Page 1
February 1, 2022 HB 22-1133
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0679
Rep. Gray
Sen. Winter
Date:
Bill Status:
Fiscal Analyst:
February 1, 2022
House Business
Erin Reynolds | 303-866-4146
Erin.Reynolds@state.co.us
Bill Topic: FAMILY AND MEDICAL LEAVE INSURANCE FUND
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill transfers $57.0 million from the General Fund to the Family and Medical Leave
Insurance Fund to prepay state employer premiums to the Department of Labor and
Employment. It creates a one-time state transfer in FY 2022-23 and will reduce
centrally appropriated costs for agencies by the same amount over approximately four
fiscal years.
Appropriation
Summary:
The Family and Medical Leave Insurance Fund is continuously appropriated to the
Department of Labor and Employment. Depending on timing of the bill's passage, the
bill may require a reduction from the Paid Family Medical Leave Initiative line within
each agency budget of $4.9 million in FY 2022-23.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 22-1133
Current Year
FY 2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- - -
Expenditures Centrally Appropriated
1
- ($4,908,466) ($9,816,932)
Total Expenditures - ($4,908,466) ($9,816,932)
Transfers General Fund ($57.0 million) - -
Cash Funds $57.0 million - -
Net Transfer $0 - -
Other Budget Impacts - - -
1
The FY 2022-23 Total Compensation Request submitted by the Department of Personnel and Administration includes
$4,908,466, as a POTS appropriation for a half-year of state employer Family and Medical Leave Insurance premiums,
to be included in the FY 2022-23 Long Bill. If this bill passes prior to the Long Bill, this reduction may not need to be
appropriated in the bill, and will be adjusted in the Long Bill instead. Page 2
February 1, 2022 HB 22-1133
Summary of Legislation
The bill transfers $57.0 million from the General Fund to the Family and Medical Leave Insurance
Fund for advance payments into state employer accounts under the Paid Family and Medical Leave
Insurance Act administered by the Division of Family and Medical Leave Insurance in the Colorado
Department of Labor and Employment (CDLE).
When those accounts have a $0 balance, the state will begin paying quarterly premiums. The division
must report the manner in which it determines the state will receive credit for the advance payment
to the Department of Personnel and Administration, the Office of State Planning and Budgeting, and
the Joint Budget Committee by December 31, 2022. The bill specifies that advance payments of
premiums do not constitute indebtedness or a state liability and are exempt from the state’s fiscal
rules.
Background
The Family and Medical Leave Insurance Program, administered by the CDLE, was approved by
voters in November 2020 through citizen-initiated Proposition 118. The program was created as an
enterprise and its revenue does not count toward the state’s revenue limit under TABOR. It requires
employers and employees in Colorado to pay a payroll premium of 0.90 percent, with a minimum of
half paid by the employer, beginning January 1, 2023, in order to finance paid family and medical
leave insurance benefits. Beginning January 1, 2024, eligible employees may receive up to 12 weeks
of paid family and medical leave insurance benefits. Apart from a $1.5 million transfer from the
General Fund to the Family and Medical Leave Insurance Fund, the program does not expect to
receive funding until January 1, 2023, when premiums begin.
State Transfers
In the current FY 2021-22, the bill transfers $57.0 million from the General Fund to the Family and
Medical Leave Insurance Fund.
State Expenditures
The advance payment of the state’s share of employer premiums will result in a reduction in state
expenditures of $4,908,466 in FY 2022-23 (half-year impact) and a reduction of $9,816,932 in
FY 2023-24, with ongoing reductions until the $57.0 million prepayment is drawn down. As discussed
in the Background section, these amounts represent the employer contribution of 0.90 percent of all
appropriated positions within the state, appropriated through the “Paid Family Medical Leave
Initiative” line within each agency budget.
Other Budget Impacts
The Family and Medical Leave Insurance Program is a state government enterprise, with revenue
exempt from TABOR. The fiscal note assumes that advance premium payments do not constitute
grant funding for purposes of determining the program's enterprise status. Page 3
February 1, 2022 HB 22-1133
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
If this bill is passed after the FY 2022-23 Long Bill, it will requires a total reduction of $4,908,466 in the
centrally appropriated POTS appropriation titled Paid Family Medical Leave Initiative, distributed
within each agency budget.
If this bill is enacted prior to passage of the Long Bill, it is assumed that the required adjustments in
appropriations for this bill can be made as adjustments to the Long Bill, rather than includes as
appropriations in this bill.
State and Local Government Contacts
Information Technology Labor and Employment
Personnel and Administration Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.