2023 Colorado Revised Statutes › Title 37 - WATER AND IRRIGATION (§§ 37-1-101 — 37-99-103) › WATER CONSERVATION AND IRRIGATION DISTRICTS (§§ 37-40-101 — 37-50-142) › CONSERVATION AND IRRIGATION DISTRICTS (§§ 37-41-101 — 37-50-142) › Article 42 - IRRIGATION DISTRICT LAW OF 1921 (§§ 37-42-101 — 37-42-141) › Section 37-42-113 - Powers of district - loans for improvements - rules

(1)
(a)
Irrigation districts organized under this article 42 may sue and be sued in their district names, and courts shall take judicial notice of their organization and territorial extent.
(b)
The board of directors may acquire, by use, prescription, appropriation, purchase, or condemnation, property or rights of any kind, including rights-of-way, canals, or reservoirs either projected, or partly constructed, or constructed, or the part or whole of any contemplated, projected, partly completed system of irrigation or waterworks, water rights, or any other property or right necessary or useful for carrying out the objects of the irrigation district. The title to any such property so acquired vests immediately in the irrigation district in its corporate name and is held by the district in trust for, and is hereby dedicated and set apart for, the uses and purposes provided for in this article 42.
(c)
Any contract purporting to bind the district to the payment of any sum in excess of five hundred thousand dollars must first be ratified by a majority of all the votes cast at a general or special election called for that purpose before it becomes binding, and all contracts entered into by the board of directors agreeing to a payment in excess of that amount shall be construed as being expressly subject to this subsection (1)(c) and do not become binding upon the district until authorized and ratified at an election called and held for that purpose; except that, on July 1, 2022, and on July 1 of every five-year period thereafter, the board of directors shall adjust the dollar amount specified in this subsection (1)(c) in accordance with the percentage change over the previous five-year period in the United States department of labor, bureau of labor statistics, consumer price index for Denver-Aurora-Lakewood for all items and all urban consumers, or its successor index. The board of directors shall post the adjusted amount on its website and in its annual reports.
(2)
Where the compensation to be paid by the district to the owners of any property that the board of directors of an irrigation district is authorized to take by proceedings in eminent domain has been finally determined to be in excess of five hundred thousand dollars, the courts shall give sufficient time for the submission to and determination by the landowners of the district, at a regularly called general or special election, of the question of whether the district shall pay the compensation or abandon the condemnation proceedings; except that, on July 1, 2022, and on July 1 of every five-year period thereafter, the board of directors shall adjust the dollar amount specified in this subsection (2) in accordance with the percentage change over the previous five-year period in the United States department of labor, bureau of labor statistics, consumer price index for Denver-Aurora-Lakewood for all items and all urban consumers, or its successor index. The board of directors shall post the adjusted amount on its website and in its annual reports. If the landowners, by majority vote of all the votes cast at the election, vote for the payment of the compensation, the courts shall give the district the necessary additional time to pay the compensation either by levy and collection of assessments against the lands of the district, by the issuance and sale of bonds of the district, or by both such methods, as may be determined at a district election.
(3)
The board may also enter into any obligation or contract with the United States for the construction or operation and maintenance of the necessary works for the delivery and distribution of water therefrom; or for drainage of district lands; or for the assumption, as principal or guarantor, of indebtedness to the United States on account of district lands; or for the temporary rental of water under the provision of the federal reclamation act and all acts amendatory thereof or supplementary thereto and the rules and regulations established thereunder; or the board may contract with the United States for a water supply under any act of congress providing for or permitting such contract and may convey to the United States as partial or full consideration therefor water rights or other property of the district. The district also has power to take over the assets and assume the liabilities of water users' associations organized for cooperation with the United States under the provisions of the act of congress approved June 17, 1902 (32 Stat. 388), and acts amendatory thereto, in case a majority of the lands of each association shall be within such district, subject to the provision that the shareholders of such association by vote, as provided by their articles of incorporation and bylaws, shall assent and agree that such assets and liabilities shall be so taken over.
(4)
The powers conferred by this article 42 are cumulative and are in addition to all powers possessed by an irrigation district under the other laws of this state.
(5)
(a)
The board of directors may enter into any obligation or contract to borrow money, which the irrigation district may use to issue loans to landowners:
(I)
To make improvements to private water delivery systems; or
(II)
For other types of projects that improve:
(A)
Water conservation or efficiencies on landowner property; or
(B)
Landowner delivery or drainage systems.
(b)
An obligation or contract to borrow money described in subsection (5)(a) of this section is not subject to the requirements of subsection (1)(c) of this section.
(c)
The board shall not assess district land in order to raise money to issue loans pursuant to this subsection (5). However, the board, in its discretion, may use other sources of money for the purpose of issuing loans as described in this subsection (5).
(d)
In case of default in the payment of any installment of principal or interest when due, the county treasurer may assess upon the eligible real property a tax lien for the payment of the whole of the unpaid installment of principal and interest; except that the county treasurer shall not assess a tax lien for the entire value of the landowner's portion of the irrigation loan issued by the water district.
(e)
The board may adopt rules concerning the issuance of loans to landowners pursuant to this subsection (5).
Amended by 2022 Ch. 84,§1, eff. 8/10/2022.
Amended by 2018 Ch. 274,§76, eff. 5/29/2018.
Amended by 2017 Ch. 16,§7, eff. 8/9/2017.
L. 21: p. 528, § 13. C.L. § 2069. CSA: C. 90, § 444. CRS 53: § 149-2-13. C.R.S. 1963: § 150-2-13. L. 2017: (1) and (2) amended and (4) added, (HB 17-1030), ch. 16, p. 50, § 7, effective August 9. L. 2018: (1)(c) and (2) amended, (HB 18-1375), ch. 274, p. 1719, § 76, effective May 29.
2022 Ch. 84, was passed without a safety clause. See Colo. Const. art. V, § 1(3).