HB 26-1257

HB 26-1257, a Colorado bill that has been signed into law, expands the definition of illicit massage businesses to include those involved in any criminal activity beyond human trafficking. It allows local governments more flexibility to create stricter regulations and licensing requirements for these businesses to prevent illegal activities, protect public health and safety, and support legitimate massage therapy businesses. The law also increases the administrative fees that local governments can charge for issuing or renewing licenses, removes previous exemptions from these fees, and requires local governments to consider the impact of new regulations on legal massage businesses when creating them after August 13, 2026. This means that cities and counties now have more power to regulate massage facilities within their jurisdictions to ensure they are not being used for illegal activities.

Official Summary

Current law defines illicit massage businesses as businesses that engage in massage but also engage in human-trafficking-related offenses. The act expands the definition of 'illicit massage business' to include a massage business that engages in crimes other than human-trafficking-related offenses.     Current law states that if a local government adopts a resolution or ordinance to establish business licensure requirements or to prohibit unlawful activities relating to illicit massage businesses, the resolution or ordinance must not be more restrictive than the requirements set forth in state law. The act removes this limitation. The act clarifies that a local government may adopt a resolution or ordinance for the purposes of deterring illicit massage businesses; preventing human trafficking; protecting legitimate massage therapy businesses; and safeguarding public health, safety, and welfare. The act also allows a local government to impose local licensing requirements in addition to those requirements prescribed in state law.     Current law allows a local government to impose an administrative fee not to exceed $150 for issuing or renewing a license. The act removes the $150 cap on such fees. If a local government imposes an administrative fee, the amount of the fee must be reasonably related to the costs of the local government in administering the resolution or ordinance and the licensing of massage facilities. The fee must not exceed $500 unless necessary to cover the local government's costs of administering the resolution or ordinance and licensing the massage facilities in its jurisdiction. The fee may be adjusted yearly for inflation or deflation. Current law exempts businesses that held licenses before August 10, 2022, from the administrative fees. The act removes this exemption.     The act allows a local government to establish additional grounds to deny, revoke, or suspend a license. The act provides that, if a local government establishes business licensure requirements for massage facilities, the resolution or ordinance adopted by the local government must prohibit ownership of massage facilities by the types of persons that are prohibited from ownership in current law.     Current law states that preventing the operation of illicit massage businesses is a matter of statewide concern, and licensing and regulation of massage facilities is a matter of mixed statewide and local concern. The act states that preventing the operation of illicit massage businesses is a matter of mixed statewide and local concern.     The act requires a local government that adopts a resolution or ordinance related to the local regulation of massage facilities on or after August 13, 2026, to consider the impacts of the resolution or ordinance on legitimate massage therapy businesses and conduct outreach to massage therapists and massage therapy businesses in the local government's jurisdiction and statewide organizations of massage therapists.(Note: This summary applies to this bill as enacted.)

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