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June 17, 2024 HB 24-1261
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0912
Rep. Bottoms
Date:
Bill Status:
Fiscal Analyst:
June 17, 2024
Postponed Indefinitely
Aaron Carpenter | 303-866-4918
aaron.carpenter@coleg.gov
Bill Topic: CIVIL REMEDIES TO PREVENT HUMAN TRAFFICKING
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill would have allowed nonprofits to sue alleged human traffickers. Starting in
FY 2024-25, the bill may have increased state revenue and would have increased state
expenditures.
Appropriation
Summary:
For FY 2024-25, the bill would have required an appropriation of $437,398 to multiple
state agencies.
Fiscal Note
Status:
The final fiscal note reflects the enacted bill. This bill was postponed indefinitely by the
House State, Civic, Military, and Veterans Affairs committee on March 7, 2024;
therefore, the impacts identified in this analysis do not take effect.
Table 1
State Fiscal Impacts Under HB 24-1261
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures General Fund $437,398 $1,842,962
Centrally Appropriated $74,136 $89,552
Total Expenditures $511,534 $1,932,514
Total FTE 3.3 FTE 4.0 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $65,610 $276,444
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June 17, 2024 HB 24-1261
Summary of Legislation
The bill allows nonprofit organizations that have direct involvement in investigating the actions
of a human trafficker or providing services to a survivor to sue an alleged human trafficker. The
bill outlines the statute of limitations to bring a suit, the requirements to bring a suit, and duties
of various state departments, as described below.
Bringing a suit. Before initiating a civil suit, the bill requires a nonprofit organization to submit
its case to the Office of the Attorney General for review to ensure procedural and policy
compliance and to take a training provided by the Human Trafficking Council within the
Colorado Department of Public Safety (CDPS). The bill also requires nonprofit organizations to
maintain transparency in the allocation of any awarded damages, to maintain documentation of
required information, and to demonstrate strict ethical standards.
Statute of limitations. The bill establishes a statute of limitation on when a nonprofit can bring
a suit. In general, a nonprofit must bring a suit within six years from the date of the alleged
violation. The bill gives extensions if the violation was not immediately apparent, when the
trafficker actively concealed their actions, or if the case involves different jurisdictions with
longer statutes of limitation.
Attorney general. The bill requires the Office of the Attorney General to review suits for
nonprofits to ensure procedural and policy compliance, to conduct annual assessments of
nonprofits who file a suit to ensure they met training requirements, to develop and provide
procedural guidelines, to provide legal training and ongoing support, and to create a
comprehensive monitoring system to assess implementation and impact of the bill. The bill also
gives the Attorney General the authority to file the civil suit on behalf of the nonprofit
organization. Any damages awarded to the state must be transferred to the Human Trafficking
Prevention and Aftercare Services Fund.
Human Trafficking Council. The bill requires the Human Trafficking Council to conduct
victim-centered trauma-informed training for nonprofits to ensure they have knowledge and
skills regarding civil legal procedures, ethical consideration in human trafficking cases, and
survivor aftercare. The bill outlines how often training sessions need to be held and updated.
The bill also requires the council to conduct a comprehensive public information campaign to
inform the public and nonprofit organizations about the bill. Finally, the council must administer
the newly created Human Trafficking Prevention an Aftercare Services Fund by funding
initiatives and programs that provide after care services, rehabilitation, and legal support to
survivors.
State Auditor. Finally, the bill requires the Office of the State Auditor to perform periodic audits
of nonprofits to ensure adherence to the guideline and utilization of awarded funds.
State Revenue
Starting in FY 2024-25, the bill may increase state revenue to the newly created Human
Trafficking Prevention and Aftercare Services Cash Fund from damages awarded to the state. It
is unknown how many cases the Attorney General will bring, if accused human traffickers will be
found liable, and what the amount of damages will be. Revenue from damages is not subject to
the state’s TABOR limit. Page 3
June 17, 2024 HB 24-1261
State Expenditures
The bill increases state expenditures in the Department of Law, the CDPS, and the Office of the
State Auditor by about $512,000 in FY 2024-25 and $1.9 million in FY 2025-26, paid from the
General Fund. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1261
FY 2024-25 FY 2025-26
Department of Public Safety
Personal Services $112,271 $140,339
Operating Expenses $2,048 $2,560
Capital Outlay Costs $13,340 -
Public Awareness Campaign $70,000 $1,010,000
Grant Program Spending - Unknown
Centrally Appropriated Costs
1
$31,734 $39,668
FTE – Personal Services 1.6 FTE 2.0 FTE
CDPS Subtotal $229,393 $1,192,567
Department of Law
Personal Services $216,919 $255,199
Operating Expenses $2,176 $2,560
Capital Outlay Costs $13,340 -
Other Expenses – Travel and Continuing Education $7,304 $7,304
Centrally Appropriated Costs
1
$42,402 $49,884
FTE – Personal Services 1.7 FTE 2.0 FTE
DOL Subtotal $282,141 $314,947
State Auditor
Nonprofit Audit - at least $425,000
OSA Subtotal - at least $425,000
Total $511,534 at least $1,932,514
Total FTE 3.3 FTE 4.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 4
June 17, 2024 HB 24-1261
Department of Public Safety. Starting in FY 2024-25, the bill increases expenditures in the
CDPS to hire additional staff and to conduct a public awareness campaign, as described below.
Staffing. The CDPS require 2.0 FTE to develop and conduct the required training, to help
create and administer the public awareness campaign, and to administer the Human
Trafficking Prevention an Aftercare Services Cash Fund. Staffing cost include personal
services, operating expenses, and capital outlay identified in Table 2. Costs in FY 2024-25 are
prorated for a September 1, 2024, start date.
Public Awareness Campaign. The bill increases expenditures in the CDPS to conduct a
public awareness campaign. Based on a similar public awareness campaign conducted by
the Division of Criminal Justice, it is estimated that $70,000 is required to contract with a
vendor to create a campaign concept and the materials. Then, starting in FY 2025-26,
$1 million is required to purchase advertisement time on digital media, posters, billboards,
and commercials.
Grant program spending. Starting in FY 2025-26, expenditures will increase to award
grants from damages the state receives. Because it is unknown how much the state will
receive in damages, it is unknown how much the state will spend in grants.
Department of Law. The bill increases expenditures in the Department of Law to hire additional
staff, as described below.
Staffing. The Department of Law requires 2.0 FTE to review cases brought by nonprofits,
conduct annual assessments, develop procedural guidelines, provide legal training and
ongoing support, create a comprehensive monitoring system, and bring civil suits. Staffing
cost include personal services, operating expenses, and capital outlay identified in Table 2.
Costs in FY 2024-25, are prorated for a September 1, 2024, start date.
Other expenses. It is assumed that travel will be required for the FTE to provide trainings
and other assistance. The fiscal note assumes there will be 4 trips annually, averaging 250
miles, with 2 overnight stays at a hotel. Additionally, the Department of Law does not have
civil case expertise in human trafficking; therefore, it is assumed that the new FTE will also
require annual continuing education credits on human trafficking. Costs include travel
expenses to various trainings and conferences.
State Auditor. Starting in FY 2025-26, expenditures in the Office of the State Auditor will
increase by at least $425,000 to audit nonprofits to ensure proper distribution of awarded
damages. The fiscal note assumes that one nonprofit will be audited, and that the audit would
require an average audit team of 1 manager, 1 supervisor, and 2 audit staff. If more nonprofits
are required to be audited, costs will increase by $425,000 per audit.
Judicial Department. Starting in FY 2024-25, the bill increases workload to the trial courts to
the extent there are additional cases filed under the bill. According to the Judicial Department,
one district court judge can handle around 376 civil cases annually. The fiscal note assumes that
the number of cases will be limited and therefore, no change in appropriation is required.
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June 17, 2024 HB 24-1261
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.
Technical Note
Under current law, the Colorado Human Trafficking Council is scheduled to repeal on
September 1, 2024. The General Assembly is currently considering House Bill 24-1345, which
would continue the council indefinitely. If the General Assembly does not pass HB 24-1345, the
council would not be able to implement the requirements of the bill.
In addition, the Office of the State Auditor does not have the authority to audit nonprofits.
Article V, Section 49 of the Colorado Constitution, which provides the State Auditor their
authority, does not include nonprofits.
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 total General Fund appropriation of $437,398 including:
$197,659 to the Department of Public Safety, and 1.6 FTE; and
$239,739 to the Department of Law, and 1.7 FTE.
State and Local Government Contacts
Judicial Law Public Safety
State Auditor
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.