(1) Except as provided in subsection (4) of this section, for the 2002-03 fiscal year and each fiscal year thereafter, the state treasurer is authorized to assess a fee for each eligible transaction performed by the state treasurer on behalf of state departments and agencies. Notwithstanding any other provision of law, the state treasurer shall deduct the fee from the interest earnings attributable to the fund for which the transaction was performed.
(2) The amount of the fee assessed pursuant to subsection (1) of this section shall be determined annually by dividing an amount equal to the total amount appropriated to the department of the treasury for administration in the annual general appropriations act for the current fiscal year by the total number of eligible transactions performed by the state treasurer in the immediately preceding fiscal year.
(3) The fees deducted by the state treasurer pursuant to subsection (1) of this section shall be subject to annual appropriation by the general assembly to the department of the treasury to fund the administration of the department.
(4) The state treasurer shall not assess a fee for an eligible transaction involving any of the following funds:
(a) The state education fund created in section 17 (4) of article IX of the state constitution;
(b) The highway users tax fund created in section 43-4-201, C.R.S.;
(c) The great outdoors Colorado trust fund created in section 2 of article XXVII of the state constitution;
(d) The public school fund described in section 3 of article IX of the state constitution;
(e) The old age pension fund created in section 1 of article XXIV of the state constitution;
(f) Any other fund against which the assessment of a fee would be contrary to the state constitution; and
(g) The college opportunity fund created in section 23-18-202, C.R.S.
(5) The state treasurer shall notify each state department and agency for which the state treasurer performs eligible transactions of the amount of fees that will be deducted from any fund managed by the state department or agency no later than July 1 of the fiscal year in which the fees will be deducted.
(6) As used in this section, eligible transaction means any cash management transaction that affects a cash balance, including, but not limited to, electronic fund transfers, payroll and other automated disbursements, payments, cash receipts, warrant transactions, check transactions, and journal entries.
Source: L. 2003: Entire section added, p. 510, � 1, effective March 5. L. 2004: (4) amended, p. 722, � 13, effective July 1. L. 2014: (4)(g) amended, (HB 14-1319), ch. 169, p. 614, � 16, effective May 9; (6) amended, (HB 14-1391), ch. 328, p. 1454, � 14, effective June 5.
24-36-121. Authority to manage state public financing - state public financing cash fund - rules - legislative declaration - definitions. (1) The general assembly hereby finds, determines, and declares that:
(a) The state's public financing matters are currently decentralized. Many state agencies incur financial obligations and directly or indirectly pledge or use the credit of the state without centralized management.
(b) Centralized management could have a positive impact on the state's credit rating because credit rating agencies would have a centralized point of contact with the state for state public financing matters;
(c) The issuance and incurrence of financial obligations and the state's outstanding financial obligations should be managed as a whole, by personnel with financial experience and securities market understanding, so that the issuance and incurrence of state financial obligations and the state's outstanding financial obligations can be managed as efficiently and cost effectively as possible, allowing the state to maximize refinancing opportunities;
(d) Centralized management provides a better method of ensuring that federal tax and securities law post-issuance compliance requirements for state financial obligations are met by the state;
(e) Due to changes in the public securities market, increased regulatory requirements, evolving credit criteria, recent technological developments, recent downgrading of certain government credit ratings, and the benefits set forth in this subsection (1), it is necessary to designate the state treasurer as a centralized manager for the issuance and incurrence of financial obligations by the state acting by and through a state agency;
(f) It is also important that the state treasurer develop and promulgate a state public financing policy and, in so doing, collaborate with various experts, including but not limited to the state controller, the office of state planning and budgeting, bond counsel, and the attorney general. Such a policy demonstrates a commitment to long-term financial planning, identifies policy goals, provides for appropriate financing structures, and improves the quality of decision-making. Furthermore, credit rating agencies, the federal internal revenue service, and the federal securities and exchange commission view the existence of state public financing policies favorably.
(g) Senate Bill 12-150, enacted in 2012, is not intended to grant the state treasurer any authority that supersedes a state agency's authority to enter into or incur a financial obligation, nor is Senate Bill 12-150 intended to affect other state laws regarding the general assembly's approval of any financed purchase of an asset or certificate of participation agreement over five hundred thousand dollars.
(2) Nothing in this section authorizes the state treasurer or any other public agency to waive an election otherwise required under section 20 of article X or article XI of the state constitution or to hold an election inconsistent with the election requirements of said section 20 of article X. References to financial obligations, debt, or bonds in this section are for reference only and shall not be construed to create debt or a multiple fiscal-year financial obligation contrary to section 20 of article X or article XI of the state constitution.
(3) As used in this section, unless the context otherwise requires:
(a) (I) Financial obligation means any financial contract, note, warrant, check, bond, certificate, instrument, debenture, or other security, the principal amount of which is one million dollars or more, that is authorized to be issued or entered into by the state acting by and through a state agency under the laws of this state, that is fully or partially secured by any state revenues, and that is directly or indirectly related to the state's credit rating. Financial obligation includes, but is not limited to:
(A) Any financed purchase of an asset or certificate of participation agreement the principal amount of which is one million dollars or more authorized pursuant to section 24-82-102 and part 8 of article 82 of this title 24; and
(B) Any payment obligation constituting a portion of or related to an energy performance contract as defined in section 24-30-2001 (1) or a capital project financed through a utility cost-savings contract authorized by section 24-38.5-106.
(II) Notwithstanding subparagraph (I) of this paragraph (a), for purposes of the department of transportation, financial obligation does not include:
(A) Any financial contract, note, warrant, check, bond, certificate, instrument, debenture, or other contract, agreement, or security that is authorized to be issued or entered into by or in support of such obligations of the high-performance transportation enterprise created in section 43-4-806 (2), C.R.S.; and
(B) Any financial contract, note, warrant, check, bond, certificate, instrument, debenture, or other contract, agreement, or security that is authorized to be issued or entered into by or in support of such obligations of the statewide bridge enterprise created in section 43-4-805 (2), C.R.S.
(b) Internal revenue code means the federal Internal Revenue Code of 1986, as amended, and any regulations thereunder.
(c) (I) State agency means a department, board, bureau, commission, division, institution, quasi-governmental entity, or other agency or instrumentality of the state, including a state institution of higher education. State agency also includes an enterprise, as defined in section 24-77-102 (3), a nonprofit corporation organized under the laws of this state and created solely for the purpose of issuing financial obligations on behalf of the state acting by and through a state agency, and a trust that may be formed by the state or a state agency to implement financed purchase of an asset or certificate of participation financing.
(II) State agency does not include:
(A) A county or city and county;
(B) A municipality;
(C) A school district;
(D) A charter school;
(E) A water conservancy district;
(F) Collegeinvest as described in section 23-3.1-205.5, C.R.S.;
(G) A district or authority organized or acting pursuant to the provisions of title 29, 30, 31, or 32, C.R.S.;
(H) A special purpose authority listed in section 24-77-102 (15)(b); or
(I) Any other political subdivision of the state or other entity that constitutes a local public body as defined in section 24-6-402 (1)(a).
(d) State institution of higher education has the same meaning as set forth in section 23-18-102 (10), C.R.S. For purposes of this section,state institution of higher education also includes the Auraria higher education center established in article 70 of title 23, C.R.S.
(e) State revenues means all income of the state that is received into the state treasury from taxes, fees, and other sources and appropriated for the payment of the state's expenses.
(4) (a) (I) Notwithstanding any other law to the contrary and except as provided in subparagraph (II) of this paragraph (a), for the 2012-13 state fiscal year and each state fiscal year thereafter, when a state agency obtains the required approval for the financing of a capital project as specified in law, the state treasurer shall act as the issuing manager, subject to the criteria established in the state public financing policy promulgated as specified in subsection (5) of this section, for all approved financial obligations of the state acting by and through a state agency. The state treasurer has the sole discretion to manage the issuance or incurrence of financial obligations of the state acting by and through a state agency, including all post-issuance compliance with federal and state tax and securities laws, such as arbitrage, rebate, and remedial action requirements. The state treasurer's duties with respect to the management of the issuance or incurrence of financial obligations include, but are not limited to, the following:
(A) Determining the financing structure and term;
(B) Deciding the market timing;
(C) Selecting or hiring, as applicable, the state financing team, including, where appropriate, the lessor, purchaser, underwriter, bond or disclosure counsel, trustee, escrow agent, paying agent, credit enhancer, rating agency, placement agent, liquidity provider, credit support provider, interest rate exchange agreement counterparty, and financial advisor;
(D) Determining the advisability of a state agency entering into an interest rate exchange agreement pursuant to article 59.3 of title 11, C.R.S.; and
(E) Determining whether to enter into competitive or negotiated sales of financial obligations.
(II) For a state institution of higher education, for the 2012-13 state fiscal year and each state fiscal year thereafter, the state treasurer shall act as the issuing manager, subject to the criteria established in the state public financing policy promulgated as specified in subsection (5) of this section, for any financed purchase of an asset or certificate of participation agreement similar to those authorized in section 23-1-106.3, and any financial contract, note, warrant, check, bond, certificate, instrument, debenture, or other security, the principal amount of which is one million dollars or more, that is authorized under the laws of this state to be issued or entered into by the state acting by and through a state agency other than a state institution of higher education and that finances improvements that benefit a state institution of higher education. The state treasurer has the sole discretion to manage the issuance or incurrence of such financial obligations for a state institution of higher education and shall manage the issuance or incurrence of such financial obligations in accordance with the duties set forth in subsections (4)(a)(I)(A) to (4)(a)(I)(E) of this section. The state treasurer shall not act as the issuing manager for any bonds subject to the higher education revenue bond intercept program established in section 23-5-139.
(b) (I) (A) Not less than sixty days prior to the date on which a state agency expects that a financial obligation of the state acting by and through the state agency will be incurred, a state agency shall provide written notice to the state treasurer of that expectation.
(B) Not less than thirty days prior to the date on which a state agency expects that a refinancing of a financial obligation of the state acting by and through the state agency will be incurred, a state agency shall provide written notice to the state treasurer of that expectation.
(II) The state agency shall provide the state treasurer with the information that the state treasurer considers necessary to act as the issuing manager for the issuance or incurrence of the financial obligation, including, if necessary, assumptions of underlying cash flow projections associated with the repayment of the financial obligation. The state agency shall provide the state treasurer with the information that the state treasurer considers necessary to comply with federal and state tax and securities laws and contractual covenants.
(c) In performing his or her duties as the issuing manager, the state treasurer shall consider any relevant factors that the state treasurer considers necessary to protect the financial integrity of the state.
(d) The state treasurer is the elected representative for the purpose of approving the issuance or incurrence of financial obligations by the state acting by and through a state agency when such approval is required under the internal revenue code and is the required signatory on all forms required by the federal internal revenue service to be filed in connection with the issuance or incurrence of financial obligations by the state acting by and through a state agency.
(5) No later than ninety days after May 24, 2012, the state treasurer shall promulgate by rule, in accordance with article 4 of this title, a state public financing policy, and, in so doing, shall collaborate with various experts, including but not limited to the state controller, the office of state planning and budgeting, bond counsel, and the attorney general. The state treasurer shall present the state public financing policy to the capital development committee at the earliest meeting of the capital development committee at which time is available in the meeting schedule after the policy is finalized and shall provide a copy of the final state public financing policy to the joint budget committee. The state treasurer shall notify the capital development committee and the joint budget committee, in writing, of any substantive changes that are subsequently made to the state public financing policy. For purposes of this subsection (5), the attorney general is the legal advisor to the state treasurer. The state public financing policy shall include, but shall not be limited to, the following components:
(a) The use of moral obligation pledges;
(b) The criteria for the issuance or incurrence of financial obligations by the state acting by and through a state agency;
(c) The use of derivatives;
(d) The use of variable rate financial obligations;
(e) Credit objectives;
(f) The structuring practices for each type of financial obligation, including, but not limited to, information about the term, maturity, and type of interest;
(g) Acceptable methods of sale;
(h) Policies for determining when selection of external financial professionals is appropriate;
(i) Policies related to the refunding of financial obligations;
(j) Policies related to primary and continuing disclosure requirements for financial obligations;
(k) Policies related to post-issuance compliance with federal and state tax and securities laws, including arbitrage, rebate, and remedial action requirements; and
(l) Policies for investment of proceeds where not otherwise covered by law.
(6) (a) No later than ten days after a state institution of higher education enters into or issues a financial obligation in a principal amount of one million dollars or more that is secured in whole or in part by state revenues or revenues of the institution and that the state treasurer does not manage pursuant to subsection (4) of this section, including any bonds subject to the higher education revenue bond intercept program established in section 23-5-139, C.R.S., the state institution of higher education shall notify the state treasurer that it has entered into the financial obligation. The notification shall include at least the following information:
(I) A copy of any official statement or other offering document for the issuance or incurrence of the financial obligation;
(II) A copy of any filings or correspondence with the federal internal revenue service with respect to the issuance or incurrence, including, if applicable, a copy of each form 8038 or form 8038G;
(III) A copy of the continuing disclosure undertaking; and
(IV) Any other information that is described in the state public financing policy promulgated pursuant to subsection (5) of this section related to the issuance or incurrence.
(b) No later than ten days after the high-performance transportation enterprise created in section 43-4-806 (2), C.R.S., or the statewide bridge enterprise created in section 43-4-805 (2), C.R.S., enters into the financial contracts or instruments specified in sub-subparagraphs (A) and (B) of subparagraph (II) of paragraph (a) of subsection (3) of this section, the enterprises shall notify the state treasurer that they have entered into or issued such a financial contract or instrument. The notification shall include at least the following information:
(I) A copy of any official statement or other offering document for the issuance or incurrence of such a financial contract or instrument;
(II) A copy of any filings or correspondence with the federal internal revenue service with respect to the issuance or incurrence, including, if applicable, a copy of each form 8038 or form 8038G;
(III) A copy of the continuing disclosure undertaking; and
(IV) Any other information that is described in the state public financing policy promulgated pursuant to subsection (5) of this section related to the issuance or incurrence.
(7) (a) On and after July 1, 2012, the issuance or incurrence of every financial obligation by the state acting by and through a state agency that the state treasurer manages pursuant to subsection (4) of this section must include, to the extent allowed by the internal revenue code, an amount determined by the state treasurer. The state treasurer shall credit the money to the state public financing cash fund, which is hereby created in the state treasury. The fund consists of money deposited in the fund pursuant to this subsection (7)(a) and must be used solely for the purposes described in subsection (7)(b) of this section. The money in the fund is continuously appropriated to the state treasurer. All unexpended and unencumbered money in the fund and all interest and income earned on the deposit and investment of money in the fund remains in the fund and shall not revert to the general fund or any other fund at the end of a fiscal year.
(b) The money in the state public financing cash fund shall be used to reimburse the state treasurer for verifiable costs incurred in performing or overseeing the state's primary issuance compliance and post-issuance compliance responsibilities over the term of a financial obligation, including complying with or monitoring compliance with the requirements of the internal revenue code, making public disclosures or continuing disclosure undertakings required pursuant to federal securities laws or ensuring that such disclosures are made, and performing or coordinating requirements in connection with the financial obligation.
(8) No later than ninety days after May 24, 2012, the state treasurer shall create and maintain a correct and current inventory of all state-owned real property described in section 24-30-1303.5 that is leased property or collateral in any type of financial obligation. The state treasurer shall annually provide a copy of the inventory to the capital development committee.
Source: L. 2012: Entire section added, (SB 12-150), ch. 196, p. 779, � 1, effective May 24. L. 2014: IP(3)(a)(I), (3)(a)(II), and (4)(a)(II) amended, (HB 14-1391), ch. 328, p. 1454, � 15, effective June 5. L. 2021: (1)(g), (3)(a)(I)(A), (3)(c)(I), and (4)(a)(II) amended, (HB 21-1316), ch. 325, p. 2026, � 36, effective July 1. L. 2022: (7)(b) amended, (SB 22-025), ch. 386, p. 2750, � 1, effective August 10. L. 2025: (7) amended, (SB 25-081), ch. 320, p. 1672, � 1, effective August 6.
24-36-121.5. Use of security tokens for state capital financing - feasibility study - authorization of use - legislative declaration - definitions. (1) (a) The general assembly hereby finds and declares that:
(I) Section 3 of article XI of the state constitution prohibits the state from issuing general obligation debt, and section 20 of article X of the state constitution generally requires the state to obtain voter approval in advance before incurring any multiple-fiscal year direct or indirect district debt or other financial obligation whatsoever;
(II) Due to these limitations, the state typically engages in capital financing by:
(A) Issuing short-term tax or revenue anticipation notes, which the state must repay within the same state fiscal year in which they are issued for the purpose of smoothing general fund cash flow; and
(B) Entering into annually renewable financed purchase of an asset or certificate of participation agreements, which grant purchasers of certificates of participation the right to receive lease payments, for the purpose of financing the construction, improvement, or acquisition of capital assets;
(III) Certificates of participation issued in connection with a financed purchase of an asset or certificate of participation agreement evidence proportionate interests in the base rentals paid by the state pursuant to the agreement; and
(IV) The use of financed purchase of an asset or certificate of participation agreements by the state for capital financing may limit the universe of investors that can invest in the state and assist in financing state capital projects and may increase the state's capital financing costs.
(b) The general assembly further finds and declares that:
(I) The emergence of decentralized, secure blockchain technology allows security token offerings to be used for capital financing;
(II) A security token offering is a capital financing method in which security tokens, which are digital, liquid contracts made verifiable and secure through the use of blockchain technology that establish a token owner's right to a fraction of a financial asset, are sold to investors;
(III) If the general assembly, after a study by the state treasurer of the feasibility of using security token offerings for state capital financing, authorizes the state to use this new and innovative method of capital financing, the state could substantially reduce its capital financing costs by:
(A) Allowing a much broader range of investors, including ordinary individuals, to invest in underlying financial assets such as certificates of participation issued in connection with financed purchase of an asset or certificate of participation agreements by purchasing security tokens that evidence their investments, thereby increasing investor demand for the underlying financial assets and reducing the rate of interest that the state must pay to investors; and
(B) Reducing the state's dependence on commercial banks, institutional investors, mutual funds, and pension funds when obtaining capital financing and the high underwriting fees, interest, and other transactional costs that result from that dependence;
(IV) In addition to reducing costs, if authorized by the general assembly, the state's use of security token offerings for capital financing will allow ordinary Coloradans, who as taxpayers collectively own state-owned capital assets, to also share in the ownership of leased state capital assets until the state has paid all of its lease obligations and obtained ownership of the assets; and
(V) Because the state has not previously used security token offerings for capital financing and the state treasurer has substantial experience and institutional expertise in capital financing and provides centralized capital financing management on behalf of many state agencies, it is necessary and appropriate to:
(A) Require the state treasurer to study the feasibility of using security token offerings for state capital financing; and
(B) Authorize the state treasurer to recommend to the general assembly that the general assembly enact legislation to authorize the use of security token offerings for state capital financing if, after completing the feasibility study, the state treasurer determines such use to be in the best interest of the state.
(2) As used in this section, unless the context otherwise requires:
(a) Blockchain technology means a mathematically secured, chronological, decentralized, distributed, and digital ledger or database that consists of records of transactions that cannot be altered retroactively.
(b) Security token means a digital, liquid contract made verifiable and secure through the use of blockchain technology that establishes its owner's right to a fraction of a financial asset such as a stock, bond, or certificate of participation.
(c) Security token offering means a capital financing method in which security tokens representing fractional interests in a financial asset are sold to investors in lieu of selling the actual financial asset to investors.
(3) The state treasurer shall study the feasibility of using security token offerings for state capital financing and determine the extent to which the use of security token offerings of state capital financing would be in the best interest of the state. The state treasurer shall complete the study and report the study findings to the house of representatives finance committee and the senate finance committee, or their successor committees, and to the joint budget committee by March 1, 2023. If the state treasurer determines, after completing the feasibility study, that the use of security tokens for state capital financing is in the best interest of the state, the state treasurer may recommend as part of the report that the general assembly enact legislation to authorize such use. The state treasurer shall also post the study findings on the department of the treasury's website.
(4) The state treasurer may use a security token offering for state capital financing and may adopt rules as necessary to implement this section.
Source: L. 2022: Entire section added, (SB 22-025), ch. 386, p. 2750, � 2, effective August 10. L. 2025: (4) added, (SB 25-081), ch. 320, p. 1673, � 2, effective August 6.
24-36-122. Law enforcement officers and firefighters - work-related death - continuation of medical benefits for dependants - cash fund - created - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Board means the law enforcement officers' and firefighters' continuation of benefits board created in subsection (2) of this section.
(b) Employee means an active, full-time or part-time salaried employee of an employer whose duties are directly involved with the provision of law enforcement or fire protection, as certified by his or her employer, and who has medical or dental benefit coverage through his or her employer.
(c) Employer means any county or municipality in the state offering law enforcement or fire protection service employing one or more persons and any special district or county improvement district in the state offering fire protection service employing one or more persons.
(d) Fund means the law enforcement officers' and firefighters' continuation of benefits fund created in subsection (5) of this section.
(e) Work-related death means a death that is the proximate result of an injury arising out of and in the course and scope of employment with an employer.
(2) (a) There is hereby created in the department of the treasury the law enforcement officers' and firefighters' continuation of benefits board. The board shall review submissions from employers for the continuation of medical and dental benefits for the dependants of any employee who dies in a work-related death and shall oversee the payment of such benefits. In the course of its duties, the board may coordinate and confer with the department of public safety, the department of local affairs, the fire and police pension association, any employer as defined in subsection (1)(c) of this section, or any other entity as deemed necessary and appropriate by the board.
(b) The board is composed of the following members:
(I) The state treasurer or his or her designee;
(II) The executive director of the department of public safety or his or her designee; and
(III) The executive director of the fire and police pension association or his or her designee.
(c) The members of the board serve without compensation but shall be reimbursed by the department of the treasury for any necessary expenses incurred in the conduct of their official duties and shall suffer no loss of salary from an employer for service on the board.
(d) Staff services for the board shall be provided by the department of the treasury.
(3) (a) Any employer may request that the board pay the costs of the continuation of benefits for the dependents of an employee who died in a work-related death paid from the fund.
(b) (Deleted by amendment, L. 2023.)
(c) Nothing in this section shall be construed to prohibit a county, municipality, special district, or county improvement district from independently paying for the continuation of benefits for the dependents of any person it employs and who dies in a work-related death.
(4) The dependents of an employee who dies in a work-related death are automatically qualified for the continuation of medical and dental benefits through the employer's medical and dental benefit coverage for twelve months from the end of the month in which the work-related death occurred, so long as the dependents had medical or dental benefits through the employer at the time of the employee's work-related death. The medical or dental benefits allowed to dependents pursuant to this section shall be the same coverage that the dependents were enrolled in at the time of the employee's work-related death.
(5) The board shall pay the cost of providing medical or dental benefits on behalf of the employee's dependents for the twelve-month period pursuant to subsection (4) of this section from the fund. The board shall make arrangements with the employer to pay such costs.
(6) (a) The law enforcement officers' and firefighters' continuation of benefits fund is hereby created in the state treasury. The fund consists of money credited to the fund pursuant to subsection (6.5) of this section and any other money that the general assembly may appropriate or transfer to the fund.
(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.
(c) The state treasurer shall credit any unexpended and unencumbered money remaining in the fund at the end of a fiscal year to the fund.
(d) Subject to annual appropriation by the general assembly, the board may expend money from the fund to pay the cost of providing medical or dental benefits on behalf of an employee's dependents when the employee died in a work-related death. The board shall make arrangements with the employer to pay such costs.
(6.5) On July 1, 2023, and on July 1 each year thereafter through July 1, 2025, the state treasurer shall transfer one hundred fifty thousand dollars from the general fund to the fund.
(7) At any time, if an employee dies from a work-related death and the money in the fund is insufficient to cover the costs of the continuation of benefits for the dependents of the employee, the state treasurer shall advance sufficient money from the state treasury to the fund to cover such costs. Any money advanced to the fund shall be repaid by the board on a schedule to be set by the board.
(8) The board may develop rules, policies, or procedures to implement this section. Such rules, policies, or procedures may include:
(a) and (b) Repealed.
(c) The manner in which an employer notifies the board that an employee died in a work-related death and has dependents who are eligible for a continuation of benefits pursuant to this section;
(d) Procedures for the payment of continuation of benefits after an employee dies in a work-related death; and
(e) Rules, policies, or procedures to address any other issue deemed necessary and appropriate by the board.
Source: L. 2018: Entire section added, (SB 18-247), ch. 338, p. 2023, � 1, effective May 30. L. 2023: (1)(c), (3), (6)(a), IP(8), and (8)(e) amended, (6.5) added, and (8)(a) and (8)(b) repealed, (HB 23-1305), ch. 304, p. 1862, � 1, effective June 1.
24-36-123. Rent reporting for credit pilot program - Colorado housing and finance authority - appropriations - repeal. (Repealed)
Source: L. 2021: Entire section added, (HB 21-1134), ch. 379, p. 2537, � 2, effective June 29.
Editor's note: Subsection (3) provided for the repeal of this section, effective September 1, 2024. (See L. 2021, p. 2537.)
Cross references: For the legislative declaration in HB 21-1134, see section 1 of chapter 379, Session Laws of Colorado 2021.
24-36-124. Financed purchase of an asset or certificate of participation agreements - fund capital costs related projects at four institutions of higher education - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Agreement means one or more financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a) of this section.
(b) Applicable board means either:
(I) The board of trustees for the university of northern Colorado established pursuant to section 23-40-104 (1)(a);
(II) The board of trustees for Metropolitan state university of Denver established pursuant to section 23-54-102 (1)(a);
(III) The board of governors of the Colorado state university system established pursuant to section 23-30-101 (1)(a); or
(IV) The state board for community colleges and occupational education created in section 23-60-104 (1)(b).
(2) (a) Notwithstanding the provisions of sections 24-82-102 (1)(b) and 24-82-801, and pursuant to section 24-36-121, no later than December 31, 2024, the state, acting by and through the state treasurer, shall execute an agreement for the purposes described in subsection (4) of this section, the total amount of the principal of which agreement shall not exceed two hundred forty-six million nine hundred thirty-six thousand ninety-two dollars, plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest.
(b) The anticipated annual state-funded payments for the principal and interest components of the amount payable under an agreement entered into pursuant to subsection (2)(a) of this section shall not exceed seventeen million five hundred thousand dollars, with principal amortization not occurring before July 1, 2027.
(c) The state, acting by and through the state treasurer, at the state treasurer's sole discretion, may enter into an agreement authorized by subsection (2)(a) of this section with any for-profit or nonprofit corporation, trust, or commercial bank acting as a trustee as the lessor.
(d) The agreement must provide that all of the obligations of the state under the agreement are subject to the action of the general assembly in annually making money available for all payments thereunder. Payments under the agreement must be made subject to annual appropriation by the general assembly, as applicable, from the general fund or from any other legally available source of money.
(e) The agreement must also provide that the obligations of the state do not create state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt and are not a multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution. If the state does not renew the agreement, the sole security available to the lessor is the property that is the subject of the nonrenewed agreement.
(f) (I) The agreement may contain such terms, provisions, and conditions as the state treasurer, acting on behalf of the state, deems appropriate, including all optional terms; except that the agreement must specifically authorize the state or the applicable board to receive fee title to all real and personal property that is the subject of the agreement on or before the expiration of the terms of the agreement.
(II) The state treasurer, acting on behalf of the state, has the authority to determine what collateral to use for the agreement as the state treasurer deems appropriate.
(g) The agreement may provide for the issuance, distribution, and sale of instruments evidencing rights to receive rentals and other payments made and to be made under the agreement. The instruments may be issued, distributed, or sold only by the lessor or any person designated by the lessor and not by the state. The instruments do not create a relationship between the purchasers of the instruments and the state or create any obligation on the part of the state to the purchasers. The instruments are not a note, bond, or any other evidence of state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt and are not a multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution.
(h) Interest paid under an agreement authorized pursuant to subsection (2)(a) of this section, including interest represented by the instruments, is exempt from Colorado income tax.
(i) The state, acting by and the through the state treasurer and the applicable board, is authorized to enter into ancillary agreements and instruments that are necessary or appropriate in connection with an agreement, including but not limited to deeds, ground leases, sub-leases, easements, or other instruments related to the real property on which the facilities are located.
(j) The provisions of section 24-30-202 (5)(b) do not apply to an agreement or to any ancillary agreement or instrument entered into pursuant to this subsection (2). The state controller or their designee shall waive any provision of the fiscal rules promulgated pursuant to sections 24-30-202 (1) and (13) that the state controller finds incompatible or inapplicable with respect to an agreement or an ancillary agreement or instrument.
(3) (a) Before executing the agreement, in order to protect against future interest rate increases, the state, acting by and through the state treasurer and at the discretion of the state treasurer, may enter into an interest rate exchange agreement pursuant to article 59.3 of title 11. Such interest rate exchange agreement is a proposed public security for the purposes of article 59.3 of title 11. Any payments made by the state under an interest rate exchange agreement entered into pursuant to this subsection (3) must be made solely from money available to the state treasurer from the execution of the agreement entered into pursuant to subsection (2) of this section or from money described in subsection (2)(d) of this section.
(b) An interest rate exchange agreement entered into pursuant to this subsection (3) must also provide that the obligations of the state do not create state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt or any multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution.
(c) Any money received by the state under an interest rate exchange agreement entered into pursuant to this subsection (3) must be used to make payments on an agreement entered into pursuant to subsection (2) of this section or to pay the costs related to the purposes set forth in subsection (4) of this section for which an agreement was executed.
(4) The proceeds of an agreement entered into pursuant to subsection (2)(a) of this section must be used to fund capital construction costs related to the construction of the following facilities for the following institutions of higher education:
(a) University of northern Colorado's college of osteopathic medicine;
(b) Metropolitan state university of Denver's health institute tower that will increase health-care-related instructional and training capacity and expand programs in high-need areas related to health care;
(c) Colorado state university's veterinary health and education complex; and
(d) Trinidad state college's valley campus main building renovation that will increase capacity to provide allied health certificate and degree programs, address deferred maintenance, create an assembly space to serve the college and community, and allow critical student services to move to a more student-accessible location within the building.
Source: L. 2024: Entire section added, (HB 24-1231), ch. 143, p. 528, � 2, effective May 1.
Cross references: For the legislative declaration in HB 24-1231, see section 1 of chapter 143, Session Laws of Colorado 2024.