Under current law, the general fund reserve requirement is equal to 15% of the amount appropriated for expenditure from the general fund for that fiscal year minus:The difference between $100,000,000 and the proceeds of the sale of insurance premium and corporate tax credits that are credited to the health insurance affordability cash fund; andUnless money held in an escrow account in connection with the university of northern Colorado's college of osteopathic medicine is released, an additional $41,250,000. The act lowers the reserve requirement to 13% for state fiscal years 2025-26 and 2026-27 and then raises it back to 15% for state fiscal years 2027-28 and later.(Note: This summary applies to this bill as enacted.)
Under current law, the state treasurer is required to transfer $10.5 million from the general fund to the multimodal transportation and mitigation options fund every July 1 beginning on July 1, 2024, and ending on July 1, 2031. The act eliminates this annual transfer only for 2026, 2027, and 2028. The act decreases the cash funds appropriation from the multimodal transportation and mitigation options fund created in the annual general appropriation act for the 2026-27 state fiscal year made to the department of transportation for multimodal transportation projects by $10.5 million.(Note: This summary applies to this bill as enacted.)
The act requires the state treasurer to transfer money from certain cash funds to the general fund. On June 12, 2026, the state treasurer is required to transfer $16,747 from the local governmental entity backfill cash fund to the general fund. On June 28, 2026, the state treasurer is required to transfer $5.3 million from the school and child care clean drinking water fund to the general fund. On June 30, 2026, the state treasurer is required to transfer the following amounts to the general fund:$1,057,001 from the scale-up grant fund;$796,959 from the qualified apprenticeship intermediary grant fund;$200,000 from the immediate payment fund;$500,000 from the Colorado uninsured employer fund;$750,000 from the records and reports fund;$9.2 million from the kickstarter program master account, in consultation with collegeinvest;$200,000 from the electronic recording technology fund;$250,000 from the tobacco settlement defense account within the tobacco litigation settlement cash fund;$1 million from the Colorado bureau of investigation identification unit fund;$11 million from the information technology revolving fund;$10 million from the technology risk prevention and response fund;$15 million from the small business recovery and resiliency fund;$1 million from the supplemental state contribution fund;The unexpended and unencumbered balance of the controlled maintenance trust fund;$1 million from the account for the department of public safety within the indirect costs excess recovery fund;$800,000 from the unused state-owned real property fund;$5.4 million from the supplier database cash fund;$215,000 from the fixed-wing and rotary-wing ambulances cash fund;$5,162,373 from the community impact cash fund;$3 million from the mobile home park water quality fund; $7,252,996 from the severance tax operational fund; and$19.4 million from the local government severance tax fund. On July 1, 2026, the state treasurer is required to transfer the following amounts to the general fund:$400,000 from the peace officers behavioral health support and community partnership fund;$117,551 from the child care facility development cash fund;$427,113 from the multidisciplinary crime prevention and crisis intervention grant fund;$111,191 from the law enforcement workforce recruitment, retention, and tuition grant fund;$686,890 from the state's mission for assistance in recruiting and training (SMART) policing grant fund;$15 million from the 'Infrastructure Investment and Jobs Act' cash fund; andAn amount equal to the unexpended and unencumbered balance of the electrifying school buses grant program cash fund minus $799,200. On June 30, 2027, the state treasurer is required to transfer the following amounts to the general fund:$20 million from the information technology revolving fund;The unexpended and unencumbered balance of the decarbonization tax credits administration cash fund; $5 million from the community impact cash fund;$11,150,000 from the severance tax operational fund; and$27.3 million from the local government severance tax fund. On June 30, 2027, and on each June 30 thereafter through June 30, 2033, the state treasurer is required to transfer $400,000 from the mobile home park resident empowerment loan and grant program fund.(Note: This summary applies to this bill as enacted.)
The act repeals the teacher recruitment education and preparation program (TREP) after the 2026-27 budget year. The act repeals the teacher recruitment and preparation program and pathways in early technology early college high schools working group on July 1, 2027. On July 1, 2026, the act requires the state treasurer to transfer $799,200 from the electrifying school buses grant program cash fund to the state education fund. The general assembly declares that TREP may receive funding from the state education fund. For the 2026-27 state fiscal year, the act caps the amount that a district receives for a student participating in TREP under the school finance formulas at $7,104. The act increases the cash fund appropriation to the department of education for state share of districts' total program funding and decreases the cash fund appropriation for extended high school in the 2026-27 long bill in order to fund TREP for the 2026-27 state fiscal year. The amount of the changes is contingent on whether House Bill 26-1364, concerning the calculation of the consumer price index for the 2025 calendar year, becomes law.(Note: This summary applies to this bill as enacted.)
If an audit of a medicaid provider who provides nonemergency medical transportation services or pediatric behavioral therapy is initiated after July 1, 2026, for services provided from January 1, 2022, through December 31, 2023, the act authorizes the department of health care policy and financing (HCPF) to determine and recover overpayments to a provider using statistical sampling and extrapolation. If an audit identifies a statistically significant pattern of alleged overpayments to a provider, the act authorizes the state auditor to use the same statistical sampling and extrapolation methods to audit services provided by the provider from January 1, 2024, through December 31, 2025. If the audit identifies an alleged overpayment, HCPF is required to issue a notice of the alleged overpayment within 60 days after the alleged overpayment is identified. The notice of alleged overpayment must include the basis of the alleged overpayment, the rationale for the alleged overpayment, the methodology used to calculate the alleged overpayment, and information on how HCPF identified the alleged overpayment. If HCPF enters into a contract for the purpose of conducting an audit, the contract must not be a contingency-based contract based on a percentage of the amount of recovery collected from the provider. After HCPF completes an audit of a provider, the state auditor's office is required to conduct an examination to determine that proper statistical sampling and extrapolation methods were used by HCPF when determining whether overpayments were made to a provider. The state auditor shall annually present a report of the findings to the legislative audit committee and the joint budget committee. The act reduces the general fund appropriation to HCPF for medical and long-term care services for Medicaid-eligible individuals by $6,861,775 and increases the cash fund appropriation to HCPF for medical and long-term care services for Medicaid-eligible individuals by $13,723,550.(Note: This summary applies to this bill as enacted.)
Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments. The act eliminates the distribution to local governments and allocates the gross retail marijuana sales tax revenue as follows, on and after July 1, 2026:73.17% to the marijuana tax cash fund (fund);11.33% to the state public school fund;1.5% to the marijuana cash fund; and14% to the general fund. The act also directs the state treasurer to transfer from the fund to the state public school fund on June 30, 2027, and on each June 30 thereafter, an amount equal to the difference between the balance of the fund and:15% of the amount that the general assembly appropriated from the fund in that fiscal year; andAny amount of the fund designated to be part of the emergency reserve for that fiscal year.(Note: This summary applies to this bill as enacted.)
The act creates the cradle to career grant program (grant program) in the department of human services (CDHS) to provide grants to a local government, local education provider, state institution of higher education, Indian tribe or tribal organization, or community-based nonprofit or not-for-profit organization (eligible entity) to promote coordinated community-based supports and services that open opportunities for economic mobility from poverty. The grant program must connect children and youth with high-quality educational and extracurricular programming and families with key health and social services in order to improve prenatal and early childhood outcomes, student achievement, workforce readiness, and wealth-building opportunities. The act creates the cradle to career advisory council (council) to approve or disapprove CDHS's potential grant recipients and to collaborate with CDHS to develop grant program guidelines and criteria for awarding grants. Council members must be Colorado residents and must not provide financial support for the grant program. To receive a grant, an eligible entity must submit an application that includes an economic mobility needs assessment and a comprehensive proposal to address the needs within its designated service area. The application must identify prospective community partners and subcontractors. The act caps the amount that CDHS may award in connection with a single grant application at 49% of available grant program money. A grant recipient must comply with various health and safety, financial responsibility, and anti-discrimination safeguards. Each grant recipient must annually report to CDHS addressing the recipient's progress using a set of performance indicators to assess the economic mobility outcomes and impacts associated with the grant award. CDHS must make a related report to the health and human services committees of the general assembly and the governor each year. CDHS may seek, accept, and expend gifts, grants, and donations for grant-program-related purposes. If CDHS does not receive $900,000 for those purposes on or before December 31, 2028, the grant program is repealed. The general assembly shall not appropriate general fund dollars for grant program operations.(Note: This summary applies to this bill as enacted.)
For property tax years commencing on or after January 1, 2027, the act makes it a petty offense for a person, in connection with nonresidential property, to certify the truth and accuracy of information provided to the assessor in connection with property valuation when the information is not true and accurate as to every material matter. The act also makes it a petty offense for a person, in connection with nonresidential property, to willfully aid or assist in filing information that is fraudulent or false in connection with property valuation. The act specifies the sentencing requirements for a person convicted of a petty offense pursuant to the act and authorizes the county attorney to file and prosecute any action arising under the act in the county court of the county in which the property is located. If a court of competent jurisdiction finds that a taxpayer committed a petty offense pursuant to the act, the property owner is not entitled to penalty interest earned on any tax refund; the board of assessment appeals does not have the authority to determine whether a taxpayer has forfeited this right. Existing law requires a petitioner appealing either a valuation of rent-producing commercial real property to the board of assessment appeals or a denial of an abatement of taxes to the board of county commissioners to provide certain information to the board of equalization or to the board of county commissioners. The act requires the petitioner to provide information that is specific to the property at issue. For property tax years commencing on or after January 1, 2027, the act allows a county to file a motion with the board of assessment appeals noting the county's preference that a case appealing a decision of the board of assessment appeals be heard in district court. The act allows the petitioner to elect whether the case will be heard by the board of assessment appeals or the district court.(Note: This summary applies to this bill as enacted.)
Current law imposes a tax on the first sale or transfer of unprocessed retail marijuana at a rate of 15% of the average market rate of the unprocessed retail marijuana. The 'average market rate' is currently defined as the average price, as determined by the department of revenue (department), of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities in the state to retail marijuana product manufacturing facilities or retail marijuana stores. The act specifies that 'outdoor unprocessed retail marijuana' is cultivated under natural sunlight and weather conditions without artificial light or structures, except under limited specified circumstances, and 'indoor unprocessed retail marijuana' is cultivated in any manner other than 'outdoor unprocessed retail marijuana.' The act also amends the existing definition of 'average market rate' to require separate rates for fresh frozen indoor unprocessed retail marijuana and fresh frozen outdoor unprocessed retail marijuana. The act requires the department to adopt rules to establish the rates for fresh frozen indoor unprocessed retail marijuana and fresh frozen outdoor unprocessed retail marijuana on or before July 1, 2027. In addition, the existing definition of 'average market rate' requires that unprocessed retail marijuana for extractions have a separate average market rate that is lower than the rate for unprocessed retail marijuana for direct sale to consumers. The act maintains this requirement. The act also requires the department to publish a general description of the methodology and data sources used to establish the rate for each average market rate category of unprocessed retail marijuana.(Note: This summary applies to this bill as enacted.)
The act:Authorizes the health insurance affordability enterprise (enterprise), on or after January 1, 2027, to issue revenue bonds of up to $100 million to fund enterprise programs, secured by the enterprise's revenues, and require the enterprise to pay bond obligations before allocating revenues for enterprise programs;Allows the enterprise to invest specified money in the health insurance affordability cash fund (cash fund) without regard to otherwise applicable requirements for such investments and to contract with private professional fund managers to advise on investment strategies;Modifies the allocation of enterprise revenue among authorized purposes and allows the enterprise to reallocate unexpended amounts for specified purposes;Directs the enterprise to require qualified individuals who are enrolled in state-subsidized individual health coverage plans eligible for subsidies from the enterprise to pay premiums established in rules adopted by the commissioner, in consultation with the health insurance affordability board (board);Requires the enterprise to adjust the statewide average premium reduction under the reinsurance program to 18% and to reduce the amount of bonds issued to account for the reduced costs for the reinsurance program;Directs the board, in recommending parameters for implementing subsidies for state-subsidized individual health coverage plans, to recommend coverage that prioritizes enrollment stability and customer predictability; when seeking input on its recommendations regarding plans, coverage, and the number of eligible slots, to enable feedback in at least English and Spanish and in other languages upon request; and to indicate how it incorporated such feedback into its final recommendations;Directs the enterprise to conduct or contract a third party to conduct a study to evaluate the feasibility of restructuring the enterprise programs to increase health insurance affordability and maximize enrollment in health insurance plans;Requires the enterprise to submit 3 written reports and make one in-person presentation to the joint budget committee each year regarding the status of the cash fund and, as part of its in-person presentation in January 2027, to provide an analysis of the effects of changing the statewide average premium reduction under the reinsurance program to 15% and of creating a tiered, income-based, structure for premium assistance for individuals who purchase insurance on the Colorado health benefit exchange (exchange);Repeals the tax credit for contributions to the exchange and replaces it with a tax credit for contributions to the enterprise; andDirects the state treasurer to transfer $40 million from the marijuana tax cash fund to the cash fund by June 30, 2026, reduces to $60 million the designation of money in the marijuana tax cash fund as the state emergency reserve for the 2025-26 and 2026-27 state fiscal years, and increases by $40 million the value of the capitol annex building for purposes of the state emergency reserve for the 2025-26 and 2026-27 state fiscal years.(Note: This summary applies to this bill as enacted.)
