9NEWS' partners at the Denver Post report that Rep. Garcia (D-Aurora) was accused by a lobbyist of exposing himself and making lewd comments to her as they played pool and drank in a bar.
Garcia released a statement on Friday about the matter:
"Initial press reports are highly inaccurate regarding my alleged conduct. The other party and I engaged in consensual conduct that was inappropriate given my position in the legislature and the fact that the other party is a lobbyist. I do not want this incident to be a barrier to the work of the state of Colorado. Time is precious, and elected officials need to focus on health, fiscal, education and safety issues. The interests of the state are greater than my own. As a result, I have made the difficult decision to resign. I apologize for any hardship this has caused my constituents, friends, family and colleagues."
The Post also reports the incident was reported to House Speaker Andrew Romanoff who said he could not comment on the matter.
The woman has not filed criminal charges, according to the Post.
Garcia, 34, also teaches at the University of Colorado at Boulder. Garcia is a part-time instructor teaching a government class there.
CU told 9NEWS on Friday that Garcia is not teaching this semester during the session.
A spokesman says the school is looking seriously into the matter, but state personnel rules prevent the school from commenting specifically on Garcia's future.
The spokesman, Bronson Hilliard, stressed most of Garcia's involvement with the class took place on lessons about state legislature in the Denver community and not on the CU Boulder campus.
Garcia was first elected to the House in 2000 and has been re-elected three times.
(Copyright KUSA*TV, the Denver Post contributed to this report. All Rights Reserved)