TITLE: CONCERNING THE REGULATION OF UNPAID ORDERS FOR SUBSCRIPTIONS TO PERIODICALS.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund	*	*
State Expenditures General Fund Other Fund	*	*
FTE Position Change	None	None
Local Government Impact — May increase local government fine revenue and enforcement expenditures.

* The provisions of this bill may increase fine revenue and enforcement expenditures. Any increase is anticipated to be minimal.

This bill requires the sender of a periodical that is mailed from within the state of Colorado to confirm all unpaid orders by sending a confirmation card to the person believed to have ordered the subscription. The bill prohibits the sender of a periodical from billing any person without having first received a completed confirmation card.

The bill specifies the content of the confirmation card and the process for sending more than one confirmation card. The bill provides certain exemptions. Violation of these requirements constitutes a class 2 petty offense punishable by a fine of not more than $250, and shall also be subject to remedies and penalties of the Colorado Consumer Protection Act (CCPA).

The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

This bill may affect state, and local government, revenue and expenditures. Therefore, it is assessed as having a fiscal impact.

The CCPA prescribes a civil penalty, payable to the state General Fund, of not more than $2,000 for each violation of the Act; and of not more than $100,000 for any series of violations. The CCPA also prescribes a civil penalty, payable to the state General Fund, of not more than $10,000 for each violation of a court order pursuant to the Act. There are no historical records for these offenses. Any additional revenues are anticipated to be minimal.

The Office of the Attorney General and the district courts of the state are responsible for the enforcement of the CCPA. Additional state costs may be incurred to enforce the provisions of this bill. Based upon an assumption that there will be few of these offenses during FY 1998-99 and FY 1999-00, it is believed that any additional state costs would be absorbed within existing budgets.

The bill specifies that violation of the article constitutes a class 2 petty offense with a fine of not more than $250 payable to the municipality or county in which the offense occurred. There are no historical records for these types of offenses. The penalty for a class 2 petty offense is specified in the statutory section defining the offense. The bill does not specify a jail sentence, therefore municipal or county jail confinement would not be required.

At the local level, district attorneys are responsible for the enforcement of the CCPA. Additional local government costs may be incurred to enforce the provisions of this bill, but the amount of these costs are anticipated to be minimal. The CCPA does not prescribe a jail sentence as a penalty.

This fiscal note would imply that no new state spending authority or appropriations are required for FY 1998-99 to implement the provisions of this bill.