HOUSE BILL 22-1097
BY REPRESENTATIVE(S) Valdez D., Gray, Lindsay, Sandridge,
Van Winkle;
also SENATOR(S) Simpson, Kolker, Rankin.
C
ONCERNING THE AUTHORITY OF A BOARD OF COUNTY COMMISSIONERS TO
FILE AN APPLICATION FOR DISSOLUTION OF A SPECIAL DISTRICT WITH
THE SPECIAL DISTRICT
'S BOARD OF DIRECTORS, AND, IN CONNECTION
THEREWITH
, ALLOWING A BOARD OF COUNTY COMMISSIONERS TO
CONSENT TO DISSOLUTION BY COURT ORDER WITHOUT AN ELECTION
OF A SPECIAL DISTRICT WITH NO OUTSTANDING FINANCIAL
OBLIGATIONS OR DEBT
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 32-1-701, amend (5)
and (6); and add (3.5) and (3.7) as follows:
32-1-701. Initiation - petition - procedure. (3.5) I
F THE
TERRITORY ENCOMPASSED BY A SPECIAL DISTRICT LIES WHOLLY WITHIN THE
BOUNDARIES OF A COUNTY
, THE BOARD OF COUNTY COMMISSIONERS OF ANY
SUCH COUNTY MAY FILE AN APPLICATION WITH THE SPECIAL DISTRICT
'S
BOARD OF DIRECTORS TO DISSOLVE THE SPECIAL DISTRICT
, AND THE SPECIAL
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. DISTRICT'S BOARD OF DIRECTORS, PROMPTLY AND IN GOOD FAITH , SHALL
TAKE THE NECESSARY STEPS TO DISSOLVE THE DISTRICT IN ACCORDANCE
WITH THE PROCEDURES SPECIFIED IN SUBSECTION
(2) OF THIS SECTION;
EXCEPT THAT, IF MORE THAN EIGHTY-FIVE PERCENT OF THE TERRITORY
ENCOMPASSED BY THE SPECIAL DISTRICT LIES WITHIN THE CORPORATE
LIMITS OF ONE OR MORE MUNICIPALITIES
, THE SPECIAL DISTRICT'S BOARD OF
DIRECTORS SHALL NOT TAKE ANY ACTION ON THE APPLICATION UNLESS THE
GOVERNING BODIES OF ALL SUCH MUNICIPALITIES HAVE CONSENTED TO OR
JOINED THE APPLICATION
.
(3.7) I
F THE TERRITORY ENCOMPASSED BY A SPECIAL DISTRICT LIES
WITHIN THE BOUNDARIES OF TWO OR MORE COUNTIES
, THE BOARD OF
COUNTY COMMISSIONERS OF EACH OF THE COUNTIES MAY JOINTLY FILE AN
APPLICATION WITH THE SPECIAL DISTRICT
'S BOARD OF DIRECTORS TO
DISSOLVE THE SPECIAL DISTRICT
, AND THE SPECIAL DISTRICT'S BOARD OF
DIRECTORS
, PROMPTLY AND IN GOOD FAITH, SHALL TAKE THE NECESSARY
STEPS TO DISSOLVE THE DISTRICT IN ACCORDANCE WITH THE PROCEDURES
SPECIFIED IN SUBSECTION
(2) OF THIS SECTION; EXCEPT THAT, IF MORE THAN
EIGHTY
-FIVE PERCENT OF THE TERRITORY ENCOMPASSED BY THE SPECIAL
DISTRICT LIES WITHIN THE CORPORATE LIMITS OF ONE OR MORE
MUNICIPALITIES
, THE SPECIAL DISTRICT'S BOARD OF DIRECTORS SHALL NOT
TAKE ANY ACTION ON THE APPLICATION UNLESS THE GOVERNING BODIES OF
ALL SUCH MUNICIPALITIES HAVE CONSENTED TO OR JOINED THE
APPLICATION
. THE APPLICATION MUST INCLUDE THE CONSENT OF SUCH
COUNTIES TO ASSUME THE RESPONSIBILITIES FOR PROVIDING THE SERVICES
THAT HAD BEEN PROVIDED BY THE SPECIAL DISTRICT IN THEIR RESPECTIVE
JURISDICTIONS OR EVIDENCE OF AN AGREEMENT TO PROVIDE THE SERVICES
ON A CONTRACTUAL BASIS
.
(5) If the territory encompassed by a special district lies within the
boundaries of two or more regional service authorities and if such service
authorities provide the same service as that provided by the special district,
the two or more service authorities may file jointly an application with the
board to dissolve the special district, and the board, promptly and in good
faith, shall take the necessary steps to dissolve such district in accordance
with the procedures specified in subsection (2) of this section. The
application shall
MUST include the consent of such service authorities to
assume the responsibilities for providing the service in their respective
jurisdictions or the consent of one regional service authority to provide the
service on a contractual basis.
PAGE 2-HOUSE BILL 22-1097 (6) Any application filed with the board to dissolve a special district
under subsection (2), (3), (3.5), (3.7), (4), or (5) of this section shall MUST
be accompanied by a cash bond in the amount of three hundred dollars to
cover the expenses connected with the proceedings if the dissolution is not
effected.
SECTION 2. In Colorado Revised Statutes, 32-1-702, amend (1)
as follows:
32-1-702. Requirements for dissolution petition. (1) A petition
for dissolution shall
MUST generally describe the territory embraced in the
special district, shall MUST have a map showing the special district, a
current financial statement of the special district, and a plan for final
disposition of the assets of the special district and for payment of the
financial obligations of the special district, shall
MUST state whether or not
the services of the special district are to be continued and, if so, by what
means, and shall
MUST state whether the existing board or a portion thereof
shall IS TO continue in office, subject to court appointment to fill vacancies.
Said petition may provide for the regional service authority board,
THE
BOARD OF COUNTY COMMISSIONERS
, or the governing body of the
municipality to act as the board in accordance with the provisions of
section
32-1-707.
SECTION 3. In Colorado Revised Statutes, 32-1-704, amend
(3)(b) as follows:
32-1-704. Conditions necessary for dissolution - permissible
provisions - hearings - court powers. (3) (b) (I) Subject to the provisions
of paragraph (c) of this subsection (3) SUBSECTION (3)(c) OF THIS SECTION,
the court shall enter an order dissolving the special district pursuant to
section 32-1-707 without an election if the special district lies wholly within
the corporate limits of the municipality, if the special district has no
financial obligations or outstanding bonds, and if the special district board
and the governing body of the municipality consent to the dissolution.
(II) S
UBJECT TO THE PROVISIONS OF SUBSECTION (3)(c) OF THIS
SECTION
, THE COURT SHALL ENTER AN ORDER DISSOLVING THE SPECIAL
DISTRICT PURSUANT TO SECTION
32-1-707 WITHOUT AN ELECTION IF THE
SPECIAL DISTRICT LIES WHOLLY WITHIN THE COUNTY
, IF THE SPECIAL
DISTRICT HAS NO FINANCIAL OBLIGATIONS OR OUTSTANDING BONDS
, AND IF
PAGE 3-HOUSE BILL 22-1097 THE SPECIAL DISTRICT BOARD AND THE BOARD OF COUNTY COMMISSIONERS
CONSENT TO THE DISSOLUTION
, AND, IF MORE THAN EIGHTY-FIVE PERCENT
OF THE TERRITORY ENCOMPASSED BY THE SPECIAL DISTRICT LIES WITHIN THE
CORPORATE LIMITS OF ONE OR MORE MUNICIPALITIES
, THE GOVERNING
BODIES OF ALL SUCH MUNICIPALITIES ALSO CONSENT TO THE DISSOLUTION
.
SECTION 4. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 4-HOUSE BILL 22-1097 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 5-HOUSE BILL 22-1097