(1) The public school fund shall forever remain inviolate and intact; the interest and income earned on the deposit and investment of the fund only shall be expended in the maintenance of the schools of the state and shall be distributed to the several school districts of the state in such manner as may be prescribed by law. No part of said fund, principal or interest and income, shall ever be transferred to any other fund or used or appropriated, except as provided in this article and article 43.7 of this title. The state treasurer shall be custodian of the fund, and the same shall be securely and profitably invested as may be directed by the public school fund investment board created in section 22-41-102.5. The state, by appropriation, shall supply all losses of principal that may occur as determined pursuant to section 2-3-103 (5), C.R.S., or section 22-41-104 (2).
(2) (Deleted by amendment, L. 2003, p. 2131, � 25, effective May 22, 2003.)
(3) (a) Except as provided in paragraph (b) of this subsection (3), for the 2010-11 state fiscal year through the 2012-13 fiscal year, the first eleven million dollars of any interest or income earned on the investment of the moneys in the public school fund shall be credited to the state public school fund created in section 22-54-114 for distribution as provided by law. Any amount of such interest and income earned on the investment of the moneys in the state public school fund in excess of eleven million dollars, other than interest and income credited to the public school capital construction assistance fund, created in section 22-43.7-104 (1), pursuant to section 22-43.7-104 (2)(b)(I), shall remain in the fund and shall become part of the principal of the fund.
(b) and (c) Repealed.
(d) For the 2013-14 state fiscal year through the 2014-15 fiscal year, the first sixteen million dollars of any interest or income earned on the investment of the moneys in the public school fund shall be credited to the state public school fund created in section 22-54-114 for distribution as provided by law. Any amount of such interest and income earned on the investment of the moneys in the state public school fund in excess of sixteen million dollars, other than interest and income credited to the public school capital construction assistance fund, created in section 22-43.7-104 (1), pursuant to section 22-43.7-104 (2)(b)(I), shall remain in the fund and shall become part of the principal of the fund.
(e) For the 2015-16 and the 2016-17 state fiscal year, the first twenty-one million dollars of any interest or income earned on the investment of the moneys in the public school fund is credited to the state public school fund created in section 22-54-114 for distribution as provided by law. Any amount of such interest and income earned on the investment of the moneys in the state public school fund in excess of twenty-one million dollars, other than interest and income credited to the public school capital construction assistance fund, created in section 22-43.7-104 (1), pursuant to section 22-43.7-104 (2)(b)(I), shall remain in the fund and shall become part of the principal of the fund.
(f) For the 2017-18 and 2018-19 state fiscal years, interest or income earned on the investment of the moneys in the public school fund must be used or credited in the following order:
(I) The first twenty-one million dollars is credited to the state public school fund created in section 22-54-114 for distribution as provided in that section; except that, if the interest or income earned on the investment of the moneys in the public school fund is less than twenty-one million dollars, then the available amount must also be used to entirely cover the cost of services and reimbursement described in subparagraph (II) of this paragraph (f);
(II) An amount annually appropriated to the state treasurer to pay for the services of private professional fund managers hired by the public school fund investment board pursuant to section 22-41-102.5 (5), and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2);
(III) Any amount in excess of twenty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (f), up to thirty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (f), is credited to the restricted account of the public school capital construction assistance fund created in section 22-43.7-104 (5) for use as provided in that section; and
(IV) Any amount in excess of thirty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (f) is credited as specified by the general assembly, taking into consideration the recommendations of the public school fund investment board described in section 22-41-102.5 (4)(a)(III).
(g) For the 2019-20 state fiscal year through the 2021-22 state fiscal year, interest or income earned on the investment of the money in the public school fund must be used or credited in the following order:
(I) The first twenty-one million dollars is credited to the state public school fund created in section 22-54-114 for distribution as provided in that section; except that, if the interest or income earned on the investment of the moneys in the public school fund is less than twenty-one million dollars, then the available amount must also be used to entirely cover the cost of services and reimbursement described in subparagraph (II) of this paragraph (g);
(II) An amount annually appropriated to the state treasurer to pay for the services of private professional fund managers hired by the public school fund investment board pursuant to section 22-41-102.5 (5), and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2);
(III) Any amount in excess of twenty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (g), up to forty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (g), is credited to the restricted account of the public school capital construction assistance fund created in section 22-43.7-104 (5) for use as provided in that section; and
(IV) Any amount in excess of forty-one million dollars plus the cost of services and reimbursement described in subparagraph (II) of this paragraph (g) is credited as specified by the general assembly, taking into consideration the recommendations of the public school fund investment board described in section 22-41-102.5 (4)(a)(III).
(h) For the 2022-23 state fiscal year through the 2023-24 state fiscal year, interest or income earned on the investment of the money in the public school fund must be used or credited as follows:
(I) The general assembly shall annually appropriate to the state treasurer an amount necessary to pay for the services of the investment consultant hired by the public school fund investment board pursuant to section 22-41-102.5 (5) and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2);
(II) After the appropriation made pursuant to subsection (3)(h)(I) of this section, all remaining interest and income, not to exceed twenty-one million dollars, shall be credited to the state public school fund created in section 22-54-114 for distribution as provided in that section;
(III) After money in the public school fund has been appropriated or credited pursuant to subsections (3)(h)(I) and (3)(h)(II) of this section, all remaining interest and income, not to exceed twenty million dollars, shall be credited to the restricted account of the public school capital construction assistance fund, which account is created in section 22-43.7-104 (5), for use as provided in that section; and
(IV) Any additional interest and income remaining in the public school fund may be credited as specified by the general assembly, taking into consideration the recommendations of the public school fund investment board described in section 22-41-102.5 (4)(a)(III), or, if not credited pursuant to this subsection (3)(h)(IV), remains in the public school fund.
(i) For the 2024-25 state fiscal year, interest and income earned on the investment of the money in the public school fund must be used or credited as follows:
(I) The general assembly shall annually appropriate to the state treasurer an amount necessary to pay for the services of the investment consultant hired by the public school fund investment board pursuant to section 22-41-102.5 (5) and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2);
(II) After the appropriation made pursuant to subsection (3)(i)(I) of this section, the lesser of all interest and income or eleven million dollars is credited to the state public school fund created in section 22-54-114 for distribution as provided in that section;
(III) After money in the public school fund has been appropriated or credited pursuant to subsections (3)(i)(I) and (3)(i)(II) of this section, the lesser of all interest and income or thirty million dollars is credited to the restricted account of the public school capital construction assistance fund created in section 22-43.7-104 (5) for use as provided in that section; and
(IV) Any additional interest and income remaining in the public school fund is credited to the public school capital construction assistance fund pursuant to section 22-43.7-104 (2)(d.5).
(j) For the 2025-26 state fiscal year, interest and income earned on the investment of the money in the public school fund must be used or credited as follows:
(I) The general assembly shall annually appropriate to the state treasurer an amount necessary to pay for the services of the investment consultant hired by the public school fund investment board pursuant to section 22-41-102.5 (5) and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2) and to pay for costs required to accommodate tranche payments to the program manager, pursuant to section 22-41-104.7 (4)(b)(I);
(II) After the appropriation made pursuant to subsection (3)(j)(I) of this section, the lesser of all interest and income or five million dollars is credited to the state public school fund created in section 22-54-114 for distribution as provided in that section;
(III) After money in the public school fund has been appropriated or credited pursuant to subsections (3)(j)(I) and (3)(j)(II) of this section, the lesser of all interest and income or thirty-six million dollars is credited to the restricted account of the public school capital construction assistance fund created in section 22-43.7-104 (5) for use as provided in that section; and
(IV) Any additional interest and income remaining in the public school fund is credited to the public school capital construction assistance fund pursuant to section 22-43.7-104 (2)(d.5).
(k) For the 2026-27 state fiscal year and each state fiscal year thereafter, interest and income earned on the investment of the money in the public school fund must be used or credited as follows:
(I) The general assembly shall annually appropriate to the state treasurer an amount necessary to pay for the services of the investment consultant hired by the public school fund investment board pursuant to section 22-41-102.5 (5) and to pay for any reimbursement for travel and other necessary expenses incurred by the members of the public school fund investment board pursuant to section 22-41-102.5 (2) and to pay for costs required to accommodate tranche payments to the program manager pursuant to section 22-41-104.7 (4)(b)(I);
(II) After money in the public school fund has been appropriated pursuant to subsection (3)(k)(I) of this section, the lesser of all interest and income or forty-one million dollars is credited to the restricted account of the public school capital construction assistance fund created in section 22-43.7-104 (5) for use as provided in that section; and
(III) Any additional interest and income remaining in the public school fund is credited to the public school capital construction assistance fund pursuant to section 22-43.7-104 (2)(d.5).
Source: L. 73: R&RE, p. 1240, � 1. C.R.S. 1963: � 123-4-2. L. 77: Entire section amended, p. 1055, � 1, effective July 15. L. 2003: (2) amended and (3) added, p. 2131, � 25, effective May 22. L. 2008: (1) and (3) amended, p. 1062, � 3, effective July 1. L. 2009: (3) amended, (SB 09-260), ch. 200, p. 900, � 1, effective May 1. L. 2010: (3)(b) amended, (SB 10-150), ch. 108, p. 362, � 1, effective April 15; (3)(a) amended, (HB 10-1369), ch. 246, p. 1101, � 9, effective May 21. L. 2011: (3)(b) amended, (SB 11-230), ch. 305, p. 1467, � 8, effective June 9. L. 2012: (3)(b) amended, (SB 12-145), ch. 202, p. 805, � 1, effective May 24; (3)(a) amended and (3)(c) added, (HB 12-1238), ch. 180, p. 671, � 13, effective July 1. L. 2013: (3)(b)(II)(A) amended, (SB 13-112), ch. 69, p. 224, � 1, effective March 22; (3)(a) amended, (3)(c) repealed, and (3)(d) added, (SB 13-260), ch. 236, p. 1144, � 11, effective May 17. L. 2015: (3)(d) amended and (3)(e) added, (SB 15-267), ch. 295, p. 1202, � 4, effective June 5. L. 2016: (1) and (3)(e) amended and (3)(f) and (3)(g) added, (SB 16-035), ch. 250, p. 1024, � 3, effective August 10. L. 2022: IP(3)(g) amended and (3)(h) added, (HB 22-1146), ch. 252, p. 1844, � 3, effective May 26. L. 2024: IP(3)(h) amended and (3)(i), (3)(j), and (3)(k) added, (HB 24-1448), ch. 236, p. 1510, � 10, effective May 23. L. 2025: (3)(i)(IV), (3)(j)(IV), and (3)(k)(III) amended, (HB 25-1320), ch. 236, p. 1171, � 19, effective May 23; (3)(j)(I) and (3)(k)(I) amended, (SB 25-167), ch. 449, p. 2575, � 1, effective June 4.
Editor's note: (1) Subsection (3)(b)(I)(B) provided for the repeal of subsection (3)(b)(I), effective July 1, 2013. (See L. 2012, p. 805.)
(2) Subsection (3)(b)(II)(B) provided for the repeal of subsection (3)(b)(II), effective July 1, 2014. (See L. 2012, p. 805.)
Cross references: For the legislative declaration in SB 16-035, see section 1 of chapter 250, Session Laws of Colorado 2016. For the legislative declaration in HB 25-1320, see section 1 of chapter 236, Session Laws of Colorado 2025.
22-41-102.5. Public school fund investment board - creation - working group - report. (1) (a) There is hereby created the public school fund investment board, referred to in this section as the board. The board consists of five members as follows:
(I) The state treasurer, who serves as chair;
(II) A member of the state board of land commissioners, appointed by majority vote of the commissioners; and
(III) Three members appointed by the state treasurer with diverse party affiliations. At least one appointee required by this subsection (1)(a)(III) must have expertise in community investments, as defined in section 22-41-104.7 (1), and the other two must have professional qualifications regarding the prudent investment of trust fund money or expertise in institutional investment management.
(b) Initial appointments of members must be made no later than thirty days after August 10, 2016. The board must meet for the first time no later than thirty days after the appointment of the members as required in this paragraph (b), and the board must meet no less than quarterly thereafter.
(c) The state treasurer and two other voting members of the board constitutes a quorum of the board.
(2) (a) Except for the state treasurer, members of the board serve two-year terms and may not serve more than three consecutive terms, and none of the board members, except for the treasurer, may hold any state elective office. The state board of land commissioners or the state treasurer may remove their appointed members for any cause that renders the member incapable of discharging or unfit to discharge the member's duty to the board. The state board of land commissioners or the state treasurer may fill any vacancy by appointment, and such appointment must be made no later than ninety days after the date of the vacancy. A member appointed to fill a vacancy serves until the expiration of the term for which the vacancy was filled. Members of the board serve without compensation but may receive reimbursement for travel and other necessary expenses actually incurred in the performance of their duties. The reimbursements are paid from the interest and income earned on the deposit and investment of the public school fund subject to the requirements set forth in section 22-41-102.
(b) Beginning with the state treasurer's appointments to the board to replace existing board members whose final terms expire on or after July 1, 2022, the state treasurer may stagger the terms of newly appointed board members to ensure that the terms of no more than two of the state treasurer's three appointments to the board expire in the same year. In the state treasurer's discretion, the first three new members appointed by the state treasurer on or after July 1, 2022, may serve an initial term of between one and three years, as determined by the state treasurer. After the initial term, the members serve two-year terms for a total of three consecutive terms, as set forth in subsection (2)(a) of this section.
(3) The board shall direct the state treasurer on how to securely invest money deposited in the public school fund:
(a) For the intergenerational benefit of public schools;
(b) In a manner that complies with the Uniform Prudent Investor Act, article 1.1 of title 15; and
(c) In a manner that targets the following investment objectives:
(I) Preserving the principal of the public school fund; and
(II) Providing substantial benefit to the beneficiaries of the public school fund through community investing as outlined in section 22-41-104.7.
(4) (a) No later than March 31, 2017, the board shall establish policies that are necessary and proper for the administration of this section, including but not limited to:
(I) A conflict of interest policy for board members;
(II) A policy establishing allowable investments that comply with section 22-41-104, section 22-41-104.7, and section 3 of article IX of the state constitution; and
(III) Recommendations to the general assembly regarding the distribution of income and interest described in section 22-41-102 (3)(h)(IV).
(b) The policies must be posted on the department of the treasury's website no later than April 5, 2017.
(5) The board may enter into contracts with private professional fund managers, investment advisors, or other investment professionals to provide expertise, technical support, and advice on investment market conditions and to provide support for the implementation of the community investment portfolio. Such contracts must be bid by employing standard public bidding practices including, but not limited to, the use of requests for information, requests for proposals, or any other standard vendor selection practices determined by the board to be best suited to selecting an appropriate private professional fund manager. Payments for these services will be paid from the interest and income of the public school fund subject to the requirements set forth in section 22-41-102.
(6) Repealed.
Source: L. 2016: Entire section added, (SB 16-035), ch. 250, p. 1022, � 2, effective August 10. L. 2022: (2) and (4)(a)(III) amended and (6) added, (HB 22-1146), ch. 252, p. 1842, � 1, effective May 26. L. 2025: (1)(a)(III), (3), (4)(a)(II), and (5) amended, (SB 25-167), ch. 449, p. 2576, � 2, effective June 4.
Editor's note: Subsection (6)(e) provided for the repeal of subsection (6), effective July 1, 2023. (See L. 2022, p. 1842.)
Cross references: For the legislative declaration in SB 16-035, see section 1 of chapter 250, Session Laws of Colorado 2016.