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Modification To Administration Of The Nursing Home Penalty Cash Fund

Concerning modifications to the administration of the nursing home penalty cash fund, and, in connection therewith, making and reducing appropriations.
2021 Regular Session
Health Care & Health Insurance
Bill Summary

The act makes the following changes to the administration of the nursing home penalty cash fund (fund) and the nursing home innovations grant board (board):

  • Transitions final authority over the administration of the fund from the Colorado department of health care policy and financing (HCPF) to the Colorado department of public health and environment (CDPHE);
  • Transitions rule-making authority over the fund from HCPF to the state board of health;
  • Transitions the authority to create a minimum reserve amount for the fund from the medical services board to the state board of health;
  • Transitions authority over the board from HCPF to CDPHE effective July 1, 2021;
  • Transitions all appropriations related to the fund to HCPF and CDPHE effective July 1, 2021;
  • Makes a continuous appropriation to HCPF and CDPHE for the purposes of emergency funding needs;
  • Limits the percentage of the amount of the grant appropriation that can be used for administration of the fund to 10% of the disbursed grants;
  • Removes the provision allowing members of the board to be reimbursed for expenses;
  • Adds a requirement that HCPF and CDPHE develop an annual budget to administer the fund and support the board;
  • Adds a requirement that HCPF and CDPHE collaborate annually on any emergency funding needs and specifies that HCPF and CDPHE will administer such funding;
  • Adds projects that compliment statewide quality and safety goals as a consideration in making a distribution from the fund; and
  • Lengthens the period for CDPHE to provide notice of a violation to a nursing facility from 5 days to 10 days after inspection.
    (Note: This summary applies to this bill as enacted.)


Became Law


Bill Text


Sponsor Type Legislators
Prime Sponsor

Sen. C. Kolker
Rep. S. Lontine



Sen. J. Ginal
Rep. M. Duran, Rep. E. Hooton, Rep. D. Michaelson Jenet, Rep. K. Mullica

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details