Colo. Const. art. V § 38 No Liability Exchanged Or Released

• Library: Colorado Constitution
• Edition: 2023 Edition
• Currency: Current through 11/8/2022 Election

No obligation or liability of any person, association, or corporation, held or owned by the state, or any municipal corporation therein, shall ever be exchanged, transferred, remitted, released, or postponed or in any way diminished by the general assembly, nor shall such liability or obligation be extinguished except by payment thereof into the proper treasury. This section shall not prohibit the write-off or release of uncollectible accounts as provided by general law.

Cite as Colo. Const. art. V § 38

Source:

Entire article added, effective August 1, 1876, see L. 1877, p. 43. L. 74: Entire section amended, p. 451, effective January 1, 1975.

Editor's Note:

The Governor's proclamation date in 1974 was December 20, 1974.

ANNOTATION

Law reviews. For comment on Burton v. City & County of Denver appearing below, see 9 Rocky Mt. L. Rev. 289 (1937).

Purpose of provision. It is the purpose of this constitutional provision to protect obligations and liabilities owned by municipal corporations against diminution by the general assembly. Authority to create indebtedness is not proscribed. Allardice v. Adams County, 173 Colo. 133, 476 P.2d 982 (1970).

General assembly can regulate municipal power to contract. The general assembly can regulate the manner in which a municipal corporation shall exercise its power to contract. Dalby v. City of Longmont, 81 Colo. 271, 256 P. 310 (1927).

No mention is made of taxes in this section, therefore, it is possible the subject is not included. Burton v. City & County of Denver, 99 Colo. 207, 61 P.2d 856, 107 A.L.R. 564 (1936).