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February 29, 2024 HB 24-1315
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0058
Rep. Brown; Amabile
Date:
Bill Status:
Fiscal Analyst:
February 29, 2024
House Business Affairs & Labor
Brendan Fung | 303-866-4781
brendan.fung@coleg.gov
Bill Topic: STUDY ON REMEDIATION OF PROPERTY DAMAGED BY FIRE
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Diversion
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill commissions a study of remediation practices for residential property
damaged in a fire. It creates a General Fund diversion and increases state expenditures
in FY 2024-25 and FY 2025-26 only.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $219,909 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1315
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures Cash Fund $219,909 $9,954
Centrally Appropriated $4,264 $2,132
Total Expenditures $224,173 $12,086
Total FTE 0.2 FTE 0.1 FTE
Diversions General Fund ($224,173) ($12,086)
Cash Funds $224,173 $12,086
Net Diversion $0 $0
Other Budget Impacts - -
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February 29, 2024 HB 24-1315
Summary of Legislation
The bill requires the Division of Insurance in the Department of Regulatory Agencies (DORA) to
conduct or commission a study of remediation practices for residential properties that have
been damaged in a fire. The study must identify:
existing practices and standards for inspecting, testing, and remediating residential property
damaged by smoke, soot, ash, and other contaminants from a fire;
the extent to which residential property can be remediated after sustaining damage from a
fire;
recommendations for uniform remediation standards for residential property damaged by a
fire;
existing indoor air quality health and safety standards regarding the habitability of a
residential property after sustaining damage from a fire; and
the extent to which homeowner’s insurance policies cover residential property damaged by
fire.
DORA must engage with relevant stakeholders and submit a report of the study’s findings to the
General Assembly by January 1, 2026.
State Diversion
This bill diverts General Fund to the Division of Insurance Cash Fund in FY 2024-25 and
FY 2025-26. This revenue diversion occurs because the bill increases costs in the Division of
Insurance in the Department of Regulatory Agencies, which is funded with premium tax revenue
that is otherwise credited to the General Fund.
State Expenditures
The bill increases state expenditures in DORA by about $224,000 in FY 2024-25 and $12,000 in
FY 2025-26, paid from the Division of Insurance Cash Fund, to collect data and hire an actuarial
contractor to conduct the study. Expenditures are shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1315
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $19,909 $9,954
Contract Study $200,000 -
Centrally Appropriated Costs
1
$4,264 $2,132
Total Cost $224,173 $12,086
Total FTE 0.2 FTE 0.1 FTE
1
Centrally appropriated costs are not included in the bill's appropriation. Page 3
February 29, 2024 HB 24-1315
Staff. In FY 2024-25 and FY 2025-26, DORA requires 0.2 FTE Actuary II to hire and manage the
contractor for the study, and request, review, and analyze remediation data that is not currently
filed with the division. Staff costs conclude in January 2026, upon delivery of the study.
Contract study. DORA requires an estimated $200,000 to hire an actuarial firm to conduct
market research on existing remediation practices, assess environmental health impacts, collect
field data, develop recommendations for uniform standards, and generate a report. Based on
the level of detail required by the bill, the fiscal note assumes that a contractor will perform
500 hours of work at an estimated $400 per hour. Actual costs will be determined through the
contracting process. Expenditures for the contract study will occur over two fiscal years.
Legal services. DORA may require legal services, provided by the Department of Law, which can
be accomplished within existing legal services appropriations. Legal counsel is related to
contract language and implementation of the study.
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.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2024-25, the bill requires an appropriation of $219,909 from the Division of Insurance
Cash Fund to the Department of Regulatory Agencies, and 0.2 FTE. Of this amount, $200,000
requires roll-forward spending authority through FY 2025-26.
State and Local Government Contacts
Information Technology 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.