HB 25-1017
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1017: COMMUNITY INTEGRATION PLAN INDIVIDUALS WITH
DISABILITIES
Prime Sponsors:
Rep. Clifford; Froelich
Sen. Michaelson Jenet
Published for: House Health & Human Services
Drafting number: LLS 25-0390
Fiscal Analyst:
Shukria Maktabi, 303-866-4720
shukria.maktabi@coleg.gov
Version: Initial Fiscal Note
Date: February 13, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill codifies federal regulations for individuals with disabilities and requires the
development of an updated community integration plan.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures Local Government
Appropriations. For FY 2025-26, the bill requires an appropriation of $579,206 to the Department of
Health Care Policy and Financing.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $597,024 $250,393
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.9 FTE 1.0 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
February 13, 2025 HB 25-1017
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $289,603 $115,297
Cash Funds $0 $0
Federal Funds $289,603 $115,297
Centrally Appropriated $17,818 $19,799
Total Expenditures $597,024 $250,393
Total FTE 0.9 FTE 1.0 FTE
Summary of Legislation
The bill codifies federal law and legal precedent in state statute and requires the Department of
Health Care Policy and Financing (HCPF) to create a community integration plan for serving
individuals with disabilities.
Codification of Federal Rulings
The bill requires public and government entities to provide services in the most integrated
setting that is appropriate to the needs of an individual with disabilities. It requires home- and
community-based services to be provided to individuals with disabilities when the services are
appropriate, the individual agrees to the services, and placement can be reasonably
accommodated.
Public entities providing services must take reasonable steps to prevent the institutionalization
of individuals with disabilities, including making a plan to alleviate risk, but they are not required
to make modifications that fundamentally alter their programs. The bill outlines criteria for
determining when the exception applies, including the cost of providing services in integrated
settings, resources available to the state, and the ability to meet the needs of others with
disabilities.
Community Integration Plan
By September 1, 2026, the bill requires HCPF to create a community integration plan to assess
how well the state is providing services in the most integrated settings, develop state goals and
a plan to meet those goals for certain individuals, and identify funding sources to support the
plan. The plan must be updated every three years, including a neutral assessment of the state’s
progress on the plan. Page 3
February 13, 2025 HB 25-1017
Background
Americans with Disabilities Act
The Americans with Disabilities Act (ADA) of 1990 prohibits discrimination on the basis of
disability. Title II of the ADA provides federal regulations for public entities to prevent individuals
with disabilities from being excluded from services, programs, and activities provided by public
entities. It requires entities to provide services in the least restrictive setting and to make
reasonable accommodations to avoid discrimination on the basis of a disability, but does not
require such measures if it would fundamentally alter the nature of the entity’s programs.
Olmstead Decision
In 1999, the federal Supreme Court decision in Olmstead v. L.C. affirmed that the unnecessary
institutionalization of individuals with disabilities violates Title II of the ADA. It clarified that
states are required to provide home- and community-based treatments and services if the
treatment is appropriate, the person does not oppose the treatment, and that the placement
can be reasonably accommodated taking into account state resources. The decision
encouraged states to develop plans for transitioning individuals out of institutions and
expanding home- and community-based services. The Colorado Community Living Plan was
created in 2014 and outlined the state’s comprehensive approach to meeting the requirements
of the Olmstead decision. The plan has not been evaluated since 2018.
State Expenditures
The bill increases state expenditures in the HCPF by $597,000 in FY 2025-26 and $100,000 in
FY 2026-27. These costs, paid by the General Fund and federal funds, are summarized in Table 2
and discussed below. The bill also potentially increases workload and costs in the Department of
Law, the Judicial Department, and other state agencies.
Table 2
State Expenditures
Department of Health Care Policy and Financing
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $71,383 $79,314
Operating Expenses $1,152 $1,280
Capital Outlay Costs $6,670 $0
Contractor $500,000 $150,000
Centrally Appropriated Costs $17,819 $19,799
Total Costs $597,024 $250,393
Total FTE 0.9 FTE 1.0 FTE Page 4
February 13, 2025 HB 25-1017
Department of Health Care Policy and Financing
HCPF will have staff and contracting costs beginning in FY 2025-26 to implement the bill. Costs
will be split equally between federal funds and state General Fund.
Staff
Beginning in FY 2025-26, HCPF requires 1.0 FTE to oversee development of the statewide
community integration plan with contractor support. This includes working with the contractor,
coordinating with internal and external agencies, and managing stakeholder engagement. Once
the initial plan is developed, this staff will perform ongoing analysis and stakeholder
engagement to support the development of an updated plan every three years. Staff costs are
prorated for an August 1, 2025 start date.
Contractor
HCPF requires $500,000 initially and $150,000 in ongoing years for a contractor to develop and
evaluate the integration plan. The contractor will assess current practices in the state, set goals
and metrics, and develop the plan. After the plan is developed, the contractor will conduct
ongoing analysis of the state’s progress and publish a neutral assessment every three years to
identify the barriers and recommend solutions. Contracting costs are based on similar contracts
with HCPF and other departments.
Department of Law
If cases are filed against state agencies for violations of the bill, workload and costs will increase
for the Department of Law to represent affected agencies. The fiscal note assumes most
agencies will comply with the law, and any additional legal resources will be requested through
the budget process as needed.
Judicial Department
If cases are filed against noncompliant public entities, trial court workload and costs will
increase. The fiscal note assumes most agencies will comply with the law and any new cases will
be managed within existing resources.
Other Agency Impacts
Workload may increase for other state agencies, including the Departments of Human Services
and the Department of Corrections, among others, to review and align current practices with the
bill and federal requirements. However, this impact is expected to be minimal, as the bill codifies
existing law and requirements.
The fiscal note assumes that the bill will not increase workload for Civil Rights Division in the
Department of Regulatory Agencies, referenced in the legislative declaration, as the bill does not
modify their statutory authority or create new requirements for the division. Page 5
February 13, 2025 HB 25-1017
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Local Governments
Workload will increase for public entities, including school districts and counties, to review and
align current practices with the bill and federal regulations. It is assumed local governments
already have a high level of compliance with current federal requirement codified by the bill.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2025-26, the bill requires an appropriation of $579,205 to the Department of Health Care
Policy and Financing and 0.9 FTE, of which $289,603 is federal funds and $289,603 is from the
General Fund.
Departmental Difference
HCPF estimates that its costs will increase by approximately $4.0 million per year to comply with
the bill’s requirements beginning in FY 2025-26 for an additional 5.0 FTE, up to 8,000 hours in
legal services, and new custom reporting tools. This includes:
2.0 FTE to evaluate the effect of benefit changes on the individual’s risk of
institutionalization;
2.0 FTE to develop fundamental alteration defenses for potential legal proceedings; and
1.0 FTE to manage the stakeholder process for the development of the new integration plan.
As the bill is codifying existing federal requirements and not substantively expanding beyond
what is currently required, the fiscal note assumes it will not lead to a significant increase
litigation or require additional FTE.
Page 6
February 13, 2025 HB 25-1017
Under the Olmstead decision, unnecessary institutionalization constitutes discrimination under
the ADA. This means that when services or benefits are modified or reduced, agencies should
consider whether the change increases the risk of institutionalization for individuals. If a
reduction in services creates such a risk, entities should assess whether reasonable modifications
can be made to avoid the institutionalization and discrimination. Because these requirements
have been in place since 1990, the fiscal note assumes the department has internal processes for
evaluating these risks, developing plans to ameliorate those risks, and determining if a
fundamental alteration defense applies.
Further, while the bill may increase awareness of ADA requirements, the risk of litigation has
existed since the Olmstead decision. A recent lawsuit by the federal Department of Justice
against the state has also resulted in HCPF taking additional efforts and requesting state funds
to comply with federal law and requirements.
Additionally, the fiscal note assumes stakeholder engagement for the integration plan can be
managed by the 1.0 FTE and contractor, as outlined in the State Expenditure section.
State and Local Government Contacts
Behavioral Health Administration
Counties
Early Childhood
Education
Health Care Policy and Financing
Human Services
Judicial
Law
Local Affairs
Municipalities
Regulatory Agencies
School Districts
Special Districts
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 the General Assembly website.