Colorado Lawmakers Approve Downgraded Investments

DENVER (AP) - After a delay, Colorado lawmakers are moving ahead with legislation to tweak an unusual state law that banned local governments from investing in federal securities.

A bill given final approval 65-0 in the House Monday changes a state requirement that local governments invest taxpayer money only in the highest-rated securities. Last year's downgrade of federal securities by Standard & Poor's rating agency meant that cities and counties were barred from investing in federally backed securities.

Hours after the House vote, a Senate committee approved the change. Gov. John Hickenlooper could have the bill by midweek.

In the House, Democratic Rep. Dan Pabon called his bill an "absolute lifeline" for local governments.

LINK: Read House Bill 1005

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