NOTE: The governor signed this measure on 4/26/2013.
      
      
      HOUSE BILL 13-1205
      
      
      BY REPRESENTATIVE(S) Swalm and Pabon, Buckner, Coram, Court,
      Exum, Holbert, Labuda, Priola, Rosenthal, Scott, Singer, Szabo, Williams,
      Young, Ferrandino;
      also SENATOR(S) Schwartz, Newell.
      
      
      Concerning the investment of state moneys by the state
           treasurer.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 22-41-104, amend (2)
      as follows:
      
           22-41-104.  Lawful investments. (2)  The state treasurer has
      authority, to be exercised at the state treasurer's discretion, to effect
      exchanges or sales whenever such exchanges or sales will not result in any
      ultimate loss of principal and to effect exchanges or sales that will result in
      a loss of principal whenever such loss can be offset by a corresponding gain
      within three fiscal years of such exchange or sale. No exchange or sale of
      securities shall be consummated by the state treasurer that will result in a
      net loss of principal unless the general assembly has previously
      appropriated a sum to the public school fund equivalent to the anticipated
      net loss of principal from such exchange or sale an aggregate loss of
      principal to the public school fund. An aggregate loss of principal
      to the public school fund occurs only when an exchange or sale
      that resulted in an initial loss of principal is not offset by a gain
      on an exchange or sale in the fund within twelve months.
      
           SECTION 2.  In Colorado Revised Statutes, 24-36-113, amend (1)
      (a) and (3.6); and add (2.5) as follows:
      
           24-36-113.  Investment of state moneys - limitations.
      (1) (a)  Whenever there are moneys in the state treasury that are not
      immediately required to be disbursed, the state treasurer is authorized to
      invest the same in United States domestic fixed income securities
      denominated in United States dollars. In making such investments,
      the state treasurer shall use prudence and care to preserve the principal and
      to secure the maximum rate of interest consistent with safety and liquidity.
      The state treasurer shall formulate investment policies regarding liquidity,
      maturity, and diversification appropriate to each fund or pool of funds in the
      state treasurer's custody available for investment.
      
           (2.5)  The state treasurer may, in the state treasurer's
      discretion, invest such moneys in municipal bonds rated in one of
      the two highest rating categories by a nationally recognized
      rating organization.
      
           (3.6)  The state treasurer may, in the state treasurer's discretion,
      invest such moneys in asset-backed securities and covered bonds rated
      in one of the two highest rating categories by a nationally recognized rating
      organization.
      
           SECTION 3.  Act subject to petition - effective date. This act
      takes effect at 12:01 a.m. on the day following the expiration of the
      ninety-day period after final adjournment of the general assembly (August
      7, 2013, if adjournment sine die is on May 8, 2013); except that, if a
      referendum petition is filed pursuant to section 1 (3) of article V of the state
      constitution against this act or an item, section, or part of this act within
      such period, then the act, item, section, or part will not take effect unless
      approved by the people at the general election to be held in November 2014
      and, in such case, will take effect on the date of the official declaration of
      the vote thereon by the governor.
      
      
      
      
      ________________________________________________________
      Mark Ferrandino                         John P. Morse
      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________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO