Colorado § 10-16-1206 - Health insurance affordability cash fund - creation.

§ 10-16-1206. Health insurance affordability cash fund - creation.

(1) There is created in the state treasury the health insurance affordability cash fund. The fund consists of:

(a) The fees collected from carriers pursuant to section 10-16-1205 (1)(a)(I);

(b) The special assessments collected from hospitals pursuant to section 10-16-1205 (1)(a)(II);

(c) Repealed.

(d) The proceeds collected from revenue bonds issued pursuant to section 10-16-1213 and any earnings on the investment of bond proceeds invested pursuant to section 10-16-1213 (2);

(e) Money that may be allocated to the fund pursuant to section 10-16-1308;

(f) All interest and income derived from the deposit and investment of money in the fund;

(g) The federal share of the medical assistance payments received pursuant to section 25.5-4-503 (2);

(h) Gifts, grants, or donations received from private or public sources; and

(i) Any other money that may be appropriated or transferred to the fund.

(1.5) (a) The fund also consists of one hundred million dollars from the following sources, which the enterprise shall allocate in accordance with section 10-16-1205 (2)(e):

(I) Up to one hundred million dollars from tax credit sale proceeds credited to the fund pursuant to section 24-36-406; and

(II) (A) If the total amount of tax credit sale proceeds available for deposit in the fund is less than one hundred million dollars, an amount determined and transferred, in accordance with subsection (1.5)(a)(II)(B) of this section, from the general fund to the fund.

(B) The state treasurer shall determine the amount of the transfer from the general fund to the fund by calculating the difference between one hundred million dollars and the amount of tax credit sale proceeds credited to the fund pursuant to section 24-36-406 and, within ten days after making the determination, shall transfer that amount from the general fund to the fund.

(b) This subsection (1.5) takes effect on January 1, 2026, only if the condition specified in section 10-16-1209 (1) occurs.

(2) (a) Money in the fund shall not be transferred to any other fund, except as provided in section 10-16-1205 (2), and shall not be used for any purpose other than the purposes specified in this part 12.

(b) Before allocating any money in the fund for programs funded by the enterprise pursuant to this part 12, the enterprise shall first pay for bond obligations on revenue bonds issued pursuant to section 10-16-1213.

(3) All money in the fund is continuously available and appropriated to the enterprise to use in accordance with this part 12.

(4) The fund is part of the enterprise established pursuant to section 10-16-1204 (1).

(5) Repealed.

(6) By June 30, 2026, the state treasurer shall transfer forty million dollars from the marijuana tax cash fund created in section 39-28.8-501 to the fund.

Source: L. 2020: Entire part added, (SB 20-215), ch. 201, p. 994, § 1, effective June 30. L. 2021: (1)(d) and (1)(e) amended and (1)(f) added, (HB 21-1232), ch. 241, p. 1293, § 3, effective June 16. L. 2022: (1)(e) and (1)(f) amended and (1)(g) added, (HB 22-1289), ch. 399, p. 2835, § 3, effective June 7. L. 2024: IP(1) and (1)(c) amended, (HB 24-1470), ch. 491, p. 3446, § 1, effective June 7. L. 2025: (1)(f) and (1)(g) amended and (1)(h) added, (HB 25-1309), ch. 233, p. 1105, § 2, effective May 23. L. 2025, 1st Ex. Sess.: (1)(g) and (1)(h) amended and (1)(i) and (5) added, (SB 25B-005), ch. 4, p. 12, § 1, effective August 28; (1)(g) and (1)(h) amended and (1)(i) and (1.5) added, (HB 25B-1006), ch. 10, p. 42, § 3, effective August 28 (see editor's note). L. 2026: (1)(d) and (2) amended and (6) added, (SB 26-178), ch. 298, p. 1646, § 4, effective June 2.

Editor's note: (1) Subsection (1)(c)(II) provided for the repeal of subsection (1)(c), effective July 1, 2025. (See L. 2024, p. 3446.)

(2) Section 10-16-1209 (1) provides that subsection (1.5) is effective if, by December 31, 2025, the United States congress does not enact and the president does not sign federal legislation that extends, recreates, or otherwise reinstates the enhanced premium tax credit for the 2026 plan year. The commissioner of insurance notified the revisor of statutes in writing on June 8, 2026, that the condition specified occurred. As a result, subsection (1.5) became effective on January 1, 2026. For more information, see HB 25B-1006 (L. 2025, 1st Ex. Sess., p. 45).

(3) For the amendments in SB 25B-005 in effect from August 26, 2025, to July 1, 2026, see SB 25B-005 (L. 2025, 1st Ex. Sess., p. 12).

(4) Subsection (5)(b) provided for the repeal of subsection (5), effective July 1, 2026. (See L. 2025, 1st Ex. Sess., p. 12.)

Cross references: For the legislative declaration in HB 22-1289, see section 1 of chapter 399, Session Laws of Colorado 2022.