SB 25-034 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-034: VOLUNTARY DO-NOT-SELL FIREARMS WAIVER Prime Sponsors: Sen. Kipp Rep. Boesenecker Published for: Senate State Affairs Drafting number: LLS 25-0082 Fiscal Analyst: Clayton Mayfield, 303-866-5851 clayton.mayfield@coleg.gov Version: Initial Fiscal Note Date: January 22, 2025 Fiscal note status: The fiscal note reflects the introduced bill. Summary Information Overview. The bill establishes a process for a person to voluntarily waive their right to purchase firearms and requires the Department of Public Safety to develop an online portal for these waivers. It also creates a related civil infraction. Types of impacts. The bill is projected to affect the following areas on an ongoing basis starting in FY 2025-26: State Revenue State Expenditures Local Government Appropriations. For FY 2025-26, the bill requires an appropriation of $209,853 to the Department of Public Safety. Table 1 State Fiscal Impacts Type of Impact Budget Year FY 2025-26 Out Year FY 2026-27 State Revenue $0 $0 State Expenditures (General Fund) $209,853 $26,000 Transferred Funds $0 $0 Change in TABOR Refunds $0 $0 Change in State FTE 0.0 FTE 0.0 FTE Page 2 January 22, 2025 SB 25-034 Summary of Legislation The bill establishes a process to allow a person to voluntarily waive their right to purchase a firearm. Waivers must be submitted to the Colorado Bureau of Investigation in the Department of Public Safety (CDPS). The CDPS must develop an online portal for waiver submission and verify the identity of persons submitting waivers. The CDPS must also update any state or federal computer-based systems used to identify prohibited purchasers of firearms to reflect the status of the waiver, such that when waivers are in effect, firearm transfers to a person with a waiver are denied. During waiver submission, a person may designate one or more contact persons. The CDPS must notify contact persons when a person with a waiver attempts to purchase a firearm, and if the person with a waiver revokes the waiver. Waivers may be revoked after filing with the CDPS. A waiver remains in effect for 30 days after the CDPS receives a revocation request, after which the CDPS must update relevant computer-based systems and destroy all records of the waiver. Finally, it is a civil infraction punishable by a fine of up to $25 for a person with a waiver in effect to attempt to purchase a firearm. 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 creates the new offense of unlawful attempted firearm purchase while subject to a voluntary waiver, a civil infraction. To form an estimate on the prevalence of this new crime, the fiscal note analyzed the existing offense of unlawful purchase of a firearm under the age of 21, a class 2 misdemeanor, as a comparable crime. From FY 2021-22 to FY 2023-24, one White male has been sentenced and convicted for this existing offense. Because the bill is not expected to have a tangible impact on criminal justice-related expenditures or revenue at the state or local levels, these potential impacts are not discussed further in this fiscal note. Visit leg.colorado.gov/fiscalnotes for more information about criminal justice costs in fiscal notes. State Expenditures The bill increases state expenditures in the CDPS by about $210,000 in FY 2025-26 and $26,000 in FY 2026-27 and ongoing. These costs, paid from the General Fund, are summarized in Table 2 and discussed below. Page 3 January 22, 2025 SB 25-034 Table 2 State Expenditures Department of Public Safety Cost Component Budget Year FY 2025-26 Out Year FY 2026-27 Waiver Portal $130,000 $26,000 OIT Project Management $79,853 $0 Total Costs $209,853 $26,000 Department of Public Safety The CDPS requires $210,000 in FY 2025-26 to pay a vendor for development and implementation of a waiver portal, and for payments to the Office of Information Technology (OIT) for project management services. Starting in FY 2026-27, the CDPS requires $26,000 for portal support and maintenance payments to a vendor. This amount is estimated to increase by 3 percent annually in future years. Workload in the CDPS will increase to actively use the portal and manage the waiver process, but this workload can be absorbed with existing resources and no additional appropriations are required for this effort. 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 a General Fund appropriation of $209,853 to the Department of Public Safety. Of this amount, $79,853 is reappropriated to the Office of Information Technology. State and Local Government Contacts District Attorneys Information Technology Judicial Public Safety Revenue 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.