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August 8, 2022 HB 22-1359
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0699
Rep. Bacon; Snyder
Sen. Rodriguez
Date:
Bill Status:
Fiscal Analyst:
August 8, 2022
Signed into Law
Matt Bishop | 303-866-4796
Matt.Bishop@state.co.us
Bill Topic: COLORADO HOUSEHOLD FINANCIAL RECOVERY PROGRAM
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates a pilot program to provide loan support to certain individuals and
households affected by the COVID-19 pandemic. It increases state expenditures and
may increase state revenue beginning in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill includes an appropriation of $5.2 million to the Colorado
Household Financial Recovery Pilot Program Fund for use by the Department of
Treasury.
Fiscal Note
Status:
The fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under HB 22-1359
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures Cash Funds $5,110,295 $69,595
Centrally Appropriated $9,971 $9,971
Total Expenditures $5,120,266 $79,566
Total FTE 0.9 FTE 0.7 FTE
Transfers
1
General Fund ($5,200,000) -
Cash Funds $5,200,000 -
Net Transfer $0 -
Other Budget Impacts General Fund Reserve $780,000 -
1
This transfer is made through an appropriation of General Fund to a cash fund.
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August 8, 2022 HB 22-1359
Summary of Legislation
The bill creates the Colorado Household Financial Recovery Pilot Program in the Department of the
Treasury to facilitate lending to certain individuals and households impacted by the COIVD-19
pandemic. The program may establish a loan loss reserve to partially offset risk in making loans to
eligible individuals or households, make payments to lenders to buy down interest rates, or to provide
lending capital. The bill establishes parameters for the program, including the maximum loan and
interest amounts, and reporting requirements. The department may award grants to nonprofit
organizations to facilitate program outreach, and it may contract with community development
financial institutions to administer the program, in consultation with the advisory council created by
the Financial Empowerment Office in the Department of Law. The program administrator must
submit a report on the program to the Governor and the legislature each year beginning
November 1, 2023.
The bill creates the Colorado Household Financial Recovery Pilot Program Fund for the program,
continuously appropriates the fund to the department, and authorizes the collection of gifts, grants,
and donations for the program. The department may expend up to four percent of the money
appropriated to the fund for the direct and indirect costs of administering the program.
State Revenue
The bill potentially increases state revenue to the Colorado Household Financial Recovery Pilot
Program Fund from gifts, grants, or donations; however, no sources have been identified at this time.
Gifts, grants, and donations are exempt from TABOR revenue limits.
State Transfers
The bill requires an appropriation from the General Fund to the Colorado Household Financial
Recovery Pilot Program Fund of $5.2 million in FY 2022-23 to transfer funding for the program.
State Expenditures
The bill increases state expenditures in the Department of the Treasury by $5.1 million in FY 2022-23
and $0.1 million in FY 2023-24 from the Colorado Household Financial Recovery Pilot Program Fund.
Expenditures are shown in Table 2 and detailed below.
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August 8, 2022 HB 22-1359
Table 2
Expenditures Under HB 22-1359
FY 2022-23 FY 2023-24
Department of the Treasury
Personal Services $44,143 $44,143
Operating Expenses $810 $810
Capital Outlay Costs $6,200 -
Recovery Program Costs
1
$5,000,000 -
Legal Services $59,142 $24,643
Centrally Appropriated Costs
2
$9,971 $9,971
FTE – Personal Services 0.6 FTE 0.6 FTE
FTE – Legal Services 0.3 FTE 0.1 FTE
Total Cost $5,120,266 $79,566
Total FTE 0.9 FTE 0.7 FTE
1
Funds are continuously appropriated to the Department of the Treasury and costs for the recovery
program may be spent over multiple years.
2
Centrally appropriated costs are not included in the bill's appropriation.
Department of the Treasury. Workload will increase to oversee the program, select one or more
contracted administrators, establish program policies, and create the annual report. This workload is
estimated to require 0.6 FTE beginning in FY 2022-23; costs in the first year assume a July 1, 2022 start
date. Additional recovery program costs include the contract with an administrator, awarding
outreach grants to nonprofit organizations, establishing the loan loss reserve, making payments to
lenders, or issuing loans. The split between these costs will be determined by the department.
Legal services. The Department of the Treasury will require 600 hours of legal services in FY 2022-23
and 250 hours in subsequent years to provide general counsel on program development and support
with contracting. Legal services are provided by the Department of Law at a rate of $98.57 per hour.
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.
Other Budget Impacts
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
amount in Table 1, which will decrease the amount of General Fund available for other purposes. Page 4
August 8, 2022 HB 22-1359
Effective Date
This bill was signed into law by the Governor and took effect on June 3, 2022.
State Appropriations
For FY 2022-23, the bill includes an appropriation of $5,200,000 from the General Fund to the Colorado
Household Financial Recovery Pilot Program Fund, which is continuously appropriated to the
Department of the Treasury. The Department of Treasury also requires 0.6 FTE in FY 2022-23.
In addition, the bill requires and includes a reappropriation in FY 2022-23 of $59,142 from the
Colorado Household Financial Recovery Pilot Program Fund to the Department of Law, and 0.3 FTE.
State and Local Government Contacts
Governor Information Technology Law
Legislative Council Staff Personnel Treasury
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.