HOUSE
                       3rd Reading Unamended
       March 17, 2016          HOUSE
       2nd Reading Unamended
                      March 16, 2016Second Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                REENGROSSED
                       This Version Includes All Amendments
                       Adopted in the House of Introduction
 LLS NO. 16-0799.02 Nicole Myers x4326   HOUSE BILL 16-1281
                    HOUSE SPONSORSHIP
 Young, 
 
                   SENATE SPONSORSHIP
 Tate, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning modifications to the implementation of the
            state's payroll system that will allow all state
            employees to be paid twice a month.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            Currently, the majority of state employees who are paid through
       the state's payroll system are paid on a monthly basis and some state
       employees are paid bi-weekly. Pursuant to current law, for pay periods
       that begin on or after July 1, 2017, all state employees who are paid
       through the state's payroll system will be paid twice monthly. 
            The bill allows the state personnel director to delay the
       implementation date of the twice monthly payroll system if necessary due
       to the implementation of the new human resources information system.
       If there will be a delay in the implementation of the twice monthly payroll
       system, the state personnel director is required to notify affected
       employers and employees and the general assembly of the delay and of
       the new start date for the twice monthly payroll system.
            In addition, current law allows any state employee to apply to the
       department of personnel for a one-time loan to assist the employee in July
       2017 and specifies that an employee may repay the loan either with a
       deduction from each paycheck for a specified period or with annual leave.
       The bill eliminates the option to repay the loan with annual leave. The bill
       also requires the state personnel director to delay the month for which
       employees may apply for a loan if the implementation date of the twice
       monthly payroll system is delayed.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 24-50-104, amend
       (8) (c) (II); and add (8) (g) as follows:
            24-50-104.  Job evaluation and compensation - state employee
       reserve fund - created - definitions - repeal. (8)  Payroll. (c) (II)  An
       employee who receives a loan from the state pursuant to this paragraph
       (c) shall repay the loan using one of the payment options as specified in
       this subparagraph (II). An employee may repay the loan early with no
       prepayment penalty. If an employee separates from state employment
       prior to the full loan repayment, the balance of the loan shall be deducted
       from the employee's last paycheck. An employee shall choose one of the
       following repayment options: repay the loan over a three-year
       period with an after-tax deduction in each paycheck equal to
       one seventy-second of the loan amount plus simple interest at
       the state treasury's incremental borrowing rate.
            (A)  The employee may repay the loan over a three-year period
       with annual leave. The exact amount of annual leave needed to repay the
       loan shall be calculated by the department in which the employee is
       employed pursuant to guidelines issued by the office of the state
       controller.
            (B)  The employee may repay the loan over a three-year period
       with an after-tax deduction in each paycheck equal to one seventy-second
       of the loan amount plus simple interest at the state treasury's incremental
       borrowing rate.
            (g)  Notwithstanding the provisions of this subsection (8),
       if the state personnel director determines that, due to
       circumstances in connection with the implementation of the
       human resources information system, it will not be possible on
       July 1, 2017, to begin paying salaries twice monthly for
       employees paid through the state's payroll system as otherwise
       required in this subsection (8), the director shall, on or before
       June 1, 2017, notify employers that pay employees through the
       state's payroll system, employees who are paid through the
       state's payroll system, and the general assembly that the
       department will not meet the July 1, 2017, deadline and include
       in the notice the new date on which the implementation of the
       twice monthly payroll system will begin. In addition, if the
       implementation of the twice monthly payroll system is delayed,
       the director shall allow any state employee to apply to the
       department of personnel for a one-time loan to assist the
       employee in covering expenses in the first month in which
       employees will be paid twice monthly, rather than for the month
       of July 2017, as provided in paragraph (c) of this subsection (8).
            SECTION 2.  Safety clause. The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.