Gov. Jared Polis signed into law Wednesday a measure that sets the stage for creating at least 125 more inpatient beds for Coloradans with severe mental illnesses.

The law, passed with overwhelming support in both the House and Senate, requires the Human Services and Health departments to “create, develop, or contract” at least 125 new beds by July 1, 2024. It also mandates the Department of Human Services renovate a building at the Colorado Mental Health Institute in Fort Logan to add at least 16 more beds there by Dec. 30, 2024.

Those 16 beds will initially be prioritized for people in need of competency services related to criminal proceedings.

The Legislature set aside $41.9 million of federal money from the American Rescue Plan Act, which must be spent by Dec. 30, 2024, to pay for the Fort Logan renovation and the efforts to launch the new beds.

The law comes as the state faces dual crises. One revolves around mental health: The pandemic exacerbated Colorado’s mental health problems among both youth and adults. Legislators explicitly noted that trend in the law, writing that “adults with behavioral health needs have faced unprecedented challenges” during the pandemic.

The second crisis involves substance use: Colorado faces a spiraling number of fentanyl and methamphetamine-related deaths in recent years. Front-line providers have warned that access to treatment — particularly inpatient services — is tightly limited, especially for patients who can’t afford to pay for their own stay.

“The beds in the mental health facilities are available for adult individuals in need of ongoing supportive services,” the law states, “but individuals with a severe mental illness or a dual diagnosis of mental illness and alcohol or substance use disorder must be prioritized.”

To get to 125 new beds, the money earmarked by the legislation can be spent on renovating private facilities, but existing, department-owned properties should be prioritized. The beds will be placed throughout the state “based on the greatest areas of need,” according to the bill.

The beds should also prioritize patients who were committed to care and have been discharged but are in need of additional services.

The facilities targeted for the enhanced bed space must offer, at a minimum, medication assistance, direct support personnel, life skills training, intensive case-management services and non-medical transportation.