(1) (a) Beginning with the state fiscal year commencing July 1, 2005, and for each state fiscal year thereafter, the general assembly shall make an annual appropriation, in trust for eligible undergraduate students, to the college opportunity fund, which is hereby established as a trust fund account with the Colorado student loan program. Except as provided in paragraph (c) of this subsection (1), moneys appropriated to the college opportunity fund are for the sole purpose of disbursement on behalf of eligible undergraduate students in accordance with this part 2 and are not for the general operation or any other function of the Colorado student loan program. Any unexpended and unencumbered moneys remaining in the college opportunity fund at the end of a fiscal year are the property of the trust fund and shall remain in the fund and shall not be credited or transferred to the general fund or any other fund.

(b)

(I) The Colorado student loan program shall administer and disburse the funds in the college opportunity fund on behalf of eligible undergraduate students as provided in this part 2. Each institution of higher education may be required to pay an implementation fee and an ongoing disbursement fee, the amounts of which shall be determined by the Colorado student loan program but shall not exceed the actual cost of the implementation and ongoing disbursement; except that the fees may be required only if the department or the federal government takes action, including adopting rules, regulatory changes, or programmatic changes, that negatively affects the financial condition of the Colorado student loan program.

(II) Repealed.

(c) If there are moneys remaining in the college opportunity fund or if there are insufficient moneys in the college opportunity fund after the final census date of the last academic term of each state fiscal year, as determined in accordance with this section, the department may transfer up to ten percent of the annual total governing board appropriation for the institution between the cash spending authority for the governing board to expend stipends received on behalf of eligible undergraduate students and a fee-for-service contract for the governing board entered into pursuant to sections 23-1-109.7, 23-18-303, and 23-18-304 (1).

(2) (a) (I) For the state fiscal year commencing July 1, 2005, and for each state fiscal year thereafter, the commission, in consultation with the governing boards and participating private institutions, shall annually estimate the number of undergraduate full-time equivalent students who are eligible for stipends under this part 2 at each state institution of higher education and each participating private institution of higher education. The commission shall annually report the numbers by February 15 to the governor and to the joint budget committee of the general assembly for inclusion in the annual general appropriations act.

(II) The general assembly reviewed the reporting requirements to the general assembly in subparagraph (I) of this paragraph (a) during the 2008 regular session and continued the requirements.

(b)

(I) For the state fiscal year commencing July 1, 2005, and for state fiscal years thereafter, for an eligible undergraduate student attending a state institution of higher education, the specified amount of the stipend per credit hour is an amount set annually by the general assembly, which in no case shall exceed the student's total in-state tuition. The value of the per credit hour stipend is the same for each eligible undergraduate student, regardless of the state institution of higher education that the student attends. The student is responsible for paying the student's share of total in-state tuition, if any.

(II) If the student is enrolled in a pathways in technology early college high school pursuant to article 35.3 of title 22, the p-tech school is responsible for paying the student's share of total in-state tuition, if any.

(III) If the student is enrolled in a grow your own educator program pursuant to section 22-60.5-208.5, and the school district or charter school receives a grant pursuant to section 22-60.5-208.5 (6), the school district or charter school that employs the student as a teacher of record as described in section 22-60.5-201 (1)(a.5) during the teaching portion of the grow your own educator program is responsible for paying the student's share of total in-state tuition, not to exceed thirty-six credit hours, less any amount received in federal and state financial aid.

(c) Notwithstanding section 24-1-136 (11)(a)(I), the commission shall forward to the general assembly and governor, by November 1 of each year, a list of institutions eligible to receive stipends on behalf of eligible undergraduate students under the program. The commission shall annually request that the general assembly adjust the amount appropriated to the Colorado student loan program for the stipends, which amount may reflect inflation and enrollment growth in the state institutions of higher education.

(d) Beginning with the state fiscal year commencing July 1, 2006, the commission, in consultation with the governing boards and any participating private institutions of higher education, shall review annually the amount of the stipend per credit hour established pursuant to subsection (2)(b) of this section. Following the review, and notwithstanding section 24-1-136 (11)(a)(I), the commission, in consultation with the governing boards and participating private institutions, shall annually make recommendations regarding possible adjustments to the amount of the stipend per credit hour to the governor, and the joint budget committee of the general assembly for consideration in preparing the annual general appropriations act.

(e) An eligible undergraduate student who attends a participating private institution of higher education may receive financial assistance under this part 2 in the amount of fifty percent of the stipend amount.

(3) (a) For the state fiscal year commencing July 1, 2005, and for each state fiscal year thereafter, the general assembly shall appropriate spending authority to each governing board for the funds estimated to be received by an institution, under the direction and control of the governing board, as stipends, consistent with the provisions of section 23-1-104. The spending authority for the stipends estimated to be received shall be calculated by multiplying the amount of the applicable per-credit-hour stipend by the number of eligible student credit hours that are estimated to be attributable to each state institution of higher education under the direction and control of the governing board.

(b)

(I) The tuition increases from which the general assembly derived the total cash spending authority for each governing board shall be noted in a footnote in the annual general appropriations act.

(II) Repealed.

(c) Repealed.

(4) (a) Regardless of when an institution receives moneys in the form of a stipend on behalf of a student, or if the stipend amount is reduced by the general assembly, a state institution of higher education shall not increase the student's share of in-state tuition to make up for an actual or effective reduction during the same fiscal year in the stipend amount from which the total in-state tuition amount was calculated or for issues relating to the timing of stipend payments.

(b) If moneys in the college opportunity fund in any fiscal year are not sufficient to pay the rate per credit hour established pursuant to paragraph (b) of subsection (2) of this section, then the Colorado student loan program shall reduce the amount of the stipend per credit hour for all students to match the available funds, subject to joint budget committee approval. This paragraph (b) shall not be construed to limit the department's ability to request an adjustment to, or the general assembly's ability to adjust, the amount of the stipend during the budget process.

(5) (a) (I) After an undergraduate student has applied for the program, been approved for the program, and enrolled in a state or participating private institution of higher education, the institution shall request that the Colorado student loan program make a stipend payment from the college opportunity fund to the institution on behalf of the eligible undergraduate student. A payment by the Colorado student loan program to an institution of higher education from the college opportunity fund shall not be subject to the assessment of a transaction fee pursuant to section 24-36-120, C.R.S. The stipend payment shall be paid to the institution upon receipt by the institution of the eligible undergraduate student's authorization. The amount of the stipend paid on behalf of an eligible undergraduate student shall be applied against the student's total in-state tuition.

(II) Notwithstanding any provision of subparagraph (I) of this paragraph (a) to the contrary, an institution, with a student's permission, may apply for the program on the student's behalf using the information in the student's admission application after the student has been enrolled in the institution.

(b) The stipend paid by the Colorado student loan program on behalf of the eligible undergraduate student shall note on the student's receipt of payment from the state or private institution of higher education that the moneys came from the college opportunity fund.

(c) (I) An eligible undergraduate student shall not receive a stipend from the college opportunity fund for more than one hundred forty-five credit hours during the eligible undergraduate student's lifetime; except that:

(A) If an eligible undergraduate student has received stipend payments for one hundred forty-five credit hours and the student has received a bachelor's degree, the eligible undergraduate student is eligible to receive stipend payments for an additional thirty undergraduate credit hours; and

(B) For credit hours initiated on or after July 1, 2006, an eligible undergraduate student may receive stipend payments for basic skills courses, as defined in section 23-1-113 (11)(b), and courses taken pursuant to the "Concurrent Enrollment Programs Act", article 35 of title 22, C.R.S. For a student who enrolls in a course at an institution of higher education pursuant to the "Concurrent Enrollment Programs Act", article 35 of title 22, C.R.S., the student loan division in the department shall record the student's uniquely identifying student number before submitting a stipend payment on behalf of the student. Stipend payments received for the basic skills courses specified in this sub-subparagraph (B) shall not apply to the lifetime limitation of one hundred forty-five credit hours.

(II) For an eligible undergraduate student who is enrolled as a continuing student at a state institution of higher education or a participating private institution of higher education as of July 1, 2005, the commission shall determine the number of credit hours for which the student may receive a stipend from the college opportunity fund, based on the number of credit hours the eligible undergraduate student has earned.

(III) For an eligible undergraduate student who has completed one or more college courses while enrolled in high school pursuant to the "Concurrent Enrollment Programs Act", article 35 of title 22, C.R.S., or while designated by the department of education as an ASCENT program participant pursuant to section 22-35-108, C.R.S., or while enrolled in a pathways in technology early college high school pursuant to article 35.3 of title 22, C.R.S., all college-level credit hours earned by the student while so enrolled count against the lifetime limitation described in subparagraph (I) of this paragraph (c); except that credit hours earned from enrollment in a basic skills course, as defined in section 23-1-113 (11)(b), shall not count against the lifetime limitation.

(d) (I) An eligible undergraduate student and an institution of higher education shall not receive the payment of a stipend on behalf of an eligible undergraduate student for:

(A) to (C) Repealed.

(D) International baccalaureate courses;

(E) Advanced placement courses;

(F) Off-campus, extended campus, or continuing education classes that are not supported by state general fund money, except as approved by the commission, and, on or after July 1, 2007, except for classes or programs offered by an institution of higher education that an eligible undergraduate student who is a member of the armed forces or a dependent of a member of the armed forces attends for credit on a military base; or

(G) Classes offered by an institution of higher education that was established after July 1, 2007.

(II) and (III) Repealed.

(e) Notwithstanding the lifetime-credit-hour limitation established pursuant to paragraph (c) of this subsection (5), an eligible undergraduate student may apply to the commission for a waiver of the limitation. The commission may grant a waiver of the lifetime-credit-hour limitation if it finds:

(I) That extenuating circumstances exist related to the student's health or physical ability to complete the degree program within the lifetime-credit-hour limit;

(II) That the degree program, as approved by the commission, requires more than one hundred twenty hours to complete;

(III) That, while the eligible undergraduate student was enrolled in a specific degree program, the commission approved and the institution implemented an alteration of degree requirements or standards for the specific degree; or

(IV) That requiring the eligible undergraduate student to pay the full amount of total in-state tuition for credit hours that exceed the limitation would cause a substantial economic hardship on the student and the student's family.

(f) Notwithstanding the lifetime-credit-hour limitation established pursuant to paragraph (c) of this subsection (5) and in addition to the provisions of paragraph (e) of this subsection (5), a state institution of higher education may annually grant a one-year waiver of the lifetime-credit-hour limitation for up to five percent of the eligible undergraduate students enrolled in the state institution of higher education. In granting the waivers under this paragraph (f), the state institution of higher education shall, upon request, grant a waiver to an eligible undergraduate student for courses taken pursuant to the "Concurrent Enrollment Programs Act", article 35 of title 22, C.R.S., or for courses taken while enrolled in a pathways in technology early college high school pursuant to article 35.3 of title 22, C.R.S. For any remaining portion of the institution's five percent of eligible undergraduate students who may receive waivers, the institution shall give priority to students who are seeking job retraining.

(6) If an eligible undergraduate student enrolls in a class for which the state or participating private institution of higher education receives a stipend payment pursuant to subsection (5) of this section and the eligible undergraduate student subsequently withdraws from the class on or prior to the final date on which the institution permits a student to withdraw without the payment of any amount of tuition, the institution shall reimburse the college opportunity fund for the proportional amount of the stipend received that conforms to the governing board's refund policy for the class from which the student withdrew. The credits for which the stipend is refunded shall not count against the eligible undergraduate student's lifetime-credit-hour limitation established pursuant to paragraph (c) of subsection (5) of this section.

(7) It is the intent of the general assembly that the amount of a stipend received by a state institution of higher education on behalf of an eligible undergraduate student pursuant to this part 2 shall not constitute a grant from the state of Colorado pursuant to section 20 (2)(d) of article X of the state constitution.

(8) It is the intent of the general assembly that nothing in this article preclude the general assembly at a future time from including a local district college that is part of a local college district organized pursuant to article 71 of this title in the college opportunity fund program.

(9) It is the intent of the general assembly that the college opportunity fund and fee-for-service contracts authorized pursuant to section 23-18-303 be fully funded for enrollment growth.