C.R.S. § 26-1-119.5: State and county departments - minimum requirements - state supervision - corrective action protocols - definitions - legislative declaration.

(1) (a) The general assembly finds and declares that:

(I) Colorado currently operates a state-supervised, county-administered human services system in which counties deliver services directly to residents;

(II) Consistent statewide performance requirements, including oversight and performance improvement processes, are necessary to ensure that individuals and families receive services in accordance with state law, federal requirements, and program standards;

(III) Performance requirements, including oversight and corrective action processes, currently vary across public assistance programs administered by the department of human services, the department of early childhood, and the department of health care policy and financing, resulting in inconsistencies in accountability, transparency, and support; and

(IV) Establishing a standardized framework for performance requirements, monitoring, and corrective action through streamlined contracts between the state and counties promotes transparency, accountability, and effective partnership between the state and counties to deliver services to individuals and families.

(b) The general assembly further finds and declares that a consistent corrective action framework must ensure:

(I) Early identification of performance concerns;

(II) Timely technical assistance and support;

(III) Clear expectations for corrective actions; and

(IV) Appropriate remedial measures when systemic issues remain unresolved.

(2) As used in this section, unless the context otherwise requires:

(a) "Adult financial programs" means a state-run benefit administered by the department of human services that includes the old age pension, aid to the needy disabled, and home care allowance, as detailed in part 1 of article 2 of this title 26.

(b) "Corrective action plan" means a formal plan for when a county department fails to meet the requirements of a performance-based contract in which the county is a party, performance metrics, or applicable state or federal law or regulation.

(c) "Public assistance programs" means the medical assistance program established pursuant to articles 4 to 6 of title 25.5; the children's basic health plan established pursuant to article 8 of title 25.5; the supplemental nutrition assistance program established pursuant to part 3 of article 2 of this title 26; the Colorado child care assistance program established pursuant to part 1 of article 4 of title 26.5; the temporary assistance for needy families program, as defined in section 26-2-703; the old age pension program established pursuant to article XXIV of the Colorado constitution; and adult financial programs.

(d) "State departments" means the department of human services, department of health care policy and financing, and the department of early childhood.

(3) On or before February 1, 2027, the state departments shall collaborate to establish aligned minimum requirements for county departments through performance-based contracts, taking into account the specific state and federal requirements applicable to each public assistance program. Prior to February 1, 2027, the state departments shall share draft templates of the performance-based contract with the county departments for review and comment.

(4) (a) On or before July 1, 2027, the state departments shall enter into a performance-based contract with each county department for the purposes of:

(I) Establishing requirements for the state and county departments for administering public assistance programs;

(II) Establishing corrective action protocols applicable to both the state departments and county departments; and

(III) Consolidating existing contracts, memoranda of understanding, and other agreements related to the administration of public assistance programs.

(b) Each performance-based contract must include, at a minimum:

(I) Minimum requirements for the state departments and county departments;

(II) Measurable outcomes and performance metrics;

(III) Corrective action protocols and consequences for a county department that fails to meet the performance-based contract requirements;

(IV) For county departments, requirements to meet performance thresholds identified in the performance-based contract, including:

(A) Thresholds for metrics included in management evaluations;

(B) Thresholds for metrics included in quality assurance reviews;

(C) Tracking and reporting data for continuous quality improvement and public reporting;

(D) Requirements currently included in contracts, memoranda of understanding, and other agreements between the state departments and county departments;

(E) Required participation in state-provided training and technical assistance;

(F) Complying with corrective action protocols; and

(G) Thresholds for metrics required by federal agencies overseeing public assistance programs; and

(V) For the state departments, requirements to meet performance thresholds identified in the performance-based contract, including:

(A) Providing funding, technical assistance, and training to enable county departments to process cases and serve recipients;

(B) Maintaining primary accountability to the federal government and ensuring compliance with state and federal law;

(C) Requirements currently included in contracts, memoranda of understanding, and other agreements between the state departments and county departments;

(D) Requirements for carrying out management evaluations and quality assurance reviews;

(E) Requirements for leading statewide continuous quality improvement processes in consultation with county departments; and

(F) Requirements to publish public-facing performance data in accordance with section 26-1-144.

(5) (a) The state departments retain ultimate supervisory authority over each county department and shall monitor each county department's compliance with performance-based contracts, state law, and federal law. Monitoring must include, at a minimum:

(I) Determining the county department's compliance with program performance metrics;

(II) Quality assurance reviews;

(III) Case or report reviews;

(IV) Audit findings; and

(V) Compliance monitoring required by state or federal law.

(b) Monitoring must occur at least monthly, or more frequently when program performance metrics permit.

(c) The state departments shall notify a county department of performance concerns when:

(I) A county department's performance fails to meet requirements outlined in the performance-based contracts or this section 26-1-119.5 for three consecutive months; or

(II) Monitoring systemic practice or compliance concerns.

(d) Upon identification of a performance concern, the department shall provide written notice to the county department that includes:

(I) A description of the concern;

(II) Applicable performance metrics or standards not being met;

(III) Supporting data or findings; and

(IV) Notice of whether or not a corrective action plan is necessary.

(e) A county department has ten business days after receiving the notice required by subsection (5)(d) of this section to submit a written dispute of the findings of a state department's performance concerns. The state departments must respond to a county department's dispute within ten business days after receiving notice of the dispute.

(f) The state departments shall provide technical assistance, training, and program support throughout all phases of performance improvement and corrective action.

(6) (a) If a corrective action plan is required, the county department shall submit the corrective action plan within ten business days, unless an extension is granted in accordance with rule, after receiving notice of the state department's performance concerns as required by subsection (5)(d) of this section.

(b) The corrective action plan must include, at a minimum:

(I) A description of the areas of noncompliance or underperformance;

(II) Required corrective actions;

(III) Implementation timelines for the corrective actions;

(IV) Measurable indicators of progress toward compliance;

(V) Reporting schedules;

(VI) A target date for achieving compliance, as determined by the state departments; and

(VII) A corrective action plan monitoring period that complies with subsection (6)(d) of this section.

(c) Within ten business days after the county department's submission of a corrective action plan, as required by subsection (6)(a) of this section, the state department shall approve the corrective action plan or request modifications to the corrective action plan.

(d) The corrective action plan monitoring period must be no more than six months and may include case reviews, site visits, staff interviews, data analysis, or other appropriate measures.

(e) The state departments may extend the corrective action plan monitoring period only when necessary to account for data availability or a reporting delay. An extension must be based on objective criteria, applied consistently across county departments, and documented in writing.

(f) Corrective action plan requirements must be aligned across state departments to ensure uniformity, taking into account differences in state and federal requirements for the individual public assistance programs.

(7) (a) If a county department fails to comply with a performance-based contract or an approved corrective action plan, the state department may impose sanctions.

(b) Sanctions may include:

(I) Disallowance of state funds;

(II) Assignment of program administration to another county department; or

(III) Assumption of program administration by a state department.

(c) If noncompliance presents an imminent risk to the health or safety of recipients, the state departments may take immediate action as authorized by law.

(8) This section does not restrict or affect the powers, duties, or functions of a state department as authorized or required pursuant to any other provision of state law.