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 Appropriations
Drafting number: LLS 25-0419
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: First Revised Note
Date: March 21, 2025
Fiscal note status: This revised fiscal note reflects the introduced bill, as amended by the House Energy
and Environment Committee.
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 $42,284 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 $49,922 $46,706
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.4 FTE 0.5 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
March 21, 2025 HB 25-1202
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $42,284 $37,158
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $7,638 $9,548
Total Expenditures $49,922 $46,706
Total FTE 0.4 FTE 0.5 FTE
Summary of Legislation
The bill enacts the Mold Awareness and Education 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 Education Act
The bill directs the CDPHE to create a page on the department’s website that educates the
public on the health dangers of mold and the importance of remediating it from indoor
environments. The webpage must include:
information on the health dangers of mold;
mold testing and remediation methods, terminology, and industry standards; and
organizations and public agencies that can assist with testing and remediation.
The CDPHE must establish the webpage by July 1, 2026, and update it every five years.
Disclosure
The bill also requires the state’s approved Seller’s Property Disclosure to indicate whether a
property has mold, has been assessed for mold, or has been remediated of mold. The disclosure
must include any mold reports that were conducted on the property. Additionally, a lease
agreement for residential property must 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 the address for CDPHE’s mold education webpage.
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 21, 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. 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 $50,000 in FY 2025-26 and $47,000 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 $28,702 $35,878
Operating Expenses $512 $640
Capital Outlay Costs $6,670 $0
Webpage Development and Maintenance $6,400 $640
Centrally Appropriated Costs $7,638 $9,548
Total Costs $49,922 $46,706
Total FTE 0.4 FTE 0.5 FTE
Department of Public Health and Environment
Expenditures in the CDPHE will increase for staff and webpage development and maintenance,
as described below.
Staff
Starting in FY 2025-26, CDPHE requires 0.5 FTE Health Professional III to research and compile
the information required for the public awareness webpage, respond to inquiries and
complaints, and support the Board of Health with rulemaking. Staff costs for this FTE are
prorated in the first year based on the bill’s effective date.
Public Awareness Webpage
In FY 2025-26 only, expenditures will increase by $6,400 to create a new webpage and publish
information related to mold dangers, assessment, and remediation. This work is implemented by
the Office of Information Technology (OIT). Ongoing maintenance costs are estimated at
10 percent of total IT expenditures starting in FY 2026-27. Page 4
March 21, 2025 HB 25-1202
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.
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
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 $42,284 to the Department of
Public Health and Environment, and 0.5 FTE. Of this amount, $6,400 is reappropriated to the
Office of Information Technology.
Page 5
March 21, 2025 HB 25-1202
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.