NOTE: The governor signed this measure on 3/31/2016.
      
      
      SENATE BILL 16-121
      
      
      BY SENATOR(S) Tate, Aguilar, Baumgardner, Cooke, Grantham, Heath,
      Hill, Holbert, Jahn, Johnston, Lambert, Lundberg, Martinez Humenik,
      Newell, Roberts, Scheffel, Scott, Todd;
      also REPRESENTATIVE(S) Garnett, Brown, Coram, Fields, Kagan,
      Kraft-Tharp, Lontine, Melton, Mitsch Bush, Pabon, Pettersen, Priola,
      Roupe, Ryden, Vigil, Wist, Young, Hullinghorst.
      
      
      Concerning the percentage of tuition revenue that an institution
           of higher education is authorized to pledge for contracts
           for the advancement of money.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 23-5-103, amend (1)
      as follows:
      
           23-5-103.  Pledge of income. (1) (a)  The governing board of any
      one or more state educational institutions, including, but not limited to, the
      state colleges under the control and operation of their respective boards of
      trustees, that enters into such a contract for the advancement of moneys
      money is authorized, in connection with or as a part of such contract, to
      pledge the net income derived or to be derived from such land or facilities
      so constructed, acquired, and equipped as security for the repayment of the
      moneys money advanced therefor, together with interest thereon, and for
      the establishment and maintenance of reserves in connection therewith;
      and, for the same purpose, any such governing board is also authorized,
      subject to the limitations specified in section 23-5-119.5 (5), to pledge the
      net income derived or to be derived from other facilities that are included
      in a designated enterprise or, if not included, other facilities that are not
      acquired and not to be acquired with moneys money appropriated to the
      institution by the state of Colorado, and to pledge the net income, fees, and
      revenues derived from such sources, if unpledged, or, if pledged, the net
      income, fees, and revenues currently in excess of the amount required to
      meet principal, interest, and reserve requirements in connection with
      outstanding obligations to which such net income, fees, and revenues have
      theretofore been pledged. Except as provided in paragraph (b) of this
      subsection (1), a governing board of an institution or group of institutions
      designated as an enterprise pursuant to section 23-5-101.7 that has entered
      into a contract for the advancement of money on behalf of such an
      institution or group of institutions may pledge up to ten percent of tuition
      revenues of such an enterprise, except for general fund moneys money
      appropriated by the general assembly, and all or a portion of a facility
      construction fee that may be imposed as security for the repayment of the
      moneys money advanced pursuant to said contract. The pledge of tuition
      revenues or the imposition of a facility construction fee shall include a
      process for student input consistent with the institutional plan for student
      fees adopted by the governing board of the applicable institution pursuant
      to section 23-5-119.5.
      
           (b)  Commencing on and after the effective date of this
      paragraph (b), a governing board of an institution or group of
      institutions designated as an enterprise pursuant to section
      23-5-101.7 that has entered into a contract for the advancement
      of money on behalf of the institution or group of institutions may
      pledge up to one hundred percent of tuition revenues of the
      enterprise, except for general fund money appropriated by the
      general assembly, if:
      
           (I)  The contract for the advancement of money for which
      the institution is pledging tuition revenue is not subject to the
      higher education revenue bond intercept program set forth in
      section 23-5-139; and
      
           (II)  The institution is not a party to any existing contract
      for the advancement of money on behalf of the institution or
      group of institutions that is subject to the higher education
      revenue bond intercept program set forth in section 23-5-139.
      
           SECTION 2.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ____________________________  ____________________________
      Bill L. Cadman                Dickey Lee Hullinghorst
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Effie Ameen                            Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO