BY SENATOR(S) Amabile and Kirkmeyer, Bridges, Catlin, Exum, Jodeh, Mullica;
also REPRESENTATIVE(S) Taggart and Sirota, Bird, Boesenecker, Clifford, McCluskie.
Concerning measures related to certain state medical assistance program federal authorizations, and, in connection therewith, funding services from savings realized from state medical assistance program federal authorizations and making and reducing appropriations.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 25.5-5-340 as follows:
25.5-5-340. Health-related social needs reinvestment cash fund - creation - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Federal authorization" means the authorization the state department received from the federal centers for medicare and medicaid services to provide coverage for health-related social needs through the state medical assistance program.
(b) "Fund" means the health-related social needs reinvestment cash fund created in this section.
(2) (a) The health-related social needs reinvestment cash fund is created in the state treasury. The fund consists of money transferred to the fund pursuant to subsection (3) of this section and any other money that the general assembly may appropriate or transfer to the fund.
(b) In accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.
(3) Beginning June 30, 2026, and on June 30 of each year thereafter, the state treasurer shall transfer from the general fund to the fund an amount of money equal to the amount of unspent money that reverted to the general fund in that year from the appropriation from the general fund to the state department for health-related social needs.
(4) Subject to annual appropriation by the general assembly, the state department may expend money from the fund for services that support health-related social needs and related administrative services, as authorized by the federal authorization.
(5) On or after November 1, 2025, and on or after November 1 each year thereafter, the state department shall present to the joint budget committee a recommendation for spending money in the fund to expand and enhance services authorized by the federal authorization. When developing the recommendation, the state department shall consult with state agencies participating in services provided through, and stakeholders who represent the members receiving services included in, the federal authorization.
SECTION 2. In Colorado Revised Statutes, 25.5-5-339, add (12) as follows:
25.5-5-339. Coverage for services addressing health-related social needs feasibility study - federal authorization - report - rules. (12) To provide peer support services in compliance with the terms of the federal authorization, the state department shall develop a workforce to provide peer support services.
SECTION 3. In Colorado Revised Statutes, add 25.5-4-505.7 as follows:
25.5-4-505.7. Reentry services for justice-involved individuals reinvestment cash fund - creation - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Federal authorization" means the authorization the state department received from the federal centers for medicare and medicaid services to provide reentry services to justice-involved individuals through the state medical assistance program.
(b) "Fund" means the reentry services for justice-involved individuals reinvestment cash fund created in this section.
(2) The reentry services for justice-involved individuals reinvestment cash fund is created in the state treasury. The fund consists of money appropriated pursuant to subsection (3) of this section and any other money that the general assembly may appropriate or transfer to the fund. In accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.
(3) Beginning June 30, 2026, and on June 30 of each year thereafter, the state treasurer shall transfer from the general fund to the fund an amount of money equal to the amount of unspent money that reverted to the general fund in that year from the appropriation from the general fund to the state department for reentry services for justice-involved individuals.
(4) Subject to annual appropriation by the general assembly, the state department may expend money from the fund for medicaid services for individuals who are incarcerated in, are at risk of being incarcerated in, or are being released from a carceral facility, and for related administrative services, as authorized through the federal authorization.
(5) On or after November 1, 2025, and on or after November 1 each year thereafter, the state department shall present to the joint budget committee a recommendation for spending money in the fund to expand and enhance services authorized by the federal authorization When developing the recommendation, the state department shall consult with state agencies participating in services provided through, and stakeholders who represent the members receiving services included in, the federal authorization.
SECTION 4. In Colorado Revised Statutes, 24-75-402, amend (5)(jjj); and add (5)(mmm) and (5)(nnn) as follows:
24-75-402. Cash funds - limit on uncommitted reserves - reduction in the amount of fees - exclusions - definitions. (5) Notwithstanding any provision of this section to the contrary, the following cash funds are excluded from the limitations specified in this section:
(jjj) The employee ownership cash fund created in section 39-22-542.5 (8); and
(mmm) The reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7; and
(nnn) The health-related social needs reinvestment cash fund created in section 25.5-5-340.
SECTION 5. In Colorado Revised Statutes, 29-32-103, amend (1) as follows:
29-32-103. Transfers of money - permitted uses of the fund - continuous appropriation. (1) (a) The affordable housing support fund is hereby created in the state treasury. The support fund shall consistconsists of money deposited into it under subsectionsubsections (1)(b)(II) and (3) of this section. The division of housing shall administer the support fund and expend the money in the support fund only for the purposes set forth in sectionssection 29-32-104 (3)(a) and (3)(b). The division of local government in the department of local affairs created in section 24-32-103 shall expend the money in the support fund only for the purposes set forth in section 29-32-104 (3)(c). Except as otherwise provided in subsection (1)(b) of this section, all money not expended or encumbered, and all interest earned on the investment or deposit of money in the support fund, shall remainremains in the support fund and shalldoes not revert to the general fund or any other fund at the end of any fiscal year. Except as otherwise provided in subsection (1)(b) of this section, all money transferred to the support fund pursuant to subsection (3) of this section is continuously appropriated to the division of housing for the purposes set forth in sectionssection 29-32-104 (3)(a) and (3)(b) and, to the extent allocated by the division of housing, to the division of local government for the purposes set forth in section 29-32-104 (3)(c).
(b) (I) Subject to annual appropriation by the general assembly, the department of health care policy and financing may spend money from the affordable housing support fund for services that are:
(A) For health-related social needs, as described in the federal authorization the department of health care policy and financing received from the federal centers for medicare and medicaid services to provide coverage for health-related social needs through the state medical assistance program; and
(B) An allowable use of money in the fund as described in section 29-32-104 (3)(b).
(II) The money appropriated to the department of health care policy and financing pursuant to this subsection (1)(b) is an allocation from the fund for the purposes of determining the amount of money allowed for administrative costs pursuant to section 29-32-104 (3)(b).
SECTION 6. Appropriation. (1) For the 2025-26 state fiscal year, $14,971,442 is appropriated to the department of health care policy and financing. This appropriation consists of $12,191,459 from the general fund and $2,779,983 from cash funds. To implement this act, the department may use this appropriation as follows:
(a) $140,886 cash funds, which consists of $26,150 from the reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7 (2), C.R.S., and $114,736 from the health-related social needs reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S., for personal services related to general administration and is based on an assumption that the department will require an additional 3.0 FTE;
(b) $11,925 from cash funds, which consists of $2,213 from the reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7 (2), C.R.S., and $9,712 from the health-related social needs reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S., for operating expenses related to general administration;
(c) $2,218,592 from the affordable housing support fund created in section 29-32-103 (1)(a), C.R.S., for medical and long-term care services for medicaid-eligible individuals; and
(d) For use by transfers to other state department medicaid-funded programs:
(I) $277,040 from the reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7 (2), C.R.S., which is subject to the "(H)" notation as defined in the annual general appropriation act for the same fiscal year, for administration related to corrections;
(II) $3,750,994 from the general fund, which is subject to the "(M)" notation as defined in the annual general appropriation act for the same fiscal year, for reentry services related to corrections;
(III) $18,990 from cash funds, which is subject to the "(H)" notation as defined in the annual general appropriation act for the same fiscal year and consists of $6,163 from the reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7 (2), C.R.S., and $12,827 from the health-related social needs reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S., for the executive director's office related to human services;
(IV) $761,549 from the general fund, which is subject to the "(M)" notation as defined in the annual general appropriation act for the same fiscal year, for health-related social needs related to the office of children, youth, and families;
(V) $56,235 from the general fund, which is subject to the "(M)" notation as defined in the annual general appropriation act for the same fiscal year, for reentry services related to the office of children, youth, and families;
(VI) $112,550 from cash funds from the health-related social needs reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S., which is subject to the "(H)" notation as defined in the annual general appropriation act for the same fiscal year, for administration related to local affairs; and
(VII) $7,622,681 from the general fund, which is subject to the "(M)" notation as defined in the annual general appropriation act for the same fiscal year, for health-related social needs related to local affairs.
(2) For the 2025-26 state fiscal year, the general assembly anticipates that the department of health care policy and financing will receive $15,116,936 in federal funds. The appropriation in subsection (1) of this section is based on the assumption that the department will receive this amount of federal funds as follows:
Executive director's office, general administration
Personal services$140,886(I)
Operating expenses$11,925(I)
Medical services premiums
Medical and long-term care services for medicaid-eligible individuals$6,102,194
Transfers to other state department medicaid-funded programs
Corrections
Administration$277,040
Reentry services$2,766,733
Human services
Executive director's office$18,990
Office of children, youth, and families; health-related
social needs$380,774
Office of children, youth, and families; reentry services$28,117
Local affairs
Administration$112,550
Health-related social needs$5,277,727
SECTION 7. Appropriation - adjustments to 2025 long bill. (1) To implement this act, appropriations made in the annual general appropriation act for the 2025-26 state fiscal year to the department of corrections are adjusted as follows:
(a) For leased space, the reappropriated funds from money transferred from the department of health care policy and financing is increased by $4,650;
(b) For use by the medical services subprogram for personal services:
(I) The general fund appropriation is decreased by $2,005,975; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $2,534,659, and the related FTE is increased by 2.0 FTE; and
(c) For use by the medical services subprogram for operating expenses, the reappropriated funds from money transferred from the department of health care policy and financing is increased by $20,746; and
(d) For purchase of pharmaceuticals:
(I) The general fund appropriation is decreased by $1,745,019; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $1,745,019.
(2) To implement this act, appropriations made in the annual general appropriation act for the 2025-26 state fiscal year to the department of human services are adjusted as follows:
(a) For use by administration and finance for personal services, the reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $37,980, and the associated FTE is increased by 0.3 FTE;
(b) For use by the division of child welfare for preventing youth homelessness:
(I) The general fund appropriation is reduced by $761,549; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $761,549;
(c) For use by the division of youth services for medical services:
(I) The general fund appropriation is reduced by $9,291; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $9,291;
(d) For use by the division of youth services for program administration related to community programs:
(I) The general fund appropriation is reduced by $46,944; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $46,944.
(3) To implement this act, appropriations made in the annual general appropriation act for the 2025-26 state fiscal year to the department of local affairs are adjusted as follows:
(a) For use by the executive director's office:
(I) For personal services related to administration, the reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $91,826, and the associated FTE is increased by 1.0 FTE; and
(II) For operating expenses related to administration, the reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $7,950;
(b) For use by the division of housing for personal services, the reappaproriated funds appropriation from money transferred from the department of health care policy and financing is increased by $109,424 and the associated FTE is increased by 2.0 FTE;
(c) For use by the division of housing for operating expenses, the reappaproriated funds appropriation from money transferred from the department of health care policy and financing is increased by $15,900;
(d) For use by the division of housing for low income rental subsidies:
(I) The general fund appropriation is reduced by $3,917,871; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $3,917,871;
(e) For use by the division of housing for affordable housing construction grants and loans pursuant to section 24-32-721, C.R.S.:
(I) The general fund appropriation is reduced by $3,585,300; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $3,585,300;
(f) For use by the division of housing for housing assistance for persons transitioning from the criminal or juvenile justice system:
(I) The general fund appropriation is reduced by $119,510; and
(II) The reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $119,510; and
(g) For use by the division of housing for Proposition 123 programs for affordable home ownership and persons experiencing homelessness, the cash funds appropriation from the affordable housing support fund created in section 29-32-103 (1)(a), C.R.S., is decreased by $2,218,592.
SECTION 8. Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.
Signed By: James Rashad Coleman, Sr., President of the Senate
Signed By: Julie McCluskie, Speaker of the House of Representatives
Signed By: Esther van Mourik, Secretary of the Senate
Signed By: Vanessa Reilly, Chief Clerk of the House of Representatives
Signed By: Jared S. Polis, Governor of the State of Colorado