HB 25-1010
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1010: PROHIBITING PRICE GOUGING IN SALES OF NECESSITIES
Prime Sponsors:
Rep. Zokaie; Brown
Sen. Weissman
Published for: House Business Affairs & Labor
Drafting number: LLS 25-0501
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: Initial Fiscal Note
Date: January 20, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill adds price gouging of necessities as an unfair and unconscionable act under Colorado
consumer protection laws.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Workload
State Revenue
Local Government
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
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January 20, 2025 HB 25-1010
Summary of Legislation
The bill adds price gouging of necessities as an unfair and unconscionable act under Colorado’s
consumer protection laws. Enforcement actions may be brought by the Attorney General or the
district attorney with appropriate jurisdiction. It also modifies the definition of necessities to
include good and services that are necessary for the health, safety, and welfare of consumers or
the general public.
State Revenue
The bill may increase state revenue from civil penalties or filings fees, as outlined below.
Civil Penalties
Under the Colorado Consumer Protection Act, a person engaging in an unfair and
unconscionable act may be subject to a civil penalty of up to $20,000 for each violation.
Additional penalties may be imposed for subsequent violations of a court order or injunction.
This revenue is classified as a damage award and not subject to TABOR. Given the uncertainty
about the number of cases that may be pursued by the Attorney General and district attorneys,
as well as the wide range in potential penalty amounts, the fiscal note cannot estimate the
potential impact of these civil penalties.
Filing Fees
The bill may increase revenue to the Judicial Department from an increase in civil case filings.
Revenue from filing fees is subject to TABOR.
State Expenditures
The bill increases workload and potentially costs in multiple state agencies.
Department of Law
Initially, workload in the Department of Law will increase to adopt rules to enforce the bill. To
the extent that complaints are filed or violations discovered, workload and potentially costs will
increase for the Department of Law to investigate and pursue legal action. The fiscal note
assumes that the department will review complaints under the bill and prioritize investigations
as necessary within the overall number of deceptive trade practice complaints and available
resources.
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January 20, 2025 HB 25-1010
Judicial Department
The trial courts in the Judicial Department may have an increase in cases filed under the
Colorado Consumer Protection Act from the addition of a new unfair and unconscionable act. It
is assumed that persons selling necessities will abide by the law and that any violation of the
legislation will result in minimal number of new cases. The fiscal note assumes that this work can
be accomplished within existing resources and that no change in appropriations is required.
Local Government
Similar to the state, to the extent district attorneys receive complaints related to the new
prohibitions under the bill, workload will increase to investigate complaints and seek relief when
appropriate. It is assumed most such cases will be handled at the state level by the Attorney
General.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, and applies to conduct occurring on or after that date.
State and Local Government Contacts
Law
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.