Colorado 2025 2025 Regular Session

Colorado House Bill HB1017 Engrossed / Bill

Filed 04/15/2025

                    First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 25-0390.01 Jerry Barry x4341
HOUSE BILL 25-1017
House Committees Senate Committees
Health & Human Services
Appropriations
A BILL FOR AN ACT
C
ONCERNING A COMMUNITY INTEGRATION PLAN FOR INDIVIDUALS101
WITH 
DISABILITIES, AND, IN CONNECTION THEREWITH, MAKING102
AN APPROPRIATION.103
Bill Summary
(Note:  This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill establishes that public and governmental entities (entities)
shall administer services, programs, and activities in the most integrated
setting that is appropriate to the needs of individuals with disabilities. The
bill establishes when entities are required to provide home- and
community-based services (services) to individuals with disabilities.
HOUSE
Amended 2nd Reading
April 15, 2025
HOUSE SPONSORSHIP
Clifford and Froelich,
SENATE SPONSORSHIP
Michaelson Jenet,
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. If an entity cuts services, the entity shall assess whether the service
cut increases the risk of institutionalization for individuals receiving
services. If so, the entity must develop a plan to reduce that risk.
The bill directs the department of health care policy and financing
to develop a comprehensive community integration plan (plan) for
implementing its obligation to provide individuals with disabilities with
opportunities to live, work, and be served in integrated settings. The plan
must be reviewed and updated every 3 years.
An entity is not required to comply with the provisions of the bill
if it can establish that doing so would require a fundamental alteration of
its program, services, or activities.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1.  Legislative declaration. (1)  The general assembly2
finds and declares that:3
(a)  The United States supreme court decision in Olmstead v. L.C.,4
527 U.S. 581 (1999), enshrined in law the duty upon states to actively5
work toward helping individuals with disabilities transition out of6
institutions and into the community and to have community-based7
services available to decrease the risk of institutionalization;8
(b)  Olmstead placed on states the obligation to administer9
services, programs, and activities in the most integrated setting10
appropriate to the needs of qualified individuals with disabilities;11
(c)  Segregating individuals with disabilities in institutions denies12
those individuals the freedom to make decisions, keeps them apart from13
family and friends, and denies them opportunities that exist in their14
communities. Segregation also denies communities the contributions that15
individuals with disabilities make to their communities.16
(d)  Community-based services are cheaper in the long run than17
institutionalization services.18
(2)  The general assembly further declares that codifying in state19
1017-2- law the rights that were legally recognized as federal law through1
Olmstead is crucial because:2
(a)  The fundamental rights for individuals with disabilities to live3
in the least restrictive setting and to have access to services in the4
community is consistent with Colorado's recognition of the humanity and5
dignity of all individuals; and6
     7
(b)  The Olmstead decision required states to develop an Olmstead8
plan. Colorado's plan, called the "Colorado community living plan", was9
developed more than 10 years ago as a collaboration between the state10
departments of health care policy and financing, human services, and11
local affairs. The plan's effectiveness has never been evaluated or12
updated, and      the plan is insufficient.13
SECTION 2. In Colorado Revised Statutes, add 8-88-102.5 as14
follows:15
8-88-102.5. Comprehensive community integration plan for16
individuals with disabilities - review and assessment. (1) ON OR17
BEFORE SEPTEMBER 1, 2028, CDOO SHALL SERVE AS THE LEAD AGENCY18
RESPONSIBLE FOR DEVELOPING A COMPREHENSIVE COMMUNITY19
INTEGRATION PLAN, REFERRED TO IN THIS SECTION AS THE "PLAN", FOR20
IMPLEMENTING THE STATE'S COMMITMENT TO PROVIDING INDIVIDUALS21
WITH DISABILITIES OPPORTUNITIES TO LIVE, WORK, AND BE SERVED IN THE22
LEAST RESTRICTIVE SETTINGS POSSIBLE. IN DEVELOPING THE PLAN, CDOO23
SHALL COLLABORATE WITH THE DEPARTMENT OF HEALTH CARE POLICY24
AND FINANCING, THE DEPARTMENT OF HUMAN SERVICES , THE25
DEPARTMENT OF LOCAL AFFAIRS, OTHER STATE AGENCIES IMPACTED BY26
THE PLAN, AND STAKEHOLDERS. THE PLAN MUST INCLUDE:27
1017
-3- (a) AN ANALYSIS OF THE EXTENT TO WHICH THE STATE IS1
PROVIDING SERVICES IN THE MOST INTEGRATED SETTING ;2
(b) CONCRETE COMMITMENTS TO EXP AND INTEGRATED3
OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES ;4
(c)  SPECIFIC AND REASONABLE TIME FRAMES, MEASURABLE GOALS,5
AND BENCHMARKS FOR WHICH THE STATE IS HELD ACCOUNTABLE ;6
(d)  FUNDING SOURCES TO SUPPORT THE PLAN, WHICH MAY COME7
FROM REALLOCATING EXISTING SERVICE MONEY ; AND8
(e) COMMITMENTS CONCERNING HOW THE STATE WILL MEET ITS9
GOALS FOR EACH GROUP OF INDIVIDUALS WITH DISABILITIES WHO ARE10
UNNECESSARILY SEGREGATED .11
(2) THE CDOO SHALL REVIEW AND UPDATE THE PLAN EVERY12
THREE YEARS, BEGINNING ON SEPTEMBER 1, 2031. PART OF THE REVIEW13
MUST BE AN ASSESSMENT OF WHETHER THE TIME FRAMES , GOALS, AND14
BENCHMARKS SET PURSUANT TO SUBSECTION (1)(c) OF THIS SECTION HAVE15
BEEN MET. IF THE BENCHMARKS WERE NOT MET, THE UPDATED PLAN MUST16
INCLUDE A DESCRIPTION OF THE BARRIERS TO IMPLEMENTATION AND HOW17
THOSE BARRIERS WILL BE ADDRESSED .18
SECTION 3. In Colorado Revised Statutes, add part 11 to article19
1 of title 25.5 as follows:20
PART 1121
COMMUNITY INTEGRATION22
25.5-1-1101.  Definitions. A
S USED IN THIS PART 11, UNLESS THE23
CONTEXT OTHERWISE REQUIRES :24
(1) "COMMUNITY-BASED SERVICES" MEANS ANY OF THE25
FOLLOWING:26
(a) HOME HEALTH-CARE SERVICES AUTHORIZED PURSUANT TO27
1017
-4- PARAGRAPH (7) OF SECTION 1905(a) OF THE "SOCIAL SECURITY ACT", 421
U.S.C. SEC. 1396d(a);2
(b) PERSONAL CARE SERVICES AUTHORIZED PURSUANT TO3
PARAGRAPH (24) OF SECTION 1905(a) OF THE "SOCIAL SECURITY ACT", 424
U.S.C. SEC. 1396d(a);5
(c) PACE SERVICES AUTHORIZED PURSUANT TO PARAGRAPH (26)6
OF SECTION 1905(a) OF THE "SOCIAL SECURITY ACT", 42 U.S.C. SEC.7
1396d(a);8
(d) HOME- AND COMMUNITY-BASED SERVICES AUTHORIZED9
PURSUANT TO SUBSECTIONS (b), (c), (i), (j), AND (k) OF SECTION 1915 OF10
THE "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 1396n; SERVICES11
AUTHORIZED PURSUANT TO A WAIVER UNDER SECTION 1115 OF THE12
"SOCIAL SECURITY ACT", 42 U.S.C. SEC. 1315; AND SERVICES THROUGH13
COVERAGE AUTHORIZED UNDER SECTION 1937 OF THE "SOCIAL SECURITY14
ACT", 42 U.S.C. SEC. 1396u-7;15
(e) CASE MANAGEMENT SERVICES AUTHORIZED UNDER SECTION16
1905(a)(19) OF THE "SOCIAL SECURITY ACT", 42 U.S.C. SEC.17
1396d(a)(19), AND SECTION 1915(g) OF THE "SOCIAL SECURITY ACT", 4218
U.S.C. SEC. 1396n(g);19
(f) REHABILITATIVE SERVICES, INCLUDING THOSE RELATED TO20
BEHAVIORAL HEALTH, DESCRIBED IN SECTION 1905(a)(13) OF THE "SOCIAL21
SECURITY ACT", 42 U.S.C. SEC. 1396d(a)(13); AND22
(g) ANY OTHER SERVICES SPECIFIED BY THE UNITED STATES23
SECRETARY OF HEALTH AND HUMAN SERVICES .24
(2)  "DISABILITY" HAS THE SAME MEANING AS SET FORTH IN THE25
FEDERAL "AMERICANS WITH DISABILITIES ACT OF 1990", 42 U.S.C. SEC.26
12101
 ET SEQ.27
1017
-5- (3)  "FUNDAMENTAL ALTERATION " MEANS A MODIFICATION THAT1
      ALTERS THE ESSENTIAL NATURE OF THE GOODS, SERVICES, FACILITIES,2
PRIVILEGES, ADVANTAGES, OR ACCOMMODATIONS OFFERED BY A STATE OR3
PUBLIC ENTITY.4
               5
(4)  "MOST INTEGRATED SETTING" MEANS THE SETTING THAT6
ENABLES A QUALIFIED INDIVIDUAL WITH A DISABILITY TO INTERACT TO7
THE FULLEST EXTENT POSSIBLE WITH PERSONS WHO DO NOT HAVE A8
DISABILITY.9
(5)  "PLAN" MEANS THE STATE'S COMPREHENSIVE COMMUNITY10
INTEGRATION PLAN, DEVELOPED PURSUANT TO SECTION 25.5-1-1104.11
(6)  "PUBLIC OR GOVERNMENTAL ENTITY " MEANS:12
(a)  T
HE STATE OR ANY DEPARTMENT , BOARD, AGENCY,13
INSTRUMENTALITY, AUTHORITY, OR COMMISSION OF THE STATE; AND14
(b)  A
NY POLITICAL SUBDIVISION OF THE STATE, INCLUDING:15
(I)  A
 COUNTY, CITY, OR CITY AND COUNTY;16
(II)  A
 SCHOOL DISTRICT AS DEFINED IN SECTION 22-36-107;17
(III)  A
 LOCAL IMPROVEMENT DISTRICT AS DEFINED IN SECTION18
32-7-103;19
(IV)  A
 LAW ENFORCEMENT AUTHORITY ;20
(V)  A
 WATER, SANITATION, FIRE PROTECTION, METROPOLITAN,21
IRRIGATION, DRAINAGE, OR OTHER SPECIAL DISTRICT CREATED PURSUANT22
TO TITLE 32;23
(VI)  A
NY OTHER MUNICIPAL , QUASI-MUNICIPAL, OR PUBLIC24
CORPORATION ORGANIZED PURSUANT TO THE STATE CONSTITUTION OR25
OTHER LAW; AND26
(VII)  A
NY DEPARTMENT, BOARD, AGENCY, INSTRUMENTALITY,27
1017
-6- AUTHORITY, OR COMMISSION OF A POLITICAL SUBDIVISION OF THE STATE.1
(7) "QUALIFIED INDIVIDUAL WITH A DISABILITY" HAS THE SAME2
MEANING AS SET FORTH IN THE FEDERAL "AMERICANS WITH DISABILITIES3
ACT OF 1990", 42 U.S.C. SEC. 12101 ET SEQ.4
(8) "SERIOUS RISK OF INSTITUTIONALIZATION" MEANS WHEN A5
QUALIFIED INDIVIDUAL WITH A DISABILITY IS LIKELY TO EXPERIENCE A6
DECLINE IN HEALTH, SAFETY, OR WELFARE THAT WOULD LEAD TO THE7
PLACEMENT OF THE INDIVIDUAL IN AN INSTITUTION DUE TO AN ACTION OR8
LACK OF ACTION BY A PUBLIC OR GOVERNMENTAL ENTITY .9
25.5-1-1102.  Case management-based services and activities.10
E
ACH PUBLIC AND GOVERNMENTAL ENTITY SHALL ADMINISTER SERVICES ,11
PROGRAMS, AND ACTIVITIES IN THE MOST INTEGRATED SETTING12
APPROPRIATE TO THE NEEDS OF 
A QUALIFIED INDIVIDUAL WITH A13
DISABILITY.14
25.5-1-1103.  Community-based services - cutting services by15
state or public entity - plan to ameliorate risk of institutionalization16
for qualified individuals with disabilities. (1)  E	ACH PUBLIC AND17
GOVERNMENTAL ENTITY SHALL PROVIDE      COMMUNITY-BASED SERVICES18
TO A QUALIFIED INDIVIDUAL WITH A DISABILITY WHEN :19
(a)  T
HE SERVICES ARE APPROPRIATE;20
(b)  T
HE AFFECTED INDIVIDUAL DOES NOT OPPOSE RECEIVING 
     21
COMMUNITY-BASED      SERVICES;22
(c)  COMMUNITY-BASED SERVICES CAN BE REASONABLY23
ACCOMMODATED , TAKING INTO ACCOUNT THE RESOURCES AVAILABLE TO24
THE PUBLIC OR GOVERNMENTAL ENTITY AND THE NEEDS OF 	OTHER25
QUALIFIED INDIVIDUALS WITH DISABILITIES; AND26
(d) THE AFFECTED INDIVIDUAL IS AT SERIOUS RISK OF27
1017
-7- INSTITUTIONALIZATION.1
(2)  I
F THE PUBLIC OR GOVERNMENTAL ENTITY CUTS SERVICES , IT2
SHALL ASSESS WHETHER THE SERVICE CUTS INCREASE THE RISK OF3
INSTITUTIONALIZATION FOR THOSE INDIVIDUALS WHO ARE RECEIVING4
SERVICES. IF SO, THE ENTITY SHALL MAKE A PLAN TO AMELIORATE THE5
RISK. IN MAKING SUCH BUDGET CUTS , PUBLIC AND GOVERNMENTAL6
ENTITIES HAVE A DUTY TO TAKE ALL REASONABLE STEPS TO AVOID7
PLACING 
QUALIFIED INDIVIDUALS WITH DISABILITIES AT RISK OF8
INSTITUTIONALIZATION.9
          10
25.5-1-1104.  Exception for fundamental alteration of an11
entity's program. (1)  A
 PUBLIC OR GOVERNMENTAL ENTITY IS NOT12
REQUIRED TO COMPLY WITH THIS PART 11 IF DOING SO WOULD REQUIRE A13
FUNDAMENTAL ALTERATION OF THE ENTITY 'S PROGRAM.14
(2) (a)  T
HE FOLLOWING FACTORS MUST BE CONSIDERED FOR15
PURPOSES OF EVALUATING A FUNDAMENTAL ALTERATION DEFENSE TO NOT16
COMPLYING WITH THIS PART 11:17
(I)  T
HE AMOUNT OF MONEY THE PUBLIC OR GOVERNMENTAL18
ENTITY ALLOTS, SPENDS, RECEIVES, OR COULD RECEIVE IF THE ENTITY19
APPLIED FOR AVAILABLE FEDERAL FUNDING TO PROVIDE SERVICES TO20
QUALIFIED INDIVIDUALS WITH DISABILITIES;21
(II)  A
LL RELEVANT COSTS, NOT JUST THOSE FUNDED BY THE22
SINGLE AGENCY THAT OPERATES OR FUNDS THE SEGREGATED OR23
INTEGRATED SETTING FOR 
QUALIFIED INDIVIDUALS WITH DISABILITIES;24
(III)  C
HANGES IN THE COSTS OF THE SEGREGATED SETTING25
COMPARED WITH CHANGES IN COSTS OF 
      COMMUNITY-BASED SERVICES;26
     27
1017
-8- (IV)  ANY POSSIBLE TRANSITIONAL COSTS OF CONVERTING FROM1
SEGREGATED TO INTEGRATED SETTINGS FOR QUALIFIED INDIVIDUALS WITH2
DISABILITIES. TRANSITIONAL COSTS MAY BE CONSIDERED , BUT ARE NOT3
DETERMINATIVE; AND4
(V) WHETHER THE PROPOSED MODIFICATION RESULTS IN THE5
REDUCTION OR DELAY OF THE RECEIPT OF COMMUNITY-BASED SERVICES6
FOR OTHER INDIVIDUALS WITH DISABILITIES.7
(b)  I
F A PUBLIC OR GOVERNMENTAL ENTITY DECIDES TO SERVE8
NEW 
QUALIFIED INDIVIDUALS WITH DISABILITIES IN SEGREGATED SETTINGS9
AFTER INDIVIDUALS WITH DISABILITIES IN A PLAINTIFF CLASS ARE MOVED10
TO INTEGRATED SETTINGS, RATHER THAN TO CLOSE OR DOWNSIZE THE11
SEGREGATED SETTINGS, THE COSTS ASSOCIATED WITH SUCH A DECISION12
MUST NOT BE INCLUDED IN THE FUNDAMENTAL ALTERATION ANALYSIS .13
SECTION 4. In Colorado Revised Statutes, amend 8-88-205 as14
follows:15
8-88-205. Disability support fund. (1) There is created in the16
state treasury the disability support fund, which consists of money that17
may be appropriated or transferred to the fund by the general assembly;18
and any gifts, grants, or donations received by the department for the19
purpose of implementing this part 2 ARTICLE 88.20
(2) The money in the fund is subject to annual appropriation by21
the general assembly for the direct and indirect costs associated with the22
implementation of this part 2 ARTICLE 88. Any money in the fund not23
expended for the purpose of this section may be invested by the state24
treasurer as provided by law. All interest and income derived from the25
investment and deposit of money in the fund must be credited to the fund.26
Any unexpended and unencumbered money remaining in the fund at the27
1017
-9- end of a fiscal year must remain in the fund for use as provided in this1
part 2 ARTICLE 88 and must not be credited or transferred to the general2
fund or another fund. If this section is repealed, prior to its repeal, all3
unexpended and unencumbered money remaining in the fund must be4
transferred to the general fund.5
SECTION 5.  Appropriation. For the 2025-26 state fiscal year,6
$658,410 is appropriated to the department of labor and employment.7
This appropriation is from the disability support fund created in section8
8-88-205 (1), C.R.S., and is based on an assumption that the department9
will require an additional 1.8 FTE. To implement this act, the department10
may use this appropriation for the Colorado disability opportunity office.11
SECTION 6. Act subject to petition - effective date. This act12
takes effect at 12:01 a.m. on the day following the expiration of the13
ninety-day period after final adjournment of the general assembly; except14
that, if a referendum petition is filed pursuant to section 1 (3) of article V15
of the state constitution against this act or an item, section, or part of this16
act within such period, then the act, item, section, or part will not take17
effect unless approved by the people at the general election to be held in18
November 2026 and, in such case, will take effect on the date of the19
official declaration of the vote thereon by the governor.20
1017
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