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February 1, 2024 HB 24-1051
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0240
Rep. Boesenecker; Mauro
Sen. Cutter; Priola
Date:
Bill Status:
Fiscal Analyst:
February 1, 2024
House Trans., Hous. & Local Govt.
Nina Forbes | 303-866-4785
nina.forbes@coleg.gov
Bill Topic: TOWING CARRIER REGULATION
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates new regulations for towing carriers, including requiring all towing
carriers to submit fingerprint background checks. It increases state revenue and
expenditures on an ongoing basis beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $388,037 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1051
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Motor Carrier Fund $339,750 $366,209
CBI Cash Fund $98,750 -
Total Revenue $438,500 $366,209
Expenditures Motor Carrier Fund $298,292 $315,402
CBI Cash Fund $89,745 -
Centrally Appropriated $50,777 $50,807
Total Expenditures $438,814 $366,209
Total FTE 3.2 FTE 3.2 FTE
Transfers - -
Other Budget Impacts TABOR Refund $410,375 $366,209
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February 1, 2024 HB 24-1051
Summary of Legislation
The bill creates new regulations for towing carriers as follows:
towing carrier drivers and operators must submit a fingerprint-based criminal background
check to the Public Utilities Commission (PUC);
the PUC must promulgate rules regarding towing carrier disclosures, and make aggregate
towing carrier financial statements publicly available;
the PUC is authorized to deny, suspend, revoke, or refuse towing carrier permits for certain
carrier violations;
towing carriers are prohibited from patrolling or monitoring a property to enforce parking
restrictions;
certain property owners are required to pay for the nonconsensual tow removal of a vehicle
from their property and the first 30 days of storage;
towing carriers are required to notify vehicle owners that they can retrieve their towed
vehicle free of charge for the first 30 days following the nonconsensual tow from private
property;
towing carriers shall return improperly towed vehicles to their original location within
48 hours of the nonconsensual, improper tow; and
members of the Towing Task Force must recuse themselves from a vote where the outcome
has a direct financial impact on the member.
Background
The PUC in the Department of Regulatory Agencies (DORA) is responsible for the oversight of
towing carriers operating within the state. It assesses fees on towing carriers which are credited
to the Motor Carrier Fund to cover the costs of the PUC’s regulatory duties. A 14-member
Towing Task Force provides recommendations and advice to the PUC and legislature on various
aspects related to the regulation of towing carriers. For more information on the regulation of
towing companies, see this Legislative Council Staff Issue Brief on Vehicle Towing and Booting
or the Public Utilities Commission Towing website.
State Revenue
The bill increases state cash fund revenue by $438,500 in FY 2024-25, and $366,209 in
FY 2025-26, and ongoing from the Motor Carrier Fund in the PUC and the Colorado Bureau of
Investigation (CBI) Identification Unit Cash Fund in the Department of Public Safety (CDPS).
Fee impact on towing carriers and employees. Colorado law requires legislative service
agency review of measures which create or increase any fee collected by a state agency. The bill
increases permitting fees on towing carriers and background check fees on towing carriers and
drivers, as outlined below.
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February 1, 2024 HB 24-1051
Permit fees – DORA. The PUC will collect an estimated $340,000 in FY 2024-25 and
$370,000 in FY 2025-26 and ongoing in additional permit fees to cover the costs of its
regulatory work under the bill. As shown in Table 2, the fiscal note estimates this fee increase
will range from $453 to $488 per carrier. This fee amount is an estimate only, actual fees will
be set administratively by DORA based on cash fund balance, program costs, and the
number of carriers subject to the fee.
Fingerprint-based background checks – CDPS. The CDPS will collect an estimated
$100,000 in FY 2024-25 only, assuming 2,500 fingerprint background checks will be
conducted that year. In subsequent years, the overall revenue impact is expected to be
minimal. The current fee for background checks is $39.50, which includes $11.25 for a
Federal Bureau of Investigation (FBI) fingerprint-based check, which is passed on to that
federal agency. The federal portion of this fee is excluded from the state TABOR limit,
meaning $70,625 of this total is subject to TABOR.
Table 2
Fee Impact on Towing Carriers
Fiscal Year Type of Fee
Fee
Number
Affected
Total Fee
Impact
FY 2024-25 Towing Permit Fee Increase $453 750 $339,750
CBI Background Check Fee $39.50 2,500 $98,750
FY 2024-25 Total $438,500
FY 2025-26 Towing Permit Fee Increase $488 750 $366,209
FY 2025-26 Total $366,209
State Expenditures
The bill increases state expenditures from the Motor Carrier Fund in the PUC by about $298,000
in FY 2024-25 and $315,000 in FY 2025-26. The bill also increases state expenditures from the
CBI Identification Unit Cash Fund by about $100,000 in FY 2024-25 only. Expenditures are shown
in Table 3 and detailed below.
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February 1, 2024 HB 24-1051
Table 3
Expenditures Under HB 24-1051
FY 2024-25 FY 2025-26
Public Utilities Commission (DORA)
Personal Services $160,248 $196,728
Operating Expenses $2,816 $3,456
Capital Outlay Costs $20,010 _
Legal Services $115,218 $115,218
Centrally Appropriated Costs
1
$41,393 $50,807
FTE – Personal Services 2.2 FTE 2.7 FTE
FTE – Legal Services 0.5 FTE 0.5 FTE
DORA Subtotal $339,685 $366,209
Department of Public Safety
Personal Services $29,410 -
Operating Expenses $640 -
Capital Outlay Costs $6,670 -
Training $2,000 -
FBI Pass-Through Fee $28,125 -
Processing Costs $22,900 -
Centrally Appropriated Costs
1
$9,384 -
FTE – Personal Services 0.5 FTE -
CDPS Subtotal $99,129 -
Total Cost $438,814 $366,209
Total FTE 3.2 FTE 3.2 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Assumptions. There are approximately 750 active towing permits in the state at any given time,
and the PUC receives and processes over 1,000 towing applications each year. The fiscal note
estimates that there are approximately 2,500 towing drivers or operators who will be subject to
the new fingerprint background check requirements under the bill, which will be reviewed by
PUC staff. The bill requires the PUC to ensure submission, review, and aggregation of audited
financial records, and make records publicly available. The bill also requires that the PUC
determine if there is good cause to deny, suspend, or revoke any towing permits and allows the
commission to proactively suspend or revoke towing permits, which is anticipated to increase
the number of enforcement actions taken by the PUC. Page 5
February 1, 2024 HB 24-1051
Public Utilities Commission. Based on the assumptions outlined above, the PUC requires staff
and legal services to implement the bill.
Staff. PUC requires 2.7 FTE to implement the bill, including program, analyst, and
investigative staff. The 1.0 FTE Program Assistant will manage the fingerprint background
check submissions and other information received as part of the application process,
assuming 15 minutes to process each fingerprint record and 1 hour to review additional
permit application information from an estimated 1,050 applications. The 1.0 FTE
Rate/Financial Analyst IV will receive, process, review, analyze, aggregate, and make publicly
available audited financial data from towing carriers. This assumes the 1,050 applications per
year take two hours each to process. Finally, the 0.7 FTE Criminal Investigator will investigate
criminal histories of towing carrier applicants, enforce prohibition on towing carriers
patrolling or monitoring private properties, monitor compliance with returning improperly
towed vehicles, and investigate violations. First-year costs are prorated for the bill’s effective
date and standard operating and capital outlay costs are included.
Legal services. The bill’s expansion of the PUC’s authority to restrict permit issuance and
enforce restrictions on parking lot monitoring and nonconsensual tows is expected to create
new administrative review and appeals, as well as avenues for litigation. It is estimated that
the Department of Law will provide at least 900 hours annually to provide counsel and
representation to the PUC in these matters, resulting in costs of $115,218 per year. The
Department of Law requires reappropriated funds and 0.5 FTE for this work.
Rulemaking. The PUC is also expected to hold rulemaking events under the bill, which can
be accomplished within the normal course of business.
Department of Public Safety. The bill increases CBI Identification Unit costs in FY 2024-25 only
to manage the initial increase in background check applications. In subsequent years, the
additional workload and cost is expected to moderate and can be accomplished within existing
appropriations.
Staffing. For FY 2024-25 only, CDPS requires 0.3 FTE Fingerprint Examiner and 0.2 FTE Data
Specialist to process an estimated 2,500 fingerprint background applications from towing
drivers and operators. A Fingerprint Examiner II can process 8,250 requests per year, and a
Data Specialist 16,500. Training costs for these staff are included.
FBI pass-through. The CDPS passes $11.25 of every application on to the federal
government. With 2,500 applications, this equates to $28,125 in FY 2024-25.
Processing costs. There are the following costs associated with each background check
application: $6.10 dedicated to equipment maintenance; $1.55 for print digitization; $0.88 to
access the Colorado Crime Information Center for information pertinent to the background
check; and $0.63 printing and postage costs.
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February 1, 2024 HB 24-1051
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 3.
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 acts committed on or after that date.
State Appropriations
For FY 2024-25, the bill requires the following appropriations:
$298,292 to the Public Utilities Commission from the Motor Carriers Fund, and 2.2 FTE, of
which $115,218 is reappropriated to the Department of Law, with an additional 0.5 FTE; and
$89,745 to the Department of Public Safety from the Colorado Bureau of Investigation
Identification Unit Cash Fund, and 0.5 FTE.
State and Local Government Contacts
Information Technology Law Public Safety
Regulatory Agencies Revenue
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.