House Bill 25-1219 Preamended

A Bill for an Act

• Page 1, Line 101Concerning requirements for metropolitan districts that

• Page 1, Line 102aid the public's understanding of metropolitan

• Page 1, Line 103districts.

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.)

Under current law, certain metropolitan districts are required to hold annual public meetings at which residents can ask questions about the metropolitan district and financial information about the metropolitan district is shared. The bill requires that, in addition to notice requirements under the Colorado open meetings law, notice of this annual meeting be provided by postcard or letter to residents or by electronic mail to any electronic mailing addresses that the metropolitan district has on file and be posted on the homepage of the metropolitan district's website. The bill also requires that, if the annual meeting is held at a physical location, there be available hard copies of self-nomination and acceptance forms, which are forms required to be filed for an eligible elector to be a candidate for a board position at a special district election.

The bill also requires that metropolitan districts that are required to have a publicly accessible website must establish a system or a process for residents to contact someone associated with the metropolitan district at times when district personnel is otherwise unavailable or unreachable to address any questions or concerns regarding services of the metropolitan district.

For a metropolitan district that is required to have a publicly accessible website, the bill requires the following additional information to be provided on the website:

• The date, time, and location of the annual meeting;
• An explanation of what metropolitan districts are generally and how the metropolitan district operates;
• The services that the metropolitan district provides and, if a service to the metropolitan district's residents is not provided by the metropolitan district, the name of the entity that provides the service;
• The name of the county or municipality with which the metropolitan district must file its annual report; and
• The name and contact information of someone who residents can contact with questions or concerns about the services of the district when district personnel is otherwise unavailable or unreachable.
• The names, terms, and contact information of individuals serving on the board of directors and of any manager of the metropolitan district;
• The date, time, and location of scheduled regular meetings, including the annual meeting;
• The call for nominations for candidates to run for election to the board of directors;
• Information about the services the metropolitan district provides and the services that are provided by other entities; and
• The name and contact information of who residents can contact with questions or concerns about the services of the district when district personnel is otherwise unavailable or unreachable.

The bill also specifies that the following information must be provided on the home page of the metropolitan district's website:

Current law requires that each owner of real property that sells real property that includes a newly constructed residence and that is in the boundaries of a metropolitan district must provide certain disclosures to purchasers of the property including access to the annually required notice to electors and the metropolitan district's service plan; information on the authority the metropolitan district has to issue debt, levy property taxes, and impose fees, rates, tolls, penalties, or other charges; an estimate of property taxes levied by the metropolitan district for collection during the year the sale occurs; and a copy of the most current certificate of taxes due or tax statement to provide an estimate of the sum of additional mill levies levied by other taxing entities that overlap the property. The bill requires this disclosure to be made by all owners of any residential real property, regardless of whether it is new construction, that is located within the boundaries of a metropolitan district organized after January 1, 2000.

The bill also requires an owner of residential real property that is located within the boundaries of a metropolitan district organized after January 1, 2000, that sells the property to provide a hard copy of the explanation of what metropolitan districts are generally and how the metropolitan district operates that is required to be provided on the metropolitan district's website.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  In Colorado Revised Statutes, 32-1-104.5, amend

• Page 3, Line 3(3)(a)(V) and (3)(a)(VIII); and add (3)(a)(X), (3)(a)(XI), (3)(a)(XII), (3)(a)(XIII), (3)(a.5), and (4) as follows:

• Page 3, Line 432-1-104.5.  Audit and budget requirements - election results

• Page 3, Line 5- description on state websites - official websites for metropolitan

• Page 3, Line 6districts - requirement for designated contact person. (3) (a)  Except

• Page 3, Line 7as provided in subsection (3)(d) of this section, within one year of the

• Page 3, Line 8date an order and decree has been issued by a district court for a newly

• Page 3, Line 9organized metropolitan district, or by January 1, 2023, for any

• Page 3, Line 10metropolitan district that has received an order and decree from the

• Page 3, Line 11district court in connection with its organization after January 1, 2000, but

• Page 3, Line 12before January 1, 2022, the metropolitan district shall establish, maintain,

• Page 4, Line 1and, unless otherwise specified, annually update an official website in a

• Page 4, Line 2form that is readily accessible to the public that contains the following information:

• Page 4, Line 3(V)  By January 30 of each year, the date, time, and location of

• Page 4, Line 4scheduled regular meetings of the district's board for the current fiscal

• Page 4, Line 5year and the date, time, and location of the annual meeting, if applicable, required by section 32-1-903 (6);

• Page 4, Line 6(VIII)  A current map depicting the boundaries of the metropolitan district as of January 1 of the current fiscal year; and

• Page 4, Line 7(X)  A general explanation in plain, nontechnical

• Page 4, Line 8language, about what a metropolitan district is, the public

• Page 4, Line 9improvements and services it provides, the amount of debt it can

• Page 4, Line 10incur to provide and pay for public infrastructure, what

• Page 4, Line 11revenue may be used to repay such debt, the maximum mill levy

• Page 4, Line 12it may assess to repay such debt, and how a resident can serve on the board of the metropolitan district;

• Page 4, Line 13(XI)  The names of the governmental entities that overlap the metropolitan district's boundaries;

• Page 4, Line 14(XII)  The name of the county or the municipality with

• Page 4, Line 15which the metropolitan district must file its annual report and

• Page 4, Line 16which may request that money of the metropolitan district be

• Page 4, Line 17withheld pursuant to section 32-1-209 if the annual reporting requirements are not met; and

• Page 4, Line 18     (XIII)  Information regarding the system or process for

• Page 4, Line 19contacting someone associated with the metropolitan district

• Page 4, Line 20during regular business hours and outside of regular business

• Page 4, Line 21hours or when metropolitan district personnel are otherwise

• Page 5, Line 1unavailable or unreachable as required by subsection (4) of this section.

• Page 5, Line 2(a.5)  Information that is required by subsections (3)(a)(I),

• Page 5, Line 3(3)(a)(V), (3)(a)(VI), (3)(a)(XI), and (3)(a)(XIII) of this section must

• Page 5, Line 4be provided on the homepage of the metropolitan district's website.

• Page 5, Line 5(4)  A metropolitan district that is required to establish

• Page 5, Line 6and maintain an official website pursuant to subsection (3) of

• Page 5, Line 7this section shall establish a system or process for residents

• Page 5, Line 8to contact someone associated with the metropolitan district

• Page 5, Line 9who can address any questions or concerns of a resident

• Page 5, Line 10regarding the metropolitan district during regular business

• Page 5, Line 11hours. The metropolitan district shall also establish a system

• Page 5, Line 12or process for residents to contact someone associated with the

• Page 5, Line 13metropolitan district outside of regular business hours or

• Page 5, Line 14during any times when metropolitan district personnel are

• Page 5, Line 15otherwise unavailable or unreachable to address matters of an

• Page 5, Line 16emergent nature that cannot wait until regular business hours resume.

• Page 5, Line 17SECTION 2.  In Colorado Revised Statutes, 32-1-202, amend (2)(n); and add (2)(o) as follows:

• Page 5, Line 1832-1-202.  Filing of service plan required - report of filing - contents - fee. (2)  The service plan shall contain the following:

• Page 5, Line 19(n)  For a metropolitan district that submits a service plan to one

• Page 5, Line 20or more boards of county commissioners pursuant to this section on or

• Page 5, Line 21after January 1, 2024, the maximum debt that may be issued by the

• Page 5, Line 22district, as determined by the board of county commissioners of each county that is approving the service plan; and

• Page 6, Line 1(o)  For a metropolitan district that submits a service plan

• Page 6, Line 2to one or more boards of county commissioners pursuant to this

• Page 6, Line 3section on or after January 1, 2025, the maximum term for

• Page 6, Line 4imposition of a debt service mill levy on any property developed

• Page 6, Line 5for residential purposes after the initial year of imposition of

• Page 6, Line 6such debt service mill levy, as determined by the board of

• Page 6, Line 7county commissioners of each county that is approving the service plan.

• Page 6, Line 8SECTION 3.  In Colorado Revised Statutes, 32-1-903, amend (6)(c); and add (6)(a.5) as follows:

• Page 6, Line 932-1-903.  Meetings - definitions. (6) (a.5)  The board shall

• Page 6, Line 10ensure that at an annual meeting that is held in person and is

• Page 6, Line 11held in a year immediately preceding a year in which a regular

• Page 6, Line 12special district election will be held, self-nomination and

• Page 6, Line 13acceptance forms as provided in section 1-13.5-303 are available

• Page 6, Line 14to residents in paper form. The board shall make reasonable

• Page 6, Line 15efforts to ensure that residents are advised that, in accordance

• Page 6, Line 16with section 1-13.5-303 (1) and 1-13.5-303 (4), self-nomination and

• Page 6, Line 17acceptance forms are to be filed with the designated election

• Page 6, Line 18official or, if none has been designated, with the presiding

• Page 6, Line 19officer or the secretary of the board no earlier than January

• Page 6, Line 201 and no later than the normal close of business on the

• Page 6, Line 21sixty-seventh day before the date of a regular special district election.

• Page 6, Line 22(c)  Notice of the time and location of an annual meeting required

• Page 6, Line 23by this subsection (6) must be provided in accordance with subsection (2)

• Page 7, Line 1of this section and by mailing the notice, at the lowest cost option,

• Page 7, Line 2to each address of eligible electors within the metropolitan

• Page 7, Line 3district as listed on the list provided by the county assessor as

• Page 7, Line 4of the date that is no more than ninety days prior to the annual

• Page 7, Line 5meeting or by email to any email addresses of eligible electors

• Page 7, Line 6within the metropolitan district that eligible electors have

• Page 7, Line 7provided to the metropolitan district for purposes of receiving

• Page 7, Line 8communications from the metropolitan district, and must be

• Page 7, Line 9either posted on the home page of the metropolitan district's website

• Page 7, Line 10or accessible by a link on the home page of the metropolitan district.

• Page 7, Line 11SECTION 4.  In Colorado Revised Statutes, 38-35.7-110, amend

• Page 7, Line 12(2) introductory portion and (2)(d); repeal (1); and add (2)(c)(V) as follows:

• Page 7, Line 1338-35.7-110.  Disclosure - estimated future property taxes for

• Page 7, Line 14residences within the boundaries of a metropolitan district - rules -

• Page 7, Line 15definition. (1)  As used in this section, "newly constructed residence"

• Page 7, Line 16means a residential improvement as defined in section 39-1-102 (14.3) that:

• Page 7, Line 17(a)  Has not been previously sold to its intended occupant as a place of residence; and

• Page 7, Line 18(b)  Is located within the territorial boundaries of a metropolitan district.

• Page 7, Line 19(2)  On and after January 1, 2022, each an owner of residential

• Page 7, Line 20real property that is located within the boundaries of a

• Page 7, Line 21metropolitan district organized on or after January 1, 2000,

• Page 7, Line 22that sells real the property, that includes a newly constructed residence,

• Page 8, Line 1concurrently with or prior to the execution of a contract to sell the property, shall provide to the purchaser of the property:

• Page 8, Line 2(c)  A statement in writing disclosing that:

• Page 8, Line 3(V)  Actions by the metropolitan district pursuant to its

• Page 8, Line 4authority to issue debt, impose mill levies, and impose fees, rates,

• Page 8, Line 5tolls, penalties, or other charges may increase costs to residents living in the metropolitan district.

• Page 8, Line 6(d) (I)   An estimate of the dollar amount of property taxes

• Page 8, Line 7levied by the metropolitan district that are applicable to the property for

• Page 8, Line 8collection during the year in which the sale occurs, which estimate must

• Page 8, Line 9include any debt service mill levies that are specified in subsection

• Page 8, Line 10(2)(c)(II) of this section and any mill levies for general operating

• Page 8, Line 11expenses that are specified in subsection (2)(c)(III) of this section, shown

• Page 8, Line 12both as the total mill levy as well as the total dollar amount that could be

• Page 8, Line 13collected based upon the purchase price of the property, the residential

• Page 8, Line 14assessment rate, and mill levies that are in effect in the district at the time of the sale; and

• Page 8, Line 15(II)  A seller has complied with subsection (2)(d)(I) of this section

• Page 8, Line 16if the seller provides to the purchaser the mill levy, the residential

• Page 8, Line 17assessment ratio, and a formula by which the purchaser may calculate the estimated property taxes on the property for the current year.

• Page 8, Line 19SECTION 5.  Act subject to petition - effective date. This act

• Page 8, Line 20takes effect at 12:01 a.m. on the day following the expiration of the

• Page 8, Line 21ninety-day period after final adjournment of the general assembly; except

• Page 8, Line 22that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 8, Line 23of the state constitution against this act or an item, section, or part of this

• Page 9, Line 1act within such period, then the act, item, section, or part will not take

• Page 9, Line 2effect unless approved by the people at the general election to be held in

• Page 9, Line 3November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.