Amendment 41 does not apply to scholarships awarded by the Daniels Fund to students whose parents are government employees, Denver District Judge Robert McGahey ruled Thursday.

"We are thrilled; we could not be happier," said Linda Childears, president and CEO of the Daniels Fund. "It allows us to proceed with what we do."

It was the second such ruling involving scholarships and Amendment 41, an ethics measure passed by voters in November that prohibits gifts over $50 in any given calendar year to elected officials, government employees and their family members.

Last Friday, another Denver judge ruled that scholarships awarded by the Boettcher Foundation are exempt.

McGahey made Thursday's ruling in a hearing that lasted five minutes. Before he made his decision, he disclosed that his wife works as a provost at University of Denver and offered to recuse himself.

But there were no objections from the attorneys in the case, and McGahey proceeded to grant the request for declaratory judgment.

Deputy Attorney General Jason Dunn welcomed the decision Thursday.

"The attorney general and the governor are pleased that we are able to provide a quick resolution for the parents and kids who are Daniels Fund applicants," he said. "It's good to put at least one aspect of Amendment 41 behind us."

About 25 percent of the 400 Colorado semifinalists for Daniels Fund scholarships would have been affected if the courts had ruled that scholarships fall under Amendment 41's restrictions.

The Daniels Fund filed its complaint Wednesday, arguing that the measure does not apply to its scholarships since they are awarded based on ongoing performance by recipients.