SB 25-158 Fiscal Note Legislative Council Staff Nonpartisan Services for Colorado’s Legislature SB 25-158: STATE AGENCY PROCUREMENT & DISPO SAL CERTAIN ITEMS Prime Sponsors: Sen. Sullivan; Gonzales J. Rep. Froelich; Brown Published for: Senate Appropriations Drafting number: LLS 25-0380 Fiscal Analyst: Matt Bishop, 303-866-4796 matt.bishop@coleg.gov Version: First Revised Note Date: March 18, 2025 Fiscal note status: This revised fiscal note reflects the introduced bill, as amended by the Senate Judiciary Committee. 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: 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 March 18, 2025 SB 25-158 Summary of Legislation The bill updates procurement requirements for firearms and related materials. 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. State Expenditures The bill increases workload in state agencies that acquire firearms to develop procurement policies and to verify that vendors have submitted the required documentation. This workload is expected to be minimal and no change in appropriations is required. To the extent the new procurement requirements limit vendors responding to solicitations, this may impact the price, types of equipment, and delivery timeline for state agencies purchasing firearms, ammunition, or firearms accessories. It is assumed that any procurement-related impacts will be minimal, and that this will be addressed through the annual budget process if necessary. Local Government Similar to state agencies, the bill increases expenditures for local government law enforcement agencies to develop and administer procurement policies. Effective Date The bill takes effect January 1, 2026, assuming no referendum petition is filed. Page 3 March 18, 2025 SB 25-158 Departmental Difference The Department of Public Safety estimates that it requires about $70,000 and 1.0 FTE per year beginning in FY 2025-26 to implement the bill. This estimate assumes that it must track equipment serial numbers and perform other inventory management tasks. The fiscal note instead assumes that the only workload impact is associated with procurement activities, rather than ongoing inventory tracking, and that the department’s impacts will be minimal, similar to other agencies. State and Local Government Contacts Corrections Human Services Law Military Affairs Municipalities Natural Resources Personnel Public Safety Sheriffs 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.