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April 4, 2024 HB 24-1381
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0578
Rep. Kipp; Soper
Sen. Hansen; Mullica
Date:
Bill Status:
Fiscal Analyst:
April 4, 2024
House Finance
Kristine McLaughlin | 303-866-4776
kristine.mclaughlin@coleg.gov
Bill Topic: SUNSET DIVISION OF FINANCIAL SERVICES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Sunset bill. The bill continues the regulation of financial services, which is scheduled
for repeal on September 1, 2024. State fiscal impacts include the continuation of the
program’s current revenue and expenditures. Changes to the program under the bill
have minimal workload impact. The program is continued through September 1, 2039.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1381
New Impacts
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures - -
Continuing Impacts
Revenue Cash Funds - $2,561,000
Expenditures Cash Funds - $2,032,000
Continuing FTE - 15.6 FTE
Transfers - -
Other Budget Impacts TABOR Refunds - $2,561,000
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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. Because the bill continues a program with minor
changes, the new impacts are minimal and not quantified. The continuing program impacts will end if the bill is
not passed and the program is allowed to repeal. Page 2
April 4, 2024 HB 24-1381
Summary of Legislation
The bill continues the regulation of credit unions, savings and loan associations, and life care
institutions, for 15 years from September 1, 2024, to September 1, 2039. The bill also:
establishes a procedure for interstate mergers;
raises the civil penalty limit for failing to adhere to a cease and desist order from $1,000 to
$5,000 per day; and
makes changes to disclosure and other operations requirements for credit unions.
Background
Financial services have been regulated in Colorado since 1931. There are currently 46 licensed
operators in Colorado including: 35 credit unions, 5 savings and loan associations, and 6 life care
institutions. The full sunset report and recommendations can be found here.
Continuing Program Impacts
Based on the 2023 sunset report, DORA is expected to have revenue of about $2,561,000 and
expenditures of $2,032,000 to administer the Financial Services Division in FY 2025-26. If this bill
is enacted, these impacts will continue for the program starting in FY 2025-26. This continuing
revenue is subject to the TABOR. 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.
State Expenditures
Workload will minimally increase in DORA to conduct rulemaking, education, and outreach
concerning the new policies. 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
Judicial Law Regulatory Agencies
Secretary of State
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.