SB 25-081
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-081: TREASURER'S OFFICE
Prime Sponsors:
Sen. Bridges; Amabile
Rep. Bird
Published for: Senate Finance
Drafting number: LLS 25-0292
Fiscal Analyst:
Brendan Fung, 303-866-4781
brendan.fung@coleg.gov
Version: Initial Fiscal Note
Date: February 13, 2025
Fiscal note status: This fiscal note reflects the introduced bill.
Summary Information
Overview. The bill creates the Building Urgent Infrastructure and Leveraging Dollars (BUILD) Authority
and revises state capital financing standards.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures
State Revenue
Statutory Public Entity
Appropriations. For FY 2025-26, the bill requires an appropriation of $26,614 to the Department of the
Treasury.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $34,010 $9,488
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.4 FTE 0.1 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
February 13, 2025 SB 25-081
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $26,614 $7,598
Cash Funds $0 $0
Federal Funds $0 $0
Centrally Appropriated $7,396 $1,890
Total Expenditures $34,010 $9,488
Total FTE 0.4 FTE 0.1 FTE
Summary of Legislation
The bill creates the Building Urgent Infrastructure and Leveraging Dollars (BUILD) Authority as
an independent statutory public entity to leverage capital and finance certain infrastructure
projects related to transportation, energy, water systems, and public facilities. It also modifies
the State Public Financing Cash Fund and state capital financing options.
Building Urgent Infrastructure and Leveraging Dollars Authority
Governance
The authority is governed by a nine-member board of directors, which includes the State
Treasurer, the State Architect, and the Chair of the General Assembly’s Capital Development
Committee (CDC), among others. The board has the power to:
issue tax-exempt bonds payable solely by the authority;
enter into partnerships and seek federal matching funds to finance projects;
negotiate interest rate exchange agreements and credit enhancements;
levy fees and charges on state agencies for reimbursement; and
invest money held in reserve or in securities, among other things.
The bill creates the BUILD Authority Operational Fund to support administrative functions.
Bonds
The bill establishes the terms and requirements for the authority to issue and sell bonds to fund
projects. Additionally, the BUILD Authority Bonding Fund is created to pay principal and interest
on bonds issue. All income and assets, including real property and bonds, are exempt from state
and local income, property, and sales and use taxes. Page 3
February 13, 2025 SB 25-081
Infrastructure and Long-Term Development Assistance Program
The bill creates the Infrastructure and Long-Term Development Assistance Program and requires
the authority to administer the program, develop policies, and determine an application process
for eligible infrastructure projects. To be considered for financing, an applicant must submit an
application in accordance with the authority’s prescribed procedures. The authority must
consider an applicant’s financial contribution toward a project, long-term commitments to hiring
local residents, presence of a project labor agreement, and engagement with under-represented
communities.
Additionally, the bill creates the Eligible Project Revolving Fund to administer the program.
Reporting
Starting September 2026, and each year thereafter, the authority must submit a report to the
General Assembly, the Governor, and the CDC outlining its activities as well as operating and
financial statements from the previous fiscal year.
State Capital Financing
State Public Financing Cash Fund
Current law requires any debts incurred or bonds issued on behalf of the state to include an
issuance fee of up to $100,000 or two percent of the total borrowed amount, whichever is less.
This fee is credited into the State Public Financing Cash Fund to reimburse the State Treasurer
for administration of the debt or bond and other activities. The bill removes the upper limit on
the issuance fee amount and the requirement that the bond counsel approve reimbursements.
Security Tokens
The bill permits the State Treasurer to use a security token offering for state capital financing,
and adopt rules to implement this process. Security tokens are defined in statute as digital,
liquid contracts made verifiable and secure using blockchain technology that establish an
owner’s right to a fraction of a financial asset, such as a stock, bond, or certificate.
Assumptions
The bill allows the authority to generate revenue from a variety of sources; however, a specific
source of funding has not been identified at this time and will depend on future decisions and
business planning by the authority board. As a result, the fiscal note assumes that start up costs
in the Department of the Treasury are paid from the General Fund. Once funding is secured, the
fiscal note assumes that the authority’s administrative costs, and costs in the Department of the
Treasury will be paid from the BUILD Operational Fund.
Page 4
February 13, 2025 SB 25-081
As a statutorily created public entity, the authority is not entitled to legal services provided by
the Department of Law; however, the bill permits the authority to contract with state agencies to
perform duties and functions. The fiscal note assumes that the authority will use outside general
counsel, rather than legal services provided by the Department of Law. Similarly, the authority
may contract with the Department of Personnel and Administration for administrative services.
The fiscal note assumes the authority will manage their own administration.
The Office of the State Architect in the Department of Personnel and Administration (DPA)
oversees state-funded construction projects and enforces policies related to project labor
agreements (PLA). The bill requires that the authority review financing applications and consider
whether a project has a PLA. The fiscal note assumes that the state can use a blanket PLA for
multiple public projects, rather than one for each individual project. If the note assumes the
latter, expenditures in DPA will increase from additional staffing costs to review, negotiate, and
enforce separate PLAs for each project.
State Revenue
The bill increases revenue to the Department of the Treasury from issuance fees to the extent
that reimbursement rates from borrowed money exceeds current limits of $100,000 or two
percent of the total borrowed amount. This fee is credited into the State Public Financing Cash
Fund in the Department of the Treasury and is not subject to TABOR.
The bill may also reduce state revenue from income, sales, and use tax. This revenue impact will
depend on the actions taken by the authority and the projects and transactions that would have
otherwise occurred under current law, and thus cannot be estimated.
State Expenditures
The bill increases state expenditures by about $34,000 in FY 2025-26 and $9,500 in FY 2026-27
and ongoing. These costs will be incurred in the Department of the Treasury and the Legislative
Department as shown in Table 2, and described in the sections below. Costs are paid from the
General Fund. The bill also minimally affects workload in the DPA and may increase expenditures
in the Department of Law.
Table 2
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Department of the Treasury $34,010 $8,503
Legislative Department $0 $985
Total Costs $34,010 $9,488 Page 5
February 13, 2025 SB 25-081
Department of the Treasury
The bill increases expenditures in the Department of the Treasury by about $34,000 in
FY 2025-26 and $8,500 in FY 2026-27 and ongoing, as shown in Table 2A below. In the first year,
the department requires 0.4 FTE Policy Analyst III to staff the board, hire a director, and assist
the State Treasurer with administrative functions. After the authority is established and
operating beginning in FY 2026-27, the department only requires 0.1 FTE to support the
responsibilities of the State Treasurer. See Assumptions Section above.
Workload in the department will also increase to adopt rules for using security tokens for capital
financing projects. This is expected to be minimal and no change in appropriations is required.
Table 2A
State Expenditures
Department of the Treasury
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $26,102 $6,526
Operating Expenses $512 $128
Centrally Appropriated Costs $7,396 $1,849
Total Costs $34,010 $8,503
Total FTE 0.4 FTE 0.1 FTE
Legislative Department
Starting in FY 2026-27, expenditures in the Legislative Department will increase by $985 per year
from two legislative members of the Capital Development Committee for per diem and expense
reimbursement costs that occur during the legislative interim. The fiscal note assumes that the
board will meet four times per year, with two occurring during the interim.
Department of Personnel and Administration
Workload in the DPA will increase for the Office of the State Architect to staff the board and
manage additional project labor agreements for public projects. This workload is expected to be
minimal and no change in appropriation is required. If the authority chooses to contract with
DPA for administrative services, the costs will increase, paid using revenue provided by the
authority.
Department of Law
If the authority chooses to contract with the Department of Law for legal services, costs and
workload will increase for the department, paid using money provided by the authority. Page 6
February 13, 2025 SB 25-081
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which may include
employee insurance, supplemental employee retirement payments, leased space, and indirect
cost assessments, are shown in the expenditure table(s) above.
Statutory Public Entity
The bill creates the BUILD Authority as a statutory public entity, which will be administered by an
appointed board. The authority may generate revenue from the issuance of bonds, bond
proceeds, fees and service charges, loan repayments, investment income, federal funds,
government entities, and gifts, grant and donations. The exact revenue streams and amount of
revenue to the authority will depend on future decisions by the board and cannot be estimated
at this time.
The authority will also incur operating and program expenditures, including staff costs,
computer systems, and costs related to the distribution of project financing. The fiscal note
assumes that these costs will be paid using bond revenue and other income generated by the
authority. However, as discussed in the State Expenditures section above, the initial costs for
convening of the board and hiring of an executive director are assumed to be handled by the
Department of the Treasury.
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 $26,614 to the Department of
the Treasury, and 0.4 FTE.
State and Local Government Contacts
Governor
Labor
Law
Legislative Council Staff
Personnel
Treasury
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.