Colorado Bill Expands Illicit Massage Business Definition

Detected March 4th, 2026

Summary

Colorado HB26-1257 proposes to expand the definition of an "illicit massage business" to include businesses engaging in crimes beyond human-trafficking-related offenses. The bill also removes restrictions on local governments regarding licensing requirements and allows for additional grounds to deny, revoke, or suspend licenses.

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What changed

Colorado House Bill 26-1257 seeks to significantly alter the regulatory landscape for massage facilities within the state. The bill expands the definition of an "illicit massage business" beyond human-trafficking-related offenses to include other crimes. Crucially, it removes the limitation that local ordinances cannot be more restrictive than state law, allowing local governments to impose their own licensing requirements. Furthermore, the bill removes the $150 cap on administrative fees for licenses, eliminates exemptions for previously licensed businesses, and permits local governments to establish additional grounds for license denial, revocation, or suspension.

This legislation will require massage facility owners and operators in Colorado to closely monitor local ordinances, as they may face new or more stringent licensing requirements, fee structures, and grounds for disciplinary action. The shift in the definition of "illicit massage business" and the removal of state-level restrictions on local regulation mean that compliance strategies will need to be tailored to specific municipal rules. While no direct penalties are detailed in this summary, the expanded grounds for license denial or revocation imply increased enforcement risk for non-compliance with local regulations.

What to do next

Review local ordinances for expanded definitions of "illicit massage business" and new licensing requirements.
Assess potential impacts of increased administrative fees and new grounds for license denial, revocation, or suspension.
Ensure compliance with any new local regulations beyond existing state law requirements.

Source document (simplified)

HB26-1257

Local Regulation of Massage Facilities

| Type | Bill |
| --- | --- |
| Session | 2026 Regular Session |
| Subjects | Local Government Professions & Occupations |
Concerning the local regulation of massage facilities.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Current law authorizes a local government to license and regulate the operation of massage facilities within the local government's jurisdiction and to prevent the operation of illicit massage businesses, which are businesses that engage in massage but also engage in human-trafficking-related offenses. For the purpose of local enforcement, the bill 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 bill removes this limitation. The bill 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 bill removes the $150 cap on such fees. Current law exempts businesses that held licenses before August 10, 2022, from the administrative fees. The bill removes this exemption.

Current law allows a local government to deny, revoke, or suspend a license under certain circumstances. The bill allows a local government to establish additional grounds to deny, revoke, or suspend a license.

Current law prohibits a person from owning a massage facility if the person:

Has not submitted to a required background check at least 30 days before assuming an ownership interest in the massage facility; or
Has been convicted of or entered a plea of nolo contendere that is accepted by the court for any of certain enumerated offenses. The bill 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 bill states that preventing the operation of illicit massage businesses is a matter of mixed statewide and local concern.

(Note: This summary applies to this bill as introduced.)