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First Regular Session

Sixty-first General Assembly

LLS NO. 97­0814.01D MTJ HOUSE BILL 97­1355

STATE OF COLORADO

BY REPRESENTATIVE Dean.

ENGROSSED

EDUCATION

A BILL FOR AN ACT

CONCERNING THE AUTHORIZATION OF THE USE OF PROCEEDS FROM CERTIFICATES OF PARTICIPATION SOLD BY SCHOOL DISTRICTS FOR PAYMENTS PURSUANT TO RENTAL AGREEMENTS.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Authorizes boards of education to use the proceeds from the issuance and sale of certificates of participation to pay or prepay for the rental of building or equipment.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  22­45­112.5, Colorado Revised Statutes, 1995 Repl. Vol., as amended, is amended to read:

22­45­112.5.  Sale of certificates of participation ­ use of proceeds ­ repeal. (1)  Notwithstanding the provisions of section 22­45­112:

(a)  All or any portion of the proceeds received by a school district from the issuance and sale of certificates of participation may, in the discretion of the board of education, be deposited into the district's pension or retirement fund AND USED FOR THE PURPOSES THEREOF; OR

(b) (I)  ALL OR ANY PORTION OF THE PROCEEDS RECEIVED BY A SCHOOL DISTRICT FROM THE ISSUANCE AND SALE OF CERTIFICATES OF PARTICIPATION UNDER THIS PARAGRAPH (b) MAY, IN THE DISCRETION OF THE BOARD OF EDUCATION, BE DEPOSITED INTO THE DISTRICT'S CAPITAL RESERVE FUND SUBJECT TO ALL OF THE FOLLOWING REQUIREMENTS:

(A)  NOTWITHSTANDING ANY LIMITATION ON EXPENDITURES FROM THE CAPITAL RESERVE FUND PURSUANT TO SECTION 22­45­103 (1) (c), THE ISSUANCE AND SALE OF CERTIFICATES OF PARTICIPATION IS FOR THE PURPOSE OF PAYING OR PREPAYING THE RENTAL OF A BUILDING OR EQUIPMENT.

(B)  THE ISSUANCE AND SALE OF CERTIFICATES OF PARTICIPATION IS IN AN AMOUNT NOT LESS THAN FOUR HUNDRED THOUSAND DOLLARS.

(C)  THE ISSUANCE AND SALE OF CERTIFICATES OF PARTICIPATION IS COMPLETED NO LATER THAN OCTOBER 1, 1997.

(D)  PAYMENTS ON THE CERTIFICATES OF PARTICIPATION SHALL BE SUBJECT TO ANNUAL APPROPRIATION FROM THE CAPITAL RESERVE FUND.

(II)  THIS PARAGRAPH (b) IS REPEALED, EFFECTIVE OCTOBER 1, 1997.

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.