First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0674.01 Brita Darling x2241
SENATE BILL 25-271
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
C
ONCERNING THE REPEAL OF PART 3 OF ARTICLE 13.3 OF TITLE 8,101
C
OLORADO REVISED STATUTES, CONTAINING OBSOLETE102
PROVISIONS RELATING TO THE STUDY OF A PAID FAMILY AND103
MEDICAL LEAVE 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/
.)
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
SENATE SPONSORSHIP
Ball and Rich,
HOUSE SPONSORSHIP
Espenoza and Luck,
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. 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.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, repeal part 3 of2
article 13.3 of title 8 as follows:3
8-13.3-301. Legislative declaration. (1) The general assembly
4
hereby finds and declares that:5
(a) Colorado is a family-friendly state, and providing the workers6
of Colorado with family and medical leave insurance will encourage an7
entrepreneurial atmosphere and economic growth and promote a healthy8
business climate;9
(b) The United States is the only industrialized nation in the world10
that does not mandate access to paid leave benefits. Simultaneously,11
nearly half of Americans live paycheck to paycheck and are unable to12
access two thousand dollars in the event of an emergency.13
(c) This part 3 prepares for the implementation of a paid family14
and medical leave program in the state by completing a thorough analysis15
of paid family and medical leave programs by experts in the field, the16
establishment of a family and medical leave implementation task force,17
and actuarial and third-party studies;18
(d) As specified in this part 3:19
(I) The timeline for the analysis and implementation of a statewide20
paid family and medical leave program is as follows:21
(A) By July 1, 2019, appointing authorities are required to make22
their appointments to the task force;23
SB25-271-2- (B) By October 1, 2019, the department is required to provide the1
task force with the results of a third-party study and paid family and2
medical leave plan recommendations from the experts in the field, and the3
task force is required to accept and consider public comment regarding4
the administration and establishment of a paid family and medical leave5
program;6
(C) By November 1, 2019, the task force shall make its initial7
recommendation on a family and medical leave program for employees8
in the state and provide the recommendation to an actuary contracted by9
the department;10
(D) By December 1, 2019, an independent actuarial analysis must11
be completed and submitted to the task force;12
(E) By January 8, 2020, the task force shall report its final13
recommendation on a paid family and medical leave program for all14
employees in the state;15
(II) The timeline may also be assumed as follows:16
(A) By July 1, 2020, the family and medical leave program will17
be established;18
(B) By January 1, 2022, the public education and outreach19
campaign will begin;20
(C) By January 1, 2023, the family and medical leave program21
funding will begin; and22
(D) By January 1, 2024, the family and medical leave program23
will start paying benefits;24
(e) The intent of this part 3 is to assist in the preparation of25
legislation in the 2020 legislative session establishing a paid family and26
medical leave program in the state.27
SB25-271
-3- 8-13.3-302. Definitions. As used in this part 3, unless the context1
otherwise requires:2
(1) "Department" means the department of labor and employment.3
(2) "Executive director" means the executive director of the4
department.5
(3) "Task force" means the family and medical leave6
implementation task force created in section 8-13.3-304 (1).7
8-13.3-303. Department to perform analyses. (1) (a) The8
department shall analyze the feasibility of contracting with a third party9
to administer parts of a paid family and medical leave program for all10
employees in the state as an alternative to state administration of all11
aspects of such a program. In determining whether a third party should12
administer parts of a paid family and medical leave program, the13
department shall consider whether doing so would be cost-effective, in14
the short term and in the long term for both the state and covered15
individuals, and lead to more efficient program administration and benefit16
management while assuring quality, worker experience, affordability,17
coverage, and program accountability, as compared to if the state18
administers all aspects of the program.19
(b) In fulfilling the requirements of this subsection (1), the20
department shall make a request for information from third parties that21
may be willing to administer single or multiple parts of a paid family and22
medical leave program. The requests for information pursuant to this23
subsection (1)(b) must solicit information from third parties that includes,24
but is not limited to, the third party's:25
(I) Prior experience with paid family and medical leave insurance26
or providing monetary benefits in Colorado related to employees taking27
SB25-271
-4- leave from work due to serious health conditions, parental bonding, or1
other family and medical leave purposes;2
(II) Commitment to affirmative action, diversity, equity, and3
inclusion policies;4
(III) Language access experience and cultural competency; and5
(IV) Current or expected employee pay rates and benefits.6
(c) Any study pursuant to this section must consider:7
(I) The estimated difference in administrative costs charged by8
third parties as compared to a state-run paid family and medical leave9
program;10
(II) The estimated difference in claims processing speeds;11
(III) The state's costs to oversee any third-party administration,12
including costs to conduct annual audits and review regular reports from13
the third party;14
(IV) The ability of a third party to satisfy necessary worker15
privacy and confidentiality requirements;16
(V) The ability of a third party to access existing state data or to17
effectively interface with the department's systems and information;18
(VI) The potential costs and challenges associated with19
terminating a third-party contract due to quality or compliance concerns20
following implementation of the program, as well as the feasibility of21
timely substituting administration by the state or a different third party22
without a disruption in benefits and administration; and23
(VII) A timeline that presumes a paid family and medical leave24
program that is established by July 1, 2020; begins public education and25
outreach on January 1, 2022; establishes the funding stream on January26
1, 2023; and starts paying benefits on January 1, 2024.27
SB25-271
-5- (d) The department's study must specifically address the effect of1
using a third-party administrator on the following aspects of a paid family2
and medical leave program:3
(I) Claims appeals and administrative enforcement;4
(II) Premium rate setting and collection of premiums;5
(III) Approval and oversight of private plans, if applicable; and6
(IV) Management of elective coverage of employees who may not7
be included in the program.8
(2) (a) (I) The department shall contract with at least three experts9
in the field of paid family and medical leave selected by the task force.10
The experts must be local and national experts:11
(A) With demonstrated experience studying the health, economic,12
and social benefits of access to paid leave; the cost and economic impact13
of paid leave; and the drafting and implementation of paid family and14
medical leave programs at the state level; and15
(B) Who have some familiarity with cross-state comparisons.16
(II) The department shall commission a report from the experts17
under contract with the department pursuant to this subsection (2)(a) on18
the establishment of a paid family and medical leave program for19
employees in the state. The recommendations must specify the parameters20
that ensure that a program:21
(A) Is affordable for the lowest-wage workers;22
(B) Is equitable across workers of all incomes and classifications;23
(C) Is accessible particularly to workers least likely to have access24
to paid leave today;25
(D) Is adequate; and26
(E) Includes a minimum duration of leave that meets27
SB25-271
-6- evidence-based standards and wage replacement that is sufficient to allow1
the lowest-wage workers to participate.2
(b) The recommendations must review, evaluate, and assess at3
least the following elements, without limitation:4
(I) The purposes of the leave, including serious illness, caring for5
a loved one with a serious illness, bonding with a new child, and needs6
arising from military deployment and the effects of domestic violence,7
stalking, and sexual assault;8
(II) Self-employed workers' access to paid family and medical9
leave and a mechanism to allow self-employed workers to participate;10
(III) Eligibility to take leave;11
(IV) The definition of family or family member for whom an12
individual may take leave for purposes of providing care;13
(V) Job protection and other employment protections, including14
their effect on an individual's ability to take leave;15
(VI) The duration of leave;16
(VII) The amount of the wage replacement;17
(VIII) The maximum weekly wage replacement amount;18
(IX) The program funding structure;19
(X) Program implementation;20
(XI) The role of third-party vendors on program sustainability;21
(XII) The solvency of a paid family and medical leave fund under22
various models;23
(XIII) The portability of paid family and medical leave benefits;24
(XIV) The sustainability of a paid family and medical leave25
program;26
(XV) How a paid family and medical leave program would27
SB25-271
-7- interact with other benefits; and1
(XVI) A timeline that presumes a paid family and medical leave2
program that is established by July 1, 2020; begins education and3
outreach on January 1, 2022; establishes the funding stream on January4
1, 2023; and starts paying benefits on January 1, 2024.5
(3) No later than October 1, 2019:6
(a) The department shall provide the task force created in section7
8-13.3-304 with:8
(I) The results of the third-party study conducted pursuant to9
subsection (1) of this section; and10
(II) The paid family and medical leave plan report from experts11
commissioned in accordance with subsection (2) of this section; and12
(b) The department of public health and environment shall provide13
the task force with a report detailing the health benefits related to paid14
family and medical leave.15
(4) The department shall contract for the services of a qualified16
private actuary to perform an actuarial study of the initial17
recommendation for a family and medical leave program created by the18
task force pursuant to section 8-13.3-304 (8)(b). The actuarial study shall19
be provided to the task force no later than December 1, 2019.20
8-13.3-304. Family and medical leave implementation task21
force. (1) There is hereby created in the department the family and22
medical leave implementation task force.23
(2) The task force consists of the following members:24
(a) Three members who are workers or represent an organization25
that represents workers' interests in paid family and medical leave, each26
of whom shall be appointed from a list of at least three names submitted27
SB25-271
-8- by a recognized statewide organization that promotes workers' rights;1
(b) Three members who are private employers with a range of2
business size and experience in providing employees with paid family and3
medical leave, each of whom shall be appointed from a list of at least4
three names submitted by a recognized statewide organization of5
employers;6
(c) One member who is a representative of a state policy7
organization that works on issues of economic opportunity;8
(d) One member who is a private insurer with experience in9
administering temporary disability or family and medical leave insurance10
benefits;11
(e) One member who represents a state policy organization that12
works on health advocacy;13
(f) One labor economist with demonstrated research or expertise14
in studying paid family and medical leave and labor standards, and the15
data necessary to do so;16
(g) One member who is a representative of a statewide domestic17
violence organization;18
(h) One member who is a professional from a recognized19
institution of higher education and who has expertise in studying paid20
family and medical leave;21
(i) One member who is a representative of organized labor; and22
(j) Two nonvoting members, one of whom must represent the23
department.24
(3) The members of the task force are appointed as follows:25
(a) The governor shall appoint one member;26
(b) The speaker of the house of representatives shall appoint four27
SB25-271
-9- members;1
(c) The president of the senate shall appoint four members;2
(d) The house minority leader shall appoint two members;3
(e) The senate minority leader shall appoint two members;4
(f) The executive director shall appoint one nonvoting member;5
and6
(g) The executive director of the department of personnel shall7
appoint one nonvoting member.8
(4) (a) The appointing authorities shall make the appointments to9
the task force no later than July 1, 2019.10
(b) In making the appointments, the appointing authorities shall11
ensure that the appointments reflect communities of color, rural12
communities, and historically underutilized businesses, as defined in13
section 24-49.5-105 (4).14
(c) The department shall assist and coordinate the appointing15
authorities to ensure that members appointed to the task force pursuant to16
subsection (3) of this section meet the membership requirements specified17
in subsection (2) of this section.18
(5) Each member of the task force serves at the pleasure of the19
appointing authority.20
(6) Each member of the task force serves without compensation21
but is entitled to receive reimbursement for actual and necessary expenses22
the member incurs in the performance of the member's duties as a23
member of the task force.24
(7) (a) The member appointed by the executive director shall call25
the first meeting of the task force.26
(b) The task force shall elect a chair from among its voting27
SB25-271
-10- members.1
(8) (a) No later than September 1, 2019, the task force shall accept2
and consider public comment regarding the administration and3
establishment of a paid family and medical leave program in the state.4
The task force shall receive public comment for a minimum of thirty5
days.6
(b) No later than November 1, 2019, the task force shall make an7
initial recommendation on a family and medical leave program for8
employees in the state and provide the recommendation to the actuary9
contracted by the department pursuant to section 8-13.3-303 (4). In10
making the recommendation, the task force shall consider the information11
it receives pursuant to section 8-13.3-303 (3).12
(c) No later than January 8, 2020, after consideration of the13
actuarial analysis performed on the task force's initial recommendation,14
the task force shall report its final recommendation on a paid family and15
medical leave program for all employees in the state, along with the16
third-party administration study made pursuant to section 8-13.3-303 (1),17
and the actuarial study made pursuant to section 8-13.3-303 (4) to:18
(I) The senate committees on finance and business, labor, and19
technology, or their successor committees;20
(II) The house of representatives committees on finance and21
business affairs and labor, or their successor committees; and22
(III) The governor.23
(d) Recommendations made by the task force pursuant to this24
subsection (8) should attempt to meet a timeline that presumes a paid25
family and medical leave program that is established by July 1, 2020;26
begins education and outreach on January 1, 2022; establishes the funding27
SB25-271
-11- stream on January 1, 2023; and starts paying benefits on January 1, 2024.1
(9) Upon request by the task force, the department shall provide2
office space, equipment, and staff services as may be necessary to3
implement this section.4
8-13.3-305. Paid family and medical leave program5
implementation authorization. The department shall not implement the6
recommended plan for a paid family and medical leave program unless7
the general assembly, acting by bill, directs the department to implement8
the program. If the department is directed to implement the plan, it shall9
begin implementation by a date specified by the general assembly acting10
by bill.11
SECTION 2. Act subject to petition - effective date. This act12
takes effect at 12:01 a.m. on the day following the expiration of the13
ninety-day period after final adjournment of the general assembly; except14
that, if a referendum petition is filed pursuant to section 1 (3) of article V15
of the state constitution against this act or an item, section, or part of this16
act within such period, then the act, item, section, or part will not take17
effect unless approved by the people at the general election to be held in18
November 2026 and, in such case, will take effect on the date of the19
official declaration of the vote thereon by the governor.20
SB25-271
-12-