(1) Subject to the requirements of
subsection (2) of this section, the following issues of bonds by a district are
exempted from all of the provisions of sections 11-59-104 and 11-59-106:
(a) Bonds issued on or before December 31, 1991;
(b) Any issue of general obligation bonds where the total obligation
represented by the issue together with any other general obligation of the district
does not at the time of issuance exceed the greater of two million dollars or fifty
percent of the valuation for assessment of the taxable property in the district as
certified by the assessor;
(c) Any issue of bonds that is rated in one of its four highest rating
categories by one or more nationally recognized organizations which regularly rate
such obligations;
(d) Any issue of bonds by a district in which infrastructure is in place which
has been determined by the board of such district to be necessary to construct or
otherwise provide additional improvements specifically ordered by a federal or
state regulatory agency to bring such district into compliance with applicable
federal or state laws or regulations for the protection of the public health or the
environment if the proceeds raised as a result of such issue are limited solely to the
direct and indirect costs of the construction or improvements mandated and are
used solely for those purposes;
(e) Any issue of bonds secured as to the payment of the principal and
interest on the debt by a letter of credit, line of credit, or other credit enhancement,
any of which must be irrevocable and unconditional, issued by a depository
institution:
(I) With a net worth of not less than ten million dollars in excess of the
obligation created by the issuance of the letter of credit, line of credit, or other
credit enhancement;
(II) With the minimum regulatory capital as defined by the primary regulator
of such depository institution to meet such obligation; and
(III) Where the obligation does not exceed ten percent of the total capital
and surplus of the depository institution, as those terms are defined by the primary
regulator of such depository institution;
(f) Any issue of bonds insured as to the payment of the principal and interest
on the debt by a policy of insurance issued by an insurance company authorized to
do business as an insurance company in this state and authorized for such risk by
the insurance commissioner appointed pursuant to section 10-1-104, C.R.S.;
(g) Any issue of bonds not involving a public offering made exclusively to
accredited investors, as that term is defined under sections 2(a)(15) and 4(a)(2) of
the federal Securities Act of 1933, as amended, 15 U.S.C. secs. 77b (a)(15) and 77d
(a)(2), by regulation adopted thereunder by the securities and exchange
commission;
(h) Any issue of bonds made pursuant to an order of a court of competent
jurisdiction;
(i) Any issue of bonds by a district which has principal amounts payable from
moneys other than the proceeds of an ad valorem tax, where the total of such
obligations represented by the issue, together with other such bonds of the district,
does not at the time of the issuance exceed two million dollars;
(j) Any issue of bonds of the district issued to the Colorado water resources
and power development authority which evidences a loan from said authority to the
district; and
(k) Any issue of bonds by a district that contains territory subject to an
intergovernmental annexation agreement between the city and county of Denver
and Adams county dated April 21, 1988, made pursuant to section 30-6-109.5,
C.R.S.
(1.5) (a) The securities commissioner may make such rules, forms, and orders
as are necessary to implement the provisions of subsection (1) of this section and to
define any terms contained therein insofar as the definitions are not inconsistent
with the provisions of this article.
(b) No such rule, form, or order may be made, amended, or rescinded unless
the securities commissioner finds that the action is necessary or appropriate in the
public interest or the protection of investors 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 subsection (1) of this section and to
achieving uniformity wherever practicable.
(c) The securities commissioner may, 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.
(2) As conditions to the applicability of the exemptions provided in
subsection (1) of this section, the district issuing the bonds must file or cause to be
filed with the securities commissioner at least five days prior to the first sale of
such bonds:
(a) A notice of claim of exemption in the form and containing the information
prescribed by the securities commissioner;
(b) A copy of the official statement to be distributed in connection with such
offering; and
(c) An exemption fee, which shall be determined and collected pursuant to
section 11-59-119.
(2.5) For purposes of the application of this section, exemption from
registration under subsection (1) of this section shall not be contingent upon review
or approval of any information filed with the securities commissioner under
subsection (2) of this section.
(3) The securities commissioner may, by rule or order and subject to such
terms and conditions as prescribed therein, exempt specified bonds or types of
bonds or transactions therein from section 11-59-106 if the securities commissioner
finds that the application of section 11-59-106 to such bonds or transactions is not
necessary in the public interest and for the protection of investors.