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July 12, 2023 SB 23-053
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 23-0369
Sen. Kirkmeyer; Rodriguez
Rep. Woodrow; Evans
Date:
Bill Status:
Fiscal Analyst:
July 12, 2023
Signed into Law
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 enacted 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;
personal identifying information and other data required to be kept confidential by federal or
state law;
attorney-client privileged communications and communications related to ongoing
investigations
trade secrets or other sensitive information that is part of a public-private partnership or
owned by the employer;
information pertaining to security;
discussions that occur in executive session; or
information not subject to disclosure under the Colorado Open Records Act.
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. Page 2
July 12, 2023 SB 23-053
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.
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 was signed into law by the Governor on June 2, 2023, and takes effect on August 7, 2023,
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.