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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0563.01 BJA HOUSE BILL 98­1251

STATE OF COLORADO

BY REPRESENTATIVE Snyder;

also SENATOR Wattenberg.

LOCAL GOVERNMENT

A BILL FOR AN ACT

CONCERNING THE CUSTODY OF COUNTY FUNDS, AND, IN CONNECTION THEREWITH, SPECIFYING THE COUNTY TREASURER'S AUTHORITY AS CUSTODIAN OF COUNTY FUNDS AND MONEYS AND LIMITING THE BOARD OF COUNTY COMMISSIONERS' AUTHORITY TO APPOINT ONE OR MORE CUSTODIANS OF COUNTY FUNDS.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Designates the county treasurer as the custodian of county funds. Repeals the requirement that the county treasurer deposit and invest county funds as approved and designated by written resolution of the board of county commissioners. Authorizes the board of county commissioners to bring an action in county court to determine whether the county treasurer has violated the statutory investment requirements. Authorizes the board of county commissioners to appoint one or more custodians of the funds if the county court determines that the county treasurer has violated the statutory investment requirements. Gives any such custodian the same authority and responsibilities as the county treasurer with respect to county funds and moneys. Grants county courts original jurisdiction to determine whether a county treasurer has violated the statutory investment requirements.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  30­10­708 (1) and (2), Colorado Revised Statutes, are amended to read:

30­10­708.  Deposit of funds in banks and savings and loan associations. (1)  In all counties of this state, the county treasurer shall deposit all the funds and moneys of whatever kind that come into the treasurer's possession by virtue of the office, in the treasurer's name as treasurer, in one or more state banks, national banks, or, in compliance with the provisions of article 47 of title 11, C.R.S., savings and loan associations. that have previously been approved and designated by written resolution duly adopted by a majority vote of the board of county commissioners, which shall be entered in its minutes. The board, by written resolution similarly adopted, may authorize The county treasurer to MAY invest all or any part of the funds and moneys in securities meeting the investment requirements established in part 6 of article 75 of title 24, C.R.S. EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (1), for the purposes of investment of funds of the county as set forth in said part 6, THE COUNTY TREASURER SHALL BE THE CUSTODIAN OF COUNTY FUNDS AND MONEYS. IF A MAJORITY OF THE BOARD OF COUNTY COMMISSIONERS DETERMINES, BY WRITTEN RESOLUTION, THAT A COUNTY TREASURER MAY HAVE VIOLATED ANY PROVISION OF PART 6 OF ARTICLE 75 OF TITLE 24, C.R.S., THE BOARD MAY BRING AN ACTION IN COUNTY COURT TO DETERMINE WHETHER THE COUNTY TREASURER HAS VIOLATED ANY PROVISION OF SAID PART 6. IF THE COUNTY COURT DETERMINES THAT THE COUNTY TREASURER VIOLATED ANY PROVISION OF SAID PART 6, the board OF COUNTY COMMISSIONERS, by written resolution, may appoint one or more custodians of the funds, and such persons shall give surety bonds in such amounts and form and for such purposes as the board requires. ANY CUSTODIAN APPOINTED AS PROVIDED IN THIS SUBSECTION (1) SHALL HAVE THE SAME AUTHORITY AND RESPONSIBILITIES AS THE COUNTY TREASURER WITH RESPECT TO COUNTY FUNDS AND MONEYS.

(2)  All securities so purchased shall be duly registered in the name of the county treasurer and shall be deposited and safely kept in the custody of some state bank or any national bank. No such security shall be sold or otherwise disposed of except pursuant to a resolution of said board of county commissioners similarly adopted, which resolution shall also approve and designate the bank or banks in which such proceeds shall then be deposited, or such resolution may in lieu thereof authorize the reinvestment of such proceeds in any of the securities specified in subsection (1) of this section.

SECTION 2.  13­6­104, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

13­6­104.  Original civil jurisdiction. (10)  THE COUNTY COURT SHALL HAVE ORIGINAL JURISDICTION TO DETERMINE WHETHER A COUNTY TREASURER HAS VIOLATED ANY PROVISION OF PART 6 OF ARTICLE 75 OF TITLE 24, C.R.S., AS PROVIDED IN SECTION 30­10­708 (1), C.R.S.

SECTION 3.  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.