HB26-1274 • 2026

State Agency Payments to Grant Recipients

Currently, when a state agency awards a grant to a nonprofit organization (grantee), the grantee is generally required to access the grant award by applying for the reimbursement of costs incurred in

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. L. García, Rep. M. Lindsay, Sen. K. Wallace, Sen. M. Weissman
Last action: 2026-03-19
Official status: House Committee on Finance Refer Amended to Appropriations
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

State Agency Payments to Grant Recipients

This bill allows state agencies in Colorado to give up to 25% of grant money to nonprofit organizations right away when they sign a contract, instead of waiting for reimbursement.

What This Bill Does

Allows state agencies to pay up to 25% of the total value of grants to nonprofits immediately after signing or renewing contracts.
Requires nonprofits to use this upfront payment only on expenses related to the grant project.
Does not stop state agencies from using waiver processes to give more than 25% if allowed by federal rules.
Permits existing state agencies that already pay a portion of grants upfront to continue doing so.

Who It Names or Affects

State agencies in Colorado
Nonprofit organizations receiving grants

Terms To Know

Grant: Money given by the government or other organization for a specific purpose, like helping with community projects.
Waiver process: A way to get permission to do something that is usually not allowed under normal rules.

Limits and Unknowns

The bill does not specify what happens if a referendum petition is filed against it.
It's unclear how this change will affect the overall budget or operations of state agencies.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

L.001

HOU Finance

Passed [*]

Plain English: The amendment adds a requirement that grants funded solely with state money must include specific language in the grant agreement.

Adds new text to require that when a state agency awards a grant using only state funds, it must specify this condition in the grant agreement.

The amendment does not provide details on what specific language should be used or how this will affect existing grants.

Bill History

2026-03-19 House
House Committee on Finance Refer Amended to Appropriations
2026-02-19 House
Introduced In House - Assigned to Finance

Official Summary Text

Currently, when a state agency awards a grant to a nonprofit organization (grantee), the grantee is generally required to access the grant award by applying for the reimbursement of costs incurred in completing the activity for which the state agency awarded the grant.
The bill allows a state agency, in contracting with any grantee, to dispense up to 25% of the total value of the payments under the contract to the grantee immediately upon executing or renewing the contract. A grantee may only expend money from such a payment on expenses that the grantee incurs in connection with the relevant contract.
The bill does not prevent a state agency, in contracting with a grantee, from:
Using a waiver process available through state or federal rules to dispense a percentage of the total value of the payments under a contract to a grantee immediately upon the execution or renewal of the contact; or
For a state agency that, as of the effective date of the bill, already dispenses a percentage of the total value of the payments under a contract to a grantee immediately upon executing or renewing the contract, continuing to dispense the payments as it did before the effective date of the bill.
A grantee that is paid a percentage of the total value of the payments under a contract with a state agency immediately upon executing or renewing the contract is required to comply with all of the reporting requirements specified in the contract.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0685.02 Nicole Myers x4326 HOUSE BILL 26-1274
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING AUTHORIZATION FOR A STATE AGENCY TO AWARD A101
PERCENTAGE OF THE TOTAL VALUE OF A CONTRACT TO A102
NONPROFIT GRANTEE OF A GRANT PROGRAM OF THE AGENCY103
UPON THE EXECUTION OR RENEWAL OF THE CONTRACT.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 w ill be av ailable at
http://leg.colorado.gov.)
Currently, when a state agency awards a grant to a nonprofit
organization (grantee), the grantee is generally required to access the
grant award by applying for the reimbursement of costs incurred in
HOUSE SPONSORSHIP
Lindsay and Garcia,
SENATE SPONSORSHIP
Wallace and Weissman,
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.
completing the activity for which the state agency awarded the grant.
The bill allows a state agency, in contracting with any grantee, to
dispense up to 25% of the total value of the payments under the contract
to the grantee immediately upon executing or renewing the contract. A
grantee may only expend money from such a payment on expenses that
the grantee incurs in connection with the relevant contract.
The bill does not prevent a state agency, in contracting with a
grantee, from:
! Using a waiver process available through state or federal
rules to dispense a percentage of the total value of the
payments under a contract to a grantee immediately upon
the execution or renewal of the contact; or
! For a state agency that, as of the effective date of the bill,
already dispenses a percentage of the total value of the
payments under a contract to a grantee immediately upon
executing or renewing the contract, continuing to dispense
the payments as it did before the effective date of the bill.
A grantee that is paid a percentage of the total value of the
payments under a contract with a state agency immediately upon
executing or renewing the contract is required to comply with all of the
reporting requirements specified in the contract.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 3 to article2
17 of title 24 as follows:3
PART 34
PAYMENTS TO NONPROFIT GRANTEES5
24-17-301. Definitions.6
AS USED IN THIS PART 3, UNLESS THE CONTEXT OTHERWISE7
REQUIRES:8
(1) "GRANTEE" MEANS A PERSON THAT:9
(a) IS AWARDED A GRANT PURSUANT TO A GRANT PROGRAM THAT10
A STATE AGENCY MANAGES OR OVERSEES;11
(b) PURSUANT TO THE CONDITIONS OF THE AWARDED GRANT, IS A12
PARTY TO A CONTRACT WITH A STATE AGENCY;13
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(c) IS A NONPROFIT ORGANIZATION AND HAS SUBMITTED WRITTEN1
PROOF OF SUCH CLASSIFICATION TO THE APPLICABLE STATE AGENCY; AND2
(d) S ATISFIES ANY CRITERIA ESTABLISHED BY THE APPLICABLE3
STATE AGENCY FOR THE PURPOSE OF IMPLEMENTING THIS PART 3.4
(2) "N ONPROFIT ORGANIZATION " MEANS A CHARITABLE5
ORGANIZATION, AS DEFINED IN SECTION 39-26-102 (2.5).6
(3) "S TATE AGENCY " MEANS ANY DEPARTMENT , COMMISSION ,7
COUNCIL, BOARD , BUREAU , COMMITTEE , INSTITUTION OF HIGHER8
EDUCATION, AGENCY, OR OTHER GOVERNMENTAL UNIT OF THE EXECUTIVE,9
LEGISLATIVE, OR JUDICIAL BRANCH OF STATE GOVERNMENT , INCLUDING10
THE OFFICE OF THE GOVERNOR.11
24-17-302. Dispensation of payments under contracts with12
nonprofit grantees.13
(1) (a) N OTWITHSTANDING ANY PROVISION OF LAW TO THE14
CONTRARY, A STATE AGENCY, IN CONTRACTING WITH A GRANTEE FOR THE15
PROVISION OF ANY SERVICE FOR THE PURPOSES OF THE STATE AGENCY ,16
MAY DISPENSE UP TO TWENTY-FIVE PERCENT OF THE TOTAL VALUE OF THE17
PAYMENTS UNDER THE CONTRACT TO THE GRANTEE IMMEDIATELY UPON18
EXECUTING OR RENEWING THE CONTRACT . A STATE AGENCY MAY USE19
EXISTING INFRASTRUCTURE OR DEVELOP NEW INFRASTRUCTURE TO20
DISPENSE A PAYMENT PURSUANT TO THIS SUBSECTION (1).21
(b) A GRANTEE MAY EXPEND MONEY FROM A PAYMENT PURSUANT22
TO THIS SUBSECTION (1) ONLY ON EXPENSES THAT THE GRANTEE INCURS23
IN CONNECTION WITH THE CONTRACT FOR WHICH THE PAYMENT IS MADE.24
(2) (a) NOTHING IN THIS SECTION PREVENTS A STATE AGENCY, IN25
CONTRACTING WITH A GRANTEE AS DESCRIBED IN SUBSECTION (1) OF THIS26
SECTION, FROM USING A WAIVER PROCESS AVAILABLE THROUGH FISCAL27
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RULES ADOPTED BY THE STATE CONTROLLER OR RULES ADOPTED BY A1
FEDERAL GOVERNMENTAL ENTITY TO DISPENSE A PERCENTAGE OF THE2
TOTAL VALUE OF THE PAYMENTS UNDER THE CONTRACT TO THE GRANTEE3
IMMEDIATELY UPON EXECUTING OR RENEWING THE CONTRACT. 4
(b) IF THE STATE CONTROLLER DENIES A STATE AGENCY'S REQUEST5
TO USE A WAIVER FOR THE PURPOSES SPECIFIED IN SUBSECTION (2)(a) OF6
THIS SECTION , THE STATE CONTROLLER SHALL PROVIDE THE STATE7
AGENCY WITH A WRITTEN EXPLANAT ION REGARDING WHY THE STATE8
CONTROLLER DENIED THE WAIVER. THE STATE AGENCY SHALL SHARE THE9
WRITTEN EXPL ANATION OF THE DENIAL OF THE WAIVER WITH THE10
GRANTEE.11
(3) NOTHING IN THIS SECTION PREVENTS A STATE AGENCY THAT,12
AS OF THE EFFECTIVE DATE OF THIS SECTION , ALREADY DISPENSES A13
PERCENTAGE OF THE TOTAL VALUE OF THE PAYMENTS UNDER A CONTRACT14
TO A GRANTEE IMMEDIATELY UPON THE EXECUTION OR RENEWAL OF THE15
CONTRACT, FROM CONTINUING TO DISPENSE THE PAYMENTS IN THE SAME16
MANNER THAT THE AGENCY DISPENSED THE PAYMENTS BEFORE THE17
EFFECTIVE DATE OF THIS SECTION.18
(4) A GRANTEE THAT IS PAID A PERCENTAGE OF THE TOTAL VALUE19
OF THE PAYMENTS UNDER A CONTRACT WITH A STATE AGENCY20
IMMEDIATELY UPON EXECUTING OR RENEWING THE CONTRACT IS21
REQUIRED TO COMPLY WITH ALL OF THE REPORTING REQUIREMENTS22
SPECIFIED IN THE CONTRACT.23
SECTION 2. Act subject to petition - effective date. This act24
takes effect at 12:01 a.m. on the day following the expiration of the25
ninety-day period after final adjournment of the general assembly (August26
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a27
HB26-1274-4-
referendum petition is filed pursuant to section 1 (3) of article V of the1
state constitution against this act or an item, section, or part of this act2
within such period, then the act, item, section, or part will not take effect3
unless approved by the people at the general election to be held in4
November 2026 and, in such case, will take effect on the date of the5
official declaration of the vote thereon by the governor.6
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