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Land Entity White Paper November 30,1999 <br />b. Constraints on Infergovernmentad Efforts <br />The Coloradv Canstitution, Articie Xi, section 2, prohibits the state fram donating funds <br />to a corporation or company, or from jaint ov?mership of any property with any person, company <br />or corparation. This artiale appears to prohibit Colorado from funding any private non-proft or <br />gavemment corporation, and from holding land interests jointly wi#h any other party. <br />This constraint appears to have iittle effect on the situation at hand, bawever. Article <br />XIV, section 18(2}(a) provides that "[n]othing in this constittition shall be canstrued to prohibit <br />the state or any of its political subdivisions from cooperating or contracting with one another or <br />with the gavernment of the United States to provide any function, service, or facility Iawfully <br />authorixed to each,..." Section 18(2)(b) provides that nothing shall prvhibit "the authoriaation <br />by statute of a separate governmental entity as a instrument to be used through voluntary <br />participation by cooperating or contracting political subdivisions." And section 18(2)(c) <br />provides that nothing shall be construed to prohibit any political subdivision of the state from <br />contracting with private persons, associations, or corporations for the provision of any legally <br />authorized functiqns... within ar without its boundaries." <br />These constitutional provisions have been interpreted by the legislature in adopting <br />several statutes. Colorado Revised Statutes and Court Ru1es, Sec_ 6-2-115.5 authorizes any state <br />agency to contract with private enterprise if it will be cost effective. In pravisions similar to <br />those in Wyoming and Nebraska, the statutes clarify that state agencies' authority to cooperate <br />with other governments is to be encouraged and broadly read. Sec. 29-1-20I. The statute states <br />that governments may cooperate or contract with one another to carry out any function with the <br />approval of the legislature or any other authority with the power to so approve. Any cantract can <br />calI for the joint exercise of powers, including the establishment of a separate legal entity to do <br />so. Sec. 29-1-203 , <br />The def nitions section, Sea. 29-1-202, provides that intrastate, interstate and <br />statelfederal cooperatian are all cvvered under this statute. Hawever, the remainder of the <br />statute, Sec_ 29-1-204 et seq., addresses very specific, largely intrastate, cooperative <br />arrangements such as water authorities. It is not clear on the face of the statute what cooperative <br />situations would require legislative approval, or whether legislative approval needs to be in the <br />form of a statutory autharization or simply earmarked apprapriations. It would be reasonable to <br />interpret that provision widely enough to allow an agency such as the Departrnent of Natural <br />Resources to enter into joint contracting arrangements, or create joint entities, provided they <br />further state functions delegated to that agency. It wnuld also be reasonable to expect that the <br />Depaztment would seek specific appropriatian autharizatian in its budget far an arrangement iike <br />the Program that is not specifically autharized by statute. <br />A - 10