Page 1
May 1, 2024 SB 24-181
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 29, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0652
Sen. Priola; Hansen
Rep. deGruy Kennedy;
Amabile
Date:
Bill Status:
Fiscal Analyst:
May 1, 2024
House Finance
Kristine McLaughlin | 303-866-4776
kristine.mclaughlin@coleg.gov
Emily Dohrman | 303-866-3687
Bill Topic: ALCOHOL IMPACT & RECOVERY ENTERPRISE
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill creates the Alcohol Impact and Recovery Enterprise and several grant
programs within the enterprise. The bill increases state expenditures and revenue on
an ongoing basis.
Appropriation
Summary:
For FY 2024-25, the bill includes an appropriation of $98,583 to the Department of
Revenue and the Department of Law.
Fiscal Note
Status:
This revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under SB 24-181
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Audit Years
FY 2030-31
Revenue Cash Funds - $19,824,437 $20,320,047 $22,429,530
Total Revenue - $19,824,437 $20,320,047
$120,134,514
$22,429,530
Expenditures General Fund $40,974 - - -
Cash Funds $174,678 $19,374,739 $19,870,349 $22,348,832
Central. Approp. $20,524 $80,698 $80,698 $80,698
Total Expenditures $236,176 $19,455,437 $19,951,047 $22,429,530
Total FTE 1.3 FTE 4.1 FTE 4.1 FTE 7.8 FTE
Transfers General Fund ($650,000) $369,000 $369,000 -
Cash Funds $650,000 ($369,000) ($369,000) -
Net Transfer $0 $0 $0 -
Other Budget GF Reserve $6,146
- - -
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May 1, 2024 SB 24-181
Summary of Legislation
The bill creates the Alcohol Impact and Recovery Enterprise under the Behavioral Health
Administration (BHA). The enterprise board will consist of various department representatives
and stakeholders and will report to the General Assembly annually. The enterprise will be
audited in FY 2030-31 and every 4
years thereafter or as frequently as necessary as determined
by the State Auditor.
The bill creates the following grant programs under the enterprise, all of which will be
implemented by January 1, 2026:
the Colorado Alcohol Treatment and Recovery Affordability Grant Program to award grants
to Behavioral Health Administrative Services Organizations (BHASOs) to provide substance
use disorder (SUD) treatment and recovery services on a sliding fee scale;
the Colorado Alcohol Use Prevention and Early Intervention Grant Program to award grants
to entities dedicated to SUD prevention;
the Colorado Alcohol-Related Impaired Driving Prevention and Deterrence Grant Program to
award grants to entities that provide harm reduction services and deter alcohol-related
impaired driving; and
The Colorado Tribal Alcohol Impact Grant Program to award grants to tribal governments.
The DOR may retain revenue from the fee to cover the administrative costs of collecting the fee.
The bill specifies that the remainder will be credited to the Colorado Alcohol Impact Fund as
follows (see Technical Note):
80 percent for the treatment and recovery grant program;
15 percent for the prevention grant program;
10 percent for the impaired driving grant program; and
2 percent for the tribal grants.
The enterprise is authorized to collect fees from self-distributing manufacturers and wholesale
distributers of alcohol who manufacture or distribute at least 100,000 proof gallons of spirits,
130,000 gallons of wine, or 186 million gallons of beer. The fee revenue is deposited into the
newly created Colorado Alcohol Impact Enterprise fund which is continuously appropriated to
the enterprise. The bill sets the fee as follows:
4.09¢ per gallon of malt liquor, apple wine, and hard cider;
3.67¢ per liter of wine; and
30.60¢ per liter of spirituous liquor.
Background
Enterprises. TABOR defines an enterprise as "a government-owned business authorized to issue
its own revenue bonds and receiving under ten percent of annual revenue in grants from all
Colorado state and local governments combined." Because the share of revenue that an
enterprise may receive from government sources is capped, enterprises are largely financially
independent of core government agencies. Additionally, enterprises cannot levy taxes. TABOR Page 3
May 1, 2024 SB 24-181
limits the amount of money that can be spent or saved by the state government and all local
governments within the state. However, revenue collected by enterprises is not subject to these
constraints.
State Revenue
The bill increases revenue to the new enterprise by approximately $20 million per year
beginning FY 2025-26. Over the first five years, the enterprise is estimated to collect about
$82 million, as the enterprise does not collect revenue in the first year.
Fee revenue is estimated based on the amount of liquor that has been subject to the current
liquor taxes in recent years, consistent with the March 2024 LCS forecast. The imposition of fees
at the level in the bill is not expected to decrease consumption relative to the levels expected
under current law. For revenue estimates beyond the March 2024 forecast period, consumption
is expected to increase at a rate of 2.5 percent per year, consistent with the historical trend.
Additionally, the fiscal note assumes that the fee will not change from the amount specified in
the bill. This estimate assumes that 65 percent of all alcohol sales are made by manufacturers
and distributers that are subject to the fee. Fees paid to the state enterprise are estimated below
and are exempt from TABOR.
Table 2
Fee Revenue Under SB 24-181
Fee FY 2025-26 FY 2026-27 FY 2030-31
Units
Malt Liquor, Apple Wine, and Hard Cider (gallons) 87,471,410 89,658,195 98,965,872
Wine (liters) 50,041,211 51,292,241 56,617,037
Spirituous Liquor (liters) 47,092,627 48,269,943 53,280,985
Revenue Impact
Malt Liquor, Apple Wine, and Hard Cider $3,577,581 $3,667,020 $4,047,704
Wine $1,836,512 $1,882,425 $2,077,845
Spirituous Liquor $14,410,344 $14,770,602 $16,303,981
Total Revenue $19,824,437 $20,320,047 $22,429,530
Gifts grants and donations. The bill potentially increases state revenue to the Colorado Alcohol
Impact Fund from gifts, grants, or donations; however, no sources have been identified at this
time. Gifts, grants, and donations are exempt from TABOR revenue limits.
Revenue bonds. The enterprise also has the authority to issue revenue bonds. If the enterprise
chooses to issue revenue bonds, revenue will increase by more than what is shown above. This
revenue is not subject to TABOR.
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May 1, 2024 SB 24-181
State Transfers
The bill requires a one-time transfer of $650,000 from the General Fund to the Colorado Alcohol
Impact Enterprise Fund in FY 2024-25. The transfer is a loan to the enterprise, and must be
repaid with interest to the General Fund by July 1, 2027. The fiscal note assumes that the loan
will be repaid in equal installments in FY 2025-26 and FY 2026-27 with an interest rate of
approximately 4.5 percent. The loan repayment is expected to be approximately $369,000 per
year.
State Expenditures
The bill increases expenditures by $240,000 in FY 2024-25 paid from the General Fund and the
Colorado Alcohol Impact Fund and, in future years, by around $20 million per year paid from the
Colorado Alcohol Impact Fund. Costs will shift in years when a required audit is scheduled.
These costs are summarized in Table 3 and discussed below.
Table 3
Expenditures Under SB 24-181
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Audit Years
FY 2030-31
Behavioral Health Administration
Personal Services $98,267 $378,159 $378,159 $378,159
Operating Expenses $1,280 $5,120 $5,120 $5,120
Capital Outlay Costs $6,670 $20,010 - -
Legal Services $57,609 $19,203 $19,203 $19,203
Meeting Costs $10,852 $10,852 $10,852 $10,852
Treatment and Recovery Grant
Program
- $14,156,312 $14,541,822 $16,077,137
Prevention Grant Program - $2,654,308 $2,726,591 $3,014,463
Impaired Driving Grant Program - $1,769,539 $1,817,728 $2,009,642
Tribal Alcohol Impact Grant - $353,908 $363,546 $401,928
Centrally Appropriated Costs
1
$20,524 $80,698 $80,698 $80,698
FTE – Personal Services 1.0 FTE 4.0 FTE 4.0 FTE 4.0 FTE
FTE – Legal Services 0.3 FTE 0.1 FTE 0.1 FTE 0.1 FTE
BHA Subtotal $195,202 $19,448,109 $19,943,719 $21,997,202
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May 1, 2024 SB 24-181
Table 3
Expenditures Under SB 24-181 (Cont.)
Budget Year
FY 2024-25
Out Year
FY 2025-26
Out Year
FY 2026-27
Audit Years
FY 2030-31
Department of Revenue
Computer Programing and Testing $33,582 - - -
Data Reporting $7,392 $7,328 $7,328 $7,328
DOR Subtotal $40,974 $7,328 $7,328 $7,328
Office of the State Auditor
Enterprise Audit
- - - $425,000
FTE – State Auditor - - - 3.7 FTE
Dept. Subtotal - - - $425,000
Total Cost $236,176 $19,455,437 $19,951,047 $22,429,530
Total FTE 1.3 FTE 4.1 FTE 4.1 FTE 7.8 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Behavioral Health Administration. The bill increases expenditures to set up the enterprise and
within the new enterprise to operate the new grant programs. Costs associated with these
efforts are detailed below.
Staffing. Once fully implemented, the BHA requires 4.0 FTE. This includes:
• 1.0 FTE program manager to lead the enterprise, develop the programs, and
supervise enterprise employees;
• 1.0 FTE to administer the grant programs; and
• 2.0 FTE to manage the revenue collections in line with the bill and current law
requirements, maintain the necessary documentation for the state auditor, and to
perform other accounting and budget functions for the enterprise.
Of the staff identified above, the program manager is assumed to start on July 1, 2024, to
help establish the enterprise, and the remaining staff are assumed to start on July 1, 2025.
Meeting costs. The BHA requires funds to host the board and compensate its members. It is
assumed that board will meet once a quarter Administrative and support costs for the
workgroup are estimated to be $2,713 per meeting. Member compensation is estimated at
$2,123 per meeting, assuming that members not associated with a state agency will be
eligible for compensation. Other costs include venue and catering.
Legal services. The BHA requires 450 hours of legal services in FY 2024-25 and 150 hours in
future years to assist with rulemaking so that revenue collection aligns with existing law.
Legal services are provided by the Department of Law at a rate of $128.02 per hour. Page 6
May 1, 2024 SB 24-181
Grant programs. Once the above costs are accounted for the remainder of the Colorado
Alcohol Impact Fund will be distributed to three grant programs. Because the amounts
prescribed by the bill equal over 100 percent (see Technical Note), the fiscal note assumes
remaining funds will be allocated as follows: 75 percent to the Treatment and Recovery
Grant Program; 14 percent to the Prevention Grant Program; 9 percent to the Impaired
Driving Grant Program; and 2 percent to the Tribal Alcohol Impact Grant Program.
Department of Revenue. The bill increases expenditures in the DOR to administer the new fee.
Computer programming and testing. This bill requires one-time expenditures of $33,582
in FY 2024-25 to program, test, and update database fields in the DOR's GenTax.
Programming costs are $21,785, representing 94 hours of contract programming in GenTax
at a rate of $232 per hour. Costs for testing at the department include $8,085 for 231 hours
of innovation, strategy, and delivery programming support at a rate of $35 per hour, and
$3,712 for 116 hours of user acceptance testing at a rate of $32 per hour.
Data reporting. The Office of Research and Analysis must make changes in the related tax
reports so that the department can access and document statistics related to the new fee.
These costs are estimated at 231 hours for data management and reporting at $32 per hour,
with ongoing costs of 229 hours thereafter.
State Auditor. The state auditor requires 3.7 FTE and $425,000 starting in FY 2030-31 and every
four years thereafter, assuming the state auditor does not exercise authority to change the
frequency. This will be appropriated to the DOR and reappropriated to the state auditor.
Governor’s Office. Workload will minimally increase for the Governor’s Office of Boards and
Commissions to make the required appointment under the bill. This work can be accomplished
within existing appropriations.
Technical Note
The allocations to various grant programs specified in the bill sum to over 100 percent of the
Colorado Alcohol Impact Fund. Since the enterprise has the ability to adjust the allocations, the
fiscal note assumes that it will do so to remain within 100 percent of the fund and maintain the
relative amounts between the grant programs.
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 $40,974 to the Department of
Revenue. Additionally, $57,609 is reappropriated from the Colorado Alcohol Impact Enterprise
Fund to the Department of Law with an additional 0.3 FTE. Page 7
May 1, 2024 SB 24-181
State and Local Government Contacts
Behavioral Health Administration Law Revenue
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.