Colorado 2023 2023 Regular Session

Colorado Senate Bill SB111 Introduced / Fiscal Note

Filed 02/23/2023

                    Page 1 
February 22, 2023  SB 23-111  
 
 Legislative Council Staff 
Nonpartisan Services for Colorado’s Legislature 
 
Fiscal Note  
  
 
Drafting Number: 
Prime Sponsors: 
LLS 23-0483  
Sen. Rodriguez 
Rep. Woodrow  
Date: 
Bill Status: 
Fiscal Analyst: 
February 22, 2023 
Senate Local Government 
Anna Gerstle | 303-866-4375 
anna.gerstle@coleg.gov  
Bill Topic: PUBLIC EMPLOYEES' WORKPLACE PROTECTION  
Summary of  
Fiscal Impact: 
☒ State Revenue 
☒ State Expenditure 
☐ State Transfer 
☐ TABOR Refund 
☒ Local Government 
☒ Statutory Public Entity 
 
The bill establishes certain rights for public employees and associated enforcement 
procedures. The bill increases state revenue and expenditures, and potentially 
increases costs for certain local governments and statutory public entities, on an 
ongoing basis.  
Appropriation 
Summary: 
For FY 2023-24, the bill requires an appropriation of $457,239 to the Colorado 
Department of Labor and Employment.  
Fiscal Note 
Status: 
The fiscal note reflects the introduced bill. 
 
 
Table 1 
State Fiscal Impacts Under SB 23-111 
 
  
Budget Year 
FY 2023-24 
Out Year 
FY 2024-25 
Revenue  	-     	-     
Expenditures 	Cash Funds 	$457,239  $440,468  
 
Centrally Appropriated 	$75,195  	$80,342  
 
Total Expenditures 	$532,434  $520,810  
 	Total FTE                          4.2 FTE                          4.5 FTE  
Transfers  	-  	-  
Other Budget Impacts  	- 	- 
 
 
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February 22, 2023  SB 23-111  
 
Summary of Legislation 
The bill specifies that public employees have the right to: 
 
 discuss or express views on workplace issues and employee rights and representation;  
 engage in protected, concerted activity for the purposes of mutual aid or protection; 
 participate in the political process while off-duty without discrimination, intimidation, or 
retaliation; 
 speak with members of the public employer’s governing body about conditions of employment; 
and 
 form or join, or refrain from participating in, an employee organization. 
 
A public employer must not discriminate against an employee for engaging the in rights listed above, 
interfere with the administration of an employee organization, or discriminate against an employee 
who has joined an employee organization or has filed a complaint related to the bill. 
 
Definition of public employer. Under the bill, a public employer includes the following: 
 
 a municipality or a city and county; 
 a county with a population of less than 7,500;  
 a district, business improvement district, or special district that is a political subdivision of the 
state, a county, or municipality;  
 the Colorado School for the Deaf and the Blind; 
 a state institution of higher education;  
 the Office of the State Public Defender;  
 the University of Colorado Hospital Authority and Denver Health and Hospital Authority;  
 Joint Budget Committee Staff (JBC), Legislative Council Staff (LCS), and the staff of the Chief Clerk 
of the House of Representatives and Senate Services Staff;  
 majority and minority caucus staff for the House of Representatives and the Senate;   
 a Board of Cooperative Services (BOCES); and  
 firefighters.   
 
It does not include a political subdivision of the state that operates a mass transportation system. The 
bill specifies that the State Board of Education may not waive the bill’s provisions for a charter school, 
or an innovation school, zone, or district.  
 
Enforcement.  An aggrieved party must file a claim for a violation within six months of knowing 
about the violation. The Division of Labor Standards and Statistics (DLSS) in the Colorado Department 
of Labor and Employment (CDLE) is charged with enforcing the rights under the bill and adjudicating 
unfair labor practices. A party may appeal CDLE’s decision to the Colorado Court of Appeals, whose 
review must be limited to whether CDLE exceeded its jurisdiction or abused its discretion.  
   Page 3 
February 22, 2023  SB 23-111  
 
Assumptions 
The fiscal note assumes that the bill does not require public employers to negotiate or collectively 
bargain with employee organizations.  It also assumes that the bill does not apply to state executive 
branch agencies and employees or any public entity not listed in the bill.  If collective bargaining is 
required and state executive branch employees are covered, costs will be higher than estimated.  
State Revenue 
The bill increases state revenue to the Wage Theft Enforcement Fund from any fines collected.  Overall, 
any revenue is expected to be minimal, as the Colorado Wage Act encourages the DLSS to waive most 
fines assessed against employers if the employer complies with the law, and DLSS has never levied a 
fine for an unfair labor practice.  Any revenue from court filing fees is also expected to be minimal. 
State Expenditures 
The bill increases state expenditures in CDLE by $532,434 in FY 2023-24 and $520,810 in FY 2024-25, 
paid from the Employment Support Fund. It also increases workload for Judicial Department, and 
potentially costs for the Legislative Department, institutions of higher education, Department of 
Education, and Office of the State Public Defender.  Expenditures are shown in Table 2 and detailed 
below. 
 
Table 2 
Expenditures Under SB 23-111 
 
 	FY 2023-24 FY 2024-25 
Department of Labor             
Personal Services 	$344,009  $363,687  
Operating Expenses 	$19,780  $17,282  
Capital Outlay Costs 	$33,350  	-  
Legal Services 	$57,100  $57,100  
Travel Costs 	$3,000  $2,400  
Centrally Appropriated Costs
1
 	$75,195  $80,342  
FTE – Personal Services 	3.9 FTE 4.2 FTE 
FTE – Legal Services 	0.3 FTE 0.3 FTE 
Total $532,434  $520,810  
Total FTE 4.2 FTE 4.5 FTE 
1
 Centrally appropriated costs are not included in the bill's appropriation. 
 
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February 22, 2023  SB 23-111  
 
Department of Labor. CDLE requires 3.9 FTE in FY 2023-24 and 4.2 FTE in subsequent years to handle 
complaints filed under the bill. The fiscal note assumes one complaint for every 3,800 employees, for 
a total of 75 complaints per year, and that each complaint will require work from a compliance 
investigator and an administrative law judge. A supervisor and program staff also will handle 
management of all complaints, outreach, questions and rulemaking.  Standard capital outlay costs, 
operating expenses including software licenses, and staff travel costs are also required. Staff costs in 
the first year are prorated for a September 1, 2023, start date.  
 
Department of Law. The bill requires 540 hours of legal services for rulemaking and general counsel 
for CDLE. Legal services are provided by the Department of Law at a rate of $105.74 per hour; the 
required hours equate to 0.3 FTE.   
 
In addition, the Department of Law may incur additional costs to provide legal counsel for institutions 
of higher educations, due to the number of employees across institutions that are covered by the bill. 
The exact cost cannot be estimated, as it depends on where institution complaints may occur, and the 
associated workload. As a result, any additional legal services hours for institutions of higher 
education will be requested through the annual budget process.  
 
Department of Personnel and Administration. Because the Department of Personnel and 
Administration (DPA) manages the employee benefit plans for institutions of higher education, 
legislative staff, the Colorado School for the Deaf and the Blind, and the Office of the State Public 
Defender, the DPA may have workload and costs to the extent that state agencies covered by the bill 
choose to engage with employee organizations acting on behalf of employees. The fiscal note assumes 
that state agencies are not required to engage with employer organizations; as a result, the costs are 
assumed to be accomplished within current appropriations. Any additional resources needed will be 
requested through the annual budget process.  
 
Specified state agencies. The bill increases costs by an indeterminate amount for any state entity 
included as a public employer in the bill to respond to complaints. This includes state institutions of 
higher education; LCS, OLLS, and House and Senate staff in the Legislative Department; the Colorado 
School for the Deaf and the Blind in the Department of Education; and the Office of the State Public 
Defender. The fiscal note assumes that this workload will not require a change in appropriations and 
that any additional resources needed will be requested through the annual budget process.  
 
Judicial Department. The bill increases workload in the trial courts in the Judicial Department by a 
minimal amount to handle any appeals of CDLE decisions. No change in appropriations is required.  
 
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. 
   Page 5 
February 22, 2023  SB 23-111  
 
Local Government and Statutory Public Entity 
Similar to the state agency impacts listed above, the bill increases costs for municipalities, counties 
with a population of 7,500 or less, special districts, and the Denver Health and Hospital Authority to 
respond to any complaints filed for violations of the bill’s provisions. Cost will vary among each public 
employer depending on the number of complaints received.  
Effective Date 
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no 
referendum petition is filed. 
State Appropriations 
For FY 2023-24, the bill requires an appropriation of $457,239 from the Employment Support Fund to 
the Colorado Department of Labor and Employment, and 3.9 FTE. Of that amount, $57,100 is 
reappropriated to the Department of Law, with an additional 0.3 FTE.  
Departmental Difference 
The CDLE requests General Fund be used to enforce the bill’s labor standards. The federal 
Department of Labor has determined that certain spending from the Employer Support Fund is not 
in compliance with federal law. Until the fund is back into compliance, the CDLE prefers not to make 
additional expenditures from this fund. The fiscal note assumes that these administrative costs 
constitute allowable uses of funds in the Employer Support Fund.  
State and Local Government Contacts 
Counties Education  Higher Education  
Joint Budget Committee Staff  Judicial  Labor  
Law  Legislative Council Staff Legislative Legal Services 
Personnel  Public Defender 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.