LEG00042

• Bill Number: SB02S-014
• Year: 2002
• Title: Concerning Revenue Bonds for Water Projects
• Legislation - Doc Type: Other CWCB Related Bills - Killed

Authorizes the board to refund bonds, to engage services required or advantageous in connection with
bonds, and to enter into interest rate exchange agreements for bonds. Requires bonds to include specified terms.
Requires the board to delegate certain authority needed for the efficient issuance of bonds to the state treasurer
and requires the state treasurer to exercise such authority in consultation with the board.
Creates the water infrastructure development fund in the state treasury. Requires unpledged bond
proceeds and revenues and receipts derived from the sale of water or power or the sale or lease of recreational
facilities or opportunities from a water infrastructure project whose construction, development, or improvement
was financed in whole or in part by bonds to be credited to the fund. Requires interest and income earned on the
deposit and investment of fund moneys to be credited to the fund and continuously appropriates all moneys in the
fund to the board to finance approved water infrastructure projects, to pay any unpledged costs of issuing and
administering bonds, and to pay other expenses related to bonds or the financing of approved water infrastructure
projects. Specifies that bond proceeds, earnings on bond proceeds, and revenues and receipts derived from the
sale of water or power or the sale or lease of recreational facilities or opportunities by the board from water
infrastructure projects financed by the bonds and earnings on such revenues and receipts are not to be included in
state fiscal year spending.
Grants specified powers to political subdivisions of the state for the purpose of aiding and cooperating in
the financing, construction, operation, and maintenance of approved water infrastructure projects. Specifies that
bonds are legal investments and that bonds are tax exempt unless the board waives the exemption. Specifies a
30-day statute of limitations for legal actions questioning the validity of or seeking to enjoin any action taken
pursuant to the provisions of the bill. Requires the board to make annual reports to the general assembly
regarding bonds and specifies information to be included in such reports.
Specifies that the powers conferred by the bill are in addition and supplemental to, and not in substitution
for, and the limitations imposed by the bill do not directly or indirectly modify, limit, or affect, the powers
conferred to the board, the state treasurer, the department of natural resources, or the Colorado water resources
and power development authority by any other law.
Makes legislative findings and declarations. Defines terms. Makes a conforming amendment. Provides
for the repeal of the provisions of the bill if the ballot question to be submitted at the 2002 general election is
rejected by the voters.

Be it enacted by the General Assembly of the State of Colorado:
SECTION 10 Article 60 oftitle 37, Colorado Revised Statutes, is amended BY THE ADDITION OF A
NEW PART to read:

PART 2
WATER INFRASTRUCTURE REVENUE BONDS
37-60-201. Legislative declaration. (1) 1HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT
COLORADO IS CURRENTLY EXPERIENCING ITS THIRD CONSECUTIVE YEAR OF DROUGHT CONDITIONS AND IS
LIKELY TO CONTINUE TO EXPERIENCE CYCLES OF DROUGHT IN THE FUTURE THAT WILL REDUCE THE AMOUNT OF
WATER RESOURCES AVAILABLE TO MEET THE NEEDS OF THE STATE'S GROWING POPULATION AND COULD CREATE
WATER SHORTAGES.
(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:
(a) COLORADO'S EXISTING WATER INFRASTRUCTURE IS INSUFFICIENT TO ENABLE THE STATE TO FULLY
EXERCISE ALL OF ITS COMPACT ENTITLEMENTS TO WATER, INCLUDING BUT NOT LIMITED TO PEAK FLOWS, AND IT
IS IN THE BEST INTEREST OF THE PEOPLE OF THE STATE FOR THE STATE TO FURTHER DEVELOP AND IMPROVE THE
STATE'S WATER INFRASTRUCTURE SO THAT THE STATE CAN RESERVE AS MUCH OF THE WATER TO WHICH IT IS
ENTITLED UNDER COMPACTS AS POSSIBLE AND INCREASE ITS AVAILABLE WATER RESOURCES.
(b) IT IS NECESSARY AND APPROPRIATE TO EXPEDITE Tlffi DEVELOPMENT AND IMPROVEMENT OF
COLORADO'S WATER INFRASTRUCTURE BY AUTHORIZING THE BOARD TO ISSUE VOTER-APPROVED WATER
INFRASTRUCTURE REVENUE BONDS FOR THE PURPOSE OF FUNDING WATER INFRASTRUCTURE PROJECTS
APPROVED BY THE GENERAL ASSEMBLY.
(3) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:
(a) WATER INFRASTRUCTURE REVENUE BONDS ISSUED PURSUANT TO THIS PART 2 DO NOT CONSTITUTE
"A DEBT BY LOAN IN ANY FORM" UNDER SECTION 3 OF ARTICLE XI OF THE STATE CONSTITUTION BECAUSE:

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