Page 1 February 28, 2022 HB 22-1232 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 22-0317 Rep. Valdez A.; Titone Date: Bill Status: Fiscal Analyst: February 28, 2022 House Energy & Environment Clare Pramuk | 303-866-2677 clare.pramuk@state.co.us Bill Topic: SUNSET CONTINUE REGULATION OF ASBESTOS Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity Sunset Bill. This bill continues the administration of the Asbestos Control Act by the Air Quality Control Commission in the Department of Public Health and Environment. It is currently set to repeal on September 1, 2022. State fiscal impacts under the bill include only the continuation of the program's current revenue and expenditures. The program is continued through September 1, 2027. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under HB 22-1232 1 New Impacts Budget Year FY 2022-23 Out Year FY 2023-24 Revenue - - Expenditures - - Other Budget Impacts - - Continuing Impacts Revenue Cash Funds - $1,903,215 Expenditures Cash Funds - $1,903,215 Continuing FTE - 13.1 FTE Other Budget Impacts - - 1 Table 1 shows the new impacts resulting from changes to the program under the bill, and the continuing impacts from extending the program beyond its current repeal date. Because the bill continues a program without making any changes, there are no new impacts. The continuing program impacts will end if the bill is not passed and the program is allowed to repeal. Page 2 February 28, 2022 HB 22-1232 Summary of Legislation The administration of the Asbestos Control Act by the Department of Public Health and Environment is set to expire September 1, 2022. This bill continues the program until September 1, 2027, removes provisions that prohibit rules under the Act from being more restrictive than the laws and regulations under the federal Occupational Safety and Health Act; and requires local governments to include specific language regarding asbestos inspections on building permits. Background The Indoor Environment Program within the Air Pollution Control Division at the Colorado Department of Public Health and Environment is responsible for asbestos regulatory compliance in the state. The program is authorized and obligated to enforce the federal National Emission Standards for Hazardous Air Pollutants regarding asbestos in public and commercial buildings, the federal Asbestos Hazard Emergency Response Act regarding asbestos in schools, and the federal Asbestos School Hazard Abatement Reauthorization Act, which extends certification requirements to public and commercial buildings. Funding for asbestos control administration includes fees for permits for asbestos abatement and demolition and the testing and certification of individuals and companies involved in asbestos abatement activities. The 2021 sunset review can be found here: https://drive.google.com/file/d/1XZzvJffxP6Aexxx0GwGX4l8gPUWTTFEd/view. Continuing Program Impacts Based on the department's FY 2022-23 budget request, the Department of Public Health and Environment is expected to have revenue and expenditures of $1,903,215 to administer the Asbestos Program, including the certification of asbestos control professionals. If this bill is enacted, current revenue and expenditures will continue for the program starting in FY 2023-24. This continuing revenue is subject to the state TABOR limit. If this bill is not enacted, the program will end on September 1, 2023, following a wind-down period, and state revenue and expenditures will decrease starting in FY 2023 24 by the amounts shown in Table 1, above. Local Government When updating application forms for building permits, local governments will add the language specified in the bill, which may increase printing costs. 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 Counties Information Technology Law Municipalities Public Health and Environment 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.