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ColoradoHB26-14292026 Regular SessionHouseWALLET

County Administration Public Assistance Programs

Sponsored By: Barbara Kirkmeyer (Republican), Emily Sirota (Democratic), Jeff Bridges (Democratic), Kyle Brown (Democratic)

Signed by Governor

Health Care & Health InsuranceHuman Services

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Bill Overview

Analyzed Economic Effects

15 provisions identified: 6 benefits, 2 costs, 7 mixed.

Families face child care debt collection

The contracted county can recover child care aid paid beyond what a recipient was entitled to receive. It can continue garnishment on qualifying judgments and claim repayment from an eligible recipient’s estate. Fraudulently obtained aid accrues interest at the legal rate from the provider’s payment date until recovery. Fraud recoveries are split between the integrity service fund and county under department rules. Nonfraud recoveries are split between the state and county based on the assistance each paid.

Fuel help for eligible SNAP households

Fuel assistance is available to SNAP households that qualify for the federal standard utility allowance. Households must not have received Low-income Energy Assistance Program assistance during the preceding 12 months. The law requires annual budgeting for program and administrative costs. This provision states no payment amount or start date.

Benefit decisions get stronger quality checks

Three state departments must create a benefit quality improvement process by September 1, 2026, consulting with counties. They review performance, error rates, and inconsistent eligibility decisions to find causes and improve accuracy. Reports on this process go to the Joint Budget Committee starting January 1, 2027, and annually afterward. Separately, monthly public dashboard reporting begins January 2027, showing county and statewide processing, backlogs, appeals, and caseload measures.

Child care services get operating funds

For fiscal year 2026–27, Early Childhood receives $445,196, split equally between general funds and federal child care development funds. Each source provides $222,598; $385,913 supports county shared services and $59,283 supports computer systems managed by other departments. The law also reappropriates Early Childhood funding: $432,913 to the health department, $16,770 for technology, and $16,712 for legal services. The health department amount supports benefits systems and centralized integrity work. These transfers support operations rather than direct family payments and are not new separate funding sources.

Health department gets benefit system funding

For fiscal year 2026–27, the health department receives $2.651249 million to carry out the law. This includes $2.438656 million for its director’s office and $212,593 for benefits systems, operating costs, and contracts. Funding comes from the general fund and hospital provider fee cash fund. Of the department’s funding, $240,489 is reappropriated for technology services and $239,660 for legal services. These amounts support administration, not direct household payments.

Human services funds benefit operations

For fiscal year 2026–27, the Office of Economic Security receives $1.617234 million for benefit operations. The money supports administration, benefits computer systems, electronic benefit services, and centralized integrity work. Listed sources include general funds, school meal funds, old age pension funds, and federal TANF funds. The health department also receives $2.022114 million reappropriated from Human Services for administration, systems, integrity services, and related implementation work. These are operating funds, not direct household payments, and reappropriations are not new separate funding sources.

Recovered benefit money funds shared services

The law creates a state cash fund for recovered fraud money, legislative funding, and the fund’s investment earnings. Annual legislative approval allows spending on integrity service administration and contractor costs. Before transition, recoveries stay in county social services or general funds, depending on the applicable recovery rule. Counties must report full transition and transfer covered funds; beginning July 1, 2028, post-transition recoveries go to the state fund. Unless federal law provides otherwise, the federal government gets its funding share, the state gets half its funding share, and counties get their funding share plus the other half of the state share; separate federal rules govern pre-transition SNAP recoveries.

Less child care money for redistribution

For fiscal year 2026–27, the law reduces federal child care development funding for redistribution within Colorado by $222,598. No reduction is required if the annual budget provides less than $222,598 for that purpose or provides nothing. This reduces redistribution funding without directly changing a family’s eligibility or benefit amount.

Broader benefit investigations with privacy limits

The contracted county can investigate suspected child care aid fraud through home visits, witness questioning, and subpoenas for records. State and local agencies must share relevant information to help locate and prosecute child care or medical assistance fraud. Medical assistance information can include location, employment, income, and property, but excludes confidential tax returns. Child care investigations remain subject to tax-return confidentiality rules. Shared information is limited to the program administration or prosecution purposes allowed by law.

Benefit debts can reduce tax refunds

The state must certify qualifying benefit overpayments at least annually for possible collection from state income tax refunds. Debts must be established by final agency action, court-ordered restitution, or a judgment, with conference and appeal opportunities before certification. The state must send advance written notice to the person’s last-known address. For integrity service offsets, the contracted county receives the person’s address and Social Security number and identifies which agency is owed. Withheld health department overpayment money goes through the state treasurer, and Revenue shares names, deposited amounts, and required identifying details; offsets unrelated to the service keep the county route.

Benefit fraud cases move statewide

Colorado must have one county operate the Centralized Member Integrity Service by July 1, 2027; it may subcontract with counties. The service covers Medicaid, children’s health coverage, SNAP, child care aid, TANF, and adult financial programs. A transition plan is due January 1, 2027, with transfers starting July 1, 2027, and ending July 1, 2028. Transfers include open investigations, pending referrals, recoveries, dispute conferences, hearings, waivers, and court cases; counties keep handling work until transfer. Counties and applicable state-designated agencies must use the service by July 1, 2028, when county participation in shared services is also required.

Counties face benefit service performance rules

State departments must share draft county contracts by February 1, 2027, and sign performance contracts by July 1, 2027. Contracts set measurable results, duties, training, quality checks, public performance data, and steps to fix failures. The state checks counties at least monthly and addresses three consecutive months of underperformance or systemic problems. Counties have 10 business days to dispute findings; the state has 10 business days to respond. Corrective plans are due within 10 business days unless extended, with monitoring generally limited to six months; sanctions include denied state funding or transferred administration, and immediate lawful action is allowed for imminent health or safety risks.

Counties receive recovered medical fraud money

Before a county transitions, recovered medical assistance fraud money goes to its social services fund. Counties must report full transition, after which recoveries go to the shared service’s cash fund. Beginning July 1, 2028, the federal government receives its funding share and the county receives the remaining fraud recovery money. The law also repeals the unintentional member-error recovery rule that gave the state 75% of the state-funded share and counties 25%. This provision does not state a replacement split for those error recoveries.

Counties share work on public benefits

Beginning July 1, 2028, Colorado organizes benefit eligibility and case work into no more than 12 county groups. Full implementation depends on ready computer systems, with adequate time, training, and support for counties. Performance contracts set duties, shared resources, corrective steps, and any incentive payments. Counties are not responsible for another county’s performance unless contracts or agreements provide otherwise, within federal law. The state must hire at least one planning contractor by July 1, 2026, and employ up to 12 regional managers.

County benefit spending faces reimbursement limits

Counties may spend more than 20% of actual costs for federal child support matching or SNAP and public assistance administration. Administrative costs cannot include spending that duplicates costs covered by the integrity service. The law also bars federal or state reimbursement for specified county and shared-service costs. Costs that duplicate integrity service or shared services are not reimbursable.

Sponsors & Cosponsors

Sponsors

  • Barbara Kirkmeyer

    Republican • Senate

  • Emily Sirota

    Democratic • House

  • Jeff Bridges

    Democratic • Senate

  • Kyle Brown

    Democratic • House

Cosponsors

  • Andrew Boesenecker

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Lindsay Gilchrist

    Democratic • House

  • Monica Duran

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Cleave Simpson

    Republican • Senate

  • Iman Jodeh

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Julie Gonzales

    Democratic • Senate

  • Janice Marchman

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Tony Exum

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 225 • No: 16

Senate vote • 5/13/2026

Third reading: Bill

Yes: 32 • No: 3

Senate vote • 5/11/2026

Refer House Bill 26-1429 to the Committee of the Whole.

Yes: 5 • No: 2

House vote • 5/9/2026

Third reading: Amd (l.004)

Yes: 63 • No: 0

House vote • 5/9/2026

Third reading: Bill

Yes: 54 • No: 9

House vote • 5/9/2026

Third reading: Perm

Yes: 61 • No: 1

House vote • 5/7/2026

Refer House Bill 26-1429, as amended, to the Committee of the Whole.

Yes: 10 • No: 1

Actions Timeline

  1. Governor Signed

    6/4/2026House

  2. Signed by the Speaker of the House

    5/26/2026House

  3. Signed by the President of the Senate

    5/26/2026Senate

  4. Sent to the Governor

    5/26/2026House

  5. Senate Third Reading Passed - No Amendments

    5/13/2026Senate

  6. Senate Second Reading Special Order - Passed - No Amendments

    5/12/2026Senate

  7. Introduced In Senate - Assigned to Appropriations

    5/11/2026Senate

  8. Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

    5/11/2026Senate

  9. House Third Reading Passed with Amendments - Floor

    5/9/2026House

  10. House Third Reading Laid Over Daily - No Amendments

    5/8/2026House

  11. House Committee on Appropriations Refer Amended to House Committee of the Whole

    5/7/2026House

  12. House Second Reading Special Order - Passed with Amendments - Committee

    5/7/2026House

  13. Introduced In House - Assigned to Appropriations

    5/1/2026House

Bill Text

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