Page 1 February 8, 2024 HB 24-1136 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0695 Rep. Pugliese; Amabile Sen. Cutter; Smallwood Date: Bill Status: Fiscal Analyst: February 14, 2024 House Education Anna Gerstle | 303-866-4375 anna.gerstle@coleg.gov Bill Topic: HEALTHIER SOCIAL MEDIA USE BY YOUTH Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill requires the creation of a resource bank related to the mental health impacts of social media use, and that social media platforms display a pop-up warning to users under 18 who are on the platform for certain lengths of time. The bill increases state expenditures on an ongoing basis. Appropriation Summary: For FY 2024-25, the bill requires an appropriation of $13,974 to the Colorado Department of Education. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under HB 24-1136 Budget Year FY 2024-25 Out Year FY 2025-26 Revenue - - Expenditures General Fund $13,974 $9,378 Centrally Appropriated $3,610 $2,029 Total Expenditures $17,584 $11,407 Total FTE 0.2 FTE 0.1 FTE Transfers - - Other Budget Impacts General Fund Reserve $2,096 $1,407 Page 2 February 8, 2024 HB 24-1136 Summary of Legislation Social media platforms. The bill requires that social media platforms display a pop-up warning to a user who is under the age of 18 when the user has spent at least an hour on social media in a day, and is on social media between 10 p.m. and 6 a.m. The bill specifies how frequently the warning must appear, and what must be included in the warning, including data on the impacts of social media. Resource bank. By July 1, 2025, the bill requires that the Colorado Department of Education (CDE) create a resource bank of materials and curricula related to the mental health impacts of social media use by youth. CDE must also create a stakeholder group to assist with the resource bank and identify ways to inform local education providers, educators, parents, youth, and the public about the resources available. CDE must report on the use of the resource bank at the annual SMART Act hearing. Assistance and guidelines. The bill also requires that CDE provide technical assistance upon request to local education providers in designing age-appropriate mental health curricula and adds mental health impacts of social media to existing guidelines related to local comprehensive health and student wellness programs. State Expenditures The bill increases state expenditures in CDE by $17,500 in FY 2024-25 and $11,400 beginning in FY 2025-26, paid from the General Fund. Costs are listed in Table 2 and discussed below. Table 2 Expenditures Under HB 24-1136 FY 2024-25 FY 2025-26 Department of Education Personal Services $13,974 $9,378 Centrally Appropriated Costs 1 $3,610 $2,029 Total Cost $17,584 $11,407 Total FTE 0.2 FTE 0.1 FTE 1 Centrally appropriated costs are not included in the bill's appropriation. Colorado Department of Education. CDE requires 0.2 FTE in FY 2024-25 and 0.1 FTE beginning in FY 2025-26 to compile and maintain the resource bank, convene the stakeholder group, and provide technical assistance to local education providers upon request. CDE currently maintains resources banks for media literacy and comprehensive health, and the fiscal note assumes that the new resource bank can be added to those two existing resources. If a separate resource bank is required, costs will be about $5,000 higher in FY 2024-25 than estimated. Page 3 February 8, 2024 HB 24-1136 Department of Law. Workload in the Department of Law will minimally increase to the extent that the department receives complaints related to the compliance with the required social media pop-up warning. The department will review complaints under the bill and prioritize investigations as necessary within the overall number of complaints received and available resources. 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 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. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. State Appropriations For FY 2024-25, the bill requires a General Fund appropriation of $13,974 to the Colorado Department of Education, and 0.2 FTE. State and Local Government Contacts Education Law 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.