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ColoradoSB25-1672025 Regular SessionSenateWALLET

Invest State Funds to Benefit Communities

Sponsored By: Judy Amabile (Democratic), Lisa Frizell (Republican), Meghan Lukens (Democratic), Shannon Bird

Signed by Governor

Education & School Finance (Pre & K-12)State GovernmentState Revenue & Budget

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Down-payment help for public school employees

The law creates homebuying help for public school employees, with the down-payment program established by July 1, 2026. Guidelines must prioritize first-time buyers who use the home as their main home. Assistance must cover at least 15% of the purchase price. Program investments must reach the greater of 6% of the Public School Fund or $100 million by July 1, 2028. By July 1, 2030, the target rises to the greater of 12% or $200 million. Total program investment cannot exceed qualifying housing investments plus down-payment assistance granted. The treasurer must aim to put 75% toward down-payment help and 25% toward homeownership investments in rural and underserved communities. The program shares in home appreciation, but its share cannot exceed its contribution's share of the purchase price. The program, not the borrower or manager, bears profit or loss on that appreciation share. The Colorado Housing and Finance Authority manages the program unless it declines, in which case the board selects a replacement. When the authority manages it, assistance must accompany a first mortgage with an interest rate at or below prevailing rates.

School funds support Colorado community investments

The law creates a Community Investment Portfolio within Colorado's Public School Fund. By July 1, 2032, the treasurer must invest at least 20% of the fund's value there. Investments must aim to deliver measurable benefits for Colorado schoolchildren, families, or communities while earning financial returns. Allowed investments include school bonds, qualifying housing and mortgage investments, and loans to specified community lenders. Some investments may earn below-market returns.

New investment tools for school funds

Public School Fund investments must seek to preserve principal and benefit public schools across generations through community investing. They must follow the Uniform Prudent Investor Act and the investment board's direction and policy. The treasurer gains authority to use board-approved mutual funds, index funds, and other allowed investments, excluding direct corporate investments. At least one of the treasurer's three board appointees must have community investment expertise. The board can hire private investment professionals through standard public bidding. When measuring realized principal losses, the fund can count gains from the preceding 12 months. The window for later gains to offset losses increases from 18 to 24 months.

School investment income pays program costs

The law provides the Treasury Department $375,900 to administer the act in state fiscal year 2025-26. This includes $300,000 for staff costs based on two added full-time positions and $75,900 for operating costs. The money comes from Public School Fund investment interest and income. Starting in 2025-26, lawmakers must also fund costs tied to installment payments to the program manager each year. Those annual amounts are not specified and also come from the fund's investment interest and income.

Sponsors & Cosponsors

Sponsors

  • Judy Amabile

    Democratic • Senate

  • Lisa Frizell

    Republican • Senate

  • Meghan Lukens

    Democratic • House

  • Shannon Bird

    Affiliation unavailable

Cosponsors

  • Chad Clifford

    Democratic • House

  • Emily Sirota

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Jacque Phillips

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Katie Stewart

    Democratic • House

  • Lorena Garcia

    Democratic • House

  • Meg Froelich

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Naquetta Ricks

    Democratic • House

  • Tisha Mauro

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Cleave Simpson

    Republican • Senate

  • Dafna Michaelson Jenet

    Democratic • Senate

  • Dylan Roberts

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Kyle Mullica

    Democratic • Senate

  • Katie Wallace

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Lindsey Daugherty

    Democratic • Senate

  • Matt Ball

    Democratic • Senate

  • Marc Snyder

    Democratic • Senate

  • Nick Hinrichsen

    Democratic • Senate

  • Tony Exum

    Democratic • Senate

  • Tom Sullivan

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 171 • No: 47

Senate vote • 5/5/2025

House amendments: Repass

Yes: 24 • No: 11

Senate vote • 5/5/2025

House amendments: Concur

Yes: 35 • No: 0

House vote • 5/2/2025

Third reading: Bill

Yes: 45 • No: 19

House vote • 5/1/2025

Refer Senate Bill 25-167 to the Committee of the Whole.

Yes: 9 • No: 2

House vote • 4/24/2025

Refer Senate Bill 25-167 to the Committee on Appropriations.

Yes: 12 • No: 1

Senate vote • 4/17/2025

Third reading: Bill

Yes: 27 • No: 8

Senate vote • 4/11/2025

Refer Senate Bill 25-167, as amended, to the Committee of the Whole.

Yes: 6 • No: 1

Senate vote • 4/1/2025

Refer Senate Bill 25-167, as amended, to the Committee on Appropriations.

Yes: 6 • No: 3

Senate vote • 4/1/2025

Adopt amendment L.005 (Attachment F)

Yes: 7 • No: 2

Actions Timeline

  1. Governor Signed

    6/4/2025House

  2. Signed by the President of the Senate

    5/12/2025Senate

  3. Sent to the Governor

    5/12/2025House

  4. Signed by the Speaker of the House

    5/12/2025House

  5. Senate Considered House Amendments - Result was to Concur - Repass

    5/5/2025Senate

  6. House Third Reading Passed - No Amendments

    5/2/2025House

  7. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    5/1/2025House

  8. House Second Reading Special Order - Passed with Amendments - Floor

    5/1/2025House

  9. House Committee on Education Refer Unamended to Appropriations

    4/24/2025House

  10. Introduced In House - Assigned to Education

    4/22/2025House

  11. Senate Third Reading Passed - No Amendments

    4/17/2025Senate

  12. Senate Third Reading Laid Over Daily - No Amendments

    4/16/2025Senate

  13. Senate Second Reading Passed with Amendments - Committee, Floor

    4/15/2025Senate

  14. Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

    4/11/2025Senate

  15. Senate Committee on Finance Refer Amended to Appropriations

    4/1/2025Senate

  16. Introduced In Senate - Assigned to Finance

    2/18/2025Senate

Bill Text

  • Engrossed

    PDF

  • Final Act

    PDF

  • Introduced

    PDF

  • Reengrossed

    PDF

  • Rerevised

    PDF

  • Revised

    PDF

  • Senate Appropriations Preamend

    PDF

  • Senate Finance Preamend

    PDF

  • Signed Act

    PDF

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