1. (1) The local school food purchasing program is created in the department to reimburse participating providers for the purchase of Colorado grown, raised, or processed products pursuant to this section.

2. (2)

   1. (a) A school district, district charter school, institute charter school, board of cooperative services, the Colorado school for the deaf and the blind, an approved facility school or facility, or a residential child care facility may apply to the department to participate in the purchasing program to receive reimbursement for purchase of Colorado grown, raised, or processed products pursuant to this section.

   2. (b)

      1. (I) [Editor's note: This version of subsection (2)(b)(I) is effective unless the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election or unless the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] The department shall select participating providers that served fewer than two million one hundred fifty thousand school lunches in the immediately preceding school year. The department shall create a form for participating providers to track and report the Colorado grown, raised, or processed products purchased.

      2. (b)

         1. (I) [Editor's note: This version of subsection (2)(b)(I) is effective if the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election.] The department shall select participating providers that served a number of school lunches determined by the department pursuant to subsection (2)(b)(I.5) of this section in the school year two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section. The department shall create a form for participating providers to track and report the Colorado grown, raised, or processed products purchased.

         2. (b)

            1. (I) [Editor's note: This version of subsection (2)(b)(I) is effective if the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] The department shall select participating providers that served fewer than two million one hundred fifty thousand school lunches in the school year two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section. The department shall create a form for participating providers to track and report the Colorado grown, raised, or processed products purchased.
            2. (I.5) [Editor's note: Subsection (2)(b)(I.5) is effective if the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election.] The department shall only select participating providers that served fewer than two million one hundred fifty thousand school lunches in the school year two years prior to the school year for which a participating provider is applying for reimbursement pursuant to this section, unless the department determines that it can award reimbursements to those participating providers of at least five cents for every school lunch that the participating provider prepared in the school year two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section or a minimum of one thousand dollars, whichever is greater, in which case the department may select any participating provider for reimbursement pursuant to this section.

            3. (II) The department shall give preference to applicants that:

               1. (A) Demonstrate a commitment to local purchasing or food and agricultural education;
               2. (B) Have a kitchen with the ability to store, prepare, and serve local food products;
               3. (C) Have greater than twenty-five percent of their students eligible for free or reduced price lunch pursuant to the national school lunch program;
               4. (D) [Editor's note: This version of subsection (2)(b)(II)(D) is effective unless the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election or unless the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] Served fewer than one million two hundred fifty thousand school lunches in the immediately preceding school year count; and
               5. (D) [Editor's note: This version of subsection (2)(b)(II)(D) is effective if the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election.] Served fewer than one million two hundred fifty thousand school lunches in the school year count two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section; and
               6. (D) [Editor's note: This version of subsection (2)(b)(II)(D) is effective if the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] Served fewer than one million two hundred fifty thousand school lunches in the school year count two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section; and
               7. (E) Satisfy any other eligibility requirements established by the department.
            4. (III) To the extent possible, in selecting participating providers, the department shall ensure diversity in geographic location and district pupil count.
         3. (c) [Editor's note: This version of subsection (2)(c) is effective unless the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election or unless the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] On or before August 1 of the year following the participating provider's application, and August 1 of each year thereafter through the year after when the participating provider stops participating in the purchasing program, the participating provider shall track and report to the department for the school year in which it applied, and for the immediately preceding school year, the total amount of Colorado grown, raised, or processed products it purchased for student meals and the total number of lunches that it provided to students.
      3. (c) [Editor's note: This version of subsection (2)(c) is effective if the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election.] On or before August 1 of the year following the participating provider's application, and August 1 of each year thereafter through the year after when the participating provider stops participating in the purchasing program, the participating provider shall track and report to the department for the school year in which it applied, and for the school year two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section, the total amount of Colorado grown, raised, or processed products it purchased for student meals and the total number of lunches that it provided to students.
   3. (c) [Editor's note: This version of subsection (2)(c) is effective if the ballot issue described in section 22-82.9-212 is approved by the people at the next statewide election and the ballot issue described in section 22-82.9-213 is rejected by the people at the next statewide election.] On or before August 1 of the year following the participating provider's application, and August 1 of each year thereafter through the year after when the participating provider stops participating in the purchasing program, the participating provider shall track and report to the department for the school year in which it applied, and for the school year two years prior to the school year for which the participating provider is applying for reimbursement pursuant to this section, the total amount of Colorado grown, raised, or processed products it purchased for student meals and the total number of lunches that it provided to students.

3. (3)

   1. (a) In October 2024, and each October thereafter, subject to annual appropriation, the department shall reimburse each participating provider at least five cents for every school lunch that the participating provider prepared in the immediately preceding school year or a minimum of one thousand dollars, whichever is greater; except that a participating provider is not reimbursed for the amount of value-added processed products that exceeds twenty-five percent of the total of the Colorado grown, raised, or processed products it purchased and that the department may prorate these reimbursements as necessary.
   2. (b) Notwithstanding subsection (3)(a) of this section, the maximum amount of reimbursements that may be awarded in any year is five hundred thousand dollars.
   3. (3.5) [Editor's note: Subsection (3.5) is effective if the ballot issue described in section 22-82.9-213 is approved by the people at the next statewide election.] During each October after October 2024 in which the department reimburses providers participating in the purchasing program, the department shall reimburse participating providers in an amount established pursuant to section 22-82.9-211 (3)(c)(I).
4. (4) Reimbursement payments made pursuant to this section accrue to the participating provider's nonprofit school food account.

5. (5)

   1. (a) The state board is authorized to adopt rules to implement the purchasing program.
   2. (b) The department is authorized to monitor the purchasing program to ensure program integrity.
   3. (c) The department shall create, distribute, and collect producer and participating provider surveys required pursuant to section 22-82.9-304.
6. (6) If in any state budget year the department does not expend or encumber the full amount of the appropriation for the purchasing program, up to five percent of the appropriation is available to the department in the next state budget year to pay for the evaluation required pursuant to section 22-82.9-304.

Source: L. 2024: Entire part added, (HB 24-1390), ch. 133, p. 486, § 11, effective April 29. L. 2025: (2)(b)(I), (2)(b)(II)(D), (2)(c), and (3)(a) amended, (SB 25-214), ch. 372, p. 2009, § 8, effective June 3; (2)(b)(I), (2)(b)(II)(D), and (2)(c) amended, and (2)(b)(I.5) and (3.5) added, (HB 25-1274), ch. 402, pp. 2293, 2295, §§ 13, 15, effective (see editor's note).

Editor's note: (1) Section 20(3) of chapter 402 (HB 25-1274), Session Laws of Colorado 2025, provides that section 13 of the act changing this section takes effect on the date of the governor's proclamation, only if, at the November 2025 statewide election, a majority of voters approve the ballot issue referred in accordance with § 22-82.9-212, reject the ballot issue referred in accordance with § 22-82.9-213, and SB 25-214 becomes law. SB 25-214 became law and took effect June 3, 2025.

(2) Section 20(8) of chapter 402 (HB 25-1274), Session Laws of Colorado 2025, provides that section 15 of the act changing this section takes effect on the date of the governor's proclamation, only if, at the November 2025 statewide election, a majority of voters approve the ballot issue referred in accordance with § 22-82.9-213 and SB 25-214 becomes law. SB 25-214 became law and took effect June 3, 2025.

Cross references: For the legislative declaration in SB 25-214, see section 1 of chapter 372, Session Laws of Colorado 2025. For the legislative declaration in HB 25-1274, see section 1 of chapter 402, Session Laws of Colorado 2025.