(1) There is created a state board of stock inspection commissioners, composed of five commissioners who shall be appointed by the governor, all of whom shall be actively engaged in the production or feeding of cattle, horses, or sheep, with the consent of the senate. Two of the members shall represent the nonconfinement cattle industry; two of the members shall represent the confinement cattle industry; and one shall have broad general knowledge of the Colorado livestock industry and shall represent the commodity, other than the confinement and nonconfinement cattle industries, with the largest percentage of charged fees. The members of the board shall be appointed in such manner as will at all times represent as nearly as possible all sections of the state wherein livestock is a major activity, but at no time shall any two members be residents of the same particular section of the state. The term of office of said commissioners shall be for a period of four years. Persons holding office on June 15, 1987, are subject to the provisions of section 24-1-137, C.R.S. Members may be removed for cause by the governor. They shall serve without compensation except for actual and necessary traveling expenses. The board shall meet monthly unless, in case of emergency, a special meeting is deemed advisable.

(2) The board shall appoint a brand commissioner who shall be under its supervision and who, in the absence of the board, shall carry out its policies. The brand commissioner shall be subject to the state personnel system laws. His compensation shall be paid out of the brand inspection fund. The brand commissioner, certified by the state personnel director to his position on April 27, 1963, shall continue in such certified status as provided by law.

(3) The board shall make such rules and regulations, not inconsistent with law, concerning the manner of inspection of brands and livestock as it deems proper.

(4) The state board of stock inspection commissioners and the office of brand commissioner created by this section shall comprise a part of the division of brand inspection in the department of agriculture.

(5) (a) The division and the board shall constitute an enterprise for the purposes of section 20 of article X of the state constitution, so long as the board retains the authority to issue revenue bonds and the board and the division receive less than ten percent of their total annual revenues in grants, as defined in section 24-77-102 (7), C.R.S., from all Colorado state and local governments combined. So long as it constitutes an enterprise pursuant to this section, the division and the board shall not be subject to any of the limitations imposed by section 20 of article X of the state constitution.

(b) The enterprise created pursuant to thissection shall have all the powers and duties authorized by this title with regard to the board and the division.

(c) Nothing in this section shall be construed to limit or restrict the authority of the division to expend its revenues consistent with the provisions of this article and articles 41.5, 43, 44, 46, 47, 53, 53.5, 55, 57, and 57.8 of this title.

(6) (a) The board may, by resolution that meets the requirements of subsection (7) of this section, authorize and issue revenue bonds in an amount not to exceed ten million dollars in the aggregate for expenses of the division. The bonds may be issued only after approval by both chambers of the general assembly, acting either by bill or by joint resolution, and after approval by the governor in accordance with section 39 of article V of the state constitution. The bonds shall be payable only from moneys allocated to the division for expenses of the division pursuant to section 35-41-102.

(b) All bonds issued by the board shall specify that:

(I) No holder of any bonds may compel the state or any subdivision thereof to exercise its appropriation or taxing power; and

(II) The bonds do not constitute a debt or financial obligation of the state and are payable only from the net revenues allocated to the division for expenses as designated in the bonds.

(7) (a) A resolution authorizing the issuance of bonds under the terms of this section shall state:

(I) The date of issuance of the bonds;

(II) A maturity date or dates during a period not to exceed thirty years after the date of issuance of the bonds;

(III) The interest rate or rates on, and the denomination or denominations of, the bonds; and

(IV) The medium of payment of the bonds and the place where the bonds will be paid.

(b) A resolution authorizing the issuance of bonds under the terms of this section may:

(I) State that the bonds are to be issued in one or more series;

(II) State a rank or priority of the bonds; and

(III) Provide for redemption of the bonds prior to maturity, with or without premium.

(8) Bonds issued pursuant to the terms of this section may be sold at public or private sale. If bonds are to be sold at a public sale, the board shall advertise the sale in any manner the board deems appropriate. All bonds issued pursuant to the terms of this section shall be sold at a price not less than the par value thereof, together with all accrued interest to the date of delivery.

(9) Notwithstanding any provision of law to the contrary, all bonds issued pursuant to this section are negotiable.

(10) (a) A resolution pertaining to issuance of bonds under this section may contain covenants as to:

(I) The purpose to which the proceeds of sale of the bonds may be applied and to the use and disposition thereof;

(II) Such matters as are customary in the issuance of revenue bonds, including, without limitation, the issuance and lien position of other or additional bonds; and

(III) Books of account and the inspection and audit thereof.

(b) A resolution made pursuant to this section shall be deemed a contract with the holders of the bonds, and the duties of the board under the resolution shall be enforceable by any appropriate action in a court of competent jurisdiction.

(11) Bonds issued under this section and bearing the signatures of the board members in office on the date of the signing shall be deemed valid and binding obligations regardless of whether, prior to delivery and payment of the bonds, any or all of the persons whose signatures appear thereon have ceased tobe members of the board.

(12) (a) Except as otherwise provided in the resolution authorizing the bonds, all bonds of the same issue under this section shall have a prior and paramount lien on the net revenues pledged therefor. The board may provide for preferential security for any bonds, both principal and interest, to be issued under this section to the extent deemed feasible and desirable by the board over any bonds that may be issued thereafter.

(b) Bonds of the same issue or series issued under this section shall be equally and ratably secured, without priority by reason of number, date, sale, execution, or delivery, by a lien on the net revenue pledged in accordance with the terms of the resolution authorizing the bonds.