This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.
Sixty-first General Assembly
LLS NO. 980051.01 GWF
SENATE BILL 98082
STATE OF COLORADO
BY SENATOR Alexander;
also REPRESENTATIVE Dean.
EDUCATION
REREVISED
A BILL FOR AN ACT
CONCERNING THE COLORADO POSTSECONDARY EDUCATIONAL
FACILITIES AUTHORITY, AND, IN CONNECTION THEREWITH, CHANGING THE
NAME OF THE AUTHORITY TO THE COLORADO EDUCATIONAL AND CULTURAL
FACILITIES AUTHORITY AND MODIFYING THE INSTITUTIONS THAT MAY RECEIVE
ASSISTANCE FROM THE AUTHORITY.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Changes the name of the Colorado postsecondary educational facilities authority act to the Colorado educational and cultural facilities act and changes the name of the Colorado postsecondary educational facilities authority to the Colorado educational and cultural facilities authority.
Expands the institutions the authority may assist from specified institutions of postsecondary education to any governmental, quasigovernmental, or nonprofit educational institution that is a charter school.
Provides that no financial obligation of a charter school incurred pursuant to the act shall become an obligation of the school district that granted the charter unless the district consents in writing and the authority obtains a legal opinion that the obligation is legally permissible.
Makes conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 2315101, Colorado Revised Statutes, is amended to read:
2315101. Short title. This
article shall be known and may be cited as the "Colorado
Postsecondary
Educational AND CULTURAL Facilities Authority Act".
SECTION 2. 2315102 (1), Colorado Revised Statutes, is amended to read:
2315102. Legislative declaration.
(1) It is the intent of the general assembly to create
the Colorado postsecondary
educational AND CULTURAL facilities authority to lend money to
EDUCATIONAL institutions of postsecondary
education and cultural institutions;
to authorize the authority to acquire, construct, reconstruct,
repair, alter, improve, extend, own, lease, and dispose of properties
to the end that the authority may be able to promote the welfare
of the people of this state; to authorize the authority to administer
the Colorado education savings program; to permit the bonds or
certificates of participation of the authority and the bonds or
certificates of participation of other issuers to be designated
as Colorado education savings bonds or certificates; and to vest
such authority with powers to enable such authority to accomplish
such purposes. but
It is not the intent of the general assembly to authorize the
authority to operate any such postsecondary
educational or cultural facility.
SECTION 3. 2315103 (1), (7) (a) (I), (8), and (9), Colorado Revised Statutes, are amended to read:
2315103. Definitions. As used in this article, unless the context otherwise requires:
(1) "Authority" means the Colorado
postsecondary
educational AND CULTURAL facilities authority created by this
article.
(7) (a) (I) "Facility",
in the case of a participating EDUCATIONAL institution, of
postsecondary education, means any
structure or building suitable for use as a housing facility,
an instructional facility, an administration building, a research
facility, a laboratory, a maintenance, storage, or utility facility,
an auditorium, a dining hall, a food service and preparation facility,
a mental or physical health care facility, a recreational facility,
or a student center facility or any other structure or facility
required or useful for the operation of an EDUCATIONAL institution,
of postsecondary education,
including, but not limited to: Offices, parking lots and garages,
and other supporting service structures; any equipment, furnishings,
and appurtenances necessary or useful in the operation of a participating
EDUCATIONAL institution; of postsecondary
education; and the acquisition, preparation,
and development of all real and personal property necessary or
convenient as a site or sites for any such structure or facility.
(8) (a) "EDUCATIONAL institution"
of postsecondary education"
means an
ANY GOVERNMENTAL, QUASIGOVERNMENTAL, OR NONPROFIT educational
institution operating in this state which:
(I) Provides an educational program for which it awards a bachelor's degree; or
(II) Provides not less than a twoyear program which is acceptable for full credit towards such a degree; or
(III) Provides not less than a sixmonth program of training to prepare students for gainful employment; or
(IV) Provides not less than a sixmonth program of training to develop, improve, or enhance the occupational skills of persons in their current positions of employment or of persons seeking employment in a new or different occupation;
(V) PROVIDES AN EDUCATIONAL PROGRAM PURSUANT TO A CHARTER FROM A SCHOOL DISTRICT IN ACCORDANCE WITH APPLICABLE LAWS; OR
(VI) PROVIDES AN EDUCATIONAL PROGRAM TO THE RESIDENTS OF THE STATE.
(b) "EDUCATIONAL institution"
of postsecondary education"
does not include any pervasively sectarian or theological institution
or any branch program of an EDUCATIONAL institution of
postsecondary education whose principal
campus and facilities are located outside this state.
(c) "EDUCATIONAL institution"
of postsecondary education"
includes any private foundation, nonprofit association, or any
other entity which is organized principally for the support and
benefit of any educational institution defined in paragraph (a)
of this subsection (8) and includes but is not limited to the
Auraria higher education center. Any reference in this article
to "EDUCATIONAL institution of
postsecondary education supported
in whole or in part by state funds" includes but is not limited
to the Auraria higher education center.
(9) "Refinancing of outstanding obligations"
means liquidation, with the proceeds of bonds or notes issued
by the authority, of any indebtedness of a participating EDUCATIONAL
institution of postsecondary education
or cultural institution incurred prior to, on, or after July 1,
1981, to finance or aid in financing a lawful purpose of such
institution not financed pursuant to this article which would
constitute a facility had it been undertaken and financed by the
authority. The term also means consolidation of such indebtedness
with indebtedness of the authority incurred for a facility related
to the purpose for which the indebtedness of such institution
was initially incurred.
SECTION 4. 2315107 (1) (f), (1) (i), (1) (l), (1) (m), (1) (n), (1) (o), (1) (r), and (1) (s), Colorado Revised Statutes, are amended, and the said 2315107 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:
2315107. General powers of the authority. (1) In addition to any other powers granted to the authority by this article, the authority shall have the following powers:
(f) To determine, in accordance with the
provisions of this article, the location and character of any
facility to be financed under the provisions of this article and
to acquire, construct, reconstruct, renovate, improve, alter,
replace, maintain, repair, operate, and lease such facility as
lessee or lessor; to enter into contracts for any and all of such
purposes and for the management and operation of a facility; and
to designate a participating EDUCATIONAL institution of
postsecondary education or cultural
institution as its agent to determine the location and character
of a facility undertaken by such participating institution under
the provisions of this article and, as agent of the authority,
to acquire, construct, reconstruct, renovate, replace, alter,
improve, maintain, repair, operate, lease as lessee or lessor,
and regulate the same and to enter into contracts for any and
all of such purposes including contracts for the management and
operation of such facility;
(i) To establish rules and regulations,
and to designate a participating EDUCATIONAL institution of
postsecondary education or cultural
institution as its agent to establish such rules and regulations,
for the use of the facilities undertaken or operated by such participating
institution and to employ or contract for consulting engineers,
architects, attorneys, accountants, construction and financial
experts, superintendents, managers, and such other employees and
agents as may be necessary in its judgment and to fix their compensation;
(l) To make mortgage loans or other secured
or unsecured loans to any participating EDUCATIONAL institution
of postsecondary education
or cultural institution for the cost of the facilities in accordance
with an agreement between the authority and such participating
institution; but no such loan shall exceed the total cost of such
facilities as determined by such participating institution and
approved by the authority;
(m) To make mortgage loans or other secured
or unsecured loans to a participating EDUCATIONAL institution
of postsecondary education
or cultural institution; to refund outstanding obligations, mortgages,
or advances issued, made, or given by such participating institution
for the cost of its facilities, including the issuance of bonds
and the making of loans to a participating EDUCATIONAL institution
of postsecondary education
or cultural institution; or to refinance outstanding obligations
and indebtedness incurred for facilities when the authority finds
that such financing is in the public interest and alleviates the
financial hardship upon the participating EDUCATIONAL institution
of postsecondary education
or cultural institution or is in connection with other financing
by the authority for such participating institution;
(n) To obtain or aid in obtaining, from
any department or agency of the United States or of this state
or any private company, any insurance or guarantee as to, or of,
or for the payment or repayment of the interest or principal,
or both the interest and principal, or any part of either or both
on any loan, lease, or obligation or any instrument evidencing
or securing the same made or entered into pursuant to the provisions
of this article and, notwithstanding any other provisions of this
article, to enter into any agreement, contract, or other instrument
whatsoever with respect to any such insurance or guarantee, to
accept payment in such manner and form as provided therein in
the event of default by a participating EDUCATIONAL institution
of postsecondary education
or cultural institution, and to assign any such insurance or guarantee
as security for the authority's bonds;
(o) To charge to and equitably apportion
among participating EDUCATIONAL institutions of
postsecondary education or cultural
institutions the administrative costs and expenses of the authority
incurred in the exercise of the powers granted and the duties
conferred by this article;
(r) To make mortgage loans or other secured
or unsecured loans to any person for the costs of a facility which
will be made available for use by an EDUCATIONAL institution of
postsecondary education or a cultural
institution, if the governing body of such institution has resolved
that the use of such facility will be in the best interests of
such institution; but no such loan shall exceed the total cost
of said facility as determined by said institution and approved
by the authority;
(s) To refund or refinance, through the
issuance of bonds and the making of loans, any outstanding obligations,
mortgages, indebtednesses, or advances issued, made, or given
by a person for the cost of facilities which will be made available
for use by an EDUCATIONAL institution of
postsecondary education or a cultural
institution when the governing board of such institution finds
that the use of said facility is in the best interests of said
institution;
(5) NO MORTGAGE LOAN, OTHER SECURED OR UNSECURED LOAN, OR FINANCING, REFINANCING, REFUNDING, OR OTHER FINANCIAL OBLIGATION INCURRED PURSUANT TO THE TERMS OF THIS ARTICLE FOR THE BENEFIT OF A CHARTER SCHOOL AS DESCRIBED IN SECTION 2315103 (8) (a) (V), SHALL OBLIGATE, DIRECTLY OR INDIRECTLY, THE SCHOOL DISTRICT THAT GRANTED THE CHARTER TO THE CHARTER SCHOOL UNLESS:
(a) THE EXPRESS WRITTEN CONSENT OF THE SCHOOL DISTRICT IS OBTAINED; AND
(b) THE AUTHORITY OBTAINS A WRITTEN OPINION OF LEGAL COUNSEL THAT THE OBLIGATION OF THE SCHOOL DISTRICT IS LEGALLY PERMISSIBLE UNDER THE COLORADO CONSTITUTION AND ALL APPLICABLE LAWS.
SECTION 5. 2315104 (1), Colorado Revised Statutes, is amended to read:
2315104. Authority
creation board organization.
(1) (a) There is hereby created an independent
public body politic and corporate to be known as the Colorado
postsecondary
educational AND CULTURAL facilities authority. Said authority
is constituted a public instrumentality, and its exercise of the
powers conferred by this article shall be deemed and held to be
the performance of an essential public function. The authority
shall be a body corporate and a political subdivision of the state
and shall not be an agency of state government and shall not be
subject to administrative direction by any department, commission,
board, or agency of the state.
(b) THE LEGAL EFFECTS OF ANY STATUTE HERETOFORE DESIGNATING THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY BY ANY OTHER NAME, OR PROPERTY RIGHTS HERETOFORE INCURRED UNDER ANY OTHER NAME, SHALL NOT BE IMPAIRED.
SECTION 6. 2315105 (5), Colorado Revised Statutes, is amended to read:
2315105. Organizational
meeting chairman executive director surety
bond conflict of interest. (5) Notwithstanding
any other law to the contrary, it shall not constitute a conflict
of interest for a trustee, director, officer, or employee of any
EDUCATIONAL institution, of postsecondary
education, 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.
SECTION 7. 2315108, Colorado Revised Statutes, is amended to read:
2315108. Acquisition of
property. The authority, directly
or by or through a participating EDUCATIONAL institution of
postsecondary education or cultural
institution as its agent, may acquire by purchase, lease, gift,
devise, or other means such lands, structures, real or personal
property, rightsofway, 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 for the construction, acquisition,
or operation of facilities, upon such terms as may be considered
by the authority to be reasonable, and may take title thereto
in the name of the authority or in the name of such participating
EDUCATIONAL institution of postsecondary
education or cultural institution
as its agent.
SECTION 8. 2315110.5 (2) (e) and (4) (a), Colorado Revised Statutes, are amended to read:
2315110.5. Colorado education savings program. (2) Bonds or certificates of participation may be designated as Colorado education savings bonds or certificates pursuant to subsection (1) of this section if such instruments satisfy the following criteria:
(e) The bonds or certificates are either
zerocoupon, deep discount, or comparable instruments and
the maturation dates of such instruments are structured to the
extent possible both to accommodate the financing needs of the
issuer or the entity on whose behalf the instruments are being
issued and to fulfill the needs of individuals planning on using
the proceeds of such instruments for postsecondary
education purposes.
(4) The authority shall evaluate the feasibility of:
(a) Payment of financial incentives to
holders of Colorado education savings bonds or certificates if,
at maturity, the proceeds of such bonds or certificates are applied
to expenses incurred for postsecondary
education in the state of Colorado;
SECTION 9. 2315112 (3), Colorado Revised Statutes, is amended to read:
2315112. Security for bonds
and notes. (3) In addition
to the provisions of subsections (1) and (2) of this section,
bonds of the authority may be secured by a pooling of leases,
loans, or mortgages whereby the authority may assign its rights
as lessor, lender, or mortgagee and pledge rents, loan payments,
or mortgage payments under two or more leases, loans, or mortgages,
with two or more participating EDUCATIONAL institutions of
postsecondary education or cultural
institutions as lessees, borrowers, or mortgagors, respectively,
upon such terms as may be provided for in the resolutions of the
authority or as may be provided for in a trust indenture or mortgage
or deed of trust authorized by the authority.
SECTION 10. 2315115, Colorado Revised Statutes, is amended to read:
2315115. Procedure before expenditure of proceeds. (1) Notwithstanding any other provisions of this article, the authority may not undertake any facility authorized by this article unless, prior to the expenditure of proceeds, the board finds that:
(a) Such facility will enable or assist
an EDUCATIONAL institution of postsecondary
education or a cultural institution
to fulfill its obligation to provide facilities; and
(b) In the case of an EDUCATIONAL institution,
of postsecondary education,
such facility has been reviewed and approved by the commission
if such approval is required pursuant to section 231106.
SECTION 11. 2315117, Colorado Revised Statutes, is amended to read:
2315117. Payment of bonds
nonliability of state. Bonds
and notes issued by the authority shall not constitute or become
an indebtedness, a debt, or a liability of the state, the general
assembly, or any county, city, city and county, town, school district,
or other political subdivision of the state or of any other political
subdivision or body corporate and politic within the state, and
neither the state, the general assembly, nor any county, city,
city and county, town, school district, or other political subdivision
of the state shall be liable thereon; nor shall such bonds or
notes constitute the giving, pledging, or loaning of the faith
and credit of the state, the general assembly, or any county,
city, city and county, town, school district, or other political
subdivision of the state or of any other political subdivision
or body corporate and politic within the state, but such bonds
or notes shall be payable solely from the funds provided for in
this article. The issuance of bonds or notes under the provisions
of this article shall not obligate, directly, indirectly, or contingently,
the state or any subdivision thereof nor empower the authority
to levy or collect any form of taxes or assessments therefor or
to create any indebtedness payable out of taxes or assessments
therefor or make any appropriation for their payment, and such
appropriation or levy is prohibited. Nothing in this section
shall prevent or be construed to prevent the authority from pledging
its full faith and credit or the full faith and credit of a participating
EDUCATIONAL institution of postsecondary
education or cultural institution
to the payment of bonds or notes authorized pursuant to this article.
Nothing in this article shall be construed to authorize the authority
to create a debt of the state within the meaning of the constitution
or statutes of Colorado or to authorize the authority to levy
or collect taxes or assessments; and all bonds issued by the authority
pursuant to the provisions of this article are payable and shall
state that they are payable solely from the funds pledged for
their payment in accordance with the resolution authorizing their
issuance or with any trust indenture, mortgage, or deed of trust
executed as security therefor and are not a debt or liability
of the state of Colorado. The state shall not in any event be
liable for the payment of the principal of or interest on any
bonds of the authority or for the performance of any pledge, mortgage,
obligation, or agreement of any kind whatsoever which may be undertaken
by the authority. No breach of any such pledge, mortgage, obligation,
or agreement shall impose any pecuniary liability upon the state
or any charge upon its general credit or against its taxing power.
SECTION 12. 2315118, Colorado Revised Statutes, is amended to read:
2315118. Exemption from
taxation and securities law. 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 for the improvement of their welfare and postsecondary
educational and cultural opportunities. 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 in the state of Colorado. Bonds
issued by the authority shall also be exempt from the "Colorado
Securities Act", article 51 of title 11, C.R.S.
SECTION 13. 2315119, Colorado Revised Statutes, is amended to read:
2315119. Rents and charges. A
sufficient amount of the revenues derived with respect to a facility,
except such part of such revenues as may be necessary to pay the
cost of maintenance, repair, and operation and to provide reserves
and for renewals, replacements, extensions, enlargements, and
improvements provided for in the resolution authorizing the issuance
of any bonds or notes of the authority or in the trust agreement
securing the same, shall be set aside at such regular intervals
as may be provided in such resolution or trust agreement in a
sinking or other similar fund which is hereby pledged to and charged
with the payment of the principal of and the interest on such
bonds or notes as the same become due and the redemption price
or the purchase price of bonds retired by call or purchase as
therein provided. Such pledge shall be valid and binding at the
time the pledge is made and thereafter until satisfied, and the
rates, rents, fees, charges, and other revenues or other moneys
so pledged and thereafter received by the authority shall immediately
be subject to the lien of such pledge without any physical delivery
thereof or further act; and the lien of any such pledge shall
be valid and binding as against all parties having claims of any
kind in tort or contract or in any other form against the authority,
irrespective of whether such parties have notice thereof. Neither
the bond resolution, any trust agreement, any other agreement,
nor any lease by which a pledge is created need be filed or recorded
except in the records of the authority. The use and disposition
of moneys to the credit of such sinking or other similar fund
shall be subject to the resolution authorizing the issuance of
such bonds or notes or to such trust agreement. Except as may
be otherwise provided in such resolution or such trust agreement,
such sinking or other similar fund may be a fund for all such
bonds or notes issued to finance facilities at a particular EDUCATIONAL
institution of postsecondary education
or cultural institution without distinction or priority of one
over another; except that the authority in any such resolution
or trust agreement may provide that such sinking or other similar
fund shall be the fund for a particular facility at an EDUCATIONAL
institution of postsecondary education
or a cultural institution and for the bonds issued to finance
a particular facility and, additionally, may permit and provide
for the issuance of bonds having a lien with respect to the security
authorized which is subordinate to other bonds of the authority,
and, in such case, the authority may create separate sinking or
other similar funds with respect to such subordinate lien bonds.
SECTION 14. The introductory portion to 2315120 (2), Colorado Revised Statutes, is amended to read:
2315120. Fees.
(2) Nothing in this article shall be construed to
imply mandatory participation by an EDUCATIONAL institution of
postsecondary education or a cultural
institution. An initial planning service fee in an amount determined
by the authority shall be paid to the authority by each participating
EDUCATIONAL institution of postsecondary
education or cultural institution
that applies for financial assistance to provide for its facilities.
Such initial planning service fees shall be included in the cost
of the facilities to be financed and shall not be refundable by
the authority, whether or not any such application is approved
or, if approved, whether or not such financial assistance is accomplished.
In addition to such initial fee, an annual planning service fee
shall be paid to the authority by each participating EDUCATIONAL
institution of postsecondary education
or cultural institution in an amount determined by the authority.
Such fees shall be paid on said dates or in such installments
as may be satisfactory to the authority. Such fees may be used
for:
SECTION 15. 2315121, Colorado Revised Statutes, is amended to read:
2315121. Conveyance of
title release of lien. When
the principal of and interest on bonds issued by the authority
to finance the cost of facilities or to refinance the outstanding
indebtedness of one or more participating EDUCATIONAL institutions
of postsecondary education
or cultural institutions, 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 and to convey its right, title, and
interest in such facilities so financed, and any other facilities
leased or mortgaged or subject to a deed of trust or any other
form of security arrangement to secure the bonds, to such participating
EDUCATIONAL institution of postsecondary
education or cultural institution.
SECTION 16. 24321705 (1) (a) (IV), Colorado Revised Statutes, is amended to read:
24321705. Allocations to state issuing authorities. (1) (a) Within thirty days after May 20, 1987, and as of January 15 in each year thereafter, fifty percent of the state ceiling shall be initially allocated among the following state issuing authorities in amounts established by the department:
(IV) The Colorado postsecondary
educational AND CULTURAL facilities authority, created by section
2315104, C.R.S.; and
SECTION 17. 2477102 (15) (b) (V), Colorado Revised Statutes, is amended to read:
2477102. Definitions. As used in this article, unless the context otherwise requires:
(15) (b) "Special purpose authority" includes, but is not limited to:
(V) The Colorado postsecondary
educational AND CULTURAL facilities authority created pursuant
to section 2315104 (1), C.R.S.;
SECTION 18. 291102 (13), Colorado Revised Statutes, is amended to read:
291102. Definitions. As used in this part 1, unless the context otherwise requires:
(13) "Local government" means
any authority, county, municipality, city and county, district,
or other political subdivision of the state of Colorado; any institution,
department, agency, or authority of any of the foregoing; and
any other entity, organization, or corporation formed by intergovernmental
agreement or other contract between or among any of the foregoing.
The office of the county public trustee shall be deemed an agency
of the county for the purposes of this part 1. "Local government"
does not include the Colorado postsecondary
educational AND CULTURAL facilities authority, the university
of Colorado hospital authority, the Colorado student obligation
bond authority, the Colorado health facilities authority, the
Colorado housing and finance authority, the Colorado agricultural
development authority, the Colorado sheep and wool authority,
the Colorado beef council authority, the Colorado horse development
board, the fire and police pension association, any public entity
insurance or investment pool formed pursuant to state law, any
county or municipal housing authority, any association of political
subdivisions formed pursuant to section 291401, or
any home rule city or town, home rule city and county, cities
and towns operating under a territorial charter, school district,
or junior college district.
SECTION 19. 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.