Text of CO HB 1092 (2023)

First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0289.01 Zach Blaes x4348 HOUSE BILL 23-1092 House Committees Senate Committees Finance A BILL FOR AN ACT CONCERNING LIMITATIONS ON THE USE OF STATE MONEY, AND, IN 101 CONNECTION THEREWITH, REQUIRING THE PUBLIC EMPLOYEES' 102 RETIREMENT ASSOCIATION TO MAKE INVESTMENTS SOLELY ON 103 FINANCIAL FACTORS, PROHIBITING CERTAIN GOVERNMENT 104 CONTRACTS WITH ENTITIES THAT ENGAGE IN ECONOMIC 105 BOYCOTTS, AND REQUIRING THE STATE TREASURER TO INVEST 106 MONEY ELIGIBLE FOR INVESTMENT SOLELY ON FINANCIAL 107 FACTORS. 108 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 HOUSE SPONSORSHIP Bockenfeld, SENATE SPONSORSHIP (None), 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. http://leg.colorado.gov.) The bill prohibits state money from being used to further certain social, political, or ideological interests beyond what controlling state and federal law require. Sections 1 to 3 of the bill apply this prohibition to the public employees' retirement association (PERA) by requiring PERA to make investments solely on financial factors and prohibiting PERA from investing in an entity with a stated purpose to further certain social, political, or ideological interests beyond what federal and state law require (nonfinancial commitment). Section 1 also: ! Requires that PERA ensure that a designated agent commits to following guidelines that match PERA's obligation to act solely on financial factors prior to PERA entrusting member funds to the designated agent; ! Requires that a designated agent ensure that a proxy advisor or other service provider has committed to following guidelines that match PERA's obligation to act solely on financial factors prior to the designated agent following a recommendation of the proxy advisor or service provider; and ! Gives the attorney general the authority to enforce these investment requirements. Section 2 requires PERA to invest solely in the financial interest of PERA members and beneficiaries. Section 3 clarifies that the fiduciary duties of PERA's board of trustees include the obligation to act in the financial interest of PERA members and benefit recipients. Section 4 requires a government contract to include a verification that a company entering into a government contract does not, and will not during the term of the contract, engage in an economic boycott of another company to further certain social, political, or ideological interests. Section 4 prohibits a person from penalizing a financial institution for complying with the non-economic boycott verification requirement. Section 4 also gives the attorney general the authority to enforce the newly created article. Section 5 requires the state treasurer to make investments solely on financial factors, prohibits the state treasurer from investing in entities with a stated nonfinancial commitment, and gives the attorney general authority to enforce these investment requirements. Sections 6 to 10 make conforming amendments. Be it enacted by the General Assembly of the State of Colorado: 1 SECTION 1. In Colorado Revised Statutes, 24-51-206, add (4) 2 HB23-1092 -2- as follows: 1 24-51-206. Investments - definitions. (4) (a) AS USED IN THIS 2 SUBSECTION (4), UNLESS THE CONTEXT OTHERWISE REQUIRES: 3 (I) "FINANCIAL" MEANS HAVING A MATERIAL EFFECT ON THE 4 FINANCIAL RISK OR FINANCIAL RETURN OF AN INVESTMENT. 5 (II) "NONFINANCIAL" MEANS IN FURTHERANCE OF SOCIAL, 6 POLITICAL, OR IDEOLOGICAL INTERESTS BEYOND WHAT CONTROLLING 7 FEDERAL AND STATE LAW REQUIRE, INCLUDING: 8 (A) ELIMINATING, REDUCING, OFFSETTING, OR DISCLOSING 9 GREENHOUSE GAS EMISSIONS; 10 (B) INSTITUTING OR ASSESSING CORPORATE BOARD, EMPLOYMENT, 11 COMPOSITION, COMPENSATION, OR DISCLOSURE CRITERIA THAT 12 INCORPORATES CHARACTERISTICS PROTECTED IN THIS STATE PURSUANT TO 13 THE ANTI-DISCRIMINATION PROVISIONS DESCRIBED IN SECTION 24-34-601; 14 (C) DIVESTING FROM, LIMITING INVESTMENT IN, OR LIMITING THE 15 ACTIVITIES OR INVESTMENTS OF ANY COMPANY FOR FAILING TO OR NOT 16 COMMITTING TO MEET ENVIRONMENTAL STANDARDS OR DISCLOSURES; 17 (D) FACILITATING ACCESS TO AN ABORTION, A SEX OR GENDER 18 CHANGE, OR A TRANSGENDER SURGERY; OR 19 (E) DIVESTING FROM, LIMITING INVESTMENT IN, OR LIMITING THE 20 ACTIVITIES OR INVESTMENTS OF ANY COMPANY FOR ENGAGING IN, 21 FACILITATING, OR SUPPORTING FIREARM MANUFACTURING, FIREARM 22 DISTRIBUTION, FIREARM SALES, OR FIREARM USE. 23 (III) "STATED NONFINANCIAL COMMITMENT" MEANS HAVING A 24 COMMITMENT TO FURTHER ONE OR MORE OF THE PURPOSES IDENTIFIED IN 25 SUBSECTION (4)(a)(II) OF THIS SECTION AS EVIDENCED BY ANY ENTITY'S: 26 (A) ADVERTISING, STATEMENTS, EXPLANATIONS, REPORTS, 27 HB23-1092 -3- LETTERS TO CLIENTS, COMMUNICATIONS WITH PORTFOLIO COMPANIES, 1 STATEMENTS OF PRINCIPLES, OR COMMITMENTS; OR 2 (B) PARTICIPATION IN, AFFILIATION WITH, OR STATUS AS A 3 SIGNATORY TO ANY COALITION, INITIATIVE, JOINT STATEMENT OF 4 PRINCIPLES, OR AGREEMENT. 5 (b) IN MAKING INVESTMENTS, THE BOARD AND ANY DESIGNATED 6 AGENT OF THE BOARD SHALL TAKE INTO ACCOUNT ONLY FINANCIAL 7 FACTORS. 8 (c) UNLESS NO ECONOMICALLY PRACTICABLE ALTERNATIVE IS 9 AVAILABLE, THE BOARD AND ANY DESIGNATED AGENT OF THE BOARD 10 SHALL NOT INVEST IN AN ENTITY THAT HAS A STATED NONFINANCIAL 11 COMMITMENT. 12 (d) UNLESS NO ECONOMICALLY PRACTICABLE ALTERNATIVE IS 13 AVAILABLE, WHEN THE BOARD ENTRUSTS ASSOCIATION ASSETS TO A 14 DESIGNATED AGENT FOR INVESTMENT PURPOSES, THE BOARD MUST 15 ENSURE THAT THE DESIGNATED AGENT HAS A PRACTICE OF, AND IN 16 WRITING, COMMITS TO, FOLLOWING GUIDELINES THAT MATCH THE BOARD'S 17 DUTY TO TAKE INTO ACCOUNT ONLY FINANCIAL FACTORS WHEN MAKING 18 INVESTMENTS. 19 (e) A DESIGNATED AGENT OF THE BOARD MAY FOLLOW A 20 RECOMMENDATION OF A PROXY ADVISOR OR SERVICE PROVIDER ONLY IF 21 THE PROXY ADVISOR OR SERVICE PROVIDER HAS A PRACTICE OF, AND IN 22 WRITING COMMITS TO, FOLLOWING GUIDELINES THAT MATCH THE BOARD'S 23 DUTY TO TAKE INTO ACCOUNT ONLY FINANCIAL FACTORS WHEN MAKING 24 INVESTMENTS. 25 (f) IF THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO 26 BELIEVE THAT AN ENTITY HAS ENGAGED IN, IS ENGAGING IN, OR IS ABOUT 27 HB23-1092 -4- TO ENGAGE IN A VIOLATION OF THIS SUBSECTION (4), THE ATTORNEY 1 GENERAL MAY ENFORCE THIS SUBSECTION (4) BY: 2 (I) REQUIRING AN ENTITY IN VIOLATION OF THIS SUBSECTION (4) 3 TO FILE A STATEMENT OR REPORT IN WRITING, UNDER OATH, AS TO ALL THE 4 FACTS AND CIRCUMSTANCES CONCERNING THE VIOLATION AND ANY OTHER 5 DATA AND INFORMATION THE ATTORNEY GENERAL DEEMS NECESSARY; 6 (II) EXAMINING UNDER OATH ANY ENTITY IN CONNECTION WITH A 7 VIOLATION OF THIS SUBSECTION (4); 8 (III) EXAMINING ANY RECORD, BOOK, DOCUMENT, ACCOUNT, OR 9 PAPER THE ATTORNEY GENERAL DEEMS NECESSARY; 10 (IV) BRINGING AN ACTION IN THE DENVER DISTRICT COURT FOR 11 INJUNCTIVE OR OTHER APPROPRIATE RELIEF, INCLUDING THE RECOVERY OF 12 DAMAGES IN AN AMOUNT EQUAL TO THREE TIMES THE AMOUNT THE 13 BOARD PAID FOR THE SERVICES OF THE ENTITY IN VIOLATION OF THIS 14 SUBSECTION (4); AND 15 (V) PURSUANT TO AN ORDER OF THE DISTRICT COURT, IMPOUNDING 16 ANY RECORD, BOOK, DOCUMENT, ACCOUNT, PAPER, SAMPLE, OR OTHER 17 MATERIAL RELATING TO A VIOLATION OF THIS SUBSECTION (4) AND 18 RETAINING THE SAME IN THE ATTORNEY GENERAL'S POSSESSION UNTIL THE 19 COMPLETION OF THE ATTORNEY GENERAL'S ENFORCEMENT UNDER THIS 20 SUBSECTION (4). 21 SECTION 2. In Colorado Revised Statutes, 24-51-204, add (3.5) 22 as follows: 23 24-51-204. Duties of the board. (3.5) WHEN INVESTING MONEY 24 DIRECTLY, OR INDIRECTLY, OR ON BEHALF OF EITHER THE ASSOCIATION, 25 THE MEMBERS, OR THE BENEFIT RECIPIENTS, THE BOARD SHALL INVEST THE 26 MONEY SOLELY IN THE FINANCIAL, AS DEFINED IN SECTION 24-51-206 27 HB23-1092 -5- (4)(a)(I), INTEREST OF THE MEMBERS AND BENEFIT RECIPIENTS. 1 SECTION 3. In Colorado Revised Statutes, 24-51-207, amend 2 (2)(a) as follows: 3 24-51-207. Standard of conduct. (2) (a) As fiduciaries, such 4 trustees THE TRUSTEES OF THE BOARD shall carry out their functions solely 5 in the FINANCIAL, AS DEFINED IN SECTION 24-51-206 (4)(a)(I), interest of 6 the members and benefit recipients and for the exclusive purpose of 7 providing benefits and defraying reasonable expenses incurred in 8 performing such duties as required by law. The trustees shall act in 9 accordance with the provisions of this article and with the care, skill, 10 prudence, and diligence in light of the circumstances then prevailing that 11 a prudent person acting in a like capacity and familiar with such matters 12 would use in the conduct of an enterprise of a like character and with like 13 aims by diversifying the investments of the association AND BY TAKING 14 INTO ACCOUNT ONLY FINANCIAL FACTORS so as to minimize the risk of 15 large losses, unless in light of such THE circumstances it is clearly prudent 16 not to do so. 17 SECTION 4. In Colorado Revised Statutes, add article 116 to 18 title 24 as follows: 19 ARTICLE 116 20 Economic Boycotts Prohibited 21 24-116-101. Legislative declaration. (1) THE GENERAL 22 ASSEMBLY FINDS AND DECLARES THAT: 23 (a) NUMEROUS ESSENTIAL AMERICAN INDUSTRIES, INCLUDING 24 FOSSIL FUEL PRODUCTION, AGRICULTURE, TIMBER PRODUCTION, AND 25 FIREARMS, ARE BEING TARGETED FOR BOYCOTTING, DIVESTING, AND 26 SANCTIONING BY LARGE CORPORATIONS AND PRIVATE INSTITUTIONAL 27 HB23-1092 -6- INVESTORS; 1 (b) THE GOAL OF THESE COLLUDING PARTIES IS TO STARVE 2 TARGETED LEGAL INDUSTRIES OF CAPITAL, RESTRICT THEIR PRODUCTIVITY, 3 AND REDIRECT THAT CAPITAL TO FAVORED INDUSTRIES; 4 (c) THESE PARTIES ARE WORKING IN CONCERT WITH MANY STATE 5 AND FEDERAL LAWMAKERS AND REGULATORS, AS EVIDENCED MOST 6 RECENTLY BY NEW CLIMATE DISCLOSURE RULES FROM THE SECURITIES 7 AND EXCHANGE COMMISSION; 8 (d) RESTRICTING THE SUPPLY OF ENERGY AND OTHER ESSENTIAL 9 COMMODITIES WITHOUT EFFECTIVE SUBSTITUTES FOR THOSE COMMODITIES 10 ONLY SERVES TO RAISE PRICES ON CONSUMERS, PROFOUNDLY IMPACTING 11 THE POOREST AMONG US; 12 (e) DENYING FINANCING TO AMERICAN COMPANIES, THAT ARE 13 AMONG THE MOST SOCIALLY AND ENVIRONMENTALLY RESPONSIBLE 14 COMPANIES IN THE WORLD, ONLY SERVES TO SUPPORT HOSTILE NATIONS 15 AND LESS RESPONSIBLE PRODUCERS; 16 (f) BANKS AND INSURANCE COMPANIES ARE INCREASINGLY 17 DENYING FINANCING TO CREDITWORTHY COMPANIES TO MARKET THEIR 18 ENVIRONMENTAL CREDENTIALS TO THE DETRIMENT OF CONSUMERS, 19 SHAREHOLDERS, AND SOCIETY; 20 (g) INSTITUTIONAL INVESTORS ARE DIVESTING FROM ENTIRE 21 INDUSTRIES AND PRESSURING CORPORATIONS TO COMMIT TO 22 ENVIRONMENTAL GOALS, SUCH AS REDUCING GREENHOUSE GAS EMISSIONS 23 TO ZERO BY 2050, TO BURNISH THEIR ENVIRONMENTAL CREDENTIALS OR 24 PROMOTE THEIR OWN ENVIRONMENTAL, SOCIAL, AND GOVERNANCE FUNDS 25 AT THE EXPENSE OF INVESTOR RETURNS; 26 (h) LARGE INVESTMENT FIRMS, THROUGH THEIR PROXY VOTES ON 27 HB23-1092 -7- SHAREHOLDER RESOLUTIONS AND BOARD ELECTIONS, ARE COLLUDING TO 1 FORCE COMPANIES TO DIRECT MONEY, TIME, AND ATTENTION AWAY FROM 2 THEIR CORE RESPONSIBILITY OF INCREASING SHAREHOLDER RETURNS, 3 DRIVING CAPITAL ALLOCATION DECISIONS AND POLITICAL CHANGE 4 OUTSIDE THE DEMOCRATIC PROCESS; 5 (i) CORPORATIONS ARE BOYCOTTING AND SANCTIONING ESSENTIAL 6 LEGAL INDUSTRIES, SUCH AS FOSSIL FUEL AND AGRICULTURE PRODUCERS, 7 BY DENYING THEM CAPITAL, REFUSING TO PROVIDE THEM WITH PRODUCTS 8 OR SERVICES, AND IMPOSING UNDUE BURDENS ON THEM; 9 (j) THE COLLUSION OF CORPORATIONS AND INSTITUTIONS TO 10 BOYCOTT, DIVEST FROM, OR SANCTION ANY INDUSTRY MAY VIOLATE 11 EXISTING ANTITRUST AND FIDUCIARY DUTY LAWS AND HARMS 12 CONSUMERS, SHAREHOLDERS, AND THIS STATE; AND 13 (k) STATES, WHEN FINANCIALLY PRUDENT, SHOULD AVOID DOING 14 BUSINESS WITH COMPANIES THAT ENGAGE IN SUCH POTENTIALLY ILLEGAL 15 CONDUCT, AND THREATEN HARM TO THIS STATE, ITS BUSINESSES, AND 16 CITIZENS. 17 24-116-102. Definitions. AS USED IN THIS ARTICLE, UNLESS THE 18 CONTEXT OTHERWISE REQUIRES: 19 (1) "COMPANY" MEANS A FOR-PROFIT ORGANIZATION, 20 ASSOCIATION, CORPORATION, PARTNERSHIP, JOINT VENTURE, LIMITED 21 PARTNERSHIP, LIMITED LIABILITY PARTNERSHIP, OR LIMITED LIABILITY 22 COMPANY, INCLUDING A WHOLLY OWNED SUBSIDIARY, MAJORITY-OWNED 23 SUBSIDIARY, PARENT COMPANY, OR AFFILIATE OF THOSE ENTITIES OR 24 BUSINESS ASSOCIATIONS, BUT NOT INCLUDING A SOLE PROPRIETORSHIP. 25 (2) "ECONOMIC BOYCOTT" MEANS, WITH A NONBUSINESS PURPOSE, 26 REFUSING TO DEAL WITH, TERMINATING BUSINESS ACTIVITIES WITH, OR 27 HB23-1092 -8- OTHERWISE TAKING ANY COMMERCIAL ACTION THAT IS INTENDED TO 1 PENALIZE, INFLICT ECONOMIC HARM ON, LIMIT COMMERCIAL RELATIONS 2 WITH, OR CHANGE OR LIMIT THE ACTIVITIES OF A COMPANY BECAUSE THE 3 COMPANY, WITHOUT VIOLATING CONTROLLING FEDERAL OR STATE LAW: 4 (a) ENGAGES IN FOSSIL FUEL-BASED ENERGY, TIMBER, MINING OR 5 AGRICULTURE ACTIVITIES, INCLUDING EXPLORING, PRODUCING, UTILIZING, 6 SELLING, OR MANUFACTURING FOSSIL FUEL-BASED ENERGY, TIMBER, 7 MINING, OR AGRICULTURE; 8 (b) ENGAGES IN, FACILITATES, OR SUPPORTS FIREARM 9 MANUFACTURING, DISTRIBUTION, SALES, OR USES; 10 (c) DOES NOT MEET, IS NOT EXPECTED TO MEET, OR DOES NOT 11 COMMIT TO MEET ENVIRONMENTAL STANDARDS OR DISCLOSURE CRITERIA 12 FOR ELIMINATING, REDUCING, OFFSETTING, OR DISCLOSING GREENHOUSE 13 GAS EMISSIONS; 14 (d) DOES NOT MEET, IS NOT EXPECTED TO MEET, OR DOES NOT 15 COMMIT TO MEET CORPORATE BOARD, EMPLOYMENT, COMPOSITION, 16 COMPENSATION, OR DISCLOSURE CRITERIA THAT PROMOTE DIVERSITY 17 BASED ON CHARACTERISTICS PROTECTED IN THIS STATE PURSUANT TO THE 18 ANTI-DISCRIMINATION PROVISIONS DESCRIBED IN SECTION 24-34-601; 19 (e) DOES NOT FACILITATE, IS NOT EXPECTED TO FACILITATE, OR 20 DOES NOT COMMIT TO FACILITATE ACCESS TO AN ABORTION, A SEX OR 21 GENDER CHANGE, OR A TRANSGENDER SURGERY; OR 22 (f) DOES BUSINESS WITH A COMPANY DESCRIBED IN THIS 23 SUBSECTION (2). 24 (3) "GOVERNMENTAL ENTITY" MEANS A STATE AGENCY OR 25 POLITICAL SUBDIVISION OF THIS STATE. 26 (4) "NONBUSINESS PURPOSE" MEANS A PURPOSE TO FURTHER 27 HB23-1092 -9- SOCIAL, POLITICAL, OR IDEOLOGICAL INTERESTS. A COMPANY MAY 1 REASONABLY BE DETERMINED TO HAVE TAKEN AN ACTION, OR 2 CONSIDERED A FACTOR, WITH A PURPOSE TO FURTHER SOCIAL, POLITICAL, 3 OR IDEOLOGICAL INTERESTS, BASED ON: 4 (a) BRANDING ADVERTISING, STATEMENTS, EXPLANATIONS, 5 REPORTS, LETTERS TO CLIENTS, COMMUNICATIONS WITH PORTFOLIO 6 COMPANIES, STATEMENTS OF PRINCIPLES, OR COMMITMENTS; OR 7 (b) PARTICIPATION IN, AFFILIATION WITH, OR STATUS AS A 8 SIGNATORY TO ANY COALITION, INITIATIVE, JOINT STATEMENT OF 9 PRINCIPLES, OR AGREEMENT. 10 24-116-103. Required verification for state contracts - 11 applicability. (1) (a) A GOVERNMENTAL ENTITY MAY NOT ENTER INTO A 12 CONTRACT WITH A COMPANY FOR GOODS OR SERVICES UNLESS THE 13 CONTRACT CONTAINS A WRITTEN VERIFICATION THAT THE CONTRACTING 14 COMPANY: 15 (I) DOES NOT ENGAGE IN ECONOMIC BOYCOTTS; AND 16 (II) WILL NOT ENGAGE IN AN ECONOMIC BOYCOTT DURING THE 17 TERM OF THE CONTRACT. 18 (b) THIS SECTION DOES NOT APPLY TO A GOVERNMENTAL ENTITY 19 THAT DETERMINES THAT THE REQUIREMENTS OF THIS SECTION: 20 (I) ARE INCONSISTENT WITH THE GOVERNMENTAL ENTITY'S 21 CONSTITUTIONAL OR STATUTORY DUTIES RELATED TO THE ISSUANCE, 22 INCURRENCE, OR MANAGEMENT OF DEBT OBLIGATIONS; 23 (II) ARE INCONSISTENT WITH THE GOVERNMENTAL ENTITY'S 24 CONSTITUTIONAL OR STATUTORY DUTIES RELATED TO THE DEPOSIT, 25 CUSTODY, MANAGEMENT, BORROWING, OR INVESTMENT OF MONEY; OR 26 (III) PREVENT THE GOVERNMENTAL ENTITY FROM OBTAINING THE 27 HB23-1092 -10- CONTRACTED SUPPLIES OR SERVICES IN AN ECONOMICALLY PRACTICABLE 1 MANNER. 2 (2) THIS SECTION APPLIES ONLY TO A CONTRACT THAT: 3 (a) IS BETWEEN A GOVERNMENTAL ENTITY AND A COMPANY WITH 4 TEN OR MORE FULL-TIME EMPLOYEES; AND 5 (b) PAYS A COMPANY ONE HUNDRED THOUSAND DOLLARS OR MORE 6 OVER THE TERM OF THE CONTRACT AND WHOLLY OR PARTLY FROM STATE 7 MONEY OF THE GOVERNMENTAL ENTITY. THE PROVISIONS OF THIS 8 SUBSECTION (2)(b) APPLY TO ALL COMPANIES IN A MULTIPLE-PARTY 9 CONTRACT. 10 24-116-104. Interference with state contracts. (1) A PERSON 11 SHALL NOT INTERFERE WITH A CONTRACT SUBJECT TO THIS ARTICLE 116 12 BY TAKING ACTION TO PENALIZE OR THREATEN TO PENALIZE ANY 13 FINANCIAL INSTITUTION FOR COMPLIANCE WITH THIS ARTICLE 116. 14 (2) ANY PERSON WHO TAKES ACTION DESCRIBED IN SUBSECTION 15 (1) OF THIS SECTION WILL HAVE CAUSED HARM TO THE STATE, INCLUDING 16 BY INTERFERING WITH THE STATE'S SOVEREIGN INTERESTS IN 17 ADMINISTERING STATE PROGRAMS AND INTERFERING WITH THE STATE'S 18 COMMERCIAL RELATIONSHIP WITH FINANCIAL INSTITUTIONS. 19 24-116-105. Enforcement. (1) THE ATTORNEY GENERAL MAY 20 ENFORCE THIS ARTICLE 116 OR ANY CONTRACT SUBJECT TO THIS ARTICLE 21 116. 22 (2) IF THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO 23 BELIEVE THAT AN ENTITY HAS ENGAGED IN, IS ENGAGING IN, OR IS ABOUT 24 TO ENGAGE IN, A VIOLATION OF THIS ARTICLE 116, THE ATTORNEY 25 GENERAL MAY: 26 (a) REQUIRE THE ENTITY TO FILE A STATEMENT OR REPORT IN 27 HB23-1092 -11- WRITING, UNDER OATH, AS TO ALL THE FACTS AND CIRCUMSTANCES 1 CONCERNING THE VIOLATION AND SUCH OTHER DATA AND INFORMATION 2 AS THE ATTORNEY GENERAL DEEMS NECESSARY; 3 (b) EXAMINE UNDER OATH ANY ENTITY IN CONNECTION WITH A 4 VIOLATION OF THIS ARTICLE 116; 5 (c) EXAMINE ANY RECORD, BOOK, DOCUMENT, ACCOUNT, OR 6 PAPER THE ATTORNEY GENERAL DEEMS NECESSARY; 7 (d) BRING AN ACTION IN THE DENVER DISTRICT COURT FOR 8 INJUNCTIVE OR OTHER APPROPRIATE RELIEF. IF A COMPANY ENGAGES IN 9 AN ECONOMIC BOYCOTT DURING THE TERM OF A CONTRACT SUBJECT TO 10 SECTION 24-116-103 (1), THE ATTORNEY GENERAL MAY RECOVER AS 11 DAMAGES AN AMOUNT EQUAL TO THREE TIMES THE AMOUNT PAID TO THE 12 COMPANY UNDER THE CONTRACT; AND 13 (e) PURSUANT TO AN ORDER OF THE DISTRICT COURT, IMPOUND 14 ANY RECORD, BOOK, DOCUMENT, ACCOUNT, PAPER, SAMPLE, OR MATERIAL 15 RELATING TO A VIOLATION OF THIS ARTICLE 116 AND RETAIN THE SAME IN 16 THE ATTORNEY GENERAL'S POSSESSION UNTIL THE COMPLETION OF THE 17 ATTORNEY GENERAL'S ENFORCEMENT UNDER THIS ARTICLE 116. 18 SECTION 5. In Colorado Revised Statutes, 24-36-113, add (8) 19 as follows: 20 24-36-113. Investment of state money - limitations. 21 (8) (a) WHEN INVESTING MONEY IN THE STATE TREASURY AND MONEY 22 AVAILABLE FOR INVESTMENT IN A FUND IN THE STATE TREASURER'S 23 CUSTODY, THE STATE TREASURER SHALL TAKE INTO ACCOUNT ONLY 24 FINANCIAL FACTORS, AS DEFINED IN SECTION 24-51-206 (4)(a)(I). UNLESS 25 NO ECONOMICALLY PRACTICABLE ALTERNATIVE IS AVAILABLE, THE STATE 26 TREASURER SHALL NOT INVEST IN AN ENTITY THAT HAS A STATED 27 HB23-1092 -12- NONFINANCIAL COMMITMENT, AS DEFINED IN SECTION 24-51-206 1 (4)(a)(III). 2 (b) IF THE ATTORNEY GENERAL HAS REASONABLE CAUSE TO 3 BELIEVE THAT AN ENTITY HAS ENGAGED IN, IS ENGAGING IN, OR IS ABOUT 4 TO ENGAGE IN A VIOLATION OF THIS SUBSECTION (8), THE ATTORNEY 5 GENERAL MAY ENFORCE THIS SUBSECTION (8) BY: 6 (I) REQUIRING AN ENTITY IN VIOLATION OF THIS SUBSECTION (8) 7 TO FILE A STATEMENT OR REPORT IN WRITING, UNDER OATH, AS TO ALL THE 8 FACTS AND CIRCUMSTANCES CONCERNING THE VIOLATION AND ANY OTHER 9 DATA AND INFORMATION THE ATTORNEY GENERAL DEEMS NECESSARY; 10 (II) EXAMINING UNDER OATH ANY ENTITY IN CONNECTION WITH A 11 VIOLATION OF THIS SUBSECTION (8); 12 (III) EXAMINING ANY RECORD, BOOK, DOCUMENT, ACCOUNT, OR 13 PAPER THE ATTORNEY GENERAL DEEMS NECESSARY; 14 (IV) BRINGING AN ACTION IN THE DENVER DISTRICT COURT FOR 15 INJUNCTIVE OR OTHER APPROPRIATE RELIEF; AND 16 (V) PURSUANT TO AN ORDER OF THE DISTRICT COURT, IMPOUNDING 17 ANY RECORD, BOOK, DOCUMENT, ACCOUNT, PAPER, SAMPLE, OR MATERIAL 18 RELATING TO A VIOLATION OF THIS SUBSECTION (8) AND RETAINING THE 19 SAME IN THE ATTORNEY GENERAL'S POSSESSION UNTIL THE COMPLETION 20 OF THE ATTORNEY GENERAL'S ENFORCEMENT UNDER THIS SUBSECTION (8). 21 SECTION 6. In Colorado Revised Statutes, amend 24-51-1404 22 as follows: 23 24-51-1404. Investments of the voluntary investment program. 24 Participants in the voluntary investment program shall MUST designate 25 that their voluntary contributions be invested in one or more types of 26 investments made available by the board. These investments MUST 27 HB23-1092 -13- COMPLY WITH SECTION 24-51-206 (4) AND may include, but are not 1 limited to, equity investments, fixed-income investments, life insurance 2 company products, and any OTHER investments permitted pursuant to the 3 provisions of section 24-51-206. 4 SECTION 7. In Colorado Revised Statutes, 24-51-1504, amend 5 (1) as follows: 6 24-51-1504. Investments. (1) The plan shall MUST allow a 7 member of the defined contribution plan to exercise control of the 8 investment of the member's account under the plan, subject to the 9 following provisions: 10 (a) The board shall select at least five investment alternatives that 11 allow a member a meaningful choice between risk and return in the 12 investment of the member's account; 13 (b) The plan shall MUST allow the member to change investments 14 regularly; 15 (c) The plan shall MUST provide the member with the information 16 describing the investment alternatives, including information on the 17 nature, investment performance, fees, and expenses of the investment 18 alternatives; AND 19 (d) THE PLAN MUST COMPLY WITH THE INVESTMENT 20 REQUIREMENTS IN SECTION 24-51-206 (4). 21 SECTION 8. In Colorado Revised Statutes, 24-51-1605, amend 22 (1) as follows: 23 24-51-1605. Investments of the deferred compensation plan. 24 (1) Individuals participating in the deferred compensation plan shall 25 MUST designate that their deferred compensation contributions be 26 invested in one or more types of investments made available by the board. 27 HB23-1092 -14- These investments MUST COMPLY WITH SECTION 24-51-206 (4) AND may 1 include, but are not limited to, equity investments, fixed-income 2 investments, life insurance company products, and any OTHER 3 investments permitted pursuant to section 24-51-206. 4 SECTION 9. In Colorado Revised Statutes, amend 24-75-208 as 5 follows: 6 24-75-208. Investment of treasury funds. It is lawful for the 7 state treasurer and it is the state treasurer's duty, whenever there are funds 8 IS MONEY on hand or in the state treasurer's custody or possession eligible 9 for investment, to invest in noninterest bearing general fund warrants or 10 checks issued against the general fund at a time when moneys MONEY 11 accruing to the fund have HAS not been received or credited to the general 12 fund, but such warrants or checks shall MUST be drawn pursuant to 13 appropriation made by the general assembly, and the controller shall first 14 certify that appropriations do not exceed estimated general fund revenues 15 and surplus. WHEN MAKING AN INVESTMENT UNDER THIS SECTION, THE 16 STATE TREASURER SHALL COMPLY WITH SECTION 24-26-113 (8). 17 SECTION 10. In Colorado Revised Statutes, 24-75-601.1, 18 amend (2) as follows: 19 24-75-601.1. Legal investments of public funds - definition. 20 (2) Investments made pursuant to this section shall be made in 21 conformance MUST CONFORM with the standard set forth in section 22 15-1-304, C.R.S, AND MUST COMPLY WITH THE INVESTMENT 23 REQUIREMENTS OF SECTION 24-36-113. 24 SECTION 11. Act subject to petition - effective date. This act 25 takes effect at 12:01 a.m. on the day following the expiration of the 26 ninety-day period after final adjournment of the general assembly; except 27 HB23-1092 -15- that, if a referendum petition is filed pursuant to section 1 (3) of article V 1 of the state constitution against this act or an item, section, or part of this 2 act within such period, then the act, item, section, or part will not take 3 effect unless approved by the people at the general election to be held in 4 November 2024 and, in such case, will take effect on the date of the 5 official declaration of the vote thereon by the governor. 6 HB23-1092 -16-