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February 17, 2023 SB 23-148
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0496
Sen. Cutter
Date:
Bill Status:
Fiscal Analyst:
February 17, 2023
Senate Local Government
Clayton Mayfield | 303-866-5851
clayton.mayfield@coleg.gov
Bill Topic: ILLEGAL DRUG LABORATORY PROPERTY & CERTIFICATION
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the Colorado Department of Public Health and Environment to inspect
illegal drug laboratory properties to determine competency of certified individuals that
decontaminate such properties and to create a public database of buildings used as
illegal laboratories. Starting in FY 2023-24, state revenues and expenditures are
increased on an ongoing basis.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $497,212 to the Colorado
Department of Public Health and Environment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 23-148
Budget Year
FY 2023-24
Out Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds - $600,142 $542,131
Total Revenue - $600,142 $542,131
Expenditures General Fund $497,212 - -
Cash Funds - $488,996 $440,934
Centrally Appropriated $104,682 $111,146 $101,197
Total Expenditures $601,894 $600,142 $542,131
Total FTE 5.8 FTE 6.0 FTE 5.5 FTE
Transfers - - -
Other Budget Impacts General Fund Reserve $74,582 - -
TABOR Refund - $600,142 Not estimated Page 2
February 17, 2023 SB 23-148
Summary of Legislation
The bill requires the Colorado Department of Public Health and Environment (CDPHE) to inspect
decontaminated illegal drug laboratories for the purpose of determining the competency of certified
persons performing assessments and decontaminations of properties. The department must perform
at least one inspection of each certified entity at least once every three years and decertify individuals
whose lack of competent performance is willful and likely to be repeated. CDPHE is required to
establish a fee for such inspections. The department must also create a public online database of
buildings used as illegal methamphetamine drug laboratories. After five years, a properly
decontaminated building is removed from the database.
Background and Assumptions
Under current law, the CDPHE certifies individuals and business assessing and decontaminating
properties used as illegal drug laboratories to produce methamphetamines, and monitors
decontaminations through a reporting system. The most recent data from the CDPHE indicate a total
of about 675 certifications, composed of about 500 individuals and 175 businesses.
The fiscal note assumes 675 is the total population of inspections required by the bill. With required
inspections occurring once every three years, it is assumed that approximately 225 inspections must
occur each year.
State Revenue
The bill increases state revenue by $600,142 in FY 2024-25 and by $542,131 in FY 2025-26 to the Illegal
Drug Laboratory Cash Fund. The increase is to cover expenditures associated with the bill and will
impact individuals and businesses certified to assess or decontaminate illegal drug laboratories.
Fee impact on certified drug laboratory decontaminators. 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 CDPHE based on cash fund
balance, program costs, and the number of certifications subject to the fee. The fiscal note assumes fee
collections will begin in FY 2024-25, after the rulemaking process is complete, but the actual timeline
may vary from this estimate. Table 2 below identifies the fee impact of this bill.
Table 2
Fee Impact on Certified Drug Laboratory Decontaminators
Fiscal Year
Type of
Fee
Certification
Fee
Number
Affected
Total Fee
Impact
FY 2024-25 Inspection $889.10 675 $600,142
FY 2025-26 Inspection $803.16 675 $542,131
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February 17, 2023 SB 23-148
State Expenditures
The bill increases state expenditures in the CDPHE by $601,894 in FY 2023-24, $600,142 in FY 2024-25,
and $542,131 in FY 2025-26, paid from the General Fund the first year and the Illegal Drug Laboratory
Cash Fund in future years, as detailed in Table 3 and described below.
Table 3
Expenditures Under SB 23-148
FY 2023-24 FY 2024-25 FY 2025-26
Department of Public Health and Environment
Personal Services $435,482 $480,896 $433,509
Operating Expenses $8,370 $8,100 $7,425
Capital Outlay Costs $53,360 - -
Centrally Appropriated Costs
1
$104,682 $111,146 $101,197
Total $601,894 $600,142 $542,131
Total FTE 5.8 FTE 6.0 FTE 5.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Public Health and Environment. The CDPHE requires inspectors and support staff
to perform the inspections and create the online database required by the bill.
Staffing. The CDPHE requires 4.0 FTE Environmental Protection Specialists to review
documentation, perform site inspections, conduct sampling as necessary, document the findings, and
perform compliance evaluations and potential enforcement, where applicable; 1.0 FTE Program
Assistant will assist with rulemaking, manage the database, and provide inspector support; and 1.0
FTE Physical Sciences Researcher, assuming the bill requires inspections of illegal drug laboratories
outside those producing methamphetamines; and 1.5 FTE one-time to design, implement, and
maintain the public database required by the bill, and to update an existing database to track
inspections and certifications. Amounts are prorated for a September 1 start date and the General
Fund pay date shift in the first year, and include standard operating and capital outlay costs. Amounts
decrease in future years to reflect the shift from program implementation to maintenance.
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.
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February 17, 2023 SB 23-148
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.
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 2022 LCS revenue forecast. A forecast of state revenue subject to TABOR is not available
beyond FY 2024-25. 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.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State Appropriations
For FY 2023-24, the bill requires a General Fund appropriation of $497,212 to the Colorado Department
of Public Health and Environment, and 5.8 FTE.
State and Local Government Contacts
Judicial Law Local Affairs
Public Health and Environment 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.