First Regular Session
Sixty-second General Assembly
LLS NO. 99-0056.01 Gregg Fraser SENATE BILL 99-005
STATE OF COLORADO
BY SENATOR Arnold;
also REPRESENTATIVE Kester.
REENGROSSED EDUCATION
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE AUTHORITY OF LOCAL GOVERNMENTS TO ISSUE
102 REVENUE BONDS TO FINANCE EDUCATIONAL FACILITIES, AND, IN
103 CONNECTION THEREWITH, AUTHORIZING COUNTIES AND
104 MUNICIPALITIES TO ISSUE REVENUE BONDS TO FINANCE PUBLIC AND
105 PRIVATE INSTITUTIONS OF HIGHER EDUCATION AS WELL AS PUBLIC
106 {CHARTER} ELEMENTARY AND SECONDARY SCHOOLS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Expands the definition of "project" in the "County and
Municipality Development Revenue Bond Act" to allow counties and
municipalities to issue revenue bonds under the Act to finance facilities
of public and private institutions of higher education, as well as public
and private elementary and secondary schools.
1 Be it enacted by the General Assembly of the State of Colorado:
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 {} SECTION 1. 29-3-102, Colorado Revised Statutes, is amended
2 BY THE ADDITION OF A NEW SUBSECTION to read:
3 29-3-102. Legislative declaration. (2.5) IT IS THE FURTHER
4 INTENTION OF THE GENERAL ASSEMBLY TO AUTHORIZE COUNTIES AND
5 MUNICIPALITIES TO FINANCE, REFINANCE, ACQUIRE, OWN, LEASE, IMPROVE,
6 AND DISPOSE OF PROPERTIES TO THE END THAT EXPANDED CHOICE,
7 COMPETITION, AND OPPORTUNITY IN EDUCATION MAY BE PROVIDED,
8 THROUGH PUBLIC {CHARTER} SCHOOLS, AT THE {ELEMENTARY AND}
9 {SECONDARY} EDUCATION LEVELS, ALL OF WHICH ATTRACT BUSINESS AND
10 INDUSTRY INVESTMENT IN THIS STATE AND PROMOTES THE PUBLIC HEALTH,
11 WELFARE, SAFETY, CONVENIENCE, AND PROSPERITY.
12 SECTION 2. 29-3-103 (10) (k) and (10) (l), Colorado Revised
13 Statutes, are amended, and the said 29-3-103 (10) is further amended BY
14 THE ADDITION OF {A NEW PARAGRAPH,} to read:
15 29-3-103. Definitions. As used in this article, unless the context
16 otherwise requires:
17 (10) "Project" means any land, building, or other improvement
18 and all real or personal properties, and any undivided or other interest in
19 any of the foregoing, except inventories, raw materials, and other working
20 capital, whether or not in existence, suitable or used for or in connection
21 with any of the following:
22 (k) Research, product-testing, and administrative facilities; and
23 (l) Facilities for { } private institutions of higher
24 education; AND
25 (m) FACILITIES FOR PUBLIC {CHARTER} ELEMENTARY AND
26 SECONDARY SCHOOLS, INCLUDING BUT NOT LIMITED TO CHARTER
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1 SCHOOLS, AS AUTHORIZED PURSUANT TO THE "CHARTER SCHOOLS ACT",
2 PART 1 OF ARTICLE 30.5 OF TITLE 22,C.R.S., AND SCHOOLS THAT ARE PART
3 OF CHARTER SCHOOL DISTRICTS, AS DEFINED IN SECTION 22-30.5-203,
4 C.R.S.
5 { SECTION 3. 29-3-107, Colorado Revised Statutes, is amended
6 to read:
7 29-3-107. Bond security. (1) The principal of, the interest on,
8 and any prior redemption premiums due in connection with the bonds
9 shall be payable from, secured by a pledge of, and constitute a lien on the
10 revenues out of which such bonds shall be made payable. In addition,
11 they may be secured by a mortgage covering all or any part of the project
12 or upon any other property of the user, or both, by a pledge of the
13 revenues from or a financing agreement for such project, or both, as the
14 governing body in its discretion may determine, but no county or
15 municipality shall be authorized hereby to pledge any of its property or
16 to otherwise secure the payment of any bonds with its property; except
17 that the county or municipality may pledge the property of the project or
18 revenues therefrom.
19 (2) COUNTIES AND MUNICIPALITIES ISSUING BONDS FOR PUBLIC
20 CHARTER SCHOOLS PURSUANT TO THIS SECTION SHALL IMPOSE CRITERIA OR
21 COVENANTS SUFFICIENT TO PREVENT THE DIRECT SALE TO NONACCREDITED
22 INVESTORS OF ANY SUCH BONDS THAT ARE CLASSIFIED AS NONINVESTMENT
23 GRADE SECURITIES. FOR PURPOSES OF THIS SECTION, A "NONACCREDITED
24 INVESTOR" SHALL MEAN AN INVESTOR THAT IS NOT ACCREDITED AS THAT
25 TERM IS DEFINED IN 15 U.S.C. SEC. 77b (a) (15).}
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1 SECTION {4.} Effective date. This act shall take eff
ect July 1,
2 1999.
3 SECTION {5.} Safety clause. The general assembly hereby finds,
4 determines, and declares that this act is necessary for the immediate
5 preservation of the public peace, health, and safety.{}