First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0133.01 Pierce Lively x2059
HOUSE BILL 25-1274
House Committees Senate Committees
Education
A BILL FOR AN ACT
C
ONCERNING THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM .101
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
.)
The bill refers 2 ballot issues to the voters at the November 2025
statewide election concerning funding for the healthy school meals for all
program.
Section 2 of the bill refers a ballot issue to the voters at the
November 2025 statewide election to allow the state to retain and spend
state revenue that would otherwise need to be refunded for exceeding the
estimate in the ballot information booklet analysis for Proposition FF and
to allow the state to maintain the increases in state taxable income
HOUSE SPONSORSHIP
Garcia,
SENATE SPONSORSHIP
Michaelson Jenet,
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. established in Proposition FF that would otherwise need to be decreased.
If voters reject the ballot issue, the state will both:
! Refund $26,265,621 to individuals who have a federal
taxable income of $300,000 or more and claimed itemized
or standard state income tax deductions greater than
$12,000 for single tax return filers and $16,000 for joint tax
return filers; and
! Adjust the limit on itemized deductions established in
Proposition FF to a level that would have reduced the
amount of income tax revenue attributable to these
itemized deductions by $26,265,621.
If voters approve the ballot measure:
! The state will not refund $26,265,621 to individuals who
have a federal taxable income of $300,000 or more and
claimed itemized or standard state income tax deductions
greater than $12,000 for single tax return filers and $16,000
for joint tax return filers; and
! The increases in federal taxable income as a result of
Proposition FF will stay at the levels established by
Proposition FF.
Section 3 refers a ballot issue to the voters at the November 2025
statewide election to allow the state to increase taxes by $95 million
annually by increasing state taxable income to support the healthy school
meals for all program. If voters approve the ballot issue:
! Income tax deductions for individuals who have a federal
taxable income of $300,000 or more will be reduced from
current levels to $1,000 for single filers and $2,000 for
joint filers; and
! The state will allocate the additional revenue generated by
the reduction in income tax deductions to the healthy
school meals for all program.
If voters reject the ballot issue, income tax deductions will not be
reduced.
In addition to the income tax changes and potential refunds that
may result from voters approving or rejecting the ballot issues described
in sections 2 and 3, the bill also changes the healthy school meals for all
program cash fund (fund) and healthy school meals for all programs. If
voters approve the ballot issue submitted pursuant to section 2 and reject
the ballot issue submitted pursuant to section 3, $1 million is transferred
annually from the fund to local school food purchasing programs. If
voters approve the ballot issue submitted pursuant to section 3, regardless
of whether the voters approve the ballot issue submitted pursuant to
section 2:
! The permissible distribution of local food purchasing
grants is modified;
HB25-1274
-2- ! Certain school food authorities are allowed to collaborate
to implement advisory committees;
! The duties of an advisory committee are clarified; and
! The distribution of funds from the fund is changed so that
the amounts distributed through local food purchasing
grants for increasing wages or providing stipends for
individuals whom the participating school food authority
employs to directly prepare and serve food for school meals
and through the local school food purchasing technical
assistance and education grant program are modified based
on the amount of money in the fund.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) No child in Colorado should experience hunger; 4
(b) Every public school student should benefit from access to5
healthy, locally sourced, and freshly prepared meals to support their6
academic success and physical and mental well-being;7
(c) Investing in nutritious school meals for all public school8
students, free from stigma or stress, enables those students to focus on9
learning and is a critical investment in the success of Colorado's public10
schools;11
(d) Investing in nutritious school meals also supports Colorado12
farmers and ranchers, strengthening Colorado's local food systems;13
(e) That is why, in 2022, the general assembly enacted House Bill14
22-1414, which limited itemized and standard income tax deductions for15
taxpayers who have a federal adjusted gross income of $300,000 to16
$12,000 for single filers and $16,000 for joint filers to fund the17
implementation of a healthy school meals for all program, and18
subsequently referred Proposition FF, which sought voter approval for19
HB25-1274-3- these portions of House Bill 22-1414 to take effect;1
(f) Proposition FF was approved by the voters, with 56.7% of the2
votes in favor of the proposition;3
(g) Yet, in state fiscal year 2023-24 the revenue the state recorded4
exceeded the ballot information booklet estimate for state revenue from5
the new tax deduction limits in Proposition FF, and the state is required6
to refund revenues related to Proposition FF and proportionally reduce7
future revenue by changing the tax deduction limits in Proposition FF;8
(h) The refund is because section 20 (3)(c) of article X of the state9
constitution, commonly known as TABOR, requires the combined10
amount of state revenue in excess of the ballot information booklet11
estimate to be refunded, unless there is later voter approval to retain these12
excess revenues;13
(i) The potential increase in the tax deduction limits in Proposition14
FF is because paragraph (3)(c) of TABOR also requires a percentage15
reduction in the rate of a newly increased tax equal to the amount of16
revenue in excess of the ballot information booklet estimates as a17
percentage of the total state revenue from the increased tax, unless there18
is later voter approval;19
(j) Consequently, this act includes the referral of a new ballot20
issue to the voters at the first possible election to seek the voter approval21
necessary to avoid a refund under TABOR and to avoid increasing the tax22
deduction limits in Proposition FF;23
(k) If the voters approve that new ballot issue, the refund and tax24
deduction limit increases will be unnecessary, the money that would have25
otherwise been refunded will be retained and remain in the healthy school26
meals for all program cash fund, and the tax deduction limits will not be27
HB25-1274
-4- raised;1
(l) Since voters approved Proposition FF, the healthy school meals2
for all program went into effect in the 2023-24 state fiscal year and is3
reducing stigma, improving student physical and mental health and4
well-being, boosting academic success, and saving families money;5
(m) The healthy school meals for all program has been embraced6
by Colorado schools and students, with all 190 eligible school food7
authorities electing to participate in the program and meal participation8
increasing by more than 30% compared to the previous school year;9
(n) The healthy school meals for all program has proven to be an10
effective strategy for the goal of ending child hunger in Colorado;11
(o) Access to free school meals for all public school students,12
investment in local food purchasing, local food purchasing training and13
technical assistance, parent and student advisory committees, and wage14
boosts or stipends for fronting school nutrition professionals who are15
serving more students than ever, are all core components of the healthy16
school meals for all program established in Proposition FF and are critical17
for its effective implementation;18
(p) With high participation and rising food costs causing the19
healthy school meals for all program's expenditures to exceed available20
revenue, the general assembly finds it necessary to raise additional funds21
to continue to support all students' ability to access free, quality, nutritious22
meals at school and to fully implement all components of the healthy23
school meals for all program, including those that have not yet been24
implemented; and25
(q) Collecting additional tax revenue would also allow the state26
to build a reserve in the healthy school meals for all program cash fund27
HB25-1274
-5- to ensure the fiscal health and sustainability of the healthy school meals1
for all program.2
(2) Therefore, it is the general assembly's intent to include in this3
act the referral of a second ballot issue to raise additional revenue by4
lowering the tax deduction limits originally approved by the voters in5
Proposition FF, only on taxpayers with a federal taxable income of6
$300,000 or more, to fully fund and implement the healthy school meals7
for all program.8
SECTION 2. In Colorado Revised Statutes, add 22-82.9-212 as9
follows:10
22-82.9-212. Ballot issue related to Proposition FF refunds -11
repeal - definitions. (1) A
S USED IN THIS SECTION, UNLESS THE CONTEXT12
OTHERWISE REQUIRES:13
(a) "B
ALLOT ISSUE" MEANS THE BALLOT ISSUE REFERRED TO THE14
VOTERS PURSUANT TO SUBSECTION (2) OF THIS SECTION.15
(b) "P
ROPOSITION FF REFUND" MEANS AN AMOUNT EQUAL TO16
TWENTY-SIX MILLION TWO HUNDRED SIXTY-FIVE THOUSAND SIX HUNDRED17
TWENTY-ONE DOLLARS.18
(c) "P
ROPOSITION FF TAXES" MEANS THE INCREASE IN STATE19
TAXABLE INCOME RESULTING FROM SECTION 39-22-104 (3)(p.5)(I).20
(2) (a) A
T THE STATEWIDE ELECTION HELD IN NOVEMBER 2025,21
THE SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED ELECTORS22
OF THE STATE FOR THEIR APPROVAL OR REJECTION THE FOLLOWING23
BALLOT ISSUE: "WITHOUT RAISING TAXES, MAY THE STATE KEEP AND24
SPEND ALL REVENUE GENERATED BY THE 2022 VOTER-APPROVED STATE25
TAX DEDUCTION LIMITS ON INDIVIDUALS WITH INCOMES OF $300,000 OR26
MORE AND MAINTAIN THESE DEDUCTION LIMITS IN ORDER TO CONTINUE27
HB25-1274
-6- FUNDING THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM , WHICH PAYS1
FOR PUBLIC SCHOOLS TO OFFER FREE BREAKFAST AND LUNCH TO ALL2
STUDENTS IN KINDERGARTEN THROUGH TWELFTH GRADE ?"3
(b) F
OR PURPOSES OF SECTION 1-5-407, THE BALLOT ISSUE IS A4
PROPOSITION. SECTION 1-40-106 (3)(d) DOES NOT APPLY TO THE BALLOT5
ISSUE.6
(3) I
F A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE7
VOTE "NO/AGAINST":8
(a) T
HE DEPARTMENT OF REVENUE SHALL DETERMINE A9
REASONABLE METHOD TO DISTRIBUTE THE PROPOSITION FF REFUND IN10
ACCORDANCE WITH SECTION 20 (3)(c) OF ARTICLE X OF THE STATE11
CONSTITUTION. THIS METHOD MUST INCLUDE THE DISTRIBUTION OF THE12
P
ROPOSITION FF REFUND TO TAXPAYERS WITH A FEDERAL ADJUSTED13
GROSS INCOME OF THREE HUNDRED THOUS AND OR MORE DOLLARS WHO14
PAID THE PROPOSITION FF TAXES.15
(b) O
N OR BEFORE JUNE 30, 2026, THE STATE TREASURER SHALL16
REFUND AN AMOUNT EQUAL TO THE PROPOSITION FF REFUND IN THE17
MANNER DETERMINED BY THE DEPART MENT OF REVENUE PURSUANT TO18
SUBSECTION (3)(a) OF THIS SECTION.19
(4) I
F A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE20
VOTE "YES/FOR" THEN THIS SECTION IS REPEALED, EFFECTIVE JULY 1,21
2026.22
SECTION 3. In Colorado Revised Statutes, add 22-82.9-213 as23
follows:24
22-82.9-213. Ballot issue related to Proposition FF revenue25
increase - repeal. (1) A
T THE STATEWIDE ELECTION HELD IN NOVEMBER26
2025,
THE SECRETARY OF STATE SHALL SUBMIT TO THE REGISTERED27
HB25-1274
-7- ELECTORS OF THE STATE FOR THEIR APPROVAL OR REJECTION THE1
FOLLOWING BALLOT ISSUE: "SHALL STATE TAXES BE INCREASED BY $952
MILLION ANNUALLY BY A CHANGE TO THE COLORADO REVISED STATUTES3
THAT, TO SUPPORT THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM ,4
INCREASES STATE TAXABLE INCOME ONLY FOR INDIVIDUALS WHO HAVE A5
FEDERAL TAX INCOME OF $300,000 OR MORE BY LIMITING ITEMIZED OR6
STANDARD STATE INCOME TAX DEDUCTIONS TO $1,000 FOR SINGLE TAX7
RETURN FILERS AND $2,000 FOR JOINT TAX RETURN FILERS FOR THE8
PURPOSES OF FULLY FUNDING THE HEALTHY SCHOOL MEALS FOR ALL9
PROGRAM TO CONTINUE PAYING FOR PUBLIC SCHOOLS TO OFFER FREE10
BREAKFAST AND LUNCH TO ALL PUBLIC SCHOOL STUDENTS WHILE ALSO11
INCREASING WAGES FOR EMPLOYEES WHO PREPARE AND SERVE SCHOOL12
MEALS, HELPING SCHOOLS USE BASIC, NUTRITIOUS INGREDIENTS, INSTEAD13
OF PROCESSED PRODUCTS, AND ENSURING THAT COLORADO GROWN AND14
RAISED PRODUCTS ARE PART OF SCHOOL MEALS ; AND SHALL THE STATE BE15
ALLOWED TO RETAIN AND SPEND AS A VOTER -APPROVED REVENUE16
CHANGE ALL ADDITIONAL TAX REVENUE GENERATED BY THESE TAX17
DEDUCTION CHANGES?"18
Changes in Income Taxes Owed by Income Category19
Income Category20 Proposed Change in Average
Income Tax Owed
$299,999 or less21 $0
$300,000 or more22 +$486
(2) F
OR PURPOSES OF SECTION 1-5-407, THE BALLOT ISSUE23
DESCRIBED IN SUBSECTION (1) OF THIS SECTION IS A PROPOSITION. SECTION24
1-40-106 (3)(d)
DOES NOT APPLY TO THE BALLOT ISSUE.25
(3) I
F A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE26
DESCRIBED IN SUBSECTION (1) OF THIS SECTION VOTE "YES/FOR", THIS27
HB25-1274
-8- CONSTITUTES A VOTER-APPROVED REVENUE CHANGE TO ALLOW THE1
RETENTION AND EXPENDITURE OF STATE REVENUES IN EXCESS OF THE2
LIMITATION ON STATE FISCAL YEAR SPENDING .3
(4) I
F A MAJORITY OF THE ELECTORS VOTING ON THE BALLOT ISSUE4
DESCRIBED IN SUBSECTION (1) OF THIS SECTION VOTE "NO/AGAINST",5
THEN THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2026.6
SECTION 4. In Colorado Revised Statutes, 22-82.9-203, add7
(5.5) as follows:8
22-82.9-203. Definitions. As used in this part 2, unless the9
context otherwise requires:10
(5.5) "F
UND" MEANS THE HEALTHY SCHOOL MEALS FOR ALL11
PROGRAM CASH FUND CREATED IN SECTION 22-82.9-211.12
SECTION 5. In Colorado Revised Statutes, 22-82.9-204, amend13
(7)(a)(IV) as follows:14
22-82.9-204. Healthy school meals for all program - created -15
advisory group - report - rules - definition - repeal. (7) (a) The healthy16
school meals for all program technical advisory group is created in the17
department. As soon as practicable, the department shall convene the18
advisory group and the advisory group shall collaborate with school19
districts, the office of state planning and budgeting, and a representative20
from the department of agriculture to:21
(IV) Strengthen the long-term resiliency of the healthy school
22
meals for all cash fund;23
SECTION 6. In Colorado Revised Statutes, 22-82.9-205, amend24
(1)(a), (2)(a)(I), and (3)(a); and add (3)(c), (3)(d), and (3)(e) as follows:25
22-82.9-205. Local food purchasing grant - amount - advisory26
committee - verification of invoices. (1) (a) Subject to subsection (5) of27
HB25-1274
-9- this section, each participating school food authority that creates COMMITS1
TO OPERATING an advisory committee as described in subsection (3) of2
this section is eligible to receive a local food purchasing grant pursuant3
to this section to purchase Colorado grown, raised, or processed products.4
I
T IS THE GENERAL ASSEMBLY 'S INTENT THAT THESE GRANTS BE USED5
PRIMARILY TO SUPPORT SMALL- AND MEDIUM-SIZED FARMS AND RANCHES.6
(2) (a) (I) Subject to the provisions of
subsection (2)(b) of this7
section, at the beginning of each budget year the department, subject to8
available appropriations, shall distribute to each participating school food9
authority that is eligible to receive a grant pursuant to this section the10
greater of five thousand dollars or an amount equal to twenty-five cents11
multiplied by the number of lunches that qualified as an eligible meal that12
the participating school food authority served to students in the preceding13
school year AN AMOUNT ESTABLISHED PURS UANT TO SECTION 22-82.9-21114
(3).15
(3) (a) To receive a local food purchasing grant pursuant to this16
section, a participating school food authority must
HAVE OR establish an17
advisory committee made up of students and parents of students enrolled18
in the public schools served by the participating school food authority. In19
selecting students and parents to serve on the advisory committee, the20
participating school food authority shall ensure that the membership of21
the advisory committee reflects the racial, ethnic, and socioeconomic22
demographics of the student population enrolled by the participating23
school food authority. The advisory committee shall advise the24
participating school food authority concerning the selection of foods to25
ensure that meals are culturally relevant, healthy, and appealing to all26
ages of the student population.27
HB25-1274
-10- (c) A SCHOOL FOOD AUTHORITY THAT PROVIDED ONE MILLION OR1
FEWER LUNCHES IN THE 2023-24 SCHOOL YEAR MAY , SUBJECT TO2
APPROVAL BY THE DEPARTMENT , WORK WITH OTHER SCHOOL FOOD3
AUTHORITIES TO IMPLEMENT AN ADVISORY COMMITTEE THAT4
COLLABORATES WITH MULTIPLE SCHOOL FOOD AUTHORITIES .5
(d) A
N ADVISORY COMMITTEE ESTABLISHED PURSUANT TO THIS6
SUBSECTION (3) IS NOT LIMITED TO, BUT MAY:7
(I) S
CHEDULE AND HOLD MEETINGS AS NECESSARY FOR THE8
ADVISORY COMMITTEE TO HAVE ONGOING COLLABORATION WITH THE9
PARTICIPATING SCHOOL FOOD AUTHORITY AND ACHIEVE THE ADVISORY10
COMMITTEE'S GOALS;11
(II) T
HROUGH STUDENT SURVEYS OR OTHER METHODS AS12
NECESSARY, GATHER STUDENT FEEDBACK ON MEALS AND MEAL13
PREFERENCES;14
(III) S
UGGEST THE TYPES OF PURCHASES OF LOCAL INGREDIENTS15
TO THE SCHOOL FOOD AUTHORITY THAT WOULD SUPPORT LOCAL FARMERS16
AND RANCHERS IN THE SCHOOL FOOD AUTHORITY 'S REGION;17
(IV) I
NFORM THE SCHOOL FOOD AUTHORITY OF RECIPES THAT ARE18
BOTH NUTRITIOUS AND REFLECT THE CULTURES OF THE STUDENT19
POPULATION ENROLLED BY THE PARTICIPATING SCHOOL FOOD AUTHORITY ; 20
(V) T
ASTE TEST HEALTHY MEAL OPTIONS ;21
(VI) D
EVELOP SOLUTIONS TO REDUCE FOOD WASTE ;22
(VII) A
SSIST THE SCHOOL FOOD AUTHORITY IN DEVELOPING PLANS23
TO SUPPORT MORE SCRATCH COOKING ;24
(VIII) A
SSIST THE SCHOOL FOOD AUTHORITY IN OBTAINING THE25
NECESSARY RESOURCES TO PROVIDE MEALS THAT ARE CULTURALLY26
RELEVANT, HEALTHY, AND APPEALING TO ALL AGES OF THE STUDENT27
HB25-1274
-11- POPULATION;1
(IX) I
NFORM THE SCHOOL FOOD AUTHORITY OF , AND ASSIST IN THE2
IMPLEMENTATION OF, STRATEGIES TO MAXIMIZE THE COLLECTION AND3
COMPLETION OF HOUSEHOLD INCOME APPLICATION FORMS FOR NATIONAL4
SCHOOL LUNCH PROGRAMS ;5
(X) E
VALUATE THE EFFECTIVENESS OF THE ADVISORY COMMITTEE6
IN SUPPORTING THE SCHOOL FOOD AUTHORITY IN IMPROVING MEAL7
QUALITY AND STUDENT SATISFACTION WITH THE MEALS PROVIDED BY THE8
SCHOOL FOOD AUTHORITY ; AND9
(XI) L
EARN FROM A SCHOOL FOOD AUTHORITY ABOUT THE10
LOGISTICS OF LOCAL FOOD PROCUREMENT , MENU REQUIREMENTS, AND11
OPERATIONAL MANAGEMENT TO SUPPORT THE ADVISORY COMMITTEE IN12
SUGGESTING REALISTIC AND ATTAINABLE CHANGES TO SCHOOL MEALS .13
(e) A
SCHOOL FOOD AUTHORITY MAY CONTRACT WITH AN14
EXTERNAL NONPROFIT ORGANIZATION TO CONVENE AND FACILITATE AN15
ADVISORY COMMITTEE PURSUANT TO THIS SUBSECTION (3).16
SECTION 7. In Colorado Revised Statutes, 22-82.9-206, amend17
(1) as follows:18
22-82.9-206. School meals food preparation and service19
employees - wage increase or stipend. (1) Subject to subsection (2) of20
this section, in addition to the amounts received pursuant to sections21
22-82.9-204 and 22-82.9-205, a participating school food authority may22
receive the greater of three thousand dollars or an amount equal to twelve
23
cents multiplied by the number of school lunches that qualify as eligible24
meals that the participating school food authority provided in the previous25
budget year AN AMOUNT DESCRIBED IN SECTION 22-82.9-211 (3), so long26
as the participating school food authority uses one hundred percent of the27
HB25-1274
-12- amount received pursuant to this section to increase wages or provide1
stipends for individuals whom the participating school food authority2
employs to directly prepare and serve food for school meals. To receive3
the amount described in this section, a participating school food authority4
must submit documentation to the department as required by rules of the5
state board to demonstrate that the increase in wages or provision of6
stipends using the amount received pursuant to this section is7
implemented for the budget year in which the amount is received.8
SECTION 8. In Colorado Revised Statutes, 22-82.9-207, amend9
(2)(b) as follows:10
22-82.9-207. Local school food purchasing technical assistance11
and education grant program - created - report. (2) Subject to12
available appropriations, the nonprofit organization may award grants for:13
(b) Education, outreach, and promotion for:14
(I) Schools to engage families and communities on the benefits of15
farm-to-school and ways to support farm-to-school; and16
(II) Grower associations and growers to communicate to schools17
and school communities about the multiple benefits of purchasing local18
products;
AND19
(III) O
THER ACTIVITIES THAT SUPPORT THE DEVELOPMENT AND20
USE OF LOCALLY PRODUCED PRODUCTS IN MEALS SERVED AT SCHOOL .21
SECTION 9. In Colorado Revised Statutes, 22-82.9-208, amend22
(1)(a)(II) as follows:23
22-82.9-208. Report - audit. (1) (a) On or before December 1,24
2024, and on or before December 1 every two years thereafter, the25
department shall prepare a report concerning the implementation of26
section 22-82.9-204 and sections 22-82.9-205, 22-82.9-206, and27
HB25-1274
-13- 22-82.9-207, to the extent those sections are in effect as provided in1
section 22-82.9-204 (4)(b). At a minimum, the report must describe:2
(II) The effect of the use of local food purchasing grants on the3
amount QUANTITY of Colorado grown, raised, or processed products4
purchased by participating school food authorities,
THE COST OF THESE5
PURCHASES, and include
a compilation of the information reported by6
participating school food authorities pursuant to section 22-82.9-2057
(1)(b);8
SECTION 10. In Colorado Revised Statutes, 22-82.9-211,9
amend (1)(b), (2), (3)(a) introductory portion, (3)(b), (4)(a), (4)(b), and10
(5); repeal (1)(a) and (7); and add (1)(a.5), (1)(c), (1)(d), (3)(a.5), (3)(c),11
(3)(d), (3)(e), (3)(f), (3)(g), (3)(h), and (4.5) as follows:12
22-82.9-211. Healthy school meals for all program cash fund13
- creation - uses - reporting requirements - legislative declaration -14
definitions. (1) As used in this section, unless the context otherwise15
requires:16
(a) "Cash fund" means the healthy school meals for all program17
cash fund created in this section.18
(a.5) "A
CCOUNT" MEANS THE HEALTHY SCHOOL MEALS FOR ALL19
PROGRAM FUND ACCOUNT CREATED IN SUBSECTION (2)(b) OF THIS20
SECTION.21
(b) "Healthy school meals for all program revenue" means:22
(I) F
OR TAX YEARS COMMENCING BEFORE JANUARY 1, 2026, the23
revenue generated by the addition to federal taxable income in section24
39-22-104 (3)(p.5), which revenue is a voter approved revenue change;25
AND26
(II) F
OR TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2026,27
HB25-1274
-14- THE REVENUE GENERATED BY THE ADDITION TO FEDERAL TAXABLE1
INCOME IN SECTION 39-22-104 (3)(p.7), WHICH REVENUE IS A VOTER2
APPROVED REVENUE CHANGE .3
(c) "R
ESERVE" MEANS, AS CERTIFIED BY LEGISLATIVE COUNCIL, IN4
CONSULTATION WITH THE DEPARTMENT , AND BASED ON THE RELEVANT5
PROJECTIONS IN THE MARCH ECONOMIC AND REVENUE FORECAST6
PREPARED BY LEGISLATIVE COUNCIL STAFF, A PERCENTAGE EQUAL TO THE7
ESTIMATED AMOUNT IN THE FUND FOR A FISCAL YEAR MINUS THE8
ESTIMATED AMOUNT OF MONEY EXPENDED BY THE DEPARTMENT FOR THE9
PURPOSES DESCRIBED IN SUBSECTIONS (3)(a) AND (3)(a.5) OF THIS SECTION10
DIVIDED BY THE ESTIMATED AMOUNT EXPENDED BY THE DEPARTMENT FOR11
THE PURPOSE DESCRIBED IN SUBSECTION (3)(a)(I) OF THIS SECTION.12
(d) "S
TATE EDUCATION FUND HEALTHY SCHOOL MEALS FOR ALL13
REVENUE" MEANS THE AMOUNT OF ADDITIONAL TAX REVENUE DEPOSITED14
IN THE STATE EDUCATION FUND AS A RESULT OF LIMITING , FOR INCOME15
TAX YEARS COMMENCING ON OR AFER JANUARY 1, 2026, THE AMOUNT OF16
DEDUCTIONS THAT TAXPAYERS WHO CLAIM ITEMIZED DEDUCTIONS AS17
DEFINED IN SECTION 63 (d) OF THE INTERNAL REVENUE CODE OR THE18
STANDARD DEDUCTION AS DEFINED IN SECTION 63 (c) OF THE INTERNAL19
REVENUE CODE AND WHO HAVE A FEDERAL ADJUSTED GROSS INCOME IN20
THE INCOME TAX YEAR EQUAL TO OR GREATER T HAN THREE HUNDRED21
THOUSAND DOLLARS MAY CLAIM TO THE FOLLOWING :22
(I) F
OR A TAXPAYER WHO FILES A SINGLE RETURN , THE AMOUNT23
BY WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME24
UNDER SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE25
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION26
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS ONE THOUSAND27
HB25-1274
-15- DOLLARS, RATHER THAN TWELVE THOUSAND DOLLARS ; AND1
(II) F
OR TAXPAYERS WHO FILE A JOINT RETURN , THE AMOUNT BY2
WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME UNDER3
SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE4
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION5
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS , TWO THOUSAND6
DOLLARS, RATHER THAN SIXTEEN THOUSAND DOLLARS .7
(2) (a) The healthy school meals for all program cash
fund is8
created in the state treasury. The cash fund consists of healthy school9
meals for all program revenue deposited in the cash fund in accordance10
with subsection (4)(a) of this section
AND ANY OTHER MONEY THAT THE11
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND . The12
state treasurer shall credit all interest and income derived from the deposit13
and investment of money in the cash
fund to the cash fund.14
(b) T
HE HEALTHY SCHOOL MEALS FOR ALL PROGRAM FUND15
ACCOUNT IS CREATED IN THE FUND. THE ACCOUNT CONSISTS OF MONEY16
TRANSFERRED BY THE TREASURER FROM THE STATE EDUCATION FUND IN17
ACCORDANCE WITH SUBSECTION (4.5) OF THIS SECTION AND ANY OTHER18
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER19
TO THE FUND. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND20
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE21
ACCOUNT TO THE ACCOUNT .22
(3) (a) Subject to annual appropriation by the general assembly,23
the department may expend money from the cash
fund THAT IS NOT IN THE24
ACCOUNT for the following purposes:25
(a.5) (I) S
UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL26
ASSEMBLY, THE DEPARTMENT MAY EXPEND MONEY FROM THE ACCOUNT27
HB25-1274
-16- FOR THE FOLLOWING PURPOSES:1
(A) A
WARDING LOCAL FOOD PURCHASING GRANTS PURSUANT TO2
SECTIONS 22-82.9-205 AND 22-82.9-302;3
(B) D
ISTRIBUTING MONEY TO A PARTICIPATING SCHOOL FOOD4
AUTHORITY TO INCREASE WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS5
WHOM THE PARTICIPATING SCHOOL F OOD AUTHORITY EMPLOYS TO6
DIRECTLY PREPARE AND SERVE FOOD FOR SCHOOL MEALS PURSUANT TO7
SECTION 22-82.9-206 (1);8
(C) A
WARDING LOCAL SCHOOL FOOD PURCHASING TECHNICAL9
ASSISTANCE AND EDUCATION GRANTS PURS UANT TO SECTIONS10
22-82.9-207
AND 22-82.9-303; AND11
(D) T
HE DIRECT AND INDIRECT COSTS OF ADMINISTERING THE12
PROGRAMS DESCRIBED IN THIS SUBSECTION (3)(a.5), SO LONG AS THESE13
COSTS DO NOT EXCEED ONE AND ONE -HALF PERCENT OF THE TOTAL14
AMOUNT THE GENERAL ASSEMBLY ANNUALLY APPROPRIATES IN THE SAME15
FISCAL YEAR FOR THE OTHER PURPOSES DESCRIBED IN SUBSECTION (3)(a)16
OF THIS SECTION AND THIS SUBSECTION (3)(a.5).17
(II) T
HE DEPARTMENT SHALL, AS PRACTICABLE, EXPEND ALL OF18
THE ESTIMATED AMOUNT OF MONEY IN THE ACCOUNT FOR THE PURPOSES19
DESCRIBED IN THIS SUBSECTION (3)(a.5) AND IN ACCORDANCE WITH THE20
DISTRIBUTION METHODS ESTABLISHED IN SUBSECTIONS (3)(c) THROUGH21
(3)(h)
OF THIS SECTION.22
(b) Money in the cash
fund shall not be used for the purposes23
described in subsections (3)(a)(II), (3)(a)(III), and (3)(a)(IV) of this24
section if the sum of the annual tax year revenue recorded in the cash25
fund and the balance in the cash fund, as calculated pursuant to26
subsection (4) of this section, is less than, or is anticipated to be less than,27
HB25-1274
-17- the annual expenditure anticipated to be required for the purposes1
described in subsections (3)(a)(I) and (3)(a)(V) of this section. 2
(c) N
OTWITHSTANDING SUBSECTION (3)(b) OF THIS SECTION, IF THE3
DEPARTMENT EXPENDING MONEY FROM THE FUND AS FOLLOWS WOULD4
RESULT IN THE RESERVE EQUALING AN AMOUNT LESS THAN TEN PERCENT ,5
THEN THE DEPARTMENT SHALL EXPEND MONEY FROM THE ACCOUNT AS6
FOLLOWS:7
(I) A
WARDING LOCAL SCHOOL FOOD PURCHASING GRANTS8
PURSUANT TO SECTION 22-82.9-302 IN AMOUNTS DETERMINED BY THE9
DEPARTMENT THAT, IN COMBINATION WITH THE EXPENDITURES FROM THE10
ACCOUNT DESCRIBED IN SUBSECTIONS (3)(c)(II) AND (3)(c)(III) OF THIS11
SECTION, RESULT IN EXPENDING ALL OF THE ESTIMATED AMOUNT IN THE12
ACCOUNT;13
(II) D
ISTRIBUTING THE GREATER OF THREE THOUSAND DOLLARS OR14
AN AMOUNT EQUAL TO SIX CENTS MULTIPLIED BY THE NUMBER OF SCHOOL15
LUNCHES THAT QUALIFIED AS ELIGIBLE MEALS THAT THE PARTICIPATING16
SCHOOL FOOD AUTHORITY PROVIDED IN THE SCHOOL YEAR TWO SCHOOL17
YEARS PRIOR TO A PARTICIPATING SCHOOL FOOD AUTHORITY TO INCREASE18
WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS WHOM THE PARTICIPATING19
SCHOOL FOOD AUTHORITY EMPLOYS TO DIRECTLY PREPARE AND SERVE20
FOOD FOR SCHOOL MEALS PURSUANT TO SECTION 22-82.9-206 (1); AND21
(III) A
WARDING TWO HUNDRED FIFTY THOUSAND DOLLARS IN22
LOCAL SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND23
EDUCATION GRANTS PURSUANT TO SECTION 22-82.9-303.24
(d) I
F THE DEPARTMENT EXPENDING MONEY FROM THE FUND AS25
FOLLOWS WOULD RESULT IN THE RESERVE BEING EQUAL TO OR GREATER26
THAN TEN PERCENT AND LESS T HAN TWENTY -FIVE PERCENT, THEN THE27
HB25-1274
-18- DEPARTMENT SHALL EXPEND MONEY FROM THE FUND , INCLUDING MONEY1
IN THE ACCOUNT IN ACCORDANCE WITH SUBSECTION (3)(a.5)(II) OF THIS2
SECTION, AS FOLLOWS:3
(I) A
WARDING LOCAL FOOD PURCHASING GRANTS PURSUANT TO4
SECTION 22-82.9-205 IN AN AMOUNT EQUAL TO THE GREATER OF FIVE5
THOUSAND DOLLARS OR AN AMOUNT , AS DETERMINED BY THE6
DEPARTMENT, EQUAL TO OR GREATER THAN TEN AND EQUAL TO OR LESS7
THAN TWELVE AND ONE -HALF CENTS MULTIPLIED BY THE NUMBER OF8
LUNCHES THAT QUALIFIED AS AN ELIGIBLE MEAL THAT THE PARTICIPATING9
SCHOOL FOOD AUTHORITY SERVED TO STUDENTS IN THE SC HOOL YEAR10
TWO SCHOOL YEARS PRIOR;11
(II) D
ISTRIBUTING THE GREATER OF THREE THOUSAND DOLLARS OR12
AN AMOUNT EQUAL TO SIX CENTS MULTIPLIED BY THE NUMBER OF SCHOOL13
LUNCHES THAT QUALIFIED AS ELIGIBLE MEALS THAT THE PARTICIPATING14
SCHOOL FOOD AUTHORITY PROVIDED IN THE SCHOOL YEAR TWO SCHOOL15
YEARS PRIOR TO A PARTICIPATING SCHOOL FOOD AUTHORITY TO INCREASE16
WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS WHOM THE PARTICIPATING17
SCHOOL FOOD AUTHORITY EMPLOYS TO DIRECTLY PREPARE AND SERVE18
FOOD FOR SCHOOL MEALS PURSUANT TO SECTION 22-82.9-206 (1); AND19
(III) A
WARDING TWO MILLION FIVE HUNDRED THOUSAND DOLLARS20
IN LOCAL SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE AND21
EDUCATION GRANTS PURSUANT TO SECTION 22-82.9-207.22
(e) I
F THE DEPARTMENT EXPENDING MONEY FROM THE FUND AS23
FOLLOWS WOULD RESULT IN THE RESERVE EQUALING AN AMOUNT EQUAL24
TO OR GREATER THAN TWENTY -FIVE PERCENT AND LESS THAN FORTY25
PERCENT, THEN THE DEPARTMENT SHALL EXPEND MONEY FROM THE FUND ,26
INCLUDING MONEY IN THE ACCOUNT IN ACCORDANCE WITH SUBSECTION27
HB25-1274
-19- (3)(a.5)(II) OF THIS SECTION, AS FOLLOWS:1
(I) A
WARDING LOCAL FOOD PURCHASING GRANTS PURSUANT TO2
SECTION 22-82.9-205 IN AN AMOUNT EQUAL TO THE GREATER OF FIVE3
THOUSAND DOLLARS OR AN AMOUNT , AS DETERMINED BY THE4
DEPARTMENT, EQUAL TO OR GREATER THAN SIXTEEN AND LESS THAN OR5
EQUAL TO EIGHTEEN AND THREE -QUARTERS CENTS MULTIPLIED BY THE6
NUMBER OF LUNCHES THAT QUALIFIED AS AN ELIGIBLE MEAL THAT THE7
PARTICIPATING SCHOOL FOOD AUTHORITY SERVED TO STUDENTS IN THE8
SCHOOL YEAR TWO SCHOOL YEARS PRIOR ;9
(II) D
ISTRIBUTING THE GREATER OF THREE THOUS AND DOLLARS OR10
AN AMOUNT EQUAL TO NINE CENTS MULTIPLIED BY THE NUMBER OF11
SCHOOL LUNCHES THAT QUALIFIED AS ELIGIBLE MEALS THAT THE12
PARTICIPATING SCHOOL FOOD AUTHORITY PROVIDED IN THE SCHOOL YEAR13
TWO SCHOOL YEARS PRIOR TO A PARTICIPATING SCHOOL FOOD AUTHORITY14
TO INCREASE WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS WHOM THE15
PARTICIPATING SCHOOL FOOD AUTHORITY EMPLOYS TO DIRECTLY PREPARE16
AND SERVE FOOD FOR SCHOOL MEALS PURSUANT TO SECTION 22-82.9-20617
(1);
AND18
(III) A
WARDING THREE MILLION SEVEN HUNDRED FIFTY T HOUSAND19
DOLLARS IN LOCAL SCHOOL FOOD PURCHASING TECHNICAL ASSISTANCE20
AND EDUCATION GRANTS PURSUANT TO SECTION 22-82.9-207.21
(f) I
F THE DEPARTMENT EXPENDING MONEY FROM THE FUND AS22
FOLLOWS WOULD RESULT IN THE RESERVE EQUALING AN AMOUNT EQUAL23
TO OR GREATER THAN FORTY PERCENT AND , FOR STATE FISCAL YEARS24
COMMENCING ON OR AFTER JULY 1, 2029, LESS THAN FIFTY PERCENT, THEN25
THE DEPARTMENT SHALL EXPEND MONEY FROM THE FUND , INCLUDING26
MONEY IN THE ACCOUNT IN ACCORDANCE WITH SUBSECTION (3)(a.5)(II)27
HB25-1274
-20- OF THIS SECTION, AS FOLLOWS:1
(I) A
WARDING LOCAL FOOD PURCHASING GRANTS PURSUANT TO2
SECTION 22-82.9-205 IN AN AMOUNT EQUAL TO THE GREATER OF FIVE3
THOUSAND DOLLARS OR AN AMOUNT EQUAL TO TWENTY -FIVE CENTS4
MULTIPLIED BY THE NUMBER OF LUNCHES THAT QUALIFIED AS AN ELIGIBLE5
MEAL THAT THE PARTICIPATING SCHOOL FOOD AUTHORITY SERVED TO6
STUDENTS IN THE SCHOOL YEAR TWO SCHOOL YEARS PRIOR ;7
(II) D
ISTRIBUTING THE GREATER OF THREE THOUSAND DOLLARS OR8
AN AMOUNT EQUAL TO TWELVE CENTS MULTIPLIED BY THE NUMBER OF9
SCHOOL LUNCHES THAT QUALIFIED AS ELIGIBLE MEALS THAT THE10
PARTICIPATING SCHOOL FOOD AUTHORITY PROVIDED IN THE SCHOOL YEAR11
TWO SCHOOL YEARS PRIOR TO A PARTICIPATING SCHOOL FOOD AUTHORITY12
TO INCREASE WAGES OR PROVIDE STIPENDS FOR INDIVIDUALS WHOM THE13
PARTICIPATING SCHOOL FOOD AUTHORITY EMPLOYS TO DIRECTLY PREPARE14
AND SERVE FOOD FOR SCHOOL MEALS PURSUANT TO SECTION 22-82.9-20615
(1);
AND16
(III) A
WARDING FIVE MILLION DOLLARS IN LOCAL SCHOOL FOOD17
PURCHASING TECHNICAL ASSISTANCE AND EDUCATION GRANTS PURSUANT18
TO SECTION 22-82.9-207.19
(g) F
OR FISCAL YEARS COMMENCING ON OR AFTER JULY 1, 2029,20
IF THE DEPARTMENT DETERMINES THAT DOING SO WOULD RESULT IN THE21
RESERVE EQUALING FIFTY PERCENT OR MORE , THEN THE DEPARTMENT22
SHALL EXPEND MONEY FROM THE FUND , INCLUDING MONEY IN THE23
ACCOUNT IN ACCORDANCE WITH SUBSECTION (3)(a.5)(II) OF THIS SECTION,24
BY INCREASING THE AMOUNTS AWARDED AND DISTRIBUTED FROM THE25
FUND TO AMOUNTS GREATER THAN THOSE DESCRIBED IN SUBSECTION26
(3)(f)
OF THIS SECTION.27
HB25-1274
-21- (h) (I) NOTWITHSTANDING SUBSECTIONS (3)(d) THROUGH (3)(f) OF1
THIS SECTION, THE DEPARTMENT SHALL NOT REDUCE FROM ONE STATE2
FISCAL YEAR TO THE NEXT THE AMOUNT MULTIPLIED BY THE NUMBER OF3
LUNCHES THAT QUALIFY AS ELIGIBLE MEALS OR THE DOLLAR AMOUNT4
ALTERNATIVE USED TO CALCULATE THE AMOUNT THE DEPARTMENT5
AWARDS FOR THE PURPOSES DESCRIBED IN SUBSECTION (3)(a)(II), 6
(3)(a)(III), (3)(a.5)(I)(A),
AND (3)(a.5)(I)(B) OF THIS SECTION OR THE7
TOTAL AMOUNT THE DEPARTMENT AWARDS FOR THE PURPOSE DESCRIBED8
IN SUBSECTION (3)(a)(IV) AND (3)(a.5)(I)(C) OF THIS SECTION. THIS9
SUBSECTION (3)(h)(I) DOES NOT APPLY IN A FISCAL YEAR WHEN THE10
DEPARTMENT EXPENDS MONEY FROM THE FUND , INCLUDING MONEY IN THE11
ACCOUNT, PURSUANT TO SUBSECTIONS (3)(c) AND (3)(g) OF THIS SECTION.12
(II) N
OTWITHSTANDING SUBSECTIONS (3)(c) AND (3)(h)(I) OF THIS13
SECTION, IF, OVER THREE FISCAL YEARS , THE PERCENTAGE OF THE14
RESERVE DECREASES BY TEN PERCENTAGE POINTS FROM THE FIRST TO THE15
THIRD FISCAL YEAR, THE RESERVE IS EQUAL TO FORTY PERCENT OR LESS16
IN BOTH THE SECOND AND THIRD FISCAL YEAR , AND THE PERCENTAGE OF17
THE RESERVE DECREASES IN BOTH THE SECOND AND THIRD FISCAL YEAR ,18
FOR THE THIRD FISCAL YEAR:19
(A) I
F THE DEPARTMENT WOULD OTHERWISE EXPEND MONEY FROM20
THE FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(f) OF THIS21
SECTION, THE DEPARTMENT SHALL INSTEAD EXPEND MONEY FROM THE22
FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(e) OF THIS SECTION;23
(B) I
F THE DEPARTMENT WOULD OTHERWISE EXPEND MONEY FROM24
THE FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(e) OF THIS25
SECTION, EXCEPT FOR WHEN DOING SO PURSUANT TO THIS SUBSECTION26
(3)(h)(II),
THE DEPARTMENT SHALL INSTEAD EXPEND MONEY FROM THE27
HB25-1274
-22- FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(d) OF THIS SECTION;1
AND2
(C) I
F THE DEPARTMENT WOULD OTHERWISE EXPEND MONEY FROM3
THE FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(d) OF THIS4
SECTION, EXCEPT FOR WHEN DOING SO PURSUANT TO THIS SUBSECTION5
(3)(h)(II),
THE DEPARTMENT SHALL INSTEAD EXPEND MONEY FROM THE6
FUND IN THE AMOUNTS DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION.7
(4) (a) The department of revenue shall, on a monthly basis,8
record revenues and deposit money in the cash
fund in a manner that is9
aligned with exempt revenues determined pursuant to subsection (4)(b)10
of this section.11
(b) The department of revenue shall, on a monthly basis, report12
the amount of healthy school meals for all program revenue identified13
from tax returns to the office of state planning and budgeting and the14
legislative council staff. The office of state planning and budgeting shall15
calculate the amount of healthy school meals for all program revenue both16
projected to be received and actually received by the department of17
revenue based on income tax return data and other relevant factors. The18
office of state planning and budgeting shall also identify, in collaboration19
with the department of revenue, the revenue to be recorded and deposited20
on a monthly basis by the department of revenue in the cash fund21
pursuant to subsection (4)(a) of this section, and the total revenue to be22
recorded and deposited by the department of revenue in the cash fund for23
the fiscal year.24
(4.5) (a) O
N JULY 1, 2027, AND EACH JULY 1 THEREAFTER, THE25
STATE TREASURER SHALL TRANSFER AN AMOUNT FROM THE STATE26
EDUCATION FUND TO THE ACCOUNT EQUAL TO THE AMOUNT REPORTED BY27
HB25-1274
-23- THE OFFICE OF STATE PLANNING AND BUDGETING PURSUANT TO1
SUBSECTION (4.5)(b) OF THIS SECTION.2
(b) B
EFORE JULY 1, 2027, AND BEFORE EACH JULY 1 THEREAFTER,3
THE OFFICE OF STATE PLANNING AND BUDGETING SHALL , IN4
COLLABORATION WITH THE DEPARTMENT OF REVENUE , PREPARE AN5
ESTIMATE OF THE AMOUNT OF STATE EDUCATION FUND HEALTHY SCHOOL6
MEALS FOR ALL REVENUE FOR A FISCAL YEAR AND REPORT THAT ESTIMATE7
TO THE STATE TREASURER.8
(c) T
HE GENERAL ASSEMBLY FINDS AND DECLARES THAT FOR9
PURPOSES OF SECTION 17 OF ARTICLE IX OF THE STATE CONSTITUTION,10
HEALTHY SCHOOL MEALS ARE AN ESSENTIAL COMPONENT TO STUDENT11
LEARNING. THE PROGRAMS DESCRIBED IN SUBSECTION (3)(a.5) OF THIS12
SECTION ARE AN IMPORTANT COMPONENT OF AN ACCOUNTABLE PROGRAM13
TO MEET STATE ACADEMIC STANDARDS , AND MAY THEREFORE RECEIVE14
MONEY FROM THE STATE EDUCATION FUND CREATED IN SECTION 17 (4) OF15
ARTICLE IX OF THE STATE CONSTITUTION.16
(5) If the department determines that there is an insufficient17
amount of money in the cash
fund, EXCLUDING THE MONEY IN THE18
ACCOUNT, to provide for an expenditure authorized by the annual19
appropriation from the cash fund for the purposes described in subsection20
(3)(a)(I) of this section, the department may make the expenditure from21
the general fund.22
(7) On July 1, 2024, the state treasurer shall transfer the balance23
from the healthy school meals for all program general fund exempt24
account defined in section 22-82.9-210 to the cash fund pursuant to25
section 22-82.9-210 (8).26
SECTION 11. In Colorado Revised Statutes, 22-82.9-211,27
HB25-1274
-24- amend (3)(a)(IV), (3)(a)(V), and (3)(b); and add (3)(a)(VI) and (5.5) as1
follows:2
22-82.9-211. Healthy school meals for all program cash fund3
- creation - uses - reporting requirements - definitions. (3) (a) Subject4
to annual appropriation by the general assembly, the department may5
expend money from the cash fund for the following purposes:6
(IV) Awarding local school food purchasing technical assistance7
and education grants pursuant to section 22-82.9-207; and8
(V) The direct and indirect costs of administering the programs9
described in this subsection (3)(a), so long as these costs do not exceed10
one and five-tenths percent of the total amount the general assembly11
annually appropriates in the same fiscal year for the other purposes12
described in this subsection (3)(a);
AND13
(VI) P
ROVIDING REIMBURSEMENTS PURSUANT TO THE LOCAL14
SCHOOL FOOD PURCHASING PROGRAM CREATED IN SECTION 22-82.9-30215
AND GRANT AWARDS PURSUANT TO THE LOCAL SC HOOL FOOD PURCHASING16
TECHNICAL ASSISTANCE AND EDUCAT ION ASSISTANCE GRANT PROGRAM17
CREATED IN SECTION 22-82.9-303.18
(b) Money in the cash fund shall not be used for the purposes19
described in subsections (3)(a)(II), (3)(a)(III), and (3)(a)(IV), of this20
section if the sum of the annual tax year revenue recorded in the cash21
fund and the balance in the cash fund, as calculated pursuant to22
subsection (4) of this section, is less than, or is anticipated to be less than,23
the annual expenditure anticipated to be required for the purposes24
described in subsections (3)(a)(I), and
(3)(a)(V), AND (3)(a)(VI) of this25
section.26
(5.5) T
HE DEPARTMENT SHALL , SUBJECT TO ANNUAL27
HB25-1274
-25- APPROPRIATION, ANNUALLY EXPEND ONE MILLION DOLLARS FROM THE1
CASH FUND FOR THE PURPOSE DESCRIBED IN SUBSECTION (3)(a)(VI) OF2
THIS SECTION.3
SECTION 12. In Colorado Revised Statutes, 22-82.9-302,4
amend (2)(b)(I), (2)(b)(II)(D), and (2)(c) as follows:5
22-82.9-302. Local school food purchasing program - creation6
- rules. (2) (b) (I) The department shall select participating providers that7
served fewer than two million one hundred fifty thousand school lunches8
in the 2023-24 school year TWO YEARS PRIOR TO THE SCHOOL YEAR FOR9
WHICH THE PARTICIPATING PROVIDER IS APPLYING FOR REIMBURSEMENT10
PURSUANT TO THIS SECTION. The department shall create a form for11
participating providers to track and report the Colorado grown, raised, or12
processed products purchased.13
(II) The department shall give preference to applicants that:14
(D) Served fewer than one million two hundred fifty thousand15
school lunches in the 2023-24 school year count TWO YEARS PRIOR TO THE16
SCHOOL YEAR FOR WHICH THE PARTICIPATING PROVIDER IS APPLYING FOR17
REIMBURSEMENT PURSUANT TO THIS SECTION ; and18
(c) On or before August 1 of the year following the participating19
provider's application, the participating provider shall track and report to20
the department for the school year in which it applied, and for the21
2023-24 school year TWO YEARS PRIOR TO THE SCHOOL YEAR FOR WHICH22
THE PARTICIPATING PROVIDER IS APPLYING FOR REIMBURSEMENT23
PURSUANT TO THIS SECTION, the total amount of Colorado grown, raised,24
or processed products it purchased for student meals and the total number25
of lunches that it provided to students.26
SECTION 13. In Colorado Revised Statutes, 22-82.9-302,27
HB25-1274
-26- amend (2)(b)(I), (2)(b)(II)(D), and (2)(c); and add (2)(b)(I.5) and (3.5)1
as follows:2
22-82.9-302. Local school food purchasing program - creation3
- rules. (2) (b) (I) The department shall select participating providers that4
served fewer than two million one hundred fifty thousand A NUMBER OF5
school lunches
DETERMINED BY THE DEPARTMENT PURSUANT TO6
SUBSECTION (2)(b)(I.5) OF THIS SECTION in the 2023-24
school year TWO7
YEARS PRIOR TO THE SCHOOL YEAR FOR WHICH THE PARTICIPATING8
PROVIDER IS APPLYING FOR REIMBURSEMENT PURSUANT TO THIS SECTION .9
The department shall create a form for participating providers to track and10
report the Colorado grown, raised, or processed products purchased.11
(I.5) T
HE DEPARTMENT SHALL ONLY SELECT PARTICIPATING12
PROVIDERS THAT SERVED FEWER THAN TWO MILLION ONE HUNDRED FIFTY13
THOUSAND SCHOOL LUNCHES IN THE SCHOOL YEAR TWO YEARS PRIOR TO14
THE SCHOOL YEAR FOR WHICH A PARTICIPATING PROVIDER IS APPLYING15
FOR REIMBURSEMENT PURSUANT TO THIS SECTION , UNLESS THE16
DEPARTMENT DETERMINES THAT IT CAN AWARD REIMBURSEMENTS TO17
THOSE PARTICIPATING PROVIDERS OF AT LEAST FIVE CENTS FOR EVERY18
SCHOOL LUNCH THAT THE PARTICIPATING PROVIDER PREPARED IN THE19
SCHOOL YEAR TWO YEARS PRIOR TO THE SCHOOL YEAR FOR WHICH THE20
PARTICIPATING PROVIDER IS APPLYING FOR REIMBURSEMENT PURSUANT TO21
THIS SECTION OR A MINIMUM OF ONE THOUSAND DOLLARS , WHICHEVER IS22
GREATER, IN WHICH CASE THE DEPARTMENT MAY SELECT ANY23
PARTICIPATING PROVIDER FOR REIMBURSEMENT PURSUANT TO THIS24
SECTION.25
(II) The department shall give preference to applicants that:26
(D) Served fewer than one million two hundred fifty thousand27
HB25-1274
-27- school lunches in the 2023-24 school year count TWO YEARS PRIOR TO THE1
SCHOOL YEAR FOR WHICH THE PARTICIPATING PROVIDER IS APPLYING FOR2
REIMBURSEMENT PURSUANT TO THIS SECTION ; and3
(c) On or before August 1 of the year following the participating4
provider's application, the participating provider shall track and report to5
the department for the school year in which it applied, and for the6
2023-24 school year TWO YEARS PRIOR TO THE SCHOOL YEAR FOR WHICH7
THE PARTICIPATING PROVIDER IS APPLYING FOR REIMBURSEMENT8
PURSUANT TO THIS SECTION, the total amount of Colorado grown, raised,9
or processed products it purchased for student meals and the total number10
of lunches that it provided to students.11
(3.5) D
URING EACH OCTOBER AFTER OCTOBER 2024 IN WHICH THE12
DEPARTMENT REIMBURSES PROVIDERS PARTICIPATING IN THE PURCHASING13
PROGRAM, THE DEPARTMENT SHALL REIMBURSE PARTICIPATING14
PROVIDERS IN AN AMOUNT ESTABLISHED PURSUANT TO SECTION15
22-82.9-211 (3)(c)(I).16
SECTION 14. In Colorado Revised Statutes, 22-82.9-304,17
amend (1) introductory portion as follows:18
22-82.9-304. Evaluation - report. (1) On or before December 1,19
2025,
AND EACH DECEMBER 1 THEREAFTER, the department shall submit20
a report to the education committees of the house of representatives and21
the senate, the house of representatives agriculture, water, and natural22
resources committee, the senate agriculture and natural resources23
committee, or their successor committees, on the effect of the purchasing24
program on the amount
QUANTITY of Colorado grown, raised, or25
processed products purchased by participating providers, including:26
SECTION 15. In Colorado Revised Statutes, repeal 22-82.9-30627
HB25-1274
-28- as follows:1
22-82.9-306. Repeal of part. This part 3 is repealed, effective2
July 1, 2026.3
SECTION 16. In Colorado Revised Statutes, 39-22-104, amend4
(3)(p.5)(I) introductory portion and (3)(p.5)(II); and add (3)(p.5)(III) and5
(3)(p.7) as follows:6
39-22-104. Income tax imposed on individuals, estates, and7
trusts - single rate - report - tax preference performance statement8
- legislative declaration - definitions - repeal. (3) There shall be added9
to the federal taxable income: 10
(p.5) (I) For income tax years commencing on or after January 1,11
2023,
BUT BEFORE JANUARY 1, 2026, for taxpayers who claim itemized12
deductions as defined in section 63 (d) of the internal revenue code or the13
standard deduction as defined in section 63 (c) of the internal revenue14
code and who have federal adjusted gross income in the income tax year15
equal to or exceeding three hundred thousand dollars:16
(II) For the 2023-24 state fiscal year and state fiscal years17
thereafter, the general assembly shall annually appropriate an amount at18
least equal to the amount of revenue generated by the addition to federal19
taxable income described in subsection (3)(p.5)(I) of this section,20
calculated without regard to any temporary rate reduction pursuant to21
section 39-22-627, but not more than the amount required, to fully fund
22
the direct and indirect costs of implementing the healthy school meals for23
all program as provided in section 22-82.9-209. The provisions of TO THE24
HEALTHY SCHOOL MEALS FOR ALL PROGRAM CASH FUND CREATED IN25
SECTION 22-82.9-211. Subsection (3)(p.5)(I) of this section constitute26
CONSTITUTES a voter-approved revenue change, approved by the voters27
HB25-1274
-29- at the statewide election in November of 2022, and the revenue generated1
by this voter-approved revenue change may be collected, retained,2
appropriated, and spent without subsequent voter approval,3
notwithstanding any other limits in the state constitution or law. The4
addition to federal taxable income described in subsection (3)(p.5)(I) of5
this section does not apply for an income tax year that commences after6
the healthy school meals for all program, or any successor program, is7
repealed. Upon repeal of the healthy school meals for all program, or any8
successor program, the commissioner of education shall promptly notify9
the executive director in writing that the program is repealed.10
(III) T
HIS SUBSECTION (3)(p.5) IS REPEALED, EFFECTIVE11
D
ECEMBER 31, 2028.12
(p.7) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER13
J
ANUARY 1, 2026, FOR TAXPAYERS WHO CLAIM ITEMIZED DEDUCTIONS AS14
DEFINED IN SECTION 63 (d) OF THE INTERNAL REVENUE CODE OR THE15
STANDARD DEDUCTION AS DEFINED IN SECTION 63 (c) OF THE INTERNAL16
REVENUE CODE AND WHO HAVE A FEDERAL ADJUSTED GROSS INCOME IN17
THE INCOME TAX YEAR EQUAL TO OR EXCEEDING THREE HUNDRED18
THOUSAND DOLLARS:19
(A) F
OR A TAXPAYER WHO FILES A SINGLE RETURN , THE AMOUNT20
BY WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME21
UNDER SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE22
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION23
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS ONE THOUSAND24
DOLLARS; AND25
(B) F
OR TAXPAYERS WHO FILE A JOINT RETURN , THE AMOUNT BY26
WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME UNDER27
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-30- SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE1
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION2
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS TWO THOUSAND3
DOLLARS.4
(II) I
N ADDITION TO THE FUNDING APPROPRIATED IN SUBSECTION5
(3)(p.5)
OF THIS SECTION, FOR THE 2026-27 STATE FISCAL YEAR AND6
EVERY STATE FISCAL YEAR THEREAFTER , THE GENERAL ASSEMBLY SHALL7
ANNUALLY APPROPRIATE AN AMOUNT AT LEAST EQUAL TO THE AMOUNT8
OF REVENUE GENERATED BY THE ADDITION TO FEDERAL TAXABLE INCOME9
DESCRIBED IN THIS SUBSECTION (3)(p.7) TO THE HEALTHY SCHOOL MEALS10
FOR ALL PROGRAM CASH FUND CREATED IN SECTION 22-82.9-211. THE11
PROVISIONS OF THIS SUBSECTION (3)(p.7) CONSTITUTE A VOTER-APPROVED12
REVENUE CHANGE , APPROVED BY THE VOTERS AT THE STATEWIDE13
ELECTION IN NOVEMBER 2025, AND THE REVENUE GENERATED BY THIS14
VOTER-APPROVED REVENUE CHANGE MAY BE COLLECTED , RETAINED,15
APPROPRIATED, AND SPENT WITHOUT SUBSEQUENT VOTER APPROVAL ,16
NOTWITHSTANDING ANY OTHER LIMITS IN THE STATE CONSTITUTION OR17
LAW. THE ADDITION TO FEDERAL TAXABLE INCOME DESCRIBED IN THIS18
SUBSECTION (3)(p.7) DOES NOT APPLY FOR AN INCOME TAX YEAR THAT19
COMMENCES AFTER THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM , OR20
ANY SUCCESSOR PROGRAM , IS REPEALED. UPON REPEAL OF THE HEALTHY21
SCHOOL MEALS FOR ALL PROGRAM , OR ANY SUCCESSOR PROGRAM , THE22
COMMISSIONER OF EDUCATION SHALL PROMPTLY NOTIFY THE EXECUTIVE23
DIRECTOR IN WRITING THAT THE PROGRAM IS REPEALED .24
SECTION 17. In Colorado Revised Statutes, 39-22-104, amend25
(3)(p.5)(I) introductory portion and (3)(p.5)(II); and add (3)(p.5)(I.5) as26
follows:27
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trusts - single rate - report - tax preference performance statement2
- legislative declaration - definitions - repeal. (3) There shall be added3
to the federal taxable income:4
(p.5) (I) For income tax years commencing on or after January 1,5
2023,
BUT BEFORE JANUARY 1, 2026, for taxpayers who claim itemized6
deductions as defined in section 63 (d) of the internal revenue code or the7
standard deduction as defined in section 63 (c) of the internal revenue8
code and who have federal adjusted gross income in the income tax year9
equal to or exceeding three hundred thousand dollars:10
(I.5) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER11
J
ANUARY 1, 2026, FOR TAXPAYERS WHO CLAIM ITEMIZED DEDUCTIONS AS12
DEFINED IN SECTION 63 (d) OF THE INTERNAL REVENUE CODE OR THE13
STANDARD DEDUCTION AS DEFINED IN SECTION 63 (c) OF THE INTERNAL14
REVENUE CODE AND WHO HAVE A FEDERAL ADJUSTED GROSS INCOME IN15
THE INCOME TAX YEAR EQUAL TO OR EXCEEDING THREE HUNDRED16
THOUSAND DOLLARS:17
(A) F
OR A TAXPAYER WHO FILES A SINGLE RETURN , THE AMOUNT18
BY WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME19
UNDER SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE20
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION21
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS , AN AMOUNT THAT IS22
GREATER THAN TWELVE THOUSAND DOLLARS , IS THREE-QUARTERS OF THE23
AMOUNT DESCRIBED IN SUBSECTION (3)(p.5)(I.5)(B) OF THIS SECTION, AND24
THAT THE DEPARTMENT OF REVENUE DETERMINES THAT , IN COMBINATION25
WITH THE AMOUNT DESCRIBED IN SUBSECTION (3)(p.5)(I.5)(B) OF THIS26
SECTION, HAD IT BEEN USED INSTEAD OF THE ADDITION TO FEDERAL27
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WOULD HAVE REDUCED THE AMOUNT OF ADDITIONAL STATE INCOME TAX2
REVENUE FOR THE 2023-24 STATE FISCAL YEAR GENERATED BY THAT3
ADDITION TO ONE HUNDRED MILLION SEVEN HUNDRED TWENTY -SEVEN4
THOUSAND EIGHT HUNDRED TWENTY DOLLARS ; AND5
(B) F
OR TAXPAYERS WHO FILE A JOINT RETURN , THE AMOUNT BY6
WHICH THE ITEMIZED DEDUCTIONS DEDUCTED FROM GROSS INCOME UNDER7
SECTION 63 (a) OF THE INTERNAL REVENUE CODE EXCEED , OR THE8
STANDARD DEDUCTION DEDUCTED FROM GROSS INCOME UNDER SECTION9
63 (c)
OF THE INTERNAL REVENUE CODE EXCEEDS , AN AMOUNT THAT IS10
GREATER THAN SIXTEEN THOUSAND DOLLARS , IS ONE-THIRD GREATER11
THAN THE AMOUNT DESCRIBED IN SUBSECTION (3)(p.5)(I.5)(A) OF THIS12
SECTION, AND THAT THE DEPARTMENT OF REVENUE DETERMINES THAT , IN13
COMBINATION WITH THE AMOUNT DESCRIBED IN SUBSECTION14
(3)(p.5)(I.5)(A)
OF THIS SECTION, HAD IT BEEN USED INSTEAD OF THE15
ADDITION TO FEDERAL TAXABLE INCOME REQUIRED BY SUBSECTION16
(3)(p.5)(I)
OF THIS SECTION, WOULD HAVE REDUCED THE AMOUNT OF17
ADDITIONAL STATE INCOME TAX REVENUE FOR THE 2023-24 STATE FISCAL18
YEAR GENERATED BY THAT ADDITION TO ONE HUNDRED MILLION SEVEN19
HUNDRED TWENTY-SEVEN THOUSAND EIGHT HUNDRED TWENTY DOLLARS .20
(II) For the 2023-24 state fiscal year and state fiscal years21
thereafter, the general assembly shall annually appropriate an amount at22
least equal to the amount of revenue generated by the addition to federal23
taxable income described in subsection (3)(p.5)(I)
SUBSECTIONS24
(3)(p.5)(I)
AND (3)(p.5)(I.5) of this section, calculated without regard to25
any temporary rate reduction pursuant to section 39-22-627, but not more26
than the amount required, to fully fund the direct and indirect costs of27
HB25-1274
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section 22-82.9-209. The provisions of subsection (3)(p.5)(I)2
S
UBSECTIONS (3)(p.5)(I) AND (3)(p.5)(I.5) of this section constitute a3
voter-approved revenue change, approved by the voters at the statewide4
election in November of 2022, and the revenue generated by this5
voter-approved revenue change may be collected, retained, appropriated,6
and spent without subsequent voter approval, notwithstanding any other7
limits in the state constitution or law. The addition to federal taxable8
income described in subsection (3)(p.5)(I)
SUBSECTIONS (3)(p.5)(I) AND9
(3)(p.5)(I.5) of this section does not apply for an income tax year that10
commences after the healthy school meals for all program, or any11
successor program, is repealed. Upon repeal of the healthy school meals12
for all program, or any successor program, the commissioner of education13
shall promptly notify the executive director in writing that the program is14
repealed.15
SECTION 18. Effective date - applicability. (1) Sections 1116
and 12 of this act take effect only if the ballot issue described in section17
22-82.9-212 is approved by the people at the next statewide election and18
the ballot issue described in section 22-82.9-213 is rejected by the people19
at the next statewide election, in which case sections 11 and 12 take effect20
on the date of the official declaration of the vote thereon by the governor.21
(2) Section 17 of this act takes effect only if the ballot issue22
described in section 22-82.9-212 and the ballot issue described in section23
22-82.9-213 are rejected by the people at the next statewide election, in24
which case section 17 of this act takes effect on the date of the official25
declaration of the vote thereon by the governor.26
(3) Sections 14 and 15 of this act take effect only if one or both27
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described in section 22-82.9-213 are approved by the people at the next2
statewide election, in which case sections 14 and 15 of this act take effect3
on the date of the official declaration of the vote thereon by the governor.4
(4) Sections 4, 5, 6, 7, 8, 9, 10, 13, and 16 of this act take effect5
only if the ballot issue described in section 22-82.9-213 is approved by6
the people at the next statewide election, in which case sections 4, 5, 6,7
7, 8, 9, 10, 13, and 16 take effect on the date of the official declaration of8
the vote thereon by the governor.9
(5) Sections 1, 2, 3, 18, and 19 of this act take effect upon10
passage.11
SECTION 19. Safety clause. The general assembly finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety or for appropriations for14
the support and maintenance of the departments of the state and state15
institutions.16
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