SB 25-016
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-016: UPDATING ESCROW DISBURSEMENT PRACTICES
Prime Sponsors:
Sen. Snyder
Rep. Boesenecker
Published for: House Finance
Drafting number: LLS 25-0366
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: First Revised Note
Date: February 19, 2025
Fiscal note status: This revised fiscal note reflects the reengrossed bill.
Summary Information
Overview. The bill modifies the types of funds that are available for immediate withdrawal in real estate
transactions.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Workload State Revenue
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
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February 19, 2025 SB 25-016
Summary of Legislation
The bill modifies the types of funds that are available for immediate withdrawal in real estate
transactions by:
limiting wire transfers to only those funds that are made through a funds-transfer service
operated by the Federal Reserve or a clearing house; and
permitting the use of funds credited to an escrow account.
The bill makes noncompliance with these provisions a deceptive trade practice.
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 Colorado Consumer Protection Act, a person committing a deceptive trade practice
may be subject to a civil penalty of up to $20,000 for each violation. Additional penalties may be
imposed for subsequent violations of a court order or injunction. 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
The bill may increase workload in the Department of Law and the Judicial Department beginning
in FY 2025-26, as described below.
Department of Law
Workload in the Department of Law will minimally increase to the extent that deceptive trade
practice complaints are filed. The department will review complaints under the bill and prioritize
investigations as necessary within the overall number of deceptive trade practice complaints and
available resources. Page 3
February 19, 2025 SB 25-016
Judicial Department
Trial courts in the Judicial Department may have an increase in cases filed under the Colorado
Consumer Protection Act from the addition of a new deceptive trade practice. It is assumed that
real estate professionals and banking institutions will abide by the law and that any violation of
the legislation will result in a minimal number of new cases. The fiscal note assumes that this can
be accomplished within existing resources and that no change in appropriations is required.
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 real estate transactions occurring on or after the
effective date.
State and Local Government Contacts
Judicial
Law
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.