TITLE: CONCERNING THE DENIAL OF UNEMPLOYMENT BENEFITS TO EMPLOYEES LOCKED OUT BY AN EMPLOYER IN A DEFENSIVE LOCKOUT, AND, IN CONNECTION THEREWITH, DEFINING EMPLOYEES ELIGIBLE TO RECEIVE BENEFITS IN AN OFFENSIVE LOCKOUT.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues Cash Fund
State Expenditures Cash Fund	Potential Reduction	Potential Reduction
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None identified
Effective Date: Upon signature of the Governor
Appropriation Summary for FY 1999-2000: None required
Local Government Impact: None identified

This bill changes the criteria for eligibility to receive unemployment benefits (UI) under the provisions of the Employment Security Act, Division of Employment and Training, Department of Labor and Employment. The reengrossed bill defines a defensive lockout as a temporary shutdown of operations and layoff of employees initiated because of a strike or labor dispute or a lockout reasonably imposed by an employer to protect materials, property, or operations or where a union or two or more union employees take economic action against an employer and that action causes the employer to lockout. It defines an offensive lockout as any lockout by an employer that does not satisfy the definition of a defensive lockout. The bill provides that employees are ineligible for unemployment compensation benefits where an employer is engaged in a defensive lockout, and are eligible when an employer is engaged in an offensive lockout.

For FY 1999/00, it is estimated that UI fund revenues will total $260,661,000. It is assumed that the amount of benefits excluded under this bill will not affect the employer contributions in any significant or predictable way. Therefore, this bill is assessed as having no revenue impact.

Labor lockouts in Colorado occur relatively infrequently. Offensive lockouts, as defined by the bill, will likely occur even more infrequently. In the event of a defensive lockout, the provisions in this bill will decrease the amount of benefits paid out of the UI fund. The amount of the reduction is conditional on future labor disputes and how they are resolved. The amount of reduction of future UI benefits cannot be accurately estimated. For FY 1999/00, it is estimated that the UI fund will pay out benefits totaling $184,894,000 for reasons unrelated to labor lockouts.

This fiscal note implies that there should not be any change in the appropriations to the Department of Labor and Employment. Benefits' expenditures out of the UI fund are not appropriated by the General Assembly.