Colo. Rev. Stat. § 26-2-306, Trafficking in food stamps

(1) Any person who obtains, uses, transfers, or disposes of food stamps in the manner specified in paragraphs (a) to (c) of this subsection (1) commits the offense of trafficking in food stamps. A person who traffics in food stamps includes:

(a) Any bona fide recipient of food stamps, or his authorized representative who knowingly transfers food stamps to another who does not, or does not intend to, use the said food stamps for the benefit of the food stamp household for whom the food stamps were intended as the same is defined in the rules and regulations of the state department;

(b) Any person who knowingly acquires, accepts, uses, or transfers to another for consideration food stamps not issued to him or an authorized representative or to a member of a food stamp household of which he is a member by the state department or another authorized issuing agency in another state;

(c) Any person who knowingly receives, possesses, alters, transfers, or redeems food stamps received, used, or transferred in violation of any federal statute.

(2) Trafficking in food stamps is:

(a) (Deleted by amendment, L. 2007, p. 1696, � 15, effective July 1, 2007.)

(b) A petty offense if the amount is less than three hundred dollars;

(b.5) A class 2 misdemeanor if the amount is three hundred dollars or more but less than one thousand dollars;

(b.7) A class 1 misdemeanor if the amount is one thousand dollars or more but less than two thousand dollars;

(d) A class 5 felony if the amount is five thousand dollars or more but less than twenty thousand dollars;

(e) A class 4 felony if the amount is twenty thousand dollars or more but less than one hundred thousand dollars;

(f) A class 3 felony if the amount is one hundred thousand dollars or more but less than one million dollars; and

(g) A class 2 felony if the amount is one million dollars or more.

(3) When a person commits the offense of trafficking in food stamps twice or more within a period of six months, two or more of the offenses may be aggregated and charged in a single count, in which event the offenses so aggregated and charged shall constitute a single offense.

(4) As used in this section, food stamps means coupons issued pursuant to the federal Food Stamp Act, 7 U.S.C. 2011 to 2029, as amended.

Source: L. 88: Entire section added, p. 714, � 24, effective July 1. L. 93: (2) and (3) amended, p. 1737, � 31, effective July 1. L. 98: (2)(b) and (2)(c) amended, p. 1440, � 20, effective July 1; (2)(b), (2)(c), and (3) amended, p. 798, � 14, effective July 1. L. 2002: (2) amended, p. 1539, � 274, effective October 1. L. 2007: (2) and (3) amended, p. 1696, � 15, effective July 1. L. 2009: (3) amended, (HB 09-1334), ch. 244, p. 1100, � 5, effective May 11. L. 2021: (2)(b), (2)(b.5), (2)(c), and (2)(d) amended and (2)(b.7), (2)(e), (2)(f), and (2)(g) added, (SB 21-271), ch. 462, p. 3243, � 487, effective March 1, 2022. L. 2022: (3) amended, (HB 22-1229), ch. 68, p. 346, � 32, effective March 1.

Editor's note: Section 47 of chapter 68 (HB 22-1229),Session Laws of Colorado 2022, provides that the act amending subsection (3) is effective March 1, 2022, but the governor did not approve the act until April 7, 2022.

Cross references: (1) For other fraudulent acts relating to public assistance, see � 26-1-127.

(2) For the legislative declaration contained in the 2002 act amending subsection (2), see section 1 of chapter 318, Session Laws of Colorado 2002; for the legislative declaration contained in the 2007 act amending subsections (2) and (3), see section 1 of chapter 384, Session Laws of Colorado 2007; for the legislative declaration contained in the 2009 act amending subsection (3), see section 5 of chapter 244, Session Laws of Colorado 2009.

26-2-307. Fuel assistance payments - eligibility for federal standard utility allowance - supplemental utility assistance fund established - definitions - repeal. (1) (a) On and after July 1, 2024, the state department shall implement a program to make fuel assistance payments by crediting the fuel assistance payments to recipients' electronic benefits transfer service accounts. If a recipient already receives cash assistance from another state public assistance program, then the fuel assistance payment may be issued through the same payment mechanism as the other cash assistance that the recipient receives.

(b) (I) The state department shall make the fuel assistance payments to eligible households that receive SNAP benefits but that do not receive assistance under LEAP in order to qualify those households for the standard utility allowance to maximize their SNAP benefits.

(II) To help the state department maximize the number of households that are receiving both the SNAP and LEAP benefits and facilitate the identification of those households that receive SNAP benefits and qualify for the fuel assistance payments, the state department shall develop a database connection between the LEAP eligibility system and the Colorado benefits management system.

(III) Repealed.

(III.5) (A) For the 2022-23 state fiscal year, the general assembly shall appropriate two million dollars from the economic recovery and relief cash fund created in section 24-75-228 to the state department for the purposes of implementing this section.

(B) The use of money appropriated pursuant to this subsection (1)(b)(III.5) must conform with the allowable purposes set forth in the federal American Rescue Plan Act of 2021, Pub.L. 117-2, as amended. The state department shall spend or obligate such appropriation in accordance with section 24-75-226 (4)(d).

(IV) Repealed.

(V) On or before April 1, 2024, and on or before April 1 of each year thereafter, the state department shall submit a budget to the organization and the commission to include the state department's administrative costs to implement the program, including the cost to issue payments to recipients' electronic benefits transfer cards for payments made pursuant to subsection (1)(a) of this section, and the projected number of eligible households that the state department identifies as receiving SNAP benefits but that are not receiving assistance under LEAP, including an estimated number of new SNAP cases that the state department will approve during the upcoming federal fiscal year. Based on the budget that the state department submits, the organization shall:

(A) Calculate the amount of money from the energy assistance system benefit charge collected pursuant to section 40-8.7-104 (2.5) that it allocates as part of its budget prepared pursuant to section 40-8.7-108 (3) for use by the state department to make fuel assistance payments and to implement the program;

(B) Transmit the money to the state department on or before July 1, 2024, and on or before July 1 of each year thereafter.

(f) On or before October 1, 2022, the state department shall submit a budget to the organization and the commission to cover the state department's administrative costs to set up the program. Based on the budget that the state department submits, the organization shall:

(I) Calculate the amount of money from the energy assistance system benefit charge collected pursuant to section 40-8.7-104 (2.5) that it allocates as part of its budget prepared pursuant to section 40-8.7-108 (3) for use by the state department to set up the program; and

(II) Transmit the money to the state department on or before March 1, 2023.

(2) (a) The supplemental utility assistance fund, referred to in this subsection (2) as the fund, is hereby created in the state treasury. The fund consists of money credited to the fund pursuant to section 40-8.7-108 (2)(b) and any other money that the general assembly may appropriate or transfer to the fund.

(b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund.

(c) Money in the fund is continuously appropriated to the state department for use in accordance with subsection (1) of this section.

(3) As used in this section, unless the context otherwise requires:

(a) Commission means the legislative commission on low-income energy and water assistance created in section 40-8.5-103.5 (1).

(b) Electronic benefits transfer service or EBT means the service that the state department implements pursuant to section 26-2-104 (2) to administer the delivery of public assistance payments and food stamps to recipients.

(c) Fuel assistance payment means an annual payment that, when made to an eligible household identified pursuant to subsection (1) of this section, makes that household eligible to receive the standard utility allowance.

(d) LEAP means the low-income energy assistance program specified in section 26-2-122.5.

(e) Organization has the meaning set forth in section 40-8.7-103 (4).

(f) Outside funds means:

(I) Federal funds; or

(II) Gifts, grants, or donations from public or private sources.

(g) Program means the fuel assistance payment program implemented under subsection (1)(a) of this section.

(h) SNAP means the supplemental nutrition assistance program established pursuant to this part 3.

(i) Standard utility allowance means the heating and cooling standard utility allowance authorized in the federal supplemental nutrition assistance program regulations promulgated by the food and nutrition service in the United States department of agriculture.

Source: L. 2021: Entire section added, (HB 21-1105), ch. 488, p. 3492, � 1, effective September 7. L. 2022: IP(1)(f) and (1)(f)(II) amended, (HB 22-1018), ch. 109, p. 497, � 1, effective April 21; (1)(a), IP(1)(b), IP(1)(b)(V), (1)(b)(V)(B), and IP(1)(d) amended, (1)(b)(III), (1)(b)(IV), (1)(c), and (1)(e) repealed, and (1)(b)(III.5) and (1)(d.1) added, (HB 22-1380), ch. 375, p. 2663, � 3, effective June 3. L. 2024: (1)(b)(III.5)(B) amended, (HB 24-1466), ch. 429, p. 2943, � 31, effective June 5; (1)(a) amended, (HB 24-1407), ch. 81, p. 274, � 5, effective July 1; (1)(b) amended, (HB 24-1450), ch. 490, p. 3421, � 66, effective August 7.

Editor's note: (1) Subsection (1)(d.1) provided for the repeal of subsection (1)(d) and (1)(d.1), effective September 1, 2022. (See L. 2022, p. 2663.)

(2) Amendments to subsection (1)(b)(III.5)(B) by HB 24-1450 and HB 24-1466 were harmonized.

Cross references: For the legislative declaration in HB 22-1380, see section 1 of chapter 375, Session Laws of Colorado 2022. For the legislative declaration in HB 24-1466, see section 1 of chapter 429, Session Laws of Colorado 2024.

26-2-308. Colorado employment first - supplemental nutrition assistance program - federal match - legislative declaration - definition - repeal. (Repealed)

Source: L. 2021: Entire section added, (HB 21-1270), ch. 251, p. 1479, � 1, effective June 17. L. 2022: (4) and (5) amended, (HB 22-1380), ch. 375, p. 2664, � 4, effective June 3.

Editor's note: Subsection (5) provided for the repeal of this section, effective July 1, 2024. (See L. 2022, p. 2664.)

26-2-309. Summer electronic benefits transfer for children program - creation - rules - legislative declaration - definitions - repeal. (1) (a) The general assembly finds and declares that:

(I) Programs that provide summer food benefits to students from low-income households are proven to reduce childhood hunger and improve diet quality, and they help to ensure that students return to classrooms in the fall ready to learn;

(II) The United States congress recently created the federal summer electronic benefits transfer for children program as a permanent program to provide nutritional benefits to eligible students for the months when students are not in school;

(III) States that administer the federal summer electronic benefits transfer for children program will be able to provide a federally funded benefit of forty dollars, adjusted for inflation, per eligible student per summer month in the form of cash-like benefits on an electronic benefits card to purchase food from retail food stores that are approved to participate in the federal supplemental nutrition assistance program;

(IV) By participating in the federal summer electronic benefits transfer for children program, Colorado will receive reimbursement for fifty percent of the state's administrative costs; and

(V) Under the federal summer electronic benefits transfer for children program, over three hundred thousand Colorado students will gain access to food benefits, totaling between thirty to thirty-five million dollars in federally funded benefits.

(b) The general assembly, therefore, declares it is necessary for the state to authorize and provide resources to the department of human services and the department of education to develop and administer the summer electronic benefits transfer for children program.

(2) As used in this section, unless the context otherwise requires:

(a) National school breakfast program means the federal school breakfast program created in 42 U.S.C. sec. 1773, as amended.

(b) National school lunch program means the federal school lunch program created in the Richard B. Russell National School Lunch Act, 42 U.S.C. sec. 1751 et seq, as amended.

(c) School food authority means the governing body that is responsible for the administration of one or more schools and has the legal authority to operate the national school lunch program or national school breakfast program or would otherwise be approved by the United States department of agriculture food and nutrition service to operate the national school lunch program or national school breakfast program.

(d) Summer electronic benefits transfer for children program or program means the federal summer electronic benefits transfer for children program created in the federal Consolidated Appropriations Act, 2023, Pub.L. 117-328 and subsection (3) of this section.

(3) (a) The summer electronic benefits transfer for children program is created in the state department. The purpose of the program is to provide summer food benefits to eligible students in low-income households during summer months when students are not in school pursuant to federal law. Eligible students may receive a federally funded benefit in an amount prescribed by federal law in the summer months through cash-like benefits on an electronic benefits card to purchase food from retail food stores that are approved to participate in the federal supplemental nutrition assistance program.

(b) The state department is designated as the lead agency to administer the program in the state, in cooperation with the federal government pursuant to the federal Consolidated Appropriations Act, 2023, Pub.L. 117-328. The state department may enter into an agreement with the secretary of the United States department of agriculture food and nutrition service to accept federal program benefits and disburse benefits to qualified households pursuant to federal law.

(4) (a) To administer the program, the state department shall:

(I) Establish eligibility criteria and distribute benefits consistent with federal law;

(II) Develop procedures to pursue claims for benefit recovery;

(III) Develop an outreach plan and conduct outreach to community-based organizations and households;

(IV) Develop and provide resources, training, and technical assistance to local community-based organizations, including, but not limited to, family resource centers, as defined in section 26.5-3-102; nonprofit organizations; and emergency food providers and specifically to local community-based organizations located in rural areas, to conduct outreach and provide support and information to parents, legal guardians, and emancipated students seeking to access program benefits;

(V) Develop and provide resources and technical assistance, including providing contact information for local community-based organizations described in subsection (4)(a)(IV) of this section, to local education providers and school food authorities, specifically local education providers and school food authorities located in rural areas; and

(VI) Promulgate rules to manage household and administrative errors and any other rules necessary to comply with federal law.

(b) To administer the program, the department of education shall:

(I) Develop an outreach plan and conduct outreach to local education providers, as defined in section 22-16-103, and school food authorities; and

(II) Provide technical assistance to school food authorities, specifically school food authorities located in rural areas.

(I) Develop protocols for the sharing of relevant data necessary for the administration of the program and outreach to households with students who are eligible for the program;

(II) Streamline data collection; and

(III) Develop and provide an opt-out process for parents, legal guardians, and emancipated students, to the extent allowable pursuant to the federal requirements for the program.

(5) (a) Each school food authority shall provide to the department of education the minimum student-level data necessary to gather and maintain eligibility information required for the program by the United States department of agriculture food and nutrition service. The department of education shall share the data with the state department for the administration of the program.

(b) In collecting data from school food authorities pursuant to subsection (5)(a) of this section, the department of education is not subject to the advance notice data reporting requirement described in section 22-2-306 (3)(a).

(c) The data described in this subsection (5) must be available to the state department and the department of education for a period not to exceed federal retention requirements. As required by federal or state law, the data must be treated as protected personally identifiable information consistent with the federal Family Educational Rights and Privacy Act of 1974, 20 U.S.C. sec. 1232g, as amended; the Student Data Transparency and Security Act, article 16 of title 22; and all other applicable state and federal laws.

(6) This section does not prevent the state department or the department of education from complying with the federal requirements for the program pursuant to federal law and regulation for the state to qualify for federal funds and to maintain the program within the limits of available appropriations.

(7) (a) For fiscal years 2023-24 and 2024-25, the state department and the department of education are exempt from the requirements of the Procurement Code, articles 101 to 112 of title 24, when selecting vendors to implement and administer the program.

(b) This subsection (7) is repealed, effective July 1, 2026.

(8) (a) For state fiscal year 2023-24, the general assembly shall appropriate at least three million one hundred forty thousand four hundred twelve dollars to the state department from the general fund for purposes of this section. Any money appropriated pursuant to this subsection (8)(a) that is not expended prior to July 1, 2024, remains available for expenditure for the same purpose in the 2024-25 state fiscal year without further appropriation.

(b) For state fiscal year 2024-25, the general assembly shall appropriate at least one million eight hundred thousand three hundred twenty-three dollars for purposes of this section. Any money appropriated pursuant to this subsection (8)(b) that is not expended prior to July 1, 2025, remains available for expenditure for the same purpose in the 2025-26 state fiscal year without further appropriation.

Source: L. 2023, 1st Ex. Sess.: Entire section added, (SB 23B-002), ch. 5, p. 19, �1, effective November 28.

26-2-310. Restaurant meals program - federal approval - eligible SNAP recipients - report - rules - definitions. (1) As used in this section, unless the context otherwise requires:

(a) Office means the office of economic security in the department of human services.

(b) Program means the restaurant meals program implemented pursuant to this section.

(d) SNAP recipient means an individual in a household who is receiving benefits from SNAP.

(e) USDA means the United States department of agriculture food and nutrition service.

(2) (a) No later than January 1, 2026, the state department shall submit an application to the USDA to implement a restaurant meals program that allows SNAP recipients to purchase hot or prepared foods at participating restaurants.

(b) A SNAP recipient is eligible for participation in the program if the SNAP recipient meets the USDA's eligibility criteria for the program.

(c) Subject to available appropriations, after receiving approval from the USDA to implement the program, the office shall develop and publish on its website an implementation plan for the program and the USDA's eligibility criteria for SNAP recipients.

(3) (a) After developing and publishing the implementation plan pursuant to subsection (2)(c) of this section, and subject to available appropriations, the state department shall adopt rules for the administration and implementation of the program. At a minimum, the rules must:

(I) Address how the state department will verify a SNAP recipient's eligibility pursuant to subsection (2) of this section; and

(II) Establish the state-level application process and eligibility requirements for restaurants, including, at a minimum, that participating restaurants:

(A) Are licensed by the department of public health and environment pursuant to section 25-4-1603; and

(B) Are authorized by the food and nutrition services agency of the USDA to accept SNAP benefits.

(b) The rules adopted pursuant to subsection (3)(a) of this section may encourage participating restaurants to:

(I) Utilize practices of procuring locally produced foods for hot or prepared meals;

(II) Serve foods that represent diverse cultural traditions;

(III) Serve geographically diverse regions of the state; and

(IV) Offer the option for a patron to choose how much to pay for their meal in underinvested communities.

(4) In addition to technical assistance provided by the USDA, subject to available appropriations, the office may provide technical assistance to restaurants applying to participate in the program as well as to participating restaurants. The state department may contract with a third-party vendor to provide additional outreach and technical assistance pursuant to this subsection (4).

(5) In its annual report to the committees of reference made pursuant to section 2-7-203, the state department shall provide an update concerning the progress toward implementing the restaurant meals program. At a minimum, the update must include the names and addresses of all approved participating restaurants and the number of SNAP recipients eligible to participate in the program, by county.

Source: L. 2025: Entire section added, (SB 25-169), ch. 189, p. 838, � 1, effective May 13.