SB 25-086
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-086: PROTECTIONS FOR USERS OF SOCIAL MEDIA
Prime Sponsors:
Sen. Frizell; Daugherty
Rep. Boesenecker; Hartsook
Published for: Senate Judiciary
Drafting number: LLS 25-0452
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@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 requires social media companies to publish information about their policies and
enforcement activities to protect users from certain content.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue
Minimal State Workload
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
January 29, 2025 SB 25-086
Summary of Legislation
The bill requires social media companies to follow certain protocols relating to their policies,
reports, and engagement with law enforcement.
Policies
Social media companies must publish up-to-date policies, including the process for a user to
report policy violations, a description of the enforcement and resolution process, and a
description of how the company restricts certain prohibited or illegal behavior (subject uses).
Upon discovering activity related to subject uses, a social media company must determine if the
activity violates its policies and take action as appropriate.
The bill specifies “subject uses” of social media as selling or advertising illicit substances, illegal
firearm sales, sex trafficking a minor, or handling sexually exploitative material.
Reporting
Social media companies must submit annual reports beginning in FY 2025-26, including two
reports to the Department of Law on the following:
reports of illegal activity, the kinds of illegal activity reported, and enforcement actions
taken; and
the number of Colorado-based users on the platform and information about subject uses
stemming from Colorado-based accounts.
Social media companies must also publish annual reports on how many minors use the
platform, how often and how long they use it, and how much they interact with content that
violates the company’s policies.
Enforcement
Social media companies must maintain a staffed hotline for communicating with state law
enforcement agencies related to search warrants. Any violation of the bill’s provisions by a social
media company is a deceptive trade practice under the Colorado Consumer Protection Act.
State Revenue
Beginning in FY 2025-26, the bill may increase state revenue from civil penalties or filing fees, as
outlined below.
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 Page 3
January 29, 2025 SB 25-086
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
Beginning in FY 2025-26, the bill minimally increases workload and may increase costs in the
Department of Law and Judicial Department.
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. In addition, the Department of Law will be required to receive the required
reports from social media companies, which will minimally increase staff time to review the
reports and respond to any questions or provide guidance to companies regarding the reports.
Judicial Department
The 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 social media companies will abide by the law and that any violation of the
legislation will result in 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.
Local Government
Similar to the state, to the extent district attorneys receive deceptive trade practice complaints
related to the new deceptive trade practice under the bill, workload will increase to investigate
complaints and seek relief when appropriate. It is assumed most such cases will be handled at
the state level by the Attorney General. Page 4
January 29, 2025 SB 25-086
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
District Attorneys
Information Technology
Judicial
Law
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.