Page 1 March 2, 2023 SB 23-150 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 23-0338 Sen. Roberts; Will Rep. Froelich; Frizell Date: Bill Status: Fiscal Analyst: March 2, 2023 Senate Business Shukria Maktabi | 303-866-4720 shukria.maktabi@coleg.gov Bill Topic: REQUIRE LABELING DISPOSABLE WIPES Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill requires the packaging of certain disposable wipes to be labeled with the phrase “Do Not Flush.” Noncompliance constitutes a deceptive trade practice subject to civil penalties. The bill may increase state revenue and expenditures beginning in FY 2023-24. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the introduced bill. Summary of Legislation Beginning December 31, 2023, manufacturers and sellers of pre-moistened, nonwoven disposable wipes must label their packages with the phrase “Do Not Flush.” The bill specifies labeling requirements and failure to comply constitutes a deceptive trade practice under the Colorado Consumer Protection Act. State Revenue The bill may increase state revenue from civil penalties and filing fees beginning in FY 2023-24. Civil penalties. Under the Colorado Consumer Protection Act, a person committing a deceptive trade practice may be subject to a civil penalty of up to $20,000 for each violation. Additional penalties may be imposed for subsequent violations of a court order or injunction. This revenue is classified as a damage award and not subject to TABOR. Given the uncertainty about the number of cases that may be pursued by the Attorney General and district attorneys, as well as the wide range in potential penalty amounts, the fiscal note cannot estimate the potential impact of these civil penalties. Page 2 March 2, 2023 SB 23-150 Filing fees. The bill may increase revenue to the Judicial Department from an increase in civil case filings. Revenue from filing fees is subject to TABOR. State Expenditures The bill may increase state expenditures by a minimal amount in the Department of Law and the Judicial Department beginning in FY 2023-24. Department of Law. Workload in the Department of Law will minimally increase to the extent that deceptive trade practice complaints are filed. The department will review complaints under the bill and prioritize investigations as necessary within the overall number of deceptive trade practice complaints and available resources. Judicial Department. The trial courts in the Judicial Department may have an increase in cases filed under the Colorado Consumer Protection Act from the addition of a new deceptive trade practice. It is assumed that entities will abide by the law and that any violation of the legislation will result in minimal number of new cases. The fiscal note assumes that this can be accomplished within existing resources and that no change in appropriations is required. Local Government Similar to the state, to the extent district attorneys receive deceptive trade practice complaints related to the new deceptive trade practice under the bill, workload will increase to investigate complaints and seek relief when appropriate. The fiscal note assumes most such cases will be handled at the state level by the Attorney General. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. State and Local Government Contacts Information Technology Judicial Law 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.