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August 5, 2022 SB 22-114
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0535
Sen. Hisey; Story
Rep. Roberts; Catlin
Date:
Bill Status:
Fiscal Analyst:
August 5, 2022
Signed into Law
Josh Abram | 303-866-3561
Josh.Abram@state.co.us
Bill Topic: FIRE SUPPRESSION PONDS WATER RIGHTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill allows a board of county commissioners to apply to the State Engineer to have
certain ponds designated as fire suppression ponds. The bill increases state and local
expenditures beginning in FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill includes an appropriation of $19,428 to the Department of
Natural Resources.
Fiscal Note
Status:
The fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under SB 22-114
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund $19,428 $13,146
Transfers - -
Other Budget Impacts General Fund Reserve $2,914 $1,972
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August 5, 2022 SB 22-114
Summary of Legislation
The bill allows a board of county commissioners to apply to the State Engineer in the Division of Water
Resources in the Department of Natural Resources (DNR) for the designation of a pond within the
county as a fire suppression pond. Fire suppression ponds must be inspected annually by the county
and fire protection district.
Prior to application, commissioners must consult with its fire protection district or fire authority to
identify ponds in areas that have a high risk of wildfire damage, and perform a needs assessment on
potential suppression ponds, including identifying refill mechanisms such as groundwater pumping
or surface diversions. For each pond under consideration by a county, the commissioners must notify
the State Engineer. Ponds are not considered a property right, and cannot create injury to an existing
vested water right.
Before May 1, 2023, the Department of Public Safety (DPS) is required to seek input from various
stakeholders and adopt rules establishing the minimum criteria for counties to use to identify and
evaluate potential ponds. The bill outlines the process and deadlines for the State Engineer to consider
applications, issue decisions and denials, and designate, renew or rescind fire suppression ponds. A
water right holder may petition a water judge to review designations made by the State Engineer.
Except for addressing dam safety concerns, the State Engineer must not order a pond to be drained or
backfilled if it is under consideration as a fire suppression pond, has been so designated by the State
Engineer, or until the Division of Fire Prevention and Control in the DPS adopts rules for fire
suppression ponds.
The Division of Fire Prevention and Control may, subject to available appropriations, provide
financial support to a board of county commissioners to assist with acquisition of augmentation water
for ponds that satisfy the criteria of the bill but are not designated as fire suppression ponds.
State Expenditures
The bill increases state General Fund expenditures in the DNR by $19,428 in FY 2022-23, and by
$13,146 in FY 2023-24. Expenditures are displayed in Table 2 and described below.
Table 2
Expenditures Under SB 22-114
FY 2022-23 FY 2023-24
Department of Natural Resources
Temporary Personal Services - $13,146
Legal Services (Department of Law) $11,828 -
Computer Programming (OIT) $7,600 -
Total Cost $19,428 $13,146
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August 5, 2022 SB 22-114
Division of Water Resources. For FY 2022-23, the DNR will require legal services from the
Department of Law to assist with rule making, estimated at 120 hours at a blended rate of $98.57. The
DNR will also purchase 40 hours at the rate of $190 per hour for computer programming from the
Office of Information Technology (OIT). These costs also include developing an application form and
workflow process, and making modifications to the database user interface.
For FY 2023-24, the DNR will employ temporary staff to assist with processing applications from
counties. This elevated workload is expected to recur in FY 2024-25; however, in out years, the number
of county applications is anticipated to be minimal. Temporary personal services are estimated at
420 hours at $31.30 an hour.
Division of Fire Prevention and Control. The division will have a workload increase to promulgate
the rules required by the bill. This workload increase can be accomplished within existing
appropriations. The bill permits, but does not require, the division to provide financial support to
facilitate a board of county commissioners’ acquisition of augmentation water for ponds designated
as fire suppression ponds. This expense has not been estimated.
Judicial department. The bill allows a water court to review and rule on designations made by the
State Engineer if petitioned by a water rights owner. This is expected to minimally increase workload
for the State Water Courts. This increase does not require additional appropriations.
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 $2,914
in FY 2022-23, and by $1,972 in FY 2023-24, which will decrease the amount of General Fund available
for other purposes.
Local Government
Counties will have increased workload to conduct needs assessments and manage the application
process with the State Engineer. Once fire suppression ponds have been designated, there may be
additional requirements for counties to annually inspect ponds and maintain the designation. Not all
counties will participate in the program, and mountain communities are more likely to have available
ponds for designation. The eastern plains areas traditionally have irrigation wells, ditches, and
municipal water supplies available for fire use, so applications are expected to be minimal.
Effective Date
The bill was signed into law by the Governor on June 8, 2022, and takes effect August 9, 2022, assuming
no referendum petition is filed.
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August 5, 2022 SB 22-114
State Appropriations
For FY 2022-23, the bill includes a General Fund appropriation of $19,428 to the Department of Natural
Resources. Of this amount, $11,828 is reappropriated to the Department of Law for legal services, and
$7,600 is reappropriated to the Office of Information Technology for computer programming.
State and Local Government Contacts
Counties Information Technology Law
Natural Resources Public Safety
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.