§ 22-43.7-102 — Legislative findings and declarations

Colorado § 22-43.7-102

• Jurisdiction: Colorado
• Title 22: Education
• Art.: Capital Construction Assistance

Text

(1) The general
assembly hereby finds and declares that:

(a) Colorado school districts, boards of cooperative services, and charter
schools have differing financial abilities to meet students' fundamental educational
needs, including the need for new public schools and renovations or for controlled
maintenance at existing public schools so that unsafe, deteriorating, or
overcrowded facilities do not impair students' abilities to learn.

(b) The establishment of a program to provide financial assistance to school
districts, boards of cooperative services, and charter schools throughout the state
that have difficulty financing new capital construction projects and renovating and
maintaining existing facilities will help such districts, boards of cooperative
services, and charter schools to meet students' fundamental educational needs.

(2) The general assembly further finds and declares that:

(a) Rental income, royalties, interest, and other income other than land sale
proceeds derived from state school lands may be used to support the public
schools of the state.

(b) It is necessary and appropriate for the state to build excellent schools
today by assisting school districts, boards of cooperative services, and charter
schools in completing needed public school facility capital construction projects
more quickly by:

(I) Entering into financed purchase of an asset or certificate of participation
agreements for the purpose of financing such projects; and

(II) Subject to the annual appropriation of such money by the general
assembly, using a portion of the rental income and royalties derived from state
school lands and, unless and until the state treasurer, pursuant to section 22-43.7-104 (2)(b)(I)(B), provides written notice to the joint budget committee of the general
assembly that the state treasurer has determined that the use of interest or income
earned on the deposit and investment of money in the public school fund to make
lease payments under a financed purchase of an asset or certificate of participation
agreement entered into pursuant to section 22-43.7-110 (2) will prevent the interest
component of the payments from qualifying for exemption from federal income
taxation and at any time after the state treasurer, pursuant to section 22-43.7-104
(2)(b)(I)(C), has rescinded any such determination, interest, and other income, other
than land sale proceeds, derived from state school lands, as well as certain other
available state money and matching money provided by school districts, boards of
cooperative services, and charter schools, to make payments payable under the
terms of the financed purchase of an asset or certificate of participation
agreements.

(c) It is also necessary and appropriate for the state to use a portion of such
rental income and royalties and, unless and until the state treasurer, pursuant to
section 22-43.7-104 (2)(b)(I)(B), provides written notice to the joint budget
committee of the general assembly that the state treasurer has determined that
the use of interest or income earned on the deposit and investment of money in the
public school fund to make payments under a financed purchase of an asset or
certificate of participation agreement entered into pursuant to section 22-43.7-110
(2) will prevent the interest component of the payments from qualifying for
exemption from federal income taxation and at any time after the state treasurer,
pursuant to section 22-43.7-104 (2)(b)(I)(C), has rescinded any such determination,
interest and other income, as well as certain other available state money to
continue to provide financial assistance to school districts, boards of cooperative
services, and charter schools in the form of cash funding for school renovation and
controlled maintenance projects.

(d) In accordance with the decision of the Colorado court of appeals in the
case denominated Colorado Criminal Justice Reform Coalition v. Ortiz , Case No. 04
CA 0879 (April 7, 2005), the financed purchase of an asset or certificate of
participation agreements to be entered into by the state pursuant to this article
43.7 do not constitute a multiple-fiscal year direct or indirect district debt or other
financial obligation whatsoever for purposes of section 20 (4)(a) of article X of the
state constitution.

(e) The provision of financial assistance for public school facility capital
construction pursuant to this article meets the requirements of section 3 of article
IX of the state constitution and shall be applied first to satisfy the legal obligations
of the state under the settlement reached in the case denominated Giardino v.
Colorado State Board of Education, et al. , Case No. 98 CV 246, in the district court
for the city and county of Denver.

Legislative History

Source: L. 2008: Entire article R&RE, p. 1040, � 1, effective May 22. L. 2009: (2)(b)(II) and (2)(c) amended, (SB 09-257), ch. 424, p. 2363, � 1, effective June 4. L. 2021: (2)(b), (2)(c), and (2)(d) amended, (HB 21-1316), ch. 325, p. 2001, � 14, effective July 1.