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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0912.01 Jacob Bennington x2371 HOUSE BILL 26-1396
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING MODIFICATIONS TO THE DISASTER EMERGENCY FUND.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/.)
Joint Budget Committee. The bill makes the following changes
to the disaster emergency fund:
! Requires the office of state planning and budgeting (office)
to include in its quarterly reports to the joint budget
committee an identification of disasters that have been
closed out and the amount of unencumbered money that the
office has transferred back to its original source;
! Institutes a timeline for closing out a disaster based on the
HOUSE
3rd Reading Unamended
April 11, 2026
HOUSE
2nd Reading Unamended
April 9, 2026
HOUSE SPONSORSHIP
Brown and Taggart, Sirota,
SENATE SPONSORSHIP
Amabile and Kirkmeyer, Bridges
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.
type of disaster, 3 years for a federally declared disaster or
8 years for a state-only disaster; and
! Limits the annual maximum unencumbered balance of the
disaster emergency fund to $200,000,000 and directs the
office to transfer money in excess of that amount to the
general fund after August 12, 2026, and on June 30 each
year thereafter.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-33.5-703, add2
(2.5) and (9) as follows:3
24-33.5-703. Definitions.4
As used in this part 7, unless the context otherwise requires:5
(2.5) "CLOSE OUT" MEANS THE PROCESS BY WHICH:6
(a) THE DEPARTMENT OF PUBLIC SAFETY REPORTS TO THE OFFICE7
OF STATE PLANNING AND BUDGET THAT ALL APPLICABLE ADMINISTRATIVE8
ACTIONS AND ALL REQUIRED WORK TO RESPOND TO A SPECIFIC DISASTER9
ARE COMPLETE; AND10
(b) T HE OFFICE OF STATE PLANNING AND BUDGETING REMOVES11
THE SUBACCOUNT FOR A SPECIFIC DISASTER FROM THE DISASTER12
EMERGENCY FUND AND TRANSFERS ANY REMAINING BALANCE OF THE13
SUBACCOUNT BACK TO THE FUND THAT WAS THE ORIGINAL SOURCE OF THE14
MONEY.15
(9) "UNENCUMBERED" MEANS ANY AMOUNT OF MONEY THAT IS16
NOT RESERVED FOR RESPONSE TO A SPECIFIC DISASTER THROUGH AN17
EXECUTIVE ORDER DECLARED BY THE GOVERNOR.18
SECTION 2. In Colorado Revised Statutes, 24-33.5-706, amend19
(2)(a), (7)(a)(IV), and (7)(a)(V); and add (2)(c), (7)(a)(VI), and (9) as20
follows:21
24-33.5-706. Disaster emergency fund - established - financing22
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- legislative intent.1
(2) (a) A disaster emergency fund is hereby established. The fund2
consists of any money appropriated by the general assembly, money3
transferred pursuant to subsections (2.5) and SUBSECTION (4)(b) of this4
section, and money to reimburse expenditures from the fund that are5
transmitted to the state treasurer and credited to the fund. Money in the6
disaster emergency fund shall remain in the fund until expended or until7
transferred pursuant to subsection (2.5)(c), (2)(c), (4.3), (4.5), or (4.7) of8
this section or section 24-33.5-1228 (3)(c)(III).9
(c) T HE ANNUAL UNENCUMBERED BALANCE OF THE DISASTER10
EMERGENCY FUND SHALL NOT EXCEED TWO HUNDRED MILLION DOLLARS.11
AFTER AUGUST 12, 2026, AND ON JUNE 30 EACH YEAR THEREAFTER, THE12
OFFICE OF STATE PLANNING AND BUDGETING SHALL TRANSFER ANY13
UNENCUMBERED MONEY IN THE DISASTER EMERGENCY FUND IN EXCESS OF14
TWO HUNDRED MILLION DOLLARS TO THE GENERAL FUND.15
(7) (a) No later than September 20, 2020, the office of state16
planning and budgeting shall submit a report to the joint budget17
committee of the expenditures from the fund during the last twelve18
months. Notwithstanding section 24-1-136 (11)(a), no later than the19
twentieth day of every third month thereafter, the office shall submit a20
report to the joint budget committee of the expenditures from the fund21
since the last report. The office shall separately identify expenditures by22
disaster, if there is more than one to be included in the report, and, for23
each disaster, the office shall identify:24
(IV) Total expenditures by state agency; and25
(V) A breakdown of expenditures; AND26
(VI) DISASTERS THAT HAVE BEEN CLOSED OUT AND THE AMOUNT27
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OF UNENCUMBERED MONEY THAT THE OFFICE TRANSFERRED BACK TO THE1
FUND THAT WAS THE ORIGINAL SOURCE OF THE MONEY.2
(9) (a) F OR FEDERALLY DECLARED DISASTERS , WITHIN THREE3
YEARS OF THE LAST DATE THAT REVENUE INTO THE FUND OR4
EXPENDITURES FROM THE FUND ARE RECORDED FOR A DISASTER , THE5
DEPARTMENT OF PUBLIC SAFETY SHALL CLOSE OUT THE EMERGENCY.6
(b) FOR STATE-ONLY DISASTERS, WITHIN EIGHT YEARS OF THE LAST7
DATE THAT REVENUE INTO THE FUND OR EXPENDITURES FROM THE FUND8
ARE RECORDED FOR A DISASTER , THE DEPARTMENT OF PUBLIC SAFETY9
SHALL CLOSE OUT THE EMERGENCY.10
SECTION 3. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly (August13
12, 2026, if adjour nment sine die is on May 13, 2026); except that, if a14
referendum petition is filed pursuant to section 1 (3) of article V of the15
state constitution against this act or an item, section, or part of this act16
within such period, then the act, item, section, or part will not take effect17
unless approved by the people at the general election to be held in18
November 2026 and, in such case, will take effect on the date of the19
official declaration of the vote thereon by the governor.20
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