SB 25-169
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-169: RESTAURANT MEALS PROGRAM
Prime Sponsors:
Sen. Jodeh; Pelton R.
Rep. Zokaie
Published for: Senate Ag. & Natural Resources
Drafting number: LLS 25-0716
Fiscal Analyst:
John Armstrong, 303-866-6289
john.armstrong@coleg.gov
Version: Initial Fiscal Note
Date: February 27, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. Conditional on approval from the United States Department of Agriculture, the bill allows
participating restaurants to accept supplemental nutrition assistance program benefits as payment.
Types of impacts. The bill conditionally affects the following areas on an ongoing basis:
State Expenditures
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
State Revenue $0 $0 $0
State Expenditures $0 $252,512 $80,196
Transferred Funds $0 $0 $0
Change in TABOR Refunds $0 $0 $0
Change in State FTE 0.0 FTE 0.5 FTE 0.5 FTE
1
Fund sources for these impacts are shown in the table below. Page 2
February 27, 2025 SB 25-169
Table 1A
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
General Fund $0 $121,307 $35,149
Cash Funds $0 $0 $0
Federal Funds $0 $121,306 $35,148
Centrally Appropriated $0 $9,899 $9,899
Total Expenditures $0 $252,512 $80,196
Total FTE 0.0 FTE 0.5 FTE 0.5 FTE
Summary of Legislation
The bill requires the Department of Human Services (CDHS) to submit an application to the
United State Department of Agriculture (USDA) seeking approval of a program that would allow
Supplemental Nutrition Assistance Program (SNAP) recipients to use their benefits at
participating restaurants.
If approved by the USDA, CDHS must develop an implementation plan and conduct rulemaking
for administration of the program. Participating restaurants must by authorized by the USDA to
accept SNAP benefits and must be licensed by the state Department of Public Health and
Environment. CDHS may provide technical assistance to restaurants and contract with a third-
party vendor.
The bill requires CDHS to report to the legislature progress on implementing the program in
their 2027 SMART Act hearing.
State Expenditures
Conditional upon federal approval, the bill increases state expenditures in the CDHS by $253,000
in FY 2026-27 and $81,000 in FY 2027-28 and ongoing. These costs, split evenly between
General Fund and federal funds, are summarized in Table 2 and discussed below.
Page 3
February 27, 2025 SB 25-169
Table 2
State Expenditures
Department of Human Services
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Out Year
FY 2027-28
Personal Services $0 $39,657 $39,657
Operating Expenses $0 $640 $640
Capital Outlay Costs $0 $6,670 $0
Programming Costs $0 $113,146 $0
Vendor Fee $0 $82,500 $30,000
Centrally Appropriated Costs $0 $9,899 $9,899
Total Costs $0 $252,512 $80,196
Total FTE 0.0 FTE 0.5 FTE 0.5 FTE
Department of Human Services
Staff
Beginning in FY 2026-27, CDHS will require 0.5 FTE Social Services Specialist to implement the
bill. This position will provide outreach and technical assistance to restaurants who choose to
participate in the program, ensuring that restaurants can comply with reporting and accept
SNAP benefits. Standard capital outlay and operating costs are included.
Programming and Vendor Costs
CDHS will have costs of $113,146 to make updates to the Colorado Benefit Management System
to allow this new SNAP benefits. Programming costs are based on 852 hours of contractor time
at a rate of $132.80 per hour. Additionally, CDHS employs an external vendor to manage the
Electronic Benefits Transfer System. CDHS will have one-time costs of $70,000 in FY 2026-27 for
the vendor to update their system to pay restaurants, and then pay an ongoing monthly fee of
$2,500 to oversee these additional types of transactions. Costs in FY 2026-27 assume five
months of vendor fees.
Application Workload
In FY 2025-26, CDHS will have increased workload to submit the required application to the
USDA, conduct rulemaking and engage with stakeholders. This workload will be minimal and
can be accomplished within existing appropriations.
Page 4
February 27, 2025 SB 25-169
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.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
Agriculture Human Services
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.