First Regular Session
Sixty-second General Assembly
LLS NO. 99-0660.01 Gregg Fraser SENATE BILL 99-134
STATE OF COLORADO
BY SENATOR Hillman;
also REPRESENTATIVE McPherson.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE AUTHORITY OF THE DEPARTMENT OF THE TREASURY TO
102 COORDINATE THE FINANCING OF STATE PROPERTY ACQUISITIONS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Authorizes the department of the treasury to contract for the
issuance of bonds, loans, lease purchase agreements, and other methods
of financing the state's acquisition of capital assets and equipment.
Requires the department to establish policy guidelines for using the
various methods of financing.
Requires the agency for which the financing is obtained to ensure
that the department's costs incurred in connection with the execution of
such financing are paid from the proceeds of the financing or from the
budget of the agency.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Article 36 of title 24, Colorado Revised Statutes, is
3 amended BY THE ADDITION OF A NEW SECTION to read:
4 24-36-119. Contracting for capital construction and asset
5 acquisition financing - legislative declaration - definitions. (1) THE
6 GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:
7 (a) IT IS THE INTENT OF THIS SECTION TO IMPROVE SERVICE AND
[ ] 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.
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1 REDUCE THE COSTS TO THE STATE ASSOCIATED WITH USING DIFFERENT
2 FINANCING METHODS TO ACQUIRE STATE CAPITAL ASSETS AND EQUIPMENT;
3 (b) THE DEPARTMENTS, AGENCIES, AND OTHER ENTITIES OF STATE
4 GOVERNMENT CURRENTLY RELY UPON A VARIETY OF FINANCING METHODS
5 TO FACILITATE THE ACQUISITION OF STATE CAPITAL ASSETS AND
6 EQUIPMENT;
7 (c) IN THE COURSE OF USING SUCH FINANCING METHODS, THE
8 VARIOUS DEPARTMENTS, AGENCIES, AND OTHER ENTITIES OF STATE
9 GOVERNMENT DO NOT CONSIDER ALTERNATIVE MEANS OF FINANCING, DO
10 NOT COORDINATE THEIR EFFORTS WITH EACH OTHER, AND DO NOT ISSUE
11 SUCH INSTRUMENTS WITH ENOUGH FREQUENCY SO AS TO USE SUCH
12 FINANCING METHODS INDEPENDENTLY AND IN THE MOST COST-EFFECTIVE
13 MANNER;
14 (d) BY COORDINATING THIS USE OF FINANCING METHODS THROUGH
15 THE DEPARTMENT OF THE TREASURY, THE STATE CAN MINIMIZE ISSUANCE
16 COSTS, CONSOLIDATE RESOURCES AND EXPERTISE, AND FACILITATE THE
17 EFFICIENT, COST-EFFECTIVE USE OF DIFFERENT METHODS TO FINANCE THE
18 ACQUISITION OF STATE CAPITAL ASSETS AND EQUIPMENT.
19 (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
20 REQUIRES:
21 (a) "DEPARTMENT" MEANS THE DEPARTMENT OF THE TREASURY.
22 (b) "FINANCING" MEANS THE USE OF A BOND, LOAN, LEASE
23 PURCHASE AGREEMENT, CERTIFICATE OF PARTICIPATION, TAX
24 ANTICIPATION NOTE, REAL ESTATE INVESTMENT TRUST, OR OTHER
25 FINANCIAL INSTRUMENT OR METHOD FOR SUPPLYING MONEYS AS NEEDED
26 TO ACQUIRE STATE CAPITAL ASSETS AND EQUIPMENT OTHER THAN BY
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1 DIRECT APPROPRIATION OF CAPITAL CONSTRUCTION MONEYS.
2 (c) "STATE" MEANS THE STATE OF COLORADO, INCLUDING ANY
3 DEPARTMENT, AGENCY, OFFICE, OR OTHER ENTITY OF STATE GOVERNMENT,
4 BUT SHALL NOT INCLUDE ANY INSTITUTION OF HIGHER EDUCATION.
5 (3) THE DEPARTMENT SHALL CONTRACT FOR THE FINANCING OF
6 STATE CAPITAL ASSETS AND EQUIPMENT ACQUIRED BY THE STATE. THE
7 DEPARTMENT SHALL ADOPT POLICY GUIDELINES PURSUANT TO WHICH IT
8 WILL CONTRACT FOR SUCH FINANCING. SUCH GUIDELINES MAY INCLUDE,
9 BUT ARE NOT LIMITED TO, THE FOLLOWING:
10 (a) THE METHOD OR METHODS OF FINANCING THAT ARE MOST
11 APPROPRIATE OR COST EFFECTIVE FOR ACQUIRING DIFFERENT TYPES OF
12 CAPITAL ASSETS;
13 (b) THE MINIMUM COST OR MINIMUM USEFUL LIFE OF STATE
14 CAPITAL ASSETS AND EQUIPMENT TO ENSURE THE FINANCING IS THE MOST
15 ECONOMICAL MEANS BY WHICH TO PROCURE THE ASSETS OR EQUIPMENT;
16 (c) PROCEDURES FOR COMBINING THE FINANCING OF STATE
17 CAPITAL ASSETS AND EQUIPMENT FOR MORE THAN ONE STATE AGENCY.
18 (4) IN CONTRACTING FOR THE FINANCING OF STATE CAPITAL ASSETS
19 OR EQUIPMENT PURSUANT TO THIS SECTION, THE STATE ENTITY FOR WHICH
20 THE FINANCING IS OBTAINED SHALL TAKE THE APPROPRIATE ACTIONS TO
21 ENSURE THAT THE DEPARTMENT'S DIRECT EXPENSES OR OTHER COSTS
22 INCURRED IN CONNECTION WITH CONTRACTING FOR SUCH FINANCING ARE
23 PAID FROM THE PROCEEDS OF SUCH FINANCING OR FROM THE BUDGET OF
24 THE ENTITY FOR WHICH THE FINANCING IS OBTAINED.
25 SECTION 2. Effective date - applicability. (1) This act shall
26 take effect on January 1, 2000, unless a referendum petition is filed
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1 during the ninety-day period after final adjournment of the general
2 assembly that is allowed for submitting a referendum petition pursuant to
3 article V, section 1 (3) of the state constitution. If such a referendum
4 petition is filed against this act or an item, section, or part of this act
5 within such period, then the act, item, section, or part, if approved by the
6 people, shall take effect on the date of the official declaration of the vote
7 thereon by proclamation of the governor.
8 (2) The provisions of this act shall apply to the financing of state
9 capital assets and equipment acquired by the state on or after the
10 applicable effective date of this act.