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April 24, 2024 HB 24-1030
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 6, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0247
Rep. Mabrey; Mauro
Sen. Cutter; Exum
Date:
Bill Status:
Fiscal Analyst:
April 24, 2024
Senate Transportation & Energy
Colin Gaiser | 303-866-2677
colin.gaiser@coleg.gov
Bill Topic: RAILROAD SAFETY REQUIREMENTS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill establishes new safety requirements on railroads operating in the state and
creates the Front Range Passenger Rail District Maintenance and Safety Fund. It
increases state and local government expenditures on an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $91,284 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill. The bill was recommended by
the Transportation Legislation Review Committee.
Table 1
State Fiscal Impacts Under HB 24-1030
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Revenue - - -
Expenditures General Fund $91,284 $145,441 $58,253
Centrally Appropriated $15,274 $28,430 $11,152
Total Expenditures $106,558 $173,871 $69,405
Total FTE 0.7 FTE 1.3 FTE 0.5 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $13,693 $21,816 $8,738
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April 24, 2024 HB 24-1030
Summary of Legislation
The bill establishes safety requirements on railroads operating trains in the state, as discussed
below.
Railroad safety measures. The bill specifies that, with certain exceptions for class II and III
railroads:
railroads are prohibited from operating trains greater than 8,500 feet in length;
on or before July 1, 2026, railroads are required to have an operational and properly
maintained wayside detector system, including a hot bearings detector and dragging
equipment detector installed at least every 10 miles, with certain terrain-based exceptions;
on or before January 1, 2025, and each year thereafter, railroads must submit a report to the
Public Utilities Commission (PUC) on installed wayside detector systems, hot bearings
detectors, and dragging equipment detectors;
railroads must stop a train after receiving a message from a wayside detector system. If an
inspection indicates the train is safe for movement, the train must travel no more than
10 miles per hour if the train is carrying a hazardous material or dangerous goods, and no
more than 30 miles per hour if the train is not carrying a hazardous material or dangerous
goods;
trains, freight cars, passenger cars, and railroad passenger engines may not obstruct a public
crossing for more than 10 minutes, unless they are continuously moving or circumstances
beyond the railroad’s control prevent them from moving. They must also minimize
obstruction of emergency vehicles at highway-rail crossings;
any crew member of a train may report to the crew member’s designated union
representative a safety violation, injury, or death that occurred during the operation of a
train. Upon receiving notice of a violation, the representative may enter a railroad’s place of
operation to investigate the report;
each railroad must conduct an oil or hazardous substance containment exercise each year
and at least one full-scale exercise every five years, in coordination with local emergency
management organizations and fire chiefs. The PUC must develop rules concerning training
content, safety drills, and railroad incident response requirements;
the PUC may impose a fine for a railroad’s denying a union representative access to a
railroad’s place of operation ranging from $10,000 to $25,000 for each day of a continuing
violation, and a fine of up to $100,000 for repeated and/or intentional violations related to
union activities; and
the PUC must develop guidelines for determining, imposing, and appealing fines.
Front Range Passenger Rail District Maintenance and Safety Fund. The bill creates the Front
Range Passenger Rail District Maintenance and Safety Fund, which will receive fines imposed by
the PUC for violations of this bill’s safety requirements. The money is continuously appropriated
to the state treasurer for the purpose of safety planning and development during the research,
development, and construction of a passenger rail system; maintaining a passenger rail system;
and completing capital development projects to improve the safety of a passenger rail system.
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April 24, 2024 HB 24-1030
Fire department training. The bill requires that by July 1, 2025, and at least once every
three years thereafter, railroads offer training to each fire department with jurisdiction along
railroad tracks. The training must address hazardous materials and emergency responder
strategies for railroad incidents involving hazardous materials.
Hazardous materials. The bill requires railroads that transport hazardous materials to maintain
adequate insurance and submit to the PUC a certificate of insurance or similar documentation
on or before January 1, 2025, and each year thereafter. By November 1, 2024, the PUC must
promulgate rules establishing minimum insurance coverage requirements for railroads
transporting hazardous materials. At least once a year, the PUC must also hold a public hearing
concerning the implementation of these rules. Railroads that violate these rules are subject to
fines of at least $1,000, but not exceeding $5,000, for each day of noncompliance.
Background
Railroads are largely regulated by the federal government and do not pay into the Fixed Utility
Fund which funds PUC operations. For more information about the PUC’s limited involvement in
railroad regulation, visit: https://puc.colorado.gov/rail.
State Revenue
The bill may increase fine revenue to the newly created Front Range Passenger Rail District
Maintenance and Safety Fund. The amount of fine revenue collected will depend on future
enforcement actions and cannot not been estimated. Fine revenue is subject to TABOR.
State Expenditures
The bill increases state expenditures in the PUC in the Department of Regulatory Agencies by
about $107,000 in FY 2024-25 and $174,000 in FY 2025-26, paid from the General Fund.
Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1030
FY 2024-25 FY 2025-26 FY 2026-27
Department of Regulatory Agencies
Personal Services $77,048 $143,777 $57,613
Operating Expenses $896 $1,664 $640
Capital Outlay Costs $13,340 - -
Centrally Appropriated Costs
1
$15,274 $28,430 $11,152
Total Cost $106,558 $173,871 $69,405
Total FTE 0.7 FTE 1.3 FTE 0.5 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 4
April 24, 2024 HB 24-1030
Department of Regulatory Agencies. The PUC requires 1.3 FTE professional engineering
staff to implement the bill (prorated to 0.7 FTE in the FY 2024-25) , and 0.5 FTE beginning in
FY 2026-27 after the wayside detector system requirement takes effect. The engineers will
review wayside detector reports; impose fines against railroads, officers, agents, or employees
for violating the bill’s requirements; determine proper levels of insurance coverage; review
certificates of insurance showing compliance; conduct stakeholding and develop rules and
requirements for railroad safety exercises and other required safety training content; and
conduct compliance audits. Expenditures assume a January 1, 2025, start date and include
standard operating and capital outlay costs.
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 Impact
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.
Local Government
The bill will increase workload for local fire departments and emergency management
organizations that participate in the training required by the bill.
Effective Date
The bill takes effect July 1, 2024. The bill includes a severability clause.
State Appropriations
For FY 2024-25, the bill requires a General Fund appropriation of $91,284 to the Department of
Regulatory Agencies, and 0.7 FTE.
The bill currently includes an appropriation of $11,651 to this agency, with 0.1 FTE.
State and Local Government Contacts
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: leg.colorado.gov/fiscalnotes.