Senate Bill 25-271 Revised

A Bill for an Act

• Page 1, Line 101Concerning the repeal of part 3 of article 13.3 of title 8,

• Page 1, Line 102Colorado Revised Statutes, containing obsolete

• Page 1, Line 103provisions relating to the study of a paid family and

• Page 1, Line 104medical leave program.

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/.)

Statutory Revision Committee. Senate Bill 19-188 created a family and medical leave task force and required the department of labor and employment to analyze various aspects of the administration of a family and medical leave program (program) and to contract for an actuarial study of a proposed program. The actuarial study was completed in 2019 and the task force completed its final report on January 8, 2020. Therefore, the bill repeals these obsolete statutory provisions contained in part 3 of article 13.3 of title 8, Colorado Revised Statutes.

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

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, repeal part 3 of article 13.3 of title 8 as follows:

• Page 2, Line 38-13.3-301.  Legislative declaration. (1)  The general assembly hereby finds and declares that:

• Page 2, Line 4(a)  Colorado is a family-friendly state, and providing the workers

• Page 2, Line 5of Colorado with family and medical leave insurance will encourage an

• Page 2, Line 6entrepreneurial atmosphere and economic growth and promote a healthy business climate;

• Page 2, Line 7(b)  The United States is the only industrialized nation in the world

• Page 2, Line 8that does not mandate access to paid leave benefits. Simultaneously,

• Page 2, Line 9nearly half of Americans live paycheck to paycheck and are unable to access two thousand dollars in the event of an emergency.

• Page 2, Line 10(c)  This part 3 prepares for the implementation of a paid family

• Page 2, Line 11and medical leave program in the state by completing a thorough analysis

• Page 2, Line 12of paid family and medical leave programs by experts in the field, the

• Page 2, Line 13establishment of a family and medical leave implementation task force, and actuarial and third-party studies;

• Page 2, Line 14(d)  As specified in this part 3:

• Page 2, Line 15(I)  The timeline for the analysis and implementation of a statewide paid family and medical leave program is as follows:

• Page 2, Line 16(A)  By July 1, 2019, appointing authorities are required to make

• Page 2, Line 17their appointments to the task force;

• Page 3, Line 1(B)  By October 1, 2019, the department is required to provide the

• Page 3, Line 2task force with the results of a third-party study and paid family and

• Page 3, Line 3medical leave plan recommendations from the experts in the field, and the

• Page 3, Line 4task force is required to accept and consider public comment regarding

• Page 3, Line 5the administration and establishment of a paid family and medical leave program;

• Page 3, Line 6(C)  By November 1, 2019, the task force shall make its initial

• Page 3, Line 7recommendation on a family and medical leave program for employees

• Page 3, Line 8in the state and provide the recommendation to an actuary contracted by the department;

• Page 3, Line 9(D)  By December 1, 2019, an independent actuarial analysis must be completed and submitted to the task force;

• Page 3, Line 10(E)  By January 8, 2020, the task force shall report its final

• Page 3, Line 11recommendation on a paid family and medical leave program for all employees in the state;

• Page 3, Line 12(II)  The timeline may also be assumed as follows:

• Page 3, Line 13(A)  By July 1, 2020, the family and medical leave program will be established;

• Page 3, Line 14(B)  By January 1, 2022, the public education and outreach campaign will begin;

• Page 3, Line 15(C)  By January 1, 2023, the family and medical leave program funding will begin; and

• Page 3, Line 16(D)  By January 1, 2024, the family and medical leave program will start paying benefits;

• Page 3, Line 17(e)  The intent of this part 3 is to assist in the preparation of

• Page 3, Line 18legislation in the 2020 legislative session establishing a paid family and

• Page 3, Line 19medical leave program in the state.

• Page 4, Line 18-13.3-302.  Definitions. As used in this part 3, unless the context otherwise requires:

• Page 4, Line 2(1)  "Department" means the department of labor and employment.

• Page 4, Line 3(2)  "Executive director" means the executive director of the department.

• Page 4, Line 4(3)  "Task force" means the family and medical leave implementation task force created in section 8-13.3-304 (1).

• Page 4, Line 58-13.3-303.  Department to perform analyses. (1) (a)  The

• Page 4, Line 6department shall analyze the feasibility of contracting with a third party

• Page 4, Line 7to administer parts of a paid family and medical leave program for all

• Page 4, Line 8employees in the state as an alternative to state administration of all

• Page 4, Line 9aspects of such a program. In determining whether a third party should

• Page 4, Line 10administer parts of a paid family and medical leave program, the

• Page 4, Line 11department shall consider whether doing so would be cost-effective, in

• Page 4, Line 12the short term and in the long term for both the state and covered

• Page 4, Line 13individuals, and lead to more efficient program administration and benefit

• Page 4, Line 14management while assuring quality, worker experience, affordability,

• Page 4, Line 15coverage, and program accountability, as compared to if the state administers all aspects of the program.

• Page 4, Line 16(b)  In fulfilling the requirements of this subsection (1), the

• Page 4, Line 17department shall make a request for information from third parties that

• Page 4, Line 18may be willing to administer single or multiple parts of a paid family and

• Page 4, Line 19medical leave program. The requests for information pursuant to this

• Page 4, Line 20subsection (1)(b) must solicit information from third parties that includes, but is not limited to, the third party's:

• Page 4, Line 21(I)  Prior experience with paid family and medical leave insurance

• Page 4, Line 22or providing monetary benefits in Colorado related to employees taking

• Page 5, Line 1leave from work due to serious health conditions, parental bonding, or other family and medical leave purposes;

• Page 5, Line 2(II)  Commitment to affirmative action, diversity, equity, and inclusion policies;

• Page 5, Line 3(III)  Language access experience and cultural competency; and

• (IV)  Current or expected employee pay rates and benefits.

• Page 5, Line 4(c)  Any study pursuant to this section must consider:

• Page 5, Line 5(I)  The estimated difference in administrative costs charged by

• Page 5, Line 6third parties as compared to a state-run paid family and medical leave program;

• Page 5, Line 7(II)  The estimated difference in claims processing speeds;

• Page 5, Line 8(III)  The state's costs to oversee any third-party administration,

• Page 5, Line 9including costs to conduct annual audits and review regular reports from the third party;

• Page 5, Line 10(IV)  The ability of a third party to satisfy necessary worker privacy and confidentiality requirements;

• Page 5, Line 11(V)  The ability of a third party to access existing state data or to effectively interface with the department's systems and information;

• Page 5, Line 12(VI)  The potential costs and challenges associated with

• Page 5, Line 13terminating a third-party contract due to quality or compliance concerns

• Page 5, Line 14following implementation of the program, as well as the feasibility of

• Page 5, Line 15timely substituting administration by the state or a different third party without a disruption in benefits and administration; and

• Page 5, Line 16(VII)  A timeline that presumes a paid family and medical leave

• Page 5, Line 17program that is established by July 1, 2020; begins public education and

• Page 5, Line 18outreach on January 1, 2022; establishes the funding stream on January

• Page 5, Line 191, 2023; and starts paying benefits on January 1, 2024.

• Page 6, Line 1(d)  The department's study must specifically address the effect of

• Page 6, Line 2using a third-party administrator on the following aspects of a paid family and medical leave program:

• Page 6, Line 3(I)  Claims appeals and administrative enforcement;

• (II)  Premium rate setting and collection of premiums;

• Page 6, Line 4(III)  Approval and oversight of private plans, if applicable; and

• Page 6, Line 5(IV)  Management of elective coverage of employees who may not be included in the program.

• Page 6, Line 6(2) (a) (I)  The department shall contract with at least three experts

• Page 6, Line 7in the field of paid family and medical leave selected by the task force. The experts must be local and national experts:

• Page 6, Line 8(A)  With demonstrated experience studying the health, economic,

• Page 6, Line 9and social benefits of access to paid leave; the cost and economic impact

• Page 6, Line 10of paid leave; and the drafting and implementation of paid family and medical leave programs at the state level; and

• Page 6, Line 11(B)  Who have some familiarity with cross-state comparisons.

• Page 6, Line 12(II)  The department shall commission a report from the experts

• Page 6, Line 13under contract with the department pursuant to this subsection (2)(a) on

• Page 6, Line 14the establishment of a paid family and medical leave program for

• Page 6, Line 15employees in the state. The recommendations must specify the parameters that ensure that a program:

• Page 6, Line 16(A)  Is affordable for the lowest-wage workers;

• (B)  Is equitable across workers of all incomes and classifications;

• Page 6, Line 17(C)  Is accessible particularly to workers least likely to have access to paid leave today;

• Page 6, Line 18(D)  Is adequate; and

• Page 6, Line 19(E)  Includes a minimum duration of leave that meets

• Page 7, Line 1evidence-based standards and wage replacement that is sufficient to allow the lowest-wage workers to participate.

• Page 7, Line 2(b)  The recommendations must review, evaluate, and assess at least the following elements, without limitation:

• Page 7, Line 3(I)  The purposes of the leave, including serious illness, caring for

• Page 7, Line 4a loved one with a serious illness, bonding with a new child, and needs

• Page 7, Line 5arising from military deployment and the effects of domestic violence, stalking, and sexual assault;

• Page 7, Line 6(II)  Self-employed workers' access to paid family and medical leave and a mechanism to allow self-employed workers to participate;

• Page 7, Line 7(III)  Eligibility to take leave;

• Page 7, Line 8(IV)  The definition of family or family member for whom an individual may take leave for purposes of providing care;

• Page 7, Line 9(V)  Job protection and other employment protections, including their effect on an individual's ability to take leave;

• Page 7, Line 10(VI)  The duration of leave;

• (VII)  The amount of the wage replacement;

• Page 7, Line 11(VIII)  The maximum weekly wage replacement amount;

• (IX)  The program funding structure;

• Page 7, Line 12(X)  Program implementation;

• (XI)  The role of third-party vendors on program sustainability;

• Page 7, Line 13(XII)  The solvency of a paid family and medical leave fund under various models;

• Page 7, Line 14(XIII)  The portability of paid family and medical leave benefits;

• Page 7, Line 15(XIV)  The sustainability of a paid family and medical leave program;

• Page 7, Line 16(XV)  How a paid family and medical leave program would interact with other benefits; and

• Page 8, Line 1(XVI)  A timeline that presumes a paid family and medical leave

• Page 8, Line 2program that is established by July 1, 2020; begins education and

• Page 8, Line 3outreach on January 1, 2022; establishes the funding stream on January 1, 2023; and starts paying benefits on January 1, 2024.

• Page 8, Line 4(3)  No later than October 1, 2019:

• Page 8, Line 5(a)  The department shall provide the task force created in section 8-13.3-304 with:

• Page 8, Line 6(I)  The results of the third-party study conducted pursuant to subsection (1) of this section; and

• Page 8, Line 7(II)  The paid family and medical leave plan report from experts commissioned in accordance with subsection (2) of this section; and

• Page 8, Line 8(b)  The department of public health and environment shall provide

• Page 8, Line 9the task force with a report detailing the health benefits related to paid family and medical leave.

• Page 8, Line 10(4)  The department shall contract for the services of a qualified

• Page 8, Line 11private actuary to perform an actuarial study of the initial

• Page 8, Line 12recommendation for a family and medical leave program created by the

• Page 8, Line 13task force pursuant to section 8-13.3-304 (8)(b). The actuarial study shall be provided to the task force no later than December 1, 2019.

• Page 8, Line 148-13.3-304.  Family and medical leave implementation task

• Page 8, Line 15force. (1)  There is hereby created in the department the family and medical leave implementation task force.

• Page 8, Line 16(2)  The task force consists of the following members:

• Page 8, Line 17(a)  Three members who are workers or represent an organization

• Page 8, Line 18that represents workers' interests in paid family and medical leave, each

• Page 8, Line 19of whom shall be appointed from a list of at least three names submitted by a recognized statewide organization that promotes workers' rights;

• Page 9, Line 1(b)  Three members who are private employers with a range of

• Page 9, Line 2business size and experience in providing employees with paid family and

• Page 9, Line 3medical leave, each of whom shall be appointed from a list of at least

• Page 9, Line 4three names submitted by a recognized statewide organization of employers;

• Page 9, Line 5(c)  One member who is a representative of a state policy organization that works on issues of economic opportunity;

• Page 9, Line 6(d)  One member who is a private insurer with experience in

• Page 9, Line 7administering temporary disability or family and medical leave insurance benefits;

• Page 9, Line 8(e)  One member who represents a state policy organization that works on health advocacy;

• Page 9, Line 9(f)  One labor economist with demonstrated research or expertise

• Page 9, Line 10in studying paid family and medical leave and labor standards, and the data necessary to do so;

• Page 9, Line 11(g)  One member who is a representative of a statewide domestic violence organization;

• Page 9, Line 12(h)  One member who is a professional from a recognized

• Page 9, Line 13institution of higher education and who has expertise in studying paid family and medical leave;

• Page 9, Line 14(i)  One member who is a representative of organized labor; and

• Page 9, Line 15(j)  Two nonvoting members, one of whom must represent the department.

• Page 9, Line 16(3)  The members of the task force are appointed as follows:

• (a)  The governor shall appoint one member;

• Page 9, Line 17(b)  The speaker of the house of representatives shall appoint four members;

• Page 10, Line 1(c)  The president of the senate shall appoint four members;

• (d)  The house minority leader shall appoint two members;

• Page 10, Line 2(e)  The senate minority leader shall appoint two members;

• Page 10, Line 3(f)  The executive director shall appoint one nonvoting member; and

• Page 10, Line 4(g)  The executive director of the department of personnel shall appoint one nonvoting member.

• Page 10, Line 5(4) (a)  The appointing authorities shall make the appointments to the task force no later than July 1, 2019.

• Page 10, Line 6(b)  In making the appointments, the appointing authorities shall

• Page 10, Line 7ensure that the appointments reflect communities of color, rural

• Page 10, Line 8communities, and historically underutilized businesses, as defined in section 24-49.5-105 (4).

• Page 10, Line 9(c)  The department shall assist and coordinate the appointing

• Page 10, Line 10authorities to ensure that members appointed to the task force pursuant to

• Page 10, Line 11subsection (3) of this section meet the membership requirements specified in subsection (2) of this section.

• Page 10, Line 12(5)  Each member of the task force serves at the pleasure of the appointing authority.

• Page 10, Line 13(6)  Each member of the task force serves without compensation

• Page 10, Line 14but is entitled to receive reimbursement for actual and necessary expenses

• Page 10, Line 15the member incurs in the performance of the member's duties as a member of the task force.

• Page 10, Line 16(7) (a)  The member appointed by the executive director shall call the first meeting of the task force.

• Page 10, Line 17(b)  The task force shall elect a chair from among its voting members.

• Page 11, Line 1(8) (a)  No later than September 1, 2019, the task force shall accept

• Page 11, Line 2and consider public comment regarding the administration and

• Page 11, Line 3establishment of a paid family and medical leave program in the state.

• Page 11, Line 4The task force shall receive public comment for a minimum of thirty days.

• Page 11, Line 5(b)  No later than November 1, 2019, the task force shall make an

• Page 11, Line 6initial recommendation on a family and medical leave program for

• Page 11, Line 7employees in the state and provide the recommendation to the actuary

• Page 11, Line 8contracted by the department pursuant to section 8-13.3-303 (4). In

• Page 11, Line 9making the recommendation, the task force shall consider the information it receives pursuant to section 8-13.3-303 (3).

• Page 11, Line 10(c)  No later than January 8, 2020, after consideration of the

• Page 11, Line 11actuarial analysis performed on the task force's initial recommendation,

• Page 11, Line 12the task force shall report its final recommendation on a paid family and

• Page 11, Line 13medical leave program for all employees in the state, along with the

• Page 11, Line 14third-party administration study made pursuant to section 8-13.3-303 (1), and the actuarial study made pursuant to section 8-13.3-303 (4) to:

• Page 11, Line 15(I)  The senate committees on finance and business, labor, and technology, or their successor committees;

• Page 11, Line 16(II)  The house of representatives committees on finance and business affairs and labor, or their successor committees; and

• Page 11, Line 17(III)  The governor.

• Page 11, Line 18(d)  Recommendations made by the task force pursuant to this

• Page 11, Line 19subsection (8) should attempt to meet a timeline that presumes a paid

• Page 11, Line 20family and medical leave program that is established by July 1, 2020;

• Page 11, Line 21begins education and outreach on January 1, 2022; establishes the funding stream on January 1, 2023; and starts paying benefits on January 1, 2024.

• Page 12, Line 1(9)  Upon request by the task force, the department shall provide

• Page 12, Line 2office space, equipment, and staff services as may be necessary to implement this section.

• Page 12, Line 38-13.3-305.  Paid family and medical leave program

• Page 12, Line 4implementation authorization. The department shall not implement the

• Page 12, Line 5recommended plan for a paid family and medical leave program unless

• Page 12, Line 6the general assembly, acting by bill, directs the department to implement

• Page 12, Line 7the program. If the department is directed to implement the plan, it shall

• Page 12, Line 8begin implementation by a date specified by the general assembly acting by bill.

• Page 12, Line 9SECTION 2.  Act subject to petition - effective date. This act

• Page 12, Line 10takes effect at 12:01 a.m. on the day following the expiration of the

• Page 12, Line 11ninety-day period after final adjournment of the general assembly; except

• Page 12, Line 12that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 12, Line 13of the state constitution against this act or an item, section, or part of this

• Page 12, Line 14act within such period, then the act, item, section, or part will not take

• Page 12, Line 15effect unless approved by the people at the general election to be held in

• Page 12, Line 16November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.