What are Title 32, Article 1 special districts?
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Special districts are a type of local government in a catalog of local governments found throughout the Colorado Revised Statutes. Other local governments include:
- Title 22 (School Districts)
- Title 24 (Library Districts)
- Title 29 (Various Local Governments)
- Title 30 (Counties)
- Title 31 (Municipalities)
- Title 32 (Special Districts)
- Title 35 (Agriculture/ Conservation Districts)
- Title 37 (Water Conservation/ Irrigation Districts)
This is not a comprehensive list, but each of these local governments are governed differently within their respective governing laws. Each is structured by those laws. For example, a Public Improvement District (Title 30, Article 20, Part 5, C.R.S.) is governed by the County Board of Commissioners. A School District is governed by an elected Board of Directors pursuant to Title 22, Article 31, C.R.S.
Title 32, Article 1 special districts include the following:
- Metropolitan
- Fire Protection
- Ambulance
- Health Service
- Mental Health
- Water
- Sanitation
- Water & Sanitation
- Park & Recreation
- Health Assurance
- Tunnel
Some special districts provide single services, while others provide multiple services. Metropolitan districts must provide at least two (2) of the following services:
- Fire protection
- Mosquito control
- Parks and recreation
- Safety protection
- Sanitation
- Solid waste disposal facilities or collection and transportation of solid waste
- Street improvement
- Television relay and translation
- Transportation
- Water
C.R.S. § 1-13.5-301(2)
What are the oath and bond requirements for a member of a special district Board?
Every time a director is appointed, elected, or re-elected, they must take an oath within 30 days of their election or appointment “except for good cause shown”. What is "good cause shown"? That’s up to the district Board and its legal counsel.
Note that oaths for cancelled elections must be taken after the date of the election. Any oath taken prior to that (immediately after the election is cancelled, for example) is invalid.
With the passage of HB-1138 and SB-242 in 2018, effective August 1, 2018, the oath must be filed with the County Clerk and Recorder for each county in which the special district is located prior to taking office which may cause logistical problems if unknown ahead of time.
C.R.S. § 32-1-901(1); Article XII, Section 8 Colorado Constitution
In summary, oaths of office must be submitted to three agencies (i.e. DLG, Clerk of the District Court, and the County Clerk and Recorder).
C.R.S. § 32-1-901; 32-1-902(2), 24-12-101, Form SD-1
When directors file an oath, they also file their bond.
Only file the bond with the division when filing an oath.
At the time of the filing of the oath, there shall also be filed for each director an individual, schedule, or blanket surety bond at the expense of the special district, in an amount determined by the Board of not less than $1,000 for each director, conditioned upon the faithful performance of his/her duties as director. For the treasurer, there must be filed a corporate fidelity bond in an amount determined by the Board of not less than $5,000, conditioned on the faithful performance of the duties of his/her office.
C.R.S. § 32-1-901(2), 32-1-902, Example bond: SD-0
What happens if a director fails to take an oath?
The director’s seat may be deemed vacant if the oath is not taken within 30 days of election or appointment.
Note that there is not a deadline to file with DLG, but 30 days is a good goal.
If any director fails to take the oath or furnish the bond within the period allowed, except for good cause shown*, his/her office shall be deemed vacant, and the vacancy thus created shall be filled in the same manner as other vacancies in the office of director; except when a board is unable to appoint; remedied as described in 32-1-905 (2 & 2.5).
C.R.S. § 32-1-901(3)
Are special district Board members compensated for their time?
Directors serving a term of office commencing on or after January 1, 2018, may receive as compensation for the director’s service a sum not in excess of *$2,400 per annum.
Director compensation is not to exceed $100 per meeting attended.
Compensation is not required, however, and many directors are not paid.
C.R.S. § 32-1-902(3)(a)
How is the Board of Directors organized?
Once the directors take oaths, the Board will elect the officers. A chairman, treasurer, and secretary are required, although the secretary and treasurer may be the same director. Other titles include may include Vice President and Assistant Secretary.
The board shall elect one of its members as chairman of the board and president of the special district, one of its members as a treasurer of the board and special district, and a secretary who may be a member of the board. The secretary and the treasurer may be one person, but, if such is the case, he or she shall be a member of the board. The board shall adopt a seal, and the secretary shall keep in a visual text format that may be transmitted electronically a record of all its proceedings, minutes of all meetings, certificates, contracts, bonds given by employees, and all corporate acts, which shall be open to inspection of all electors, as well as to all other interested parties.
C.R.S. § 32-1-902(1)
What are the specific duties of the treasurer?
Generally, the day-to-day functions of the special district, including the filing of the corporate fidelity bond, are performed by the special district staff or managing entity.
The treasurer shall keep strict and accurate accounts of all money received by and disbursed for and on behalf of the special district in permanent records. He/she shall file with the clerk of the court, at the expense of the district, a corporate fidelity bond in an amount determined by the board of not less than $5,000, conditioned on the faithful performance of the duties of his/her office.
C.R.S. § 32-1-902(2)
What causes a vacancy on the board of directors?
Vacancies most commonly occur because a Board member resigns from the Board or is no longer an eligible elector of the special district. But the Special District Act details several possibilities.
A director’s office shall be deemed vacant upon the occurrence of any one of the following events prior to the expiration of the term of office:
- If for any reason a properly qualified person is not elected to a director’s office by the electors as required at a regular election;
- If a person who was duly elected or appointed fails, neglects or refuses to subscribe to an oath of office or to furnish the bond;
- If a person who was duly elected or appointed submits a written resignation to the Board;
- If a person who was duly elected or appointed ceases to be qualified for the office to which he/she was elected;
- If a person who was duly elected or appointed is convicted of a felony;
- If a court of competent jurisdiction voids the election or appointment or removes the person duly elected or appointed for any cause whatsoever, but only after his/her right to appeal has been waived or otherwise exhausted;
- If a person who was duly elected or appointed fails to attend three consecutive regular meetings of the Board without the Board having entered upon its minutes an approval for an additional absence or absences; except that such additional absence or absences shall be excused for temporary mental or physical disability or illness; or
- If the person who was duly elected or appointed dies during his term of office.
C.R.S. § 32-1-905 (1)