Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE AUTHORITY OF THE DEPARTMENT OF THE TREASURY TO COORDINATE THE FINANCING OF STATE PROPERTY ACQUISITIONS.

Summary of Legislation

            This bill requires the Department of the Treasury to contract for the financing of state capital assets and equipment acquired by the state. The bill defines "financing" to include certain financial instruments to be used for supplying moneys to acquire state capital assets and equipment that are not acquired with capital construction moneys. The definition of "state" does not include any institution of higher education. The bill requires the department to adopt policy guidelines to administer the program. The bill requires each state agency for which the financing is provided to ensure that the Department of Treasury's costs are paid from the proceeds of the financing or from the agency's operating budget. This bill will become effective January 1, 2000, unless a referendum petition is filed.

            Some state agencies are currently financing the acquisition of some state assets. This bill centralizes debt issuance for the purpose of financing asset acquisition within the State Treasury. The State Treasury will be able to absorb the costs of administering the program within existing resources. This bill will not affect state or local government revenue or expenditures. Therefore, the bill is assessed as having no fiscal impact.

Departments Contacted

            All departments          State Treasury