HB 1416

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1416
     BY REPRESENTATIVE(S) Nguyen and Brown, Taggart, Winter T.,
     Camacho, Stewart K., Soper, Woog, Richardson, Carter, Titone, Lindsay,
     Velasco, Caldwell, Clifford, Jackson, Rutinel, Woodrow;
     also SENATOR(S) Amabile and Carson, Roberts, Pelton R., Coleman.
     CONCERNING TRANSFERS FROM THE UNIVERSAL HIGH SCHOOL SCHOLARSHIP
          CASH FUND.
     Be it enacted by the General Assembly of the State of Colorado:
             SECTION 1. Legislative declaration. (1) The general assembly
     finds, determines, and declares that:
            (a) Colorado's economy is experiencing a period of heightened
     uncertainty driven by dynamic trade policies, uncertain funding conditions,
     and evolving global economic pressures;
            (b) These factors have contributed to increased costs for businesses,
     disruptions in supply chains, and declining business confidence across
     multiple sectors. This has also led to slowing job growth, rising consumer
     debt, and weak economic confidence.
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
        (c) With more than 99% of Colorado businesses classified as small
businesses, these impacts are felt across communities statewide, particularly
in rural areas that are increasingly vulnerable to economic disruption. Key
industries affected include outdoor gear manufacturing, construction, retail,
bioscience, technology, advanced manufacturing, and energy. These
pressures threaten business continuity, workforce stability, and local
economic ecosystems.
       (d) Small businesses are a critical component of Colorado's
economy and community. 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 $2.15 in tax revenue for every $1.00 invested in the program since 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
programs to support major statewide economic development initiatives and
preserve community businesses.
      (II) In response to prior economic disruptions, including the
COVID-19 pandemic, the state established a robust portfolio of small
business support programs, including direct grants and technical assistance.
Some prior programs of this type included rural theater rehabilitation, the
community business preservation program, an expansion of the rural
jump-start program, and small business development center support.
        (III) The small business development center network experienced
delays in federal funding throughout calendar year 2025 and has yet to
receive its 2026 allocation, placing its operations, particularly rural service
centers, at risk. These disruptions underscore the need for flexible,
state-level tools to respond to funding instability at the federal level.
PAGE 2-HOUSE BILL 26-1416
       (2) (a) The general assembly therefore finds that it is necessary and
appropriate to adequately respond to the current economic environment by
providing the economic development commission the ability to reallocate
previously appropriated but unused funds to nimbly respond to economic
conditions and mitigate impacts to small businesses without new
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) By reallocating a portion of these previously appropriated funds,
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; and
       (c) Enabling the reallocation of previously appropriated funds to
support small business resilience is a necessary and prudent response to
current economic conditions and is in the best interests of the state of
Colorado.
       SECTION 2. In Colorado Revised Statutes, 24-48.5-502, add
(3)(b.7) and (3)(b.8) as follows:
       24-48.5-502. Universal high school scholarship program -
established - administration - cash fund - eligibility - transfers.
          (3) (b.7) ON JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER
NINE HUNDRED THOUSAND DOLLARS FROM THE CASH FUND TO THE
COLORADO ECONOMIC DEVELOPMENT FUND, CREATED IN SECTION 24-46-105
(1)(a).
      (b.8) ON JUNE 30, 2026, THE STATE TREASURER SHALL TRANSFER
TWO MILLION SIX HUNDRED THOUSAND DOLLARS FROM THE CASH FUND TO
THE GENERAL FUND.
      SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
PAGE 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.
____________________________  ____________________________
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
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