CO SB121

Repeals language allowing institutions of higher education and the Department of Higher Education to transfer up to three percent of college opportunity fund spending authority to fee-for-service contracts.

Requires fee-for-service contracts to specify the per-full-time-student amount the department will pay and to have one-year terms that may be renewed annually.

Mandates contract amounts must reflect actual service costs, cannot be adjusted during the contract term, and cannot increase or decrease year-to-year by more than the inflation rate.

Requires the Department of Higher Education to provide copies of all fee-for-service contracts to the Joint Budget Committee and the assigned committee of reference during annual budget hearings.

Takes effect August 7, 2013, unless subject to a referendum petition, in which case voter approval at the November 2014 election is required.