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April 16, 2024 HB 24-1051
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 12, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0240
Rep. Boesenecker; Mauro
Sen. Cutter; Priola
Date:
Bill Status:
Fiscal Analyst:
April 16, 2024
House Appropriations
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. It increases state revenue and
expenditures, and may increase local workload, on an ongoing basis beginning in
FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $165,629 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the House
Transportation, Housing, and Local Government Committee and the House Finance
Committee.
Table 1
State Fiscal Impacts Under HB 24-1051
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Motor Carrier Fund $176,849 $179,339
Total Revenue $176,849 $179,339
Expenditures Motor Carrier Fund $165,629 $166,249
Centrally Appropriated $11,220 $13,090
Total Expenditures $176,849 $179,339
Total FTE 1.1 FTE 1.2 FTE
Transfers - -
Other Budget Impacts TABOR Refund $176,849 $179,339
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April 16, 2024 HB 24-1051
Summary of Legislation
The bill creates new regulations for towing carriers as follows:
the Public Utilities Commission (PUC) must promulgate rules by September 1, 2025,
regarding towing carrier disclosures;
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;
towing carriers must receive documented permission via a PUC form signed by the owner,
leaseholder, or employee of the property for each individual tow of a vehicle from private
property within 24 hours of the tow, except that the signer of the form may not have a
financial interest in the nonconsensual tow—these forms must be retained for three years by
the towing carrier;
towing carriers shall return improperly towed vehicles to their original location within
48 hours of the improper tow;
members of the Towing Task Force must recuse themselves from a vote where the outcome
has a direct financial impact on the member or the task force is advising the PUC regarding a
complaint that the member is the subject of or has a financial interest in; and
a towing carrier conducting a nonconsensual tow in violation of these requirements is
considered a deceptive trade practice.
Finally, the bill moves the repeal date for the PUC’s regulation of towing carriers from
September 1, 2025, to September 1, 2030.
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 about $177,000 in FY 2024-25, and $179,000 in
FY 2025-26 and ongoing to the Motor Carrier Fund in the PUC. In addition, it may increase
revenue from civil penalties and filing fees.
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April 16, 2024 HB 24-1051
Fee impact on towing carriers. 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 to cover the costs of its regulatory work under the bill. As
shown in Table 2, the fiscal note estimates this fee increase will be about $240 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.
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 $236 750 $176,849
FY 2025-26 Towing Permit Fee Increase $239 750 $179,339
Civil penalties. Under the Colorado Consumer Protection Act, a person committing a deceptive
trade practice may be subject to a civil penalty of up to $20,000 for each violation. Additional
penalties may be imposed for subsequent violations of a court order or injunction. This revenue
is classified as a damage award and not subject to TABOR. Given the uncertainty about the
number of cases that may be pursued by the Attorney General and district attorneys, as well as
the wide range in potential penalty amounts, the fiscal note cannot estimate the potential
impact of these civil penalties.
Filing fees. The bill may increase revenue to the Judicial Department from an increase in civil
case filings. Revenue from filing fees is subject to TABOR.
State Expenditures
The bill increases state expenditures from the Motor Carrier Fund in the PUC by about $177,000
in FY 2024-25 and $179,000 in FY 2025-26. The bill may increase workload for the Department
of Law and the Judicial Department. Expenditures are shown in Table 3 and detailed below.
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April 16, 2024 HB 24-1051
Table 3
Expenditures Under HB 24-1051
FY 2024-25 FY 2025-26
Public Utilities Commission (DORA)
Personal Services $42,973 $50,135
Operating Expenses $768 $896
Capital Outlay Costs $6,670 _
Legal Services $115,218 $115,218
Centrally Appropriated Costs
1
$11,220 $13,090
FTE – Personal Services 0.6 FTE 0.7 FTE
FTE – Legal Services 0.5 FTE 0.5 FTE
Total Cost $176,849 $179,339
Total FTE 1.1 FTE 1.2 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 bill 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.
Public Utilities Commission. Based on the assumptions outlined above, the PUC requires staff
and legal services to implement the bill.
Staff. PUC requires 0.7 FTE investigative staff to 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.
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April 16, 2024 HB 24-1051
Department of Law. Workload in the Department of Law will minimally increase to the extent
that deceptive trade practice complaints are filed. The department will review complaints under
the bill and prioritize investigations as necessary within the overall number of deceptive trade
practice complaints and available resources.
Judicial Department. The trial courts in the Judicial Department may have an increase in cases
filed under the Colorado Consumer Protection Act from the addition of a new deceptive trade
practice. It is assumed that online marketplaces will abide by the law and that any violation of
the legislation will result in minimal number of new cases. The fiscal note assumes that this can
be accomplished within existing resources and that no change in appropriations is required.
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.
Local Government
Similar to the state, to the extent district attorneys receive deceptive trade practice complaints
related to the new deceptive trade practice under the bill, workload will increase to investigate
complaints and seek relief when appropriate. It is assumed most such cases will be handled at
the state level by the Attorney General.
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 an appropriation of $165,629 to the Public Utilities Commission
from the Motor Carrier Fund, and 0.6 FTE, of which $115,218 is reappropriated to the
Department of Law, with an additional 0.5 FTE.
State and Local Government Contacts
Regulatory Agencies Law Public Safety
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.