Committee advances bill to restore local tools to regulate illicit massage businesses

Senator Liston introduced House Bill 1257 as a corrective measure to unintended consequences from a 2024 law that limited local regulatory tools for massage facilities. He said the prior law constrained local programs municipal and county licensing programs used to address illicit activity.

Senator Suna Mullica, co-sponsor, outlined three targeted changes: expand the statutory definition of illicit massage businesses to cover crimes beyond human trafficking (such as drug distribution and money laundering); remove the restriction that local ordinances be no more restrictive than state law so municipalities can tailor licensing to local conditions; and remove the cap on administrative fees so localities may set fees that reflect program costs. Mullica said the changes are intended to restore effective local tools without imposing new state mandates.

Elizabeth Haskell of the Colorado Municipal League supported the bill as a cleanup measure and introduced Trevor Vaughn, manager of licensing for the City of Aurora, to describe practical enforcement experience. Vaughn said Aurora’s licensing program targets commercial-front operations and allows local officials to act where criminal prosecutions alone often do not shut down illicit networks. "They are the number one source of commercial-front human trafficking in the country," Vaughn said, and he described programs used to distinguish illicit operations from legitimate massage therapy businesses.

Committee members asked about preemption and fee caps in the bill. Vaughn explained Aurora’s experience with local occupational licensing, noted how some illicit operators exploit licensing and testing processes, and said the aim is to target illicit operators without overburdening legitimate businesses. The transcript includes discussion of removing a $150 administrative-fee cap and a reference in the bill text to a presumed $500 limit unless a locality justifies a higher fee.

The committee adopted amendments L004 and L005 (legislative-declaration clarifications) and L006 (striking a requirement that background checks be conducted at least 30 days before issuing a license) without objection. Senator Liston moved HB 1257 as amended to the Committee of the Whole with a favorable recommendation. The clerk recorded a roll-call vote in favor, 7–0, and the bill was placed on the consent calendar.

The committee concluded its business and adjourned.