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July 30, 2024 SB 24-139
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0947
Sen. Gonzales
Rep. deGruy Kennedy;
Lindstedt
Date:
Bill Status:
Fiscal Analyst:
July 30, 2024
Signed into Law
Josh Abram | 303-866-3561
josh.abram@coleg.gov
Bill Topic: CREATION OF 911 SERVICES ENTERPRISE
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates the 911 Services Enterprise in the Department of Regulatory Affairs.
The bill increases state expenditures beginning in FY 2024-25 and state revenue
beginning FY 2025-26.
Appropriation
Summary:
For FY 2024-25, the enacted bill includes an appropriation of $107,695 to the
Department of Regulatory Agencies.
Fiscal Note
Status:
This final fiscal note reflects the enacted bill.
Table 1
State Fiscal Impacts Under SB 24-139
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds - at least $696,000
Total Revenue - at least $696,000
Expenditures General Fund $107,695 -
Cash Funds - at least $677,281
Centrally Appropriated $14,975 $18,719
Total Expenditures $122,670 at least $696,000
Total FTE 1.0 FTE 1.2 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $16,194 -
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July 30, 2024 SB 24-139
Summary of Legislation
Under current law, a 911 surcharge is imposed on 911 service users by the Public Utilities
Commission (PUC) which is calculated to reasonably meet the needs of local governing bodies
for operating 911 services. This bill creates the 911 Services Enterprise in the Department of
Regulatory Agencies (DORA) and permits the enterprise to charge a fee in addition to the
surcharge. The enterprise is governed by a board of directors appointed by the Governor and
consisting of representatives of the telecommunications industry and from governing bodies of
local jurisdictions.
The enterprise’s primary powers are to impose a 911 enterprise fee on service users to fund
expenses such as statewide training initiatives and programs for 911 center personnel, public
education campaigns and materials, and other 911 related training and support. The enterprise
may establish grant programs for the benefit of local governing bodies or for use as matching
funds for eligible projects. The fee must also pay the expenses necessary for administration of
the enterprise. Revenue from the fee are put in the 911 Enterprise Cash Fund and continuously
appropriated to the enterprise for administration and other programs.
Beginning June 30, 2026, the enterprise must prepare an annual financial report to Legislative
Council Staff and the Joint Budget Committee. The financial report must include the enterprise's
projected revenue and expenditures and proposed budget for the following fiscal year.
State Revenue
The bill is expected to increase state cash fund revenue from fees by at least $696,000 per year
beginning in FY 2025-26. This revenue is deposited to the 911 Enterprise Cash Fund and is
exempt from the state’s revenue limit under TABOR.
Fee impact on telephone users. Colorado law requires legislative service agency review of
measures which create or increase any fee collected by a state agency. The bill requires that a
new fee must be established by the governing board for the enterprise, which together with the
existing 911 surcharge, cannot exceed $0.50 per month (currently, the state 911 surcharge
collected by the PUC is $0.09 per month). Based on prior funding to the 911 Resource Center
($250,000 per year) the fiscal note assumes that the fee will be set on the low end of the
potential range, at $0.01 per month. This fee amount is an estimate only; actual fees will be set
administratively by the enterprise based on cash fund balance, program costs, and the number
of users subject to the fee. The table below identifies the fee impact of this bill. Page 3
July 30, 2024 SB 24-139
Table 2
Fee Impact on Telephone Users
Fiscal Year Type of Fee
Estimated
Annual Fee
1
Number
Affected
Total Fee
Impact
FY 2025-26 and
future years
911 Enterprise Fee $0.12 5,800,000 $696,000
1
This fee assumes a surcharge of $0.01 per month. The actual fee may differ based on decisions by the new
enterprise board.
State Expenditures
This bill increases state expenditures by about $123,000 in FY 2024-25 paid from the General
Fund. In FY 2025-26, expenditures are estimated to be at least $696,000, depending on the fee
amount set by the enterprise. Expenditures are shown in Table 3 and described below.
Table 3
Expenditures Under SB 24-139
FY 2024-25 FY 2025-26
Department of Regulatory Agencies
Personal Services $61,595 $76,994
Operating Expenses $1,024 $1,280
Capital Outlay Costs $6,670 -
Legal Services $38,406 $38,406
911 Enterprise Programs - at least $560,601
Centrally Appropriated Costs
1
$14,975 $18,719
FTE – Personal Services 0.8 FTE 1.0 FTE
FTE – Legal Services 0.2 FTE 0.2 FTE
Total Cost $122,670 at least $696,000
Total FTE 1.0 FTE 1.2 FTE
2
Centrally appropriated costs are not included in the bill's appropriation.
Administration. The DORA will require 1.0 FTE for a program administrator beginning in
FY 2024-25 to set up the new enterprise and work with the Governor’s office to empanel the
governing board, establish bylaws for basic administration, and begin the process to determine
the appropriate 911 enterprise fee. Since the enterprise must organize and begin work without a
revenue stream, this fiscal note assumes that General Fund is necessary to create the enterprise
in FY 2024-25, and that cash fund revenue in FY 2025-26 will be used for both administrative
and program expenses. Costs in FY 2024-25 are prorated for a September 1 start date. DORA
and the new enterprise will require ongoing legal support from the Department of Law for rule
making and other tasks. Page 4
July 30, 2024 SB 24-139
911 enterprise programs. Assuming revenue of $696,000 in revenue is collected annually
beginning in FY 2025-26, the new enterprise is estimated to spend approximately $560,000 per
year for programs supporting 911 service operators, after accounting for administrative costs.
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 2.
Other Budget Impacts
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 in FY 2024-25 only,
by the amount shown in Table 1, decreasing the amount of General Fund available for other
purposes.
Local Government
To the extent that local governments receive grants or monetary support through the new
enterprise, revenue will increase. Workload and expenditures will correspondingly increase to
pursue grants, comply with grant requirements, and use available funding on allowable uses.
Effective Date
The bill was signed into law by the Governor on May 31, 2024, and it takes effect August 7, 2024,
assuming no referendum petition is filed.
State Appropriations
For FY 2024-25, the enacted bill includes a General Fund appropriation of $107,695 to the
Department of Regulatory Agencies, and 0.8 FTE. Of this amount, $38,406 is reappropriated to
the Department of Law, and 0.2 FTE.
State and Local Government Contacts
Law Regulatory Agencies Treasury
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.