§ 22-45-112 — Sale of assets

Colorado § 22-45-112

• Jurisdiction: Colorado
• Title 22: Education
• Art.: Accounting and Reporting

Text

(1) Except as authorized by subsection (2) or (3)
of this section, if lands, buildings, or lands and buildings are sold by a school
district, the proceeds, less the costs, of such sale shall be deposited in and
expended from either the bond redemption fund or the capital reserve fund, or both
such funds of the school district, as determined by the board of education. This
provision shall apply also to the proceeds from any insurance which may accrue as
a result of fire, explosion, or other casualty when such insurance proceeds cannot
be used in an advantageous manner to repair the property to which the damage
occurred.

(2) (a) Prior to July 1, 2005, a school district may sell land, buildings, or land
and buildings and deposit in and expend from its general fund the proceeds, less
costs, of the sale if:

(I) The board of education of the school district declares a fiscal shortfall
emergency pursuant to paragraph (b) of this subsection (2);

(II) The school district sells the property to an entity, including but not
limited to the state treasurer pursuant to section 22-54-110 (2)(d), who, at the time
of the sale, enters into a financed purchase of an asset or certificate of
participation agreement with the district covering all of the property that is subject
to annual appropriation by the school district and has a term of no more than one
year; and

(III) The state treasurer approves in writing the terms of the sale and
financed purchase of an asset or certificate of participation agreements.

(b) A board of education of a school district may declare a fiscal shortfall
emergency if:

(I) The district either:

(A) Is denied a loan by the state treasurer pursuant to section 22-54-110; or

(B) Notifies the state treasurer that the district is unable to repay a loan
obtained pursuant to section 22-54-110 in the same state fiscal year that the loan
was made;

(II) The board of education of the school district holds at least one public
hearing, after full and timely notice to the public, on the existence of a fiscal
shortfall emergency; and

(III) At a public meeting held after the hearing held pursuant to
subparagraph (II) of this paragraph (b), at least two-thirds of the members of the
board of education of the school district approve a resolution declaring the fiscal
shortfall emergency.

(3) The proceeds, less the costs, of the sale of lands, buildings, or lands and
buildings that are sold by a school district may be applied, in the discretion of the
board of education, to pension liabilities of the district or to make payments to the
public employees' retirement association of Colorado or to the refinancing of any
transaction entered into for such purposes. Notwithstanding any other provision of
law, any such proceeds that are held in a separate account to secure the school
district's obligation to make payments to the association may be invested by the
district in any investment in which moneys of the association may be invested.

Legislative History

Source: L. 69: p. 1037, � 1. C.R.S. 1963: � 123-33-12. L. 2003: Entire section amended, p. 1286, � 1, effective April 22. L. 2005: (1) amended and (3) added, p. 527, � 3, effective May 24. L. 2009: (3) amended, (SB 09-282), ch. 288, p. 1399, � 64, effective January 1, 2010. L. 2021: (2)(a)(II) and (2)(a)(III) amended, (HB 21-1316), ch. 325, p. 2013, � 22, effective July 1.