(1) (a) The board
shall be the trustee of the fire and police members' benefit investment fund and
shall have full and unrestricted discretionary power and authority to invest and
reinvest such portions of the fund as in its judgment may not be immediately
required for the payment of refunds or benefits. In exercising its discretionary
authority with respect to the management and investment of fund assets, the board
shall be governed by the standard and other provisions for trustees set forth in the
Colorado Uniform Prudent Investor Act, article 1.1 of title 15, C.R.S.
(b) (I) If the board invests fund 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
board 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 board and because of such agreement the investment firm:
(A) Had received compensation for investment services banking 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) The board shall designate one or more financial institutions as custodians
of the fund. All moneys paid or transmitted to the custodian shall be credited to
appropriate accounts in the fund and the custodian shall maintain a current
inventory of all investments of the fund.
(3) Disbursements from the fund shall be made, subject to the approval of
the board, only for payment of the expenses of the association, refunds to the
members, benefits, and investment purposes.
(4) and (5) (Deleted by amendment, L. 97, p. 11, � 3, effective March 13, 1997.)
(6) All transactions involving the purchase and sale of investments
authorized in this section shall be effected on behalf of the association. To facilitate
sale and exchange transactions, securities belonging to the association may be
registered in the name of nominees in the discretion of the board and in accordance
with standard business practices. All such nominees shall be bonded in such
amounts as may be determined to be advisable by the board. Nothing in this
subsection (6) shall preclude the board or its authorized agents from forming a
corporation described in section 501 (c)(2) and (c)(25) of the federal Internal
Revenue Code of 1986, 26 U.S.C. sec. 501 (c)(2) and (c)(25), as amended, with
respect to the ownership of investments in real property.
(7) The board shall submit an annual audit of the fund to the general
assembly and the annual audit of the fund and annual actuarial study, with
assumptions, to each employer. Each employer shall make the audit and study
available for review by its members. Nothing in this subsection (7) shall be
construed as diminishing the obligation of the board to provide any documentation
required by the state auditor to carry out his or her responsibilities pursuant to
section 2-3-103 (1), C.R.S., regarding state moneys held by the fire and police
pension association.
(8) (a) As used in this subsection (8):
(I) Association means the fire and police pension association.
(II) Investment means the utilization of money or other assets in the
expectation of future returns in the form of income or capital gain.
(III) Investment fiduciary means a person who or entity that exercises any
discretionary authority or control over an investment of the association or renders
investment advice for the association for a fee or other direct or indirect
compensation.
(IV) Investment information means information that has not been publicly
disseminated or that is unavailable from other sources and includes information the
release of which might cause an investment vehicle, an investment manager, a
general partner, a fund sponsor, or an investment fiduciary significant competitive
harm. Investment information includes, but is not limited to, financial performance
data and projections, financial statements, lists of co-investors and their level of
investment, portions of lists of current or projected investment opportunities that
would cause competitive harm, product and market data, rent rolls, leases, other
types of proprietary information, or documents and information that investors are
legally required to maintain as confidential as a condition of performing due
diligence or participating in an investment.
(V) Investment vehicle means an entity in which an investment fiduciary
has made or considered an investment on behalf of the association. Investment
vehicles include but are not limited to sponsored funds, limited partnerships, and
limited liability companies.
(VI) Public record means all or part of a writing, as defined in section 24-72-202 (6), C.R.S.
(b) Subject to paragraph (c) of this subsection (8), a public record received,
prepared, used, or retained by an investment fiduciary in connection with an
investment or potential investment of the association that relates to investment
information pertaining to an investment vehicle in which the investment fiduciary
has invested or has considered an investment or that relates to investment
information whether prepared by or for the investment fiduciary is exempt from the
disclosure requirements of part 2 of article 72 of title 24, C.R.S.
(c) If a public record described in paragraph (b) of this subsection (8) is an
agreement or instrument to which the association is a party, only those parts of the
public record that contain investment information, as defined in subparagraph (IV)
of paragraph (a) of this subsection (8), are exempt from the disclosure
requirements of part 2 of article 72 of title 24, C.R.S.
(d) At least annually the board shall publish and make available to the public
a report of its investments that includes the following:
(I) The name of each investment vehicle in which the association invested
during the reporting period;
(II) The aggregate amount of money invested by the association in
investment vehicles during the reporting period; and
(III) The rate of return realized during the reporting period on the
investments of the association in investment vehicles.