HB 15-1262 Summary

• Allows counties, municipalities, special districts, and other political subdivisions to establish separate legal entities through contracts to provide public improvements, with the entity classified as a political subdivision and public corporation separate from contracting parties.

• Requires contracts to specify the entity's name, purpose, functions, governing board structure (board of directors with all legislative power), director appointment and compensation, officers, and voting requirements (majority of directors constitutes quorum, majority of quorum needed for action).

• Permits entities to exercise special district powers from Colorado law if each contracting party can lawfully exercise those powers, except entities may not levy taxes or exercise eminent domain.

• Grants entities authority to issue bonds, notes, or other financial obligations payable from entity revenues or contract receipts with maturity up to 40 years, with interest exempt from taxation; bonds are not indebtedness of the entity or contracting parties under state constitutional limitations.

• Authorizes entities to acquire, lease, and sell property, and requires that upon dissolution, all property transfers to one or more of the contracting political subdivisions.