(1) The securities
commissioner is hereby empowered to administer and enforce all provisions of this
article and to provide the division with such books, records, files, and printing and
other supplies and such officers and clerical and other assistance as may be
necessary in the commissioner's discretion to perform the duties required of the
securities commissioner under this article, subject to appropriations made by the
general assembly.
(2) The securities commissioner shall make such rules, forms, and orders as
are necessary to assure that bonds issued by a district shall meet certain
prescribed investment criteria and shall not unduly burden future property owners
in such district. To further effectuate the purposes of this article, the securities
commissioner may, from time to time, make, amend, and rescind such rules and
forms as are necessary to carry out the provisions of this article, including rules and
forms governing applications for registration and reports and defining any terms,
whether or not used in this article, insofar as the definitions are not inconsistent
with the provisions of this article. For the purposes of rules and forms, the
securities commissioner may classify bonds, issuers, and matters within the
securities commissioner's jurisdiction and prescribe different requirements for
different classes.
(3) No rule, form, or order shall be made, amended, or rescinded unless the
securities commissioner finds that the action is necessary or appropriate in the
public interest or for the protection of investors or present or future property
owners and is consistent with the purposes and provisions of this article. In
prescribing rules and forms, the securities commissioner may cooperate with the
securities and exchange commission, the municipal securities rule-making board,
the department of local affairs, and the state auditor with a view to effectuating
this article and to achieving uniformity in the form and content of applications and
reports wherever practicable.
(4) (a) Unless otherwise prescribed by law, the securities commissioner may,
by rule or order, prescribe the form and content of financial statements of persons
other than districts required under this article, the circumstances under which
consolidated financial statements shall be filed, and whether any required financial
statements shall be certified by certified public accountants. Unless the
commissioner by rule or order provides otherwise, a financial statement required of
such persons under this article must be prepared in accordance with generally
accepted accounting principles or other accounting principles or in such other form
as may be prescribed for the issuer of the financial statement of such person by
law.
(b) Unless otherwise prescribed by law, the securities commissioner may, by
rule or order, prescribe the form and content of supplemental financial information
of districts required under this article. Any supplemental financial information
required under this article must be prepared in accordance with generally accepted
accounting principles or such other accounting principles or in such other form as
are prescribed for the supplemental financial information of such district by law.
(5) The securities commissioner may, by rule or order, establish standards
and procedures for full disclosure to property owners in, and potential bond
investors of, a district of such district's current financial condition.
(6) (a) The securities commissioner shall, by rule or order, require a special
district to file with the securities commissioner a copy of the annual budget which
such special district is required to file with the department of local affairs. Such
budget shall not authorize the use of bond reserve funds or the proceeds of a sale
or proposed sale of public facilities or improvements built or paid for with bond
proceeds for bond payments without the prior written authorization of the
securities commissioner.
(b) The securities commissioner shall, by rule or order, require districts to file
with the securities commissioner a copy of the annual audit required pursuant to
section 29-1-603, C.R.S., at the same time as districts are required to file audits of
such districts with the state auditor.
(c) Where the application for registration of a special district is effective
pursuant to section 11-59-108, the securities commissioner may, by rule or order,
require such a special district to file with the audited statement a further disclosure
statement setting forth credit and financial information which will assist existing
and potential investors in evaluating the district's ability to meet its debt service
requirements, the enforcement of bondholders' rights and remedies, and the
attainment of growth projections set forth in any documents accompanying the
registration application.
(d) Any statements required to be filed pursuant to paragraph (a), (b), or (c)
of this subsection (6) shall be made available to any person for inspection and
copies thereof supplied as ordered by any person at a fee to be determined by the
securities commissioner.
(7) The securities commissioner shall, by rule or order, require that a district
obtain prior written approval of the securities commissioner before making any use
of the proceeds of a bond offering in a manner that is contrary in any material
respect to the use of proceeds that was described in the application for registration
and declared effective by the securities commissioner.
(8) The securities commissioner shall, by rule or order, provide means by
which bondholders, at their expense, may communicate with the holders of bonds
of the same district so long as the confidentiality of the names and addresses of the
bondholders is protected.
(9) The securities commissioner may compile information and reports and
may make recommendations to the general assembly and the governor for such
action, including legislation, as may be deemed desirable to promote the financial
integrity of all investments in obligations of instrumentalities of the state. For such
purposes, the securities commissioner may require from instrumentalities of the
state such reports and information as may be necessary to determine the financial
stability of such instrumentalities and the financial character of their obligations.
(10) All the powers of the securities commissioner described in this section
relating to a district issuing bonds shall apply to any other taxing district signatory
to a contract which pledges the revenues of such contract to the payment of the
obligations of the issuing district.