Page 1 February 9, 2024 HB 24-1178 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0217 Rep. Kipp; Froelich Sen. Cutter; Jaquez Lewis Date: Bill Status: Fiscal Analyst: February 9, 2024 House Energy & Environment Alexa Kelly | 303-866-3469 alexa.kelly@coleg.gov Bill Topic: LOCAL GOVERNMENT AUTHORITY TO REGULATE PESTICIDES Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill gives local governments authority to regulate the sale and use of pesticides. It increases state expenditures and may increase local government expenditures on an ongoing basis. Appropriation Summary: For FY 2024-25, the bill requires an appropriation of $45,807 to the Department of Agriculture. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under HB 24-1178 Budget Year FY 2024-25 Out Year FY 2025-26 Revenue - - Expenditures Cash Funds $45,807 $39,137 Centrally Appropriated $7,673 $7,673 Total Expenditures $53,480 $46,810 Total FTE 0.5 FTE 0.5 FTE Transfers - - Other Budget Impacts - - Page 2 February 9, 2024 HB 24-1178 Summary of Legislation The bill allows a county or a municipality to create and enforce an ordinance, resolution, regulation, or other law regulating the sale or use of pesticides. A local government may not enforce any regulation that limits pesticide use: for the production of agricultural products; for dry-up, revegetation, or noxious weed management of land in a water conservation program or land where irrigation water is being limited; by a public utility to protect infrastructure; for the operation of a water supply collection or distribution facility; or for the cultivation of marijuana. State Expenditures The bill increases state expenditures in the Department of Agriculture by about $53,000 in FY 2024-25 and $47,000 in FY 2025-26 and in future years, paid from the Plant Health, Pest Control, and Environmental Protection Fund. Expenditures are shown in Table 2 and detailed below. Table 2 Expenditures Under HB 24-1178 FY 2024-25 FY 2025-26 Department of Agriculture Personal Services $38,497 $38,497 Operating Expenses $640 $640 Capital Outlay Costs $6,670 - Centrally Appropriated Costs 1 $7,673 $7,673 Total Cost $53,480 $46,810 Total FTE 0.5 FTE 0.5 FTE 1 Centrally appropriated costs are not included in the bill's appropriation. Staff. Beginning in FY 2024-25, the CDA requires 0.5 FTE to respond to inquiries from local governments and provide technical support in creating new regulations from local governments. The CDA will review any regulations created by local governments to ensure compliance with state and federal law. Local regulations must be added to the state certification plan, which is filed with the federal Environmental Protection Agency (EPA). This requires staff to coordinate with local governments and the EPA for any new local regulations. Page 3 February 9, 2024 HB 24-1178 The bill does not currently allow for the CDA to have time to review local regulations before they are enacted. In cases where regulations do not comply with state or local law, the CDA may be required to pursue legal action through the courts, which has the potential create legal costs for the department. This impact has not been estimated in this fiscal note. If additional legal expenses are incurred to implement the bill, the CDA will request funding as needed through the budget process. Local Government The bill minimally increases workload for local governments that choose to implement and enforce a regulation for the use and application of pesticides. Technical Note This fiscal note assumes that the bill does not delegate the enforcement of pesticide use as is described on individual pesticide product labels, which are regulated under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). If local governments attempt to regulate use in this manner, the fiscal impacts of the bill will likely vary from this analysis. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations For FY 2024-25, the bill requires an appropriation of $45,807 from the Plant Health, Pest Control, and Environmental Protection Fund to the Department of Agriculture, and 0.5 FTE. State and Local Government Contacts Agriculture Local Affairs Natural Resources Counties Regulatory Agencies Municipalities 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.