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April 10, 2023 SB 23-266
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0996
Sen. Priola
Rep. Brown; Kipp
Date:
Bill Status:
Fiscal Analyst:
April 10, 2023
Senate Agriculture
Alexa Kelly | 303-866-3469
alexa.kelly@coleg.gov
Bill Topic: NEONIC PESTICIDES AS LIMITED -USE PESTICIDES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the Commissioner of Agriculture to adopt rules classifying
neonicotinoid pesticides as limited-use pesticide. The bill increases state expenditures
on an ongoing basis and may reduce state revenue.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $121,076 to the Department of
Agriculture.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 23-266
Budget Year
FY 2023-24
Out Year
FY 2024-25
Revenue - -
Expenditures Cash Funds $121,076 $170,342
Centrally Appropriated $21,429 $36,107
Total Expenditures $142,505 $206,449
Total FTE 1.2 FTE 2.0 FTE
Transfers - -
Other Budget Impacts - -
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April 10, 2023 SB 23-266
Summary of Legislation
The bill requires the Commissioner of Agriculture to adopt rules designating neonicotinoid pesticides
as limited-use pesticides on or before January 1, 2024. The rules must require that:
only licensed pesticide applicators may use neonicotinoid pesticides; and
only licensed pesticide dealers may sell neonicotinoid pesticides.
The rules must also exempt products containing neonicotinoid pesticides when they are used in the
following ways:
as pet care products;
as a veterinary product used by a licensed veterinarian in a licensed veterinary practice;
in indoor personal care products used for lice or bedbugs;
a product of agriculture;
for academic research; or
as a wood coating product.
Comparable Crime Analysis
Legislative Council Staff is required to include certain information in the fiscal note for any bill that
creates a new crime, changes the classification of an existing crime, or creates a new factual basis for
an existing crime. The following section outlines crimes that are comparable to the offense in this bill
and discusses assumptions on future rates of criminal convictions resulting from the bill.
Prior conviction data and assumptions. This bill creates a new factual basis for the existing offense
of violating the Pesticide Act by expanding the number of pesticides whose sale and use are restricted.
From FY 2019-20 to FY 2021-22, one individual has been convicted and sentenced for this offense.
Demographically, this person was a white male. Based on the limited number of convictions, the fiscal
note assumes that there will be minimal or no additional case filings or convictions for the new offense
under the bill. The impacts to state revenue and expenditures are not discussed further in this fiscal
note. Visit leg.colorado.gov/fiscalnotes for more information about criminal justice costs in fiscal
notes.
State Revenue
CDA data show that there are approximately 895 products currently registered with the department
where use would be restricted by the bill. Because these restrictions decrease demand for the product
and increase the administrative burden on retailers, some producers may decide to no longer register
products containing neonicotinoids. The lack of registration would result in a loss of cash fund
revenue to CDA of $205 per product, up to $183,475 if all products were no longer registered. The
exact change in revenue will vary based on how many products are registered. A significant loss of
revenue could result in CDA raising product registration fees. Product registration fee revenue is
subject to TABOR. Page 3
April 10, 2023 SB 23-266
State Expenditures
The bill increases state expenditures in CDA by $142,505 in FY 2023-24 and $206,449 in FY 2024-25 and
in future years from the Plant Health, Pest Control, and Environmental Protection Cash Fund. Costs
are outlined in Table 2 and discussed below.
Table 2
Expenditures Under SB 23-266
FY 2023-24 FY 2024-25
Department of Agriculture
Personal Services $87,659 $150,270
Operating Expenses $1,620 $2,700
Capital Outlay Costs $13,340 -
Travel Expenses $10,507 $15,172
Education & Outreach $5,750 -
Employee Training $2,200 $2,200
Centrally Appropriated Costs
1
$21,429 $36,107
Total $142,505 $206,449
Total FTE 1.2 FTE 2.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Agriculture. Costs for the CDA to implement the bill include staff and associated
costs to perform additional inspections and compliance management, as detailed below.
Inspections and compliance management. The CDA requires 1.0 FTE for inspectors to perform
neonicotinoid-related inspections to ensure proper sales and usage, and to conduct related
enforcement activity. Inspection time is calculated based on an assumption of two additional
hours per inspection for 500 inspections per year, with inspections often requiring more than one
inspector present. This staff also requires a vehicle and travel expenses. The CDA also requires
1.0 FTE compliance specialist to manage dealer and applicator violations, issue cease and desist
orders, and review active ingredients of new and renewed products. The compliance specialist
also investigates violation cases and aids in the rulemaking process. First-year costs are prorated
for a December 1, 2023, start date. Each staff requires initial and ongoing training expenditures.
Education and outreach. Costs in FY 2023-24 only include outreach materials informing
individuals of the new requirements.
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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April 10, 2023 SB 23-266
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 an appropriation of $121,076 to the Department of Agriculture from
the Plant Health, Pest Control, and Environmental Protection Cash Fund.
State and Local Government Contacts
Agriculture Law
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.