(1) Repealed. (2) (a) Notwithstanding the provisions of sections 24-82-102 (1)(b) and 24-82-801, and pursuant to section 24-36-121, no sooner than July 1, 2018, the state, acting by and through the state treasurer, shall execute financed purchase of an asset or certificate of participation agreements, each for no more than twenty years of annual payments, for the projects described in subsection (4) of this section. The state shall execute the financed purchase of an asset or certificate of participation agreements as soon as possible after July 1 of the applicable state fiscal year only in accordance with the following schedule: (I) During the 2018-19 state fiscal year, the state shall execute financed purchase of an asset or certificate of participation agreements in an amount up tofive hundred million dollars; (II) During the 2019-20 state fiscal year, the state shall execute financed purchase of an asset or certificate of participation agreements in an amount up to five hundred million dollars; (III) During the 2020-21 state fiscal year, the state shall execute financed purchase of an asset or certificate of participation agreements in an amount up to five hundred million dollars; and (IV) During the 2021-22 fiscal year, the state shall execute financed purchase of an asset or certificate of participation agreements in an amount up to five hundred million dollars. (b) The anticipated annual state-funded payments for the principal and interest components of the amount payable under all financed purchase of an asset or certificate of participation agreements entered into pursuant to subsection (2)(a) of this section shall not exceed one hundred fifty million dollars. (c) The state, acting by and through the state treasurer, at the state treasurer's sole discretion, may enter into one or more financed purchase of an asset or certificate of participation agreements authorized by subsection (2)(a) of this section with any for-profit or nonprofit corporation, trust, or commercial bank as a trustee as the seller. (d) Any financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section shall 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 any financed purchase of an asset or certificate of participation agreement must be made, subject to annual allocation pursuant to section 43-1-113 by the transportation commission created in section 43-1-106 (1) or subject to annual appropriation by the general assembly, as applicable, from the following sources of money: (I) First, nine million dollars annually, or any lesser amount that is sufficient to make each full payment due, shall be paid from the general fund or any other legally available source of money for the purpose of fully funding the controlled maintenance and capital construction projects in the state to be funded with the proceeds of financed purchase of an asset or certificate of participation agreements as specified in subsection (4)(a) of this section; (II) Next, fifty million dollars annually, or any lesser amount that is sufficient to make each full payment due, shall be paid from any legally available money under the control of the transportation commission solely for the purpose of allowing the construction, supervision, and maintenance of state highways to be funded with the proceeds of financed purchase of an asset or certificate of participation agreements as specified in subsection (4)(b) of this section and section 43-4-206 (1)(b)(V); except that, for payments due during state fiscal years 2020-21 and 2021-22, sixty-two million dollars annually, or any lesser amount that is sufficient to make each full payment due shall be paid from such legally available money for said purpose; and (III) The remainder of the amount needed, in addition to the amounts specified in subsections (2)(d)(I) and (2)(d)(II) of this section, to make each full payment due shall be paid from the general fund or any other legally available source of money. (e) Each 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 a financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section, the sole security available to the seller is the property that is the subject of the nonrenewed financed purchase of an asset or certificate of participation agreement. (f) A financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section 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 each financed purchase of an asset or certificate of participation agreement must specifically authorize the state or the governing board of the applicable state institution of higher education to receive fee title to all real and personal property that is the subject of the financed purchase of an asset or certificate of participation agreement on or before the expiration of the terms of the agreement. (g) Any financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section 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 financed purchase of an asset or certificate of participation agreement. The instruments may be issued, distributed, or sold only by the seller or any person designated by the seller 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 notes, bonds, 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 a financed purchase of an asset or certificate of participation 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 through the state treasurer and the governing boards of the institutions of higher education, is authorized to enter into ancillary agreements and instruments that are necessary or appropriate in connection with a financed purchase of an asset or certificate of participation agreement, including but not limited to deeds, ground leases, sub-leases, easements, or other instruments relating to the real property on which the facilities are located. (j) The provisions of section 24-30-202 (5)(b) do not apply to a financed purchase of an asset or certificate of participation agreement executed as required by or to any ancillary agreement or instrument entered into pursuant to this subsection (2). The state controller or his or her designee shall waive any provision of the fiscal rules promulgated pursuant to section 24- 30-202 (1) and (13) that the state controller finds incompatible or inapplicable with respect to a financed purchase of an asset or certificate of participation agreement or an ancillary agreement or instrument. (3) (a) Before executing a financed purchase of an asset or certificate of participation agreement required by subsection (2)(a) of this section, 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. A financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section is a proposed public security for the purposes of article 59.3 of title 11. Any payments made by the state under an agreement entered into pursuant to this subsection (3) must be made solely from money made available to the state treasurer from the execution of a financed purchase of an asset or certificate of participation agreement or from money described in subsections (2)(d)(I) and (2)(d)(II) of this section. (b) Any 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 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. (c) Any money received by the state under an agreement entered into pursuant to this subsection (3) shall be used to make payments on financed purchase of an asset or certificate of participation agreements entered into pursuant to subsection (2) of this section or to pay the costs of the project for which a financed purchase of an asset or certificate of participation agreement was executed. (4) Proceeds of financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a) of this section shall be used as follows: (a) (I) The first one hundred twenty million dollars of the proceeds of financed purchase of an asset or certificate of participation agreements issued during the 2018-19 state fiscal year shall be used for controlled maintenance and capital construction projects in the state as follows: (A) Thirteen million six thousand eighty-one dollars for level I controlled maintenance; (B) Sixty million six hundred thirty-seven thousand three hundred five dollars for level II controlled maintenance; (C) Forty million two hundred nine thousand five hundred thirty-five dollars for level III controlled maintenance; and (D) The remainder for capital construction projects as prioritized by the capital development committee. (II) The capital development committee shall post the list of specific controlled maintenance projects and the cost of each project funded pursuant to subsection (4)(a)(I)(A), (4)(a)(I)(B), or (4)(a)(I)(C) of this section on its official website no later than May 11, 2017. (III) When the actual cost of a controlled maintenance project funded from the proceeds of the financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a) of this section, as specifically set forth in subsections (4)(a)(I)(A) through (4)(a)(I)(C) of this section, is less than the amount specifically earmarked for such project, the executive director may utilize the savings to cover any additional cost of any other controlled maintenance project funded from the proceeds of the financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a) of this section, as specifically set forth in subsections (4)(a)(I)(A) through (4)(a)(I)(C) of this section; except that the executive director's authority to use savings for other controlled maintenance projects may not in any way exceed the total allocation of one hundred thirteen million eight hundred fifty-two thousand nine hundred twenty-one dollars. (a.5) Of the proceeds of financed purchase of an asset or certificate of participation agreements executed as required by subsection (2)(a)(II) of this section, the lesser of all proceeds in excess of five hundred million dollars or forty-nine million dollars of such excess proceeds shall be credited to the capital construction fund created in section 24-75-302 (1)(a) and appropriated only for controlled maintenance projects, including controlled maintenance projects that are capital renewal projects, in the state. (b) The remainder of the proceeds shall be credited to the state highway fund created in section 43-1-219 and used by the department of transportation in accordance with section 43-4- 206 (1)(b)(V).
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