Bill > HB1396

This bill modifies the Disaster Emergency Fund in Colorado by establishing new definitions and setting limits on fund balances and the duration of disaster responses. It defines "close out" as the process where the Department of Public Safety confirms all disaster response work is complete and the Office of State Planning and Budgeting removes the specific disaster's subaccount from the fund, returning any remaining money to its original source. "Unencumbered" is defined as money not reserved for a disaster declared by the Governor. The bill also stipulates that the annual unencumbered balance of the Disaster Emergency Fund cannot exceed $200 million, with any excess to be transferred to the General Fund after August 12, 2026. Furthermore, it mandates that federally declared disasters must be closed out within three years of the last recorded financial activity, and state-only disasters within eight years, with reports to the Joint Budget Committee to include information on these closed-out disasters and any returned funds.