SENATE 3rd Reading Unamended April 25, 2016 SENATE Amended 2nd Reading April 20, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-0666.01 Ed DeCecco x4216 SENATE BILL 16-117 SENATE SPONSORSHIP Sonnenberg, HOUSE SPONSORSHIP Coram, Senate Committees House Committees Finance Appropriations A BILL FOR AN ACT Concerning a limitation on a state agency's authority to impose a fine, and, in connection therewith, making an appropriation. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) For purposes of the bill, a "discretionary fine" means a penalty in an amount set by a state agency that is capped in law at $1,000 or more or that has no statutory cap. A state agency is prohibited from imposing a discretionary fine unless: The state agency provides written notice of the violation of the state law or rule to the violator; and The violator fails to cure the violation on or before the 20th business day after receipt of the written notice of the violation. The bill also establishes a maximum amount of a discretionary fine, notwithstanding any specific provision of law to the contrary. But this maximum only applies if a violator provides the state agency with the requested information that allows the state agency to determine the maximum amount. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 79.3 to title 24 as follows: ARTICLE 79.3 Fines Imposed by State Agencies - Limitations 24-79.3-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Designated fine" means a penalty that is: (a) Imposed by a state agency on a natural person, business entity, or political subdivision for a violation of a state statute or a state agency rule; (b) At least one thousand dollars per violation or in total for related violations; and (c) Not a criminal penalty. (2) "State agency" means any board, bureau, commission, department, institution, division, section, or officer of the state in the executive branch. 24-79.3-102. State agencies - fines - limitations. (1) A state agency shall not impose a designated fine, unless: (a) The state agency provides written notice of the violation of the state law or rule to the violator; and (b) The violator fails to cure the violation on or before the thirtieth calendar day after the state agency mails the written notice of the violation. (2) (a) Except as set forth in paragraph (c) of this subsection (2), and notwithstanding any specific provision of law to the contrary, a state agency shall not impose a designated fine that exceeds: (I) For a natural person, ten percent of the taxable income reported on his or her last state income tax return, regardless of whether it is a single or joint return; (II) For a business entity, ten percent of the operating revenue reported on its income statement for the last fiscal year; or (III) For a political subdivision, five percent of its tax revenue for the prior fiscal year. (b) The maximum designated fine allowed under paragraph (a) of this subsection (2) does not include any delinquency charges. (c) If a violation has not been cured during the period set forth in paragraph (b) of subsection (1) of this section, a state agency may request a violator to provide information to allow the state agency to determine the maximum allowable fine under paragraph (a) of this subsection (2). For the limit to apply, the violator must provide the state agency with the requested information on or before the thirtieth calendar day after the state agency mails the request. If the violator fails to provide the requested information, then paragraph (a) of this subsection (2) does not apply. SECTION 2. Appropriation. (1) For the 2016-17 state fiscal year, $1,068,554 is appropriated to the department of revenue. This appropriation is from the general fund. To implement this act, the department may use this appropriation as follows: (a) $1,044,554 for use by the taxation business group for CITA annual maintenance and support; and (b) $24,000 for use by the executive director's office for postage. (2) For the 2016-17 state fiscal year, $330,619 is appropriated to the department of labor and employment for use by the division of unemployment insurance. This appropriation is from the employment support fund created in section 8-77-109 (1) (b) (I), C.R.S., and is based on an assumption that the division will require an additional 3.5 FTE. To implement this act, the division may use this appropriation for program costs. (3) For the 2016-17 state fiscal year, $104,421 is appropriated to the department of labor and employment for use by the division of workers' compensation. This appropriation is from the workers' compensation cash fund created in section 8-44-112 (7) (a), C.R.S. To implement this act, the division may use this appropriation as follows: (a) $91,815 for personal services related to workers' compensation, which amount is based on an assumption that the division will require an additional 2.1 FTE; and (b) $12,606 for operating expenses related to workers' compensation. (4) For the 2016-17 state fiscal year, $109,572 is appropriated to the department of regulatory agencies for use by the public utilities commission. This appropriation is from the public utilities commission motor carrier fund created in section 40-2-110.5 (6), C.R.S. To implement this act, the commission may use this appropriation as follows: (a) $99,723 for personal services, which amount is based on an assumption that the commission will require an additional 1.6 FTE; and (b) $9,849 for operating expenses. (4) For the 2016-17 state fiscal year, $22,014 is appropriated to the department of regulatory agencies for use by the division of professions and occupations. This appropriation is from the division of professions and occupations cash fund created in section 24-34-105 (2) (b) (I), C.R.S. To implement this act, the commission may use this appropriation as follows: (a) $19,944 for personal services, which amount is based on an assumption that the commission will require an additional 0.3 FTE; and (b) $2,070 for operating expenses. (5) For the 2016-17 state fiscal year, $4,678 is appropriated to the department of regulatory agencies for use by the division of real estate. This appropriation is from the division of real estate cash fund created in section 12-61-111.5 (2) (b), C.R.S. To implement this act, the division may use this appropriation as follows: (a) $4,238 for personal services, which amount is based on an assumption that the division will require an additional 0.1 FTE; and (b) $440 for operating expenses. (6) For the 2016-17 state fiscal year, $825 is appropriated to the department of regulatory agencies for use by the division of real estate. This appropriation is from the mortgage company and loan originator cash fund created in section 12-61-908 (2), C.R.S. To implement this act, the division may use this appropriation as follows: (a) $748 for personal services, which amount is based on an assumption that the division will require an additional 0.1 FTE; and (b) $77 for operating expenses. (7) For the 2016-17 state fiscal year, $11,598 is appropriated to the department of public health and environment for use by the administration and support division. This appropriation is from the general fund. To implement this act, the division may use this appropriation as follows: (a) $11,283 for personal services related to administration, which amount is based on an assumption that the division will require an additional 0.2 FTE; and (b) $315 for operating expenses related to administration. SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2016, if adjournment sine die is on May 11, 2016); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.