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 -10-