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April 29, 2024 HB 24-1245
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 19, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0323
Rep. Story
Sen. Gonzales
Date:
Bill Status:
Fiscal Analyst:
April 29, 2024
House Appropriations
Jessika Shipley | 303-866-3528
jessika.shipley@coleg.gov
Bill Topic: FAIR LABOR PRACTICE REQUIREMENTS FOR BROADBAND PROJECTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the Colorado Broadband Office to ensure that that workers on certain
broadband deployment projects are paid prevailing wages, and it creates new
reporting requirements for broadband deployment projects. The bill increases state
expenditures beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $400,730 to the Office of
Information Technology.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amended in the House Business
Affairs and Labor Committee.
Table 1
State Fiscal Impacts Under HB 24-1245
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $400,730 $216,990
Centrally Appropriated $45,108 $45,108
Total Expenditures $445,838 $262,098
Total FTE 2.0 FTE 2.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $60,109 $32,548
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April 29, 2024 HB 24-1245
Summary of Legislation
For the distribution of federal funds or state matching funds earmarked for broadband
deployment projects costing over $500,000 in Colorado, the Colorado Broadband Office (CBO)
in the Governor’s Office of Information Technology (OIT) must ensure that workers on the
project are paid the prevailing wage as defined in state law. The bill also requires reporting as to
certain labor practices by broadband deployment projects receiving funding through the CBO.
Background
Under current law, the CBO is authorized to seek, apply for, accept, and expend money from the
federal government for broadband deployment. To this end, OIT established the Broadband
Equity, Access, and Deployment (BEAD) Program in accordance with requirements by the
National Telecommunications and Information Administration (NTIA). The function of the BEAD
Program is to manage over $800 million in federal funds awarded to Colorado for broadband
deployment projects. Part of the management involves developing and submitting detailed
broadband deployment plans to the NTIA for approval, a multi-step, multi-year process. A final
stage of NTIA approval is currently pending and is expected in March or April of 2024 for money
to be distributed in the summer and fall of 2024.
Assumptions
As none of the over $800 million in federal funds awarded to Colorado has yet been distributed,
the fiscal note assumes that pending broadband deployment plans will need to be revised and
resubmitted to the NTIA to include the requirements of the bill, resulting in at least a 12-month
delay for affected deployment plans to go into effect.
State Expenditures
The bill increases General Fund expenditures in OIT by about $450,000 in FY 2024-25 and by
about $260,000 per year thereafter. Expenditures are shown in Table 2 and explained below.
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April 29, 2024 HB 24-1245
Table 2
Expenditures Under HB 24-1245
FY 2024-25 FY 2025-26
Information Technology
Personal Services $214,430 $214,430
Operating Expenses $2,560 $2,560
Capital Outlay Costs $13,340 -
Contractor $140,400 -
Software $30,000 -
Centrally Appropriated Costs
1
$45,108 $45,108
FTE – Personal Services 2.0 FTE 2.0 FTE
Total Cost $445,838 $262,098
Total FTE 2.0 FTE 2.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Information Technology. The bill increases expenditures in OIT for staff to assess prevailing
wage compliance and to resubmit plans to the NTIA.
Staff. In order to manage federal and state matching funds distributed on or after the
effective date of the bill, the CBO requires 2.0 FTE, one senior broadband projects manager
and a grant specialist to create new evaluation metrics required by the bill, assist in
developing and submitting plans to the NTIA, and ensuring ongoing compliance with
prevailing wage requirements
Other costs. Other costs associated with the bill include one-time contract assistance for six
months to revise and resubmit detailed deployment plans to the NTIA to include the
requirements of the bill ($140,400) and specialized grant management software that can be
customized with prevailing wage requirements in the bill ($30,000).
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. Page 4
April 29, 2024 HB 24-1245
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 a General Fund appropriation of $400,730 to the Office of
Information Technology, and 2.0 FTE.
State and Local Government Contacts
Information Technology
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.