Colorado 2022 2022 Regular Session

Colorado House Bill HB1256 Introduced / Fiscal Note

Filed 03/09/2022

                    Page 1 
March 9, 2022  HB 22-1256  
 
 
 Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
 
Fiscal Note  
  
 
Drafting Number: 
Prime Sponsors: 
LLS 22-0257  
Rep. Amabile; McCluskie 
Sen. Moreno; Gardner  
Date: 
Bill Status: 
Fiscal Analyst: 
March 9, 2022 
House HHS 
Erin Reynolds | 303-866-4146 
Erin.Reynolds@state.co.us  
Bill Topic: MODIFICATIONS TO CIVIL INVOLUNTARY COMMITMENT  
Summary of  
Fiscal Impact: 
☐ State Revenue 
☒ State Expenditure 
☐ State Transfer 
☐ TABOR Refund 
☒ Local Government 
☐ Statutory Public Entity 
 
The bill makes numerous changes to the state’s involuntary commitment system. 
It will increase state expenditures beginning in FY 2022-23. 
Appropriation 
Summary: 
For FY 2022-23, the bill requires appropriations totaling $143.7 million to the 
Department of Human Services and the Judicial Department. 
Fiscal Note 
Status: 
The fiscal note reflects the introduced bill. 
 
 
Table 1 
State Fiscal Impacts Under HB 22-1256 
 
  
Budget Year 
FY 2022-23 
Out Year 
FY 2023-24 
Out Year 
FY 2024-25 
Out Year 
FY 2025-26 
Revenue 
 
-       -       -       -       
Expenditures 	General Fund $143,778,255  $144,474,344  $201,601,390  $108,123,456  
 	Centrally Approp. -  -  $19,374  $72,491  
 	Total Expenditures $143,778,255  $144,474,344  $201,620,764  $108,195,947  
 	Total FTE 218.1 FTE 237.3 FTE 239.0 FTE 240.6 FTE 
Transfers  - -  - - 
Other Budget Impacts GF Reserve $21,566,738  $21,671,152  $30,240,208  $16,218,518  
 
    Page 2 
March 9, 2022  HB 22-1256  
 
 
Summary of Legislation 
The bill transfers duties relating to the care and treatment of persons with mental health disorders 
from the Office of Behavioral Health to the Behavioral Health Administration (BHA) in the 
Department of Human Services (DHS).  It creates new procedures relating to 72-hour treatment and 
evaluation of a person appearing to have a mental health crisis, as well as procedures to certify short-
term or long-term care and treatment of a person who has a mental health crisis.  The bill also outlines 
processes for engaging with an individual that may be experiencing a behavioral health crisis 
including transport, oversight, care, and access to legal representation.  These provisions are detailed 
below.  
 
Effective ninety days after signing, the administration for Article 65 of Title 27 is transferred to the 
Behavioral Health Administration from the Office of Behavioral Health.  The bill expands the list of 
professionals that can place a mental health hold; updates the involuntary transportation hold; and 
requires court petitions to include recommendations for inpatient or outpatient services. 
 
Effective July 1, 2023, the bill: 
 
 subjects a person who files a malicious or false petition for an evaluation of a respondent to 
criminal prosecution;  
 authorizes a certified peace officer to transport a person to an emergency medical services facility 
(EMS facility), even if a warrant has been issued for the person's arrest, if the certified peace officer 
believes it is in the best interest of the person;  
 authorizes a secure transportation provider to take a respondent into custody and transport the 
person to an EMS facility or designated facility for an emergency mental health hold;  
 expands the list of professionals who may terminate the emergency mental health hold;  
 requires evaluations to be completed using a standardized form approved by the BHA 
commissioner; 
 expands who can initiate a certification to include an advanced practice registered nurse with 
training in psychiatric nursing and prescriptive authority;  
 requires an EMS facility to immediately notify the BHA if a person is evaluated and the evaluating 
professional determines that the person continues to meet the criteria for an emergency mental 
health hold and the initial emergency mental health hold is set to expire before an appropriate 
placement is located;  
 requires the BHA to support the EMS facility in locating an appropriate placement option; and if 
an appropriate placement option cannot be located, the bill authorizes the EMS facility to place 
the person under a second emergency mental health hold and requires the court to immediately 
appoint an attorney; and  
 requires the facility to provide the person with a discharge summary and a copy of the completed 
evaluation; facilitate a follow-up appointment within 7 calendar days after discharge, attempt to 
follow up with the person 48 hours after discharge, and encourage the person to designate a family 
member, friend, or lay person to participate in the person's discharge planning. 
 
   Page 3 
March 9, 2022  HB 22-1256  
 
 
Effective January 1, 2025, the bill: 
 
 authorizes the court to certify a respondent for not more than 3 months for short-term treatment 
and place the respondent in the BHA's custody without the need for an 72-hour emergency mental 
health hold upon a petition of certain individuals;  
 requires the court to commit the respondent to the custody of the BHA if the court finds that 
grounds for certification for short-term treatment have been established;  
 authorizes the judge or magistrate who certified the respondent for short-term treatment to sign 
the notice of certification;  
 requires the notification of certification to include a recommendation whether the certification 
should take place on an inpatient or outpatient basis;  
 authorizes the BHA to delegate physical custody of the respondent to a designated facility; 
 requires an extended certification to be filed with the court at least 30 days prior to the expiration 
of the original certification;  
 establishes requirements for a short-term or long-term certification on an outpatient basis; and 
 requires the outpatient treatment provider, in collaboration with the BHA, to develop a treatment 
plan for the respondent and requiring the BHA to create a one-step grievance process for the 
respondent related to the respondent's treatment plan or provider. 
 
Additionally, the bill:  
 
 establishes a right to an attorney for a person certified for short-term or long-term care and 
treatment, regardless of income;  
 requires the BHA to annually submit a report to the legislature every January 1 on the outcomes 
and effectiveness of the involuntary commitment system, disaggregated by region, including any 
recommendations to improve the system and outcomes for persons involuntarily committed or 
certified; and  
 makes conforming amendments. 
Comparable Crime Analysis 
Legislative Council Staff is required to include certain information in the fiscal note for any bill that 
creates a new crime, changes the classification of an existing crime, or creates a new factual basis for 
an existing crime.  This section outlines data on crimes comparable to the offense in this bill and 
discusses assumptions on future rates of criminal conviction for those offense. 
 
Prior conviction data and assumptions.  This bill creates a new offense of retaliating or discriminating 
against any person or entity involved in a grievance procedure, an unclassified misdemeanor subject 
to a fine of not more than $1,000. The bill also subjects persons filing a malicious or false petition for 
an evaluation subject to criminal prosecution.  To form an estimate on the prevalence of these new 
crimes, the fiscal note analyzed the existing offense of violating confidentiality of public health records 
as a comparable crime.  From FY 2018-19 to FY 2020-21, zero offenders have been sentenced and 
convicted for this existing offense; therefore, the fiscal note assumes that there will be minimal or no 
additional case filings or convictions for the new offense under the bill.  Because the bill is not expected 
to have a tangible impact on criminal justice-related expenditures or revenue at the state or local levels, 
these potential impacts are not discussed further in this fiscal note.  Visit leg.colorado.gov/fiscalnotes 
for more information about criminal justice costs in fiscal notes.  Page 4 
March 9, 2022  HB 22-1256  
 
 
State Expenditures 
The bill increases state General Fund expenditures in the DHS and the Judicial 
Department by the amounts shown in Table 2.  For costs in the DHS, the fiscal note groups them into 
three parts—parts A through C—based on their effective dates.   These costs are explained further 
below. 
 
Table 2 
Expenditures Under HB 22-1256 
 
Cost Components 	FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 
Part A – Statewide Technical Training, Individual Care Coordination, Facility Designation 
Personal Services 	$372,871  $689,156  $774,050  $780,181  
Operating Expenses 	$7,965  $16,335  $17,685  $17,685  
Capital Outlay Costs 	$43,400  $31,000  $6,200  -  
Legal Services 	$177,426  $177,426  $88,713  $88,713  
Insurance/Supplemental Retirement
1
 $86,540  $178,990  $199,626  $201,178  
FTE – Personal Services 	5.3 FTE 11.7 FTE 13 FTE 13.1 FTE 
FTE – Legal Services 	1.0 FTE 1.0 FTE 0.5 FTE 0.5 FTE 
Part A Subtotal 	$688,202  $1,092,907  $1,086,274  $1,087,757  
Part B – Short-term Certification and Community-based Treatment 
Personal Services 	$18,927,395  $20,164,730  $20,164,730  $20,164,730  
Operating Expenses 	$297,810  $303,210  $303,210  $303,210  
Capital Outlay Costs 	$1,395,000  -  -  -  
Contracted Community Beds $4,999,040  $4,999,040  $4,999,040  $4,999,040  
Contracted Hospital Beds 	$8,760,000  $8,760,000  $8,760,000  $8,760,000  
Housing Assistance 	$2,830,750  $2,830,750  $2,830,750  $2,830,750  
Transitional Services 	$7,576,200  $7,576,200  $7,576,200  $7,576,200  
ACT Team Overhead 	$724,640  $724,640  $724,640  $724,640  
Insurance/Supplemental Retirement
1
 $3,892,518  $4,136,167  $4,136,167  $4,136,167  
FTE – Personal Services 	211.8 FTE 224.6 FTE 224.6 FTE 224.6 FTE 
Part B Subtotal 	$49,403,353  $49,494,737  $49,494,737  $49,494,737  
Part C – Mental Health Institute Inpatient Services for Long-term Certifications 
Bed Construction 	$93,600,000  $93,600,000  $93,600,000  -  
Information Technology 	-  $200,000  $25,000  $25,000  
Bed Operating Costs 	-  -  $56,940,000  $56,940,000  
Part C Subtotal 	$93,600,000  $93,800,000  $150,565,000  $56,965,000  
DHS Subtotal 	$143,691,555  $144,387,644  $201,146,011  $107,547,494  
Total DHS FTE 	218.1 FTE 237.3 FTE 237.9 FTE 238.2 FTE 
 
   Page 5 
March 9, 2022  HB 22-1256  
 
 
Table 2 
Expenditures Under HB 22-1256 (Cont.) 
 
Cost Components 	FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 
Judicial Department     
Personal Services 	-  -  $93,089  $223,412  
Operating Expenses 	-  -  $2,470  $5,130  
Capital Outlay Costs 	-  -  $13,120  $720  
Court-appointed Attorneys 	$86,700  $86,700  $86,700  $86,700  
Guardians Ad Litem 	-  -  $156,000  $156,000  
Mental Health Evaluations 	-  -  $104,000  $104,000  
Centrally Appropriated Costs
1
 	-  -  $19,374  $72,491  
FTE – Personal Services 	- 	- 1.1 FTE 2.4 FTE 
Judicial Subtotal 	$86,700  $86,700  $474,753  $648,453  
Grand Total $143,778,255  $144,474,344  $201,620,764  $108,195,947  
Total FTE 218.1 FTE 237.3 FTE 239.0 FTE 240.6 FTE 
1 
Centrally appropriated costs are not included in the bill's appropriation, unless the bill requires 20 FTE or more. 
 
Department of Human Services—Part A.  Part A of the bill requires the DHS to provide technical 
training on emergency transportation holds, individual care coordination for individuals experiencing 
a mental health crisis, a one-step grievance process, facility-level designation, and reporting, as 
detailed below. 
 
 Technical training. The DHS requires 2.0 FTE to develop, oversee, and administer 
profession-specific trainings for peace officers and emergency medical services personnel and 
provide technical assistance to facilities, programs, and counties regarding emergency 
transportation holds. 
 
 Individual care coordination.  The DHS will require a total of 6.1 FTE to implement individual 
care coordination. This includes 1.0 FTE to facilitate individual care coordination, including 
providing tracking and notifications at all steps in the process as well as evaluating an individual's 
long-term certification for treatment and managing the related court petitioning process.  Starting 
in FY 2023-24, 5.1 FTE is required to respond to notifications from emergency medical services 
facilities 24/7 and support the emergency medical services facility in locating an appropriate 
placement option on an inpatient or outpatient basis.   
 
These costs assume that the BHA will not maintain patient treatment records nor patient specific 
forms, instead it will create a form template to be maintained in an individual’s treatment record 
at a facility. Any records requests pursuant to this provision would be a responsibility of the 
facility or program providing the hold services. 
 
 One-step grievance process.  The DHS requires 1.0 FTE to create and oversee the one-step 
grievance process. 
  Page 6 
March 9, 2022  HB 22-1256  
 
 
 Facility designation. The DHS will require 3.0 FTE to provide facility-level annual tiered 
designation, compliance checks, and technical assistance for 147 facilities.  This assumes a ratio of 
one staff per 50 facilities. 
 
 Reporting.  Starting in FY 2024-25, 1.0 FTE is required to collect and report program data, and 
make recommendations to the legislature.  
 
 Legal services.  The DHS requires 1800 hours of legal services in FY 2022-23 and FY 2023-24, and 
900 hours per year starting in FY 2024-25.  Legal services are provided by the Department of Law 
at a cost of $98.57 per hour.  The Department of Law will use 1.0 FTE in the first two years and 
0.5 FTE in third and subsequent years for this work. 
 
Department of Human Services—Part B.  Part B of the bill establishes a new procedure that allows 
the court to certify a respondent for up to three months for short-term treatment in the custody of the 
BHA without a petition, which is assumed to require the BHA to provide custodial oversight of these 
certified individuals. Costs to provide custodial oversight are detailed below. 
 
 Case managers. In CY 2019, there were 6,587 short-term certifications.  Using the substance use 
disorder involuntary commitment system caseload as a proxy, each BHA staff can manage 
62 cases per year, resulting in a need of 106.2 FTE case managers. 
   
 Assertive Community Treatment teams.  Assuming that the Assertive Community Treatment 
(ACT) model will be used to provide treatment to individuals under short-term certification; that 
about half of short-term certifications, or 3,294, will require their services per year, which is 
824 individuals at any given time assuming three month certification; the DHS requires eight ACT 
teams of 14.8 FTE per team.  
 
 Contracted beds.  Further, some individuals will require direct treatment. There were 7,189 total 
certifications (short-term and long-term certifications) in CY 2019. Assuming the state must create 
a system of stable mental health services for this population while in its custody, and that up to 
one percent of individuals will require a bed over the course of each year, the DHS requires 
32 contracted community beds at a cost of $156,220 per bed per year; and 20 contracted hospital 
beds at a cost of $438,000 per bed per year. 
 
 Housing assistance. In addition, the bill requires a treatment plan to be developed for each 
individual in BHA custody.  Assuming that housing will be part of treatment plans for individuals 
that are unhoused and/or transitioning from inpatient care, and that the average length of stay 
will be six months, the DHS requires 60 beds in transitional housing.  Costs assume $100 per bed 
day, plus one contracted case manager per 20 beds, a supervisor, and contract administrator costs. 
 
 Transitional services.  Using the DHS transitional specialist program as a proxy, the DHS requires 
$2,300 per individual, assuming 3,294 per year, for individually based wrap-around services. 
   Page 7 
March 9, 2022  HB 22-1256  
 
 
 Medicaid reimbursement.  Some persons served by the BHA will be eligible for Medicaid and 
services provided under the bill will qualify for Medicaid reimbursement.  However, an estimate 
of the amount of potential Medicaid reimbursements is not available at this time.  To the extent 
Medicaid reimbursement is available, the amount of General Fund required will decrease and be 
offset by an increase in federal funds.  It is assumed that this funding shift will be addressed 
through the annual budget process. 
  
Department of Human Services—Part C.  In CY 2019, there were 602 long-term certifications.  It is 
assumed that individuals on long-term certification will require institute level of care, and will receive 
treatment services for approximately four months and then transition to long-term care in a 
community setting, equating to 1,806 individuals served per fiscal year at the Mental Health Institutes.  
To serve this population, a new facility with 120 beds is required.  It is assumed the new facility will 
be built over three years at the cost of $2.3 million per bed, which is the 2017 cost to build beds at 
MHI-Fort Logan plus 30 percent to account for changes in construction prices and labor since that 
previous project.  Operating bed costs of $1,300 per day starting in FY 2024-25, plus IT costs to support 
system modifications for the civilly committed population estimated at $200,000 in FY 2023-24 and 
$25,000 in FY 2024-25 and ongoing. 
 
Judicial Department.  The Judicial Department will have costs for court-appointed attorneys and 
guardians, as well as increased workload in the trial courts. 
 
 Court-appointed attorneys.  Beginning in FY 2022-23, costs for court-appointed attorneys are 
expected to increase due to the bill's absolute right to counsel.  Costs are estimated based on the 
difference between the number of short-term mental health cases filed in FY 2020-21, 6,957 cases, 
and mental health cases where court-appointed counsel was provided, 6,718 cases, which equates 
to 221 appointments per year at an average rate of $340 per appointment, or $75,140 per year.  In 
addition, the bill requires the court to immediately appoint an attorney in cases where an 
appropriate placement option cannot be located and the person continues to meet the criteria for 
an emergency mental health hold.  Assuming 34 cases receive a second emergency hold, the cost 
is $11,560 per year. 
 
 Trial courts. Beginning January 1, 2025, the bill allows anyone to directly petition the court for 
certification, allows the respondent to request a jury trial, and requires the court to appoint a 
guardian ad litem to represent the respondent in certain cases, largely within 10-day timeframes.  
In FY 2020-21, there were 6,957 short-term mental health cases filed statewide. Assuming 
30 percent of the 6,957 short-term cases, or approximately 2,087 cases, will petition the courts, and 
the district court standard for mental health cases is 4,880 cases per judicial officer, an additional 
0.4 FTE judicial officer and 1.2 FTE support staff is required.   
 
Further, the bill's one-step grievance process, the allowance for anyone to contest a respondent’s 
treatment regimen, a respondent's right to judicial review on restrictive placements and to file 
motions to contest certification, and right to waive counsel will all increase hearing time.  
Assuming that 45 minutes of additional hearing time will be required in 5 percent of cases 
(353 cases) and assuming that 15 minutes of additional hearing time will be required in 3 percent 
of cases where the right to counsel has been waived, 209 cases, an additional 0.2 FTE judicial officer 
and 0.6 FTE support staff is required. 
  Page 8 
March 9, 2022  HB 22-1256  
 
 
 Guardian Ad Litem appointments.  Beginning January 1, 2025, assuming about 2,000 cases are 
filed as a result of the legislation, and that 5 percent of cases will have a GAL appointed, the 
Judicial Department requires 104 new appointments at an average cost of $1,500 per appointment.   
 
 Mental health evaluations.  Beginning January 1, 2025, and using the same assumption for GAL 
appointments, the Judicial Department requires 104 mental health evaluations ordered at an 
average cost of $1,000 per evaluation. 
 
The fiscal note assumes the Judicial Department will use the annual budget process to account for 
other provisions of the bill or outcomes that differ from these assumptions. The fiscal note also 
anticipates that the DHS and the Judicial Department will be in consultation about guardian ad litem 
and mental health evaluation costs. 
 
Other state agencies.  Impacts to other state agencies—including, but not limited to, the Departments 
of Higher Education, Public Safety, and Regulatory Agencies—have not been estimated and will be 
addressed through the annual budget process as needed. 
 
Centrally appropriated costs.  Pursuant to fiscal note and Joint Budget Committee policy, centrally 
appropriated costs for bills involving more than 20 FTE are appropriated in the bill, rather than 
through the annual budget process. Employee insurance and supplemental employee insurance costs 
for new staff under the bill are shown in Table 2 above.  
Other Budget Impacts 
General Fund reserve.  Under current law, an amount equal to 15 percent of General Fund 
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23.  Based 
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by 
amounts shown in Table 1, which will decrease the amount of General Fund available for other 
purposes. 
Local Government  
County attorneys.  County attorneys are required to handle civil commitments in court when the 
respondent lives in a county with a population less than 50,000. These costs have not been estimated. 
 
Local law enforcement. Workload will increase for local law enforcement to provide support and 
transportation services in emergency mental health matters. This involvement may also increase 
officer liability related to use of force in a civil matter, which will increase litigation costs.  These costs 
have not been estimated. 
Technical Note 
The Behavioral Health Administration is in the process of being established, initially through 
House Bill 21-1097, and further through House Bill 22-1278. 
  Page 9 
March 9, 2022  HB 22-1256  
 
 
Effective Date 
The bill has the following effective dates: 
 
 sections 2, 5, and 40 of this act take effect July 1, 2023; 
 sections 27-65-108 and 27-65-111, as enacted in section 1 of this act, and sections 3 and 4 of this act 
take effect January 1, 2025; and  
 the remainder of this act takes effect 90 days following adjournment of the General Assembly 
sine die, assuming no referendum petition is filed.   
State Appropriations 
For FY 2022-23, the following General Fund appropriations are required: 
 
 $143,691,555 to the Department of Human Services and 211.8 FTE; of this amount, $177,426 is 
reappropriated to the Department of Law and with an additional 1.0 FTE. 
 
 $86,700 to the Judicial Department. 
State and Local Government Contacts 
Counties District Attorneys  Higher Education  
Human Services Information Technology Judicial  
Law  Public Safety  Regulatory Agencies  
Sheriffs 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each 
fiscal year.  For additional information about fiscal notes, please visit:  leg.colorado.gov/fiscalnotes.