House Committee of Reference Report

Committee on Health & Human Services

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This is text that is removed from law.

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April 7, 2026

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

SB26-113     be amended as follows, and as so amended, be referred to the Committee on Finance with favorable recommendation:

Page 1, Line 1Amend reengrossed bill, page 6, line 11, strike "(2)(e)." and substitute

Page 1, Line 2"(4)(e)."

Page 1, Line 3Page 6, line 14, strike "administrator," and substitute "manager,".

Page 1, Line 4Page 6, line 15, strike "administrator," and substitute "manager,".

Page 1, Line 5Page 7, strike lines 14 through 17 and substitute:

Page 1, Line 6"(b)  A recovery residence shall not categorically

Page 1, Line 7prohibit a recovery resident's ability to take prescribed

Page 1, Line 8medications, including controlled medications, in accordance

Page 1, Line 9with a physician's orders. Admission to, or continued residence

Page 1, Line 10in, a recovery residence must not be contingent upon the

Page 1, Line 11cessation of taking prescribed medications unless the recovery

Page 1, Line 12residence determines, through an individualized assessment,

Page 1, Line 13that the recovery resident's use of the medication poses a risk to

Page 1, Line 14the safety of the recovery residents, or to the recovery

Page 1, Line 15environment, and that the risk cannot be mitigated by

Page 1, Line 16reasonable accommodation. In making an individualized

Page 1, Line 17determination, the recovery residence shall consider individual

Page 1, Line 18factors for the recovery resident who is prescribed the

Page 1, Line 19medication that may mitigate or increase risk of misuse or

Page 1, Line 20diversion of the prescribed medication. The recovery residence

Page 1, Line 21shall establish policies and procedures to implement this

Page 1, Line 22subsection (6)(b).".

Page 1, Line 23Page 7, line 19, strike "staff".

Page 2, Line 1Page 8, after line 6 insert:

Page 2, Line 2"(9) (a)  Notwithstanding any other provision of this part

Page 2, Line 310, a recovery residence that is chartered by Oxford House, Inc.,

Page 2, Line 4or its successor organization, referred to in this subsection (9)

Page 2, Line 5as a "chartered recovery residence", may operate in this state

Page 2, Line 6and receive referrals and funding pursuant to this part 10 if the

Page 2, Line 7chartered recovery residence:

Page 2, Line 8(I)  Operates in accordance with this subsection (9);

Page 2, Line 9(II)  Operates in accordance with the requirements of

Page 2, Line 10homes established pursuant to 42 U.S.C. sec. 300x-25; and

Page 2, Line 11(III)  Is democratically run shared housing that has no

Page 2, Line 12operator, manager, paid staff, or provision of professional

Page 2, Line 13treatment or therapy.

Page 2, Line 14(b)  No later than July 1, 2027, Oxford House, Inc. shall

Page 2, Line 15provide to the BHA, in the form and manner prescribed by the

Page 2, Line 16BHA, a list of all chartered recovery residences in the state as

Page 2, Line 17of the date of the notice.

Page 2, Line 18(c)  Beginning July 1, 2027, Oxford House, Inc. shall notify

Page 2, Line 19the BHA in the form and manner prescribed by the BHA when it

Page 2, Line 20issues a new charter to Oxford House, Inc. in the state.

Page 2, Line 21(d)  Upon notification that a recovery residence is

Page 2, Line 22chartered by Oxford House, Inc. or its successor organization,

Page 2, Line 23the BHA shall issue a recovery residence license to the

Page 2, Line 24chartered recovery residence.

Page 2, Line 25(e)  On and after July 1, 2027, Oxford House, Inc. shall

Page 2, Line 26notify the BHA within ten days after closing or revoking a

Page 2, Line 27recovery residence's charter.

Page 2, Line 28(f)  Beginning July 1, 2027, a chartered recovery residence

Page 2, Line 29shall submit occurrence reports to the BHA, in accordance with

Page 2, Line 30section 27-50-1006 and in the form, manner, and time frame

Page 2, Line 31prescribed by BHA.

Page 2, Line 32(g)  A chartered recovery residence is not subject to an

Page 2, Line 33initial or annual onsite licensure survey.

Page 2, Line 34(h)  Beginning July 1, 2027, the BHA may inspect a

Page 2, Line 35chartered recovery residence in response to a complaint or an

Page 2, Line 36occurrence report received by the BHA as it deems necessary to

Page 2, Line 37ensure that the health, safety, and welfare of recovery

Page 2, Line 38residents are protected, and that the chartered recovery

Page 2, Line 39residence is operating in accordance with this subsection (9). The

Page 2, Line 40BHA may require that Oxford House, Inc. submit in writing, in a

Page 2, Line 41form prescribed by the BHA, a plan detailing the measures that

Page 2, Line 42Oxford House, Inc. will take to correct violations found by the

Page 3, Line 1BHA as a result of inspections undertaken pursuant to this

Page 3, Line 2subsection (9). The BHA may take additional actions in

Page 3, Line 3accordance with section 27-50-1005.".

Page 3, Line 4Page 8, line 27, strike "government;" and substitute "government

Page 3, Line 5applicable to residential dwellings of the same type, size, and

Page 3, Line 6occupancy classification in the same jurisdiction.".

Page 3, Line 7Page 9, strike line 1.

Page 3, Line 8Page 9, lines 3 and 4, strike "requirements, including criminal

Page 3, Line 9history background check requirements;" and substitute

Page 3, Line 10"requirements;".

Page 3, Line 11Page 9, strike lines 10 through 16 and substitute "section 27-50-1005

Page 3, Line 12(3); and".

Page 3, Line 13Reletter succeeding paragraph accordingly.

Page 3, Line 14Page 9, strike lines 21 through 27.

Page 3, Line 15Page 10, strike line 1.

Page 3, Line 16Renumber succeeding subsections accordingly.

Page 3, Line 17Page 10, line 4, after "codes." insert "A recovery residence that

Page 3, Line 18operates in a single-family or multi-family residential

Page 3, Line 19structure is not required to comply with commercial,

Page 3, Line 20institutional, or assembly occupancy standards solely by

Page 3, Line 21reason of its licensure under this part 10, regardless of the

Page 3, Line 22jurisdiction in which the recovery residence operates.".

Page 3, Line 23Page 13, lines 4 and 5, strike "sections 24-5-101 and 12-20-206" and

Page 3, Line 24substitute "section 24-5-101 and subsection (5) of this section".

Page 3, Line 25Page 13, lines 7 and 8, strike "sections 24-5-101 and 12-20-206." and

Page 3, Line 26substitute "section 24-5-101 and subsection (5) of this section.".

Page 3, Line 27Page 13, after line 10 insert:

Page 3, Line 28"(5) (a)  As used in this subsection (5), "directly related to"

Page 3, Line 29means that the criminal offense for which an applicant has been

Page 3, Line 30convicted is still relevant at the time of the application for a

Page 4, Line 1license and would create an unreasonable risk to public safety

Page 4, Line 2because the offense directly relates to the duties and

Page 4, Line 3responsibilities of the operation of a recovery residence, as

Page 4, Line 4determined by BHA after consideration of all evidence

Page 4, Line 5available to the BHA.

Page 4, Line 6(b)  If an applicant has been convicted of a crime, the BHA

Page 4, Line 7may only consider the applicant's conviction for a three-year

Page 4, Line 8period beginning on the date of conviction or the end of

Page 4, Line 9incarceration, whichever date is later, if the applicant has not

Page 4, Line 10been convicted of any other criminal offense during the

Page 4, Line 11three-year period. After the three-year period, the BHA shall

Page 4, Line 12only consider the individual's application for licensure in the

Page 4, Line 13same manner as an applicant who does not possess a prior

Page 4, Line 14criminal history record; except that the BHA may consider a

Page 4, Line 15conviction for a crime that is directly related to the operation

Page 4, Line 16of a recovery residence.

Page 4, Line 17(c)  If the BHA is considering an applicant's criminal

Page 4, Line 18history record during the application process for licensure, the

Page 4, Line 19BHA may only deny or refuse to issue or renew the license based

Page 4, Line 20on the information in the criminal history record if the BHA

Page 4, Line 21determines that the applicant has not been rehabilitated and is

Page 4, Line 22unable to perform the duties and responsibilities of the

Page 4, Line 23ownership or management of a recovery residence without

Page 4, Line 24creating an unreasonable risk to public safety.

Page 4, Line 25(d)  An applicant's conviction for a crime does not, in and

Page 4, Line 26of itself, disqualify the applicant from being issued a license to

Page 4, Line 27operate a recovery residence.

Page 4, Line 28(e) (I)  An applicant or potential applicant whose

Page 4, Line 29conviction may affect their application for licensure may

Page 4, Line 30petition the BHA at any time, including prior to submitting an

Page 4, Line 31application, for a decision as to whether the BHA is permitted to

Page 4, Line 32consider the applicant's conviction when reviewing the

Page 4, Line 33application for licensure.

Page 4, Line 34(II)  If the BHA determines that the BHA is permitted to

Page 4, Line 35consider an applicant's or potential applicant's conviction, the

Page 4, Line 36BHA shall advise the applicant or potential applicant of any

Page 4, Line 37actions the applicant or potential applicant may take to remedy

Page 4, Line 38the potential effect of the conviction. If a remedial action is

Page 4, Line 39advised by the BHA, the applicant may submit a revised petition

Page 4, Line 40on or before a date determined by the BHA for completion of the

Page 4, Line 41remedial action.

Page 4, Line 42(III)  If the BHA makes an initial determination for a

Page 4, Line 43potential applicant pursuant to this subsection (5)(e), the BHA

Page 5, Line 1may require a new determination at the time an individual

Page 5, Line 2formally applies for licensure.

Page 5, Line 3(f)   An applicant who petitions the BHA must include in the

Page 5, Line 4petition any additional information about the applicant's

Page 5, Line 5current circumstances, including the time since the criminal

Page 5, Line 6offense was committed and the sentence was completed, the

Page 5, Line 7applicant's age at the time the offense was committed, the

Page 5, Line 8payment of any court-ordered restitution, evidence of the

Page 5, Line 9applicant's rehabilitation, testimonials, and the applicant's

Page 5, Line 10employment history and employment aspirations.

Page 5, Line 11(g) (I)  In order to deny an application for licensure

Page 5, Line 12pursuant to this section based on the information in an

Page 5, Line 13applicant's criminal history record, the BHA has the burden to

Page 5, Line 14prove by clear and convincing evidence that the denial is

Page 5, Line 15directly related to information in the applicant's criminal

Page 5, Line 16history record as it pertains to potential performance in, and

Page 5, Line 17the potential creation of, an unreasonable risk to public safety

Page 5, Line 18through the operation or management of a recovery residence

Page 5, Line 19for which the applicant is applying for licensure.

Page 5, Line 20(II)  If an individual files a petition for a determination

Page 5, Line 21pursuant to this subsection (5), receives notice of an agency

Page 5, Line 22adjudicatory hearing, files an answer to the notice pursuant to

Page 5, Line 23section 24-4-105 (2)(b), and fails to appear at the scheduled time

Page 5, Line 24and place of the hearing, the administrative law judge shall

Page 5, Line 25enter a default judgment in favor of the BHA.

Page 5, Line 26(h)  This subsection (5) does not:

Page 5, Line 27(I)  Negate any provision for licensure in this title 27 that

Page 5, Line 28requires an applicant to submit information regarding the

Page 5, Line 29applicant's criminal history record to the BHA with an

Page 5, Line 30application;

Page 5, Line 31(II)  Negate any other reason specified in this title 27 for

Page 5, Line 32which the BHA may deny an applicant licensure;

Page 5, Line 33(III)  Negate any requirement under federal law that

Page 5, Line 34requires an individual to obtain or maintain a license; or

Page 5, Line 35(IV)  Negate the list of determining factors that must not

Page 5, Line 36be considered regarding an applicant's criminal history record

Page 5, Line 37pursuant to section 24-5-101 (2)(b).".

Page 5, Line 38Renumber succeeding subsections accordingly.

Page 5, Line 39Page 13, line 11, strike "(6)" and substitute "(7)".

Page 5, Line 40Page 13, line 17, strike "(6)" and substitute "(7)".

Page 6, Line 1Page 15, line 27, strike "owner, manager," and substitute "owner".