Senate Bill 25-308 Reengrossed

A Bill for an Act

• Page 1, Line 101Concerning measures related to certain state medical

• Page 1, Line 102assistance program federal authorizations, and, in

• Page 1, Line 103connection therewith, funding services from savings

• Page 1, Line 104realized from state medical assistance program

• Page 1, Line 105federal authorizations and making and reducing

• Page 1, Line 106appropriations.

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/.)

Joint Budget Committee. The department of health care policy and financing (state department) received federal authorization to provide coverage for health-related social needs and to provide reentry services to justice-involved individuals through the medicaid program. The federal authorization requires the savings of state money realized from the federal authorizations to be spent on similar services.

The bill creates 2 cash funds, one for health-related social needs and one for reentry services for justice-involved individuals. The bill requires the state treasurer to transfer the savings of state money realized from each federal authorization to the respective cash fund. Subject to annual appropriation by the general assembly, the state department may expend money from the funds to provide health-related social needs or reentry services to justice-involved individuals.

The bill requires the state department to develop a workforce to provide peer support services in order to comply with the terms of the federal authorization for health-related social needs.

The bill authorizes the state department, subject to annual appropriation by the general assembly, to spend money from the affordable housing support fund for services authorized by the federal authorization to provide coverage for health-related social needs.

The bill makes and reduces appropriations to the state department, the department of corrections, the department of human services, and the department of local affairs.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, add 25.5-5-340 as follows:

• Page 2, Line 325.5-5-340.  Health-related social needs reinvestment cash fund

• Page 2, Line 4- creation - definitions. (1)  As used in this section, unless the context otherwise requires:

• Page 2, Line 5(a)  "Federal authorization" means the authorization the

• Page 2, Line 6state department received from the federal centers for

• Page 2, Line 7medicare and medicaid services to provide coverage for

• Page 2, Line 8health-related social needs through the state medical assistance program.

• Page 2, Line 9(b)  "Fund" means the health-related social needs

• Page 2, Line 10reinvestment cash fund created in this section.

• Page 3, Line 1(2) (a)  The health-related social needs reinvestment cash

• Page 3, Line 2fund is created in the state treasury. The fund consists of money

• Page 3, Line 3transferred to the fund pursuant to subsection (3) of this

• Page 3, Line 4section and any other money that the general assembly may appropriate or transfer to the fund.

• Page 3, Line 5(b)  In accordance with section 24-36-114 (1), the state

• Page 3, Line 6treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.

• Page 3, Line 7(3)  Beginning June 30, 2026, and on June 30 of each year

• Page 3, Line 8thereafter, the state treasurer shall transfer from the

• Page 3, Line 9general fund to the fund an amount of money equal to the

• Page 3, Line 10amount of unspent money that reverted to the general fund in

• Page 3, Line 11that year from the appropriation from the general fund to the state department for health-related social needs.

• Page 3, Line 12(4)  Subject to annual appropriation by the general

• Page 3, Line 13assembly, the state department may expend money from the fund

• Page 3, Line 14for services that support health-related social needs and

• Page 3, Line 15related administrative services, as authorized by the federal authorization.

• Page 3, Line 16(5)  On or after November 1, 2025, and on or after

• Page 3, Line 17November 1 each year thereafter, the state department shall

• Page 3, Line 18present to the joint budget committee a recommendation for

• Page 3, Line 19spending money in the fund to expand and enhance services

• Page 3, Line 20authorized by the federal authorization. When developing the

• Page 3, Line 21recommendation, the state department shall consult with state

• Page 3, Line 22agencies participating in services provided through, and

• Page 3, Line 23stakeholders who represent the members receiving services included in, the federal authorization.

• Page 4, Line 1SECTION 2.  In Colorado Revised Statutes, 25.5-5-339, add (11) as follows:

• Page 4, Line 225.5-5-339.  Coverage for services addressing health-related

• Page 4, Line 3social needs feasibility study - federal authorization - report - rules.

• Page 4, Line 4(11)  To provide peer support services in compliance with the

• Page 4, Line 5terms of the federal authorization, the state department shall develop a workforce to provide peer support services.

• Page 4, Line 6SECTION 3.  In Colorado Revised Statutes, add 25.5-4-505.7 as follows:

• Page 4, Line 725.5-4-505.7.  Reentry services for justice-involved individuals

• Page 4, Line 8reinvestment cash fund - creation - definitions. (1)  As used in this section, unless the context otherwise requires:

• Page 4, Line 9(a)  "Federal authorization" means the authorization the

• Page 4, Line 10state department received from the federal centers for

• Page 4, Line 11medicare and medicaid services to provide reentry services to

• Page 4, Line 12justice-involved individuals through the state medical assistance program.

• Page 4, Line 13(b)  "Fund" means the reentry services for justice-involved individuals reinvestment cash fund created in this section.

• Page 4, Line 14(2)  The reentry services for justice-involved individuals

• Page 4, Line 15reinvestment cash fund is created in the state treasury. The

• Page 4, Line 16fund consists of money appropriated pursuant to subsection (3)

• Page 4, Line 17of this section and any other money that the general assembly

• Page 4, Line 18may appropriate or transfer to the fund. In accordance with

• Page 4, Line 19section 24-36-114 (1), the state treasurer shall credit all

• Page 4, Line 20interest and income derived from the deposit and investment of money in the fund to the general fund.

• Page 5, Line 1(3)  Beginning June 30, 2026, and on June 30 of each year

• Page 5, Line 2thereafter, the state treasurer shall transfer from the

• Page 5, Line 3general fund to the fund an amount of money equal to the

• Page 5, Line 4amount of unspent money that reverted to the general fund in

• Page 5, Line 5that year from the appropriation from the general fund to the

• Page 5, Line 6state department for reentry services for justice-involved individuals.

• Page 5, Line 7(4)  Subject to annual appropriation by the general

• Page 5, Line 8assembly, the state department may expend money from the fund

• Page 5, Line 9for medicaid services for individuals who are incarcerated in,

• Page 5, Line 10are at risk of being incarcerated in, or are being released from

• Page 5, Line 11a carceral facility, and for related administrative services, as authorized through the federal authorization.

• Page 5, Line 12(5)  On or after November 1, 2025, and on or after

• Page 5, Line 13November 1 each year thereafter, the state department shall

• Page 5, Line 14present to the joint budget committee a recommendation for

• Page 5, Line 15spending money in the fund to expand and enhance services

• Page 5, Line 16authorized by the federal authorization When developing the

• Page 5, Line 17recommendation, the state department shall consult with state

• Page 5, Line 18agencies participating in services provided through, and

• Page 5, Line 19stakeholders who represent the members receiving services included in, the federal authorization.

• Page 5, Line 20SECTION 4.  In Colorado Revised Statutes, 24-75-402, amend (5)(jjj); and add (5)(lll) and (5)(mmm) as follows:

• Page 5, Line 2124-75-402.  Cash funds - limit on uncommitted reserves -

• Page 5, Line 22reduction in the amount of fees - exclusions - definitions.

• Page 6, Line 1(5)  Notwithstanding any provision of this section to the contrary, the

• Page 6, Line 2following cash funds are excluded from the limitations specified in this section:

• Page 6, Line 3(jjj)  The employee ownership cash fund created in section 39-22-542.5 (8); and

• Page 6, Line 4(lll)  The reentry services for justice-involved individuals reinvestment cash fund created in section 25.5-4-505.7; and

• Page 6, Line 5(mmm)  The health-related social needs reinvestment cash fund created in section 25.5-5-340.

• Page 6, Line 6SECTION 5.  In Colorado Revised Statutes, 29-32-103, amend (1) as follows:

• Page 6, Line 729-32-103.  Transfers of money - permitted uses of the fund -

• Page 6, Line 8continuous appropriation. (1) (a)  The affordable housing support fund

• Page 6, Line 9is hereby created in the state treasury. The support fund shall consist

• Page 6, Line 10consists of money deposited into it under subsection subsections

• Page 6, Line 11(1)(b)(II) and (3) of this section. The division of housing shall administer

• Page 6, Line 12the support fund and expend the money in the support fund only for the

• Page 6, Line 13purposes set forth in sections section 29-32-104 (3)(a) and (3)(b). The

• Page 6, Line 14division of local government in the department of local affairs created in

• Page 6, Line 15section 24-32-103 shall expend the money in the support fund only for the

• Page 6, Line 16purposes set forth in section 29-32-104 (3)(c). Except as otherwise

• Page 6, Line 17provided in subsection (1)(b) of this section, all money not expended

• Page 6, Line 18or encumbered, and all interest earned on the investment or deposit of

• Page 6, Line 19money in the support fund, shall remain remains in the support fund and

• Page 6, Line 20shall does not revert to the general fund or any other fund at the end of

• Page 6, Line 21any fiscal year. Except as otherwise provided in subsection (1)(b)

• Page 6, Line 22of this section, all money transferred to the support fund pursuant to

• Page 7, Line 1subsection (3) of this section is continuously appropriated to the division

• Page 7, Line 2of housing for the purposes set forth in sections section 29-32-104 (3)(a)

• Page 7, Line 3and (3)(b) and, to the extent allocated by the division of housing, to the

• Page 7, Line 4division of local government for the purposes set forth in section 29-32-104 (3)(c).

• Page 7, Line 5(b) (I)  Subject to annual appropriation by the general

• Page 7, Line 6assembly, the department of health care policy and financing

• Page 7, Line 7may spend money from the affordable housing support fund for services that are:

• Page 7, Line 8(A)  For health-related social needs, as described in the

• Page 7, Line 9federal authorization the department of health care policy and

• Page 7, Line 10financing received from the federal centers for medicare and

• Page 7, Line 11medicaid services to provide coverage for health-related social needs through the state medical assistance program; and

• Page 7, Line 12(B)  An allowable use of money in the fund as described in section 29-32-104 (3)(b).

• Page 7, Line 13(II)  The money appropriated to the department of health

• Page 7, Line 14care policy and financing pursuant to this subsection (1)(b) is an

• Page 7, Line 15allocation from the fund for the purposes of determining the

• Page 7, Line 16amount of money allowed for administrative costs pursuant to section 29-32-104 (3)(b).

• Page 7, Line 17SECTION 6. Appropriation. (1)  For the 2025-26 state fiscal

• Page 7, Line 18year, $14,971,442 is appropriated to the department of health care policy

• Page 7, Line 19and financing. This appropriation consists of $12,191,459 from the

• Page 7, Line 20general fund and $2,779,983 from cash funds. To implement this act, the department may use this appropriation as follows:

• Page 7, Line 21(a)  $140,886 cash funds, which consists of $26,150 from the

• Page 8, Line 1reentry services for justice-involved individuals reinvestment cash fund

• Page 8, Line 2created in section 25.5-4-505.7 (2), C.R.S., and $114,736 from the

• Page 8, Line 3health-related social needs reinvestment cash fund created in section

• Page 8, Line 425.5-5-340 (2)(a), C.R.S., for personal services related to general

• Page 8, Line 5administration and is based on an assumption that the department will require an additional 3.0 FTE;

• Page 8, Line 6(b)  $11,925 from cash funds, which consists of $2,213 from the

• Page 8, Line 7reentry services for justice-involved individuals reinvestment cash fund

• Page 8, Line 8created in section 25.5-4-505.7 (2), C.R.S., and $9,712 from the

• Page 8, Line 9health-related social needs reinvestment cash fund created in section

• Page 8, Line 1025.5-5-340 (2)(a), C.R.S., for operating expenses related to general administration;

• Page 8, Line 11(c)  $2,218,592 from the affordable housing support fund created

• Page 8, Line 12in section 29-32-103 (1)(a), C.R.S., for medical and long-term care services for medicaid-eligible individuals; and

• Page 8, Line 13(d)  For use by transfers to other state department medicaid-funded programs:

• Page 8, Line 14(I)  $277,040 from the reentry services for justice-involved

• Page 8, Line 15individuals reinvestment cash fund created in section 25.5-4-505.7 (2),

• Page 8, Line 16C.R.S., which is subject to the "(H)" notation as defined in the annual

• Page 8, Line 17general appropriation act for the same fiscal year, for administration related to corrections;

• Page 8, Line 18(II)  $3,750,994 from the general fund, which is subject to the

• Page 8, Line 19"(M)" notation as defined in the annual general appropriation act for the same fiscal year, for reentry services related to corrections;

• Page 8, Line 20(III)  $18,990 from cash funds, which is subject to the "(H)"

• Page 8, Line 21notation as defined in the annual general appropriation act for the same

• Page 9, Line 1fiscal year and consists of $6,163 from the reentry services for

• Page 9, Line 2justice-involved individuals reinvestment cash fund created in section

• Page 9, Line 325.5-4-505.7 (2), C.R.S., and $12,827 from the health-related social needs

• Page 9, Line 4reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S., for the executive director's office related to human services;

• Page 9, Line 5(IV)  $761,549 from the general fund, which is subject to the

• Page 9, Line 6"(M)" notation as defined in the annual general appropriation act for the

• Page 9, Line 7same fiscal year, for health-related social needs related to the office of children, youth, and families;

• Page 9, Line 8(V)  $56,235 from the general fund, which is subject to the "(M)"

• Page 9, Line 9notation as defined in the annual general appropriation act for the same

• Page 9, Line 10fiscal year, for reentry services related to the office of children, youth, and families;

• Page 9, Line 11(VI)  $112,550 from cash funds from the health-related social

• Page 9, Line 12needs reinvestment cash fund created in section 25.5-5-340 (2)(a), C.R.S.,

• Page 9, Line 13which is subject to the "(H)" notation as defined in the annual general

• Page 9, Line 14appropriation act for the same fiscal year, for administration related to local affairs; and

• Page 9, Line 15(VII)  $7,622,681 from the general fund, which is subject to the

• Page 9, Line 16"(M)" notation as defined in the annual general appropriation act for the same fiscal year, for health-related social needs related to local affairs.

• Page 9, Line 17(2)  For the 2025-26 state fiscal year, the general assembly

• Page 9, Line 18anticipates that the department of health care policy and financing will

• Page 9, Line 19receive $15,116,936 in federal funds. The appropriation in subsection (1)

• Page 9, Line 20of this section is based on the assumption that the department will receive this amount of federal funds as follows:

• Page 9, Line 21Executive director's office, general administration

• Personal services$140,886(I)

• Page 10, Line 1Operating expenses$11,925(I)

• Medical services premiums

• Page 10, Line 2Medical and long-term care services for medicaid-eligible individuals$6,102,194

• Page 10, Line 3Transfers to other state department medicaid-funded programs

• Page 10, Line 4Corrections

• Administration$277,040

• Page 10, Line 5Reentry services$2,766,733

• Human services

• Page 10, Line 6Executive director's office$18,990

• Page 10, Line 7Office of children, youth, and families; health-related social needs$380,774

• Page 10, Line 8Office of children, youth, and families; reentry services$28,117

• Local affairs

• Page 10, Line 9Administration$112,550

• Health-related social needs$5,277,727

• Page 10, Line 10SECTION 7. Appropriation - adjustments to 2025 long bill.

• Page 10, Line 11(1)  To implement this act, appropriations made in the annual general

• Page 10, Line 12appropriation act for the 2025-26 state fiscal year to the department of corrections are adjusted as follows:

• Page 10, Line 13(a)  For leased space, the reappropriated funds from money

• Page 10, Line 14transferred from the department of health care policy and financing is increased by $4,650;

• Page 10, Line 15(b)  For use by the medical services subprogram for personal

• Page 10, Line 16services:

• Page 11, Line 1(I)  The general fund appropriation is decreased by $2,005,975; and

• Page 11, Line 2(II)  The reappropriated funds appropriation from money

• Page 11, Line 3transferred from the department of health care policy and financing is

• Page 11, Line 4increased by $2,534,659, and the related FTE is increased by 2.0 FTE; and

• Page 11, Line 5(c)  For use by the medical services subprogram for operating

• Page 11, Line 6expenses, the reappropriated funds from money transferred from the

• Page 11, Line 7department of health care policy and financing is increased by $20,746; and

• Page 11, Line 8(d)  For purchase of pharmaceuticals:

• Page 11, Line 9(I)  The general fund appropriation is decreased by $1,745,019; and

• Page 11, Line 10(II)  The reappropriated funds appropriation from money

• Page 11, Line 11transferred from the department of health care policy and financing is increased by $1,745,019.

• Page 11, Line 12(2)  To implement this act, appropriations made in the annual

• Page 11, Line 13general appropriation act for the 2025-26 state fiscal year to the department of human services are adjusted as follows:

• Page 11, Line 14(a)  For use by administration and finance for personal services,

• Page 11, Line 15the reappropriated funds appropriation from money transferred from the

• Page 11, Line 16department of health care policy and financing is increased by $37,980, and the associated FTE is increased by 0.3 FTE;

• Page 11, Line 17(b)  For use by the division of child welfare for preventing youth homelessness:

• Page 11, Line 18(I)  The general fund appropriation is reduced by $761,549; and

• Page 11, Line 19(II)  The reappropriated funds appropriation from money

• Page 12, Line 1transferred from the department of health care policy and financing is increased by $761,549;

• Page 12, Line 2(c)  For use by the division of youth services for medical services:

• (I)  The general fund appropriation is reduced by $9,291; and

• Page 12, Line 3(II)  The reappropriated funds appropriation from money

• Page 12, Line 4transferred from the department of health care policy and financing is increased by $9,291;

• Page 12, Line 5(d)  For use by the division of youth services for program administration related to community programs:

• Page 12, Line 6(I)  The general fund appropriation is reduced by $46,944; and

• Page 12, Line 7(II)  The reappropriated funds appropriation from money

• Page 12, Line 8transferred from the department of health care policy and financing is increased by $46,944.

• Page 12, Line 9(3)  To implement this act, appropriations made in the annual

• Page 12, Line 10general appropriation act for the 2025-26 state fiscal year to the department of local affairs are adjusted as follows:

• Page 12, Line 11(a)  For use by the executive director's office:

• Page 12, Line 12(I)  For personal services related to administration, the

• Page 12, Line 13reappropriated funds appropriation from money transferred from the

• Page 12, Line 14department of health care policy and financing is increased by $91,826, and the associated FTE is increased by 1.0 FTE; and

• Page 12, Line 15(II)  For operating expenses related to administration, the

• Page 12, Line 16reappropriated funds appropriation from money transferred from the department of health care policy and financing is increased by $7,950;

• Page 12, Line 17(b)  For use by the division of housing for personal services, the

• Page 12, Line 18reappaproriated funds appropriation from money transferred from the

• Page 12, Line 19department of health care policy and financing is increased by $109,424 and the associated FTE is increased by 2.0 FTE;

• Page 13, Line 1(c)  For use by the division of housing for operating expenses, the

• Page 13, Line 2reappaproriated funds appropriation from money transferred from the department of health care policy and financing is increased by $15,900;

• Page 13, Line 3(d)  For use by the division of housing for low income rental subsidies:

• Page 13, Line 4(I)  The general fund appropriation is reduced by $3,917,871; and

• Page 13, Line 5(II)  The reappropriated funds appropriation from money

• Page 13, Line 6transferred from the department of health care policy and financing is increased by $3,917,871;

• Page 13, Line 7(e)  For use by the division of housing for affordable housing construction grants and loans pursuant to section 24-32-721, C.R.S.:

• Page 13, Line 8(I)  The general fund appropriation is reduced by $3,585,300; and

• Page 13, Line 9(II)  The reappropriated funds appropriation from money

• Page 13, Line 10transferred from the department of health care policy and financing is increased by $3,585,300;

• Page 13, Line 11(f)  For use by the division of housing for housing assistance for persons transitioning from the criminal or juvenile justice system:

• Page 13, Line 12(I)  The general fund appropriation is reduced by $119,510; and

• Page 13, Line 13(II)  The reappropriated funds appropriation from money

• Page 13, Line 14transferred from the department of health care policy and financing is increased by $119,510; and

• Page 13, Line 15(g)  For use by the division of housing for Proposition 123

• Page 13, Line 16programs for affordable home ownership and persons experiencing

• Page 13, Line 17homelessness, the cash funds appropriation from the affordable housing

• Page 13, Line 18support fund created in section 29-32-103 (1)(a), C.R.S., is decreased by

• Page 13, Line 19$2,218,592.

• Page 14, Line 1SECTION 8.  Safety clause. The general assembly finds,

• Page 14, Line 2determines, and declares that this act is necessary for the immediate

• Page 14, Line 3preservation of the public peace, health, or safety or for appropriations for

• Page 14, Line 4the support and maintenance of the departments of the state and state institutions.