HB 1416 — Transfers to General Fund & Colorado Economic Development Fund

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0901.01This Jedbill Franklinhas x5484been HOUSEprepared BILLfor 26-1416the HOUSEsignatures SPONSORSHIPof NguyenandBrown,the Taggart,WinterT.,Camacho,StewartK.,Soper,Woog,Richardson,appropriate Carter,legislative Titone,officers Lindsay, Velasco, Caldwell, Clifford, Jackson, Rutinel, Woodrow SENATE SPONSORSHIP Amabile and Carson,the Roberts,Governor. Pelton R., Coleman d d e 6 a 2 T n 2 N g 3 E i y House Committees Senate Committees S a a Appropriations Appropriations e M d d d A BILL FOR AN ACT e 6 E a 0 C ONCERNING TRANSFERS FROM THE UNIVERSAL HIGH SCHOOL A U , N g 1 SCHOLARSHIP CASH FUND .

STo ddetermine awhether ethe MGovernor Rhas Billsigned Summarythe 2bill (Note:or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisHOUSE summaryBILL applies26-1416 toBY thisREPRESENTATIVE(S) billNguyen as introduced and doesBrown, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillTaggart, dWinter passesT., thirdCamacho, readingStewart inK., theSoper, houseWoog, ofRichardson, introduction,Carter, aTitone, billLindsay, summaryVelasco, thatCaldwell, eClifford, mJackson, 2Rutinel, appliesWoodrow; to the reengrossed version of this bill will be available at S n 2 http://leg.colorado.gov.) U g 9 O i y H e M The bill requires the state treasurer to transfer $1.2 million from R r the universal high school scholarship cash fund (fund) to the Colorado 3 economicdevelopmentfundand$2.3millionfromthefundtothegeneral fund on June 30, 2026.

galso dSENATOR(S) 6Amabile Eand eCarson, 0Roberts, SPelton RR., ,Coleman. O n 7 H 2 a Shading denotes HOUSE amendment.

DoubleC underliningONCERNINGTRANSFERSFROMTHEUNIVERSALHIGHSCHOOLSCHOLARSHIP denotesCASH SENATEFUND amendment..

eBe Mit Capitalenacted lettersby orthe boldGeneral &Assembly italicof numbers indicate new material to be added to existing law.n Dashes through the wordsState orof numbersColorado: indicate deletions from existing law.

eSECTION A1. Be it enacted by the General Assembly of the State of Colorado:

SECTION1.Legislative declaration.

Legislativedeclaration.(1)(1) ThegeneralassemblyThe general assembly finds, determines, and declares that:

(a) Colorado's economy is experiencing a period of heightened uncertaintyuncertaintydrivenbydynamictradepolicies,uncertainfundingconditions, driven by dynamic trade policies, uncertain funding conditions, and evolving global economic pressures;

(b) TheseThesefactorshavecontributedtoincreasedcostsforbusinesses, factors have contributed to increased costs for businesses, disruptions in supply chains, and declining business confidence across multiple sectors.

(c)________ WithCapital moreletters thanor 99%bold of& Coloradoitalic businessesnumbers classifiedindicate asnew smallmaterial businesses,added these impacts are felt across communities statewide, particularly in rural areas that are increasingly vulnerable to economicexisting disruption.law;

Keydashes industriesthrough affectedwords includeor outdoornumbers gearindicate manufacturing,deletions construction,retail,bioscience,technology,advancedmanufacturing,andfrom energy.Thesepressuresthreatenbusinesscontinuity,workforcestability,existing law and localsuch economicmaterial ecosystems.is not part of the act.

(d)(c) SmallWith businessesmore arethan a99% critical component of Colorado'sColorado economyandcommunity.TheColoradoofficeofeconomicdevelopmentbusinesses andclassified internationalas trade operates the small businessbusinesses,theseimpactsarefeltacrosscommunitiesstatewide,particularly development center program.Throughtheoffice'ssupport,theprogramgeneratedanaverage of $2.15 in taxrural revenueareas forthat everyare $1.00increasingly investedvulnerable in the program since 2020, with this amount increasing to aneconomic averagedisruption. of $5.02 in tax revenue fromlong-termclients.Duringthesametime,everydollarinvestedinthe programresultedinapproximately$25.26 innewcapitalraisedforsmall businesses from external sources, such as federal, state, debt, and equity financing.

-2-Key 1416industriesaffectedincludeoutdoorgearmanufacturing,construction,retail, (e)bioscience, (I)technology, Theadvanced Coloradomanufacturing, office of economic development and internationalenergy. trade, through its economic development commission, has a demonstrated history of strategically deploying state resources to support economic growth, retain jobs, and respond to economic disruptions.

PursuantThese topressures partthreaten 1business ofcontinuity, articleworkforce 46stability, ofand titlelocal 24, the economic developmentcommissionhaseffectivelyleverageditsstrategicfundandecosystems. related programs to support major statewide economic development initiatives and preserve community businesses.

(II)(d) InSmall responsebusinesses toare prior economic disruptions, including the COVID-19 pandemic, the state established a robustcritical portfoliocomponent of smallColorado's businesseconomy support programs, including direct grants and technicalcommunity. assistance.

The Colorado office of economic development and international trade operates the small business development center program.

Through the office's support, the program generated an average of $2.15intaxrevenueforevery$1.00investedintheprogramsince 2020, with this amount increasing to an average of $5.02 in tax revenue from long-term clients.

During the same time, every dollar invested in the program resulted in approximately $25.26 in new capital raised for small businesses from external sources, such as federal, state, debt, and equity financing.

(e) (I) The Colorado office of economic development and international trade, through its economic development commission, has a demonstrated history of strategically deploying state resources to support economic growth, retain jobs, and respond to economic disruptions.

Pursuant to part 1 of article 46 of title 24, the economic development commission has effectively leveraged its strategic fund and related programstosupportmajorstatewideeconomicdevelopmentinitiativesand preserve community businesses.

(II) In response to prior economic disruptions, including the COVID-19 pandemic, the state established a robust portfolio of small businesssupportprograms,includingdirectgrantsandtechnicalassistance.

(III) ThesmallbusinessdevelopmentcenternetworkexperiencedThe small business development center network experienced delays in federal funding throughout calendar year 2025 and has yet to receivereceiveits2026 its 2026 allocation, placing its operations, particularlyparticularlyruralservice ruralcenters, servicecenters,atrisk.Thesedisruptionsunderscoretheneedforflexible, state-level tools to respond to funding instability at therisk. federal level.

(2)These (a)disruptions Theunderscore generalthe assemblyneed thereforefor findsflexible, thatstate-level ittools is necessary and appropriate to adequately respond to thefunding currentinstability economicat environment by providing the economicfederal developmentlevel. commission the ability to reallocate previously appropriated but unused funds to nimbly respondtoeconomicconditionsandmitigateimpactstosmallbusinesses without new employees, including the strategic use of previously appropriated funds associated with the universalhighschoolscholarship -3- 1416 program, created in Senate Bill 23-205, passed in 2023, which experiencedimplementationchallengesduetofederalfreeapplicationfor student aid rollout issues.

(b)PAGE By2-HOUSE reallocatingBILL a26-1416 portion(2) of(a) theseThe previouslygeneral appropriatedassemblytherefore funds,finds thethat stateit canis bothnecessaryand returnappropriate excessto dollarsadequatelyrespond to the generalcurrent fundeconomic forenvironment budgetby balancingproviding purposesthe andeconomic providedevelopment targeted,commission immediatethe supportability to reallocate previously appropriated but unused funds to nimbly respond to economic conditions and mitigate impacts to small businesses facingwithout economicnew hardship;employees, including the strategic use of previously appropriated funds associated with the universal high school scholarship program, created in Senate Bill 23-205, passed in 2023, which experienced implementation challenges due to federal free application for student aid rollout issues.

(b) Byreallocatingaportionofthesepreviouslyappropriatedfunds, the state can both return excess dollars to the general fund for budget balancing purposes and provide targeted, immediate support to small businesses facing economic hardship;

(3)(3)(b.7) (b.7) ON JUNE 30,30,2026, 2026,THESTATETREASURERSHALLTRANSFER THE STATE TREASURER SHALL TRANSFER NINE HUNDRED THOUSAND DOLLARS FROM THE CASH FUND TO THE COLORADOC ECONOMICOLORADOECONOMICDEVELOPMENTFUND DEVELOPMENT,CREATEDINSECTION FUND24-46-105 ,CREATED(1)(a). IN SECTION 24-46-105(1)(a).

(b.8) OON JUNE 30,2026,THE30, 2026,THE STATE TREASURER SHALLTRANSFERSHALL TWOMILLIONSIXHUNDREDTHOUSANDDOLLARSFROMTHECASHFUNDTOTRANSFER TWO MILLION SIX HUNDRED THOUSAND DOLLARS FROM THE CASH FUND TO THE GENERAL FUND .

The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsforPAGE 3-HOUSE BILL 26-1416 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.

-4-____________________________ 1416____________________________ Julie McCluskie James Rashad Coleman, Sr.

SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 4-HOUSE BILL 26-1416