Contingent upon voter approval at the November 2026 general election of a proposed initiative to amend the state constitution to change existing law on transportation funding and to increase the amount of state revenue dedicated to road transportation (proposed initiative), from January 1, 2027, through July 1, 2030, the act reduces:The excise tax on gasoline from $0.22 per gallon to $0.14 per gallon;The excise tax on special fuel from $0.205 per gallon to $0.13 per gallon; Certain vehicle registration fees, including late fees; andThe road usage fees from $0.06 per gallon to $0.04 per gallon and then, beginning in state fiscal year 2027-28, as necessary to offset the amount of state revenue diverted to transportation uses as the result of the proposed initiative. The act creates the support road transportation fund (fund) contingent upon voter approval of the proposed initiative. The fund consists of state revenue dedicated to road transportation by the proposed initiative. Money in the fund is used to replace certain transportation-related general fund transfers for payments for the financed purchase of assets or certificate of participation agreements, and to replace certain general fund transfers to the state highway fund. The money remaining in the fund after making these transfers is allocated as follows:60% is paid to the state highway fund;23% is paid to counties for certain transportation expenses; and17% is paid to cities and incorporated towns for certain transportation expenses. The act clarifies that state revenue collected to support road transportation, as defined in the proposed initiative, does not include enterprise fee revenue. The act creates the road enterprise to complete preventive maintenance, repair, rehabilitation, and reconstruction projects to improve the condition of the roadway surface of the state highway system. The road enterprise is authorized to impose fees for oversize and overweight vehicles and longer vehicle combinations. The creation of the road enterprise is not contingent upon voter approval of the proposed initiative. Contingent upon the proposed initiative being withdrawn or not submitted for the November 2026 general election, the act creates the transportation funding working group to evaluate and make recommendations to the general assembly, the transportation commission, and the governor concerning funding state and local surface transportation maintenance, repair, capacity, and safety. Lastly, the act reduces the July 1, 2026, transfer from the general fund to the state highway fund from approximately $50 million to $500,000.(Note: This summary applies to this bill as enacted.)
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.)
The act limits the benefits pregnant women and children with a certain family household income and citizen or immigration status are eligible for under the state medical assistance program and the medical assistance program. Eligible pregnant women and children are subject to the following limitations on benefits:Beginning July 1, 2026, there is an annual cap on dental services in the amount of $1,100;Beginning January 1, 2027, behavioral health services offered must be provided on a fee-for-service basis only;Beginning January 1, 2027, services offered through the accountable care collaborative are no longer covered; andBeginning January 1, 2027, managed care services through the medical assistance program are no longer covered. Beginning January 1, 2027, children under 19 years old whose family household income does not exceed 260% of the federal poverty line, adjusted for family size, and who are not eligible for the medical assistance program due to their immigration status, are not eligible for home- and community-based services, community first choice, long-term home health, private duty nursing, hospice care, and nursing home care unless those children already receive those services on or before December 31, 2026. Beginning January 1, 2027, the act caps enrollment of children in the state medical assistance program at 25,000 children if either enrollment exceeds 25,000 or the expenditures for a fiscal quarter exceeds one-quarter of the appropriation for state medical assistance plus 5% to account for seasonality fluctuations. If one of the conditions is met, the enrollment cap begins on the first day of the month following 60 days after the department of health care policy and financing (state department) determines that the condition was met. The act repeals provisions requiring the state department to develop an outreach and enrollment strategy for enrolling eligible groups into new coverage options and repeals the state children's basic health plan. The act appropriates $3,378,166 from the general fund to the state department to implement the act and reduces appropriations to the state department by $14,202,723 if certain conditions are met.(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 and allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised by the repeal of the downloadable software sales and use tax exemption elsewhere in the act. Beginning January 1, 2027, the act repeals the downloaded software sales and use tax exemption so that all software that is available for repeated sale and license qualifies as tangible property and thus is subject to sales and use tax. The act exempts from sales and use tax downloaded software governed by a negotiable license agreement or developed for use by a particular user. For each July, August, November, and December in 2027 and 2028, the act allows a qualifying retailer in the food or drink industry to deduct from state net taxable sales the lesser of state net taxable sales or $14,000. Currently, 15% of the net revenue collected as sales and use tax is credited to the general fund, less 1.655% (allocation percentage), which is credited to the housing development grant fund. Beginning January 1, 2027, and until December 31, 2028, the act reduces the allocation percentage to 1.629%. Beginning January 1, 2029, the allocation percentage is 1.625%. Beginning July 1, 2026, the act creates a sales and use tax exemption for a retailer selling food or drink (retailer) whose sales of prepared food exceed 25% of the retailer's sales revenue equal to 100% of the price the retailer paid for gas and electricity. A retailer whose sales of prepared food are 25% or less of the retailer's sales revenue is allowed a credit against the sales taxes otherwise due equal to 0.5% of the retailer's prepared food sales revenue. The repeal of the downloadable software sales and use tax exemption applies to the sale, storage, use, and consumption of tangible personal property on or after January 1, 2027. Provisions of the act are contingent upon House Bill No. 26-1221 and House Bill No. 26-1222 not becoming law. For the 2026-27 state fiscal year, the act appropriates $48,326 from the general fund to the department of revenue for tax administration system support and personal services.(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.)
