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First Regular Session | 75th General Assembly
Colorado General Assembly
HB19-1179

Public Fund Investments

Type Bill
Session 2019 Regular Session
Subjects
Fiscal Policy & Taxes

Concerning the financial risk profiles of legal investments of public funds.

Bill Summary:

Legal investment of public funds - definitions. The act defines a nationally recognized statistical rating organization as a credit rating agency that is registered with the U.S. securities and exchange commission's office of credit ratings and defines a negotiable certificate of deposit as an unsecured noncollateralized obligation of a bank to pay the holder of a negotiable certificate of deposit specified principal, plus interest, upon a particular maturity.

The act also modifies statutes governing the legal investments of public funds as follows:

  • Modifies and standardizes the credit rating requirements for securities invested in by public entities;
  • Requires money market funds invested in by public funds to have an investment policy or objective that seeks to maintain a stable net asset value of one dollar per share;
  • Requires rating requirements to first apply to the security being purchased by a public entity and, if there is no such rating, to then apply to the issuer;
  • Clarifies that negotiable certificates of deposit are a legal investment and not deposits subject to the limitation of the "Public Deposit Protection Act";
  • Includes the secured overnight financing rate, the federal funds rate, or other reference rates that are similar to the United States dollar London interbank offer rate, the secured overnight financing rate, and the federal funds rate as permissible reference rates; and
  • Allows public entities to invest in local government investment pools.
    (Note: This summary applies to this bill as enacted.)

Prime Sponsors

Representative Matt Gray

Representative

Matt Gray

Senator Pete Lee

Senator

Pete Lee

Committees

House

Finance

Senate

Finance

Status

Became Law

Introduced

Passed

Became Law

Related Documents & Information

Date Version Documents
05/23/2019 Signed Act PDF
05/07/2019 Final Act PDF
04/19/2019 Rerevised PDF
04/18/2019 Revised PDF
03/20/2019 Reengrossed PDF
03/19/2019 Engrossed PDF
02/14/2019 Introduced PDF
Date Version Documents
04/17/2019 PA2 PDF
03/15/2019 PA1 PDF
Date Version Documents
09/04/2019 FN2 PDF
02/22/2019 FN1 PDF
Activity Vote Documents
Adopt amendment L.004 (Attachment A) The motion passed without objection. Vote summary
Refer House Bill 19-1179, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. The motion passed on a vote of 7-0. Vote summary
Hearing Summary
|
Committee Report:  PDF
Activity Vote Documents
Adopt amendment L.001 (Attachment A) The motion passed without objection. Vote summary
Adopt amendment L.002 (Attachment B) The motion passed without objection. Vote summary
This is a conceptual amendment to L.003 strike lines 2 and 4 The motion passed without objection. Vote summary
Adopt amendment L.003 (Attachment C) as amended The motion passed without objection. Vote summary
Refer House Bill 19-1179, as amended, to the Committee of the Whole. The motion passed on a vote of 10-0. Vote summary
Hearing Summary
|
Committee Report:  PDF
Date Calendar Motion Vote Vote Document
04/22/2019 Senate Amendments REPASS
63
AYE
1
NO
1
OTHER
 		Vote record
04/22/2019 Senate Amendments CONCUR
58
AYE
6
NO
1
OTHER
 		Vote record
03/20/2019 Third Reading BILL
64
AYE
1
NO
0
OTHER
 		Vote record
Date Calendar Motion Vote Vote Document
04/19/2019 Third Reading BILL
35
AYE
0
NO
0
OTHER
 		Vote record
Date Amendment Number Committee/ Floor Hearing Status Documents
04/16/2019 L.004 SEN Finance Passed [*] PDF
03/14/2019 L.003 HOU Finance Passed [*] PDF
03/14/2019 L.002 HOU Finance Passed [*] PDF
03/14/2019 L.001 HOU Finance Passed [*] PDF

* Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.

** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.

Date Location Action
05/23/2019 Governor Governor Signed
05/07/2019 Governor Sent to the Governor
05/07/2019 Senate Signed by the President of the Senate
05/06/2019 House Signed by the Speaker of the House
04/22/2019 Senate House Considered Senate Amendments - Result was to Concur - Repass
04/19/2019 Senate Senate Third Reading Passed - No Amendments
04/18/2019 Senate Senate Second Reading Passed with Amendments - Committee
04/16/2019 Senate Senate Committee on Finance Refer Amended - Consent Calendar to Senate Committee of the Whole
03/26/2019 Senate Introduced In Senate - Assigned to Finance
03/20/2019 House House Third Reading Passed - No Amendments
03/19/2019 House House Second Reading Passed with Amendments - Committee
03/14/2019 House House Committee on Finance Refer Amended to House Committee of the Whole
02/14/2019 House Introduced In House - Assigned to Finance

Prime Sponsor

Sponsor

Co-Sponsor

Effective Date Chapter # Title Documents
08/02/2019 279 Public Fund Investments PDF

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