Page 1 April 15, 2024 HB 24-1262 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated March 25, 2024) Drafting Number: Prime Sponsors: LLS 24-0285 Rep. Garcia; Jodeh Sen. Buckner; Michaelson Jenet Date: Bill Status: Fiscal Analyst: April 15, 2024 House Second Reading Shukria Maktabi | 303-866-4720 shukria.maktabi@coleg.gov Bill Topic: MATERNAL HEALTH MIDWIVES Summary of Fiscal Impact: ☒ State Revenue ☒ State Expenditure ☐ State Transfer ☒ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill modifies and creates new measures for midwife licensure and maternal health care. It increases state revenue and expenditures beginning in FY 2024-25. Appropriation Summary: For FY 2024-25, the bill requires and includes an appropriation of $447,717 to multiple state agencies. Fiscal Note Status: This revised fiscal note reflects the introduced bill, as amended by the House Health and Human Services Committee and the House Appropriations Committee. Table 1 State Fiscal Impacts Under HB 24-1262 Budget Year FY 2024-25 Out Year FY 2025-26 Out Year FY 2026-27 Revenue Cash Funds $3,815 $3,815 - Total Revenue $3,815 $3,815 - Expenditures General Fund $440,018 $166,099 $123,036 Cash Funds $7,699 - - Centrally Appropriated $34,687 $32,767 $23,024 Total Expenditures $482,404 $198,866 $146,060 Total FTE 2.0 FTE 1.9 FTE 1.4 FTE Transfers - - - - Other Budget Impacts TABOR Refund $3,815 $3,815 - General Fund Reserve $66,003 $24,915 $18,455 Page 2 April 15, 2024 HB 24-1262 Summary of Legislation The bill modifies and creates new measures for midwife licensure and around maternal health care, as detailed below. Midwife Licensure. Direct-entry midwives are currently licensed by the Department of Regulatory Agencies (DORA); however, statute refers to this licensure as registration. Direct- entry midwives are also currently required to have certain certifications to be licensed that would allow them the designation as certified professional midwives. The bill codifies current practice by updating references of “registration” to “licensure” and “direct-entry midwife” to “certified professional midwife,” and clarifies certification requirements. The bill also requires the membership of certain committees, boards, and programs to include midwifery expertise, including the Environmental Justice Advisory Board, the Health Equity Commission, the Governor’s Expert Emergency Epidemic Response Committee, and the Short-Term Health Care Credentials program. Maternity Care. The bill requires the Colorado Civil Rights Division within DORA to collect reports of mistreatments in the context of maternity care in ways that allow data to be accessible (confidential information can be de-identified and reports can be generated for the public) and expands the information that can be provided by individuals. It also requires the commission to submit de-identified reports of mistreatments to certain commissions and the General Assembly. The bill requires the Colorado Maternal Mortality Review Committee in the Department of Public Health and Environment (CDPHE) to contract a third-party evaluator to study closures and availability of perinatal health care, impacts on affected populations, and provide recommendations to the General Assembly by July 1, 2026. Finally, the bill requires health care facilities that reduce maternal health care services to provide notice to the CDPHE, the Colorado Maternal Mortality Review Committee, the Governor, the public, and any affected patients and providers. State Revenue State revenue to the Division of Professions and Occupations Cash Fund in DORA is estimated to increase by approximately $3,800 in FY 2024-25 and FY 2025-26. The division adjusts its fees to cover its estimated costs to implement the bill. Revenue to the cash fund is subject to the state’s TABOR limit. Fee impact on certified professional midwives. Colorado law requires legislative service agency review of measures which create or increase any fee collected by a state agency. These fee amounts are estimates only, actual fees will be set administratively by DORA based on cash fund balance, program costs, and the number of licenses subject to the fee. Table 2 below identifies the fee impact of this bill. Page 3 April 15, 2024 HB 24-1262 Table 2 Fee Impact on Certified Professional Midwives Fiscal Year Type of Fee Current Fee Proposed Fee Number Affected Total Fee Impact FY 2024-25 Midwife License $295 $330 109 $3,815 FY 2025-26 Midwife License $295 $330 109 $3,815 State Expenditures The bill increases state expenditures in the Division of Professions and Occupations in DORA by approximately $10,000 in FY 2024-25 only, paid from the Division of Professions and Occupations Cash Fund. It also increases state expenditures in the Civil Rights Division in DORA by $128,000 in FY 2024-25 and $114,000 in FY 2025-26 and ongoing, paid from the General Fund. Finally, it increases state expenditures in CDPHE by $345,000 in FY 2024-25, $85,000 in FY 2025-26, and $32,417 in FY 2025-26, paid from the General Fund. Expenditures are shown in Table 3 and detailed below. Table 3 Expenditures Under HB 24-1262 FY 2024-25 FY 2025-26 FY 2026-27 Division of Professions and Occupations, DORA Personal Services $7,699 - - Centrally Appropriated Costs 1 $1,920 - - FTE – Personal Services 0.1 FTE - - DPO–DORA Subtotal $9,620 - - Civil Rights Division, DORA Personal Services $54,717 $54,717 $54,717 Operating Expenses $1,280 $1,280 $1,280 Capital Outlay Costs $6,670 - - Legal Services $32,005 $32,005 $32,005 IT System Programming and Maintenance $16,400 $8,525 $8,525 Centrally Appropriated Costs 1 $17,115 $17,115 $17,115 FTE – Personal Services 1.0 FTE 1.0 FTE 1.0 FTE FTE – Legal Services 0.1 FTE 0.1 FTE 0.1 FTE CCRD–DORA Subtotal $128,187 $113,642 $113,642 Page 4 April 15, 2024 HB 24-1262 Table 3 Expenditures Under HB 24-1262 (Cont.) FY 2024-25 FY 2025-26 FY 2026-27 Department of Public Health and Environment Personal Services $68,548 $68,548 $26,125 Operating Expenses $1,024 $1,024 $384 Capital Outlay Costs $7,337 - - Third-Party Evaluator $225,000 - - Heat Map – System Update/Outreach $27,037 - - Centrally Appropriated Costs 1 $15,651 $15,651 $5,908 FTE – Personal Services 0.8 FTE 0.8 FTE 0.3 FTE CDPHE Subtotal $344,597 $85,223 $32,417 Total $482,404 $198,866 $146,060 Total FTE 2.0 FTE 1.9 FTE 1.4 FTE 1 Centrally appropriated costs are not included in the bill's appropriation. Division of Professions and Occupations, DORA. In FY 2024-25 only, the division requires 0.1 FTE for rulemaking, performing outreach to licensees, and updating the website and forms to reflect the profession name change. Costs for the Division of Professions and Occupations are paid from license fees on certified professional midwives. Civil Rights Division, DORA. The Civil Rights Division requires staff, legal services, and system updates to meet the maternity care reporting requirements of the bill. Staff. Beginning in FY 2024-25, the Division requires 1.0 FTE to manage the reporting requirements for maternal care mistreatment, including managing the additional data reported by individuals, developing the database to have the ability to extract data and run reports, submitting report to committees, and managing inquiries and following up with individuals if requested in their report. IT system updates. The division requires approximately $16,400 in FY 2024-25, and $8,525 for maintenance in ongoing years, to update online forms used by individuals to report maternal care mistreatment and create and maintain a database that can produce reports of de-identified data as required. This assumes 100 hours of work initially at an average of $164 per hour, and 50 hours for ongoing maintenance support. These costs are reappropriated to the Office of Information Technology. Legal services. The division is assumed to require 250 hours of legal support annually, which requires 0.1 FTE from the Department of Law, for counsel around reporting on confidential health care. Page 5 April 15, 2024 HB 24-1262 Department of Public Health and Environment. The CDPHE requires staff and costs to study maternal health care services closures. This will include hiring the third-party evaluator and updating data systems to provide them with the necessary information through a health professional shortage area and perinatal health services assets and deficits map. Staff. The CDPHE requires 0.8 FTE in FY 2024-25 and FY 2025-26, and 0.3 FTE in FY 2026-27, to manage the contract with the third-party evaluator and develop the asset and deficit map. Beginning in FY 2024-25, 0.5 FTE will provide programmatic oversight of the evaluation and map, as well as develop eligibility criteria, build the application process, write the Request for Proposals, and contract with an entity performing the perinatal health care evaluation. An additional 0.3 FTE will develop the asset and deficit map. The fiscal note assumes developing the map internally instead through the contracted evaluator will be more cost-effective, as the CDPHE has the infrastructure for data collection and analysis to build the map. Staff activities include data collection, processing, and analysis to develop the map, as well as providing relevant data from the map to the evaluator as needed. Staff costs are required through September 1, 2026, once final deliverables are completed. Third-party evaluator. From FY 2024-25 to FY 2026-27, the CDPHE requires a total of $225,000 to contract an evaluator to conduct the study for the Maternal Mortality Review Committee on closures related to perinatal health care. This includes working with the department, collecting and analyzing data, and developing the final report. System changes. In FY 2024-25 only, the CDPHE requires $20,000 to contract a developer to modify existing data systems for the heat map development by CDPHE staff, including adding data integration and reporting functions. Outreach costs. The CDPHE requires one-time costs of $7,037 to print, send, and collect data from digital and paper surveys for the map analysis and development. 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 3. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. Page 6 April 15, 2024 HB 24-1262 State Appropriations For FY 2024-25, the bill requires and includes a General Fund appropriation of $447,717, of which: $111,072 is appropriated to the Civil Rights Division in the Department of Regulatory Agencies, and 1.0 FTE, of which $32,005 and 0.1 FTE reappropriated to the Department of Law, and $16,400 is reappropriated to the Office of Information Technology; and $328,946 is appropriated to the Department of Public Health and Environment, and 0.8 FTE. The bill also requires an appropriation of $7,699 from the Division of Professions and Occupations Cash Fund to the Department of Regulatory Agencies, and 0.1 FTE. State and Local Government Contacts Judicial Law Public Health and Environment Regulatory Agencies 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.