Page 1
March 5, 2024 SB 24-125
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0835
Sen. Pelton B.;
Michaelson Jenet
Date:
Bill Status:
Fiscal Analyst:
March 5, 2024
Senate Health & Human Services
Shukria Maktabi | 303-866-4720
shukria.maktabi@coleg.gov
Bill Topic: INTERSTATE COMPACT FOR THE PLACEMENT OF CHILDREN
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill repeals and reenacts the Interstate Compact for the Placement of Children.
The bill conditionally increases state and local workload and expenditures if the new
version of the compact is enacted by 35 states.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
Currently, a child who is found to be abused or neglected can be placed in homes in other states
in accordance with the Interstate Compact for the Placement of Children. Under the existing
compact, states work together to ensure the placement is suitable, but the sending state court
has jurisdiction over the child even as they are moved to a receiving state, until they are
adopted, reach majority, become self-supporting or when authorities in both states agree the
case can be discharged. The Governor appoints a general coordinator of the compact that can
make rules to carry out the compact, and local county departments process and monitor
interstate placements.
The bill revises and expands the existing Interstate Compact for the Placement of Children to
align practice standards and compliance across states. This new version of the compact takes
effect if it is enacted by 35 states. Specifically, the bill outlines the operating procedures for
ensuring children are placed in suitable homes in a timely manner, the coordination of this
compact with other existing compacts, and the legal jurisdiction for children in placements. The
bill also creates an Interstate Commission, consisting of one member from each state in the
compact, that will develop rules, develop a dispute resolution process, enforce compliance
among states, specify data to be collected and shared, and develop guidelines for cases
involving Indian children in accordance with Federal Law. The Commission may collect a fee
from member states to cover expenses of the Commission. Page 2
March 5, 2024 SB 24-125
Assumptions
The compact requires adoption by 35 states to go into effect. Based on current figures, Colorado
would be the seventeenth state to adopt the new compact.
The bill allows the Commission to create and enforce administrative rules that will govern the
activities of member states, and for member states to amend the compact before it goes into
effect by 35 states. Given the potential for factors in the compact to change between now and
the adoption of the compact, which can be several years in the future, the fiscal note assumes
the adopted compact will largely align with existing procedures in Colorado from the current
compact, and that any resources currently used to implement the existing compact in the state
will be shifted to implement the new compact. More accurate fiscal impacts can only be
determined closer to the time of adoption.
State Expenditures
Conditional on the compact becoming effective, the bill increases workload in the Department
of Human Services and may impact the Judicial Department and independent judicial agencies.
State expenditures will also increase for dues to the commission, as discussed below.
Department of Human Services. Workload will increase to meet any additional practice
standards in the compact and to train county departments on updated requirements. This
workload is expected to be minimal based on current work related to the existing compact and
can be accomplished within existing appropriations.
The compact commission may charge an annual fee from member states. While the amount and
timing of any fee is unknown at this time, it is assumed to be similar to the amount paid under
the current version of the compact. Should the amount differ following enactment of the
compact, CDHS will request funding through the budget process.
Judicial Department and Independent judicial agencies. Because trial courts already oversee
cases governed by the existing Interstate Compact for the Placement of Children, the new
compact is expected to minimally impact workload for the trial courts, the Office of the
Respondent Parents’ Counsel (ORPC) and the Office of the Child’s Representative, and can be
accomplished within existing appropriations. If the new compact leads to longer cases or
additional hearings, additional resources will be requested through the annual budget process.
Local Government
Similar to the state, county departments of human services that facilitate child placements may
be impacted depending on the requirements of the adopted compact; however, this will be
minimal based on current work related to the existing compact. If the compact establishes
deadlines for all stages of the placement process and this leads to more timely placements
between states, expenditures for counties that must pay for the support and maintenance of the
child during the period of placement will decrease. Page 3
March 5, 2024 SB 24-125
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
Departmental Difference
If the compact goes into effect, the ORPC anticipates costs of $1.3 million for attorney costs
related to longer hearings for out-of-state placement cases and additional hearings for parents
to litigate the constitutionality of the compact. The fiscal note assumes that the bill will not
substantially increase court cases. If court cases do substantially increase, these costs will be
requested through the annual budget process based on actual impacts from the final enacted
compact.
State and Local Government Contacts
Child Welfare Counties Early Childhood
Education Governor Health Care Policy and Financing
Human Services Information Technology Judicial
Law Municipalities Personnel
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.