SB 25-158
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-158: STATE AGENCY PROCUREMENT & DISPOSAL CERTAIN ITEMS
Prime Sponsors:
Sen. Sullivan; Gonzales J.
Rep. Froelich; Brown
Published for: Senate State Affairs
Drafting number: LLS 25-0380
Fiscal Analyst:
Matt Bishop, 303-866-4796
matt.bishop@coleg.gov
Version: Initial Fiscal Note
Date: February 14, 2025
Fiscal note status: The fiscal note reflects the introduced bill. This analysis is preliminary and will be
updated following further review and any additional information received.
Summary Information
Overview. The bill updates procurement requirements for firearms and related materials, and establishes
procedures for state agencies to dispose of firearms.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Expenditures Local Government
Appropriations. For FY 2025-26, the bill requires appropriations totaling $409,257 to multiple state
agencies.
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 $441,087 $427,915
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 1.7 FTE 1.9 FTE
1
Fund sources for these impacts are shown in the tables below.
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February 14, 2025 SB 25-158
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $283,793 $273,855
Cash Funds $125,734 $119,064
Federal Funds $0 $0
Centrally Appropriated $31,560 $34,996
Total Expenditures $441,087 $427,915
Total FTE 1.7 FTE 1.9 FTE
Summary of Legislation
The bill updates procurement requirements for firearms and related materials, and establishes
procedures for state agencies to dispose of firearms.
Firearms Procurement
When a state entity solicits a contract for the procurement of firearms, ammunition, or firearms
accessories, the bill requires the contractor to be licensed. The contractor must also provide
documentation on:
trace requests it has received from the U.S. Bureau of Alcohol, Tobacco, Firearms, and
Explosives;
any theft or loss from the contractor’s premises;
the most recent inspection report from the U.S. Bureau of Alcohol, Tobacco, Firearms, and
Explosives;
any violations discovered from any recent federal agency inspections and any corrective
actions the contractor has taken; and
any policies the contractor has to prevent, detect, and screen for illegal sales or thefts, and
assistance with law enforcement agencies.
Contractors bidding on state solicitations must affirm that they will not sell unserialized gun
build kits or firearm precursor parts through the duration of the contract.
Firearms Disposal
The bill requires law enforcement agencies to destroy and dispose of firearms that are retired,
damaged, declared surplus by the agency, acquired in a buyback program, voluntarily
surrendered, or otherwise in the agency’s possession but not in use, subject to an investigation,
or evidence in a criminal case. Each law enforcement agency must develop a firearms
destruction policy by September 5, 2025, and post the policy on its website. The firearms
destruction policy does not apply to stolen firearms, which must be returned to their owner
unless the owner does not respond to a notice that the firearm was recovered in a reasonable
timeframe. Page 3
February 14, 2025 SB 25-158
Background and Assumptions
Firearms have typical life cycles of five to ten years. When a law enforcement agency updates its
armory, it often trades in its used firearms for a credit against its purchase. While the trade-in
value varies with the type of firearm, it can result in about a 25 percent savings. The bill’s
requirement to destroy retired or damaged firearms prevents agencies from trading them in for
credits against future purposes.
The Department of Public Safety (CDPS) operates the state government’s only gun crusher. The
fiscal note assumes that other agencies will coordinate with CDPS to dispose of their retired or
damaged firearms as necessary, with minimal additional cost to the state.
State Expenditures
The bill increases state expenditures by about $440,000 in FY 2025-26 and $430,000 in
FY 2026-27. These costs will be incurred in the Department of Public Safety, the Department of
Natural Resources, and the Department of Corrections, as shown in Tables 2 through 2B and
described in the sections below. Costs are paid from various funds, as described below.
Table 2
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Department of Public Safety $160,789 $154,789
Department of Natural Resources $143,553 $135,371
Department of Corrections $135,745 $135,745
Total Costs $441,087 $426,403
Department of Public Safety
The bill increases workload in the department to develop and enforce procurement and
destruction policies, and the department will incur additional expenses to procure firearms and
equipment. CDPS houses both the Colorado State Patrol and the Colorado Bureau of
Investigation.
Staff
The department requires 1.0 FTE beginning in FY 2025-26 to develop procurement and
destruction policies, maintain an inventory of firearms, and other administrative tasks associated
with implementing the bill. Standard operating costs and capital outlay are included. Costs are
prorated in the first year for the bill’s effective date. Page 4
February 14, 2025 SB 25-158
Firearms and Equipment
The Colorado State Patrol and the Colorado Bureau of Investigation replace different types of
firearms on a regular schedule, consistent with industry standards. While these costs are
estimated at about $100,000 in FY 2025-26 and $85,000 in FY 2026-27, costs will increase
significantly in years when many firearms are replaced. For example, both pistols and rifles are
scheduled for replacement in FY 2033-34, and the estimated annual cost to cover lost trade-in
credits on firearms purchases that year is $1.1 million.
Table 2A
State Expenditures
Department of Public Safety
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $40,904 $51,130
Operating Expenses $1,024 $1,280
Capital Outlay Costs $6,670 $0
Firearms and Equipment $98,450 $84,700
Centrally Appropriated Costs $13,741 $17,177
Total Costs $160,789 $154,287
Total FTE 0.8 FTE 1.0 FTE
Department of Natural Resources
The department employs about 390 law enforcement officers who regularly carry firearms. It
requires additional staff for procurement policy and will incur additional costs to procure
firearms and equipment. The fiscal note assumes this expenditure will not drive a fee revenue
increase.
Staff
The department requires 0.9 FTE beginning in FY 2025-26 to develop procurement and
destruction policies, train other staff on the policies’ requirements, maintain an inventory of
firearms, and transport firearms for destruction and disposal. Standard operating costs, mileage
costs, and capital outlay are included. A higher workload in the first year is offset by the bill’s
effective date.
Firearms and Equipment
The department’s estimated annual cost to cover lost trade-in credits on firearms purchases is
$45,017 per year. Page 5
February 14, 2025 SB 25-158
Table 2B
State Expenditures
Department of Natural Resources
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $71,383 $71,383
Operating Expenses $2,664 $2,664
Capital Outlay Costs $6,670 $0
Firearms and Equipment $45,017 $45,017
Centrally Appropriated Costs $17,819 $17,819
Total Costs $143,553 $136,883
Total FTE 0.9 FTE 0.9 FTE
Department of Corrections
The department’s estimated annual cost to cover lost trade-in credits on firearms purchases is
$136,745 per year. Any workload impact is assumed to be minimal.
Other State Agencies
Other state agencies employing law enforcement personnel include the departments of Human
Services, Law, and Revenue, and institutions of higher education. The fiscal note has not yet
determined expenditure and workload impacts for these agencies.
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 include employee
insurance and supplemental employee retirement payments, are shown in the expenditure
tables above.
Local Government
Similar to state agencies, the bill increases expenditures for local government law enforcement
agencies to develop and administer procurement and destruction policies, and it increases the
cost of procuring firearms and equipment through the loss of trade-in credits.
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February 14, 2025 SB 25-158
Technical Note
The new procurement requirements put additional burdens on licensed firearms dealers that
fulfill law enforcement agency contracts. This may affect which vendors respond to solicitations,
and could impact the price, types of equipment, or timeline available to law enforcement
agencies.
The bill’s effective date and the September 5 deadline in the bill gives law enforcement agencies
about one month to adopt policies consistent with the bill’s requirements. This timeline may not
be feasible for some agencies, delaying the bill’s implementation.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die,
assuming no referendum petition is filed, except the procurement requirements take effect
January 1, 2026.
State Appropriations
For FY 2025-26, the bill requires the following General Fund appropriations:
$147, 048 to the Department of Public Safety, and 0.8 FTE; and
$136,745 to the Department of Corrections.
For FY 2025-26, the bill requires the following cash fund appropriations to the Department of
Natural Resources, and 0.9 FTE:
$81,727 from the Wildlife Cash Fund; and
$44,007 from the Parks and Outdoor Recreation Cash Fund.
State and Local Government Contacts
Corrections
Human Services
Law
Military Affairs
Municipalities
Natural Resources
Personnel and Administration
Public Safety
Sheriffs
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.