A new Colorado law lets small behavioral health clinics use local fire inspectors for safety compliance—potentially saving time and money on state-level reviews.
Most Colorado health services owners don't realize that a provision buried in HB1116 just changed who can sign off on their fire safety compliance—and it could simplify licensing for outpatient behavioral health businesses.
Until now, outpatient behavioral health providers seeking Colorado Behavioral Health Agency (BHA) licensure or renewal had to obtain a certificate of compliance from the state Division of Fire Prevention and Control. That meant coordinating with a state agency, waiting for state scheduling, and managing a state-level inspection process.
Under Section 2 of HB1116, which amends 27-50-501(3)(a)(II), small outpatient behavioral health applicants can now satisfy this fire-safety requirement using a certified local fire department inspector instead. The local inspector issues the certificate of compliance, which is then submitted to the state as part of the BHA licensing application.
This applies to outpatient behavioral health clinics and similar facilities pursuing initial BHA licensure or license renewal. If your business operates in Colorado and provides outpatient behavioral health services, this change is relevant to your compliance timeline and licensing costs.
The provision does not appear to apply to inpatient or residential behavioral health facilities, which may face different fire safety requirements. Verify your facility type with your local health department or licensing consultant if you're uncertain.
Using a local fire inspector instead of the state division can reduce:
For small or newly opening behavioral health clinics, these savings can be meaningful during the licensing phase.
HB1116 takes effect August 12, 2026, assuming the Colorado legislature adjourns sine die on May 13, 2026. The effective date is subject to a referendum petition; if enough signatures are collected, the law would go to voters. Monitor the Colorado Secretary of State's office for any referendum activity.
If you are planning a license application or renewal before August 12, 2026, you will still need to use the state Division of Fire Prevention and Control. After August 12, 2026, you have the option to use a local certified fire inspector.
If you operate an outpatient behavioral health facility in Colorado, contact your local fire department to confirm they offer inspections for BHA compliance and ask about their process and fees. Keep the effective date in mind when planning your licensing timeline. Your state licensing consultant or trade association can also clarify whether this provision applies to your specific facility type.
For a detailed, business-specific summary of HB1116 and other 2024 Colorado health services provisions, contact your industry association or local health department.