Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0703.01 Alana Rosen x2606
HOUSE BILL 24-1154
House Committees Senate Committees
Education Education
A BILL FOR AN ACT
C
ONCERNING SCHOOL DISTRICT BOARDS ' OF EDUCATION VOLUNTARY101
INCLUSION OF INSTITUTE CHARTER SCHOOLS IN DISTRICT102
BALLOT INITIATIVES TO CONT RACT WITH INSTITUTE CHARTER103
SCHOOLS FOR BONDED INDEBTEDNESS .104
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 allows a school district board of education (school district)
to submit to the eligible electors of the district the question of contracting
a bonded indebtedness for capital construction or land and facilities needs
SENATE
2nd Reading Unamended
April 11, 2024
HOUSE
3rd Reading Unamended
March 18, 2024
HOUSE
Amended 2nd Reading
March 15, 2024
HOUSE SPONSORSHIP
Weinberg and McLachlan, Evans, Lynch, McCluskie
SENATE SPONSORSHIP
Bridges and Lundeen,
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. of an institute charter school located within the school district if:
! The school district, in the school district's sole discretion,
has approved support for the institute charter school's
capital construction or land and facilities needs; and
! The school district has obtained security or assurances, if
any, regarding its interest in the land or facilities of the
institute charter school that the school district retains.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative intent. The intent of this act is to:2
(1) Clarify and modify the law to allow a school district board of3
education to voluntarily support institute charter school facilities located4
within the school district; and5
(2) Provide clear guidance to a school district board of education6
that decides to voluntarily support institute charter school facilities7
located within the school district.8
SECTION 2. In Colorado Revised Statutes, add 22-30.5-404.59
as follows:10
22-30.5-404.5. Discretionary inclusion of institute charter11
schools in district bond elections - authority - security - legislative12
intent. (1) IN ENACTING THIS SECTION, IT IS THE INTENT OF THE GENERAL13
ASSEMBLY TO RESPECT THE PRINCIPLE OF SCHOOL DISTRICT LOCAL14
CONTROL AND TO PERMIT, BUT NOT REQUIRE, SCHOOL DISTRICTS TO ACT15
IN THEIR SOLE DISCRETION AND BEST INTEREST BY USING THEIR BEST16
JUDGMENT IN MANAGING THE RELATIONSHIPS, IF ANY, THEY MAINTAIN17
WITH AN INSTITUTE CHARTER SCHOOL LOCATED WITHIN THE GEOGRAPHIC18
BOUNDARIES OF THE SCHOOL DISTRICT .19
(2) A SCHOOL DISTRICT MAY, IN ITS SOLE DISCRETION, ENGAGE IN20
DISCUSSIONS WITH AN INSTITUTE CHARTER SCHOOL LOCATED WITHIN THE21
GEOGRAPHIC BOUNDARIES OF THE SCHOOL DISTRICT CONCERNING THE22
1154-2- CAPITAL CONSTRUCTION NEEDS OF THE INSTITUTE CHARTER SCHOOL .1
(3) IN ORDER FOR A SCHOOL DISTRICT TO CONSIDER , IN ITS SOLE2
DISCRETION, WHETHER TO INCLUDE THE CAPITAL CONSTRUCTION NEEDS3
OF AN INSTITUTE CHARTER SCHOOL LOCATED WITHIN THE GEOGRAPHIC4
BOUNDARIES OF THE SCHOOL DISTRICT IN A BALLOT QUESTION PURSUANT5
TO SUBSECTION (4) OF THIS SECTION, AN INSTITUTE CHARTER SCHOOL6
MUST SUBMIT A CAPITAL CONSTRUCTION PLAN TO THE BOARD OF7
EDUCATION IN WHICH IT IS GEOGRAPHICALLY LOCATED. THE CAPITAL8
CONSTRUCTION PLAN MUST INCLUDE , BUT IS NOT LIMITED TO:9
(a) REASONS WHY THE INSTITUTE CHARTER SCHOOL CAPITAL10
CONSTRUCTION MUST BE FINANCED BY BONDED INDEBTEDNESS ;11
(b) A DESCRIPTION OF THE CAPITAL CONSTRUCTION THAT WILL BE12
FINANCED BY BONDED INDEBTEDNESS ;13
(c) A DESCRIPTION OF THE ARCHITECTURAL , FUNCTIONAL, AND14
CONSTRUCTION STANDARDS THAT MEET APPLICABLE STATE BUILDING15
CODE REQUIREMENTS AND THAT WILL BE APPLIED TO EACH FACILITY16
SUBJECT TO THE CAPITAL CONSTRUCTION PROJECT ;17
(d) AN ESTIMATE OF THE TOTAL COSTS FOR COMPLETING THE18
CAPITAL CONSTRUCTION THAT WILL BE FINANCED BY THE BONDED19
INDEBTEDNESS AND, IF ANY MONEY OTHER THAN THE BONDED20
INDEBTEDNESS PROCEEDS, INCLUDING INVESTMENTS AND INTEREST21
EARNINGS, WILL BE USED TO FINANCE THE CAPITAL CONSTRUCTION, A22
BREAKDOWN OF THE MONEY THAT WILL BE USED TO FINANCE THE CAPITAL23
CONSTRUCTION;24
(e) AN ESTIMATE OF THE AMOUNT OF TIME NEEDED TO COMPLETE25
THE CAPITAL CONSTRUCTION PROJECT ;26
(f) A STATEMENT ADDRESSING WHETHER THE CONSTRUCTION OR27
1154
-3- RENOVATION, PAYMENT OF OVERRUN COSTS , AND OTHER CAPITAL1
CONSTRUCTION PROJECT ISSUES WILL BE MANAGED BY THE INSTITUTE2
CHARTER SCHOOL OR THE SCHOOL DISTRICT AND WHETHER COSTS FOR3
PROJECT MANAGEMENT WILL BE NEGOTIATED BETWEEN THE INSTITUTE4
CHARTER SCHOOL AND THE SCHOOL DISTRICT ;5
(g) REASONS WHY REVENUE SOURCES OTHER THAN BONDED6
INDEBTEDNESS ARE INADEQUATE TO FULLY FINANCE THE INSTITUTE7
CHARTER SCHOOL CAPITAL CONSTRUCTION ; AND8
(h) THE INSTITUTE CHARTER SCHOOL'S PROPOSED METHOD FOR9
DISBURSEMENT OF ITS SHARE OF THE BONDED INDEBTEDNESS PROCEEDS.10
(4) A SCHOOL DISTRICT MAY, IN ITS SOLE DISCRETION, INCLUDE11
THE CAPITAL CONSTRUCTION NEEDS OF AN INSTITUTE CHARTER SCHOOL AS12
PART OF A BALLOT QUESTION FOR APPROVAL OF BONDED INDEBTEDNESS13
TO BE SUBMITTED BY THE SCHOOL DISTRICT TO THE VOTERS OF THE14
DISTRICT.15
(5) WHEN A SCHOOL DISTRICT, IN ITS SOLE DISCRETION, WANTS TO16
INCLUDE THE CAPITAL CONSTRUCTION NEEDS OF AN INSTITUTE CHARTER17
SCHOOL IN A BALLOT QUESTION, THE BOARD OF EDUCATION MUST, PRIOR18
TO SUBMITTING THE BALLOT QUESTION TO THE VOTERS OF THE SCHOOL19
DISTRICT, ENTER INTO A WRITTEN AGREEMENT WITH THE INSTITUTE20
CHARTER SCHOOL THAT INCLUDES :21
(a) THE PROCESS BY WHICH INVESTMENT AND INTEREST EARNINGS22
ON BOND INDEBTEDNESS PROCEEDS ARE DISTRIBUTED, AND THE PROCESS23
BY WHICH THE INVESTMENT AND INTEREST EARNINGS PROCEEDS AND THE24
BONDED INDEBTEDNESS PROCEEDS ARE RELEASED TO THE INSTITUTE25
CHARTER SCHOOL, INCLUDING FOR DESIGN, PRE-CONSTRUCTION, AND26
PROGRESS PAYMENTS;27
1154
-4- (b) THE ALLOCATION OF INVESTMENT AND INTEREST EARNINGS ON1
THE BONDED INDEBTEDNESS PROCEEDS, AND THE ALLOCATION OF THE2
COST OF SUBMISSION OF THE BOND QUESTION TO THE VOTERS , BETWEEN3
THE SCHOOL DISTRICT AND THE INSTITUTE CHARTER SCHOOL ;4
(c) ALLOCATION OF THE COSTS TO SUBMIT THE BALLOT QUESTION,5
WHICH MUST BE BORNE BY BOTH THE SCHOOL DISTRICT AND THE6
INSTITUTE CHARTER SCHOOL IN PROPORTION TO THE RESPECTIVE PORTIONS7
OF THE TOTAL BONDED INDEBTEDNESS PROCEEDS THAT ARE TO BE8
RECEIVED, UNLESS THE SCHOOL DISTRICT AND THE INSTITUTE CHARTER9
SCHOOL AGREE TO A DIFFERENT COST -SHARING AGREEMENT;10
(d) AN AGREEMENT THAT IF THE INSTITUTE CHARTER SCHOOL 'S11
CHARTER IS REVOKED OR NOT RENEWED, IF THE INSTITUTE CHARTER12
SCHOOL BECOMES INSOLVENT AND CAN NO LONGER OPERATE AS AN13
INSTITUTE CHARTER SCHOOL , OR IF THE INSTITUTE CHARTER SCHOOL14
OTHERWISE CEASES TO OPERATE, THE SCHOOL DISTRICT HAS PRIORITY IN15
RECOVERING DEBT OVER ALL OTHER DEBTORS FOR COSTS AND PAYMENTS16
OF ALL OTHER DEBTS SECURED BY THE CAPITAL CONSTRUCTION AND THAT17
THE OWNERSHIP OF ANY CAPITAL CONSTRUCTION, LAND, OR FACILITIES18
FINANCED BY THE BONDED INDEBTEDNESS PROCEEDS AUTOMATICALLY19
REVERTS TO THE SCHOOL DISTRICT. THE SCHOOL DISTRICT MAY RELEASE20
ITS INTEREST IN PROPERTY, IN ITS SOLE DISCRETION, AFTER THE BOND21
INDEBTEDNESS PROCEEDS HAVE BEEN REDEEMED .22
(e) AN AGREEMENT THAT THE INSTITUTE CHARTER SCHOOL SHALL23
NOT ENCUMBER ANY CAPITAL CONSTRUCTION FINANCED BY BOND24
INDEBTEDNESS WITH ANY ADDITIONAL DEBT WITHOUT THE EXPRESS25
APPROVAL OF THE SCHOOL DISTRICT. IF THE SCHOOL DISTRICT DENIES26
APPROVAL, THE SCHOOL DISTRICT SHALL PROVIDE WRITTEN REASONS FOR27
1154
-5- THE DENIAL.1
SECTION 3. In Colorado Revised Statutes, 22-42-102, amend2
(2)(a)(VIII); and add (2)(a)(VIII.5) as follows:3
22-42-102. Bonded indebtedness - elections. (2) (a) The board4
of education of any school district, at any regular biennial school election5
or at a special election called for the purpose, shall submit to the eligible6
electors of the district the question of contracting a bonded indebtedness7
for one or more of the following purposes:8
(VIII) For supporting
A DISTRICT CHARTER SCHOOL 'S charter9
school capital construction, as defined in section 22-30.5-403 (4), or the10
land and facilities needs of a
DISTRICT charter school, as defined in11
section 22-30.5-403 (3), without title or ownership of
DISTRICT charter12
school capital assets being held by the school district or ownership or use13
restrictions
BEING placed on the DISTRICT charter school by the school14
district;15
(VIII.5) F
OR SUPPORTING AN INSTITUTE CHARTER SCHOOL 'S16
CHARTER SCHOOL CAPITAL CONSTRUCTION , AS DEFINED IN SECTION17
22-30.5-403
(4), OR THE LAND AND FACILITIES NEEDS OF AN INSTITUTE18
CHARTER SCHOOL, AS DEFINED IN SECTION 22-30.5-403 (5.5), BY19
INCLUDING THE INSTITUTE CHARTER SCHOOL , LOCATED WITHIN THE20
SCHOOL DISTRICT, IN A BOND ELECTION
CONDUCTED PURSUANT TO21
SECTION 22-30.5-404.5. 22
SECTION 4. Act subject to petition - effective date. This act23
takes effect at 12:01 a.m. on the day following the expiration of the24
ninety-day period after final adjournment of the general assembly; except25
that, if a referendum petition is filed pursuant to section 1 (3) of article V26
of the state constitution against this act or an item, section, or part of this27
1154
-6- act within such period, then the act, item, section, or part will not take1
effect unless approved by the people at the general election to be held in2
November 2024 and, in such case, will take effect on the date of the3
official declaration of the vote thereon by the governor.4
1154
-7-