§ 24-90-110.7 — Regional library authorities

Colorado § 24-90-110.7

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Libraries

Text

(1) (a) In order to support and
provide for public library service on a regional basis, particularly in any region of the
state lacking sufficient public library resources to adequately serve the needs of
the public, any combination of two or more governmental units acting through their
governing bodies, regardless of whether such unit currently maintains a public
library, may, by contracting with or among each other, establish a separate
governmental entity to be known as a regional library authority, referred to in this
section as an authority. Such authority may be used by such contracting member
governmental units to effect the acquisition, construction, financing, operation, or
maintenance of publicly supported library services on a regional basis within the
jurisdiction of the authority. For purposes of this section, a governmental unit may
include a library district within the meaning of section 24-90-103 (6).

(b) No such authority shall be formed pursuant to this section unless each of
the contracting member governmental units forming such authority has passed a
resolution or ordinance in accordance with the requirements of paragraph (d) of this
subsection (1) and has entered into a contract pursuant to section 29-1-203, C.R.S.,
for the creation, operation, and administration of such authority.

(c) (I) In connection with the establishment of an authority, at least one
public hearing shall be conducted by each of the contracting member
governmental units that intend to enter into a contract for the purpose of forming
the authority. Any such hearing shall be preceded by adequate and timely notice of
the time and place of the hearing. The notice shall specify the matters to be
included in the resolution or ordinance and shall fix a date for the hearing that shall
be held not less than thirty nor more than sixty days after the date of first
publication of such notice.

(II) Any public hearing conducted in accordance with the requirement of
subparagraph (I) of this paragraph (c) shall address, without limitation, the purposes
of the authority, and, where more than one governmental unit is involved in the
formation of the authority, the powers, rights, obligations, and responsibilities,
financial and otherwise, of each governmental unit that is forming the authority.

(d) The resolution or ordinance to be adopted by each of the contracting
member governmental units forming the authority in accordance with the
requirements of paragraph (b) of this subsection (1) shall:

(I) Describe the legal service area of the authority;

(II) Describe the proposed governance of the authority; and

(III) State that the registered electors residing within the territorial
boundaries of such contracting member governmental units shall approve any
amount of sales or use tax, or both, in accordance with the requirements of
paragraph (f) of subsection (3) of this section or an ad valorem tax in accordance
with the requirements of paragraph (h) of subsection (3) of this section not
previously approved by the electors before the authority shall levy such taxes.

(2) Upon establishment of an authority satisfying the requirements of this
section, a contract between the legislative bodies of the contracting member
governmental units, shall be effected within ninety days. Any contract establishing
such authority shall, without limitation, specify:

(a) The name and purpose of such authority and the functions or services to
be provided by such authority;

(b) The boundaries of the authority, which boundaries may include less than
the entire area of any separate county, but shall not be less than the entire area of
any municipality and any other governmental unit forming the authority, and may be
modified after the establishment of the authority as provided in the contract;

(c) The establishment and organization of a governing body of the authority,
which shall be a board of directors, referred to in this section as the board of the
authority, in which all legislative power of the authority is vested, including:

(I) The number of directors, their manner of appointment, their terms of
office, their compensation, if any, and the procedure for filling vacancies on the
board of the authority;

(II) The officers of the authority, the manner of their selection, and their
duties;

(III) The voting requirements for action by the board of the authority; except
that, unless specifically provided otherwise, a majority of directors shall constitute
a quorum, and a majority of the quorum shall be necessary for any action taken by
the board of the authority; and

(IV) The duties of the board of the authority, which shall include the
obligation to comply with the provisions of parts 1, 5, and 6 of article 1 of title 29,
C.R.S.;

(d) Provisions for the disposition, division, or distribution of any property or
assets of the authority;

(e) The term of the contract, which may be continued for a definite term or
until rescinded or terminated, and the method, if any, by which it may be rescinded
or terminated; except that such contract may not be rescinded or terminated so
long as the authority has bonds, notes, or other obligations outstanding, unless
provision for full payment of such obligations, by escrow or otherwise, has been
made pursuant to the terms of such obligations; and

(f) The expected sources of revenue of the authority and any requirements
that contracting member governmental units consent to the levying of any taxes
within the jurisdiction of such member. If the authority levies any taxes, the
contract shall further include requirements that:

(I) Prior to and as a condition of levying any such taxes or fees, the board of
the authority shall adopt a resolution determining that the levying of the taxes or
fees will fairly distribute the costs of the authority's activities among the persons or
communities benefited thereby and will not impose an undue burden on any
particular group of persons or communities;

(II) Each such tax shall conform with any requirements specified in
subsection (3) of this section; and

(III) The authority shall designate a financial officer who shall coordinate
with the department of revenue regarding the collection of a sales and use tax
authorized pursuant to paragraph (f) of subsection (3) of this section. This
coordination shall include but not be limited to the financial officer identifying
those businesses eligible to collect the sales and use tax and any other
administrative details identified by the department.

(3) The general powers of such authority shall include the following powers:

(a) To acquire, construct, finance, operate, or maintain public library services
located within the territorial boundaries of the authority;

(b) To make and enter into contracts with any person, including, without
limitation, contracts with state or federal agencies, private enterprises, and
nonprofit organizations also involved in providing such public library services or the
financing for the services, irrespective of whether the agencies are parties to the
contract establishing the authority;

(c) To employ agents and employees;

(d) To cooperate with state and federal governments in all respects
concerning the financing of such library services;

(e) To acquire, hold, lease, as lessor or lessee, sell, or otherwise dispose of
any real or personal property, commodity, or service;

(f) (I) Subject to the provisions of subsection (9) of this section, to levy, in all
of the area described in subsection (3)(f)(II) of this section within the boundaries of
the authority, a sales or use tax, or both, at a rate not to exceed one percent, upon
every transaction or other incident with respect to which a sales or use tax is levied
by the state pursuant to the provisions of article 26 of title 39. The tax imposed
pursuant to this subsection (3)(f) is in addition to any other sales or use tax imposed
pursuant to law. The executive director of the department of revenue shall collect,
administer, and enforce the sales or use tax, as provided in part 2 of article 2 of title
29.

(II) The area in which the sales or use tax authorized by this subsection (3)(f)
is levied may not include less than the entire area of any municipality located within
the area in which the tax will be levied. The area may also include portions of
unincorporated areas located within a county.

(III) The authority shall apply monthly distributions received from the
department of revenue pursuant to section 29-2-207 solely to the acquisition,
construction, financing, operation, or maintenance of public library services within
the jurisdiction of the authority.

(IV) The department of revenue shall retain an amount not to exceed the cost
of the collection, administration, and enforcement and shall transmit the amount
retained to the state treasurer, who shall credit the same amount to the regional
library authority sales tax fund, which fund is hereby created in the state treasury.
The amounts so retained are hereby appropriated annually from the fund to the
department to the extent necessary for the department's collection, administration,
and enforcement of the provisions of this section. Any money remaining in the fund
attributable to taxes collected in the prior fiscal year shall be transmitted to the
authority; except that prior to the transmission to the authority of such money, any
money appropriated from the general fund to the department for the collection,
administration, and enforcement of the tax for the prior fiscal year shall be repaid.

(g) Notwithstanding any other provision of law, any sales tax authorized
pursuant to subparagraph (I) of paragraph (f) of this subsection (3) shall not be
levied on:

(I) The sale of tangible personal property delivered by a retailer or a retailer's
agent or delivered to a common carrier for delivery to a destination outside the
boundaries of the authority; and

(II) The sale of tangible personal property on which a specific ownership tax
has been paid or is payable when such sale meets the following conditions:

(A) The purchaser does not reside within the boundaries of the authority or
the purchaser's principal place of business is outside the boundaries of the
authority; and

(B) The personal property is registered or required to be registered outside
the boundaries of the authority under the laws of this state.

(h) Subject to the provisions of subsection (9) of this section, to levy, in all of
the area within the boundaries of the authority, an ad valorem tax in accordance
with the requirements of this section. The tax imposed pursuant to this paragraph
(h) shall be in addition to any other ad valorem tax imposed pursuant to law. In
accordance with the schedule prescribed by section 39-5-128, C.R.S., the board of
the authority shall certify to the board of county commissioners of each county
within the authority, or having a portion of its territory within the district, the levy of
ad valorem property taxes in order that, at the time and in the manner required by
law for the levying of taxes, such board of county commissioners shall levy such tax
upon the valuation for assessment of all taxable property within the designated
portion of the area within the boundaries of the authority. It is the duty of the body
having authority to levy taxes within each county to levy the taxes provided by this
subsection (3). It is the duty of all officials charged with the duty of collecting taxes
to collect the taxes at the time and in the form and manner and with like interest
and penalties as other taxes are collected and when collected to pay the same to
the authority ordering the levy and collection. The payment of such collections shall
be made monthly to the authority or paid into the depository thereof to the credit of
the authority. All taxes levied under this paragraph (h), together with interest
thereon and penalties for default in payment thereof, and all costs of collecting the
same shall constitute, until paid, a perpetual lien on and against the property taxed,
and the lien shall be on a parity with the tax lien of other general taxes.

(i) To incur debts, liabilities, or obligations;

(j) To sue and be sued in its own name;

(k) To have and use a corporate seal;

(l) To fix, maintain, and revise fees, rents, security deposits, and charges for
functions, services, or facilities provided by the authority;

(m) To adopt, by resolution, rules respecting the exercise of its powers and
the carrying out of its purposes;

(n) To exercise any other powers that are essential to the provision of
functions, services, or facilities by the authority and that are specified in the
contract; and

(o) To do and perform any acts and things authorized by this section under,
through, or by means of an agent or by contracts with any person, firm, or
corporation.

(4) The authority established by such contracting member governmental
units shall be a political subdivision and a public corporation of the state, separate
from the parties to the contract, and shall be a validly created and existing political
subdivision and public corporation of the state, irrespective of whether a
contracting member governmental unit withdraws, whether voluntarily, by
operation of law, or otherwise, from the authority subsequent to its creation under
circumstances not resulting in the rescission or termination of the contract
establishing such authority pursuant to its terms. It shall have the duties, privileges,
immunities, rights, liabilities, and disabilities of a public body politic and corporate.
The authority may deposit and invest its moneys in the manner provided in section
43-4-616, C.R.S.

(5) The bonds, notes, and other obligations of such authority shall not be the
debts, liabilities, or obligations of the contracting member governmental units.

(6) The contracting member governmental units may provide in the contract
for payment to the authority of funds from proprietary revenues for services
rendered or facilities provided by the authority, from proprietary revenues or other
public funds as contributions to defray the cost of any purpose set forth in the
contract, and from proprietary revenues or other public funds as advances for any
purpose subject to repayment by the authority.

(7) The authority may issue revenue or general obligation bonds, as the term
bond is defined in section 43-4-602 (3), C.R.S., and may pledge its revenues and
revenue-raising powers for the payment of the bonds. The bonds shall be issued on
the terms and subject to the conditions set forth in section 43-4-609, C.R.S.

(8) The income or other revenues of the authority, all properties at any time
owned by an authority, any bonds issued by an authority, and the transfer of and the
income from any bonds issued by the authority are exempt from all taxation and
assessments in the state.

(9) (a) No action by an authority to establish or increase any tax authorized
by this section shall take effect unless first submitted to a vote of the registered
electors residing within the boundaries of the authority in which the tax is proposed
to be collected.

(b) No action by an authority creating a multiple-fiscal year debt or other
financial obligation that is subject to section 20 (4)(b) of article X of the state
constitution shall take effect unless first submitted to a vote of the registered
electors residing within the boundaries of the authority.

(c) The questions proposed to the registered electors under paragraphs (a)
and (b) of this subsection (9) shall be submitted at a general election or any election
to be held on the first Tuesday in November of an odd-numbered year. The action
shall not take effect unless a majority of the registered electors voting thereon at
the election vote in favor thereof. The election shall be conducted in substantially
the same manner as county elections and the county clerk and recorder of each
county in which the election is conducted shall assist the authority in conducting
the election. The cost of the election shall be incurred by the contracting member
governmental units that have formed the authority in proportion to the percentage
of the population of the governmental units within the territorial boundaries of the
authority. No moneys of the authority may be used to urge or oppose passage of an
election required under this section.

(10) (a) For the purpose of determining any authority's fiscal year spending
limit under section 20 (7)(b) of article X of the state constitution, the initial spending
base of the authority shall be the amount of revenues collected by the authority
from sources not excluded from fiscal year spending pursuant to section 20 (2)(e)
of article X of the state constitution during the first full fiscal year for which the
authority collected revenues.

(b) For purposes of this subsection (10), fiscal year means any year-long
period used by an authority for fiscal accounting purposes.

(11) An authority established by contracting member governmental units
shall, if the contract so provides, be the successor to any nonprofit corporation,
agency, or other entity theretofore organized by the contracting member
governmental units to provide the same function, service, or facility, and the
authority shall be entitled to all the rights and privileges and shall assume all the
obligations and liabilities of such other entity under existing contracts to which
such other entity is a party.

(12) (a) The authority granted pursuant to this section shall in no manner limit
the powers of any governmental unit to cooperate on an intergovernmental basis, to
enter into any contract with another governmental entity, or to establish a separate
legal entity pursuant to the provisions of section 29-1-203, C.R.S., or any other
applicable law, or otherwise to carry out their individual powers under applicable
statutory or charter provisions, nor shall such authority limit the powers reserved to
cities and towns pursuant to the state constitution.

(b) Notwithstanding any other provision of law, any governmental unit that
has entered into a contract for the purpose of forming an authority may form such
authority in accordance with the requirements of this section without any effect on
the ability of the unit to own its own property, maintain a separate governing body
or board of trustees, levy its own taxes for library purposes, or retain its own
identity.

(c) Notwithstanding any other provision of law, nothing in this section shall
be construed to authorize any one or more library districts to:

(I) Form an authority without entering into a contract with one or more
governmental units to form such authority in accordance with the requirements of
this section; or

(II) Exercise any of the powers of said authority, including, without limitation,
the power to levy a sales or use tax, in the absence of entering into a contract with
one or more governmental units for the purpose of forming such authority in
accordance with the requirements of this section.

Legislative History

Source: L. 2003: Entire section added, p. 2450, � 11, effective August 15. L. 2008: (3)(f)(I) amended, p. 989, � 2, effective August 5. L. 2024: (3)(f) amended, (SB 24-025), ch. 144, p. 552, � 2, effective July 1, 2025.