(1) As used in this section, unless the context otherwise requires: (a) "Agreement" means one or more financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a) of this section. (b) "Applicable board" means either: (I) The board of trustees for the university of northern Colorado established pursuant to section 23-40-104 (1)(a); (II) The board of trustees for Metropolitan state university of Denver established pursuant to section 23-54-102 (1)(a); (III) The board of governors of the Colorado state university system established pursuant to section 23-30-101 (1)(a); or (IV) The state board for community colleges and occupational education created in section 23-60-104 (1)(b). (2) (a) Notwithstanding the provisions of sections 24-82-102 (1)(b) and 24-82-801, and pursuant to section 24-36-121, no later than December 31, 2024, the state, acting by and through the state treasurer, shall execute an agreement for the purposes described in subsection (4) of this section, the total amount of the principal of which agreement shall not exceed two hundred forty- six million nine hundred thirty-six thousand ninety-two dollars, plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest. (b) The anticipated annual state-funded payments for the principal and interest components of the amount payable under an agreement entered into pursuant to subsection (2)(a) of this section shall not exceed seventeen million five hundred thousand dollars, with principal amortization not occurring before July 1, 2027. (c) The state, acting by and through the state treasurer, at the state treasurer's sole discretion, may enter into an agreement authorized by subsection (2)(a) of this section with any for-profit or nonprofit corporation, trust, or commercial bank acting as a trustee as the lessor. (d) The agreement must provide that all of the obligations of the state under the agreement are subject to the action of the general assembly in annually making money available for all payments thereunder. Payments under the agreement must be made subject to annual appropriation by the general assembly, as applicable, from the general fund or from any other legally available source of money. (e) The agreement must also provide that the obligations of the state do not create state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt and are not a multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution. If the state does not renew the agreement, the sole security available to the lessor is the property that is the subject of the nonrenewed agreement. (f) (I) The agreement may contain such terms, provisions, and conditions as the state treasurer, acting on behalf of the state, deems appropriate, including all optional terms; except that the agreement must specifically authorize the state or the applicable board to receive fee title to all real and personal property that is the subject of the agreement on or before the expiration of the terms of the agreement. (II) The state treasurer, acting on behalf of the state, has the authority to determine what collateral to use for the agreement as the state treasurer deems appropriate. (g) The agreement may provide for the issuance, distribution, and sale of instruments evidencing rights to receive rentals and other payments made and to be made under the agreement. The instruments may be issued, distributed, or sold only by the lessor or any person designated by the lessor and not by the state. The instruments do not create a relationship between the purchasers of the instruments and the state or create any obligation on the part of the state to the purchasers. The instruments are not a note, bond, or any other evidence of state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt and are not a multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution. (h) Interest paid under an agreement authorized pursuant to subsection (2)(a) of this section, including interest represented by the instruments, is exempt from Colorado income tax. (i) The state, acting by and the through the state treasurer and the applicable board, is authorized to enter into ancillary agreements and instruments that are necessary or appropriate in connection with an agreement, including but not limited to deeds, ground leases, sub-leases, easements, or other instruments related to the real property on which the facilities are located. (j) The provisions of section 24-30-202 (5)(b) do not apply to an agreement or to any ancillary agreement or instrument entered into pursuant to this subsection (2). The state controller or their designee shall waive any provision of the fiscal rules promulgated pursuant to sections 24-30-202 (1) and (13) that the state controller finds incompatible or inapplicable with respect to an agreement or an ancillary agreement or instrument. (3) (a) Before executing the agreement, in order to protect against future interest rate increases, the state, acting by and through the state treasurer and at the discretion of the state treasurer, may enter into an interest rate exchange agreement pursuant to article 59.3 of title 11. Such interest rate exchange agreement is a proposed public security for the purposes of article 59.3 of title 11. Any payments made by the state under an interest rate exchange agreement entered into pursuant to this subsection (3) must be made solely from money available to the state treasurer from the execution of the agreement entered into pursuant to subsection (2) of this section or from money described in subsection (2)(d) of this section. (b) An interest rate exchange agreement entered into pursuant to this subsection (3) must also provide that the obligations of the state do not create state debt within the meaning of any provision of the state constitution or state law concerning or limiting the creation of state debt or any multiple fiscal-year direct or indirect debt or other financial obligation of the state within the meaning of section 20 (4) of article X of the state constitution. (c) Any money received by the state under an interest rate exchange agreement entered into pursuant to this subsection (3) must be used to make payments on an agreement entered into pursuant to subsection (2) of this section or to pay the costs related to the purposes set forth in subsection (4) of this section for which an agreement was executed. (4) The proceeds of an agreement entered into pursuant to subsection (2)(a) of this section must be used to fund capital construction costs related to the construction of the following facilities for the following institutions of higher education: (a) University of northern Colorado's college of osteopathic medicine; (b) Metropolitan state university of Denver's health institute tower that will increase health-care-related instructional and training capacity and expand programs in high-need areas related to health care; (c) Colorado state university's veterinary health and education complex; and (d) Trinidad state college's valley campus main building renovation that will increase capacity to provide allied health certificate and degree programs, address deferred maintenance, create an assembly space to serve the college and community, and allow critical student services to move to a more student-accessible location within the building.
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