SB 22-121

Senate Bill 22-121, which has been signed into law, allows Colorado higher education institutions designated as enterprises to pledge a larger portion of their tuition revenue when securing loans or bonds. Specifically, these institutions can now pledge up to 100% of their tuition revenue instead of the previous limit of just 10%. This change applies only to institutions that are classified as enterprise entities and affects how they finance projects by issuing bonds. The law is now in effect and impacts how these specific higher education institutions manage their financial obligations and investments.

Official Summary

The act increases, from 10% to 100%, the amount of tuition revenues that a governing board of an institution of higher education or group of institutions of higher education designated as an enterprise may pledge in a contract for the advancement of money. If an institution of higher education issues a revenue bond and the governing board of the institution wants the bond to be an intercept bond, the act raises the amount of the pledged revenue for the new intercept bond from not less than 10% of tuition to not less than 100% of tuition if the institution is an enterprise. (Note: This summary applies to this bill as enacted.)

Votes