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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 26-0681.01 Rebecca Bayetti x4348 HOUSE BILL 26-1300
House Committees Senate Committees
Transportation, Housing & Local Government
A BILL FOR AN ACT
CONCERNING THE ABILITY OF A HEALTH SERVICE DISTRICT TO101
PROVIDE AFFORDABLE HOUSING SERVICES.102
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.)
Under current law, a special district is required to conform to its
approved service plan and must petition the governing body of the county
or municipality that approved the formation of the special district for
approval of any material modifications of its approved service plan.
Material modifications include a change in services provided by the
special district, a decrease in the financial ability of the district to
HOUSE
3rd Reading Unamended
April 2, 2026
HOUSE
Amended 2nd Reading
March 30, 2026
HOUSE SPONSORSHIP
Woodrow and Soper, Bacon, Boesenecker, Clifford, Duran, Jackson, Joseph, Lindsay,
Mabrey, McCluskie, Phillips, Stewart K., Stewart R., Story, Valdez
SENATE SPONSORSHIP
Kipp,
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.
discharge existing or proposed indebtedness, and a decrease in the
existing or projected need for organized service in the district's service
area. The court that approved the organization of the special district may
enjoin any material departure from the district's service plan as originally
approved or from the district's service plan as modified.
In the case of a health service district, a change in service by the
district is not a material modification to or departure from the district's
approved service plan, unless the change affects the license or certificate
of compliance issued to the district by the department of public health and
environment. The bill expands this provision to provide that the addition
of affordable housing services to a health service district's service plan is
not a material modification to or departure from the district's approved
service plan so long as a majority of the board of directors of the district
affirmatively votes to approve the addition of affordable housing services.
With this change, a health service district is able to provide affordable
housing services, which are defined as the planning, financing,
acquisition, construction, reconstruction or repair, maintenance,
management, and operation of affordable housing-related projects or
programs, without needing to seek approval for a material modification
to or departure from the district's approved service plan.
The bill also makes conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 32-1-207, amend (4)2
as follows:3
32-1-207. Compliance - modification - enforcement.4
(4) (a) In the case of a health service district, a change in service5
by the district is not deemed material unless the change affects the license6
or certificate of compliance issued by the department of public health and7
environment.8
(b) IN THE CASE OF A HEALTH SERVICE DISTRICT, THE ADDITION OR9
TERMINATION OF AFFORDABLE HOUSING SERVICES, AS DEFINED IN SECTION10
32-19-102 (2), TO THE SERVICES PROVIDED BY THE DISTRICT IS NOT A11
MATERIAL MODIFICATION TO OR DEPARTURE FROM THE DISTRICT 'S12
APPROVED SERVICE PLAN SO LONG AS A MAJORITY OF THE BOARD OF13
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DIRECTORS OF THE DISTRICT AFFIRMATIVELY VOTES TO APPROVE THE1
ADDITION OR TERMINATION OF AFFORDABLE HOUSING SERVICES AND ANY2
AFFORDABLE HOUSING SERVICES ARE CARRIED OUT IN COORDINATION3
WITH LOCAL PUBLIC HOUSING ENTITIES , INCLUDING LOCAL PUBLIC4
HOUSING AUTHORITIES, LOCAL HOUSING AGENCIES, AND THE LOCAL5
GOVERNMENT ENTITY RESPONSIBLE FOR CONDUCTING AN APPLICABLE6
REGIONAL OR LOCAL HOUSING NEEDS ASSESSMENT.7
(c) A health service district is exempt from subsection (3)(b) and8
(3)(c) of this section.9
SECTION 2. In Colorado Revised Statutes, 32-1-1003, amend10
(1)(c), (5) introductory portion, and (5)(a); and add (1)(b.5) as follows:11
32-1-1003. Health service districts - additional powers.12
(1) In addition to the powers specified in section 32-1-1001, the13
board of any health service district has any or all of the following powers14
for and on behalf of such district:15
(b.5) TO PROVIDE AFFORDABLE HOUSING SERVICES, AS DEFINED IN16
SECTION 32-19-102 (2);17
(c) To draw warrants against health service district funds held by18
the county treasurer for the purposes set forth in paragraphs (a) and (b) of19
this subsection (1) SUBSECTIONS (1)(a), (1)(b), AND (1)(b.5) OF THIS20
SECTION;21
(5) Any health service district that is created pursuant to this22
article shall have the power, upon approval by the eligible electors of the23
district, to levy and collect a uniform sales tax throughout the entire24
geographic area of the district upon every transaction or other incident25
with respect to which a sales tax is levied by the state pursuant to the26
provisions of article 26 of title 39, C.R.S., excluding the sale of cigarettes,27
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subject to the following provisions:1
(a) For purposes of this subsection (5), "eligible elector" shall2
have HAS the same meaning as set forth in section 32-19-102 (3) SECTION3
32-19-102 (5).4
SECTION 3. In Colorado Revised Statutes, 32-1-1003.5, amend5
(5)(a) as follows:6
32-1-1003.5. Health assurance districts - additional powers -7
legislative declaration - definitions.8
(5) Any health assurance district that is created pursuant to this9
article 1 shall have the power, upon approval by the eligible electors of10
the district, to levy and collect a uniform sales tax throughout the entire11
geographic area of the district upon every transaction or other incident12
with respect to which a sales tax is levied by the state pursuant to the13
provisions of article 26 of title 39, excluding the sale of cigarettes, subject14
to the following provisions:15
(a) For purposes of this subsection (5), "eligible elector" shall16
have HAS the same meaning as set forth in section 32-19-102 (3) SECTION17
32-19-102 (5).18
SECTION 4. In Colorado Revised Statutes, amend 32-19-102 as19
follows:20
32-19-102. Definitions.21
As used in this article ARTICLE 19, unless the context otherwise22
requires:23
24
(1) "AFFORDABLE HOUSING" MEANS HOUSING THAT:25
(a) IS CONSTRUCTED, REHABILITATED, OR OTHERWISE SUPPORTED26
BY A HEALTH SERVICE DISTRICT;27
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(b) M EETS DEMONSTRATED COMMUNITY NEEDS FOR PUBLICLY1
FUNDED HOUSING AS IDENTIFIED IN THE COUNTY 'S OR MUNICIPALITY'S2
MOST RECENT HOUSING NEEDS ASSESSMENT CONDUCTED PURS UANT TO3
PART 37 OF ARTICLE 32 OF TITLE 24 OR ANOTHER APPLICABLE REGIONAL4
OR LOCAL HOUSING NEEDS ASSESSMENT FOR THE COUNTY OR5
MUNICIPALITY IN WHICH THE HEALTH SERVICE DISTRICT IS LOCATED; AND6
(c) I F APPLICABLE , IS SUBJECT TO A RECORDED RESTRICTIVE7
COVENANT WITH AFFORDABILITY REQUIREMENTS FOR THE DURATION OF8
ANY FINANCIAL ASSISTANCE PROVIDED FOR THE HOUSING.9
(2) "A FFORDABLE HOUSING SERVICES " MEANS THE PLANNING ,10
FINANCING, ACQUISITION , CONSTRUCTION , RECONSTRUCTION , OR11
REHABILITATION OF AFFORDABLE HOUSING OR THE PROVISION OF RELATED12
SUPPORTIVE SERVICES.13
(1) (3) "Court" means the district court in any county in which the14
petition for organization of the district was originally filed and which15
entered the order organizing said district or the district court to which the16
file pertaining to the district has been transferred pursuant to section17
32-1-303 (1)(b).18
(2) (4) "District" means:19
(a) A health assurance district created pursuant to this article20
ARTICLE 19 to organize, operate, control, direct, manage, contract for,21
furnish, or provide, directly or indirectly, health-care services to residents22
of the district who are in need of such services; or23
(b) A health service district created pursuant to this article24
ARTICLE 19 that may establish, maintain, or operate, directly or indirectly25
through lease to or from other parties or other arrangement, public26
hospitals, convalescent centers, nursing care facilities, intermediate care27
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facilities, emergency facilities, community clinics, or other facilities1
providing health and personal care services and may organize, own,2
operate, control, direct, manage, contract for, or furnish ambulance3
service.4
(3) (5) "Eligible elector" means a person who, at the designated5
time or event, is registered to vote pursuant to the "Uniform Election6
Code of 1992", articles 1 to 13 of title 1. C.R.S.7
(4) (6) "Interested party" means a resident or eligible elector of the8
district or a municipality located in the district.9
SECTION 5. In Colorado Revised Statutes, 32-19-108, amend10
(3) and (4) as follows:11
32-19-108. Public hearing on service plan - procedures -12
decision - judicial review - modifications - enforcement.13
(3) The board of county commissioners of the county in which the14
district will be located or the governing body of the municipality in which15
the district will be located, whichever is applicable, shall conduct the16
hearing pursuant to section 32-1-204 (1.5) and make its decision in17
accordance with the requirements of section 32-1-204 (3) and (4). The18
decision of the board or governing body, whichever is applicable, is19
subject to judicial review in accordance with section 32-1-206; except20
that, for purposes of judicial review, "interested party" shall have HAS the21
same meaning as set forth in section 32-19-102 (4) SECTION 32-19-10222
(6).23
(4) Upon final approval by the court for the organization of a24
district pursuant to section 32-1-304.5, the district shall conform as much25
as possible to the approved service plan, and any material modifications26
to the plan shall be approved in accordance with section 32-1-207 (2)27
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SECTION 32-1-207 (2) AND (4). Any material departure from the plan may1
be enjoined in accordance with section 32-1-207 (3); except that, for2
purposes of enforcement of the plan, "interested party" shall have HAS the3
same meaning as set forth in section 32-19-102 (4) SECTION 32-19-1024
(6).5
SECTION 6. In Colorado Revised Statutes, 32-19-110, amend6
(2) as follows:7
32-19-110. Time for holding elections - persons entitled to vote8
at district elections.9
(2) Notwithstanding the provisions of section 32-1-806, any10
person who is an eligible elector as defined in section 32-19-102 (3)11
SECTION 32-19-102 (5) shall be eligible to vote in an organizational12
election or any election conducted by the board of directors for a district.13
SECTION 7. In Colorado Revised Statutes, add 32-19-116 as14
follows:15
32-19-116. Construction of article - local government16
authority.17
NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO ALTER THE18
AUTHORITY OF A LOCAL GOVERNMENT IN APPLYING AND ENFORCING19
APPLICABLE ORDINANCES, DEED RESTRICTIONS, COMMUNITY BENEFIT20
AGREEMENTS, DEVELOPMENT AGREEMENTS, OR OTHER AFFORDABLE21
HOUSING POLICIES AND STANDARDS.22
SECTION 8. Act subject to petition - effective date. This act23
takes effect at 12:01 a.m. on the day following the expiration of the24
ninety-day period after final adjournment of the general assembly (August25
12, 2026, if adjournment sine die is on May 13, 2026); except that, if a26
referendum petition is filed pursuant to section 1 (3) of article V of the27
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state constitution against this act or an item, section, or pa rt of this act1
within such period, then the act, item, section, or part will not take effect2
unless approved by the people at the general election to be held in3
November 2026 a nd, in such cas e, will take effect on the date of the4
official declaration of the vote thereon by the governor.5
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