Colorado 2024 2024 Regular Session

Colorado House Bill HB1374 Amended / Bill

Filed 04/22/2024

                    Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-1044.01 Jason Gelender x4330
HOUSE BILL 24-1374
House Committees Senate Committees
Judiciary Judiciary
A BILL FOR AN ACT
C
ONCERNING MEANS OF ENSURING THAT INDEPENDENT CONTRACTORS101
WHO PERFORM LEGAL SERVICES ON BEHALF OF INDEPENDENT102
JUDICIAL AGENCIES ARE ELIGIBLE FOR THE FEDERAL PUBLIC103
SERVICE LOAN FORGIVENESS PROGRAM .104
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
.)
Independent contractors (contractors) were previously ineligible
for the federal public service loan forgiveness program (program), which
forgives remaining federal student loan liability for government and
SENATE
2nd Reading Unamended
April 22, 2024
HOUSE
3rd Reading Unamended
April 8, 2024
HOUSE
2nd Reading Unamended
April 5, 2024
HOUSE SPONSORSHIP
Marvin and Rutinel, Amabile, Bacon, Bird, Boesenecker, Brown, Clifford, Daugherty,
deGruy Kennedy, Epps, Froelich, Garcia, Hernandez, Herod, Jodeh, Kipp, Lindsay, Lindstedt,
Mabrey, McCluskie, Ricks, Sirota, Snyder, Titone, Weissman, Woodrow
SENATE SPONSORSHIP
Michaelson Jenet,
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. nonprofit full-time employees after 10 years of qualifying service, but in
2023 the federal government made contractors who perform work for a
government agency eligible for the program if the work cannot be
performed by a government employee. Three independent judicial
agencies, the office of the alternative defense counsel, the office of the
child's representative, and the office of respondent parents' counsel
(agencies) primarily use contractors to provide legal representation on
behalf of the agencies because providing the same services through state
employees would create ethical conflicts.
To enable these contractors to qualify for the program if they
otherwise meet program requirements, the bill:
! Clarifies that state employees cannot provide the legal
services that the independent contractors provide;
! Allows the agencies to certify that a contractor appears to
be eligible for the program; and
! Because some contractors provide or have provided legal
services on behalf of more than one of the agencies,
authorizes the agencies to share contractor information to
the extent necessary to certify a contractor's eligibility for
the program.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1.  Legislative declaration. (1)  The general assembly2
finds and declares that:3
(a)  Three independent judicial agencies, the office of the4
alternative defense counsel, the office of the child's representative, and5
the office of respondent parents' counsel, primarily use independent6
contractors to provide legal representation as required by state law7
because providing the same services through government employees8
would be impracticable due to the ethical conflicts that such employment9
would create;10
(b)  Providing legal representation through independent contractors11
is a common model to address such conflicts;12
(c)  In 2007, Congress created the public service loan forgiveness13
program to allow government and nonprofit full-time employees to have14
1374-2- their federal student loans forgiven after ten years of qualifying service,1
but, unfortunately, independent contractors who provide crucial legal2
representation through contracts with government agencies were not3
eligible for the program;4
(d)  In 2023, the federal government changed the requirements for5
the program to make an independent contractor eligible for public service6
loan forgiveness if the work that the independent contractor performs for7
a government agency cannot be performed by a government employee;8
(e)  Providing opportunities for independent contractors who9
provide legal services on behalf of independent judicial agencies to be10
eligible for the same federal public service loan forgiveness that would11
be available for government employees performing similar work will12
improve recruitment and retention for crucial public service legal work13
and provide important financial benefits to Colorado residents and small14
business owners;15
(f)   Each year, these three independent judicial agencies lose16
highly qualified and trained contractors to full-time government or17
nonprofit jobs because these contractors want to be eligible for public18
service loan forgiveness, and this turnover is costly for the state and19
detrimental to clients; and20
(g)  Nothing in this act is intended to alter eligibility for state or21
local loan forgiveness, and the federal government will continue to be22
ultimately responsible for determining eligibility for federal public23
service loan forgiveness.24
(2)  The general assembly therefore declares that it is in the best25
interests of the state, the legal profession, and the people served by26
independent judicial agencies to clarify that independent contractors who27
1374
-3- provide legal services on behalf of independent judicial agencies can be1
eligible for federal public service loan forgiveness.2
SECTION 2. In Colorado Revised Statutes, 13-91-105, add (3)3
as follows:4
13-91-105.  Duties of the office of the child's representative -5
guardian ad litem and counsel for youth programs. (3)  C
OLORADO6
RELIES PRIMARILY ON AN INDEPENDENT CONTRACTOR MODEL OF LEGAL7
REPRESENTATION FOR CHILDREN AND YOUTH PROVIDED IN ACCORDANCE8
WITH THIS SECTION. WHILE THE OFFICE OF THE CHILD'S REPRESENTATIVE9
CURRENTLY PROVIDES LEGAL REPRESENTATION FOR CHILDREN AND YOUTH10
IN SOME CASE TYPES AND IN ONE COUNTY THROUGH STATE EMPLOYEES11
AND WILL CONTINUE TO EXPLORE THE USE OF A STATE EMPLOYEE STAFF12
MODEL OF LEGAL REPRESENTATION FOR CHILDREN AND YOUTH WHERE13
FEASIBLE, COLORADO'S NEED FOR LEGAL REPRESENTATION FOR CHILDREN14
AND YOUTH CANNOT BE FILLED OR PROVIDED STATEWIDE SOLELY BY15
EMPLOYEES OF THE OFFICE OF THE CHILD 'S REPRESENTATIVE. THE16
DIRECTOR OR THE DIRECTOR 'S DESIGNEE IS AUTHORIZED TO SIGN A17
CERTIFICATION FOR ANY CURRENT OR PAST INDEPENDENT CONTRACTOR18
THAT CERTIFIES THAT THE CONTRACTOR APPEARS TO BE ELIGIBLE FOR19
FEDERAL PUBLIC SERVICE LOAN FORGIVENESS AS ALLOWED BY FEDERAL20
LAW OR REGULATIONS. WITH THE AUTHORIZATION OF AN INDEPENDENT21
CONTRACTOR WHO IS PROVIDING OR HAS PROVIDED LEGAL22
REPRESENTATION ON BEHALF OF THE OFFICE , THE DIRECTOR OR THE23
DIRECTOR'S DESIGNEE MAY SHARE INFORMATION , INCLUDING THE24
CONTRACTOR'S NAME, SOCIAL SECURITY NUMBER OR FEDERAL EMPLOYER25
IDENTIFICATION NUMBER, AND THE TOTAL NUMBER OF HOURS BILLED BY26
THE CONTRACTOR BY CALENDAR YEAR , WITH OTHER INDEPENDENT27
1374
-4- JUDICIAL AGENCIES FOR THE PURPOSE OF CERTIFYING APPARENT PAST ,1
CURRENT, AND FUTURE ELIGIBILITY FOR PUBLIC SERVICE LOAN2
FORGIVENESS ALLOWED BY FEDERAL LAW OR REGULATIONS .3
SECTION 3. In Colorado Revised Statutes, 13-92-104, add (3)4
as follows:5
13-92-104.  Duties of the office of the respondent parents'6
counsel. (3)  E
MPLOYEES OF THE OFFICE ARE PROHIBITED FROM7
PROVIDING DIRECT LEGAL REPRESENTATION TO RESPONDENT PARENTS .8
F
OR THE PURPOSE OF DETERMINING ELIGIBILITY FOR FEDERAL PUBLIC9
SERVICE LOAN FORGIVENESS, AN INDEPENDENT CONTRACTOR , INCLUDING10
AN ATTORNEY, A SOCIAL WORKER, A FAMILY ADVOCATE, OR A PARENT11
ADVOCATE, WHO IS PROVIDING OR HAS PROVIDED LEGAL SERVICES TO12
RESPONDENT PARENTS PURSUANT TO THE CONTRACTOR 'S CONTRACT HAS13
A CONFLICT THAT PROHIBITS THE CONTRACTOR FROM PROVIDING THESE14
SERVICES AS A STATE EMPLOYEE . THE DIRECTOR OR THE DIRECTOR 'S15
DESIGNEE IS AUTHORIZED TO SIGN A CERTIFICATION FOR ANY CURRENT OR16
PAST INDEPENDENT CONTRACTOR THAT CERTIFIES THAT THE CONTRACTOR17
APPEARS TO BE ELIGIBLE FOR FEDERAL PUBLIC SERVICE LOAN18
FORGIVENESS AS ALLOWED BY FEDERAL LAW OR REGULATIONS . WITH THE19
AUTHORIZATION OF AN INDEPENDENT CONTRACTOR , THE DIRECTOR OR THE20
DIRECTOR'S DESIGNEE MAY SHARE INFORMATION , INCLUDING THE21
CONTRACTOR'S NAME, SOCIAL SECURITY NUMBER OR FEDERAL EMPLOYER22
IDENTIFICATION NUMBER, AND TOTAL NUMBER OF HOURS BILLED BY THE23
CONTRACTOR BY CALENDAR YEAR , WITH OTHER JUDICIAL AGENCIES FOR24
THE PURPOSE OF CERTIFYING APPARENT PAST , CURRENT, AND FUTURE25
ELIGIBILITY FOR PUBLIC SERVICE LOAN FORGIVENESS ALLOWED BY26
FEDERAL LAW OR REGULATIONS .27
1374
-5- SECTION 4. In Colorado Revised Statutes, 21-2-105, add (3) as1
follows:2
21-2-105.  Contracts with attorneys and other legal services3
providers. (3)  C
OLORADO RELIES PRIMARILY ON AN INDEPENDENT4
CONTRACTOR MODEL OF LEGAL REPRESENTATION FOR COURT -APPOINTED5
ADULT AND YOUTH REPRESENTATION IN ACCORDANCE WITH THIS SECTION6
WHEN THE PUBLIC DEFENDER 'S OFFICE HAS A LEGAL CONFLICT OF7
INTEREST. WHILE THE OFFICE OF THE ALTERNATE DEFENSE COUNSEL8
PROVIDES SOME LEGAL REPRESENTATION FOR INDIGENT INDIVIDUALS ON9
SOME CASES THROUGH STATE EMPLOYEES AND WILL CONTINUE TO10
EXPLORE THE USE OF STATE EMPLOYEE STAFF MODEL SOLUTIONS WHERE11
FEASIBLE, COLORADO'S NEED FOR CONFLICT-FREE INDIGENT DEFENSE12
COUNSEL CANNOT BE FILLED OR PROVIDED STATEWIDE BY DIRECT13
EMPLOYEES OF THE OFFICE OF THE ALTERNATE DEFENSE COUNSEL . FOR14
THE PURPOSE OF DETERMINING ELIGIBILITY FOR FEDERAL PUBLIC SERVICE15
LOAN FORGIVENESS, ANY INDEPENDENT CONTRACTOR , INCLUDING, BUT16
NOT LIMITED TO, A RESOURCE ADVOCATE , AN INVESTIGATOR, A CASE17
ASSISTANT, AN ATTORNEY, A SOCIAL WORKER, A PARALEGAL, OR A LEGAL18
RESEARCHER, WHO IS CURRENTLY PROVIDING OR HAS PREVIOUSLY19
PROVIDED LEGAL SERVICES OR SERVICES THROUGH AN INTERDISCIPLINARY20
LEGAL TEAM HAS A CONFLICT IN PROVIDING THESE SERVICES AS A STATE21
EMPLOYEE. THE DIRECTOR OF THE OFFICE OF THE ALTERNATE DEFENSE22
COUNSEL OR THE DIRECTOR 'S DESIGNEE IS AUTHORIZED TO SIGN A23
CERTIFICATION FOR ANY CURRENT OR PAST INDEPENDENT CONTRACTOR24
THAT CERTIFIES THAT THE CONTRACTOR APPEARS TO BE ELIGIBLE FOR25
FEDERAL PUBLIC SERVICE LOAN FORGIVENESS AS ALLOWED BY FEDERAL26
LAW OR REGULATIONS. WITH THE AUTHORIZATION OF AN INDEPENDENT27
1374
-6- CONTRACTOR, THE DIRECTOR OF THE OFFICE OF THE ALTERNATE DEFENSE1
COUNSEL OR THE DIRECTOR 'S DESIGNEE MAY SHARE INFORMATION ,2
INCLUDING THE CONTRACTOR 'S NAME, SOCIAL SECURITY NUMBER OR3
FEDERAL EMPLOYER IDENTIFICATION NUMBER , AND THE TOTAL NUMBER4
OF HOURS BILLED BY THE CONTRACTOR BY CALENDAR YEAR , WITH OTHER5
INDEPENDENT JUDICIAL AGENCIES FOR THE PURPOSE OF CERTIFYING6
APPARENT PAST, CURRENT, AND FUTURE ELIGIBILITY FOR PUBLIC SERVICE7
LOAN FORGIVENESS ALLOWED BY FEDERAL LAW OR REGULATIONS .8
SECTION 5. Safety clause. The general assembly finds,9
determines, and declares that this act is necessary for the immediate10
preservation of the public peace, health, or safety or for appropriations for11
the support and maintenance of the departments of the state and state12
institutions.13
1374
-7-