Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0358.01 Richard Sweetman x4333
SENATE BILL 24-038
Senate Committees House Committees
Agriculture & Natural Resources
A BILL FOR AN ACT
C
ONCERNING CONSERVANCY DISTRICTS , AND, IN CONNECTION101
THEREWITH, AUTHORIZING A CONSERVANCY DISTRICT TO102
PARTICIPATE IN A PLAN FOR AUGMENTATION ; CONTRACT WITH103
WATER USERS OUTSIDE THE CO NSERVANCY DISTRICT FOR THE104
PROVISION OF SERVICES ; EXERCISE CERTAIN POWERS105
REGARDING THE CONTROL , DELIVERY, USE, AND DISTRIBUTION106
OF WATER; ESTABLISH A WATER ACTIVITY ENTERPRISE ; AND107
SELL, LEASE, OR OTHERWISE DISPOSE OF THE USE OF WATER OR108
CAPACITY IN WORKS BY CONTRACT .109
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
SENATE SPONSORSHIP
Bridges and Simpson, Hinrichsen, Pelton B., Pelton R., Roberts
HOUSE SPONSORSHIP
Martinez and McCormick, Catlin, McLachlan
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. applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/.)
Water Resources and Agriculture Review Committee. Under
current law, when certain conditions exist, a district court may establish
conservancy districts for the conservation, development, utilization, and
disposal of water for agricultural, municipal, and industrial uses. Section
1 of the bill allows conservancy districts to conserve, develop, utilize, or
dispose of water for commercial uses as well.
Section 2 authorizes the board of directors of a conservancy
district to:
! Submit and participate in a plan for augmentation for the
benefit of water rights and wells within and outside of the
boundaries of the conservancy district;
! Contract with water users within and outside of the
conservancy district for the provision of services;
! Exercise certain powers concerning the management,
control, delivery, use, and distribution of water in
conjunction with a plan for augmentation;
! In conjunction with sections 4 and 5, establish a water
activity enterprise, which is a government-run business, for
the purpose of pursuing or continuing water activities; and
! Sell, lease, or otherwise dispose of the use of water or
capacity in works by term contracts or by contracts for the
perpetual use of the water or works to certain entities.
Section 3 authorizes a conservancy district to:
! Enter into long-term contracts with public and private
entities for the accomplishment of functions of the
conservancy district; and
! Avail itself of aid, assistance, and cooperation from the
federal government, the state government, and local
governments.
Sections 4 and 5 allow a conservancy district to establish a water
activity enterprise, which is a business that receives less than 10% of its
annual revenues in grants from all Colorado state and local governments
combined, is authorized to issue its own revenue bonds, and is excluded
from the provisions of the "Taxpayer's Bill of Rights" in the state
constitution.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 37-2-101, amend (1)2
introductory portion and (1)(f) as follows:3
SB24-038-2- 37-2-101. Jurisdiction of district court to establish1
conservancy district - purposes of districts. (1) The district court2
sitting in and for any county in this state has jurisdiction, When the3
conditions stated in section 37-2-102 are found to exist, to A DISTRICT4
COURT MAY establish A conservancy districts DISTRICT, which may be5
entirely within or partly within and partly without the judicial district in6
which said THE court is located, for any of the following purposes:7
(f) The conservation, development, utilization, and disposal of8
water CONSERVING, DEVELOPING, UTILIZING, OR DISPOSING OF WATER for9
agricultural, municipal, and COMMERCIAL, OR industrial uses; thereof,10
when desirable as a part of a project or undertaking the principal purpose11
of which is one or more of the purposes set out in this section; OR12
SECTION 2. In Colorado Revised Statutes, 37-3-103, amend (1)13
introductory portion and (1)(k); and add (1)(m), (1)(n), (1)(o), (1)(p), and14
(1)(q) as follows:15
37-3-103. General powers - definition. (1) To protect life and16
property within the
CONSERVANCY district and to protect or relieve land17
THAT IS subject to overflowing or washing or that is menaced or18
threatened by the normal flow, flood, surplus, or overflow of waters of19
any natural watercourse, stream, canyon, or wash, whether perennial,20
intermittent, or flood; and
to effect the protection of PROTECT the land and21
other property in the
CONSERVANCY district; and to accomplish all other22
purposes of the
CONSERVANCY district, the board of directors is23
authorized:24
(k) To participate in the development of parks and recreational25
facilities within the boundaries of the
CONSERVANCY district, including26
the development of trails, greenways, and riverfronts, and to consider27
SB24-038
-3- such participation a current expense of the CONSERVANCY district; and1
(m) T
O SUBMIT AND PARTICIPATE IN A PLAN FOR AUGMENTATION ,2
AS DEFINED IN SECTION 37-92-103 (9), FOR THE BENEFIT OF WATER3
RIGHTS, AS DEFINED IN SECTION 37-92-103 (12), AND WELLS, AS DEFINED4
IN SECTION 37-92-103 (14), INCLUDING AGRICULTURAL , MUNICIPAL,5
COMMERCIAL, AND INDUSTRIAL WELLS WITHIN AND OUTSIDE THE6
BOUNDARIES OF THE CONSERVANCY DISTRICT ;7
(n) (I) T
O CONTRACT WITH WATER USERS WITHIN AND OUTSIDE OF8
THE CONSERVANCY DISTRICT FOR THE PROVISION OF SERVICES TO SUCH9
WATER USERS.10
(II) A
S USED IN THIS SUBSECTION (1)(n), "SERVICES" MEANS:11
(A) T
RANSFERRING, CONSERVING, RECHARGING, AUGMENTING,12
EXCHANGING, CHANGING, USING, OR REUSING WATER SUPPLIES;13
(B) T
HE RETIREMENT OF WELLS; AND14
(C) S
UCH OTHER SERVICES AS THE BOARD MAY CONTRACT TO15
PROVIDE.16
(o) T
O EXERCISE, IN CONJUNCTION WITH A PLAN FOR17
AUGMENTATION , THE FOLLOWING POWERS CONCERNING THE18
MANAGEMENT, CONTROL, DELIVERY, USE, AND DISTRIBUTION OF WATER19
BY THE CONSERVANCY DISTRICT :20
(I) T
O MAKE AND ENFORCE ALL REASONABLE RULES FOR THE21
MANAGEMENT, CONTROL, DELIVERY, USE, AND DISTRIBUTION OF WATER;22
(II) T
O WITHHOLD, PURSUANT TO ANY CONTRACTS, THE DELIVERY23
OF WATER IF THERE ARE ANY DEFAULTS OR DELINQUENCIES OF PAYMENT ;24
(III) T
O DECLARE FORFEITURES OF RIGHTS TO THE USE OF WATER25
UPON DEFAULT OR UPON FAILURE TO COMPLY WITH ANY COURT ORDER ,26
CONTRACT, OR AGREEMENT FOR THE PURCHASE , LEASE, OR USE OF WATER27
SB24-038
-4- AND TO RESELL, LEASE, OR OTHERWISE DISPOSE OF WATER UPON WHICH1
FORFEITURE HAS BEEN DECLARED ;2
(IV) T
O ALLOCATE AND REALLOCATE THE USE OF WATER TO L ANDS3
WITHIN AND OUTSIDE OF THE CONSERVANCY DISTRICT ;4
(V) T
O GRANT THE RIGHT, UPON TERMS, TO TRANSFER WATER5
FROM LANDS TO WHICH WATER HAS BEEN ALLOCATED TO OTHER LANDS6
WITHIN OR OUTSIDE OF THE CONSERVANCY DISTRICT ;7
(VI) T
O RETIRE WELLS;8
(VII) T
O ACQUIRE, CONSTRUCT, OPERATE, CONTROL, AND USE ANY9
WORKS, FACILITIES, AND MEANS NECESSARY OR REASONABLE TO THE10
EXERCISE OF ITS POWER , BOTH WITHIN AND OUTSIDE OF THE11
CONSERVANCY DISTRICT, FOR THE PURPOSE OF PROVIDING FOR THE USE OF12
WATER WITHIN THE DISTRICT; AND13
(VIII) T
O PERFORM ANY AND ALL TASKS NECESSARY OR14
REASONABLE FOR THE FULL EXERCISE OF THE POWERS GRANTED IN THIS15
SUBSECTION (1)(o);16
(p) T
O ESTABLISH A WATER ACTIVITY ENTERPRISE FOR THE17
PURPOSE OF PURSUING OR CONTINUING WATER ACTIVITIES , AS DESCRIBED18
IN ARTICLE 45.1 OF THIS TITLE 37; AND19
(q) T
O SELL, LEASE, OR OTHERWISE DISPOSE OF THE USE OF WATER20
OR CAPACITY IN WORKS BY TERM CONTRACTS OR BY CONTRACTS FOR THE21
PERPETUAL USE OF THE WATER OR WORKS TO PUBLIC CORPORATIONS ;22
DISTRICTS, AS DEFINED IN SECTION 37-45.1-102 (1); CONSERVANCY23
DISTRICTS; UTILITIES; MUTUAL DITCH COMPANIES ; WATER USERS'24
ASSOCIATIONS; PRIVATE CORPORATIONS ; AND OTHER PERSONS FOR25
IRRIGATION, DOMESTIC, MUNICIPAL, INDUSTRIAL, COMMERCIAL, OR OTHER26
AUTHORIZED USES, IN WRITING, AUTHORIZED AND ENTERED INTO BY THE27
SB24-038
-5- BOARD. THE BOARD SHALL REQUIRE THAT SECURITY BE GIVEN TO SECURE1
THE PAYMENTS TO BE MADE UNDER THE CONTRACTS , WHICH SECURITY2
MAY INCLUDE THE SECURITY DESCRIBED IN SECTION 37-45-132 OR SUCH3
OTHER SECURITY AS THE BOARD DETERMINES TO BE APPROPRIATE . THE4
CONTRACTS MAY INCLUDE THE CONTRACTUAL PROVISIONS SPECIFIED IN5
SECTION 31-35-402 (1)(h) AS DETERMINED BY THE BOARD .6
SECTION 3. In Colorado Revised Statutes, add 37-3-103.5 as7
follows:8
37-3-103.5. Cooperative powers - aid, assistance, and9
cooperation from governments. (1) A
CONSERVANCY DISTRICT MAY ,10
WITHOUT CONDUCTING AN ELECTION , ENTER INTO LONG-TERM CONTRACTS11
WITH THE FEDERAL GOVERNMENT , THE STATE OR ANY POLITICAL12
SUBDIVISION OF THE STATE, A PRIVATE COMPANY, ANY PERSON, OR ANY13
COMBINATION THEREOF FOR A TERM NOT EXCEEDING SEVENTY -FIVE YEARS14
FOR THE PERFORMANCE OF FUNCTIONS OF THE CONSERVANCY DISTRICT ,15
WHICH FUNCTIONS, IN THE DISCRETION OF THE CONSERVANCY DISTRICT ,16
CAN DESIRABLY AND CONVENIENTLY BE CARRIED OUT UNDER CONTRACT .17
H
OWEVER, ANY SUCH CONTRACT MUST INCLUDE TERMS AND CONDITIONS18
THAT ENABLE THE CONSERVANCY DISTRICT TO RETAIN REASONABLE19
SUPERVISION AND CONTROL OF SUCH FUNCTIONS .20
(2) T
HE CONSERVANCY DISTRICT MAY ACT AS NECESSARY TO21
AVAIL ITSELF OF AID, ASSISTANCE, AND COOPERATION FROM THE STATE22
GOVERNMENT OR FEDERAL GOVERNMENT OR FROM ANY LOCAL23
GOVERNMENT.24
SECTION 4. In Colorado Revised Statutes, 37-45.1-101, amend25
(1) introductory portion as follows:26
37-45.1-101. Legislative declaration. (1) The general assembly27
SB24-038
-6- hereby finds, determines, and declares that in order to provide for the1
continued beneficial use of all waters originating in Colorado, the2
establishment of water activity enterprises within or by
CONSERVANCY3
DISTRICTS, water conservancy districts, water conservation districts, and4
other entities of state and local government is critical to the health and5
welfare of the people of the state of Colorado. The general assembly6
further finds that water activities are necessary to:7
SECTION 5. In Colorado Revised Statutes, 37-45.1-102, amend8
the introductory portion and (1) as follows:9
37-45.1-102. Definitions. As used in this article
ARTICLE 45.1,10
unless the context otherwise requires:11
(1) "District" means any state or local governmental entity that has12
authority to conduct water activities, including
A CONSERVANCY DISTRICT13
CREATED PURSUANT TO ARTICLE 2 OF THIS TITLE 37, a water conservancy14
district created pursuant to article 45 of this title
TITLE 37, a water15
conservation district created by article 46, 47, 48, or 50 of this title TITLE16
37, a water and sanitation district or other entity created pursuant to title17
32, C.R.S., an entity created pursuant to title 29 C.R.S., or this title TITLE18
37, a county, or a municipality.19
SECTION 6. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly; except22
that, if a referendum petition is filed pursuant to section 1 (3) of article V23
of the state constitution against this act or an item, section, or part of this24
act within such period, then the act, item, section, or part will not take25
effect unless approved by the people at the general election to be held in26
SB24-038
-7- November 2024 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
SB24-038
-8-