Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0417.01 Megan McCall x4215
HOUSE BILL 22-1097
House Committees Senate Committees
Transportation & Local Government
A BILL FOR AN ACT
C
ONCERNING THE AUTHORITY OF A BOARD OF COUNTY101
COMMISSIONERS TO FILE AN APPL ICATION FOR DISSOLUTION OF102
A SPECIAL DISTRICT WITH THE SPECIAL DISTRICT 'S BOARD OF103
DIRECTORS, AND, IN CONNECTION THEREWITH , ALLOWING A104
BOARD OF COUNTY COMMISSIONERS TO CONSENT TO105
DISSOLUTION BY COURT ORDER WITHOUT AN ELECTION OF A106
SPECIAL DISTRICT WITH NO OUTSTANDING FINANCIAL107
OBLIGATIONS OR DEBT.108
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
HOUSE SPONSORSHIP
Valdez D.,
SENATE SPONSORSHIP
Simpson,
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. http://leg.colorado.gov.)
Under current law, municipalities and regional service authorities
are authorized to file an application for dissolution of a special district
with the board of directors of the special district. The bill expands current
law to authorize a board of county commissioners to file with the special
district's board of directors an application for dissolution of the special
district if the special district is wholly located in the boundaries of the
county and to file jointly with another board of county commissioners a
petition for dissolution of a special district located in 2 or more counties.
The bill also expands current law to allow a board of county
commissioners and a special district that is wholly within the county's
boundaries and that has no financial obligations or outstanding debt to
mutually consent to dissolution of the special district via a court order
dissolving the special district without an election.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 32-1-701, amend (5)2
and (6); and add (3.5) and (3.7) as follows:3
32-1-701. Initiation - petition - procedure. (3.5) I
F THE4
TERRITORY ENCOMPASSED BY A SPECIAL DISTRICT LIES WHOLLY WITHIN5
THE BOUNDARIES OF A COUNTY, THE BOARD OF COUNTY COMMISSIONERS6
OF ANY SUCH COUNTY MAY FILE AN APPLICATION WITH THE SPECIAL7
DISTRICT'S BOARD OF DIRECTORS TO DISSOLVE THE SPECIAL DISTRICT, AND8
THE SPECIAL DISTRICT'S BOARD OF DIRECTORS, PROMPTLY AND IN GOOD9
FAITH, SHALL TAKE THE NECESSARY STEPS TO DISSOLVE THE DISTRICT IN10
ACCORDANCE WITH THE PROCEDURES SPECIFIED IN SUBSECTION (2) OF THIS11
SECTION.12
(3.7) I
F THE TERRITORY ENCOMPASSED BY A SPECIAL DISTRICT LIES13
WITHIN THE BOUNDARIES OF TWO OR MORE C OUNTIES , THE BOARD OF14
COUNTY COMMISSIONERS OF EACH OF THE COUNTIES MAY JOINTLY FILE AN15
APPLICATION WITH THE SPECIAL DISTRICT 'S BOARD OF DIRECTORS TO16
DISSOLVE THE SPECIAL DISTRICT, AND THE SPECIAL DISTRICT'S BOARD OF17
HB22-1097-2- DIRECTORS, PROMPTLY AND IN GOOD FAITH, SHALL TAKE THE NECESSARY1
STEPS TO DISSOLVE THE DISTRICT IN ACCORDANCE WITH THE PROCEDURES2
SPECIFIED IN SUBSECTION (2) OF THIS SECTION. THE APPLICATION MUST3
INCLUDE THE CONSENT OF SUCH COUNTIES TO ASSUME THE4
RESPONSIBILITIES FOR PROVIDING THE SERVICES THAT HAD BEEN5
PROVIDED BY THE SPECIAL DISTRICT IN THEIR RESPECTIVE JURISDICTIONS6
OR EVIDENCE OF AN AGREEMENT TO PROVIDE THE SERVICES ON A7
CONTRACTUAL BASIS.8
(5) If the territory encompassed by a special district lies within the9
boundaries of two or more regional service authorities and if such service10
authorities provide the same service as that provided by the special11
district, the two or more service authorities may file jointly an application12
with the board to dissolve the special district, and the board, promptly and13
in good faith, shall take the necessary steps to dissolve such district in14
accordance with the procedures specified in subsection (2) of this section.15
The application shall MUST include the consent of such service authorities16
to assume the responsibilities for providing the service in their respective17
jurisdictions or the consent of one regional service authority to provide18
the service on a contractual basis.19
(6) Any application filed with the board to dissolve a special20
district under subsection (2), (3), (3.5), (3.7), (4), or (5) of this section21
shall MUST be accompanied by a cash bond in the amount of three22
hundred dollars to cover the expenses connected with the proceedings if23
the dissolution is not effected.24
SECTION 2. In Colorado Revised Statutes, 32-1-702, amend (1)25
as follows:26
32-1-702. Requirements for dissolution petition. (1) A petition27
HB22-1097
-3- for dissolution shall MUST generally describe the territory embraced in the1
special district, shall MUST have a map showing the special district, a2
current financial statement of the special district, and a plan for final3
disposition of the assets of the special district and for payment of the4
financial obligations of the special district, shall MUST state whether or5
not the services of the special district are to be continued and, if so, by6
what means, and shall MUST state whether the existing board or a portion7
thereof shall IS TO continue in office, subject to court appointment to fill8
vacancies. Said petition may provide for the regional service authority9
board,
THE BOARD OF COUNTY COMMISSIONERS , or the governing body of10
the municipality to act as the board in accordance with the provisions of
11
section 32-1-707.12
SECTION 3. In Colorado Revised Statutes, 32-1-704, amend13
(3)(b) as follows:14
32-1-704. Conditions necessary for dissolution - permissible15
provisions - hearings - court powers. (3) (b) Subject to the provisions16
of paragraph (c) of this subsection (3) SUBSECTION (3)(c) OF THIS17
SECTION, the court shall enter an order dissolving the special district18
pursuant to section 32-1-707 without an election if the special district lies19
wholly
WITHIN THE COUNTY OR within the corporate limits of the20
municipality, if the special district has no financial obligations or21
outstanding bonds, and if the special district board and
THE BOARD OF22
COUNTY COMMISSIONERS , IF WITHIN THE COUNTY, OR the governing body23
of the municipality,
IF WITHIN THE CORPORATE LIMITS OF THE24
MUNICIPALITY, consent to the dissolution.25
SECTION 4. Act subject to petition - effective date. This act26
takes effect at 12:01 a.m. on the day following the expiration of the27
HB22-1097
-4- ninety-day period after final adjournment of the general assembly; except1
that, if a referendum petition is filed pursuant to section 1 (3) of article V2
of the state constitution against this act or an item, section, or part of this3
act within such period, then the act, item, section, or part will not take4
effect unless approved by the people at the general election to be held in5
November 2022 and, in such case, will take effect on the date of the6
official declaration of the vote thereon by the governor.7
HB22-1097
-5-