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April 26, 2023 SB 23-301
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0172
Sen. Bridges
Date:
Bill Status:
Fiscal Analyst:
April 26, 2023
Senate State Affairs
Kristine McLaughlin | 303-866-4776
kristine.mclaughlin@coleg.gov
Bill Topic: VOTING IN PRESIDENTIAL PRIMARY ELECTIONS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill establishes a ranked choice voting system for presidential primary elections
and makes additional changes. The bill increases state expenditures on an ongoing
basis.
Appropriation
Summary:
For FY 2023-24, the bill requires an appropriation of $40,000 to the Department of
State.
Fiscal Note
Status:
The fiscal note reflects the introduced bill. Due to time constraints, this analysis is
preliminary and will be updated following further review and any additional information
received.
Table 1
State Fiscal Impacts Under SB 23-301
Budget Year
FY 2023-24
Out Year
FY 2026-27
Out Year
FY 2027-28
Revenue Cash Funds $40,000 $1,075,000 $1,075,000
Expenditures Cash Funds $40,000 - $2,150,000
Transfers - - -
Other Budget Impacts TABOR Refund $40,000 not estimated not estimated
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April 26, 2023 SB 23-301
Summary of Legislation
The bill establishes a ranked choice voting system for presidential primary elections beginning in 2028.
The Department of State (DOS) will adopt rules to release results for each round of ballot counts and
certify and publicize the results.
The bill makes additional changes to presidential primary elections including:
requiring state committees to indicate to the Secretary of State if they intend to allocate delegates
by congressional districts or by another geographical basis,
repealing obsolete language allowing for the Secretary of State to adopt additional rules, and
making changes to ballot name order process as it concerns noncommitted delegates.
The bill also requires that for the 2024 presidential primary election, oversee and military absentee
voters be allowed to cast rank order voting for up to 5 candidates, including a write-in candidate, and
provides for votes to transfer to another candidate if higher ranked candidates withdrawal or die
before election day.
Background
Rank choice voting, or instant runoff voting (IRV), is a system that allows voters to rank candidates
by preference instead of choosing one candidate. Colorado counties currently use two voting systems;
62 counties use Dominion’s Democracy Suite and 2 counties use Clear Ballot’s ClearVote system.
Dominion’s system currently has the capability to add IRV to its software, while Clear Ballot’s
currently does not but may be obtained for an additional fee.
HB 21-1071 allowed municipal elections using instant runoff voting (IRV) to be conducted as a part of
a coordinated election. DOS established the rules, requirements, and specifications for a voting system
allowing IRV in non-presidential elections.
State Revenue
The bill increases fee revenue in the Department of State by $40,000 in FY 2023-24, and by $1.1 million
in both FY 2026-27, and FY 2027-28, to the Department of State Cash Fund, assuming the Department
of State adjusts their fees 6 months in advance to cover the estimated costs
Fee impact on businesses and professions. Colorado law requires legislative service agency review
of measures which create or increase any fee collected by a state agency. Under current law, the
Department of State (DOS) is authorized to adjust fees so that the revenue generated approximates its
direct and indirect costs. The DOS is primarily funded through business filing fees. To cover the costs
described in the State Expenditures section below, fees will need to be raised to cover all or some of
the costs of this bill. The fees affected and the actual amount of fee charges will be set administratively
by the DOS based on cash fund balance, total program costs, and the estimated number of business
activities subject to fees. This revenue is subject to TABOR.
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April 26, 2023 SB 23-301
State Expenditures
The bill increases state expenditures in the DOS by $40,000 in FY 2023-24, and $2,150,000 in FY 2027-28,
paid from the Department of State Cash Fund. Additional costs will also be incurred every four years
when presidential primaries occur. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under SB 23-301
FY 2023-24 FY 2024-25 FY 2027-28
Department of State
Presidential Primary Communications
Initiative
$40,000 - $2,000,000
Centralized Ranked-Choice Voting
Aggregation and Reporting System
Development (Hours)
- - $80,000
Statewide Software License - - $70,000
Total $40,000 - $2,150,000
Oversees and military absentee voters. DOS requires funds in FY 2023-24 to communicate voting
instructions to oversee and military absentee voters. Based on recent mail communications with
electors and allowing for international postage, the DOS will require an estimated $40,000 to send
proper communications to affected voters. Given the limited number of oversee and military absentee
voters subject to the change, primary voting results for these voters will be tabulated manually for the
2024 primary election, and no information technology system changes are required.
Presidential primary communications. In FY 2027-28, DOS will require funds to update all voter
communications, websites, mailings, etc., to communicate the specifics of ranked order voting with
voters. The department must also create a centralized ranked voting aggregation and reporting
system prior to the 2028 presidential primary.
System Changes. In FY 2027-28, DOS will have expenditures for system changes to tabulate results
based on the ranked-choice voting system, and for securing statewide software licensing from voting
system vendors.
Other Budget Impacts
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 for FY 2023-24. This estimate
assumes the March 2023 LCS revenue forecast. A forecast of state revenue subject to TABOR is not
available beyond FY 2024-25. For this reason, any TABOR impact as a result of new revenue in
FY 2026-27 or FY 2027-28 has not been estimated. 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.
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April 26, 2023 SB 23-301
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature;
requirements related to oversees and absentee voters apply as of the bill’s effective date. All other
provisions apply to presidential primaries on or after January 1, 2028.
State Appropriations
For FY 2023-24, the bill requires an appropriation of $40,000 to the Department of State from the
Department of State Cash Fund.
State and Local Government Contacts
Counties County Clerks Law
State
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.