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March 4, 2024 HB 24-1328
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0573
Rep. English; Clifford
Sen. Rich
Date:
Bill Status:
Fiscal Analyst:
March 4, 2024
House Business & Labor
Anna Gerstle | 303-866-4375
anna.gerstle@coleg.gov
Bill Topic: SUNSET CONTINUE MONEY TRANSMITTER REGULATION
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Sunset bill. This bill continues the regulation of money transmitters in the
Department of Regulatory Agencies, which is scheduled to repeal on
September 1, 2024. State fiscal impacts include both the continuation of the
program's current revenue and expenditures, and minimal impacts to revenue and
expenditures as a result of the change in the bill. The program is continued through
September 1, 2033.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1328
1
New Impacts
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue
- -
Expenditures
- -
Continuing Impacts
Revenue Cash Funds - $637,320
Expenditures Cash Funds - $927,938
Continuing FTE - 10.0 FTE
Other Budget Impacts TABOR Refund - $637,320
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Table 1 shows the new impacts resulting from changes to the program under the bill and the continuing
impacts from extending the program beyond its current repeal date. The continuing program impacts will end
if the bill is not passed and the program is allowed to repeal. Page 2
March 4, 2024 HB 24-1328
Summary of Legislation
Under current law, the regulation of money transmitters by the Department of Regulatory
Agencies (DORA) repeals on September 1, 2024. The bill continues the program until
September 1, 2033 and makes the following changes:
allows the banking board to suspend a license and issue cease-and-desist orders;
expands the requirement to provide surety bond coverage to include all money
transmission, rather than just exchange;
increases the penalty for failure to allow a records examination from $100 per day to $1,000
per day;
increases the penalty for failure to report to DORA from $250 per day to $750 per day;
allows the State Banking Commissioner to forward fingerprints directly to the Federal Bureau
of Investigation for a criminal history record check; and
repeals the requirement that licenses report contact information for each agent who owns at
least 10 percent interest in the building.
Under current law, licensing requirements do not apply to federal, state, or local agencies, or
banking, savings, loan, credit unions that are organized under laws of Colorado or the United
States. The bill expands this exemption to include those chartered in other states and repeals an
exemption for telegraph or cable companies.
Background
Money transmitters are nonbank financial companies that transfers funds electronically and are
used by customers to pay bills, buy products online, or sent money to other companies. Money
transmitters are regulated by the State Banking Board in DORA. In 2022, there were 135 money
transmitters.
The sunset report published by DORA is available here.
Continuing Program Impacts
Based on recent data, DORA is expected to have revenue of $637,320 and expenditures of
$927,938 and 10.0 FTE to administer the regulatory program. If this bill is enacted, current
revenue and expenditures will continue for the program starting in FY 2025-26. This continuing
revenue is subject to the state TABOR limits. If this bill is not enacted, the program will end on
September 1, 2025, following a wind-down period, and state revenue and expenditures will
decrease starting in FY 2025-26 by the amounts shown in Table 1. The changes to the program
that drive additional revenue and costs are discussed in the State Revenue and State
Expenditures sections below.
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March 4, 2024 HB 24-1328
State Revenue
The bill minimally increases fine revenue to the Division of Banking Cash Fund in DORA. The bill
increases penalties for failure to report from $250 per day to $750 per day and failure to allow a
records examination from $100 to $1,000 per day. However, no fines were assessed over the
five years that the sunset report reviewed. As a result, the fiscal note assumes that the number
of fines assessed and the associated revenue increase will be minimal.
To the extent that the bill decreases licensure renewals due to expansion of licensing
exemptions, application fee revenue will decrease. The current renewal fee is $3,000. Any change
in fee revenue is expected to be minimal.
State Expenditures
The bill increases workload for the Division of Banking in DORA to adjust their procedures and
rules to align with the bill. To the extent the bill decreases licensure renewals due to expansion
of licensing exemptions, workload will decrease. No change in appropriations is required.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State and Local Government Contacts
Law 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.