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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-1005.01 Rebecca Bayetti x4348 SENATE BILL 26-180
Senate Committees House Committees
Finance
A BILL FOR AN ACT
CONCERNING THE CREATION OF A SPECIAL PURPOSE AUTHORITY TO101
INVEST CERTAIN PUBLIC MONEY , AND , IN CONNECTION102
THEREWITH, CREATING A PROCESS FOR GOVERNMENT ENTITIES103
TO CHOOSE TO HAVE THEIR MONEY INVESTED BY THE104
AUTHORITY AND USING A PORTION OF THE INVESTMENT105
PROCEEDS TO SUPPORT CHILD CARE ASSISTANCE FOR FAMILIES106
WITH LOW INCOMES. 107
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
SENATE SPONSORSHIP
Bright and Marchman,
HOUSE SPONSORSHIP
Garcia and Taggart,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
The bill creates a special purpose authority (investment
performance authority) that is authorized to invest certain public money
from certain special funds, enterprise funds, and funds held by other
special purpose authorities. State and other governmental entities (eligible
entities) may choose to have the investment performance authority invest
their money instead of the state treasurer or other authorized investor,
under certain conditions.
The investment performance authority is governed by a board of
directors made up of the following 7 members:
! The state treasurer or the state treasurer's designee, who
serves as chair of the board;
! The director of the office of state planning and budgeting
or the director's designee;
! An individual with professional experience in managing
federal, state, or local government money or managing the
money of an institution of higher education or other
endowment fund, appointed by the governor;
! 2 individuals with professional experience in investment
consulting or investment management, with one individual
appointed by the speaker of the house of representatives
and one individual appointed by the majority leader of the
senate;
! An individual employed in the child care field, appointed
by the minority leader of the senate; and
! An individual working with a child care advocacy
organization, appointed by the minority leader of the house
of representatives.
The investment performance authority uses the earnings from the
investment of eligible entities' money:
! To quarterly disburse to eligible entities on a pro rata basis;
! To pay the reasonable administrative costs and expenses of
the investment performance authority;
! To create a reserve; and
! To disburse to counties for child care assistance to families
with low incomes according to a formula established in
coordination with the child care assistance program
allocation committee and the department of early
childhood.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 118 to2
SB26-180-2-
title 24 as follows:1
ARTICLE 1182
Investment Performance Authority3
24-118-101. Legislative declaration.4
(1) (a) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:5
(I) C OLORADO'S ECONOMY DEPENDS ON WORKING FAMILIES6
HAVING ACCESS TO AFFORDABLE CHILD CARE. WITHOUT RELIABLE CHILD7
CARE, PARENTS ARE FORCED OUT OF THE WORKFORCE OR INTO PART-TIME8
EMPLOYMENT, UNDERMINING BOTH FAMILY ECONOMIC SECURITY AND THE9
STATE'S LABOR MARKET.10
(II) CHILD CARE PROGRAMS FOR FAMILIES WITH LOW INCOMES IN11
THE STATE ARE LARGELY SUPPORTED THROUGH FEDERAL BLOCK GRANT12
FUNDING, WHICH HAS REMAINED FLAT FOR DECADES AND FAILED TO KEEP13
PACE WITH INFLATION AND THE RISING COST OF CHILD CARE;14
(III) A S A RESULT , THESE PROGRAMS OFTEN LACK SUFFICIENT15
FUNDING TO SERVE ALL ELIGIBLE FAMILIES . FOR EXAMPLE , AS OF16
FEBRUARY 1, 2026, MORE THAN THIRTEEN THOUSAND CHILDREN WERE17
SUBJECT TO ENROLLMENT FREEZES IN PLACE IN NINETEEN COLORADO18
COUNTIES OR WERE ON WAIT LISTS FOR THE COLORADO CHILD CARE19
ASSISTANCE PROGRAM . RURAL COMMUNITIES , IN PARTICULAR , OFTEN20
HAVE FEWER PROVIDERS AND LIMITED CAPACITY, CREATING GEOGRAPHIC21
INEQUITIES BETWEEN FAMILIES WHO CAN BENEFIT FROM CHILD CARE22
PROGRAMS.23
(IV) THE ECONOMIC IMPACT OF INADEQUATELY FUNDING CHILD24
CARE SERVICES FOR WORKING FAMILIES IS SEVERE. ACCORDING TO A 202425
ANALYSIS, COLORADO'S GROSS DOMESTIC PRODUCT LOSES OVER THREE26
BILLION DOLLARS ANNUALLY WHEN PARENTS CANNOT WORK DUE TO LACK27
SB26-180-3-
OF CHILD CARE. THIS FIGURE DOES NOT ACCOUNT FOR LOST CONSUMER1
SPENDING, REDUCED BUSINESS PRODUCTIVITY, OR THE EFFECTS ON LOCAL2
ECONOMIES ACROSS THE STATE.3
(V) WORKING PARENTS WITH LIMITED CHILD CARE OPTIONS OFTEN4
RELY ON FRIEND , FAMILY, OR NEIGHBOR CHILD CARE PROVIDERS , WHO5
SACRIFICE OTHER INCOME-GENERATING OPPORTUNITIES, WHICH FURTHER6
NEGATIVELY IMPACTS COLORADO'S ECONOMY, TO ENSURE THE SAFE CARE7
OF THE CHILDREN IN THEIR LIVES.8
(VI) SAFE, HIGH-QUALITY EARLY CHILDHOOD PROGRAMS PRODUCE9
LONG-TERM OUTCOMES THAT BENEFIT BOTH INDIVIDUALS AND SOCIETY.10
A 2017 ANALYSIS FOUND THAT CHILDREN WHO ATTEND QUALITY EARLY11
CARE PROGRAMS HAVE HIGHER HIGH SCHOOL GR ADUATION RATES AND12
HIGHER EMPLOYMENT LEVELS AS ADULTS . THESE OUTCOMES REDUCE13
FUTURE PUBLIC EXPENDITURES WHILE INCREASING ECONOMIC14
PRODUCTIVITY.15
(b) THEREFORE, THE GENERAL ASSEMBLY FINDS THAT ADDRESSING16
THE FUNDING CRISIS IN THIS AREA REQUIRES A SIGNIFICANT STATE-DRIVEN17
INVESTMENT TO ELIMINATE WAIT LISTS AND ENROLLMENT FREEZES, SERVE18
ELIGIBLE FAMILIES, AND STRENGTHEN COLORADO'S ECONOMY.19
(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:20
(a) G IVEN THE CURRENT GENERAL FUND BUDGETARY21
CONSTRAINTS, AN ALTERNATIVE PATH IS NECESSARY TO PROVIDE SUPPORT22
FOR THE CHILD CARE NEEDS OF WORKING FAMILIES WITH LOW INCOMES IN23
THE STATE AND THAT IT IS PARAMOUNT TO PROVIDE THIS SUPPORT AS24
DIRECTLY AS POSSIBLE TO THOSE FAMILIES;25
(b) T HE MAJORITY OF STATE MONEY IS INVESTED BY THE STATE26
TREASURER IN FIXED-INCOME ASSETS THAT HAVE COMPARATIVELY LOW27
SB26-180-4-
RETURNS; AND1
(c) ALLOWING CERTAIN STATE MONEY TO BE INVESTED IN A MORE2
FLEXIBLE MANNER TO GENERATE BETTER RETURNS PROVIDES AN3
OPPORTUNITY TO MAXIMIZE THE RATE OF RETURN ON PUBLIC MONEY4
WHILE PROVIDING ADDITIONAL SUPPORT DIRECTLY TO LOCAL5
GOVERNMENTS TO ADDRESS THE CHILD CARE NEEDS OF WORKING FAMILIES6
WITH LOW INCOMES.7
24-118-102. Definitions. AS USED IN THIS ARTICLE 118, UNLESS8
THE CONTEXT OTHERWISE REQUIRES:9
(1) "A UTHORITY" MEANS THE INVESTMENT PERFORMANCE10
AUTHORITY CREATED IN THIS ARTICLE 118.11
(2) "B OARD" MEANS THE BOARD OF DIRECTORS OF THE12
AUTHORITY.13
(3) "CHILD CARE ASSISTANCE ALLOCATION COMMITTEE " MEANS14
THE CHILD CARE ASSISTANCE ALLOCATION COMMITTEE CREATED IN15
SECTION 26.5-4-110.16
(4) "D EPARTMENT OF EARLY CHILDHOOD " MEANS THE17
DEPARTMENT OF EARLY CHILDHOOD, CREATED IN SECTION 26.5-1-104.18
(5) "ELIGIBLE ENTITY" MEANS:19
(a) A DEPARTMENT , BOARD , BUREAU , COMMISSION , DIVISION ,20
INSTITUTION, QUASI -GOVERNMENTAL ENTITY , OR OTHER AGENCY OR21
INSTRUMENTALITY OF THE STATE , INCLUDING A STATE INSTITUTION OF22
HIGHER EDUCATION. 23
(b) AN ENTERPRISE, AS DEFINED IN SECTION 24-77-102 (3); OR24
(c) A SPECIAL PURPOSE AUTHORITY , AS DEFINED IN SECTION25
24-77-102 (15)(b).26
(6) "S ECURITY" MEANS A BILL , STOCK , NOTE , BOND , BANKERS '27
SB26-180-5-
ACCEPTANCE, COMMERCIAL PAPER , PROPERTY ASSET , REAL ESTATE1
INVESTMENT TRUST, PRIVATE EQUITY ASSET , REPURCHASE AGREEMENT,2
REVERSE REPURCHASE AGREEMENT , SECURITIES LENDING AGREEMENT ,3
GUARANTEED INVESTMENT CONTRACT , GUARANTEED INTEREST4
CONTRACT, ANNUITY CONTRACT, FUNDING AGREEMENT, CERTIFICATE OF5
INDEBTEDNESS OR OTHER EVIDENCE OF INDEBTEDNESS, INTEREST IN ANY6
SECURITY, OR, IN GENERAL, ANY INTEREST OR INSTRUMENT COMMONLY7
KNOWN AS A "SECURITY" OR ANY CERTIFICATE OF INTEREST OR8
PARTICIPATION IN, TEMPORARY OR INTERIM CERTIFICATE FOR, GUARANTEE9
OF, OR WARRANT OR RIGHT TO SUBSCRIBE TO OR PURCHASE ANY SECURITY. 10
24-118-103. Investment performance authority - creation -11
board.12
(1) T HERE IS CREATED THE INVESTMENT PERFORMANCE13
AUTHORITY. THE AUTHORITY IS A SPECIAL PURPOSE AUTHORITY , AS14
DEFINED IN SECTION 24-77-102 (15), AND IS A BODY CORPORATE AND A15
POLITICAL SUBDIVISION OF THE STATE. THE AUTHORITY IS NOT AN AGENCY16
OF STATE GOVERNMENT AND IS NOT SUBJECT TO ADMINISTRATIVE17
DIRECTION BY ANY DEPARTMENT , COMMISSION , BOARD , BUREAU , OR18
AGENCY OF THE STATE.19
(2) (a) T HE POWERS OF THE AUTHORITY ARE VESTED IN THE20
GOVERNING BODY OF THE AUTHORITY, WHICH IS A BOARD OF DIRECTORS.21
THE BOARD CONSISTS OF THE SEVEN FOLLOWING MEMBERS:22
(I) THE STATE TREASURER OR THE STATE TREASURER'S DESIGNEE,23
WHO SERVES AS CHAIR OF THE BOARD;24
(II) T HE DIRECTOR OF THE OFFICE OF STATE PLANNING AND25
BUDGETING OR THE DIRECTOR'S DESIGNEE;26
(III) A N INDIVIDUAL WITH PROFESSIONAL EXPERIENCE IN27
SB26-180-6-
MANAGING FEDERAL , STATE , OR LOCAL GOVERNMENT MONEY OR1
MANAGING THE MONEY OF AN INSTITUTION OF HIGHER EDUCATION OR2
OTHER ENDOWMENT FUND, APPOINTED BY THE GOVERNOR;3
(IV) T WO INDIVIDUALS WITH PROFESSIONAL EXPERIENCE IN4
INVESTMENT CONSULTING OR INVESTMENT MANAGEMENT , WITH ONE5
INDIVIDUAL APPOINTED BY THE SPEAKER OF THE HOUSE OF6
REPRESENTATIVES AND ONE INDIVIDUAL APPOINTED BY THE MINORITY7
LEADER OF THE SENATE;8
(V) A N INDIVIDUAL EMPLOYED IN THE CHILD CARE FIELD ,9
APPOINTED BY THE MAJORITY LEADER OF THE SENATE; AND10
(VI) A N INDIVIDUAL WORKING WITH A CHILD CARE ADVOCACY11
ORGANIZATION, APPOINTED BY THE MINORITY LEADER OF THE HOUSE OF12
REPRESENTATIVES. 13
(b) (I) APPOINTED MEMBERS OF THE BOARD SERVE THREE -YEAR14
TERMS; EXCEPT THAT THE TERMS OF THE MEMBERS INITIALLY APPOINTED15
BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE MAJORITY16
LEADER OF THE SENATE PURSUANT TO SUBSECTIONS (2)(a)(IV) AND17
(2)(a)(V) OF THIS SECTION IS FOUR YEARS. A MEMBER MAY BE APPOINTED18
FOR NO MORE THAN THREE CONSECUTIVE TERMS. ANY VACANCY MUST BE19
FILLED IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT , FOR THE20
DURATION OF THE UNEXPIRED TERM.21
(II) T HE APPOINTING AUTHORITIES SHALL MAKE THEIR INITIAL22
APPOINTMENTS TO THE BOARD NO LATER THAN THIRTY DAYS AFTER THE23
EFFECTIVE DATE OF THIS SECTION.24
(c) A MEMBER MAY BE REMOVED FROM THE BOARD BY: 25
(I) MAJORITY VOTE OF THE AUTHORITY BOARD FOR MISFEASANCE,26
MALFEASANCE, WILLFUL NEGLECT OF DUTY , OR OTHER CAUSE AFTER27
SB26-180-7-
NOTICE AND A PUBLIC HEARING, UNLESS NOTICE AND A PUBLIC HEARING1
ARE EXPRESSLY WAIVED IN WRITING BY THE MEMBER AT RISK OF BEING2
REMOVED; OR3
(II) THE APPOINTING AUTHORITY FOR CAUSE.4
(d) (I) THE CHAIR OF THE BOARD SHALL CALL THE FIRST MEETING5
OF THE BOARD TO OCCUR NO LATER THAN NINETY DAYS AFTER THE6
EFFECTIVE DATE OF THIS SECTION.7
(II) THE BOARD SHALL MEET AT LEAST QUARTERLY . THE CHAIR8
SHALL SCHEDULE THE MEETINGS OF THE BOARD AND MAY CALL9
ADDITIONAL MEETINGS AS NECESSARY FOR THE BOARD TO COMPLETE ITS10
DUTIES.11
(e) MEMBERS OF THE BOARD SERVE WITHOUT COMPENSATION BUT12
MAY BE REIMBURSED FOR ACTUAL AND REASONABLE EXPENSES INCURRED13
IN THE PERFORMANCE OF THEIR DUTIES.14
(f) (I) ALL MEETINGS OF THE BOARD ARE OPEN TO THE PUBLIC. THE15
BOARD MUST TRANSACT ALL BUSINESS AT A REGULAR OR SPECIAL16
MEETING AT WHICH A QUORUM CONSISTING OF AT LEAST A MAJORITY OF17
THE TOTAL MEMBERSHIP OF THE BOARD IS PRESENT. ANY ACTION OF THE18
BOARD REQUIRES THE AFFIRMATIVE VOTE OF A MAJORITY OF THE19
MEMBERS PRESENT AT THE MEETING.20
(II) ONE OR MORE MEMBERS OF THE BOARD MAY PARTICIPATE IN21
ANY MEETING AND MAY VOTE THROUGH THE USE OF22
TELECOMMUNICATIONS DEVICES, INCLUDING A CONFERENCE TELEPHONE23
OR SIMILAR COMMUNICATIONS EQUIPMENT . PARTICIPATION THROUGH24
TELECOMMUNICATIONS DEVICES CONSTITUTES PRESENCE IN PERSON AT25
THE MEETING. USE OF TELECOMMUNICATIONS FOR PARTICIPATION DOES26
NOT SUPERSEDE ANY REQUIREMENTS FOR OPEN MEETINGS OTHERWISE27
SB26-180-8-
PROVIDED BY LAW.1
(g) A LL PUBLIC RECORDS OF THE BOARD ARE SUBJECT TO THE2
"COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF THIS TITLE3
24. ALL RECORDS ARE SUBJECT TO ANY BUDGET AND AUDIT LAWS4
APPLICABLE TO THE AUTHORITY AND MAY BE SUBJECT TO REGULAR AUDIT5
TO THE EXTENT REQUIRED BY LAW.6
(3) (a) THE BOARD AND ANY EMPLOYEE , AGENT, OR ADVISER OF7
THE AUTHORITY SHALL ACT IN GOOD FAITH AND IN A COMMERCIALLY8
REASONABLE MANNER.9
(b) (I) ANY BOARD MEMBER, EMPLOYEE, AGENT, OR ADVISER OF10
THE AUTHORITY WHO HAS A DIRECT OR INDIRECT INTEREST IN ANY11
CONTRACT, TRANSACTION , OR PROPOSAL WITH THE AUTHORITY SHALL12
DISCLOSE THE INTEREST TO THE AUTHORITY. THE INTEREST MUST BE SET13
FORTH IN THE MINUTES OF THE AUTHORITY , AND A BOARD MEMBER ,14
EMPLOYEE, AGENT , OR ADVISER WHO HAS THE INTEREST SHALL NOT15
PARTICIPATE ON BEHALF OF THE AUTHORITY IN THE AUTHORIZATION OF16
THE CONTRACT, TRANSACTION, OR PROPOSAL.17
(II) F OR PURPOSES OF THIS SUBSECTION (3)(b), THE BOARD18
MEMBER EMPLOYED IN THE CHILD CARE FIELD AS DESCRIBED IN19
SUBSECTION (2)(a)(V) OF THIS SECTION MAY PARTICIPATE IN THE20
AUTHORIZATION OF A CONTRACT , TRANSACTION, OR PROPOSAL UNLESS21
THE BOARD MEMBER IS THE DIRECTOR OR OWNER OF A RELEVANT CHILD22
CARE CENTER.23
(4) THE AUTHORITY MAY HIRE STAFF AND ENTER INTO CONTRACTS24
AS IT DEEMS NECESSARY OR CONVENIENT TO ADMINISTER THIS ARTICLE25
118.26
(5) THE AUTHORITY AND ITS CORPORATE EXISTENCE CONTINUES27
SB26-180-9-
UNTIL TERMINATED BY LAW; EXCEPT THAT A LAW MUST NOT TAKE EFFECT1
SO LONG AS THE AUTHORITY HAS OUTSTANDING OBLIGATIONS UNLESS2
ADEQUATE PROVISION HAS BEEN MADE FOR THE PAYMENT OF THE3
OUTSTANDING OBLIGATIONS. UPON TERMINATION OF THE EXISTENCE OF4
THE AUTHORITY , ALL ITS RIGHTS AND PROPERTIES IN EXCESS OF ITS5
OBLIGATIONS MUST PASS TO AND BE VESTED IN THE STATE.6
(6) T HE INCOME AND REVENUE OF THE AUTHORITY AND ANY7
PROPERTY OWNED BY THE AUTHORITY ARE EXEMPT FROM ALL TAXATION8
AND ASSESSMENTS IN COLORADO.9
24-118-104. Investment performance authority - general10
powers and duties.11
(1) T HE AUTHORITY HAS AND MAY EXERCISE ALL RIGHTS AND12
POWERS NECESSARY OR INCIDENTAL TO, OR IMPLIED FROM, THE SPECIFIC13
POWERS GRANTED IN THIS ARTICLE 118, WHICH SPECIFIC POWERS SHALL14
NOT BE CONSIDERED AS A LIMITATION UPON ANY POWER NECESSARY OR15
APPROPRIATE TO CARRY OUT THE PURPOSES AND INTENT OF THIS ARTICLE16
118. IN ADDITION TO ANY OTHER POWERS GRANTED TO THE AUTHORITY IN17
THIS ARTICLE 118, THE AUTHORITY HAS THE DUTIES , PRIVILEGES ,18
IMMUNITIES, RIGHTS , LIABILITIES , AND DISABILITIES OF A BODY19
CORPORATE AND POLITICAL SUBDIVISION OF THE STATE AND THE DUTIES20
AND POWERS TO:21
(a) HAVE PERPETUAL EXISTENCE AND SUCCESSION;22
(b) ADOPT, ALTER, HAVE, AND USE A SEAL;23
(c) S UE AND BE SUED AND OTHERWISE ASSERT OR DEFEND THE24
AUTHORITY'S LEGAL INTERESTS;25
(d) F IX THE TIME AND PLACE AT WHICH REGULAR AND SPECIAL26
MEETINGS MAY BE HELD;27
SB26-180-10-
(e) A DOPT, AMEND , OR REPEAL BYLAWS , POLICIES , AND1
PROCEDURES CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE 118;2
(f) MAKE BUSINESS DECISIONS TO IMPLEMENT THIS ARTICLE 118;3
(g) MAKE AND EXECUTE AGREEMENTS, CONTRACTS, AND OTHER4
INSTRUMENTS NECESSARY OR CONVENIENT IN THE EXERCISE OF THE5
POWERS AND FUNCTIONS OF THE AUTHORITY PURSUANT TO THIS ARTICLE6
118;7
(h) ACQUIRE OFFICE SPACE, EQUIPMENT, SERVICES, SUPPLIES, AND8
INSURANCE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE9
118;10
(i) A PPOINT OR CONTRACT WITH AGENTS , EMPLOYEES , AND11
PROFESSIONAL AND BUSINESS ADVISERS AS NECESSARY IN THE12
AUTHORITY'S JUDGMENT TO ACCOMPLISH THE PURPOSES OF THIS ARTICLE13
118 AND TO FIX THE COMPENSATION AND ESTABLISH THE DUTIES OF THE14
AGENTS, EMPLOYEES, AND ADVISERS, INCLUDING CONTRACTING WITH THE15
OFFICERS, PERSONNEL, AND CONSULTANTS OF THE STATE TREASURER TO16
PERFORM ANY ACTIVITIES SPECIFIED IN THIS ARTICLE 118;17
(j) INVEST MONEY IN ACCORDANCE WITH SECTION 24-118-105;18
(k) CHARGE TO AND COLLECT FROM ELIGIBLE ENTITIES FEES AND19
CHARGES IN CONNECTION WITH THE AUTHORITY'S INVESTMENT SERVICES,20
INCLUDING FEES AND CHARGES SUFFICIENT TO REIMBURSE THE AUTHORITY21
FOR COSTS NECESSARILY INCURRED BY THE AUTHORITY IN CONNECTION22
WITH CARRYING OUT THE PURPOSE AND INTENT OF THIS ARTICLE 118 AND23
THE ESTABLISHMENT AND MAINTENANCE OF RESERVES OR OTHER MONEY,24
AS THE AUTHORITY MAY DETERMINE TO BE REASONABLE; AND25
(l) CONTRACT FOR AND TO SEEK AND ACCEPT ANY GIFTS, GRANTS,26
OR DONATIONS AND LOANS OF FUNDS , PROPERTY, OR OTHER AID IN ANY27
SB26-180-11-
FORM FROM THE FEDERAL GOVERNMENT, THE STATE, ANY STATE AGENCY,1
ANY OTHER PUBLIC OR PRIVATE SOURCE, OR ANY COMBINATION THEREOF,2
AND TO COMPLY, SUBJECT TO THE PROVISIONS OF THIS ARTICLE 118, WITH3
THE TERMS AND CONDITIONS OF SUCH CONTRACTS OR THE ACCEPTANCE OF4
SUCH ITEMS.5
(2) ANY CONTRACT OR AGREEMENT ENTERED INTO PURSUANT TO6
THIS ARTICLE 118 IS EXEMPT FROM THE "PROCUREMENT CODE", ARTICLES7
101 TO 112 OF THIS TITLE 24. 8
24-118-105. Investment of public money - duties - eligible9
entities - investment options.10
(1) (a) N OTWITHSTANDING ANY PROVISION OF LAW TO THE11
CONTRARY, THE AUTHORITY MAY INVEST MONEY ON BEHALF OF ELIGIBLE12
ENTITIES THAT HAVE CHOSEN TO HAVE THEIR MONEY INVESTED BY THE13
AUTHORITY. THE AUTHORITY MAY POOL MONEY FROM ELIGIBLE ENTITIES14
AND INVEST THE MONEY TO INCREASE THE PERFORMANCE OF THE ELIGIBLE15
ENTITIES' MONEY ACCORDING TO THIS SECTION.16
(b) THE AUTHORITY SHALL ACT AS A PRUDENT INVESTOR AND USE17
CARE TO PRESERVE THE MONEY OF EACH ELIGIBLE ENTITY WHILE ALSO18
ATTEMPTING TO SECURE THE MAXIMUM RATE OF RETURN , CONSIDERING19
THE PROBABLE INCOME AS WELL AS THE PROBABLE SAFETY OF THEIR20
MONEY.21
(c) THE AUTHORITY HAS THE POWER TO:22
(I) I NVEST ANY MONEY NOT REQUIRED FOR IMMEDIATE23
DISBURSEMENT;24
(II) S ELL SECURITIES AND PROPERTY PURCHASED AND HELD BY25
THE AUTHORITY;26
(III) DEPOSIT SECURITIES IN ANY BANK WITHIN OR WITHOUT THE27
SB26-180-12-
STATE; AND1
(IV) INVEST ANY MONEY IN UNSECURED PROMISSORY NOTES OF A2
NATIONAL BANK HAVING THE HIGHEST INVESTMENT RATINGS.3
(2) (a) T HE AUTHORITY SHALL OFFER MULTIPLE INVESTING4
OPTIONS TO ELIGIBLE ENTITIES INCLUDING , AT A MINIMUM , TWO5
INVESTMENT OPTIONS THAT VARY BASED ON DURATION.6
(b) FOR EACH INVESTMENT OPTION THAT THE AUTHORITY OFFERS,7
THE AUTHORITY SHALL DEVELOP A STATEMENT OF THE DETAILS ,8
PURPOSES, AND OBJECTIVES OF THE INVESTMENT OPTION , WHICH9
STATEMENT MUST INCLUDE:10
(I) THE INVESTMENT OBJECTIVES;11
(II) A DESCRIPTION OF ELIGIBLE INVESTMENTS;12
(III) CREDIT STANDARDS FOR INVESTMENTS;13
(IV) ALLOWABLE MATURITY RANGES FOR INVESTMENTS;14
(V) THE PORTFOLIO CONCENTRATIONS PERMITTED FOR EACH TYPE15
OF SECURITY OWNED; AND16
(VI) THE SAFEKEEPING PRACTICES UTILIZED.17
(3) THE AUTHORITY SHALL DEVELOP PROCEDURES OUTLINING:18
(a) MAXIMUM AND MINIMUM ACCOUNT SIZES;19
(b) MAXIMUM AND MINIMUM TRANSACTION SIZES;20
(c) I NSTRUCTIONS FOR ESTABLISHING ACCOUNTS AND MAKING21
DEPOSITS TO AND WITHDRAWALS FROM SUCH ACCOUNTS;22
(d) LIMITATIONS, IF ANY, ON THE AGGREGATE AMOUNT OF MONEY23
THAT THE AUTHORITY MAY INVEST ON BEHALF OF A PARTICIPATING24
ELIGIBLE ENTITY AT ANY ONE TIME;25
(e) PENALTIES UPON PARTICIPATING ELIGIBLE ENTITIES FOR EARLY26
WITHDRAWAL OF MONEY INVESTED BY THE AUTHORITY ON THEIR BEHALF27
SB26-180-13-
AND PROCEDURES FOR RESOLVING OTHER CONTINGENCIES THAT MAY1
JEOPARDIZE THE EARNING POTENTIAL OF AN ACCOUNT;2
(f) D ISBURSEMENT OF THE INCOME FROM THE INVESTMENT OF3
MONEY BY THE AUTHORITY ACCORDING TO THE PROCESS OUTLINED IN4
SECTION 24-118-107;5
(g) A RRANGEMENTS FOR THE CUSTODY , SAFEKEEPING , AND6
REGISTRATION OF ALL INVESTMENT SECURITIES AS THE AUTHORITY DEEMS7
NECESSARY; AND8
(h) I NTERVALS FOR REPORTS TO EACH PARTICIPATING ELIGIBLE9
ENTITY THAT SHOW THE INVESTMENTS AND THE EARNINGS THEREON.10
(4) THE AUTHORITY MAY INVEST IN ANY APPROPRIATE SECURITY,11
IN THE AUTHORITY 'S DISCRETION. THE AUTHORITY MAY INVEST PUBLIC12
MONEY IN SECURITIES AND OTHER INVESTMENTS THAT WOULD NOT13
OTHERWISE BE ALLOWED PURSUANT TO PART 6 OF ARTICLE 75 OF THIS14
TITLE 24 OR ANY OTHER PROVISION OF STATE LAW GOVERNING THE15
INVESTMENT OF PUBLIC MONEY . THE INVESTMENTS MADE BY THE16
AUTHORITY ARE NOT LIMITED TO THOSE INSTRUMENTS IN WHICH THE17
STATE TREASURER OR AN INDIVIDUAL ELIGIBLE ENTITY IS STATUTORILY18
AUTHORIZED TO INVEST.19
(5) THE AUTHORITY MAY CREATE ACCOUNTS AS NECESSARY TO20
ACCOMPLISH THE PURPOSES OF THIS ARTICLE 118. THE AUTHORITY MAY21
ESTABLISH PROCEDURES TO ADMINISTER THE ACCOUNTS IN ACCORDANCE22
WITH THIS ARTICLE 118 AND ANY OTHER APPLICABLE PROVISION OF STATE23
LAW. MONEY IN THE ACCOUNTS MUST BE SECURED IN THE MANNER24
DETERMINED BY THE AUTHORITY AND MAY ONLY BE WITHDRAWN ON THE25
ORDER OF AN INDIVIDUAL AUTHORIZED BY THE AUTHORITY.26
24-118-106. Eligible entities - opt-in to investment of money by27
SB26-180-14-
the authority - conditions.1
(1) A N ELIGIBLE ENTITY THAT MEETS THE REQUIREMENTS SET2
FORTH IN THIS SECTION MAY CHOOSE TO HAVE THE AUTHORITY INVEST3
SOME OR ALL OF THE ELIGIBLE ENTITY 'S MONEY ON BEHALF OF THE4
ELIGIBLE ENTITY , INSTEAD OF THE STATE TREASURER OR OTHER5
AUTHORIZED PERSON, SO LONG AS THE MONEY TO BE INVESTED FROM THAT6
FUND BY THE AUTHORITY ON BEHALF OF THE ELIGIBLE ENTITY MEETS ALL7
OF THE FOLLOWING CONDITIONS:8
(a) THE MONEY IS IN A SPECIAL FUND THAT IS NOT PART OF THE9
GENERAL REVENUES OF THE STATE; 10
(b) W HEN RECEIVED IN THE FUND , THE MONEY DID NOT11
CONSTITUTE STATE FISCAL YEAR SPENDING , AS DEFINED IN SECTION12
24-77-102 (7), FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE13
CONSTITUTION;14
(c) THE MONEY IS A LIQUID ASSET;15
(d) THE MONEY IS UNENCUMBERED;16
(e) INVESTING THE MONEY IS NOT FORECASTED BY THE ELIGIBLE17
ENTITY TO CREATE A NEGATIVE CASH BALANCE IN THE FUND AT ANY TIME18
OVER THE DESIRED INVESTMENT PERIOD; AND19
(f) INVESTING THE MONEY IS NOT FORECASTED BY THE CHAIR OF20
THE BOARD, WHO IS THE STATE TREASURER OR THE STATE TREASURER 'S21
DESIGNEE, TO UNDULY BURDEN THE STATE TREASURER'S POOLED FUNDS. 22
(2) AN ELIGIBLE ENTITY MAY CHOOSE TO HAVE THE AUTHORITY23
INVEST MONEY ON BEHALF OF THE ELIGIBLE ENTITY ONLY UPON APPROVAL24
OF:25
(a) T HE GOVERNING BOARD , LEADERSHIP, OR DIRECTOR OF THE26
ELIGIBLE ENTITY, AS APPROPRIATE; AND27
SB26-180-15-
(b) (I) THE CHAIR OF THE BOARD WHO IS THE STATE TREASURER OR1
THE STATE TREASURER'S DESIGNEE; OR2
(II) T HE MEMBER OF THE BOARD WHO IS THE DIRECTOR OF THE3
OFFICE OF STATE PLANNING AND B UDGETING OR THE DIRECTOR 'S4
DESIGNEE.5
(3) IN CONSULTATION WITH THE AUTHORITY, AN ELIGIBLE ENTITY6
MAY SELECT ANY OF THE AUTHORITY 'S INVESTMENT OFFERINGS FOR ITS7
MONEY.8
24-118-107. Disbursement of investment earnings - eligible9
entities - authority costs - child care assistance.10
(1) I F AVAILABLE , IN THE AUTHORITY 'S DISCRETION , THE11
AUTHORITY SHALL QUARTERLY DISBURSE ON A PRO RATA BASIS TO12
ELIGIBLE ENTITIES EARNINGS FROM THE AUTHORITY 'S INVESTMENT OF13
MONEY ON BEHALF OF THE ELIGIBLE ENTITIES.14
(2) F OR PURPOSES OF DETERMINING THE DISBURSEMENTS15
REQUIRED PURSUANT TO SUBSECTION (1) OF THIS SECTION , THE16
AUTHORITY MAY DEDUCT FROM THE EARNINGS FROM THE AUTHORITY 'S17
INVESTMENT OF MONEY ON BEHALF OF ELIGIBLE ENTITIES AMOUNTS18
ESTABLISHED BY THE AUTHORITY TO:19
(a) P AY THE REASONABLE COSTS AND EXPENSES OF THE20
AUTHORITY RELATED TO THE ADMINISTRATION OF THIS ARTICLE 118, 21
WHICH COSTS MUST NOT EXCEED ONE PERCENT OF THE EARNINGS FROM22
THE AUTHORITY 'S INVESTMENT OF MONEY ON BEHALF OF ELIGIBLE23
ENTITIES;24
(b) RETAIN AS A RESERVE, WHICH THE AUTHORITY MAY USE FOR25
DISBURSEMENTS AS THE BOARD DEEMS NECESSARY AND ACCORDING TO26
THE PROCEDURES ESTABLISHED BY THE BOARD; AND27
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(c) DISBURSE TO COUNTIES FOR CHILD CARE ASSISTANCE AS SET1
FORTH IN SUBSECTION (3) OF THIS SECTION.2
(3) (a) THE AUTHORITY SHALL ESTABLISH, IN COORDINATION WITH3
THE CHILD CARE ASSISTANCE PROGRAM ALLOCATION COMMITTEE AND THE4
DEPARTMENT OF EARLY CHILDHOOD, A FORMULA FOR DISBURSEMENTS TO5
COUNTIES FOR CHILD CARE ASSISTANCE TO FAMILIES WITH LOW INCOMES.6
THE CHILD CARE ASSISTANCE PROGRAM ALLOCATION COMMITTEE AND THE7
DEPARTMENT OF EARLY CHILDHOOD MUST AGREE UPON ANY ADJUSTMENT8
OF THE FORMULA ONCE THE AUTHORITY HAS ESTABLISHED THE FORMULA. 9
(b) THE DEPARTMENT OF EARLY CHILDHOOD AND THE CHILD CARE10
ASSISTANCE ALLOCATION COMMITTEE SHALL , WITHIN EXISTING11
APPROPRIATIONS, PROVIDE CONSULTATION AND SUPPORT TO THE12
AUTHORITY AS NECESSARY TO IMPLEMENT THIS SECTION.13
24-118-108. Startup costs.14
FOR THE PURPOSES OF MEETING THE NECESSARY EXPENSES OF15
INITIAL ORGANIZATION AND OPERATION , UNTIL THE AUTHORITY16
OTHERWISE DERIVES SUFFICIENT MONEY PURSUANT TO THIS ARTICLE 118,17
THE AUTHORITY OR THE DEPARTMENT OF THE TREASURY MAY SEEK ,18
ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS FROM PRIVATE OR19
PUBLIC SOURCES OR BORROW MONEY AS MAY BE REQUIRED FOR THE20
NECESSARY EXPENSES OF ORGANIZATION AND OPERATION OF THE21
AUTHORITY, INCLUDING BORROWING FROM FEE REVENUE GENERATED22
PURSUANT TO SECTION 24-36-120. THE AUTHORITY SHALL REPAY THE23
BORROWED MONEY WITHIN A REASONABLE TIME AFTER THE AUTHORITY24
RECEIVES MONEY PROVIDED PURSUANT TO THIS ARTICLE 118.25
24-118-109. Annual report - money and activities subject to26
audit.27
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(1) T HE AUTHORITY SHALL SUBMIT AN ANNUAL REPORT OF ITS1
ACTIVITIES TO THE GOVERNOR AND THE JOINT BUDGET COMMITTEE OF THE2
GENERAL ASSEMBLY NOT LATER THAN SEPTEMBER 30 OF EACH YEAR ,3
BEGINNING IN 2028. THE REPORT MUST SET FORTH A COMPLETE4
OPERATING AND FINANCIAL STATEMENT COVERING THE PREVIOUS STATE5
FISCAL YEAR.6
(2) ALL MONEY AND ACTIVITIES OF THE AUTHORITY , INCLUDING7
ITS RECEIPTS , DISBURSEMENTS , CONTRACTS , LEASES , MONEY ,8
INVESTMENTS, AND ANY OTHER RECORDS AND PAPERS RELATING TO ITS9
FINANCIAL STANDING , ARE SUBJECT TO ANNUAL AUDIT , AT THE10
AUTHORITY'S EXPENSE , ACCORDING TO THE PROVISIONS OF PART 6 OF11
ARTICLE 1 OF TITLE 29.12
24-118-110. Liability of authority - prohibited acts.13
(1) A BOARD MEMBER OR ANY EMPLOYEE, OFFICER, OR AGENT OF14
THE AUTHORITY WHO, IN THE GOOD FAITH PERFORMANCE OF THEIR DUTIES,15
COMPLIES WITH THE STANDARDS ESTABLISHED IN THIS ARTICLE 118 FOR16
THE INVESTMENT OF MONEY FROM ELIGIBLE ENTITIES SHALL NOT BE17
LIABLE FOR THE LOSS OF PUBLIC MONEY RESULTING FROM SUCH18
INVESTMENT.19
(2) A BOARD MEMBER OR ANY EMPLOYEE, OFFICER, OR AGENT OF20
THE AUTHORITY SHALL NOT , DIRECTLY OR INDIRECTLY , ACCEPT OR21
RECEIVE FROM ANY OTHER PERSON, FOR THEMSELF OR OTHERWISE THAN22
ON BEHALF OF THE AUTHORITY, ANY FEE, REWARD, OR COMPENSATION IN23
CONSIDERATION OF THE INVESTMENT OF PUBLIC MONEY OR IN24
CONSIDERATION OF ANY AGREEMENT OR ARRANGEMENT TOUCHING UPON25
THE USE OF THE INCOME FROM SUCH INVESTMENT.26
SECTION 2. In Colorado Revised Statutes, 24-77-102, amend27
SB26-180-18-
(15)(b)(XXI) and (15)(b)(XXII); and add (15)(b)(XXIII) as follows:1
24-77-102. Definitions.2
As used in this article 77, unless the context otherwise requires:3
(15) (b) "Special purpose authority" includes, but is not limited to:4
(XXI) The equal justice authority created in section 13-5.7-202;5
and6
(XXII) The building urgent infrastructure and leveraging dollars7
authority created in section 24-117-104 (1); AND8
(XXIII) THE INVESTMENT PERFORMANCE AUTHORITY CREATED IN9
SECTION 24-118-103.10
SECTION 3. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly (August13
12, 2026, if adjour nment sine die is on May 13, 2026); except that, if a14
referendum petition is filed pursuant to section 1 (3) of article V of the15
state constitution against this act or an item, section, or part of this act16
within such period, then the act, item, section, or part will not take effect17
unless approved by the people at the general election to be held in18
November 2026 and, in such case, will take effect on the date of the19
official declaration of the vote thereon by the governor.20
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