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January 30, 2024 HB 24-1004
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0445
Rep. Bacon; Bird
Sen. Coleman
Date:
Bill Status:
Fiscal Analyst:
January 30, 2024
House Business Affairs & Labor
Clayton Mayfield | 303-866-5851
clayton.mayfield@coleg.gov
Bill Topic: EX-OFFENDERS PRACTICE IN REGULATED OCCUPATIONS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill establishes a uniform process for the consideration of criminal records in
occupational licensure applications. Starting in FY 2024-25, the bill increases state
revenue and expenditures on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $133,216 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1004
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds $170,000 $170,000
Total Revenue $170,000 $170,000
Expenditures Cash Funds $133,216 $141,791
Centrally Appropriated $21,903 $27,492
Total Expenditures $155,118 $169,283
Total FTE 1.4 FTE 1.7 FTE
Transfers - -
Other Budget Impacts TABOR Impact $170,000 $170,000
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January 30, 2024 HB 24-1004
Summary of Legislation
The bill establishes a uniform process for the consideration of criminal records in occupational
registration, certification, and licensure applications to professional regulators in the Department
of Regulatory Agencies (DORA). Regulators are prohibited from automatically refusing to grant
or renew a license based on an applicant’s criminal record, and instead must consider each
individual applicant’s criminal record and present circumstances. Regulators in DORA are also
prohibited from using vague terms related to morals or character as a standard when
considering and making decisions on applications.
Process for considering criminal offenses. DOR may only consider criminal offenses if the
applicant is convicted of:
criminal sexual acts;
criminal fraud or embezzlement;
aggravated assault;
aggravated abuse, neglect, or endangerment of a child or at-risk person;
arson;
carjacking;
kidnapping; and
manslaughter, homicide, or murder.
For offenses not in this list, regulators may not consider the conviction for three years from the
date of conviction, end of incarceration, or end or parole period, whichever date is later, unless
the applicant is convicted of another criminal offense in that period. After three years, regulators
must consider an applicant with a criminal record in the same manner as an applicant without
one, unless there are additional convictions.
Any ambiguity in consideration of criminal records must be resolved in favor of applicants, and
regulators have the burden of proof to show denials are directly connected to information in a
criminal record that would affect an applicant’s potential performance in a profession.
Pre-application determination. Applicants with a criminal record may petition regulators for a
pre-application determination of whether their criminal record would disqualify them from a
license. Petitions must include certain information about criminal records, and responses from
regulators must advise petitioners of any remedies for disqualification. Initial determinations do
not prohibit regulators from a new determination at the time of application.
State Revenue
The bill increases state revenue to the Division of Professions and Occupations Cash Fund in
DORA by about $170,000 each year starting in FY 2024-25. This revenue is from increased fees
on regulated professions to cover the estimated costs of this bill. It is assumed that half of this
revenue is from fees charged to new professional applicants, and half of revenue is from fees
charged to currently licensed professionals regulated by DORA. The exact amount of revenue
may vary year-to-year based on the timing of renewals and new applications. Page 3
January 30, 2024 HB 24-1004
Fee impact on regulated professions. Colorado law requires legislative service agency review
of measures which create or increase any fee collected by a state agency. These fee amounts are
estimates only, actual fees will be set administratively by DORA based on cash fund balance,
program costs, and the number of licensed individuals or applicants subject to the fee. The table
below identifies the fee impact of this bill.
Table 2
Fee Impact on Regulated Professions
Fiscal Year Population
Proposed
Fee Total Fee Impact
FY 2024-25 Existing Professionals $0.30 $85,000
New Applicants $2.90 $85,000
FY 2024-25 Total $170,000
FY 2025-26 Existing Professionals $0.30 $85,000
New Applicants $2.90 $85,000
FY 2025-26 Total $170,000
State Expenditures
The bill increases state expenditures in DORA by about $155,000 in FY 2024-25, and by about
$170,000 beginning in FY 2025-26, paid from the Divisions of Professions and Occupations Cash
Fund. Expenditures are detailed in Table 2 below.
Table 3
Expenditures Under HB 24-1004
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $80,203 $101,465
Operating Expenses $1,536 $1,920
Capital Outlay Costs $6,670 -
Legal Services $44,807 $38,406
Centrally Appropriated Costs
1
$21,903 $27,492
FTE – Personal Services 1.2 FTE 1.5 FTE
FTE – Legal Services 0.2 FTE 0.2 FTE
Total Cost $155,118 $169,283
Total FTE 1.4 FTE 1.7 FTE
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January 30, 2024 HB 24-1004
DORA. DORA requires 1.5 FTE to process pre-application determination of criminal record
petitions, of which 1.1 FTE is a technician responsible for intake of petitions, follow-up with
applicants, preparation of materials for regulator review, and final correspondence to applicants.
The remaining 0.4 FTE is program management staff who will review the final correspondence to
applicants. These staffing amounts are based on an assumption that approximately 3,000
professional applicants will have a criminal record and submit a petition. The staff costs in
FY 2024-25 are prorated for a September 1, 2024 start date, and include standard operating
costs.
Legal services. DORA will require 300 hours of legal services each year for applicant appeals
starting in FY 2024-25, assuming one license denial per year will be appealed and need to be
litigated. In FY 2024-25 only, an additional 50 hours is also needed for rulemaking. Legal services
are provided by the Department of Law at a rate of $128.02 per hour.
Department of Personnel and Administration. The Office of Administrative Courts in the
Department of Personnel and Administration (DPA) may have an increase in referred cases
based on licensure denials. Any increase is expected to be minimal, and any change will be
accounted for through the annual budget process.
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
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. This estimate
assumes the December 2023 LCS revenue forecast. A forecast of state revenue subject to TABOR
is not available beyond FY 2025-26. 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.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, and applies to licensure applications on or after this date.
State Appropriations
For FY 2024-25, the bill requires an appropriation of $133,216 from the Division of Professions
and Occupations Cash Fund to the Department of Regulatory Agencies, and 1.2 FTE. Of this
amount, $44,807 is reappropriated to the Department of Law, with an additional 0.2 FTE.
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January 30, 2024 HB 24-1004
State and Local Government Contacts
Corrections Judicial Law
Personnel Regulatory Agencies
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 the General Assembly website.