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April 12, 2023 HB 23-1120
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 5, 2023)
Drafting Number:
Prime Sponsors:
LLS 23-0541
Rep. Joseph; Ortiz
Sen. Fields; Winter F.
Date:
Bill Status:
Fiscal Analyst:
April 12, 2023
House Second Reading
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: EVICTION PROTECTIONS FOR RESIDENTIAL TENANTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires mediation in eviction proceedings when the tenant qualifies for certain
types of financial assistance. The bill will increase state expenditures and local
workload beginning in FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $272,226 to the Judicial
Department.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the House Judiciary
Committee.
Table 1
State Fiscal Impacts Under HB 23-1120
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $272,226 $269,757
Centrally Appropriated $10,938 $12,432
Total Expenditures $283,164 $282,189
Total FTE 0.6 FTE 0.7 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $40,834 $40,464
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April 12, 2023 HB 23-1120
Summary of Legislation
The bill requires mediation between a landlord and a residential tenant in an eviction proceeding if
the tenant receives supplemental security income, federal social security disability insurance, or
financial assistance from the Colorado Works program. Mediation is not required if the tenant does
not disclose that they receive the financial assistance to the landlord. Failure to comply with
mandatory mediation in these eviction proceedings is an affirmative defense. Lease agreements must
contain a notice that qualified individuals are entitled to mediation and must not contain a waiver of
mandatory mediation under the provisions of the bill. Writ of restitutions, where the landlord retains
possession of a property after an eviction, cannot be served for 30 days after judgement if the tenant
is entitled to mandatory mediation under the provisions of the bill. Landlords managing five or fewer
homes are exempt from mandatory mediation.
Background and Assumptions
Office of Dispute Resolution. The Office of Dispute Resolution (ODR) in the Judicial Department
provides mediation services to willing parties. In mediation cases involving a landlord and an
indigent tenant, the landlord would pay $75 per hour, , and the state would pay $50 per hour. In total,
the ODR handles approximately 6,000 to 8,000 cases per year among approximately 80 contract
mediators.
Eviction data. Based on the number of eviction cases filed with Colorado courts in FY 2018-19, this
fiscal note assumes there are 38,560 evictions per year.
Number of qualifying individuals. According to monthly data produced by the federal government,
approximately 87,507 Coloradans receive Social Security Disability Insurance (SSDI) benefits per
month, which is 1.5 percent of the state’s population, and 66,926 Coloradans received Supplemental
Security Income, approximately 1 percent of the state’s population. According to the Department of
Human Services, 11,669 Coloradans received Colorado Works benefits in 2021.
This fiscal note assumes that some individuals qualify for multiple types of financial assistance as
covered under the bill, but the amount of overlap between the groups cannot be determined. This
fiscal note estimates that 2,912 individuals will qualify for mandatory mediation proceedings
annually, as a result of the bill. This estimate accounts for the overall number of evictions per year and
the percentage of Colorado’s population that account for these types of financial assistance, while
considering that those who are under eviction proceedings are more likely to receive financial
assistance from federal and state governments. Additionally, this estimate assumes that 25 percent of
evictions will involve landlords that are exempt from mandatory mediation because they manage five
or fewer properties, leaving a total of 2,184 impacted cases. Since the population affected by this policy
change is evictees, this fiscal note assumes all will be indigent.
State Expenditures
The bill increases state expenditures in the Office of Dispute Resolution in the Judicial Department by
$283,164 and 0.6 FTE in FY 2023-24 and $282,189 and 0.7 FTE in FY 2024-25, paid from the General
Fund. Expenditures are shown in Table 2 and detailed below. Page 3
April 12, 2023 HB 23-1120
Table 2
Expenditures Under HB 23-1120
FY 2023-24 FY 2024-25
Office of Dispute Resolution
Personal Services $46,211 $50,412
Operating Expenses $665 $665
Capital Outlay Costs $6,950 $280
State Subsidies for Indigent Mediation Fees $218,400 $218,400
Centrally Appropriated Costs
1
$10,938 $12,432
Total Costs $288,323 $282,189
Total FTE 0.6 FTE 0.7 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Office of Dispute Resolution. Starting in FY 2023-24, the ODR requires 0.7 FTE Program Analyst to
manage additional mediation scheduling. Standard operating and capital outlay costs are included,
and first-year costs are prorated for the General Fund pay date shift.
Mediation fees. The bill will increase General Fund expenditures by $218,400 per year to allow
indigent parties to pay a reduced mediation rate. The fiscal note assumes that all tenants will be
indigent, and that the state will be required to pay up to $50 per hour in each eviction proceeding case.
Cases are estimated to take two hours, on average.
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 upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
For FY 2023-24, the bill requires a General Fund appropriation of $272,226 to the Judicial Department,
and 0.6 FTE. Currently, the bill includes a General Fund appropriation of $228,546.
State and Local Government
Judicial Regulatory Agencies
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.