Colorado § 1-40-105.5 - Initial fiscal impact statement - fiscal summary - definition.

§ 1-40-105.5. Initial fiscal impact statement - fiscal summary - definition.

(1) As used in this section, unless the context otherwise requires, "director" means the director of research of the legislative council of the general assembly.

(1.5) (a) For every initiated measure properly submitted to the title board, the director shall prepare a fiscal summary that consists of the following information:

(I) (A) A description of the measure's fiscal impact, including a preliminary estimate of any change in state and local government revenues, expenditures, taxes, or fiscal liabilities if implemented; and

(B) For a measure that proposes a tax increase, the director shall include in the description of the measure's fiscal impact a preliminary estimate of the maximum dollar amount of the change in state and local government revenue and fiscal year spending, as defined in section 20 (2)(e) of article X of the state constitution, for the first and, if phased in, final full fiscal year of the proposed tax increase;

(II) A qualitative description of the economic impacts of the measure if implemented;

(III) Any information from the initiated measure or a description of state and local government implementation in order to provide the information required in subsection (1.5)(a)(I) or (1.5)(a)(II) of this section;

(IV) The following statement: "This fiscal summary, prepared by the nonpartisan Director of Research of the Legislative Council, contains a preliminary assessment of the measure's fiscal impact. A full fiscal impact statement for this initiative is or will be available at www.ColoradoBlueBook.com.".

(V) If the measure would either increase or decrease the individual income tax rate, a table that shows the estimated effect of the change on the tax owed by individuals in different income categories. The table prepared by the director must have one column titled "income categories" that shows income categories, one column titled "current average income tax owed" that shows the average income tax owed by filers within each income category, one column titled "proposed average income tax owed" that shows the average income tax owed by filers within each income category if the initiated measure were to pass, and one column titled "proposed change in average income tax owed" that identifies the difference between the average income tax owed by filers within each income category if the initiated measure were to pass and if the initiated measure were not to pass. If the difference in the amount of tax owed shown in the table is an increase, the change must be expressed as a dollar amount preceded by a plus sign. If the change in the amount of tax owed shown in the table is a decrease, the change must be expressed as a dollar amount preceded by a negative sign. The director shall use the following income categories in creating the table:

(A) Federal adjusted gross income of twenty-five thousand dollars or less;

(B) Federal adjusted gross income greater than twenty-five thousand dollars and no more than fifty thousand dollars;

(C) Federal adjusted gross income greater than fifty thousand dollars and no more than one hundred thousand dollars;

(D) Federal adjusted gross income greater than one hundred thousand dollars and no more than two hundred thousand dollars;

(E) Federal adjusted gross income greater than two hundred thousand dollars and no more than five hundred thousand dollars;

(F) Federal adjusted gross income greater than five hundred thousand dollars and no more than one million dollars;

(G) Federal adjusted gross income greater than one million dollars and no more than two million dollars; and

(H) Federal adjusted gross income greater than two million dollars and no more than five million dollars.

(b) If an initiated measure has no fiscal impact as specified in subsection (1.5)(a)(I) or (1.5)(a)(II), then the director may include a statement that there is no fiscal impact under that provision.

(c) The director shall notify the secretary of state if the website for fiscal summaries changes, and in such case, the statement required in subsection (1.5)(a)(IV) must include the new website.

(d) The director shall provide the designated representatives of the proponents and the secretary of state with the fiscal summary no later than the time of the title board meeting at which the proposed initiated measure is to be considered. The title board shall not conduct a hearing on the fiscal summary at this title board meeting, and the director's fiscal summary is final, unless modified in accordance with section 1-40-107.

(2) (a) For every initiated measure for which the secretary of state has approved a petition section in accordance with section 1-40-113 (1)(a), the director shall prepare an initial fiscal impact statement, taking into consideration any fiscal impact estimate submitted by the designated representatives of the proponents or other interested person that is submitted in accordance with subsection (2)(b) of this section, the office of state planning and budgeting, and the department of local affairs. The director shall provide the designated representatives of the proponents and the secretary of state with a copy of the fiscal impact statement no later than fourteen days after the petition section was approved. The director shall also post the fiscal impact statement on the legislative council staff website on the same day that it is provided to the designated representatives of the proponents. The fiscal impact statement is not subject to review by the title board or the Colorado supreme court under this article 40.

(b) The designated representatives of the proponents or any other interested person may submit a fiscal impact estimate that includes an estimate of the effect the measure will have on state and local government revenues, expenditures, taxes, and fiscal liabilities if it is enacted, or a draft fiscal summary with the information specified in subsection (1.5) of this section. The director shall consider these estimates and the bases thereon when preparing the initial fiscal impact statement and shall consider the draft fiscal summary when preparing the fiscal summary.

(c) The initial fiscal impact statement must:

(I) Be substantially similar in form and content to the fiscal notes provided by the legislative council of the general assembly for legislative measures pursuant to section 2-2-322, C.R.S.;

(II) Indicate whether there is a fiscal impact for the initiated measure.

(III) (Deleted by amendment, L. 2020.)

(3) Repealed.

(4) The fiscal summary for a measure, as amended in accordance with section 1-40-107, must be included in a petition section as provided in section 1-40-110 (3).

(5) Neither the legislative council of the general assembly nor its executive committee may modify the initial fiscal impact statement prepared by the director. This restriction does not apply to the final fiscal impact statement prepared in accordance with section 1-40-124.5.

(6) At the same time the director posts the initial fiscal impact statement on the legislative council website, he or she shall also post on the website all fiscal impact estimates received in accordance with paragraph (b) of subsection (2) of this section.

Source: L. 2015: Entire section added, (HB 15-1057), ch. 198, p. 676, § 3, effective March 26, 2016. L. 2020: (1.5) added, (2)(a), (2)(b), (2)(c)(II), (2)(c)(III), and (4) amended, and (3) repealed, (HB 20-1416), ch. 232, p. 1122, § 2, effective November 1. Referred 2022: (1.5)(a)(III) amended and (1.5)(a)(V) added, Proposition GG, (SB 22-222), ch. 508, p. 4275, § 2, effective upon proclamation of the Governor, December 27, 2022. See L. 2023, p. 3636. L. 2025: (1.5)(a)(I) amended, (HB 25-1327), ch. 446, p. 2563, § 2, effective June 4.

Editor's note: This section was amended by SB 22-222. That bill contained a referendum clause and was approved by a vote of the registered electors of the state of Colorado on November 8, 2022. The amended version of this section took effect upon the proclamation of the Governor, December 27, 2022. The vote count for the measure was as follows:

YES: 1,704,757

NO: 665,476

ANNOTATION

Title board action regarding a fiscal impact statement abstract is subject to judicial review. When undertaking such review, the court will apply the same standard of review as it applies when reviewing the title board's single-subject and clear-title findings by: (1) giving great deference to the title board; (2) drawing all legitimate presumptions in favor of the title board's decision; and (3) only overturning the board's decision in a clear case. In the Matter of the Title, Ballot Title & Sub. Clause for 2017-2018 No. 4, 2017 CO 57, 395 P.3d 318.

Abstract need not contain hard numbers or other quantitative data regarding a proposed measure's expected economic impact when precise estimates of fiscal or other impacts cannot be determined. In the Matter of the Title, Ballot Title, & Sub. Clause for 2017-18 No. 4, 2017 CO 57, 395 P.3d 318; In re Proposed Ballot Initiative 2019-2020 No. 3 "State Fiscal Policy", 2019 CO 107, 454 P.3d 1056.