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May 6, 2024 HB 24-1245
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 29, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0323
Rep. Story; Garcia
Sen. Gonzales
Date:
Bill Status:
Fiscal Analyst:
May 6, 2024
Senate 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 establish labor standards for
grantees and subgrantees on certain 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 $366,547 to the Office of
Information Technology.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under HB 24-1245
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $366,547 $316,537
Centrally Appropriated $66,823 $66,823
Total Expenditures $433,370 $383,360
Total FTE 3.0 FTE 3.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $54,982 $47,481
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May 6, 2024 HB 24-1245
Summary of Legislation
For the distribution of federal funds or state matching funds earmarked for broadband
deployment projects, the Colorado Broadband Office (CBO) in the Governor’s Office of
Information Technology (OIT) must establish labor standards for grantees and subgrantees
within 91 days after the CBO receives approval from the National Telecommunications and
Information Administration (NTIA). At a minimum, the standards must require grantees and
subgrantees to pay their workers prevailing wage, utilize apprenticeships, employ a skilled and
trained workforce, and utilize in-house workforce training.
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 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.
State Expenditures
The bill increases General Fund expenditures in OIT by about $435,000 in FY 2024-25 and by
about $385,000 per year thereafter. Expenditures are shown in Table 2 and explained below.
Table 2
Expenditures Under HB 24-1245
FY 2024-25 FY 2025-26
Information Technology
Personal Services $312,697 $312,697
Operating Expenses $3,840 $3,840
Capital Outlay Costs $20,010 -
Software $30,000 -
Centrally Appropriated Costs
1
$66,823 $66,823
FTE – Personal Services 3.0 FTE 3.0 FTE
Total Cost $433,370 $383,360
Total FTE 3.0 FTE 3.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
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May 6, 2024 HB 24-1245
Information Technology. The bill increases expenditures in OIT for staff to adopt rules and
assess compliance with fair labor practices.
Staff. In order to manage federal and state matching funds distributed on or after the
effective date of the bill, the CBO requires 3.0 FTE: one senior broadband projects manager,
a grant specialist, and a higher-level analyst to ensure compliance with rules for specified
labor practices.
Software. The CBO requires specialized grant management software that can be customized
with fair labor 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.
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 $366,547 to the Office of
Information Technology, and 3.0 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.