HB 25-1295 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature HB 25-1295: FOOD TRUCK OPERATIONS Prime Sponsors: Rep. Rutinel Published for: House Trans., Hous., & Local Gov. Drafting number: LLS 25-0880 Fiscal Analyst: Brendan Fung, 303-866-4781 brendan.fung@coleg.gov Version: Initial Fiscal Note Date: March 10, 2025 Fiscal note status: This fiscal note reflects the introduced bill. Summary Information Overview. The bill requires local governments to issue reciprocal licenses and permits to food trucks operating across jurisdictions and prohibits certain zoning restrictions. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: 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 March 10, 2025 HB 25-1295 Summary of Legislation The bill establishes reciprocal licensing and permitting for food trucks operating across local jurisdictions and prohibits certain local zoning restrictions. Reciprocal Licensing The bill requires local governments to grant reciprocal business licenses, health permits, and fire safety permits to food truck operators that hold active licenses and permits from another local jurisdiction. Local governments must review applications for reciprocal licensing and permitting within 14 days and may deny an applicant under specific circumstances. Local governments may also levy application, licensing, and permitting fees on operators, not to exceed actual administrative costs to review the application or 25 percent of the cost of obtaining standard business, health, and fire safety licenses or permits, respectively. Licenses and permits may be revoked if operators violate local ordinances and regulations. Zoning The bill prohibits a local government from adopting or enforcing any regulation that: prohibits a food truck from operating in a zone that is permitted for food establishments; restricts the total number of days a food truck may be operated within a year; or prohibits the operation of a food truck within a certain distance of a food establishment. Current local government regulations that violate these provisions are deemed unenforceable. Local Government Starting in FY 2025-26, the bill may impact local government revenue and workload. If food truck operators apply for reciprocal licensing and permitting that otherwise would not have, revenue from additional fees and workload to review additional applications will increase. However, if those food truck operators would have applied for standard licensing and permitting regardless of the bill, there will be reduced workload, and revenue will decrease from reduced fee amounts. These impacts depend on actions taken by food truck operators and cannot be estimated. Local expenditures may also increase if jurisdictions have to review and update zoning regulations to comply with the bill. This workload is expected to be minimal. Effective Date The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no referendum petition is filed, and applies to applications submitted and conduct occurring on or after this date. Page 3 March 10, 2025 HB 25-1295 State and Local Government Contacts Counties Local Affairs Municipalities Special District Association 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.