Page 1 April 8, 2022 HB 22-1354 Legislative Council Staff Nonpartisan Services for Colorado’s Legislature Fiscal Note Drafting Number: Prime Sponsors: LLS 22-0884 Rep. Lindsay; Michaelson Jenet Sen. Winter Date: Bill Status: Fiscal Analyst: April 8, 2022 House HHS Clare Pramuk | 303-866-2677 clare.pramuk@state.co.us Bill Topic: PROTECTING INJURED WORKERS' MENTAL HEALTH RECORDS Summary of Fiscal Impact: ☐ State Revenue ☒ State Expenditure ☐ State Transfer ☐ TABOR Refund ☐ Local Government ☐ Statutory Public Entity The bill amends the Workers’ Compensation Act of Colorado to limit the disclosure of records related to a claimant’s mental health and to require training of Workers' Compensation Division employees on maintaining the privacy of mental health records. The bill also requires a person providing mental health services to a Workers’ Compensation claimant to be a licensed mental health provider. The bill increases state expenditures beginning in FY 2022-23. Appropriation Summary: For FY 2022-23, the bill requires an appropriation of $30,000 to the Department of Labor and Employment. Fiscal Note Status: The fiscal note reflects the introduced bill. Table 1 State Fiscal Impacts Under HB 22-1354 Budget Year FY 2022-23 Out Year FY 2023-24 Revenue - - Expenditures Cash Funds $30,000 - Transfers - - Other Budget Impacts - - Page 2 April 8, 2022 HB 22-1354 Summary of Legislation The bill amends the Workers’ Compensation Act of Colorado to limit the disclosure of records related to a claimant’s mental health and require the Director of the Division of Workers' Compensation in the Department of Labor and Employment to train division employees on maintaining the privacy of mental health records. The director may promulgate rules to implement the bill. Finally, the bill requires a person providing mental health services to a Workers’ Compensation claimant to be a licensed mental health provider. State Expenditures This bill increases expenditures in FY 2022-23 by $30,000 in the Department of Labor and Employment from the Workers' Compensation Cash Fund. It may also increase expenditures in the Department of Personnel and Administration as described below. Division of Workers’ Compensation. The division requires $30,000 to contract for a training program that meets the requirements of the bill for division employees responsible for medical policy and claims management and processing. The division will also have an increase in workload to develop rules and update claims handling processes. Department of Personnel and Administration. The bill may increase the cost of treatment for state employees that are Workers’ Compensation claimants to see a licensed mental health provider for treatment rather than the authorized treating physician. Any increase will be incorporated into the annual actuarial process for assessing costs to agencies. The State Office of Risk Management may be required to change its records handling process as relates to mental health treatment; however, this workload can be addressed within existing appropriations. Local Government Like the state government, the bill may increase the cost of treatment for local government employees that are Workers’ Compensation claimants to see a licensed mental health provider for treatment rather than the authorized treating physician. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature, and applies to claims filed on or after the effective date of this bill. State Appropriations For FY 2022-23, the bill requires an appropriation of $30,000 from the Division of Workers’ Compensation Cash Fund to the Department of Labor and Employment. Page 3 April 8, 2022 HB 22-1354 State and Local Government Contacts Information Technology Labor Personnel 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.