NOTE: The governor signed this measure on 3/7/2012.
      
      
      HOUSE BILL 12-1005
      
      
      BY REPRESENTATIVE(S) Pabon, Becker, Brown, Casso, Ferrandino,
      Fischer, Gerou, Holbert, Hullinghorst, Jones, Kefalas, Kerr A., Kerr J.,
      Labuda, Levy, Massey, McCann, Miklosi, Pace, Ryden, Schafer S., Solano,
      Soper, Summers, Todd, Vigil, Williams A., Wilson, Young;
      also SENATOR(S) Harvey, Aguilar, Boyd, Foster, Guzman, Morse,
      Schwartz.
      
      
      Concerning investment of public funds.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 24-75-601.1, amend
      (1) (b) (II) and (1) (m) (I); and add (1) (m) (III) as follows:
      
           24-75-601.1.  Legal investments of public funds. (1)  It is lawful
      to invest public funds in any of the following securities:
      
           (b) (II)  No subordinated security may be purchased pursuant to
      this paragraph (b). unless at the time of purchase, the security is rated in its
      highest rating category by two or more nationally recognized organizations
      that regularly rate such obligations and no such organizations rate the
      security lower than its highest rating category. Should the security issued as
      described in subparagraph (I) of this paragraph (b) fail to meet the minimum
      credit risk requirements, the security may be considered for purchase to the
      extent it conforms with the requirements of paragraph (m) of this subsection
      (1).
      
           (m) (I)  Any corporate or bank security issued by a corporation or
      bank that is organized and operated within the denominated in United
      States must mature dollars, that matures within three years from the
      date of settlement, and that at the time of purchase must carry carries at
      least two credit ratings from any of the nationally recognized credit rating
      agencies statistical ratings organizations, and must that is not be
      rated below: "AA- or Aa3" by any credit rating agency.
      
           (A)  "A1, P1, or F1" or their equivalents by either rating used
      to fulfill the requirements of this subparagraph (I) if the security is
      a money market instrument such as commercial paper or bankers'
      acceptance; then the security must carry at least two credit ratings from any
      of the nationally recognized credit rating agencies and must not be rated
      below "A1, P1, or F1" by any credit rating agency or
      
           (B)  "AA- or Aa3" or their equivalents by either rating used
      to fulfill the requirements of this subparagraph (I) if the security
      is any other kind of security.
      
           (III)  No subordinated security may be purchased pursuant
      to this paragraph (m). No security issued by a corporation or bank
      that is not organized and operated within the United States may
      be purchased pursuant to this paragraph (m) unless the governing
      body of the public entity authorizes investment in such securities.
      
           SECTION 2.  Safety clause. The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ________________________________________________________
      Frank McNulty                      Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                   Joseph A. Garcia
                                    LT. GOVERNOR OF THE STATE OF COLORADO