CO HB1218

Creates the Federal Mineral Lease District Act allowing Colorado counties to establish federal mineral lease districts to receive and distribute mineral lease payments from the Department of Local Affairs.

County boards of commissioners may create districts by majority vote resolution, with initial deadline of June 30, 2011, and annually thereafter on June 1, effective for two-year periods with reauthorization option.

Districts must have a board of directors with minimum three members (odd number total), including at least one county commissioner but no county commissioner majority, with members serving two-year terms.

District boards must distribute all received funding annually to areas impacted by mineral development, with up to 10 percent available for administrative costs, and must submit service plans and annual audits to county commissioners and state treasurer.

Amends mineral leasing fund distribution statutes to allow direct allocation of 50 percent of local government mineral impact fund moneys to federal mineral lease districts as well as counties and municipalities.