(1) Subject to the requirements of subsection (2) of this section, the following issues of bonds by a district are exempted from all of the provisions of sections 11-59-104 and 11-59-106:
Bonds issued on or before December 31, 1991;
Any issue of general obligation bonds where the total obligation represented by theissue together with any other general obligation of the district does not at the time of issuance exceed the greater of two million dollars or fifty percent of the valuation for assessment of the taxable property in the district as certified by the assessor;
Any issue of bonds that is rated in one of its four highest rating categories by one ormore nationally recognized organizations which regularly rate such obligations;
Any issue of bonds by a district in which infrastructure is in place which has beendetermined by the board of such district to be necessary to construct or otherwise provide additional improvements specifically ordered by a federal or state regulatory agency to bring such district into compliance with applicable federal or state laws or regulations for the protection of the public health or the environment if the proceeds raised as a result of such issue are limited solely to the direct and indirect costs of the construction or improvements mandated and are used solely for those purposes;
Any issue of bonds secured as to the payment of the principal and interest on the debtby a letter of credit, line of credit, or other credit enhancement, any of which must be irrevocable and unconditional, issued by a depository institution:
With a net worth of not less than ten million dollars in excess of the obligation created by the issuance of the letter of credit, line of credit, or other credit enhancement;
With the minimum regulatory capital as defined by the primary regulator of suchdepository institution to meet such obligation; and
Where the obligation does not exceed ten percent of the total capital and surplus ofthe depository institution, as those terms are defined by the primary regulator of such depository institution;
Any issue of bonds insured as to the payment of the principal and interest on the debtby a policy of insurance issued by an insurance company authorized to do business as an insurance company in this state and authorized for such risk by the insurance commissioner appointed pursuant to section 10-1-104, C.R.S.;
Any issue of bonds not involving a public offering made exclusively to accreditedinvestors, as that term is defined under sections 2(a)(15) and 4(a)(2) of the federal "Securities Act of 1933", as amended, 15 U.S.C. secs. 77b (a)(15) and 77d (a)(2), by regulation adopted thereunder by the securities and exchange commission;
Any issue of bonds made pursuant to an order of a court of competent jurisdiction;
Any issue of bonds by a district which has principal amounts payable from moneysother than the proceeds of an ad valorem tax, where the total of such obligations represented by the issue, together with other such bonds of the district, does not at the time of the issuance exceed two million dollars;
Any issue of bonds of the district issued to the Colorado water resources and powerdevelopment authority which evidences a loan from said authority to the district; and
Any issue of bonds by a district that contains territory subject to an intergovernmental annexation agreement between the city and county of Denver and Adams county dated April 21, 1988, made pursuant to section 30-6-109.5, C.R.S.
(1.5) (a) The securities commissioner may make such rules, forms, and orders as are necessary to implement the provisions of subsection (1) of this section and to define any terms contained therein insofar as the definitions are not inconsistent with the provisions of this article.
No such rule, form, or order may be made, amended, or rescinded unless the securities commissioner finds that the action is necessary or appropriate in the public interest or the protection of investors and is consistent with the purposes and provisions of this article. In prescribing rules and forms, the securities commissioner may cooperate with the securities and exchange commission, the municipal securities rule-making board, the department of local affairs, and the state auditor with a view to effectuating subsection (1) of this section and to achieving uniformity wherever practicable.
The securities commissioner may, by rule or order, provide means by which bondholders, at their expense, may communicate with the holders of bonds of the same district so long as the confidentiality of the names and addresses of the bondholders is protected.
(2) As conditions to the applicability of the exemptions provided in subsection (1) of this section, the district issuing the bonds must file or cause to be filed with the securities commissioner at least five days prior to the first sale of such bonds:
A notice of claim of exemption in the form and containing the information prescribedby the securities commissioner;
A copy of the official statement to be distributed in connection with such offering;and
An exemption fee, which shall be determined and collected pursuant to section 1159-119.
(2.5) For purposes of the application of this section, exemption from registration under subsection (1) of this section shall not be contingent upon review or approval of any information filed with the securities commissioner under subsection (2) of this section.
(3) The securities commissioner may, by rule or order and subject to such terms and conditions as prescribed therein, exempt specified bonds or types of bonds or transactions therein from section 11-59-106 if the securities commissioner finds that the application of section 11-59-106 to such bonds or transactions is not necessary in the public interest and for the protection of investors.
Source: L. 91: Entire article added, p. 2415, § 1, effective January 1, 1992. L. 94: IP(1) and (1)(i) amended and (1.5) and (2.5) added, p. 1848, § 15, effective July 1. L. 2015: (1)(g) amended, (SB 15-264), ch. 259, p. 944, § 15, effective August 5.
Cross references: For the federal "Securities Act of 1933", see Pub.L. 73-22, codified at 15 U.S.C. § 77a et seq.