Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0957.01 Ed DeCecco x4216
HOUSE BILL 22-1411
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
C
ONCERNING MEASURES TO ENSURE THE STATE 'S COMPLIANCE WITH101
THE REQUIREMENTS RELATED TO THE FEDERAL CORONAVIRUS102
STATE FISCAL RECOVERY FUND CREATED IN THE FEDERAL103
"A
MERICAN RESCUE PLAN ACT OF 2021".104
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
.)
In 2021, the state received $3,828,761,790 from the federal
coronavirus state fiscal recovery fund as part of the federal "American
Rescue Plan Act of 2021". For purposes of complying with the
HOUSE SPONSORSHIP
McCluskie and Herod,
SENATE SPONSORSHIP
Moreno,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. requirements established by the United States department of the treasury
(treasury), the general assembly established administrative requirements
related to the expenditure of this federal money. Section 1 of the bill
modifies these requirements by:
! Establishing deadlines for a subrecipient, which is a person
that carries out a program or project on behalf of the state,
to expend or obligate this money, and if not, to return this
money to the state for the state to either expend or return to
treasury, depending on the timing;
! Requiring the state controller to transmit to treasury any
money that was obligated by December 31, 2024, but not
expended by December 31, 2026;
! Requiring the department of revenue to provide the state
controller with any information about any increases in the
state's net tax revenue, which is necessary for calculating
the state's revenue reductions for 2022 and 2023;
! Clarifying that the compliance, reporting, record-keeping,
and program evaluation requirements established by the
office of state planning and budgeting and the state
controller apply to a person regardless of whether the
person is a beneficiary or a subrecipient and regardless of
whether the person receives the money directly from a
department or from a subrecipient; and
! Permitting the state controller to report any expenditures to
treasury as a government service to the extent of the
reduction in the state's revenue due to the COVID-19
public health emergency relative to the revenues the state
collected for the state fiscal year 2018-19. Sections 3
through 6 make conforming amendments related to this
change.
The bill also substitutes money from the general fund or from a
cash fund that included money that originated from the general fund for
money that was allocated in 2021 legislation from the federal coronavirus
state fiscal recovery fund, as follows:
! $29.5 million from the housing development grant fund
(section 7);
! $36.5 million from the highway users tax fund that was
distributed to counties, cities, and incorporated towns,
which is accomplished by replenishing and reclassifying
the federal funds that were initially used (section 8);
! $10 million from the Colorado startup loan program fund
(section 9), with the freed up federal funds being
transferred to the revenue loss restoration cash fund
(section 6); and
! $98.5 million from the affordable housing and home
HB22-1411
-2- ownership cash fund (section 10).
Sections 2 and 6 include conforming amendments related to the
reclassification of the money paid to the counties, cities, and incorporated
towns.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-75-226, amend2
(4)(d), (5)(a), and (5)(f); and add (1)(a.5), (1)(f), and (5)(g) as follows:3
24-75-226. "American Rescue Plan Act of 2021" cash fund -4
creation - recipient funds - limitations - reporting - legislative5
declaration - definitions - repeal. (1) As used in this section, unless the6
context otherwise requires:7
(a.5) "C
ORONAVIRUS STATE FISCAL RECOVERY FUND " MEANS THE8
FEDERAL FUND CREATED IN 42 U.S.C. SEC. 802, OR ANY SUCCESSOR FUND.9
(f) "S
UBRECIPIENT" MEANS A PERSON THAT RECEIVES MONEY10
FROM THE FUND OR A RECIPIENT FUND TO CARRY OUT A PROGRAM OR11
PROJECT ON BEHALF OF THE STATE BUT THAT IS NOT A BENEFICIARY OF12
THE SERVICES OR BENEFITS PROVIDED THROUGH THE PROGRAM OR13
PROJECT.14
(4) (d) (I) Money in the fund or a recipient fund must be expended15
or obligated by December 31, 2024. Any money obligated by December
16
31, 2024, must be expended by December 31, 2026. Just prior to the close17
of business on December 30, 2024, any unexpended appropriations from18
a recipient fund that are not for expenditures obligated TO BE MADE after19
December 31, 2024,
THAT WERE OBLIGATED BEFORE THAT DATE , revert20
to the "American Rescue Plan Act of 2021" cash fund, and the state21
treasurer shall transfer the unexpended and unobligated balance in the22
fund to the unemployment compensation fund created in section 8-77-10123
HB22-1411-3- (1). ANY MONEY OBLIGATED BY DECEMBER 31, 2024, MUST BE EXPENDED1
BY DECEMBER 31, 2026. EFFECTIVE DECEMBER 31, 2026, THE STATE2
CONTROLLER SHALL TRANSMIT ANY UNEXPENDED MONEY IN THE FUND OR3
A RECIPIENT FUND TO THE UNITED STATES DEPARTMENT OF THE4
TREASURY.5
(II) A
SUBRECIPIENT MUST SPEND OR OBLIGATE MONEY RECEIVED6
FROM THE FUND OR A RECIPIENT FUND BY NOVEMBER 30, 2024, AND, BY7
D
ECEMBER 13, 2024, SHALL NOTIFY THE STATE AGENCY FROM WHICH THE8
SUBRECIPIENT RECEIVED THE MONEY OF THE STATUS OF THE MONEY THAT9
IS OBLIGATED OR EXPENDED. THE SUBRECIPIENT SHALL RETURN TO THE10
STATE ANY UNEXPENDED AND UNOBLIGATED MONEY UNDER TERMS11
DICTATED BY THE STATE CONTROLLER , AND THE STATE TREASURER SHALL12
TRANSFER THE AMOUNT RETURNED TO THE UNEMPLOYMENT13
COMPENSATION FUND CREATED IN SECTION 8-77-101 (1). ANY MONEY14
OBLIGATED BY NOVEMBER 30, 2024, MUST BE EXPENDED BY DECEMBER15
11,
2026. ON OR BEFORE DECEMBER 11, 2026, THE SUBRECIPIENT SHALL16
RETURN TO THE STATE ANY REMAINING MONEY UNDER TERMS DICTATED17
BY THE STATE CONTROLLER AND THEREAFTER THE STATE CONTROLLER18
SHALL TRANSMIT THE MONEY TO THE UNITED STATES DEPARTMENT OF19
THE TREASURY IN ACCORDANCE WITH THE TREASURY 'S REQUIREMENTS.20
(III) T
HE STATE CONTROLLER SHALL DETERMINE WHETHER MONEY21
IS OBLIGATED FOR PURPOSES OF DETERMINING THE DEADLINE FOR22
EXPENDITURES AND THE REVERSION OR REPAYMENT OF MONEY IN23
ACCORDANCE WITH THIS SUBSECTION (4)(d).24
(5) (a) (I) The state controller shall provide periodic reports to the25
secretary as required by the secretary under the "American Rescue Plan26
Act of 2021". The department of revenue shall provide the state controller27
HB22-1411
-4- with any information required by the secretary about any reductions OR1
INCREASES in net tax revenue.2
(II) T
HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT :3
(A) U
NDER 42 U.S.C. SEC. 802 (c)(1)(C), THE STATE IS PERMITTED4
TO USE MONEY RECEIVED FROM THE CORONAVIRUS STATE FISCAL5
RECOVERY FUND FOR THE PROVISION OF GOVERNMENT SERVICES TO THE6
EXTENT OF THE REDUCTION IN THE STATE 'S REVENUE DUE TO THE7
COVID-19
PUBLIC HEALTH EMERGENCY RELATIVE TO THE REVENUES THE8
STATE COLLECTED FOR THE STATE FISCAL YEAR 2018-19;9
(B) T
HE UNITED STATES DEPARTMENT OF THE TREASURY HAS10
PROMULGATED A RULE TO ESTABLISH THE METHODOLOGY FOR THE STATE11
TO CALCULATE A RECIPIENT GOVERNMENT 'S ANNUAL REDUCTION IN12
REVENUE FOR THE FOUR CALENDAR YEARS BEGINNING IN 2020;13
(C) A
S OF THE EFFECTIVE DATE OF THIS SUBSECTION (5)(a)(II), THE14
STATE REPORTED A REDUCTION FOR THE 2020 AND 2021 CALENDAR YEARS15
THAT TOTALS THREE BILLION SIX HUNDRED NINETY -FOUR MILLION SIX16
HUNDRED FIFTY-THREE THOUSAND TWO HUNDRED FORTY -NINE DOLLARS;17
(D) T
HIS AMOUNT EXCEEDS THE TOTAL OF ALL THE FUNDS THAT18
HAVE YET TO BE REPORTED TO THE UNITED STATES DEPARTMENT OF THE19
TREASURY; AND20
(E) T
HEREFORE, ANY MONEY IN THE FUND OR TRANSFERRED FROM21
THE FUND TO A RECIPIENT FUND IS AVAILABLE TO BE REPORTED AS BEING22
AN EXPENDITURE FOR THE PROVISION OF GOVERNMENT SERVICES .23
(III) T
HE STATE CONTROLLER MAY REPORT THE EXPENDITURE OF24
ANY MONEY IN OR TRANSFERRED FROM THE "AMERICAN RESCUE PLAN25
A
CT OF 2021" THAT ORIGINATED FROM THE CORONAVIRUS STATE FISCAL26
RECOVERY FUND AS A GOVERNMENT SERVICE TO THE EXTENT OF THE27
HB22-1411
-5- REDUCTION IN THE STATE'S REVENUE DUE TO THE COVID-19 PUBLIC1
HEALTH EMERGENCY RELATIVE TO THE REVENUES THE STATE COLLECTED2
FOR THE STATE FISCAL YEAR 2018-19, IF THE DESCRIPTION IS APPLICABLE,3
REGARDLESS OF WHETHER THE PURPOSE OF THE EXPENDITURE IS ALSO4
DESCRIBED AS BEING TO RESPOND TO THE PUBLIC HEALTH EMERGENCY5
WITH RESPECT TO COVID-19 OR ITS NEGATIVE ECONOMIC IMPACTS.6
(f) The general assembly may appropriate money from a recipient7
fund that includes money that may be used for government services THE8
REVENUE LOSS RESTORATION CASH FUND CREATED IN SECTION 24-75-2279
to the department of personnel for use by the state controller and to the10
office for any direct or indirect expenses related to the administration of11
this subsection (5).12
(g) T
HE COMPLIANCE, REPORTING, RECORD-KEEPING, AND13
PROGRAM EVALUATION REQUIREMENTS ESTABLISHED BY THE OFFICE OF14
STATE PLANNING AND BUDGETING AND THE STATE CONTROLLER APPLY TO15
A PERSON REGARDLESS OF WHETHER THE PERSON IS A BENEFICIARY OR A16
SUBRECIPIENT AND REGARDLESS OF WHETHER THE PERSON RECEIVES THE17
MONEY DIRECTLY FROM A DEPARTMENT OR FROM A SUBRECIPIENT .18
SECTION 2. In Colorado Revised Statutes, 24-75-227, add19
(2)(b)(III) as follows:20
24-75-227. Revenue loss restoration cash fund - creation -21
allowable uses - definitions - repeal. (2) (b) (III) T
HE FUND ALSO22
INCLUDES THE AMOUNTS TRANSFERRED TO THE FUND IN ACCORDANCE23
WITH SECTIONS 24-75-231 (3.5) AND 43-4-205 (6.8)(d)(II)(B).24
SECTION 3. In Colorado Revised Statutes, 24-75-228, amend25
(2)(a) introductory portion as follows:26
24-75-228. Economic recovery and relief cash fund - creation27
HB22-1411
-6- - allowable uses - interim task force - report - legislative declaration1
- definitions - repeal. (2) (a) The economic recovery and relief cash fund2
is hereby created in the state treasury. The fund consists of money3
credited to the fund in accordance with subsection (3) of this section and4
any other money that the general assembly may appropriate or transfer to5
the fund. To respond to the public health emergency with respect to6
COVID-19 or its negative economic impacts
OR FOR THE PROVISION OF7
GOVERNMENT SERVICES, the general assembly may appropriate or transfer8
money from the fund to a department for the following uses:9
SECTION 4. In Colorado Revised Statutes, 24-75-229, amend10
(3)(a) as follows:11
24-75-229. Affordable housing and home ownership cash fund12
- creation - allowable uses - task force - legislative declaration -13
definitions - repeal. (3) (a) The affordable housing and home ownership14
cash fund is hereby created in the state treasury. The fund consists of15
money deposited in the fund in accordance with subsection (3)(b) of this16
section and any other money that the general assembly may appropriate17
or transfer to the fund. To respond to the public health emergency with18
respect to COVID-19 or its negative economic impacts
OR FOR THE19
PROVISION OF GOVERNMENT SERVICES , the general assembly may20
appropriate or transfer money from the fund to a department or cash fund21
for programs or services that benefit populations, households, or22
geographic areas disproportionately affected by the COVID-19 public23
health emergency to obtain affordable housing, focusing on programs or24
services that address housing insecurity, lack of affordable and workforce25
housing, or homelessness. Money from the fund may be expended to26
support the task force created in subsection (5)(a) of this section.27
HB22-1411
-7- Permissible uses of such money include costs associated with the creation1
and administration of the task force and related expenses for research and2
evaluation undertaken by the task force.3
SECTION 5. In Colorado Revised Statutes, 24-75-230, amend4
(2)(a) as follows:5
24-75-230. Behavioral and mental health cash fund - creation6
- allowable uses - task force - definitions - repeal. (2) (a) The7
behavioral and mental health cash fund is created in the state treasury.8
The fund consists of money credited to the fund in accordance with9
subsection (2)(b) of this section and any other money that the general10
assembly may appropriate or transfer to the fund. To respond to the public11
health emergency with respect to COVID-19 or its negative economic12
impacts
OR FOR THE PROVISION OF GOVERNMENT SERVICES , the general13
assembly may appropriate money from the fund to a department for14
mental health treatment, substance misuse treatment, and other behavioral
15
health services BEHAVIORAL HEALTH CARE .16
SECTION 6. In Colorado Revised Statutes, 24-75-231, amend17
(2)(a) introductory portion; and add (2)(b)(III) and (3.5) as follows:18
24-75-231. Workers, employers, and workforce centers cash19
fund - creation - allowable uses - definitions - repeal. (2) (a) The20
workers, employers, and workforce centers cash fund is hereby created21
in the state treasury. The fund consists of money credited to the fund in22
accordance with subsection (2)(b) of this section and any other money23
that the general assembly may appropriate or transfer to the fund. To24
respond to the public health emergency or its negative economic impacts,25
The general assembly may appropriate money from the fund to respond26
to the negative economic impacts of the COVID-19 public health27
HB22-1411
-8- emergency OR FOR THE PROVISION OF GOVERNMENT SERVICES , including1
for the following purposes:2
(b) (III) T
HE FUND ALSO INCLUDES THE AMOUNT TRANSFERRED IN3
ACCORDANCE WITH SECTION 43-4-205 (6.8)(d)(II)(A).4
(3.5) N
OTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION ,5
WITHIN THREE BUSINESS DAYS OF THE EFFECTIVE DATE OF THIS6
SUBSECTION (3.5), THE STATE TREASURER SHALL TRANSFER TEN MILLION7
DOLLARS FROM THE FUND TO THE REVENUE LOSS RESTORATION CASH FUND8
CREATED IN SECTION 24-75-227 (2)(a).9
SECTION 7. In Colorado Revised Statutes, 24-32-721, amend10
(2)(g)(I) and (2)(g)(II) as follows:11
24-32-721. Colorado affordable housing construction grants12
and loans - housing development grant fund - creation - housing13
assistance for persons with behavioral, mental health, or substance14
use disorders - cash fund - appropriation - report to general assembly15
- rules - definitions - repeal. (2) (g) (I) Within three business days of16
June 26, 2021, the state treasurer shall transfer thirty million dollars from17
the affordable housing and home ownership cash fund created in section18
24-75-229, that originates from money the state received from the federal19
coronavirus state fiscal recovery fund, to the housing development grant20
fund and transfer fifteen million dollars from the general fund to the21
affordable housing and home ownership cash fund created in section22
24-75-229. W
ITHIN THREE BUSINESS DAYS OF THE EFFECTIVE DATE OF23
H
OUSE BILL 22-____, THE STATE TREASURER SHALL TRANSFER :24
(A)
ONE MILLION FIVE HUNDRED THOUSAND DOLLARS TO THE25
HOUSING DEVELOPMENT GRANT FUND FROM THE AFFORDABLE HOUSING26
AND HOME OWNERSHIP CASH FUND CREATED IN SECTION 24-75-229 THAT27
HB22-1411
-9- ORIGINATES FROM THE GENERAL FUND ;1
(B)
TWENTY-EIGHT MILLION DOLLARS TO THE HOUSING2
DEVELOPMENT GRANT FUND FROM THE GENERAL FUND ; AND3
(C)
TWENTY-NINE MILLION FIVE HUNDRED THOUSAND DOLLARS4
FROM THE HOUSING DEVELOPMENT GRANT FUND TO THE AFFORDABLE5
HOUSING AND HOME OWNERSHIP CASH FUND CREATED IN SECTION6
24-75-229.
THE TRANSFER REQUIRED BY THIS SUBSECTION (2)(g)(I)(C) IS7
FROM MONEY THAT WAS TRANSFERRED ON JUNE 26, 2021, TO THE8
HOUSING DEVELOPMENT GRANT FUND FROM THE AFFORDABLE HOUSING9
AND HOME OWNERSHIP CASH FUND THAT ORIGINATED FROM MONEY THE10
STATE RECEIVED FROM THE FEDERAL CORONAVIRUS STATE FISCAL11
RECOVERY FUND.12
(II) The division shall use money transferred from the affordable13
housing and home ownership cash fund created in section 24-75-229, that14
originates from money the state received from the federal coronavirus
15
state fiscal recovery GENERAL fund, pursuant to subsection (2)(g)(I) of16
this section for the purposes allowed under subsection (2)(d)(VI)(A.5) of17
this section that are related to subsection (2)(d)(VII) of this section and18
for the purposes allowed by subsection (2)(d)(VII) of this section.19
SECTION 8. In Colorado Revised Statutes, 43-4-205, add20
(6.8)(d) as follows:21
43-4-205. Allocation of fund - legislative declaration.22
(6.8) (d) (I) T
HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES23
THAT, IN ORDER TO ENSURE THE STATE 'S COMPLIANCE WITH THE24
REQUIREMENTS ESTABLISHED BY THE UNITED STATES DEPARTMENT OF25
THE TREASURY FOR MONEY THAT THE STATE RECEIVED FROM THE FEDERAL26
CORONAVIRUS STATE FISCAL RECOVERY FUND , CREATED IN 42 U.S.C. SEC.27
HB22-1411
-10- 802, THAT IT IS NECESSARY TO RECLASSIFY THE MONEY THAT WAS PAID TO1
COUNTIES, CITIES, AND INCORPORATED TOWNS IN ACCORDANCE WITH2
SUBSECTION (6.8)(c) OF THIS SECTION AS STATE MONEY THAT DID NOT3
ORIGINATE FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY4
FUND, WHICH IS ACCOMPLISHED BY REPLENISHING THE EXPENDED FEDERAL5
FUNDS AS SET FORTH IN THIS SUBSECTION (6.8)(d).6
(II) W
ITHIN THREE DAYS OF THE EFFECTIVE DATE OF THIS7
SUBSECTION (6.8)(d)(II), THE STATE TREASURER SHALL TRANSFER FROM8
THE GENERAL FUND:9
(A) T
HIRTY MILLION NINE HUNDRED THOUSAND DOLLARS TO THE10
WORKERS, EMPLOYERS, AND WORKFORCE CENTERS CASH FUND CREATED11
IN SECTION 24-75-231 (2)(a); AND12
(B) F
IVE MILLION SIX HUNDRED THOUSAND DOLLARS TO THE13
REVENUE LOSS RESTORATION CASH FUND CREATED IN SECTION 24-75-22714
(2)(a).15
(III) U
PON THE TRANSFER REQUIRED BY SUBSECTION (6.8)(d)(II)16
OF THIS SECTION:17
(A) T
HE MONEY TRANSFERRED IN ACCORDANCE WITH SUBSECTION18
(6.8)(c)
OF THIS SECTION IS TO BE TREATED AS IF IT WAS FROM THE19
GENERAL FUND AND IT IS NOT SUBJECT TO ANY OF THE REQUIREMENTS SET20
FORTH IN SECTION 24-75-226; AND21
(B) T
HE MONEY TRANSFERRED FROM THE GENERAL FUND22
REPLACES MONEY THAT WAS INITIALLY DISTRIBUTED FROM THE23
CORONAVIRUS STATE FISCAL RECOVERY FUND AND FOR ALL PURPOSES IS24
TO BE TREATED AS IF IT WAS MONEY THAT ORIGINATED FROM THE FEDERAL25
CORONAVIRUS STATE FISCAL RECOVERY FUND , CREATED IN 42 U.S.C. SEC.26
802.27
HB22-1411
-11- SECTION 9. In Session Laws of Colorado 2021, amend section1
2 of chapter 487 (HB21-1288) as follows:2
Section 2. Appropriation. For the 2021-22 state fiscal year,3
$10,000,000 is appropriated to the Colorado startup loan program fund4
created in section 24-48.5-131 (9)(a), C.R.S. This appropriation is from5
the economic recovery and relief cash fund created in section 24-75-2286
(2)(a), C.R.S, and of money the state received from the federal7
coronavirus state fiscal recovery GENERAL fund. The office of the8
governor is responsible for the accounting related to this appropriation. 9
SECTION 10. In Session Laws of Colorado 2021, section 4 of10
chapter 347 (HB21-1329), amend (1) as follows:11
Section 4. Appropriation. (1) For the 2021-22 state fiscal year,12
$98,500,000 is appropriated to the department of local affairs for use by13
the division of housing. This appropriation is from the affordable housing14
and home ownership cash fund created in section 24-75-229 (3)(a),15
C.R.S., and
IS of money the state received from the federal coronavirus
16
state fiscal recovery THAT ORIGINATES FROM THE GENERAL fund. To17
implement this act, the division may use the appropriation for purposes18
authorized in section 24-75-229 (3), C.R.S. Any money appropriated in19
this subsection that is not expended or encumbered at the end of the20
2021-22 state fiscal year remains available for expenditure in subsequent21
fiscal years without further appropriation. subject to the requirements for22
obligating and expending money received under the federal "American23
Rescue Plan Act of 2021", Pub. L. 117-2, as the act may be subsequently24
amended as specified in section 24-75-226 (4)(d), C.R.S.25
SECTION 11. Act subject to petition - effective date. This act26
takes effect at 12:01 a.m. on the day following the expiration of the27
HB22-1411
-12- ninety-day period after final adjournment of the general assembly; except1
that, if a referendum petition is filed pursuant to section 1 (3) of article V2
of the state constitution against this act or an item, section, or part of this3
act within such period, then the act, item, section, or part will not take4
effect unless approved by the people at the general election to be held in5
November 2022 and, in such case, will take effect on the date of the6
official declaration of the vote thereon by the governor.7
HB22-1411
-13-