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June 3, 2024 SB 24-164
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0660
Sen. Buckner; Lundeen
Rep. McCluskie; Pugliese
Date:
Bill Status:
Fiscal Analyst:
June 3, 2024
Signed into Law
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: INSITUTIONS OF HIGHER EDUCATION TRANSPARENCY REQUIREMENTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill modifies processes regarding credit transfers between institutions of higher
education and requires students to receive certain cost information. The bill will
increase expenditures for the state and institutions of higher education beginning in
FY 2024-25.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The final fiscal note reflects the enacted bill.
Summary of Legislation
The bill makes changes to state law related to transfer of college credit between institutions of
higher education.
Student rights. The bill adds certain rights to students enrolled in postsecondary institutions,
including:
transparency of the cost of postsecondary education;
seamless transfer of courses in the guaranteed transfer pathway matrix, which are
introductory courses with equivalent learning outcomes between institutions;
transparency regarding if credits are accepted or rejected from an institution;
the ability to appeal an institution’s decision not to accept transfer credits; and
the right to know which work-related and prior learning experiences are awarded credit.
The Department of Higher Education (CDHE) must adopt implementation policies for public
institutions of higher education by April 1, 2025.
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June 3, 2024 SB 24-164
Council of Higher Education Representatives. The bill requires the Council of Higher
Education Representatives (council) to add representatives to ensure equal representation of
institutions by December 31, 2024, and to review the list of courses in the guaranteed transfer
pathway matrix by October 1, 2025, and annually thereafter. As part of this review, the council
will identify courses that have the most transfer enrollment, which courses are less likely to
receive credit upon transferring and where misalignment occurs between courses in the state’s
guaranteed transfer pathways matrix.
The bill clarifies that students who have completed a guaranteed transfer pathway matrix course
must receive credit from the institutions receiving the transfer. Institutions may not require
students to take the same or similar courses as those in the matrix that the student has
completed. Courses that cannot be applied to a major or program’s requirements must be used
to fulfill general elective course requirements. Students who change majors must have their
transfer credits re-evaluated.
Data reporting. Beginning January 2026, and annually thereafter, CDHE must include as part of
its annual SMART Act hearing certain information regarding credit transfers.
Violations of transfer policy. The bill grants CDHE the authority to enforce violations of
transfer policies against institutions and overturn a course transfer decision made by an
institution.
Appeals process. CDHE must develop an appeal process for students who are denied transfer
of credits in consultation with institutions of higher education, and may adopt rules as necessary
to implement this process.
Acceptance of transfer credits. Institutions must provide notice to students regarding the
acceptance or denial of transfer credits within 30 days after the date the student’s official
transcript and admission application materials are received by the institution. Institutions must
post their process and timeline for reviewing transfer requests on their website.
Background
The Council of Higher Education Representatives, established in 2001, consists of representatives
from institutions of higher education and staff from the CDHE. The council meets periodically to
establish common course numberings, classify certain courses as general education courses, and
jointly develop the statewide transfer pathways matrix, which allows institutions to map which
courses can be accepted for credit when students transfer.
State Expenditures
CDHE will have increased workload to convene members of the council to update transfer
policies, adopt rules for institutional violations of transfer policy, and develop an appeal process
for students who have been denied transfer credits. Staff from CDHE will have increased
workload to accomplish these activities and review student appeals of denied credit and issue
rulings to institutions. Current staff are expected to be able to accomplish these activities within
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June 3, 2024 SB 24-164
Initially, the number of appeals of denied credit transfers is expected to be minimal. As
knowledge of the appeals process grows among institutions and students, appeals may increase
in following years. If CDHE requires more staff to handle these appeals, they will be requested
through the annual budget process.
Institutions of Higher Education
Institutions will have increased costs beginning in FY 2024-25 to implement the new
requirements for transfer students and participate in any appeals to CDHE, The fiscal note
assumes these costs will be funded through adjustments to institutional tuition, fees, and other
revenue sources. The General Assembly may also consider a General Fund appropriation for
these costs in initial years. Annual costs will vary depending on the institution.
Institutional costs include:
staff to make decisions on accepting transfer credits in a condensed 30-day time frame;
including additional information in financial aid disclosures to students;
training on new requirements; and
additional documentation of transfer credit decisions.
Staffing costs will vary considerably based on the size of the institution and the number of
transfer students they accept.
Technical Note
The bill’s safety clause will require CDHE and the institutions to immediately develop the appeal
process for denied credit transfer. Because the council will need to meet to standardize this
process, the appeal process is likely to be available beginning January 1, 2025, to allow the
required time to refine the appeal process for students and institutions.
Effective Date
The bill was signed by the Governor and took effect on May 18. 2024.
Departmental Difference
Several institutions of higher education indicated the need for a General Fund appropriation in
order to implement the bill. These costs ranged from $305,000 and 3.5 FTE to $3.6 million and
16.0 FTE in FY 2024-25. The fiscal note assumes that these additional requirements can be met
using institutional revenue. Ultimately, this funding decision is at the discretion of the General
Assembly.
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June 3, 2024 SB 24-164
State and Local Government Contacts
Higher Education
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.