HOUSE BILL 981095
BY REPRESENTATIVES Chavez, Gotlieb, Mace, Morrison, Reeser, and Romero;
also SENATORS Wham and Tebedo.
CONCERNING A REQUIREMENT THAT TRUSTEES WHO MANAGE
THE ASSETS OF A BENEFIT RETIREMENT SYSTEM THAT IS MAINTAINED FOR
EMPLOYEES OF A SCHOOL DISTRICT SHALL BE GOVERNED BY THE STANDARD
FOR TRUSTEES CONTAINED IN THE COLORADO "UNIFORM PRUDENT INVESTOR
ACT".
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 2264112
(2), Colorado Revised Statutes, is amended to read:
2264112. Board may invest
retirement funds when. (2) (a) In
addition, if desired, the boards of education, through their custodians,
may invest or deposit such funds in the manner provided by part
6 of article 75 of title 24, C.R.S., and may, EXCEPT AS PROVIDED
IN PARAGRAPH (b) OF THIS SUBSECTION (2), acquire and retain every
kind of property, real, personal, and mixed, and every kind of
investment, specifically including, but not by way of limitation,
bonds, debentures, and other corporate obligations, stocks, preferred
or common, securities of any openend or closedend
management type investment company or investment trust, and participations
in common trust funds, which men
PERSONS of prudence, discretion, and intelligence would acquire
or retain for their own account, but in doing so such boards of
education shall exercise the judgment and care under the circumstances
then prevailing which men
PERSONS of prudence, discretion, and intelligence exercise in
the management of their own affairs, not in regard to speculation
but in regard to the permanent disposition of their funds, considering
the probable income as well as the probable safety of their capital.
The purchase or sale of any investments by the custodian of such
funds shall be only upon the direction of his
SUCH CUSTODIAN'S board of education.
(b) (I) IF A SCHOOL DISTRICT MAINTAINS
A BENEFIT OR RETIREMENT SYSTEM THAT UTILIZES THE TRUST FORM FOR
MANAGING AND INVESTING THE FUNDS AND ASSETS OF SUCH SYSTEM, THE
TRUSTEE OR TRUSTEES OF THE TRUST SHALL MANAGE AND INVEST THE FUNDS
AND ASSETS HELD IN TRUST PURSUANT TO THE STANDARD AND OTHER PROVISIONS
FOR TRUSTEES SET FORTH IN THE "UNIFORM PRUDENT INVESTOR ACT",
ARTICLE 1.1 OF TITLE 15, C.R.S., AS MADE APPLICABLE TO ANY SUCH
TRUST IN EXISTENCE ON JULY 1, 1995, PURSUANT TO SECTION 151.1111,
C.R.S.
(II) NOTHING IN THIS PARAGRAPH (b) SHALL
BE CONSTRUED AS REPEALING OR MODIFYING SECTION 2264115
OR AFFECTING THE LIABILITY OF A MEMBER OF ANY BOARD OF EDUCATION
AS PROVIDED IN THAT SECTION.
SECTION 2. Effective
date. This act shall take effect on August 5, 1998;
except that, if a referendum petition is filed against this act
or an item, section, or part of this act within 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, 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.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO