Senate Bill 25-214 Reengrossed

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.

• 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 is approved by the voters voting

• Page 5, Line 1on the referred measure at the statewide election held on

• Page 5, Line 2November 4, 2025, for eligible meals served on or after January

• Page 5, Line 31, 2026, the amount of the reimbursement provided through the

• Page 5, Line 4program to each participating school food authority for each

• Page 5, Line 5budget year is equal to the federal free reimbursement rate

• Page 5, Line 6multiplied by the total number of eligible meals that the

• Page 5, Line 7participating school food authority serves during the

• Page 5, Line 8applicable budget year minus the total amount of

• Page 5, Line 9reimbursement for eligible meals served during the applicable

• Page 5, Line 10budget year that the participating school food authority

• Page 5, Line 11receives pursuant to the national school breakfast program,

• Page 5, Line 12the national school lunch program, sections 22-54-123 and

• Page 5, Line 1322-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 5, Line 14(B)  If a referred measure that would, in combination with

• Page 5, Line 15section 39-22-104 (3)(p.5), result in the collection of at least one

• Page 5, Line 16hundred fifty million dollars for the income tax year

• Page 5, Line 17commencing on January 1, 2026, in connection with the healthy

• Page 5, Line 18school meals for all program is not approved by the voters

• Page 5, Line 19voting on the referred measure at the statewide election held

• Page 5, Line 20on November 4, 2025, this subsection (1)(b)(II) is repealed, effective July 1, 2026.

• Page 5, Line 21(b.3) (I)  If a referred measure that would, in combination

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

• Page 5, Line 23least one hundred fifty million dollars for the income tax year

• Page 5, Line 24commencing on January 1, 2026, in connection with the healthy

• Page 5, Line 25school meals for all program is not approved by the voters

• Page 6, Line 1voting on the referred measure at the statewide election held

• Page 6, Line 2on November 4, 2025, for eligible meals served on or after

• Page 6, Line 3January 1, 2026, the department shall only reimburse

• Page 6, Line 4participating school food authorities for meals served at eligible sites.

• Page 6, Line 5(II)  The amount of the reimbursement provided through

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

• Page 6, Line 7each budget year for eligible meals served at eligible sites on or

• Page 6, Line 8after January 1, 2026, is equal to the federal free reimbursement

• Page 6, Line 9rate multiplied by the total number of eligible meals that the

• Page 6, Line 10participating school food authority serves at eligible sites

• Page 6, Line 11during the applicable budget year minus the total amount of

• Page 6, Line 12reimbursement for eligible meals served at eligible sites during

• Page 6, Line 13the applicable budget year that the participating school food

• Page 6, Line 14authority receives pursuant to the national school breakfast

• Page 6, Line 15program, the national school lunch program, sections 22-54-123

• Page 6, Line 16and 22-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 6, Line 17(III)  As used in this subsection (1)(b.3), unless the context

• Page 6, Line 18otherwise requires, "eligible site" means a site that, for the school year during the relevant budget year:

• Page 6, Line 19(A)  Qualifies for the community eligibility provision program, as that program exists on November 15, 2025; or

• Page 6, Line 20(B)  Is identified as an eligible site by the department based

• Page 6, Line 21on the amount that the general assembly appropriates for the

• Page 6, Line 22purpose of providing reimbursements to a participating school

• Page 6, Line 23food authority for offering eligible meals without charge

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

• Page 7, Line 2student enrollment who are certified as eligible for free meals

• Page 7, Line 3based on documentation of benefit receipt or categorical

• Page 7, Line 4eligibility as described in 7 CFR 245.9 (f)(1)(iii) or any successor regulations.

• Page 7, Line 5(IV)  If a referred measure that would, in combination with

• Page 7, Line 6section 39-22-104 (3)(p.5), result in the collection of at least one

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

• Page 7, Line 8commencing on January 1, 2026, in connection with the healthy

• Page 7, Line 9school meals for all program is approved by the voters voting

• Page 7, Line 10on the referred measure at the statewide election held on

• Page 7, Line 11November 4, 2025, this subsection (1)(b.3) is repealed, effective July 1, 2026.

• Page 7, Line 12(b.5) (I)  If the department, in consultation with the office

• Page 7, Line 13of state planning and budgeting, estimates, for any budget year,

• Page 7, Line 14that the amount that the general assembly appropriated for the

• Page 7, Line 15purpose of providing reimbursements to a participating school

• Page 7, Line 16food authority for offering eligible meals without charge

• Page 7, Line 17pursuant to this subsection (1) after January 1, 2026, will be less

• Page 7, Line 18than the costs of the department providing those

• Page 7, Line 19reimbursements, the department shall provide notice of this

• Page 7, Line 20estimation to the joint budget committee of the general assembly and the executive committee of the legislative council

• Page 7, Line 21  of the general assembly and the department may

• Page 7, Line 22determine a prorated, reduced reimbursement amount for the

• Page 7, Line 23reimbursements that the department provides pursuant to

• Page 7, Line 24subsection (1)(b) or (1)(b.3) of this section as applicable for the remainder of that budget year.

• Page 8, Line 1(II)  Before providing the prorated, reduced

• Page 8, Line 2reimbursement amounts described in subsections(1)(b.5)(I)of this

• Page 8, Line 3section, the department shall provide timely written notice to each participating school food authority.

• Page 8, Line 4(2)  A school food authority that chooses to participate in the

• Page 8, Line 5program must annually give notice of participation to the department as

• Page 8, Line 6provided by rule of the state board. At a minimum, the notice must

• Page 8, Line 7include evidence that the school food authority is participating in

• Page 8, Line 8provisional programming if deemed necessary by the department. The

• Page 8, Line 9department may require school food authority modifications to the

• Page 8, Line 10program throughout the year to maximize a school food authority's federal reimbursements as deemed necessary by the department.

• Page 8, Line 11SECTION 3.  In Colorado Revised Statutes, 22-82.9-209, amend (2) as follows:

• Page 8, Line 1222-82.9-209.  Program - funding. (2) (a)  For the 2023-24 budget

• Page 8, Line 13year and the 2024-25 budget year, the general assembly shall appropriate

• Page 8, Line 14money from the state education fund created in section 17 (4) of article

• Page 8, Line 15IX 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 8, Line 16(b)  For the 2025-26 budget year, the general assembly may

• Page 8, Line 17appropriate money from the state education fund created in

• Page 8, Line 18section 17 (4) of article IX of the state constitution to cover

• Page 8, Line 19program costs for which there is not sufficient money in the healthy school meals for all cash fund.

• Page 8, Line 20SECTION 4.  In Colorado Revised Statutes, 22-82.9-211, amend

• Page 8, Line 21(3)(a)(I) and (5); and add (8) as follows:

• Page 9, Line 122-82.9-211.  Healthy school meals for all program cash fund

• Page 9, Line 2- creation - uses - reporting requirements - definitions - repeal.

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

• Page 9, Line 4department may expend money from the cash fund for the following purposes:

• Page 9, Line 5(I)  Providing reimbursements to a participating school food

• Page 9, Line 6authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1)(b) section 22-82.9-204 (1);

• Page 9, Line 7(5) (a)  For fiscal years commencing on or before July 1,

• Page 9, Line 82024, if the department determines that there is an insufficient amount of

• Page 9, Line 9money in the cash fund to provide for an expenditure authorized by the

• Page 9, Line 10annual appropriation from the cash fund for the purposes described in

• Page 9, Line 11subsection (3)(a)(I) of this section, the department may make the expenditure from the general fund.

• Page 9, Line 12(b)  This subsection (5) is repealed, effective July 1, 2026.

• Page 9, Line 13(8) (a)  On or before January 15, 2027, the department, in

• Page 9, Line 14consultation with the office of state planning and budgeting,

• Page 9, Line 15shall report to the joint budget committee of the general

• Page 9, Line 16assembly on whether there is a sufficient balance in the cash fund for:

• Page 9, Line 17(I)  The state treasurer to transfer an amount from the

• Page 9, Line 18cash fund to the state education fund equal to the total

• Page 9, Line 19amount of expenditures from the state education fund for the

• Page 9, Line 20purposes of subsection (3) of this section minus the amount of

• Page 9, Line 21additional tax revenue deposited in the state education fund as

• Page 9, Line 22a result of section 39-22-104 (3)(p.5) for state fiscal years

• Page 9, Line 232022-23, 2023-24, 2024-25, and 2025-26; and

• Page 10, Line 1(II)  The department to provide reimbursements to a

• Page 10, Line 2participating school food authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1).

• Page 10, Line 3(b)  This subsection (8) is repealed, effective July 1, 2027.

• Page 10, Line 4SECTION 5.  In Colorado Revised Statutes, 22-82.9-208, amend (1)(a)(II) as follows:

• Page 10, Line 522-82.9-208.  Report - audit. (1) (a)  On or before December 1,

• Page 10, Line 62024, and on or before December 1 every two years thereafter, the

• Page 10, Line 7department shall prepare a report concerning the implementation of

• Page 10, Line 8section 22-82.9-204 and sections 22-82.9-205, 22-82.9-206, and

• Page 10, Line 922-82.9-207, 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 10, Line 10(II)  The effect of the use of local food purchasing grants on the

• Page 10, Line 11amount of Colorado grown, raised, or processed products purchased by

• Page 10, Line 12participating school food authorities and include a compilation of the

• Page 10, Line 13information reported by participating school food authorities pursuant to section 22-82.9-205 (1)(b) section 22-82.9-205 (1);

• Page 10, Line 14SECTION 6.  In Colorado Revised Statutes, 24-75-109, amend (1)(f) and (5) as follows:

• Page 10, Line 1524-75-109.  Controller may allow expenditures in excess of

• Page 10, Line 16appropriations - limitations - appropriations for subsequent fiscal

• Page 10, Line 17year restricted - repeal. (1)  For the purpose of closing the state's books,

• Page 10, Line 18and subject to the provisions of this section, the controller may, on or

• Page 10, Line 19after May 1 of any fiscal year and before the forty-fifth day after the close

• Page 10, Line 20thereof, upon approval of the governor, allow any department, institution,

• Page 10, Line 21or agency of the state, including any institution of higher education, to

• Page 10, Line 22make an expenditure in excess of the amount authorized by an item of appropriation for such fiscal year if:

• Page 11, Line 1(f)  The overexpenditure is by the department of education for

• Page 11, Line 2providing reimbursements to a participating school food authority for

• Page 11, Line 3offering eligible meals without charge, pursuant to section 22-82.9-204

• Page 11, Line 4(1)(b) section 22-82.9-204 (1), for state fiscal years commencing on or before July 1, 2024; or

• Page 11, Line 5(5)  The limitation on general fund appropriations and the

• Page 11, Line 6requirement for a general fund reserve contained in section 24-75-201.1

• Page 11, Line 7shall not apply to overexpenditures from the general fund for medicaid

• Page 11, Line 8programs allowed pursuant to subsection (1)(a) of this section to

• Page 11, Line 9overexpenditures by the department of education allowed pursuant to

• Page 11, Line 10subsection (1)(f) of this section or to supplemental general fund

• Page 11, Line 11appropriations for medicaid programs enacted pursuant to subsection (4)

• Page 11, Line 12of this section. Overexpenditures for all other purposes allowed pursuant

• Page 11, Line 13to subsection (1) of this section and supplemental general fund

• Page 11, Line 14appropriations for all other purposes enacted pursuant to subsection (4)

• Page 11, Line 15of this section shall be considered appropriations for the fiscal year in

• Page 11, Line 16which the overexpenditure was allowed and shall accordingly be subject to the limitations and requirements of section 24-75-201.1.

• Page 11, Line 17SECTION 7.  Effective date. This act takes effect upon passage;

• Page 11, Line 18except that section 24-75-109 (5), Colorado Revised Statutes, as amended in section 6 of this act, takes effect July 1, 2025.

• Page 11, Line 19SECTION 8.  Appropriation - adjustments to 2025 long bill.

• Page 11, Line 20(1)  To implement this act, appropriations made in the annual general

• Page 11, Line 21appropriation act for the 2025-26 state fiscal year to the department of education for use by school district operations are adjusted as follows:

• Page 11, Line 22(a)  The general fund appropriation for school meal reimbursements is decreased by $42,240,242; and

• Page 12, Line 1(b)  The cash funds appropriation from the state education fund

• Page 12, Line 2created 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 3SECTION 9.  Safety clause. The general assembly finds,

• Page 12, Line 4determines, and declares that this act is necessary for the immediate

• Page 12, Line 5preservation of the public peace, health, or safety or for appropriations for

• Page 12, Line 6the support and maintenance of the departments of the state and state institutions.