SB 25-058
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-058: INSURANCE REBATE REFORM MODEL ACT
Prime Sponsors:
Sen. Snyder
Published for: Senate Health & Human Services
Drafting number: LLS 25-0364
Fiscal Analyst:
Kristine McLaughlin, 303-866-4776
kristine.mclaughlin@coleg.gov
Version: Initial Fiscal Note
Date: January 29, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill allows insurance companies to offer discounted and promotional prices.
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
Page 2
January 29, 2025 SB 25-058
Summary of Legislation
Under current law, rebates that discount the price of insurance below what is stated in the
contract is a deceptive trade practice. The bill allows insurance companies to offer discounted
and promotional prices under the following conditions:
the discount is valued at under $250 or under $500 for raffle prizes;
the discount is offered on a service that is educational or contract-value enhancing; or
the discount is offered on a services that is not conditional on further purchases.
The bill directs the commissioner of the Division of Insurance in the Department of Regulatory
Agencies to adopt rules to implement these provisions, including adjusting financial limitations
to meet inflation.
State Revenue
The bill may decrease state revenue from violations of deceptive trade practice law in the
business of insurance, as outlined below.
Civil Penalties
A person committing a deceptive trade practice in the business of insurance may be subject to a
civil penalty of up to $3,000 for each act, with potentially higher penalties for willful or repeat
violations, up to a maximum annual penalty specified in statute. Given that insurers typically
comply with the requirements of the law, any potential reduction in criminal activity is expected
to be minimal. Penalty revenue is deposited into the General Fund and subject to TABOR.
Filing Fees
Similar to civil penalties, any reduction in revenue to the Judicial Department from filing fees is
expected to be minimal. Revenue from filing fees is subject to TABOR
State Expenditures
Starting in FY 2025-26, the bill minimally impacts workload in the Department of Regulatory
Agencies (DORA), the Office of Administrative Courts and the Judicial Department
Department of Regulatory Agencies
The bill minimally increases workload in DORA to promulgate rules in accordance with the bill.
This workload may be offset to the extent that fewer deceptive trade practice complaints are
filed or initiated by the commissioner. The department may require legal counsel, provided by
the Department of Law, related to rulemaking and ongoing administration of the provisions. Any
change in expenditures can be accomplished within existing appropriations. Page 3
January 29, 2025 SB 25-058
Hearings and Appeals
The Office of Administrative Courts in the Department of Personnel and Administration, and the
Court of Appeals in the Judicial Department may have a decrease in workload from fewer
deceptive trade practice related cases. It is assumed that insurers already abide by the law and
any change legislation will result in a minimal impact to overall caseload for these courts. 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.
State and Local Government Contacts
Health Care Policy and Financing 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.