Repeal Bond Assistance Program Fund Transfer

Plain English Breakdown

The official source confirms the effective date for repeal is December 1, 2027, but does not specify an exact time of day.

Repeal of the Bond Assistance Program

This law ends a program that helped small businesses pay for surety bonds and moves any leftover money from that program to the state's general fund.

What This Bill Does

• Transfers all unspent and uncommitted money in the bond assistance program cash fund to the general fund on June 30, 2026.
• Requires the department of personnel to use only committed funds for existing obligations after the transfer date.
• Repeals the bond assistance program within the state procurement equity program effective December 1, 2027.

Who It Names or Affects

• The Colorado Department of Personnel
• Historically underutilized small businesses that previously received help with surety bonds

Terms To Know

Bond assistance program cash fund

A specific account holding money used to pay for bond costs for eligible businesses.

Surety bond

A financial guarantee required by the state before a business can bid on certain contracts.

Limits and Unknowns

• The law does not specify how much money remains in the fund at the time of transfer.
• The text does not list which specific businesses will lose access to this help after December 1, 2027.

Official Summary Text

Under existing law, the department of personnel administers the 'state procurement equity program', which includes a bond assistance program to help historically underutilized businesses that are small businesses offset the costs of obtaining a surety bond that is required for a solicitation for a state procurement opportunity. The bond assistance program is funded through the bond assistance program cash fund.
The act transfers the unexpended and unencumbered balance of the bond assistance program cash fund to the general fund on June 30, 2026. The department must use any encumbered balance that remains in the fund after the transfer only to fulfill the obligations encumbering the balance of the fund. The act repeals the bond assistance program, effective December 1, 2027.
(Note: This summary applies to this bill as enacted.)

Current Bill Text

HOUSE BILL 26-1388
BY REPRESENTATIVE(S) Sirota and Taggart, Brown;
also SENATOR(S) Amabile and Bridges, Kirkmeyer.
CONCERNING THE REPEAL OF THE BOND ASSISTANCE PROGRAM
ADMINISTERED BY THE DEPARTMENT OF PERSONNEL, AND, IN
CONNECTION THEREWITH, TRANSFERRING THE BALANCE OF THE BOND
ASSISTANCE PROGRAM CASH FUND TO THE GENERAL FUND.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-103-1104, amend
(2)(b )(III); and add (2)(b )(IV) and (2)(b )(V) as follows:
24-103-1104. State procurement equity program -established -
goal - preliminary implementation maximization of contracting
opportunities -expansion of historically underutilized business registry
-real-time solicitation assistance help desk -bond assistance program
-cash fund - report - repeal.
(2) As implementation of the program, the department shall:
(b) (III) (A) On July 1, 2022, the state treasurer shall transfer two
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
million dollars from the general fund to the bond assistance program cash
fund.
(B) ON JUNE30,2026, THE STATE TREASURER SHALL TRANSFER THE
UNEXPENDED AND UNENCUMBERED BALANCE OF THE BOND ASSISTANCE
PROGRAM CASH FUND TO THE GENERAL FUND.
(IV) THE DEPARTMENT MUST USE ANY ENCUMBERED BALANCE THAT
REMAINS IN THE BOND ASSISTANCE CASH FUND AFTER THE TRANSFER UNDER
SUBSECTION (2)(b)(IIl)(B) OF THIS SECTION ONLY TO FULFILL THE
OBLIGATIONS ENCUMBERING THE BALANCE OF THE FUND.
(V) THIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE DECEMBER 1,
2027.
SECTION 2. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 2-HOUSE BILL 26-1388
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
Ju~
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~~
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED t?'-' VY\ onol111 ~ ~ \~➔ ?.PU <2L+ I / ·, OQ~VV'
(DJte and Time)
PAGE 3-HOUSE BILL 26-1388
TE OF COLORADO
\,