Colorado Legislative Council Staff



(replaces Fiscal Note dated April 11, 1998)

No State General Fund Impact

TABOR Refund Impact

State Cash Fund Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-615

Rep. Anderson

Sen. Rizzuto


Bill Status:

Fiscal Analyst:

April 21, 1998

Senate Appropriations

Scott Nachtrieb (866-4752)


Summary of Legislation

            Under current law, all solid waste "tipping" fees are credited to The Hazardous Substances Response Fund. The reengrossed bill, as amended by the Senate Local Government Committee, Senate Journal page 849, would reduce the fees assessed a passenger vehicle by three cents a load, a personal truck by seven cents a load, and ten cents per cubic yard for commercial vehicles. The reengrossed bill would retain 75 percent of the annual fees received in the Hazardous Substances Response Fund and reallocate the remaining 25 percent to the Solid Waste Management Fund. Registration fees for solid waste disposal sites and facilities would be eliminated. The tipping fee would be continued until January 1, 2004.


FY 1998/99

FY 1999/2000

State Revenues

Hazardous Substances Response Fund (Transfer & Fee Reduction)

Solid Waste Management Fund (Transfer, hourly fee, registration fee elimination, financial assurance instrument)





State Expenditures

General Fund

Solid Waste Management Fund

Solid Waste Management Fund (Contract)

Cash Exempt Funds (Department of Law) *







FTE Position Change

4.2 FTE

4.1 FTE

Local Government Impact — None

* Department of Law is included in the Solid Waste Management Fund.

            The definition of "recyclable materials" would be changed. The Board of Health would adopt rules governing recycling and composting. The Department of Public Health and Environment would be allowed to finance the use of a contractor to conduct closure and post-closure activities utilizing a facilitie’s financial assurance instrument. The rates for private contractor reviews of solid waste applications would increase. Facilities would be required to have an approved characterization and disposal plan for various types of materials. Certain materials could not accumulate under conditions that constitute a public nuisance. The department’s enforcement authority would be modified to permit the use of a civil penalty of $2,000 per day per violation to ensure compliance with requirements of the solid waste laws. The provision of the bill as introduced that required the department to develop minimum standards for specific radioactive materials was removed. This bill would become effective July 1, 1998.

State Revenues

            The Hazardous Substances Response Fund receives approximately $3,459,934 each year in fees. The bill reduces the amount of fees collected and transfers 25 percent of the fund to the Solid Waste Management Fund. The amount of revenue that would not be collected from reduced tipping fees has been estimated to be $1,153,311. The distribution of the remaining revenue ($2,306,623) would be modified so that 75 percent ($1,729,967) would be retained in the fund and 25 percent ($576,656) would be distributed to the Solid Waste Management Fund. The total estimated reduction to the Hazardous Substances Response Fund is estimated to be $1,729,967 ($576,656 + $1,153,311).

            The Solid Waste Management Fund would also lose an estimated $206,800 from the elimination of registration fees for solid waste disposal sites and facilities. The Solid Waste Management Fund would receive an estimated $576,656 transferred from the Hazardous Substances Response Fund and an additional $200,000 that would be received from financial assurance instruments (assurity bonds). The hourly fee for a private contractor to review solid waste applications would increase from $75 an hour with a $2,500 cap to $100 an hour and a $5,000 cap. This increase would generate an additional $16,700 in revenue each year. The net increase to the Solid Waste Management Fund is estimated to be $586,556 ($200,000 + $576,656 + $16,700 - $206,800).

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 Department of Public Health and Environment would require an additional 4.2 FTE and $252,990 in additional cash funds. Personal services are estimated to be $223,300, operating costs would be $2,100, travel expenses would be $3,580, legal services from the Department of Law are estimated to be $5,950, computer costs would be $10,500, and capital outlay would be $7,560. The remaining funds in the Solid Waste Management Fund would be available for contracts to third-party closure, post-closure care, or corrective actions at solid waste facilities. The department also anticipates that $200,000 per year would be collected in assurity bonds that would be contracted to a third party for closure, post-closure, and corrective actions of a site or facility.

Expenditures Not Included

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


               health and life insurance costs; $9,990

               short-term disability costs; $433

               inflationary cost factors;

               other; and $3,730

               indirect costs. $54,935

Local Government Impact

            The provision concerning loans to local governments has been removed.

Spending Authority

            This fiscal note implies that the Department of Public Health and Environment would require increased cash fund spending authority of 4.2 FTE and $452,990 in Solid Waste Management Fund. Of that amount, the Department of Law would require a cash exempt fund spending authority of $5,950.

Departments Contacted       Health and Environment