State Funding for Colorado School of Mines Capital Construction Costs

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction SENATE BILL 26-183 LLS NO. 26-1002.03 Stephanie Schrab x4330 SENATE SPONSORSHIP Mullica and Kirkmeyer, Carson, Coleman, Kipp, Marchman, Simpson HOUSE SPONSORSHIP Winter T. and Lindsay, Senate Committees House Committees Finance Appropriations CONCERNING STATE FUNDING FOR CAPITAL CONSTRUCTION COSTS FOR A PROJECT BEING UNDERTAKEN BY THE COLORADO SCHOOL OF MINES, AND, IN CONNECTION THEREWITH, AUTHORIZING THE STATE TO ISSUE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS TO FINANCE A PORTION OF CAPITAL COSTS ASSOCIATED WITH THE RENEWAL OF CRITICAL BUILDING SYSTEMS FOR THE COLORADO SCHOOL OF APPROPRIATION.

MINES ' G UGGENHEIM HALL AND MAKING AN 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 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.

SENATE Amended 2nd Reading May 8, 2026 SENATE Amended 3rd Reading May 11, 2026 A BILL FOR AN ACT applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The bill requires the state treasurer, on behalf of the state, to execute, no later than December 31, 2026, financed purchase of an asset or certificate of participation agreements (financing agreements) to finance a portion of the capital costs related to the capital renewal of a facility at the Colorado school of mines. The financing agreements are to be issued in an aggregate principal amount not to exceed $13 million plus reasonable and necessary administrative, monitoring, and closing costs and interest, including capitalized interest. The anticipated annual state-funded payments for the principal and interest components due under the financing agreements must not exceed the difference between $17.5 million and the amount of the annual state-funded payments for the agreements entered into pursuant to House Bill 24-1231, with principal amortization not occurring before July 1, 2027. The proceeds from the financing agreements will be used for the renewal of critical building systems of Guggenheim hall at the Colorado school of mines.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-36-125 as follows:

24-36-125. Financed purchase of an asset or certificate of participation agreements - fund capital costs related to a project at Colorado school of mines - definitions.

(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "AGREEMENT" MEANS ONE OR MORE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS EXECUTED AS REQUIRED BY SUBSECTION (2)(a) OF THIS SECTION.

(b) "BOARD" MEANS THE BOARD OF TRUSTEES OF THE COLORADO SCHOOL OF MINES, CREATED IN SECTION 23-41-102 (1)(a).

(2) (a) NOTWITHSTANDING THE PROVISIONS OF SECTIONS 24-82-102 (1)(b) AND 24-82-801, AND PURSUANT TO SECTION 24-36-121, NO LATER THAN DECEMBER 31, 2026, THE STATE, ACTING BY AND THROUGH THE STATE TREASURER, SHALL EXECUTE AN AGREEMENT FOR THE PURPOSE DESCRIBED IN SUBSECTION (4) OF THIS SECTION, THE TOTAL AMOUNT OF THE PRINCIPAL OF WHICH AGREEMENT SHALL NOT EXCEED THIRTEEN MILLION DOLLARS, PLUS REASONABLE AND NECESSARY ADMINISTRATIVE, MONITORING, AND CLOSING COSTS AND INTEREST, INCLUDING CAPITALIZED INTEREST.

(b) THE ANTICIPATED ANNUAL STATE-FUNDED PAYMENTS FOR THE PRINCIPAL AND INTEREST COMPONENTS OF THE AMOUNT PAYABLE UNDER AN AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION SHALL NOT EXCEED THE DIFFERENCE BETWEEN SEVENTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS AND THE AMOUNT OF THE ANNUAL STATE-FUNDED PAYMENTS FOR THE AGREEMENT ENTERED INTO PURSUANT TO SECTION 24-36-124 (2)(b), WITH PRINCIPAL AMORTIZATION NOT OCCURRING BEFORE JULY 1, 2027.

(c) THE STATE, ACTING BY AND THROUGH THE STATE TREASURER, AT THE STATE TREASURER'S SOLE DISCRETION, MAY ENTER INTO AN AGREEMENT AUTHORIZED BY SUBSECTION (2)(a) OF THIS SECTION WITH ANY FOR-PROFIT OR NONPROFIT CORPORATION, TRUST, OR COMMERCIAL BANK ACTING AS A TRUSTEE AS THE LESSOR.

(d) THE AGREEMENT MUST PROVIDE THAT ALL OBLIGATIONS OF THE STATE UNDER THE AGREEMENT ARE SUBJECT TO THE ACTION OF THE GENERAL ASSEMBLY IN ANNUALLY MAKING MONEY AVAILABLE FOR ALL PAYMENTS THEREUNDER. PAYMENTS UNDER THE AGREEMENT MUST BE MADE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY, AS APPLICABLE, FROM THE GENERAL FUND OR FROM ANY OTHER LEGALLY AVAILABLE SOURCE OF MONEY.

(e) THE AGREEMENT MUST ALSO PROVIDE THAT THE OBLIGATIONS OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE CREATION OF STATE DEBT AND THAT THE OBLIGATIONS ARE NOT A MULTIPLE FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE CONSTITUTION. IF THE STATE DOES NOT RENEW THE AGREEMENT, THE SOLE SECURITY AVAILABLE TO THE LESSOR IS THE PROPERTY THAT IS THE SUBJECT OF THE NONRENEWED AGREEMENT.

(f) (I) THE AGREEMENT MAY CONTAIN TERMS, PROVISIONS, AND CONDITIONS AS THE STATE TREASURER, ACTING ON BEHALF OF THE STATE, DEEMS APPROPRIATE, INCLUDING ALL OPTIONAL TERMS; EXCEPT THAT THE AGREEMENT MUST SPECIFICALLY AUTHORIZE THE STATE OR THE BOARD TO RECEIVE FEE TITLE TO ALL REAL AND PERSONAL PROPERTY THAT IS THE SUBJECT OF THE AGREEMENT ON OR BEFORE THE EXPIRATION OF THE TERMS OF THE AGREEMENT.

(II) THE STATE TREASURER, ACTING ON BEHALF OF THE STATE, HAS THE AUTHORITY TO DETERMINE WHAT COLLATERAL TO USE FOR THE AGREEMENT AS THE STATE TREASURER DEEMS APPROPRIATE.

(g) THE AGREEMENT MAY PROVIDE FOR THE ISSUANCE, DISTRIBUTION, AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO RECEIVE RENTALS AND OTHER PAYMENTS MADE AND TO BE MADE UNDER THE AGREEMENT. THE INSTRUMENTS MAY BE ISSUED, DISTRIBUTED, OR SOLD ONLY BY THE LESSOR OR ANY PERSON DESIGNATED BY THE LESSOR AND NOT BY THE STATE.

RELATIONSHIP BETWEEN THE PURCHASERS OF THE INSTRUMENTS AND THE STATE OR CREATE ANY OBLIGATION ON THE PART OF THE STATE TO THE THE INSTRUMENTS DO NOT CREATE A PURCHASERS. THE INSTRUMENTS ARE NOT A NOTE, BOND, OR OTHER EVIDENCE OF STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE CREATION OF STATE DEBT AND THE INSTRUMENTS ARE NOT A MULTIPLE FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE CONSTITUTION.

(h) INTEREST PAID UNDER AN AGREEMENT AUTHORIZED PURSUANT TO REPRESENTED BY THE INSTRUMENTS, IS EXEMPT FROM COLORADO INCOME TAX.

SUBSECTION (2)(a) OF THIS SECTION, INCLUDING INTEREST

(i) THE STATE, ACTING BY AND THROUGH THE STATE TREASURER AND THE BOARD, IS AUTHORIZED TO ENTER INTO ANCILLARY AGREEMENTS AND CONNECTION WITH AN AGREEMENT, INCLUDING DEEDS, GROUND LEASES, SUBLEASES, EASEMENTS, OR OTHER INSTRUMENTS RELATED TO THE REAL PROPERTY ON WHICH THE FACILITIES ARE LOCATED.

INSTRUMENTS THAT ARE NECESSARY OR APPROPRIATE IN

(j) THE PROVISIONS OF SECTION 24-30-202 (5)(b) DO NOT APPLY TO AN AGREEMENT OR TO ANY ANCILLARY AGREEMENT OR INSTRUMENT ENTERED INTO PURSUANT TO THIS SUBSECTION CONTROLLER OR THEIR DESIGNEE SHALL WAIVE ANY PROVISION OF THE FISCAL RULES PROMULGATED PURSUANT TO SECTIONS 24-30-202 (1) AND

(13) THAT THE STATE CONTROLLER FINDS INCOMPATIBLE OR INAPPLICABLE WITH RESPECT TO AN AGREEMENT OR AN ANCILLARY AGREEMENT OR INSTRUMENT.

(2). THE STATE

(3) (a) BEFORE EXECUTING THE AGREEMENT, TO PROTECT AGAINST FUTURE INTEREST RATE INCREASES, THE STATE, ACTING BY AND THROUGH THE STATE TREASURER AND AT THE DISCRETION OF THE STATE TREASURER, MAY ENTER INTO AN INTEREST RATE EXCHANGE AGREEMENT PURSUANT TO ARTICLE 59.3 OF TITLE 11. THE INTEREST RATE EXCHANGE AGREEMENT IS A PROPOSED PUBLIC SECURITY FOR THE PURPOSES OF ARTICLE 59.3 OF TITLE 11. ANY PAYMENTS MADE BY THE STATE UNDER AN INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS SUBSECTION (3) MUST BE MADE SOLELY FROM MONEY AVAILABLE TO THE STATE TREASURER FROM THE EXECUTION OF THE AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION OR FROM MONEY DESCRIBED IN SUBSECTION (2)(d) OF THIS SECTION.

(b) AN INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS SUBSECTION (3) MUST ALSO PROVIDE THAT THE OBLIGATIONS OF THE STATE DO NOT CREATE STATE DEBT WITHIN THE MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR STATE LAW CONCERNING OR LIMITING THE CREATION OF STATE DEBT OR ANY MULTIPLE FISCAL-YEAR DIRECT OR INDIRECT DEBT OR OTHER FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING OF SECTION 20 (4) OF ARTICLE X OF THE STATE CONSTITUTION.

(c) ANY MONEY RECEIVED BY THE STATE UNDER AN INTEREST RATE EXCHANGE AGREEMENT ENTERED INTO PURSUANT TO THIS SUBSECTION (3) MUST BE USED TO MAKE PAYMENTS ON AN AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION OR TO PAY THE COSTS RELATED TO THE PURPOSES SET FORTH IN SUBSECTION (4) OF THIS SECTION FOR WHICH AN AGREEMENT WAS EXECUTED.

(4) THE PROCEEDS OF AN AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION MUST BE USED TO FUND CAPITAL CONSTRUCTION COSTS RELATED TO THE RENEWAL, PHYSICAL IMPROVEMENT, AND FUNCTIONAL IMPROVEMENT OF CRITICAL BUILDING SYSTEMS IN THE COLORADO SCHOOL OF MINES' GUGGENHEIM HALL.

SECTION 2. Capital construction appropriation. For the 2026-27 state fiscal year, the general assembly anticipates that the department of higher education will receive $13,000,000 in cash funds from the proceeds of the financed purchase of an asset or certificate of participation agreements executed pursuant to section 24-36-125, C.R.S.

This figure is subject to the "(I)" notation as defined in the annual general appropriation act for the same fiscal year. To implement this act, the department is anticipated to use this amount for Guggenheim hall HVAC and plumbing improvements at the Colorado school of mines.

SECTION 3.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.