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January 24, 2024 SB 24-015
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0004
Sen. Kolker
Rep. Young
Date:
Bill Status:
Fiscal Analyst:
January 24, 2024
Senate Health & Human Services
Brendan Fung | 303-866-4781
brendan.fung@coleg.gov
Bill Topic: LICENSED PROFESSIONAL COUNSELORS IN COMMUNITIES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates a reimbursement program for school counselors pursuing a
professional counselor license and for licensees who provide clinical supervision. It
increases state expenditures and state revenue starting in FY 2024-25.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $1,739,988 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 24-015
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds $34,304 $68,608
Total Revenue $34,304 $68,608
Expenditures General Fund $1,739,988 $3,261,704
Centrally Appropriated $30,817 $3,424
Total Expenditures $1,770,805 $3,265,128
Total FTE 1.8 FTE 0.2 FTE
Transfers - -
Other Budget Impacts TABOR Refund $34,304 $68,608
General Fund Reserve $260,998 $489,256
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January 24, 2024 SB 24-015
Summary of Legislation
The bill creates the Dual Licensure Stipend Program in the Division of Professions and
Occupations in the Department of Regulatory Agencies (DORA) for school counselors who
participate in the dual licensure program to become licensed professional counselors (LPCs). The
bill authorizes the reimbursement of exam and application costs for dual licensure candidates
and supervisory costs for LPC supervisors who fulfill a candidate’s clinical supervision hours.
The program must be contracted and administered through a Colorado nonprofit organization,
with that organization responsible for establishing the application process, setting supervisory
rates, dispersing stipends, and determining the repayment process for violation of the contract.
Program requirements. The bill establishes requirements for dual licensure candidates to be
eligible for the program, including licensure by a special services provider and a completed
master’s or doctoral degree in professional counseling from an accredited program.
Participating dual licensure candidates must remain employed by a public school for at least five
years after licensure or repay the nonprofit organization for the supervision hours, examination
fees, and application fees.
Reporting. The nonprofit organization must draft a report for the Division of Professions and
Occupations by January 15 of each year that includes data on the participating candidates and
supervisors in the stipend program. The division is required to submit the report to the General
Assembly by February 26 of each year.
Background
The Colorado State Board of Professional Counselor Examiners regulates LPCs in the state. Board
activities include reviewing licensure applications, receiving and evaluating complaints, and
taking disciplinary actions against violators of the Mental Health Practice Act or Board Rule. In
order to hold a LPC license in Colorado, candidates must first apply for a candidate license and
practice under supervision while actively working towards the full LPC license. Candidates must
complete the National Counselor Examination and 100 supervised post-degree hours before
obtaining a full license.
School counselors are regulated by the Colorado Department of Education (CDE). The CDE set
forth the education and accreditation requirements for school counselors, which can be viewed
here. School counselors are not required to be LPCs.
Assumptions
As of 2023, there are 2,561 licensed school counselors in the state. The fiscal note assumes that
30 percent, or 768 licensees, will participate in the stipend program, spread over multiple years.
The fiscal note assumes that 5 percent of current school counselors (128) will apply for dual
licensure in FY 2024-25, 10 percent will apply in FY 2025-26 (256), and 10 percent will apply in
future years until 30% of school counselors have applied. Some revenue and expenditure Page 3
January 24, 2024 SB 24-015
impacts could shift between fiscal years if the program is implemented sooner or later, or if
participation differs from these assumptions.
State Revenue
The bill will increase state cash fund revenue to DORA by about $34,000 in FY 2024-25, $68,000
in FY 2025-26, and $81,000 in FY 2026-27, paid to the Division of Professions and Occupations
Cash Fund from additional school counselors applying for LPC licensure. On an ongoing basis,
fees from initial licensure will increase until interested school counselors have applied for dual
licensure and then every two years starting in FY 2026-27 from biennial LPC renewal fees.
Fee impact on licensed professional counselors. Colorado law requires legislative service
agency review of measures which create or increase any fee collected by a state agency.
Generally, the bill is expected to increase the number persons applying for licensure who are
required to pay a fee, rather than change the fee amount charged by DORA. Thus, the revenue
impact is estimated using current fees amounts. The estimated impacts of license and renewal
fees paid by licensed professional counselors under the bill is shown in Table 2 below.
Beginning in FY 2024-25, DORA will collect about $34,000 in LPC candidate and license fees
from 5 percent of school counselors applying to the dual licensure program. In FY 2025-26 and
FY 2026-27, DORA will collect about $69,000 from 10 percent of school counselors applying for
the dual licensure program in each year. Beginning in FY 2026-27 and every two years
thereafter, DORA will collect renewal fees from dual licensed LPCs. As shown in Table 2, the fiscal
note estimates a $100 fee every two years.
Table 2
Fee Impact on Dual Licensure Applicants
Fiscal Year Type of Fee Current Fee Number Affected Total Fee Impact
FY 2024-25
LPC Candidate Fee $72 128 $9,216
LPC License Fee $196 128 $25,088
FY 2024-25 Total Fee Revenue $34,404
FY 2025-26
LPC Candidate Fee $72 256 $18,432
LPC License Fee $196 256 $50,176
FY 2025-26 Total Fee Revenue $68,608
FY 2026-27
LPC Candidate Fee $72 256 $18,432
LPC License Fee $196 256 $50,176
LPC Renewal Fee $100 128 $12,800
FY 2026-27 Total Fee Revenue $81,408
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January 24, 2024 SB 24-015
State Expenditures
The bill increases state expenditures in DORA by about $1.8 million in FY 2024-25 and about
$3.3 million in FY 2025-26, paid from the General Fund. Expenditures are shown in Table 3 and
detailed below.
Table 3
Expenditures Under SB 24-015
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $98,455 $10,939
Operating Expenses $2,304 $256
Capital Outlay Costs $13,340 -
LPC Candidate Fee Reimbursement $9,220 $18,432
LPC License Fee Reimbursement $25,098 $50,176
National Counselor Exam Fee Reimbursement $35,214 $70,400
LPC Supervisory Hours Reimbursement $1,408,549 $2,816,000
Contractor Administration Fee $147,808 $295,501
Centrally Appropriated Costs
1
$30,817 $3,424
Total Cost $1,770,805 $3,265,128
Total FTE 1.8 FTE 0.2 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Regulatory Agencies. Starting in FY 2024-25, expenditures in DORA will
increase to oversee additional LPC candidates, review licensees for supervisory qualification, and
administer stipend reimbursements through a contracted nonprofit organization. It is assumed
that license fee revenue cannot be used for the stipend program
Staff. In FY 2024-25 only, DORA will require 1.8 FTE for a Technician III to review
supervisory qualification of all current LPCs and manage additional LPC applications. In
FY 2025-26 and ongoing, DORA will require 0.2 FTE for a Technician III to review new LPC
applications and supervisor qualifications. Increased workload to establish the
administrative contract and manage the procurement process is expected to be
accomplished within existing resources and not require additional appropriations.
Stipend reimbursements. Starting in FY 2024-25, DORA will require about $1.5 million
to reimburse LPC candidates and license applicants for fees and costs, as well as LPC
supervisors for supervisory time. Reimbursements are based on the following amounts:
• LPC candidate fees - $72 per applicant;
• LPC license fees - $196 per applicant;
• National Counselor Exam fees - $275 per applicant; Page 5
January 24, 2024 SB 24-015
• LPC supervisory hours - estimated at $110 per hour for 100 hours of clinical
supervision per applicant.
Contractor administration fee. Starting in FY 2024-25, DORA will require about
$148,000 to retain the administrative services of a contracted Colorado nonprofit
organization that will administer the program. In future years, this amount is 10% of the
program costs.
Legal services. DORA will require up to 100 hours of legal services, provided by the
Department of Law, which can be accomplished within existing legal services
appropriations. Legal counsel is related to rulemaking, implementation, and ongoing
administration of the program, as well as a rise in complaints.
Licensing system updates. Enhancements to the DPO licensing system are needed to
track LPC licensees who are eligible to supervise. This is expected to be accomplished
within existing resources and does not require additional appropriations.
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 3.
Other Budget Impacts
TABOR refund. The bill is expected to increase the amount of state revenue required to be
refunded to taxpayers by the amounts shown in the State Revenue section above. This estimate
assumes the December 2023 LCS revenue forecast. A forecast of state revenue subject to TABOR
is not available beyond FY 2025-26. Because TABOR refunds are paid from the General Fund,
increased cash fund revenue will reduce the amount of General Fund available to spend or save.
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve. Based on this fiscal note,
the bill is expected to increase the amount of General Fund held in reserve by the amounts
shown in Table 1, decreasing the amount of General Fund available for other purposes.
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 a General Fund appropriation of $1,739,988 to the Department
of Regulatory Agencies, and 1.8 FTE. Page 6
January 24, 2024 SB 24-015
State and Local Government Contacts
Education Information Technology
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.