Colorado § 22-41-104 - Lawful investments - legislative declaration.

§ 22-41-104. Lawful investments - legislative declaration.

(1) The state treasurer, as directed by the public school fund investment board, may invest and reinvest money accrued or accruing to the public school fund in the types of deposits and investments authorized in sections 24-36-109, 24-36-112, and 24-36-113, and bonds issued by school districts. The money may also be invested as specified in the public school fund investment board investment policy established as required in section 22-41-102.5 (4)(b); except that investment includes only mutual funds, index funds, and any other instrument that is not a direct investment in a corporation.

(2) The state treasurer has authority, to be exercised at the state treasurer's discretion, to effect exchanges or sales whenever such exchanges or sales will not result in an aggregate loss of principal to the public school fund. An aggregate loss of principal to the public school fund occurs only when an exchange or sale that resulted in an initial loss of principal is not offset by a gain on an exchange or sale in the fund within twenty-four months. The calculation of an aggregate loss must also include any gains that were realized in the twelve months prior to the loss of principal.

(3) (Deleted by amendment, L. 97, p. 375, § 6, effective August 6, 1997.)

(4) The general assembly finds and declares that:

(a) The mission of the public school fund is to support Colorado children and Colorado schools. The strategic investment of capital can achieve positive social outcomes and beneficial financial returns. The fund's intergenerational mission is best served by investing a portion of the fund's corpus in a way that advances clear, meaningful, and measurable outcomes through the community investment portfolio. Investments should be aligned with the fund's mission and should benefit Colorado schools and children.

(b) Investment in communities can lead to increased construction of housing and affordable home ownership for teachers and public school employees, scaling of innovative educational tools, provision of capital for early childhood businesses, and subsidization of school facilities. These investments can improve the lives of Colorado families, increase educational opportunities, and advance the intergenerational mission of the fund.

(c) The public purpose of the community investment portfolio within the public school fund is to amplify the benefit provided to Colorado schools and children by investing in Colorado children, families, and communities.

(d) Investing money in the public school fund into the community investment portfolio complies with the "Uniform Prudent Investor Act", article 1.1 of title 15, and specifically section 15-1.1-102.5, because the assets have a "special relationship or special value" to the purposes of the trust and to one or more of the beneficiaries. Community investments benefit Colorado schoolchildren and advance "the intergenerational benefit of public schools" in accordance with section 22-41-102.5 (3).

(e) Housing developments that include preferences for public school employees promote a substantial, legitimate, and nondiscriminatory state interest that cannot be served by another practice with a less discriminatory effect; do not constitute source of income discrimination under section 24-34-501 (4.5) or 24-34-502; and comply with the federal "Fair Housing Act", 42 U.S.C. sec. 3601 et seq., part 5 of article 34 of title 24, and other state and local laws, ordinances, and resolutions.

(f) The state treasurer may invest in asset classes, including mutual funds and education-related community investments. Investment in these asset classes furthers the mission of the public school fund.

Source: L. 73: R&RE, p. 1241, § 1. C.R.S. 1963: § 123-4-4. L. 77: (2) amended and (3) added, p. 1055, § 2, effective July 15. L. 78: (2) amended, p. 264, § 56, effective May 23, 1979. L. 81: (1)(a) amended, p. 1069, § 1, effective May 21. L. 88: (1)(f) and (1)(g) added, p. 950, § 2, effective March 24. L. 92: (1)(f) amended and (1)(h) to (1)(j) added, p. 1112, § 2, effective July 1. L. 97: IP (1) amended and (1)(c.3) added, p. 852, § 39, effective May 21; entire section amended, p. 375, § 6, effective August 6. L. 2002: (2) amended, p. 1793, § 56, effective June 7. L. 2013: (2) amended, (HB 13-1205), ch. 141, p. 457, § 1, effective August 7. L. 2016: (1) amended, (SB 16-035), ch. 250, p. 1026, § 4, effective August 10. L. 2022: (2) amended, (HB 22-1146), ch. 252, p. 1844, § 2, effective May 26. L. 2025: (1) and (2) amended and (4) added, (SB 25-167), ch. 449, p. 2577, § 3, effective June 4.

Editor's note: Amendments to subsection (1) by Senate Bill 97-206 and Senate Bill 97-150 were harmonized.

Cross references: (1) For provisions for legal investments for governmental units, see § 24-75-601.1.

(2) For the legislative declaration in SB 16-035, see section 1 of chapter 250, Session Laws of Colorado 2016.

ANNOTATION

Annotator's note. Cases relevant to § 22-41-104 decided prior to its earliest source, § 123-4-1, C.R.S. 1963, have been included in the annotations to this section.

For previously permitted investments in loans on cultivated farmlands or ranches, see People ex rel. Miller v. Higgins, 69 Colo. 79, 168 P. 740 (1917).

For previous direction of investments by board of land commissioners, see Denver & R. G. W. R. R. v. Town of Castle Rock, 99 Colo. 340, 62 P.2d 1164 (1936).