Page 1 April 16, 2024 HB 24-1286 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Revised Fiscal Note (replaces fiscal note dated March 1, 2024) Drafting Number: Prime Sponsors: LLS 24-0554 Rep. Joseph; Lindsay Sen. Roberts Date: Bill Status: Fiscal Analyst: April 16, 2024 House Second Reading John Armstrong | 303-866-6289 john.armstrong@coleg.gov Bill Topic: EQUAL JUSTICE FUND AUTHORITY Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☒ Statutory Public Entity The bill creates a new docket fee to assist indigent defendants with court fees. The bill increases state workload and statutory public entity revenue and expenditures beginning in FY 2024-25. Appropriation Summary: No appropriation is required. Fiscal Note Status: The revised fiscal note reflects the introduced bill, as amended by the House Judiciary and House Finance Committees. Summary of Legislation The bill creates the Equal Justice Authority (EJA), a special purpose authority. The EJA is governed by a seven-member appointed board and must meet at least four times per year. Board members serve without compensation but may be reimbursed for expenses as a result of their duties. Beginning on January 1, 2025 the EJA assesses a $30 Equal Justice Fee on docket filings in district courts for civil cases, court of appeals and probate courts. Civil case filings in county courts are assessed an equal justice fee of $10, except for filings in small claims court. Revenues from these fees are not state revenue and must be used to provide access to legal representation for indigent defendants and to cover the EJA’s direct and indirect administration costs. Persons whose income is below 250 percent of the federal poverty limit are exempt from paying the fee. The EJA must report fund balances, the types of cases for the individuals served by the fund, and the number of individuals served by the fund to the General Assembly on an annual basis. State Expenditures Judicial Department. The Judicial Department will update their information technology systems to create a new financial code for the new Equal Justice Fee, establish a process for determining Page 2 April 16, 2024 HB 24-1286 if a person is not subject to the fee due to income, and transmit fee revenues to the Equal Justice Authority. This additional workload is assumed to be minimal and can be accomplished within existing appropriations. Statutory Public Entity 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 $30 for district civil, court of appeals and probate docket fees, as shown in Table 1 below. County civil fee amounts are $10 and exclude small claims court. Individuals with incomes below 250 percent of the federal poverty guidelines will not be assessed the fee, accounting for approximately 23 percent of all case filers. Table 1 Docket Fee Impact Year Type of Case Cases Poverty Rate Payers Fee Total FY 2024-25 half-year Impact County Civil 30,661 22% 23,916 $10 $239,160 District Civil 20,753 28% 14,942 $30 $448,260 Court of Appeals 292 28% 210 $30 $6,300 Probate 9,211 16% 7,737 $30 $232,110 FY 2024-25 Fee Revenue $925,830 FY 2025-26 County Civil 61,322 22% 47,831 $10 $478,310 District Civil 41,506 28% 29,884 $30 $896,520 Court of Appeals 584 28% 420 $30 $12,600 Probate 18,421 16% 15,474 $30 $464,220 FY 2025-26 Fee Revenue $1,851,650 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 $925,000 in FY 2024-25 and up to $1.85 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. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. Page 3 April 16, 2024 HB 24-1286 State and Local Government Contacts Governor's Office Judicial Law Personnel Treasury 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.