Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
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
3rd Reading Unamended
February 14, 2022
HOUSE
Amended 2nd Reading
February 11, 2022
HOUSE SPONSORSHIP
Valdez D., Gray, Lindsay, Sandridge, Van Winkle
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; EXCEPT THAT, IF MORE THAN EIGHTY-FIVE PERCENT OF THE12
TERRITORY ENCOMPASSED BY THE SPECIAL DISTRICT LIES WITHIN THE13
CORPORATE LIMITS OF ONE OR MORE MUNICIPALITIES, THE SPECIAL14
DISTRICT'S BOARD OF DIRECTORS SHALL NOT TAKE ANY ACTION ON THE15
APPLICATION UNLESS THE GOVERNING BODIES OF ALL SUCH16
MUNICIPALITIES HAVE CONSENTED TO OR JOINED THE APPLICATION .17
1097-2- (3.7) IF THE TERRITORY ENCOMPASSED BY A SPECIAL DISTRICT LIES1
WITHIN THE BOUNDARIES OF TWO OR MORE C OUNTIES , THE BOARD OF2
COUNTY COMMISSIONERS OF EACH OF THE COUNTIES MAY JOINTLY FILE AN3
APPLICATION WITH THE SPECIAL DISTRICT 'S BOARD OF DIRECTORS TO4
DISSOLVE THE SPECIAL DISTRICT, AND THE SPECIAL DISTRICT'S BOARD OF5
DIRECTORS, PROMPTLY AND IN GOOD FAITH, SHALL TAKE THE NECESSARY6
STEPS TO DISSOLVE THE DISTRICT IN ACCORDANCE WITH THE PROCEDURES7
SPECIFIED IN SUBSECTION (2) OF THIS SECTION; EXCEPT THAT, IF MORE8
THAN EIGHTY-FIVE PERCENT OF THE TERRITORY ENCOMPASSED BY THE9
SPECIAL DISTRICT LIES WITHIN THE CORPORATE LIMITS OF ONE OR MORE10
MUNICIPALITIES, THE SPECIAL DISTRICT'S BOARD OF DIRECTORS SHALL NOT11
TAKE ANY ACTION ON THE APPLICATION UNLESS THE GOVERNING BODIES12
OF ALL SUCH MUNICIPALITIES HAVE CONSENTED TO OR JOINED THE13
APPLICATION. THE APPLICATION MUST INCLUDE THE CONSENT OF SUCH14
COUNTIES TO ASSUME THE RESPONSIBILITIES FOR PROVIDING THE SERVICES15
THAT HAD BEEN PROVIDED BY THE SPECIAL DISTRICT IN THEIR RESPECTIVE16
JURISDICTIONS OR EVIDENCE OF AN AGREEMENT TO PROVIDE THE SERVICES17
ON A CONTRACTUAL BASIS.18
(5) If the territory encompassed by a special district lies within the19
boundaries of two or more regional service authorities and if such service20
authorities provide the same service as that provided by the special21
district, the two or more service authorities may file jointly an application22
with the board to dissolve the special district, and the board, promptly and23
in good faith, shall take the necessary steps to dissolve such district in24
accordance with the procedures specified in subsection (2) of this section.25
The application shall MUST include the consent of such service authorities26
to assume the responsibilities for providing the service in their respective27
1097
-3- jurisdictions or the consent of one regional service authority to provide1
the service on a contractual basis.2
(6) Any application filed with the board to dissolve a special3
district under subsection (2), (3), (3.5), (3.7), (4), or (5) of this section4
shall MUST be accompanied by a cash bond in the amount of three5
hundred dollars to cover the expenses connected with the proceedings if6
the dissolution is not effected.7
SECTION 2. In Colorado Revised Statutes, 32-1-702, amend (1)8
as follows:9
32-1-702. Requirements for dissolution petition. (1) A petition10
for dissolution shall MUST generally describe the territory embraced in the11
special district, shall MUST have a map showing the special district, a12
current financial statement of the special district, and a plan for final13
disposition of the assets of the special district and for payment of the14
financial obligations of the special district, shall MUST state whether or15
not the services of the special district are to be continued and, if so, by16
what means, and shall MUST state whether the existing board or a portion17
thereof shall IS TO continue in office, subject to court appointment to fill18
vacancies. Said petition may provide for the regional service authority19
board,
THE BOARD OF COUNTY COMMISSIONERS , or the governing body of20
the municipality to act as the board in accordance with the provisions of
21
section 32-1-707.22
SECTION 3. In Colorado Revised Statutes, 32-1-704, amend23
(3)(b) as follows:24
32-1-704. Conditions necessary for dissolution - permissible25
provisions - hearings - court powers. (3) (b) (I) Subject to the26
provisions of paragraph (c) of this subsection (3) SUBSECTION (3)(c) OF27
1097
-4- THIS SECTION, the court shall enter an order dissolving the special district1
pursuant to section 32-1-707 without an election if the special district lies2
wholly within the corporate limits of the municipality, if the special3
district has no financial obligations or outstanding bonds, and if the4
special district board and the governing body of the municipality consent5
to the dissolution.6
(II) SUBJECT TO THE PROVISIONS OF SUBSECTION (3)(c) OF THIS7
SECTION, THE COURT SHALL ENTER AN ORDER DISSOLVING THE SPECIAL8
DISTRICT PURSUANT TO SECTION 32-1-707 WITHOUT AN ELECTION IF THE9
SPECIAL DISTRICT LIES WHOLLY WITHIN THE COUNTY, IF THE SPECIAL10
DISTRICT HAS NO FINANCIAL OBLIGATIONS OR OUTSTANDING BONDS, AND11
IF THE SPECIAL DISTRICT BOARD AND THE BOARD OF COUNTY12
COMMISSIONERS CONSENT TO THE DISSOLUTION, AND, IF MORE THAN13
EIGHTY-FIVE PERCENT OF THE TERRITORY ENCOMPASSED BY THE SPECIAL14
DISTRICT LIES WITHIN THE CORPORATE LIMITS OF ONE OR MORE15
MUNICIPALITIES, THE GOVERNING BODIES OF ALL SUCH MUNICIPALITIES16
ALSO CONSENT TO THE DISSOLUTION .17
SECTION 4. Act subject to petition - effective date. This act18
takes effect at 12:01 a.m. on the day following the expiration of the19
ninety-day period after final adjournment of the general assembly; except20
that, if a referendum petition is filed pursuant to section 1 (3) of article V21
of the state constitution against this act or an item, section, or part of this22
act within such period, then the act, item, section, or part will not take23
effect unless approved by the people at the general election to be held in24
November 2022 and, in such case, will take effect on the date of the25
official declaration of the vote thereon by the governor.26
1097
-5-