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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0010.01 DLC HOUSE BILL 98­1069

STATE OF COLORADO

BY REPRESENTATIVE George

LOCAL GOVERNMENT

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE ESTABLISHMENT OF THE LOCAL GOVERNMENT GROWTH ASSISTANCE PROGRAM TO PROVIDE FINANCIAL ASSISTANCE TO GROWTH­IMPACTED LOCAL GOVERNMENTAL ENTITIES, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Bill Summary

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

Establishes a pilot program that authorizes governmental entities, where at least one entity is a growth county and another is a subsidizing county and at least one city or town located in each of the counties participates, to enter into intergovernmental agreements for up to 5 years whereby the governmental entities agree to allocate state grants and loans for certain growth­related purposes.

Requires that such agreements establish a method for allocating moneys to the governmental entities that are parties to the agreement, specify the amount of matching funds for which the parties are obligated, and provide for the treatment of moneys that are made available but not expended for purposes of section 20 of article X of the state constitution. Provides that no agreement may be entered into after July 1, 1999. Specifies the qualifications for growth and subsidizing counties and designates certain counties as growth counties for purposes of the pilot program. Requires the executive director of the department of local affairs to certify and approve agreements pursuant to specified criteria. Provides for parties to an agreement to apply to the executive director for grants and loans from moneys in the local government growth assistance fund, which is created in the state treasury. Upon considering recommendations by the local government growth assistance advisory committee, authorizes the executive director of the department of local affairs to award grants and make loans to parties of an approved agreement. Specifies that no grant shall be awarded or loan made unless the parties to the agreement provide matching funds. Sets limits on the amount of grants and loans that may be made available for each agreement individually and for all agreements during a given fiscal year. Creates the local government growth assistance advisory committee and specifies its membership and duties.

Provides for the creation of local growth impact funds, along with local boards of trustees to manage the local growth impact funds, and requires the boards to prepare annual reports of the conditions of the local growth impact funds. Requires the executive director to make annual reports to the governor and local government committees of the senate and the house of representatives regarding the status of all agreements, all grants and loans made pursuant to the program, and the condition of local growth impact funds. Authorizes the executive director of the department of local affairs to promulgate rules for the implementation of the pilot program.

Repeals the pilot program, effective July 1, 2004. Makes an appropriation.

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

SECTION 1.  Article 1 of title 29, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:

PART 10

LOCAL GOVERNMENT GROWTH

ASSISTANCE PROGRAM

29­1­1001.  Legislative declaration. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT GROWTH IN THE STATE OF COLORADO IS A CONCERN AT BOTH THE STATE AND LOCAL LEVELS BECAUSE THE STATE AS A WHOLE IS AFFECTED BY SUCH GROWTH AND BECAUSE THE APPROPRIATE METHOD OF ADDRESSING ISSUES CAUSED BY GROWTH DEPENDS ON THE UNIQUE CHARACTERISTICS OF EACH AFFECTED AREA AND THE NATURE OF THE GROWTH.

(2)  THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:

(a)  IN CERTAIN AREAS OF THE STATE, GROWTH PATTERNS HAVE DEVELOPED IN WHICH INDIVIDUALS WORK IN JURISDICTIONS THAT GENERATE AN AMOUNT OF REVENUE FOR THE STATE THAT EXCEEDS THE STATEWIDE PER CAPITA AVERAGE BUT RESIDE IN JURISDICTIONS THAT GENERATE AN AMOUNT OF REVENUE FOR THE STATE THAT IS LESS THAN THE STATEWIDE PER CAPITA AVERAGE;

(b)  SUCH GROWTH PATTERNS ALSO DISPROPORTIONATELY IMPACT THE AMOUNT OF REVENUES GENERATED FOR THE LOCAL JURISDICTIONS THROUGH THEIR LOCALLY IMPOSED TAXES;

(c)  THIS SITUATION CAN RESULT IN WHAT AMOUNTS TO A SUBSIDY IN PROVIDING FOR SCHOOLS, SOCIAL SERVICES, POLICE AND FIRE SERVICES, STREETS AND HIGHWAYS, AFFORDABLE HOUSING, WATER, WASTEWATER TREATMENT, SOLID WASTE DISPOSAL, AND OTHER SERVICES FROM THE JURISDICTIONS WHERE INDIVIDUALS RESIDE TO THE JURISDICTIONS WHERE THEY WORK;

(d)  IT IS DESIRABLE TO ENHANCE THE BALANCE OF REVENUES AVAILABLE IN SUCH GROWTH­IMPACTED REGIONS OF THE STATE WHILE ENSURING THAT THE POWER, AUTHORITY, AND RESOURCES TO DESIGN SPECIFIC SOLUTIONS TO ADDRESS THE PROBLEMS CREATED BY GROWTH REMAIN IN THE HANDS OF THE LOCAL JURISDICTIONS THAT ARE IN THE BEST POSITION TO EVALUATE THEIR NEEDS; AND

(e)  IT IS APPROPRIATE THAT STATE REVENUES BE UTILIZED TO ENABLE SUCH GROWTH­IMPACTED REGIONS OF THE STATE TO ADDRESS THE PROBLEMS CREATED BY GROWTH SINCE STATE REVENUES ARE AUGMENTED BY INCREASING AMOUNTS OF STATE INDIVIDUAL INCOME AND SALES TAXES COLLECTED FROM INDIVIDUALS AND ENTITIES LOCATED IN SUCH GROWTH­IMPACTED REGIONS.

(3)  IT IS THEREFORE THE INTENT OF THE GENERAL ASSEMBLY IN ENACTING THIS PART 10 TO ESTABLISH A PILOT PROGRAM THAT ALLOWS LOCAL GOVERNMENTS TO WORK COOPERATIVELY TO ADDRESS THE IMPACTS OF GROWTH BY UTILIZING FINANCIAL ASSISTANCE GIVEN BY THE STATE TO GROWTH­IMPACTED REGIONS.

29­1­1002.  Definitions.  AS USED IN THIS PART 10, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1)  "ADVISORY COMMITTEE" MEANS THE LOCAL GOVERNMENT GROWTH ASSISTANCE ADVISORY COMMITTEE CREATED PURSUANT TO SECTION 29­1­1006 (1).

(2)  "BOARD OF TRUSTEES" MEANS THE BOARD OF TRUSTEES OF A LOCAL GROWTH IMPACT FUND.

(3)  "COUNTY" MEANS A COUNTY OR A CITY AND COUNTY.

(4)  "ENTITY" OR "GOVERNMENTAL ENTITY" MEANS ANY COUNTY, CITY, CITY AND COUNTY, TOWN, SCHOOL DISTRICT, SPECIAL DISTRICT, OR HOUSING AUTHORITY CREATED PURSUANT TO PART 2 OR 5 OF ARTICLE 4 OF THIS TITLE.

(5)  "EXCESS PER CAPITA REVENUE" MEANS THE DIFFERENCE BETWEEN THE PER CAPITA REVENUE WITHIN A GROWTH COUNTY AND PER CAPITA REVENUE STATEWIDE.

(6)  "EXECUTIVE DIRECTOR" MEANS THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS.

(7)  "GROWTH COUNTY" MEANS A COUNTY SATISFYING THE CONDITIONS SET FORTH IN SECTION 29­1­1003 (3).

(8)  "LOCAL FUND" MEANS A LOCAL GROWTH IMPACT FUND.

(9)  "PER CAPITA REVENUE" MEANS STATE REVENUE RESULTING FROM STATE INDIVIDUAL INCOME AND SALES TAXES COLLECTED FROM INDIVIDUALS OR ENTITIES LOCATED WITHIN THE JURISDICTION OF A GOVERNMENTAL ENTITY DURING A GIVEN STATE FISCAL YEAR DIVIDED BY THE POPULATION OF THE ENTITY.

(10)  "PER CAPITA REVENUE STATEWIDE" MEANS THE AVERAGE PER CAPITA REVENUE FOR ALL GOVERNMENTAL ENTITIES OF A PARTICULAR TYPE WITHIN THE STATE OF COLORADO.

(11)  "POPULATION" MEANS THE LARGEST POPULATION ESTIMATE FOR THE PRECEDING CALENDAR YEAR AS PREPARED BY THE DIVISION OF PLANNING PURSUANT TO SECTION 24­32­204, C.R.S.

(12)  "SUBSIDIZING COUNTY" MEANS A COUNTY SATISFYING THE CONDITIONS IN SECTION 29­1­1003 (4).

29­1­1003.  Intergovernmental agreements ­ purpose ­ necessary parties. (1)  ANY COMBINATION OF GOVERNMENTAL ENTITIES IN THE STATE, WHERE AT LEAST ONE ENTITY IS A GROWTH COUNTY AND ONE ENTITY IS A SUBSIDIZING COUNTY AND WHERE AT LEAST ONE CITY OR TOWN LOCATED IN EACH OF SAID COUNTIES IS A PARTICIPANT, MAY ENTER INTO AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO PART 2 OF THIS ARTICLE FOR UP TO FIVE YEARS FOR THE PURPOSE OF IMPLEMENTING A PLAN TO RELIEVE FINANCIAL PRESSURES AND FACILITATE THE PROVISION OF CERTAIN SERVICES IN REGIONS WHERE THE IMPACTS OF GROWTH CROSS LOCAL GOVERNMENTAL BOUNDARIES. AN INTERGOVERNMENTAL AGREEMENT ENTERED INTO IN ACCORDANCE WITH THIS PART 10 SHALL BE SUBMITTED TO THE EXECUTIVE DIRECTOR AND SHALL NOT BE EFFECTIVE UNLESS AND UNTIL THE EXECUTIVE DIRECTOR HAS CERTIFIED THAT THE ENTITIES ARE QUALIFIED TO ENTER INTO SUCH AN AGREEMENT PURSUANT TO SECTION 29­1­1004 (1).

(2)  THE INTERGOVERNMENTAL AGREEMENT SHALL:

(a)  ESTABLISH A METHOD FOR ALLOCATING MONEYS IN A LOCAL GROWTH IMPACT FUND TO ONE OR MORE OF THE GOVERNMENTAL ENTITIES THAT ARE PARTIES TO THE AGREEMENT AS PART OF THE PLAN TO ADDRESS THE IMPACTS OF GROWTH IN THE FOLLOWING AREAS: AFFORDABLE HOUSING; SOCIAL IMPACTS OF EMPLOYEE COMMUTING PATTERNS; TRANSPORTATION; AND PUBLIC SERVICES AND FACILITIES RELATED THERETO;

(b)  SPECIFY THE TOTAL AMOUNT OF THE MATCHING FUNDS REQUIRED BY SECTION 29­1­1005 (3), AND THE AMOUNT OF SUCH FUNDS FOR WHICH ONE OR MORE OF THE PARTIES TO THE AGREEMENT IS OBLIGATED;

(c)  CONTAIN PROVISIONS CONCERNING THE TREATMENT OF ANY UNEXPENDED MONEYS IN THE LOCAL GROWTH IMPACT FUND FOR PURPOSES OF THE FISCAL YEAR SPENDING LIMITS SET FORTH IN SECTION 20 (7) OF ARTICLE X OF THE STATE CONSTITUTION.

(3)  A GROWTH COUNTY, FOR THE PURPOSES OF THIS PART 10, IS A COUNTY WITH A POPULATION OF LESS THAN FIFTY THOUSAND IN WHICH THE PER CAPITA REVENUE, BASED ON THE MOST RECENT REVENUE FIGURES AVAILABLE, IS:

(a)  GREATER THAN THE PER CAPITA REVENUE STATEWIDE DURING THE SAME PERIOD OF TIME; AND

(b)  AT LEAST TEN PERCENT GREATER THAN THE PER CAPITA REVENUE OF THE PARTICIPATING SUBSIDIZING COUNTY WITH THE LOWEST PER CAPITA REVENUE DURING THE SAME PERIOD OF TIME.

(4)  A SUBSIDIZING COUNTY, FOR THE PURPOSES OF THIS PART 10, IS A COUNTY IN WHICH THE PER CAPITA REVENUE, BASED ON THE MOST RECENT REVENUE FIGURES AVAILABLE, IS AT LEAST TEN PERCENT LESS THAN THE PER CAPITA REVENUE DURING THE SAME PERIOD OF TIME OF THE GROWTH COUNTY WITH THE HIGHEST PER CAPITA REVENUE THAT IS A PARTY TO THE INTERGOVERNMENTAL AGREEMENT.

(5)  NOTHING IN THIS PART 10 SHALL BE CONSTRUED TO PROHIBIT:

(a)  GOVERNMENTAL ENTITIES OTHER THAN GROWTH OR SUBSIDIZING COUNTIES FROM PARTICIPATING AS ADDITIONAL PARTIES TO THE INTERGOVERNMENTAL AGREEMENTS DESCRIBED IN THIS SECTION; OR

(b)  GOVERNMENTAL ENTITIES FROM ENTERING INTO SEPARATE AGREEMENTS CONCERNING THE ALLOCATION AND USE OF LOCALLY IMPOSED TAXES IF SUCH AGREEMENTS ARE OTHERWISE IN ACCORDANCE WITH LAW.

(6)  NO INTERGOVERNMENTAL AGREEMENT SHALL BE ENTERED INTO PURSUANT TO THIS PART 10 AFTER JULY 1, 1999.

29­1­1004.  Certification of intergovernmental agreements by the department of local affairs. (1)  NO LATER THAN OCTOBER 1 OF EACH YEAR, FOR EACH INTERGOVERNMENTAL AGREEMENT ENTERED INTO AND SUBMITTED PURSUANT TO THIS PART 10, THE EXECUTIVE DIRECTOR SHALL CERTIFY WHETHER THERE IS AT LEAST ONE GROWTH COUNTY AND ONE SUBSIDIZING COUNTY PARTICIPATING IN THE AGREEMENT AND WHETHER THERE IS AT LEAST ONE CITY OR TOWN IN EACH OF SAID COUNTIES PARTICIPATING IN THE AGREEMENT AS A MEANS OF DETERMINING WHETHER THE ENTITIES THAT HAVE ENTERED INTO THE AGREEMENT ARE QUALIFIED TO DO SO.

(2)  IF THE EXECUTIVE DIRECTOR CERTIFIES THAT THE PARTIES TO AN INTERGOVERNMENTAL AGREEMENT ARE QUALIFIED TO ENTER INTO SUCH AN AGREEMENT PURSUANT TO THIS PART 10, THE AGREEMENT SHALL BE DEEMED APPROVED, AND THE EXECUTIVE DIRECTOR SHALL NOTIFY THE GOVERNING BOARDS OF THE PARTICIPATING ENTITIES OF SUCH APPROVAL. IN ADDITION, THE EXECUTIVE DIRECTOR SHALL DETERMINE, BASED ON THE MOST RECENT FIGURES AVAILABLE, THE AMOUNT OF EXCESS PER CAPITA REVENUE AND THE POPULATION OF EACH GROWTH COUNTY THAT IS A PARTY TO THE INTERGOVERNMENTAL AGREEMENT. THE EXECUTIVE DIRECTOR SHALL UPDATE THIS INFORMATION ANNUALLY FOR AS LONG AS THE AGREEMENT IS IN EFFECT, BUT NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE THE EXECUTIVE DIRECTOR TO REQUIRE THAT THE PARTIES TO AN APPROVED AGREEMENT BE RECERTIFIED PURSUANT TO THIS SECTION.

(3)  THE EXECUTIVE DIRECTOR SHALL NOT APPROVE AND SHALL NOT BE REQUIRED TO MAKE THE CERTIFICATION DESCRIBED IN THIS SECTION FOR ANY AGREEMENT THAT WAS ENTERED INTO AFTER JULY 1, 1999.

29­1­1005.  Grants and loans to growth­impacted regions ­ authority of executive director ­ application procedures. (1)  NO LATER THAN NOVEMBER 1 OF EACH YEAR, THE PARTIES TO AN INTERGOVERNMENTAL AGREEMENT ENTERED INTO IN ACCORDANCE WITH THIS PART 10 MAY APPLY TO THE EXECUTIVE DIRECTOR FOR A GRANT OR LOAN FROM THE LOCAL GOVERNMENT GROWTH ASSISTANCE FUND CREATED IN SECTION 29­1­1007 (1).

(2)  SUBJECT TO THE REQUIREMENTS CONTAINED IN SUBSECTION (3) OF THIS SECTION, UPON RECEIVING RECOMMENDATIONS FROM THE ADVISORY COMMITTEE REGARDING ANY APPLICATION FOR A GRANT OR LOAN, THE EXECUTIVE DIRECTOR MAY AWARD, IN THE EXECUTIVE DIRECTOR'S DISCRETION, A GRANT OR LOAN IN SUCH AMOUNT AND UNDER SUCH CONDITIONS AS THE EXECUTIVE DIRECTOR DETERMINES TO BE APPROPRIATE.

(3) (a)  NO GRANT SHALL BE AWARDED OR LOAN MADE UNDER THIS SECTION UNLESS THE PARTIES TO THE INTERGOVERNMENTAL AGREEMENT PROVIDE MATCHING FUNDS IN THE AMOUNT OF THE GRANT TO BE AWARDED OR THE LOAN TO BE MADE THAT HAVE BEEN CREDITED TO THE LOCAL FUND PURSUANT TO SUCH AGREEMENT.

(b)  NO GRANT AWARDED OR LOAN MADE IN ANY GIVEN YEAR BY THE EXECUTIVE DIRECTOR TO THE PARTIES TO AN APPROVED AGREEMENT SHALL EXCEED AN AMOUNT EQUAL TO THE TOTAL OF FIFTY PERCENT OF THE PRODUCT OF THE EXCESS PER CAPITA REVENUE AND THE POPULATION, BASED ON THE MOST RECENT FIGURES AVAILABLE, OF EACH GROWTH COUNTY THAT IS A PARTY TO THE AGREEMENT.

(c)  THE TOTAL AMOUNT OF GRANTS AWARDED OR LOANS MADE DURING ANY GIVEN STATE FISCAL YEAR SHALL NOT EXCEED THE AMOUNT OF REVENUES IN THE LOCAL GOVERNMENT GROWTH ASSISTANCE FUND CREATED IN SECTION 29­1­1007 (1).

(4)  IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT ANY GRANTS AWARDED OR LOANS MADE PURSUANT TO THIS PART 10 BE IN ADDITION TO AND NOT A SUBSTITUTE FOR FUNDS OTHERWISE APPROPRIATED TO OR FOR THE BENEFIT OF THE PARTICIPATING GOVERNMENTAL ENTITIES.

29­1­1006.  Local government growth assistance advisory committee ­ creation ­ duties. (1)  THERE IS HEREBY CREATED WITHIN THE DEPARTMENT OF LOCAL AFFAIRS A LOCAL GOVERNMENT GROWTH ASSISTANCE ADVISORY COMMITTEE. THE ADVISORY COMMITTEE SHALL BE COMPOSED OF THE FOLLOWING NINE MEMBERS:

(a)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS OR THE EXECUTIVE DIRECTOR'S DESIGNEE;

(b)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF HUMAN SERVICES OR THE EXECUTIVE DIRECTOR'S DESIGNEE;

(c)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF TRANSPORTATION OR THE EXECUTIVE DIRECTOR'S DESIGNEE;

(d)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE OR THE EXECUTIVE DIRECTOR'S DESIGNEE;

(e)  THE STATE DIRECTOR OF HOUSING OR THE STATE DIRECTOR'S DESIGNEE;

(f)  TWO MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS WHO ARE RESIDENTS OF A GROWTH COUNTY AND WHO SERVE AT THE PLEASURE OF THE EXECUTIVE DIRECTOR; EXCEPT THAT SAID MEMBERS SHALL NOT BE FROM THE SAME GROWTH COUNTY; AND

(g)  TWO MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS WHO ARE RESIDENTS OF A SUBSIDIZING COUNTY AND WHO SERVE AT THE PLEASURE OF THE EXECUTIVE DIRECTOR; EXCEPT THAT SAID MEMBERS SHALL NOT BE FROM THE SAME SUBSIDIZING COUNTY.

(2)  ONE OF THE MEMBERS INITIALLY APPOINTED PURSUANT TO PARAGRAPH (f) OF SUBSECTION (1) OF THIS SECTION AND ONE OF THE MEMBERS INITIALLY APPOINTED PURSUANT TO PARAGRAPH (g) OF SUBSECTION (1) OF THIS SECTION SHALL SERVE TERMS OF TWO YEARS. THE REMAINING MEMBER INITIALLY APPOINTED PURSUANT TO PARAGRAPH (f) OF SUBSECTION (1) OF THIS SECTION AND THE REMAINING MEMBER INITIALLY APPOINTED PURSUANT TO PARAGRAPH (g) OF SUBSECTION (1) OF THIS SECTION SHALL SERVE TERMS OF FOUR YEARS. ALL MEMBERS SUBSEQUENTLY APPOINTED PURSUANT TO PARAGRAPHS (f) AND (g) OF SUBSECTION (1) OF THIS SECTION SHALL SERVE TERMS OF FOUR YEARS, BUT NO MEMBER SHALL SERVE MORE THAN TWO SUCCEEDING FOUR­YEAR TERMS.

(3)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LOCAL AFFAIRS SHALL SERVE AS THE CHAIRPERSON OF THE ADVISORY COMMITTEE AND SHALL CONVENE THE COMMITTEE FROM TIME TO TIME AS THE EXECUTIVE DIRECTOR DEEMS NECESSARY.

(4)  THE COMMITTEE SHALL HAVE THE FOLLOWING DUTIES:

(a)  TO ESTABLISH A STANDARDIZED METHODOLOGY AND CRITERIA FOR DOCUMENTING, MEASURING, ASSESSING, AND REPORTING THE IMPACT OF GROWTH UPON PARTIES TO APPROVED INTERGOVERNMENTAL AGREEMENTS;

(b)  TO ESTABLISH CRITERIA FOR AWARDING GRANTS AND MAKING LOANS, INCLUDING BUT NOT LIMITED TO PROCEDURES, POLICIES, OR REQUIREMENTS FOR APPLICATIONS FOR GRANTS AND LOANS AND FOR THE AWARDING OF GRANTS AND THE MAKING OF LOANS;

(c)  TO PRIORITIZE APPLICATIONS FOR GRANTS AND LOANS BY PARTIES TO APPROVED INTERGOVERNMENTAL AGREEMENTS BASED UPON THE NEEDS OF THE PARTIES, THE EXCESS PER CAPITA REVENUE, THE DOCUMENTED IMPACTS OF GROWTH ON THE PARTIES, AND THE POPULATION OF EACH GROWTH COUNTY THAT IS A PARTY TO AN INTERGOVERNMENTAL AGREEMENT, BASED UPON THE MOST RECENT DATA AVAILABLE;

(d)  TO MAKE RECOMMENDATIONS REGARDING GRANT AND LOAN APPLICATIONS, INCLUDING ANY CONDITIONS TO BE IMPOSED, TO BE CONSIDERED BY THE EXECUTIVE DIRECTOR IN AWARDING GRANTS AND MAKING LOANS TO PARTIES OF APPROVED INTERGOVERNMENTAL AGREEMENTS PURSUANT TO SECTION 29­1­1005 (2).

29­1­1007.  Local government growth assistance fund ­ creation. (1)  THERE IS HEREBY CREATED IN THE STATE TREASURY THE LOCAL GOVERNMENT GROWTH ASSISTANCE FUND. SAID FUND SHALL CONSIST OF THE FOLLOWING REVENUES:

(a)  ALL REVENUES APPROPRIATED TO THE FUND BY THE GENERAL ASSEMBLY;

(b)  ALL REVENUES RECEIVED BY THE EXECUTIVE DIRECTOR FOR THE REPAYMENT OF LOANS MADE PURSUANT TO THIS PART 10;

(c)  ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF THE REVENUES IN THE FUND.

(2)  ALL INTEREST DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. AT THE END OF ANY FISCAL YEAR, ALL UNEXPENDED AND UNENCUMBERED MONEYS IN THE FUND SHALL REMAIN THEREIN AND SHALL NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND. THE MONEYS IN THE FUND ARE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY TO THE DEPARTMENT OF LOCAL AFFAIRS FOR THE DEPARTMENT'S COSTS OF ADMINISTERING THE LOCAL GOVERNMENT GROWTH ASSISTANCE PROGRAM AND FOR AWARDING GRANTS AND MAKING LOANS TO PARTIES OF APPROVED INTERGOVERNMENTAL AGREEMENTS PURSUANT TO THIS PART 10.

29­1­1008.  Local growth impact funds ­ creation ­ boards of trustees ­ reports ­ management ­ use. (1)  WHEN AN INTERGOVERNMENTAL AGREEMENT PURSUANT TO THIS PART 10 HAS BEEN APPROVED, A BOARD OF TRUSTEES REPRESENTING THE PARTIES TO THE AGREEMENT SHALL BE CREATED, AND THE BOARD OF TRUSTEES SHALL ESTABLISH A LOCAL GROWTH IMPACT FUND.

(2)  THE BOARD OF TRUSTEES SHALL CONSIST OF NOT MORE THAN THREE MEMBERS OF THE GOVERNING BOARD OF EACH ENTITY THAT IS A PARTY TO THE INTERGOVERNMENTAL AGREEMENT WHO SHALL BE APPOINTED BY THE GOVERNING BOARD OF EACH RESPECTIVE GOVERNMENTAL ENTITY. IN ADDITION TO ANY OTHER DUTIES, EACH BOARD OF TRUSTEES SHALL PREPARE AN ANNUAL REPORT OF THE CONDITION OF ITS LOCAL FUND THAT SHALL BE SUBMITTED TO THE EXECUTIVE DIRECTOR NO LATER THAN OCTOBER 1 OF EACH YEAR. SUCH REPORT SHALL INCLUDE THE CURRENT LOCAL FUND BALANCE AND INFORMATION CONCERNING THE AMOUNT OF MONEY EXPENDED FROM THE LOCAL FUND PURSUANT TO THE INTERGOVERNMENTAL AGREEMENT AND FOR THE REPAYMENT OF ANY LOANS RECEIVED PURSUANT TO THIS PART 10 FOR THE PRECEDING YEAR.

(3)  THE LOCAL FUND SHALL CONSIST OF ANY MONEYS AWARDED OR LOANED TO THE PARTIES TO THE INTERGOVERNMENTAL AGREEMENT PURSUANT TO SECTION 29­1­1005 (2) AND ANY OTHER MONEYS CREDITED TO THE LOCAL FUND PURSUANT TO THE INTERGOVERNMENTAL AGREEMENT. MONEYS IN THE LOCAL FUND SHALL BE USED IN THE MANNER PROVIDED IN THIS PART 10. THE LOCAL FUND SHALL BE MANAGED AND DISBURSED BY THE BOARD OF TRUSTEES ACCORDING TO THE PROVISIONS OF THIS PART 10 AND PART 6 OF ARTICLE 75 OF TITLE 24, C.R.S., AND THE TERMS OF THE INTERGOVERNMENTAL AGREEMENT IN CONFORMITY WITH ANY RULES OR BYLAWS ADOPTED BY THE BOARD OF TRUSTEES. THE BOARD OF TRUSTEES IS VESTED WITH THE GENERAL SUPERVISION AND CONTROL OF THE LOCAL FUND AND IS AUTHORIZED TO TAKE ALL NECESSARY STEPS AND PURSUE ALL NECESSARY REMEDIES FOR ITS PRESERVATION.

(4)  FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, THE BOARD OF TRUSTEES OF A LOCAL FUND SHALL NOT BE A DISTRICT BUT SHALL BE CONSIDERED AN INSTRUMENTALITY OF THE GOVERNMENTAL ENTITIES THAT ARE PARTIES TO THE AGREEMENT, AND ANY MONEYS DISTRIBUTED FROM A LOCAL FUND SHALL BE TREATED AS FISCAL YEAR SPENDING BY THE ENTITY THAT RECEIVES THE MONEYS AND MAKES EXPENDITURES THEREOF. THE TREATMENT OF ANY MONEYS REMAINING IN A LOCAL FUND AT THE CLOSE OF THE STATE FISCAL YEAR SHALL BE DETERMINED BY THE PARTIES PURSUANT TO THE TERMS OF THEIR INTERGOVERNMENTAL AGREEMENT.

(5)  MONEYS DISTRIBUTED FROM A LOCAL FUND TO A SCHOOL DISTRICT MAY BE USED ONLY FOR CAPITAL CONSTRUCTION AND LAND ACQUISITION AND MAY NOT BE USED FOR ANY OPERATIONAL PURPOSE.

29­1­1009.  Annual review ­ report.  NO LATER THAN JANUARY 15, 1999, AND EACH JANUARY 15 THEREAFTER, THE EXECUTIVE DIRECTOR SHALL SUBMIT A REPORT TO THE GOVERNOR AND THE LOCAL GOVERNMENT COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES CONCERNING THE STATUS OF ALL INTERGOVERNMENTAL AGREEMENTS ENTERED INTO PURSUANT TO THIS PART 10. THIS REPORT SHALL INCLUDE A STATEMENT OF THE AMOUNT OF ALL GRANTS AWARDED AND LOANS MADE TO PARTIES OF SUCH AGREEMENTS, THE AMOUNT OF MONEY EXPENDED PURSUANT TO EACH AGREEMENT, WHETHER THE AGREEMENT IS STILL IN EFFECT, AND, FOR EACH AGREEMENT THAT IS IN EFFECT, THE PER CAPITA REVENUE OF EACH PARTICIPATING COUNTY AND THE PER CAPITA STATE REVENUE. IN ADDITION, THE REPORT SHALL INCLUDE INFORMATION ON THE CURRENT BALANCE AND TOTAL RECEIPTS OF ALL LOCAL FUNDS CREATED BY INTERGOVERNMENTAL AGREEMENTS PURSUANT TO THIS PART 10. THE REPORT MAY INCLUDE SUCH OTHER INFORMATION AS THE EXECUTIVE DIRECTOR DEEMS APPROPRIATE.

29­1­1010.  Rules.  THE EXECUTIVE DIRECTOR IS AUTHORIZED TO PROMULGATE RULES FOR THE IMPLEMENTATION OF THIS PART 10.

29­1­1011.  Repeal of part.  THIS PART 10 IS REPEALED, EFFECTIVE JULY 1, 2004.

SECTION 2.  Appropriation.  For the fiscal year commencing July 1, 1998, in addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund not otherwise appropriated, to the local government growth assistance fund created in section 29­1­1007 (1), Colorado Revised Statutes, the sum of ten million dollars ($10,000,000), and such sum, or so much thereof as may be necessary, is further appropriated to the department of local affairs for the implementation of this act.

SECTION 3.  Effective date.  This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety­day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.