(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 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.
(b) (I) If the state treasurer invests state moneys through an investment firm
offering for sale corporate stocks, bonds, notes, debentures, or a mutual fund that
contains corporate securities, the investment firm shall disclose, in any research or
other disclosure documents provided in support of the securities being offered, to
the state treasurer whether the investment firm has an agreement with a for-profit
corporation that is not a government-sponsored enterprise, whose securities are
being offered for sale to the state treasurer and because of such agreement the
investment firm:
(A) Had received compensation for investment banking services within the
most recent twelve months; or
(B) May receive compensation for investment banking services within the
next three consecutive months.
(II) For the purposes of this paragraph (b), investment firm means a bank,
brokerage firm, or other financial services firm conducting business within this
state, or any agent thereof.
(2) Such moneys may be invested, without limitation, in debt obligations of
the United States treasury, any agency of the United States government, or United
States government-sponsored corporations.
(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) The state treasurer may, in the state treasurer's discretion, invest such
moneys in repurchase agreements, in banker's acceptances or bank notes issued 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, 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 debt obligations rated at least investment grade 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.
(3.7) Repealed.
(3.8) The state treasurer may, in the state treasurer's discretion, invest such
moneys in mortgage pass-through securities and collateralized mortgage
obligations that are issued by any agency of the United States government or a
United States government-sponsored corporation or that are rated in one of the two
highest rating categories by a nationally recognized rating organization.
(3.9) Repealed.
(4) The state treasurer may make such arrangements for the custody,
safekeeping, and registration of all investment securities as will enable the state
treasurer to make prompt delivery thereof upon maturity or in the event of sale.
(5) The state treasurer may engage in reverse repurchase agreements and
securities lending programs for any securities in the state treasurer's custody and
may purchase loans if, in the state treasurer's discretion, the purchase of loans will
yield a fair and equitable return to the state.
(6) Notwithstanding any restrictions on the investment of state moneys set
forth in this section or in any other provision of law, the state treasurer may
authorize the escrow agent appointed pursuant to section 1 of the escrow
agreement entered into in connection with, and attached as exhibit B to, the master
settlement agreement entered by the court in the case denominated State of
Colorado, ex rel. Gale A. Norton, Attorney General v. R.J. Reynolds Tobacco Co.;
American Tobacco Co., Inc.; Brown & Williamson Tobacco Corp.; Liggett & Myers, Inc.;
Lorillard Tobacco Co., Inc.; Philip Morris, Inc.; United States Tobacco Co.; B.A.T.
Industries, P.L.C.; The Council For Tobacco Research--U.S.A., Inc.; and Tobacco
Institute, Inc. , Case No. 97 CV 3432, in the district court for the city and county of
Denver, to invest any tobacco litigation settlement moneys held in escrow for the
state of Colorado pursuant to the master settlement agreement and the escrow
agreement in any manner permitted by section 5 of the escrow agreement.
(6.1) The state treasurer may, in the state treasurer's discretion, invest such
money in securities that are issued by a sovereign, national, or supranational entity
and are rated at least investment grade by a nationally recognized rating
organization.
(7) Repealed.
(8) (a) Subject to the requirements set forth in subsection (8)(b) of this
section, the state treasurer may invest money in bonds that are issued by quasi-governmental authorities for the purpose of creating affordable for-sale housing
within the state consistent with the public purposes of the quasi-governmental
authority issuing the bonds. Notwithstanding subsection (1)(a) of this section, an
investment allowed pursuant to this subsection (8) may have a below-market rate
of interest.
(b) (I) (A) An investment made as authorized by subsection (8)(a) of this
section must create or finance new affordable, income-restricted for-sale housing
within the state that, without such investment, would not otherwise be made
available at similar rates and terms.
(B) The housing created with proceeds of the bonds must remain affordable
long-term and be available to borrowers earning no more than one hundred forty
percent of the statewide area median income as defined annually by the United
States department of housing and urban development with consideration given to
elevating opportunities for for-sale housing for the lowest income borrowers and
taking into consideration demonstrated community needs. The quasi-governmental
authority issuing the bonds or its designee shall require that income verifications
are completed.
(II) The initial investment of money that is invested in accordance with this
subsection (8) must not exceed fifty million dollars. Notwithstanding any law to the
contrary, the term of an investment made pursuant to this subsection (8) may be up
to forty-five years.
(III) Any bond purchased in accordance with this subsection (8) must have at
least two credit ratings at or above A- or A3 or its equivalent from a nationally
recognized rating organization and must otherwise be eligible for purchase
consistent with the state treasurer's investment policies. The issuance of the bonds
must be consistent with the public purposes of the quasi-governmental authority
issuing the bonds.
(IV) The state treasurer shall reinvest principal proceeds received from
redemption of an investment made pursuant to this subsection (8) in accordance
with this subsection (8); except that any reinvestment shall only be made after the
state treasurer receives repayment of fifty percent of the principal amount
invested.
(V) The quasi-governmental authority issuing the bonds shall provide an
annual report to the treasurer and the general assembly that includes the total
number of units constructed in the reporting year and at what levels of affordability
the units will be offered for sale, a map showing each location where proceeds of
the bonds have been used, and the average sale price of affordable for-sale
housing created with bond proceeds that sold in the reporting year categorized by
rural, urban, and rural resort regions. The report must also include housing market
and demographic information that demonstrates how the units created address the
need for affordable for-sale homes in the communities they are intended to serve
and provide information about any remaining disparities concerning housing
affordability within these communities.