Colorado 2024 2024 Regular Session

Colorado House Bill HB1147 Introduced / Fiscal Note

Filed 02/21/2024

                    Page 1 
February 21, 2024  HB 24-1147 
 
 
 Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
 
Fiscal Note  
  
 
Drafting Number: 
Prime Sponsors: 
LLS 24-0168  
Rep. Joseph; Titone 
Sen. Hansen; Buckner  
Date: 
Bill Status: 
Fiscal Analyst: 
February 21, 2024 
House State Affairs 
Hamza Syed | 303-866-4976 
hamza.syed@coleg.gov  
Bill Topic: CANDIDATE ELECTION DEEPFAKE DISCLOSURES  
Summary of  
Fiscal Impact: 
☒ State Revenue 
☒ State Expenditure 
☐ State Transfer 
☐ TABOR Refund 
☐ Local Government 
☐ Statutory Public Entity 
 
The bill creates new regulations and penalties for using artificial intelligence and 
deepfake generated content related to communications about candidates for elected 
office. The bill minimally increases state workload and may increase state revenue 
beginning in FY 2024-25. 
Appropriation 
Summary: 
No appropriation is required.  
Fiscal Note 
Status: 
The fiscal note reflects the introduced bill. 
Summary of Legislation 
The bill creates new regulations and penalties for using artificial intelligence (AI) and deepfake 
generated content related to communications about candidates for elected office. AI-generated 
communication without proper disclosure is prohibited. The bill outlines allowable uses and 
disclosure requirements for various news/multimedia outlets. Persons alleging violations may 
file a complaint with the Secretary of State’s (SOS) office for review, and violators may be fined 
civil penalties. In addition, candidates who are the subject of undisclosed AI-generated 
communications may file a civil action with the courts for injunctive and other relief/damages. 
State Revenue 
Violations of disclosure requirements may be subject to a civil penalty by the Secretary of State.  
Fine revenue is deposited in the Department of State Cash Fund. As the use of deepfakes and 
AI-generated content are emerging issues with limited data, the fiscal note does not estimate 
the number of violations that may be levied by the SOS. Assuming a high degree of compliance 
by affected campaigns and other individuals and groups involved in elections, new state revenue 
is anticipated to be minimal. In addition, filing fee revenue to the Judicial Department may 
increase if additional civil cases are filed with the trial courts. Fine and fee revenue is subject to 
TABOR.   Page 2 
February 21, 2024  HB 24-1147 
 
 
State Expenditures 
The bill may increase the workload of the Department of State to receive complaints about 
violations, conduct administrative hearings, establish a process for curing violations, conduct 
investigations, and enforce the new requirements. Overall, this workload is expected to be 
minimal and any additional complaints can be handled by existing staff and the contracted 
hearing officer used by the Department of State for election-related hearings. No change in 
appropriations is required.  
To the extent that additional civil cases are filed by candidates who are the subject of a deepfake 
or other prohibited AI-generated content, workload in the trial courts will increase. Any 
additional case volume is assumed to be minimal and can be accomplished within existing 
resources. 
Effective Date 
The bill takes effect July 1, 2024, and applies to communications distributed on or after this date.  
State and Local Government Contacts 
Judicial     Secretary of State  
 
 
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.