Senate Bill 25-144 Engrossed

A Bill for an Act

• Page 1, Line 101Concerning changes to the "Paid Family and Medical Leave

• Page 1, Line 102Insurance Act".

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://leg.colorado.gov.)

With regard to the family and medical leave insurance program (program), section 1 of the bill extends the duration of paid family and medical leave, up to an additional 12 weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit.

Section 2 changes the premiums financing the payment of program benefits by extending the current premium amount, 0.9% of wages per employee, through 2025 and setting the premium amount for the 2026 calendar year at 0.88% of wages per employee. For each subsequent calendar year, the director of the division of family and medical leave insurance (director) in the department of labor and employment is required set the premium on or before November 1 of the preceding year. The director is required to set the premium in a manner such that:

• At the end of the year, the balance of the family and medical leave insurance fund (fund) is not less than 6 months' worth of projected expenditures from the fund required for performance of the functions and duties of the director;
• The volatility of the premium rate is minimized; and
• The premium amount does not exceed 1.2% of wages per employee.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 8-13.3-505, amend (1) as follows:

• Page 2, Line 38-13.3-505.  Duration. (1)  The maximum number of weeks for

• Page 2, Line 4which a covered individual may take paid family and medical leave and

• Page 2, Line 5for which family and medical leave insurance benefits are payable for any

• Page 2, Line 6purpose, or purposes in aggregate, under section 8-13.3-504 (2) in an

• Page 2, Line 7application year is 12 twelve weeks; except that benefits are payable up to:

• Page 2, Line 8(a)  Up to an additional four weeks to a covered individual with

• Page 2, Line 9a serious health condition related to pregnancy complications or childbirth complications; and

• Page 2, Line 10(b)  Up to an additional twelve weeks to a covered

• Page 2, Line 11individual who has a child receiving inpatient care in a neonatal

• Page 2, Line 12intensive care unit for the duration that the child is receiving care in the neonatal intensive care unit.

• Page 2, Line 13SECTION 2.  In Colorado Revised Statutes, 8-13.3-507, amend (3) as follows:

• Page 3, Line 18-13.3-507.  Premiums - rules. (3) (a)  From January 1, 2023,

• Page 3, Line 2through December 31, 2024 2025, the premium amount is nine-tenths of one percent of wages per employee.

• Page 3, Line 3(b)  For the 2025 calendar year, and each calendar year thereafter,

• Page 3, Line 4the director shall set the premium based on a percent of employee wages

• Page 3, Line 5and at the rate necessary to obtain a total amount of premium

• Page 3, Line 6contributions equal to one hundred thirty-five percent of the benefits paid

• Page 3, Line 7during the immediately preceding calendar year plus an amount equal to

• Page 3, Line 8one hundred percent of the cost of administration of the payment of those

• Page 3, Line 9benefits during the immediately preceding calendar year, less the amount

• Page 3, Line 10of net assets remaining in the fund as of December 31 of the immediately

• Page 3, Line 11preceding calendar year From January 1, 2026, through December

• Page 3, Line 1231, 2026, the premium amount is eighty-eight hundredths of one percent of wages per employee.

• Page 3, Line 13(c)  For the 2027 calendar year and for each calendar

• Page 3, Line 14year thereafter, on or before September 1 of the preceding year,

• Page 3, Line 15the director shall adopt by rule the premium rate for the

• Page 3, Line 16following calendar year. The director shall set the rate in a manner such that:

• Page 3, Line 17(I)  At the end of the calendar year during which the

• Page 3, Line 18premium rate is effective, the balance of the fund is an amount

• Page 3, Line 19not less than six months' worth of projected expenditures from

• Page 3, Line 20the fund required for the performance of the functions and duties of the director;

• Page 3, Line 21(II)  The volatility of the premium rate is minimized; and

• Page 3, Line 22(III)  The premium shall amount does not exceed one and two tenths of a percent of wages per employee.

• Page 4, Line 1(d)  The division shall provide public notice in advance of January first 1 of any changes to the premium.

• Page 4, Line 2(e)  Prior to implementing any premium rate adjustments,

• Page 4, Line 3the department shall issue full refunds to employers that were

• Page 4, Line 4overcharged premiums due to miscalculations or program errors.

• Page 4, Line 5SECTION 3.  Act subject to petition - effective date -

• Page 4, Line 6applicability. (1)  This act takes effect at 12:01 a.m. on the day following

• Page 4, Line 7the expiration of the ninety-day period after final adjournment of the

• Page 4, Line 8general assembly; except that, if a referendum petition is filed pursuant

• Page 4, Line 9to section 1 (3) of article V of the state constitution against this act or an

• Page 4, Line 10item, section, or part of this act within such period, then the act, item,

• Page 4, Line 11section, or part will not take effect unless approved by the people at the

• Page 4, Line 12general election to be held in November 2026 and, in such case, will take

• Page 4, Line 13effect on the date of the official declaration of the vote thereon by the governor.

• Page 4, Line 14(2)  This act applies to paid family and medical leave claimed on or after the applicable effective date of this act.