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HB 1416

Transfers to General Fund & Colorado Economic Development Fund

2026 Regular Session

HB 1416 reallocates $3.5 million on June 30, 2026—$1.2M to the Colorado Economic Development Fund to aid small businesses and $2.3M to the General Fund for budgeting.

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Bill Summary · HB 1416

Summary of HB 1416 (Session 2026A, Colorado)

Purpose and Intent

  • The bill authorizes targeted transfers from the Universal High School Scholarship Cash Fund (UHSSC Fund) to support two specific state needs:
    • Allocate funds to the Colorado Economic Development Fund to bolster economic resilience and small business support.
    • Return additional funds to the General Fund for budget balancing.
  • The overarching goal is to respond to economic uncertainty and funding instability, particularly affecting small businesses and rural communities.

Key Provisions and Changes

Transfers on June 30, 2026

  • Transfer 1,200,000 dollars from the UHSSC Fund to the Colorado Economic Development Fund (created in §24-46-105(1)(a)).
  • Transfer 2,300,000 dollars from the UHSSC Fund to the General Fund.

Context and Legislative Findings (Legislative Declaration)

  • Colorado faces economic uncertainty due to shifting trade policies, funding fluctuations, and global economic pressures, impacting small businesses and job growth.
  • Small businesses constitute a large share of Colorado’s economy, with particular vulnerability in rural areas.
  • The Colorado Office of Economic Development and International Trade (OEDIT) reports substantial returns on investments in small business development programs (tax revenue multipliers and capital formation from program participation).
  • The Small Business Development Center (SBDC) network has experienced federal funding delays through 2025, risking operation, especially for rural centers.
  • The General Assembly finds it appropriate to allow reallocation of unused, previously appropriated funds to respond nimbly to economic conditions without adding new staff.

Specific Authority for Reallocation (New Statutory Provisions)

  • 24-48.5-502, adding two subsections:
    • 3(b.7): On June 30, 2026, the State Treasurer shall transfer $1,200,000 from the UHSSC Fund to the Colorado Economic Development Fund.
    • 3(b.8): On June 30, 2026, the State Treasurer shall transfer $2,300,000 from the UHSSC Fund to the General Fund.

Administrative and Timing Details

  • Transfers are targeted for a single date: June 30, 2026.
  • The transfers come from the UHSSC Fund, which was created to support universal high school scholarships (related to Senate Bill 23-205, class of 2023), but the bill notes implementation challenges due to federal FAFSA rollout issues.

Additional Provisions

  • The act contains a safety clause indicating it is necessary for immediate preservation of public peace, health, safety, or for appropriations for state departments and institutions.

Who Would Be Affected

  • State Treasury and State Controller/General Fund management: responsible for executing the transfers on the specified date.
  • Colorado Economic Development Fund: receives $1.2 million to bolster economic development initiatives and small business support.
  • General Fund: receives $2.3 million, potentially affecting the state’s budget and allocation priorities.
  • Small businesses, including rural and economically vulnerable sectors, may indirectly benefit through improved state economic development capacity.
  • SBDC and related small business support programs: subject to broader state-level reallocations, particularly if federal funding remains unstable.

Procedural and Timeline Considerations

  • Effective date: Transfers are scheduled for June 30, 2026.
  • The bill would amend statutes to authorize these specific transfers from the UHSSC Fund.
  • The bill’s action is contingent on passage and signing; it reflects a reallocation of already-appropriated funds rather than new appropriations.
  • The measure is introduced in the 2026 Regular Session and assigned to Appropriations in both the House and Senate for consideration.

Bottom Line

HB 1416 reallocates $3.5 million on June 30, 2026 from the Universal High School Scholarship Cash Fund: $1.2 million to the Colorado Economic Development Fund to support small business resilience, and $2.3 million to the General Fund for budgeting purposes. The intent is to provide flexible, immediate response tools to current economic conditions while recognizing prior funding challenges for small business services.

Compiled from official sources — confirm details with the bill’s official record.

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