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Bill Summary · SB 183

Summary of Senate Bill 26-183 (Colorado, 2026 Session)

Purpose and Intent

  • The bill authorizes a financing arrangement by the state to fund a portion of capital costs related to renewing critical building systems for Guggenheim Hall at the Colorado School of Mines (CSM).
  • Specifically, it allows the State Treasurer to execute financed purchase of an asset or certificates of participation (COPs) to cover up to $13 million in principal, plus reasonable admin/monitoring/closing costs and interest (including capitalized interest).
  • The total annual state-funded payments for principal and interest must not exceed the difference between $17.5 million and the annual payments anticipated under a related financing conducted under HB 24-1231, with no principal amortization before July 1, 2027.
  • Proceeds are dedicated to the renewal of critical building systems in Guggenheim Hall.

Key Provisions and Changes

Financing Authority and Limits

  • Creates a new provision in the Colorado Revised Statutes: 24-36-125.
  • By December 31, 2026, the State, acting through the State Treasurer, must execute a financing agreement for Guggenheim Hall, with:
    • Total principal not to exceed $13 million, plus admin/monitoring/closing costs and interest (including capitalized interest).
    • Annual state-funded payments for principal and interest capped at: $17.5 million minus the annual state-funded payments for the HB 24-1231 agreement, with principal amortization not starting before July 1, 2027.

Terms and Structure

  • The State Treasurer may enter into the agreement with a for-profit or nonprofit corporation, a trust, or a commercial bank acting as trustee (as the lessor).
  • Obligations under the agreement are expressly subject to annual appropriation by the General Assembly from the General Fund or other legally available money.
  • The agreement must state that it does not create state debt under the Constitution or state law governing debt limits, and it is not a multi-fiscal-year direct or indirect debt.
  • If the agreement is not renewed, the security to the lessor is the property subject to the agreement.
  • The Treasurer may define terms, collateral, and related ancillary agreements or instruments (deeds, leases, easements, etc.) as needed.
  • Instruments evidencing rights to rentals/payments may be issued/distributed/sold by the lessor or its designee, but not by the state.
  • Interest paid under the agreement is exempt from Colorado income tax.
  • Ancillary agreements and instruments necessary for the arrangement are authorized (e.g., ground leases, easements).
  • Specific fiscal rules related to other sections are waived as needed for this agreement.

Risk Mitigation and Financial Appointments

  • The Treasurer may use an interest rate exchange (derivative) to hedge future interest rate increases, under Article 59.3 of Title 11, with payments sourced only from money available to the Treasurer from the agreement or related funds.
  • Any money received from such an exchange must be used to fund the existing agreement or related costs described in the act.

Use of Funds

  • Proceeds must be used to fund capital construction costs related to the renewal, physical improvement, and functional improvement of critical building systems in Guggenheim Hall at CSM.

What is Affected

  • Colorado School of Mines: Guggenheim Hall capital renewal project gains a financing option funded by state resources.
  • State of Colorado: New financing mechanism (financed purchase/COPs) subject to annual appropriation and constitutional debt considerations.
  • Lessor/Financing Participants: Potential private sector entities (for-profit or nonprofit) or financial institutions may act as lessors under the agreements.
  • General Assembly: Retains annual appropriation authority; act clarifies that obligations are contingent on future appropriations.

Procedural and Timeline Details

  • Effective/trigger: Requires execution of the financing agreement no later than December 31, 2026.
  • Principal and financing terms: Up to $13 million principal, with other costs; amortization of principal cannot begin before July 1, 2027.
  • Interaction with HB 24-1231: The maximum annual payments under this bill must be offset by the difference to ensure total annual payments align with, but do not exceed, the specified cap relative to the HB 24-1231 financing.

Safety and Legislative Considerations

  • The act includes a safety clause declaring it necessary for the immediate preservation of public peace, health, safety, or for appropriations, as applicable.
  • The provisions explicitly state income tax exemption for interest payments and clarify debt limitations to avoid construed state debt.

If you’d like, I can provide a side-by-side comparison with existing financing mechanisms or a simplified one-page briefing for nontechnical audiences.

Compiled from official sources — confirm details with the bill’s official record.

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