Sen. Janice Rich

Under the federal 340B drug pricing program (340B program), a covered entity, including certain hospitals, programs, and federally qualified health centers (covered entity), that serves patients with low income receives discounted outpatient drugs (340B drugs) from manufacturers that participate in the federal medicaid and medicare programs. Unless the receipt of 340B drugs is prohibited by the federal department of health and human services, the act prohibits a manufacturer, third-party logistics provider, or repackager in this state, or an agent, contractor, or affiliate of those entities, including an entity that collects or processes health information, from directly or indirectly denying, restricting, prohibiting, discriminating against, or otherwise limiting the acquisition of a 340B drug by, or delivery of a 340B drug to, a covered entity, a pharmacy contracted with a covered entity, or a location otherwise authorized by a covered entity to receive and dispense 340B drugs. The act also prohibits a manufacturer from directly or indirectly requiring a covered entity, a pharmacy contracted with a covered entity, or any other location authorized to receive 340B drugs by a covered entity to submit any health information, claims or utilization data, or other specified data that does not relate to a claim submitted to certain federal health care programs, unless the data is voluntarily furnished or required to be furnished under federal law. The act defines "340B savings" as the difference between the aggregated market rate costs and the aggregated acquisition costs for 340 B drugs. Certain hospital covered entities are prohibited from using 340B savings for certain purposes. A violation of the prohibitions in the act is an unfair or deceptive trade practice under the "Colorado Consumer Protection Act" (protection act), and the violator is subject to the enforcement provisions and penalties contained in the protection act. In addition, a person regulated by the state board of pharmacy (pharmacy board) that violates the provisions of the protection act may be subject to discipline by the pharmacy board against the person's license, certification, or registration, as well as other penalties. The act requires certain hospital covered entities to annually report to the department of health care policy and financing certain information concerning 340B savings and costs relating to providing charity care. (Note: This summary applies to this bill as enacted.)

The act creates the work-based learning consortium pilot program (pilot program) in the department of higher education (department). The purpose of the 3-year pilot program is to: Demonstrate the value of work-based learning in postsecondary curricula by studying the impact of industry-sponsored projects on course objectives and learning outcomes; Promote the adoption of work-based learning in higher education by working with faculty at institutions of higher education (institutions) that participate in the pilot program (participating institutions) to embed project-based learning opportunities into credit-bearing programs; Provide broader access to collegiate work-based learning for students; Measure the impact of work-based learning on participating students; and Learn how institutions can increase the value of postsecondary education through career exposure and preparedness. Pending the receipt of sufficient funds, the department shall convene a consortium (consortium) of representatives from participating institutions, the commission on higher education (commission), the department of labor and employment, the department of education, and a subject matter expert with experience implementing work-based learning. The consortium shall: Work with each participating institution's faculty to embed industry-sponsored projects in course curriculum that meet the work-based learning quality standards; Work with the department to determine the impact of industry-sponsored projects; Work with a third-party platform to connect faculty from participating institutions to employers for the purpose of developing high-quality, project-based learning opportunities for classroom instruction; Advise the commission on strategies to improve student access to high-quality, work-based learning opportunities for students based on participating faculty members' experience embedding industry-sponsored projects into curriculum; Develop best practices for institutions to expand access to work-based learning in the classroom through industry-sponsored projects; and Develop findings and recommendations. Subject to available appropriations, at the end of the pilot program, the act requires the consortium to complete and submit a report to the education committees of the house of representatives and the senate, or their successor committees. The report must include: A description of the consortium's findings and recommendations; Details on the consortium's impacts on participating institutions and the effects of creating additional work-based learning activities on students, faculty, and employers; and Recommendations for statutory changes, financial resources, department policy changes, and policy changes in institutions that are necessary to improve successful work-based learning opportunities for students in institutions. The department may seek, accept, and expend gifts, grants, or donations from private or public sources for the pilot program. The department shall transmit all gifts, grants, or donations to the state treasurer, who shall credit the money to the higher education work-based learning consortium fund (fund). If, by June 30, 2028, the money in the fund has never reached or exceeded $2 million dollars, the state treasurer shall return each grantor's or donor's gift, grant, or donation. On or before November 1, 2026, the commission shall recommend a list of terms used by institutions related to work-based learning to the Colorado workforce development council for inclusion in the talent development glossary (glossary). The purpose of the list of terms is to: Augment the glossary so that collegiate work-based learning activities are accurately reflected in statewide efforts to promote work-based learning; and Demonstrate to institutions relevant opportunities to participate in statewide efforts to promote work-based learning. On or before July 1, 2026, the commission shall work with institutions, the Colorado workforce development council, the department of education, the consortium, nonprofit organizations, industry associations, and businesses to develop recommendations on how to best embed work-based learning opportunities into current degree pathways. On or before December 31, 2026, the department shall work with institutions to identify which work-based learning activities are measurable and how to best report work-based learning activities. Institutions that are eligible for the work-study program may use work-study program money to cover the costs of work-based learning credits for students who are required to complete credit-bearing work-based learning requirements to graduate from an institution. The office of economic development (office) administers the universal high school scholarship program (program). The act allows the office to spend unexpended or unencumbered money appropriated in the 2023-24 state fiscal year through the 2025-26 state fiscal year without further appropriation. The act requires that expenditures for the administrative costs of the program not exceed $1.5 million. The act extends the date for the state treasurer to transfer all unexpended and unencumbered money in the universal high school scholarship cash fund from December 30, 2026, to June 30, 2027. (Note: This summary applies to this bill as enacted.)

Current law states that an employer shall not interfere with an agricultural worker's reasonable access to key service providers (KSP) at any location when the worker is not performing compensable work and with respect to health-care providers at any time. The act exempts an employer's property from this provision; except that the act prohibits an employer from interfering with a worker's access to KSP through remote channels on the employer's property. The act also removes language referring to health-care providers. Current law states that the division of labor standards and statistics (division) may adopt rules regarding additional times that an employer may not interfere with a worker's reasonable access to KSP. The act clarifies that such rules must apply only to locations other than the employer's property. Lastly, the act states the division shall not adopt rules that: Infringe upon an employer's private property rights; or Conflict with the common law rights of an individual to access private property in a time of emergency.(Note: This summary applies to this bill as enacted.)

The act makes changes to requirements for preventive care coverage by health insurers for breast cancer screening, including: Relocating in statute the high-risk breast cancer screening requirements; Defining and specifying criteria for the use of diagnostic breast examinations and supplemental breast examinations; and Clarifying that, in addition to regular breast cancer screening, diagnostic and supplemental breast examinations that are medically necessary and conducted within nationally recognized screening guidelines do not require cost sharing by the patient.(Note: This summary applies to this bill as enacted.)

The act creates the provider stabilization fund for use by Colorado department of health care policy and financing (department) to distribute provider stabilization payments to safety net providers who provide services to low-income, uninsured individuals on a sliding-fee schedule or at no cost. Provider stabilization payments will be distributed to eligible safety net providers based on the proportion of low-income, uninsured individuals that an individual provider serves in comparison to the total number of low-income, uninsured individuals served by all eligible safety net providers. The state treasurer is directed to make an interest-free loan of interest earnings on the principal in the unclaimed property trust fund (UPTF) and, if the interest earnings are insufficient, from the principal of the UPTF as well, to the provider stabilization fund as follows: $25 million for the 2025-26 state fiscal year; $20 million for the 2026-27 state fiscal year; and $15 million for each of the 2027-28, 2028-29, and 2029-30 state fiscal years. The act specifies that the loan from the UPTF to the provider stabilization fund is an interfund loan that is not classified as revenue, is booked as an interfund receivable or payable, is not state fiscal year spending or state revenues, and does not count against the state fiscal year spending limit or the excess state revenues cap. The department is directed to repay the loan by January 1, 2045, but in any year in which state revenues do not exceed the limit on state fiscal year spending, the department must present to the joint budget committee a proposal to repay all or a portion of the loan at an earlier time, and to the extent possible, the general assembly must prioritize repaying the loan starting in the 2030-31 state fiscal year or sooner if funds are available. The provider stabilization fund also consists of any money the general assembly appropriates, transfers, or credits to the fund and any gifts, grants, or donations the department may receive for the fund. The act directs the department to leverage money in the provider stabilization fund to obtain federal matching money. The act establishes a provider stabilization fund advisory board (advisory board) to assist the department in implementing and administering the provider stabilization fund. The department, with assistance from the advisory board, is required to submit an annual report on the provider stabilization fund to specified committees, the governor, and the medical services board in the department. The advisory board is scheduled for repeal on September 1, 2031, and is subject to a sunset review by the department of regulatory agencies before the repeal. The act appropriates $25,000,000 from the provider stabilization fund to the department to implement the act, allocated as follows: $138,505 for personal services to administer the act, including 2.0 FTE; $15,900 for operating expenses; and $24,845,595 for provider stabilization payments to eligible safety net providers.(Note: This summary applies to this bill as enacted.)

The act prevents a pharmacy benefit manager (PBM) from prohibiting a rural independent pharmacy from using a private courier or a delivery service to deliver a prescription drug to a patient. A PBM is required to reimburse a rural independent pharmacy for a prescription drug in an amount not less than the national average drug acquisition cost for the dispensed prescription drug ingredients, plus pay a dispensing fee. When a PBM conducts an audit of a rural independent pharmacy and the audit results in a recoupment of more than $1,000 or a penalty of more than $1,000, the PBM must: Electronically notify the rural independent pharmacy of the rural independent pharmacy's rights to appeal at least 30 days before the recoupment of funds; If the rural independent pharmacy does not respond to the electronic notification within 30 days after the electronic notification, again electronically notify the rural independent pharmacy of the rural independent pharmacy's rights to appeal at least 30 days before the recoupment of funds; and If the rural independent pharmacy does not respond to the second electronic notification within 30 days after the second electronic notification, serve process on the rural independent pharmacy notifying of the rural independent pharmacy's rights to appeal at least 30 days before the recoupment of funds. The act allows a rural independent pharmacy to operate without being under the direct charge of a pharmacist if the initial interpretation and final evaluation of the prescription is done by a state-licensed pharmacist in person or remotely. (Note: This summary applies to this bill as enacted.)

The act repeals a definition of drug abuse from, and adds a definition of substance use disorder to, the state laws regulating electronic monitoring of prescription drugs. (Note: This summary applies to this bill as enacted.)

Under current law, there are 2 total program formulas to finance public schools. Absent the satisfaction of a statutorily specified condition, the first formula is scheduled to stop determining total program after the 2024-25 budget year (expiring formula), and the second formula is scheduled to determine total program beginning in the 2030-31 budget year (new formula). For the 2025-26 budget year through the 2029-30 budget year (transition period), total program is scheduled to be determined by using figures that were calculated under both the expiring formula and the new formula. The act: Extends the transition period by one year, so that it is from the 2025-26 budget year through the 2030-31 budget year; and Postpones the exclusive use of the new formula to determine total program until the 2031-32 budget year. The act changes how each school district's and institute charter school's annual total program is determined during the transition period. For the 2025-26 and 2026-27 budget years, each school district's and institute charter school's annual total program is the greater of the school district's or institute charter school's total program for the 2024-25 budget year or the amount calculated under the expiring formula plus an amount equal to 15% in 2025-26 and 30% in 2026-27 of the difference between the amounts calculated under the new formula and the expiring formula. For the 2027-28 budget year through the 2030-31 budget year, each school district's and institute charter school's annual total program is the greater of the district's or institute charter school's calculation under the expiring formula plus 1% of that calculation, or: For the 2027-28 budget year, the amount calculated under the expiring formula plus an amount equal to 45% of the difference between the amounts calculated under the new formula and the expiring formula; For the 2028-29 budget year, the amount calculated under the expiring formula plus an amount equal to 60% of the difference between the amounts calculated under the new formula and the expiring formula; For the 2029-30 budget year, the amount calculated under the expiring formula plus an amount equal to 75% of the difference between the amounts calculated under the new formula and the expiring formula; and For the 2030-31 budget year, the amount calculated under the expiring formula plus an amount equal to 90% of the difference between the amounts calculated under the new formula and the expiring formula. Under current law, there are specified conditions that apply to the transition period. If the joint budget committee determines that a specified condition occurs in a budget year during the transition period, then for the next budget year and each budget year thereafter, the transition is suspended, and each school district's total program is determined pursuant to the calculation and determination required for the budget year when the condition occurred. For one of the existing conditions, the act specifies that an income tax deposit to the state education fund that was made to correct an error does not count toward determining whether the condition has been satisfied. A school district's funded pupil count is a figure that is used as a part of determining a school district's total program. Under the expiring formula, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 4 budget years. Under current law, the new formula calculates a school district's funded pupil count by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years. The act changes the new formula so that: For the 2025-26 budget year, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years; and For the 2026-27 budget year and each budget year thereafter, a school district's funded pupil count is calculated by determining the greater of the school district's pupil enrollment for the applicable budget year or the average of the district's pupil enrollment for the applicable budget year and the immediately preceding 2 budget years. However: If a statutorily specified condition is satisfied, and consequently for the 2026-27 budget year, a district's total program is not determined as scheduled under the transition period, then for the 2026-27 budget year, and each budget year thereafter, funded pupil count will continue to be determined by the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding 3 budget years; and If, for the 2027-28 budget year, the state education fund balance is projected to be less than $200 million, then the general assembly is required to implement a smoothing factor or the funded pupil count will be determined by the greater of the school district's pupil enrollment for the applicable budget year or the average of the school district's pupil enrollment for the applicable budget year and the immediately preceding budget year for the 2027-28 budget year and each budget year thereafter. The act expiring formula is changed so that, starting in the 2027-28 budget year, the funded pupil count used in the expiring formula is the same funded pupil count that is used in the new formula to determine a district's total program during the transition period. The total program for the 2025-26 budget year is determined using the formula changes in the act. The act: Increases the statewide base per pupil funding for the 2025-26 budget year by $195.42 to account for inflation; Sets a new statewide base per pupil funding amount for the 2025-26 budget year at $8,691.80; and Sets the total program funding for the 2025-26 budget year for all school districts and institute charter schools to at least $10,036,070,748 or $10,031,606,090, depending upon whether Senate Bill 25-315 becomes law. Under current law, a new at-risk measure is required to be implemented in the 2025-26 budget year. The act repeals this requirement and requires the department of education (department) to collect data necessary to identify individual student census block groups to account for students who are at-risk of below-average academic performance and education outcomes because of socioeconomic disadvantages or poverty, but who may not qualify for free or reduced price lunch. Under current law, as a part of the charter contract, a district charter school and the school district, or the institute charter school and state charter school institute (institute), must agree on funding and services provided by the school district or institute to the charter school, subject to parameters. The act: Suspends the use of these provisions after the 2025-26 budget year; Repeals charter school at-risk supplemental aid after the 2026-27 budget year, following its gradual phase out during the 2025-26 and 2026-27 budget years; Creates incremental funding for charter schools for the 2025-26 budget year; and Requires the general assembly to consult with charter school representatives to ensure that charter schools are aligned with the implementation of the new formula. The act raises the limit from $750 million to $1 billion for the amount of money that the general assembly may appropriate to restore any or all qualified charter school debt reserve funds to their qualified charter school debt service fund requirements. Under current law, $41 million of interest and income earned on money in the public school fund is credited to certain purposes, and any remaining interest and income may be credited as specified by the general assembly or remain in the public school fund. The act requires that any remaining interest and income is credited to the public school capital construction assistance fund. The total annual amount of revenue credited to the public school capital construction fund is capped at $150 million, adjusted for inflation; except that money received from public school fund interest and income does not apply toward the cap. Any amount above the cap is credited to the state public school fund instead. The act creates the kids matter account within the state education fund. Beginning July 1, 2026, the state treasurer must deposit in the account all state revenues collected from an existing tax on 0.00065% on federal taxable income, as modified by law, of every individual, estate, trust, and corporation. The money in the account must only be used for district total program funding and total state funding for all categorical programs. Under current law, the department is required to contract with an entity to develop and implement a public information campaign to emphasize the importance of learning to read by third grade and highlight local education providers that are achieving high percentages of third-grade students who demonstrate reading competency. The act repeals the requirement that the department contract with an entity to develop and implement the information campaign. The act authorizes the department to use any unexpended money that was appropriated for the out-of-school time program grant program and is remaining at the end of the 2024-25 or 2025-26 state fiscal years in the 2025-26 or 2026-27 state fiscal years without further appropriation. The act creates and implements certain parameters for multifunction school activity buses. For the 2025-26 state fiscal year, the act: Appropriates $7,009,989 to the department from the state education fund for at-risk supplemental aid; Appropriates $7.6 million to the department from the public school capital construction assistance fund for public school capital construction assistance board cash grants; Appropriates $25 million to the department from the public school capital construction assistance fund for public school capital construction assistance board lease payments; and Adjusts the 2025-26 long bill by decreasing the cash funds appropriation from the state education fund for the state share of district's total program by $15,775,837; decreasing the cash funds appropriation from the state education fund for at-risk per pupil additional funding by $5 million; and decreasing the cash funds appropriation from the public school capital construction assistance fund for public school capital construction assistance board cash grants by $45,648,087.(Note: This summary applies to this bill as enacted.)

The act clarifies when a teacher may conclude that an early elementary school student has a significant reading deficiency requiring remediation through a specialized approach to instruction (READ plan) based on a body of evidence that includes information in addition to the student's scores on a reading assessment. Current law requires certain parental communications in connection with a student's READ plan. The act requires the addition of specific information regarding characteristics of dyslexia, if applicable, to the parental communications. Beginning no later than the 2027-28 school year, a local education provider must either develop its own screening process for identifying early elementary school students with characteristics of dyslexia or implement a universal dyslexia screener that conforms to certain new requirements. A local education provider that implements a screener may include the screener in an interim reading assessment or administer the screener separately from the interim assessment. Either way, the screener must accurately and reliably identify students at risk of reading difficulties. If an interim reading assessment includes a screener, the assessment must meet standards for validity and reliability, encourage data-driven instructional decision making, and promote efficient administration and effective follow-up. (Note: This summary applies to this bill as enacted.)

Beginning January 1, 2026, the act allows the department of health care policy and financing (department) to reimburse community health workers for services rendered to medicaid members after receiving any necessary federal authorization. Reimbursement for community health worker services is subject to available appropriations. The act postpones until January 31, 2027, the requirement for the department to report to the general assembly on community health worker utilization and costs in the medicaid program. The act reduces the appropriations to the department from the general fund for the 2025-26 fiscal year by $1,364,558 and the healthcare affordability and sustainability cash fund for the 2025-26 fiscal year by $342,750. (Note: This summary applies to this bill as enacted.)