Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0679.01 Megan McCall x4215 HOUSE BILL 22-1133 House Committees Senate Committees Business Affairs & Labor A BILL FOR AN ACT C ONCERNING AN ADVANCE PAYMENT OF PREMIUMS FOR STATE101 EMPLOYEE FAMILY AND MEDICAL LEAVE INS URANCE COVERAGE102 FROM THE GENERAL FUND TO THE FAMILY AND MEDICAL LEAVE103 INSURANCE FUND FOR USE BY THE DIVISION OF FAMILY AND104 MEDICAL LEAVE INSURANCE TO IMPLEMENT SERVICES105 PRESCRIBED UNDER THE "PAID FAMILY AND MEDICAL LEAVE106 I NSURANCE ACT".107 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 .) HOUSE SPONSORSHIP Gray, SENATE SPONSORSHIP Winter, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. The bill requires the state treasurer to transfer money from the general fund to the family and medical leave insurance fund for use by the division of family and medical leave insurance (division) created under the "Paid Family and Medical Leave Insurance Act" (act). The money is an advance payment of premiums for state employee coverage that the state is required to pay under the family and medical leave insurance program established by the act. The bill directs the division to credit the transferred money to state employer accounts and to annually continue to credit money to the state employer accounts until such accounts have a zero dollar balance and begin owing quarterly premiums as set forth in the act. The bill also requires the executive director of the department of labor and employment to submit a report concerning the state employer accounts to several state departments and agencies. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 hereby finds and declares that:3 (a) In 2020, Colorado voters enacted the "Paid Family and4 Medical Leave Insurance Act", codified at section 8-13.3-501, et seq.,5 Colorado Revised Statutes. The "Paid Family and Medical Leave6 Insurance Act" created an enterprise, the division of family and medical7 leave insurance (division), to administer a new paid family and medical8 leave program (program).9 (b) To provide the services pursuant to the program, the division10 will collect premiums for family and medical leave benefits. However,11 prepayment of certain premiums is necessary to fund the staffing and12 infrastructure necessary to establish the program.13 (c) Given the importance of the program to Coloradans14 experiencing major life events impacting their ability to work, the general15 assembly desires to assist the division in establishing the program to16 provide the services set forth by the "Paid Family and Medical Leave17 HB22-1133-2- Insurance Act" through advanced payment of premiums for state1 employee coverage. The transfer of money for the advanced payment of2 premiums to the division is a payment for services and is not a grant for3 purposes of section 20 (2)(d) of article X of the state constitution or as4 defined in section 24-77-102 (7), Colorado Revised Statutes.5 SECTION 2. In Colorado Revised Statutes, 8-13.3-507, amend6 (2) as follows:7 8-13.3-507. Premiums. (2) N OTWITHSTANDING THE ADVANCE8 PAYMENT OF PREMIUMS SET FORTH IN SECTION 8-13.3-518 (4)(a),9 beginning on January 1, 2023, for each employee, an employer shall remit10 to the fund established under section 8-13.3-518 premiums in the form11 and manner determined by the division.12 SECTION 3. In Colorado Revised Statutes, 8-13.3-518, amend13 (1); and add (4) as follows:14 8-13.3-518. Family and medical leave insurance fund -15 establishment and investment - repeal. (1) There is hereby created in16 the state treasury the family and medical leave insurance fund. The fund17 consists of premiums paid pursuant to section 8-13.3-507, and revenues18 from revenue bonds issued in accordance with section 8-13.3-508 (2)(d),19 AND MONEY FROM THE GENERAL F UND TRANSFERRED PURS UANT TO20 SUBSECTION (4) OF THIS SECTION. Money in the fund may be used only to21 pay revenue bonds; to repay the general fund loan provided in subsection22 (3) of this section; to reimburse employers who pay family and medical23 leave insurance benefits directly to employees in accordance with section24 8-13.3-515 (1); and to pay benefits under, and to administer, the program25 pursuant to this part 5, including technology costs to administer the26 program and outreach services developed under section 8-13.3-520.27 HB22-1133 -3- Interest earned on the investment of money in the fund remains in the1 fund. Any money remaining in the fund at the end of a fiscal year remains2 in the fund and does not revert to the general fund or any other fund. State3 money in the fund is continuously appropriated to the division for the4 purpose of this section. The general assembly shall not appropriate money5 from the fund for the general expenses of the state.6 (4) (a) O N THE EFFECTIVE DATE OF THIS SUBSECTION (4), OR AS7 SOON AS POSSIBLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER8 FIFTY-SEVEN MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND .9 T HE MONEY IS AN ADVANCE PAYMENT OF PREMIUMS FOR STATE EMPLOYEE10 COVERAGE THAT THE STATE IS REQUIRED TO PAY UNDER THE FAMILY AND11 MEDICAL LEAVE INSURANCE PROGRAM ESTABLISHED IN SECTION12 8-13.3-516 AND IS NOT A GRANT FOR PURPOSES OF SECTION 20 (2)(d) OF13 ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN SECTION14 24-77-102 (7). LIABILITIES THAT ARE RECORDED IN THE FUND BUT ARE15 NOT REQUIRED TO BE PAID IN THE CURRENT FISCAL YEAR SHALL NOT BE16 CONSIDERED WHEN CALCULATING SUFFICIENT STATUTORY FUND BALANCE17 FOR PURPOSES OF SECTION 24-75-109.18 (b) (I) O N OR BEFORE DECEMBER 31, 2022, THE DIVISION SHALL19 DETERMINE THE MANNER IN WHICH THE STATE WILL RECEIVE A CREDIT FOR20 THE ADVANCED PAYMENT OF PREMIUMS IT HAS PAID PURSUANT TO21 SUBSECTION (4)(a) OF THIS SECTION FOR PREMIUMS IT IS REQUIRED TO PAY22 UNDER THE FAMILY AND MEDICAL LEAVE INSURANCE PROGRAM23 ESTABLISHED IN SECTION 8-13.3-516. THE STATE SHALL RECEIVE CREDIT24 UNTIL THE AMOUNT OF PREMIUMS THE STATE IS REQUIRED TO PAY25 EXCEEDS FIFTY-SEVEN MILLION DOLLARS. ON OR BEFORE DECEMBER 31,26 2022, THE DIVISION SHALL SUBMIT A REPORT TO THE EXECUTIVE DIRECTOR27 HB22-1133 -4- OF THE DEPARTMENT OF PERSONNEL , THE DIRECTOR OF THE OFFICE OF1 STATE PLANNING AND BUDGETING , AND THE JOINT BUDGET COMMITTEE2 SETTING FORTH THE MANNER IN WHICH IT DETERMINES TO CREDIT THE3 STATE PURSUANT TO THIS SUBSECTION (4)(b)(I).4 (II) O N JULY 1, 2023, AND ON JULY 1 OF EACH YEAR THEREAFTER,5 THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF LABOR AND6 EMPLOYMENT SHALL SUBMIT A REPORT OF THE AMOUNT OF REMAINING7 CREDIT THE STATE CAN RECEIVE FOR PREMIUMS IT IS REQUIRED TO PAY TO8 THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF PERSONNEL , THE STATE9 TREASURER, THE DIRECTOR OF THE OFFICE OF STATE PLANNING AND10 BUDGETING, AND THE JOINT BUDGET COMMITTEE .11 (c) T HE ADVANCE PAYMENT OF PREMIUMS BY THE STATE12 PURSUANT TO THIS SUBSECTION (4) SHALL NOT CONSTITUTE OR BECOME13 AN INDEBTEDNESS, A DEBT, OR A LIABILITY OF THE STATE. THE STATE14 SHALL NOT BE LIABLE ON SUCH ADVANCE PAYMENT , NOR SHALL THE15 ADVANCE PAYMENT CONSTITUTE THE GIVING , PLEDGING, OR LOANING OF16 THE FULL FAITH AND CREDIT OF THE STATE. ADVANCE PAYMENTS SHALL17 BE EXEMPT FROM THE STATE'S FISCAL RULES.18 SECTION 4. Safety clause. The general assembly hereby finds,19 determines, and declares that this act is necessary for the immediate20 preservation of the public peace, health, or safety.21 HB22-1133 -5-