Page 1 June 3, 2024 SB 24-130 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 24-0600 Sen. Mullica; Will Rep. Brown Date: Bill Status: Fiscal Analyst: June 3, 2024 Deemed Lost John Armstrong | 303-866-6289 john.armstrong@coleg.gov Bill Topic: NONECONOMIC DAMAGES CAP MED MALPRACTICE ACTIONS Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☒ Local Government ☐ Statutory Public Entity The bill would have increased the cap on damages for medical malpractice by $40,000 annually from 2025 through 2029 until the maximum is $500,000. The bill may have increased state and local expenditures. Appropriation Summary: No appropriation was required. Fiscal Note Status: The final fiscal note reflects the introduced bill. The bill was deemed lost in the Senate on May 9, 2024; therefore, the impacts identified in this analysis do not take effect. Summary of Legislation Currently, the maximum amount of damages that can be awarded for to a plaintiff in a medical malpractice case for a noneconomic loss or injury is $300,000. The bill raises this maximum by $40,000 each year from January 1, 2025, through January 1, 2029. By 2029, the maximum will be $500,000. Background Noneconomic loss or injury means nonmonetary harm for which damages are recoverable by the person suffering the direct loss or injury including grief, pain and suffering, loss of companionship, and emotional stress. State Expenditures Beginning in FY 2024-25, the bill potentially increases workload and expenditures as described below. Judicial Department. Beginning in FY 2024-25 the bill may increase trial court workload in the Judicial Department. To the extent that the increased cap on damages provides an incentive to go to trial instead of settling out of court, workload will increase in trial courts. The expected increases are expected to be minimal; no change in appropriations is required. Page 2 June 3, 2024 SB 24-130 State employee insurance. The bill has the potential to raise insurance premiums that are borne by the state and enrolled employees. The Department of Personnel and Administration will factor any premium increases into their annual Total Compensation analysis. Any adjustments to employee compensation as a result of these adjusted premiums will take place through the annual budget process. The additional workload to factor in these changes is expected to be minimal; no change in appropriations is required. Local Government Similar to the trial courts impact for the state, Denver County Courts may see a potential increase in trial courts workload due to an increased incentive to take malpractice claims to court. The anticipated increase is expected to be minimal. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State and Local Government Contacts Corrections Higher Education Human Services Judicial Personnel 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.