Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Room 029 State Capitol, Denver, CO 80203-1784
Phone: (303) 866-3521 • Fax: (303) 866-3855
lcs.ga@state.co.us • leg.colorado.gov/lcs
Fiscal Note
Memorandum
March 22, 2022
TO: Representative Andrew Boesenecker
FROM: Matt Bishop, Research Analyst
Matt.Bishop@state.co.us | (303-866-4796)
SUBJECT: Fiscal Assessment of Proposed Amendment s HB1287_L.001, HB1287_L.003,
HB1287_L.004, and HB1287_L.006.
This memorandum is an assessment of the fiscal impact of the attached proposed amendments L.001,
L.003, L.004, and L.006 to House Bill 22-1287. This fiscal assessment is for the impact of the bill with
inclusion of these amendments only. Any other added amendment could influence the fiscal impact.
Summary of Proposed Amendments
Amendment L.001 specifies that rent increase cap implemented by the bill is not enforceable through
the Mobile Home Park Act Dispute Resolution and Enforcement Program (DREP).
Amendment L.003 removes the authority under the bill for non-homeowner residents, local
governments, and nonprofit entities to file complaints through DREP.
Amendment L.004 removes the requirements under the bill that the Department of Local Affairs
(DOLA) provide a simplified complaint form and follow an expedited response process.
Amendment L.006 directs the General Assembly to appropriate money from the General Fund for
addressing concerns and complaints related to mobile home owners’ right to purchase mobile home
parks and the requirement that landlords cover certain costs of mobile home owners when changing
the use of land compromising a mobile home park.
Fiscal Impact of Amendments
The amendments eliminate the estimated fee increase and the corresponding increase in state revenue
shown in the published fiscal note from March 18, 2022. They also lower the estimated expenditures
by about $250,000 and 1.2 FTE relative to the published fiscal note of March 18, 2022. Specifically,
Amendments L.001, L.003, and L.004 reduce the duties and obligations under the bill for DOLA, which
lowers the expenditure impact of the bill. Amendment L.006 requires certain functions of the bill to
be paid using General Fund provided to the Mobile Home Park Act Dispute Resolution and
Enforcement Program Fund. Typically, expenditures for the program are paid using registration fee
revenue from mobile home park owners. It is assumed that providing General Fund will eliminate
the need to raise fees to cover the cost of the bill. 2
Bill’s Revised Fiscal Impact with Amendments
With Amendments L.001, L.003, L.004, and L.006, HB 22-1287 is preliminarily estimated to increase
state expenditures by $149,316 and 1.0 FTE in FY 2022-23 and by $116,657 and 1.0 FTE in FY 2023-24.
It may also minimally impact state revenue from fees and fines, and requires a transfer from the
General Fund each year. These impacts are shown in Table 1 and discussed below.
Table 1
State Fiscal Impacts Under HB 22-1287 with Amendments
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- -
Expenditures Cash Funds $116,807 $84,148
Centrally Appropriated $32,509 $32,509
Total Expenditures $149,316 $116,657
Total FTE 1.0 FTE 1.0 FTE
Transfers
1
General Fund ($116,293) ($109,697)
Cash Funds $116,293 $109,697
Net Transfer $0 $0
Other Budget Impacts General Fund Reserve $17,444 $16,455
1
This transfer is represents the estimated appropriation required from the General Fund to the continuously
appropriated Mobile Home Park Dispute Resolution and Enforcement Fund to support the costs of the bill without
raising fees.
State Revenue
As amended, the bill may increase state revenue beginning in FY 2022-23. The bill creates additional
violations of the Mobile Home Park Act and permits mobile home owners to file civil actions, which
may increase cases heard in trial courts. Because most complaints are addressed through DREP, the
fiscal note assumes that any impact on trial court workload will be minimal. To the extent the bill
increases civil case filings, state revenue will increase beginning in FY 2022-23. This fee revenue is
subject to TABOR.
State Transfer
Based on L.006, it is assumed that General Fund will be appropriated to the Mobile Home Park Act
Dispute Resolution and Enforcement Program Fund to cover certain costs of the bill. These
appropriations will result in a transfer from the General Fund to the program cash fund of $116,293
in FY 2022-23 and $109,697 in FY 2023-24.
State Expenditures
As amended, the bill increases state expenditures in several state agencies, primarily DOLA, by
$149,316 in FY 2022-23 and $116,657 in FY 2023-24. It is assumed that these costs are paid from the
Mobile Home Park Act Dispute Resolution and Enforcement Program Fund. Expenditures are shown
in Table 1 and detailed below.
3
Table 2
Expenditures Under HB 22-1287
FY 2022-23 FY 2023-24
Department of Local Affairs
Personal Services $73,571 $73,571
Operating Expenses $3,617 $3,617
Capital Outlay Costs $6,596 -
IT Support $24,323 -
Document Management $8,700 $6,960
Centrally Appropriated Costs $32,509 $32,509
Total Cost $149,316 $116,657
Total FTE 1.0 FTE 1.0 FTE
Department of Local Affairs. Expanding protections for mobile home owners is expected to increase
the number of complaints received by the Mobile Home Park Oversight Program, increasing
workload to respond to additional questions and complaints and for enforcement. Promulgating
rules, updating forms, responding to questions and complaints, and investigating alleged violations
requires 1.0 FTE additional staff in the program, beginning in FY 2022-23. Operating and capital
outlay costs include standard costs, additional computer equipment and software licenses, cell phone
expenses, and mileage reimbursement at the standard rate. The fiscal note assumes a July 1 start date.
IT support. In FY 2022-23, DOLA requires one-time computer programming and testing costs to
update existing registration forms with new fields. Programming costs, to be paid from the
Mobile Home Park Act Dispute Resolution and Enforcement Program Fund, are based on
250 hours of programming by the Office of Information Technology (OIT) at a rate of $94 per hour.
In addition, OIT staff co-located with DOLA will provide training to new DOLA staff and other
ongoing support.
Legal services. DOLA will require up to 100 hours of legal services, provided by the Department
of Law. This increase in legal services costs is accounted for through the annual budget process,
with the Department of Law billing client agencies based on their historical use of legal services.
No change in appropriations 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 1.
Department of Personnel and Administration. The Office of Administrative Courts may hear
additional cases under the bill. The fiscal note assumes that the number of additional cases will be
small and can be accomplished within existing appropriations. If the number of cases is greater than
expected, the department may request additional resources through the annual budget process.
4
Judicial Department. As discussed in the State Revenue section above, workload may increase in the
trial courts. Because most complaints are addressed through DREP, the fiscal note assumes that any
impact on trial court workload will be minimal.
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by the
amounts shown in Table 1, which will decrease the amount of General Fund available for other
purposes.
State Appropriations
For FY 2022-23, the bill as amended requires an appropriation of $116,293 from the General Fund to
the Mobile Home Park Dispute Resolution and Enforcement Fund.
The Mobile Home Park Dispute Resolution and Enforcement Fund is continuously appropriated to
the Department of Local Affairs, so no appropriation is required from this fund. DOLA requires an
additional allocation of 1.0 FTE.
Lastly, for FY 2022-23, the Office of Information Technology requires $24,323 in reappropriation funds
from DOLA for IT services.