TITLE: CONCERNING THE CREATION OF A TOLL-FREE TELEPHONE NETWORK TO RECEIVE CONSUMER COMPLAINTS REGARDING MANUFACTURED HOUSING FOR THE PURPOSES OF DETERMINING WHETHER LICENSURE OF THE MANUFACTURED HOUSING INDUSTRY IS NECESSARY, AND, IN CONNECTION THEREWITH, CREATING A REGISTRATION FEE FOR DEALERS AND INSTALLERS OF MANUFACTURED HOUSING TO FUND THE TOLL-FREE NETWORK.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues Cash Fund	$57,000	$57,000
State Expenditures Cash Fund	$42,603	$38,508
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR
Effective Date: Upon signature of the Governor
Appropriation Summary for FY 1999-2000: Department of Regulatory Agencies - $42,603 and 0.0 FTE - Cash Fund
Local Government Impact: None

This bill requires the Division of Real Estate in the Department of Regulatory Agencies to conduct a study to determine whether permanent state regulation of the sales and installation of manufactured houses is necessary to protect consumers. The division is to create a toll-free consumer advocacy telephone network to receive information and collect data regarding consumer problems and complaints. The division is to require manufactured housing dealers, installers, and parks to provide the toll-free consumer advocacy telephone number to purchasers, owners, and tenants.

The division director is to establish registration fees to be charged to each dealer and installer in Colorado to recover the division's direct and indirect costs of administering the program. The registration fees are to be credited to the Toll-free Consumer Advocacy Network for Manufactured Housing Cash Fund for annual appropriation by the General Assembly to the Department of Regulatory Agencies. The amount of the fee is to be no more than $5.00 per sale for each dealer and no more than $5.00 per installation for each installer. Any dealer or installer who fails to remit the registration fees to the division will be found in violation of deceptive trade practices under the Colorado Consumer Protection Act (CCPA). The division is to provide a report to the General Assembly by April 15, 2002. The provisions of the bill are to be repealed July 1, 2002.

Toll-free Consumer Advocacy Network. This bill establishes registration fees to be paid by manufactured housing dealers and installers to the Toll-free Consumer Advocacy Network for Manufactured Housing Cash Fund. The divisions' estimates for the annual revenue to that cash fund for FY 1999-2000 and FY 2000-01 are based upon the following assumptions:

• that there are 327 manufactured housing dealers who will annually sell 5,200 new and 500 used units in Colorado;

• that there are 450 manufactured housing installers who will annually install 5,200 new and 500 used units in Colorado;

• that the registration fee will be $5.00 per each sale and each installation.

Colorado Consumer Protection Act. 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. Any additional revenues are anticipated to be minimal.

Toll-free Consumer Advocacy Network. The Division of Real Estate's estimates for the annual cash fund expenditures for FY 1999-2000 and FY 2000-01 are based upon the following assumptions:

• that no more than 2,000 consumer telephone calls will be administered annually by the division;

• that the Attorney General's office and local District Attorneys will enforce the provisions of the bill within existing resources; and

• that in the event sufficient fee revenue is not realized to cover these expenses, the division will require General Fund moneys.

Table 2 provides a summary of the division's annual direct and indirect expenses to administer the program.

Colorado Consumer Protection Act. The Office of the Attorney General and the district courts of the state are concurrently responsible for the enforcement of the CCPA. The Attorney General or district attorney is authorized to take necessary actions, including issuing subpoenas, conducting hearings, and promulgating rules to administer the provisions of the Act.

Under current law, district attorneys refer all civil consumer protection cases to the Office of the Attorney General because of case matter experience and resource limitations. District attorneys’ salaries are funded 80 percent state and 20 percent county. The remaining administrative and personal services costs of each district attorney’s office are funded by the county.

Actions instituted pursuant to the Act may be brought in the county where an alleged deceptive trade practice occurred or where any portion of a transaction involving an alleged deceptive trade practice occurred, or in the county where the principal place of business of any defendant is located, or in the county in which any defendant resides.

As a result, additional state costs may be incurred to enforce the provisions of this bill. Based upon an assumption that there will be few of these offenses during FY 1999-2000 and FY 2000-01, it is believed that any additional state costs would be absorbed within existing budgets.

Colorado Consumer Protection Act. At the local level, district attorneys may be responsible for the enforcement of the CCPA. Under current law, county district attorneys’ salaries are funded 80 percent state and 20 percent county. The remaining administrative and personal services costs of each district attorney’s office are funded by the county. Additional local government costs may be incurred to enforce the provisions of this bill, but the amount of these costs are anticipated to be minimal. The CCPA does not prescribe a jail sentence as a penalty.

This fiscal note would imply the Department of Regulatory Agencies would require a Toll-free Consumer Advocacy Network for Manufactured Housing Cash Fund appropriation of $42,603 and 0.0 FTE for FY 1999-2000.

Table 1 - Toll-free Consumer Advocacy Network for Manufactured Housing Cash Fund Revenue
Type of Fee	Current Fee	Proposed Fee	Fee Change	# of Units	Total Fees
Sales Fee	$0	$5	$5	5,700	$28,500
Installation Fee	$0	$5	$5	5,700	$28,500
Total Annual Revenue					$57,000

Table 2 - Department of Regulatory Agencies Toll-free Consumer Advocacy Network for Manufactured Housing Cash Fund Expenditures
	FY 1999-2000	FY 2000/2001
Contracted Personal Services	$33,000	$33,000
Toll-free Telephone System	3,937	3,792
Operating/Travel Expenses	1,716	1,716
Legal Expenses	0	0
Non-recurring Expenses	3,950	0
Subtotal Direct Expenses	$42,603	$38,508
Indirect Expenses	9,354	9,354
Total Direct and Indirect Expenses	$51,957	$47,862