Date: 03/19/2015

Final
BILL SUMMARY for HB15-1258

HOUSE COMMITTEE ON HEALTH, INSURANCE, & ENVIRONMENT

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment A). The motion p
Adopt amendment L.003 (Attachment B). The motion p
Refer House Bill 15-1258, as amended, to the Commi		PASS
PASS
PASS


02:37 PM -- HB 15-1258

Representative Ginal called the committee back to order. Representative Salazar and Representative Winter presented House Bill 15-1258. This bill creates the Family Medical Leave Insurance Program (FMLI) in the newly created Division of Family and Medical Leave Insurance (division) in the Colorado Department of Labor and Employment (CDLE). The FMLI program provides partial wage replacement benefits to eligible individuals who are unable to work due to their own serious health condition, or who take leave from work to care for a new child or a family member with a serious health condition. Prior to establishing the FMLI program, the division will conduct an actuarial evaluation to determine the amount of premiums required to support the FMLI program and the fund balance necessary to maintain the FMLI program's solvency. The actual evaluation must be completed by July 1, 2016, at which time the division will establish rules and procedures to administer the FMLI program including development of an outreach program to educate the public.

Beginning January 1, 2018, every individual employed by an employer will begin paying a premium based on a percentage of annual wages through a payroll deduction to the FMLI Fund. If the FMLI program director determines that a solvency surcharge is required to ensure the solvency of the FMLI Fund, employees will pay that amount through a payroll deduction as well. A self-employed person may elect to purchase coverage for an initial period of not less than three years.

FMLI benefits will be payable to covered individuals beginning one year after the division begins collection of premiums January 1, 2019. The amount of weekly benefits is based on the individual's income and is capped at $1,000 per week for up to 12 weeks in a 12-month period. Claimants with lower incomes will receive a higher percentage of their weekly wage than claimants with higher incomes. The division director can adjust the benefit caps over time according to the Consumer Price Index. Benefits received are not subject to state income tax but may be determined to be subject to federal income tax. Leave taken runs concurrently with leave taken under the Family and Medical Leave Act (FMLA) or the state Family Care Act which expands FMLA eligibility to include partners in civil unions and domestic partnerships. A claimant cannot receive benefits from multiple sources (e.g. workers' compensation, unemployment insurance, disability insurance) that exceed his or her actual wages.

Employers covered by the federal FMLA include private employers with at least 50 employees, all government agencies, and elementary and secondary schools, regardless of the number of employees. To be eligible for FMLA, an employee must work 1,250 hours. Under FMLI, an employee is eligible if employed for 680 hours. The bill expands the employment protections from the FMLA to private employers with fewer than 50 employees by requiring that an employee be restored to an equivalent position of employment with the employer after taking leave and receiving FMLI benefits.

The division is required to provide annual reports beginning September 1, 2018, to the General Assembly on projected and actual FMLI program participation, and other details about the FMLI program.

Premiums are deposited into, and all benefits and administrative expenses are paid from, the newly created FMLI Fund. The division is established as an enterprise and premiums are not considered state revenue for purposes of Section 20 of Article X of the Colorado Constitution (TABOR). The General Assembly and the Governor must approve the division's authority to issue revenue bonds by a separate bill or joint resolution.

The division director is authorized to assess a fine up to $3,000 for violations of the bill. If an employer violates the employment protection provisions of the bill, the aggrieved employee may bring action in state court against the employer to recover damages and equitable relief as specified under the FMLA.

Representative Winter and Representative Salazar discussed amendments L.001 and L.003 (Attachments A and B). The bill sponsors responded to questions from the committee members about the bill.

150319 AttachA.pdf150319 AttachA.pdf150319 AttachB.pdf150319 AttachB.pdf

02:51 PM

Discussion continued about the solvency surcharge allowed by the bill. Committee discussion with the bill sponsors about the bill ensued. Representative Salazar referenced a fact sheet that was distributed to the committee members prior to the committee meeting. The bill sponsors responded to questions from the committee members about the bill, which employers are subject to the bill, and the payments that would be made under the bill. The committee members discussed short-term disability with the bill sponsors.

03:08 PM

The bill sponsors continued to answer questions about the FMLI and the actuarial evaluation required by the bill. Representative Winter responded to questions about a similar program in California. The committee members dialogued with the bill sponsors about the bill. Representative Mitsch Bush stated that California, New Jersey, and Rhode Island have similar programs. The bill sponsors responded to additional questions from committee members about the bill.

03:26 PM -- Erin Bennett, 9 to 5 Colorado, testified in support of the bill. She discussed research concerning providing paid leave to employees. Ms. Bennett answered questions from the committee members. In response to questions, Ms. Bennett discussed similar programs in other states. The committee members continued to dialogue with Ms. Bennett about the FMLI and the bill.

03:39 PM

Representative Salazar and Ms. Bennet discussed who would be a covered individual under the program. The committee members continued to dialogue with Ms. Bennet and Representative Salazar about the bill.

03:49 PM -- Virginia Morrison Love, Colorado Springs Regional Business Alliance, testified in opposition to the bill. She discussed the state's unemployment insurance program. She outlined her concerns about the bill, including whether the program could be solvent. Ms. Morrison Love answered questions about the impact the bill could have on businesses and how small employers currently address situations when employees experience catastrophic situations. Representative Klingenschmitt listed a number of organizations that have expressed their opposition to the bill. The committee dialogued with Ms. Morrison Love about employees who are hired to replace employees who are on leave. Ms. Morrison Love responded to questions from the committee about hiring practices.

04:07 PM -- Carolyn Mascarenas, testified in support of the bill. She shared her personal experience needing to take leave under the FMLA after being diagnosed with cancer.

04:13 PM -- Mickki Langston, Mile High Business Alliance, testified in support of the bill. She relayed information about an employer survey on paid leave.

04:16 PM

Ms. Langston responded to questions about employers who hire seasonal employees. Ms. Mascarenas responded to questions about how the bill could have assisted her during her battle with cancer. Ms. Langston stated that paid leave improves employee retention. She responded to a question about whether abuse of leave allowed under the FMLA occurs.

04:26 PM

Representative Winter provided a letter from Susan G. Komen Colorado (Attachment C).

150319 AttachC.pdf150319 AttachC.pdf

04:28 PM -- Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), testified in opposition to the bill. She discussed the impact of similar programs in California, New Jersey, and Rhode Island. She stated that employers across the state are trying to accommodate their employees. Representative Esgar and Ms. Furman discussed existing paid leave programs among CACI membership. Discussion continued regarding the bill's costs for the state and employers.

04:37 PM

Ms. Furman responded to a question about the scope of this year's proposal compared to prior years. Committee members continued to discuss the bill's costs with Ms. Furman. Representative Salazar and Ms. Furman responded to questions about the payroll deductions that would occur under the bill.

04:47 PM

Representative Winter and Representative Salazar responded to questions from committee members about the cost of the bill and the possible impact the bill could have on businesses.

04:53 PM -- Shelby Ramirez Martinez, 9 to 5 Colorado, testified in support of the bill. She discussed her experience taking unpaid leave for family medical reasons.

04:57 PM -- Corrine Rivera Fowler, Colorado Organization for Latina Opportunity and Reproductive Rights, testified in support of the bill. She discussed the benefits of paid leave, her experience taking paid medical leave, and the difficulties for employees who must take unpaid leave. She provided a written statement of support from Sara Dale-Bley (Attachment D).

150319 AttachD.pdf150319 AttachD.pdf

05:02 PM -- Sonia Riggs, Colorado Restaurant Association, testified in opposition to the bill. She discussed the the possible impact the bill could have on employers. Ms. Riggs responded to questions from the committee members.

05:12 PM -- Chris Stiffler, Colorado Fiscal Institute, testified in support of the bill. He outlined similar programs in New Jersey and California. Mr. Stiffler answered questions about private insurance programs to assist with expenses when a person needs to take a leave of absence and the possible utilization of the program. Mr. Stiffler continued to respond to questions from committee members about the bill and similar programs in other states.

05:26 PM -- Chris Ottele, Colorado Civil Justice League, testified in opposition to the bill. He discussed the private right of action outlined in the bill and existing laws that protect employees with disabilities. Mr. Ottele answered questions about the bill and possible litigation related to family medical leave. Representative Salazar responded to questions about a similar program in California and the Americans with Disabilities Act.

05:38 PM

The committee members continued to dialogue with Mr. Ottele about the bill and the FMLA. In response to a question, he discussed employers who voluntarily provide paid leave. Committee discussion with Mr. Ottele ensued.

05:44 PM -- Rachel Ellis, Colorado Plaintiff Employment Lawyers Association, testified in support of the bill. She discussed the potential impact that bill would have on employees, as well as the ripple effect the bill could have on other businesses. She highlighted the anti-retaliation provisions of the bill. Ms. Ellis answered questions about whether the bill could result in increased litigation. Representative Salazar answered questions about potential litigation resulting from the bill.

05:51 PM -- Lisa Goodbee, representing herself, testified in support of the bill. She discussed being a small business owner and the potential benefits the bill could provide to employees. Representative Salazar referenced a memorandum from the Office of Legislative Legal Services concerning taxes and fees.

05:55 PM -- Jennifer Greenfield, representing herself, testified in support of the bill. She provided a written copy of her testimony (Attachment E).

150319 AttachE.pdf150319 AttachE.pdf

05:59 PM -- Barbara Gertz, representing herself, testified in support of the bill. She shared her personal story experiencing an extended illness. She discussed the benefits of paid leave for employees.

06:03 PM -- Tim Gaudette, Small Business Majority, testified in support of the bill. He discussed a poll conducted on paid leave.

06:07 PM -- Peter Severson, Lutheran Advocacy Ministry - Colorado, testified in support of the bill. He discussed the impact of unpaid leave on low-income families and his personal experience taking paid leave. Mr. Severance responded to questions about his organization.

06:12 PM -- Megan Moody, Colorado Women's Bar Association, testified in support of the bill. She relayed her personal story about her sister who contracted spinal meningitis. She discussed how the bill could benefit women and small business entrepreneurs. Ms. Moody answered questions about the position of other women's organizations on the bill and the potential litigation that could result from the bill.

06:19 PM -- Patrick Teegarden, CDLE, responded to questions about the bill. He stated the CDLE is neutral on the bill. In response to a questions, he discussed the conversion of the unemployment insurance program into an enterprise. The committee dialogued with Mr. Teegarden about the fiscal note and unemployment insurance.

06:31 PM -- Faby Gonzalez, representing herself, testified in support of the bill. She shared her personal experience of needing to work while her father was experience a medical emergency.

06:35 PM -- Phil Hayes, AFL-CIO, testified in support of the bill. He discussed his need to take family medical leave while living in California. Mr. Hayes responded to questions about his experience taking paid leave in California.

06:40 PM -- George Awuor, Bell Policy Center, testified in support of the bill. He discussed the economic impact of workers taking unpaid leave and the benefits of paid leave. Mr. Awuor answered questions about paid leave programs in other countries.

06:49 PM

Representative Salazar commented on Germany's paid leave program. Representative Winter listed countries that provide paid maternity leave.

06:51 PM -- David Dixon, representing himself, testified in a neutral capacity. He discussed California's paid leave program.

06:57 PM -- Clare Pramuk, Legislative Council Staff, responded to questions about the fiscal notes for Senate Bill 14-196, concerning the creation of a family and medical leave insurance program, and House Bill 15-1258.

07:02 PM

Representative Salazar discussed the potential cost to employees for the FMLI. Ms. Pramuk answered questions about the costs of developing information technology systems for the FMLI. Discussion of the bill's fiscal note and the actuarial evaluation ensued.

07:09 PM

Representative Winter discussed amendment L.001.

BILL:HB15-1258
TIME: 07:09:50 PM
MOVED:Ginal
MOTION:Adopt amendment L.001 (Attachment A). The motion passed on a vote of 7-6.
SECONDED:Esgar
VOTE
Brown
No
Esgar
Yes
Humphrey
No
Joshi
No
Klingenschmitt
No
Landgraf
No
Lontine
Yes
Mitsch Bush
Yes
Primavera
Yes
Ransom
No
Ryden
Yes
Ginal
Yes
McCann
Yes
YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


07:10 PM

Representative Salazar discussed amendment L.003. Representative Humphrey commented on the amendment.
BILL:HB15-1258
TIME: 07:11:11 PM
MOVED:Ginal
MOTION:Adopt amendment L.003 (Attachment B). The motion passed on a vote of 7-6.
SECONDED:Lontine
VOTE
Brown
No
Esgar
Yes
Humphrey
No
Joshi
No
Klingenschmitt
No
Landgraf
No
Lontine
Yes
Mitsch Bush
Yes
Primavera
Yes
Ransom
No
Ryden
Yes
Ginal
Yes
McCann
Yes
YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS


07:12 PM

Representative Salazar and Representative Winter made concluding remarks about the bill. Committee members commented on the bill.
BILL:HB15-1258
TIME: 07:34:22 PM
MOVED:McCann
MOTION:Refer House Bill 15-1258, as amended, to the Committee on Finance. The motion passed on a vote of 7-6.
SECONDED:Ginal
VOTE
Brown
No
Esgar
Yes
Humphrey
No
Joshi
No
Klingenschmitt
No
Landgraf
No
Lontine
Yes
Mitsch Bush
Yes
Primavera
Yes
Ransom
No
Ryden
Yes
Ginal
Yes
McCann
Yes
Final YES: 7 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: PASS



07:35 PM

The committee adjourned.