What the Passed FAMLI Bill Means to Business

Business leaders understandably may wish to not think about the recently completed, tumultuous session of the Colorado legislature. But one bill, which would have created a $1 billion state-administered program, funded by both workers and employers, to provide partially paid family-and-medical leave (FAMLI), was amended in the closing days to become a study that will lead to a new bill for the 2020 session.

SB-188 “prepares for the implementation of a paid family and medical leave program in the state by completing a thorough analysis if paid family-and-medical leave programs by experts in the field, the established of a “family-and-medical leave implementation task force,” and actuarial and third-party studies.” Here are the building blocks and timelines of SB-188 that will lead to a new FAMLI bill to be introduced next year in the legislature.

Task Force

The composition of the 13-voting-members of the Task Force and who appoints members will be of great interest to the Colorado Chamber. By July 1^st, Governor Polis and the four majority-party and minority-party leaders will appoint members to the Task Force. Here are the requirements stated in SB-188 for the members of the Task Force:

Three members who are workers or represent “an organization that represents workers’ interests in paid family-and-medical leave, each of whom shall be appointed from a list of at least three names submitted by “a recognized statewide organization that “promotes workers’ rights.”
Three members who are private employers “with a range of business size and experience in providing employees with paid family and medical leave, each of whom shall be appointed form a list of at least three names submitted by a recognized statewide organization of employers.”
One member who represents “a state policy organization that works on issues of economic opportunity.”
One member who is a private insurer with experience in administering temporary disability or family and medical leave benefits.”
One member who “represents a state policy organization that works on health advocacy.”
One labor economist with “demonstrated research or expertise in studying paid family and medical leave and labor standards . . .”
One member “who is a representative of a statewide domestic violence organization.”
One member “who is a professional from a recognized institution of higher education and who has expertise in studying paid family and medical leave.”
One member who “is a representative of organized labor.”
Two non-voting members, one of whom must represent the CDLE.

Governor Polis will appoint one individual.

Each majority Democrat chamber leader—House Speaker KC Becker (Boulder) and Senate President Leroy Garcia (Pueblo)—will appoint four members to the Task Force.

Each minority Republican chamber leader—House Minority Leader Patrick Neville (Castle Rock) and Senate Minority Leader Chris Holbert (Parker) will appoint two individuals.

Finally, the CDLE executive director shall appoint one non-voting member. The executive director of the Colorado Department of Personnel shall appoint the other non-voting member.

Those who appoint the members are required to do so to “reflect communities of color, rural communities, and historically underutilized businesses . . .”

Tasks and Dates:

By September 1^st, the Task Force must have begun to take public comment “regarding the administration and establishment of a paid family and medical leave program in the state.” The public-comment window will be open for 30 days after that.

By October 1, the Colorado Department of Labor and Employment (CDLE) will have to have provided the Task Force with a “third-party study and paid family and medical leave plan recommendations from experts in the field . . . “

Moreover, the Colorado Department of Health will be required to submit a report “detailing the health benefits related to paid family and medical leave” to the Task Force by October 1^st.

The CDLE must “analyze the feasibility of contracting with a third party to administer parts of a paid family and medical leave program for all employees in the state as an alternative to state administration of all aspects of such a program.”

The CDLE must contract with at least three experts in the “field of paid family and medical leave” who will be selected by the Task Force and who will produce a report for the Task Force that recommends the establishment of a FAMI Program.

The Task Force is then required to take public comment “regarding the administration and establishment of a paid family and medical leave program.”

The Task Force must issue its “initial recommendations” by November 1^st. This recommendation will then be provided to an actuary under contract to the CDLE. The actuary then has until December 1^st to submit its analysis to the Task Force.

The Task Force will present its “final recommendation” for a FAMLI program by January 8, 2020 to Governor Polis and the appropriate four legislative committees. Finally, a bill based on the final recommendation would have to be introduced for consideration by the General Assembly.

If the 2020 FAMLI Bill Becomes Law . . .

SB-188 assumes the following timeline if a 2020 bill version becomes law:

The FAMLI Program will be established by July 1, 2020.
A “public education and outreach campaign” will begin by January 1, 2022.
Employers and workers will begin submitting insurance premium contributions by January 1, 2023.
The Program will begin making benefit payments to workers by January 1, 2024.

For More Information

Chamber members with questions/concerns about the SB-188 Task Force may contact Loren Furman, Senior Vice President, State and Federal Relations, at 303.866.9642

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WHAT THE PASSED FAMLI BILL MEANS TO BUSINESS

`WHAT THE PASSED FAMLI BILL MEANS TO BUSINESS`