Senate Committee of Reference Report

Committee on Local Government & Housing

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This is text that is removed from law.

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March 25, 2026

After consideration on the merits, the Committee recommends the following:

HB26-1257   be amended as follows, and as so amended, be referred to the Committee of the Whole with favorable recommendation and with a recommendation that it be placed on the consent calendar:

Page 1, Line 1Amend reengrossed bill, page 2, strike line 3 and substitute "(1)(a)(I),

Page 1, Line 2(1)(a)(II), (1)(a)(III), (1)(a)(IV) introductory portion, (1)(a)(IV)(A),

Page 1, Line 3(1)(b)(I), (2)(d),".

Page 1, Line 4Page 2, line 4, after "(3)(a)," insert "(3.5)(c),".

Page 1, Line 5Page 2, line 6, after the second "portion," insert "(4.5)(a)(I),".

Page 1, Line 6Page 3, strike line 2 and substitute "(7)(h)(III); and add (1)(a)(I.5),

Page 1, Line 7(1)(a)(II.5), (1)(a)(III.5), (1)(a)(IX), (1)(a)(X), (3)(d), (4)(a)(XIII), and

Page 1, Line 8(7)(i) as follows:".

Page 1, Line 9Page 3, after line 6 insert:

Page 1, Line 10"(I)  Illicit massage businesses present a facade of legitimate

Page 1, Line 11services, concealing that the primary business is the sex and labor

Page 1, Line 12trafficking of victims who are trapped in these businesses. The

Page 1, Line 13reputation and success of legitimate massage therapy businesses

Page 1, Line 14is denigrated and undermined by individuals who conceal

Page 1, Line 15unlawful activities, such as human trafficking, by falsely posing

Page 1, Line 16as massage therapy businesses.

Page 1, Line 17(I.5)  The operation of illicit massage therapy businesses is

Page 1, Line 18dangerous to the public and can result in unlawful sexual

Page 1, Line 19activities, human trafficking, illegal building improvements,

Page 1, Line 20zoning violations, and nuisance activities;

Page 1, Line 21(II)  Human trafficking is a growing problem throughout Colorado.

Page 1, Line 22From 1977 until 2015, the Colorado massage parlor code

Page 1, Line 23authorized local governments to regulate massage parlors

Page 2, Line 1through licensure programs. In 2014, a sunset review

Page 2, Line 2recommended sunsetting the massage parlor code based on a

Page 2, Line 3view that the code was not "a significant factor in the fight

Page 2, Line 4against prostitution" and was not necessa.ry to protect the

Page 2, Line 5public health, safety, and welfare. The Colorado massage

Page 2, Line 6parlor code was repealed in 2015 by Senate Bill 15-122,

Page 2, Line 7dismantling dozens of local licensing systems that local

Page 2, Line 8governments had enacted to address human trafficking.

Page 2, Line 9(II.5)  The "Massage Therapy Practice Act", article 235 of

Page 2, Line 10title 12, was enacted in 2008 to regulate the profession of

Page 2, Line 11massage therapy and to provide for consistent statewide

Page 2, Line 12certification and oversight of massage therapists. The "Massage

Page 2, Line 13Therapy Practice Act" permits local governments to inspect

Page 2, Line 14massage therapy licenses and business premises where massage

Page 2, Line 15therapy is conducted to ensure compliance with applicable

Page 2, Line 16laws.".

Page 2, Line 17Page 3, strike line 11 and substitute "reasonably likely to occur; and

Page 2, Line 18(III.5)  In 2018, through its authority as a home rule

Page 2, Line 19municipality, the city of Aurora enacted an ordinance to

Page 2, Line 20regulate massage facilities to combat human trafficking by

Page 2, Line 21focusing directly on the perpetrators of trafficking and the

Page 2, Line 22deterrence of unlawful behavior as an alternative to

Page 2, Line 23traditional law enforcement approaches. Other municipalities

Page 2, Line 24followed suit and the general assembly subsequently enacted

Page 2, Line 25House Bill 22-1300 in 2022 to authorize counties to enact similar

Page 2, Line 26regulations.".

Page 2, Line 27Page 3, after line 24 insert:

Page 2, Line 28"(IX)  Local regulation of massage facilities has been

Page 2, Line 29effective in reducing the number of illicit massage businesses,

Page 2, Line 30deterring the location of new illicit massage businesses, and

Page 2, Line 31focusing on the behavior of perpetrators of human trafficking;

Page 2, Line 32and

Page 2, Line 33(X)  The local regulation of massage facilities,

Page 2, Line 34implemented consistently with the "Massage Therapy Practice

Page 2, Line 35Act", recognizes that massage therapy is a legitimate

Page 2, Line 36health-care profession that provides benefits to the residents

Page 2, Line 37of Colorado.".

Page 2, Line 38Page 5, after line 3 insert:

Page 2, Line 39

Page 3, Line 1"(3.5)  Except as otherwise provided in subsection (3)(c) of this

Page 3, Line 2section, a local government shall establish a process in accordance with

Page 3, Line 334 U.S.C. sec. 41101, which must be established by ordinance or

Page 3, Line 4resolution, in accordance with 34 U.S.C. sec. 41101; must meet the

Page 3, Line 5criteria established by the federal bureau of investigation in implementing

Page 3, Line 634 U.S.C. sec. 41101; and must be performed in accordance with section

Page 3, Line 724-33.5-424.5, to require that, as a condition for a person remaining as or

Page 3, Line 8becoming an operator, owner, or employee:

Page 3, Line 9(c)  A prospective operator or owner submit to a background check

Page 3, Line 10performed in accordance with section 24-33.5-424.5 at least thirty days

Page 3, Line 11before, as applicable, being granted a license to operate a massage facility

Page 3, Line 12or assuming an ownership interest in a massage facility that would make

Page 3, Line 13the prospective owner an owner.".

Page 3, Line 14Page 7, after line 11 insert:

Page 3, Line 15"(I)  Has not submitted to a required background check at least

Page 3, Line 16thirty days before assuming an ownership interest in a massage facility

Page 3, Line 17that would make the prospective owner an owner pursuant to subsections

Page 3, Line 18(4)(c) and (4)(c.5) of this section; or".