Colorado Legislative Council Staff



Drafting Number:

Prime Sponsor(s):

LLS 99-0331

Rep. Young


Bill Status:

Fiscal Analyst:

January 12, 1999

House Agriculture

Steve Tammeus (866-2756)



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund



State Expenditures

General Fund



FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: None

Effective Date: July 1, 2000

Appropriation Summary for FY 1999-2000: None

Local Government Impact: None

Summary of Legislation

            This bill repeals the entirety of the "Colorado Commercial Feed Law of 1979" under Article 60 of Title 35, C.R.S., and reenacts the law with the following additions:


               requires commercial feed manufacturers to obtain an annual license from the Department of Agriculture, establishes the licensing procedure, sets the license and renewal fees at $10 each, and establishes a $10 penalty for failure to comply;

               eliminates the feed registration requirement;

               allows the Commissioner of Agriculture, after an administrative hearing, to deny an application or refuse to renew a license of any person who violates the law;

               authorizes the commissioner to promulgate and amend rules to implement the law;

               permits the commissioner to impose a civil penalty of up to $750 per day;

               reduces the maximum inspection fee of $0.20 to $0.15 per ton of commercial feed distributed in the state;

               establishes an alternative inspection fee of $10 per product for products sold in packages weighing 10 pounds or less; and

               requires each person who is required to pay an inspection fee to submit an annual, rather than semi-annual, statement to the commissioner that identifies the number of new tons of commercial feed distributed in the state.

State Revenues

            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, Table 1 provides an overview of fees the Department of Agriculture would collect starting FY 2000-01 per the provisions of this bill. All revenue from these fees will be deposited to the state General Fund. Therefore, this bill would reduce General Fund revenue starting in FY 2000-01 by approximately $1,135 which represents 0.4 percent of current annual commercial feed fee revenue

Table 1 - Department of Agriculture

Commercial Feed Law Fees

Type of Fee

Proposed Fee


Total Fee

Annual License




Feed Consultant License




Late License




Livestock Products




Pet Products




Products under 10 lbs. each




Companies reporting under 167 tons




Companies filing late




Subtotal Proposed Fees




Registration Fees

Current Fee



Tonnage Fees

Current Fee



Subtotal Current Fees




Total Fee Impact - Revenue Decrease


State Expenditures

            This bill allows the Commissioner of Agriculture, after an administrative hearing, to deny an application or refuse to renew a license of any person who violates the law, and to impose a civil penalty of up to $750 per day. The Department of Agriculture anticipates at least one new administrative hearing per year which will require additional legal services from the Department of Law. The annual General Fund cost for these legal services starting in FY 2000-01 is estimated to be $1,028, based upon 20 hours of attorney time at $51.40 per hour.

State Appropriations

            This fiscal note would imply that no new state appropriations are required for FY 1999-2000.

Departments Contacted


            Agriculture                 Law