First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 23-0819.01 Megan McCall x4215
SENATE BILL 23-161
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING STATE FUNDING TO FINANCE THE PURCHASE OF A101
FIREFIGHTING AIRCRAFT TO RESPOND TO WILDFIRES .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
.)
The bill directs the state, through the state treasurer, to execute a
financed purchase of an asset or certificate of participation agreement
(financing agreement) in an amount not to exceed $4 million in annual
payments and for a term of up to 20 years for the purchase of a fire hawk
helicopter, configured for wildfire and other public safety response needs,
for use by the division of fire prevention and control (division) within the
SENATE SPONSORSHIP
Fenberg and Will,
HOUSE SPONSORSHIP
Lynch and McCluskie,
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. department of public safety, subject to the availability of a suitable
aircraft at a reasonable price as determined by the state treasurer in
consultation with the division. Payments under the financing agreement
are subject to annual appropriation by the general assembly from the
Colorado firefighting air corps fund, from the general fund, or from any
other legally available source of money. The financing agreement that is
entered into must authorize the state or the division to receive fee title to
the fire hawk helicopter on or before the expiration of the terms of the
financing agreement.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 24-33.5-1228.52
as follows:3
24-33.5-1228.5. Financed purchase of an asset or certificate of4
participation agreement for firefighting and aerial firefighting assets.5
(1) (a) N
OTWITHSTANDING THE PROVISIONS OF SECTIONS 24-82-1026
(1)(b)
AND 24-82-801, AND PURSUANT TO SECTION 24-36-121, THE STATE,7
ACTING BY AND THROUGH THE STATE TREASURER , SHALL, SUBJECT TO8
AVAILABILITY OF A SUITABLE AIRCRA FT AT A REASONABLE PRICE AS9
DETERMINED BY THE STATE TREASURER IN CONSULTATION WITH THE10
DIVISION, EXECUTE A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE11
OF PARTICIPATION AGREEMENT FOR NO MORE THAN TWENTY YEARS OF12
ANNUAL PAYMENTS, FOR THE PURCHASE BY THE STATE OF A FIRE HAWK13
HELICOPTER, CONFIGURED FOR WILDFIRE AND OTHER PUBLIC SAFETY14
RESPONSE NEEDS, FOR USE BY THE DIVISION. THE STATE SHALL EXECUTE15
THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION16
AGREEMENT AS SOON AS POSSIBLE AFTER THE EFFECTIVE DATE OF THIS17
SECTION.18
(b) T
HE ANTICIPATED ANNUAL STATE-FUNDED PAYMENTS FOR THE19
PRINCIPAL AND INTEREST COMPONENTS OF THE AMOUNT PAYABLE UNDER20
SB23-161-2- THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION1
AGREEMENT AUTHORIZED BY SUBSECTION (1)(a) OF THIS SECTION SHALL2
NOT EXCEED FOUR MILLION DOLLARS .3
(c) T
HE STATE, ACTING BY AND THROUGH THE STATE TREASURER ,4
AT THE DIRECTION OF THE DIVISION AND AT THE STATE TREASURER 'S SOLE5
DISCRETION, MAY ENTER INTO A FINANCED PURCHASE OF AN ASSET OR6
CERTIFICATE OF PARTICIPATION AGREEMENT AUTHORIZED BY SUBSECTION7
(1)(a)
OF THIS SECTION WITH ANY FOR -PROFIT OR NONPROFIT8
CORPORATION, TRUST, OR COMMERCIAL BANK ACTING AS A TRUSTEE , AS9
THE SELLER.10
(d) T
HE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF11
PARTICIPATION AGREEMENT EXECUTED AS AUTHORIZED BY SUBSECTION12
(1)(a)
OF THIS SECTION MUST PROVIDE THAT ALL OF THE OBLIGATIONS OF13
THE STATE UNDER THE AGREEMENT ARE SUBJECT TO THE ACTION OF THE14
GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY AVAILABLE FOR ALL15
PAYMENTS THEREUNDER . PAYMENTS UNDER THE FINANCED PURCHASE OF16
AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT MUST BE MADE17
SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY TO18
MAKE EACH FULL PAYMENT DUE PAID FROM THE COLORADO FIREFIGHTING19
AIR CORPS FUND CREATED IN SECTION 24-33.5-1228 (3)(a), REFERRED TO20
IN THIS SECTION AS THE "FUND", FROM THE GENERAL FUND, OR FROM ANY21
OTHER LEGALLY AVAILABLE SOURCE OF MONEY .22
(e) T
HE AGREEMENT MUST ALSO PROVIDE THAT THE OBLIGATIONS23
OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY24
PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR25
LIMITING THE CREATION OF STATE DEBT AND ARE NOT A MULTIPLE26
FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION27
SB23-161
-3- OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF1
THE STATE CONSTITUTION. IF THE STATE DOES NOT RENEW A FINANCED2
PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT3
EXECUTED AS AUTHORIZED BY SUBSECTION (1)(a) OF THIS SECTION, THE4
SOLE SECURITY AVAILABLE IS THE PROPERTY THAT IS THE SUBJECT OF THE5
NONRENEWED FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF6
PARTICIPATION AGREEMENT, THE FIRE HAWK HELICOPTER PURCHASED BY7
THE DIVISION PURSUANT TO SECTION 24-33.5-1228 (3)(c)(II)(A), OR ANY8
OTHER AVAILABLE FUNDS.9
(f) T
HE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF10
PARTICIPATION AGREEMENT EXECUTED AS AUTHORIZED BY SUBSECTION11
(1)(a)
OF THIS SECTION MAY CONTAIN SUCH TERMS , PROVISIONS, AND12
CONDITIONS AS THE STATE TREASURER, ACTING ON BEHALF OF THE STATE,13
DEEMS APPROPRIATE, INCLUDING ALL OPTIONAL TERMS; EXCEPT THAT THE14
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION15
AGREEMENT MUST SPECIFICALLY AUTHORIZE THE STATE OR THE DIVISION16
TO RECEIVE FEE TITLE TO ALL PROPERTY THAT IS SUBJECT TO THE17
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION18
AGREEMENT ON OR BEFORE THE EXPIRATION OF THE TERMS OF THE19
AGREEMENT.20
(g) T
HE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF21
PARTICIPATION AGREEMENT EXECUTED AS AUTHORIZED BY SUBSECTION22
(1)(a)
OF THIS SECTION MAY PROVIDE FOR THE ISSUANCE , DISTRIBUTION,23
AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO RECEIVE RENTALS AND24
OTHER PAYMENTS MADE AND TO BE MADE UNDER THE FINANCED25
PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT .26
T
HE INSTRUMENTS MAY BE ISSUED, DISTRIBUTED, OR SOLD ONLY BY THE27
SB23-161
-4- SELLER OR ANY PERSON DESIGNATED BY THE SELLER AND NOT BY THE1
STATE. THE INSTRUMENTS DO NOT CREATE A RELATIONSHIP BETWEEN THE2
PURCHASERS OF THE INSTRUMENTS AND THE STATE OR CREATE ANY3
OBLIGATION ON THE PART OF THE STATE TO THE PURCHASERS . THE4
INSTRUMENTS ARE NOT NOTES, BONDS, OR ANY OTHER EVIDENCE OF STATE5
DEBT WITHIN THE MEANING OF ANY PROVISION OF THE STATE6
CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE CREATION OF7
STATE DEBT AND ARE NOT A MULTIPLE FISCAL -YEAR DIRECT OR INDIRECT8
DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE WITHIN THE9
MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE CONSTITUTION.10
(h) I
NTEREST PAID UNDER A FINANCED PURCHASE OF AN ASSET OR11
CERTIFICATE OF PARTICIPATION AGREEMENT AUTHORIZED PURSUANT TO12
SUBSECTION (1)(a) OF THIS SECTION, INCLUDING INTEREST REPRESENTED13
BY THE INSTRUMENTS, IS EXEMPT FROM COLORADO INCOME TAX.14
(i) T
HE STATE, ACTING BY AND THROUGH THE STATE TREASURER15
OR THE DEPARTMENT FOR THE USE AND BENEFIT OF THE DIVISION , IS16
AUTHORIZED TO ENTER INTO ANCILLARY AGREEMENTS AND INSTRUMENTS17
THAT ARE NECESSARY OR APPROPRIATE IN CONNECTION WITH THE18
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION19
AGREEMENT, INCLUDING BUT NOT LIMITED TO DEEDS , GROUND LEASES,20
SUB-LEASES, EASEMENTS, OR OTHER INSTRUMENTS RELATED TO REAL21
PROPERTY AND IN CONNECTION WITH THE PURCHASE OF THE FIRE HAWK22
HELICOPTER.23
(j) T
HE PROVISIONS OF SECTION 24-30-202 (5)(b) DO NOT APPLY24
TO THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE AGREEMENT25
EXECUTED AS AUTHORIZED BY SUBSECTION (1)(a) OF THIS SECTION OR TO26
ANY ANCILLARY AGREEMENT OR INSTRUMENT ENTERED INTO PURSUANT27
SB23-161
-5- TO THIS SUBSECTION (1). THE STATE CONTROLLER OR THE STATE1
CONTROLLER'S DESIGNEE SHALL WAIVE ANY PROVISION OF THE FISCAL2
RULES PROMULGATED PURSUANT TO SECTION 24-30-202 (1) AND (13)3
THAT THE STATE CONTROLLER FINDS INCOMPATIBLE OR INAPPLICABLE4
WITH RESPECT TO THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE5
OF PARTICIPATION AGREEMENT OR AN ANCILLARY AGREEMENT OR6
INSTRUMENT.7
(2) (a) B
EFORE EXECUTING THE FINANCED PURCHASE OF AN ASSET8
OR CERTIFICATE OF PARTICIPATION AGREEMENT AUTHORIZED BY9
SUBSECTION (1)(a) OF THIS SECTION, IN ORDER TO PROTECT AGAINST10
FUTURE INTEREST RATE INCREASES, THE STATE, ACTING BY AND THROUGH11
THE STATE TREASURER AND AT THE DISCRETION OF THE STATE12
TREASURER, MAY ENTER INTO AN INTEREST RATE EXCHANGE AGREEMENT13
PURSUANT TO ARTICLE 59.3 OF TITLE 11. THE FINANCED PURCHASE OF AN14
ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT EXECUTED AS15
AUTHORIZED BY SUBSECTION (1)(a) OF THIS SECTION IS A PROPOSED16
PUBLIC SECURITY FOR THE PURPOSES OF ARTICLE 59.3 OF TITLE 11. ANY17
PAYMENTS MADE BY THE STATE UNDER AN AGREEMENT ENTERED18
PURSUANT TO THIS SUBSECTION (2) MUST BE MADE SOLELY FROM MONEY19
MADE AVAILABLE TO THE STATE TREASURER FROM THE EXECUTION OF A20
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION21
AGREEMENT OR FROM MONEY DESCRIBED IN SUBSECTION (1)(d) OF THIS22
SECTION.23
(b) A
NY AGREEMENT ENTERED INTO PURSUANT TO THIS24
SUBSECTION (2) MUST ALSO PROVIDE THAT THE OBLIGATIONS OF THE25
STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY26
PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR27
SB23-161
-6- LIMITING THE CREATION OF STATE DEBT AND ARE NOT A MULTIPLE1
FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION2
OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF3
THE STATE CONSTITUTION.4
(c) A
NY MONEY RECEIVED BY THE STATE UNDER AN AGREEMENT5
ENTERED INTO PURSUANT TO THIS SUBSECTION (2) MUST BE USED TO MAKE6
PAYMENTS ON THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF7
PARTICIPATION AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (1)8
OF THIS SECTION OR TO PAY FOR COSTS RELATED TO THE PROPERTY FOR9
WHICH THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF10
PARTICIPATION AGREEMENT WAS EXECUTED .11
(3) P
ROCEEDS OF THE FINANCED PURCHASE OF AN ASSET OR12
CERTIFICATE OF PARTICIPATION AGREEMENT EXECUTED AS AUTHORIZED13
BY SUBSECTION (1)(a) OF THIS SECTION MUST BE CREDITED TO THE FUND.14
SECTION 2. In Colorado Revised Statutes, 24-33.5-1228,15
amend (3)(a) and (3)(c)(I) as follows:16
24-33.5-1228. Colorado firefighting air corps - creation -17
powers - aircraft acquisitions required - center of excellence -18
unmanned aircraft systems study and pilot program - Colorado19
firefighting air corps fund - creation - report - rules. (3) (a) The20
division shall administer the Colorado firefighting air corps fund, which21
fund is hereby created in the state treasury. The division may seek and22
accept gifts, grants, reimbursements, investments, bond revenues, sales23
proceeds, commissions for services, sponsorships, advertising fees,24
licensing fees, profits, or donations from private or public sources for the25
purposes of this section. The fund consists of money transferred in26
accordance with subsection (3)(c) of this section; all money that may be27
SB23-161
-7- appropriated to the fund by the general assembly; PROCEEDS OF THE1
FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION2
AGREEMENT EXECUTED PURSUANT TO SECTION 24-33.5-1228.5; and all3
private and public funds received through gifts, grants, reimbursements,4
investments, bond revenues, sales proceeds, commissions for services,5
sponsorships, advertising fees, licensing fees, profits, or donations that6
are transmitted to the state treasurer and credited to the fund. All interest7
earned from the investment of money in the fund is credited to the fund.8
The money in the fund is continuously appropriated for the purposes9
indicated in subsection (3)(c) of this section. Any money not expended at10
the end of the fiscal year remains in the fund.11
(c) (I) Except as provided in subsection (3)(c)(III) of this section,12
the division shall use the money in the Colorado firefighting air corps13
fund for the purposes of subsection (2.5) of this section and for paying the14
direct and indirect costs of maintaining the Colorado firefighting air15
corps, including expenses,
WHICH INCLUDES FINANCING COSTS, associated16
with acquisition, retrofitting, labor, equipment, supply, transportation, air,17
mobilization, repair, maintenance, and demobilization.18
SECTION 3. Safety clause. The general assembly hereby finds,19
determines, and declares that this act is necessary for the immediate20
preservation of the public peace, health, or safety.21
SB23-161
-8-