What You Will Learn About in this Legal Update

What You Will Learn About in this Legal Update:

     Amendment B and Gallagher News
     Is your Personnel Manual Up to Date? Now is a Good Time to Be Sure
     COVID and Vaccinations in the Workplace
     Proposition 118: The Creation of Colorado Paid Family and Medical
     Leave Insurance
     Proposition 117: Required Voter Approval for Organization of Large
     Government-Owned Enterprises
     Congratulations on Other Election Successes

Amendment B and Gallagher News

With the passage of Amendment B in November 2020, the Gallagher
Amendment has been repealed from the Colorado Constitution. The Colorado
Legislature also enacted a companion bill, SB20-223, that automatically took
effect when Colorado voters approved Amendment B. SB20-223 places a
moratorium on any changes in the ratio of valuation for any class of property
for purposes of property taxation. For the current time, the residential
assessment rate will remain at 7.15% and the non-residential assessment rate
will remain at 29%. These assessment rates could be reduced in the future by
Legislative action or voter initiative. However, any increase in an assessment
rate would require voter approval due to the TABOR Amendment to the
Colorado Constitution limiting tax increases without voter approval.

Of note, recently a group of propositions backed by an anti-tax group received
ballot title approval for the November 2021 election. These propositions would
lower both residential and commercial assessment rates. The fiscal analysis of
the propositions state that they would reduce property tax receipts by
approximately $1.03 billion if approved by voters. These propositions still face
multiple procedural challenges and voter signature collection thresholds before
being allowed on the November 2021 ballot. The Special District Association
and many other local government groups are actively following these
propositions.

If the Legislature or a future voter initiative were to reduce assessment rates, a
government that has already received voter approval to “de-Gallagherize”
(sometime also referred to as “Gallagherization”) might be able to increase its
mill levies to account for the reduction in assessment rates. One important
caveat: the particular wording of your de-Gallagher ballot title language
impacts this analysis. Issues involving the Gallagher Amendment, de-

Gallagherization, TABOR, and property tax mill levies can be complicated and
we encourage you to contact us if you have questions.

Is Your Personnel Manual Up to Date? Now is a Good Time to Be Sure

There have been several changes to
employment law in Colorado recently and
now is the time to update your personnel
manuals, if you have not already.

The Colorado Equal Pay for Equal Work
Act, C.R.S. §§ 8-5-101 et seq., went into
effect on January 1, 2021, replacing
Colorado’s prior equal pay statute. This
law significantly expands the definition of wage discrimination while altering
many of the procedures for handling wage discrimination claims, and imposing
certain requirements during the job posting and hiring process. The Healthy
Families and Workplaces Act, §§ 8-13.3-401 et seq., some of which went into
effect in 2020 and some in 2021, requires all employers to provide paid sick
leave time to employees.

These two legislative measures are only a few examples of rapidly changing
regulations for employers and employees and there are others being
discussed in the current legislative session. We encourage you to regularly
review and update your employee and personnel manuals.

COVID and Vaccinations in the Workplace

                                       As COVID-19 vaccines have become
                                       available, we have received several
                                       questions related to the authority of
                                       employers to require employees to receive
                                       a vaccine. There is no clear law or
                                       regulation on this issue. There is some
                                       legal precedence that suggests employers
                                       can require employees to receive a
                                       vaccine, provided religious and medical
exemptions are permitted. Most employers are opting to strongly encourage,
rather than require, vaccination for legal and political reasons.

Additional issues employers should consider include whether employees will
be provided with paid time off to receive vaccinations and/or recover from any
adverse side effects related to receiving a vaccination. Employer requirements
relating to vaccinations can create complex legal issues and we encourage you
to contact us prior to implementing any policy on any vaccinations, particularly
if you anticipate mandating vaccines.

Proposition 118: The Creation of Colorado Paid Family and Medical Leave
Insurance

Proposition 118, also passed by Colorado voters at the November 2020
election, creates the Paid Family Medical Leave Insurance Act (the “Act”),
codified in Section 8-13.3-401 et seq., C.R.S. The Act allows for 12 weeks
(and potentially 4 additional weeks in certain situations) of paid family and
medical leave funded through a payroll fee. This payroll fee is split between
employer and employee contributions and is managed by the state through a
new Family and Medical Leave Insurance Fund (the “Fund”). The Act also
creates the Division of Family and Medical Leave Insurance (the “Division”) in
the Department of Labor and Employment to implement and oversee the
Fund. Payroll contributions to the Fund begin on January 1, 2023 with benefits
available on January 1, 2024. It is important to note that the Act allows local
government entities to opt out, but individual employees can still choose to
contribute to the Fund and to request family and medical leave under the Act.

While local government entities can choose to opt out, it is very important to
understand how this law will affect employees who can still participate in the
benefits established by the Act. Additionally, there are numerous aspects of
the Act which remain vague and will be detailed by the Director and Division in
regulations to be released prior to 2023.

Proposition 117: Required Voter Approval for Organization of Large State
Enterprises

The last of the successful statewide ballot initiatives in the 2020 election we
would like to mention here is Proposition 117, which amends Colorado statute,
adding Section 24-77-108, C.R.S., to require voter approval to create any state
enterprise expected to collect fee revenue of more than $100 million during the
first five fiscal years of its existence. Importantly, the text of Proposition 117
applies narrowly only to “state enterprises” with very large budgets and does
not impact the numerous enterprises operated by local governments across
the state.

Congratulations on Local Election Successes

Congratulations to the Loveland Rural Fire
Protection District which recently concluded a
successful inclusion election and will provide fire
protection and emergency services to the area
comprising the Pinewood Lake Fire Protection
District.

Also, a belated, but sincere, congratulations to
the following municipalities, special districts, and
communities which had their own successful
election measures at the November 2020
Election: Eagle River Fire Protection District, Forest Hills Metropolitan District,
Franktown Fire Protection District, Fraser Valley Metropolitan Recreation
District, Town of Gypsum, Kremmling Fire Protection District, Loveland Rural
Fire Protection District, Northeast Teller County Fire Protection District, Stone
Canon Ranch Metropolitan District, and West Globeville Metropolitan District
Nos. 1 and 2.

Well done!

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