First Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction 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 3rd Reading Unamended April 14, 2025 SENATE 2nd Reading Unamended April 11, 2025 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;23 271-2- (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.27 271 -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 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, 2024.27 271 -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 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 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 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 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 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 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.20 271 -12-