HB 25-1202
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1202: INCREASING PUBLIC AWARENESS OF MOLD HEALTH EFFECTS
Prime Sponsors:
Rep. Paschal; Mabrey
Published for: House Energy & Environment
Drafting number: LLS 25-0419
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: Initial Fiscal Note
Date: March 3, 2025
Fiscal note status: This fiscal note reflects the introduced bill.
Summary Information
Overview. The bill enacts the Mold Awareness and Registration Act and requires certain disclosures in
residential property transactions.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures Minimal State Revenue
Appropriations. For FY 2025-26, the bill requires an appropriation of $493,036 to the Department of
Public Health and Environment.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $513,080 $287,416
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 1.0 FTE 1.3 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
March 3, 2025 HB 25-1202
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $493,036 $261,470
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $20,044 $25,946
Total Expenditures $513,080 $287,416
Total FTE 1.0 FTE 1.3 FTE
Summary of Legislation
The bill enacts the Mold Awareness and Registration Act in the Department of Public Health and
Environment (CDPHE) and establishes requirements for mold disclosure in the sale or rental of
residential property.
Mold Awareness and Registration Act
The bill directs the CDPHE to establish a public awareness campaign on the health dangers of
mold and the importance of remediating it from indoor environments. The campaign must
include:
the distribution of certain information pertaining to mold;
the publication of organizations and public agencies that can assist with testing and
remediation; and
a review of the existing and new treatments for identification and remediation.
The CDPHE must adopt rules for these provisions by January 1, 2026. The department must also
create a registry for individuals that provide mold assessment or remediation services, and
maintain a public database of registered providers.
Disclosure
The bill requires a contract of sale or lease agreement for residential property to include specific
disclosures about the health dangers of mold, any knowledge about the presence of mold in the
property, prior mold assessments and remediation, and public awareness campaign documents.
Background
The Indoor Air Quality Unit in the CDPHE studies and provides information on air pollution, air
quality, and ventilation in community-use buildings. These efforts are federally funded by the
Environmental Protection Agency, which directs the unit’s efforts. Through FY 2026-27, indoor
air quality funding is directed towards wildfire smoke preparedness and mitigation in indoor
environments. Currently, the department does not oversee any programs directly related to
mold exposure or remediation in indoor environments. Page 3
March 3, 2025 HB 25-1202
State Revenue
Starting in FY 2025-26, the bill may increase state revenue from filing fees to the Judicial
Department if real estate professionals do not disclose certain information in the sale or lease of
residential property, or if mold mitigation entities fail to comply with registration requirements.
It is assumed that these parties will abide by the law and that this impact will be minimal.
Revenue from filing fees is subject to TABOR.
State Expenditures
The bill increases state expenditures in the Department of Public Health and Environment by
about $514,000 in FY 2025-26 and $287,000 in future years. These costs, paid from the General
Fund, are summarized in Table 2 and discussed below. The bill also minimally affects workload
in the Department of Regulatory Agencies and the Judicial Department.
Table 2
State Expenditures
Department of Public Health and Environment
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $81,947 $105,344
Operating Expenses $1,280 $1,664
Capital Outlay Costs $6,670 $0
Travel Expenses $1,203 $2,286
Public Awareness Campaign $146,760 $46,000
Registration $230,000 $90,000
IT Maintenance and Contingency $25,176 $16,176
Centrally Appropriated Costs $20,044 $25,946
Total Costs $513,080 $287,416
Total FTE 1.0 FTE 1.3 FTE
Department of Public Health and Environment
Expenditures in the CDPHE will increase for staff, materials, information technology systems, the
public awareness campaign, and for a registration program as described below.
Staff
Starting in FY 2025-26, CDPHE requires 1.0 FTE Physical Scientist Researcher II to research and
compile the information required for the public awareness campaign, create and distribute
campaign materials, study mold assessment and remediation methods, generate the five-year
reviews, and support the Board of Health with rulemaking. This position also requires travel,
lodging, and per diem reimbursement. Staff costs for this FTE are prorated in the first year based
on the bill’s effective date. Page 4
March 3, 2025 HB 25-1202
The department also requires 0.2 FTE Marketing and Communications Specialist III and 0.1 FTE
Project Manager I to manage the paid media contract and perform annual maintenance on the
public-facing website and registration database, respectively. Staff costs for these FTE are
prorated in the first year based on a start date of January 1, 2026.
Public Awareness Campaign
The bill requires CDPHE to establish a public awareness campaign by creating electronic and
physical materials for public access. In FY 2025-26 only, expenditures will increase by about
$22,000 to create a new website and publish information related to mold dangers, assessment,
and remediation. Additionally, the department requires an estimated $79,000 in the first year
only to generate content and print materials, and an additional $46,000 to purchase advertising
space on an annual basis.
Registration
The bill also requires CDPHE to register entities that offer mold assessment and remediation,
and establish a publicly accessible database of these individuals. In FY 2025-26 only,
expenditures will increase by $140,000 to develop the database, with an additional $90,000 for
annual licensing fees.
IT Maintenance and Contingency
About $252,000 of costs for the website, database development, and licensing as identified
above will be implemented by the Office of Information Technology (OIT). Ongoing contingency
and maintenance costs are estimated at 10 percent of total IT expenditures starting in
FY 2025-26.
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 may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Other Agency Impacts
Starting in FY 2025-26, the bill minimally increases workload in DORA and the Judicial
Department, as described below.
Department of Regulatory Agencies
Workload in the Division of Real Estate in DORA will minimally increase to update contract
documents and mold disclosure forms for residential property transactions, conduct outreach to
real estate professionals, and respond to complaints. The department may require legal services,
provided by the Department of Law, related to rulemaking, implementation, and a rise in
complaints. This workload is expected to be minimal and no change in appropriations is
required. Page 5
March 3, 2025 HB 25-1202
Judicial Department
Similar to the State Revenue section above, trial courts in the Judicial Department may
experience an increase in workload if additional civil cases are filed. It is assumed that real estate
and mold mitigation professionals will abide by the law and that any violation of the legislation
will result in a minimal number of new cases. This effort can be accomplished within existing
appropriations.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, except that the provisions related to required disclosures by real
estate professionals take effect January 1, 2026.
State Appropriations
For FY 2025-26, the bill requires a General Fund appropriation of $493,036 to the Department of
Public Health and Environment, and 1.0 FTE. Of this amount, $276,936 is reappropriated to the
Office of Information Technology.
State and Local Government Contacts
Information Technology
Judicial
Law
Local Affairs
Public Health and Environment
Regulatory Agencies
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.