2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › STATE FUNDS (§§ 24-75-101 — 24-75-1401) › Article 75 - STATE FUNDS (§§ 24-75-101 — 24-75-1401) › Part 2 - GENERAL FUND (§§ 24-75-201 — 24-75-232) › Section 24-75-226 - "American Rescue Plan Act of 2021" cash fund - creation - recipient funds - limitations - reporting - appropriations - reduction in general fund appropriations - report - legislative declaration - definitions - repeal

(1)
As used in this section, unless the context otherwise requires:
(a)
"American Rescue Plan Act of 2021" means the federal "American Rescue Plan Act of 2021", Pub.L. 117-2, as the act may be subsequently amended.
(a.5)
"Coronavirus state fiscal recovery fund" means the federal fund created in
42 U.S.C. sec. 802
, or any successor fund.
(a.7)
"Discretionary account" means the discretionary account created in the fund in subsection (4)(a)(II) of this section.
(b)
"Fund" means the "American Rescue Plan Act of 2021" cash fund created in subsection (2) of this section.
(c)
"Office" means the office of state planning and budgeting created in section
24-37-102
.
(c.5)
"Personal services" has the same meaning as set forth in section 24-75-112 (1)(m).
(d)
"Recipient fund" means a cash fund that includes any money that at one time was in the "American Rescue Plan Act of 2021" cash fund created in subsection (2) of this section.
(e)
"Secretary" means the secretary of the treasury of the United States.
(f)
"Subrecipient" means a person that receives money from the fund or a recipient fund to carry out a program or project on behalf of the state but that is not a beneficiary of the services or benefits provided through the program or project.
(2)
The "American Rescue Plan Act of 2021" cash fund is hereby created in the state treasury. The fund consists of money credited to the fund pursuant to subsections (3) and (3.5) of this section.
(3)
(a)
From the money the state received from the federal coronavirus state fiscal recovery fund under section 9901 of title IX, subtitle M of the "American Rescue Plan Act of 2021", the state treasurer shall transfer three billion four hundred forty-eight million seven hundred sixty-one thousand seven hundred ninety dollars, and any interest and income earned thereon, to the fund on June 11, 2021.
(b)
The state treasurer shall deposit in the fund any money that a local government receives from the federal coronavirus local fiscal recovery fund and transfers to the state under section 9901 of title IX, subtitle M of the "American Rescue Plan Act of 2021".
(c)
The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the state emergency reserve cash fund created in section
24-77-104 (6)(a)
.
(d)
The fund also includes the amount transferred to the fund in accordance with section
24-75-228
(3.5)(a).
(3.5)
On June 30, 2024, the state treasurer shall transfer to the fund the following amounts from money that originated from the money the state received from the coronavirus state fiscal recovery fund from the following recipient funds, including a companion fund or any account in the fund, at the end of the 2023-24 state fiscal year:
(a)
Two hundred forty-eight million two hundred forty-four thousand eighty-three dollars and sixty-two cents from the discretionary account, created in subsection (4)(a)(II) of this section;
(b)
Two hundred sixty-eight million seven hundred forty-four thousand three hundred forty-two dollars and seventy-one cents from the behavioral and mental health cash fund, created in section 24-75-230;
(c)
Fourteen million five hundred thousand dollars from the broadband administrative fund, created in section 24-37.5-119;
(d)
Seven million one hundred thirty-four thousand two hundred eighty-two dollars from the Colorado economic development fund, created in section 24-46-105;
(e)
Ten million three hundred sixty-eight thousand one hundred fifty-nine dollars from the Colorado heritage communities fund, created in section 24-32-3207;
(f)
Twenty-one million five hundred forty-five thousand three hundred seven dollars from the Colorado opportunity scholarship initiative fund, created in section 23-3.3-1005;
(g)
Seven million dollars from the Colorado water conservation board construction fund, created in section 37-60-121;
(h)
Ninety million nine hundred eighty thousand dollars from the connecting Coloradans experiencing homelessness with services, recovery care, and housing supports fund, created in section 24-32-732;
(i)
Eleven million two thousand five hundred twenty-nine dollars from the digital inclusion grant program fund, created in section 24-37.5-904;
(j)
One hundred thirty-five million eight hundred seventy-five thousand five hundred forty-eight dollars and fifty-four cents from the economic recovery and relief cash fund, created in section 24-75-228;
(k)
Three million dollars from the healthy forests and vibrant communities fund, created in section 23-31-313;
(l)
Twenty thousand dollars from the housing development grant fund, created in section 24-32-721;
(m)
Twenty-nine million two hundred nine thousand five hundred seventy-six dollars from the infrastructure and strong communities grant program fund, created in section 24-32-133;
(n)
Seventeen million dollars from the judicial department information technology cash fund, created in section 13-32-114;
(o)
One hundred twenty-five million six hundred thousand dollars from the local investments in transformational affordable housing fund, created in section 24-32-729;
(p)
Ninety-six million one hundred sixty thousand dollars from the multimodal transportation and mitigation options fund, created in section 43-4-1103;
(q)
Forty-nine million six hundred fifty-two thousand nine hundred thirty-six dollars from the regional navigation campus cash fund, created in section 24-32-727;
(r)
Sixty-eight million seven hundred thirty thousand dollars from the regional talent development initiative grant program fund, created in section 24-48.5-406;
(s)
Two hundred ninety-nine million three hundred sixty-two thousand three hundred two dollars and seventy-three cents from the revenue loss restoration cash fund, created in section 24-75-227;
(t)
Two million three hundred thousand dollars from the rural provider access and affordability fund, created in section 25.5-1-207;
(u)
Seventy-five million three hundred thirty thousand dollars from the state highway fund, created in section 43-1-219;
(v)
Forty thousand dollars from the wildfire mitigation capacity development fund, created in section 24-33-117; and
(w)
Twenty-two million two hundred twelve thousand three hundred ninety-nine dollars and fourteen cents from the workers, employers, and workforce centers cash fund, created in section 24-75-231.
(4)
(a)
(I)
The general assembly shall not appropriate money from the fund except as described in this subsection (4)(a) and subsection (5)(f) of this section. The general assembly may transfer money in the fund to another cash fund that is established for the purpose of using the money from the federal coronavirus state fiscal recovery fund. Transfers from the fund to the general fund are prohibited. A department shall not use money appropriated pursuant to this subsection (4) for any purpose prohibited by the "American Rescue Plan Act of 2021". A department shall comply with all requirements set forth in this section.
(II)
If there is any of the money transferred to the fund under subsection (3)(a) of this section remaining in the fund after any transfers from the fund required by bills enacted during the 2021 regular legislative session, then, of the remainder in the fund, the lesser of three hundred million dollars or the remainder is placed in the discretionary account, which is created in the fund, and is continuously appropriated to any department designated by the governor for any allowable purpose under the "American Rescue Plan Act of 2021".
(III)
The money specified in subsection (3)(d) of this section is placed in the discretionary account and is continuously appropriated to any department designated by the governor for any expenditures necessary to respond to the public health emergency with respect to covid-19.
(IV)
For the 2023-24 state fiscal year, the general assembly shall appropriate money from the fund to any departments for personal services that were paid from the general fund in state fiscal year 2023-24.
(V)
For the 2024-25 state fiscal year, the general assembly shall appropriate the balance of the fund, excluding money remaining in the discretionary account. The general assembly may make the required appropriations to any department for personal services and for other purposes permitted under the "American Rescue Plan Act of 2021". Any money appropriated pursuant to this subsection (4)(a)(V) must be obligated as required in subsection (4)(d) of this section and expended on or before January 31, 2025.
(b)
A department may expend money appropriated from the fund or a recipient fund for purposes permitted under the "American Rescue Plan Act of 2021" and shall not use the money for any purpose prohibited by the act.
(c)
(I)
Notwithstanding any provision of law to the contrary, in order to ensure proper accounting for and compliance with the "American Rescue Plan Act of 2021", whenever money is transferred or appropriated to a recipient fund that also has money from other sources, the state controller or department controller shall create a companion cash fund that includes only the money the state received from the federal coronavirus state fiscal recovery fund under section 9901 of title IX, subtitle M of the "American Rescue Plan Act of 2021", but that is otherwise legally identical to the recipient fund, except as otherwise provided in subsection (4)(c)(II) of this section. The state controller may prescribe procedures to permit continued use of companion funds, with proper segregation of fund sources through completion of a project, for any money appropriated for a use permitted pursuant to the "American Rescue Plan Act of 2021" that is partially refinanced.
(II)
Notwithstanding any provision of law to the contrary, the state treasurer shall credit all interest and income derived from the deposit and investment of money in a recipient fund that originates from money the state received from the federal coronavirus state fiscal recovery fund to the state emergency reserve cash fund created in section
24-77-104 (6)(a)
.
(d)
(I)
Money in the fund or a recipient fund that originated from the coronavirus state fiscal recovery fund must be expended or obligated by December 31, 2024. Just prior to the close of business on December 30, 2024, any unexpended appropriations from a recipient fund that is of money that originated from the coronavirus state fiscal recovery fund and that remained in the recipient fund after the reversion described in subsection (4.2) of this section that are not for expenditures to be made after December 31, 2024, that were obligated before that date, revert to the "American Rescue Plan Act of 2021" cash fund, and the state treasurer shall transfer the unexpended and unobligated balance in the fund to the unemployment compensation fund created in section
8-77-101 (1)
. Any money that originated from the coronavirus state fiscal recovery fund that is obligated by December 31, 2024, must be expended by December 31, 2026. Effective December 31, 2026, the state controller shall transmit any unexpended money in the fund or a recipient fund to the United States department of the treasury. Money in a recipient fund that did not originate from the coronavirus state fiscal recovery fund must be expended in accordance with any applicable law or appropriation.
(II)
A subrecipient must spend money received from the fund or a recipient fund by December 11, 2026. On or before December 11, 2026, the subrecipient shall return to the state any remaining money under terms dictated by the state controller and thereafter the state controller shall transmit the money to the United States department of the treasury in accordance with the treasury's requirements.
(III)
Money in the fund or in a recipient fund that originated from the coronavirus state fiscal recovery fund is obligated when it is obligated in accordance with the "American Rescue Plan Act of 2021" and any federal rules promulgated thereunder. The obligation criteria in the "American Rescue Plan Act of 2021" and federal rules do not apply to money in the fund or in a recipient fund that did not originate from the coronavirus state fiscal recovery fund. Money that did not originate from the coronavirus state fiscal recovery fund that is not obligated by an applicable deadline in state law does not revert and remains available for expenditure in accordance with any applicable appropriation. The state controller shall determine whether money is obligated for purposes of determining the deadline for expenditures and the reversion or repayment of money in accordance with this subsection (4)(d).
(4.1)
(a)
(I)
Effective June 30, 2024, the amount of general fund money appropriated in a line item for personal services expenses in the general appropriation act for state fiscal year 2023-24, Senate Bill 23-214, is reduced by the amount of federal funds appropriated pursuant to subsection (4)(a)(IV) of this section that were spent for personal services in the line item.
(II)
Effective November 30, 2024, the amount of general fund money appropriated in a line item for personal services expenses in the general appropriation act for state fiscal year 2024-25, House Bill 24-1430, is reduced by the amount of federal funds appropriated pursuant to subsection (4)(a)(V) of this section that were spent for personal services in the line item.
(b)
To the extent permitted by federal law, the governor and a department that is appropriated money that originated from the fund shall spend the money for the purpose for which it is appropriated before spending money from any other source for the same purpose.
(c)
For the purpose of balancing the state budget as required by article X of the state constitution during the 2024 regular legislative session, the amounts appropriated in the general appropriation acts for state fiscal year 2023-24, Senate Bill 23-214, and state fiscal year 2024-25, House Bill 24-1430, to each department for personal services is reduced by the amount appropriated from the fund for the department's personal services for the applicable state fiscal year.
(4.2)
(a)
(I)
On December 1, 2024, any unspent and unobligated money that originated from the coronavirus state fiscal recovery fund, other than money designated for personal services or other operating costs as described in subsection (4.2)(a)(II) of this section, that is in the fund, A recipient fund, or the discretionary account reverts to the fund. Money that reverts to the fund pursuant to this subsection (4.2) is continuously appropriated until January 31, 2025, to any department designated by the governor for any purpose for which a general fund appropriation was made in the general appropriation act for state fiscal year 2024-25, House Bill 24-1430.
(II)
On or before November 30, 2024, the office shall determine the amount of unspent and unobligated money in the fund, a recipient fund, or the discretionary account that originated from the coronavirus state fiscal recovery fund that will be spent by a department for personal services and other operating costs on or before January 31, 2025, and shall report that amount to the state controller. Pursuant to subsection (4.2)(a)(I) of this section, money designated for personal services and other operating costs reported to the state controller does not revert to the fund on December 1, 2024.
(b)
Effective January 31, 2025, the amount of general fund money appropriated in a line item in the general appropriation act for state fiscal year 2024-25, House Bill 24-1430, is reduced by the amount of federal money that originated from the coronavirus state fiscal recovery fund appropriated pursuant to subsection (4.2)(a) of this section and that was spent for the line item.
(4.3)
(a)
After December 31, 2024, any money in a recipient fund that originated from the coronavirus state fiscal recovery fund that was obligated as of December 31, 2024, but not expended on an eligible activity at the conclusion of the appropriation reverts to the fund. Money that reverts to the fund pursuant to this subsection (4.3) is continuously appropriated through December 31, 2026, to any department designated by the governor for any purpose for which a general fund appropriation was made in the general appropriation act for the state fiscal year in which the reversion occurred.
(b)
Effective on the date of the applicable reversion, the amount of general fund money appropriated in a line item in the general appropriation act for the state fiscal year in which the reversion occurred is reduced by the amount of federal money that originated from the coronavirus state fiscal recovery fund appropriated pursuant to subsection (4.3)(a) of this section and that was spent for the line item.
(5)
(a)
(I)
The state controller shall provide periodic reports to the secretary as required by the secretary under the "American Rescue Plan Act of 2021". The department of revenue shall provide the state controller with any information required by the secretary about any reductions or increases in net tax revenue.
(II)
The general assembly hereby finds and declares that:
(A)
Under
42 U.S.C. sec. 802 (c)(1)(C)
, the state is permitted to use money received from the coronavirus state fiscal recovery fund for the provision of government services to the extent of the reduction in the state's revenue due to the COVID-19 public health emergency relative to the revenues the state collected for the state fiscal year 2018-19;
(B)
The United States department of the treasury has promulgated a rule to establish the methodology for the state to calculate a recipient government's annual reduction in revenue for the four calendar years beginning in 2020;
(C)
As of May 27, 2022, the state reported a reduction for the 2020 and 2021 calendar years that totals three billion six hundred ninety-four million six hundred fifty-three thousand two hundred forty-nine dollars;
(D)
This amount exceeds the total of all the funds that have yet to be reported to the United States department of the treasury; and
(E)
Therefore, any money in the fund or transferred from the fund to a recipient fund is available to be reported as being an expenditure for the provision of government services.
(III)
The state controller may report the expenditure of any money in or transferred from the"American Rescue Plan Act of 2021" that originated from the coronavirus state fiscal recovery fund as a government service to the extent of the reduction in the state's revenue due to the COVID-19 public health emergency relative to the revenues the state collected for the state fiscal year 2018-19, if the description is applicable, regardless of whether the purpose of the expenditure is also described as being to respond to the public health emergency with respect to COVID-19 or its negative economic impacts.
(b)
The office and the state controller shall establish compliance requirements concerning the use of money that originated from the coronavirus state fiscal recovery fund for any department that receives an appropriation from the fund or a recipient fund or any person that receives money from a department. The office and the state controller may establish compliance requirements for money that originates from the ARPA refinance state money cash fund created in section 24-75-226.5. If a department or person fails to comply with these requirements, then:
(I)
A department shall, with approval by the office and state controller, identify the best method and fund source to be used to repay the fund or a recipient fund for the money expended on noncompliant functions, and, to the extent feasible, repay the fund or recipient fund;
(II)
A person shall, to the extent possible, repay any money received by the state from the fund or recipient fund that is related to the noncompliance; and
(III)
The state controller may, in his or her discretion, reduce or eliminate all unexpended appropriations from the fund or a recipient fund for the department.
(c)
The office and the state controller shall establish reporting and record-keeping requirements for any department that expends money from the fund or a recipient fund or any person that receives the money from a department. To expend money from the fund or recipient fund, a department and the person must comply with these requirements.
(d)
The office shall provide guidance on program evaluation, including exemptions from evaluation, evaluation criteria, implementation guidance, and selection of independent evaluators. To expend money from the fund or a recipient fund, a department or person that receives money from a department must comply with any program evaluation requirements established by the office.
(e)
The office shall provide the joint budget committee with a yearly performance report that consists of the information that the state controller provides the secretary under subsection (5)(a) of this section and any other information, including program evaluation information, that the office determines to be relevant. Money in the fund or a recipient fund is not subject to the reporting requirements set forth in section
24-33.5-717
.
(f)
The general assembly may appropriate money from the fund or the revenue loss restoration cash fund created in section
24-75-227
to the department of personnel for use by the state controller and to the office for any direct or indirect expenses related to the administration of this subsection (5).
(g)
The compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller apply to a person regardless of whether the person is a beneficiary or a subrecipient and regardless of whether the person receives the money directly from a department or from a subrecipient.
(6)
Money transferred to the state highway fund and the multimodal transportation and mitigation options fund in accordance with section
24-75-219 (7)
, to the workers, employers, and workforce centers cash fund in accordance with section
24-75-231 (2)(b)(III)
, and to the revenue loss restoration cash fund in accordance with section
24-75-227 (2)(b)(III)(A)
are subject to the requirements of this section as if they were recipient funds.
(6.5)
(a)
The governor and the state controller shall jointly submit a report to the joint budget committee, the speaker of the house of representatives, the minority leader of the house of representatives, the president of the senate, and the minority leader of the senate, as described in this subsection (6.5).
(b)
On or before September 15, 2024, the governor and state controller shall submit a report that includes:
(I)
The total expenditure by the state of money that originated from the coronavirus state fiscal recovery fund and related adjustments to the general fund, as described in subsection (4.1) of this section, including the amount expended from the fund by each department for personal services for the 2023-24 state fiscal year from the money appropriated pursuant to subsection (4)(a)(IV) of this section; and
(II)
An explanation of any further actions that the governor and any state department will take to ensure that money that originated from the coronavirus state fiscal recovery fund is fully expended in compliance with the "American Rescue Plan Act of 2021".
(c)
On or before February 15, 2025, the governor and the state controller shall submit a report that includes updated information about each of the subjects required in the report described in subsection (6.5)(b)(I) of this section and any expenditure from the fund pursuant to subsection (4.2) of this section, including the amount expended from the fund by each department as of December 31, 2024.
(7)
This section is repealed, effective July 1, 2027.
Amended by 2024 Ch. 429,§ 2, eff. 6/5/2024.
Amended by 2022 Ch. 271, § 1, eff. 5/27/2022.
Amended by 2022 Ch. 137, § 1, eff. 4/25/2022.
Added by 2021 Ch. 221, § 1, eff. 6/11/2021 except that subsection (6) became effective 6/17/2021.
See 2021 Ch. 221, § 4.
This section takes effect June 11, 2021; however, section 4(2) of chapter 221 (SB 21-288), Session Laws of Colorado 2021, provides that subsection (6) of this section takes effect only if SB 21-260 (chapter 250) becomes law and takes effect either upon the effective date of SB 21-288 or SB 21-260, whichever is later. SB 21-288 became law and took effect June 11, 2021, and SB 21-260 took effect June 17, 2021.