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HB26-1406 • 2026

Repeal Capital Construction Funding Requirements

Current law requires most state agencies and institutions of higher education that receive an appropriation for capital construction to set aside an amount of money equal to the recorded depreciation

Budget Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. E. Sirota, Rep. R. Taggart, Sen. J. Amabile, Sen. B. Kirkmeyer, Rep. K. Brown, Sen. J. Bridges, Rep. T. Story, Rep. A. Valdez
Last action
2026-06-01
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Repeal Capital Construction Funding Requirements

Current law requires most state agencies and institutions of higher education that receive an appropriation for capital construction to set aside an amount of money equal to the recorded depreciation of the capital asset that was acquired, repaired, improved, replaced, renovated, or constructed with the appropriation (annual depreciation-lease equivalent payment) to pay for the long-term maintenance costs of the capital asset.

What This Bill Does

  • Current law requires most state agencies and institutions of higher education that receive an appropriation for capital construction to set aside an amount of money equal to the recorded depreciation of the capital asset that was acquired, repaired, improved, replaced, renovated, or constructed with the appropriation (annual depreciation-lease equivalent payment) to pay for the long-term maintenance costs of the capital asset.
  • Currently, the money that state agencies or institutions of higher education set aside for maintenance costs is credited to the capitol complex renovation fund.
  • The act repeals the annual depreciation-lease equivalent payment requirement.
  • Currently, the department of personnel uses the money in the capitol complex renovation fund (fund) for capital construction needs for existing state-owned buildings in the capitol complex.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

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

L.003

SEN Appropriations

Passed [*]

Plain English: HB1406_L.003 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.

  • HB1406_L.003 SENATE COMMITTEE OF REFERENCE AMENDMENT Committee on Appropriations.
  • HB26-1406 be amended as follows: 1 Amend reengrossed bill, page 13, line 3, strike "section 8" and substitute 2 "section 7".
  • 3 Page 13, line 5, strike "section 8" and substitute "section 7".
  • ** *** ** *** ** LLS: Stephanie Schrab x4330
L.001

Third Reading

Passed

Plain English: HB1406_L.001 Amendment No.

  • HB1406_L.001 Amendment No.
  • ___________ HB26-1406 HOUSE FLOOR AMENDMENT Third Reading BY REPRESENTATIVE Sirota 1 Amend engrossed bill, page 3, strike lines 7 through 16.
  • 2 Renumber succeeding sections accordingly.
  • ** *** ** *** ** LLS: Stephanie Schrab x4330

Bill History

  1. 2026-06-01 Governor

    Governor Signed

  2. 2026-05-29 Governor

    Sent to the Governor

  3. 2026-05-29 Senate

    Signed by the President of the Senate

  4. 2026-05-29 House

    Signed by the Speaker of the House

  5. 2026-04-17 House

    House Considered Senate Amendments - Result was to Concur - Repass

  6. 2026-04-16 Senate

    Senate Third Reading Passed - No Amendments

  7. 2026-04-15 Senate

    Senate Second Reading Special Order - Passed - No Amendments

  8. 2026-04-15 Senate

    Senate Second Reading Special Order - Passed with Amendments - Committee

  9. 2026-04-14 Senate

    Senate Committee on Appropriations Refer Amended - Consent Calendar to Senate Committee of the Whole

  10. 2026-04-13 Senate

    Introduced In Senate - Assigned to Appropriations

  11. 2026-04-11 House

    House Third Reading Passed with Amendments - Floor

  12. 2026-04-10 House

    House Third Reading Laid Over Daily - No Amendments

  13. 2026-04-09 House

    House Second Reading Special Order - Passed - No Amendments

  14. 2026-04-08 House

    House Second Reading Special Order - Laid Over Daily - No Amendments

  15. 2026-04-06 House

    House Committee on Appropriations Refer Unamended to House Committee of the Whole

  16. 2026-04-02 House

    Introduced In House - Assigned to Appropriations

Official Summary Text

Current law requires most state agencies and institutions of higher education that receive an appropriation for capital construction to set aside an amount of money equal to the recorded depreciation of the capital asset that was acquired, repaired, improved, replaced, renovated, or constructed with the appropriation (annual depreciation-lease equivalent payment) to pay for the long-term maintenance costs of the capital asset. Currently, the money that state agencies or institutions of higher education set aside for maintenance costs is credited to the capitol complex renovation fund. The act repeals the annual depreciation-lease equivalent payment requirement.
Currently, the department of personnel uses the money in the capitol complex renovation fund (fund) for capital construction needs for existing state-owned buildings in the capitol complex. The act requires the state treasurer to transfer $15,263,000 from the fund to the general fund on June 30, 2026. The act also requires the state treasurer to transfer the remaining balance of the fund on June 30, 2027, to the general fund and then repeals the fund. In addition, the act repeals a reporting requirement in connection with the use of the money in the fund.
The act also repeals the capitol complex master plan implementation fund, including its ongoing transfers to the fund.
The act decreases multiple cash fund and general fund appropriations made in the annual general appropriation act for the 2026-27 state fiscal year to various state departments for annual depreciation-lease equivalent payments.
(Note: This summary applies to this bill as enacted.)

Current Bill Text

Read the full stored bill text
HOUSE BILL 26-1406
BY REPRESENTATIVE(S) Sirota and Taggart, Brown, Story, Valdez;
also SENATOR(S) Amabile and Kirkmeyer, Bridges.
CONCERNING THE REPEAL OF CERTAIN PROVISIONS REGARDING THE FUNDING
OF CAPITAL CONSTRUCTION, AND, IN CONNECTION THEREWITH,
REDUCING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, repeal 24-30-1310.
SECTION 2. In Colorado Revised Statutes, 24-30-1313, amend (1)
and (7); repeal (6); and add (6.8) and (6.9) as follows:
24-30-1313. Capitol complex renovation fund -created-repeal.
(1) The capitol complex renovation fund, referred to in this section
as the "fund", is created in the state treasury. The fund consists of money
ct edited to the fund ptmmant to section 24-3 0-1310 (2), money trans fen ed
to the fund pmsuant to sections 24-75-307 (2.5) and (4), and any other
money that the general assembly may appropriate or transfer to the fund.
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.
(6) The state t1easu1e1 shall trnnsfe1 all unexpended and
unencumbe1ed money in the fttnd on June 30, 2030, to the capital
constrnction fund c1eated in section 24-75-302.
(6.8) ON JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER
FIFTEEN MILLION TWO HUNDRED SIXTY-THREE THOUSAND DOLLARS FROM
THE FUND TO THE GENERAL FUND.
(6.9) THE STATE TREASURER SHALL TRANSFER THE UNEXPENDED
AND UNENCUMBERED BALANCE OF THE FUND ON JUNE 30, 2027, TO THE
GENERAL FUND.
(7) This section is repealed, effective July 1, 2031 JULY 1, 2027.
SECTION 3. In Colorado Revised Statutes, repeal 24-30-1314.
SECTION 4. In Colorado Revised Statutes, 24-75-302, amend
(l)(a) as follows:
24-75-302. Capital construction fund -capital assessment fees -
calculation - information technology capital account - repeal.
(1) (a) The capital construction fund is created. The fund consists of
money transferred to the fund by the general assembly. and money ct edited
to the fttnd pmsuant to section 24-30-1310. Money in the capital
construction fund may be appropriated for capital construction, capital
renewal, controlled maintenance, or state highway reconstruction, repair,
and maintenance projects as requested pursuant to section 43-1-113 (2.5);
except that any money transferred to the capital construction fund for state
highway reconstruction, repair, and maintenance projects may only be
appropriated for such projects. The appropriation for projects must be set
forth in a single line item as a total sum. For state fiscal years commencing
on or before July 1, 2024, all unappropriated balances in the fund at the
close of any fiscal year must remain in the fund and may not revert to the
general fund. For state fiscal years commencing on or after July 1, 2025, the
state treasurer shall transfer any unappropriated balances in the fund or any
otherwise unexpended and unencumbered money remaining in the fund at
the end of a fiscal year to the general fund. All unexpended or
unencumbered money from a capital construction fund appropriation to a
state agency or state institution of higher education reverts, for state fiscal
PAGE 2-HOUSE BILL 26-1406
years commencing on or before July 1, 2024, to the capital construction
fund, and, for state fiscal years commencing on or after July 1, 2025, to the
general fund at the end of the period for which the money is appropriated.
Except as provided in sections 2-3-1304 (l)(a.5) and 24-30-1303.7 (1), no
portion of the unexpended balance of a state agency's or state institution of
higher education's capital construction fund appropriation may be used by
the state agency or the state institution of higher education for any
additional projects that are beyond the scope or design of the original
project without further approval by the capital development committee of
such additional project. Anticipation warrants or checks may be issued
against the revenues of the fund as provided by law. Except as provided in
subsections ( 1 )( c) and (7) of this section, all interest earned from the
investment of money in the capital construction fund must remain in the
fund and become a part thereof.
SECTION 5. In Colorado Revised Statutes, 24-75-302.5, amend
(2)(a) as follows:
24-75-302.5. Controlled maintenance - trust fund - legislative
declaration.
(2) (a) There is hereby created the controlled maintenance trust fund,
the principal of which shall consist of any general fund revenues
appropriated or transferred thereto by law moneys credited thereto pursuant
to section 24-30-1310, and proceeds of leveraged leasing agreements
deposited thereto pursuant to section 24-82-1003 (3 ). For the 1996-97 fiscal
year and fiscal years thereafter, the principal of the trust fund may constitute
all or some portion of the state emergency reserve established pursuant to
section 24-77-104 and may be expended in any given fiscal year as provided
in said section. The principal of the trust fund shall not be expended or
appropriated for any purpose other than use as part of the state emergency
reserve. The state treasurer may in the state treasurer's discretion deposit,
redeposit, invest, and reinvest moneys MONEY accrued or accruing to the
controlled maintenance trust fund in the types of deposits and investments
authorized in sections 24-36-109, 24-36-112, and 24-36-113.
SECTION 6. In Colorado Revised Statutes, repeal 24-75-307.
SECTION 7. Appropriation - adjustments to 2026 long bill.
(1) Except as provided in subsection (2) of this section, to implement this
PAGE 3-HOUSE BILL 26-1406
act, appropriations made in the annual general appropriation act for the
2026-27 state fiscal year to the department of agriculture are adjusted as
follows:
(a) The cash funds appropriation from the agricultural management
fund created in section 35-1-106.9 (1 ), C.R.S., for annual depreciation-lease
equivalent payment is decreased by $203,337;
(b) The cash funds appropriation from the inspection and consumer
services cash fund created in section 35-1-106.5 (1), C.R.S., for annual
depreciation-lease equivalent payment is decreased by $10,000; and
( c) The cash funds appropriation from various sources of cash funds
for annual depreciation-lease equivalent payment is decreased by $248,280.
(2) (a) If the cash funds appropriation from the agricultural
management fund created in section 35-1-106.9 (1), C.R.S., made in the
annual general appropriation act for the 2026-27 state fiscal year to the
department of agriculture for annual depreciation-lease equivalent payment
is less than the amount of the adjustment required in subsection (l)(a) of
this section, the cash funds appropriation from the agricultural management
fund created in section 35-1-106.9 (1), C.R.S., is decreased to $0.
(b) If the cash funds appropriation from the inspection and consumer
services cash fund created in section 35-1-106.5 (1), C.R.S., made in the
annual general appropriation act for the 2026-27 state fiscal year to the
department of agriculture for annual depreciation-lease equivalent payment
is less than the amount of the adjustment required in subsection ( 1 )(b) of
this section, the cash funds appropriation from the inspection and consumer
services cash fund created in section 35-1-106.5 (1), C.R.S., is decreased to
$0.
( c) If the cash funds appropriation from various sources of cash
funds made in the annual general appropriation act for the 2026-27 state
fiscal year to the department of agriculture for annual depreciation-lease
equivalent payment is less than the amount of the adjustment required in
subsection (l)(c) of this section, the cash funds appropriation from various
sources of cash funds is decreased to $0.
(d) If the annual general appropriation act for the 2026-27 state
PAGE 4-HOUSE BILL 26-1406
fiscal year does not include an appropriation to the department of
agriculture for annual depreciation-lease equivalent payment, then
subsection ( 1) of this section does not require a reduction of an
appropriation in the 2026-27 state fiscal year.
(3) Except as provided in subsection ( 4) of this section, to
implement this act, the general fund appropriation made in the annual
general appropriation act for the 2026-27 state fiscal year to the department
of corrections for annual depreciation-lease equivalent payments is
decreased by $659,571.
(4) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
corrections for annual depreciation-lease equivalent payments is an amount
less than the amount of the adjustment required in subsection (3) of this
section, the general fund appropriation is decreased to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of
corrections for annual depreciation-lease equivalent payments, then
subsection (3) of this section does not require a reduction of an
appropriation in the annual general appropriation act for the 2026-27 state
fiscal year.
( 5) Except as provided in subsection ( 6) of this section, to
implement this act, the general fund appropriation made in the annual
general appropriation act for the 2026-27 state fiscal year to the department
of higher education for annual depreciation-lease equivalent payment is
decreased by $13,100,234.
(6) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
higher education for annual depreciation-lease equivalent payment is an
amount less than the amount of the adjustment required in subsection (5) of
this section, the general fund appropriation is decreased to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of higher
education for annual depreciation-lease equivalent payment, then subsection
(5) of this section does not require a reduction of an appropriation in the
PAGE 5-HOUSE BILL 26-1406
annual general appropriation act for the 2026-27 state fiscal year.
(7) Except as provided in subsection (8) of this section, to
implement this act, the general fund appropriation made in the annual
general appropriation act for the 2026-27 state fiscal year to the department
of human services for annual depreciation-lease equivalent payment is
decreased by $7,781,784.
(8) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
human services for annual depreciation-lease equivalent payment is an
amount less than the amount of the adjustment required in subsection (7) of
this section, the general fund appropriation is decreased to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of human
services for annual depreciation-lease equivalent payment, then subsection
(7) of this section does not require a reduction of an appropriation in the
annual general appropriation act for the 2026-27 state fiscal year.
(9) Except as provided in subsection (10) of this section, to
implement this act, the general fund appropriation made in the annual
general appropriation act for the 2026-27 state fiscal year to the department
of military and veterans affairs for annual depreciation-lease equivalent
payment is decreased by $87,994.
(10) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
military and veterans affairs for annual depreciation-lease equivalent
payment is an amount less than the amount of the adjustment required in
subsection (9) of this section, the general fund appropriation is decreased
to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of military
and veterans affairs for annual depreciation-lease equivalent payment, then
subsection (9) of this section does not require a reduction of an
appropriation in the annual general appropriation act for the 2026-27 state
fiscal year.
PAGE 6-H OUSE BILL 26-1406
(11) Except as provided in subsection (12) of this section, to
implement this act, appropriations made in the annual general appropriation
act for the 2026-27 state fiscal year to the department of natural resources
are adjusted as follows:
(a) The general fund appropriation for annual depreciation-lease
equivalent payment is decreased by $651,475; and
(b) The cash funds appropriation from the parks and outdoor
recreation cash fund created in section 33-10-111 (1), C.R.S., for annual
depreciation-lease equivalent payment is decreased by $143,912.
(12) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
natural resources for annual depreciation-lease equivalent payment is an
amount less than the amount of the adjustment required in subsection
(1 l)(a) of this section, the general fund appropriation is decreased to $0.
(b) If the cash funds appropriation from the parks and outdoor
recreation cash fund created in section 33-10-111 (1), C.R.S., made in the
annual general appropriation act for the 2026-27 state fiscal year to the
department of natural resources for annual depreciation-lease equivalent
payment is an amount less than the amount of the adjustment required in
subsection ( 11 )(b) of this section, the cash funds appropriation from the
parks and outdoor recreation cash fund created in section 33-10-111 (1),
C.R.S., is decreased to $0.
(c) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of natural
resources for annual depreciation-lease equivalent payment, then subsection
( 11) of this section does not require a reduction of an appropriation in the
annual general appropriation act for the 2026-27 state fiscal year.
( 13) Except as provided in subsection ( 14) of this section, to
implement this act, the general fund appropriation made in the annual
general appropriation act for the 2026-27 state fiscal year to the department
of personnel for annual depreciation-lease equivalent payment is decreased
by $2,600,060.
( 14) (a) If the general fund appropriation made in the annual general
PAGE 7-HOUSE BILL 26-1406
appropriation act for the 2026-27 state fiscal year to the department of
personnel for annual depreciation-lease equivalent payment is an amount
less than the amount of the adjustment required in subsection ( 13) of this
section, the general fund appropriation is decreased to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of personnel
for annual depreciation-lease equivalent payment, then subsection (13) of
this section does not require a reduction of an appropriation in the annual
general appropriation act for the 2026-27 state fiscal year.
( 15) Except as provided in subsection ( 16) of this section, to
implement this act, appropriations made in the annual general appropriation
act for the 2026-27 state fiscal year to the department of public health and
environment are adjusted as follows:
(a) The general fund appropriation for annual depreciation-lease
equivalent payments is decreased by $380,068; and
(b) The cash funds appropriation from the newborn screening and
genetic counseling cash funds created in section 25-4-1006 (1), C.R.S., for
annual depreciation-lease equivalent payments is decreased by $103,558.
(16) (a) If the general fund appropriation made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
public health and environment for annual depreciation-lease equivalent
payments is an amount less than the amount of the adjustment required in
subsection ( 15)( a) of this section, the general fund appropriation is
decreased to $0.
(b) If the cash funds appropriation from the newborn screening and
genetic counseling cash funds created in section 25-4-1006 (1), C.R.S.,
made in the annual general appropriation act for the 2026-27 state fiscal
year to the department of public health and environment for annual
depreciation-lease equivalent payments is an amount less than the amount
of the adjustment required in subsection (15)(b) of this section, the cash
funds appropriation from the newborn screening and genetic counseling
cash funds created in section 25-4-1006 (1), C.R.S., is decreased to $0.
(c) If the annual general appropriation act for the 2026-27 state
PAGE 8-HOUSE BILL 26-1406
fiscal year does not include an appropriation to the department of public
health and environment for annual depreciation-lease equivalent payments,
then subsection ( 15) of this section does not require a reduction of an
appropriation in the annual general appropriation act for the 2026-27 state
fiscal year.
( 17) Except as provided in subsection ( 18) of this section, to
implement this act, the cash funds appropriation from the highway users tax
fund created in section 43-4-201 (l)(a), C.R.S., and appropriated pursuant
to section 43-4-201 (3)(a)(l)(C), C.R.S., made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
public safety for annual depreciation-lease equivalent payment is decreased
by $67,700.
(18) (a) If the cash funds appropriation from the highway users tax
fund created in section 43-4-201 (l)(a), C.R.S., and appropriated pursuant
to section 43-4-201 (3)(a)(l)(C), C.R.S., made in the annual general
appropriation act for the 2026-27 state fiscal year to the department of
public safety for annual depreciation-lease equivalent payment is an amount
less than the amount of the adjustment required in subsection (17) of this
section, the cash funds appropriation from the highway users tax fund
created in section 43-4-201 (l)(a), C.R.S., and appropriated pursuant to
section 43-4-201 (3)(a)(l)(C), C.R.S., is decreased to $0.
(b) If the annual general appropriation act for the 2026-27 state
fiscal year does not include an appropriation to the department of public
safety for annual depreciation-lease equivalent payment, then subsection
( 1 7) of this section does not require a reduction of an appropriation in the
annual general appropriation act for the 2026-27 state fiscal year.
SECTION 8. Effective date. This act takes effect upon passage;
except that section 7 of this act takes effect only if the annual general
appropriation act for the 2026-27 state fiscal year becomes law, in which
case section 7 takes effect upon the effective date of this act or of the annual
general appropriation act for state fiscal year 2026-27, whichever is later.
SECTION 9. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 9-H OUSE BILL 26-1406
the support and maintenance of the departments of the state and state
institutions.
J~
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 C1Y\ YY) rucl ~ v1 J-~ I ~:t, 2°2..~ a.~ j l •. OG~
(Datel and Time)
Jare
GO
PAGE IO-HOUSE BILL 26-1406
OF COLORADO