HB 25-1159 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature HB 25-1159: CHILD SUPPORT COMMISSION REC OMMENDATIONS Prime Sponsors: Rep. English; Joseph Published for: House Health & Human Services Drafting number: LLS 25-0239 Fiscal Analyst: Shukria Maktabi, 303-866-4720 shukria.maktabi@coleg.gov Version: Initial Fiscal Note Date: February 10, 2025 Fiscal note status: The fiscal note reflects the introduced bill. Summary Information Overview. The bill implements the Child Support Commission’s recommendations, including making changes to payment guidelines and parenting time adjustments for calculating child support payments. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: State Expenditures Appropriations. For FY 2025-26, the bill requires total appropriations of $634,330 to multiple state agencies. Table 1 State Fiscal Impacts Type of Impact Budget Year FY 2025-26 Out Year FY 2026-27 State Revenue $0 $0 State Expenditures $634,330 $228,760 Transferred Funds $0 $0 Change in TABOR Refunds $0 $0 Change in State FTE 0.0 FTE 0.0 FTE Page 2 February 10, 2025 HB 25-1159 Table 1A State Expenditures Fund Source Budget Year FY 2025-26 Out Year FY 2026-27 General Fund $543,745 $228,760 Cash Funds $0 $0 Federal Funds $90,585 $0 Centrally Appropriated $0 $0 Total Expenditures $634,330 $228,760 Total FTE 0.0 FTE 0.0 FTE Summary of Legislation The bill makes changes to the child support system that were recommended by the Colorado Child Support Commission, including: changing eligibility for the low-income adjustment from below the current monthly income level of $1,500 to an amount that is based on the state minimum wage (self-support reserve); permitting low-income obligors to retain income up to the self-support reserve threshold and allocate 80 to 95 percent of the remaining income towards child support (based upon the number of children). If the calculated amount falls below the reduced low-income adjustment amount or above the basic schedule amount, the corresponding amount will apply; updating the basic child support obligation schedule; modifying the parenting time adjustment to account for all overnights a parent has with a child and implementing the corresponding parenting time adjustment table; requiring courts to enter child support orders for every dissolution of marriage proceeding and allowing courts to appoint Child Family Investigators (CFI) in juvenile proceedings that involve the allocation of parental responsibilities; and making other changes that clarify requirements for independent contractor reporting, extraordinary medical expenses for children, and factors considered for retroactive child support and income tax dependency. Page 3 February 10, 2025 HB 25-1159 State Expenditures The bill increases state expenditures by $634,000 in FY 2025-26 and $229,000 in FY 2026-27. These costs will be incurred in the Judicial Department and the Department of Human Services as shown in Table 2 and described in the sections below. Costs are paid from the General Fund and federal funds. Table 2 State Expenditures All Departments Department Budget Year FY 2025-26 Out Year FY 2026-27 Judicial Department $497,080 $228,760 Department of Human Services $137,250 $0 Total Costs $634,330 $228,760 Judicial Department Costs will increase in the Judicial Department for additional CFIs and system updates, as well as increased workload to incorporate the new changes in the child support system. Additional Child Family Investigators Costs will increase by approximately $229,000 annually beginning in FY 2025-26 for new CFI appointments in juvenile cases involving the allocation of parental responsibilities, including dependency and neglect cases. Currently, CFIs are only appointed in domestic relations matters. Expanding their role to juvenile cases is expected to increase the number of appointments, which are typically funded by the Judicial Department. The Judicial Department paid for CFI appointments in about 3 percent of domestic relations cases. Assuming a similar rate for juvenile cases, an estimated 133 additional CFI appointments would be made each year (3 percent x an average of 4,428 juvenile cases annually). Each CFI appointment is estimated to cost an average of $1,720. System Update The Judicial Department will have one-time costs of $268,000 to contract for updates to its system for managing court-appointed counsel. Specifically, this work will require about three months of contractor time to update billing forms and related information tracking. Page 4 February 10, 2025 HB 25-1159 Updated Child Support Processes The trial courts in the Judicial Department will have a minimal increase in workload to apply the new guideline schedules and calculations, as well as incorporate changes related to tax dependency considerations, extraordinary medical expenses for disabled children, and retroactive child support. Workload will also increase to enter a child support order in all legal separation cases involving children, which currently may not always have an order due to agreements or net zero calculations. This additional workload is expected to be minimal and manageable within current resources. Table 2A State Expenditures Judicial Department Cost Component Budget Year FY 2025-26 Out Year FY 2026-27 Additional CFI Appointments $228,760 $228,760 System Updates $268,320 $0 Total Costs $497,080 $228,760 Department of Human Services In FY 2025-26, the Department requires one-time costs of $137,000 to update the Automated Child Support Enforcement System with new child support schedules, payment adjustments, and income calculations. Costs include all development and system testing, and will be completed by the Office of Information Technology. Federal funds will cover 35 percent of the costs. Table 2B State Expenditures Department of Human Services Cost Component Budget Year FY 2025-26 Out Year FY 2026-27 System Updates $137,250 $0 Total Costs $137,250 $0 Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature; except that Section 7 and 12 take effect on February 1, 2026, and certain parts of Section 2 take effect on March 1, 2026. Page 5 February 10, 2025 HB 25-1159 State Appropriations For FY 2025-26, the bill requires total appropriations of $634,330, including: $497,080 to the Judicial Department from the General Fund; and $137,250 to the Department of Human Services, with $46,665 from the General Fund and $90,585 from federal funds. Funds will be reappropriated to the Office of Information Technology. State and Local Government Contacts Counties Human Services Judicial The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each fiscal year. 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