or, not providing these services."
  • Steamboat Pilot & Today Editorial Board: "We recommend a 'no' vote. We see this measure as a major increase of voter control over Colorado fiscal policy. In turn, we believe this initiative would unduly restrict the Legislature’s ability to effectively operate government."
  • Boulder Weekly Editorial Board: "Supporters argue that voters want more control over the state’s fiscal policy, but it’s clear that, if passed, this will further restrict the state budget even when we’re already seeing deep cuts due to the coronavirus pandemic. Plus, this measure was put on the ballot with more than $1 million support from Unite for Colorado, an issues committee with deep ties to the Koch brothers’ Americans for Prosperity. No thanks."


Background

State enterprises

Enterprises are government-owned businesses that provide goods or services for a fee paid for by the individuals or entities that are purchasing the goods or services. This is in contrast to government agencies or programs that provide goods or services that are paid for by tax revenue. Enterprises may receive a maximum of 10% of their annual revenue from state and local government sources but are otherwise financially independent from the state government and any local governments. Enterprises are required to have authority to issue bonds.[3]

Enterprises were created by the Colorado Taxpayer's Bill of Rights (TABOR) amendment of 1992. State enterprises that have existed since enterprises were originally established in 1992 include the state lottery, state nursing homes, Colorado Correctional Industries (a program for pisoners to manufacture goods for sale), and College Assist (a program that helps with higher education costs).[3]

Recently created enterprises

Senate Bill 20-215: Health Insurance Affordability Enterprise

Governor Jared Polis (D) signed Senate Bill 20-215 into law on June 30, 2020. In the state legislature, all but one Democrat supported the bill and all but two Republicans voted against the bill. The bill was created the Health Insurance Affordability Enterprise that was designed to assess and collect a fee from certain health insurers (insurer fee) beginning in 2021 in exchange for providing certain services such as increasing health plan enrollment. Fee revenue was designed to "fund measures to reduce consumer costs for individual health coverage plans." The fee was set to be 1.15% of premiums collected for nonprofit health insurance carriers and 2.1% of premiums collected for-profit carriers. The enterprise was expected to receive around $129.7 million in revenue in the first three fiscal years.[9][10]

A list of state enterprises is available here.

State enterprise revenue

From 1993 to 2018, 22 state government entities maintained enterprise status for at least one fiscal year. In the fiscal year 1993-94, the first year TABOR was in effect, enterprise revenue was $724.3 million. In 2017-18, state enterprises received $17.9 billion in revenue. In total, from 1993 to 2018, Colorado enterprises have received $150.17 billion in revenue. The following chart shows enterprise revenue from 1993 to 2018.[3]

Colorado Taxpayer's Bill of Rights (TABOR)

Enterprises were created by the Colorado Taxpayer's Bill of Rights (TABOR) amendment of 1992. Enterprise revenue is not counted toward the TABOR limit.[3]

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase for some state revenue to inflation plus the percentage change in state population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

To read about the Taxpayer's Bill of Rights, click here.

Tax policies on the ballot in 2020

See also: Taxes on the ballot

In 2020, voters in 14 states voted on 21 ballot measures addressing tax-related policies. Ten of the measures addressed taxes on properties, three were related to income tax rates, two addressed tobacco taxes, one addressed business-related taxes, one addressed sales tax rates, one addressed fees and surcharges, and one was related to tax-increment financing (TIF).

Click Show to read details about the tax-related measures on statewide ballots in 2020.

Path to the ballot

See also: Signature requirements for ballot measures in Colorado and Laws governing the initiative process in Colorado

The state process

In Colorado, the number of signatures required to qualify an initiated state statute for the ballot is equal to 5 percent of the total number of votes cast for the office of Colorado secretary of state in the preceding general election. State law provides that petitioners have six months to collect signatures after the ballot language and title are finalized. State statutes require a completed signature petition to be filed three months and three weeks before the election at which the measure would appear on the ballot. The Constitution, however, states that the petition must be filed three months before the election at which the measure would appear. The secretary of state generally lists a date that is three months before the election as the filing deadline.

The requirements to get an initiated state statute certified for the 2020 ballot:

The secretary of state is responsible for signature verification. Verification is conducted through a review of petitions regarding correct form and then a 5 percent random sampling verification. If the sampling projects between 90 percent and 110 percent of required valid signatures, a full check of all signatures is required. If the sampling projects more than 110 percent of the required signatures, the initiative is certified. If less than 90 percent, the initiative fails.

Details about this initiative

  • Michael Fields and Lindsey Sangers filed versions (#273-275, 294-296) of the initiative. Ballot titles were issued for versions 273-275 on March 4, 2020. Ballot titles were issued for versions 294-296 on April 1, 2020. Versions 273-275 were pending state supreme court action as of April 17, 2020.[2]
  • Version #295 of the initiative was approved for signature gathering on May 8, 2020.[2]
  • Proponents reported submitting more than 196,000 signatures on July 31, 2020.[31]
  • The measure was certified for the ballot on August 24, 2020. Of the 196,090 signatures submitted by proponents, 138,852 were projected to be valid based on a random sample.[32]
  • Changes to Colorado ballot initiative process due to COVID-19: On May 17, 2020, Colorado Governor Jared Polis (D) signed Executive Order D 2020 065, which authorized the Colorado Secretary of State to establish temporary rules allowing for ballot initiative petitions to be signed through mail and email. The order also temporarily suspended the state law requiring signatures to be submitted six months after ballot language finalization. Under the order, signatures for 2020 Colorado initiatives were due by August 3, 2020.[33] Legal challenges were filed against the order, specifically challenging the mail and email signature gathering provisions. Those provisions of the order were ultimately struck down by the Colorado Supreme Court on July 1, 2020, meaning proponents needed to collect signatures in person.[34][35] [36][37][38]


Cost of signature collection:
Sponsors of the measure hired an unknown petition gathering company to collect signatures for the petition to qualify this measure for the ballot. A total of $823,635.48 was spent to collect the 124,632 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $6.60.

How to cast a vote

See also: Voting in Colorado

Click "Show" to learn more about voter registration, identification requirements, and poll times in Colorado.

See also

External links

Support

Opposition

Submit links to [email protected].

Footnotes

  1. 1.0 1.1 Colorado Secretary of State, "Initiative 295 full text," accessed September 1, 2020
  2. 2.0 2.1 2.2 Colorado Secretary of State, "2019-2020 Initiative Filings, Agendas & Results," accessed February 10, 2020
  3. 3.0 3.1 3.2 3.3 3.4 3.5 Colorado State Legislature, "May 2019 Memo regarding TABOR enterprises," accessed August 6, 2020
  4. Vote on Fees, "Home page," accessed August 31, 2020
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 Colorado Secretary of State TRACER, "Campaign finance committee search," accessed August 4, 2020
  6. 6.0 6.1 6.2 6.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  7. Colorado State Legislature, "2020 Blue Book," accessed September 21, 2020
  8. Vote on Fees, "Home page," accessed August 31, 2020
  9. Colorado State Legislature, "Senate Bill 20-215," accessed September 17, 2020
  10. Complete Colorado, "Signatures to lower state income tax, seek voter approval for fees turned in to Secretary of State’s office," accessed September 17, 2020
  11. Arizona Secretary of State, "Initiative 31-2020," February 14, 2020
  12. Colorado Secretary of State, "2019-2020 Initiative Filings, Agendas & Results," accessed April 17, 2020
  13. Illinois State Legislature, "Senate Joint Resolution Constitutional Amendment 1," accessed May 2, 2019
  14. Illinois State Board of Elections,"Committee Search," accessed May 28, 2019
  15. Alaska Division of Elections, "Alaska's Fair Share Act," accessed January 13, 2020
  16. Anchorage Daily News, "Group says it has enough signatures to put Alaska oil tax initiative on ballot," January 14, 2020
  17. APOC, "Online Reports," accessed January 7, 2020
  18. Nebraska Secretary of State, "Initiative Petition text," accessed August 22, 2019
  19. California Attorney General, "Initiative 19-0008," September 17, 2019
  20. California the Legislative Analyst's Office, "A.G. File No. 2019-0008," February 5, 2018
  21. California State Legislature, "Assembly Concurrent Resolution 11," accessed May 8, 2019
  22. Colorado General Assembly, "SCR 20-001," accessed June 10, 2020
  23. Arkansas State Legislature, "House Joint Resolution 1018," accessed March 7, 2019
  24. UA Little Rock Public Radio, "Arkansas Governor Signs $95 Million Highway Funding Bill Into Law," accessed March 25, 2019
  25. Arkansas Ethics Commission, "Filings," accessed August 18, 2020
  26. Colorado State Legislature, "House Bill 20-1427," accessed June 15, 2020
  27. Oregon State Legislature, "HB 2270," accessed June 25, 2019
  28. Colorado Secretary of State, "2019-2020 Initiative Filings, Agendas & Results," accessed February 10, 2020
  29. Nebraska State Legislature, "LR14CA," accessed April 5, 2019
  30. On May 17, 2020, Colorado Governor Jared Polis (D) signed Executive Order D 2020 065, which temporarily suspended the state law requiring signatures to be submitted six months after ballot language finalization. Under the order, signatures for 2020 Colorado initiatives were due by August 3, 2020.
  31. The Center Square, "Signatures turned in for ballot initiatives on voter approval of fees, income tax cut measures," accessed July 31, 2020
  32. Colorado Secretary of State, "Proposed Initiative #295 (“Voter Approval Requirement for Creation of Certain Fee-Based Enterprises”) Qualifies For 2020 General Election Ballot," accessed August 24, 2020
  33. Colorado Governor Jared Polis, "Gov. Polis Signs Executive Orders to Protect Access to Ballot & Ensure Elections Can Proceed Safely," accessed May 18, 2020
  34. Colorado Concern, "Lawsuit against Polis' executive order," accessed May 19, 2020
  35. Denver Post, "Colorado group seeking to ban late-term abortions sues over governor’s order," accessed May 22, 2020
  36. Reporter Herald', "Court upholds Colorado Governor Polis’ power to change ballot initiative rules," accessed May 29, 2020
  37. Colorado Politics, "Colorado Supreme Court to hear challenge to Polis order on petition-gathering," accessed June 12, 2020
  38. Fort Morgan Times, "Colorado Supreme Court rules against Polis on signatures for ballot measures," accessed July 1, 2020
  39. Colorado Secretary of State, "Mail-in Ballots FAQs," accessed July 16, 2024
  40. Colorado Revised Statutes, "1-7-101," accessed July 16, 2024
  41. 41.0 41.1 Colorado Secretary of State, "Voter Registration FAQs," accessed July 16, 2024
  42. Colorado Secretary of State, "Go Vote Colorado," accessed July 15, 2024
  43. Colorado Secretary of State, "Acceptable Forms of Identification," accessed July 17, 2024