Senate Bill 25-214 Preamended

A Bill for an Act

• Page 1, Line 101Concerning reimbursements for eligible meals provided

• Page 1, Line 102through the healthy school meals for all program,

• Page 1, Line 103and, in connection therewith, making and reducing an

• Page 1, Line 104appropriation.

Bill Summary

(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 http://leg.colorado.gov/.)

Joint Budget Committee. The healthy school meals for all program (program) reimburses participating school food authorities for meals that those authorities provide to students without charge. Section 2 of the bill allows for the amount of these reimbursements to be modified in 2 different scenarios. First, if a referred measure that would, beginning with the 2026 state income tax year, increase state taxes annually by at least $90 million in connection with the program is not approved by the voters voting on the referred measure at the 2025 statewide election, the department of education (department) is required to only provide reimbursements to participating school food authorities for meals served at eligible sites. Eligible sites are those that either:

• Qualify for the community eligibility provision program, as that program exists on November 15, 2025; or
• Is identified as an eligible site by the department based on the amount that the general assembly appropriates for the purpose of providing reimbursements to a participating school food authority for offering eligible meals without charge and the percentage of a site's student enrollment who are certified as eligible for free meals based on documentation of benefit receipt or categorical eligibility as described in federal rule, or any successor regulations.
• The state treasurer to transfer an amount from the fund to the state education fund equal to the total amount of expenditures from the state education fund for the program for state fiscal years 2022-23, 2023-24, 2024-25, and 2025-26 minus the amount of additional tax revenue deposited in the state education fund as a result of the increase in state income tax generated in connection with voter approval of the program for those same fiscal years; and
• The department to provide reimbursements to a participating school food authority for offering eligible meals without charge.

Second, if the department, in consultation with the office of state planning and budgeting, determines that the amount that the general assembly appropriated for the purpose of providing reimbursements to a participating school food authority is less than the costs of the department providing those reimbursements, the department may request a supplemental appropriation or an overexpenditure. If that request is rejected, the department may determine a prorated reimbursement amount for the reimbursements that the department provides through the program to each participating school food authority for the remainder of that budget year.

Under current law, if the department determines that there is an insufficient amount of money in the healthy school meals for all program cash fund (fund) for the department to provide reimbursements to a participating school food authority for offering eligible meals without charge, the department may make an expenditure from the general fund to provide those reimbursements. Sections 4 and 6 limit this expenditure authority to fiscal years commencing on or before July 1, 2024.

Additionally, under current law, the general assembly is required to appropriate money from the state education fund to cover program costs for which there is not sufficient money in the fund for state fiscal years 2023-24 and 2024-25. Section 3 allows the general assembly to appropriate money from the state education fund into state fiscal year 2025-26. Section 4 requires the department, on January 15, 2027, in consultation with the office of state planning and budgeting, to report to the joint budget committee on whether there is a sufficient balance in the fund for:

Section 8 decreases the appropriation for school meal reimbursements provided through the program from the general fund by $42,240,242 and increases the appropriation from the state education fund by $8,119,271 for the same purpose.

• This Unofficial Version Includes Committee

• Amendments Not Yet Adopted on Second Reading

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  Legislative declaration. The general assembly

• Page 3, Line 3finds and declares that, in the event of unanticipated federal action,

• Page 3, Line 4changes in the amount of tax revenue collected in connection with the

• Page 3, Line 5Healthy School Meals for All program, or changes in the utilization of the

• Page 3, Line 6Healthy School Meals for All program it is the general assembly's intent

• Page 3, Line 7to prioritize reimbursing the cost of meals served for those students who

• Page 3, Line 8are certified as eligible for free meals based on documentation of benefit

• Page 3, Line 9receipt or categorical eligibility as described in 7 CFR 245.9 (f)(1)(iii)

• Page 3, Line 10and by those schools that participate in the federal community eligibility provision program created in 42 U.S.C. sec. 1759a (a)(1)(F).

• Page 3, Line 11SECTION 2.  In Colorado Revised Statutes, 22-82.9-204, amend

• Page 3, Line 12(1)(a)(I), (1)(a)(II), (1)(b), and (2); and add (1)(b.3) and (1)(b.5) as follows:

• Page 3, Line 1322-82.9-204.  Healthy school meals for all program - created -

• Page 3, Line 14advisory group - report - rules - definition - repeal. (1) (a)  There is

• Page 3, Line 15created in the department the healthy school meals for all program

• Page 4, Line 1through which each school food authority that chooses to participate in the program:

• Page 4, Line 2(I) Offers eligible meals, without charge, to all students enrolled

• Page 4, Line 3in the public schools that are served by the participating school food

• Page 4, Line 4authority, that participate in the national school lunch program or national

• Page 4, Line 5school breakfast program, and for which the department may

• Page 4, Line 6reimburse the participating school food authority pursuant to subsection (1)(b) or (1)(b.3) of this section;

• Page 4, Line 7(II)  Receives reimbursement for the meals as described in subsection (1)(b)of this section this subsection (1);

• Page 4, Line 8(b) (I)  For eligible meals served before January 1, 2026, the

• Page 4, Line 9amount of the reimbursement provided through the program to each

• Page 4, Line 10participating school food authority for each budget year, is equal to the

• Page 4, Line 11federal free reimbursement rate multiplied by the total number of eligible

• Page 4, Line 12meals that the participating school food authority serves during the

• Page 4, Line 13applicable budget year minus the total amount of reimbursement for

• Page 4, Line 14eligible meals served during the applicable budget year that the

• Page 4, Line 15participating school food authority receives pursuant to the national

• Page 4, Line 16school breakfast program, the national school lunch program, sections

• Page 4, Line 1722-54-123 and 22-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 4, Line 18(II) (A)  Notwithstanding any law to the contrary, if a

• Page 4, Line 19referred measure that would, in combination with section

• Page 4, Line 2039-22-104 (3)(p.5), result in the collection of at least one

• Page 4, Line 21hundred fifty million dollars for the income tax year

• Page 4, Line 22commencing on January 1, 2026, in connection with the healthy

• Page 4, Line 23school meals for all program, as estimated in the fiscal impact

• Page 5, Line 1statement prepared pursuant to section 1-40-124.5 for that

• Page 5, Line 2referred measure, is approved by the voters voting on the

• Page 5, Line 3referred measure at the statewide election held on November

• Page 5, Line 44, 2025, for eligible meals served on or after January 1, 2026, the

• Page 5, Line 5amount of the reimbursement provided through the program to

• Page 5, Line 6each participating school food authority for each budget year

• Page 5, Line 7is equal to the federal free reimbursement rate multiplied by

• Page 5, Line 8the total number of eligible meals that the participating school

• Page 5, Line 9food authority serves during the applicable budget year minus

• Page 5, Line 10the total amount of reimbursement for eligible meals served

• Page 5, Line 11during the applicable budget year that the participating school

• Page 5, Line 12food authority receives pursuant to the national school

• Page 5, Line 13breakfast program, the national school lunch program,

• Page 5, Line 14sections 22-54-123 and 22-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 5, Line 15(B)  If a referred measure that would, in combination with

• Page 5, Line 16section 39-22-104 (3)(p.5), result in the collection of at least one

• Page 5, Line 17hundred fifty million dollars for the income tax year

• Page 5, Line 18commencing on January 1, 2026, in connection with the healthy

• Page 5, Line 19school meals for all program, as estimated in the fiscal impact

• Page 5, Line 20statement prepared pursuant to section 1-40-124.5 for that

• Page 5, Line 21referred measure, is not approved by the voters voting on the

• Page 5, Line 22referred measure at the statewide election held on November 4, 2025, this subsection (1)(b)(II) is repealed, effective July 1, 2026.

• Page 5, Line 23(b.3) (I)  If a referred measure that would, in combination

• Page 5, Line 24with section 39-22-104 (3)(p.5), result in the collection of at

• Page 5, Line 25least one hundred fifty million dollars for the income tax year

• Page 6, Line 1commencing on January 1, 2026, in connection with the healthy

• Page 6, Line 2school meals for all program, as estimated in the fiscal impact

• Page 6, Line 3statement prepared pursuant to section 1-40-124.5 for that

• Page 6, Line 4referred measure, is not approved by the voters voting on the

• Page 6, Line 5referred measure at the statewide election held on November

• Page 6, Line 64, 2025, for eligible meals served on or after January 1, 2026, the

• Page 6, Line 7department shall only reimburse participating school food authorities for meals served at eligible sites.

• Page 6, Line 8(II)  The amount of the reimbursement provided through

• Page 6, Line 9the program to each participating school food authority for

• Page 6, Line 10each budget year for eligible meals served at eligible sites on or

• Page 6, Line 11after January 1, 2026, is equal to the federal free reimbursement

• Page 6, Line 12rate multiplied by the total number of eligible meals that the

• Page 6, Line 13participating school food authority serves at eligible sites

• Page 6, Line 14during the applicable budget year minus the total amount of

• Page 6, Line 15reimbursement for eligible meals served at eligible sites during

• Page 6, Line 16the applicable budget year that the participating school food

• Page 6, Line 17authority receives pursuant to the national school breakfast

• Page 6, Line 18program, the national school lunch program, sections 22-54-123

• Page 6, Line 19and 22-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 6, Line 20(III)  As used in this subsection (1)(b.3), unless the context

• Page 6, Line 21otherwise requires, "eligible site" means a site that, for the school year during the relevant budget year:

• Page 6, Line 22(A)  Qualifies for the community eligibility provision program, as that program exists on November 15, 2025; or

• Page 6, Line 23(B)  Is identified as an eligible site by the department based

• Page 7, Line 1on the amount that the general assembly appropriates for the

• Page 7, Line 2purpose of providing reimbursements to a participating school

• Page 7, Line 3food authority for offering eligible meals without charge

• Page 7, Line 4pursuant to this subsection (1) and the percentage of a site's

• Page 7, Line 5student enrollment who are certified as eligible for free meals

• Page 7, Line 6based on documentation of benefit receipt or categorical

• Page 7, Line 7eligibility as described in 7 CFR 245.9 (f)(1)(iii) or any successor regulations.

• Page 7, Line 8(IV)  If a referred measure that would, in combination with

• Page 7, Line 9section 39-22-104 (3)(p.5), result in the collection of at least one

• Page 7, Line 10hundred fifty million dollars for the income tax year

• Page 7, Line 11commencing on January 1, 2026, in connection with the healthy

• Page 7, Line 12school meals for all program, as estimated in the fiscal impact

• Page 7, Line 13statement prepared pursuant to section 1-40-124.5 for that

• Page 7, Line 14referred measure, is approved by the voters voting on the

• Page 7, Line 15referred measure at the statewide election held on November 4, 2025, this subsection (1)(b.3) is repealed, effective July 1, 2026.

• Page 7, Line 16(b.5) (I)  If the department, in consultation with the office

• Page 7, Line 17of state planning and budgeting, estimates, for any budget year,

• Page 7, Line 18that the amount that the general assembly appropriated for the

• Page 7, Line 19purpose of providing reimbursements to a participating school

• Page 7, Line 20food authority for offering eligible meals without charge

• Page 7, Line 21pursuant to this subsection (1) after January 1, 2026, will be less

• Page 7, Line 22than the costs of the department providing those

• Page 7, Line 23reimbursements, the department shall provide notice of this

• Page 7, Line 24estimation to the joint budget committee of the general

• Page 7, Line 25assembly and the executive committee of the legislative council

• Page 8, Line 1of the general assembly. In addition to the notice described in

• Page 8, Line 2this subsection (1)(b.5)(I), the department may submit a

• Page 8, Line 3supplemental appropriation request to the joint budget

• Page 8, Line 4committee or a request for an overexpenditure in accordance with section 24-75-111.

• Page 8, Line 5(II) (A)  As soon as practicable after the department

• Page 8, Line 6submits a request for a supplemental appropriation pursuant to

• Page 8, Line 7subsection (1)(b.5)(I) of this section, the joint budget committee

• Page 8, Line 8of the general assembly shall inform the department whether

• Page 8, Line 9it will approve or reject the department's request. If the joint

• Page 8, Line 10budget committee indicates that it will reject the department's

• Page 8, Line 11request, the department may determine a prorated, reduced

• Page 8, Line 12reimbursement amount for the reimbursements that the

• Page 8, Line 13department provides pursuant to subsection (1)(b) or (1)(b.3) of this section as applicable for the remainder of that budget year.

• Page 8, Line 14(B)  If, within thirty days of the department submitting a

• Page 8, Line 15request for an overexpenditure pursuant to subsection (1)(b.5)(I)

• Page 8, Line 16of this section, the department's request has not been granted,

• Page 8, Line 17the department may determine a prorated, reduced

• Page 8, Line 18reimbursement amount for the reimbursements that the

• Page 8, Line 19department provides pursuant to subsection (1)(b) or (1)(b.3) of this section as applicable for the remainder of that budget year.

• Page 8, Line 20(C)  Before providing the prorated, reduced

• Page 8, Line 21reimbursement amounts described in subsections(1)(b.5)(II)(A)

• Page 8, Line 22and (1)(b.5)(II)(B)of this section, the department shall provide

• Page 8, Line 23timely written notice to each participating school food

• Page 8, Line 24authority.

• Page 9, Line 1(2)  A school food authority that chooses to participate in the

• Page 9, Line 2program must annually give notice of participation to the department as

• Page 9, Line 3provided by rule of the state board. At a minimum, the notice must

• Page 9, Line 4include evidence that the school food authority is participating in

• Page 9, Line 5provisional programming if deemed necessary by the department. The

• Page 9, Line 6department may require school food authority modifications to the

• Page 9, Line 7program throughout the year to maximize a school food authority's federal reimbursements as deemed necessary by the department.

• Page 9, Line 8SECTION 3.  In Colorado Revised Statutes, 22-82.9-209, amend (2) as follows:

• Page 9, Line 922-82.9-209.  Program - funding. (2) (a)  For the 2023-24 budget

• Page 9, Line 10year and the 2024-25 budget year, the general assembly shall appropriate

• Page 9, Line 11money from the state education fund created in section 17 (4) of article

• Page 9, Line 12IX of the state constitution to cover program costs for which there is not sufficient money in the healthy school meals for all cash fund.

• Page 9, Line 13(b)  For the 2025-26 budget year, the general assembly may

• Page 9, Line 14appropriate money from the state education fund created in

• Page 9, Line 15section 17 (4) of article IX of the state constitution to cover

• Page 9, Line 16program costs for which there is not sufficient money in the healthy school meals for all cash fund.

• Page 9, Line 17SECTION 4.  In Colorado Revised Statutes, 22-82.9-211, amend (3)(a)(I) and (5); and add (8) as follows:

• Page 9, Line 1822-82.9-211.  Healthy school meals for all program cash fund

• Page 9, Line 19- creation - uses - reporting requirements - definitions - repeal.

• Page 9, Line 20(3) (a)  Subject to annual appropriation by the general assembly, the

• Page 9, Line 21department may expend money from the cash fund for the following

• Page 9, Line 22purposes:

• Page 10, Line 1(I)  Providing reimbursements to a participating school food

• Page 10, Line 2authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1)(b) section 22-82.9-204 (1);

• Page 10, Line 3(5) (a)  For fiscal years commencing on or before July 1,

• Page 10, Line 42024, if the department determines that there is an insufficient amount of

• Page 10, Line 5money in the cash fund to provide for an expenditure authorized by the

• Page 10, Line 6annual appropriation from the cash fund for the purposes described in

• Page 10, Line 7subsection (3)(a)(I) of this section, the department may make the expenditure from the general fund.

• Page 10, Line 8(b)  This subsection (5) is repealed, effective July 1, 2026.

• Page 10, Line 9(8) (a)  On or before January 15, 2027, the department, in

• Page 10, Line 10consultation with the office of state planning and budgeting,

• Page 10, Line 11shall report to the joint budget committee of the general

• Page 10, Line 12assembly on whether there is a sufficient balance in the cash fund for:

• Page 10, Line 13(I)  The state treasurer to transfer an amount from the

• Page 10, Line 14cash fund to the state education fund equal to the total

• Page 10, Line 15amount of expenditures from the state education fund for the

• Page 10, Line 16purposes of subsection (3) of this section minus the amount of

• Page 10, Line 17additional tax revenue deposited in the state education fund as

• Page 10, Line 18a result of section 39-22-104 (3)(p.5) for state fiscal years 2022-23, 2023-24, 2024-25, and 2025-26; and

• Page 10, Line 19(II)  The department to provide reimbursements to a

• Page 10, Line 20participating school food authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1).

• Page 10, Line 21(b)  This subsection (8) is repealed, effective July 1, 2027.

• Page 10, Line 22SECTION 5.  In Colorado Revised Statutes, 22-82.9-208, amend (1)(a)(II) as follows:

• Page 11, Line 122-82.9-208.  Report - audit. (1) (a)  On or before December 1,

• Page 11, Line 22024, and on or before December 1 every two years thereafter, the

• Page 11, Line 3department shall prepare a report concerning the implementation of

• Page 11, Line 4section 22-82.9-204 and sections 22-82.9-205, 22-82.9-206, and

• Page 11, Line 522-82.9-207, to the extent those sections are in effect as provided in section 22-82.9-204 (4)(b). At a minimum, the report must describe:

• Page 11, Line 6(II)  The effect of the use of local food purchasing grants on the

• Page 11, Line 7amount of Colorado grown, raised, or processed products purchased by

• Page 11, Line 8participating school food authorities and include a compilation of the

• Page 11, Line 9information reported by participating school food authorities pursuant to section 22-82.9-205 (1)(b) section 22-82.9-205 (1);

• Page 11, Line 10SECTION 6.  In Colorado Revised Statutes, 24-75-109, amend (1)(f) and (5) as follows:

• Page 11, Line 1124-75-109.  Controller may allow expenditures in excess of

• Page 11, Line 12appropriations - limitations - appropriations for subsequent fiscal

• Page 11, Line 13year restricted - repeal. (1)  For the purpose of closing the state's books,

• Page 11, Line 14and subject to the provisions of this section, the controller may, on or

• Page 11, Line 15after May 1 of any fiscal year and before the forty-fifth day after the close

• Page 11, Line 16thereof, upon approval of the governor, allow any department, institution,

• Page 11, Line 17or agency of the state, including any institution of higher education, to

• Page 11, Line 18make an expenditure in excess of the amount authorized by an item of appropriation for such fiscal year if:

• Page 11, Line 19(f)  The overexpenditure is by the department of education for

• Page 11, Line 20providing reimbursements to a participating school food authority for

• Page 11, Line 21offering eligible meals without charge, pursuant to section 22-82.9-204

• Page 11, Line 22(1)(b) section 22-82.9-204 (1), for state fiscal years commencing on or before July 1, 2024; or

• Page 12, Line 1(5)  The limitation on general fund appropriations and the

• Page 12, Line 2requirement for a general fund reserve contained in section 24-75-201.1

• Page 12, Line 3shall not apply to overexpenditures from the general fund for medicaid

• Page 12, Line 4programs allowed pursuant to subsection (1)(a) of this section to

• Page 12, Line 5overexpenditures by the department of education allowed pursuant to

• Page 12, Line 6subsection (1)(f) of this section or to supplemental general fund

• Page 12, Line 7appropriations for medicaid programs enacted pursuant to subsection (4)

• Page 12, Line 8of this section. Overexpenditures for all other purposes allowed pursuant

• Page 12, Line 9to subsection (1) of this section and supplemental general fund

• Page 12, Line 10appropriations for all other purposes enacted pursuant to subsection (4)

• Page 12, Line 11of this section shall be considered appropriations for the fiscal year in

• Page 12, Line 12which the overexpenditure was allowed and shall accordingly be subject to the limitations and requirements of section 24-75-201.1.

• Page 12, Line 13SECTION 7.  Effective date. This act takes effect upon passage;

• Page 12, Line 14except that section 24-75-109 (5), Colorado Revised Statutes, as amended in section 6 of this act, takes effect July 1, 2025.

• Page 12, Line 15SECTION 8.  Appropriation - adjustments to 2025 long bill.

• Page 12, Line 16(1)  To implement this act, appropriations made in the annual general

• Page 12, Line 17appropriation act for the 2025-26 state fiscal year to the department of education for use by school district operations are adjusted as follows:

• Page 12, Line 18(a)  The general fund appropriation for school meal reimbursements is decreased by $42,240,242; and

• Page 12, Line 19(b)  The cash funds appropriation from the state education fund

• Page 12, Line 20created in section 17 (4)(a) of article IX of the state constitution for school meal reimbursements is increased by $8,119,271.

• Page 12, Line 21SECTION 9.  Safety clause. The general assembly finds,

• Page 13, Line 1determines, and declares that this act is necessary for the immediate

• Page 13, Line 2preservation of the public peace, health, or safety or for appropriations for

• Page 13, Line 3the support and maintenance of the departments of the state and state institutions.