SENATE 3rd Reading Unamended April 26, 2012 SENATE Amended 2nd Reading April 24, 2012Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 12-0277.01 Gregg Fraser x4325 SENATE BILL 12-101 SENATE SPONSORSHIP Nicholson, HOUSE SPONSORSHIP Bradford, Senate Committees House Committees Local Government Appropriations A BILL FOR AN ACT Concerning the authority of a local improvement district, and, in connection therewith, making an appropriation. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill modifies certain provisions of the law governing county and city and county local improvement districts (districts) to make the provisions consistent with the law governing improvement districts. Section 1 of the bill allows a district in which a sales tax is levied to include noncontiguous areas. Section 2 allows a district to use sales tax revenues for the organization, promotion, marketing, and management of public events. It further specifies procedures for a property owner to petition to be included in or excluded from a district. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 30-20-602, amend (2) as follows: 30-20-602. Definitions. As used in this part 6, unless the context otherwise requires: (2) "District" means the geographical division of the county or counties within which any local improvements are made or proposed, when so declared by resolution of the board. Except for a district in the unincorporated area of a county in which a sales tax is levied pursuant to section 30-20-604.5, There may be noncontiguous parts or sections of a county included in one district, but no district shall include territory that is included in an undissolved district that was formed for the same type of improvement. Notwithstanding any other provision of this part 6 and except in the case of a district formed prior to December 31, 2002, by a city that has been authorized to become a city and county pursuant to an amendment to the state constitution that has been approved by the registered electors of the state of Colorado, no district in which a sales tax is levied pursuant to section 30-20-604.5 shall be formed that includes territory within a municipality, and any such district shall be as compact as possible. Except as provided in section 30-20-603 (11.5) (b) (I), no district that crosses county boundaries may be formed by intergovernmental agreement or otherwise. SECTION 2. In Colorado Revised Statutes, 30-20-603, amend (1) (c); and add (2.5) as follows: 30-20-603. Improvements and funding authorized - how instituted - conditions. (1) (c) If any improvement or transportation services authorized by this subsection (1) are funded by sales tax, the tax may also be used for the operation and maintenance of such improvement or services, and for the production and distribution of informational products and materials, and for the organization, promotion, marketing, and management of public events. (2.5) (a) The boundaries of any district organized under the provisions of this part 6 may be changed in the manner prescribed in this subsection (2.5); except that the change of boundaries of the district shall not impair or affect the district's organization or rights in or to property or any of the district's rights or privileges whatsoever, nor shall the change affect or impair or discharge any contract, obligation, lien, or charge for or upon which the district might be liable or chargeable had any such change of boundaries not been made. The owners of property proposed to be included or excluded may file a petition with the board, in writing, requesting that such property be included in or excluded from the district. The petition shall describe the property owned by the petitioners and shall be verified. The petition shall be accompanied by a deposit of moneys sufficient to pay all costs of the inclusion or exclusion proceedings. The county clerk and recorder shall cause notice of the filing of such petition to be given and published, which notice shall state the filing of such petition, the names of the petitioners, descriptions of the property sought to be included or excluded, and the request of said petitioners. (b) The notice of the filing of a petition required by paragraph (a) of this subsection (2.5) shall inform all persons having objections to appear at the time and place stated in said notice and show cause why the petition should not be granted. The board, at the time and place mentioned in the notice or at any time to which the hearing may be adjourned, shall proceed to hear the petition and all objections thereto that may be presented by any person showing cause why said petition should not be granted. The failure of any interested person to show cause shall be deemed as an assent on the person's part to the inclusion or exclusion of such property as requested in the petition. (c) The board shall take into consideration and make a finding regarding all of the following factors when determining whether to grant or deny the petition: (I) The best interests of all of the following: (A) The property to be included or excluded in the local improvement district; (B) The local improvement district for which the change of boundaries is proposed; (C) The county or counties in which the local improvement district is located; (II) The relative cost and benefit to the property to be included in or excluded from the district; (III) The ability of the local improvement district to provide economical and sufficient improvements or services to both the property to be included or excluded and all of the properties within the district's boundaries. (d) If the change of boundaries of the district does not adversely affect the district and if the petition is granted, the board shall adopt an ordinance changing the boundaries of the district accordingly and file a certified copy of the ordinance with the county clerk and recorder of the county in which the property is located. Thereupon, said property is included in or excluded from the district as applicable. (e) All property included in or excluded from a district is subject to the levy of taxes, assessments, or both, for the payment of the property's proportionate share of any indebtedness of the district outstanding at the time of the property's inclusion or exclusion. SECTION 3. Appropriation. (1) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the department of revenue, for the fiscal year beginning July 1, 2012, the sum of $24,366, or so much thereof as may be necessary, to be allocated for the implementation of this act as follows: (a) $2,166 to the taxation business group, taxpayer service division for personal services; and (b) $22,200 for the purchase of computer center services. (2) In addition to any other appropriation, there is hereby appropriated to the governor - lieutenant governor - state planning and budgeting, for the fiscal year beginning July 1, 2012, the sum of $22,200, or so much thereof as may be necessary, for allocation to the office of information technology, for the provision of computer center services for the department of revenue related to the implementation of this act. Said sum is from reappropriated funds received from the department of revenue out of the appropriation made in paragraph (b) of subsection (1) of this section. SECTION 4. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 8, 2012, if adjournment sine die is on May 9, 2012); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2012 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.