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February 22, 2022 SB 22-131
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0235
Sen. Jaquez Lewis; Priola
Rep. Kipp; Froelich
Date:
Bill Status:
Fiscal Analyst:
February 22, 2022
Senate Agriculture
Christina Van Winkle | 303-866-6289
Christina.VanWinkle@state.co.us
Bill Topic: PROTECT HEALTH OF POLLINATORS & PEOPLE
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill restricts the use of pesticides on the grounds of schools, preschool programs,
child care centers, and children’s resident camps, and requires notifications when
pesticides are applied. It requires the Department of Natural Resources to study
pollinator decline in the state, and creates a pilot grant program in the Department of
Agriculture to test noncoated seed-applied systemic insecticides on crops. The
Commissioner of Agriculture is required to adopt rules to classify certain neonicotinoid
and sulfoximine pesticides as restricted-use pesticides by March 1, 2023. The bill
increases state and local government expenditures and state revenue beginning in
FY 2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $408,564 to multiple state
agencies. See appropriations section.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 22-131
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue Cash Funds $238,000 $280,000
Total Revenue $238,000 $280,000
Expenditures General Fund $240,722 $27,618
Cash Funds $167,842 $201,020
Centrally Appropriated $71,581 $88,260
Total Expenditure $480,145 $316,898
Total FTE 2.2 FTE 2.8 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $36,108 $4,143 Page 2
February 22, 2022 SB 22-131
Summary of Legislation
The bill restricts the use of pesticides on the grounds of schools, preschool programs, child care
centers, and children’s resident camp beginning January 1, 2026, and requires that parents and
guardians be notified 48-hours before authorized pesticide use. The Department of Public Health and
Environment (CDPHE) may adopt rules related to this provision.
The Department of Natural Resources (DNR) is directed to study and develop recommendations on
how to address pollinator decline and increase pollinator health in the state. The bill specifies the
parameters of the study, which must be submitted to the General Assembly and Governor by
January 1, 2024.
The bill creates the Noncoated Seed-Applied Systemic Insecticide Pilot Grant Program in the
Department of Agriculture. Agricultural producers may be awarded $15 per acre of corn and $10 per
acre of wheat and must comply with the planting requirements and maintain records demonstrating
compliance, subject to review by the Commissioner of Agriculture. The grant program repeals
September 1, 2025.
The bill requires the Commissioner of Agriculture to adopt rules by March 1, 2023, designating certain
pesticides as restricted-use pesticides. Specifically, this applies to pesticides that contain active
ingredients belonging to the neonicotinoid or sulfoxomine class of insecticides, except when used in
pet care, personal care, wood preservatives, indoor pest-control products, and products used on golf
courses. These rules will not affect the use of restricted-use pesticides for agricultural purposes.
Finally, the bill authorizes local governments to regulate pesticide use and removes certain
preemptions regarding local governments to regulate pesticide use.
Background
The Pesticide Registration Program in the Colorado Department of Agriculture (CDA) registers all
14,000 pesticides sold in the state, and licenses and inspects pesticide dealers for the sales of
restricted-use pesticides. The program currently registers 1,222 pesticide products that include the
active ingredients included in the bill and routinely inspects retail locations to ensure that the products
on shelves are registered with the state, sold by allowable sellers, and are stored properly.
The CDA also maintains a state restricted-use pesticides list. To distribute restricted-use pesticides,
businesses must have a pesticide dealer license and maintain records that verify sales of restricted-use
pesticides are only made to licensed certified applicators. Businesses that sell only general use
pesticides are not required to have a dealer license.
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February 22, 2022 SB 22-131
State Revenue
The bill increases state revenue from fees by $238,000 in FY 2022-23 and $280,000 in FY 2023-24 to the
Plant Health, Pest Control and Environmental Protection Fund in the CDA. This assumes that certain
provisions in this bill, including CDA’s costs associated with regulating additional pesticides as
restricted-use pesticides and providing oversight to local governments to enact regulations, will be
funded through fees. The bill may also result in an increase in penalties, but these potential revenue
increases are not estimated in the fiscal note.
Fee impact on pesticide product registrations. Colorado law requires legislative service agency
review of measures which create or increase any fee collected by a state agency. These fee amounts
are estimates only; actual fees will be set administratively by the CDA based on cash fund balance,
estimated program costs, and the estimated number of licenses subject to the fee. Table 2 below
identifies the fee impact of this bill.
Table 2
Fee Impact Under SB 22-131
Fiscal Year Type of Fee
Current
Fee
Proposed
Fee
Number
Affected
Total Fee
Impact
FY 2022-23 Pesticide Product Registration $205 $222 14,000 $238,000
FY 2023-24 Pesticide Product Registration $205 $225 14,000 $280,000
State Expenditures
Beginning in FY 2022-23, the bill increases state expenditures in multiple departments by $480,145 in
FY 2022-23 and $316,898 in FY 2023-24. These costs are shown in Table 3 and discussed below.
Table 3
State Expenditures Under SB 22-131
Cost Component FY 2022-23 FY 2023-24
Department of Agriculture
Personal Services $132,859 $182,608
Operating Expenses $2,160 $3,375
Capital Outlay Costs $18,600 -
Education and Outreach $5,750 $5,750
Travel and Training $8,473 $9,287
Centrally Appropriated Costs
1
$64,476 $82,776
FTE – Personal Services 1.8 FTE 2.5 FTE
CDA Subtotal $232,318 $283,796
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February 22, 2022 SB 22-131
Table 3
State Expenditures Under SB 22-131 (Cont.)
Cost Component FY 2022-23 FY 2023-24
Department of Natural Resources
Personal Services $34,522 $27,618
Operating Expenses - -
Capital Outlay Costs $6,200 -
Study Contract $200,000 -
Centrally Appropriated Costs
1
$7,105 $5,484
FTE – Personal Services 0.4 FTE 0.3 FTE
DNR Subtotal $247,827 $33,102
Total $480,145 $316,898
Total FTE 2.2 FTE 2.8 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Agriculture. The CDA will incur expenses beginning in FY 2022-23 to establish and
enforce additional pesticides as restricted-use pesticides, implement the grant program, and support
local governments that chose to restrict pesticides.
Restricted-use pesticides. The Pesticide Registration Program will add an inspector and compliance
specialist to support implementation of the bill. The program currently inspects 500 retail stores per
year. These inspections are estimated to require an additional two hours to complete given that the
products subject to the bill will not be labeled as restricted-use pesticides and that inspectors will be
looking for eight active ingredients and determining whether the product qualifies for an exemption.
The new inspector will have a leased state fleet vehicle provided through the Department of Personnel
and Administration.
The compliance specialist will process violations identified by the inspectors, take complaints from
the general public, and investigate and compile cases for enforcement actions. As new products are
filed for review with the program, the compliance specialist will review registrations, check active
ingredients, and determine whether products containing neonicotinoid and sulfoximine ingredients
either fit under an exception or are identified as a restricted-use pesticide.
The fiscal note assumes that the new staff will come on board in September 2022 and require annual
training. Costs for education and outreach to make retailers aware of the new requirements are
included in each fiscal year.
Grant Program. The CDA will require staff support to implement the Noncoated Seed-Applied
Systemic Insecticide Pilot Grant Program, including an administrator, compliance specialist, and
accountant. The bill specifies a pay structure for corn ($15 per acre) and wheat ($10 per acre). The
CDA estimates there are around 1,700 potentially eligible corn producers on an average of 822 acres
per grower, and 2,400 wheat growers averaging 448 acres per grower in Colorado. Information on
staff resource needs will be provided in a revised fiscal note once more information on the scope of
the grant program is known.
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February 22, 2022 SB 22-131
Local Government Support. The CDA requires 0.5 FTE for an administrator to provide technical
support to local governments that elect to regulate pesticides. The CDA will ensure local government
regulations conform with both state and federal law, and will amend state certification plans filed
with the U.S. Environmental Protection Agency as needed. Workload impacts are an estimate and
depend on the number and complexity of local government regulations on pesticides. Additional
resources may be requested through the annual budget process.
Department of Natural Resources. The DNR requires term-limited staff resources to consult with
state agencies and experts in pollinator health, and funds to contract for the study. The estimate for
the study is $200,000 based on recent studies with similar complexity. The DNR will also require a
part-time project manager to contract for and oversee the study, coordinate with other state agencies
and experts, and report findings and recommendations to the General Assembly by January 1, 2024.
Department of Public Health and Environment. The bill restricts pesticides on the grounds of
schools and facilities beginning January 1, 2026. This fiscal note therefore assumes the staffing costs
for the CDPHE will begin in FY 2024-25. Specifically, CDPHE requires 0.5 FTE for a policy advisor in
FY 2024-25 only to support rulemaking to regulate the use of pesticides on the grounds of schools,
preschools, child care centers and children’s resident camps. In addition, starting in FY 2024-25 and
continuing into future years, the CDPHE will require 0.3 FTE for a marketing and communication
specialist to conduct outreach and education to pesticide applicators, schools, and child care facilities
that must comply with the rules.
Department of Transportation. The Department of Transportation will have workload impacts to
consult on the pollinator health study, which can be accomplished with existing resources. Depending
on local government regulations on the use of pesticides, costs to comply when treating lands in its
Right of Ways may increase.
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 3.
Other Budget Impacts
TABOR refunds. The bill is expected to increase the amount of state revenue required to be refunded
to taxpayers by the amounts shown in the State Revenue section above. This estimate assumes the
December 2021 LCS revenue forecast. A forecast of state revenue subject to TABOR is not available
beyond FY 2023-24. Because TABOR refunds are paid from the General Fund, increased cash fund
revenue will reduce the amount of General Fund available to spend or save.
Local Government
School districts will have increased costs to comply with the pesticide restrictions and notification
requirements in the bill. Purchasing organic or other authorized pesticides and converting to other
methods of weed and pest control will increase material and labor costs for schools and facilities.
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February 22, 2022 SB 22-131
In addition, local governments that elect to enact pesticide regulations will have workload impacts to
enforce and comply with regulations.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed, except that local governments may regulate the use and application of
pesticides beginning March 1, 2023.
State Appropriations
For FY 2022-23, the bill requires the following appropriations:
$240,722 General Fund to the Department of Natural Resources and 0.4 FTE; and
$167,842 from the Plant Health, Pest Control and Environmental Protection Fund to the
Department of Agriculture and 1.8 FTE, of which $3,687 is reappropriated to the Department of
Personnel and Administration for a state fleet vehicle.
State and Local Government Contacts
Agriculture Counties
Information Technology Judicial
Local Affairs Municipalities
Natural Resources Personnel
Public Health and Environment School Districts
Transportation
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.