Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-1081.02 Alana Rosen x2606 HOUSE BILL 24-1390 House Committees Senate Committees Appropriations A BILL FOR AN ACT C ONCERNING MEASURES TO SUPPORT CERTAIN SCHOOL FOOD101 PROGRAMS IN THE DEPARTMENT OF EDUCATION .102 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 bill requires the department of education (department) to apply to the United States department of agriculture for a statewide community eligibility provision if the department determines participation in a statewide community eligibility provision will maximize federal funding. The bill requires the department to annually establish options for, HOUSE SPONSORSHIP Bird and Sirota, Taggart SENATE SPONSORSHIP Kirkmeyer and Bridges, Zenzinger Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. and communicate the options to, school food authorities to maximize federal funding. A school food authority that chooses an option other than those established by the department will not receive healthy school meals for all program funding and must use other eligible funding sources to cover the costs of serving free meals to all students at the schools of the school food authority. The bill delays the implementation of the local food purchasing grant, the wage increase or stipend program for school meals food preparation and service employees (wage increase or stipend program), and the local school food purchasing technical assistance and education grant program until the 2025-26 budget year. The bill requires the department to create a policy for school food authorities to maximize the collection of household income application forms for the national school lunch program to increase federal funding for the program. School food authorities that choose to participate in the program shall apply the policy to maximize the collection of household income application forms. The bill creates the healthy school meals for all program technical advisory group (advisory group). As soon as practicable, the department shall convene the advisory group. The advisory group shall collaborate with school districts, the office of state planning and budgeting, and other interested parties to: ! Identify ways to maximize federal reimbursements; ! Reduce costs of the program; ! Review cost-savings options, including minimizing food waste; ! Strengthen the long-term resiliency of the healthy school meals for all cash fund; ! Create model revenue scenarios; ! Provide options and recommendations to balance program revenues and expenditures; and ! Draft a report with legislative and administrative recommendations and submit it to the education committees of the house of representatives and the senate, or any successor committees; the joint budget committee; the state board of education; and the governor. On January 1, 2024, the local school food purchasing program (purchasing program) and the local school food purchasing technical assistance and education grant program (grant program) repealed. The bill recreates the purchasing program and the grant program, and extends the programs through the 2024-25 budget year. The bill eliminates the authorization for department expenditures in excess of the appropriated amount to participating school food authorities for the wage increase or stipend program. HB24-1390 -2- Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 22-82.9-202, add (3)2 as follows:3 22-82.9-202. Legislative declaration. (3) T HE GENERAL4 ASSEMBLY FURTHER DECLARES THAT FOR PURPOSES OF SECTION 17 OF5 ARTICLE IX OF THE STATE CONSTITUTION, HEALTHY SCHOOL MEALS ARE6 AN ESSENTIAL COMPONENT TO STUDENT LEARNING . FREE HEALTHY7 SCHOOL MEALS ARE AN IMPORTANT COMPONENT OF AN ACCOUNTABLE8 EDUCATION PROGRAM TO MEET ST ATE ACADEMIC STANDARDS AND MAY9 THEREFORE RECEIVE FUNDING FROM THE STATE EDUCATION FUND10 CREATED IN SECTION 17 (4) OF ARTICLE IX OF THE STATE CONSTITUTION.11 SECTION 2. In Colorado Revised Statutes, 22-82.9-203, add12 (11.5) as follows:13 22-82.9-203. Definitions. As used in this part 2, unless the14 context otherwise requires:15 (11.5) "P ROVISIONAL PROGRAMS" MEANS ALTERNATIVE OPTIONS16 THROUGH THE NATIONAL SCHOOL LUNCH PROGRAM AND NATIONAL17 SCHOOL BREAKFAST PROGRAM TO IMPROVE ACCESS TO FREE MEALS AND18 TO SIMPLIFY MEAL COUNTING AND CLAIMS PROCEDURES .19 SECTION 3. In Colorado Revised Statutes, 22-82.9-204, amend20 (2), (3), and (4)(b); and add (6) and (7) as follows:21 22-82.9-204. Healthy school meals for all program - created -22 advisory group - report - rules - definition - repeal. (2) A school food23 authority that chooses to participate in the program must annually give24 notice of participation to the department as provided by rule of the state25 board. At a minimum, the notice must include evidence that the school26 HB24-1390-3- food authority is participating in the community eligibility provision as1 required in subsection (3) of this section PROVISIONAL PROGRAMMING IF2 DEEMED NECESSARY BY THE DEPARTMENT . THE DEPARTMENT MAY3 REQUIRE SCHOOL FOOD AUTHORITY MODIFICATIONS TO THE PROGRAM4 THROUGHOUT THE YEAR TO MAXIMIZE A SCHOOL FOOD AUTHORITY 'S5 FEDERAL REIMBURSEMENTS AS DEEMED NECESSARY BY THE DEPARTMENT .6 (3) (a) If the United States department of agriculture creates the7 option for the state, as a whole, to participate in the community eligibility8 provision, the department shall participate in the option and shall work9 with school food authorities and the necessary state and local departments10 to collect data and implement the community eligibility provision11 statewide, IF THE DEPARTMENT DETERMINES PARTICIPATION IN THE12 STATEWIDE COMMUNITY ELIGIBILITY PROVISION MAXIMIZES FEDERAL13 FUNDING. Until such time as Colorado participates in the community14 eligibility provision as a state, each participating school food authority,15 as a condition of participating in the program, must maximize the amount16 of federal reimbursement by THE SCHOOL FOOD AUTHORITY RECEIVES ,17 INCLUDING, BUT NOT LIMITED TO , participating in PROVISIONAL18 PROGRAMS, INCLUDING the community eligibility provision for all schools19 that qualify, for the community eligibility provision and that the20 participating school food authority serves SUBJECT TO DETERMINATION BY21 THE DEPARTMENT THAT THE SCHOOL FOOD AUTHORITY 'S PARTICIPATION22 MAXIMIZES FEDERAL REIMBURSEMENT .23 (b) A NNUALLY, THE DEPARTMENT SHALL ESTABLISH OPTIONS FOR ,24 AND COMMUNICATE THE OPTIONS TO , EACH SCHOOL FOOD AUTHORITY TO25 MAXIMIZE FEDERAL FUNDING. A SCHOOL FOOD AUTHORITY THAT CHOOSES26 AN OPTION OTHER THAN THE OPTIONS ESTABLISHED BY THE DEPARTMENT27 HB24-1390 -4- SHALL NOT RECEIVE HEALTHY SCHOOL MEALS FOR ALL PROGRAM F UNDING1 AND MUST USE OTHER ELIGIBLE FUNDING SOURCES TO COVER THE COSTS2 OF SERVING FREE MEALS TO ALL STUDENTS AT THE SCHOOLS OF THE3 SCHOOL FOOD AUTHORITY .4 (4) (b) S UBJECT TO AVAILABLE APPROPRIATIONS , implementation5 of sections 22-82.9-205 to 22-82.9-207 is conditional upon the state of 6 Colorado being certified to participate in the demonstration project for7 direct certification for children receiving medicaid benefits that is8 operated pursuant to 42 U.S.C. sec. 1758 (b)(15) EFFECTIVE BEGINNING9 IN THE 2025-26 BUDGET YEAR.10 (6) (a) O N OR BEFORE JULY 1, 2024, THE DEPARTMENT SHALL11 CREATE A POLICY FOR SCHOOL FOOD AUTHORITIES TO MAXIMIZE THE12 COLLECTION OF HOUSEHOLD INCOME APPLICATION FORMS FOR THE13 NATIONAL SCHOOL LUNCH PROGRAM TO INCREASE FEDERAL FUNDING FOR14 THE PROGRAM.15 (b) S CHOOL FOOD AUTHORITIES THAT CHOOSE TO PARTICIPATE IN16 THE PROGRAM SHALL COMPLY WITH THE POLICY DESCRIBED IN17 SUBSECTION (6)(a) OF THIS SECTION TO MAXIMIZE THE COLLECTION OF18 HOUSEHOLD INCOME APPLICATION FORMS FOR THE NATIONAL SCHOOL19 LUNCH PROGRAM.20 (7) (a) T HE HEALTHY SCHOOL MEALS FOR ALL PROGRAM21 TECHNICAL ADVISORY GROUP IS CREATED IN THE DEPARTMENT . AS SOON22 AS PRACTICABLE, THE DEPARTMENT SHALL CONVENE THE ADVISORY23 GROUP AND THE ADVISORY GROUP SHALL COLLABORATE WITH SCHOOL24 DISTRICTS, THE OFFICE OF STATE PLANNING AND BUDGETING , AND OTHER25 INTERESTED PARTIES TO:26 (I) I DENTIFY WAYS TO MAXIMIZE FEDERAL REIMBURSEMENTS ;27 HB24-1390 -5- (II) REDUCE COSTS OF THE PROGRAM ;1 (III) R EVIEW COST-SAVINGS OPTIONS, INCLUDING MINIMIZING2 FOOD WASTE;3 (IV) S TRENGTHEN THE LONG-TERM RESILIENCY OF THE HEALTHY4 SCHOOL MEALS FOR ALL CASH FUND ;5 (V) C REATE MODEL REVENUE SCENARIOS ;6 (VI) P ROVIDE OPTIONS AND RECOMMENDATIONS FOR BALANCING7 PROGRAM REVENUES AND EXPENDITURES IN THE MANNER MOST8 EQUITABLE FOR STUDENTS AND SCHOOL FOOD AUTHORITIES ; AND9 (VII) D RAFT A REPORT PURSUANT TO SUBSECTION (7)(d) OF THIS10 SECTION WITH LEGISLATIVE AND ADMINISTRATIVE RECOMMENDATIONS .11 (b) (I) T HE ADVISORY GROUP SHALL SOLICIT INPUT FROM12 STAKEHOLDERS AND THE PUBLIC TO DIRECT THE ADVISORY GROUP 'S WORK.13 (II) L EGISLATIVE COUNCIL STAFF AND JOINT BUDGET COMMITTEE14 STAFF SHALL PROVIDE TECHNICAL SUPPORT TO THE ADVISORY GROUP .15 (III) T HE DEPARTMENT SHALL COLLABORATE WITH THE ADVISORY16 GROUP TO OBTAIN THE CONTRACTUAL SERVICES NECESSARY FOR THE17 ADVISORY GROUP'S WORK.18 (c) I N JUNE 2024 AND SEPTEMBER 2024, THE ADVISORY GROUP19 SHALL SUBMIT A STATUS REPORT TO THE JOINT BUDGET COMMITTEE ON20 THE PROGRESS OF THE ADVISORY GROUP 'S WORK.21 (d) (I) O N OR BEFORE DECEMBER 1, 2024, THE ADVISORY GROUP22 SHALL SUBMIT A REPORT SUMMARIZING THE ADVISORY GROUP 'S WORK23 DESCRIBED IN SUBSECTION (7)(a) OF THIS SECTION TO THE EDUCATION24 COMMITTEES OF THE HOUSE OF REPRESENTATIVES AND THE SENATE , OR25 ANY SUCCESSOR COMMITTEES ; THE JOINT BUDGET COMMITTEE; THE STATE26 BOARD; AND THE GOVERNOR.27 HB24-1390 -6- (II) IN DECEMBER 2024, THE DEPARTMENT SHALL PRESENT THE1 ADVISORY GROUP'S REPORT DESCRIBED IN SUBSECTION (7)(d)(I) OF THIS2 SECTION TO THE JOINT BUDGET COMMITTEE .3 (III) I N JANUARY 2025, THE DEPARTMENT SHALL INCLUDE AS PART4 OF ITS PRESENTATION DURING ITS "SMART ACT" HEARING REQUIRED BY5 SECTION 2-7-203 INFORMATION CONCERNING THE PROGRAM AND THE6 REPORT DESCRIBED IN SUBSECTION (7)(d)(I) OF THIS SECTION.7 (e) A S USED IN THIS SUBSECTION , UNLESS THE CONTEXT8 OTHERWISE REQUIRES, "HEALTHY SCHOOL MEALS FOR ALL PROGRAM9 TECHNICAL ADVISORY GROUP " OR "ADVISORY GROUP" MEANS THE10 HEALTHY SCHOOL MEALS FOR ALL PROGRAM TECHNICAL ADVISORY GROUP11 CREATED IN THIS SUBSECTION (7).12 (f) T HIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2025.13 SECTION 4. In Colorado Revised Statutes, 22-82.9-205, amend14 (5) as follows:15 22-82.9-205. Local food purchasing grant - amount - advisory16 committee - verification of invoices. (5) S UBJECT TO AVAILABLE17 APPROPRIATIONS, this section is effective beginning in the first full budget 18 year after the state of Colorado is certified to participate in the federal19 demonstration project for direct certification for children receiving20 medicaid benefits as provided in section 22-82.9-204 (4) and begins21 including medicaid direct certification in determining school districts'22 identified student percentages 2025-26 BUDGET YEAR.23 SECTION 5. In Colorado Revised Statutes, 22-82.9-206, amend24 (2) as follows:25 22-82.9-206. School meals food preparation and service26 employees - wage increase or stipend. (2) S UBJECT TO AVAILABLE27 HB24-1390 -7- APPROPRIATIONS, this section is effective beginning in the first full budget1 year after the state of Colorado is certified to participate in the federal2 demonstration project for direct certification for children receiving3 medicaid benefits as provided in section 22-82.9-204 (4) and begins4 including medicaid direct certification in determining school districts'5 identified student percentages 2025-26 BUDGET YEAR.6 SECTION 6. In Colorado Revised Statutes, 22-82.9-207, amend7 (4) as follows:8 22-82.9-207. Local school food purchasing technical assistance9 and education grant program - created - report. (4) S UBJECT TO10 AVAILABLE APPROPRIATIONS, this section is effective beginning in the11 first full budget year after the state of Colorado is certified to participate 12 in the federal demonstration project for direct certification for children13 receiving medicaid benefits as provided in section 22-82.9-204 (4) and14 begins including medicaid direct certification in determining school15 districts' identified student percentages 2025-26 BUDGET YEAR.16 SECTION 7. In Colorado Revised Statutes, 22-82.9-208, amend17 (2) as follows:18 22-82.9-208. Report - audit. (2) (a) The department shall19 contract with an independent auditor to conduct a biennial financial and20 performance audit of the implementation of the program, including21 implementation of section 22-82.9-204 and including implementation of22 local food purchasing grants pursuant to section 22-82.9-205,23 distributions for the increase in wages or provision of stipends pursuant24 to section 22-82.9-206, and implementation of the local school food25 purchasing technical assistance and education grant program pursuant to26 section 22-82.9-207, to the extent said sections are in effect as provided27 HB24-1390 -8- in section 22-82.9-204 (4)(b). BEGINNING DECEMBER 1, 2027, the audit1 of the two budget years in each biennial cycle must be completed by2 December 1 of the following budget year. The department shall make the3 audit easily accessible by the public on the department website.4 (b) A NY APPROPRIATION TO THE DEPARTMENT FOR PURPOSES OF5 AN AUDIT THAT IS NOT EXPENDED IN A BUDGET YEAR IS FURTHER6 APPROPRIATED TO THE DEPARTMENT THROUGH THE CLOSE OF THE7 FOLLOWING BUDGET YEAR FOR THE SAME PURPOSES .8 SECTION 8. In Colorado Revised Statutes, amend 22-82.9-2099 as follows:10 22-82.9-209. Program - funding. (1) For the 2023-24 budget11 year and for each budget year thereafter, the general assembly shall12 appropriate to the department, by separate line items in the annual general13 appropriation bill, the amount necessary to implement the program,14 including the amount required to reimburse participating school food15 authorities for eligible meals provided to students pursuant to section16 22-82.9-204, and including the amount distributed as local food17 purchasing grants pursuant to section 22-82.9-205, SUBJECT TO18 AVAILABLE APPROPRIATIONS , AND the amount distributed pursuant to19 section 22-82.9-206 to increase the wages or provide stipends for staff20 who prepare and serve school meals, and at least five million dollars 21 annually to implement the local school food purchasing technical22 assistance and education grant program pursuant to section 22-82.9-207,23 to the extent said sections are in effect as provided in section 22-82.9-20424 (4)(b) SUBJECT TO AVAILABLE APPROPRIATIONS . The department may25 expend not more than one and five-tenths percent of the total amount26 annually appropriated pursuant to this section to offset the direct and27 HB24-1390 -9- indirect costs incurred by the department in implementing this part 2.1 (2) F OR THE 2023-24 BUDGET YEAR AND THE 2024-25 BUDGET2 YEAR, THE GENERAL ASSEMBLY SHALL APPROPRIATE MONEY FROM THE3 STATE EDUCATION FUND CREATED IN SECTION 17 (4) OF ARTICLE IX OF4 THE STATE CONSTITUTION TO COVER PROGRAM COSTS FOR WHICH THERE5 IS NOT SUFFICIENT MONEY IN THE HEALTHY SCHOOL MEALS FOR ALL CASH6 FUND.7 SECTION 9. In Colorado Revised Statutes, 22-82.9-210, amend8 (1)(a), (2), (3)(a) introductory portion, (3)(b), (4)(a), (4)(b), (5), and9 (6)(a); and repeal (7) as follows:10 22-82.9-210. Healthy school meals for all program cash fund11 - creation - uses - reporting requirements - definitions. (1) As used in12 this section, unless the context otherwise requires:13 (a) "Account" "CASH FUND" means the healthy school meals for14 all program general fund exempt account CASH FUND created in this15 section.16 (2) The healthy school meals for all program general fund exempt17 account is hereby created in the general fund. The account CASH FUND IS18 CREATED IN THE STATE TREASURY . THE CASH FUND consists of healthy19 school meals for all program revenue deposited in the account CASH FUND20 in accordance with subsection (4)(a) of this section. The state treasurer21 shall credit all interest and income derived from the deposit and22 investment of money in the healthy school meals for all program general23 fund exempt account to the account CASH FUND TO THE CASH FUND.24 (3) (a) Subject to annual appropriation by the general assembly,25 the department may expend money from the account CASH FUND for the26 following purposes:27 HB24-1390 -10- (b) Money in the account shall CASH FUND MUST only be used for1 the purposes described in subsections (3)(a)(II) and (3)(a)(IV) of this2 section if the sum of the annual tax year revenue recorded in the account3 CASH FUND and the balance in the account CASH FUND, as calculated4 pursuant to subsection (4) of this section, is greater than, or is anticipated5 to be greater than, the annual expenditure anticipated to be required for6 the purposes described in subsections (3)(a)(I), (3)(a)(III), and (3)(a)(V)7 of this section.8 (4) (a) The department of revenue shall, on a monthly basis,9 record revenues and deposit money to the account CASH FUND in a manner10 that is aligned with exempt revenues determined pursuant to subsection11 (4)(b) of this section.12 (b) The department of revenue shall, on a monthly basis, report13 the amount of program revenue identified from tax returns to the office14 of state planning and budgeting and the legislative council staff. The15 office of state planning and budgeting shall calculate the amount of16 healthy school meals for all program revenue both projected to be17 received and actually received by the department of revenue based on18 income tax return data and other relevant factors. The office of state19 planning and budgeting shall also identify, in collaboration with the20 department of revenue, the revenue to be recorded and deposited on a21 monthly basis by the department of revenue in the account CASH FUND22 pursuant to subsection (4)(a) of this section, and the total revenue to be23 recorded and deposited by the department of revenue in the account CASH24 FUND for the fiscal year.25 (5) If the department determines that there is an insufficient26 amount of money in the account CASH FUND to provide for an expenditure27 HB24-1390 -11- authorized by the annual appropriation from the account CASH FUND for1 the purposes described in subsections (3)(a)(I) and (3)(a)(III) of this2 section, the department may make the expenditure from the general fund.3 (6) In its annual submission of the state department's budget4 request to the joint budget committee, the office of state planning and5 budgeting shall report:6 (a) The total amount of expenditures from the account CASH FUND7 made pursuant to subsection (3) of this section; and8 (7) (a) Pursuant to section 24-75-201 (2)(c), any unrestricted9 balance remaining in the account at the end of any fiscal year shall not be10 designated as a part of the general fund surplus.11 (b) Pursuant to section 24-75-201.1 (2)(e), appropriations for12 expenditures from the account shall be excluded from the basis for the13 calculation of the general fund reserve.14 SECTION 10. In Colorado Revised Statutes, add part 3 to article15 82.9 of title 22 as follows:16 PART 317 LOCAL SCHOOL FOOD18 PURCHASING PROGRAMS19 22-82.9-301. Definitions. A S USED IN THIS PART 3, UNLESS THE20 CONTEXT OTHERWISE REQUIRES :21 (1) "C OLORADO GROWN , RAISED, OR PROCESSED PRODUCTS "22 MEANS ALL FRUITS, VEGETABLES, GRAINS, MEATS, AND DAIRY PRODUCTS,23 EXCEPT LIQUID MILK, GROWN OR RAISED IN COLORADO, AND MINIMALLY24 PROCESSED PRODUCTS OR VALUE -ADDED PROCESSED PRODUCTS THAT25 MEET THE STANDARDS FOR THE COLORADO PROUD DESIGNATION ,26 ESTABLISHED BY THE COLORADO DEPARTMENT OF AGRICULTURE , EVEN IF27 HB24-1390 -12- THE PRODUCT DOES NOT HAVE THE COLORADO PROUD DESIGNATION .1 (2) "D EPARTMENT" MEANS THE DEPARTMENT OF EDUCATION2 CREATED PURSUANT TO SECTION 24-1-115.3 (3) "L OCAL SCHOOL FOOD PURCHASING PROGRAM " OR4 " PURCHASING PROGRAM " MEANS THE LOCAL SCHOOL FOOD PURCHASING5 PROGRAM CREATED IN SECTION 22-82.9-302.6 (4) "M INIMALLY PROCESSED PRODUCTS " MEANS RAW OR FROZEN7 FABRICATED PRODUCTS ; PRODUCTS THAT RETAIN THEIR INHERENT8 CHARACTER, SUCH AS SHREDDED CARROTS OR DICED ONIONS ; AND DRIED9 PRODUCTS, SUCH AS BEANS, BUT DOES NOT INCLUDE ANY PRODUCTS THAT10 ARE HEATED, COOKED, OR CANNED.11 (5) "N ATIONAL SCHOOL LUNCH PROGRAM " MEANS THE FEDERAL12 SCHOOL LUNCH PROGRAM CREATED IN THE "RICHARD B. RUSSELL13 N ATIONAL SCHOOL LUNCH ACT", 42 U.S.C. SEC. 1751 ET SEQ., AS14 AMENDED.15 (6) "P ARTICIPATING PROVIDER" MEANS A SCHOOL DISTRICT ;16 DISTRICT CHARTER SCHOOL ; INSTITUTE CHARTER SCHOOL ; BOARD OF17 COOPERATIVE SERVICES; COLORADO SCHOOL FOR THE DEAF AND THE18 BLIND, ESTABLISHED IN SECTION 22-80-102; APPROVED FACILITY SCHOOL19 OR FACILITY, AS DEFINED IN SECTION 22-2-402; OR RESIDENTIAL OR DAY20 TREATMENT CHILD CARE FACILITY, AS DEFINED IN SECTION 26-6-903, THAT21 PARTICIPATES IN THE FEDERAL NATIONAL SCHOOL LUNCH PROGRAM AND22 THAT HAS BEEN SELECTED BY THE DEPARTMENT TO PARTICIPATE IN THE23 LOCAL SCHOOL FOOD PURCHASING PROGRAM PURSUANT TO SECTION24 22-82.9-302 (2)(b).25 (7) "S TATE BOARD" MEANS THE STATE BOARD OF EDUCATION26 CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE27 HB24-1390 -13- STATE CONSTITUTION.1 (8) "T ECHNICAL ASSISTANCE AND EDUCATION PROGRAM " MEANS2 THE LOCAL SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND3 EDUCATION GRANT PROGRAM CREATED PURSUANT TO SECTION4 22-82.9-303.5 (9) "V ALUE-ADDED PROCESSED PRODUCTS " MEANS PRODUCTS6 THAT ARE ALTERED FROM THEIR UNPROCESSED OR MINIMALLY PROCESSED7 STATE THROUGH PRESERVATION TECHNIQUES , INCLUDING COOKING,8 BAKING, OR CANNING.9 22-82.9-302. Local school food purchasing program - creation10 - rules. (1) T HE LOCAL SCHOOL FOOD PURCHASING PROGRAM IS CREATED11 IN THE DEPARTMENT TO REIMBURSE PARTICIPATING PROVIDERS FOR THE12 PURCHASE OF COLORADO GROWN , RAISED, OR PROCESSED PRODUCTS13 PURSUANT TO THIS SECTION.14 (2) (a) A SCHOOL DISTRICT, DISTRICT CHARTER SCHOOL, INSTITUTE15 CHARTER SCHOOL, BOARD OF COOPERATIVE SERVICES , THE COLORADO16 SCHOOL FOR THE DEAF AND THE BLIND , AN APPROVED FACILITY SCHOOL17 OR FACILITY, OR A RESIDENTIAL CHILD CARE FACILITY MAY APPLY TO THE18 DEPARTMENT TO PARTICIPATE IN THE PURCHASING PROGRAM TO RECEIVE19 REIMBURSEMENT FOR PURCHASE OF COLORADO GROWN , RAISED, OR20 PROCESSED PRODUCTS PURSUANT TO THIS SECTION .21 (b) (I) T HE DEPARTMENT SHALL SELECT PARTICIPATING PROVIDERS22 THAT SERVED FEWER THAN TWO MILLION ONE HUNDRED FIFTY THOUSAND23 SCHOOL LUNCHES IN THE 2023-24 SCHOOL YEAR. THE DEPARTMENT SHALL24 CREATE A FORM FOR PARTICIPATING PROVIDERS TO TRACK AND REPORT25 THE COLORADO GROWN, RAISED, OR PROCESSED PRODUCTS PURCHASED .26 (II) T HE DEPARTMENT SHALL GIVE PREFERENCE TO APPLICANTS27 HB24-1390 -14- THAT:1 (A) D EMONSTRATE A COMMITMENT TO LOCAL PURCHASING OR2 FOOD AND AGRICULTURAL EDUCATION ;3 (B) H AVE A KITCHEN WITH THE ABILITY TO STORE, PREPARE, AND4 SERVE LOCAL FOOD PRODUCTS ;5 (C) H AVE GREATER THAN TWENTY -FIVE PERCENT OF THEIR6 STUDENTS ELIGIBLE FOR FREE OR REDUCED PRICE LUNCH PURSUANT TO7 THE NATIONAL SCHOOL LUNCH PROGRAM ;8 (D) S ERVED FEWER THAN ONE MILLION TWO HUNDRED FIFTY9 THOUSAND SCHOOL LUNCHES IN THE 2023-24 SCHOOL YEAR COUNT; AND10 (E) S ATISFY ANY OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED11 BY THE DEPARTMENT.12 (III) T O THE EXTENT POSSIBLE, IN SELECTING PARTICIPATING13 PROVIDERS, THE DEPARTMENT SHALL ENSURE DIVERSITY IN GEOGRAPHIC14 LOCATION AND DISTRICT PUPIL COUNT.15 (c) O N OR BEFORE AUGUST 1 OF THE YEAR FOLLOWING THE16 PARTICIPATING PROVIDER'S APPLICATION, THE PARTICIPATING PROVIDER17 SHALL TRACK AND REPORT TO THE DEPARTMENT FOR THE SCHOOL YEAR18 IN WHICH IT APPLIED, AND FOR THE 2023-24 SCHOOL YEAR, THE TOTAL19 AMOUNT OF COLORADO GROWN , RAISED, OR PROCESSED PRODUCTS IT20 PURCHASED FOR STUDENT MEALS AND THE TOTAL NUMBER OF LUNCHES21 THAT IT PROVIDED TO STUDENTS.22 (3) (a) I N OCTOBER 2024, THE DEPARTMENT SHALL REIMBURSE23 EACH PARTICIPATING PROVIDER PARTICIPATING IN THE PURCHASING24 PROGRAM AT LEAST FIVE CENTS FOR EVERY SCHOOL LUNCH THAT THE25 PARTICIPATING PROVIDER PREPARED IN THE 2023-24 SCHOOL YEAR OR A26 MINIMUM OF ONE THOUSAND DOLLARS , WHICHEVER IS GREATER; EXCEPT27 HB24-1390 -15- THAT A PARTICIPATING PROVIDER IS NOT REIMBURSED FOR THE AMOUNT1 OF VALUE-ADDED PROCESSED PRODUCTS THAT EXCEEDS TWENTY -FIVE2 PERCENT OF THE TOTAL OF THE COLORADO GROWN , RAISED, OR3 PROCESSED PRODUCTS IT PURCHASED .4 (b) N OTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, THE5 MAXIMUM AMOUNT OF REIMBURSEMENTS THAT MAY BE AWARDED IN ANY6 YEAR IS FIVE HUNDRED THOUSAND DOLLARS .7 (4) R EIMBURSEMENT PAYMENTS MADE PURSUANT TO THIS SECTION8 ACCRUE TO THE PARTICIPATING PROVIDER 'S NONPROFIT SCHOOL FOOD9 ACCOUNT.10 (5) (a) T HE STATE BOARD IS AUTHORIZED TO ADOPT RULES TO11 IMPLEMENT THE PURCHASING PROGRAM .12 (b) T HE DEPARTMENT IS AUTHORIZED TO MONITOR THE13 PURCHASING PROGRAM TO ENSURE PROGRAM INTEGRITY .14 (c) T HE DEPARTMENT SHALL CREATE , DISTRIBUTE, AND COLLECT15 PRODUCER AND PARTICIPATING PROVIDER SURVEYS REQUIRED PURSUANT16 TO SECTION 22-82.9-304.17 (6) I F IN ANY STATE BUDGET YEAR THE DEPARTMENT DOES NOT18 EXPEND OR ENCUMBER THE FULL AMOUNT OF THE APPROPRIATION FOR THE19 PURCHASING PROGRAM , UP TO FIVE PERCENT OF THE APPROPRIATION IS20 AVAILABLE TO THE DEPARTMENT IN THE NEXT STATE BUDGET YEAR TO21 PAY FOR THE EVALUATION REQUIRED PURSUANT TO SECTION 22-82.9-304.22 22-82.9-303. Local school food purchasing technical assistance23 and education grant program - creation - report. (1) T HE LOCAL24 SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND EDUCATION25 GRANT PROGRAM IS CREATED IN THE DEPARTMENT . THE PURPOSE OF THE26 TECHNICAL ASSISTANCE AND EDUCATION PROGRAM IS TO ISSUE A GRANT27 HB24-1390 -16- TO A STATEWIDE NONPROFIT ORGANIZATION TO DEVELOP AND MANAGE A1 GRANT PROGRAM TO ASSIST WITH THE PROMOTION OF COLORADO GROWN,2 RAISED, OR PROCESSED PRODUCTS TO PARTICIPATING PROVIDERS .3 (2) S UBJECT TO AVAILABLE APPROPRIATIONS , THE NONPROFIT4 ORGANIZATION MAY AWARD GRANTS FOR THE FOLLOWING :5 (a) T RAINING, TECHNICAL ASSISTANCE , AND PHYSICAL6 INFRASTRUCTURE GRANTS TO PARTICIPATING PROVIDERS , GROWER7 ASSOCIATIONS, OR OTHER ORGANIZATIONS THAT AGGREGATE PRODUCTS8 FROM PRODUCERS FOR:9 (I) P ROFESSIONAL CONTRACTING SERVICES TO SUPPORT THE10 DEVELOPMENT AND SUSTAINABILITY OF LOCAL AND REGIONAL FOOD11 SYSTEMS;12 (II) C HEF TRAINING ON FOOD HANDLING AND PROCUREMENT13 PRACTICES AND SMALL KITCHEN EQUIPMENT PURCHASES ;14 (III) G OOD AGRICULTURAL PRACTICES CERTIFICATION COSTS AND15 GOOD HANDLING PRACTICES CERTIFICATION COSTS AND TRAINING ON16 SELLING TO SCHOOLS; AND17 (IV) C APACITY BUILDING FOR LOCAL VALUE -ADDED PROCESSED18 PRODUCTS; AND19 (b) E DUCATION, OUTREACH, AND PROMOTION FOR:20 (I) S CHOOLS TO ENGAGE FAMILIES AND COMMUNITIES AR OUND THE21 BENEFITS OF FARM-TO-SCHOOL AND WAYS TO SUPPORT FARM -TO-SCHOOL;22 AND23 (II) G ROWER ASSOCIATIONS AND GROWERS TO COMMUNICATE TO24 SCHOOLS AND SCHOOL COMMUNITIES ABOUT THE MULTIPLE BENEFITS OF25 PURCHASING LOCAL PRODUCTS .26 (3) T HE NONPROFIT ORGANIZATION SHALL ANNUALLY REPORT TO27 HB24-1390 -17- THE DEPARTMENT ON THE TECHNICAL ASSISTANCE AND EDUCATION1 PROGRAM, INCLUDING:2 (a) T HE NUMBER AND TYPES OF ENTITIES RECEIVING GRANTS ;3 (b) T HE NUMBER, TYPES, AND PURPOSES OF THE GRANTS AWARDED4 PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION; AND5 (c) T HE TYPES OF EDUCATION AND OUTREACH CONDUCTED BY6 PARTICIPATING PROVIDERS AND OTHERS PURSUANT TO SUBSECTION (2)(b)7 OF THIS SECTION.8 22-82.9-304. Evaluation - report. (1) O N OR BEFORE DECEMBER9 1, 2025, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE EDUCATION10 COMMITTEES OF THE HOUSE OF REPRESENTATIVES AND THE SENATE , THE11 HOUSE OF REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL12 RESOURCES COMMITTEE , THE SENATE AGRICULTURE AND NATURAL13 RESOURCES COMMITTEE , OR THEIR SUCCESSOR COMMITTEES , ON THE14 EFFECT OF THE PURCHASING PROGRAM ON THE AMOUNT OF COLORADO15 GROWN, RAISED, OR PROCESSED PRODUCTS PURCHASED BY PARTICIPATING16 PROVIDERS, INCLUDING:17 (a) N AMES AND DEMOGRAPHIC DATA OF PARTICIPATING18 PROVIDERS;19 (b) T HE DOLLAR AMOUNT SPENT ON COLORADO GROWN, RAISED,20 OR PROCESSED PRODUCTS DURING THE PURCHASING PROGRAM , INCLUDING21 LOCAL PURCHASING DATA FROM THE 2023-24 SCHOOL YEAR, THAT THE22 PARTICIPATING PROVIDER INCLUDED IN THE APPLICATION TO THE23 PURCHASING PROGRAM ;24 (c) P RODUCT CATEGORIES PURCHASED ;25 (d) N UMBER OF COLORADO PRODUCERS OR BUSINESSES26 PARTICIPATING BY PARTICIPATING PROVIDER AND IN TOTAL ;27 HB24-1390 -18- (e) ECONOMIC EFFECT ON PARTICIPATING PROVIDERS , PRODUCERS,1 AND ECONOMIES; AND2 (f) Q UALITATIVE PRODUCER AND PARTICIPATING PROVIDER3 SURVEYS.4 22-82.9-305. Program funding - state education fund.5 P URCHASING NUTRITIOUS FOODS FROM COLORADO'S FOOD SYSTEMS,6 INCLUDING LOCAL FARMERS AND RANCHERS , SUPPORTS STUDENTS '7 NUTRITION AND PROVIDES QUALITY MEALS TO BOOST THE HEALTH AND8 WELL-BEING OF COLORADO STUDENTS, AND IS AN IMPORTANT COMPONENT9 OF AN ACCOUNTABLE EDUCATION PROGRAM TO MEET STATE ACADEMIC10 STANDARDS, AND MAY THEREFORE RECEIVE FUNDING FROM THE STATE11 EDUCATION FUND CREATED SECTION 17 (4) OF ARTICLE IX OF THE STATE12 CONSTITUTION.13 22-82.9-306. Repeal of part. T HIS PART 3 IS REPEALED, EFFECTIVE14 J ULY 1, 2026.15 SECTION 11. In Colorado Revised Statutes, 24-75-109, amend16 (1)(f) as follows:17 24-75-109. Controller may allow expenditures in excess of18 appropriations - limitations - appropriations for subsequent fiscal19 year restricted - repeal. (1) For the purpose of closing the state's books,20 and subject to the provisions of this section, the controller may, on or21 after May 1 of any fiscal year and before the forty-fifth day after the close22 thereof, upon approval of the governor, allow any department, institution,23 or agency of the state, including any institution of higher education, to24 make an expenditure in excess of the amount authorized by an item of25 appropriation for such fiscal year if:26 (f) The overexpenditure is by the department of education for27 HB24-1390 -19- either:1 (I) Providing reimbursements to a participating school food2 authority for offering eligible meals without charge, pursuant to section3 22-82.9-204 (1)(b); or4 (II) Distributing money to a participating school food authority to5 increase wages or provide stipends for individuals whom the participating6 school food authority employs to directly prepare and serve food for7 school meals, pursuant to section 22-82.9-206 (1). PROVIDING8 REIMBURSEMENTS TO A PARTICIPATING SCHOOL FOOD AUTHORITY FOR9 OFFERING ELIGIBLE MEALS WITHOUT CHARGE , PURSUANT TO SECTION10 22-82.9-204 (1)(b).11 SECTION 12. In Colorado Revised Statutes, 24-75-201, repeal12 (2)(c) as follows:13 24-75-201. General fund - general fund surplus - custodial14 money. (2) (c) Any unrestricted balance remaining in the healthy school15 meals for all program general fund exempt account created in section16 22-82.9-210 (2) at the end of any fiscal year shall not be designated as17 part of the general fund surplus.18 SECTION 13. In Colorado Revised Statutes, 24-75-201.1, repeal19 (2)(e) as follows:20 24-75-201.1. Restriction on state appropriations - legislative21 declaration - definitions. (2) The basis for the calculation of the reserve22 as specified in this section includes all appropriations for expenditure23 from the general fund for such fiscal year, except for any appropriations24 for:25 (e) Expenditures from the healthy school meals for all program26 general fund exempt account created in section 22-82.9-210 (2).27 HB24-1390 -20- SECTION 14. Safety clause. The general assembly finds,1 determines, and declares that this act is necessary for the immediate2 preservation of the public peace, health, or safety or for appropriations for3 the support and maintenance of the departments of the state and state4 institutions.5 HB24-1390 -21-