As used in this article, unless the context otherwise requires:
(1) Authority means the Colorado health facilities authority created by this article.
(2) Board means the board of directors of the authority.
(3) Bond, note, bond anticipation note, or other obligation means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the authority pursuant to this article, including refunding bonds.
(4) Bond resolution means the resolution authorizing the issuance of, or providing terms and conditions related to, bonds issued under the provisions of this article and includes any trust agreement, trust indenture, indenture of mortgage, or deed of trust providing terms and conditions for such bonds.
(5) Costs, as applied to facilities financed in whole or in part under the provisions of this article, means and includes the sum total of all reasonable or necessary costs incidental to:
(a) The acquisition, construction, reconstruction, repair, alteration, equipment, enlargement, improvement, and extension of such facilities; and
(b) The acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interest acquired, necessary, or used for, or useful for or in connection with, a facility; and
(c) All other undertakings that the authority deems reasonable or necessary for the development of a facility, including, without limitation, the cost of or for:
(I) Studies and surveys;
(II) Land title and mortgage guaranty policies;
(III) Plans, specifications, and architectural and engineering services;
(IV) Legal, accounting, organization, marketing, or other special services;
(V) Financing, acquisition, demolition, construction, equipment, and site development of new and rehabilitated buildings;
(VI) Rehabilitation, reconstruction, repair, or remodeling of existing buildings; and
(VII) All other necessary and incidental expenses, including working capital and an initial bond and interest reserve funds, together with interest on bonds issued to finance such facilities to the extent permitted under applicable federal tax law.
(6) (a) Health facility or facility, in the case of a participating health institution, means any structure or building, whether such structure or building is located within the state or whether such structure or building is located outside the state if an out-of-state health institution that operates or manages such structure or building, or an affiliate of such institution, also operates or manages a health facility within this state, suitable for use as a hospital, clinic, nursing home, home for the aged or infirm, or other health-care facility; laboratory; pharmacy; laundry; nurses', doctors', or interns' residences; administration building; research facility; maintenance, storage, or utility facility; auditorium; dining hall; food service and preparation facility; mental or physical health-care facility; dental care facility; nursing school; medical or dental teaching facility; mental or physical health facilities related to any such structure or facility; or any other structure or facility required or useful for the operation of a health institution, including but not limited to offices, parking lots and garages, and other supporting service structures; and any equipment, furnishings, appurtenances, or other assets, tangible or intangible, including but not limited to assets related to the medical practice of a health-care professional, that are necessary or useful in the development, establishment, or operation of a participating health institution; and the acquisition, preparation, and development of all real and personal property necessary or convenient as a site or sites for any such structure or facility.
(b) Health facility or facility does not include the following:
(I) Food, fuel, supplies, or other items that are customarily considered as a current operating expense or charges;
(II) Property used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship; or
(III) Property used or to be used primarily in connection with any part of a program of a school or department of divinity of any religious denomination.
(7) (a) Health institution means a limited liability company controlled directly or indirectly by one or more nonprofit entities, a private nonprofit hospital, corporation, association, or institution, or a public hospital or institution authorized or permitted by law, whether directly or indirectly through one or more affiliates, to provide, operate, or manage one or more health facilities in this state or outside this state if such entity, or an affiliate of such entity, also operates or manages a health facility within this state.
(b) Health institution also includes a cooperative hospital service organization, as described in section 501 (e) of the Internal Revenue Code of 1986, as amended, or a similar corporation, whether or not such corporation is exempt from federal income taxation pursuant to said section 501 (e).
(c) (I) Health institution also includes a network of health-care providers, however organized; an integrated health-care delivery system; a joint venture or partnership between or among health-care providers; a health-care purchasing alliance; health insurers and third-party administrators that are participants in a system, network, joint venture, or partnership that provides health services; an organization whose primary purpose is to provide supporting services to one or more health institutions; or a health-care provider or such other health-care-related organization, or an affiliate of such organization, whose regional or national headquarters are located in this state.
(II) In order to be a health institution, a network, system, joint venture, partnership, alliance, provider, or organization described in subparagraph (I) of this paragraph (c) shall be a nonprofit entity or controlled by one or more nonprofit entities.
(7.5) Participating health institution means a health institution that undertakes the financing and construction or acquisition of health facilities or undertakes the refunding or refinancing of outstanding obligations in accordance with this article.
(8) Refinancing of outstanding obligations means liquidation, with the proceeds of bonds or notes issued by the authority, of any indebtedness of a participating health institution incurred prior to, on, or after July 1, 1977, to finance or aid in financing a lawful purpose of such health institution not financed pursuant to this article which would constitute a facility had it been undertaken and financed by the authority, or consolidation of such indebtedness with indebtedness of the authority incurred for a facility related to the purpose for which the indebtedness of the health institution was initially incurred.
(9) Revenues means, with respect to facilities, the rents, fees, charges, interest, principal repayments, and other income received or to be received by the authority from any source on account of such facilities.
Source: L. 77: Entire article added, p. 1305, � 1, effective July 1. L. 79: (5), (6)(a), and (7)(a) amended, p. 1075, � 1, effective May 25. L. 95: (6)(a) and (7)(a) amended, p. 573, � 1, effective July 1. L. 97: (6)(a) and (7)(a) amended, p. 419, � 2, effective August 6. L. 2007: (5) to (7) amended and (7.5) added, p. 411, � 2, effective August 3.
25-25-104. Colorado health facilities authority - creation - membership - appointment - terms - vacancies - removal. (1) There is hereby created an independent public body politic and corporate to be known as the Colorado health facilities authority. Said authority is constituted a public instrumentality, and its exercise of the powers conferred by this article shall be deemed and held to be the performance of an essential public function. The authority shall be a body corporate and a political subdivision of the state and shall not be an agency of state government and shall not be subject to administrative direction by any department, commission, board, or agency of the state.
(2) The governing body of the authority is a board of directors, which consists of seven members appointed by the governor, with the consent of the senate. The members shall be residents of the state. No more than four of the members may be affiliated with the same political party. Members of the board shall be appointed for terms of four years; except that the terms shall be staggered so that no more than three members' terms expire in the same year. Each member shall serve until the member's resignation or, in the case of a member whose term has expired, until a successor has been appointed. Any member shall be eligible for reappointment. The governor shall fill any vacancy by appointment for the remainder of an unexpired term.
(3) (a) Any member of the board may be removed by the governor for misfeasance, malfeasance, willful neglect of duty, or other cause.
(b) Notwithstanding the provisions of paragraph (a) of this subsection (3), a member shall be removed by the governor if such member fails, for reasons other than temporary mental or physical disability or illness, to attend three regular meetings of the board during any twelve-month period without the board having entered upon its minutes an approval for any of such absences.
Source: L. 77: Entire article added, p. 1306, � 1, effective July 1. L. 79: (3) amended, p. 1076, � 2, effective May 25. L. 83: (2) amended, p. 1109, � 1, effective May 25. L. 87: (2) amended, p. 911, � 23, effective June 15. L. 2022: (2) and (3)(a) amended, (SB 22-013), ch. 2, p. 61, � 84, effective February 25.
Cross references: For limitation on issuance of private activity bonds, see part 17 of article 32 of title 24; for the provisions which designate the Colorado health facilities authority as a special purpose authority for the purposes of � 20 of article X of the state constitution, see � 24-77-102 (15).
25-25-105. Organization meeting - chair - executive director - surety bond - conflict of interest. (1) A member of the board, designated by the governor, shall call and convene the initial organizational meeting of the board and shall serve as its chair pro tempore. At such meeting, appropriate bylaws shall be presented for adoption. The board's bylaws may provide for the election or appointment of officers, the delegation of certain powers and duties, and such other matters as the authority deems proper. At such meeting and annually thereafter, the board shall elect one of its members as chair and one as vice-chair. It shall appoint an executive director and, if desired, an associate executive director and any other officer designated by the board, who shall not be members of the board and who shall serve at its pleasure. They shall receive such compensation for their services as shall be fixed by the board.
(2) The executive director, the associate executive director, or any other person designated by the board shall keep a record of the board's proceedings and shall be custodian of all books, documents, and papers filed with the board, the minute books or journal, and the official seal of the authority. This person may make copies of the minutes and other records and documents of the board and may certify under the official seal of the authority that such copies are true copies. All persons dealing with the authority may rely on such certifications.
(3) The board may delegate, by resolution, to one or more of its members or to its executive director, associate executive director, or any other officer designated by the board, such powers and duties as it may deem proper.
(4) (a) Before the issuance of any bonds under this article, the executive director, associate executive director, and any other officer designated by the board shall each execute a surety bond in the penal sum of one hundred thousand dollars, and each member of the board shall execute a surety bond in the penal sum of fifty thousand dollars.
(b) In lieu of the surety bonds required by paragraph (a) of this subsection (4), the chair of the board may execute a blanket bond covering each member, the executive director, the associate executive director, and the employees or other officers of the authority.
(c) Each surety bond shall be conditioned upon the faithful performance of the duties of the office or offices covered and shall be executed by a surety authorized to transact business in this state as surety. The cost of each such bond shall be paid by the authority.
(5) Notwithstanding any other law to the contrary, it shall not constitute a conflict of interest for a trustee, director, officer, or employee of any health institution, financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architecture firm, insurance company, or other firm, person, or corporation to serve as a member of the board; except that such trustee, director, officer, or employee shall disclose such interest to the board and shall abstain from deliberation, action, and voting by the board in each instance where the business affiliation of any such trustee, director, officer, or employee is involved.
Source: L. 77: Entire article added, p. 1307, � 1, effective July 1. L. 78: (5) R&RE, p. 435, � 1, effective April 28. L. 79: (1) amended and (5) R&RE, p. 1076, 1079, �� 3, 1, effective May 25. L. 2007: (1) to (4) amended, p. 413, � 3, effective August 3.