Page 1
January 26, 2022 SB 22-034
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0446
Sen. Kolker; Priola
Rep. Bird
Date:
Bill Status:
Fiscal Analyst:
January 26, 2022
Senate Business
Matt Bishop | 303-866-4796
Matt.Bishop@state.co.us
Bill Topic: BUSINESS FILING ADDRESS AND NAME FRAUD
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates a complaint and remediation process for a person whose business
identity or personal identifying information has been used fraudulently in business
filings. It increases state expenditures on an ongoing basis beginning in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $27,209 to the Department of
Law.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 22-034
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures Cash Funds $27,209 $49,676
Centrally Appropriated $7,747 $16,153
Total Expenditures $34,956 $65,829
Total FTE 0.3 FTE 0.7 FTE
Transfers - -
Other Budget Impacts - -
Page 2
January 26, 2022 SB 22-034
Summary of Legislation
Under current law, a business entity submits documents that concern the creation, organization, and
operations of the entity to the Secretary of State to be filed online. The bill creates a complaint process
for a person whose business identity or personal identifying information has been used in the filing
of these documents without authority or for fraudulent activity. If a complaint is submitted, starting
February 1, 2023, the Secretary of State may forward it to the Attorney General for further
investigation, who may then prosecute the complaint before an Administrative Law Judge. The bill
establishes the process for resolving the complaint, and establishes that the prohibited behavior
constitutes a deceptive trade practice.
State Expenditures
The bill increases state cash fund expenditures in several departments by $34,956 in FY 2022-23 and
$65,829 in FY 2023-24 from various cash funds. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under SB 22-034
Cost Components FY 2022-23 FY 2023-24
Department of Law
Personal Services $21,009 $44,427
Operating Expenses - $1,386
Capital Outlay Costs $6,200 -
Centrally Appropriated Costs
1
$7,747 $14,806
FTE – Personal Services 0.3 FTE 0.6 FTE
Dept. of Law Subtotal $34,956 $60,619
Department of State
Personal Services - $3,863
Centrally Appropriated Costs
1
- $1,347
FTE – Personal Services - 0.1 FTE
Dept. of State Subtotal $0 $5,210
Total $34,956 $65,829
Total FTE 0.3 FTE 0.7 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Law. Workload will increase by an estimated three hours per complaint to
communicate with alleged fraudulent entities and with the Secretary of State’s office. This is estimated
to require 0.6 FTE in the Department of Law, which is prorated in FY 2022-23 for the bill’s effective
date. Standard operating and capital outlay costs are included. Expenditures are paid from the
Consumer Protection Custodial Fund. Page 3
January 26, 2022 SB 22-034
Workload may also increase to the extent that enforcement of a deceptive trade practice is required.
The department will review complaints under the bill and prioritize investigations as necessary within
the overall number of deceptive trade practice complaints and available resources.
Department State. Workload will likewise increase in the Secretary of State’s office to respond to and
evaluate complaints, and to update online business registration database as necessary. This is
expected to require 0.1 FTE annually, and is absorbable in FY 2022-23 due to the bill’s effective date.
Standard operating and capital outlay costs are included. Expenditures are paid from the Department
of State Cash Fund.
Department Personnel and Administration. Expenditures may increase in the department’s
Integrated Document Solutions Group, which handles centralized mailing services for state agencies.
The volume of potential mail generated by this bill is expected to be absorbable within existing
appropriations. The bill may also increase the number of cases heard by the Office of Administrative
Courts. A small additional caseload can be absorbed within existing appropriations. Should a large
number of cases be referred to the office, the department will request additional resources through
the annual budget process.
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 February 1, 2023, assuming no referendum petition is filed, and applies to
complaints and offenses submitted on or after this date.
State Appropriations
For FY 2022-23, the bill requires a cash funds appropriation of $27,209 from the Consumer Protection
Custodial Fund to the Department of Law, and 0.3 FTE.
State and Local Government Contacts
Information Technology Law
Personnel Secretary of State
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.