Colorado Legislative Council Staff



TABOR Refund Impact

State General Fund Revenue Impact

Local Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-652

Sen. Congrove


Bill Status:

Fiscal Analyst:

February 7, 1998

Senate Business Affairs

Will Meyer (866-4976)



Summary of Legislation

            This bill would prohibit an employer from requiring any person, as a condition of employment, to become or remain a member of any labor organization, to be referred or recommended by such an organization, or to pay any dues, fees, or other assessments. The bill would become effective July 1, 1998 and would apply to contracts or agreements entered into, extended, or renewed on or after that date.

            The bill would repeal the exception for an all-union agreement from the unfair labor practices statutory provisions. The bill would include public sector employees within the Colorado Labor Peace Act. The bill also would provide a misdemeanor penalty upon conviction for violating the provisions of the bill.


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Other Fund

Potential Increase in Fine Revenues

(Expected to Be Minimal)

State Expenditures

General Fund

Other Fund



FTE Position Change



Local Government Impact — Increase in expenditures resulting from new misdemeanors.

            The term employer means any individual, corporation, association, organization, entity or state or local government that employs one or more persons. It also requires written authorization from the employee to deduct any dues to be paid to a labor organization. It requires employers to post, and keep posted, notices informing employees of their rights. The bill also would require the Attorney General and the District Attorney in each judicial district to investigate any complaint and to prosecute violators.

            The Department of Labor and Employment does not anticipate many, if any, violations of the provisions of this bill and would not be fiscally impacted by the bill. The provisions of this bill would not affect any other agency of the state.

State Revenues


TABOR Refund Impact

            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

State Expenditures

            The provisions of the bill would not have any net impact on the workload of the Division of Labor.

Local Government Impact

            The penalty for this unclassified misdemeanor is ninety days imprisonment or a fine of not more than $1,000, or both. The confinement is to be served in a county jail and the fines are to be deposited in the state General Fund. Because the courts have the discretion of incarceration or imposing a fine, the impact at the local level cannot be determined. According to a 1993 State Auditor’s report, the average daily cost to house an offender in a county jail is $54. In addition, sufficient misdemeanor data are not available from the Judicial Branch at this time. It is assumed that the impact of this new misdemeanor will be minimal and will not create the need for additional jail space at the county level.

Spending Authority

            This fiscal note implies that no change in spending authority would be required to implement the provisions of the bill.

Departments Contacted 

            Labor and Employment          Law                Personnel