Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Legislative Council Staff ∙ 200 E. Colfax Ave, Room 029 ∙ Denver CO 80203 Fiscal Note Memorandum March 22, 2024 TO: Members of the House Finance Committee FROM: John Armstrong, Fiscal Analyst john.armstrong@coleg.gov | (303-866-6289) SUBJECT: Fiscal Assessment of Proposed Amendment House Bill 24-1286_L.004 This memorandum is an assessment of the fiscal impact of the attached proposed amendment L.004 to HB 24-1286. This fiscal assessment is for the impact of the bill with inclusion of this amendment only. Any other added amendment could influence the fiscal impact. Summary of Proposed Amendment Amendment L.004 removes all references to the Equal Justice Fund and replaces those references with an Equal Justice Fee, which is collected by the Judicial Department on civil and appeals cases beginning January 1, 2025, on behalf of the Equal Justice Authority, a special purpose authority. Persons whose income is below 250 percent of the federal poverty line are exempt from paying the $20 Equal Justice Fee. The fee will be used by the authority to provide access to legal representation for indigent defendants and to cover its costs. Fiscal Impact of Amendment Amendment L.004 removes the state revenue, state expenditure, and TABOR impact identified in the fiscal note dated March 1, 2024, by clarifying that the fee is collected on behalf of a special purpose authority instead of the state. Bill’s Revised Fiscal Impact with Amendment With Amendment L.004, the bill creates a fee impact, a minimal state workload impact, and increases revenue and expenditures in a special purpose authority. Docket fee impact. Colorado law requires legislative service agency review of measures which create or increase any fee collected by a state agency. In this case, the fee is collected by the Judicial Department on behalf of the Equal Justice Authority. Fee amounts are outlined in the bill, resulting in an increase of $20 for various docket fees, as shown in Table 1 below. P a g e | 2 Table 1 Docket Fee Impact Year Type of Case Number of Cases Fee Revenue FY 2024-25 County Civil 27,288 $20 $545,760 District Civil 17,848 $20 $356,960 Court of Appeals 251 $20 $5,020 Probate 8,474 $20 $169,480 FY 2024-25 Equal Justice Fee Revenue $1,077,220 FY 2025-26 County Civil 54,577 $20 $1,091,540 District Civil 35,695 $20 $713,900 Court of Appeals 502 $20 $10,040 Probate 16,947 $20 $338,940 FY 2025-26 Equal Justice Fee Revenue $2,154,420 Judicial Department. The Judicial Department will update their information technology systems to create a new financial code for the new Equal Justice Fee. This additional workload is assumed to be minimal and can be accomplished within existing appropriations. Equal Justice Authority. The newly created EJA will provide funding for legal aid to indigent offenders using the revenue generated from the new docket fee, estimated at $1.1 million in FY 2024-25 and up to $2.2 million in FY 2025-26 and ongoing. This revenue will also cover the EJA’s administrative costs, which will be spent to convene commission members, and to distribute and report on funding.