House Committee of Reference Report
Committee on Health & Human Services
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March 24, 2026
After consideration on the merits, the Committee recommends the following:
HB26-1327 be amended as follows, and as so amended, be referred to the Committee on Finance with favorable recommendation:
Page 1, Line 1Amend printed bill, page 6, strike line 24 and substitute "(6), or a public
Page 1, Line 2entity as defined in section 24-10-103 (5); or".
Page 1, Line 3Page 6, line 26, after "includes" insert "affordable".
Page 1, Line 4Page 8, strike lines 6 through 11 and substitute:
Page 1, Line 5"(13) "Worker" means an employee, as defined in section
Page 1, Line 68-4-101 (5), of a large employer.".
Page 1, Line 7Page 10, strike lines 19 and 20 and substitute:
Page 1, Line 8"(g) Engage the state department as necessary to review
Page 1, Line 9administrative data for purposes of identifying large employers
Page 1, Line 10and determining a large employer's number of supported
Page 1, Line 11workers;
Page 1, Line 12(h) Engage the department of revenue to collect and
Page 1, Line 13enforce the large employer health-care support fee;".
Page 1, Line 14Reletter succeeding paragraphs accordingly.
Page 1, Line 15Page 14, strike lines 21 through 23 and substitute "for the operation of
Page 1, Line 16the enterprise; and".
Page 1, Line 17Reletter succeeding paragraph accordingly.
Page 1, Line 18Page 15, strike lines 6 through 27 and substitute:
Page 1, Line 19
Page 2, Line 1"(6) In determining the use and allocation of enterprise
Page 2, Line 2revenue, the board shall prioritize maintaining medical
Page 2, Line 3assistance benefits for supported workers and shall ensure that
Page 2, Line 4expenditures are reasonably related to the cost of the services
Page 2, Line 5provided to large employers.
Page 2, Line 625.5-1-1206. Large employer health-care support fee - annual
Page 2, Line 7employer report - imposition and collection of enterprise fee - penalty
Page 2, Line 8- rules.
Page 2, Line 9(1) For the 2027 calendar year, and continuing each
Page 2, Line 10calendar year thereafter, the enterprise shall impose, assess,
Page 2, Line 11and collect the large employer health-care support fee from
Page 2, Line 12each large employer.
Page 2, Line 13(2) (a) (I) On or before January 31, 2028, and no later than
Page 2, Line 14each January 31 thereafter, every employer that employed five
Page 2, Line 15hundred or more employees in the state at any time during the
Page 2, Line 16preceding calendar year shall report to the enterprise the
Page 2, Line 17employer's federal employer identification number, the average
Page 2, Line 18number of full-time, part-time, and 1099 employees, and the
Page 2, Line 19number of individuals subcontracted for the primary work of
Page 2, Line 20the employer, and, with respect to each of the employer's
Page 2, Line 21employees that were employed at any time during the preceding
Page 2, Line 22calendar year:
Page 2, Line 23(A) The employee's full legal name and date of birth;
Page 2, Line 24(B) The dates when the employee was employed during the
Page 2, Line 25year;
Page 2, Line 26(C) The average number of hours worked per month for
Page 2, Line 27each employee; and
Page 2, Line 28(D) Any other information required by the enterprise.
Page 2, Line 29(II) The enterprise may require an employer to file the
Page 2, Line 30report required pursuant to subsection (2)(a)(I) of this section
Page 2, Line 31electronically.
Page 2, Line 32(III) In addition to the employers required to file a report
Page 2, Line 33pursuant to subsection (2)(a)(I) of this section, the enterprise
Page 2, Line 34may require any other employer doing business in the state to
Page 2, Line 35file a report detailing the information set forth in subsection
Page 2, Line 36(2)(a)(I) of this section.
Page 2, Line 37(IV) If an employer neglects or refuses to file a report
Page 2, Line 38pursuant to subsection (2)(a)(I) or (2)(a)(III) of this section, or to
Page 2, Line 39provide a copy of records as set forth in subsection (2)(e) of this
Page 2, Line 40section, the enterprise shall estimate the amount of the large
Page 2, Line 41employer health-care support fee due using the best information
Page 2, Line 42that may be available. The amount of the fee may be estimated
Page 2, Line 43and assessed by the enterprise at any time within three years
Page 3, Line 1after the report is due.
Page 3, Line 2(b) (I) On or before March 31, 2028, and no later than each
Page 3, Line 3March 31 thereafter, the enterprise shall determine whether an
Page 3, Line 4employer is a large employer, calculate and impose the large
Page 3, Line 5employer health-care support fee due for each large employer,
Page 3, Line 6and send written notice pursuant to subsection (2)(b)(IV) of this
Page 3, Line 7section to each large employer and to the department of
Page 3, Line 8revenue.
Page 3, Line 9(II) The enterprise shall determine the amount of the fee
Page 3, Line 10that is reasonable based on the cost of services provided to
Page 3, Line 11large employers, including medical assistance services provided
Page 3, Line 12to supported workers, which fee amount the enterprise may
Page 3, Line 13adjust pursuant to subsection (4) of this section.
Page 3, Line 14(III) The enterprise shall determine the number of
Page 3, Line 15supported workers for each employer using available
Page 3, Line 16administrative data and data from the annual employer report
Page 3, Line 17required pursuant to subsection (2)(a) of this section. The
Page 3, Line 18enterprise shall enter into data-sharing agreements with the
Page 3, Line 19department of revenue and the department of labor and
Page 3, Line 20employment, in addition to any other agencies with data
Page 3, Line 21necessary to implement this section.
Page 3, Line 22(IV) The enterprise shall issue to each large employer and
Page 3, Line 23transmit to the department of revenue a written notice of the
Page 3, Line 24amount of the large employer health-care support fee due,
Page 3, Line 25instructions and due dates for paying the fee, and an
Page 3, Line 26explanation of the procedure to review the identification as a
Page 3, Line 27large employer, the calculation of supported workers, or to
Page 3, Line 28claim the exemption from the fee specified in subsection (2)(d) of
Page 3, Line 29this section. The notice may be sent electronically. The notice
Page 3, Line 30must include the large employer's name, the large employer's
Page 3, Line 31federal employer identification number, the amount of the large
Page 3, Line 32employer health-care support fee that the large employer is
Page 3, Line 33required to pay, and the date the payment is due pursuant to this
Page 3, Line 34subsection (2).
Page 3, Line 35(c) (I) Within sixty days after the date of the notice issued
Page 3, Line 36pursuant to subsection (2)(b)(IV) of this section, the employer to
Page 3, Line 37whom notice was issued may file with the enterprise a written
Page 3, Line 38request for review. The request must set forth the reasons for
Page 3, Line 39requested changes to the notice. The request may state a claim
Page 3, Line 40of exemption from the fee pursuant to subsection (2)(d) of this
Page 3, Line 41section. The employer requesting review has the burden of proof
Page 3, Line 42with respect to issues raised in the request. The enterprise shall
Page 3, Line 43notify the department of revenue when a request for review is
Page 4, Line 1made by an employer, and the department of revenue shall hold
Page 4, Line 2in abeyance any action to collect the fee until the department
Page 4, Line 3of revenue receives notice of the enterprise's final
Page 4, Line 4determination pursuant to subsection (2)(c)(II) of this section.
Page 4, Line 5(II) Unless the enterprise summarily cancels the notice,
Page 4, Line 6the enterprise shall hold a hearing on the request for review in
Page 4, Line 7accordance with article 4 of title 24. Based upon the evidence
Page 4, Line 8presented at the hearing or filed with the request, the
Page 4, Line 9enterprise shall make a final determination on the request. The
Page 4, Line 10enterprise may affirm, modify, or cancel the notice or may grant
Page 4, Line 11an exemption pursuant to subsection (2)(d)(I) of this section. An
Page 4, Line 12employer is not entitled to a second hearing regarding the
Page 4, Line 13notice. The enterprise shall provide written notice of its final
Page 4, Line 14determination to the employer and to the department of
Page 4, Line 15revenue. The large employer shall pay the amount found by the
Page 4, Line 16enterprise to be due within sixty days after the mailing of the
Page 4, Line 17final determination.
Page 4, Line 18(d) (I) The enterprise shall exempt a large employer from
Page 4, Line 19payment of the large employer health-care support fee if the
Page 4, Line 20large employer demonstrates that the large employer has
Page 4, Line 21offered affordable health coverage to workers who work
Page 4, Line 22twenty or more hours per week or eighty or more hours per
Page 4, Line 23month.
Page 4, Line 24(II) If at any time during the three years following the
Page 4, Line 25granting of the exemption by the enterprise the large employer
Page 4, Line 26ceases offering affordable health coverage to each worker who
Page 4, Line 27works twenty or more hours per week or eighty or more hours
Page 4, Line 28per month, the large employer shall notify the enterprise that
Page 4, Line 29coverage has ceased. The enterprise shall compute the large
Page 4, Line 30employer health-care support fee that would have been imposed
Page 4, Line 31since the date the exemption was granted and issue the large
Page 4, Line 32employer the notice required by subsection (2)(b)(IV) of this
Page 4, Line 33section. The large employer may request review of the notice as
Page 4, Line 34set forth in subsection (2)(c) of this section.
Page 4, Line 35(e) Every employer doing business in the state that
Page 4, Line 36employs five hundred or more employees during the calendar
Page 4, Line 37year shall keep complete and accurate records necessary for
Page 4, Line 38the determination of the correct amount of the large employer
Page 4, Line 39health-care support fee by the enterprise. An employer shall
Page 4, Line 40provide a copy of the records required to be kept pursuant to
Page 4, Line 41this subsection (2)(e) and any other records deemed necessary
Page 4, Line 42by the enterprise for the determination of the correct amount
Page 4, Line 43of the large employer health-care support fee to the enterprise,
Page 5, Line 1if so requested. The enterprise may establish the acceptable
Page 5, Line 2form of such records.
Page 5, Line 3(f) The enterprise and department of revenue shall adopt
Page 5, Line 4policies or rules consistent with the rules concerning the filing
Page 5, Line 5and payment provisions of section 39-21-119 that apply to the
Page 5, Line 6filing and payment duties imposed by this section.
Page 5, Line 7(3) (a) (I) The department of revenue shall collect and
Page 5, Line 8enforce the large employer health-care support fee on behalf
Page 5, Line 9of the enterprise following notice from the enterprise to the
Page 5, Line 10department of revenue pursuant to subsection (2)(b)(IV) of this
Page 5, Line 11section or upon receipt of notice of final determination
Page 5, Line 12pursuant to subsection (2)(c)(II) of this section.
Page 5, Line 13(II) The department of revenue shall retain an amount
Page 5, Line 14that does not exceed the total cost of collecting,
Page 5, Line 15administering, and enforcing the large employer health-care
Page 5, Line 16support fee and shall transmit the amount retained to the state
Page 5, Line 17treasurer, who shall credit it to the appropriate cash fund for
Page 5, Line 18the department of revenue.
Page 5, Line 19(b) (I) A large employer shall pay the department of
Page 5, Line 20revenue the amount set forth in the notice issued by the
Page 5, Line 21enterprise pursuant to subsection (2)(b)(IV) of this section
Page 5, Line 22within sixty days after the mailing of the notice unless the
Page 5, Line 23employer timely filed a written request for review. If a timely
Page 5, Line 24request for review is filed, the large employer shall pay the
Page 5, Line 25department of revenue the amount due, if any, as stated in the
Page 5, Line 26final determination of the enterprise within sixty days after the
Page 5, Line 27mailing of the final determination. The department of revenue
Page 5, Line 28may require electronic payment of any amount due pursuant to
Page 5, Line 29this section.
Page 5, Line 30(c) (I) If a large employer does not pay the large employer
Page 5, Line 31health-care support fee due, the department of revenue shall
Page 5, Line 32add interest, pursuant to section 39-21-110.5, to the unpaid
Page 5, Line 33amount and a penalty equal to the greater of:
Page 5, Line 34(A) Fifteen dollars; or
Page 5, Line 35(B) Ten percent of the unpaid amount, plus one-half
Page 5, Line 36percent per month from the date when due, not to exceed
Page 5, Line 37eighteen percent in the aggregate.
Page 5, Line 38(II) The department of revenue shall proceed to collect
Page 5, Line 39the unpaid amount, and any interest or penalty added to the
Page 5, Line 40unpaid amount, pursuant to article 21 of title 39 in the same
Page 5, Line 41manner as any unpaid tax, penalty, or interest assessed
Page 5, Line 42pursuant to article 21 of title 39. All methods of collection and
Page 5, Line 43remedies authorized by article 21 of title 39 are available to
Page 6, Line 1the department of revenue for purposes of enforcing this
Page 6, Line 2section.
Page 6, Line 3(III) The department of revenue shall not file a notice of
Page 6, Line 4lien, issue a distraint warrant, institute a suit for collection, or
Page 6, Line 5take any other action to collect the amount due more than
Page 6, Line 6three years after the payment is due; except that a notice of lien
Page 6, Line 7that has been filed prior to the expiration of the three-year
Page 6, Line 8period shall continue for one year after the expiration of the
Page 6, Line 9three-year period.
Page 6, Line 10(d) The department of revenue may:
Page 6, Line 11(I) Grant a reasonable extension of time for paying the
Page 6, Line 12large employer health-care support fee;
Page 6, Line 13(II) Waive, for good cause shown, any penalty or interest
Page 6, Line 14assessed pursuant to this section;
Page 6, Line 15(III) Compromise any civil case arising pursuant to this
Page 6, Line 16section as set forth in section 39-21-106; and
Page 6, Line 17(IV) Adopt, amend, or rescind rules necessary for the
Page 6, Line 18administration of this section in accordance with article 4 of
Page 6, Line 19title 24.
Page 6, Line 20(e) Except for the amount retained by the department of
Page 6, Line 21revenue pursuant to subsection (3)(a)(II) of this section, money
Page 6, Line 22that the department of revenue collects pursuant to this
Page 6, Line 23section is custodial money held temporarily by the department
Page 6, Line 24of revenue and the state treasurer solely for the purpose of
Page 6, Line 25transferring the money to the large employer health-care
Page 6, Line 26support fund for use by the enterprise. Based on the enterprise's
Page 6, Line 27status as an enterprise, the money collected and transferred to
Page 6, Line 28the large employer health-care support fund is not subject to
Page 6, Line 29section 20 of article X of the state constitution at any time
Page 6, Line 30during the money's collection, transfer, and use.
Page 6, Line 31(4) The enterprise may annually adjust the fee as
Page 6, Line 32determined pursuant to subsection (2)(b)(II) of this section for
Page 6, Line 33inflation, to reflect the cost of services provided to large
Page 6, Line 34employers, including medical assistance costs for supported
Page 6, Line 35workers or for other reasons determined by the board.
Page 6, Line 36(5) The enterprise may pay, from fee revenue received by
Page 6, Line 37the enterprise, reasonable and necessary direct and indirect
Page 6, Line 38expenses relating to:
Page 6, Line 39(a) Services or support provided to the enterprise by the
Page 6, Line 40state department relating to the purposes of the enterprise; and
Page 6, Line 41(b) The department of revenue's collection and
Page 6, Line 42enforcement of the fee from large employers and transmittal
Page 6, Line 43of the fee to the state treasurer.
Page 7, Line 1(6) For purposes of imposing, assessing, and collecting the
Page 7, Line 2fee, an employer shall comply with requests for data from the
Page 7, Line 3enterprise, and any state agencies requesting data on behalf of
Page 7, Line 4the enterprise, that are necessary to implement the enterprise's
Page 7, Line 5powers and duties pursuant to this part 12.".
Page 7, Line 6Strike pages 16 through 18.
Page 7, Line 7Page 19, strike lines 1 through 15.
Page 7, Line 8Page 19, strike lines 23 and 24.
Page 7, Line 9Reletter succeeding paragraphs accordingly.
Page 7, Line 10Page 20, strike lines 13 through 27.
Page 7, Line 11Page 21, strike lines 1 through 25 and substitute:
Page 7, Line 12"SECTION 2. In Colorado Revised Statutes, 39-21-102, add (10)
Page 7, Line 13as follows:
Page 7, Line 1439-21-102. Scope.
Page 7, Line 15(10) This article 21 applies to the fee imposed pursuant to
Page 7, Line 16section 25.5-1-1206, but only to the extent that this article 21 is
Page 7, Line 17not inconsistent with section 25.5-1-1206.".
Page 7, Line 18Renumber succeeding sections accordingly.