SB 25-157 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-157: DECEPTIVE TRADE PRACTICE SIGNIFICANT IMPACT STANDARD Prime Sponsors: Sen. Weissman; Gonzales J. Rep. Mabrey; Titone Published for: Senate Business, Labor, & Tech. Drafting number: LLS 25-0554 Fiscal Analyst: Matt Bishop, 303-866-4796 matt.bishop@coleg.gov Version: Initial Fiscal Note Date: February 11, 2025 Fiscal note status: The fiscal note reflects the introduced bill. Summary Information Overview. The bill clarifies standards for enforcing unfair or deceptive trade practices. Types of impacts. The bill is projected to affect the following areas on an ongoing basis: Minimal 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 February 11, 2025 SB 25-157 Summary of Legislation Under current law, deceptive trade practices must significantly affect the public in order to be violations of the Colorado Consumer Protection Act. The bill establishes standards for what kinds of activity constitute a significant impact and what does not. Background 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. Cases are filed in trial courts, resulting in filing fees. Revenue from filing fees is subject to TABOR. Workload associated with deceptive trade practices is handled by the Department of Law. State Revenue and Expenditures The bill has a minimal, indeterminate effect on state revenue and expenditures. Clarifying the evidence required to establish that a deceptive trade practice has occurred may result in some additional cases being filed, whereas other cases that would have been filed under current law may no longer occur. The overall impact on the Department of Law and the Judicial Department is expected to be minimal and no change in appropriations is required. Local Government Similar to the state, to the extent district attorneys receive a different number of deceptive trade practice complaints, workload will increase or decrease. It is assumed most such cases will be handled at the state level by the Department of Law. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State and Local Government Contacts 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.