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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0901.01 Jed Franklin x5484 HOUSE BILL 26-1416
House Committees Senate Committees
Appropriations
A BILL FOR AN ACT
CONCERNING TRANSFERS FROM THE UNIVERSAL HIGH SCHOOL101
SCHOLARSHIP CASH FUND.102
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.)
The bill requires the state treasurer to transfer $1.2 million from
the universal high school scholarship cash fund (fund) to the Colorado
economic development fund and $2.3 million from the fund to the general
fund on June 30, 2026.
HOUSE SPONSORSHIP
Nguyen and Brown, Taggart, Winter T., Camacho, Stewart K., Soper, Woog, Richardson,
Carter, Titone, Lindsay, Velasco
SENATE SPONSORSHIP
Amabile and Carson, Roberts, Pelton R.
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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds, determines, and declares that: 3
(a) Colorado's economy is experiencing a period of heightened4
uncertainty driven by dynamic trade policies, uncertain funding5
conditions, and evolving global economic pressures;6
(b) These factors have contributed to increased costs for7
businesses, disruptions in supply chains, and declining business8
confidence across multiple sectors. This has also led to slowing job9
growth, rising consumer debt, and weak economic confidence.10
(c) With more than 99% of Colorado businesses classified as11
small businesses, these impacts are felt across communities statewide,12
particularly in rural areas that are increasingly vulnerable to economic13
disruption. Key industries affected include outdoor gear manufacturing,14
construction, retail, bioscience, technology, advanced manufacturing, and15
energy. These pressures threaten business continuity, workforce stability,16
and local economic ecosystems.17
(d) Small businesses are a critical component of Colorado's18
economy and community. The Colorado office of economic development19
and international trade operates the small business development center20
program. Through the office's support, the program generated an average21
of $2.15 in tax revenue for every $1.00 invested in the program since22
2020, with this amount increasing to an average of $5.02 in tax revenue23
from long-term clients. During the same time, every dollar invested in the24
program resulted in approximately $25.26 in new capital raised for small25
businesses from external sources, such as federal, state, debt, and equity26
financing. 27
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(e) (I) The Colorado office of economic development and1
international trade, through its economic development commission, has2
a demonstrated history of strategically deploying state resources to3
support economic growth, retain jobs, and respond to economic4
disruptions. Pursuant to part 1 of article 46 of title 24, the economic5
development commission has effectively leveraged its strategic fund and6
related programs to support major statewide economic development7
initiatives and preserve community businesses.8
(II) In response to prior economic disruptions, including the9
COVID-19 pandemic, the state established a robust portfolio of small10
business support programs, including direct grants and technical11
assistance. Some prior programs of this type included rural theater12
rehabilitation, the community business preservation program, an13
expansion of the rural jump-start program, and small business14
development center support.15
(III) The small business development center network experienced16
delays in federal funding throughout calendar year 2025 and has yet to17
receive its 2 026 allo cation, placing its operations, particularly rural18
service centers, at risk. These disruptions underscore the need for flexible,19
state-level tools to respond to funding instability at the federal level.20
(2) (a) The general assembly therefore finds that it is necessary21
and appropriate to adequately respond to the current economic22
environment by providing the economic development commission the23
ability to reallocate previously appropriated but unused funds to nimbly24
respond to economic conditions and mitigate impacts to small businesses25
without new employees, including the strategic use of previously26
appropriated funds associated with the universal high school scholarship27
HB26-1416-3-
program, created in Senate Bill 23-205, passed in 2023, which1
experienced implementation challenges due to federal free application for2
student aid rollout issues.3
(b) By reallocating a portion of these previously appropriated4
funds, the state can both return excess dollars to the general fund for5
budget balancing purposes and provide targeted, immediate support to6
small businesses facing economic hardship; and7
(c) Enabling the reallocation of previously appropriated funds to8
support small business resilience is a necessary and prudent response to9
current economic conditions and is in the best interests of the state of10
Colorado.11
SECTION 2. In Colorado Revised Statutes, 24-48.5-502, add12
(3)(b.7) and (3)(b.8) as follows:13
24-48.5-502. Universal high school scholarship program -14
established - administration - cash fund - eligibility - transfers.15
(3) (b.7) O N JUNE 30, 2026, THE STATE TREASURER SHALL16
TRANSFER ONE MILLION TWO HUNDRED THOUSAND DOLLARS FROM THE17
CASH FUND TO THE COLORADO ECONOMIC DEVELOPMENT FUND, CREATED18
IN SECTION 24-46-105 (1)(a).19
(b.8) ON JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER20
TWO MILLION THREE HUNDRED THOUSAND DOLLARS FROM THE CASH FUND21
TO THE GENERAL FUND.22
SECTION 3. Safety clause. The general assembly finds,23
determines, and declares that this act is necessary for the immediate24
preservation of the public peace, health, or safety or for appropriations for25
the support and maintenance of the departments of the state and state26
institutions.27
HB26-1416-4-