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April 5, 2023 HB 23-1254
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0848
Rep. Brown; Mabrey
Date:
Bill Status:
Fiscal Analyst:
April 5, 2023
House Trans. & Local Govt.
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: HABITABILITY OF RESIDENTIAL PREMISES
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates habitability standards for rental units following environmental events.
It increases state expenditures beginning in FY 2023-24.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $10.4 million to the Department
of Public Health and Environment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. This fiscal note is preliminary and will be
updated following further review and any additional information received.
Table 1
State Fiscal Impacts Under HB 23-1254
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures General Fund $10,400,747 $729,217
Centrally Appropriated $71,589 $147,016
Total Expenditures $10,472,336 $876,333
Total FTE 4.0 FTE 8.1 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $1,560,112 $109,398
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April 5, 2023 HB 23-1254
Summary of Legislation
A landlord violates the warranty of habitability if any environmental contaminants are at unsafe
levels, as determined by an industrial hygienist. The bill updates the methods a tenant may use to
notify their landlord of an unsafe condition and requires the landlord to remediate any habitability
issues. If a habitability issue is caused by a natural or environmental event, the landlord must provide
testing by an industrial hygienist at the tenant’s request. A tenant may cancel the lease if they have
notified the landlord of a habitability issue, the landlord fails to remediate the issue or provide
adequate alternative housing during the remediation, and the tenant obtains a doctor’s opinion that
the issue materially affects the tenant’s life, health, or safety.
The Department of Public Health and Environment (CDPHE) must adopt rules establishing health
and safety standards for residential habitability by January 1, 2026.
State Expenditures
The bill increases state expenditures in CDPHE by $10.5 million in FY 2023-24 and $0.9 million in
FY 2024-25 and future fiscal years, paid from the General Fund. Expenditures are shown in Table 2
and detailed below.
Table 2
Expenditures Under HB 23-1254
FY 2023-24 FY 2024-25
Department of Public Health and Environment
Personal Services $317,326 $640,361
Operating Expenses $5,400 $10,935
Capital Outlay Costs $26,680 $26,680
Contractor $10,000,000 -
Legal Services $42,296 $42,296
Stakeholder Meetings $9,045 $9,045
Centrally Appropriated Costs
1
$71,589 $147,016
FTE – Personal Services 3.8 FTE 7.9 FTE
FTE – Legal Services 0.2 FTE 0.2 FTE
Total Cost $10,472,336 $876,333
Total FTE 4.0 FTE 8.1 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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April 5, 2023 HB 23-1254
Department of Public Health and Environment. CDPHE’s expenditures increase to engage with
stakeholders, establish safety standards, and adopt rules, as described below.
Staff. CDPHE requires 4.0 FTE in FY 2023-24, increasing to 8.1 FTE in FY 2024-25, to engage with
stakeholders, develop health and safety standards for various environmental contaminants, and
adopt rules for industrial hygienists. Standard operating and capital outlay costs are included,
and costs account for the General Fund pay date shift.
Contractor. CDPHE requires contracting services to provide technical expertise to its divisions in
establishing health and safety standards on an expedited timeline. This includes establishing
baseline standards for homes, identifying contaminants, identifying exposure limits for certain
at-risk individuals, and developing thresholds for environmental events for which no equivalent
standards currently exist in this or other states. Contractor costs are calculated at $250 per hour
for 10,000 hours in FY 2023-24.
Legal services. CDPHE requires 400 hours of legal services annually for rulemaking and general
counsel across multiple divisions. Legal services are provided by the Department of Law at a rate
of $105.74 per hour.
Stakeholder meetings. Expenditures, including travel and meeting-related costs, increase to
engage with stakeholders as part of the rulemaking 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.
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. Based on this fiscal note, the
bill is expected to increase the amount of General Fund held in reserve by the amounts shown in
Table 1, decreasing the amount of General Fund available for other purposes.
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 $10,400,747 to the Department of
Public Health and Environment, and 3.8 FTE. Of this amount, $42,296 is reappropriated to the
Department of Law, with an additional 0.2 FTE.
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April 5, 2023 HB 23-1254
State and Local Government Contacts
Information Technology Judicial Law
Local Affairs Public Health and Environment
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.