HB 13-1205 Summary

• Amends the definition of "aggregate loss of principal" to occur only when an exchange or sale resulting in an initial loss is not offset by a gain within twelve months, extending the previous three-year offset period.

• Authorizes the state treasurer to invest idle state treasury funds in municipal bonds rated in one of the two highest rating categories by a nationally recognized rating organization.

• Adds covered bonds to the list of asset-backed securities in which the state treasurer may invest, both requiring ratings in one of the two highest categories by a nationally recognized rating organization.

• Specifies that state treasury investments must be in United States domestic fixed income securities denominated in United States dollars, with investment policies addressing liquidity, maturity, and diversification for each fund.

• Takes effect August 7, 2013, subject to referendum petition; if challenged, takes effect upon approval by voters at the November 2014 general election.