A BILL FOR AN ACT
CREATING THE BANK OF THE STATE OF COLORADO
AND IN CONNECTION THEREWITH AMENDING C.R.S. SECTION 24-77-108 TO EXEMPT THE BANK FROM ITS PROVISIONS
(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
This statute creates the Bank of the State of Colorado (hereinafter the bank), which is a body corporate and political subdivision of the state. The bank is an enterprise as defined in section (2)(d) of Article X, section 20 of the Colorado constitution. The bank is operated and controlled by the Bank of the State of Colorado board, which consists of eleven members These include: the governor, the attorney general, and the state treasurer, three persons with substantial experience in banking or finance, two of them with banks a majority of whose owners are Colorado residents, and five others from diverse backgrounds such as small business, community development, and housing. The bank board will appoint the president of the bank and will approve the appointment of other executive officers of the bank.
The bank will make loans in Colorado for local purposes.
The bank will engage in counter-cyclical lending practices that discourage asset bubbles and recession. The bank will avoid lending or investing to inflate existing assets. Such practices will include a preference for responding to an economic downturn with increased lending, in partnership with community banks and credit unions, in order to offset the decline and thereby prevent recession.
The bank has all the powers of a state-chartered bank under the Colorado banking code. On or before September 1, 2023, the state treasurer shall transfer to the bank for its initial deposits all cash and cash equivalents and other funds held by the state treasury that are currently deposited in banks with over $5 billion in assets that are not majority owned by Colorado residents. The state treasurer will thereafter deposit all the states tax and other revenues in the bank.
The bank will initially be capitalized in the amount of five hundred million dollars ($500,000,000). Such funds will be allocated from the Federal Stimulus to Colorado as available, or revenue bonds, or a combination thereof and/or of other funds. The bank shall also explore applying state pooled funds, pension funds, and existing state revolving loan funds as additional sources of capital.
The bank will accept deposits solely from the state government, its agencies, including enterprises, from political subdivisions of the state, and from community banks and credit unions to facilitate their loans in partnership with the bank and check clearing.
Because the maximum coverage of federal deposit insurance would only be able to cover a small fraction of the states deposits, and the states guarantee of its deposits will provide the necessary protection, FDIC membership will not be required.
Due to the differences in ownership, purpose, overhead, operation, performance, profitability, and risks of a public bank compared to large private banks, and the need to ensure countercyclical lending, like the Bank of North Dakota, the bank will have a separate set of statutes, regulations, and administration.
Because the bank will be managed directly by its board under Colorado legislation regulating the bank and will not be a chartered state bank under the Banking Board of Colorado, like the Bank of North Dakota, it will not be eligible to be a member of the Federal Reserve but will have a business relationship with its regional Federal Reserve bank in Kansas City. It will do check processing, deposit excess cash balances, maintain a reserve requirement, safe keep all its Fed book entry securities and have discount window borrowing authority. Borrowing at the discount window may allow the bank to borrow at significantly lower interest rates.
The bank will be deemed a public depository under C.R.S. section 11-10.5-106 and as defined in C.R.S. section 11-10.5-103 (6). The requirements of C.R.S. section 11-10.5-106 (2) and (3) will not apply to the bank.
Because the collateralization requirement in C.R.S. section 11-10.5-107 for public deposits was designed for private banks holding public deposits, and not a bank holding its own governments deposits, the statute governing the bank will permit the need for backing of the banks public deposits to be met by a general pledge by the state of its tangible and intangible assets equivalent to 100% of its public deposits, or, in the alternative, by a guarantee by the state of the banks public deposits with the states full faith and credit. The bank shall be exempt from all state, county, municipal, and other local taxes of all kinds.
C.R.S. section 24-77-108, which incorporates Proposition 117 that voters approved in November 2020, is amended to exempt the bank as a state enterprise from its requirements, a major purpose of which is to save taxpayers money.
BE IT ENACTED BY THE general assembly of the state of colorado:
(a) THE STATE HAS A STRATEGIC OPPORTUNITY TO CREATE MAJOR BENEFITS FOR ITS CITIZENS BY ESTABLISHING A STATE PUBLIC DEPOSITORY AND LENDING INSTITUTION OWNED BY THE PEOPLE AND SERVING THE PEOPLE OF THE STATE OF COLORADO. THE PUBLIC BANK WILL PRODUCE SUBSTANTIAL NEW REVENUE WITHOUT RAISING TAXES, WHILE INCREASING FINANCING FOR ESSENTIAL SERVICES AND PROJECTS THAT WILL BENEFIT PRESENT AND FUTURE GENERATIONS.
(b) IN ORDER TO FUND LARGE INFRASTRUCTURE PROJECTS AND IN TIMES OF FINANCIAL CRISIS THROUGHOUT COLORADO HISTORY, THE STATE AND POLITICAL SUBDIVISIONS HAVE BORROWED MONEY FOR PUBLIC PURPOSES FROM PRIVATE INVESTORS. SUCH BORROWING FROM PRIVATE INVESTORS NEARLY DOUBLES THE TOTAL COST OF PROJECTS AS A RESULT OF THE INTEREST PAID OVER THE LONG TERM OF THE DEBT REPAYMENT OBLIGATION. CONSEQUENTLY, PUBLIC DEBT AND TAXES TO PAY THE DEBT STEADILY INCREASE.
(c) PUBLIC BANKS CAN REDUCE OR ELIMINATE THE COST OF INTEREST AND ENABLE GOVERNMENT TO OPERATE MORE EFFICIENTLY WHENEVER THE STATE, ITS AGENCIES OR POLITICAL SUBDIVISIONS NEED FINANCING.
BANKS WILL HELP PREVENT RECESSIONS AND REDUCE THEIR SEVERITY THROUGH COUNTER-CYCLICAL
LENDING BY: (i) INCREASING LENDING IN A RECESSION TO OFFSET OR LESSEN THE
DECLINE, IN PARTNERSHIP WITH COMMUNITY BANKS AND CREDIT UNIONS, WITH WHOM IT
MAKES JOINT LOANS, JUST AS THE BANK OF NORTH DAKOTA PREVENTED RECESSION IN THAT
STATE IN 2008; (ii) AVOIDING INFLATIONARY BUBBLES OF EXISTING ASSETS BY LENDING
PRIMARILY FOR NEW GOODS AND SERVICES, THEREBY CONTRIBUTING TO THE PRODUCTIVE
ECONOMY OF THE STATE INSTEAD;
(e) DUE TO THE ABILITY OF A BANK TO LEND MULTIPLES OF ITS CAPITAL, THE BANK WILL MAKE LOANS TO LOCAL FINANCIAL INSTITUTIONS.
(f) THE STATE OF COLORADO IS STILL EXPERIENCING ECONOMIC RECESSION DUE TO THE PANDEMIC, RESULTING IN BUDGET CUTS IN ORDER TO AVOID DEFICITS. THE BANK CAN REDUCE BUDGET DEFICITS AND THE NEED FOR BUDGET CUTS DURING THE PRESENT CRISIS AND CAN HELP PREVENT AND AMELIORATE FUTURE CRISES.
(g) THE BANK CAN PROVIDE LOWER COST PUBLIC FINANCING BY REDUCING THE COSTS OF GOVERNMENT BORROWING AND ACHIEVE MORE WITH THE SAME AMOUNT OF MONEY.
(h) THE BANK WILL PROVIDE A SUBSTANTIAL NEW SOURCE OF INCOME FROM THE INTEREST ON LOANS AND OTHER LENDING WITHOUT RAISING TAXES.
(i) THE PUBLIC BANK CAN PRODUCE SUBSTANTIAL SAVINGS ON THE COST OF LONG-TERM BORROWING BY REFINANCING EXISTING CERTIFICATES OF PARTICIPATION AND FINANCING MAJOR GOVERNMENT PROJECTS DIRECTLY AT LOWER INTEREST RATES THROUGH NEW CERTIFICATES OF PARTICIPATION AND THROUGH FINANCING OR REFINANCING BONDS AND CERTIFICATES OF PARTICIPATION OF POLITICAL SUBDIVISIONS.
(j) THE PUBLIC BANK IN PARTNERSHIP WITH COMMUNITY BANKS AND CREDIT UNIONS CAN PROVIDE LOWER COST LOANS FOR SMALL BUSINESSES, AFFORDABLE HOUSING, RENEWABLE ENERGY, INFRASTRUCTURE, HEALTH CARE, EDUCATION, BROADBAND, AND OTHER ESSENTIAL NEEDS AND SERVICES, URBAN AND RURAL.
(k) THE FINANCING PARADIGM IN THE UNITED STATES HAS BEEN TO RELY EXCLUSIVELY ON PRIVATE BANKS RATHER THAN PUBLIC BANKS. THE LONE EXCEPTION IS THE 102-YEAR-OLD BANK OF NORTH DAKOTA. IN 2020, THIS PUBLICLY OWNED BANK REPORTED ITS TWENTIETH CONSECUTIVE YEAR OF HIGH PROFITS FOR THE PEOPLE OF NORTH DAKOTA, AVERAGING TWENTY PERCENT (20%) RETURN ON EQUITY OVER THIS PERIOD, WHILE INCREASING PUBLIC FINANCING CAPACITY FOR THE STATE. THE BANK OF NORTH DAKOTA, LENDING IN PARTNERSHIP WITH COMMUNITY BANKS AND CREDIT UNIONS INCREASES ACCESS TO CREDIT FOR ITS PEOPLE AND BUSINESSES THROUGH HOME LOANS, FARMING AND SMALL BUSINESS LOANS, STUDENT LOANS, AND OTHER ECONOMIC DEVELOPMENT PROGRAMS. IT HAS ALSO PROVIDED STABILITY AND FINANCIAL CAPACITY TO THE PEOPLE OF THE STATE THROUGH ADVERSE ECONOMIC CYCLES, AVOIDING THE GREAT RECESSION OF 2008 BY INCREASING LENDING, AND OFFSETTING THE OIL PRICE CRASH OF 2015.
Section 2. BODY OF LEGISLATION
(a) THE BANK MEANS THE STATE BANK OF COLORADO.
(b) THE BOARD MEANS STATE BANK OF COLORADO BOARD.
(c) PUBLIC BANK IS THE DEPOSITORY BANK OWNED BY THE STATE.
(d) PRIVATE BANK FOR PURPOSES OF THIS LEGISLATION MEANS ANY BANK NOT OWNED BY THE STATE OR ANY AGENCY, DEPARTMENT, OR POLITICAL SUBDIVISION OF THE STATE.
(e) LOCAL FINANCIAL INSTITUTION MEANS A CERTIFIED COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION, A CREDIT UNION, AS DEFINED IN THE BANKING CODE, OR A SMALL BANK OR AN INTERMEDIATE SMALL BANK, AS DEFINED IN SECTION 25.12 OF TITLE 12 OF THE CODE OF FEDERAL REGULATIONS.
THE BANK OF THE STATE OF COLORADO IS HEREBY ESTABLISHED AS A PUBLICLY OWNED DEPOSITORY BANK TO BE KNOWN AS THE STATE BANK OF COLORADO (THE BANK) WHICH IS A BODY CORPORATE AND A POLITICAL SUBDIVISION OF THE STATE AND NOT AN AGENCY OF STATE GOVERNMENT. THE BANK OF THE STATE OF COLORADO IS NOT SUBJECT TO ADMINISTRATIVE DIRECTION BY ANY DEPARTMENT, COMMISSION, BOARD, BUREAU, OR AGENCY OF THE STATE.
THE MISSION OF THE BANK IS TO STIMULATE ECONOMIC RECOVERY FOR PEOPLE, BUSINESSES, AND GOVERNMENTAL ENTITIES AND SUSTAIN A STRONG AND STABLE ECONOMY BY INCREASING LOCAL LENDING FOR PRODUCTIVE PURPOSES AT LOWER INTEREST RATES.
The purposes of the Bank include, but are not limited to:
(a) BEGIN THE PROCESS OF REDUCING DEBT OF THE STATE, ITS POLITICAL SUBDIVISIONS, AND THE PEOPLE AND BUSINESSES OF COLORADO.
(b) PROVIDE LOAN PARTICIPATION AND CREDIT SUPPORT FOR LOCAL FINANCIAL INSTITUTIONS.
(c) ADDRESS UNMET SOCIAL AND ECONOMIC NEEDS OF THE PEOPLE OF COLORADO AND PRIORITIZE SOLUTIONS FOR THE COMMON GOOD.
(d) FINANCE PUBLIC INFRASTRUCTURE AND REFINANCE EXISTING GOVERNMENT DEBT IN THE FORM OF CERTIFICATES OF PARTICIPATION.
(e) THE BANK WILL NOT COMPETE WITH LOCAL COMMUNITY BANKS OR CREDIT UNIONS OR OTHER LENDING INSTITUTIONS FOR PRIVATE DEPOSITS OR IN MAKING LOANS.
(f) THE BOARD OF THE BANK WILL OVERSEE AND ASSURE COMPLIANCE OF THE BANK WITH ITS MISSION STATEMENT, GOVERNING STATUTES, AND BYLAWS.
THE BANK WILL ADHERE TO THE FOLLOWING PRIORITY PRINCIPLES:
(a) THE HIGHEST ETHICAL STANDARDS
(b) FINANCIAL INTEGRITY AND SOUNDNESS
(c) TRANSPARENCY: THE BANK WILL INCLUDE ONLINE PUBLIC DISCLOSURE OF FINANCIAL RECORDS AND ANNUAL REPORTS; THERE WILL BE NO HIDDEN ACCOUNTS OR HIDDEN TRANSACTIONS.
(d) ACCOUNTABILITY: REGULAR AUDITS AND REPORTS ACCESSIBLE TO THE GENERAL PUBLIC.
(e) THE REGIONAL PRINCIPLE: THE BANK SHALL LIMIT ITS LENDING AND OTHER INVESTMENTS IN THE STATE AND LOCAL COMMUNITIES OF COLORADO AND FOR THE PUBLIC GOOD.
(f) THE BANK SHALL PRIORITIZE LENDING FOR ESSENTIAL COMMUNITY NEEDS IN GEOGRAPHIC AND DEMOGRAPHIC AREAS TRADITIONALLY UNDERSERVED BY COMMERCIAL AND OTHER BANKS.
(g) THE BANK WILL FINANCE ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE ENDEAVORS, WITH AWARENESS OF THE POTENTIAL EXTERNALIZED COSTS TO HEALTH, THE ENVIRONMENT AND TO SOCIETY OF ITS LENDING PRACTICES, INCLUDING THEIR LONG-TERM EFFECTS.
(h) THE BANK WILL PRIORITIZE SMALL AND MEDIUM-SIZED BUSINESSES AS WELL AS PUBLIC PROJECTS AND INFRASTRUCTURE IN MARGINALIZED COMMUNITIES AND COMMUNITIES OF COLOR.
(i) THE BANK WILL BE PROTECTED FROM INAPPROPRIATE POLITICAL, CORPORATE, AND PRIVATE INFLUENCE, AND FROM CONFLICTS OF INTEREST.
(j) PRUDENT AND RISK-AVERSE BANKING PRACTICES; ALL LOANS OF THE BANK SHALL BE MADE BASED UPON CREDITWORTHINESS AND EVIDENCE OF THE ABILITY TO REPAY THE LOAN.
(k) THE BANK WILL AVOID LENDING OR INVESTING TO INFLATE EXISTING ASSETS SUCH AS REAL ESTATE, STOCKS, AND COMMODITIES. THE BANK MAY LEND FOR EXISTING ASSETS THAT SERVE A PUBLIC PURPOSE.
(l) THE BOARD SHALL ESTABLISH BYLAWS THAT INCORPORATE THE ABOVE PRINCIPLES.
DUE TO MARKED DIFFERENCES BETWEEN A PUBLIC BANK AND PRIVATE BANK IN OWNERSHIP, PURPOSES, GOVERNANCE, AND OPERATION, THE STATE PUBLIC BANK, LIKE THE BANK OF NORTH DAKOTA, SHALL BE GOVERNED BY ITS OWN SET OF STATUTES DIFFERING IN SOME RESPECTS FROM THE STATUTES GOVERNING PRIVATE BANKS IN COLORADO, AS DESCRIBED BELOW. THE PURPOSE OF SUCH DIFFERENCES ARE TO ENABLE THE BANK TO OPTIMALLY ACHIEVE ITS PURPOSES, INCLUDING TO BE PROFITABLE AND TO CREATE A STRONG AND STABLE ECONOMY IN PARTNERSHIP WITH LOCAL COMMUNITY BANKS AND CREDIT UNIONS.
(a) THE BANK CONSTITUTES AN ENTERPRISE AS DEFINED IN SECTION 20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTIONIT BE GOVERNMENT-OWNED, RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS, AND RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUE EACH YEAR IN GRANTS FROM ALL COLORADO STATE AND POLITICAL SUBDIVISIONS COMBINED. SO LONG AS IT CONSTITUTES AN ENTERPRISE UNDER ARTICLE X, SECTION 20 (2)(d), THE PUBLIC BANK IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.
(b) THE BANK IS AUTHORIZED TO ISSUE REVENUE BONDS, INCLUDING, AMONG OTHER PURPOSES, TO CREATE ITS INITIAL CAPITAL.
(c) THE BANK HAS ALL OF THE POWERS OF A STATE-CHARTERED BANK UNDER THIS CODE.
(d) NOTWITHSTANDING SECTION 11-10.5-106 (1), THE BANK IS AN ELIGIBLE PUBLIC DEPOSITORY.
(e) ANY OFFICIAL CUSTODIAN, AS DEFINED IN C.R.S. SECTION 11-10.5-103 (9), MAY DEPOSIT PUBLIC FUNDS IN THE BANK.
(f) THE BANK WILL NOT BE REQUIRED TO BE A MEMBER OF THE FDIC.
(g) LIKE THE BANK OF NORTH DAKOTA, THE BANK WILL NOT BE A MEMBER OF THE FEDERAL RESERVE BUT WILL HAVE A BUSINESS RELATIONSHIP WITH ITS REGIONAL FEDERAL RESERVE BANK IN KANSAS CITY FOR CHECK PROCESSING, DEPOSITING EXCESS CASH BALANCES, MAINTAINING A RESERVE REQUIREMENT, SAFE KEEPING ALL ITS FED BOOK ENTRY SECURITIES, AND WILL HAVE DISCOUNT WINDOW BORROWING AUTHORITY.
(h) AS LONG AS THE BANK ONLY ACCEPTS DEPOSITS FROM THE STATE, ITS AGENCIES, AND ITS POLITICAL SUBDIVISIONS, AND FROM COMMUNITY BANKS AND CREDIT UNIONS TO FACILITATE PARTNERSHIP LOANS AND CLEARING CHECKS, IN THE EVENT OF AN ECONOMIC DECLINE, THE POLICY OF THE BANK WILL BE TO INCREASE LENDING COUNTER-CYCLICALLY TO OFFSET THE DECLINE, AND THEREBY REDUCE OR PREVENT RECESSION.
(i) THE STATUTE GOVERNING THE BANK WILL AUTHORIZE THE BANK TO PROVIDE COLLATERAL FOR ITS PUBLIC DEPOSITS BY A GENERAL PLEDGE BY THE STATE OF ITS TANGIBLE AND INTANGIBLE ASSETS EQUIVALENT TO 100% OF THE PUBLIC DEPOSITS IN THE BANK, OR, IN THE ALTERNATIVE, BY A GUARANTEE OF THE BANKS PUBLIC DEPOSITS WITH THE STATES FULL FAITH AND CREDIT.
(j) THE PUBLIC BANK WILL NOT BE SUBJECT TO C.R.S. SECTIONS 11-10.5-106 (2) OR (3).
(a) NOTWITHSTANDING ANY OTHER PROVISION OF THE CODE, THE BANK SHALL OPERATE IN ACCORDANCE WITH SOUND BANKING PRACTICES THAT ARE GENERALLY FOLLOWED BY PUBLIC BANKS, SUCH AS THE BANK OF NORTH DAKOTA, FOUNDED IN 1919, THE ATB FINANCIAL BANK OF ALBERTA, CANADA, FOUNDED IN 1938, AND THE 413 CITY-OWNED SPARKASSEN BANKS IN GERMANY, FOUNDED 200 YEARS AGO. NONE OF SUCH PUBLIC BANKS HAS EVER FAILED OR REQUIRED A BAILOUT.
(b) THE BANK SHALL NOT INVEST IN ANY SPECULATIVE INSTRUMENTS, INCLUDING DERIVATIVES, SUCH AS CREDIT-DEFAULT SWAPS, INTEREST-RATE SWAPS, COMMODITY FUTURES, COLLATERIZED DEBT OBLIGATIONS, AND MORTGAGE-BACKED SECURITIES, EXCEPT AS MAY HAVE PREVIOUSLY BEEN ACQUIRED BY A FINANCIAL INSTITUTION WHICH THE BANK THEREAFTER ACQUIRES, OR EXCEPT FOR MORTGAGE-BACKED SECURITIES THAT THE BOARD DEEMS TO BE IN THE BEST INTEREST OF THE BANK.
(c) THE BANK SHALL NOT OFFER OR ACCEPT ANY MONEY FOR A DEMAND, SAVINGS, CHECKING, OR TIME DEPOSIT ACCOUNT, OR ANY OTHER SIMILAR ACCOUNT, TO OR FROM ANY PERSON THAT IS NOT A GOVERNMENTAL ENTITY, EXCEPT IN CONNECTION WITH A LOAN MADE IN PARTNERSHIP WITH A COMMUNITY BANK OR CREDIT UNION, OR TO FACILITATE CLEARING CHECKS FOR SUCH BANKS.
THE BANK IS EXEMPT FROM ALL STATE, COUNTY, MUNICIPAL, AND OTHER LOCAL TAXES.
THE BANK OF THE STATE OF COLORADO HAS THE EXCLUSIVE RIGHT TO USE THE NAME "THE BANK OF THE STATE OF COLORADO", BANK OF COLORADO, PUBLIC BANK OF COLORADO, OR ANY SIMILAR NAME. ANY OTHER PERSON, ASSOCIATION, CORPORATION, OR PARTNERSHIP USING SIMILAR PHRASES IN ITS NAME OR TITLE IS GUILTY OF A MISDEMEANOR AND, UPON CONVICTION THEREOF, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS.
11-108.5-108. Operation and management Ð The Board of the State Bank of Colorado Ð enterprise status.
THE INITIAL BOARD OF THE STATE BANK OF COLORADO (THE BOARD) SHALL CONSIST OF ELEVEN MEMBERS.
THE MEMBERS SHALL BE:
THE GOVERNOR, ATTORNEY GENERAL, AND STATE TREASURER
THE OTHER MEMBERS SHALL BE APPOINTED AS INDICATED BELOW AND SHALL CONSIST OF THE FOLLOWING:
(a) AT LEAST TWO BANKING PROFESSIONALS WHO HAVE HAD SUBSTANTIAL EXPERIENCE WITH BANKS OR CREDIT UNIONS THAT HAVE MAJORITY OWNERSHIP BY COLORADO RESIDENTS, AND A THIRD PERSON WITH SUBSTANTIAL EXPERIENCE IN FINANCE OR BANKING, ALL OF WHOM SHALL HAVE SUBSTANTIAL EXPERIENCE IN ECONOMIC DEVELOPMENT FINANCE IN COLORADO. THE GOVERNOR SHALL APPOINT ONE, THE SPEAKER OF THE COLORADO HOUSE SHALL APPOINT ONE, AND THE LEADING MEMBER OF ANOTHER POLITICAL PARTY IN THE SENATE SHALL APPOINT THE THIRD.
(b) ONE COUNTY TREASURER OR DESIGNEE TO BE APPOINTED BY THE GOVERNOR.
(c) FOUR EXPERTS FROM VITAL ECONOMIC SECTORS, SUCH AS SMALL BUSINESS, EMPLOYEE-OWNED BUSINESS, AFFORDABLE HOUSING FINANCE OR POLICY, ORGANIZED LABOR, ENVIRONMENTAL PROTECTION, AND EDUCATION FINANCE. THE EXPERTS SHALL BE SELECTED BY THE BOARD FROM A POOL OF QUALIFIED CITIZEN APPLICANTS.
(d) THE CHAIRPERSON SHALL BE ELECTED BY A MAJORITY OF THE BOARD.
(e) TERMS OF BOARD MEMBERS. TERMS OF BOARD MEMBERS SHALL BE FOUR YEARS. FIVE RANDOMLY SELECTED MEMBERS OF THE ELEVEN MEMBER BOARD SHALL SERVE INITIAL TERMS OF TWO YEARS. BOARD MEMBERS WHO ARE NOT EX-OFFICIO BOARD MEMBERS MAY SERVE TWO ADDITIONAL FOUR-YEAR TERMS.
(f) THE BOARD SHALL APPOINT THE PRESIDENT OF THE BANK. THE APPOINTMENT OF OTHER EXECUTIVE OFFICERS OF THE BANK SHALL BE PROPOSED BY THE PRESIDENT OF THE BANK SUBJECT TO THE APPROVAL BY THE BOARD.
(g) THE PRESIDENT SHALL PROPOSE THE COMPENSATION PACKAGES OF OTHER EXECUTIVE OFFICERS OF THE BANK, SUBJECT TO MODIFICATION AND APPROVAL BY THE BOARD.
(h) THE BOARD SHALL ENSURE THAT THE BANK IS LOCATED WITHIN THE STATE.
(i) A MEMBER OF THE BOARD SHALL NOT PARTICIPATE IN ANY BANK ACTION OR ATTEMPT TO INFLUENCE ANY DECISION OR RECOMMENDATION BY ANY EMPLOYEE OF, OR CONSULTANT TO, THE BANK THAT INVOLVES A SPONSOR OF WHICH THE MEMBER IS A REPRESENTATIVE OR IN WHICH THE MEMBER OR THE IMMEDIATE FAMILY OF THE MEMBER HAS A PERSONAL FINANCIAL INTEREST.
(j) [THE BOARD SHALL ADOPT A WRITTEN POLICY FOR SAFE DISCLOSURE AND PROTECTION OF WHISTLEBLOWERS UNDER THE COLORADO WHISTLEBLOWER STATUTE, C.R.S. 24-50.5-101-107.]
(k) THE MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT SHALL BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES TO THE EXTENT THAT REIMBURSEMENT FOR THESE EXPENSES IS NOT OTHERWISE PROVIDED OR PAYABLE BY ANOTHER PUBLIC AGENCY.
(l) THOSE BOARD MEMBERS NOT EMPLOYED BY ANOTHER PUBLIC AGENCY SHALL RECEIVE REASONABLE COMPENSATION FOR EACH FULL DAY OR PORTION THEREOF FOR ATTENDING MEETINGS OF THE BOARD.
[We have also considered adding an advisory board, which we included in an earlier draft. We took it out at the time because it looked too much like the governing board. However, we recommend reconsidering the idea of adding an advisory board to provide a second level of oversight. The advisory board would monitor the banks operations, assure it is following its governing documents, including credit guidance for productive and sustainable purposes, that it meets its socially responsible and nondiscriminatory purposes, and takes a proactive role to find and take advantage of new opportunities and means for the bank to better serve the public good.]
THE BANK EXECUTIVE(S) WILL:
(a) APPROVE THE APPOINTMENT OF AND EMPLOY SUCH SUBORDINATE OFFICERS, EMPLOYEES, AND AGENTS AS THEY MAY JUDGE EXPEDIENT AND IN THE INTERESTS OF THE STATE, AND SHALL DEFINE THE DUTIES, DESIGNATE THE TITLES, AND FIX THE COMPENSATION OF ALL SUCH PERSONS.
(b) MAKE AND ENFORCE THIS CODE, THE OPERATING AGREEMENT, BYLAWS, ORDERS, AND ANY RULES AND REGULATIONS FOR THE TRANSACTION OF THE BANKS BUSINESS AND IN ALL OF ITS OPERATIONS.
(c) ALLOCATE THE TOTAL COMPENSATION OF SUCH APPOINTEES AND EMPLOYEES, TOGETHER WITH OTHER EXPENDITURES FOR THE OPERATION AND MAINTENANCE OF THE BANK.
NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, ON SEPTEMBER 1, 2022, THE STATE TREASURER SHALL TRANSFER TO THE BANK OF THE STATE OF COLORADO ALL CASH AND CASH EQUIVALENTS, OR OTHER PUBLIC DEPOSITS OF THE STATE IN ANY BANK WITH OVER FIVE BILLION IN TOTAL ASSETS, INCLUDING ASSETS OF ANY SUBSIDIARY, AFFILIATE, HOLDING COMPANY, OR OTHER OWNERSHIP CONNECTION TO SUCH BANK, AND A MAJORITY OF WHOSE OWNERSHIP IS NOT HELD BY COLORADO RESIDENTS.
THE INITIAL CAPITAL OF THE BANK SHALL BE FIVE HUNDRED MILLION DOLLARS. THE LEGISLATURE SHALL PROVIDE THAT SUM EITHER THROUGH A PORTION OF THE FEDERAL STIMULUS FUND OF $3.8 BILLION ALLOCATED TO COLORADO, THROUGH REVENUE BONDS ISSUED BY THE BANK, OR A COMBINATION THEREOF. OTHER POTENTIAL SOURCES SUCH AS A PORTION OF STATE POOLED FUNDS, PENSION FUNDS, AND STATE REVOLVING LOAN FUNDS, SHALL ALSO BE INVESTIGATED. THE STATE TREASURER SHALL TRANSFER THE APPROPRIATED PORTION OF THE STIMULUS FUND TO THE BANK ON SEPTEMBER 1, 2022. IF REVENUE BONDS ARE USED TO PROVIDE ALL OR A PORTION OF CAPITALIZATION, THEY SHALL BE PROMPTLY ISSUED AFTER FORMATION OF THE BANK AND THE PROCEEDS PROMPTLY USED TO PAY FOR CAPITAL OF THE BANK.
THE BANK SHALL BE EXEMPT FROM THE REQUIREMENTS OF C.R.S. 24-77-108 FOR A NEW STATE ENTERPRISE.
This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 4, 2023, if adjournment sine die is on May 6, 2023); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.