Concerning using money in the diseased livestock indemnity fund to address threats to livestock health.
Summary
HB26-1067 expands the permitted uses of Colorado’s diseased livestock indemnity fund. Under current law, that fund is primarily used to compensate livestock owners when herds are sold for slaughter or destroyed because they were exposed to or diagnosed with an infectious or contagious disease. The bill adds authority for the commissioner of agriculture, on the recommendation of the state veterinarian, to use fund money to prepare for and respond to emerging livestock-health threats, including infectious or contagious diseases and biological or chemical contaminants that pose a threat to livestock.
The bill also renames the fund the “livestock health preparedness, response, and diseased livestock indemnity fund” to reflect its broader purpose. It preserves the existing funding sources for the account, including unexpended personnel appropriations and civil penalties collected under the Livestock Health Act, and it does not increase the total amount of money in the fund. The measure includes a one-time transfer of $250,000 from the fund to the general fund on June 30, 2025, with that transfer provision repealed July 1, 2026.
Impact
HB26-1067 amends Colorado Revised Statutes sections 35-50-114 and 35-50-118. It broadens the Colorado Department of Agriculture’s authority to spend money from the livestock indemnity fund on preparedness and response activities, not just indemnification after disease exposure or destruction of herds. It also changes the statutory name of the fund and continues to direct civil penalties under the Livestock Health Act into that fund. The bill affects livestock owners, the Department of Agriculture, and the state veterinarian by giving the state more flexibility to respond to animal-health emergencies and contamination threats.
Sentiment
The bill appears to have been viewed generally favorably as a practical animal-health and emergency-preparedness measure. Its purpose is framed as strengthening the state’s ability to respond to threats before they become widespread livestock losses, while preserving the fund’s existing role in compensating owners for disease-related herd destruction. The available record shows no committee transcript or recorded vote opposition, and the bill ultimately became law when signed by the governor.
Contention
The main policy question raised by the bill is whether money in a fund historically dedicated to indemnifying livestock owners should also be used for broader preparedness and response activities. Supporters would likely emphasize the need for faster state action against emerging infectious, biological, or chemical threats to livestock, while any concern would center on whether expanding uses could dilute resources available for direct indemnity payments. Another point of interest is the temporary $250,000 transfer to the general fund, though the bill preserves the fund’s ongoing revenue streams and does not change the overall appropriation structure.