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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 26-0803.01 Richard Sweetman x4333 HOUSE BILL 26-1244
House Committees Senate Committees
Health & Human Services Health & Human Services
A BILL FOR AN ACT
CONCERNING CONSIDERATIONS FO R THE DEPARTMENT OF PUBLIC101
HEALTH AND ENVIRONMENT TO USE AS A BASIS FOR MAKING102
DISTRIBUTIONS FROM THE NURSING HOME PENALTY CASH FUND.103
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.)
Current law requires the department of public health and
environment (CDPHE) to consider certain criteria as a basis for
distributing grants from the nursing home penalty cash fund (fund). The
bill strikes these criteria and instead requires CDPHE to distribute such
grants in accordance with priorities and allowable uses identified by the
SENATE
3rd Reading Unamended
April 9, 2026
SENATE
2nd Reading Unamended
April 8, 2026
HOUSE
3rd Reading Unamended
March 13, 2026
HOUSE
Amended 2nd Reading
March 12, 2026
HOUSE SPONSORSHIP
Slaugh and Joseph, Bacon, Duran, Lieder, Woodrow
SENATE SPONSORSHIP
Frizell and Exum, Coleman, Pelton R.
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
centers for medicare and medicaid services within the federal department
of health and human services (centers).
Current law requires the nursing home innovations grant board
(board) to make recommendations for the approval of grants from the
fund. The bill requires such recommendations to be consistent with the
processes for grant cycles of, and priorities and allowable uses identified
by, the centers.
Current law requires CDPHE and the department of health care
policy and financing, with the board's assistance, to jointly submit an
annual report to the governor and certain legislative committees of
reference regarding the expenditure of money in the fund. The bill
changes the due date of the report from October 1 to January 1.
In current law, the term "benefit residents of nursing facilities" is
defined to mean that a grant has a direct impact on the residents of
nursing facilities or has an indirect impact on the residents through
education of nursing facility staff. The bill amends th is definition to
include training, as well as education, of nursing facility staff.
Current law states that a governmental entity may not apply for or
receive a grant from the fund unless the entity is a facility that is owned
or operated by a governmental agency and licensed as a nursing care
facility. The bill removes this restriction.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 25-1-107.5, amend2
(1), (4)(c)(II), (4)(d)(II.5)(A), (4)(d)(II.5)(B), and (6)(d) as follows:3
25-1-107.5. Additional authority of department - rules -4
remedies against nursing facilities - criteria for recommending5
assessments for civil penalties - cooperation with department of6
health care policy and financing - nursing home penalty cash fund -7
nursing home innovations grant board - reports - transfer of8
contracts to the department.9
(1) For the purposes of AS USED IN this section, unless the context10
otherwise requires:11
12
(a) Repealed. "BENEFIT RESIDENTS OF NURSING FACILITIES" MEANS13
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THAT A GRANT HAS A DIRECT IMPACT ON THE RESIDENTS OF NURSING1
FACILITIES OR HAS AN INDIRECT IMPACT ON THE RESIDENTS THROUGH2
EDUCATION OR TRAINING OF NURSING FACILITY STAFF.3
(b) "Federal regulations for participation" means the regulations4
found in part 442 of title 42 of the code of federal regulations, as5
amended, for participation under Title XIX of the federal "Social Security6
Act", as amended. "BOARD" MEANS THE NURSING HOME INNOVATIONS7
GRANT BOARD, AUTHORIZED BY SUBSECTION (6) OF THIS SECTION.8
(b.5) "Benefit residents of nursing facilities" means that a grant9
has a direct impact on the residents of nursing facilities or has an indirect10
impact on the residents through education of nursing facility staff.11
(b.7) "Board" means the nursing home innovations grant board,12
authorized by subsection (6) of this section.13
(c) "Nursing facility" means any skilled or intermediate nursing14
care facility that receives federal and state funds under Title XIX of the15
federal "Social Security Act", as amended. "DEPARTMENTS" MEANS THE16
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AND THE17
DEPARTMENT OF HEALTH CARE POLICY AND FINANCING.18
(d) " FEDERAL REGULATIONS FOR PARTICIPATION" MEANS THE19
REGULATIONS FOUND IN PART 442 OF TITLE 42 OF THE CODE OF FEDERAL20
REGULATIONS, AS AMENDED, FOR PARTICIPATION UNDER TITLE XIX OF21
THE FEDERAL "SOCIAL SECURITY ACT", AS AMENDED.22
(e) "NURSING FACILITY" MEANS ANY SKILLED OR INTERMEDIATE23
NURSING CARE FACILITY THAT RECEIVES FEDERAL AND STATE FUNDS24
UNDER TITLE XIX OF THE FEDERAL "SOCIAL SECURITY ACT", AS25
AMENDED.26
(4) (c) The departments shall consider, as a basis for distribution27
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from the nursing home penalty cash fund, the following:1
(II) Grants to be approved for measures AND PROJECTS that will2
benefit residents of nursing facilities by fostering innovation and3
improving the quality of life and care at the facilities, including, but not4
limited to: IN ACCORDANCE WITH PRIORITIES AND ALLOWABLE USES5
IDENTIFIED BY THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID6
SERVICES.7
(A) Consumer education to promote resident-centered care in8
nursing facilities;9
(B) (Deleted by amendment, L. 2014.)10
(C) Initiatives in nursing facilities related to the quality measures11
promoted by the federal centers for medicare and medicaid services and12
other national quality initiatives;13
(D) Education and consultation for purposes of identifying and14
implementing resident-centered care initiatives in nursing facilities; and15
(E) Projects that support or compliment statewide quality and16
safety goals of the departments.17
(d) (II.5) (A) The board shall make recommendations for the18
approval of grants, that benefit residents of nursing facilities for at least19
one year and not more than three-year cycles. The projects awarded via20
grants must be portable, sustainable, and replicable in other nursing21
facilities WHICH RECOMMENDATIONS MUST BE CONSISTENT WITH THE22
PROCESSES FOR GRANT CYCLES OF, AND PRIORITIES AND ALLOWABLE USES23
IDENTIFIED BY , THE FEDERAL CENTERS FOR MEDICARE AND MEDICAID24
SERVICES.25
(B) The department and the board shall develop processes for26
grant payments, which processes may allow grant payments to be made27
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in advance of the delivery of goods and services to grantees. Grantees1
receiving advance payments shall report progress to the board. No state2
agency, nor any other governmental entity, with the exception of a facility3
that is owned or operated by a governmental agency and that is licensed4
as a nursing care facility under section 25-1.5-103 (1)(a)(I)(A), may apply5
for or receive a grant under this subsection (4).6
(6) (d) By October 1 ON OR BEFORE JANUARY 1 of each year, the7
departments, with the assistance of the board, shall jointly submit a report8
to the governor and the health and human services committee of the9
senate and the public health care and human services committee of the10
house of representatives, of the general assembly, or their successor11
committees, regarding the expenditure of moneys MONEY in the nursing12
home penalty cash fund for the purposes described in subparagraph (II)13
of paragraph (c) of subsection (4) SUBSECTION (4)(c)(II) of this section.14
The report must detail the amount of moneys MONEY expended for such15
purposes, the recipients of the funds MONEY, the effectiveness of the use16
of the funds MONEY, and any other information deemed pertinent by the17
departments or requested by the governor or the committees.18
Notwithstanding the requirement in section 24-1-136 (11), C.R.S., the19
report required REPORTING REQUIREMENT DESCRIBED in this paragraph (d)20
SUBSECTION (6)(d) continues indefinitely.21
SECTION 2. Act subject to petition - effective date -22
applicability. (1) This act takes effect at 12:01 a.m. on the day following23
the expiration of the ninety-day period after final adjournment of the24
general assembly (August 12, 2026, if adjournment sine die is on May 13,25
2026); except that, if a referendum petition is filed pursuant to section 126
(3) of article V of the state constitution against this act or an item, section,27
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or part of this act within such period, then the act, item, section, or part1
will not take effect unless approved by the people at the general election2
to be held in November 2026 and, in such case, will take effect on the3
date of the official declaration of the vote thereon by the governor.4
(2) This act applies to distributions from the nursing home penalty5
cash fund made on or after the applicable effective date of this act.6
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