CO Code § 24-82-801 (2021)
2021 Colorado Code|Title 24 - Government - State|Article 82 - State Property|Part 8 - Lease-Purchase Agreements for Acquisition of Real or Personal Property|§ 24-82-801. Lease-Purchase Agreements for Acquisition of Real or Personal Property - Definition

      Except as provided in subsection (6) of this section, and subject to the requirement set forth in subsection (1)(a)(II) of this section, no lease-purchase agreement for real property that requires total payments exceeding five hundred thousand dollars over the term of the agreement shall be entered into unless such agreement is specifically authorized, prior to its execution, by a bill enacted by the general assembly, other than the annual general appropriation act or a supplemental appropriation act. (1) (a) (I) Except as provided in subsection (6) of this section, and subject to the requirement set forth in subsection (1)(a)(II) of this section, no lease-purchase agreement for real property that requires total payments exceeding five hundred thousand dollars over the term of the agreement shall be entered into unless such agreement is specifically authorized, prior to its execution, by a bill enacted by the general assembly, other than the annual general appropriation act or a supplemental appropriation act.    (A) Each bill enacted by the general assembly on or after August 8, 2018, as required in subsection (1)(a)(I) of this section, must include a requirement that the state agency or state institution of higher education entering into the lease-purchase agreement present a plan to the capital development committee, no later than the December of the fourteenth calendar year or the January of the fifteenth calendar year after either the date of the substantial completion of the construction or after the date of acquisition, that details how the state agency or state institution of higher education is prepared to fund the controlled maintenance needs of the real property so that at least an amount equal to an estimation of the sum of one percent of the insured value of the real property for each year starting with the sixteenth year after either the date of the substantial completion of the construction or after the date of acquisition is available for a total period of twenty-five years for the real property's controlled maintenance needs. The plan presented by the state agency or state institution of higher education may include a request for an additional lease-purchase agreement for such controlled maintenance needs or may include a request for partial or complete state funding of such controlled maintenance needs. The capital development committee shall review the plan presented by the state agency or state institution of higher education. Any approved plan shall be authorized by bill enacted by the general assembly, other than the annual general appropriation act or a supplemental appropriation act; except that if the approved plan is for a state institution of higher education to fund such controlled maintenance needs from cash funds then the plan may be approved by majority vote of the capital development committee.       Except as provided in subsection (6) of this section, no lease-purchase agreement for personal property that requires total payments exceeding five hundred thousand dollars over the term of the agreement shall be entered into unless such agreement is specifically authorized, prior to its execution, by a bill enacted by the general assembly, other than the annual general appropriation act or a supplemental appropriation act, or specifically authorized by appropriation in the annual general appropriation act or a supplemental appropriation act.    Subsequent to the general assembly's authorization of a lease-purchase agreement as specified in paragraphs (a) and (b) of this subsection (1), rentals and other payments by the state under any such lease-purchase agreement may be made from moneys appropriated by the general assembly as a separate line item in the capital construction or operating section of an annual general appropriation act or a supplemental appropriation act.       Except as provided in subsection (6) of this section, lease-purchase agreements that require total payments of five hundred thousand dollars or less over the term of the agreement shall require an appropriation by the general assembly in an annual general appropriation act or a supplemental appropriation act.    A lease-purchase agreement that requires total payments in excess of five hundred thousand dollars over the term of the agreement shall require, prior to its execution, approval by the state controller as authorized by section 24-30-202.    As used in this section, "lease-purchase agreement" means a capital lease as defined in the generally accepted accounting principles issued by the governmental accounting standards board that the controller prescribes for the state as specified in section 24-30-202 (12).    A lease-purchase agreement may further provide for the issuance, distribution, and sale of instruments evidencing rights to receive rentals and other payments made by the state, but only if the lease-purchase agreement includes a provision that payments made by the state are subject to annual appropriation. A lease-purchase agreement shall not include notes, bonds, or any other evidence of indebtedness of the state within the meaning of any provision of the constitution or laws of the state of Colorado concerning or limiting the creation of indebtedness by the state.      Notwithstanding any provision of this section to the contrary, the department of transportation, institutions of higher education, the Auraria higher education center established in article 70 of title 23, C.R.S., and the state treasurer may enter into lease-purchase agreements if the state controller as authorized by section 24-30-202 approves each lease-purchase agreement that requires total payments in excess of five hundred thousand dollars over the term of the agreement or as otherwise provided by law. (6) (a) Notwithstanding any provision of this section to the contrary, the department of transportation, institutions of higher education, the Auraria higher education center established in article 70 of title 23, C.R.S., and the state treasurer may enter into lease-purchase agreements if the state controller as authorized by section 24-30-202 approves each lease-purchase agreement that requires total payments in excess of five hundred thousand dollars over the term of the agreement or as otherwise provided by law.    Notwithstanding any provision of this section to the contrary, the legislative department may enter into lease-purchase agreements pursuant to section 2-2-320, C.R.S.       Nothing in this section shall be construed to impair any contract or instrument in existence on July 1, 2009, if the contract was validly entered into or the instrument was validly issued under the law in effect at the time of entering into said contract or issuing said instrument.    All lease-purchase agreements described in section 24-48.5-312 (3)(a)(II) shall include the terms specified in said section.   The annual base rent scheduled to be paid and the additional rent estimated to be paid on or pursuant to the lease-purchase agreement and any ancillary agreements that may include, but need not be limited to, any of the following that are paid on a current basis and not paid by a lessor or other third party as part of a lease-purchase agreement: All acquisition costs, such as due diligence costs associated with evaluation of an existing building; land acquisition; penalties for breaking lease agreements; a capital reserve for space planning and capital improvements needed in the building for demolition and construction of tenant space for state agencies or the release to existing tenants; relocation costs; office furniture and equipment; insurance; and the costs associated with any lease-purchase financing; plus    Operating and maintenance costs and a reserve for controlled maintenance costs.        Source: L. 90: Entire part added, p. 1286, § 1, effective April 9. L. 91: (4) amended, p. 1068, § 37, effective July 1. L. 93: Entire section amended, p. 2033, § 4, effective June 9. L. 2000: (4) amended, p. 1514, § 5, effective August 2. L. 2003: (2) amended, p. 1377, § 5, effective April 28. L. 2008: (4) amended, p. 1063, § 6, effective May 22. L. 2009: Entire section R&RE, (HB 09-1218), ch. 132, p. 572, § 6, effective July 1. L. 2010: (6) amended, (HB 10-1020), ch. 111, p. 370, § 3, effective April 15; (8) added, (SB 10-094), ch. 230, p. 993, § 3, effective August 11. L. 2012: (6)(a) amended, (HB 12-1081), ch. 210, p. 906, § 13, effective August 8. L. 2018: (1)(a) amended, (HB 18-1374), ch. 249, p. 1535, § 2, effective August 8.   Cross references: (1) For the legislative declaration contained in the 2003 act amending subsection (2), see section 1 of chapter 190, Session Laws of Colorado 2003.   (2) For the legislative declaration in the 2010 act adding subsection (8), see section 1 of chapter 230, Session Laws of Colorado 2010.