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Income protection HD 1296_01[1] Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED HOUSE BILL 12-1296 LLS NO. 12-0811.01 Jerry Barry x4341 HOUSE SPONSORSHIP Singer, SENATE SPONSORSHIP (None), House CommitteesSenate Committees Judiciary A BILL FOR AN ACT C"IPA". 101 ONCERNING THE NCOMEROTECTION CT 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.) The bill creates the crime of wage theft for failing to pay wages or compensation to an employee or falsely denying the amount of wages or compensation due. Each failure to pay or false denial of wages or compensation due to each employee in each calendar month is a separate violation. It is an affirmative defense if a person is unable to pay the wages or compensation. The bill incorporates the definitions of "employee" and "wages or compensation" from other statutes pertaining Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. to wages. 1Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 2This act shall be known as the "Income Protection 3Act". SECTION 2.add 4 In Colorado Revised Statutes, 18-4-420 as 5follows: 18-4-420. Wage theft. 6 (1) A PERSON COMMITS THE OFFENSE OF 7, WAGE THEFT IF THE PERSON IS UNDER A DUTY TO PAY OR THE PERSON HAS 8, FINANCIAL CONTROL OF AN ENTITY THAT IS UNDER A DUTY TO PAY WAGES 9,: OR COMPENSATION TO AN EMPLOYEE AND THE PERSON KNOWINGLY 10(a) F; AILS TO PAY THE WAGES OR COMPENSATION TO AN EMPLOYEE 11 OR 12(b) F ALSELY DENIES THAT THE AMOUNT OF WAGES OR 13. COMPENSATION IS DUE TO AN EMPLOYEE 14(2) W: AGE THEFT IS 15(a) A2 CLASS MISDEMEANOR IF THE AMOUNT OF WAGES OR 16; COMPENSATION INVOLVED IS LESS THAN FIVE HUNDRED DOLLARS 17(b) A1 CLASS MISDEMEANOR IF THE AMOUNT OF WAGES OR 18 COMPENSATION INVOLVED IS FIVE HUNDRED DOLLARS OR MORE BUT LESS 19; THAN ONE THOUSAND DOLLARS 20(c) A4 CLASS FELONY IF THE AMOUNT OF WAGES OR 21 COMPENSATION INVOLVED IS ONE THOUSAND DOLLARS OR MORE BUT LESS 22; THAN TWENTY THOUSAND DOLLARS 23(d) A3 CLASS FELONY IF THE AMOUNT OF WAGES OR 24. COMPENSATION INVOLVED IS TWENTY THOUSAND DOLLARS OR MORE 25(3) F, OR PURPOSES OF THIS SECTION EACH FAILURE TO PAY OR HB12-1296 -2- 1 FALSE DENIAL OF WAGES OR COMPENSATION TO EACH EMPLOYEE DUE 2. DURING EACH CALENDAR MONTH IS A SEPARATE VIOLATION 3(4) (a) I T IS AN AFFIRMATIVE DEFENSE TO AN OFFENSE DESCRIBED 4: IN THIS SECTION IF 5(I) T HE PERSON DOES NOT HAVE THE ABILITY TO PAY THE WAGES 6; OR COMPENSATION AND 7(II) A, T THE TIME OF REQUESTING THE LABOR OR SERVICE THE 8 PERSON HAS A GOOD FAITH AND REASONABLE BELIEF THAT PAYMENT WILL 9. BE MADE IN A TIMELY MANNER WHEN DUE 10(b) F(4), OR PURPOSES OF THIS SUBSECTION A PERSON IS PRESUMED 11,, TO HAVE THE ABILITY TO PAY IF AT THE TIME THE OFFENSE IS COMMITTED 12 THE PERSON OR ENTITY HAS LEGAL CONTROL OVER A SUFFICIENT AMOUNT 13 OF MONEY TO PAY THE WAGES OR COMPENSATION AND HAS NOT FILED FOR 14. PROTECTION UNDER THE FEDERAL BANKRUPTCY LAWS 15(5) A, S USED IN THIS SECTION UNLESS THE CONTEXT OTHERWISE 16: REQUIRES 17(a) "E" MPLOYEE HAS THE SAME MEANING AS SET FORTH IN 188-4-101(4),C.R.S. SECTION 19(b) "W" AGES OR COMPENSATION HAS THE SAME MEANING AS 20""""8-4-101(8),C.R.S. WAGE OR COMPENSATION IN SECTION SECTION 3.Potential appropriation. 21 Pursuant to section 222-2-703, Colorado Revised Statutes, any bill that results in a net increase 23in periods of imprisonment in the state correctional facilities must include 24an appropriation of moneys that is sufficient to cover any increased 25capital construction and operational costs for the first five fiscal years in 26which there is a fiscal impact. Because this act may increase periods of 27imprisonment, this act may require a five-year appropriation. HB12-1296 -3- SECTION 4.Act subject to petition - effective date - 1 applicability. 2 (1) This act takes effect September 1, 2012, except that, 3if a referendum petition is filed pursuant to section 1 (3) of article V of 4the state constitution against this act or an item, section, or part of this act 5within the ninety-day period after final adjournment of the general 6assembly, then the act, item, section, or part will not take effect unless 7approved by the people at the general election to be held in November 82012 and, in such case, will take effect on the date of the official 9declaration of the vote thereon by the governor. 10(2) The provisions of this act apply to offenses committed on or 11after the applicable effective date of this act. HB12-1296 -4-