This amendment provides specific funding for the 2026-27 budget to help state agencies manage public assistance programs by hiring staff, buying technology, and paying for legal services.
HB26-1429
County Administration Public Assistance Programs
In one sentence
This law requires state agencies to contract with a single county department to run a centralized service for investigating fraud in public benefit programs and sets new rules for how counties manage these benefits.
What it does
- Requires the Department of Health Care Policy and Financing, along with other state departments, to hire one county department to run a Centralized Member Integrity Service that investigates fraud and recovers overpayments starting July 1, 2027.
- Creates a cash fund using money recovered from fraud investigations to pay for running this new service.
- Requires the creation of performance-based contracts between state agencies and each county department by July 1, 2027, which include rules for managing benefits and steps to fix problems if they occur.
- Mandates a shared online dashboard starting in January 2027 that shows monthly data on how well public assistance programs are performing across the state.
- Sets up a plan by July 1, 2028, where counties work together in groups of up to twelve teams to handle benefit applications and eligibility more consistently.
Who it affects
- State agencies including the Department of Health Care Policy and Financing, the Department of Human Services, and the Department of Early Childhood.
- County departments that manage human services or social services programs.
- People who receive public assistance benefits such as Medicaid, food stamps, child care help, cash aid, and other financial support.
Limits and unknowns
- The law does not specify which county will be chosen to run the centralized fraud investigation service.
- The exact amount of money available for these new systems depends on future funding decisions by lawmakers and how much is recovered from fraud cases.
Plain language
Terms to know
- Centralized Member Integrity Service
- A single statewide unit run by a county department that investigates fraud, recovers overpayments, and handles disputes for public benefit programs.
- Performance-based contract
- An agreement between the state and counties that sets specific rules for managing benefits and outlines steps to take if problems happen.
- Cohorts of counties
- Groups of up to 12 counties working together as a team to share tasks in managing public assistance programs.
Official record
Sources
Official summary
The act requires the department of health care policy and financing, in coordination with the department of human services and the department of early childhood (state departments), to contract with a single county department of human or social services to administer a centralized member integrity service to conduct fraud investigations concerning eligibility for medicaid, the children's basic health plan, the supplemental nutrition assistance program, the Colorado child care assistance program, temporary assistance for needy families, and adult financial programs (public assistance programs), and benefit overpayments. The act creates the centralized member integrity service cash fund consisting of money recouped from member fraud investigations. The centralized member integrity service must be operational and utilized on July 1, 2027. On or before February 1, 2027, the act requires the state departments to establish aligned requirements for county departments of human or social services (county departments) to comply with through a performance-based contract established between the state departments and each county department. Prior to February 1, 2027, the state departments shall draft templates of the performance-based contract with the county departments for review and comment. On or before July 1, 2027, the state departments shall enter into a performance-based contract with each county department. The performance-based contract must establish requirements for the state departments and county departments to comply with in administering public assistance programs and establish corrective action protocols that are consistently utilized by the state departments. On or before September 1, 2026, the act requires the state departments to work together, and in consultation with the county departments, to establish a continuous quality improvement process to review data reported to the state departments by the county departments. The state departments must annually submit a report to the joint budget committee that includes an update on the continuous quality improvement process and data on the impact of the continuous quality improvement process. Beginning January 2027, and monthly thereafter, the state departments must establish a single, shared online dashboard used to publish county-level and statewide performance data for the public assistance programs on a monthly basis. This data must be published on each of the state department's website's in a publicly accessible format. Beginning July 1, 2028, the state departments must oversee a streamlined public benefits delivery model that consists of up to 12 cohorts of counties in the state that will coordinate public assistance program eligibility and distribute case processing work. The state departments shall enter into performance-based contracts with each cohort for administering a new public benefits delivery model to ensure public assistance programs are administered consistently and uniformly across the state. On or before July 1, 2026, the state departments must contract with a third-party contractor to help the state departments and county departments develop and implement a plan for transitioning to the new public benefits delivery model. The act establishes an implementation work group comprised of representatives of counties, the governor's office, the state departments, and nongovernmental organizations, to work with the third-party contractor to develop and implement the transition plan. The transition plan must be delivered to the joint budget committee by January 1, 2027. The act establishes the state cross-departmental policy alignment team to align the policies of the public assistance programs to improve service delivery and outcomes for recipients of public assistance benefits. The act makes a household eligible for fuel assistance payments if the household has not received low-income energy assistance program assistance in the previous 12 months and if it is eligible for the standard utility allowance under federal law. The act requires the department of health care policy and financing to certify to the department of revenue information regarding persons who are obligated to the state for overpayment of medicaid benefits and sets forth the process for distributing money withheld from a person's tax refund owed for overpayment of benefits. To implement the act, it includes appropriations from the general fund and various cash funds to the department of health care policy and financing, the department of human services, and the department of early childhood. The act appropriates money to the office of the governor for use by the office of information technology and to the department of law from reappropriated money received by other departments. The act decreases the appropriation from the federal child care development funds made in the annual general appropriation act for the 2026-27 state fiscal year to the department of early childhood for intrastate child care assistance program redistribution by $222,598. (Note: This summary applies to this bill as enacted.)
Official activity
Bill history
- Governor SignedGovernor
- Sent to the GovernorGovernor
- Signed by the President of the SenateSenate
- Signed by the Speaker of the HouseHouse
- Senate Third Reading Passed - No AmendmentsSenate
- Senate Second Reading Special Order - Passed - No AmendmentsSenate
- Senate Committee on Appropriations Refer Unamended to Senate Committee of the WholeSenate
- Introduced In Senate - Assigned to AppropriationsSenate
- House Third Reading Passed with Amendments - FloorHouse
- House Third Reading Laid Over Daily - No AmendmentsHouse
- House Second Reading Special Order - Passed with Amendments - CommitteeHouse
- House Committee on Appropriations Refer Amended to House Committee of the WholeHouse
- Introduced In House - Assigned to AppropriationsHouse
Changes
Amendments
3 stored
This amendment replaces the original bill with a new plan to redesign Colorado's public benefits technology system by July 2028, while also updating rules for county contracts and fraud hearings.
This amendment changes the bill to allow county departments within a group to participate and adds two new members appointed by the governor to an advisory committee.