SENATE BILL 97150
BY SENATOR Coffman;
also REPRESENTATIVES Pfiffner, Arrington, and Schauer.
CONCERNING STATE FUNDS AND, IN CONNECTION THEREWITH,
ELIMINATING CERTAIN REPORTS TO BE PROVIDED TO THE STATE TREASURER,
SPECIFYING THE INVESTMENTS IN WHICH THE STATE TREASURER CAN INVEST
CERTAIN MONEYS IN THE STATE TREASURY, AND ELIMINATING THE REQUIREMENT
THAT EACH DEPARTMENT OF THE STATE PREPARE AN ANNUAL WORK PLAN.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 1247.1203
(2) (i) (I), Colorado Revised Statutes, 1991 Repl. Vol., as amended,
is amended to read:
1247.1203. Director
qualification powers and duties.
(2) In addition to the duties imposed upon the director
elsewhere in this part 2, the director shall:
(i) (I) Furnish to the state
treasurer and the commission a monthly
report which contains a full and complete statement of the division's
revenue and expenses for each month.
SECTION 2. The
introductory portion to 2435210 (4) (b), Colorado
Revised Statutes, 1988 Repl. Vol., as amended, is amended to read:
2435210. Lottery fund
repeal. (4) (b) At
least fifteen days prior to any distribution of net lottery proceeds
required by subsection (10) of this section, the commission shall
notify the state treasurer of the amount of money to be transferred
from the lottery fund to the conservation trust fund.
The amount to be transferred
OF MONEY TO BE TRANSFERRED FROM THE LOTTERY FUND TO THE CONSERVATION
TRUST FUND over the course of the fiscal year shall consist of:
SECTION 3. 2435210
(4.1) (a), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
is amended to read:
2435210. Lottery fund
repeal. (4.1) (a) At
least fifteen days prior to any distribution of net lottery proceeds
required by subsection (10) of this section, the commission shall
notify the state treasurer of the amount of money to be transferred
from the lottery fund to the conservation trust fund.
The amount to be transferred FROM THE LOTTERY FUND TO THE CONSERVATION
TRUST FUND shall be forty percent of the net proceeds of the lottery
for the preceding fiscal quarter after payment of the expenses
of the division and any prizes for the lottery and after reserving
sufficient moneys, as of the end of the fiscal year, to ensure
the operation of the lottery for the ensuing fiscal year. Beginning
with the fourth quarter of fiscal year 199899, and each
fiscal year thereafter, distributions of net lottery proceeds
to the conservation trust fund shall be made in accordance with
the provisions of paragraph (a) of
subsection (1) of section 3360104
(1) (a), C.R.S.
SECTION 4. 2475302.5
(2) (a), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
is amended to read:
2475302.5 Controlled maintenance
trust fund. (2) (a) There
is hereby created the controlled maintenance trust fund, the principal
of which shall consist of general fund revenues transferred thereto
as provided in section 2475201.1 (1) (c.5) (II). For
the 199697 fiscal year and fiscal years thereafter, the
principal of the trust fund may constitute all or some portion
of the state emergency reserve established pursuant to section
2477104 and may be expended in any given fiscal year
as provided in said section. The principal of the trust fund shall
not be expended or appropriated for any other purpose. THE STATE
TREASURER MAY IN THE STATE TREASURER'S DISCRETION DEPOSIT, REDEPOSIT,
INVEST, AND REINVEST MONEYS ACCRUED OR ACCRUING TO THE CONTROLLED
MAINTENANCE TRUST FUND IN THE TYPES OF DEPOSITS AND INVESTMENTS
AUTHORIZED IN SECTIONS 2436109, 2436112,
AND 2436113.
SECTION 5. 2436113,
Colorado Revised Statutes, 1988 Repl. Vol., as amended, is amended
to read:
2436113. Investment of
state moneys limitations. (1) Whenever
there are moneys in the state treasury which
THAT are not immediately required to be disbursed, the state treasurer
is authorized to invest the same in shortterm
interestbearing UNITED STATES
DOMESTIC FIXED INCOME securities. which
shall be readily convertible into cash.
In making such investments he
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) Such moneys may be invested, without
limitation, in DEBT OBLIGATIONS OF THE United States treasury,
bills and notes or in notes, debentures,
or other obligations issued by any
agency of the United States government, or United States governmentsponsored
corporations. including, but not limited
to, such agencies as the federal national mortgage association.
(3) The state treasurer may in the state
treasurer's discretion invest such moneys in repurchase agreements,
in BANKER'S acceptances, of banks
that are OR BANK NOTES, issued in
the regular course of business, and
BY BANKS RATED AT LEAST INVESTMENT GRADE BY A NATIONALLY RECOGNIZED
RATING ORGANIZATION, in commercial paper of prime quality, as
so classed by a nationally recognized RATING organization which
rates such paper, but any investment in commercial paper shall
be limited to that issued by corporations organized and operating
within the United States having net worth in excess of two hundred
fifty million dollars, which paper matures within two hundred
seventy days from the date of purchase
AND IN MONEY MARKET FUNDS THAT ARE REGISTERED AS AN INVESTMENT
COMPANY UNDER THE FEDERAL "INVESTMENT COMPANY ACT OF 1940",
AS AMENDED.
(3.5) The state treasurer may in the state
treasurer's discretion invest such moneys in corporate or
bank notes that are the obligation of a corporation or bank that
has a rating of DEBT OBLIGATIONS
RATED at least "A"
INVESTMENT GRADE by one or more
A nationally recognized rating organizations
ORGANIZATION. but any investment in
such notes shall be limited to those issued by corporations or
banks organized and operating within the United States having
a net worth in excess of two hundred fifty million dollars, which
notes mature within three years from the date of purchase.
(3.6) The state treasurer may in the state
treasurer's discretion invest such moneys in assetbacked
securities rated in one of the two highest rating categories by
one or more
A nationally recognized organizations
which regularly rate such obligations, which securities have an
expected average life of less than five years from the date of
purchase RATING ORGANIZATION.
(3.7) The state treasurer may in the state
treasurer's discretion invest such moneys in securities that are
issued or guaranteed by the world bank, the interAmerican
development bank, the Asian development bank, or the African development
bank or for which the credit of the world bank, the interAmerican
development bank, the Asian development bank, or the African development
bank is pledged for payment and that are rated in one of the two
highest rating categories by one or
more A nationally recognized organizations
which regularly rate such obligations
RATING ORGANIZATION.
(3.8) THE STATE TREASURER MAY IN THE STATE
TREASURER'S DISCRETION INVEST SUCH MONEYS IN MORTGAGE PASSTHROUGH
SECURITIES AND COLLATERALIZED MORTGAGE OBLIGATIONS THAT ARE ISSUED
BY ANY AGENCY OF THE UNITED STATES GOVERNMENT OR A UNITED STATES
GOVERNMENTSPONSORED CORPORATION OR THAT ARE RATED IN ONE
OF THE TWO HIGHEST RATING CATEGORIES BY A NATIONALLY RECOGNIZED
RATING ORGANIZATION.
(4) The state treasurer may make such
arrangements for the custody, safekeeping, and registration of
shortterm
ALL investment securities as will enable him
THE STATE TREASURER to make prompt delivery thereof upon maturity
or in the event of sale.
(5) The state treasurer may engage in
financial transactions involving such
moneys whereby: REVERSE REPURCHASE
AGREEMENTS AND SECURITIES LENDING PROGRAMS FOR ANY SECURITIES
IN THE STATE TREASURER'S CUSTODY.
(a) Obligations are purchased
with such moneys under an agreement providing for the resale of
such obligations to the original seller at a stated price together
with a payment to the state treasury of interest for the period
the state treasury holds the obligations, but the market value
of such obligations shall at all times be at least equal to the
total purchase price;
(b) Obligations owned by the state
treasury are sold under an agreement providing for the repurchase
of such obligations by the state treasury at a stated price together
with the payment to the buyer of interest for the period the buyer
holds the obligations;
(c) Obligations owned by the state
treasury are delivered to reputable and financially responsible
dealers in such obligations under an agreement which provides:
(I) For the replacement thereof
with obligations of the same kind and amount upon demand therefor
by the state treasurer; and
(II) For the payment to the state
treasury by said dealer of a commission or other compensation,
based upon the amount of such obligations, for the period of time
between the delivery of such obligations to such dealer and the
replacement thereof; and
(III) For the pledge and delivery
by said dealer to the state treasury of other obligations which
are lawful investments having a market value at all times equal
to at least the market value of the obligations so delivered to
guarantee the replacement of such obligations.
(d) (Repeal provision deleted
by revision.)
SECTION 6. 2241104,
Colorado Revised Statutes, 1995 Repl. Vol., is amended to read:
2241104. Lawful investments.
(1) The state treasurer in his
THE STATE TREASURER'S discretion may invest and reinvest moneys
accrued or accruing to the public school fund in any
of the following forms of investment:
THE TYPES OF DEPOSITS AND INVESTMENTS AUTHORIZED IN SECTIONS 2436109,
2436112, AND 2436113, C.R.S.
(a) Time deposits in banks and
savings and loan associations doing business in this state;
(b) Interestbearing obligations
of the state of Colorado or of any agency or institution thereof;
(c) Interestbearing obligations
of political and governmental subdivisions of the state and of
school districts within the state;
(d) Interestbearing obligations
of the United States or of any agency or instrumentality thereof
and interestbearing obligations the payment of principal
and interest of which is insured or guaranteed by the United States
or by any agency or instrumentality thereof;
(e) Interestbearing obligations
of corporations organized and operating within the United States
which are rated as good or high quality by one or more nationally
recognized organizations which regularly rate such obligations;
(f) Assetbacked securities
rated in one of the two highest rating categories by one or more
nationally recognized organizations which regularly rate such
obligations;
(g) Mortgagebacked securities
rated at least "AAA" by one or more nationally recognized
organizations which regularly rate such obligations;
(h) Acceptances of banks that
are issued in the normal course of business;
(i) Bank notes issued by any bank
organized and operating within the United States if such bank
has a rating of at least "A" by one or more nationally
recognized rating organizations;
(j) Securities that are issued
or guaranteed by the world bank, the interAmerican development
bank, the Asian development bank, or the African development bank
or for which the credit of the world bank, the interAmerican
development bank, the Asian development bank, or the African development
bank is pledged for payment and that are rated in one of the two
highest rating categories by one or more nationally recognized
organizations which regularly rate such obligations.
(2) The state treasurer has authority,
to be exercised at his
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 thirty
days and within the same fiscal year
of such exchange or sale. No exchange or sale of securities shall
be consummated by the state treasurer which 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.
(3) For the
purpose of this article, an obligation which does not bear interest
but which is issued at a discount from its value at maturity shall
be deemed to be interestbearing.
SECTION 7. 845120
(3), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
repealed as follows:
845120. State treasurer
to invest funds. (3) In
addition, such moneys may be invested in notes and loans secured
by first mortgages or first deeds of trust on real property located
in Colorado and guaranteed by government or private insurance,
or in nonconvertible corporate notes and bonds and equipment trust
certificates of United States domestic corporations rated investment
grade by a recognized security rating service, or in assetbacked
securities rated in one of the two highest categories by one or
more nationally recognized organizations which regularly rate
such obligations, or in mortgagebacked securities rated
at least "AAA" by one or more nationally recognized
organizations which regularly rate such obligations, or in securities
that are issued or guaranteed by the world bank, the interAmerican
development bank, the Asian development bank, or the African development
bank or for which the credit of the world bank, the interAmerican
development bank, the Asian development bank, or the African development
bank is pledged for payment and that are rated in one of the two
highest rating categories by one or more nationally recognized
organizations which regularly rate such obligations.
SECTION 8. 846103
(2), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
repealed as follows:
846103. State treasurer to invest
funds. (2) In
addition, such moneys may be invested in notes and loans secured
by first mortgages or first deeds of trust on real property located
in Colorado and guaranteed by government or private insurance
or in nonconvertible corporate notes and bonds and equipment trust
certificates of United States domestic corporations rated investment
grade by a recognized security rating service.
SECTION 9. 846210
(2), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
repealed as follows:
846210. State treasurer
to invest funds. (2) In
addition, such moneys may be invested in notes and loans secured
by first mortgages or first deeds of trust on real property located
in Colorado and guaranteed by government or private insurance
or in nonconvertible corporate notes and bonds and equipment trust
certificates of United States domestic corporations rated investment
grade by a recognized security rating service.
SECTION 10. 846308
(2), Colorado Revised Statutes, 1986 Repl. Vol., as amended, is
repealed as follows:
846308. State treasurer
to invest funds. (2) In
addition, such moneys may be invested in notes and loans secured
by first mortgages or first deeds of trust on real property located
in Colorado and guaranteed by government or private insurance
or in nonconvertible corporate notes and bonds and equipment trust
certificates of United States domestic corporations rated investment
grade by a recognized security rating service.
SECTION 11. 2475201.5
(1) (a), Colorado Revised Statutes, 1988 Repl. Vol., as amended,
is amended to read:
2475201.5. Revenue shortfalls
required actions by the governor with respect to the reserve.
(1) (a) Whenever the revenue estimate for the
current fiscal year, prepared in accordance with section 2475201.3
(2), indicates that general fund expenditures for such fiscal
year based on appropriations then in effect will result in the
use of onehalf or more of the reserve required by section
2475201.1 (1) (d), the governor shall formulate a
plan for reducing such general fund expenditures so that said
reserve, as of the close of the fiscal year, will be at least
onehalf of the amount required by said section 2475201.1
(1) (d). The governor shall promptly notify the general assembly
of such plan. Such plan shall be promptly implemented by the governor,
using the procedures set forth in section 242102 (4)
2430206 (3),
or 2450109.5 or any other lawful means.
SECTION 12. Repeal. 2430206,
Colorado Revised Statutes, 1988 Repl. Vol., as amended, is repealed.
SECTION 13. Effective
date. This act shall take effect at 12:01 a.m.
on the day following the expiration of the ninetyday period
after final adjournment of the general assembly that is allowed
for submitting a referendum petition pursuant to article V, section
1 (3) of the state constitution; except that, if a referendum
petition is filed against this act or an item, section, or part
of this act within such period, then the act, item, section, or
part, if approved by the people, shall take effect on the date
of the official declaration of the vote thereon by proclamation
of the governor.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO