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February 18, 2022 HB 22-1216
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0690
Rep. Tipper
Sen. Bridges
Date:
Bill Status:
Fiscal Analyst:
February 18, 2022
House Judiciary
Jake Carias | 303-866-4776
Jake.Carias@state.co.us
Bill Topic: UNIFORM RESTRICTIVE EMPLOYMENT AGREEMENT ACT
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
This bill regulates restrictive post-employment agreements. The bill will increase state
expenditures in FY 2022-23 and may minimally increase state revenue.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $126,357 to the Department of
Labor and Employment.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, as recommended by the Colorado
Commission on Uniform State Laws.
Table 1
State Fiscal Impacts Under HB 22-1216
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - -
Expenditures General Fund $126,357 $102,958
Centrally Appropriated $21,563 $19,610
Total Expenditures $147,920 $122,568
Total FTE 1.2 FTE 1.1 FTE
Transfers - -
Other Budget Impacts General Fund Reserve $18,954 $15,444
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February 18, 2022 HB 22-1216
Summary of Legislation
The bill updates the regulations on agreements between an employer and an employee regarding
limitations on work after the existing employment relationship ends. The bill regulates various post-
employment agreements that prohibit non-compete agreements for low-wage workers. Finally, the
bill adds new procedural requirements to non-compete and restrictive agreements and creates
penalties and enforcement mechanisms.
Background
Colorado Commission on Uniform State Laws. The Colorado Commission on Uniform State Laws
is charged with working with the national Uniform Law Commission (ULC) to promote uniformity
in state laws where uniformity may be deemed desirable and practicable. This is achieved by
developing proposed uniform legislation through the ULC that can be adopted by the various state
legislatures. Colorado’s commissioners are required to be attorneys admitted to practice law in
Colorado. Members include six attorneys appointed or reappointed by joint resolution of the General
Assembly; any Colorado citizen who is elected as a life member of the ULC (after twenty years of
membership); and the Director of the Office of Legislative legal Services, or the Director’s designee.
The Office of Legislative Legal Services provides assistance to the legislative members of the Colorado
Commission in their efforts to enact legislation regarding uniform acts.
State Revenue
To the extent the bill increases civil case filings, state revenue will increase beginning in FY 2022-23.
This fee revenue is subject to TABOR.
State Expenditures
The bill increases state expenditures in the Department of Labor and Employment (CDLE) by $147,920
in FY2022-23 and $122,568 in FY 2023-24 from the General Fund. Expenditures are shown in Table 2
and detailed below.
Department of Labor and Employment. The bill requires an increase of 1.2 FTE in FY 2022-23 and
1.1 FTE in FY 2023-24 in the Division of Labor Standards and Statistics to implement the bill. The
additional staff will draft and distribute notices to employers and employees and investigate employer
compliance. Standard operating and capital outlay costs are included, and the first-year costs are
prorated for the effective date and General Fund pay date shift.
Department of Law. The department will provide legal advice and counsel during the rulemaking
process and regarding CDLE’s authority over private employment matters. The total number of
additional work hours expected for the department will be under 100 hours. Any additional funds
necessary for legal services will be considered in future budget years. Page 3
February 18, 2022 HB 22-1216
Table 2
Expenditures Under HB 22-1216
FY 2022-23 FY 2023-24
Department of Labor and Employment
Personal Services $106,311 $95,717
Operating Expenses $1,890 $1,485
Capital Outlay Costs $12,400 -
Software Licenses $5,756 $5,756
Centrally Appropriated Costs
1
$21,563 $19,610
Total Cost $147,920 $122,568
Total FTE 1.2 FTE 1.1 FTE
1
Centrally appropriated costs are not included in the bill’s appropriation.
Department of Personnel and Administration. The department will have a minimal increase in
workload to review and update existing policies on confidentiality. The workload is absorbable
within existing appropriations.
Judicial Department. Trial courts may experience a minimal workload increase to the extent the bill
increases civil filings. The increased workload is absorbable within existing appropriations.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Other Budget Impacts
TABOR refunds. The bill is expected to increase the amount of state revenue required to be refunded
to taxpayers by a minimal amount. Because TABOR refunds are paid from the General Fund,
increased cash fund revenue will reduce the amount of General Fund available to spend or save.
General Fund reserve. Under current law, an amount equal to 15 percent of General Fund
appropriations must be set aside in the General Fund statutory reserve beginning in FY 2022-23. Based
on this fiscal note, the bill is expected to increase the amount of General Fund held in reserve by
$18,954 in FY 2022-23 and $15,444 in FY 2023-24, which will decrease the amount of General Fund
available for other purposes.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed. Page 4
February 18, 2022 HB 22-1216
State Appropriations
For FY 2022-23, the bill requires a General Fund appropriation of $126,357 to the Department of Labor
and Employment and 1.2 FTE.
State and Local Government Contacts
Information Technology Judicial Labor
Law Personnel Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.