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March 20, 2023 SB 23-164
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0318
Sen. Gonzales; Gardner
Rep. Bacon; Weissman
Date:
Bill Status:
Fiscal Analyst:
March 20, 2023
Senate Judiciary
Aaron Carpenter | 303-866-4918
aaron.carpenter@coleg.gov
Bill Topic: SUNSET PROCESS SEX OFFENDER MANAGEMENT BOARD
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Sunset Bill. This bill continues the Sex Offender Management Board in the
Department of Public Safety, which is scheduled to repeal on September 1, 2023.
State fiscal impacts include both increased expenditures from changes to the program
under the bill, as well as the continuation of the program's current revenue and
expenditures. The program is continued through September 1, 2030.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $548,009 to multiple state
agencies.
Fiscal Note Status: The fiscal note reflects the introduced bill.
Table 1. State Fiscal Impacts Under SB 23-164
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New Impacts
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue
- -
Expenditures General Fund $548,009 $579,692
New FTE 2.0 FTE 2.5 FTE
Other Budget Impacts General Fund Reserve $82,201 $86,954
Continuing Impacts
Revenue Cash Funds - $19,862
Expenditures General Fund - $470,048
Cash Funds - $175,808
Continuing FTE - 6.9 FTE
Other Budget Impacts TABOR Refund - $19,862
General Fund Reserve - $70,507
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Table 1 shows the new impacts resulting from changes to the program under the bill and the continuing impacts
from extending the program beyond its current repeal date. The continuing program impacts will end if the bill is
not passed and the program is allowed to repeal. Due to space limitation, centrally appropriated expenditures are
excluded from Table 1, and instead listed in Table 2 in the State Expenditures section below. Page 2
March 20, 2023 SB 23-164
Summary of Legislation
The bill continues the Sex Offender Management Board (SOMB) in the Department of Public Safety
(DPS) for 7 years, from September 1, 2023 to September 1, 2030. In addition, the bill also makes the
following changes to the SOMB:
requires the SOMB to perform a compliance review of at least 10 percent of treatment providers
every two years;
requires the Division of Criminal Justice in the DPS to work with a third party vendor to take and
forward fingerprints for service provider applications;
requires supervising officers to follow the guidelines and standards development by the SOMB;
and
requires agencies supervising sex offenders to provide offenders with the complete list of
treatment providers.
Background
The SOMB is a 25-member board within the DPS that develops standards and guidelines to oversee
adult and juvenile sex offenders and approves the treatment providers, evaluations, clinical
supervisors and polygraph examiners. The full sunset report can be found here.
The SOMB is funded through the General Fund, the Sex Offender Surcharge Fund, and the Sex
Offender Treatment Provider Fund. The Sex Offender Surcharge Fund contains money from
surcharges paid by individuals who are convicted of a sex offense. Surcharge amounts are established
in statute and therefore, revenue to the fund is not impacted by the sunset of the SOMB.
The Sex Offender Treatment Provider Fund contains money from application fees paid by approved
providers. Providers must renew their application every three years. Statute caps the application fee
at $125, which is the current application fee.
Continuing Program Impacts
According to the DPS, the SOMB is expected to have revenue of $19,862 in provider application fees
and expenditures of $645,856. If this bill is enacted, current revenue and expenditures will continue
for the program starting in FY 2024-25. This continuing revenue is subject to the state TABOR limits.
If this bill is not enacted, the program will end on September 1, 2023, followed by a wind-down period,
and state revenue and expenditures will decrease starting in FY 2024-25 by the amounts shown in
Table 1. The changes to the program that drive additional revenue and costs are discussed in the State
Revenue and State Expenditures sections below.
State Expenditures
Beyond the continuation of the program, changes in the bill will increase state General Fund
expenditures in by $584,169 in FY 2023-24 and $626,070 in FY 2024-25 in the DPS, Judicial Department,
and the Department of Human Services (DHS). Expenditures are shown in Table 2 and detailed
below. Page 3
March 20, 2023 SB 23-164
Table 2
Expenditures Under SB 23-164
FY 2023-24 FY 2024-25
Department of Public Safety
Personal Services $121,015 $161,352
Operating Expenses $2,160 $2,700
Capital Outlay Costs $13,340 -
Centrally Appropriated Costs
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$28,960 $37,146
FTE – Personal Services 1.6 FTE 2.0 FTE
DPS. Subtotal $165,475 $201,198
Judicial Department
Personal Services $29,824 $39,765
Operating Expenses - $475
Capital Outlay Costs $6,670 $400
Centrally Appropriated Costs
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$7,200 $9,232
FTE – Personal Services 0.4 FTE 0.5 FTE
Judicial Subtotal $43,694 $49,872
Department of Human Services
Contractor $375,000 $375,000
DHS Subtotal $375,000 $375,000
Total Costs $584,169 $626,070
Total FTE 2.0 FTE 2.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Public Safety. Starting in FY 2023-24, the DPS will require 2.0 FTE to review 10 percent
of approved providers every two years. This includes 1.0 FTE to collect required compliance review
information and to analyze results, and 1.0 FTE to work with providers after the review to ensure
providers implement required corrective actions and to provide technical assistance. Costs in
FY 2023-24 are prorated for the General Fund paydate shift and a September 1 start date.
Judicial Department. Starting in FY 2023-24, the Division of Probation within the Judicial Department
will require 0.5 FTE to assist probation officers when offenders enroll with providers outside of the
referring district, manage any additional contracts, train probation staff on the responsibility to
provide the full list, and to collaborate with the SOMB to develop or modify current supervising
standards. Costs in FY 2023-24, are prorated for a September 1 start date and the General Fund
paydate shift.
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March 20, 2023 SB 23-164
Department of Human Services. Starting in FY 2023-24, expenditures in the DHS will increase by
$375,000. Currently, a DHS contractor oversees 93 approved providers for youth within the Division
of Youth Services and delivers vendor management for the various service providers including
screening and vetting providers, referral services, and billing. The fiscal note assumes that the number
of providers currently overseen by the contractor will double due to the requirement that youth
receive a full list of providers, increasing the cost of the contract by $375,000.
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 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 total appropriation of $548,009 from the General Fund of which:
$136,515 to the Department of Public Safety with 1.6 FTE;
$36,494 to the Judicial Department with 0.4 FTE; and
$375,000 to the Department of Human Services.
State and Local Government Contacts
Corrections District Attorneys Human Services
Information Technology Judicial Public Safety
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.