Page 1 July 25, 2023 SB 23-028 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 23-0651 Sen. Gonzales Rep. Epps; Soper Date: Bill Status: Fiscal Analyst: July 25, 2023 Signed into Law Colin Gaiser | 303-866-2677 colin.gaiser@coleg.gov Bill Topic: PENALTY FOR COMMERCIAL VEHICLE OFFENSES Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill clarifies the penalty for certain offenses involving the operation of a commercial vehicle. The bill increases state and local revenue and creates one-time state expenditures in FY 2023-24. Appropriation Summary: No appropriation is required. Fiscal Note Status: This fiscal note reflects the enacted bill. Summary of Legislation This bill clarifies the penalty for class A traffic infractions involving the operation of a commercial vehicle that were modified under Senate Bill 21-271. Specifically, the bill removes the possibly of imprisonment in a county jail and makes the penalty a $100 fine with a $15 surcharge payable to the Department of Revenue. Background SB 21-271 reclassified various crimes, created a new “civil infraction” classification, and modified punishments for class 1 and 2 misdemeanors, petty offenses, and civil infractions. In that bill, offenses involving the operation of a commercial vehicle were reduced from a misdemeanor to a class A traffic infraction; however, the punishment for the misdemeanor offense was retained in statute. This bill corrects this issue. Page 2 July 25, 2023 SB 23-028 State Revenue Starting in FY 2023-24, the bill will minimally impact state traffic fine revenue. First, revenue to the Department of Revenue will increase and revenue to the courts will decrease as more people pay their penalty assessment to the DOR instead of the courts. In addition, to the extent individuals were being fined more than $100, revenue will decrease and to the extent individuals were fined less than $100, revenue will increase. At this time, it is unknown what the average fine for this penalty is under current law. Traffic fines are deposited to the Highway Users Trust Fund (HUTF) and are distributed to CDOT (65 percent), counties (26 percent), and municipalities (9 percent), while other criminal surcharges and court fees are distributed to various cash funds in the Judicial Department. In addition, the DOR retains 50 cents per penalty assessed. Fines and fees are subject to the state’s TABOR limit. State Expenditures In FY 2023-24 only, the DOR will need to update its Driver License, Record, Identification, and Vehicle Enterprise Solutions (DRIVES) system to update the common code penalty assessment for commercial vehicle offenses. Programming costs assume 8 hours at a rate of $225 for a cost of $1,800. Office of Information Technology (OIT) support requirements are estimated at 3 hours at a rate of $99 per hour, totaling $297. These costs are absorbable and no change in appropriations is required. Local Government Similar to the state, to the extent traffic fine collection amounts change as a result of the bill, revenue to local governments will change. Any impact is expected to be minimal. Technical Note Per the bill’s safety clause, the bill is effective upon the Governor’s signature. However, the required DRIVES programming cannot be completed by the effective date of the bill. The fiscal note assumes DOR will not be able to process the infractions under the new DRIVES system until October 1, 2023. Effective Date This bill was signed into law by the Governor and took effect on June 6, 2023. State and Local Government Contacts District Attorneys Information Technology Judicial Public Safety Revenue 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.