Colorado 2024 2024 Regular Session

Colorado House Bill HB1294 Introduced / Fiscal Note

Filed 03/28/2024

                    Page 1 
March 28, 2024  HB 24-1294 
 
 
 
 Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
 
Revised Fiscal Note  
(replaces fiscal note dated March 5, 2024)  
 
Drafting Number: 
Prime Sponsors: 
LLS 24-0093  
Rep. Boesenecker; Velasco 
Sen. Cutter  
Date: 
Bill Status: 
Fiscal Analyst: 
March 28, 2024 
House Appropriations  
Brendan Fung | 303-866-4781 
brendan.fung@coleg.gov  
Bill Topic: MOBILE HOMES IN MOBILE HOME PARKS  
Summary of  
Fiscal Impact: 
☒ State Revenue 
☒ State Expenditure 
☐ State Transfer 
☒ TABOR Refund 
☐ Local Government 
☐ Statutory Public Entity 
 
The bill adds various new protections and requirements to the Mobile Home Park Act, 
including allowing the Attorney General to bring actions regarding rent-to-own 
contract violations. It increases state revenue and expenditures starting in FY 2024-25. 
Appropriation 
Summary: 
For FY 2024-25, the bill requires an appropriation of $40,966 to the Department of 
Local Affairs. 
Fiscal Note 
Status: 
This revised fiscal note reflects the introduced bill, as amended by the House 
Transportation, Housing, and Local Government Committee. 
Table 1 
State Fiscal Impacts Under HB 24-1294 
  
Budget Year 
FY 2024-25 
Out Year 
FY 2025-26 
Revenue 	Cash Funds 	$1,128  $1,128 
Expenditures 	Cash Funds 	$40,966  $40,966 
 	Total FTE 	0.2 FTE 0.2 FTE 
Transfers  	-  	-  
Other Budget Impacts TABOR Refund 	$1,128 $1,128 
   Page 2 
March 28, 2024  HB 24-1294 
 
 
 
Summary of Legislation 
The bill modifies the Mobile Home Park Act, including owner and landlord responsibilities, 
tenancy and rent protections, secondary language accessibility, tenant health requirements, and 
the conditions of the sale for mobile homes and parks. The bill also establishes provisions for 
rent-to-own contracts and rights. 
Additionally, the bill authorizes the Attorney General to initiate civil and criminal actions to 
enforce the rent-to-own mobile home contract requirements. 
Background and Assumptions 
The Division of Housing in the Department of Local Affairs (DOLA) administers the Mobile Home 
Park Oversight Program (MHPOP), which resolves disputes and enforces the Mobile Home Park 
Act provisions. MHPOP ensures compliance between park landlords, owners, and tenants, 
conducts educational outreach initiatives, and registers mobile home parks in the state. 
State Revenue 
Starting in FY 2024-25, the bill increases state cash fund revenue by about $1,000 per year to the 
Mobile Home Park Act Dispute Resolution and Enforcement Program Fund in DOLA from the 
addition of previously exempt parks to regulatory oversight. The bill may also minimally increase 
state revenue to the Judicial Department. These impacts are shown in Table 2 and discussed in 
more detail below.  
Table 2 
Annual Fee Impact on Mobile Home Parks 
Type of Fee 	Current Fee  Units Affected Total Fee Impact 
Additional Park Registrations 	$24 	47 $1,128 
Fee impact on mobile home parks. Colorado law requires legislative service agency review of 
measures which create or increase any fee collected by a state agency. The bill is expected to 
increase the number of mobile home parks that are required to pay the current annual 
registration fee. Costs of the bill can be absorbed without raising the current fee based on 
existing resources in the Mobile Home Park Act Dispute Resolution and Enforcement Program 
Fund, although DOLA may need to adjust the fee in future years depending on program costs, 
fund balance, and the number of mobile home parks subject to the fee. 
Filing fees. Starting in FY 2024-25, revenue may minimally increase to the Judicial Department 
from an increase in case filing fees to the extent that mobile home park landlords and owners 
violate provisions. Overall, it is assumed that landlords and owners will comply with the new 
requirements. Revenue from fees is subject to TABOR. 
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March 28, 2024  HB 24-1294 
 
 
 
State Expenditures 
The bill increases state expenditures in DOLA by about $41,000 beginning in FY 2024-25, paid 
from the Mobile Home Park Act Dispute Resolution and Enforcement Program Fund. Workload 
will also minimally increase in various state departments, as detailed below. 
Department of Local Affairs. Starting in FY 2024-25, DOLA requires 320 hours of legal services 
for rulemaking and representation to address complaints concerning rent increases, eviction 
proceedings, and park sales, which equates to 0.2 FTE. Legal services are provided by the 
Department of Law at a rate of $128.02 per hour.  
Judicial Department. Starting in FY 2024-25, trial courts in the Judicial Department may 
experience an increase in workload to adjudicate civil cases or appeals related to expanded 
landlord obligations, Forcible Entry and Detainer (FED), and enforcement by the Attorney 
General. The fiscal note assumes that any increase will be minimal.  
Department of Personnel and Administration. The bill may increase workload starting in 
FY 2024-25 for administrative law judges in the Office of Administrative Courts to hear cases 
referred by DOLA for mobile home park violations. This workload is expected to be minimal and 
no change in appropriations is required. 
Department of Law. Workload in the Department of Law will minimally increase to the extent 
additional enforcement actions are taken by the Attorney General. The department will prioritize 
these actions within the overall scope of its duties and available resources. No change in 
appropriations is required.  
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. 
Other Budget Impacts 
TABOR refunds. The bill is expected to increase the amount of state revenue required to be 
refunded to taxpayers by the amounts shown in the State Revenue section above. This estimate 
assumes the December 2023 LCS revenue forecast. A forecast of state revenue subject to TABOR 
is not available beyond FY 2025-26. Because TABOR refunds are paid from the General Fund, 
increased cash fund revenue will reduce the amount of General Fund available to spend or save. 
Effective Date 
The bill takes effect on June 30, 2024, except that certain sections and provisions take effect 
upon signature of the Governor or upon becoming law without his signature. The bill applies to 
rent-to-own mobile home contracts formed on or after June 30, 2024.  Page 4 
March 28, 2024  HB 24-1294 
 
 
 
State Appropriations 
For FY 2024-25, the bill requires an appropriation of $40,966 from the Mobile Home Park Act 
Dispute Resolution and Enforcement Program Fund to the Department of Local Affairs, all of 
which is reappropriated to the Department of Law with 0.2 FTE. 
State and Local Government Contacts 
Counties      Judicial      Law               
Local Affairs     Personnel     Public Health and Environment  
 
 
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.