Second Regular Session Seventy-third General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO. 22-0337.01 Richard Sweetman x4333 HOUSE BILL 22-1092 House Committees Senate Committees Agriculture, Livestock, & Water Agriculture & Natural Resources A BILL FOR AN ACT C ONCERNING THE ISSUANCE OF LOANS BY IRRIGATION DISTRICTS TO101 LANDOWNERS FOR CERTAIN PURPOSES .102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Section 1 of the bill allows a board of directors of an irrigation district (board) to borrow money, which the irrigation district may use to make loans to landowners to be used to make improvements to private water delivery systems or for other types of projects that improve: ! Water conservation or efficiencies on landowner property; or SENATE 3rd Reading Unamended March 23, 2022 SENATE Amended 2nd Reading March 22, 2022 HOUSE 3rd Reading Unamended March 3, 2022 HOUSE Amended 2nd Reading March 2, 2022 HOUSE SPONSORSHIP Soper and Roberts, Boesenecker, Duran, Hooton, Jodeh, Kennedy, Lontine, Lynch, McCluskie, McCormick, McLachlan, Ricks, Titone, Valdez D. SENATE SPONSORSHIP Bridges and Coram, Donovan, Lee, Simpson, Sonnenberg Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. ! Landowner delivery or drainage systems. An obligation or contract to borrow such money is exempt from the existing requirement that a contract purporting to bind the district to pay any sum in excess of $500,000 must be ratified by a majority of all the votes cast at a general or special election. Additionally, the district cannot assess landowners to raise money to fund the loans. A board may adopt rules concerning the issuance of loans to landowners. Section 2 requires each irrigation district to include in its annual appropriation resolution all amounts payable by landowners to the irrigation district in accordance with loans issued to the landowners and indicate the amount payable by each tract within the irrigation district for which a landowner has received a loan. Section 3 requires a county assessor, in assessing land within an irrigation district, to: ! Apply the information provided in the irrigation district's annual appropriation resolution concerning loans issued to landowners; and ! Assess the additional amount payable for each tract for which the landowner has received a loan. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 37-42-113, add (5)2 as follows:3 37-42-113. Powers of district - loans for improvements.4 (5) (a) T HE BOARD OF DIRECTORS MAY ENTER INTO ANY OBLIGATION OR5 CONTRACT TO BORROW MONEY , WHICH THE IRRIGATION DISTRICT MAY USE6 TO ISSUE LOANS TO LANDOWNERS :7 (I) T O MAKE IMPROVEMENTS TO PRIVATE WATER DELIVERY8 SYSTEMS; OR9 (II) F OR OTHER TYPES OF PROJECTS THAT IMPROVE :10 (A) W ATER CONSERVATION OR EFFICIENCIES ON LANDOWNER11 PROPERTY; OR12 (B) L ANDOWNER DELIVERY OR DRAINAGE SYSTEMS .13 (b) A N OBLIGATION OR CONTRACT TO BORROW MONEY DESCRIBED14 1092-2- IN SUBSECTION (5)(a) OF THIS SECTION IS NOT SUBJECT TO THE1 REQUIREMENTS OF SUBSECTION (1)(c) OF THIS SECTION.2 (c) T HE BOARD SHALL NOT ASSESS DISTRICT LAND IN ORDER TO3 RAISE MONEY TO ISSUE LOANS PURSUANT TO THIS SUBSECTION (5).4 H OWEVER, THE BOARD, IN ITS DISCRETION, MAY USE OTHER SOURCES OF5 MONEY FOR THE PURPOSE OF ISSUING LOANS AS DESCRIBED IN THIS6 SUBSECTION (5).7 (d) IN CASE OF DEFAULT IN THE PAYMENT OF ANY INSTALLMENT OF8 PRINCIPAL OR INTEREST WHEN DUE, THE COUNTY TREASURER MAY ASSESS9 UPON THE ELIGIBLE REAL PROPERTY A TAX LIEN FOR THE PAYMENT OF THE10 WHOLE OF THE UNPAID INSTALLMENT OF PRINCIPAL AND INTEREST; EXCEPT11 THAT, THE COUNTY TREASURER SHALL NOT ASSESS A TAX LIEN FOR THE12 ENTIRE VALUE OF THE LANDOWNER'S PORTION OF THE IRRIGATION LOAN13 ISSUED BY THE WATER DISTRICT.14 (e) THE BOARD MAY ADOPT RULES CONCERNING THE ISSUANCE OF15 LOANS TO LANDOWNERS PURSUANT TO THIS SUBSECTION (5).16 SECTION 2. In Colorado Revised Statutes, 37-42-125, add (3)17 as follows:18 37-42-125. Fiscal year - appropriation resolution. (3) T HE19 ANNUAL APPROPRIATION RESOLUTION DESCRIBED IN SUBSECTION (2) OF20 THIS SECTION MUST INCLUDE THE AMOUNT OF MONEY NEEDED TO MEET21 LOAN OBLIGATIONS AND ALL AMOUNTS PAYABLE BY LANDOWNERS TO THE22 IRRIGATION DISTRICT IN ACCORDANCE WITH LOANS ISSUED TO THE23 LANDOWNERS PURSUANT TO SECTION 37-42-113 (5) AND SHALL INDICATE24 THE AMOUNT PAYABLE BY EACH TRACT WITHIN THE IRRIGATION DISTRICT25 FOR WHICH A LANDOWNER HAS RECEIVED A LOAN .26 27 1092 -3- SECTION 3. In Colorado Revised Statutes, 37-42-128, amend1 (7) as follows:2 37-42-128. Collection of assessments. (7) THE COUNTY3 TREASURER SHALL RECEIVE IN THE COUNTY TREASURER 'S OFFICIAL4 CAPACITY all such district assessments collected and paid to the county5 treasurer, shall be received by said treasurer in his official capacity, and6 he shall be THE COUNTY TREASURER IS responsible for the safekeeping,7 disbursement, and payment thereof the same OF SUCH ASSESSMENTS as for8 WELL AS other moneys MONEY collected by him as such THE COUNTY9 treasurer. The county treasurer shall receive for the collection of such10 assessments such amount as the board of directors may allow, as provided11 in section 30-1-102; C.R.S. EXCEPT THAT THE TREASURER SHALL RECEIVE12 FIVE DOLLARS PER TRACT ASSESSED PURSUANT TO SECTION 37-42-125 (3)13 FOR LOANS ISSUED TO LANDOWNERS PURS UANT TO SECTION 37-42-113 (5),14 AND THIS FIVE DOLLARS SHALL BE ASSESSED AGAINST EACH15 PARTICIPATING TRACT. Any assessment collected and paid to the county16 treasurer for districts that are defunct or have not been in operation for17 five or more years shall be transferred by the county treasurer to the18 county general fund.19 SECTION 4. In Colorado Revised Statutes, 37-41-113, add (9)20 as follows:21 37-41-113. Board of directors - duties - contracts - rules.22 (9) (a) T HE BOARD OF DIRECTORS MAY ENTER INTO ANY OBLIGATION OR 23 CONTRACT TO BORROW MONEY , WHICH THE IRRIGATION DISTRICT MAY USE24 TO ISSUE LOANS TO LANDOWNERS :25 (I) T O MAKE IMPROVEMENTS TO PRIVATE WATER DELIVERY 26 SYSTEMS; OR27 1092 -4- (II) FOR OTHER TYPES OF PROJECTS THAT IMPROVE :1 (A) W ATER CONSERVATION OR EFFICIENCIES ON LANDOWNER 2 PROPERTY; OR3 (B) L ANDOWNER DELIVERY OR DRAINAGE SYSTEMS . 4 (b) A N OBLIGATION OR CONTRACT TO BORROW MONEY DESCRIBED 5 IN SUBSECTION (9)(a) OF THIS SECTION IS NOT SUBJECT TO THE6 REQUIREMENTS OF SUBSECTION (4) OF THIS SECTION.7 (c) T HE BOARD OF DIRECTORS SHALL NOT ASSESS DISTRICT LAND 8 IN ORDER TO RAISE MONEY TO ISSUE LOANS PURSUANT TO THIS9 SUBSECTION (9). HOWEVER, THE BOARD OF DIRECTORS, IN ITS DISCRETION,10 MAY USE OTHER SOURCES OF MONEY FOR THE PURPOSE OF ISSUING LOANS11 AS DESCRIBED IN THIS SUBSECTION (9).12 (d) I N CASE OF DEFAULT IN THE PAYMENT OF ANY INSTALLMENT OF 13 PRINCIPAL OR INTEREST WHEN DUE, THE COUNTY TREASURER MAY ASSESS14 UPON THE ELIGIBLE REAL PROPERTY A TAX LIEN FOR THE PAYMENT OF THE15 WHOLE OF THE UNPAID INSTALLMENT OF PRINCIPAL AND INTEREST ; EXCEPT16 THAT THE COUNTY TREASURER SHALL NOT ASSESS A TAX LIEN FOR THE17 ENTIRE VALUE OF THE LANDOWNER 'S PORTION OF THE IRRIGATION LOAN18 ISSUED BY THE WATER DISTRICT.19 (e) T HE BOARD OF DIRECTORS MAY ADOPT RULES CONCERNING THE 20 ISSUANCE OF LOANS TO LANDOWNERS PURSUANT TO THIS SUBSECTION (9).21 SECTION 5. In Colorado Revised Statutes, amend 37-41-120 as22 follows:23 37-41-120. Fiscal year - directors to fix levy. (1) The fiscal year24 of each irrigation district in this state shall commence on January 1 in25 each year. It is the duty of the board of directors on or before October 1526 in each year to determine the amount of money required to meet the27 1092 -5- maintenance, operating, and current expenses for the ensuing fiscal year1 and to certify by resolution to the board of county commissioners of the2 county in which the office of the district is located said amount, together3 with any additional amount which may be necessary to meet any4 deficiency in the payment of said expenses theretofore incurred. The5 board of directors may fix the amount payable for any tract containing6 one acre or less and, if so, similarly shall certify this amount to the board7 of county commissioners. The board of directors shall also fix the amount8 payable by each tract within any district with which the United States has9 made a contract and shall certify the same to the board of county10 commissioners, and the amount so fixed shall be in accordance with the11 federal reclamation laws and the public notices, orders, and regulations12 issued thereunder and shall be in compliance with any contracts made by13 the United States with any owners of said lands and in compliance further14 with the contracts between the district and the United States. The15 obligation of every irrigation district contracting with the United States16 shall be deemed a district debt. Said resolution shall be termed the annual17 appropriation resolution for the next fiscal year, and no expenditure to be18 paid out of such fund shall exceed in any one year the amounts fixed for19 such expenses in the annual appropriation resolution, except as provided20 in section 37-41-129.21 (2) T HE ANNUAL APPROPRIATION RESOLUTION DESCRIBED IN 22 SUBSECTION (1) OF THIS SECTION MUST INCLUDE THE AMOUNT OF MONEY23 NEEDED TO MEET LOAN OBLIGATIONS AND ALL AMOUNTS PAYABLE BY24 LANDOWNERS TO THE IRRIGATION DISTRICT IN ACCORDANCE WITH LOANS25 ISSUED TO THE LANDOWNERS PURS UANT TO SECTION 37-41-113 (9) AND26 SHALL INDICATE THE AMOUNT PAYABLE BY EACH TRACT WITHIN THE27 1092 -6- IRRIGATION DISTRICT FOR WHICH A LANDOWNER HAS RECEIVED A LOAN .1 SECTION 6. In Colorado Revised Statutes, 37-41-121, add (4)2 as follows:3 37-41-121. Assessor - assessment. (4) N OTWITHSTANDING ANY 4 PROVISION OF THIS ARTICLE 41 TO THE CONTRARY, IN ADDITION TO THE5 AMOUNT DESCRIBED IN SECTION 30-1-102 (1)(p), THE COUNTY TREASURER6 SHALL RECEIVE FIVE DOLLARS PER TRACT ASSESSED PURSUANT TO7 SECTION 37-41-120 FOR LOANS ISSUED TO LANDOWNERS PURSUANT TO8 SECTION 37-41-113 (9), AND THIS FIVE DOLLARS SHALL BE ASSESSED9 AGAINST EACH PARTICIPATING TRACT .10 SECTION 7. Act subject to petition - effective date. This act11 takes effect at 12:01 a.m. on the day following the expiration of the12 ninety-day period after final adjournment of the general assembly; except13 that, if a referendum petition is filed pursuant to section 1 (3) of article V14 of the state constitution against this act or an item, section, or part of this15 act within such period, then the act, item, section, or part will not take16 effect unless approved by the people at the general election to be held in17 November 2022 and, in such case, will take effect on the date of the18 official declaration of the vote thereon by the governor.19 1092 -7-