| 31 | 28 | | SENATE |
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| 32 | 29 | | 2nd Reading Unamended |
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| 33 | 30 | | April 11, 2025 |
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| 34 | 31 | | SENATE SPONSORSHIP |
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| 35 | 32 | | Ball and Rich, |
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| 36 | 33 | | HOUSE SPONSORSHIP |
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| 37 | 34 | | Espenoza and Luck, |
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| 38 | 35 | | Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. |
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| 39 | 36 | | Capital letters or bold & italic numbers indicate new material to be added to existing law. |
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| 40 | 37 | | Dashes through the words or numbers indicate deletions from existing law. family and medical leave program (program) and to contract for an |
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| 41 | 38 | | actuarial study of a proposed program. The actuarial study was completed |
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| 42 | 39 | | in 2019 and the task force completed its final report on January 8, 2020. |
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| 43 | 40 | | Therefore, the bill repeals these obsolete statutory provisions contained |
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| 44 | 41 | | in part 3 of article 13.3 of title 8, Colorado Revised Statutes. |
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| 45 | 42 | | Be it enacted by the General Assembly of the State of Colorado:1 |
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| 46 | 43 | | SECTION 1. In Colorado Revised Statutes, repeal part 3 of2 |
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| 47 | 44 | | article 13.3 of title 8 as follows:3 |
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| 48 | 45 | | 8-13.3-301. Legislative declaration. (1) The general assembly |
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| 49 | 46 | | 4 |
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| 50 | 47 | | hereby finds and declares that:5 |
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| 51 | 48 | | (a) Colorado is a family-friendly state, and providing the workers6 |
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| 52 | 49 | | of Colorado with family and medical leave insurance will encourage an7 |
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| 53 | 50 | | entrepreneurial atmosphere and economic growth and promote a healthy8 |
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| 54 | 51 | | business climate;9 |
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| 55 | 52 | | (b) The United States is the only industrialized nation in the world10 |
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| 56 | 53 | | that does not mandate access to paid leave benefits. Simultaneously,11 |
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| 57 | 54 | | nearly half of Americans live paycheck to paycheck and are unable to12 |
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| 58 | 55 | | access two thousand dollars in the event of an emergency.13 |
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| 59 | 56 | | (c) This part 3 prepares for the implementation of a paid family14 |
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| 60 | 57 | | and medical leave program in the state by completing a thorough analysis15 |
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| 61 | 58 | | of paid family and medical leave programs by experts in the field, the16 |
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| 62 | 59 | | establishment of a family and medical leave implementation task force,17 |
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| 63 | 60 | | and actuarial and third-party studies;18 |
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| 64 | 61 | | (d) As specified in this part 3:19 |
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| 65 | 62 | | (I) The timeline for the analysis and implementation of a statewide20 |
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| 66 | 63 | | paid family and medical leave program is as follows:21 |
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| 67 | 64 | | (A) By July 1, 2019, appointing authorities are required to make22 |
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| 68 | 65 | | their appointments to the task force;23 |
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| 69 | 66 | | 271-2- (B) By October 1, 2019, the department is required to provide the1 |
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| 70 | 67 | | task force with the results of a third-party study and paid family and2 |
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| 71 | 68 | | medical leave plan recommendations from the experts in the field, and the3 |
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| 72 | 69 | | task force is required to accept and consider public comment regarding4 |
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| 73 | 70 | | the administration and establishment of a paid family and medical leave5 |
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| 74 | 71 | | program;6 |
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| 75 | 72 | | (C) By November 1, 2019, the task force shall make its initial7 |
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| 76 | 73 | | recommendation on a family and medical leave program for employees8 |
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| 77 | 74 | | in the state and provide the recommendation to an actuary contracted by9 |
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| 78 | 75 | | the department;10 |
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| 79 | 76 | | (D) By December 1, 2019, an independent actuarial analysis must11 |
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| 80 | 77 | | be completed and submitted to the task force;12 |
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| 81 | 78 | | (E) By January 8, 2020, the task force shall report its final13 |
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| 82 | 79 | | recommendation on a paid family and medical leave program for all14 |
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| 83 | 80 | | employees in the state;15 |
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| 84 | 81 | | (II) The timeline may also be assumed as follows:16 |
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| 85 | 82 | | (A) By July 1, 2020, the family and medical leave program will17 |
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| 86 | 83 | | be established;18 |
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| 87 | 84 | | (B) By January 1, 2022, the public education and outreach19 |
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| 88 | 85 | | campaign will begin;20 |
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| 89 | 86 | | (C) By January 1, 2023, the family and medical leave program21 |
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| 90 | 87 | | funding will begin; and22 |
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| 91 | 88 | | (D) By January 1, 2024, the family and medical leave program23 |
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| 92 | 89 | | will start paying benefits;24 |
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| 93 | 90 | | (e) The intent of this part 3 is to assist in the preparation of25 |
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| 94 | 91 | | legislation in the 2020 legislative session establishing a paid family and26 |
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| 95 | 92 | | medical leave program in the state.27 |
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| 96 | 93 | | 271 |
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| 97 | 94 | | -3- 8-13.3-302. Definitions. As used in this part 3, unless the context1 |
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| 98 | 95 | | otherwise requires:2 |
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| 99 | 96 | | (1) "Department" means the department of labor and employment.3 |
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| 100 | 97 | | (2) "Executive director" means the executive director of the4 |
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| 101 | 98 | | department.5 |
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| 102 | 99 | | (3) "Task force" means the family and medical leave6 |
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| 103 | 100 | | implementation task force created in section 8-13.3-304 (1).7 |
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| 104 | 101 | | 8-13.3-303. Department to perform analyses. (1) (a) The8 |
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| 105 | 102 | | department shall analyze the feasibility of contracting with a third party9 |
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| 106 | 103 | | to administer parts of a paid family and medical leave program for all10 |
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| 107 | 104 | | employees in the state as an alternative to state administration of all11 |
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| 108 | 105 | | aspects of such a program. In determining whether a third party should12 |
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| 109 | 106 | | administer parts of a paid family and medical leave program, the13 |
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| 110 | 107 | | department shall consider whether doing so would be cost-effective, in14 |
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| 111 | 108 | | the short term and in the long term for both the state and covered15 |
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| 112 | 109 | | individuals, and lead to more efficient program administration and benefit16 |
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| 113 | 110 | | management while assuring quality, worker experience, affordability,17 |
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| 114 | 111 | | coverage, and program accountability, as compared to if the state18 |
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| 115 | 112 | | administers all aspects of the program.19 |
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| 116 | 113 | | (b) In fulfilling the requirements of this subsection (1), the20 |
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| 117 | 114 | | department shall make a request for information from third parties that21 |
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| 118 | 115 | | may be willing to administer single or multiple parts of a paid family and22 |
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| 119 | 116 | | medical leave program. The requests for information pursuant to this23 |
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| 120 | 117 | | subsection (1)(b) must solicit information from third parties that includes,24 |
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| 121 | 118 | | but is not limited to, the third party's:25 |
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| 122 | 119 | | (I) Prior experience with paid family and medical leave insurance26 |
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| 123 | 120 | | or providing monetary benefits in Colorado related to employees taking27 |
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| 124 | 121 | | 271 |
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| 125 | 122 | | -4- leave from work due to serious health conditions, parental bonding, or1 |
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| 126 | 123 | | other family and medical leave purposes;2 |
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| 127 | 124 | | (II) Commitment to affirmative action, diversity, equity, and3 |
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| 128 | 125 | | inclusion policies;4 |
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| 129 | 126 | | (III) Language access experience and cultural competency; and5 |
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| 130 | 127 | | (IV) Current or expected employee pay rates and benefits.6 |
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| 131 | 128 | | (c) Any study pursuant to this section must consider:7 |
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| 132 | 129 | | (I) The estimated difference in administrative costs charged by8 |
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| 133 | 130 | | third parties as compared to a state-run paid family and medical leave9 |
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| 134 | 131 | | program;10 |
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| 135 | 132 | | (II) The estimated difference in claims processing speeds;11 |
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| 136 | 133 | | (III) The state's costs to oversee any third-party administration,12 |
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| 137 | 134 | | including costs to conduct annual audits and review regular reports from13 |
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| 138 | 135 | | the third party;14 |
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| 139 | 136 | | (IV) The ability of a third party to satisfy necessary worker15 |
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| 140 | 137 | | privacy and confidentiality requirements;16 |
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| 141 | 138 | | (V) The ability of a third party to access existing state data or to17 |
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| 142 | 139 | | effectively interface with the department's systems and information;18 |
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| 143 | 140 | | (VI) The potential costs and challenges associated with19 |
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| 144 | 141 | | terminating a third-party contract due to quality or compliance concerns20 |
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| 145 | 142 | | following implementation of the program, as well as the feasibility of21 |
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| 146 | 143 | | timely substituting administration by the state or a different third party22 |
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| 147 | 144 | | without a disruption in benefits and administration; and23 |
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| 148 | 145 | | (VII) A timeline that presumes a paid family and medical leave24 |
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| 149 | 146 | | program that is established by July 1, 2020; begins public education and25 |
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| 150 | 147 | | outreach on January 1, 2022; establishes the funding stream on January26 |
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| 151 | 148 | | 1, 2023; and starts paying benefits on January 1, 2024.27 |
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| 152 | 149 | | 271 |
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| 153 | 150 | | -5- (d) The department's study must specifically address the effect of1 |
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| 154 | 151 | | using a third-party administrator on the following aspects of a paid family2 |
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| 155 | 152 | | and medical leave program:3 |
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| 156 | 153 | | (I) Claims appeals and administrative enforcement;4 |
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| 157 | 154 | | (II) Premium rate setting and collection of premiums;5 |
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| 158 | 155 | | (III) Approval and oversight of private plans, if applicable; and6 |
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| 159 | 156 | | (IV) Management of elective coverage of employees who may not7 |
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| 160 | 157 | | be included in the program.8 |
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| 161 | 158 | | (2) (a) (I) The department shall contract with at least three experts9 |
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| 162 | 159 | | in the field of paid family and medical leave selected by the task force.10 |
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| 163 | 160 | | The experts must be local and national experts:11 |
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| 164 | 161 | | (A) With demonstrated experience studying the health, economic,12 |
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| 165 | 162 | | and social benefits of access to paid leave; the cost and economic impact13 |
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| 166 | 163 | | of paid leave; and the drafting and implementation of paid family and14 |
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| 167 | 164 | | medical leave programs at the state level; and15 |
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| 168 | 165 | | (B) Who have some familiarity with cross-state comparisons.16 |
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| 169 | 166 | | (II) The department shall commission a report from the experts17 |
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| 170 | 167 | | under contract with the department pursuant to this subsection (2)(a) on18 |
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| 171 | 168 | | the establishment of a paid family and medical leave program for19 |
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| 172 | 169 | | employees in the state. The recommendations must specify the parameters20 |
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| 173 | 170 | | that ensure that a program:21 |
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| 174 | 171 | | (A) Is affordable for the lowest-wage workers;22 |
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| 175 | 172 | | (B) Is equitable across workers of all incomes and classifications;23 |
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| 176 | 173 | | (C) Is accessible particularly to workers least likely to have access24 |
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| 177 | 174 | | to paid leave today;25 |
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| 178 | 175 | | (D) Is adequate; and26 |
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| 179 | 176 | | (E) Includes a minimum duration of leave that meets27 |
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| 180 | 177 | | 271 |
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| 181 | 178 | | -6- evidence-based standards and wage replacement that is sufficient to allow1 |
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| 182 | 179 | | the lowest-wage workers to participate.2 |
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| 183 | 180 | | (b) The recommendations must review, evaluate, and assess at3 |
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| 184 | 181 | | least the following elements, without limitation:4 |
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| 185 | 182 | | (I) The purposes of the leave, including serious illness, caring for5 |
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| 186 | 183 | | a loved one with a serious illness, bonding with a new child, and needs6 |
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| 187 | 184 | | arising from military deployment and the effects of domestic violence,7 |
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| 188 | 185 | | stalking, and sexual assault;8 |
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| 189 | 186 | | (II) Self-employed workers' access to paid family and medical9 |
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| 190 | 187 | | leave and a mechanism to allow self-employed workers to participate;10 |
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| 191 | 188 | | (III) Eligibility to take leave;11 |
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| 192 | 189 | | (IV) The definition of family or family member for whom an12 |
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| 193 | 190 | | individual may take leave for purposes of providing care;13 |
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| 194 | 191 | | (V) Job protection and other employment protections, including14 |
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| 195 | 192 | | their effect on an individual's ability to take leave;15 |
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| 196 | 193 | | (VI) The duration of leave;16 |
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| 197 | 194 | | (VII) The amount of the wage replacement;17 |
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| 198 | 195 | | (VIII) The maximum weekly wage replacement amount;18 |
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| 199 | 196 | | (IX) The program funding structure;19 |
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| 200 | 197 | | (X) Program implementation;20 |
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| 201 | 198 | | (XI) The role of third-party vendors on program sustainability;21 |
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| 202 | 199 | | (XII) The solvency of a paid family and medical leave fund under22 |
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| 203 | 200 | | various models;23 |
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| 204 | 201 | | (XIII) The portability of paid family and medical leave benefits;24 |
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| 205 | 202 | | (XIV) The sustainability of a paid family and medical leave25 |
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| 206 | 203 | | program;26 |
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| 207 | 204 | | (XV) How a paid family and medical leave program would27 |
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| 208 | 205 | | 271 |
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| 209 | 206 | | -7- interact with other benefits; and1 |
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| 210 | 207 | | (XVI) A timeline that presumes a paid family and medical leave2 |
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| 211 | 208 | | program that is established by July 1, 2020; begins education and3 |
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| 212 | 209 | | outreach on January 1, 2022; establishes the funding stream on January4 |
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| 213 | 210 | | 1, 2023; and starts paying benefits on January 1, 2024.5 |
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| 214 | 211 | | (3) No later than October 1, 2019:6 |
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| 215 | 212 | | (a) The department shall provide the task force created in section7 |
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| 216 | 213 | | 8-13.3-304 with:8 |
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| 217 | 214 | | (I) The results of the third-party study conducted pursuant to9 |
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| 218 | 215 | | subsection (1) of this section; and10 |
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| 219 | 216 | | (II) The paid family and medical leave plan report from experts11 |
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| 220 | 217 | | commissioned in accordance with subsection (2) of this section; and12 |
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| 221 | 218 | | (b) The department of public health and environment shall provide13 |
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| 222 | 219 | | the task force with a report detailing the health benefits related to paid14 |
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| 223 | 220 | | family and medical leave.15 |
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| 224 | 221 | | (4) The department shall contract for the services of a qualified16 |
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| 225 | 222 | | private actuary to perform an actuarial study of the initial17 |
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| 226 | 223 | | recommendation for a family and medical leave program created by the18 |
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| 227 | 224 | | task force pursuant to section 8-13.3-304 (8)(b). The actuarial study shall19 |
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| 228 | 225 | | be provided to the task force no later than December 1, 2019.20 |
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| 229 | 226 | | 8-13.3-304. Family and medical leave implementation task21 |
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| 230 | 227 | | force. (1) There is hereby created in the department the family and22 |
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| 231 | 228 | | medical leave implementation task force.23 |
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| 232 | 229 | | (2) The task force consists of the following members:24 |
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| 233 | 230 | | (a) Three members who are workers or represent an organization25 |
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| 234 | 231 | | that represents workers' interests in paid family and medical leave, each26 |
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| 235 | 232 | | of whom shall be appointed from a list of at least three names submitted27 |
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| 236 | 233 | | 271 |
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| 237 | 234 | | -8- by a recognized statewide organization that promotes workers' rights;1 |
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| 238 | 235 | | (b) Three members who are private employers with a range of2 |
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| 239 | 236 | | business size and experience in providing employees with paid family and3 |
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| 240 | 237 | | medical leave, each of whom shall be appointed from a list of at least4 |
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| 241 | 238 | | three names submitted by a recognized statewide organization of5 |
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| 242 | 239 | | employers;6 |
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| 243 | 240 | | (c) One member who is a representative of a state policy7 |
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| 244 | 241 | | organization that works on issues of economic opportunity;8 |
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| 245 | 242 | | (d) One member who is a private insurer with experience in9 |
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| 246 | 243 | | administering temporary disability or family and medical leave insurance10 |
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| 247 | 244 | | benefits;11 |
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| 248 | 245 | | (e) One member who represents a state policy organization that12 |
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| 249 | 246 | | works on health advocacy;13 |
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| 250 | 247 | | (f) One labor economist with demonstrated research or expertise14 |
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| 251 | 248 | | in studying paid family and medical leave and labor standards, and the15 |
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| 252 | 249 | | data necessary to do so;16 |
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| 253 | 250 | | (g) One member who is a representative of a statewide domestic17 |
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| 254 | 251 | | violence organization;18 |
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| 255 | 252 | | (h) One member who is a professional from a recognized19 |
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| 256 | 253 | | institution of higher education and who has expertise in studying paid20 |
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| 257 | 254 | | family and medical leave;21 |
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| 258 | 255 | | (i) One member who is a representative of organized labor; and22 |
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| 259 | 256 | | (j) Two nonvoting members, one of whom must represent the23 |
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| 260 | 257 | | department.24 |
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| 261 | 258 | | (3) The members of the task force are appointed as follows:25 |
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| 262 | 259 | | (a) The governor shall appoint one member;26 |
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| 263 | 260 | | (b) The speaker of the house of representatives shall appoint four27 |
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| 264 | 261 | | 271 |
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| 265 | 262 | | -9- members;1 |
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| 266 | 263 | | (c) The president of the senate shall appoint four members;2 |
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| 267 | 264 | | (d) The house minority leader shall appoint two members;3 |
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| 268 | 265 | | (e) The senate minority leader shall appoint two members;4 |
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| 269 | 266 | | (f) The executive director shall appoint one nonvoting member;5 |
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| 270 | 267 | | and6 |
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| 271 | 268 | | (g) The executive director of the department of personnel shall7 |
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| 272 | 269 | | appoint one nonvoting member.8 |
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| 273 | 270 | | (4) (a) The appointing authorities shall make the appointments to9 |
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| 274 | 271 | | the task force no later than July 1, 2019.10 |
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| 275 | 272 | | (b) In making the appointments, the appointing authorities shall11 |
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| 276 | 273 | | ensure that the appointments reflect communities of color, rural12 |
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| 277 | 274 | | communities, and historically underutilized businesses, as defined in13 |
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| 278 | 275 | | section 24-49.5-105 (4).14 |
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| 279 | 276 | | (c) The department shall assist and coordinate the appointing15 |
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| 280 | 277 | | authorities to ensure that members appointed to the task force pursuant to16 |
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| 281 | 278 | | subsection (3) of this section meet the membership requirements specified17 |
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| 282 | 279 | | in subsection (2) of this section.18 |
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| 283 | 280 | | (5) Each member of the task force serves at the pleasure of the19 |
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| 284 | 281 | | appointing authority.20 |
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| 285 | 282 | | (6) Each member of the task force serves without compensation21 |
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| 286 | 283 | | but is entitled to receive reimbursement for actual and necessary expenses22 |
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| 287 | 284 | | the member incurs in the performance of the member's duties as a23 |
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| 288 | 285 | | member of the task force.24 |
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| 289 | 286 | | (7) (a) The member appointed by the executive director shall call25 |
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| 290 | 287 | | the first meeting of the task force.26 |
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| 291 | 288 | | (b) The task force shall elect a chair from among its voting27 |
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| 292 | 289 | | 271 |
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| 293 | 290 | | -10- members.1 |
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| 294 | 291 | | (8) (a) No later than September 1, 2019, the task force shall accept2 |
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| 295 | 292 | | and consider public comment regarding the administration and3 |
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| 296 | 293 | | establishment of a paid family and medical leave program in the state.4 |
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| 297 | 294 | | The task force shall receive public comment for a minimum of thirty5 |
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| 298 | 295 | | days.6 |
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| 299 | 296 | | (b) No later than November 1, 2019, the task force shall make an7 |
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| 300 | 297 | | initial recommendation on a family and medical leave program for8 |
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| 301 | 298 | | employees in the state and provide the recommendation to the actuary9 |
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| 302 | 299 | | contracted by the department pursuant to section 8-13.3-303 (4). In10 |
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| 303 | 300 | | making the recommendation, the task force shall consider the information11 |
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| 304 | 301 | | it receives pursuant to section 8-13.3-303 (3).12 |
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| 305 | 302 | | (c) No later than January 8, 2020, after consideration of the13 |
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| 306 | 303 | | actuarial analysis performed on the task force's initial recommendation,14 |
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| 307 | 304 | | the task force shall report its final recommendation on a paid family and15 |
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| 308 | 305 | | medical leave program for all employees in the state, along with the16 |
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| 309 | 306 | | third-party administration study made pursuant to section 8-13.3-303 (1),17 |
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| 310 | 307 | | and the actuarial study made pursuant to section 8-13.3-303 (4) to:18 |
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| 311 | 308 | | (I) The senate committees on finance and business, labor, and19 |
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| 312 | 309 | | technology, or their successor committees;20 |
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| 313 | 310 | | (II) The house of representatives committees on finance and21 |
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| 314 | 311 | | business affairs and labor, or their successor committees; and22 |
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| 315 | 312 | | (III) The governor.23 |
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| 316 | 313 | | (d) Recommendations made by the task force pursuant to this24 |
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| 317 | 314 | | subsection (8) should attempt to meet a timeline that presumes a paid25 |
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| 318 | 315 | | family and medical leave program that is established by July 1, 2020;26 |
|---|
| 319 | 316 | | begins education and outreach on January 1, 2022; establishes the funding27 |
|---|
| 320 | 317 | | 271 |
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| 321 | 318 | | -11- stream on January 1, 2023; and starts paying benefits on January 1, 2024.1 |
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| 322 | 319 | | (9) Upon request by the task force, the department shall provide2 |
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| 323 | 320 | | office space, equipment, and staff services as may be necessary to3 |
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| 324 | 321 | | implement this section.4 |
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| 325 | 322 | | 8-13.3-305. Paid family and medical leave program5 |
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| 326 | 323 | | implementation authorization. The department shall not implement the6 |
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| 327 | 324 | | recommended plan for a paid family and medical leave program unless7 |
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| 328 | 325 | | the general assembly, acting by bill, directs the department to implement8 |
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| 329 | 326 | | the program. If the department is directed to implement the plan, it shall9 |
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| 330 | 327 | | begin implementation by a date specified by the general assembly acting10 |
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| 331 | 328 | | by bill.11 |
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| 332 | 329 | | SECTION 2. Act subject to petition - effective date. This act12 |
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| 333 | 330 | | takes effect at 12:01 a.m. on the day following the expiration of the13 |
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| 334 | 331 | | ninety-day period after final adjournment of the general assembly; except14 |
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| 335 | 332 | | that, if a referendum petition is filed pursuant to section 1 (3) of article V15 |
|---|
| 336 | 333 | | of the state constitution against this act or an item, section, or part of this16 |
|---|
| 337 | 334 | | act within such period, then the act, item, section, or part will not take17 |
|---|
| 338 | 335 | | effect unless approved by the people at the general election to be held in18 |
|---|
| 339 | 336 | | November 2026 and, in such case, will take effect on the date of the19 |
|---|
| 340 | 337 | | official declaration of the vote thereon by the governor.20 |
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| 341 | 338 | | 271 |
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| 342 | 339 | | -12- |
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