1. (1)

   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.

   2. (b)

      1. (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:

         1. (A) Had received compensation for investment banking services within the most recent twelve months; or
         2. (B) May receive compensation for investment banking services within the next three consecutive months.
      2. (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. (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.
3. (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.
4. (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.
5. (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.
6. (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.
7. (3.7) Repealed.
8. (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.
9. (3.9) Repealed.
10. (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.
11. (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.
12. (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.
13. (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.
14. (7) Repealed.

15. (8)

    1. (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.

    2. (b)

       1. (I)

          1. (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.
          2. (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.
       2. (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.
       3. (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.
       4. (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.
       5. (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.

Source: L. 71: R&RE, p. 99, § 1. C.R.S. 1963: § 3-6-13. L. 73: p. 171, § 2. L. 77: (4) amended and (5) added, p. 1059, § 2, effective June 1. L. 81: (2) amended, p. 1070, §§ 5, 6, effective May 21. L. 88: (3) amended and (3.5) and (3.6) added, p. 950, § 3, effective March 24. L. 92: (3), (3.5), and (3.6) amended and (3.7) added, p. 1113, § 3, effective July 1. L. 97: Entire section amended, p. 373, § 5, effective August 6. L. 99: (6) added, p. 1405, § 4, effective June 5. L. 2003: (7) added, p. 462, § 3, effective March 5; (1) amended, p. 674, § 2, effective August 6. L. 2008: (5) amended, p. 1315, § 2, effective May 27. L. 2013: (1)(a) and (3.6) amended and (2.5) added, (HB 13-1205), ch. 141, p. 457, § 2, effective August 7; (3.9) added, (SB 13-176), ch. 167, p. 547, § 2, effective August 7. L. 2016: (7) repealed, (HB 16-1408), ch. 153, p. 472, § 26, effective July 1. L. 2018: (3.7) and (3.9) repealed and (6.1) added, (HB 18-1402), ch. 391, p. 2343, § 1, effective August 8. L. 2025: (8) added, (SB 25-006), ch. 192, p. 856, § 2, effective May 15.

Cross references: (1) For the federal Investment Company Act of 1940, see 15 U.S.C. sec. 80a-1 et seq.

(2) For the legislative declaration in the 2013 act adding subsection (3.9), see section 1 of chapter 167, Session Laws of Colorado 2013. For the legislative declaration in SB 25-006, see section 1 of chapter 192, Session Laws of Colorado 2025.