Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
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
Amended 2nd Reading
May 2, 2022
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
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
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
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-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
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-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
24-75-228 (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; and add (3.5) as follows:26
24-75-228. Economic recovery and relief cash fund - creation27
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
(3.5) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION,10
WITHIN THREE BUSINESS DAYS OF THE EFFECTIVE DATE OF THIS11
SUBSECTION (3.5), THE STATE TREASURER SHALL TRANSFER TEN MILLION12
DOLLARS FROM THE FUND THAT ORIGINATES FROM MONEY THE STATE13
RECEIVED FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY14
FUND TO THE REVENUE LOSS RESTORATION CASH FUND CREATED IN15
SECTION 24-75-227 (2)(a).16
SECTION 4. In Colorado Revised Statutes, 24-75-229, amend17
(3)(a) as follows:18
24-75-229. Affordable housing and home ownership cash fund19
- creation - allowable uses - task force - legislative declaration -20
definitions - repeal. (3) (a) The affordable housing and home ownership21
cash fund is hereby created in the state treasury. The fund consists of22
money deposited in the fund in accordance with subsection (3)(b) of this23
section and any other money that the general assembly may appropriate24
or transfer to the fund. To respond to the public health emergency with25
respect to COVID-19 or its negative economic impacts
OR FOR THE26
PROVISION OF GOVERNMENT SERVICES , the general assembly may27
1411
-7- appropriate or transfer money from the fund to a department or cash fund1
for programs or services that benefit populations, households, or2
geographic areas disproportionately affected by the COVID-19 public3
health emergency to obtain affordable housing, focusing on programs or4
services that address housing insecurity, lack of affordable and workforce5
housing, or homelessness. Money from the fund may be expended to6
support the task force created in subsection (5)(a) of this section.7
Permissible uses of such money include costs associated with the creation8
and administration of the task force and related expenses for research and9
evaluation undertaken by the task force.10
SECTION 5. In Colorado Revised Statutes, 24-75-230, amend11
(2)(a) as follows:12
24-75-230. Behavioral and mental health cash fund - creation13
- allowable uses - task force - definitions - repeal. (2) (a) The14
behavioral and mental health cash fund is created in the state treasury.15
The fund consists of money credited to the fund in accordance with16
subsection (2)(b) of this section and any other money that the general17
assembly may appropriate or transfer to the fund. To respond to the public18
health emergency with respect to COVID-19 or its negative economic19
impacts
OR FOR THE PROVISION OF GOVERNMENT SERVICES , the general20
assembly may appropriate money from the fund to a department for21
mental health treatment, substance misuse treatment, and other behavioral
22
health services BEHAVIORAL HEALTH CARE .23
SECTION 6. In Colorado Revised Statutes, 24-75-231, amend24
(2)(a) introductory portion; and add (2)(b)(III) as follows:25
24-75-231. Workers, employers, and workforce centers cash26
fund - creation - allowable uses - definitions - repeal. (2) (a) The27
1411
-8- workers, employers, and workforce centers cash fund is hereby created1
in the state treasury. The fund consists of money credited to the fund in2
accordance with subsection (2)(b) of this section and any other money3
that the general assembly may appropriate or transfer to the fund. To4
respond to the public health emergency or its negative economic impacts,5
The general assembly may appropriate money from the fund to respond6
to the negative economic impacts of the COVID-19 public health7
emergency
OR FOR THE PROVISION OF GOVERNMENT SERVICES , including8
for the following purposes:9
(b) (III) T
HE FUND ALSO INCLUDES THE AMOUNT TRANSFERRED IN10
ACCORDANCE WITH SECTION 43-4-205 (6.8)(d)(II)(A).11
12
SECTION 7. In Colorado Revised Statutes, 24-32-721, amend13
(2)(g)(I) and (2)(g)(II) as follows:14
24-32-721. Colorado affordable housing construction grants15
and loans - housing development grant fund - creation - housing16
assistance for persons with behavioral, mental health, or substance17
use disorders - cash fund - appropriation - report to general assembly18
- rules - definitions - repeal. (2) (g) (I) Within three business days of19
June 26, 2021, the state treasurer shall transfer thirty million dollars from20
the affordable housing and home ownership cash fund created in section21
24-75-229, that originates from money the state received from the federal22
coronavirus state fiscal recovery fund, to the housing development grant23
fund and transfer fifteen million dollars from the general fund to the24
affordable housing and home ownership cash fund created in section25
24-75-229. W
ITHIN THREE BUSINESS DAYS OF THE EFFECTIVE DATE OF26
H
OUSE BILL
22-1411, THE STATE TREASURER SHALL TRANSFER :27
1411
-9- (A) ONE MILLION FIVE HUNDRED T HOUSAND DOLLARS TO THE1
HOUSING DEVELOPMENT GRANT FUND FROM THE AFFORDABLE HOUSING2
AND HOME OWNERSHIP CASH FUND CREATED IN SECTION 24-75-229 THAT3
ORIGINATES FROM THE GENERAL FUND ;4
(B)
TWENTY-EIGHT MILLION DOLLARS TO THE HOUSING5
DEVELOPMENT GRANT FUND FROM THE GENERAL FUND ; AND6
(C)
TWENTY-NINE MILLION FIVE HUNDRED THOUSAND DOLLARS7
FROM THE HOUSING DEVELOPMENT GRANT FUND TO THE AFFORDABLE8
HOUSING AND HOME OWNERSHIP CASH FUND CREATED IN SECTION9
24-75-229.
THE TRANSFER REQUIRED BY THIS SUBSECTION (2)(g)(I)(C) IS10
FROM MONEY THAT WAS TRANSFERRED ON JUNE 26, 2021, TO THE11
HOUSING DEVELOPMENT GRANT FUND FROM THE AFFORDABLE HOUSING12
AND HOME OWNERSHIP CASH FUND THAT ORIGINATED FROM MONEY THE13
STATE RECEIVED FROM THE FEDERAL CORONAVIRUS STATE FISCAL14
RECOVERY FUND.15
(II) The division shall use money transferred from the affordable16
housing and home ownership cash fund created in section 24-75-229, that17
originates from money the state received from the federal coronavirus
18
state fiscal recovery GENERAL fund, pursuant to subsection (2)(g)(I) of19
this section for the purposes allowed under subsection (2)(d)(VI)(A.5) of20
this section that are related to subsection (2)(d)(VII) of this section and21
for the purposes allowed by subsection (2)(d)(VII) of this section.22
SECTION 8. In Colorado Revised Statutes, 43-4-205, add23
(6.8)(d) as follows:24
43-4-205. Allocation of fund - legislative declaration.25
(6.8) (d) (I) T
HE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES26
THAT, IN ORDER TO ENSURE THE STATE 'S COMPLIANCE WITH THE27
1411
-10- REQUIREMENTS ESTABLISHED BY THE UNITED STATES DEPARTMENT OF1
THE TREASURY FOR MONEY THAT THE STATE RECEIVED FROM THE FEDERAL2
CORONAVIRUS STATE FISCAL RECOVERY FUND , CREATED IN 42 U.S.C. SEC.3
802,
THAT IT IS NECESSARY TO RECLASSIFY THE MONEY THAT WAS PAID TO4
COUNTIES, CITIES, AND INCORPORATED TOWNS IN ACCOR DANCE WITH5
SUBSECTION (6.8)(c) OF THIS SECTION AS STATE MONEY THAT DID NOT6
ORIGINATE FROM THE FEDERAL CORONAVIRUS STATE FISCAL RECOVERY7
FUND, WHICH IS ACCOMPLISHED BY REPLENISHING THE EXPENDED FEDERAL8
FUNDS AS SET FORTH IN THIS SUBSECTION (6.8)(d).9
(II) W
ITHIN THREE DAYS OF THE EFFECTIVE DATE OF THIS10
SUBSECTION (6.8)(d)(II), THE STATE TREASURER SHALL TRANSFER FROM11
THE GENERAL FUND:12
(A) T
HIRTY MILLION NINE HUNDRED THOUSAND DOLLARS TO THE13
WORKERS, EMPLOYERS, AND WORKFORCE CENTERS CASH FUND CREATED14
IN SECTION 24-75-231 (2)(a); AND15
(B) F
IVE MILLION SIX HUNDRED THOUSAND DOLLARS TO THE16
REVENUE LOSS RESTORATION CASH FUND CREATED IN SECTION 24-75-22717
(2)(a).18
(III) U
PON THE TRANSFER REQUIRED BY SUBSECTION (6.8)(d)(II)19
OF THIS SECTION:20
(A) T
HE MONEY TRANSFERRED IN ACCORDANCE WITH SUBSECTION21
(6.8)(c)
OF THIS SECTION IS TO BE TREATED AS IF IT WAS FROM THE22
GENERAL FUND AND IT IS NOT SUBJECT TO ANY OF THE REQUIREMENTS SET23
FORTH IN SECTION 24-75-226; AND24
(B) T
HE MONEY TRANSFERRED FROM THE GENERAL FUND25
REPLACES MONEY THAT WAS INITIALLY DISTRIBUTED FROM THE26
CORONAVIRUS STATE FISCAL RECOVERY FUND AND FOR ALL PURPOSES IS27
1411
-11- TO BE TREATED AS IF IT WAS MONEY THAT ORIGINATED FROM THE FEDERAL1
CORONAVIRUS STATE FISCAL RECOVERY FUND , CREATED IN 42 U.S.C. SEC.2
802.3
SECTION 9. In Session Laws of Colorado 2021, amend section4
2 of chapter 487 (HB21-1288) as follows:5
Section 2. Appropriation. For the 2021-22 state fiscal year,6
$10,000,000 is appropriated to the Colorado startup loan program fund7
created in section 24-48.5-131 (9)(a), C.R.S. This appropriation is from8
the economic recovery and relief cash fund created in section 24-75-2289
(2)(a), C.R.S, and of money the state received from the federal10
coronavirus state fiscal recovery GENERAL fund. The office of the11
governor is responsible for the accounting related to this appropriation. 12
SECTION 10. In Session Laws of Colorado 2021, section 4 of13
chapter 347 (HB21-1329), amend (1) as follows:14
Section 4. Appropriation. (1) For the 2021-22 state fiscal year,15
$98,500,000 is appropriated to the department of local affairs for use by16
the division of housing. This appropriation is from the affordable housing17
and home ownership cash fund created in section 24-75-229 (3)(a),18
C.R.S., and
IS of money the state received from the federal coronavirus
19
state fiscal recovery THAT ORIGINATES FROM THE GENERAL fund. To20
implement this act, the division may use the appropriation for purposes21
authorized in section 24-75-229 (3), C.R.S. Any money appropriated in22
this subsection that is not expended or encumbered at the end of the23
2021-22 state fiscal year remains available for expenditure in subsequent24
fiscal years without further appropriation. subject to the requirements for25
obligating and expending money received under the federal "American26
Rescue Plan Act of 2021", Pub. L. 117-2, as the act may be subsequently27
1411
-12- amended as specified in section 24-75-226 (4)(d), C.R.S.1
SECTION 11. Safety clause. The general assembly hereby2
finds, determines, and declares that this act is necessary for the immediate3
preservation of the public peace, health, or safety.4
1411
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