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April 22, 2024 HB 24-1283
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 22, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0960
Rep. Willford; Marvin
Sen. Mullica
Date:
Bill Status:
Fiscal Analyst:
April 22, 2024
House Second Reading
Hamza Syed | 303-866-4976
hamza.syed@coleg.gov
Bill Topic: SOS REVIEW OF MUNICIPAL CAMPAIGN FIN ANCE COMPLAINTS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill allows municipal campaign finance complaints to be reviewed and
investigated by the Secretary of State under certain circumstances. The bill increases
state expenditures and may increase state revenue beginning FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill includes an appropriation of $170,723 to the Department of
State.
Fiscal Note
Status:
This revised fiscal note reflects the introduced bill, as amendment by the House State,
Civic, Military, and Veterans Affairs Committee and House Appropriations Committee.
Table 1
State Fiscal Impacts Under HB 24-1283
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures Cash Fund $170,723 $157,176
Centrally Appropriated $36,790 $38,542
Total Expenditures $207,513 $195,718
Total FTE 2.1 FTE 2.2 FTE
Transfers - -
Other Budget Impacts - -
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April 22, 2024 HB 24-1283
Summary of Legislation
Under current law, all municipal campaign finance violation complaints must be filed with the
clerk of the affected municipality. The bill allows a clerk to refer a complaint to the Secretary of
State’s (SOS) office if the municipality does not have a campaign finance complaint ordinance
and hearing process, or if the clerk determines that the clerk's review of the complaint would
create a conflict of interest for the clerk or the clerk's staff. The municipality must have an
ordinance in place to allow them to refer the complaint to the SOS, and a clerk must conduct an
administrative check to see if the complaint was filed correctly before referring it.
State Revenue
The bill potentially increases state cash fund revenue from fines and fees to the Department of
State as outlined below.
Campaign finance violation fines. The bill may increase state revenue from fines paid to the
Department of State Cash fund. As these fines vary in amount depending on the number and
severity of the violations, no estimate is available. Fine revenue is subject to TABOR.
Fee impact on businesses and professions. Colorado law requires legislative service agency
review of measures which create or increase any fee collected by a state agency. Under current
law, the DOS is authorized to adjust fees so that the revenue generated approximates its direct
and indirect costs. The DOS is primarily funded through business filing fees. To cover the costs
described in the State Expenditures section below, fees may need to be raised to cover all or
some of the costs of this bill. The fees affected and the actual amount of fee charges will be set
administratively by the DOS based on cash fund balance, total program costs, and the estimated
number of professional activities subject to fees. This revenue is subject to TABOR.
State Expenditures
This bill will increase state expenditures in the Department of State by about $208,000 in
FY 2024-25 and about $196,000 in FY 2025-26 to review and investigate increased cases of
alleged municipal election finance complaints. These costs, paid from the Department of State
Cash Fund, are displayed in Table 2 and described below.
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April 22, 2024 HB 24-1283
Table 2
Expenditures Under HB 24-1283
FY 2024-25 FY 2025-26
Department of State
Personal Services $133,025 $139,360
Operating Expenses $2,688 $2,816
Capital Outlay Costs $20,010 -
Administrative Hearing Officers $15,000 $15,000
Centrally Appropriated Costs
1
$36,790 $38,542
FTE – Personal Services 2.1 FTE 2.2 FTE
Total Cost $207,513 $195,718
Total FTE 2.1 FTE 2.2 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Personal services. The Campaign and Political Finance Unit in the Department of State (DOS)
will require 1.5 FTE Policy Advisors to handle the increase in complaints regarding municipal
races. The Policy Advisors will conduct reviews, perform investigations, draft motions, assist in
compliance, and coordinate with other divisions within DOS. The Elections Division will require
0.5 FTE Election Specialist to address questions from respondents and train municipal clerks and
their staff on requirements. The Legal and Policy Team will require 0.2 FTE Policy Advisor to
manage filing documents and accessibility, track deadlines, and facilitate administrative
hearings.
Administrative hearing officers. An increase in complaints will require more administrative
hearings and more contract hours for administrative hearing officers to conduct those hearings.
This is estimated to require an additional 75 hours of hearings per year at $200 per hour.
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.
Local Government
Municipalities that are currently reviewing campaign finance violation complaints may, in some
circumstances, instead refer the complaints directly to the SOS. This may result in minimal cost
savings to some municipalities for processing and investigating a complaint.
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April 22, 2024 HB 24-1283
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, and applies to municipal campaign finance complaints filed on
or after that date.
State Appropriations
For FY 2024-25, the bill requires and includes an appropriation of $170,723 from the
Department of State Cash Fund to the Department of State, and 2.1 FTE.
State and Local Government Contacts
County Clerks Municipalities Secretary of State
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.