HB 22-1363 Summary

• Prohibits board members of a special district from acquiring interests in district debt that was approved while they served on the board, either individually or through organizations where they work as an employee, counsel, consultant, representative, or agent.

• Establishes interest rate caps on debt issued by metropolitan districts to directors or related entities, limiting rates to the lesser of a registered municipal advisor's market rate certification or the Municipal Market Data "AAA" index plus 400 basis points, with maximum 40-year maturity for districts created on or after January 1, 2023.

• Prohibits metropolitan districts from entering into new contracts for covenant enforcement and design review services effective September 1, 2022, and prevents renewal of existing agreements, requiring master associations to assume these services upon expiration.

• Restricts metropolitan districts with residential property from approving service plans that permit purchase of district debt by entities with which any director has a conflict of interest requiring disclosure under Colorado law.

• Establishes the act takes effect 90 days after final adjournment unless a referendum petition is filed, in which case it requires approval by voters at the November 2022 general election.