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 Appropriations
Drafting number: LLS 25-0390
Fiscal Analyst:
Shukria Maktabi, 303-866-4720
shukria.maktabi@coleg.gov
Version: First Revised Note
Date: April 2, 2025
Fiscal note status: This revised fiscal note reflects the introduced bill, as amended in the House Health
and Human Services Committee.
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 $658,410 to the Department of
Labor and Employment.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $694,048 $200,786
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 1.8 FTE 2.0 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
April 2, 2025 HB 25-1017
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Cash Funds (Disability Support Fund) $658,410 $161,189
Federal Funds $0 $0
Centrally Appropriated $35,638 $39,597
Total Expenditures $694,048 $200,786
Total FTE 1.8 FTE 2.0 FTE
Summary of Legislation
The bill codifies federal law and legal precedent in state statute and requires the Colorado
Disability Opportunity Office (CDOO) in the Department of Labor and Employment (CDLE) 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
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, 2028, the bill requires CDOO 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 an assessment of the state’s
progress on the plan. Page 3
April 2, 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 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.
Colorado Disability Opportunity Office
House Bill 24-1360 created the CDOO to provide guidance to the Governor and state agencies
on matters related to Coloradans with disabilities, and to implement a statewide strategy to
facilitate full societal integration by investing in the success of individuals with disabilities. The
office and grant programs are funded through the Disability Support Fund, which holds cash
fund revenue from license plate sales.
State Expenditures
The bill increases state expenditures in the CDOO by $694,000 in FY 2025-26 and $200,000 in
FY 2026-27. These costs, paid by Disability Support Fund, 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.
Page 4
April 2, 2025 HB 25-1017
Table 2
State Expenditures
Colorado Disability Opportunity Office
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $142,766 $158,629
Operating Expenses $2,304 $2,560
Capital Outlay Costs $13,340 $0
Contractor $500,000 $0
Centrally Appropriated Costs $35,638 $39,597
Total Costs $694,048 $200,786
Total FTE 1.8 FTE 2.0 FTE
Colorado Disability Opportunity Office
CDOO will have staff and contracting costs beginning in FY 2025-26 to implement the bill.
Staff
Beginning in FY 2025-26, CDOO requires 2.0 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 that identify
barriers and recommend solutions. Staff costs are prorated for an August 1, 2025 start date.
Contractor
CDOO requires $500,000 for a contractor to develop and evaluate the integration plan from
FY 2025-26 through September 1, 2028. The contractor will assess current practices in the state,
engage stakeholders, set goals and metrics, and develop the plan. Contracting costs are based
on similar contracts in 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. Page 5
April 2, 2025 HB 25-1017
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 Department of Health Care Policy
and Financing, Department 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.
Workload will also increase for the Department of Health Care Policy and Financing, the
Department of Human Services, and the Department of Local Affairs to collaborate with the
CDOO in the development of the integration plan. This workload is expected to be minimal and
can be accomplished within existing resources.
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 $658,410 from the Disability Support Fund
to the Department of Labor and Employment and 1.9 FTE. Page 6
April 2, 2025 HB 25-1017
Departmental Difference
Department of Health Care Policy and Financing
HCPF estimates that its costs will increase by approximately $3.3 million per year to comply with
the bill’s requirements beginning in FY 2025-26 for 4.0 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; and
2.0 FTE to develop fundamental alteration defenses for potential legal proceedings.
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.
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.
Department of Personnel and Administration
The Department of Personnel and Administration (DPA) estimates costs will increase by
approximately $378,000 per year to comply with the bill’s requirements beginning in
FY 2025-26. DPA anticipates an increase in administrative hearings between Medicaid
beneficiaries with disabilities and HCPF over reduced or terminated community-based service
coverage, and whether the action is appropriate. DPA assumes 465 additional appeals each year
requiring 3.4 new staff to manage the increase.
Since the Olmstead decision, individuals with disabilities have already had the ability to bring
forward disputes over Medicaid service changes in administrative courts. While increased
awareness of these requirements from the bill may result in additional cases, the fiscal note
assumes the overall volume of appeals is unlikely to significantly exceed current levels and any
increase in hearings should be absorbable within existing resources. Page 7
April 2, 2025 HB 25-1017
State and Local Government Contacts
Behavioral Health Administration
Corrections
Counties
Early Childhood
Education
Health Care Policy and Financing
Human Services
Judicial
Law
Local Affairs
Municipalities
Personnel
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.