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April 6, 2022 HB 22-1082
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 1, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0238
Rep. Hooton; Bacon
Sen. Gonzales
Date:
Bill Status:
Fiscal Analyst:
April 6, 2022
Senate Appropriations
Aaron Carpenter | 303-866-4918
Aaron.Carpenter@state.co.us
Bill Topic: ESTABLISH FAIR HOUSING UNIT DEPARTMENT OF LAW
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates the Fair Housing Unit in the Department of Law to enforce civil and
criminal action for various housing statutes. Starting in FY 2022-23, the bill will
increase state expenditures and may increase state revenue.
Appropriation
Summary:
No appropriation is required; the Mortgage Fraud Settlement Custodial Cash Fund is
continuously appropriated to the Department of Law.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill, as amended by the Senate
Judiciary Committee.
Table 1
State Fiscal Impacts Under HB 22-1082
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- -
Expenditures Cash Funds $208,324 $234,953
Centrally Appropriated $33,311 $40,773
Total Expenditures $241,635 $275,726
Total FTE 1.6 FTE 2.0 FTE
Transfers - -
Other Budget Impacts - -
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April 6, 2022 HB 22-1082
Summary of Legislation
The bill creates the Fair Housing Unit in the Department of Law (DOL) to bring civil and criminal
actions to enforce the following sections of law:
the Immigrant Tenant Protection Act;
the Mobile Home Park Act;
the Mobile Home Park Act Dispute Resolution and Enforcement Program; and
Part 1 (Wrongful Withholding of Security Deposits) and Part 7 (Notice of Rent Increase) of
Article 12 of Title 38 governing tenants and landlords.
The bill outlines the power of the Attorney General when bringing civil and criminal actions, the
venue for actions, remedies, and penalties, among other things.
Background
In 2012, Colorado entered into a $200 million settlement with five different banks over allegations of
wrongful mortgage practices. Under the settlement, the state was awarded over $50 million deposited
into the Mortgage Fraud Settlement Custodial Cash Fund to be used for various mortgage-related
efforts including contracting with the Department of Local Affairs to provide loans for construction
and rehabilitation of affordable rental housing. According to the Department of Law, the fund is
estimated to receive about $2.0 million per year in revenue from the repayment of these loans and will
have an estimated balance of $5.5 million at the end of FY 2021-22.
State Revenue
Starting in FY 2022-23, state revenue to the Attorney Fees and Costs Cash Fund will increase to the
extent the department recoups investigative and attorney costs, as allowed by the bill. Because it is
unknown how often the Attorney General will bring cases under the bill, how long cases will last, or
how much can be recouped, an exact revenue estimate cannot be determined. For informational
purposes, based on average costs, if the department recoups 200 hours of investigative and attorney
time, revenue would increase by $19,714. Revenue to the Attorney Fees and Costs Cash Fund is not
subject to the state’s TABOR limit.
State Expenditures
The bill increases state expenditures in DOL by $241,635 in FY 2022-23 and $275,726 in FY 2023-24 and
future years, paid from the Mortgage Fraud Settlement Custodial Cash Fund. Additionally, workload
may increase in the Judicial Department. These costs are summarized in Table 2 and discussed below.
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April 6, 2022 HB 22-1082
Table 2
Expenditures Under HB 22-1082
FY 2022-23 FY 2023-24
Department of Law
Personal Services $192,444 $230,933
Operating Expenses $2,160 $2,700
Capital Outlay Costs $12,400 -
Mileage Reimbursement $1,320 $1,320
Centrally Appropriated Costs
1
$33,311 $40,773
Total Cost $241,635 $275,726
Total FTE 1.6 FTE 2.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Law. The DOL requires 2.0 FTE to staff the new Fair Housing Unit and to enforce the
various housing statutes listed in the bill. Staff includes one senior assistant attorney general to bring
civil and criminal actions and one criminal investigator. Staffing costs include personal services,
operating and capital outlay costs, and mileage reimbursement at $0.22 per mile, as outlined in Table 2
above. Costs in FY 2022-23 are prorated for a September 1 start date. Because funds in the Mortgage
Fraud Settlement Custodial Cash Fund are continuously appropriated to the DOL, no appropriation
for these costs is required.
Judicial Department. Workload in the trial courts in the Judicial Department will increase to the
extent more housing related cases are filed. The fiscal note assumes that no change in appropriation
is required.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated with
this bill are addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which include employee insurance
and supplemental employee retirement payments, are shown in Table 2.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State and Local Government Contacts
Information Technology Judicial Law
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.