Colorado Legislative Council Staff



(Replaces Fiscal Note dated March 23, 1998)

TABOR Refund Impact

No State General Fund Impact

State Cash Fund Revenue and Expenditure Impact

Local Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-280

Rep. G. Berry

Sen. Chlouber


Bill Status:

Fiscal Analyst:

March 30, 1998

House 2nd Reading

Will Meyer (866-4976)



Summary of Legislation

            The provisions of this bill would repeal the State Electrical Board and would transfer the board’s responsibilities to the Director of the Division of Registrations, Department of Regulatory Agencies. The bill would exempt owners of single or two-family dwellings, who occupy such dwelling, from the licensing requirements for electricians to perform electrical work in such dwellings. The bill would make other changes, including changes in the requirements for licensure.

            The bill, as amended in the House Business Affairs and Labor Committee, would eliminate the statutory provisions that limit the number of apprentices a licensed electrician can supervise. The bill also would allow a permitting and inspection program involving two or more local government authorities operating with an intergovernmental agreement to charge up to 30% above the state inspection fees, instead of the 15% cap for single jurisdiction building departments. The bill would become effective July 1, 1998.


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Division of Registration’s Cash Fund



State Expenditures

General Fund

Division of Registration’s Cash Fund

Department of Law - Cash Fund Exempt*




FTE Position Change

.3 FTE

.3 FTE

Local Government Impact — Ability of local governments operating with an intergovernmental agreement to increase inspection fees to 30% above state fees.

              * The cash fund exempt expenditures of the Department of Law would be out of the Cash Fund Expenditure of the Department of Regulatory Agencies identified above.

              NOTE: The bill requires the implementation within existing appropriations.

            The bill, as amended in the House Appropriations Committee, would continue the regulation of electricians until July 1, 2003, rather than allowing it to sunset July 1, 1998. The bill also would provide that the provisions of the bill be implemented within existing appropriations.

State Revenues

            The Department of Regulatory Agencies would adjust fees currently paid by electrician apprentices to reflect the added costs of registering additional electrician apprentices. Additional revenues totaling an estimated $11,304 in FY 1998/99 and $10,032 in FY 1999/2000 would be paid into the Division of Registrations Cash Fund.

TABOR Refund Impact

            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

State Expenditures

            The elimination of the board would require a reduction in the department’s current appropriation. In FY 1996/97, board meeting expenditures totaled $6,865 CF, including $3,450 in personal services expenditures for per diem expenses and $3,415 in travel expenditures. It is assumed that absent a board, the program administrator would travel throughout the state to handle problems currently dealt with by board members. It is estimated that this additional travel would cost approximately $2,000 each year. The net savings resulting from eliminating the electrical board would total $4,865 CF ($6,825 less $2,000).

            Given the current shortage of licensed electricians in the state, it is assumed that the number of persons seeking to register as electrician apprentices would increase. Based on the current workload of the board’s staff, it is estimated that 0.3 FTE clerical staff will be required to process the additional 3,535 requests for registration. The costs of this additional staff include $6,961 in personal services costs and $1,726 in operating costs. In addition the board would need to conduct a rule making hearing regarding changes to experience allowances provided for in the bill. It is estimated that it would cost $1,282 to conduct the hearing, including $500 in hearings’ costs, and $393 in legal service costs (8 hours @ $49.11 per hour), $75 for hearing room rental, $200 for legal notice, $50 for printing and $64 for postage for a total of $9,969 in FY 1998/99, and a net expenditure of $5,104 ($9,969 - $4,865 in savings). In FY 1999/2000, costs would total $6,961 in personal services costs, and $1,727 in operating costs for a total cost of $8,688, and a net expenditure of $3,823 ($8,688 - $4,865 in savings).

Division of Registrations - Expenditures


FY 1998-99

FY 1999-2000

Personal Services



Operating Expenses



Hearings Costs



Board Expenditures



Total Expenses



Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures totaling $2,658 have not been included in this fiscal note:


               health and life insurance costs ;

               short-term disability costs;

               inflationary cost factors;

               leased space; and

               indirect costs.

Local Government Impact

            By increasing the cap on the amount that local jurisdictions (who enter into joint agreements) may charge for electrical inspections from 15% to 30% of state inspection fees, more local jurisdictions would be likely to perform electrical inspections. It is assumed that this provision could possibly lead to several local jurisdictions entering into agreements to provide electrical inspection services. If such agreements were entered into by local governments, this would result in their ability to increase their inspection fees above the current level.

Spending Authority

            This fiscal note would imply the Division of Registrations, Department of Regulatory Agencies, would require additional cash spending authority of $5,104 CF and 0.3 FTE in FY 1998/99. Out of this amount the Department of Law would require additional spending authority of $393. However, the bill requires the Department of Regulatory Agencies to implement the provisions of the bill within their existing appropriations. Therefore, no separate appropriation would be required.

Departments Contacted

            Regulatory Agencies