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June 26, 2024 HB 24-1438
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-1123
Rep. Mabrey; Jodeh
Sen. Roberts
Date:
Bill Status:
Fiscal Analyst:
June 26, 2024
Signed into Law
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 revenue
beginning in FY 2024-25, and may increase local workload beginning in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires and includes an appropriation of $8,874 to the
Department of Regulatory Agencies.
Fiscal Note
Status:
The final fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under HB 24-1438
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds $12,110 $6,838
Total Revenue $12,110 $6,838
Expenditures Cash Funds $8,874 $4,287
Centrally Appropriated $3,201 $1,601
Total Expenditures $12,075 $5,888
Total FTE 0.2 FTE 0.1 FTE
Transfers - -
Other Budget Impacts TABOR Refund $12,110 $6,838
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June 26, 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).
First, the bill moves the affordability programs from the Division of Insurance to the Division of
Professions and Occupations (DPO) within DORA.
Then, 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 affordability 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 DPO to make certain changes to the application form for the
Epinephrine Auto-Injector Program, including requiring the application to be accessible online
and including information for pharmacy reimbursement purposes. The DPO must also provide
pharmacies with information about the program to provide to individuals seeking to access the
program.
State Revenue
State revenue to the Division of Professions and Occupations Cash Fund in DORA is estimated to
increase by approximately $12,000 in FY 2024-25 and $7,000 in FY 2025-26. The division adjusts
its fees to cover its estimated costs to implement the bill. Revenue to the cash fund is subject to
the state’s TABOR limit. State revenue may also increase from civil penalties and filing fees
beginning in FY 2024-25.
Fee impact on pharmacy businesses and professions. Colorado law requires legislative service
agency review of measures which create or increase any fee collected by a state agency. These
fee amounts are estimates only, actual fees will be set administratively by DORA based on cash
fund balance, program costs, and the number of licenses subject to the fee. Based on the
number of licensees and upcoming license renewal schedule, the fiscal note assumes fees for
pharmacy businesses and pharmacists will be adjusted, but pharmacy interns and technicians
may also be affected. The table below identifies the fee impact of this bill.
Table 2
Fee Impact on Pharmacy Businesses and Professions
Fiscal Year Type of Fee
Current
Fee
Estimated
Fee
Number
Affected
Total Fee
Impact
FY 2024-25 Pharmacy Businesses
Renewal
$459 $463 3,460 $12,110
FY 2025-26 Pharmacists $138 $138.80 8,548 $6,838
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June 26, 2024 HB 24-1438
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 Expenditures
The bill increases expenditures in DORA by about $12,000 in FY 2024-25 and $6,000 in
FY 2025-26 and following years, paid from the DPO Cash Fund. Expenditures are shown in
Table 3 and detailed below. The bill also increases workload for the Department of Law and the
Judicial Department.
Table 3
Expenditures Under HB 24-1438
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $8,574 $4,287
Translation $300
Centrally Appropriated Costs
1
$3,201 $1,601
Total Cost $12,075 $5,888
Total FTE 0.2 FTE 0.1 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Regulatory Agencies. The DPO requires 0.2 FTE initially and 0.1 FTE annually in
subsequent years, to transition the programs from the DOI; modify the program application,
website, and materials; provide information to pharmacies for the Epinephrine Auto-Injector
Affordability Program; and manage any public inquiries regarding the programs. The DPO will
also have one-time costs of $300 for translation services for changes made to the application
forms. Costs in the DPO are funded by license renewal fees on pharmacy businesses and
professions, as described in the State Revenue section.
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.
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June 26, 2024 HB 24-1438
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
This bill was signed into law by the Governor and took effect on June 3, 2024.
State Appropriations
For FY 2024-25, the bill requires and includes an appropriation of $8,874 from the Division of
Professions and Occupations Cash Fund to the Department of Regulatory Agencies, and 0.2 FTE.
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.