Committee advances bill to remove financial-need test for vocational rehabilitation services

House Bill 1018, sponsored in the Senate by Representative Sarah Danielson, would eliminate the requirement that Coloradans eligible for vocational rehabilitation (VR) services complete a financial-need analysis before receiving certain services from the Division of Vocational Rehabilitation (DVR). The measure also authorizes DVR to consider financial need during periods of cost containment to manage wait lists.

"Call runs with disabilities deserve equitable access to vocational rehabilitation," sponsor Sarah Danielson told the committee, summarizing the policy change and its goals. Danielson said the bill aligns Colorado statute with guidance from the U.S. Department of Education and that the bill's fiscal note shows no additional appropriation is required.

Supporters described administrative burdens and client impacts caused by the current needs-assessment process. Jack Johnson, an attorney with Disability Law Colorado, testified in support and said the household financial audits used to assess family contributions often consume staff time and resources and "cost the department more money than they are saving by having families contribute to these programs." He described the assessment as a lengthy review of family tax information that often ends with the individual receiving 100% funding, and asked members to "please vote yes."

Carson Covey, policy advocate for Family Voices Colorado, gave personal testimony about using DVR's paid work experience program; he said the program "allows both myself and my employer to demonstrate the effectiveness of such programs" and urged support. Meredith Henry of The Arc of Colorado testified that the bill removes a burdensome documentation requirement and helps people with intellectual and developmental disabilities access work.

Valen Sarnoff, communications and relationship manager for the State Rehabilitation Council, told the panel the council "unanimously supports this legislation," adding that many states have already removed financial-needs testing and the federal Rehabilitation Services Administration has encouraged states to reconsider such testing.

During questioning, Senator Catlin asked whether the program is funded with federal dollars. Jack Johnson answered that the bulk of client-directed funds are federal, estimating "like $45,000,000 in federal funds and then maybe about $5,000,000 in state funds," and said that removing means testing would not meaningfully increase state costs because most applicants already receive full federal funding and the administrative cost of the test can exceed the small family contributions collected.

After public testimony and brief sponsor remarks, the committee voted on a motion to move House Bill 1018 to the committee of the whole. The roll call recorded a 6–1 vote in favor; the committee reported the bill as passed in committee and referred to the next stage.

Ending: The bill would remove a documented administrative barrier to DVR services; committee supporters said the change would both reduce staff workload and expand access to employment services for Coloradans with disabilities. The committee record did not specify implementation details beyond the statutory changes and the fiscal note.