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April 8, 2024 HB 24-1438
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1123
Rep. Mabrey; Jodeh
Sen. Roberts
Date:
Bill Status:
Fiscal Analyst:
April 8, 2024
House Health & Human Services
Shukria Maktabi | 303-866-4720
shukria.maktabi@coleg.gov
Bill Topic: IMPLEMENT PRESCRIPTION DRUG AFFORDABILITY PROGRAMS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Diversion
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill makes changes to the insulin and epinephrine affordability programs in the
Department of Regulatory Agencies. It increases state expenditures and requires a
state diversion in FY 2024-25 only, and may increase state revenue and local workload
beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $7,699 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24-1438
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures Cash Funds $7,699 -
Centrally Appropriated $1,921 -
Total Expenditures $9,620 -
Total FTE 0.1 FTE -
Transfers/Diversions General Fund ($9,620) -
Cash Funds $9,620 -
Net Diversion $0 -
Other Budget Impacts - -
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April 8, 2024 HB 24-1438
Summary of Legislation
The bill makes changes to the insulin and epinephrine affordability programs in the Department
of Regulatory Agencies (DORA), Division of Insurance (DOI).
First, it modifies the fines for manufacturer noncompliance from $10,000 for each month of
noncompliance to an amount and frequency of the fine permitted under the Consumer
Protection Act. It also authorizes the Attorney General to enforce the programs, and makes it a
deceptive trade practice for a manufacturer to fail to comply with the Insulin Affordability
Program or the requirements for the emergency supply of prescription insulin.
Finally, the bill requires the DOI to make certain changes to the application form for the
Epinephrine Auto-Injector Program, including requiring the application to be available online
and adding a line in the application for a billing code for pharmacy reimbursement purposes.
The DOI must also provide pharmacies with informational flyers about the program to provide
to individuals seeking to access the program.
State Revenue
State revenue may increase from civil penalties and filing fees beginning in FY 2024-25.
Civil penalties. Under the Colorado Consumer Protection Act, a person committing a deceptive
trade practice may be subject to a civil penalty of up to $20,000 for each violation. Additional
penalties may be imposed for subsequent violations of a court order or injunction. This revenue
is classified as a damage award and not subject to TABOR. Given the uncertainty about the
number of cases that may be pursued by the Attorney General and district attorneys, as well as
the wide range in potential penalty amounts, the fiscal note cannot estimate the potential
impact of these civil penalties.
Filing fees. The bill may increase revenue to the Judicial Department from an increase in civil
case filings. Revenue from filing fees is subject to TABOR.
State Diversions
This bill diverts $9,620 from the General Fund in FY 2024-25 only. This revenue diversion occurs
because the bill increases costs in the DOI in DORA, which is funded with premium tax revenue
that would otherwise be credited to the General Fund
State Expenditures
The bill increases expenditures in DORA by about $10,000 in FY 2024-25 only, paid from the DOI
Cash Fund. Expenditures are shown in Table 2 and detailed below. The bill also increases
workload for the Department of Law and the Judicial Department.
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April 8, 2024 HB 24-1438
Table 2
Expenditures Under HB 24-1438
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $7,699
-
-
Centrally Appropriated Costs
1
$1,921
-
-
Total Cost $9,620
$0
-
Total FTE 0.1 FTE -
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Regulatory Agencies. In FY 2024-25, the DOI requires 0.1 FTE to make
modifications to the application form and to provide information to pharmacies for the
Epinephrine Auto-Injector Affordability Program.
Department of Law. Workload in the Department of Law will minimally increase to the extent
that deceptive trade practice complaints are filed. The department will review complaints under
the bill and prioritize investigations as necessary within the overall number of deceptive trade
practice complaints and available resources.
Judicial Department. The trial courts in the Judicial Department may have an increase in cases
filed under the Colorado Consumer Protection Act from the addition of a new deceptive trade
practice. It is assumed that manufacturers will abide by the law and that any violation of the
legislation will result in minimal number of new cases. The fiscal note assumes that this can be
accomplished within existing resources and that no change in appropriations is required.
Local Government
Similar to the state, to the extent district attorneys receive deceptive trade practice complaints
related to the new deceptive trade practice under the bill, workload will increase to investigate
complaints and seek relief when appropriate. It is assumed most such cases will be handled at
the state level by the Attorney General.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State Appropriations
For FY 2024-25, the bill requires an appropriation of $7,699 from the Division of Insurance Cash
Fund to the Department of Regulatory Agencies, and 0.1 FTE.
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April 8, 2024 HB 24-1438
State and Local Government Contacts
District Attorneys Judicial 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.