CO HB1064

Beginning July 1, 2014, local governments with a moratorium or permanent prohibition on oil and gas extraction cannot receive more in severance tax distributions or loans than they received in the fiscal year the moratorium or prohibition was enacted.

The restriction on increased distributions applies to both direct distributions under paragraph (c) and grants/loans made by the executive director under paragraph (b) of the local government severance tax fund statute.

The cap on distributions does not apply starting in the next fiscal year after a local government ends its moratorium or permanent prohibition on oil and gas extraction.

Funds that would have been distributed to capped counties or municipalities are redistributed on a pro rata basis to all other eligible counties and municipalities.

The General Assembly declares the act necessary for the immediate preservation of public peace, health, and safety.