Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction 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, AND, IN102 CONNECTION THEREWITH , MAKING AND REDUCING AN103 APPROPRIATION.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/ .) 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 HOUSE Amended 2nd Reading March 28, 2024 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. department determines participation in a statewide community eligibility provision will maximize federal funding. The bill requires the department to annually establish options for, 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 1390 -2- in excess of the appropriated amount to participating school food authorities for the wage increase or stipend program. 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 STATE 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 1390-3- board. At a minimum, the notice must include evidence that the school1 food authority is participating in the community eligibility provision as2 required in subsection (3) of this section PROVISIONAL PROGRAMMING IF3 DEEMED NECESSARY BY THE DEPARTMENT . THE DEPARTMENT MAY4 REQUIRE SCHOOL FOOD AUTHORITY MODIFICATIONS TO THE PROGRAM5 THROUGHOUT THE YEAR TO MAXIMIZE A SCHOOL FOOD AUTHORITY 'S6 FEDERAL REIMBURSEMENTS AS DEEMED NECESSARY BY THE DEPARTMENT .7 (3) (a) If the United States department of agriculture creates the8 option for the state, as a whole, to participate in the community eligibility9 provision, the department shall participate in the option and shall work10 with school food authorities and the necessary state and local departments11 to collect data and implement the community eligibility provision12 statewide, IF THE DEPARTMENT DETERMINES PARTICIPATION IN THE13 STATEWIDE COMMUNITY ELIGIBILITY PROVISION MAXIMIZES FEDERAL14 FUNDING. Until such time as Colorado participates in the community15 eligibility provision as a state, each participating school food authority,16 as a condition of participating in the program, must maximize the amount17 of federal reimbursement by THE SCHOOL FOOD AUTHORITY RECEIVES ,18 INCLUDING, BUT NOT LIMITED TO , participating in PROVISIONAL19 PROGRAMS, INCLUDING the community eligibility provision for all schools20 that qualify, for the community eligibility provision and that the21 participating school food authority serves SUBJECT TO DETERMINATION BY22 THE DEPARTMENT THAT THE SCHOOL FOOD AUTHORITY 'S PARTICIPATION23 MAXIMIZES FEDERAL REIMBURSEMENT .24 (b) A NNUALLY, THE DEPARTMENT SHALL ESTABLISH OPTIONS FOR ,25 AND COMMUNICATE THE OPTIONS TO , EACH SCHOOL FOOD AUTHORITY TO26 MAXIMIZE FEDERAL FUNDING. A SCHOOL FOOD AUTHORITY THAT CHOOSES27 1390 -4- AN OPTION OTHER THAN THE OPTIONS ESTABLISHED BY THE DEPARTMENT1 SHALL NOT RECEIVE HEALTHY SCHOOL MEALS FOR ALL PROGRAM FUNDING2 AND MUST USE OTHER ELIGIBLE FUNDING SOURCES TO COVER THE COSTS3 OF SERVING FREE MEALS TO ALL STUDENTS AT THE SCHOOLS OF THE4 SCHOOL FOOD AUTHORITY .5 (4) (b) S UBJECT TO AVAILABLE APPROPRIATIONS , implementation6 of sections 22-82.9-205 to 22-82.9-207 is conditional upon the state of 7 Colorado being certified to participate in the demonstration project for8 direct certification for children receiving medicaid benefits that is9 operated pursuant to 42 U.S.C. sec. 1758 (b)(15) EFFECTIVE BEGINNING10 IN THE 2025-26 BUDGET YEAR.11 (6) (a) O N OR BEFORE JULY 1, 2024, THE DEPARTMENT SHALL12 CREATE A POLICY FOR SCHOOL FOOD AUTHORITIES TO MAXIMIZE THE13 COLLECTION OF HOUSEHOLD INCOME APPLICATION FORMS FOR THE14 NATIONAL SCHOOL LUNCH PROGRAM TO INCREASE FEDERAL FUNDING FOR15 THE PROGRAM.16 (b) S CHOOL FOOD AUTHORITIES THAT CHOOSE TO PARTICIPATE IN17 THE PROGRAM SHALL COMPLY WITH THE POLICY DESCRIBED IN18 SUBSECTION (6)(a) OF THIS SECTION TO MAXIMIZE THE COLLECTION OF19 HOUSEHOLD INCOME APPLICATION FORMS FOR THE NATIONAL SCHOOL20 LUNCH PROGRAM.21 (7) (a) T HE HEALTHY SCHOOL MEALS FOR ALL PROGRAM22 TECHNICAL ADVISORY GROUP IS CREATED IN THE DEPARTMENT . AS SOON23 AS PRACTICABLE, THE DEPARTMENT SHALL CONVENE THE ADVISORY24 GROUP AND THE ADVISORY GROUP SHALL COLLABORATE WITH SCHOOL25 DISTRICTS, THE OFFICE OF STATE PLANNING AND BUDGETING , AND OTHER26 INTERESTED PARTIES TO:27 1390 -5- (I) IDENTIFY WAYS TO MAXIMIZE FEDERAL REIMBURSEMENTS ;1 (II) R EDUCE COSTS OF THE PROGRAM ;2 (III) R EVIEW COST-SAVINGS OPTIONS, INCLUDING MINIMIZING3 FOOD WASTE;4 (IV) S TRENGTHEN THE LONG-TERM RESILIENCY OF THE HEALTHY5 SCHOOL MEALS FOR ALL CASH FUND ;6 (V) C REATE MODEL REVENUE SCENARIOS ;7 (VI) P ROVIDE OPTIONS AND RECOMMENDATIONS FOR BALANCING8 PROGRAM REVENUES AND EXPENDITURES IN THE MANNER MOST9 EQUITABLE FOR STUDENTS AND SCHOOL FOOD AUTHORITIES ; AND10 (VII) D RAFT A REPORT PURSUANT TO SUBSECTION (7)(d) OF THIS11 SECTION WITH LEGISLATIVE AND ADMINISTRATIVE RECOMMENDATIONS .12 (b) (I) T HE ADVISORY GROUP SHALL SOLICIT INPUT FROM13 STAKEHOLDERS AND THE PUBLIC TO DIRECT THE ADVISORY GROUP 'S WORK.14 (II) L EGISLATIVE COUNCIL STAFF AND JOINT BUDGET COMMITTEE15 STAFF SHALL PROVIDE TECHNICAL SUPPORT TO THE ADVISORY GROUP .16 (III) T HE DEPARTMENT SHALL COLLABORATE WITH THE ADVISORY17 GROUP TO OBTAIN THE CONTRACTUAL SERVICES NECESSARY FOR THE18 ADVISORY GROUP'S WORK.19 (c) I N JUNE 2024 AND SEPTEMBER 2024, THE ADVISORY GROUP20 SHALL SUBMIT A STATUS REPORT TO THE JOINT BUDGET COMMITTEE ON21 THE PROGRESS OF THE ADVISORY GROUP 'S WORK.22 (d) (I) O N OR BEFORE DECEMBER 1, 2024, THE ADVISORY GROUP23 SHALL SUBMIT A REPORT SUMMARIZING THE ADVISORY GROUP 'S WORK24 DESCRIBED IN SUBSECTION (7)(a) OF THIS SECTION TO THE EDUCATION25 COMMITTEES OF THE HOUSE OF REPRESENTATIVES AND THE SENATE , OR26 ANY SUCCESSOR COMMI TTEES ; THE JOINT BUDGET COMMITTEE; THE STATE27 1390 -6- BOARD; AND THE GOVERNOR.1 (II) I N DECEMBER 2024, THE DEPARTMENT SHALL PRESENT THE2 ADVISORY GROUP'S REPORT DESCRIBED IN SUBSECTION (7)(d)(I) OF THIS3 SECTION TO THE JOINT BUDGET COMMITTEE .4 (III) I N JANUARY 2025, THE DEPARTMENT SHALL INCLUDE AS PART5 OF ITS PRESENTATION DURING ITS "SMART ACT" HEARING REQUIRED BY6 SECTION 2-7-203 INFORMATION CONCERNING THE PROGRAM AND THE7 REPORT DESCRIBED IN SUBSECTION (7)(d)(I) OF THIS SECTION.8 (e) A S USED IN THIS SUBSECTION , UNLESS THE CONTEXT9 OTHERWISE REQUIRES, "HEALTHY SCHOOL MEALS FOR ALL PROGRAM10 TECHNICAL ADVISORY GROUP " OR "ADVISORY GROUP" MEANS THE11 HEALTHY SCHOOL MEALS FOR ALL PROGRAM TECHNICAL ADVISORY GROUP12 CREATED IN THIS SUBSECTION (7).13 (f) T HIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2025.14 SECTION 4. In Colorado Revised Statutes, 22-82.9-205, amend15 (5) as follows:16 22-82.9-205. Local food purchasing grant - amount - advisory17 committee - verification of invoices. (5) S UBJECT TO AVAILABLE18 APPROPRIATIONS, this section is effective beginning in the first full budget 19 year after the state of Colorado is certified to participate in the federal20 demonstration project for direct certification for children receiving21 medicaid benefits as provided in section 22-82.9-204 (4) and begins22 including medicaid direct certification in determining school districts'23 identified student percentages 2025-26 BUDGET YEAR.24 SECTION 5. In Colorado Revised Statutes, 22-82.9-206, amend25 (2) as follows:26 22-82.9-206. School meals food preparation and service27 1390 -7- employees - wage increase or stipend. (2) S UBJECT TO AVAILABLE1 APPROPRIATIONS, this section is effective beginning in the first full budget2 year after the state of Colorado is certified to participate in the federal3 demonstration project for direct certification for children receiving4 medicaid benefits as provided in section 22-82.9-204 (4) and begins5 including medicaid direct certification in determining school districts'6 identified student percentages 2025-26 BUDGET YEAR.7 SECTION 6. In Colorado Revised Statutes, 22-82.9-207, amend8 (4) as follows:9 22-82.9-207. Local school food purchasing technical assistance10 and education grant program - created - report. (4) S UBJECT TO11 AVAILABLE APPROPRIATIONS, this section is effective beginning in the12 first full budget year after the state of Colorado is certified to participate 13 in the federal demonstration project for direct certification for children14 receiving medicaid benefits as provided in section 22-82.9-204 (4) and15 begins including medicaid direct certification in determining school16 districts' identified student percentages 2025-26 BUDGET YEAR.17 SECTION 7. In Colorado Revised Statutes, 22-82.9-208, amend18 (2) as follows:19 22-82.9-208. Report - audit. (2) (a) The department shall20 contract with an independent auditor to conduct a biennial financial and21 performance audit of the implementation of the program, including22 implementation of section 22-82.9-204 and including implementation of23 local food purchasing grants pursuant to section 22-82.9-205,24 distributions for the increase in wages or provision of stipends pursuant25 to section 22-82.9-206, and implementation of the local school food26 purchasing technical assistance and education grant program pursuant to27 1390 -8- section 22-82.9-207, to the extent said sections are in effect as provided1 in section 22-82.9-204 (4)(b). B EGINNING DECEMBER 1, 2027, the audit2 of the two budget years in each biennial cycle must be completed by3 December 1 of the following budget year. The department shall make the4 audit easily accessible by the public on the department website.5 (b) A NY APPROPRIATION TO THE DEPARTMENT FOR PURPOSES OF6 AN AUDIT THAT IS NOT EXPENDED IN A BUDGET YEAR IS FURTHER7 APPROPRIATED TO THE DEPARTMENT THROUGH THE CLOSE OF THE8 FOLLOWING BUDGET YEAR FOR THE SAME PURPOSES .9 SECTION 8. In Colorado Revised Statutes, amend 22-82.9-20910 as follows:11 22-82.9-209. Program - funding. (1) For the 2023-24 budget12 year and for each budget year thereafter, the general assembly shall13 appropriate to the department, by separate line items in the annual general14 appropriation bill, the amount necessary to implement the program,15 including the amount required to reimburse participating school food16 authorities for eligible meals provided to students pursuant to section17 22-82.9-204, and including the amount distributed as local food18 purchasing grants pursuant to section 22-82.9-205, SUBJECT TO19 AVAILABLE APPROPRIATIONS , AND the amount distributed pursuant to20 section 22-82.9-206 to increase the wages or provide stipends for staff21 who prepare and serve school meals, and at least five million dollars 22 annually to implement the local school food purchasing technical23 assistance and education grant program pursuant to section 22-82.9-207,24 to the extent said sections are in effect as provided in section 22-82.9-20425 (4)(b) SUBJECT TO AVAILABLE APPROPRIATIONS . The department may26 expend not more than one and five-tenths percent of the total amount27 1390 -9- annually appropriated pursuant to this section to offset the direct and1 indirect costs incurred by the department in implementing this part 2.2 (2) F OR THE 2023-24 BUDGET YEAR AND THE 2024-25 BUDGET3 YEAR, THE GENERAL ASSEMBLY SHALL APPROPRIATE MONEY FROM THE4 STATE EDUCATION FUND CREATED IN SECTION 17 (4) OF ARTICLE IX OF5 THE STATE CONSTITUTION TO COVER PROGRAM COSTS FOR WHICH THERE6 IS NOT SUFFICIENT MONEY IN THE HEALTHY SCHOOL MEALS FOR ALL CASH7 FUND.8 SECTION 9. In Colorado Revised Statutes, 22-82.9-210, add (8)9 and (9) as follows:10 22-82.9-210. Healthy school meals for all program general11 fund exempt account - creation - uses - reporting requirements -12 definitions - repeal. (8) ON JULY 1, 2024, THE STATE TREASURER SHALL13 TRANSFER THE BALANCE OF THE ACCOUNT TO THE HEALTHY SCHOOL14 MEALS FOR ALL PROGRAM CASH FUND CREATED IN SECTION 22-82.9-211.15 (9) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.16 SECTION 10. In Colorado Revised Statutes, add 22-82.9-211 as17 follows:18 22-82.9-211. Healthy school meals for all program cash fund19 - creation - uses - reporting requirements - definitions. (1) AS USED20 IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES :21 (a) "CASH FUND" MEANS THE HEALTHY SCHOOL MEALS FOR ALL22 PROGRAM CASH FUND CREATED IN THIS SECTION .23 (b) "HEALTHY SCHOOL MEALS FOR ALL PROGRAM REVENUE"24 MEANS THE REVENUE GENERATED BY THE ADDITION TO FEDERAL T AXABLE25 INCOME IN SECTION 39-22-104 (3)(p.5), WHICH REVENUE IS A26 VOTER-APPROVED REVENUE CHANGE .27 1390 -10- (2) THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM CASH FUND1 IS CREATED IN THE STATE TREASURY. THE CASH FUND CONSISTS OF2 HEALTHY SCHOOL MEALS FOR ALL PROGRAM REVENUE DEPOSITED IN THE3 CASH FUND IN ACCORDANCE WITH SUBSECTION (4)(a) OF THIS SECTION.4 THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED5 FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE CASH FUND TO THE6 CASH FUND.7 (3) (a) SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL8 ASSEMBLY, THE DEPARTMENT MAY EXPEND MONEY FROM THE CASH FUND9 FOR THE FOLLOWING PURPOSES:10 (I) PROVIDING REIMBURSEMENTS TO A PARTICIPATING SCHOOL11 FOOD AUTHORITY FOR OFFERING ELIGIBLE MEALS WITHOUT CHARGE12 PURSUANT TO SECTION 22-82.9-204 (1)(b);13 (II) AWARDING LOCAL FOOD PURCHASING GRANTS PURSUANT TO14 SECTION 22-82.9-205;15 (III) DISTRIBUTING MONEY TO A PARTICIPATING SCHOOL FOOD16 AUTHORITY TO INCREASE WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS17 WHOM THE PARTICIPATING SCHOOL FOOD AUTHORITY EMPLOYS TO18 DIRECTLY PREPARE AND SERVE FOOD FOR SCHOOL MEALS PURSUANT TO19 SECTION 22-82.9-206 (1);20 (IV) AWARDING LOCAL SCHOOL FOOD PURCHASING TECHNICAL21 ASSISTANCE AND EDUCATION GRANTS PURSUANT TO SECTION 22-82.9-207;22 AND23 (V) THE DIRECT AND INDIRECT COSTS OF ADMINISTERING THE24 PROGRAMS DESCRIBED IN THIS SUBSECTION (3)(a), SO LONG AS THESE25 COSTS DO NOT EXCEED ONE AND FIVE-TENTHS PERCENT OF THE TOTAL26 AMOUNT THE GENERAL ASSEMBLY ANNUALLY APPROPRIATES IN THE SAME27 1390 -11- FISCAL YEAR FOR THE OTHER PURPOSES DESCRIBED IN THIS SUBSECTION1 (3)(a).2 (b) MONEY IN THE CASH FUND SHALL NOT BE USED FOR THE3 PURPOSES DESCRIBED IN SUBSECTIONS (3)(a)(II), (3)(a)(III), AND4 (3)(a)(IV) OF THIS SECTION IF THE SUM OF THE ANNUAL TAX YEAR5 REVENUE RECORDED IN THE CASH FUND AND THE BALANCE IN THE CASH6 FUND, AS CALCULATED PURSUANT TO SUBSECTION (4) OF THIS SECTION, IS7 LESS THAN, OR IS ANTICIPATED TO BE LESS THAN, THE ANNUAL8 EXPENDITURE ANTICIPATED TO BE REQUIRED FOR THE PURPOSES9 DESCRIBED IN SUBSECTIONS (3)(a)(I) AND (3)(a)(V) OF THIS SECTION.10 (4) (a) THE DEPARTMENT OF REVENUE SHALL, ON A MONTHLY11 BASIS, RECORD REVENUES AND DEPOSIT MONEY IN THE CASH F UND IN A12 MANNER THAT IS ALIGNED WITH EXEMPT REVENUES DETERMINED13 PURSUANT TO SUBSECTION (4)(b) OF THIS SECTION.14 (b) THE DEPARTMENT OF REVENUE SHALL, ON A MONTHLY BASIS,15 REPORT THE AMOUNT OF HEALTHY SCHOOL MEALS FOR ALL PROGRAM16 REVENUE IDENTIFIED FROM TAX RETURNS TO THE OFFICE OF STATE17 PLANNING AND BUDGETING AND THE LEGISLATIVE COUNCIL STAFF. THE18 OFFICE OF STATE PLANNING AND BUDGETING SHALL CALCULATE THE19 AMOUNT OF HEALTHY SCHOOL MEALS FOR ALL PROGRAM REVENUE BOTH20 PROJECTED TO BE RECEIVED AND ACTUALLY RECEIVED BY THE21 DEPARTMENT OF REVENUE BASED ON INCOME TAX RETURN DATA AND22 OTHER RELEVANT FACTORS. THE OFFICE OF STATE PLANNING AND23 BUDGETING SHALL ALSO IDENTIFY, IN COLLABORATION WITH THE24 DEPARTMENT OF REVENUE, THE REVENUE TO BE RECORDED AND25 DEPOSITED ON A MONTHLY BASIS BY THE DEPARTMENT OF REVENUE IN THE26 CASH FUND PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION, AND THE27 1390 -12- TOTAL REVENUE TO BE RECORDED AND DEPOSITED BY THE DEPARTMENT1 OF REVENUE IN THE CASH FUND FOR THE FISCAL YEAR .2 (c) THE AMOUNT OF HEALTHY SCHOOL MEALS FOR ALL PROGRAM3 REVENUE IDENTIFIED BY THE OFFICE OF STATE PLANNING AND BUDGETING4 FOR EACH FISCAL YEAR MUST INCLUDE ADJUSTMENTS FOR ESTIMATION5 ERRORS DISCOVERED FOR ALL PRIOR FISCAL YEARS. THE OFFICE SHALL6 NOTIFY THE DEPARTMENT OF REVENUE AND THE LEGISLATIVE COUNCIL7 STAFF OF THE GENERAL ASSEMBLY OF THE ADJUSTMENT AMOUNTS .8 (d) ON DECEMBER 1, 2024, AND EVERY DECEMBER 1 THEREAFTER,9 THE OFFICE OF STATE PLANNING AND BUDGETING SHALL REPORT THE10 AMOUNT OF HEALTHY SCHOOL MEALS FOR ALL PROGRAM REVENUE11 RECEIVED BY THE DEPARTMENT OF REVENUE IN THE PREVIOUS TAX YEAR12 BASED ON INCOME TAX RETURN DATA AND OTHER RELEVANT FACTORS.13 THE GENERAL ASSEMBLY SHALL CONSIDER THIS REPORT WHEN14 ESTIMATING THE AMOUNT OF MONEY TO APPROPRIATE FOR THE PURPOSES15 SPECIFIED IN SUBSECTION (3) OF THIS SECTION IN THE NEXT FISCAL YEAR.16 (5) IF THE DEPARTMENT DETERMINES THAT THERE IS AN17 INSUFFICIENT AMOUNT OF MONEY IN THE CASH FUND TO PROVIDE FOR AN18 EXPENDITURE AUTHORIZED BY THE ANNUAL APPROPRIATION FROM THE19 CASH FUND FOR THE PURPOSES DESCRIBED IN SUBSECTION (3)(a)(I) OF THIS20 SECTION, THE DEPARTMENT MAY MAKE THE EXPENDITURE FROM THE21 GENERAL FUND.22 (6) IN ITS ANNUAL SUBMISSION OF THE STATE DEPARTMENT 'S23 BUDGET REQUEST TO THE JOINT BUDGET COMMITTEE, THE OFFICE OF STATE24 PLANNING AND BUDGETING SHALL REPORT :25 (a) THE TOTAL AMOUNT OF EXPENDITURES FROM THE CASH FUND26 MADE PURSUANT TO SUBSECTION (3) OF THIS SECTION; AND27 1390 -13- (b) THE TOTAL AMOUNT OF EXPENDITURES FROM THE GENERAL1 FUND MADE PURSUANT TO SUBSECTION (5) OF THIS SECTION.2 (7) ON JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER THE3 BALANCE FROM THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM GENERAL4 FUND EXEMPT ACCOUNT DEFINED IN SECTION 22-82.9-210 TO THE CASH5 FUND PURSUANT TO SECTION 22-82.9-210 (8).6 7 SECTION 11. In Colorado Revised Statutes, add part 3 to article8 82.9 of title 22 as follows:9 PART 310 LOCAL SCHOOL FOOD11 PURCHASING PROGRAMS12 22-82.9-301. Definitions. A S USED IN THIS PART 3, UNLESS THE13 CONTEXT OTHERWISE REQUIRES :14 (1) "C OLORADO GROWN , RAISED, OR PROCESSED PRODUCTS "15 MEANS ALL FRUITS, VEGETABLES, GRAINS, MEATS, AND DAIRY PRODUCTS,16 EXCEPT LIQUID MILK, GROWN OR RAISED IN COLORADO, AND MINIMALLY17 PROCESSED PRODUCTS OR VALUE -ADDED PROCESSED PRODUCTS THAT18 MEET THE STANDARDS FOR THE COLORADO PROUD DESIGNATION ,19 ESTABLISHED BY THE COLORADO DEPARTMENT OF AGRICULTURE , EVEN IF20 THE PRODUCT DOES NOT HAVE THE COLORADO PROUD DESIGNATION .21 (2) "D EPARTMENT" MEANS THE DEPARTMENT OF EDUCATION22 CREATED PURSUANT TO SECTION 24-1-115.23 (3) "L OCAL SCHOOL FOOD PURCHASING PROGRAM " OR24 " PURCHASING PROGRAM " MEANS THE LOCAL SCHOOL FOOD PURCHASING25 PROGRAM CREATED IN SECTION 22-82.9-302.26 (4) "M INIMALLY PROCESSED PRODUCTS " MEANS RAW OR FROZEN27 1390 -14- FABRICATED PRODUCTS ; PRODUCTS THAT RETAIN THEIR INHERENT1 CHARACTER, SUCH AS SHREDDED CARROTS OR DICED ONIONS ; AND DRIED2 PRODUCTS, SUCH AS BEANS, BUT DOES NOT INCLUDE ANY PRODUCTS THAT3 ARE HEATED, COOKED, OR CANNED.4 (5) "N ATIONAL SCHOOL LUNCH PROGRAM " MEANS THE FEDERAL5 SCHOOL LUNCH PROGRAM CREATED IN THE "RICHARD B. RUSSELL6 N ATIONAL SCHOOL LUNCH ACT", 42 U.S.C. SEC. 1751 ET SEQ., AS7 AMENDED.8 (6) "P ARTICIPATING PROVIDER" MEANS A SCHOOL DISTRICT ;9 DISTRICT CHARTER SCHOOL ; INSTITUTE CHARTER SCHOOL ; BOARD OF10 COOPERATIVE SERVICES; COLORADO SCHOOL FOR THE DEAF AND THE11 BLIND, ESTABLISHED IN SECTION 22-80-102; APPROVED FACILITY SCHOOL12 OR FACILITY, AS DEFINED IN SECTION 22-2-402; OR RESIDENTIAL OR DAY13 TREATMENT CHILD CARE FACILITY, AS DEFINED IN SECTION 26-6-903, THAT14 PARTICIPATES IN THE FEDERAL NATIONAL SCHOOL LUNCH PROGRAM AND15 THAT HAS BEEN SELECTED BY THE DEPARTMENT TO PARTICIPATE IN THE16 LOCAL SCHOOL FOOD PURCHASING PROGRAM PURSUANT TO SECTION17 22-82.9-302 (2)(b).18 (7) "S TATE BOARD" MEANS THE STATE BOARD OF EDUCATION19 CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE20 STATE CONSTITUTION.21 (8) "T ECHNICAL ASSISTANCE AND EDUCATION PROGRAM " MEANS22 THE LOCAL SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND23 EDUCATION GRANT PROGRAM CREATED PURSUANT TO SECTION24 22-82.9-303.25 (9) "V ALUE-ADDED PROCESSED PRODUCTS " MEANS PRODUCTS26 THAT ARE ALTERED FROM THEIR UNPROCESSED OR MINIMALLY PROCESSED27 1390 -15- STATE THROUGH PRESERVATION TECHNIQUES , INCLUDING COOKING,1 BAKING, OR CANNING.2 22-82.9-302. Local school food purchasing program - creation3 - rules. (1) T HE LOCAL SCHOOL FOOD PURCHASING PROGRAM IS CREATED4 IN THE DEPARTMENT TO REIMBURSE PARTICIPATING PROVIDERS FOR THE5 PURCHASE OF COLORADO GROWN , RAISED, OR PROCESSED PRODUCTS6 PURSUANT TO THIS SECTION.7 (2) (a) A SCHOOL DISTRICT, DISTRICT CHARTER SCHOOL, INSTITUTE8 CHARTER SCHOOL, BOARD OF COOPERATIVE SERVICES , THE COLORADO9 SCHOOL FOR THE DEAF AND THE BLIND , AN APPROVED FACILITY SCHOOL10 OR FACILITY, OR A RESIDENTIAL CHILD CARE FACILITY MAY APPLY TO THE11 DEPARTMENT TO PARTICIPATE IN THE PURCHASING PROGRAM TO RECEIVE12 REIMBURSEMENT FOR PURCHASE OF COLORADO GROWN , RAISED, OR13 PROCESSED PRODUCTS PURSUANT TO THIS SECTION .14 (b) (I) T HE DEPARTMENT SHALL SELECT PARTICIPATING PROVIDERS15 THAT SERVED FEWER THAN TWO MILLION ONE HUNDRED FIFTY THOUSAND16 SCHOOL LUNCHES IN THE 2023-24 SCHOOL YEAR. THE DEPARTMENT SHALL17 CREATE A FORM FOR PARTICIPATING PROVIDERS TO TRACK AND REPORT18 THE COLORADO GROWN, RAISED, OR PROCESSED PRODUCTS PURCHASED .19 (II) T HE DEPARTMENT SHALL GIVE PREFERENCE TO APPLICANTS20 THAT:21 (A) D EMONSTRATE A COMMITMENT TO LOCAL PURCHASING OR22 FOOD AND AGRICULTURAL EDUCATION ;23 (B) H AVE A KITCHEN WITH THE ABILITY TO STORE, PREPARE, AND24 SERVE LOCAL FOOD PRODUCTS ;25 (C) H AVE GREATER THAN TWENTY -FIVE PERCENT OF THEIR26 STUDENTS ELIGIBLE FOR FREE OR REDUCED PRICE LUNCH PURSUANT TO27 1390 -16- THE NATIONAL SCHOOL LUNCH PROGRAM ;1 (D) S ERVED FEWER THAN ONE MILLION TWO HUNDRED FIFTY2 THOUSAND SCHOOL LUNCHES IN THE 2023-24 SCHOOL YEAR COUNT; AND3 (E) S ATISFY ANY OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED4 BY THE DEPARTMENT.5 (III) T O THE EXTENT POSSIBLE, IN SELECTING PARTICIPATING6 PROVIDERS, THE DEPARTMENT SHALL ENSURE DIVERSITY IN GEOGRAPHIC7 LOCATION AND DISTRICT PUPIL COUNT.8 (c) O N OR BEFORE AUGUST 1 OF THE YEAR FOLLOWING THE9 PARTICIPATING PROVIDER'S APPLICATION, THE PARTICIPATING PROVIDER10 SHALL TRACK AND REPORT TO THE DEPARTMENT FOR THE SCHOOL YEAR11 IN WHICH IT APPLIED, AND FOR THE 2023-24 SCHOOL YEAR, THE TOTAL12 AMOUNT OF COLORADO GROWN , RAISED, OR PROCESSED PRODUCTS IT13 PURCHASED FOR STUDENT MEALS AND THE TOTAL NUMBER OF LUNCHES14 THAT IT PROVIDED TO STUDENTS.15 (3) (a) I N OCTOBER 2024, THE DEPARTMENT SHALL REIMBURSE16 EACH PARTICIPATING PROVIDER PARTICIPATING IN THE PURCHASING17 PROGRAM AT LEAST FIVE CENTS FOR EVERY SCHOOL LUNCH THAT THE18 PARTICIPATING PROVIDER PREPARED IN THE 2023-24 SCHOOL YEAR OR A19 MINIMUM OF ONE THOUSAND DOLLARS , WHICHEVER IS GREATER; EXCEPT20 THAT A PARTICIPATING PROVIDER IS NOT REIMBURSED FOR THE AMOUNT21 OF VALUE-ADDED PROCESSED PRODUCTS THAT EXCEEDS TWENTY -FIVE22 PERCENT OF THE TOTAL OF THE COLORADO GROWN , RAISED, OR23 PROCESSED PRODUCTS IT PURCHASED .24 (b) N OTWITHSTANDING SUBSECTION (3)(a) OF THIS SECTION, THE25 MAXIMUM AMOUNT OF REIMBURSEMENTS THAT MAY BE AWARDED IN ANY26 YEAR IS FIVE HUNDRED THOUSAND DOLLARS .27 1390 -17- (4) REIMBURSEMENT PAYMENTS MADE PURSUANT TO THIS SECTION1 ACCRUE TO THE PARTICIPATING PROVIDER 'S NONPROFIT SCHOOL FOOD2 ACCOUNT.3 (5) (a) T HE STATE BOARD IS AUTHORIZED TO ADOPT RULES TO4 IMPLEMENT THE PURCHASING PROGRAM .5 (b) T HE DEPARTMENT IS AUTHORIZED TO MONITOR THE6 PURCHASING PROGRAM TO ENSURE PROGRAM INTEGRITY .7 (c) T HE DEPARTMENT SHALL CREATE , DISTRIBUTE, AND COLLECT8 PRODUCER AND PARTICIPATING PROVIDER SURVEYS REQUIRED PURSUANT9 TO SECTION 22-82.9-304.10 (6) I F IN ANY STATE BUDGET YEAR THE DEPARTMENT DOES NOT11 EXPEND OR ENCUMBER THE FULL AMOUNT OF THE APPROPRIATION FOR THE12 PURCHASING PROGRAM , UP TO FIVE PERCENT OF THE APPROPRIATION IS13 AVAILABLE TO THE DEPARTMENT IN THE NEXT STATE BUDGET YEAR TO14 PAY FOR THE EVALUATION REQUIRED PURSUANT TO SECTION 22-82.9-304.15 22-82.9-303. Local school food purchasing technical assistance16 and education grant program - creation - report. (1) T HE LOCAL17 SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND EDUCATION18 GRANT PROGRAM IS CREATED IN THE DEPARTMENT . THE PURPOSE OF THE19 TECHNICAL ASSISTANCE AND EDUCATION PROGRAM IS TO ISSUE A GRANT20 TO A STATEWIDE NONPROFIT ORGANIZATION TO DEVELOP AND MANAGE A21 GRANT PROGRAM TO ASSIST WITH THE PROMOTION OF COLORADO GROWN,22 RAISED, OR PROCESSED PRODUCTS TO PARTICIPATING PROVIDERS .23 (2) S UBJECT TO AVAILABLE APPROPRIATIONS , THE NONPROFIT24 ORGANIZATION MAY AWARD GRANTS FOR THE FOLLOWING :25 (a) T RAINING, TECHNICAL ASSISTANCE , AND PHYSICAL26 INFRASTRUCTURE GRANTS TO PARTICIPATING PROVIDERS , GROWER27 1390 -18- ASSOCIATIONS, OR OTHER ORGANIZATIONS THAT AGGREGATE PRODUCTS1 FROM PRODUCERS FOR:2 (I) P ROFESSIONAL CONTRACTING SERVICES TO SUPPORT THE3 DEVELOPMENT AND SUSTAINABILITY OF LOCAL AND REGIONAL FOOD4 SYSTEMS;5 (II) C HEF TRAINING ON FOOD HANDLING AND PROCUREMENT6 PRACTICES AND SMALL KITCHEN EQUIPMENT PURCHASES ;7 (III) G OOD AGRICULTURAL PRACTICES CERTIFICATION COSTS AND8 GOOD HANDLING PRACTICES CERTIFICATION COSTS AND TRAINING ON9 SELLING TO SCHOOLS; AND10 (IV) C APACITY BUILDING FOR LOCAL VALUE -ADDED PROCESSED11 PRODUCTS; AND12 (b) E DUCATION, OUTREACH, AND PROMOTION FOR:13 (I) S CHOOLS TO ENGAGE FAMILIES AND COMMUNITIES AR OUND THE14 BENEFITS OF FARM-TO-SCHOOL AND WAYS TO SUPPORT FARM -TO-SCHOOL;15 AND16 (II) G ROWER ASSOCIATIONS AND GROWERS TO COMMUNICATE TO17 SCHOOLS AND SCHOOL COMMUNITIES ABOUT THE MULTIPLE BENEFITS OF18 PURCHASING LOCAL PRODUCTS .19 (3) T HE NONPROFIT ORGANIZATION SHALL ANNUALLY REPORT TO20 THE DEPARTMENT ON THE TECHNICAL ASSISTANCE AND EDUCATION21 PROGRAM, INCLUDING:22 (a) T HE NUMBER AND TYPES OF ENTITIES RECEIVING GRANTS ;23 (b) T HE NUMBER, TYPES, AND PURPOSES OF THE GRANTS AWARDED24 PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION; AND25 (c) T HE TYPES OF EDUCATION AND OUTREACH CONDUCTED BY26 PARTICIPATING PROVIDERS AND OTHERS PURSUANT TO SUBSECTION (2)(b)27 1390 -19- OF THIS SECTION.1 22-82.9-304. Evaluation - report. (1) O N OR BEFORE DECEMBER2 1, 2025, THE DEPARTMENT SHALL SUBMIT A REPORT TO THE EDUCATION3 COMMITTEES OF THE HOUSE OF REPRESENTATIVES AND THE SENATE , THE4 HOUSE OF REPRESENTATIVES AGRICULTURE , WATER, AND NATURAL5 RESOURCES COMMITTEE , THE SENATE AGRICULTURE AND NATURAL6 RESOURCES COMMITTEE , OR THEIR SUCCESSOR COMMITTEES , ON THE7 EFFECT OF THE PURCHASING PROGRAM ON THE AMOUNT OF COLORADO8 GROWN, RAISED, OR PROCESSED PRODUCTS PURCHASED BY PARTICIPATING9 PROVIDERS, INCLUDING:10 (a) N AMES AND DEMOGRAPHIC DATA OF PARTICIPATING11 PROVIDERS;12 (b) T HE DOLLAR AMOUNT SPENT ON COLORADO GROWN, RAISED,13 OR PROCESSED PRODUCTS DURING THE PURCHASING PROGRAM , INCLUDING14 LOCAL PURCHASING DATA FROM THE 2023-24 SCHOOL YEAR, THAT THE15 PARTICIPATING PROVIDER INCLUDED IN THE APPLICATION TO THE16 PURCHASING PROGRAM ;17 (c) P RODUCT CATEGORIES PURCHASED ;18 (d) N UMBER OF COLORADO PRODUCERS OR BUSINESSES19 PARTICIPATING BY PARTICIPATING PROVIDER AND IN TOTAL ;20 (e) E CONOMIC EFFECT ON PARTICIPATING PROVIDERS , PRODUCERS,21 AND ECONOMIES; AND22 (f) Q UALITATIVE PRODUCER AND PARTICIPATING PROVIDER23 SURVEYS.24 22-82.9-305. Program funding - state education fund.25 P URCHASING NUTRITIOUS FOODS FROM COLORADO'S FOOD SYSTEMS,26 INCLUDING LOCAL FARMERS AND RANCHERS , SUPPORTS STUDENTS '27 1390 -20- NUTRITION AND PROVIDES QUALITY MEALS TO BOOST THE HEALTH AND1 WELL-BEING OF COLORADO STUDENTS, AND IS AN IMPORTANT COMPONENT2 OF AN ACCOUNTABLE EDUCATION PR OGRAM TO MEET STATE ACADEMIC3 STANDARDS, AND MAY THEREFORE RECEIVE FUNDING FROM THE STATE4 EDUCATION FUND CREATED SECTION 17 (4) OF ARTICLE IX OF THE STATE5 CONSTITUTION.6 22-82.9-306. Repeal of part. T HIS PART 3 IS REPEALED, EFFECTIVE7 J ULY 1, 2026.8 SECTION 12. In Colorado Revised Statutes, 24-75-109, amend9 (1)(f) as follows:10 24-75-109. Controller may allow expenditures in excess of11 appropriations - limitations - appropriations for subsequent fiscal12 year restricted - repeal. (1) For the purpose of closing the state's books,13 and subject to the provisions of this section, the controller may, on or14 after May 1 of any fiscal year and before the forty-fifth day after the close15 thereof, upon approval of the governor, allow any department, institution,16 or agency of the state, including any institution of higher education, to17 make an expenditure in excess of the amount authorized by an item of18 appropriation for such fiscal year if:19 (f) The overexpenditure is by the department of education for20 either:21 (I) Providing reimbursements to a participating school food22 authority for offering eligible meals without charge, pursuant to section23 22-82.9-204 (1)(b); or24 (II) Distributing money to a participating school food authority to25 increase wages or provide stipends for individuals whom the participating26 school food authority employs to directly prepare and serve food for27 1390 -21- school meals, pursuant to section 22-82.9-206 (1). PROVIDING1 REIMBURSEMENTS TO A PARTICIPATING SCHOOL FOOD AUTHORITY FOR2 OFFERING ELIGIBLE MEALS WITHOUT CHARGE , PURSUANT TO SECTION3 22-82.9-204 (1)(b).4 SECTION 13. In Colorado Revised Statutes, 24-75-201, amend5 (2)(c) as follows:6 24-75-201. General fund - general fund surplus - custodial7 money - repeal. (2) (c) (I) Any unrestricted balance remaining in the8 healthy school meals for all program general fund exempt account created9 in section 22-82.9-210 (2) at the end of any fiscal year shall not be10 designated as part of the general fund surplus.11 (II) THIS SUBSECTION (2)(c) IS REPEALED, EFFECTIVE JULY 1, 2025.12 SECTION 14. In Colorado Revised Statutes, 24-75-201.1,13 amend (2)(e) as follows:14 24-75-201.1. Restriction on state appropriations - legislative15 declaration - definitions - repeal. (2) The basis for the calculation of16 the reserve as specified in this section includes all appropriations for17 expenditure from the general fund for such fiscal year, except for any18 appropriations for:19 (e) (I) Expenditures from the healthy school meals for all program20 general fund exempt account created in section 22-82.9-210 (2).21 (II) THIS SUBSECTION (2)(e) IS REPEALED, EFFECTIVE JULY 1, 2025.22 1390 -22- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ SECTION 15. Appropriation to the department of education for the fiscal year beginning July 1, 2024. Amend as added by House Bill 24-1430 section 2, Part IV (1)(A), 1 (3)(D)(1), (3)(D)(2), and the affected totals, and repeal Footnote 17, as follows: 2 Section 2. Appropriation. 3 PART IV 4 DEPARTMENT OF EDUCATION 5 6 (1) MANAGEMENT AND ADMINISTRATION 7(A) Administration and Centrally-Appropriated Line Items 8State Board of Education 9 575,805 575,805 10 (2.5 FTE) General Department and 11Program Administration 12 6,532,726 3,204,516 188,595 a 3,139,615 b 13 (23.9FTE) (2.1 FTE) (19.9 FTE) Grants Administration 14 564,452 389,513 174,939 c Health, Life, and Dental 15 9,686,767 4,025,403 1,462,109 d 968,342 e 3,230,913 (I) 1390 -23- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ Short-term Disability 1 93,966 38,115 12,790 d 9,834 e 33,227 (I) Paid Family Medical Leave 2Insurance 3 265,629 96,798 1,277 f 38,371 d 29,501 e 99,682 (I) 4 39,648 d Unfunded Liability 5Amortization Equalization 6Disbursement 7 6,264,374 2,498,466 42,478 f 852,690 d 655,574 e 2,215,166 (I) 8 895,168 d Salary Survey 9 2,167,677 778,984 20,500 f 311,459 d 240,788 e 815,946 (I) 10 331,959 d Step Pay 11 2,163,729 908,997 312,360 d 205,099 e 737,273 (I) PERA Direct Distribution 12 1,304,359 963,385 6,335 f 188,732 d 145,907 e 13 195,067 d 1390 -24- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ Temporary Employees 1Related to Authorized 2Leave 3 29,961 29,961 Workers' Compensation 4 334,121 160,533 43,601 d 11,291 e 118,696 (I) Legal Services 5 1,324,188 818,348 443,603 d 62,237 e Administrative Law Judge 6Services 7 209,603 209,603 g Payment to Risk 8Management and Property 9Funds 10 821,832 821,832 Capitol Complex Leased 11Space 12 1,053,714 300,308 191,776 d 95,888 h 465,742 (I) CORE Operations 13 66,377 33,185 25,715 i 7,477 j 14 33,459,280 15 1390 -25- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ a This amount shall be from general education development program fees. 1 b Of this amount, $2,270,195 shall be from departmental indirect cost recoveries or the Indirect Costs Excess Recovery Fund created in Section 24-75-1401 (2), C.R.S., and $869,420 2 shall be from statewide indirect cost recoveries or the Indirect Costs Excess Recovery Fund created in Section 24-75-1401 (2), C.R.S. 3c Of this amount, $91,134 shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution, $48,734 shall be from the Marijuana Tax Cash Fund 4 created in Section 39-28.8-501 (1), C.R.S., $27,096 shall be from the Early Literacy Fund created in Section 22-7-1210 (1) , C.R.S. $4,459 shall be from the Public School Capital 5 Construction Assistance Fund created in Section 22-43.7-104 (1), C.R.S., and $3,516 shall be from the Start Smart Nutrition Program Fund created in Section 22-82.7-105 (1), C.R.S. 6 Pursuant to Section 17 (3) of Article IX of the State Constitution, appropriations from the State Education Fund are not subject to the limitation on fiscal year spending set forth in Section 7 20 of Article X of the State Constitution. 8d Of these amounts, $1,228,130 shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution, $1,098,482(I) shall be from the Educator 9 Licensure Cash Fund created in Section 22-60.5-112 (1)(a), C.R.S., $597,456 shall be from the Public School Capital Construction Assistance Fund created in Section 22-43.7-104 (1), 10 C.R.S., $486,345 shall be from the Early Literacy Fund created in Section 22-7-1210 (1), C.R.S., $186,980 shall be from the Marijuana Tax Cash Fund created in Section 39-28.8-501 11 (1), C.R.S., $70,590 SHALL BE FROM THE H EALTHY S CHOOL M EALS FOR A LL P ROGRAM C ASH F UND CREATED IN S ECTION 22-82.9-211 (2), C.R.S., $44,739 shall be from general education 12 development program fees, and $215,359 shall be from various sources of cash funds. Pursuant to Section 17 (3) of Article IX of the State Constitution, appropriations from the State 13 Education Fund are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Cons titution. 14 1390 -26- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ e Of these amounts, $2,042,122 shall be from departmental indirect cost recoveri es or the Indirect Costs Excess Recovery Fund created in Section 24-75-1401 (2), C.R.S., $62,237 is 1 estimated to be transferred from the Division of Public School Capital Construction Assistance line item appropriation in the School District Operations section of this department, 2 $37,047 is estimated to be transferred from the Department of Regulatory Agencies from the Reading Services for the Blind Cash Fund and Disabled Telephone Users Fund in the Public 3 Utilities Commission, $36,506 is estimated to be from Medicaid funds transferred from the Department of Health Care Policy and Financing from the Transfer to the Department of 4 Education for Public School Health Services Administration line item in the Executive Director's Office, and $150,661 shall be from various sources of reappropriated funds. 5f These amounts shall be from the Healthy School Meals for All Program General Fund Exempt Account created in Section 22-82.9-21 0 (3), C.R.S. 6 g Of this amount, $171,874(I) shall be from the Educator Licensure Cash Fund created in Section 22-60.5-112 (1)(a), C.R.S., and $37,729 shall be from the State Education Fund created 7 in Section 17 (4)(a) of Article IX of the State Constitution. Pursuant to Section 17 (3) of Article IX of the State Constitution, appropriations from the State Education Fund are not subject 8 to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. 9h This amount shall be transferred from the Division of Public School Capital Construction Assistance line item appropriation in the School District Operations section of this department. 10 i Of this amount, it is estimated that $9,616 shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution, $6,155(I) shall be from the Educator 11 Licensure Cash Fund created in Section 22-60.5-112 (1)(a), C.R.S., $4,442 shall be from the Public School Capital Construction Assistance Fund created in Section 22-43.7-104 (1), 12 C.R.S., $3,515 shall be from the Early Literacy Fund created in Section 22-7-1210 (1), C.R.S., $1,602 shall be from the Marijuana Tax Cash Fund created in Section 39-28.8-501 (1), 13 C.R.S., and $385 shall be from general education development program fees. Pursuant to Section 17 (3) of Article IX of the State Constitution, appropriations from the State Education 14 Fund are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. 15j This amount shall be from departmental indirect cost recoveri es or the Indirect Costs Excess Recovery Fund created in Section 24-75-1401 (2), C.R.S. 16 1390 -27- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ 1 (3) SCHOOL DISTRICT OPERATIONS 2(D) Nutrition 3(1) Healthy School Meals for All Program 4Program Administration 17 5 A DMINISTRATION 6 887,732 95,908 791,824 a 7 791,824 791,824 a 8 (3.2 FTE) (1.0 FTE) 9 (3.2 FTE) School Meal 10Reimbursements 11 137,483,812 22,146,226 115,337,586 a 12 137,483,812 a Local Food Purchasing 13 Grant 14 5,000,000 5,000,000 1390 -28- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ Local Food Technical 1 Assistance Grant 2 5,000,000 5,000,000 Wage Distributions 3 8,400,000 8,400,000 4 156,771,544 5 138,275,636 6 a These amounts O F THESE AMOUNTS , $116,129,410 shall be from the Healthy School Meals for All Program General Fund Exempt Account, C ASH F UND , created in Section 22-82.9-211 7 (2), C.R.S., AND $22,146,226 SHALL BE FROM THE S TATE E DUCATION F UND CREATED IN S ECTION 17 (4)( A ) OF A RTICLE IX OF THE S TATE C ONSTITUTION . 8 9 (2) Other Nutrition Program 10Federal Nutrition Programs 11 156,775,300 104,973 156,670,327 (I) 12 (0.9 FTE) (16.1 FTE) State Match for School 13Lunch Program 14 2,472,644 2,472,644 a 1390 -29- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ Child Nutrition School 1Lunch Protection Program 2 841,460 841,460 b Start Smart Nutrition 3Program 4 296,484 296,484 c L OCAL S CHOOL F OOD 5 P URCHASING P ROGRAMS 6 675,729 675,729 b 7 (0.4 FTE) Summer Electronics 8Benefits Transfer for 9Children 10 447,870 223,935 223,935 (I) 11 (0.9 FTE) (0.8 FTE) 12 160,833,758 13 161,509,487 14 1390 -30- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ a This amount shall be from the State Public School Fund created in Section 22-54-114 (1), C.R.S., from interest and income earned on the investment of money in the Public School 1 Fund that is credited to the State Public School Fund pursuant to Section 22-41-102 (3)(g), C.R.S. 2b This amount shall be from the State Education Fund created in Section 17 (4)(a) of Article IX of the State Constitution. Pursuant to Section 17 (3) of Article IX of the State Constitution, 3 appropriations from the State Education Fund are not subject to the limitation on fiscal year spending set forth in Section 20 of Article X of the State Constitution. 4c This amount shall be from the Start Smart Nutrition Program Fund created in Section 22-82.7-105 (1), C.R.S. 5 6 7 TOTALS PART IV 8(EDUCATION) 9 $7,440,497,346 $3,338,057,203 $1,363,480,333 a 1,764,077,511 b $104,652,889 c $870,229,410 d 10 $7,422,677,167 $3,297,415,069 $1,247,280,333 a $1,903,099,466 b 11 12 a This amount shall be from the General Fund Exempt Account created in Section 24-77-103.6 (2), C.R.S. 13 b Of this amount, $5,432,434 contains an (I) notation. 14 c Of this amount, $43,900,000 contains an (I) notation. 15 1390 -31- APPROPRIATION FROM ITEM & SUBTOTAL TOTAL GENERAL FUND GENERAL FUND EXEMPT CASH FUNDS REAPPROPRIATED FUNDS FEDERAL FUNDS $$$$$ $ $ d This amount contains an (I) notation. 1 2 FOOTNOTES -- The following statements are referenced to the numbered footnotes throughout section 2. 3 4 17 Department of Higher Education, School District Operations, Nutrition, Healthy School Meals for All, Program Administration -- Of the amount appropriated 5 in this line item, up to $400,000, if not exp ended prior to the close of the 2024-25 state fiscal year, remains available for expenditure until the close of the 6 2025-26 state fiscal year. 7 1390 -32- SECTION 16. Repeal and reenact, with amendments, as1 enacted by House Bill 24-1430, section 16, as follows:2 SECTION 16. Appropriation to the department of education3 for the fiscal year beginning July 1, 2023. In Session Laws of Colorado4 2023, amend section 7 (1) introductory portion, (1)(f), and add (1)(h) of5 chapter 89, (SB 23-221), as follows:6 Section 7. Appropriation. (1) For the 2023-24 state fiscal year,7 $171,439,107 is appropriated to the department of education. Of this8 appropriation, $156,000,000 is from the healthy school meals for all9 program general fund exempt account and $15,439,107 is from the10 general fund. STATE EDUCATION FUND CREATED IN SECTION 17 (4) OF11 ARTICLE IX OF THE STATE CONSTITUTION. To implement this act, the12 department may use this appropriation as follows:13 (f) $171,000,000 for school meal reimbursements; and14 (h) $100,000 for consulting support, which amount, if not15 expended prior to the close of the 2023-24 state fiscal year, remains16 available for expenditure until the close of the 2024-25 state fiscal year.17 SECTION 17. Effective date. This act takes effect upon passage;18 except that sections 15 and 16 of this act take effect only if House Bill19 24-1430 becomes law, in which case sections 15 and 16 take effect upon20 the effective date of this act or House Bill 24-1430, whichever is later.21 SECTION 18. Safety clause. The general assembly finds,22 determines, and declares that this act is necessary for the immediate23 preservation of the public peace, health, or safety or for appropriations for24 the support and maintenance of the departments of the state and state25 institutions.26 1390-33-