First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0957.01 Zach Blaes x4348 HOUSE BILL 23-1276 House Committees Senate Committees Transportation, Housing & Local Government A BILL FOR AN ACT C ONCERNING THE BRIDGE AND TUNNEL ENTERPRISE , AND, IN101 CONNECTION THEREWITH , EXPANDING THE SCOPE OF THE102 ENTERPRISE'S POWERS TO INCLUDE THE COMPLETION OF103 PREVENTATIVE MAINTENANCE BRIDGE PROJECTS AND104 ALLOWING THE ENTERPRISE TO REPAIR , RECONSTRUCT ,105 REPLACE, AND MAINTAIN A FAIR-RATED BRIDGE UNDER CERTAIN106 CIRCUMSTANCES.107 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 .) HOUSE SPONSORSHIP Lindstedt and Vigil, SENATE SPONSORSHIP Zenzinger, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. The bridge and tunnel enterprise (BTE) in the department of transportation (department) completes tunnel projects and finances, repairs, reconstructs, replaces, and maintains designated bridges in the state. A designated bridge is a bridge that is part of the state highway system that the department has identified as structurally deficient or functionally obsolete and that the department has rated as poor. The bill: ! Expands the scope of the BTE to include the completion of preventative maintenance bridge projects, which are projects that involve a treatment or strategy to extend the service life of a fair-rated or good-rated bridge by preventing, delaying, or reducing deterioration; and ! Specifies that the BTE may repair, reconstruct, replace, and maintain a bridge that the department has rated as fair if the fair-rated bridge is included as part of a project to repair, reconstruct, replace, or maintain a designated bridge. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 43-4-802, amend2 (2)(c), (2)(d), (2)(f), and (3)(a) introductory portion as follows:3 43-4-802. Legislative declaration. (2) The general assembly4 further finds and declares that:5 (c) Increasing funding for designated bridge projects,6 PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , tunnel projects, and road7 safety projects in the short- and medium-term through the imposition of8 bridge and road safety surcharges, a bridge and tunnel impact fee, and9 other new fees at rates reasonably calculated based on the benefits10 received by the persons paying the fees will not only provide funding to11 complete the projects but will also accelerate the state's economic12 recovery by increasing bridge, tunnel, and road construction, repair,13 reconstruction, and maintenance activity, as well as related economic14 activity, and by employing significant numbers of Coloradans;15 (d) The creation of a statewide bridge and tunnel enterprise16 HB23-1276-2- authorized to complete designated bridge projects, PREVENTATIVE1 MAINTENANCE BRIDGE PROJECTS , and tunnel projects, to impose a bridge2 safety surcharge and a bridge and tunnel impact fee and issue revenue3 bonds, and, if required approvals are obtained, to contract with the state4 to receive one or more loans of money received by the state under the5 terms of one or more financed purchase of an asset or certificate of6 participation agreements authorized by this part 8 and to use the revenues7 generated by the bridge safety surcharge and the bridge and tunnel impact8 fee to repay any such loan or loans, will improve the safety and efficiency9 of the state transportation system by allowing the state to accelerate the10 repair, reconstruction, and replacement of structurally deficient,11 functionally obsolete, and rated as poor bridges, TO PERFORM12 PREVENTATIVE MAINTENANCE ON BRIDGES RATED AS FAIR AND GOOD , and13 TO repair, maintain, and more safely operate tunnels;14 (f) Granting the bridge enterprise and the transportation enterprise15 both responsibility for the completion, respectively, of designated bridge16 projects, PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , and tunnel17 projects and other important surface transportation projects and the18 flexibility to execute their respective missions in a variety of innovative19 ways will ensure that available resources for such projects are efficiently20 and effectively leveraged so that both the projects and the state's21 economic recovery can be completed as quickly as possible.22 (3) The general assembly further finds and declares that:23 (a) While it is necessary, appropriate, and in the best interests of24 the state to fund designated bridge projects, PREVENTATIVE MAINTENANCE25 BRIDGE PROJECTS, tunnel projects, and highway safety projects and26 stimulate economic recovery in the short- and medium-term, the state27 HB23-1276 -3- must also develop a long-term strategy to provide sustainable long-term1 revenue streams dedicated for the construction of important surface2 transportation infrastructure projects and the continuing maintenance,3 repair, and reconstruction of the statewide surface transportation system4 that will:5 SECTION 2. In Colorado Revised Statutes, 43-4-803, amend6 (11), (13)(b)(IV), and (13)(b)(V); and add (12.5), (12.7), and (17.5) as7 follows:8 43-4-803. Definitions. As used in this part 8, unless the context9 otherwise requires:10 (11) "Designated bridge project" means a project that involves the11 repair, reconstruction, replacement, or ongoing operation or maintenance,12 or any combination thereof, of a designated bridge by the bridge13 enterprise pursuant to an agreement between the enterprise and the14 commission or department authorized by section 43-4-805 (5)(f). A15 FAIR-RATED BRIDGE MAY BE INCLUDED IN A DESIGNATED BRIDGE PROJECT16 OR OTHER PROJECT INVOLVING THE REPAIR , REPLACEMENT, OR17 RECONSTRUCTION OF A DESIGNATED BRIDGE IF INCLUDING THE18 FAIR-RATED BRIDGE IS AN EFFICIENT USE OF THE BRIDGE ENTERPRISE 'S19 RESOURCES AND WILL RESULT IN COST SAVINGS OR SCHEDULE20 ACCELERATION FOR A PROJECT THAT WILL IMPROVE SAFETY .21 (12.5) "F AIR-RATED BRIDGE" MEANS EVERY BRIDGE, INCLUDING22 ANY ROADWAYS, SIDEWALKS, OR OTHER INFRASTRUCTURE CONNECTED TO ,23 ADJACENT TO, OR REQUIRED FOR THE OPTIMAL FUNCTIONING OF THE24 BRIDGE, THAT:25 (a) I S PART OF THE STATE HIGHWAY SYSTEM , AS DESCRIBED IN26 SECTION 43-2-101; AND27 HB23-1276 -4- (b) THE DEPARTMENT HAS RATED AS FAIR .1 (12.7) "G OOD-RATED BRIDGE" MEANS EVERY BRIDGE, INCLUDING2 ANY ROADWAYS, SIDEWALKS, OR OTHER INFRASTRUCTURE CONNECTED TO ,3 ADJACENT TO, OR REQUIRED FOR THE OPTIMAL FUNCTIONING OF THE4 BRIDGE, THAT:5 (a) I S PART OF THE STATE HIGHWAY SYSTEM , AS DESCRIBED IN6 SECTION 43-2-101; AND7 (b) T HE DEPARTMENT HAS RATED AS GOOD .8 (13) (b) "Grant" does not include any of the following or any9 interest or income derived from the deposit and investment of the10 following:11 (IV) Any moneys MONEY paid or advanced to the bridge12 enterprise or the transportation enterprise by the state, a local government13 or group of local governments, an authority, or any other14 government-owned business or governmental entity in exchange for an15 agreement by either enterprise to complete a designated bridge project, A16 PREVENTATIVE MAINTENANCE BRIDGE PROJECT , or a surface17 transportation infrastructure project; or18 (V) Any moneys MONEY loaned by the commission to the bridge19 enterprise pursuant to section 43-4-805 (4) or (5)(r) or the transportation20 enterprise pursuant to section 43-4-806 (4).21 (17.5) "P REVENTATIVE MAINTENANCE BRIDGE PROJECT " MEANS A22 PROJECT THAT INVOLVES A TREATMENT OR STRATEGY TO EXTEND THE23 SERVICE LIFE OF A FAIR-RATED OR GOOD-RATED BRIDGE BY PREVENTING,24 DELAYING, OR REDUCING THE DETERIORATION OF A BRIDGE .25 SECTION 3. In Colorado Revised Statutes, 43-4-805, amend26 (1)(a), (1)(b), (2)(a)(I), (2)(b) introductory portion, (2)(b)(II), (2)(c), (3),27 HB23-1276 -5- (5)(c), (5)(f), (5)(h), (5)(k), (5)(l), (5)(p), (5)(q), (5)(r)(I), and (5)(r)(II) as1 follows:2 43-4-805. Statewide bridge enterprise - creation - board -3 funds - powers and duties - legislative declaration - definitions.4 (1) The general assembly hereby finds and declares that:5 (a) The completion of designated bridge projects, PREVENTATIVE6 MAINTENANCE BRIDGE PROJECTS , and tunnel projects is essential to7 address increasing traffic congestion and delays, hazards, injuries, and8 fatalities;9 (b) Due to the limited availability of state and federal funding and10 the need to accomplish the financing, repair, reconstruction, and11 replacement of designated bridges, COMPLETION OF PREVENTATIVE12 MAINTENANCE BRIDGE PROJECTS , and COMPLETION OF tunnel projects as13 promptly and efficiently as possible, it is necessary to create a statewide14 bridge and tunnel enterprise and to authorize the enterprise to:15 (I) Enter into agreements with the commission or the department16 to finance, repair, reconstruct, and replace designated bridges, COMPLETE17 PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , and complete tunnel18 projects in the state; and19 (II) Impose a bridge safety surcharge, a bridge and tunnel impact20 fee, and a bridge and tunnel retail delivery fee at rates reasonably21 calculated to defray the costs of completing designated bridge projects,22 PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , and tunnel projects and23 distribute the burden of defraying the costs in a manner based on the24 benefits received by persons paying the fees and using designated bridges25 and tunnels and receiving retail deliveries, receive and expend revenue26 generated by the surcharge and fees and other money, issue revenue27 HB23-1276 -6- bonds and other obligations, contract with the state, if required approvals1 are obtained, to receive one or more loans of money received by the state2 under the terms of one or more financed purchase of an asset or certificate3 of participation agreements authorized by this part 8, expend revenue4 generated by the surcharge to repay any such loan or loans received, and5 exercise other powers necessary and appropriate to carry out its purposes;6 and7 (2) (a) (I) The scope of the existing statewide bridge enterprise8 created in this subsection (2)(a)(I) in 2009 is hereby expanded to include9 both designated bridge projects, PREVENTATIVE MAINTENANCE BRIDGE10 PROJECTS, and surface transportation infrastructure projects for tunnels,11 and the name of the expanded enterprise is the statewide bridge and12 tunnel enterprise. The bridge enterprise is and operates as a13 government-owned business within the department. The commission shall14 serve as the bridge enterprise board and shall, with the consent of the15 executive director, appoint a bridge enterprise director who shall possess16 such qualifications as may be established by the commission and the state17 personnel board. The bridge enterprise director shall oversee the18 discharge of all responsibilities of the bridge enterprise and shall serve at19 the pleasure of the bridge enterprise board.20 (b) The business purpose of the bridge enterprise is to finance,21 repair, reconstruct, and replace any designated bridge in the state,22 COMPLETE PREVENTATIVE MAINTE NANCE BRIDGE PROJECTS , and complete23 tunnel projects and, as agreed upon by the enterprise and the commission,24 or the department to the extent authorized by the commission, to maintain25 the bridges it finances, repairs, reconstructs, and replaces. To allow the26 bridge enterprise to accomplish this purpose and fully exercise its powers27 HB23-1276 -7- and duties through the bridge enterprise board, the bridge enterprise may:1 (II) Issue revenue bonds payable from the revenues and other2 available moneys MONEY of the bridge enterprise pledged for their3 payment as authorized in section 43-4-807; and4 (c) The bridge enterprise shall constitute CONSTITUTES an5 enterprise for purposes of section 20 of article X of the state constitution6 so long as it retains the authority to issue revenue bonds and receives less7 than ten percent of its total revenues in grants from all Colorado state and8 local governments combined. So long as it constitutes an enterprise9 pursuant to this subsection (2)(c), the bridge enterprise shall not be10 subject to any provisions of section 20 of article X of the state11 constitution. Consistent with the determination of the Colorado supreme12 court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo.13 1995), that the power to impose taxes is inconsistent with "enterprise"14 status under section 20 of article X of the state constitution, the general15 assembly finds and declares that a bridge safety surcharge, a bridge and16 tunnel impact fee, or a bridge and tunnel retail delivery fee imposed by17 the bridge enterprise as authorized by subsection (5)(g), (5)(g.5), or18 (5)(g.7) of this section is not a tax but is instead a fee imposed by the19 bridge enterprise to defray the cost of completing designated bridge20 projects, PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , and tunnel21 projects that the enterprise provides as a specific service to the persons22 upon whom the fee is imposed and at rates reasonably calculated based23 on the benefits received by such persons.24 (3) (a) The statewide bridge and tunnel enterprise special revenue25 fund, referred to in this part 8 as the "bridge special fund", is hereby26 created in the state treasury. All revenue received by the bridge enterprise,27 HB23-1276 -8- including, but not limited to, revenue from a bridge safety surcharge1 imposed as authorized by subsection (5)(g) of this section, revenue from2 a bridge and tunnel impact fee imposed as authorized by subsection3 (5)(g.5) of this section, revenue from a bridge and tunnel retail delivery4 fee imposed as authorized by subsection (5)(g.7) of this section, and any5 money loaned to the enterprise by the state pursuant to subsection (5)(r)6 of this section, shall be deposited into the bridge special fund. The bridge7 enterprise board may establish separate accounts within the bridge special8 fund as needed in connection with any specific designated bridge project,9 PREVENTATIVE MAINTENANCE BRIDGE PROJECT , or tunnel project. The10 bridge enterprise also may deposit or permit others to deposit other money11 into the bridge special fund, but in no event may revenue from any tax12 otherwise available for general purposes be deposited into the bridge13 special fund. The state treasurer, after consulting with the bridge14 enterprise board, shall invest any money in the bridge special fund,15 including any surplus or reserves, but excluding any proceeds from the16 sale of bonds or earnings on such proceeds invested pursuant to section17 43-4-807 (2), that are not needed for immediate use. Such money may be18 invested in the types of investments authorized in sections 24-36-109,19 24-36-112, and 24-36-113.20 (b) All interest and income derived from the deposit and21 investment of moneys in the bridge special fund shall be credited to the22 bridge special fund and, if applicable, to the appropriate designated23 bridge project account, Moneys PREVENTATIVE MAINTENANCE BRIDGE24 PROJECT ACCOUNT, OR TUNNEL PROJECT ACCOUNT. MONEY in the bridge25 special fund shall be continuously appropriated to the bridge enterprise26 for the purposes set forth in this part 8. All moneys MONEY deposited in27 HB23-1276 -9- the bridge special fund shall remain in the bridge special fund for the1 purposes set forth in this part 8, and no part of the bridge special fund2 shall be used for any other purpose.3 (c) The bridge enterprise may expend money in the bridge special4 fund to pay bond or loan obligations, to fund the administration, planning,5 financing, repair, reconstruction, replacement, or maintenance of6 designated bridges and the completion of tunnel projects, and for the7 acquisition of land to the extent required in connection with any8 designated bridge project. The bridge enterprise may also expend money9 in the bridge special fund to pay its operating costs and expenses. The10 bridge enterprise board shall have HAS exclusive authority to budget and11 approve the expenditure of money in the bridge special fund. T HE BRIDGE12 ENTERPRISE MAY EXPEND MONEY IN THE BRIDGE SPECIAL FUND TO PAY13 FOR:14 (I) B OND OR LOAN OBLIGATIONS;15 (II) T HE ADMINISTRATION, PLANNING, FINANCING, REPAIR,16 RECONSTRUCTION, REPLACEMENT, OR MAINTENANCE OF A DESIGNATED17 BRIDGE;18 (III) T HE COMPLETION OF PREVENTATIVE MAINTENANCE BRIDGE19 PROJECTS;20 (IV) T HE ADMINISTRATION, PLANNING, FINANCING, REPAIR,21 REPLACEMENT, RECONSTRUCTION, OR MAINTENANCE OF A FAIR-RATED22 BRIDGE IF THE REPAIR, REPLACEMENT, OR RECONSTRUCTION IS INCLUDED23 AS PART OF A DESIGNATED BRIDGE PROJECT OR OTHER PROJECT INVOLVING24 THE REPAIR, REPLACEMENT, OR RECONSTRUCTION OF A DESIGNATED25 BRIDGE. A FAIR-RATED BRIDGE MAY BE INCLUDED IN A DESIGNATED26 BRIDGE PROJECT OR OTHER PROJECT INVOLVING THE REPAIR ,27 HB23-1276 -10- REPLACEMENT, OR RECONSTRUCTION OF A DESIGNATED BRIDGE IF1 INCLUDING THE FAIR-RATED BRIDGE IS AN EFFICIENT USE OF THE BRIDGE2 ENTERPRISE'S RESOURCES AND WILL RESULT IN COST SAVINGS OR3 SCHEDULE ACCELERATION FOR A PROJECT THAT WILL IMPROVE SAFETY .4 (V) T HE COMPLETION OF TUNNEL PROJECTS ;5 (VI) T HE ACQUISITION OF LAND TO THE EXTENT REQUIRED IN6 CONNECTION WITH ANY DESIGNATED BRIDGE PROJECT ; AND7 (VII) T HE OPERATING COSTS AND EXPENSES OF THE BRIDGE8 ENTERPRISE.9 (5) In addition to any other powers and duties specified in this10 section, the bridge enterprise board has the following powers and duties:11 (c) To issue revenue bonds, payable solely from the bridge special12 fund, for the purpose of paying the cost of financing, repairing,13 reconstructing, replacing, and maintaining designated bridges OR14 FAIR-RATED BRIDGES IF THE FAIR-RATED BRIDGES ARE INCLUDED AS PART15 OF DESIGNATED BRIDGE PROJECTS OR OTHER PROJECTS PURS UANT TO16 SUBSECTION (3)(c)(IV) OF THIS SECTION, COMPLETING PREVENTATIVE17 MAINTENANCE BRIDGE PROJECTS , and completing tunnel projects;18 (f) To enter into agreements AN AGREEMENT with the commission,19 or the department to the extent authorized by the commission, under20 which the bridge enterprise agrees to finance, repair, reconstruct, replace,21 and, if any given agreement so specifies, maintain designated bridges as22 specified in the agreements A DESIGNATED BRIDGE OR A FAIR -RATED23 BRIDGE IF THE FAIR-RATED BRIDGE IS INCLUDED AS PART OF A DESIGNATED24 BRIDGE PROJECT OR OTHER PROJECT PURSUANT TO SUBSECTION (3)(c)(IV)25 OF THIS SECTION;26 (h) To make and enter into contracts or agreements with a private27 HB23-1276 -11- entity, to facilitate a public-private initiative pursuant to sections1 43-1-1203 and 43-1-1204, including, but not limited to:2 (I) An agreement pursuant to which the bridge enterprise or the3 enterprise on behalf of the department operates, maintains, or provides4 services or property in connection with a designated bridge project, and5 PREVENTATIVE MAINTENANCE BRIDGE PROJECT , OR TUNNEL PROJECT;6 (II) An agreement pursuant to which a private entity designs,7 develops, constructs, reconstructs, repairs, operates, or maintains all or8 any portion of a designated bridge project on behalf of the bridge9 enterprise; AND10 (III) A N AGREEMENT PURSUANT TO WHICH A PRIVATE ENTITY11 PARTICIPATES IN OR COMPLETES A PREVENTATIVE MAINTENANCE BRIDGE12 PROJECT OR TUNNEL PROJECT.13 (k) To prepare, or cause to be prepared, detailed plans,14 specifications, or estimates for any designated bridge project,15 PREVENTATIVE MAINTENANCE BRIDGE PROJECT , or tunnel project within16 the state;17 (l) In connection with any designated bridge project, to acquire,18 finance, repair, reconstruct, replace, operate, and maintain any designated19 bridge within the state OR ANY FAIR-RATED BRIDGE IF THE FAIR-RATED20 BRIDGE IS INCLUDED AS PART OF A DESIGNATED BRIDGE PROJECT21 PURSUANT TO SUBSECTION (3)(c)(IV) OF THIS SECTION;22 (p) Pursuant to section 24-1-107.5, C.R.S., to establish, create, and23 approve nonprofit entities and bonds issued by or on behalf of such24 nonprofit entities for the purpose of completing a designated bridge25 project, PREVENTATIVE MAINTENANCE BRIDGE PROJECT , OR TUNNEL26 PROJECT, to accept the assets of any such nonprofit entity, to obtain an27 HB23-1276 -12- option to acquire the assets of any such nonprofit entity by paying its1 bonds, to appoint or approve the appointment of members of the2 governing board of any such nonprofit entity, and to remove the members3 of the governing board of any such nonprofit entity for cause;4 (q) To transfer money, property, or other assets of the bridge5 enterprise to the department to the extent necessary to implement the6 financing of any designated bridge project, PREVENTATIVE MAINTENANCE7 BRIDGE PROJECT, OR TUNNEL PROJECT, or for any other purpose authorized8 in this part 8;9 (r) (I) To contract with the state to borrow money under the terms10 of one or more loan contracts entered into by the state and the bridge11 enterprise pursuant to subsection (5)(r)(III) of this section, to expend any12 money borrowed from the state for the purpose of completing designated13 bridge projects, PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , and14 tunnel projects and for any other authorized purpose that constitutes the15 construction, supervision, and maintenance of the public highways of this16 state for purposes of section 18 of article X of the state constitution, and17 to use revenue generated by any bridge safety surcharge, bridge and18 tunnel impact fee, or bridge and tunnel retail delivery fee imposed19 pursuant to subsection (5)(g), (5)(g.5), or (5)(g.7) of this section and any20 other legally available money of the bridge enterprise to repay the money21 borrowed and any other amounts payable under the terms of the loan22 contract.23 (II) If the bridge enterprise board seeks to enter into a contract to24 borrow money from the state as authorized by subsection (5)(r)(I) of this25 section, the board shall provide the governor with a list of designated26 bridge projects, PREVENTATIVE MAINTENANCE BRIDGE PROJECTS , OR27 HB23-1276 -13- TUNNEL PROJECTS to be financed with the borrowed money and a1 statement of both the total amount of the loan requested and the estimated2 amount of the loan that will be used to fund each project on the list. If the3 governor determines, in the governor's sole discretion, that lending money4 to the bridge enterprise as requested by the enterprise, or lending a lesser5 amount of money to the enterprise, is in the best interest of the state, the6 governor, after consultation with the executive director of the department7 of personnel and the state treasurer, shall prepare and provide to the state8 treasurer a list of state buildings or other state capital facilities that the9 state, acting by and through the state treasurer, may sell or lease and lease10 back pursuant to the terms of one or more financed purchase of an asset11 or certificate of participation agreements that the state, acting by and12 through the state treasurer, may enter into pursuant to subsection13 (5)(r)(III) of this section. When providing the list, the governor shall also14 specify to the state treasurer the maximum permitted principal amount of15 any loan that may be made to the bridge enterprise under the terms of any16 loan contract that the state, acting by and through the state treasurer, may17 enter into pursuant to subsection (5)(r)(III)(A) of this section.18 SECTION 4. Act subject to petition - effective date. This act19 takes effect at 12:01 a.m. on the day following the expiration of the20 ninety-day period after final adjournment of the general assembly; except21 that, if a referendum petition is filed pursuant to section 1 (3) of article V22 of the state constitution against this act or an item, section, or part of this23 act within such period, then the act, item, section, or part will not take24 effect unless approved by the people at the general election to be held in25 November 2024 and, in such case, will take effect on the date of the26 official declaration of the vote thereon by the governor.27 HB23-1276 -14-