Source: http://www.leg.state.co.us/preclics/1999/hbills99/hb1325.htm
Timestamp: 2017-10-22 22:55:44
Document Index: 461744993

Matched Legal Cases: ['art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7', 'art 6', 'art 7', 'art 7', 'art 7', 'art 7', 'art 7']

HOUSE BILL 99-1325
BY REPRESENTATIVES George, Alexander, Clapp, Dean, Gotlieb, Kaufman, Larson, Mace, May, McPherson, Miller, Scott, Sinclair, Smith Spence, Stengel, Swenson, Taylor, Webster, S. Williams, and T. Williams;
also SENATORS Powers and Tebedo.
Concerning transportation revenue anticipation notes.
SECTION 1. Article 4 of title 43, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:
TRANSPORTATION REVENUE ANTICIPATION NOTES
43-4-701. Legislative declaration. (1) The general assembly hereby finds and declares that:
(e) Utilizing revenue anticipation notes to finance federal aid transportation projects also results in significant cost savings to the state, since such transportation projects can be completed at present-day costs and at an accelerated pace, but the state needs to be able to act quickly to issue revenue anticipation notes in order to realize these cost savings; and
(f) It is reasonable and necessary to utilize revenue anticipation notes for the financing of federal aid transportation projects.
(c) Revenue anticipation notes issued in accordance with the provisions of this part 7 that evidence the right to receive payments in subsequent fiscal years contingent upon funds for such payments being allocated on an annual basis in the sole discretion of the transportation commission do not constitute "a debt by loan in any form" under section 3 of article XI of the state constitution based upon the Colorado supreme court's decision in Submission of Interrogatories on House Bill 99-1325, Case No. 99SA108 (April 23, 1999), since the notes are not a legally enforceable obligation against the state in future years and the annual allocation of such funds for the payment of such notes is in the sole discretion of the transportation commission; and
(d) In accordance with the Colorado supreme court decision in Submission of Interrogatories on House Bill 99-1325, Case No. 99SA108 (April 23, 1999), the proceeds of any transportation revenue anticipation notes issued in accordance with this part 7 are not included in state fiscal year spending for purposes of section 20 of article X of the state constitution and article 77 of title 24, C.R.S.
43-4-702. Definitions. As used in this part 7, unless the context otherwise requires:
43-4-703. Submission of ballot question regarding issuance of transportation revenue anticipation notes. (1) The secretary of state shall submit a ballot question to a vote of the registered electors of the state of Colorado at the statewide election to be held in November, 1999, for their approval or rejection. Each elector voting at said November election shall cast a vote as provided by law either "Yes" or "No" on the proposition: "Shall state of Colorado debt be increased up to $1,700,000,000, with a maximum repayment cost of $2,300,000,000, with no increase in any taxes, for the purpose of addressing the critical, priority transportation needs in the state by financing transportation projects that qualify for federal funding through the issuance of revenue anticipation notes, and shall earnings on the proceeds of such notes constitute a voter-approved revenue change?"
(2) The votes cast for the adoption or rejection of the question submitted pursuant to subjection (1) of this section shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress.
43-4-704. Powers of executive director. The executive director is authorized to enter into contracts with the federal government, the state of Colorado, any state institution or agency, any political subdivision, any department, agency, or instrumentality of a political subdivision, and any political or public corporation of the state, and with any person necessary or incidental to the performance of the duties and the execution of the powers of the executive director under this part 7.
43-4-705. Revenue anticipation notes. (1) Subject to the provisions of this part 7, the executive director, on behalf of the department, from time to time, may issue revenue anticipation notes for the purpose of financing any qualified federal aid transportation projects.
(2) (a) Subject to the provisions of this subsection (2), the principal of and interest on revenue anticipation notes and any costs associated with the issuance and administration of such notes shall be payable solely from:
(II) Notwithstanding the provisions of section 43-1-220 (2) (c) and (2) (h), the state highway fund, the state highway supplementary fund, or both, shall be reimbursed for the amount of moneys in said fund or funds used in accordance with subparagraph (I) of this paragraph (c) from federal transportation funds that the commission determines are not needed in the future to pay the federal share of principal, interest, and costs.
(b) As the executive director deems appropriate, the certificate, trust indenture, or other instrument authorizing revenue anticipation notes may contain such provisions setting forth the rights and remedies of the owners or holders of the revenue anticipation notes, may contain such provisions for protecting and enforcing the rights and remedies of the owners or holders of the revenue anticipation notes as the executive director deems appropriate, and may contain such other provisions that the executive director deems appropriate for the security of the owners or holders of the revenue anticipation notes. Such provisions may include, but shall not be limited to, provisions regarding letters of credit, insurance, stand-by credit agreements, or other forms of credit ensuring timely payment of the revenue anticipation notes, including the redemption price or the purchase price, and provisions regarding the reimbursement of providers of such credit out of revenues available for the payment of principal of and interest on the revenue anticipation notes for any amounts paid by such providers with respect to such notes.
(12) (a) The proceeds from the issuance of revenue anticipation notes that are not otherwise pledged for the payment of such notes, state matching funds, or federal transportation funds, any of which have been allocated on an annual basis by the commission, in its sole discretion, in accordance with section 43-1-113 for the payment of revenue anticipation notes or any costs associated with the issuance and administration of such notes, are pledged and shall be used only for the purpose or purposes for which such revenues are allocated. The proceeds from the issuance of revenue anticipation notes that are pledged pursuant to section 43-4-707 (1) shall be used only for the purpose or purposes for which such revenues are pledged. Any such pledge shall be valid and binding from the time the commission makes the allocation; except that any pledge of revenue anticipation note proceeds pursuant to section 43-4-707 (1) shall be valid and binding from the date of issuance of such notes. The pledge shall create a valid security interest, and such revenues shall immediately be subject to the lien of the pledge and security interest without any physical delivery or further act, and the lien of the pledge and security interest shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against the pledging party irrespective of whether such claiming party has notice of such lien. The instrument by which the pledge and security interest is created need not be recorded or filed in order to perfect such pledge and security interest.
(13) Notwithstanding any other provision of this part 7 to the contrary, the executive director shall have the authority to issue revenue anticipation notes pursuant to this part 7 only if voters statewide approve the ballot question submitted at the November, 1999, statewide election pursuant to section 43-4-703 (1) and only then to the extent allowed under the maximum amounts of debt and repayment cost so approved.
43-4-706. Financial obligations subject to annual budget allocation. (1) Any revenue anticipation notes issued in accordance with this part 7 shall constitute a contract between the department and the owner or holder thereof. In no event shall any decision by the commission not to allocate revenue anticipation note proceeds not otherwise pledged, state matching funds, or federal transportation funds in any given fiscal year for the payment of such notes or any costs associated with the issuance and administration of such notes be construed to constitute an action impairing such contract.
(2) (a) Every contract entered into by the executive director pursuant to the provisions of this part 7 shall provide that all financial obligations of the state under such contracts are subject to allocation on an annual basis by the commission, in its sole discretion, in accordance with section 43-1-113 and that such contracts shall not be deemed or construed as creating an indebtedness of the state within the meaning of the state constitution or the laws of the state of Colorado concerning or limiting the creation of indebtedness by the state of Colorado.
(b) In addition, revenue anticipation notes issued by the executive director pursuant to the provisions of this part 7 and every contract relating to the issuance of such notes shall provide that all financial obligations of the state in regard to the portion of the principal of and interest on such notes and the costs associated with the issuance and administration of such notes that may be paid from federal transportation funds pursuant to federal law and any agreement between the United States department of transportation and the department or the political subdivision that is or is to be the initial recipient of such federal transportation funds are subject to continuing federal appropriations of federal transportation funds at a level equal to or greater than the amount needed to pay the federal share of principal, interest, and costs on the revenue anticipation notes.
43-4-707. Note proceeds. (1) The certificate, trust indenture, or other instrument authorizing the issuance of revenue anticipation notes in accordance with the provisions of this part 7 may pledge all or any portion of the proceeds from the issuance of such notes to the payment of such notes and any costs associated with the issuance and administration of such notes.
(3) Any proceeds from the issuance of such notes and any earnings on such proceeds shall not be included in state fiscal year spending, as defined by section 24-77-102 (17) (a), C.R.S., for any given fiscal year for purposes of section 20 of article X of the state constitution and article 77 of title 24, C.R.S.
43-4-708. Investments. (1) Any proceeds from the issuance of revenue anticipation notes or any other moneys relating to such notes that are credited to the state highway supplementary fund shall be invested in the same manner as all other moneys credited to said fund as provided by law.
43-4-709. Powers of political subdivisions. (1) A political subdivision, for the purpose of aiding and cooperating in the financing, construction, operation, or maintenance of any qualified federal aid transportation project, has the power:
(c) To transfer or assign to the department any contracts that may have been awarded by the political subdivision for construction, operation, or maintenance of any qualified federal aid transportation project.
43-4-710. Notes legal investments. All banks, trust companies, savings and loan associations, insurance companies, executors, administrators, guardians, trustees, and other fiduciaries may legally invest any moneys within their control in any revenue anticipation notes issued in accordance with this part 7. Public entities, as defined in section 24-75-601 (1), C.R.S., may invest public funds in such revenue anticipation notes only if the notes satisfy the investment requirements established in part 6 of article 75 of title 24, C.R.S.
43-4-711. Exemption from taxation. Except as otherwise provided in this section, the income from revenue anticipation notes is exempt from all taxation and assessments in the state. In the certificate, indenture of trust, or other instrument authorizing the issuance of such notes, the executive director may waive the exemption from federal or state income taxation for interest on the notes.
43-4-712. No action maintainable. An action or proceeding at law or in equity to review any acts or proceedings or to question the validity or enjoin the performance of any act or proceedings or the issuance of any revenue anticipation notes or for any other relief against or from any acts or proceedings done under this part 7, whether based upon irregularities or jurisdictional defects, shall not be maintained unless commenced with thirty days after the performance of the act or proceedings or the effective date thereof, whichever occurs first, and is thereafter perpetually barred.
43-4-713. Annual reports. (1) No later than January 15, 2001, and no later than January 15 of each year thereafter, the executive director shall submit a report to the members of the joint budget committee of the general assembly, the members of the legislative audit committee of the general assembly, the chair of the transportation and energy committee of the house of representatives, and the chair of the transportation committee of the senate that includes, at a minimum, the following information:
(d) The total amount of proceeds from the issuance of revenue anticipation notes, state matching funds, and federal transportation funds allocated by the commission in each state fiscal year for the payment of such revenue anticipation notes and the costs associated with the issuance and administration of such notes.
43-4-714. Priority of strategic transportation project investment program. If the executive director issues any revenue anticipation notes in accordance with the provisions of this part 7, the proceeds from the sale of such notes that are not otherwise pledged for the payment of such notes shall be used for the qualified federal aid transportation projects included in the strategic transportation project investment program of the department of transportation.
43-4-715. Construction of part. The powers conferred by this part 7 shall be in addition and supplemental to, and not in substitution for, and the limitations imposed by this part 7 shall not directly or indirectly modify, limit, or affect, the powers conferred to the executive director, the commission, or the department by any other law.
SECTION 2. 43-1-105, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:
43-1-113. Funds - budgets - fiscal year - reports and publications. (19) (a) Any payments for transportation revenue anticipation notes issued to finance any qualified federal aid transportation project and any costs associated with the issuance and administration of such notes shall be subject to annual allocation by the commission, in its sole discretion, in accordance with part 7 of article 4 of this title.
(b) Federal transportation funds, as defined in section 43-4-702 (4), that are paid to the state shall be allocated and used to reimburse the state highway fund, the state highway supplementary fund, or both, for any moneys in said fund or funds used to pay transportation revenue anticipation notes or any costs associated with the issuance and administration of such notes in accordance with section 43-4-705 (2) (c) (II).
43-1-220. Sources of funds - assumption of obligations. (2) All receipts from the following sources shall be paid into and credited to the state highway supplementary fund as soon as received from:
(h) Any revenues received from political subdivisions pursuant to section 43-4-709, including but not limited to federal transportation funds as defined in section 43-4-702 (4).