Colorado § 22-82.9-211 - Healthy school meals for all program cash fund - creation - uses - reporting requirements - legislative declaration - definitions.

§ 22-82.9-211. Healthy school meals for all program cash fund - creation - uses - reporting requirements - legislative declaration - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) Repealed.

(a.5) "Account" means the healthy school meals for all program fund account created in subsection (2)(b) of this section.

(b) "Healthy school meals for all program revenue" means:

(I) For tax years commencing before January 1, 2026, the revenue generated by the addition to federal taxable income in section 39-22-104 (3)(p.5), which revenue is a voter approved revenue change; and

(II) For tax years commencing on or after January 1, 2026, the revenue generated by the addition to federal taxable income in section 39-22-104 (3)(p.7), which revenue is a voter-approved revenue change.

(c) "Reserve calculation" means a calculation that determines the amount expended by the department for the purposes described in subsections (3)(a)(II), (3)(a)(III), (3)(a)(IV), (3)(a)(VI), (3)(a)(VII), (3)(a)(VIII), and (3)(a.5) of this section in accordance with subsections (3)(c) to (3)(g) of this section. The reserve calculation shall independently be computed for subsections (3)(c) to (3)(g) of this section by legislative council, in consultation with the department, and based on the relevant projections in the March economic and revenue forecast prepared by legislative council staff. The computation of the reserve calculation for each of subsections (3)(c) to (3)(g) of this section shall result in a percentage equal to the anticipated balance in the fund as of the beginning of the fiscal year plus any additional money that will be deposited in or transferred to the fund over the course of the fiscal year minus the estimated amount of money expended by the department for the purposes described in subsections (3)(a) and (3)(a.5) of this section in accordance with the subsection of this section for which the reserve calculation is computed divided by the estimated amount expended by the department for the purposes described in subsections (3)(a)(I) and (3)(a)(V) of this section in accordance with the subsection of this section for which the reserve calculation is computed.

(d) "State education fund healthy school meals for all revenue" means the amount of additional tax revenue deposited in the state education fund as a result of limiting, for income tax years commencing on or after January 1, 2026, the amount of deductions that taxpayers who claim itemized deductions as defined in section 63 (d) of the internal revenue code or the standard deduction as defined in section 63 (c) of the internal revenue code and who have a federal adjusted gross income in the income tax year equal to or greater than three hundred thousand dollars may claim to the following:

(I) For a taxpayer who files a single return, the amount by which the itemized deductions deducted from gross income under section 63 (a) of the internal revenue code exceed, or the standard deduction deducted from gross income under section 63 (c) of the internal revenue code exceeds one thousand dollars, rather than twelve thousand dollars; and

(II) For taxpayers who file a joint return, the amount by which the itemized deductions deducted from gross income under section 63 (a) of the internal revenue code exceed, or the standard deduction deducted from gross income under section 63 (c) of the internal revenue code exceeds, two thousand dollars, rather than sixteen thousand dollars.

(2) (a) The healthy school meals for all program fund is created in the state treasury. The fund consists of healthy school meals for all program revenue deposited in the cash fund in accordance with subsection (4)(a) of this section and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.

(b) The healthy school meals for all program fund account is created in the fund. The account consists of money transferred by the treasurer from the state education fund in accordance with subsection (4.5) of this section and any other money that the general assembly may appropriate or transfer to the fund. The state treasurer shall credit all interest and income derived from the deposit and investment of money in the account to the account.

(3) (a) Subject to annual appropriation by the general assembly, money may be expended from the fund that is not in the account for the following purposes:

(I) Providing reimbursements to a participating school food authority for offering eligible meals without charge pursuant to section 22-82.9-204 (1);

(II) Beginning July 1, 2026, awarding local food purchasing grants pursuant to section 22-82.9-205;

(III) Beginning July 1, 2026, distributing money to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1);

(IV) Beginning July 1, 2026, awarding local school food purchasing technical assistance and education grants pursuant to section 22-82.9-207;

(V) The direct and indirect costs of administering the programs described in this subsection (3)(a), so long as these costs do not exceed one and five-tenths percent of the total amount the general assembly annually appropriates in the same fiscal year for the other purposes described in this subsection (3)(a);

(VI) Beginning July 1, 2026, implementing the supplemental nutritional assistance program;

(VII) Beginning July 1, 2026, providing outreach related to the supplemental nutritional assistance program;

(VIII) Beginning July 1, 2026, providing community-based nutrition education;

(IX) Beginning July 1, 2026, complying with the requirements for state matching funds under the federal "Richard B. Russell National School Lunch Act", 42 U.S.C. sec. 1751 et seq.;

(X) Beginning July 1, 2026, administering the start smart nutrition program created in section 22-82.7-103;

(XI) Beginning July 1, 2026, administering the child nutrition school lunch protection program created in section 22-82.9-104; and

(XII) Beginning July 1, 2026, administering the summer electronic benefits transfer for children program pursuant to section 22-2-149.

(a.5) (I) Subject to annual appropriation by the general assembly, the department may expend money from the account for the following purposes:

(A) Awarding local food purchasing grants pursuant to sections 22-82.9-205 and 22-82.9-302;

(B) Distributing money to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1);

(C) Awarding local school food purchasing technical assistance and education grants pursuant to sections 22-82.9-207 and 22-82.9-303; and

(D) The direct and indirect costs of administering the programs described in this subsection (3)(a.5), so long as these costs do not exceed one and one-half percent of the total amount the general assembly annually appropriates in the same fiscal year for the other purposes described in subsection (3)(a) of this section and this subsection (3)(a.5).

(II) The department shall, as practicable, expend all of the estimated amount of money in the account for the purposes described in this subsection (3)(a.5) and in accordance with the distribution methods established in subsections (3)(c) to (3)(h) of this section.

(b) Money in the fund shall not be used for the purposes described in subsections (3)(a)(II), (3)(a)(III), and (3)(a)(IV) of this section if the sum of the annual tax year revenue recorded in the fund and the balance in the fund, as calculated pursuant to subsection (4) of this section, is less than, or is anticipated to be less than, the annual expenditure anticipated to be required for the purposes described in subsections (3)(a)(I) and (3)(a)(V) of this section.

(c) Notwithstanding subsection (3)(b) of this section, if the department expending money from the fund as follows would result in a reserve calculation amount equal to less than ten percent, then the department shall expend money from the account as follows:

(I) Awarding local school food purchasing grants pursuant to section 22-82.9-302 in amounts determined by the department that, in combination with the expenditures from the account described in subsections (3)(c)(II) and (3)(c)(III) of this section, result in expending all of the estimated amount in the account;

(II) Distributing the greater of three thousand dollars or an amount equal to six cents multiplied by the number of school lunches that qualified as eligible meals that the participating school food authority provided in the school year two school years prior to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1); and

(III) Awarding two hundred fifty thousand dollars in local school food purchasing technical assistance and education grants pursuant to section 22-82.9-303.

(d) If the department expending money from the fund as follows would result in a reserve calculation amount equal to or greater than ten percent and less than twenty-five percent, then the department shall expend money from the fund, including money in the account in accordance with subsection (3)(a.5)(II) of this section, as follows:

(I) Awarding local food purchasing grants pursuant to section 22-82.9-205 in an amount equal to the greater of five thousand dollars or an amount, as determined by the department, equal to or greater than ten and equal to or less than twelve and one-half cents multiplied by the number of lunches that qualified as an eligible meal that the participating school food authority served to students in the school year two school years prior;

(II) Distributing the greater of three thousand dollars or an amount equal to six cents multiplied by the number of school lunches that qualified as eligible meals that the participating school food authority provided in the school year two school years prior to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1); and

(III) Awarding two million five hundred thousand dollars in local school food purchasing technical assistance and education grants pursuant to section 22-82.9-207.

(e) If the department expending money from the fund as follows would result in a reserve calculation amount equal to or greater than twenty-five percent and less than thirty-five percent, then the department shall expend money from the fund, including money in the account in accordance with subsection (3)(a.5)(II) of this section, as follows:

(I) Awarding local food purchasing grants pursuant to section 22-82.9-205 in an amount equal to the greater of five thousand dollars or an amount, as determined by the department, equal to or greater than sixteen and less than or equal to eighteen and three-quarters cents multiplied by the number of lunches that qualified as an eligible meal that the participating school food authority served to students in the school year two school years prior;

(II) Distributing the greater of three thousand dollars or an amount equal to nine cents multiplied by the number of school lunches that qualified as eligible meals that the participating school food authority provided in the school year two school years prior to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1); and

(III) Awarding three million seven hundred fifty thousand dollars in local school food purchasing technical assistance and education grants pursuant to section 22-82.9-207.

(f) If the department expending money from the fund as follows would result in a reserve calculation amount equal to or greater than thirty-five percent, then the department shall expend money from the fund, including money in the account in accordance with subsection (3)(a.5)(II) of this section, as follows:

(I) Awarding local food purchasing grants pursuant to section 22-82.9-205 in an amount equal to the greater of five thousand dollars or an amount equal to twenty-five cents multiplied by the number of lunches that qualified as an eligible meal that the participating school food authority served to students in the school year two school years prior;

(II) Distributing the greater of three thousand dollars or an amount equal to twelve cents multiplied by the number of school lunches that qualified as eligible meals that the participating school food authority provided in the school year two school years prior to a participating school food authority to increase wages or provide stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals pursuant to section 22-82.9-206 (1); and

(III) Awarding five million dollars in local school food purchasing technical assistance and education grants pursuant to section 22-82.9-207.

(g) If, upon awarding money according to subsection (3)(f) of this section, the department determines that awarding money pursuant to this subsection (3)(g) would result in a reserve calculation amount equal to thirty-five percent or more, then money may be expended from the fund, including money in the account in accordance with subsection (3)(a.5)(II) of this section by awarding and distributing amounts from the fund as described in subsection (3)(f) of this section and then funding the implementation of the supplemental nutritional assistance program in a manner that supplements and does not supplant the state's expenditures, as of July 1, 2025, to implement the supplemental nutritional assistance program; outreach related to the supplemental nutritional assistance program; community-based nutrition education; the requirements for state matching funds under the federal "Richard B. Russell National School Lunch Act", 42 U.S.C. sec. 1751 et seq.; and the summer electronic benefits transfer for children program pursuant to section 22-2-149.

(h) (I) Notwithstanding subsections (3)(d) to (3)(f) of this section, the department shall not reduce from one state fiscal year to the next the amount multiplied by the number of lunches that qualify as eligible meals or the dollar amount alternative used to calculate the amount the department awards for the purposes described in subsections (3)(a)(II), (3)(a)(III), (3)(a.5)(I)(A), and (3)(a.5)(I)(B) of this section or the total amount the department awards for the purpose described in subsections (3)(a)(IV) and (3)(a.5)(I)(C) of this section. This subsection (3)(h)(I) does not apply in a fiscal year when the department expends money from the fund, including money in the account, pursuant to subsections (3)(c) and (3)(g) of this section.

(II) Notwithstanding subsections (3)(c) and (3)(h)(I) of this section, if, over three fiscal years, the result of the reserve calculation for a subsection of this section (3) according to which the department expended money from the fund decreases by ten percentage points from the first to the third fiscal year, equals an amount equal to forty percent or less in both the second and third fiscal year, and decreases in both the second and third fiscal year, for the third fiscal year:

(A) If the department would otherwise expend money from the fund in the amounts described in subsection (3)(f) of this section, the department shall instead expend money from the fund in the amounts described in subsection (3)(e) of this section;

(B) If the department would otherwise expend money from the fund in the amounts described in subsection (3)(e) of this section, except for when doing so pursuant to this subsection (3)(h)(II), the department shall instead expend money from the fund in the amounts described in subsection (3)(d) of this section; and

(C) If the department would otherwise expend money from the fund in the amounts described in subsection (3)(d) of this section, except for when doing so pursuant to this subsection (3)(h)(II), the department shall instead expend money from the fund in the amounts described in subsection (3)(c) of this section.

(i) If legislative council's computations of the reserve calculation do not result in an amount that allows for the expenditure of money by the department in accordance with subsections (3)(c) to (3)(g) of this section, the department shall expend money in accordance with the subsection of this section that requires the highest maximum reserve calculation amount among the subsections of this section for which, when legislative council computes the reserve calculation for the relevant subsection, the reserve calculation amount is greater than the maximum permissible reserve calculation amount for the subsection.

(j) Notwithstanding any law to the contrary, money in the fund shall only be expended from the fund in accordance with subsections (3)(c) to (3)(i) of this section on or after July 1, 2026.

(4) (a) The department of revenue shall, on a monthly basis, record revenues and deposit money in the fund in a manner that is aligned with exempt revenues determined pursuant to subsection (4)(b) of this section.

(b) The department of revenue shall, on a monthly basis, report the amount of healthy school meals for all program revenue identified from tax returns to the office of state planning and budgeting and the legislative council staff. The office of state planning and budgeting shall calculate the amount of healthy school meals for all program revenue both projected to be received and actually received by the department of revenue based on income tax return data and other relevant factors. The office of state planning and budgeting shall also identify, in collaboration with the department of revenue, the revenue to be recorded and deposited on a monthly basis by the department of revenue in the fund pursuant to subsection (4)(a) of this section, and the total revenue to be recorded and deposited by the department of revenue in the fund for the fiscal year.

(c) The amount of healthy school meals for all program revenue identified by the office of state planning and budgeting for each fiscal year must include adjustments for estimation errors discovered for all prior fiscal years. The office shall notify the department of revenue and the legislative council staff of the general assembly of the adjustment amounts.

(d) On December 1, 2024, and every December 1 thereafter, the office of state planning and budgeting shall report the amount of healthy school meals for all program revenue received by the department of revenue in the previous tax year based on income tax return data and other relevant factors. The general assembly shall consider this report when estimating the amount of money to appropriate for the purposes specified in subsection (3) of this section in the next fiscal year.

(4.5) (a) On July 1, 2028, and each July 1 thereafter, the state treasurer shall transfer an amount from the state education fund to the account equal to the amount reported by the office of state planning and budgeting pursuant to subsection (4.5)(b) of this section.

(b) Before July 1, 2028, and before each July 1 thereafter, the office of state planning and budgeting shall, in collaboration with the department of revenue, prepare an estimate of the amount of state education fund healthy school meals for all revenue for the following fiscal year and report that estimate to the state treasurer.

(c) (I) On July 1, 2028, in addition to the amount described in subsection (4.5)(a) of this section, the state treasurer shall transfer an amount from the state education fund to the fund equal to the amount reported by the office of state planning and budgeting pursuant to subsection (4.5)(c)(II) of this section.

(II) Before July 1, 2028, the office of state planning and budgeting shall, in collaboration with the department of revenue, prepare an estimate of the amount of state education fund healthy school meals for all revenue for the immediately preceding fiscal year and report that estimate to the state treasurer.

(d) The general assembly finds and declares that for purposes of section 17 of article IX of the state constitution, healthy school meals are an essential component to student learning. The programs described in subsection (3)(a.5) of this section are an important component of an accountable program to meet state academic standards, and may therefore receive money from the state education fund created in section 17 (4) of article IX of the state constitution.

(5) Repealed.

(6) In its annual submission of the state department's budget request to the joint budget committee, the office of state planning and budgeting shall report:

(a) The total amount of expenditures from the cash fund made pursuant to subsection (3) of this section; and

(b) The total amount of expenditures from the general fund made pursuant to subsection (5) of this section.

(7) and (8) Repealed.

Source: L. 2024: Entire section added, (HB 24-1390), ch. 133, p. 482, § 10, effective April 29. L. 2025: (3)(a)(I) and (5) amended and (8) added, (SB 25-214), ch. 372, p. 2007, § 4, effective June 3; (1)(a) and (7) repealed, (1)(a.5), (1)(c), (1)(d), (3)(a.5), (3)(c), (3)(d), (3)(e), (3)(f), (3)(g), (3)(h), (3)(i), and (4.5) added, and (1)(b), (2), IP(3)(a), (3)(b), (4)(a), (4)(b), and (5) amended, (HB 25-1274), ch. 402, p. 2286, § 10, effective December 9, 2025, (see editor's note). L. 2025, 1st Ex. Sess.: (1)(c), IP(3)(a), (3)(a)(II), (3)(a)(III), (3)(a)(IV), IP(3)(e), IP(3)(f), and (3)(g) amended and (3)(a)(VI), (3)(a)(VII), (3)(a)(VIII), and (3)(j) added, (SB 25B-003), ch. 2, p. 5, § 3, effective December 9, 2025, (see editor's note). L. 2026: (3)(a)(VII) and (3)(g) amended and (3)(a)(IX), (3)(a)(X), (3)(a)(XI), and (3)(a)(XII) added, (HB 26-1350), ch. 166, p. 992, § 2, effective May 27; (4.5)(a), (4.5)(b), and (4.5)(c) amended and (8) repealed, (HB 26-1351), ch. 167, p. 999, § 2, effective May 27.

Editor's note: (1) Section 20(6) of chapter 402 (HB 25-1274), Session Laws of Colorado 2025, provides that section 10 of the act changing this section takes effect on the date of the governor's proclamation, only if, at the November 2025 statewide election, a majority of voters approve the ballot issue referred in accordance with § 22-82.9-213. The ballot issue, referred to voters as Proposition MM, was approved on November 4, 2025, and was proclaimed by the governor on December 9, 2025, see L. 2026, p. 3650. The vote count for the measure was as follows:

FOR: 1,010,644

AGAINST: 681,400

(2) Amendments to subsection (5) by SB 25-214 and HB 25-1274 were harmonized, effective only if the ballot issue described in § 22-82.9-213 is approved by the people at the next statewide election. The ballot issue, referred to voters as Proposition MM, was approved on November 4, 2025, and was proclaimed by the governor on December 9, 2025, see L. 2026, p. 3650. The vote count for the measure was as follows:

FOR: 1,010,644

AGAINST: 681,400

(3) Section 4(2) of chapter 2 (SB 25B-003), Session Laws of Colorado 2025, First Extraordinary Session, provides that section 3 of the act changing this section takes effect on the date of the governor's proclamation, only if, at the November 2025 statewide election, a majority of voters approve the ballot issue referred in accordance with § 22-82.9-213. The ballot issue, referred to voters as Proposition MM, was approved on November 4, 2025, and was proclaimed by the governor on December 9, 2025, see L. 2026, p. 3650. The vote count for the measure was as follows:

FOR: 1,010,644

AGAINST: 681,400

(4) Subsection (5)(b) provided for the repeal of subsection (5), effective July 1, 2026. (See L. 2025, p. 2286.)

Cross references: For the legislative declaration in SB 25-214, see section 1 of chapter 372, Session Laws of Colorado 2025. For the legislative declaration in HB 25-1274, see section 1 of chapter 402, Session Laws of Colorado 2025. For the legislative declaration in SB 25B-003, see section 1 of chapter 2, Session Laws of Colorado 2025, First Extraordinary Session. For the legislative declaration in HB 26-1350, see section 1 of chapter 166, Session Laws of Colorado 2026.