Concerning the repeal of the bond assistance program administered by the department of personnel, and, in connection therewith, transferring the balance of the bond assistance program cash fund to the general fund.
Summary
HB26-1388 repeals the state’s bond assistance program within the Department of Personnel’s state procurement equity program. The program currently helps historically underutilized businesses and other small businesses offset the cost of obtaining surety bonds required to compete for state procurement opportunities. The bill also directs the state treasurer to transfer the unexpended and unencumbered balance of the bond assistance program cash fund to the general fund on June 30, 2026.
The measure preserves the department’s ability to use any remaining encumbered money in the cash fund only to satisfy existing obligations tied to the program. The repeal of the statutory subsection becomes effective December 1, 2027, allowing time for any outstanding commitments to be completed before the program is fully removed from law.
Impact
The bill amends Colorado Revised Statutes section 24-103-1104, which governs the state procurement equity program, by eliminating the bond assistance program component and associated cash fund provisions. It shifts any remaining unspent, unobligated program funds into the general fund and limits the use of any encumbered balance to existing liabilities. The bill therefore reduces a procurement-support tool for small and historically underutilized businesses seeking state contracting opportunities, while increasing general fund resources.
Sentiment
The available record shows no committee transcript debate or recorded votes, so there is no documented opposition or support beyond the bill’s advancement and final enactment. The bill’s inclusion in the appropriations process and its signed status suggest it was treated as a budgetary or program-restructuring measure rather than a controversial policy change. Overall, the sentiment appears neutral to favorable from a legislative process standpoint, with no visible public contention in the provided materials.
Contention
The main policy issue is whether the state should continue subsidizing surety bond costs for historically underutilized and small businesses pursuing state contracts. Supporters of repeal likely view the program as no longer necessary or as a source of funds better used in the general fund, while potential critics would be small businesses and procurement equity advocates who may see the program as an important barrier-reduction tool. The bill also raises a narrower administrative concern about ensuring existing encumbrances are paid before the program is fully repealed.