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HB26-1292 • 2026

Scholarship Granting Organizations

If the state voluntarily elects to participate in a federal program that provides a tax credit for a qualified contribution to a scholarship granting organization, the bill requires the state to inclu

Education Taxes
Passed Legislature

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

Sponsor
Rep. L. Goldstein, Sen. C. Kipp, Sen. J. Marchman
Last action
2026-02-23
Official status
Introduced In House - Assigned to Education
Effective date
Not listed

Plain English Breakdown

The bill summary provided does not include details about specific enforcement mechanisms or penalties, which limits the scope of what can be included in the explanation.

Scholarship Granting Organizations

This bill requires Colorado to include eligible scholarship granting organizations on its federal list if it chooses to participate in a federal tax credit program for contributions to these organizations, and sets rules for schools receiving funds from such organizations.

What This Bill Does

  • Requires the state to add all eligible scholarship granting organizations to its list provided to the federal government if Colorado decides to join a federal tax credit program.
  • Forbids participating schools from discriminating against students based on various factors, including disability and race.
  • Requires participating schools to follow laws about students with disabilities and publish non-discrimination policies.
  • Allows injured parties or scholarship granting organizations to sue schools that break these rules for an injunction.
  • Gives the State Board of Education power to suspend a school's eligibility to receive money from scholarship granting organizations if it violates requirements.

Who It Names or Affects

  • The state government, which must include eligible scholarship granting organizations on its federal list.
  • Schools that enroll students whose education expenses are paid by scholarship granting organizations.
  • Scholarship granting organizations providing funds to schools for student education expenses.

Terms To Know

scholarship granting organization
An organization that uses public or tax-favored funding to distribute scholarships for students' education-related expenses.
tax-favored funding
A mechanism under federal tax law where contributions, distributions, or expenditures result in a tax benefit for the donor or recipient.

Limits and Unknowns

  • The bill only applies if Colorado chooses to participate in the federal program.
  • It does not specify what happens if the state decides not to join the federal program.
  • Details about enforcement and penalties are limited, focusing mainly on court actions and suspension of eligibility.

Bill History

  1. 2026-02-23 House

    Introduced In House - Assigned to Education

Official Summary Text

If the state voluntarily elects to participate in a federal program that provides a tax credit for a qualified contribution to a scholarship granting organization, the bill requires the state to include all eligible scholarship granting organizations on its list identifying scholarship granting organizations to the federal government.
If a school enrolls a student whose education-related expenses are paid, in whole or in part, by a scholarship granting organization, the bill requires the school to comply with nondiscrimination requirements and laws concerning students with disabilities.
If the school that is subject to these requirements violates a requirement, the school is subject to an injunction and may have its eligibility to receive money for a student whose education-related expenses are paid by a scholarship granting organization suspended.
(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. 26-0798.02 Jacob Baus x2173 HOUSE BILL 26-1292
House Committees Senate Committees
Education
A BILL FOR AN ACT
CONCERNING REQUIREMENTS RELATED TO A FEDERAL TAX PROGRAM101
INVOLVING SCHOLARSHIP GRANTING ORGANIZATIONS, AND, IN102
CONNECTION THEREWITH, ESTABLISHING REQUIREMENTS FOR103
A SCHOOL THAT RECEIVES FUNDS FROM A SCHOLARSHIP104
GRANTING ORGANIZATION.105
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.)
If the state voluntarily elects to participate in a federal program
that provides a tax credit for a qualified contribution to a scholarship
HOUSE SPONSORSHIP
Goldstein,
SENATE SPONSORSHIP
Kipp and Marchman,
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.
granting organization, the bill requires the state to include all eligible
scholarship granting organizations on its list identifying scholarship
granting organizations to the federal government.
If a school enrolls a student whose education-related expenses are
paid, in whole or in part, by a scholarship granting organization, the bill
requires the school to comply with nondiscrimination requirements and
laws concerning students with disabilities.
If the school that is subject to these requirements violates a
requirement, the school is subject to an injunction and may have its
eligibility to receive money for a student whose education-related
expenses are paid by a scholarship granting organization suspended.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 2.5 to title2
22 as follows:3
ARTICLE 2.54
Schools Receiving Funds from5
Scholarship Granting Organizations6
22-2.5-101. Definitions.7
AS USED IN THIS ARTICLE 2.5, UNLESS THE CONTEXT OTHERWISE8
REQUIRES:9
(1) "PARENT" MEANS A BIOLOGICAL OR ADOPTIVE PARENT, LEGAL10
GUARDIAN, OR ANY PERSON HAVING LEGAL OR PHYSICAL CUSTODY OF A11
CHILD.12
(2) "PARTICIPATING SCHOOL" MEANS A SCHOOL THAT ENROLLS A13
STUDENT WHOSE EDUCATION-RELATED EXPENSES ARE PAID, IN WHOLE OR14
IN PART, BY A SCHOLARSHIP GRANTING ORGANIZATION.15
(3) "S CHOLARSHIP GRANTING ORGANIZATION " MEANS AN16
ORGANIZATION THAT USES PUBLIC FUNDING OR TAX-FAVORED FUNDING TO17
DISTRIBUTE SCHOLARSHIPS FOR A STUDENT 'S EDUCATION -RELATED18
EXPENSES.19
HB26-1292-2-
(4) "SCHOOL" MEANS A PUBLIC OR NONPUBLIC SCHOOL.1
(5) "S TATE BOARD " MEANS THE STATE BOARD OF EDUCATION2
CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE3
STATE CONSTITUTION.4
(6) "TAX-FAVORED FUNDING" MEANS ANY MECHANISM, INCLUDING5
A PROGRAM , ACCOUNT , CREDIT , DEDUCTION , DEFERRAL , OR OTHER6
ARRANGEMENT UNDER FEDERAL TAX LAW , UNDER WHICH A7
CONTRIBUTION, DISTRIBUTION, OR EXPENDITURE WAS USED TO PAY FOR OR8
REIMBURSE EDUCATION -RELATED EXPENSES , THAT RESULTS IN A TAX9
BENEFIT FOR THE DONOR, CONTRIBUTOR, STUDENT, STUDENT'S PARENT, OR10
OTHER TAXPAYER.11
22-2.5-102. State opt-in requirements for federal program.12
IF THE STATE VOLUNTARILY ELECTS TO PARTICIPATE IN THE13
FEDERAL PROGRAM THAT ALLOWS TAX -FAVORED F UNDING FOR A14
CONTRIBUTION TO A SCHOLARSHIP GRANTING ORGANIZATION PURSUANT15
TO THE FEDERAL "H.R. 1 OF THE 119TH CONGRESS (2025-2026), PUB.L.16
119-21", AND ITS IMPLEMENTING REGULATIONS AND GUIDANCE, THEN THE17
STATE SHALL INCLUDE ALL SCHOLARSHIP GRANTING ORGANIZATIONS THAT18
SATISFY THE REQUIREMENTS OF THE FEDERAL "H.R. 1 OF THE 119TH19
CONGRESS (2025-2026), PUB.L. 119-21", AND ITS IMPLEMENTING20
REGULATIONS AND GUIDANCE , IN THE LIST OF SCHOLARSHIP GRANTING21
ORGANIZATIONS THAT IT PROVIDES TO THE SECRETARY OF THE TREASURY.22
22-2.5-103. Nondiscrimination.23
(1) (a) A PARTICIPATING SCHOOL SHALL NOT DISCRIMINATE ON THE24
BASIS OF ANY STUDENT 'S, STUDENT 'S PARENT 'S, OR STUDENT 'S FAMILY25
MEMBER'S DISABILITY, SPECIAL EDUCATION STATUS , RACE , ETHNICITY ,26
RELIGION, CREED, COLOR, SEX, SEXUAL ORIENTATION, GENDER IDENTITY,27
HB26-1292-3-
GENDER EXPRESSION , FAMILY COMPOSITION , AGE , NATIONAL ORIGIN ,1
ANCESTRY, LANGUAGE PROFICIENCY, OR SOCIOECONOMIC STATUS.2
(b) THE PROHIBITION DESCRIBED IN THIS SUBSECTION (1) APPLIES3
TO ALL CONDUCT BY A PARTICIPATING SCHOOL, INCLUDING ADMISSIONS,4
ENROLLMENT, ACADEMIC PERFORMANCE, ACCESS TO OR PARTICIPATION IN5
EDUCATIONAL SERVICES, AND RETENTION.6
(2) A PARTICIPATING SCHOOL SHALL PUBLISH THE PROHIBITION7
DESCRIBED IN SUBSECTION (1) OF THIS SECTION ON ITS PUBLIC -FACING8
WEBSITE, ON ITS APPLICATION FOR ENROLLMENT , AND IN ANY9
ENROLLMENT MATERIALS.10
(3) (a) F OR ANY STUDENT , A PARTICIPATING SCHOOL SHALL11
COMPLY WITH STATE AND FEDERAL LAWS CONCERNING STUDENTS WITH12
DISABILITIES, INCLUDING:13
(I) SECTION 504 OF THE FEDERAL "REHABILITATION ACT OF 1973",14
29 U.S.C. SEC . 701 ET SEQ ., AS AMENDED , AND ITS IMPLEMENTING15
REGULATIONS;16
(II) TITLE II OF THE FEDERAL "AMERICANS WITH DISABILITIES ACT17
OF 1990", AS AMENDED, AND ITS IMPLEMENTING REGULATIONS; 18
(III) THE FEDERAL "INDIVIDUALS WITH DISABILITIES EDUCATION19
ACT", 20 U.S.C. SEC. 1400 ET SEQ., AS AMENDED, AND ITS IMPLEMENTING20
REGULATIONS; AND21
(IV) T HE "EXCEPTIONAL CHILDREN'S EDUCATIONAL ACT",22
ARTICLE 20 OF THIS TITLE 22.23
(b) A PARTICIPATING SCHOOL SHALL NOT CHARGE ADDITIONAL24
TUITION OR FEES TO A STUDENT WHO REQUIRES ACCOMMODATIONS OR25
SERVICES PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION.26
(4) NOTWITHSTANDING A REQUIREMENT IN SUBSECTION (1) OR (3)27
HB26-1292-4-
OF THIS SECTION , THIS SECTION DOES NOT PROHIBIT A PARTICIPATING1
SCHOOL THAT IS A NONPUBLIC SCHOOL FROM:2
(a) M AINTAINING ITS RELIGIOUS MISSION , CHARACTER ,3
GOVERNANCE, OR INSTRUCTIONAL PHILOSOPHY , OR FROM MAKING4
EMPLOYMENT DECISIONS CONSISTENT WITH CONSTITUTIONAL5
PROTECTIONS; OR6
(b) OFFERING RELIGIOUS INSTRUCTION OR WORSHIP.7
22-2.5-104. Oversight.8
(1) IF A PARTICIPATING SCHOOL VIOLATES A REQUIREMENT OF THIS9
ARTICLE 2.5:10
(a) A N INJURED PARTY , OR A SCHOLARSHIP GRANTING11
ORGANIZATION THAT DISTRIBUTED MONEY TO THE SCHOOL, MAY FILE AN12
ACTION IN A COURT OF COMPETENT JURISDICTION SEEKING INJUNCTIVE13
RELIEF THAT COMPELS THE SCHOOL TO COMPLY WITH THIS ARTICLE 2.5;14
AND15
(b) THE STATE BOARD , UPON FINDING THAT THE PARTICIPATING16
SCHOOL VIOLATED A REQUIREMENT OF THIS ARTICLE 2.5, MAY SUSPEND17
THE SCHOOL 'S ELIGIBILITY TO RECEIVE MONEY FOR A STUDENT WHOSE18
EDUCATION-RELATED EXPENSES ARE PAID , IN WHOLE OR IN PART , BY A19
SCHOLARSHIP GRANTING ORGANIZATION, FOR A PERIOD NOT TO EXCEED20
FIVE YEARS.21
SECTION 2. Act subject to petition - effective date. This act22
takes effect at 12:01 a.m. on the day following the expiration of the23
ninety-day period after final adjournment of the general assembly (August24
12, 2026, if adjournment sine die is on May 13, 2026); ex cept that, if a25
referendum petition is filed pursuant to section 1 (3) of article V of the26
state constitution against this act or an item, section, or part of this act27
HB26-1292-5-
within such period, then the act, item, section, or part will not take effect1
unless approved by the people at the general election to be held in2
November 2026 and, in such case, will take effect on the date of the3
official declaration of the vote thereon by the governor.4
HB26-1292-6-