Page 1 April 17, 2023 HB 23-1254 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated April 5, 2023) Drafting Number: Prime Sponsors: LLS 23-0848 Rep. Brown; Mabrey Date: Bill Status: Fiscal Analyst: April 17, 2023 House Appropriations 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 may increase state revenue and expenditures beginning in FY 2023-24. Appropriation Summary: No appropriation is required. Fiscal Note Status: This revised fiscal note reflects the introduced bill, as amended by the House Transportation, Housing, and Local Government Committee. Summary of Legislation A landlord violates the warranty of habitability if any environmental contaminants are at unsafe levels following an environmental public health event, as determined by certain national standards. 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. A tenant may terminate the lease if they have notified the landlord of a habitability issue, the landlord fails to remediate the issue, and the landlord cannot provide adequate alternative housing during the remediation. State Revenue and Expenditures To the extent that habitability issues lead to disputes between landlords and tenants, state revenue and expenditures may increase in the Judicial Department as a result of increased civil case filings with the trial courts. The fiscal note assumes that the number of additional cases will be minimal and no change in appropriations is required. If an environmental public health event drives a significant number of cases, additional resources will be requested through the annual budget process. Filing fees are subject to TABOR. Page 2 April 17, 2023 HB 23-1254 Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. 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.