Senate Bill 25-214 Introduced

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, beginning with the 2026 state

• Page 4, Line 20income tax year, increase state taxes annually by at least

• Page 4, Line 21ninety million dollars in connection with the healthy school

• Page 4, Line 22meals for all program is approved by the voters voting on the

• Page 4, Line 23referred measure at the statewide election held on November

• Page 5, Line 14, 2025, for eligible meals served on or after January 1, 2026, the

• Page 5, Line 2amount of the reimbursement provided through the program to

• Page 5, Line 3each participating school food authority for each budget year

• Page 5, Line 4is equal to the federal free reimbursement rate multiplied by

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

• Page 5, Line 6food authority serves during the applicable budget year minus

• Page 5, Line 7the total amount of reimbursement for eligible meals served

• Page 5, Line 8during the applicable budget year that the participating school

• Page 5, Line 9food authority receives pursuant to the national school

• Page 5, Line 10breakfast program, the national school lunch program,

• Page 5, Line 11sections 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 12(B)  If a referred measure that would, beginning with the

• Page 5, Line 132026 state income tax year, increase state taxes annually by at

• Page 5, Line 14least ninety million dollars in connection with the healthy

• Page 5, Line 15school meals for all program is not approved by the voters

• Page 5, Line 16voting on the referred measure at the statewide election held

• Page 5, Line 17on November 4, 2025, this subsection (1)(b)(II) is repealed, effective July 1, 2026.

• Page 5, Line 18(b.3) (I)  If a referred measure that would, beginning with

• Page 5, Line 19the 2026 state income tax year, increase state taxes annually by

• Page 5, Line 20at least ninety million dollars in connection with the healthy

• Page 5, Line 21school meals for all program is not approved by the voters

• Page 5, Line 22voting on the referred measure at the statewide election held

• Page 5, Line 23on November 4, 2025, for eligible meals served on or after

• Page 5, Line 24January 1, 2026, the department shall only reimburse

• Page 5, Line 25participating school food authorities for meals served at eligible sites.

• Page 6, Line 1(II)  The amount of the reimbursement provided through

• Page 6, Line 2the program to each participating school food authority for

• Page 6, Line 3each budget year for eligible meals served at eligible sites on or

• Page 6, Line 4after January 1, 2026, is equal to the federal free reimbursement

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

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

• Page 6, Line 7during the applicable budget year minus the total amount of

• Page 6, Line 8reimbursement for eligible meals served at eligible sites during

• Page 6, Line 9the applicable budget year that the participating school food

• Page 6, Line 10authority receives pursuant to the national school breakfast

• Page 6, Line 11program, the national school lunch program, sections 22-54-123

• Page 6, Line 12and 22-54-123.5, article 82.7 of this title 22, and part 1 of this article 82.9.

• Page 6, Line 13(III)  As used in this subsection (1)(b.3), unless the context

• Page 6, Line 14otherwise requires, "eligible site" means a site that, for the school year during the relevant budget year:

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

• Page 6, Line 16(B)  Is identified as an eligible site by the department based

• Page 6, Line 17on the amount that the general assembly appropriates for the

• Page 6, Line 18purpose of providing reimbursements to a participating school

• Page 6, Line 19food authority for offering eligible meals without charge

• Page 6, Line 20pursuant to this subsection (1) and the percentage of a site's

• Page 6, Line 21student enrollment who are certified as eligible for free meals

• Page 6, Line 22based on documentation of benefit receipt or categorical

• Page 6, Line 23eligibility as described in 7 CFR 245.9 (f)(1)(iii) or any successor regulations.

• Page 7, Line 1(IV)  If a referred measure that would, beginning with the

• Page 7, Line 22026 state income tax year, increase state taxes annually by at

• Page 7, Line 3least ninety million dollars in connection with the healthy

• Page 7, Line 4school meals for all program is approved by the voters voting

• Page 7, Line 5on the referred measure at the statewide election held on

• Page 7, Line 6November 4, 2025, this subsection (1)(b.3) is repealed, effective July 1, 2026.

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

• Page 7, Line 8of state planning and budgeting, estimates, for any budget year,

• Page 7, Line 9that the amount that the general assembly appropriated for the

• Page 7, Line 10purpose of providing reimbursements to a participating school

• Page 7, Line 11food authority for offering eligible meals without charge

• Page 7, Line 12pursuant to this subsection (1) after January 1, 2026, will be less

• Page 7, Line 13than the costs of the department providing those

• Page 7, Line 14reimbursements, the department shall provide notice of this

• Page 7, Line 15estimation to the joint budget committee of the general

• Page 7, Line 16assembly and the executive committee of the legislative council

• Page 7, Line 17of the general assembly. In addition to the notice described in

• Page 7, Line 18this subsection (1)(b.5)(I), the department may submit a

• Page 7, Line 19supplemental appropriation request to the joint budget

• Page 7, Line 20committee or a request for an overexpenditure in accordance with section 24-75-111.

• Page 7, Line 21(II) (A)  As soon as practicable after the department

• Page 7, Line 22submits a request for a supplemental appropriation pursuant to

• Page 7, Line 23subsection (1)(b.5)(I) of this section, the joint budget committee

• Page 7, Line 24of the general assembly shall inform the department whether

• Page 8, Line 1it will approve or reject the department's request. If the joint

• Page 8, Line 2budget committee indicates that it will reject the department's

• Page 8, Line 3request, the department may determine a prorated, reduced

• Page 8, Line 4reimbursement amount for the reimbursements that the

• Page 8, Line 5department 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 6(B)  If, within thirty days of the department submitting a

• Page 8, Line 7request for an overexpenditure pursuant to subsection (1)(b.5)(I)

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

• Page 8, Line 9the department may determine a prorated, reduced

• Page 8, Line 10reimbursement amount for the reimbursements that the

• Page 8, Line 11department 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 12(C)  Before providing the prorated, reduced

• Page 8, Line 13reimbursement amounts described in subsections (1)(b.5)(II)(A)

• Page 8, Line 14and (1)(b.5)(II)(B) of this section, the department shall provide

• Page 8, Line 15timely written notice to each participating school food authority.

• Page 8, Line 16(2)  A school food authority that chooses to participate in the

• Page 8, Line 17program must annually give notice of participation to the department as

• Page 8, Line 18provided by rule of the state board. At a minimum, the notice must

• Page 8, Line 19include evidence that the school food authority is participating in

• Page 8, Line 20provisional programming if deemed necessary by the department. The

• Page 8, Line 21department may require school food authority modifications to the

• Page 8, Line 22program throughout the year to maximize a school food authority's federal reimbursements as deemed necessary by the department.

• Page 8, Line 23SECTION 3.  In Colorado Revised Statutes, 22-82.9-209, amend (2) as follows:

• Page 9, Line 122-82.9-209.  Program - funding. (2) (a)  For the 2023-24 budget

• Page 9, Line 2year and the 2024-25 budget year, the general assembly shall appropriate

• Page 9, Line 3money from the state education fund created in section 17 (4) of article

• Page 9, Line 4IX 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 5(b)  For the 2025-26 budget year, the general assembly may

• Page 9, Line 6appropriate money from the state education fund created in

• Page 9, Line 7section 17 (4) of article IX of the state constitution to cover

• Page 9, Line 8program costs for which there is not sufficient money in the healthy school meals for all cash fund.

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

• Page 9, Line 1022-82.9-211.  Healthy school meals for all program cash fund

• Page 9, Line 11- creation - uses - reporting requirements - definitions - repeal.

• Page 9, Line 12(3) (a)  Subject to annual appropriation by the general assembly, the

• Page 9, Line 13department may expend money from the cash fund for the following purposes:

• Page 9, Line 14(I)  Providing reimbursements to a participating school food

• Page 9, Line 15authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1)(b) section 22-82.9-204 (1);

• Page 9, Line 16(5) (a)  For fiscal years commencing on or before July 1,

• Page 9, Line 172024, if the department determines that there is an insufficient amount of

• Page 9, Line 18money in the cash fund to provide for an expenditure authorized by the

• Page 9, Line 19annual appropriation from the cash fund for the purposes described in

• Page 9, Line 20subsection (3)(a)(I) of this section, the department may make the

• Page 9, Line 21expenditure from the general fund.

• (b)  This subsection (5) is repealed, effective July 1, 2026.

• Page 10, Line 1(8) (a)  On or before January 15, 2027, the department, in

• Page 10, Line 2consultation with the office of state planning and budgeting,

• Page 10, Line 3shall report to the joint budget committee of the general

• Page 10, Line 4assembly on whether there is a sufficient balance in the cash fund for:

• Page 10, Line 5(I)  The state treasurer to transfer an amount from the

• Page 10, Line 6cash fund to the state education fund equal to the total

• Page 10, Line 7amount of expenditures from the state education fund for the

• Page 10, Line 8purposes of subsection (3) of this section minus the amount of

• Page 10, Line 9additional tax revenue deposited in the state education fund as

• Page 10, Line 10a 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 11(II)  The department to provide reimbursements to a

• Page 10, Line 12participating school food authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1).

• Page 10, Line 13(b)  This subsection (8) is repealed, effective July 1, 2027.

• Page 10, Line 14SECTION 5.  In Colorado Revised Statutes, 22-82.9-208, amend (1)(a)(II) as follows:

• Page 10, Line 1522-82.9-208.  Report - audit. (1) (a)  On or before December 1,

• Page 10, Line 162024, and on or before December 1 every two years thereafter, the

• Page 10, Line 17department shall prepare a report concerning the implementation of

• Page 10, Line 18section 22-82.9-204 and sections 22-82.9-205, 22-82.9-206, and

• Page 10, Line 1922-82.9-207, 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 20(II)  The effect of the use of local food purchasing grants on the

• Page 10, Line 21amount of Colorado grown, raised, or processed products purchased by

• Page 11, Line 1participating school food authorities and include a compilation of the

• Page 11, Line 2information reported by participating school food authorities pursuant to section 22-82.9-205 (1)(b) section 22-82.9-205 (1);

• Page 11, Line 3SECTION 6.  In Colorado Revised Statutes, 24-75-109, amend (1)(f) and (5) as follows:

• Page 11, Line 424-75-109.  Controller may allow expenditures in excess of

• Page 11, Line 5appropriations - limitations - appropriations for subsequent fiscal

• Page 11, Line 6year restricted - repeal. (1)  For the purpose of closing the state's books,

• Page 11, Line 7and subject to the provisions of this section, the controller may, on or

• Page 11, Line 8after May 1 of any fiscal year and before the forty-fifth day after the close

• Page 11, Line 9thereof, upon approval of the governor, allow any department, institution,

• Page 11, Line 10or agency of the state, including any institution of higher education, to

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

• Page 11, Line 12(f)  The overexpenditure is by the department of education for

• Page 11, Line 13providing reimbursements to a participating school food authority for

• Page 11, Line 14offering eligible meals without charge, pursuant to section 22-82.9-204

• Page 11, Line 15(1)(b) section 22-82.9-204 (1), for state fiscal years commencing on or before July 1, 2024; or

• Page 11, Line 16(5)  The limitation on general fund appropriations and the

• Page 11, Line 17requirement for a general fund reserve contained in section 24-75-201.1

• Page 11, Line 18shall not apply to overexpenditures from the general fund for medicaid

• Page 11, Line 19programs allowed pursuant to subsection (1)(a) of this section to

• Page 11, Line 20overexpenditures by the department of education allowed pursuant to

• Page 11, Line 21subsection (1)(f) of this section or to supplemental general fund

• Page 11, Line 22appropriations for medicaid programs enacted pursuant to subsection (4)

• Page 11, Line 23of this section. Overexpenditures for all other purposes allowed pursuant

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

• Page 12, Line 2appropriations for all other purposes enacted pursuant to subsection (4)

• Page 12, Line 3of this section shall be considered appropriations for the fiscal year in

• Page 12, Line 4which the overexpenditure was allowed and shall accordingly be subject to the limitations and requirements of section 24-75-201.1.

• Page 12, Line 5SECTION 7.  Effective date. This act takes effect upon passage;

• Page 12, Line 6except 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 7SECTION 8.  Appropriation - adjustments to 2025 long bill.

• Page 12, Line 8(1)  To implement this act, appropriations made in the annual general

• Page 12, Line 9appropriation 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 10(a)  The general fund appropriation for school meal reimbursements is decreased by $42,240,242; and

• Page 12, Line 11(b)  The cash funds appropriation from the state education fund

• Page 12, Line 12created 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 13SECTION 9.  Safety clause. The general assembly finds,

• Page 12, Line 14determines, and declares that this act is necessary for the immediate

• Page 12, Line 15preservation of the public peace, health, or safety or for appropriations for

• Page 12, Line 16the support and maintenance of the departments of the state and state institutions.