July 20, 2019

SB 16-171: Enacting Modifications to New Energy Improvement District Program

On March 22, 2016, Sen. Martinez and Rep. Tyler introduced SB 16-171Concerning Modification and Clarification of the Statutes Pertaining to the New Energy Improvement District. The bill was assigned to the Senate Local Government Committee, where it was referred, unamended, to the Senate Committee of the Whole for Second Reading. The bill passed Second and Third Readings in the Senate with no amendments and was referred to the House Committee on Transportation & Energy. The bill passed through the House with no amendments and is awaiting signature.

The New Energy Improvement District (“NEID”) is a statewide district operating a program to facilitate private financing of energy and water improvements to eligible real property. This bill modifies and clarifies the statutes that pertain to the NEID as follows:

Section 2 of the bill, C.R.S. § 32-20-105, requires the county treasurer of a county that has authorized the operation of the NEID Program (“Program”) to retain a one percent collection fee for each NEID special assessment that is collected. The bill also authorizes such a county to revoke its authorization for the operation of the program so long as the county meets all of its program financing obligations existing on the effective date of the deauthorization until all fees have been paid in full to the NEID.

Section 3 of the bill, C.R.S. § 32-20-106, does three things. First, it repeals the authority of the NEID to reduce the amount of any special assessment with the consent of the owner of the property where the special assessment is levied. Second, it clarifies that delinquent special assessment installments incur interest charges at the same rate as delinquent property taxes. Third, it requires the county treasurer to distribute NEID special assessments to the NEID in the same manner, less the collection fee, as property taxes are distributed.

Section 4, C.R.S. § 32-20-107, repeals an existing prohibition against county assessors that prohibited them from taking into account, when valuing real property, an increase in market value resulting from an energy or water improvement financed through the NEID program. Section 4 also repeals the existing authority for the NEID to initiate a civil action for foreclosure.

Mark Proust is a 2016 J.D. Candidate at the University of Denver Sturm College of Law.

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