Colorado § 27-50-501 - Behavioral health entities - license required - criminal and civil penalties.

§ 27-50-501. Behavioral health entities - license required - criminal and civil penalties.

(1) (a) On and after January 1, 2024, it is unlawful for any person, partnership, association, or corporation to conduct or maintain a behavioral health entity, including a substance use disorder program or alcohol use disorder program, without having obtained a license from the BHA.

(b) On and after January 1, 2024, an entity seeking initial licensure as a behavioral health entity shall apply for a behavioral health entity license from the BHA if the entity would previously have been licensed or subject to any of the following:

(I) Behavioral health entity licensure by the department of public health and environment;

(II) Approval or designation by the office of behavioral health, as it existed before July 1, 2022, or the BHA pursuant to this article 50 or article 66 of this title 27; or

(III) Approval by the office of behavioral health, as it existed before July 1, 2022, or the BHA pursuant to section 27-81-106 as an approved treatment program for substance use disorders.

(c) A facility with a license or approval on or before December 31, 2023, as a behavioral health entity or a substance use disorder program shall apply for a behavioral health entity license prior to the expiration of the facility's current license or approval. Such a facility is subject to the standards under which it is licensed or approved as of January 1, 2024, until such time as the BHA's behavioral health entity license is issued or denied.

(2) Any person who violates the provisions of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than fifty dollars but not more than five hundred dollars and may be subject to a civil penalty assessed by the BHA of not less than fifty dollars but not more than one hundred dollars for each day the person is in violation of this section. The assessed penalty accrues from the date the BHA finds that the person is in violation of this section. The BHA shall assess, enforce, and collect the penalty in accordance with article 4 of title 24 and credit the money to the general fund. Enforcement and collection of the penalty occurs following the decision reached in accordance with procedures set forth in section 24-4-105.

(3) (a) Notwithstanding any provision of law to the contrary, the BHA shall only issue or renew a license described in this part 5 if the BHA receives a certificate of compliance for the applicant's building or structure from the division of fire prevention and control in the department of public safety in accordance with part 12 of article 33.5 of title 24; except that:

(I) An applicant that provides only telehealth services is not required to receive a certificate of compliance; and

(II) An applicant that provides only outpatient services may receive a certificate of compliance from the division of fire prevention and control based on inspections conducted by a fire department, as defined in section 24-33.5-1202, that employs an inspector certified pursuant to section 24-33.5-1211 rather than from the division of fire prevention and control.

(b) The BHA shall take action on an application for licensure within thirty days after the date that the BHA receives from the applicant all of the necessary information and documentation required for licensure.

Source: L. 2022: Entire article added, (HB 22-1278), ch. 222, p. 1469, § 1, effective July 1. L. 2023: (1)(a), IP(1)(b), and (1)(c) amended, (HB 23-1236), ch. 206, p. 1060, § 26, effective May 16. L. 2026: (3) amended, (HB 26-1116), ch. 377, p. 2344, § 2, effective August 12.