First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0516.01 Bob Lackner x4350 SENATE BILL 13-037 SENATE SPONSORSHIP Crowder, HOUSE SPONSORSHIP (None), Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the creation of an authority to finance the purchase of real property in the Pinon Canyon maneuver site from the federal government. 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.) Under the bill, the general assembly requests the governor and attorney general of the state to commence negotiations with the United States government at the earliest practicable opportunity for the complete purchase by the state of all or any portion of the real property that constitutes the Pinon Canyon maneuver site (site), the military training area belonging to Fort Carson covering approximately 236,000 acres that is located in southeastern Colorado. Within 180 days following the execution by the United States government and the state of Colorado of an agreement pursuant to which the United States government conveys to the state of Colorado full legal title to all or any portion of the real property within the site, an authority to be known as the Pinon Canyon maneuver site land purchase authority (authority) must be created. The bill makes clear that neither creation of the authority nor any other act is required prior to, or in the absence of, such agreement. The authority is to be governed by a 7-person board of directors (board), and the bill contains procedures governing the appointments to, organization, and administration of the board. The bill specifies the general purposes of the authority. The bill specifies the mission of the authority as performance of the following duties and responsibilities: To take possession of such property sold to the state in preparation for the ultimate sale of such property to landowners, upon execution of an agreement with the United States government under which the United States government agrees to sell to the state all or any portion of the site. Issue bonds in an amount sufficient to finance the acquisition of the real property located within the site, which costs of acquisition must meet but not exceed 100% of the appraised value of the real property. To offer and to arrange for sale any real property within the site the full legal title to which has been conveyed by the United States government to the state. To make recommendations to the general assembly concerning statutory modifications or other public policy changes as will, in the judgment of the authority, encourage agricultural production in southeastern Colorado. During a 2-year period commencing with the conveyance of any particular parcel of real property to the state from the federal government, the authority must first extend an offer to purchase such parcel to the previous owners of such land and, if such owners are no longer living, to their heirs. If there are no such heirs, or if any living heirs decline to purchase such property, the authority must next extend an offer to purchase an ownership interest in such parcel to agricultural producers residing in the counties of Baca, Bent, Crowley, Kiowa, Las Animas, Otero, or Prowers. If there are no agricultural producers meeting these requirements who express an interest in purchasing the property, the authority must next extend an offer to purchase the property to any person, whether private or public. Upon the completion of any such 2-year period, the authority may extend an offer to purchase the property to any person, whether public or private. To enable persons to finance their acquisition of individual parcels, the authority is permitted to extend loans or related financing instruments to such persons secured by a mortgage or other security instrument to be held by the authority. The interest rate on such loans must be set at a rate that is 2% above the interest rate on the bonds issued by the authority to finance acquisition of the site. The authority is required to impose such additional terms and conditions on any loan, mortgage, or other security instrument as the authority determines is adequate to secure repayment of the loan. Any revenues accruing to the authority resulting from the differential between the moneys the state pays in interest on the bonds to acquire the site and the interest rate the state charges on loans to landowners to purchase individual parcels within the site is required to be used to cover administrative expenses of creating, operating, and administering the authority. Any excess revenues after all administrative expenses have been met must be transferred to the state treasurer to finance veterans programs operated by the state. Additional provisions in the bill regulate the issuance of bonds and notes by the authority and matters such as the rights of obligees and bondholders, investments by the authority, proceeds as trust funds, expenses of the authority, the conveyance of title, and the release of liens. The authority is required to keep an accurate account of all its activities and its receipts and expenditures and is further required to annually make a report concerning these matters to the board and to the state auditor. The report is to include any recommendations with reference to additional legislation or other action that may be necessary to carry out the purpose of the authority. The state auditor is permitted to investigate the affairs of the authority. The bill repeals creation of the authority, effective July 1, 2028. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 4 to title 3 as follows: ARTICLE 4 Pinon Canyon Maneuver Site Land Purchase Authority 3-4-101. Short title. This article shall be known and may be cited as the "Pinon Canyon Maneuver Site Land Purchase Authority Act". 3-4-102. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) The Pinon Canyon maneuver site, located on over two hundred thirty-five thousand acres in southeastern Colorado, opened in 1985. The site, combined with Fort Carson's training areas, is the second-largest department of defense maneuver training site in the nation for soldiers from Fort Carson and other military bases. (b) The Pinon Canyon maneuver site contains magnificent prairie and canyon lands. Home to a diverse ecosystem, the site contains big and small game, fisheries, and other non-game wildlife. Beyond the vast array of animal ecology present in the area, the site also displays forest, rangeland, and mineral resources. Bounded on the east by the red Purgatoire river canyon, the Pinon Canyon maneuver site exposes years of geological processes, sandstone formations, and scenic waterways. Further, the Pinon Canyon maneuver site provides demonstrable evidence of almost four thousand years of human history. Several hundred properties on the site are eligible for designation on the national register of historic places, including ninety-eight archeological sites. The undeveloped nature of the site offers a unique and unparalleled opportunity to study the development of life on the planet from dinosaurs to settlements of American Indians to settlements of explorers, trappers, traders, farmers, and ranchers in more recent time. (c) Prior to the creation of the Pinon Canyon maneuver site, this land area was lightly populated and devoted almost exclusively to ranching and livestock grazing, sometimes by families that had owned their land within the site area for generations. Purchase of the land area that became the Pinon Canyon maneuver site was completed in 1983. Approximately one-half of the land area that became the site was acquired by the department of the Army by condemnation as many landowners were unwilling sellers. (d) The optimal way to ensure that the magnificent and rare natural and human treasures of the Pinon Canyon maneuver site are preserved for future generations would be for the federal government to sell the site to the state that will, in turn, sell individual parcels to landowners who will maintain the real property consistent with its historic uses. To bring about this result, the general assembly hereby requests that the governor and attorney general of the state commence negotiations with the United States government for the purchase by the state of the Pinon Canyon maneuver site. If the United States government ever enters into an agreement with the state to accomplish such purchase, and only upon the execution of such agreement, this article creates an authority that is empowered, among other things, to issue bonds to finance the sale of the entire site to the state. The bonds are to be repaid with proceeds from the sale of individual parcels within the site to property owners. (e) Upon satisfaction of the conditions specified in this article, it is the intent of the general assembly to create the Pinon Canyon maneuver site land purchase authority to finance the acquisition of property within the site for its ultimate sale to landowners in accordance with the procedures and subject to the requirements specified in this article to the end that all of the extraordinary and unique geological, historical, archeological, and agricultural features of the site will be maintained for the welfare of, and responsible use by, future generations. (2) This article shall be liberally construed to accomplish the intentions expressed in subsection (1) of this section. 3-4-103. Definitions. As used in this article, unless the context otherwise requires: (1) "Agricultural producer" means one who engages in farming or ranching as well as an employee of a farm or ranch with not less than two years experience in farming or ranching at the time he or she seeks to acquire real property within the site from the authority. (2) "Authority" means the Pinon Canyon maneuver site land purchase authority created by this article. (3) "Board" means the board of directors of the authority. (4) "Heir" means a child or grandchild of an individual owning real property located within the site from whom the department of the Army acquired the property in or prior to 1983 in connection with assembling the land area that would constitute the site. (5) "Pinon Canyon maneuver site" means the military training area belonging to Fort Carson covering approximately two hundred thirty-six thousand acres that is located in southeastern Colorado. (6) "Site" means the Pinon Canyon maneuver site. 3-4-104. Negotiations with the United States government - purchase agreement - no action under article in absence of purchase agreement. (1) The general assembly hereby requests the governor and attorney general of the state to commence negotiations with the United States government at the earliest practicable opportunity for the complete purchase by the state of all or any portion of the real property that constitutes the site. (2) Notwithstanding any other provision of law, neither creation of the authority nor any other act specified in this article is required prior to, or in the absence of, an agreement in the form described in subsection (1) of this section. 3-4-105. Authority - creation - board - organization. (1) Within one-hundred eighty days following the execution by the United States government and the state of an agreement pursuant to which the United States government conveys to the state full legal title to all or any portion of the real property within the site, an independent public body politic and corporate to be known as the Pinon Canyon maneuver site land purchase authority must be created. The authority is constituted as a public instrumentality, and its exercise of the powers conferred by this article are deemed and held to be the performance of an essential public function. The authority is a body corporate and a political subdivision of the state, is not an agency of state government, and is not 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 to be appointed by the governor, with the consent of the senate. The members shall be residents of the state. No more than four members of the board shall be of the same political party. As designated by the governor, three members of the board first appointed shall serve for a term of six years each. The other four members of the board first appointed, as designated by the governor, shall serve for a term of four years each. Thereafter, all members of the board shall be appointed for a term of four years. Following the expiration of a member's initial term of service, whether four or six years respectively, the member is eligible for reappointment to a single additional four-year term. Each member shall serve until his or her resignation or, in the case of a member whose term has expired, until his or her successor has been appointed. The governor shall fill any vacancy on the board by appointment for the remainder of an unexpired term. Any member appointed by the governor when the general assembly is not in regular session, whether appointed for an unexpired term or for a full term, is deemed to be duly appointed and qualified until the appointment of such member is approved or rejected by the senate. Any such appointment is to be submitted to the senate for its approval or rejection during the next regular session of the general assembly following the appointment. (3) (a) Any member of the board may be removed by the governor for misfeasance, malfeasance, willful neglect of duty, or other cause, after notice and a public hearing, unless such notice and hearing is expressly waived in writing. (b) Notwithstanding the provisions of paragraph (a) of this subsection (3), a member shall be removed by the governor if the 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 such absences. 3-4-106. Organizational 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 must be presented for adoption. The 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 who shall not be a member of the board and who shall serve at its pleasure. The executive director shall receive such compensation for his or her services as the board shall approve. (2) The executive director or any other person designated by the board shall keep a record of the proceedings thereof and shall be custodian of all books, documents, and papers filed with the board, the minute books or journal thereof, and its official seal. The executive director or his or her designee may copy all minutes and other records and documents of the board and may give certificates under the official seal of the authority to the effect that such copies are true copies, and all persons dealing with the authority may rely on such certificates. (3) The board may delegate, by resolution, to one or more of its members or to its executive director such powers and duties as it may deem proper. (4) Notwithstanding any other provision of law, it is not a conflict of interest for a trustee, director, officer, or employee of any financial institution, investment banking firm, brokerage firm, commercial bank or trust company, architectural firm, 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 may 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. 3-4-107. Meetings of board - quorum - expenses. (1) Four members of the board shall constitute a quorum for the purpose of conducting business and exercising its powers. Action may be taken by the board upon the affirmative vote of at least four of its members. No vacancy in the membership of the board shall impair the right of a quorum to exercise all the rights and perform all the duties of the board. (2) All meetings of the board shall be subject to the provisions of section 24-6-402, C.R.S. Notice of meetings shall be as provided in the bylaws of the authority. Resolutions need not be published or posted, but resolutions and all proceedings and other acts of the board constitute a public record. (3) Members of the board shall receive no compensation for their services but shall be entitled to reimbursement for all necessary expenses, including traveling and lodging expenses, incurred in the performance of their official duties under this article. Any payments to board members for their expenses under this subsection (3) shall be paid from funds of the authority. 3-4-108. General powers of the authority. (1) In addition to any other powers granted to the authority by this article, the authority has the following powers: (a) To have the duties, privileges, immunities, rights, liabilities, and disabilities of a body corporate and political subdivision of the state; (b) To have perpetual existence and succession; (c) To adopt, have, and use a seal and to alter the same at its pleasure; (d) To sue and be sued; (e) To enter into any contract or agreement not inconsistent with this article or the laws of this state and to authorize the executive director to enter into contracts, execute all instruments, and do all things necessary or convenient in the exercise of the powers granted in this article and to secure the payment of bonds; (f) To borrow money and to issue bonds, notes, bond anticipation notes, or other obligations for any of its corporate purposes and to fund or refund the same, all as provided for in this article; (g) To purchase, lease, trade, exchange, or otherwise acquire, maintain, hold, improve, mortgage, lease, sell, and dispose of personal property, whether tangible or intangible, or any interest therein; and to purchase, lease, trade, exchange, or otherwise acquire real property or any interest therein and to maintain, hold, improve, mortgage, lease, or otherwise transfer such real property, so long as such transactions do not interfere with the mission of the authority as specified in section 3-4-109; (h) To acquire space, equipment, services, supplies, and insurance necessary to carry out the purposes of this article; (i) To deposit any moneys of the authority in any banking institution within the state or in any depository authorized in section 24-75-603, C.R.S., and to appoint, for the purpose of making such deposits, one or more persons to act as custodians of the moneys of the authority, who shall give surety bonds in such amounts and form and for such purposes as the board requires; (j) To contract for and to accept any gifts, grants, or loans of funds, property, or any other aid in any form from the federal government, the state, any state agency, or any other source, or any combination thereof, and to comply, subject to the provisions of this article, with the terms and conditions thereof; (k) To have and exercise all rights and powers necessary or incidental to or implied from the specific powers granted in this article, which specific powers shall not be considered as a limitation upon any power necessary or appropriate to carry out the purposes and intent of this article; (l) To fix the time and place or places at which its regular and special meetings are to be held. Meetings shall be held on the call of the chair, but no less than six meetings shall be held annually. (m) To adopt and from time to time amend or repeal bylaws and rules and regulations consistent with the provisions of this article; except that article 4 of this title does not apply to the promulgation of any policies, procedures, rules, or regulations of the authority; (n) To appoint a treasurer of the board and such other officers as the board may determine and provide for their duties and terms of office; (o) To appoint an executive director and such agents, employees, and professional and business advisers as may from time to time be necessary in its judgment to accomplish the purposes of this article, to fix the compensation of the executive director, employees, agents, and advisers, and to establish the powers and duties of all such agents, employees, and other persons contracting with the authority; (p) To waive, by such means as the authority deems appropriate, the exemption from federal income taxation of interest on the authority's bonds, notes, or other obligations provided by the federal "Internal Revenue Code of 1986", as amended, or any other federal statute providing a similar exemption; (q) To make and execute agreements, contracts, or other instruments necessary or convenient to the exercise of the powers and functions of the authority under this article, including but not limited to contracts with any person, firm, corporation, state agency, local government, or other entity. All state agencies and local governments are hereby authorized to enter into and do all things necessary to perform any such arrangement or contract with the authority. (r) To arrange for guaranties or insurance of its bonds, notes, or other obligations by the federal government or by any private insurer, and to pay any premiums therefor; and (s) To do all other things necessary and convenient to carry out the purposes of this article. 3-4-109. Mission of the authority. (1) The mission of the authority is to: (a) Upon execution of an agreement with the United States government under which the United States government agrees to sell to the state all or any portion of the site, take possession of such property sold to the state in preparation for the ultimate sale of such property to landowners; (b) Issue bonds satisfying the requirements of this article in an amount sufficient to finance the acquisition of the real property located within the site, which costs of acquisition must meet but not exceed one hundred percent of the appraised value of the real property; (c) To offer and to arrange for sale any real property within the site the full legal title to which has been conveyed by the United States government to the state. Such sales shall satisfy the requirements of section 3-4-110; and (d) To make recommendations to the general assembly concerning statutory modifications or other public policy changes as will, in the judgment of the authority, encourage agricultural production in southeastern Colorado. 3-4-110. Sale by the state of real property within the site. (1) The authority shall offer and arrange for the sale of all real property within the site the full legal title to which has been conveyed by the United States government to the state. During a two-year period commencing with the conveyance of any particular parcel of real property to the state from the federal government, the authority must first extend an offer to purchase such parcel to the previous owners of such land and, if such owners are no longer living, to their heirs. If there are no such heirs, or if any living heirs decline to purchase such property, the authority must next extend an offer to purchase an ownership interest in such parcel to agricultural producers. If there are no agricultural producers meeting these requirements who express an interest in purchasing the property, the authority must next extend an offer to purchase the property to any person, whether private or public. Upon the completion of any such two-year period, the authority may extend an offer to purchase the property to any person, whether public or private. (2) To enable persons to finance their acquisition of individual parcels pursuant to subsection (1) of this section, the authority may extend loans or related financing instruments to such persons secured by a mortgage or other security instrument to be held by the authority. The interest rate on such loans must be set at a rate that is two percent above the interest rate on the bonds issued by the authority to finance acquisition of the site. The authority shall impose such additional terms and conditions on any loan, mortgage, or other security instrument as the authority determines to be adequate to secure repayment of the loan. (3) Any revenues accruing to the authority resulting from the differential between the moneys the state pays in interest on the bonds to acquire the site and the interest rate the state charges on loans to landowners to purchase individual parcels within the site shall first be used to cover administrative expenses of creating, operating, and administering the authority. Any excess revenues after all administrative expenses have been met must be transferred to the state treasurer to finance veterans programs operated by the state. 3-4-111. Acquisition of property. The authority may acquire by purchase, lease, gift, devise, or other means such lands, structures, real or personal property, rights-of-way, franchises, easements, and other interests in lands, including lands lying under water and riparian rights which are located within or without the state, as it may deem necessary or convenient to carry out the purposes of this article, upon such terms as may be considered by the authority to be reasonable, and may take title thereto in the name of the authority. 3-4-112. Bonds and notes. (1) The authority may, from time to time, issue bonds and notes for any of its corporate purposes. The bonds and notes shall be issued pursuant to resolution of the board. All bonds issued by the authority must be payable solely out of the revenues and receipts derived from the leasing, mortgaging, or sale by the authority of any real property within the site it has purchased from the United States government for ultimate conveyance to other persons in accordance with the requirements of section 3-4-110. (2) Bonds of the authority, as provided in the resolution of the authority under which the bonds are authorized or as provided in a trust indenture between the authority and any commercial or trust company having full trust powers, may: (a) Be executed and delivered by the authority in the form, denominations, upon the terms and maturities, and at the times established by the board; (b) Be subject to optional or mandatory redemption prior to maturity with or without a premium; (c) Be in fully registered form or bearer form registerable as to principal or interest or both; (d) Bear such conversion privileges and be payable in such installments and at such times not exceeding twenty years from the date of issuance as established by the board; (e) Be payable at such place or places whether within or without the state as established by the board; (f) Bear interest at such rate or rates per annum, which may be fixed or vary according to index, procedure, or formula or as determined by the authority or its agents without regard to any interest rate limitation appearing in any other law of the state; (g) Be subject to purchase at the option of the holder of a bond or note or of the board; (h) Be evidenced in the manner established by the board, and executed by the officers of the authority, including the use of one or more facsimile signatures so long as at least one manual signature appears on the bonds, which may be either of an officer of the authority or of an agent authenticating the same; (i) Be in the form of coupon bonds that have attached interest coupons bearing a manual or a facsimile signature of an officer of the authority; and (j) Contain any other provisions not inconsistent with this article. (3) The bonds may be sold at public or private sale at the price or prices, in the manner, and at the times as determined by the board, and the board may pay all fees, expenses, and commissions that it deems necessary or advantageous in connection with the sale of the bonds. The power to fix the date of sale of the bonds, to receive bids or proposals, to award and sell bonds, to fix interest rates, and to take all other action necessary to sell and deliver the bonds may be delegated to an officer or agent of the authority. Any outstanding bonds may be refunded by the authority pursuant to article 56 of title 11, C.R.S. All bonds and any interest coupons applicable thereto are declared to be negotiable instruments. (4) The resolution or trust indenture authorizing the issuance of the bonds or notes may pledge all or a portion of the property or revenues of the authority, may contain such provisions for protecting and enforcing the rights and remedies of holders of any of the bonds or notes as the authority deems appropriate, may set forth the rights and remedies of the holders of any of the bonds or notes, and may contain provisions that the authority deems appropriate for the security of the holders of the bonds or notes, including but not limited to provisions for letters of credit, insurance, standby credit agreements, or other forms of credit ensuring timely payment of the bonds or notes, including the redemption price or the purchase price. (5) Any pledge of revenues or property made by the authority or by any person or governmental unit with which the authority contracts shall be valid and binding from the time the pledge is made. The revenues or property so pledged shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of such pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party, regardless of whether the party has notice of such lien. The instrument by which the pledge is created need not be recorded or filed. (6) Neither the members of the board, employees of the authority, nor any person executing the bonds shall be liable personally on the bonds or notes or subject to any personal liability or accountability by reason of the issuance thereof. (7) Bonds and notes issued by the authority shall not constitute or become an indebtedness, a debt, or a liability of the state. The bonds shall contain on the face thereof a statement to such effect. (8) The authority may purchase its bonds or notes out of any available moneys and may hold, pledge, cancel, or resell such bonds and notes subject to and in accordance with agreements with the holders thereof. (9) The authority is hereby declared to be a public instrumentality of the state, performing a public function for the benefit of the people of the state. Accordingly, the income or other revenues of the authority, all properties at any time owned by the authority, any bonds, notes, or other obligations issued pursuant to this article and the transfer thereof and the income therefrom, including any profit made on the sale thereof, and all mortgages, leases, trust indentures, and other documents issued in connection therewith shall be exempt at all times from all taxation and assessments of the state or any agency, political subdivision, or instrumentality of the state. 3-4-113. Agreement of the state not to limit or alter rights of obligees. The state hereby pledges and agrees with the holders of any bonds or notes issued under this article and with those parties who enter into contract with the authority that the state will not limit, alter, restrict, or impair the rights vested in the authority or the rights or obligations of any person with which it contracts to fulfill the terms of any agreements made pursuant to this article. The state further agrees that it will not in any way impair the rights or remedies of the holders of any bonds or notes of the authority until such bonds or notes have been paid or until adequate provision for payment has been made. The authority may include this provision and undertaking for the state in such bonds or notes. 3-4-114. Investments. The authority may invest or deposit any moneys in the manner provided by part 6 of article 75 of title 24, C.R.S. In addition, the authority may direct a corporate trustee that holds moneys of the authority to invest or deposit such moneys in investments or deposits other than those specified by said part 6 if the board determines, by resolution, that the investment or deposit meets the standard established in section 15-1-304, C.R.S., and the income is at least comparable to income available on investments or deposits specified by said part 6. 3-4-115. Bonds eligible for investment. All banks, trust companies, savings and loan associations, insurance companies, executors, administrators, guardian trustees, and other fiduciaries may legally invest any moneys within their control in any bonds issued under this article. Public entities, as defined in section 24-75-601 (1), C.R.S., may invest public funds in such bonds only if the bonds satisfy the investment requirements established in part 6 of article 75 of title 24, C.R.S. 3-4-116. Proceeds as trust funds. All moneys received pursuant to this article, whether as proceeds from the sale of bonds, notes, or other obligations or as revenues or receipts, shall be deemed to be trust funds to be held and applied solely as provided in this article. Any officer, bank, or trust company with which such moneys are deposited shall act as trustee of such moneys and shall hold and apply the same for the purposes of this article, subject to such regulations as the authority and the resolution authorizing the bonds, notes, or other obligations of any issue or the trust agreement securing such obligations provides. 3-4-117. Expenses of authority. All expenses of the authority incurred in carrying out the provisions of this article shall be payable solely from funds provided pursuant to this article, and no liability shall be incurred by the authority beyond the moneys that are provided pursuant to this article; except that, for the purposes of meeting the necessary expenses of initial organization and operation until such date as the authority derives moneys from funds provided pursuant to this article, the authority may borrow such moneys as may be required for the necessary expenses of organization and operation. Such borrowed moneys shall be repaid within a reasonable time after the authority receives funds provided pursuant to this article. 3-4-118. Conveyance of title - release of lien. When the principal of and interest on bonds issued by the authority to finance the purchase of the acquisition of the site, including any refunding bonds issued to refund and refinance such bonds, have been fully paid and retired or when adequate provision has been made to fully pay and retire the same and when all other conditions of the resolution, the lease, the trust indenture, and the mortgage, deed of trust, or other form of security arrangement, if any, authorizing and securing the same have been satisfied, the authority shall promptly do all things and execute such deeds, conveyances, and other documents as are necessary and required to release the lien of such mortgage, deed of trust, or other form of security arrangement in accordance with the provisions thereof. 3-4-119. Enforcement of rights of bondholders. Any holder of bonds issued pursuant to this article or a trustee under a trust agreement, trust indenture, indenture of mortgage, or deed of trust entered into pursuant to this article, except to the extent that his or her rights are restricted by any bond resolution, may protect and enforce, by any suitable form of legal proceedings, any rights under the laws of this state or granted by the bond resolution. Such rights include the right to compel the performance of all duties of the authority required by this article or the bond resolution; to enjoin unlawful activities; and, in the event of default with respect to the payment of the principal of and premium, if any, and interest on any bond or in the performance of any covenant or agreement on the part of the authority in the bond resolution, to apply to a court having jurisdiction of the cause to appoint a receiver to administer and operate the facility, the revenues of which are pledged to the payment of the principal of and premium, if any, and interest on such bonds, with full power to pay, and to provide for the payment of the principal of and premium, if any, and interest on such bonds, with such powers, subject to the direction of the court, as are permitted by law and are accorded receivers in general equity cases, but excluding any power to pledge additional revenues of the authority to the payment of such principal, premium, and interest. 3-4-120. Account of activities and receipts for expenditures - report - financial and performance audits. (1) The authority shall keep an accurate account of all its activities and its receipts and expenditures and shall annually, in the month of January, make a report thereof to the board and to the state auditor, in a form prescribed by the state auditor. Also included in the report shall be any recommendations with reference to additional legislation or other action that may be necessary to carry out the purpose of the authority. The state auditor may investigate the affairs of the authority, may severally examine the properties and records of the authority, and may prescribe methods of accounting and the rendering of periodical reports in relation to activities undertaken by the authority. (2) If a financial audit of the authority is conducted by an independent certified public accountant pursuant to a contract with the authority, any statements, records, schedules, working papers, and memoranda prepared by the certified public accountant shall be made available to the office of the state auditor and shall be kept confidential unless a majority of the members of the legislative audit committee vote to open such documents. (3) Upon the completion of a financial or performance audit described in subsection (1) of this section or in section 2-3-103 (1) (b), C.R.S., the state auditor shall submit a written report to the legislative audit committee, together with any findings and recommendations. (4) The cost of such financial audit shall be paid by the authority. The cost of any such performance audit shall be paid from annual appropriations made by the general assembly to the office of the state auditor. 3-4-121. Powers of authority not restricted - law complete in itself. This article shall not be construed as a restriction or limitation upon any powers that the authority might otherwise have under any laws of this state but shall be construed as cumulative of any such powers. No proceedings, referendum, notice, or approval shall be required for the creation of the authority or the issuance of any bonds or any instrument as security therefor unless so provided in this article; except that nothing in this article shall be construed to deprive the state and its political subdivisions of their respective police powers over properties of the authority or to impair any power with respect to any official or agency of the state and its political subdivisions that may be otherwise provided by law. 3-4-122. Powers in addition to those granted by other laws. The powers conferred by this article are in addition and supplementary to, and the limitations imposed by this article do not affect the powers conferred by, any other law except as provided in this article. 3-4-123. Repeal of article. This article is repealed, effective July 1, 2028. SECTION 2. 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 7, 2013, if adjournment sine die is on May 8, 2013); 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 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.