Page 1 June 2, 2022 HB 22-1266 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Final Fiscal Note Drafting Number: Prime Sponsors: LLS 22-0844 Rep. Tipper; Gray Sen. Winter Date: Bill Status: Fiscal Analyst: June 2, 2022 Signed into Law Clare Pramuk | 303-866-2677 clare.pramuk@state.co.us Bill Topic: STATE EMPLOYEE TOTAL COMPENSATION PHILOSOPHY Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity This bill amends the state’s total compensation philosophy to specify that it is the policy of the state to provide innovative total compensation that meets or exceeds total compensation provided by public or private sector employers or a combination of both. The bill also expands what leave benefits can be provided to include those specified in statute or policies of the Director of Personnel. The bill increases workload in FY 2022-23 only and may increase ongoing expenditures. Appropriation Summary: No appropriation is required. Fiscal Note Status: The fiscal note reflects the enacted bill. Summary of Legislation Under current law, the state’s total compensation philosophy is to provide prevailing total compensation to officers and employees of the state. This bill amends the philosophy to specify that it is the policy of the state to provide innovative total compensation that meets or exceeds total compensation provided by public or private sector employers or a combination of both. Any monetary components of total compensation are subject to available appropriations by the general assembly. The bill also expands what leave benefits can be provided to include those specified in statute or policies of the Director of Personnel. State Expenditures Department of Personnel and Administration. In FY 2022-23, this bill increases workload for the Department of Personnel and Administration to revise the annual compensation report methodology and update benefit documents. The department will also update its leave tracking system to reflect the increase in Paid Family Medical Leave up to 160 hours under the Partnership Agreement between the Colorado Workers for Innovate and New Solutions Local 1876 and the state. These tasks can be accomplished within existing appropriations. Page 2 June 2, 2022 HB 22-1266 Other state agencies. The bill may increase expenditures for state agencies that hire temporary staff to fill in for employees who take additional leave time. This amount has not been estimated. If additional information is received, the fiscal note will be revised to address those amounts. Otherwise, the fiscal note assumes that increased expenditures will be addressed through the annual budget process. Effective Date The bill was signed into law by the Governor and took effect on March 30, 2022. State and Local Government Contacts Corrections Information Technology Natural Resources Personnel and Administration Public Safety 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.