(1) (a) The general assembly hereby finds and declares that: (I) Given the unprecedented economic situation in which the state finds itself because of the declared disaster emergency due to the COVID-19 pandemic, it is important for the general assembly to consider any option available to fund the continuations of certain previously funded capital construction projects; (II) Funding the continuations of certain previously funded capital construction projects is particularly important because there are cost escalations due to construction inflation when a project is postponed, there are repair, maintenance, and upkeep costs to minimize damage to the ongoing project or existing infrastructure while funding is delayed, and there may be increased operational costs for any project continuation alternatives; and (III) In addition, funding the continuations of certain previously funded capital construction projects in a time of economic downturn helps boost local economies with construction projects that can commence quickly when money is made available. (b) The general assembly further finds and declares that: (I) The deadline to issue the financed purchase of an asset or certificate of participation agreement in subsection (2)(a) of this section is meant to provide the state treasurer with as much flexibility as possible to ensure that the financed purchase of an asset or certificate of participation agreement is executed on behalf of the state with the most favorable terms that the market will allow. The general assembly agrees with the need for this deadline flexibility and at the same time declares that the financed purchase of an asset or certificate of participation agreement should be executed as soon as possible. (II) If there is any excess money as a result of the issuance, it is the general assembly's intent that the remainder be credited to the emergency controlled maintenance account created in section 24-75-302 (3.2). (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 June 30, 2021, the state, acting by and through the state treasurer, shall execute a financed purchase of an asset or certificate of participation agreement for the purpose described in subsection (4) of this section in an amount up to sixty- five million five hundred thousand dollars plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest and credit enhancement costs such as a debt service reserve fund or bond insurance. (b) The anticipated annual state-funded payments for the principal and interest components of the amount payable under the financed purchase of an asset or certificate of participation agreement entered into pursuant to subsection (2)(a) of this section shall not exceed five million five hundred thousand dollars, with principal amortization not occurring before July 1, 2022. (c) The state, acting by and through the state treasurer, at the state treasurer's sole discretion, may enter into the financed purchase of an asset or certificate of participation agreement 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) The 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 appropriation by the general assembly, as applicable, from the capital construction fund, from the general fund, or from any other legally available source of money. (e) The agreement must also provide that the state's obligation does 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 is 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 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) (I) The 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 the 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. (II) The state treasurer, acting on behalf of the state, has the authority as he or she deems appropriate to determine what collateral to use for the financed purchase of an asset or certificate of participation agreement. (g) The 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 instrument may be issued, distributed, or sold only by the seller or any person designated by the seller and not by the state. The instrument does not create a relationship between the purchasers of the instrument and the state or create any obligation on the part of the state to the purchasers. The instrument is 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 is 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 the 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 subsection (2)(d) of this section. (b) An 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 agreement entered into pursuant to this subsection (3) shall be used to make payments on the financed purchase of an asset or certificate of participation agreement entered into pursuant to subsection (2) of this section or to pay the costs of the projects for which a financed purchase of an asset or certificate of participation agreement was executed. (4) The proceeds of the financed purchase of an asset or certificate of participation agreement executed as required by subsection (2)(a) of this section shall be used to fund certain capital construction needs for state institutions of higher education that are continuations of previously funded projects as specified by the capital development committee. The capital development committee shall post the list of specific projects and the cost of each project, on its official website no later than August 15, 2020. In the event of any excess money as a result of the issuance, the capital development committee shall also specify in their list what any remainder money must be used for.
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