(1) Any auxiliary facility or group of auxiliary facilities with similar functions which is managed by the governing body of an institution of higher education or by the board of directors of the Auraria higher education center may be designated as an enterprise for the purposes of section 20 of article X of the state constitution so long as the governing body of the institution of higher education or the board of directors of the Auraria higher education center, whichever manages such auxiliary facility or group of auxiliary facilities, retains the authority to issue revenue bonds on behalf of such auxiliary facility or group of auxiliary facilities and such auxiliary facility or group of auxiliary facilities receives less than ten percent of its total annual revenues in grants from all Colorado state and local governments combined. The general assembly hereby finds and declares that, for the purposes of determining whether an auxiliary facility or group of auxiliary facilities may be designated as an enterprise, it is sufficient that the governing body of an institution of higher education or the board of directors of the Auraria higher education center, whichever manages such auxiliary facility or group of auxiliary facilities, has authority to issue revenue bonds on behalf of such auxiliary facility or group of auxiliary facilities. So long as it is designated as an enterprise pursuant to the provisions of this section, an auxiliary facility or group of auxiliary facilities shall not be subject to any of the provisions of section 20 of article X of the state constitution.

(1.5) In pledging revenues for the repayment of revenue bonds issued on behalf of any auxiliary facility or group of auxiliary facilities that is designated as an enterprise, the institution of higher education and the auxiliary facility or group of auxiliary facilities may pledge internal revenues only if the auxiliary facility or group of auxiliary facilities:

(a) Is accounted for separately in institutional financial records;

(b) Is self-supporting from revenues received as gifts from nongovernmental sources or in exchange for goods and services; and

(c) Engages in the type of activities that are commonly carried on for profit outside the public sector.

(2) As used in this section and sections 23-5-101.7 to 23-5-105.5:

(a) "Auxiliary facility" means any student or faculty housing facility; student or faculty dining facility; recreational facility; student activities facility; child care facility; continuing education facility or activity; intercollegiate athletic facility or activity; health facility; alternative or renewable energy producing facility, including but not limited to, a solar, wind, biomass, geothermal, or hydroelectric facility; college store; or student or faculty parking facility; or any similar facility or activity that has been historically managed, and was accounted for in institutional financial statements prepared for fiscal year 1991-92, as a self-supporting facility or activity, including any additions to and any extensions or replacements of any such facility on any campus under the control of the governing board managing such facility. "Auxiliary facility" shall also mean any activity undertaken by the governing board of any state-supported institution of higher education as an eligible lender participant pursuant to parts 1 and 2 of article 3.1 of this title.

(b)

(I) "Grant" means any direct cash subsidy or other direct contribution of money from the state or any local government in Colorado which is not required to be repaid.

(II) "Grant" does not include:

(A) Any indirect benefit conferred upon an auxiliary facility, or group of auxiliary facilities or an institution or group of institutions from the state or any local government in Colorado, including any interest in or use of existing facilities owned, funded, or financed by the governing board of an institution, the state, or any local government in Colorado;

(B) Any revenues resulting from market exchanges such as rates, fees, assessments, tuition, or other charges imposed by an auxiliary facility, or group of auxiliary facilities or by an institution or group of institutions for the provision of goods or services by such auxiliary facility, group of auxiliary facilities, institution or group of institutions, including services to the state or a local government in Colorado and fees paid to the auxiliary facility or group of auxiliary facilities for internal services provided to the institution of higher education with which the auxiliary facility is associated;

(C) Any federal funds, regardless of whether such federal funds pass through the state or any local government in Colorado prior to receipt by an auxiliary facility, group of auxiliary facilities, institution, or group of institutions;

(D) Fees received by an institution pursuant to a fee-for-service contract between the department of higher education and the institution or the institution's governing board;

(E) Revenues received by an institution or group of institutions that have been paid on behalf of an eligible undergraduate student from the college opportunity fund pursuant to article 18 of this title.

(c) "Internal revenues" means revenues received in exchange for the provision of goods or services to the institution of higher education with which the auxiliary facility or group of auxiliary facilities is associated; except that revenues received from another auxiliary facility or group of auxiliary facilities that has been designated as an enterprise are not "internal revenues".

(3) (a) The governing body of an institution of higher education or the board of directors of the Auraria higher education center may, by resolution, designate any auxiliary facility or group of auxiliary facilities with similar functions managed by such governing body or board of directors, as applicable, as an enterprise so long as such auxiliary facility or group of auxiliary facilities meets the requirements for an enterprise as stated in subsection (1) of this section. The designation of a group of auxiliary facilities with similar functions may include auxiliary facilities that are located at one or more campuses or institutions under the jurisdiction of the governing body or board of directors. Except as provided in paragraph (b) of this subsection (3), any such designation of an auxiliary facility or group of auxiliary facilities in accordance with the requirements of this paragraph (a) shall not terminate, expire, or be rescinded as long as the auxiliary facility or group of auxiliary facilities meets the requirements for an enterprise.

(b) All designations adopted pursuant to paragraph (a) of this subsection (3) shall be submitted by the adopting body to the office of the state auditor in the form and manner prescribed by the legislative audit committee. Said designations shall be reviewed by said office to determine whether said designations are within the authority of the adopting body pursuant to the provisions of this section and for later review by the legislative audit committee for its opinion as to whether the designations conform with the provisions of this section. The official certificate of the state auditor as to the fact of submission or the date of submission of a designation as shown by the records of the office of the state auditor, as well as to the fact of nonsubmission as shown by the nonexistence of such records, shall be received and held in all civil cases as competent evidence of the facts contained therein. Any such designation adopted by a governing body of an institution of higher education or by the board of directors of the Auraria higher education center without being so submitted within twenty days after adoption to the office of the state auditor for review by said office and by the legislative audit committee shall be void. The findings of the office of the state auditor shall be presented to said committee at a public meeting held after timely notice to the public and affected adopting bodies. The legislative audit committee shall, on affirmative vote, submit such designations, comments, and any proposed legislation at the next regular session of the general assembly. Any member of the general assembly may introduce a bill which rescinds any designation. Rejection of such a bill does not constitute legislative approval of such designation. Each adopting body shall revise its designations to conform with the action taken by the general assembly. For the purpose of performing the functions assigned it by this paragraph (b), the legislative audit committee, with the approval of the speaker of the house of representatives and the president of the senate, may appoint subcommittees from the membership of the general assembly.

(4) The following auxiliary facilities shall be designated as enterprises in accordance with the requirements of this section:

(a) Auraria higher education center:

(I) Parking;

(II) Student facilities;

(III) Reprographics; and

(IV) Other auxiliaries;

(V) and (VI) (Deleted by amendment, L. 97, p. 1407, § 6, effective July 1, 1997.)

(b) University of Colorado:

(I) Auxiliary facilities;

(II) Education services;

(III) Research support services; and

(IV) Other self-funded services;

(c) Colorado school of mines:

(I) Student and faculty services;

(II) Continuing education;

(III) General operations; and

(IV) Research revolving;

(d) University of northern Colorado:

(I) Continuing education; and

(II) to (IV) (Deleted by amendment, L. 98, p. 218, § 1, effective April 10, 1998.)

(V) (Deleted by amendment, L. 2004, p. 110, § 1, effective March 17, 2004.)

(VI) Auxiliary facilities;

(e) Colorado community college and occupational education system:

(I) (Deleted by amendment, L. 98, p. 218, § 1, effective April 10, 1998.)

(II) Continuing education;

(III) Student and faculty services;

(IV) (Deleted by amendment, L. 97, p. 1407, § 6, effective July 1, 1997.)

(V) Tec operations; and

(VI) Lowry enterprise;

(f) Colorado state university system:

(I) Student and faculty operations and activities;

(II) Continuing education;

(III) (Deleted by amendment, L. 97, p. 1407, § 6, effective July 1, 1997.)

(IV) Research building revolving fund; and

(V) Colorado state forest service seedling tree nursery;

(g) Adams state university:

(I) Student and faculty services; and

(II) Continuing education;

(h) Colorado Mesa university:

(I) Student and faculty services;

(II) Continuing education; and

(III) Other self-funded services;

(i) Metropolitan state university of Denver:

(I) Student and faculty services; and

(II) Continuing education;

(j) Western state Colorado university:

(I) Student and faculty services; and

(II) Continuing education; and

(k) Fort Lewis college:

(I) Student and faculty operations and activities; and

(II) Continuing education.

(5) Notwithstanding paragraph (a) of subsection (3) of this section relating to the designation of auxiliary facilities as enterprises, those auxiliary facilities of Fort Lewis college, which were a part of the Colorado state university system enterprise pursuant to paragraph (f) of subsection (4) of this section, shall, as they relate to Fort Lewis college, be designated enterprises of the board of trustees for Fort Lewis college, established in section 23-52-102.

(6) Notwithstanding paragraph (a) of subsection (3) of this section relating to the designation of auxiliary facilities as enterprises:

(a) Any auxiliary facilities of Adams state university that were a part of any state colleges enterprise pursuant to paragraph (g) of subsection (4) of this section in existence prior to the establishment of the board of trustees of Adams state university in section 23-51-102 shall, as they relate to Adams state university, be designated enterprises of the board of trustees of Adams state university.

(b) Any auxiliary facilities of Colorado Mesa university that were part of Mesa state college that were a part of any state colleges enterprise pursuant to paragraph (g) of subsection (4) of this section in existence prior to the establishment of the board of trustees of Colorado Mesa university in section 23-53-102 shall, as they relate to Colorado Mesa university, be designated enterprises of the board of trustees of Colorado Mesa university.

(c) Any auxiliary facilities of Metropolitan state university of Denver that were a part of any state colleges enterprise established under law in existence prior to the establishment of the board of trustees of Metropolitan state university of Denver in section 23-54-102 shall, as they relate to Metropolitan state university of Denver, be designated enterprises of the board of trustees of Metropolitan state university of Denver.

(d) Any auxiliary facilities of Western state Colorado university that were a part of any state colleges enterprise pursuant to paragraph (g) of subsection (4) of this section in existence prior to the establishment of the board of trustees of Western state Colorado university in section 23-56-102 shall, as they relate to Western state Colorado university, be designated enterprises of the board of trustees of Western state Colorado university.