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May 25, 2022 HB 22-1097
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0417
Rep. Valdez D.
Sen. Simpson
Date:
Bill Status:
Fiscal
Analyst:
May 25, 2022
Signed into Law
Christina Van Winkle | 303-866-6289
Christina.VanWinkle@state.co.us
Bill Topic: DISSOLUTION OF SPECIAL DISTRICTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill expands the authority to file applications to dissolve a special district to include
boards of county commissioners, and also allows counties and special districts with
no outstanding financial obligations or debt to mutually consent to dissolution via a
court order. Beginning in FY 2022-23, the bill may increase state and local
government expenditures.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the enacted bill.
Summary of Legislation
Under current law, municipalities and regional service authorities are authorized file an application
for dissolution with a special district’s board of directors. This bill expands that authorization to
boards of county commissioners. The bill also expands current law to allow a board of county
commissioners and a special district that is wholly within a county’s boundaries and has no
outstanding debt or financial obligations to mutually consent to dissolution via a court order without
an election. Special districts with more than 85 percent of territory within the corporate limits of one
or more municipality must obtain consent from the governing bodies of all such municipalities.
State Expenditures
Beginning in FY 2022-23, the Department of Local Affairs may have a reduced workload if potentially
affected special districts no longer require administrative dissolution by the Division of Local
Government pursuant to Section 32-1-710, C.R.S. In addition, trial courts within the Judicial
Department may incur incremental workload if additional cases are filed. This fiscal note assumes
the workload is absorbable within existing resources.
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May 25, 2022 HB 22-1097
Local Government
Beginning in FY 2022-23, counties may have workload impacts to file applications for dissolution with
special districts. If dissolution plans include transferring services previously provided by the special
district to the county, then costs associated with providing those services will be incurred. In rare
cases where the special district board does not consent to dissolution application filed by the board of
county commissioners, election expenses will be incurred. These costs are not estimated in this fiscal
note.
Effective Date
The bill was signed into law by the Governor on March 17, 2022, and takes effect on August 9, 2022,
assuming no referendum petition is filed.
State and Local Government Contacts
Counties Judicial Local Affairs
Municipalities Special Districts
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.