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January 20, 2023 SB 23-053
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0369
Sen. Kirkmeyer
Date:
Bill Status:
Fiscal Analyst:
January 20, 2023
Senate State Affairs
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: RESTRICT GOVERNMENTAL NONDISCLOSURE AGREEMENTS
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill prohibits state and local governments from requiring their employees to sign a
non-disclosure agreement, with some exceptions. The bill increases state and local
workload.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Summary of Legislation
The bill prohibits state and local government agencies from requiring current and prospective
employees to sign a non-disclosure agreement (NDA) as a condition of employment, unless the NDA
is necessary to protect privacy interests of the employee or to keep matters confidential as required by
federal or state law. Retaliatory action against an employee for failing to sign an NDA is also
prohibited. Employers are liable for any employee attorney fees to defend against the failure to sign
the NDA.
State Expenditures
The bill may increase state workload in the Department of Personnel and Administration (DPA) and
the Department of Law beginning in FY 2023-24. The Colorado State Personnel Board in DPA reviews
appeals from state employees regarding adverse employer actions. Nondisclosure provisions are
sometimes used to settle these appeals. Without NDAs, settlement agreements may take additional
time, resulting in a workload increase for the board and the Department of Law. The number of
impacted cases is expected to be minimal and no change in appropriations is required.
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January 20, 2023 SB 23-053
Local Government
Similar to the state, local governments may have to change existing practices to comply with the
provisions of the bill. Any additional workload resulting from the bill is assumed to be minimal.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State and Local Government Contacts
Counties Information Technology Law
Municipalities Personnel School Districts
Special Districts
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.