Page 1 April 21, 2023 SB 23-270 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated April 10, 2023) Drafting Number: Prime Sponsors: LLS 23-0640 Sen. Roberts; Simpson Rep. McCormick; Catlin Date: Bill Status: Fiscal Analyst: April 21, 2023 House Agriculture Alexa Kelly | 303-866-3469 alexa.kelly@coleg.gov Bill Topic: PROJECTS TO RESTORE NATURAL STREAM SYSTEMS Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill creates a rebuttable presumption that a minor stream restoration project does not cause material injury to a vested water right, and outlines the qualification requirements for a minor stream restoration project. It increases state expenditures on an ongoing basis. Appropriation Summary: No appropriation is required. Fiscal Note Status: The revised fiscal note reflects the reengrossed bill. Summary of Legislation The bill creates a rebuttable presumption that a minor stream restoration project does not cause material injury to a vested water right. If a water right holder believes a stream restoration project has caused material injury to their water right, they may challenge this rebuttable presumption by presenting evidence of the material injury in the appropriate division water court. The bill defines a minor stream restoration activity as: stabilizing banks or substrate of a natural stream with materials that allow water to flow downstream, does not cause the stream to exceed the high water mark, and may increase stream’s surface area; mechanical grading of ground surface along a natural stream system without exposing groundwater, diverting surface water, or collecting storm water; stabilizing an ephemeral or intermittent stream by installing structures that may increase surface area or infiltration; daylighting a natural stream that had been piped or buried; reducing the surface area of a natural stream to address historical flows; and installing structures or reconstructing a channel in a stream system to recover from wildfire or flood impacts. Page 2 April 21, 2023 SB 23-270 State Expenditures Workload in the Department of Natural Resources will increase minimally to monitor any stream restoration activities. No change in appropriations is required. 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 Judicial Natural Resources 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.