Colorado Legislative Council Staff

STATE

FISCAL NOTE

TABOR Refund Impact

General Fund Expenditure Impact

Cash Fund Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-673

Romero

Rizzuto

Date:

Bill Status:

Fiscal Analyst:

February 1, 1998

House Finance

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING THE ELIMINATION OF THE SUPPLIER DATABASE CASH FUND ESTABLISHED TO COVER EXPENSES RELATING TO THE STATE SUPPLIER DATABASE MAINTAINED BY THE DEPARTMENT OF PERSONNEL.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Supplier Database Cash Fund



($225,000)



($225,000)

State Expenditures

General Fund

Suppler Database Cash Fund


$150,000

(225,000)


$150,000

(225,000)

FTE Position Change

None

None

Local Government Impact — None



            This bill repeals the authority of the Department of Personnel to assess a registration fee on businesses included in the centralized data base that provides a listing of all businesses interested in providing goods and services to the state. The bill abolishes the Supplier Database Cash Fund and makes conforming amendments. The bill will become effective upon the signature of the Governor.


            The bill will affect state revenue and expenditures. Therefore, it is assessed as having a state fiscal impact.



State Revenues


            This bill will abolish all fees that are being collected under current law from businesses that are included in the state supplier database. Therefore, the bill will eliminate all cash fund revenue to the Supplier Database Cash Fund for FY 1998-99 and beyond.


            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.

Fee Impact on Business

Supplier Database Cash Fund Fees

Fee Type

Current Fee

Proposed Fee

Fee Change

# of

 Business

Total Fee

Impact

Suppler Database Fee

$75

$0

($75)

3,000

($225,000)

TOTAL

($225,000)


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


            Under current law, vendors pay an annual registration fee of $75 to be included in the state supplier database. The Department of Personnel was appropriated $225,000 Supplier Database Cash Fund for FY 1997-98 for the costs of program administration, which includes the cost of repaying a loan authorized for the development of the system. That loan is scheduled to be totally repaid by June 30, 1998.


            As a result, the costs of on-going system administration and maintenance will be reduced by the amount of the annual loan payments. The department indicates that on-going annual system costs are estimated to be $150,000 for FY 1998-99 and FY 1999-2000. Since the bill abolishes the Supplier Database Cash Fund, these annual expenditures would be General Fund for FY 1998-99 and FY 1999-2000.


Spending Authority


            This fiscal note would imply the Department of Personnel will require a Supplier Database Cash Fund reduction of $225,000 for FY 1998-99, and a General Fund appropriation of $150,000 for FY 1998-99.


Departments Contacted


            Personnel