HB 25-1203 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature HB 25-1203: MISBRANDING CULTIVATED MEAT PRODUCTS AS MEAT Prime Sponsors: Rep. Winter T.; McCormick Sen. Pelton R.; Mullica Published for: House Ag., Water & Natural Res. Drafting number: LLS 25-0830 Fiscal Analyst: Alexa Kelly, 303-866-3469 alexa.kelly@coleg.gov Version: Initial Fiscal Note Date: February 21, 2025 Fiscal note status: This fiscal note reflects the introduced bill. Summary Information Overview. The bill expands the definition of misbranded food to include any cell-cultivated meat not labeled as such or labeled as meat. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: Minimal State Revenue Minimal State Workload 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 Page 2 February 21, 2025 HB 25-1203 Summary of Legislation The bill prohibits food that is cell-cultivated, or contains cell-cultivated meat, from being branded as a meat product and requires it to be clearly labeled as cell-cultivated meat. The Colorado Department of Public Health and Environment (CDPHE) must inspect an inventory of food offered for sale at a processing plant and may issue a stop order if the department has reasonable cause to believe that the plant is in violation of the labeling requirements of the bill. If a violation is found, CDPHE may issue an embargo order, requiring the plant to dispose of any cell-cultivated meat. CDPHE, the Attorney General, or the local district attorney may petition the district court to enforce a stop or embargo order. Comparable Crime Analysis Legislative Council Staff is required to include certain information in the fiscal note for any bill that creates a new crime, changes the classification of an existing crime, or creates a new factual basis for an existing crime. The following section outlines crimes that are comparable to the offense in this bill and discusses assumptions on future rates of criminal convictions resulting from the bill. Prior Conviction Data and Assumptions This bill a new factual basis for the existing offense of misbranding food by failing to properly label food containing cell-cultivated meat. From FY 2021-22 to FY 2023-24, zero offenders have been sentenced and convicted for this offense; therefore, the fiscal note assumes that there will continue to be minimal or no additional criminal case filings or convictions for this offense under the bill. Visit leg.colorado.gov/fiscalnotes for more information about criminal justice costs in fiscal notes. State Revenue and Expenditures The overall impact on state revenue and expenditures across departments is expected to be minimal, as discussed below. Judicial Department Based on the assumptions above, this analysis assumes that there will be a minimal impact on state revenue and expenditures. Under the bill, criminal fines and court fees, which are subject to TABOR, may increase by a minimal amount. Similarly, any increase in workload and costs for the Judicial Department, including the trial courts, are assumed to be minimal and no change in appropriations is required. Page 3 February 21, 2025 HB 25-1203 Colorado Department of Public Health and Environment The CDPHE Manufactured Food Program will see a minimal increase in workload. The program currently inspects food manufacturing and storage operations, which includes routine food labeling review. Local Government Similar to the state, it is expected that any workload or cost increases for district attorneys to prosecute additional offenses under the bill will be minimal. District attorney offices and county jails are funded by counties. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed. The bill applies to food labeled or packaged after the effective date. State and Local Government Contacts District Attorneys Information Technology Judicial Law 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.