HB 25-1239
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1239: CO ANTI-DISCRIMINATION ACT
Prime Sponsors:
Rep. Zokaie
Sen. Daugherty; Weissman
Published for: House Second Reading
Drafting number: LLS 25-0502
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: First Revised Note
Date: March 25, 2025
Fiscal note status: This revised fiscal note reflects the introduced bill, as amended by the House Judiciary
Committee and House Appropriations Committee.
Summary Information
Overview. The bill expands remedies for individuals who experience discriminatory practices related to
public accommodations.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Revenue State Expenditure
Appropriations. For FY 2025-26, the bill requires and includes a reappropriation of $100,305 from the
Department of Personnel and Administration to the Department of Law.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
State Revenue $0 $0 $0
State Expenditures $100,305 $222,431 $222,431
Transferred Funds $0 $0 $0
Change in TABOR Refunds $0 $0 $0
Change in State FTE 0.4 FTE 0.4 FTE 0.4 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
March 25, 2025 HB 25-1239
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
1
Out Year
FY 2027-28
General Fund $0 $0 $0
Cash Funds $100,305 $222,431 $222,431
Federal Funds $0 $0 $0
Centrally Appropriated $0 $0 $0
Total Expenditures $100,305 $222,431 $222,431
Total FTE 0.4 FTE 0.4 FTE 0.4 FTE
1
Out-year costs will be paid using a mix of General Fund, cash funds, and federal funds reappropriated
to the DPA from affected state agencies.
Summary of Legislation
The bill modifies the Colorado Anti-Discrimination Act by consolidating and expanding remedies
for individuals facing discrimination, particularly those with disabilities. Specifically, it:
permits all protected classes to seek attorney’s fees and costs, actual monetary damages,
noneconomic damages of up to $50,000, and fines of $5,000 per violation;
reduces noneconomic damages by 50 percent if a defendant corrects the violation within
120 days; and
conforms adjudication standards with the federal American Disabilities Act.
Background
The State of Colorado owns more than 9,000 properties, at least 1,400 of which were built prior
to the Americans with Disabilities Act (ADA) of 1991. The Office of the State Architect (OSA) in
the Department of Personnel and Administration (DPA) considers ADA upgrades through annual
controlled maintenance funding at one percent of each state budget, which is at the discretion
of the General Assembly to fund. In order to fund capital construction within a shorter
timeframe, the OSA can request for emergency controlled maintenance.
The Division of Risk Management in the DPA oversees the state’s response to liability claims and
lawsuits stemming from allegations of negligence by state government or state employees
related to such occurrences as public accommodations.
The Colorado Civil Rights Division (CCRD) in the Department of Regulatory Agencies (DORA)
enforces the state’s anti-discrimination laws in the areas of employment, housing, and public
accommodations. In public accommodations matters, individuals who believe they have been
discriminated against have 60 days from the act of alleged discrimination to file a complaint
with the division. Page 3
March 25, 2025 HB 25-1239
Assumptions
The bill expands the allowable compensatory damages for prevailing plaintiffs in public
accommodations discrimination cases, which is expected to increase the number of parties that
choose to file suit against the state rather than seek administrative relief or file in federal court.
In the past eight years, 22 public accommodations lawsuits were brought against the state. The
fiscal note assumes that the state will defend three additional lawsuits annually under the bill.
State Revenue
Starting in FY 2025-26, the bill may increase state revenue from civil penalties and court filing
fees by a minimal amount.
Civil Penalties
Under the bill, a person committing a discriminatory practice is subject to a civil penalty of up to
$5,000 per violation. 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
Starting in FY 2025-26, the bill increases expenditures in the DPA and minimally increases
workload in DORA and the Judicial Department, as described below.
State Expenditures
Department of Personnel and Administration
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Settlements $0 $5,000 $5,000
Noneconomic Damages $0 $50,000 $50,000
Attorney’s Fee Awards $0 $67,126 $67,126
Legal Services $100,305 $100,305 $100,305
Total Costs $100,305 $222,431 $222,431
Total FTE – Legal Services 0.4 FTE 0.4 FTE 0.4 FTE Page 4
March 25, 2025 HB 25-1239
Department of Personnel and Administration
Expenditures in the DPA will increase by about $100,000 in FY 2025-26 and $222,000 in future
years from litigation and risk management costs. The state’s actual costs will depend on a
number of factors, including the number and complexity of cases, outcomes, and the timing of
cases and judgements. Capital construction costs may also increase.
State Litigation and Risk Impacts
The bill is expected to increase litigation and risk management costs to the state from additional
discrimination lawsuits. If such cases occur, state agencies and institutions of higher education
will have increased costs for legal services, provided by the Department of Law. Depending on
the outcome of any cases, settlement or liability payments may be required from the Risk
Management Fund. The Risk Management Fund maintains a fund reserve that is comprised of
payments made by state agencies for legal services and risk management through common
policy billings based on costs incurred in prior years.
In some cases, litigation and risk management costs resulting from legislation can be paid using
reserve funds, which are continuously appropriated to the DPA. When costs are estimated to be
significant, however, the DPA requires an initial General Fund appropriation to ensure solvency
of the Risk Management Fund until common policy billing to state agencies can be adjusted.
The bill is expected to increase litigation and risk management costs in the DPA by about
$100,000 in FY 2025-26 and $222,000 in future years from three additional public
accommodations discrimination lawsuits annually. Based on these estimated costs and the
factors identified above, it is assumed that costs under the bill can be paid from the Risk
Management Fund and no immediate change in appropriation is required.
Capital Construction
Expenditures in the Office of the State Architect may increase if the state corrects violations
regarding building accessibility through a request for emergency controlled maintenance. The
exact amount of any future capital construction costs depends on the number of lawsuits, scale
of the correction, construction and labor costs, and various other factors; therefore, changes to
state expenditures cannot be estimated. It is assumed that any required work will be addressed
through the annual budget process.
Department Regulatory Agencies
Starting in FY 2025-26, workload in DORA will minimally increase to investigate and resolve
additional discrimination complaints filed with the CCRD. This workload is expected to be
minimal and no appropriation is required.
Judicial Department
Trial courts in the Judicial Department will experience a minimal workload increase to respond
to civil case filings. No change in appropriations is required. Page 5
March 25, 2025 HB 25-1239
Local Government
Similar to the state, local governments will likely experience an increase in legal and liability
related costs. Impacts will vary by jurisdiction and have not been estimated.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
State Appropriations
For FY 2025-26, the bill requires and includes a reappropriation of $100,305 from the Risk
Management Fund in the Department of Personnel and Administration to the Legal Services
Cash Fund in the Department of Law, and 0.4 FTE.
The Risk Management Fund is continuously appropriated to the DPA, so no further
appropriation is required.
State and Local Government Contacts
Judicial
Law
Personnel
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.