House Bill 25-1279

BY REPRESENTATIVE(S) Stewart R., Duran, Bird, Clifford, Gilchrist, Lieder, Sirota, Willford, Zokaie, McCluskie, Boesenecker, Brown, Hamrick, Ricks, Rutinel, Rydin, Stewart K.;

also SENATOR(S) Jodeh, Bridges, Exum, Gonzales J., Kipp, Michaelson Jenet, Wallace, Winter F.

Concerning collecting state-level data for the Colorado works program, and, in connection therewith, making an appropriation.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  In Colorado Revised Statutes, add 26-2-727 as follows:

26-2-727.  Improving state-level data for the works program - annual report. (1) (a)  No later than October 1, 2025, the state department, in consultation with the works allocation committee, shall develop a standardized process for each county to collect and report to the state department on a monthly basis the following information:

(I)  The total dollar amount of Colorado's TANF allocation that is spent by the county on:

(A)  Basic cash assistance;

(B)  Diversion payments;

(C)  Supportive service payments;

(D)  Administrative costs for participant-facing Colorado works program staff, including administrative costs incurred through third-party contracts;

(E)  Administrative costs for Colorado works program staff who are not participant facing, including administrative costs incurred through third-party contracts;

(F)  Administrative costs for programs or services that are not part of the Colorado works program or any portion of which is for programs or services that are not part of the Colorado works program, including administrative costs incurred through third-party contracts; and

(G)  Transfers or any other form of spending on programs and services other than the Colorado works program, including the Colorado child care assistance program, part 1 of article 4 of title 26.5, and the social services block grant authorized pursuant to the federal "Social Security Act", 42 U.S.C. sec. 1397;

(II)  The total dollar amount of Colorado's TANF allocation that is spent by the county on:

(A)  Third-party contracted services for participants who receive basic cash assistance; and

(B)  Third-party contracted services for participants who do not receive basic cash assistance;

(III)  An annual report of the impact the following policy changes have on the TANF caseload, churning, and a participant's average duration in the program:

(A)  Changes to sanction and re-engagement policies and processes adopted through state department rules;

(B)  Extending the enrollment period beyond the sixty-month lifetime limit under certain circumstances, as enacted in House Bill 22-1259;

(C)  Exemptions from work requirements under certain circumstances, as enacted in House Bill 22-1259; and

(D)  Changes to income disregards, as enacted in House Bill 22-1259; and

(IV)  The number of applications for the Colorado works program denied due to ineligibility and the percentage of total applications represented by this number.

(b)  The state department shall seek input from interested stakeholders in developing the standardized process required pursuant to subsection (1)(a) of this section, including the family voice council within the state department.

(c)  Notwithstanding the requirement to report the information described in subsection (1)(a) of this section on a monthly basis, any category of information that is in addition to what is currently reported to the state department by each county that cannot be reported through existing structures and processes may be reported on a quarterly basis until a reporting structure and process is established for that specific category of information.

(2) (a)  No later than October 1, 2025, the state department, in consultation with the works allocation committee, shall develop recommendations that include:

(I)  A menu of standardized outcome measures for third-party contracted services funded with Colorado's TANF allocation; and

(II)  Required levels of effectiveness for third-party contracted services funded with Colorado's TANF allocation.

(b)  The state department shall seek input from interested stakeholders and the works allocation committee in developing the recommendations required pursuant to subsection (2)(a) of this section, including the family voice council within the state department.

(3)  The requirement to report or develop recommendations related to third-party contracted services pursuant to subsections (1) and (2) of this section applies only to third-party contracted services that are new or renewed and does not apply to existing third-party contracted services.

(4)  Information reported pursuant to subsections (1) and (2) of this section must be reported through the county financial management system, to the extent possible, and through the standardized reporting process and structures developed pursuant to subsections (1) and (2) of this section.

(5)  No later than October 1, 2025, the state department shall submit a report to the joint budget committee that includes a description of the standardized process and recommendations developed pursuant to subsections (1)(a) and (2)(a) of this section, including an overview of the input and feedback received from interested stakeholders.

(6)  Beginning January 1, 2026, and each January thereafter, the state department shall submit a report to the joint budget committee that includes the information collected and reported pursuant to subsection (1)(a) of this section and the total dollar amount of Colorado's TANF allocation that is redistributed through the state budget or other programs and services.

(7)  Beginning January 1, 2026, and each month thereafter, the state department shall publish on the state department's website in a publicly accessible format the information accurately collected and reported pursuant to subsection (1)(a) of this section and the total dollar amount of Colorado's TANF allocation that is redistributed through the state budget or other programs and services.

(8)  Beginning January 1, 2026, and each January thereafter, the state department shall submit the information collected and reported pursuant to subsection (1)(a) of this section to the works allocation committee for review and identification of examples and best practices related to services funded with Colorado's TANF allocation.

(9)  Each county department shall provide the information required pursuant to subsections (1)(a) and (2)(a) of this section to the state department. The state department shall provide technical assistance to counties that provide the information required pursuant to subsections (1)(a) and (2)(a) of this section.

SECTION 2.  In Colorado Revised Statutes, 26-2-709, add (1)(f) as follows:

26-2-709.  Benefits - cash assistance - programs - rules - repeal. (1)  Standard of need - basic cash assistance grant. (f)  No later than July 1, 2026, the state department shall submit a report to the joint budget committee that includes the following information related to the standard of need for eligibility for basic cash assistance:

(I)  How Colorado's current eligibility for basic cash assistance compares to other states;

(II)  The amount of money other states invest in their TANF program;

(III)  A list of states that exemplify how to determine whether to update eligibility for basic cash assistance and how to do so;

(IV)  A proposed updated standard of need that reduces extreme child poverty, promotes economic mobility and self-sufficiency, and reflects the state's current economic conditions;

(V)  The number of additional families that would have access to basic cash assistance based on the proposed updated standard of need created in subsection (1)(f)(IV) of this section; and

(VI)  The estimated cost of the proposed updated standard of need.

SECTION 3.  Appropriation. For the 2025-26 state fiscal year, $154,000 is appropriated to the department of human services for use by the office of economic security. This appropriation is from federal temporary assistance for needy families block grant funds. To implement this act, the office may use the appropriation for works program evaluation.

SECTION 4.  Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly; except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.