Colorado Legislative Council Staff

STATE and LOCAL

FISCAL NOTE

State General Fund and Cash Fund Exempt Expenditure Impact

Local Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-494

Rep. Zimmerman

Date:

Bill Status:

Fiscal Analyst:

February 1, 1998

House Local Government

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING THE PROTECTION OF LOCAL GOVERNMENT EMPLOYEES FROM RETALIATION BY LOCAL GOVERNMENT EMPLOYERS.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund



 



 

State Expenditures

General Fund

Cash Fund Exempt - Dept of Personnel


$213,740

28,800*


$200,840

28,800*

FTE Position Change

3.0 FTE

3.0 FTE

Local Government Impact — This bill will require local government officials to participate in investigations, hearings, and litigation of all alleged violations. The bill requires any person found guilty of the violations to pay a fine of not more than $5,000 to the local government General Fund.

* This amount for the Department of Personnel is included in the General Fund expenditures above.


            This bill creates the “Conscientious Local Government Employee Protection Act” to prohibit a local government employer from retaliating against an employee who discloses information about a wrongdoing of the employee’s employer. The bill also prohibits the local government from implementing rules or policies that unreasonably restricts an employee’s ability to document the existence of any wrongdoing.


            The bill allows an employee, or former employee, to file a complaint with the Office of the Attorney General (AG) which is responsible for enforcing the law at the administrative level. The bill requires the AG to investigate each complaint and make a determination within 180 days. The AG is allowed to request written statements, examine any person under oath, issue subpoenas, administer oaths, conduct hearings, prescribe forms, and promulgate rules to administer the provisions of the bill.

            If the AG determines the local government has violated the provisions of the bill, the AG is authorized to issue an administrative order directing the local government to reinstate the employee, order payment of back wages, reinstate all fringe benefits, and order payment of the employee’s actual damages and legal fees.


            The bill allows the local government to appeal the AG’s decision to a state district court to be tried de novo. The bill requires the complaint to be filed and the appeal to be started within two years of the alleged violation.


            Any employee who is found guilty of retaliating against a local government employee shall be liable for a civil fine of not more than $5,000 to be paid to the General Fund of the local government. The bill requires the local government to take disciplinary actions against the guilty employee.


            The bill requires all local governments to inform employees of the employees’ rights under the provisions of this bill by posting a sign in a prominent location of the workplace. The bill requires the AG to prescribe the design and content of the sign. The bill will become effective on July 1, 1998.


            The bill will affect state expenditures, and local government revenue and expenditures. Therefore, the bill is assessed as having a state and local fiscal impact.


State Expenditures


            The annual expenditures for the Office of the Attorney General to implement and administer the provisions of this bill are based upon the following assumptions:

               30 complaints will be filed with the Attorney General each year;

               that of those 30 complaints, 15 cases will go to hearing;

               that the AG will be required to make 30 trips of four days each to investigate each of the 30 complaints; and

               that Administrative Law Judges will conduct the hearings.


            Table 1 provides a summary of the Office of the Attorney General’s expenditures for FY 1998-99 and FY 1999-2000.


Department of Law

Protection of Local Government Employee from Retaliation

 

FY 1998-99

FY 1999-2000

Personal Services

Asst Attorney General I (step 4)

Comp Invest I (grade 91, step 1)

Admin Asst ( grade 68, step 1)

Subtotal

PERA/Medicare

Total


1.0 FTE - $46,392

1.0 FTE - 35,892

1.0 FTE - 20,544

102,828

13,316

$116,144


1.0 FTE - $46,392

1.0 FTE - 35,892

1.0 FTE - 20,544

102,828

13,316

$116,144

Operating Expenses

14,004

14,004

Travel

10,680

10,680

Vehicle Lease

4,434

4,434

Legal Expenses - ALJ

28,800

28,800

Depositions/Transcriptions/Litigation

26,778

26,778

Computer and Furniture

12,900

0

Total Expenses

3.0 FTE - $213,740

3.0 FTE - $200,840


Expenditures Not Included


            Pursuant to the Joint Budget Committee’s budget policies, the following expenditures have not been included in this fiscal note:

 

               health and life insurance costs of $6,616;

               short-term disability costs of $244;

               inflationary cost factors;

               leased space; and

               indirect costs.


Local Government Impact


            This bill will require local government officials to participate in, and provide information to the AG’s investigations, hearings, and litigation of all alleged violations. Those officials would also be required to participate in any court appeal process that may be initiated. The magnitude of the costs would be dependent upon the number and frequency of allegations, the scope of the investigations, and any subsequent appellate legal costs.


            The bill requires any person found guilty of the violations to pay a fine of not more than $5,000 to the local government General Fund. This fiscal note cannot ascertain whether the amount of that revenue will be sufficient to cover the local government’s expenditures.


Spending Authority


            This fiscal note would imply the Office of the Attorney General would require a General Fund appropriation of 3.0 FTE and $213,740 for FY 1998-99 to implement the provisions of the bill. Of that amount, the Department of Personnel will require cash fund exempt spending authority of $28,800.


Departments Contacted


            Judicial           Local Affairs              Personnel        Law