Colorado Legislative Council Staff



No State General Fund Impact

Local Government Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-677

Rep. Sullivant


Bill Status:

Fiscal Analyst:

February 4, 1998

House Local Government

Steve Tammeus (866-2756)



Summary of Legislation


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



State Expenditures

General Fund

Other Fund



FTE Position Change



Local Government Impact — Requires counties to account for actual and direct costs of building inspections. May require counties to increase or decrease fees for building permits.

            This bill specifies that fees established by the board of county commissioners for the issuance of building permits shall not exceed the county’s actual and direct costs of examining construction plans and specifications, and inspecting buildings or structures for conformance with building code regulations.

            The bill authorizes the board to create a Reserve Building Inspection Fund to be comprised of the portion of the fees that are in excess of the total costs the county actually incurred in a given budget year for providing the building inspection services. The moneys in the fund are to be allowed to accumulate until the fund balance is equivalent to the county’s total annual costs incurred for building inspection services. At that time, the board will be required to reduce the fees collected by an amount that will maintain the reserve fund at or below the permitted amount. If the total costs actually incurred for these services is greater than the amount of the fees collected, the board may draw against the reserve fund to cover the total costs actually incurred.

            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 will not affect state revenue or expenditures. The bill will affect county expenditures and may affect county revenue. Therefore, the bill is assessed as having a local government fiscal impact.

Local Government Impact

            Under current law, county boards of commissioners are allowed to fix a reasonable schedule of fees for the issuance of building permits. Most, if not all, county boards establish fees for building permits on fee schedules for these services as outlined in the Uniform Building Code. As a result, current county building permit fees may not necessarily reflect the actual and direct costs of performing the services.

            The provisions of this bill will require all counties to incur additional administrative costs to establish a process to account for the actual and direct costs of performing these services. The amounts of those administrative costs have not been estimated. In those cases where the actual and direct costs exceed the current fee schedules, the fees for these services will need to be increased. In those cases where the actual and direct costs are less than the current fee schedules, the fees for these services will need to be reduced.

Spending Authority

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

Departments Contacted

            Local Affairs

Omissions and Technical or Mechanical Defects

            This bill does not provide a specific definition of actual and direct costs.