Colorado Legislative Council Staff

STATE

FISCAL NOTE

TABOR Refund Impact

General and Cash Fund Revenue and Cash Fund Expenditure Impact

TITLE:            CONCERNING THE CREATION OF A “NO SALES SOLICITATION CALLS LIST” THROUGH THE OFFICE OF CONSUMER COUNSEL IN THE DEPARTMENT OF REGULATORY AGENCIES, AND, IN CONNECTION THEREWITH, MAKING ENFORCEMENT OF VIOLATIONS THEREOF SUBJECT TO THE “COLORADO CONSUMER PROTECTION ACT” AND MAKING AN APPROPRIATION.

Summary of Legislation

            The provisions of this bill would require the Office of Consumer Counsel (OCC), Department of Regulatory Agencies to establish a program that would limit unsolicited telephone sales calls, including calls to any residential, mobile or telephonic paging device. The bill would require the OCC to create a “no sales solicitation calls” list that would identify persons who do not want to receive unsolicited sales calls, and pay the requisite fee. The bill would prohibit telephone solicitors from calling persons on that list. The bill provides exemptions for certain telephone solicitors. The bill also would require the OCC to update the list at least quarterly and to provide it to telephone solicitors for a fee not to exceed $400 per year. The bill would make violations of the provisions of the bill a violation of the deceptive trade practices provisions of the Colorado Consumer Protection Act. The bill provides for an appropriation of $100,000 to the OCC. The provisions of the bill would repeal July 1, 2003.

              * The amount of estimated revenues include moneys for expenditures “not allowed” and not shown in the expenditure summary of $8,899 in FY 1998/99 and $4,450 in FY 1999/2000.

            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.

State Revenues

            The provisions of the bill would generate additional cash fund revenues. In the first year, it is estimated that 3,000 persons would pay an application fee of $10 to be included on the list; 75 telephone solicitors would purchase the list for $400 per year; and current assessments for the PUC fixed utility fund would be increased to offset the costs of implementing the program. In the second year, it is estimated that 3,000 persons would pay a renewal fee of $5 and 2,000 persons would pay an application fee of $10 to be included on the list; 75 telephone solicitors would purchase the list for $400 per year. The revenues from fees would be sufficient and no additional assessments for the PUC fixed utility fund would be required. It is estimated that total revenues would increase by $107,483 CF in FY 1998/99 and $65,000 CF in FY 1999/2000.

            The Colorado Consumer Protection Act (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.

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

            Based on information obtained by the OCC, it is estimated that the following expenditures would be required to implement the provisions of the bill.

            It is assumed that the responsibility to develop and publicize this new program; supervise the development of the data base; answer consumer complaints; and initiate any disciplinary action would be the responsibility of the OCC. It is estimated that this would require 1.0 FTE and $54,489 CF in FY 1998/99 and 0.5 FTE and $26,601 in FY 1999/2000.

            It also is assumed that the actual management of “no sales solicitation calls” list would be by contract with a private vendor. The cost to develop the necessary computer program to manage the list, to answer inquiries from interested persons and telephone solicitors about the lists, and to maintain the lists is estimated to cost $44,094 CF in FY 1998/99 and $31,130 CF in FY 1999/2000.

            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 on the assumption that the number of complaints that would not be resolved at the OCC and referred to the Department of Law for disciplinary action would be insignificant and could be absorbed within their existing budget. Therefore, there would be no fiscal impact to the Department of Law.

Expenditures Not Included

            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures totaling $8,899 in FY 1998/99 and $4,450 in FY 1999/2000 have not been included in this fiscal note:

            •   health and life insurance costs of $2235/$1,118;

            •   short-term disability costs of $87/$43;

            •   inflationary cost factors;

            •   leased space; and

            •   indirect costs of $6,577/$3,289.

Fee Impact on Individuals, Families or Business

            Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, the following analysis is provided.

            *The amount of the fixed utility assessments vary from utility to utility and cannot be accurately estimated at this time.

Spending Authority

            This fiscal note implies that the Department of Regulatory Agencies would require cash spending authority of $98,583 CF and 1.0 FTE in FY 1998/99.

Departments Contacted

            Regulatory Agencies              Law