SB 113: Require Recovery Residences to Obtain Behavioral Health Administration License - Colorado

Rerevised → Final Act · 5 edits · May 20, 2026

MODERATE

This bill updates the definition of 'recovery residence' to explicitly exclude permanent supportive housing and other specific housing types, clarifying which facilities need a new state license. It establishes a phased licensing timeline starting in 2027, requiring existing certified residences to apply for a new license by 2028. The bill also mandates that healthcare providers and managed care organizations cannot refer individuals to a recovery residence unless it holds a valid state license.

Scope change

The bill expands regulatory oversight by requiring a new state license for recovery residences, whereas previously they relied on third-party certification. It clarifies that certain housing types, such as permanent supportive housing and shelters, are excluded from this new licensing requirement.

DEFINITION

Added explicit exclusions for permanent supportive housing, emergency shelters, and transitional housing to clarify they are not subject to the new recovery residence license.

REQUIREMENT

Requires all recovery residences to obtain a license from the Behavioral Health Administration (BHA) by July 1, 2027, with a transition period for currently certified residences.

ELIGIBILITY

Prohibits healthcare providers and managed care organizations from referring patients to recovery residences that do not hold a valid state license.

ENFORCEMENT

Establishes civil penalties of $50 to $100 per day for operating an unlicensed recovery residence and outlines inspection and reporting duties.

TIMELINE

Set specific deadlines: July 1, 2027, for the general licensing requirement and July 1, 2028, for previously certified residences to convert to a state license.

Revised → Rerevised · 4 edits · May 6, 2026

MODERATE

The bill was re-revised to include amendments adopted by the House during its second reading. The most significant substantive change involves the enforcement of penalties for unlicensed recovery residences. Previously, penalties accrued from the date the Board of Health and Human Services (BHA) found a violation. The revision clarifies that enforcement and collection of these penalties now occur only after a formal decision is reached following the specific procedures outlined in Section 24-4-105, ensuring a structured legal process before financial penalties are applied.

Scope change

The bill's scope regarding penalty enforcement was narrowed to require a formal decision-making process before collection, rather than accruing immediately upon a finding of violation.

ENFORCEMENT

Penalty accrual and collection are now contingent on a formal decision reached through established procedures, rather than starting immediately upon a BHA finding of violation.

TIMELINE

A new header was added indicating the bill is in its '3rd Reading Unamended' stage for the House, dated May 6, 2026.

TECHNICAL

New sponsors (Bacon, Boesenecker, Brown, Clifford, English, Lindsay, McCluskie, Ricks, Rydin, Sirota) were added to the House sponsorship list.

The version header was updated from 'REVISED' to 'REREVISED' to reflect the inclusion of all House amendments.

Reengrossed → Revised · 4 edits · May 5, 2026

MODERATE

The bill was reclassified from 'Reengrossed' to 'Revised' to reflect that it now includes amendments adopted on second reading in the second house. The bill's scope was expanded to include the Finance committee in the House, and a new timeline was added stating that the penalty collection procedures will follow the rules in Section 24-4-105. Additionally, a new requirement was introduced mandating that the Behavioral Health Administration must act on licensure applications within thirty days of receiving a complete application.

Scope change

The bill's scope was expanded to include the House Finance committee in its committee assignments.

TECHNICAL

The bill status changed from 'Reengrossed' to 'Revised' to indicate amendments adopted on second reading in the second house.

REQUIREMENT

Added a requirement for the Behavioral Health Administration to act on licensure applications within thirty days of receiving a complete application.

TIMELINE

Added a reference to Section 24-4-105 regarding the procedures for collecting penalties.

SCOPE

Added the House Finance committee to the list of House committees reviewing the bill.

Engrossed → Reengrossed · 2 edits · Mar 25, 2026

MINOR

The bill was reengrossed to include additional Senate sponsors and updated the header to reflect that this version includes all amendments adopted during the House of Introduction. Substantively, the text removes a prohibition on referring individuals to recovery residences that have not yet obtained a license, while simultaneously adding a new requirement for certain residences to provide notice to the Behavioral Health Administration by June 30, 2027.

Scope change

The bill's scope regarding recovery residence licensing was modified by removing a blanket prohibition on unlicensed referrals and introducing a specific notification timeline for certified residences.

REQUIREMENT

Added a requirement for recovery residences certified as of June 30, 2027, to give notice to the Behavioral Health Administration.

Removed the prohibition that prevented government entities or licensed facilities from referring individuals to recovery residences that had not yet obtained a license.

Introduced → Engrossed · 5 edits · Mar 24, 2026

MODERATE

The bill was amended to require all recovery residences to obtain a state license by July 1, 2027, removing the previous exemption for facilities operating for over 30 years. The definition of 'recovery residence' was expanded to include new exclusions for community-based affordable housing and organizations supporting formerly incarcerated individuals. Additionally, the list of entities prohibited from referring individuals to recovery residences was broadened to include government entities, while the list of excluded facility types was updated to include 'health facilities' and 'community-based organizations' with specific mission criteria.

Scope change

The bill's scope expanded to include community-based affordable housing and formerly incarcerated individuals in the definition of excluded facilities, and the applicability of licensing requirements was extended to all recovery residences regardless of their operating history.

REQUIREMENT

The 30-year operating exemption for recovery residences was removed, requiring all facilities to be licensed by July 1, 2027.

Governmental entities were added to the list of entities prohibited from referring individuals to recovery residences or purchasing their services.

DEFINITION

The definition of 'recovery residence' was updated to explicitly exclude community-based affordable housing for low-income individuals and organizations providing services to formerly incarcerated individuals.

The list of excluded facility types was modified to include 'health facilities' and 'community-based organizations' with a primary mission of providing supportive services to individuals released from jail or prison.

TIMELINE

The certification deadline for existing facilities was adjusted to June 30, 2027, with a requirement to notify the Behavioral Health Administration.

Require Recovery Residences to Obtain Behavioral Health Administration License

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