HB 26-1393

HB 26-1393 is a Colorado bill that changes how certain funds, specifically those for public school construction and health facility construction, are managed. Instead of having an annual limit on the amount they can keep in reserve, these funds will only need to reduce their reserves if they exceed a maximum level for three years in a row. The governor has signed this bill into law, meaning it is now official state policy. This affects how money is handled and potentially saved in these construction funds over multiple years.

Official Summary

Joint Budget Committee. Under existing law, cash funds are subject to a maximum amount of uncommitted funds that may be held in reserve at the end of each fiscal year (maximum reserve). If a fund's uncommitted reserves exceed the maximum reserve, the entity that imposes fees that are deposited in the fund shall reduce the amount of one or more of the fees to an amount calculated to reduce the uncommitted reserves to an amount that does not exceed the maximum reserve.     The bill exempts the public school construction and inspection cash fund and the health facility construction and inspection cash fund from the annual maximum reserve limitations. Instead, the funds are subject to the same substantive requirements if the uncommitted reserves of the fund exceed the maximum reserve for 3 consecutive fiscal years.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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