Colorado 2022 2022 Regular Session

Colorado House Bill HB1133 Introduced / Bill

Filed 01/21/2022

                    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
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