HB 1292

                            Second Regular Session
                         Seventy-fifth General Assembly
                           STATE OF COLORADO
                                                                           INTRODUCED
LLS NO. 26-0798.02 Jacob Baus x2173  HOUSE BILL 26-1292
                             HOUSE SPONSORSHIP
 Goldstein,
                            SENATE SPONSORSHIP
 Kipp and Marchman,
House Committees  Senate Committees
Education
                                     A BILL FOR AN ACT
101CONCERNING REQUIREMENTS RELATED TO A FEDERAL TAX PROGRAM
102INVOLVING SCHOLARSHIP GRANTING ORGANIZATIONS, AND, IN
103CONNECTION THEREWITH, ESTABLISHING REQUIREMENTS FOR
104A SCHOOL THAT RECEIVES FUNDS FROM A SCHOLARSHIP
105GRANTING ORGANIZATION.
                                           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.)
              If the state voluntarily elects to participate in a federal program
       that provides a tax credit for a qualified contribution to a scholarship
           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.
granting organization, the bill requires the state to include all eligible
scholarship granting organizations on its list identifying scholarship
granting organizations to the federal government.
        If a school enrolls a student whose education-related expenses are
paid, in whole or in part, by a scholarship granting organization, the bill
requires the school to comply with nondiscrimination requirements and
laws concerning students with disabilities.
        If the school that is subject to these requirements violates a
requirement, the school is subject to an injunction and may have its
eligibility to receive money for a student whose education-related
expenses are paid by a scholarship granting organization suspended.
1 Be it enacted by the General Assembly of the State of Colorado:
2SECTION 1. In Colorado Revised Statutes, add article 2.5 to title
3 22 as follows:
4ARTICLE 2.5
5Schools Receiving Funds from
6Scholarship Granting Organizations
722-2.5-101. Definitions.
8AS USED IN THIS ARTICLE 2.5, UNLESS THE CONTEXT OTHERWISE
9 REQUIRES:
10(1) "PARENT" MEANS A BIOLOGICAL OR ADOPTIVE PARENT, LEGAL
11 GUARDIAN, OR ANY PERSON HAVING LEGAL OR PHYSICAL CUSTODY OF A
12 CHILD.
13(2) "PARTICIPATING SCHOOL" MEANS A SCHOOL THAT ENROLLS A
14 STUDENT WHOSE EDUCATION-RELATED EXPENSES ARE PAID, IN WHOLE OR
15 IN PART, BY A SCHOLARSHIP GRANTING ORGANIZATION.
16(3)   "SCHOLARSHIP GRANTING ORGANIZATION" MEANS AN
17 ORGANIZATION THAT USES PUBLIC FUNDING OR TAX-FAVORED FUNDING TO
18 DISTRIBUTE SCHOLARSHIPS FOR A STUDENT'S EDUCATION-RELATED
19 EXPENSES.
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1(4) "SCHOOL" MEANS A PUBLIC OR NONPUBLIC SCHOOL.
2(5) "STATE BOARD" MEANS THE STATE BOARD OF EDUCATION
3 CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE
4 STATE CONSTITUTION.
5(6) "TAX-FAVORED FUNDING" MEANS ANY MECHANISM, INCLUDING
6 A PROGRAM, ACCOUNT, CREDIT, DEDUCTION, DEFERRAL, OR OTHER
7 ARRANGEMENT     UNDER   FEDERAL      TAX   LAW,   UNDER   WHICH    A
8 CONTRIBUTION, DISTRIBUTION, OR EXPENDITURE WAS USED TO PAY FOR OR
9 REIMBURSE EDUCATION-RELATED EXPENSES, THAT RESULTS IN A TAX
10 BENEFIT FOR THE DONOR, CONTRIBUTOR, STUDENT, STUDENT'S PARENT, OR
11 OTHER TAXPAYER.
1222-2.5-102. State opt-in requirements for federal program.
13IF THE STATE VOLUNTARILY ELECTS TO PARTICIPATE IN THE
14 FEDERAL PROGRAM THAT ALLOWS TAX-FAVORED FUNDING FOR A
15 CONTRIBUTION TO A SCHOLARSHIP GRANTING ORGANIZATION PURSUANT
16 TO THE FEDERAL "H.R. 1 OF THE 119TH CONGRESS (2025-2026), PUB.L.
17 119-21", AND ITS IMPLEMENTING REGULATIONS AND GUIDANCE, THEN THE
18 STATE SHALL INCLUDE ALL SCHOLARSHIP GRANTING ORGANIZATIONS THAT
19 SATISFY THE REQUIREMENTS OF THE FEDERAL "H.R. 1 OF THE 119TH
20 CONGRESS (2025-2026), PUB.L. 119-21", AND ITS IMPLEMENTING
21 REGULATIONS AND GUIDANCE, IN THE LIST OF SCHOLARSHIP GRANTING
22 ORGANIZATIONS THAT IT PROVIDES TO THE SECRETARY OF THE TREASURY.
2322-2.5-103. Nondiscrimination.
24(1) (a) A PARTICIPATING SCHOOL SHALL NOT DISCRIMINATE ON THE
25 BASIS OF ANY STUDENT'S, STUDENT'S PARENT'S, OR STUDENT'S FAMILY
26 MEMBER'S DISABILITY, SPECIAL EDUCATION STATUS, RACE, ETHNICITY,
27 RELIGION, CREED, COLOR, SEX, SEXUAL ORIENTATION, GENDER IDENTITY,
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1  GENDER EXPRESSION, FAMILY COMPOSITION, AGE, NATIONAL ORIGIN,
2 ANCESTRY, LANGUAGE PROFICIENCY, OR SOCIOECONOMIC STATUS.
3(b) THE PROHIBITION DESCRIBED IN THIS SUBSECTION (1) APPLIES
4  TO ALL CONDUCT BY A PARTICIPATING SCHOOL, INCLUDING ADMISSIONS,
5 ENROLLMENT, ACADEMIC PERFORMANCE, ACCESS TO OR PARTICIPATION IN
6 EDUCATIONAL SERVICES, AND RETENTION.
7(2) A PARTICIPATING SCHOOL SHALL PUBLISH THE PROHIBITION
8 DESCRIBED IN SUBSECTION (1) OF THIS SECTION ON ITS PUBLIC-FACING
9 WEBSITE, ON ITS APPLICATION FOR ENROLLMENT, AND IN ANY
10 ENROLLMENT MATERIALS.
11(3) (a) FOR ANY STUDENT, A PARTICIPATING SCHOOL SHALL
12 COMPLY WITH STATE AND FEDERAL LAWS CONCERNING STUDENTS WITH
13 DISABILITIES, INCLUDING:
14(I) SECTION 504 OF THE FEDERAL "REHABILITATION ACT OF 1973",
15 29 U.S.C. SEC. 701 ET SEQ., AS AMENDED, AND ITS IMPLEMENTING
16 REGULATIONS;
17(II) TITLE II OF THE FEDERAL "AMERICANS WITH DISABILITIES ACT
18 OF 1990", AS AMENDED, AND ITS IMPLEMENTING REGULATIONS;
19(III) THE FEDERAL "INDIVIDUALS WITH DISABILITIES EDUCATION
20 ACT", 20 U.S.C. SEC. 1400 ET SEQ., AS AMENDED, AND ITS IMPLEMENTING
21 REGULATIONS; AND
22(IV)   THE "EXCEPTIONAL CHILDREN'S EDUCATIONAL ACT",
23 ARTICLE 20 OF THIS TITLE 22.
24(b) A PARTICIPATING SCHOOL SHALL NOT CHARGE ADDITIONAL
25 TUITION OR FEES TO A STUDENT WHO REQUIRES ACCOMMODATIONS OR
26 SERVICES PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION.
27(4) NOTWITHSTANDING A REQUIREMENT IN SUBSECTION (1) OR (3)
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1 OF THIS SECTION, THIS SECTION DOES NOT PROHIBIT A PARTICIPATING
2 SCHOOL THAT IS A NONPUBLIC SCHOOL FROM:
3(a)     MAINTAINING      ITS    RELIGIOUS   MISSION,   CHARACTER,
4 GOVERNANCE, OR INSTRUCTIONAL PHILOSOPHY, OR FROM MAKING
5 EMPLOYMENT  DECISIONS   CONSISTENT      WITH    CONSTITUTIONAL
6 PROTECTIONS; OR
7(b) OFFERING RELIGIOUS INSTRUCTION OR WORSHIP.
822-2.5-104. Oversight.
9(1) IF A PARTICIPATING SCHOOL VIOLATES A REQUIREMENT OF THIS
10 ARTICLE 2.5:
11(a)     AN    INJURED PARTY, OR A SCHOLARSHIP GRANTING
12 ORGANIZATION THAT DISTRIBUTED MONEY TO THE SCHOOL, MAY FILE AN
13 ACTION IN A COURT OF COMPETENT JURISDICTION SEEKING INJUNCTIVE
14 RELIEF THAT COMPELS THE SCHOOL TO COMPLY WITH THIS ARTICLE 2.5;
15 AND
16(b) THE STATE BOARD, UPON FINDING THAT THE PARTICIPATING
17 SCHOOL VIOLATED A REQUIREMENT OF THIS ARTICLE 2.5, MAY SUSPEND
18 THE SCHOOL'S ELIGIBILITY TO RECEIVE MONEY FOR A STUDENT WHOSE
19 EDUCATION-RELATED EXPENSES ARE PAID, IN WHOLE OR IN PART, BY A
20 SCHOLARSHIP GRANTING ORGANIZATION, FOR A PERIOD NOT TO EXCEED
21 FIVE YEARS.
22SECTION 2. Act subject to petition - effective date. This act
23 takes effect at 12:01 a.m. on the day following the expiration of the
24 ninety-day period after final adjournment of the general assembly (August
25 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a
26 referendum petition is filed pursuant to section 1 (3) of article V of the
27 state constitution against this act or an item, section, or part of this act
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1 within such period, then the act, item, section, or part will not take effect
2 unless approved by the people at the general election to be held in
3 November 2026 and, in such case, will take effect on the date of the
4 official declaration of the vote thereon by the governor.
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