Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0516.01 Michele Hanigsberg SENATE BILL 06-166 SENATE SPONSORSHIP Mitchell, HOUSE SPONSORSHIP (None), Senate Committees House Committees Business, Labor and Technology A BILL FOR AN ACT Concerning reciprocal beneficiary agreements. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Authorizes the establishment of reciprocal beneficiary agreements for the purpose of permitting any 2 unmarried persons who are excluded from entering into a valid marriage under the marriage laws of this state, or who are or were related by blood, adoption, or marriage, and who meet specified requirements, to establish a reciprocal beneficiary agreement that extends specific rights and related responsibilities to each reciprocal beneficiary. Specifies the rights and related responsibilities that would extend to reciprocal beneficiaries, including but not limited to health care insurance benefits. Specifies who qualifies to enter into a reciprocal beneficiary agreement ("agreement") and how the agreement is formed and terminated. Describes the applicability of domestic partnerships formed pursuant to another state's law in relation to the agreements created in this act. Specifies that a reciprocal beneficiary may be considered a dependent for health insurance coverage purposes if an employer elects to cover a reciprocal beneficiary as a dependent. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 14, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 15 Reciprocal Beneficiary Agreements 14-15-101. Definitions. As used in this article, unless the context otherwise requires: (1) "Reciprocal beneficiary" means a person who has entered into a valid reciprocal beneficiary agreement pursuant to the provisions of this article. (2) "Reciprocal beneficiary agreement" means an agreement that is entered into by two persons who qualify as reciprocal beneficiaries and that is evidenced by a form provided by the secretary of state that, when executed, grants the rights and related responsibilities set forth in this article to the signatories. 14-15-102. Purpose of article - rights and related responsibilities. (1) The purpose of this article is to permit any two unmarried persons who are excluded from entering into a valid marriage under the marriage laws of this state, as specified in the "Uniform Marriage Act", part 1 of article 2 of this title, or who are or were related by blood, adoption, or marriage, to establish a reciprocal beneficiary agreement to extend the rights and related responsibilities enumerated in this article to each reciprocal beneficiary. These rights and related responsibilities are: (a) Emergency and nonemergency medical care and treatment and hospital visitation and related notification; (b) The right to authorize the care and treatment of a reciprocal beneficiary through terminal care documents and medical treatment documents and the right to make medical decisions on behalf of a reciprocal beneficiary pursuant to the "Colorado Medical Treatment Decision Act", article 18 of title 15, C.R.S., or pursuant to article 18.5 of title 15, C.R.S.; (c) The right to participate in decision making relating to anatomical gifts of a reciprocal beneficiary; (d) The right to participate in decision making relating to the disposition of remains of a reciprocal beneficiary; (e) Notwithstanding the intimate relationship requirement, the right to receive the protections and programs specified in part 8 of article 6 of title 18, C.R.S.; (f) The rights inuring from the laws relating to intestate succession in the same position as a spouse pursuant to title 15, C.R.S.; and (g) The rights associated with the acquisition, ownership, or transfer, inter vivos or at death, of real property, including eligibility to hold real and personal property as joint tenants with right of survivorship or as tenants in common. (2) This article shall not be construed to create any rights or responsibilities for reciprocal beneficiaries that are not specifically enumerated. 14-15-103. Formation. (1) Two persons shall be reciprocal beneficiaries if they: (a) Are at least eighteen years of age; (b) Are not a party to a marriage or another reciprocal beneficiary agreement; (c) Are excluded from marrying each other under the marriage laws of this state, as specified in the "Uniform Marriage Act", part 1 of article 2 of this title; (d) Enter into the reciprocal beneficiary agreement without force, fraud, or duress; and (e) Execute a reciprocal beneficiary agreement form provided by the secretary of state in the presence of a notary public and file the agreement with the county clerk and recorder of the county in which at least one of the reciprocal beneficiaries resides. (2) Notwithstanding the provisions of paragraph (c) of subsection (1) of this section, two persons shall be reciprocal beneficiaries if they are or were related by blood, adoption, or marriage, if they otherwise meet all of the requirements set forth in subsection (1) of this section. 14-15-104. Termination - property division. (1) A reciprocal beneficiary agreement shall be terminated as follows: (a) When either party enters into a valid marriage recognized under the marriage laws of this state, as specified in the "Uniform Marriage Act", part 1 of article 2 of this title; or (b) When either party terminates the agreement under the procedures necessary for invalidating a last will and testament and files notice of termination with the county clerk and recorder of the county in which the reciprocal beneficiaries filed their reciprocal beneficiary agreement. (2) The division of assets after termination of a reciprocal beneficiary agreement shall be done in accordance with section 7-64-807, C.R.S., as applicable. 14-15-105. Applicability - domestic partnerships. (1) Domestic partners registered pursuant to another state's law shall be deemed to have executed a reciprocal beneficiary agreement if the parties otherwise qualify as reciprocal beneficiaries pursuant to section 14-15-103. Domestic partners who do not qualify to become reciprocal beneficiaries shall not be deemed to have a valid legal status within the state of Colorado as domestic partners. (2) Legal contracts, other than domestic partnerships, pursuant to another state's law, other than a marriage between a man and a woman, shall be treated as reciprocal beneficiary agreements if: (a) The parties qualify to enter into a reciprocal beneficiary agreement pursuant to section 14-15-103; and (b) Both parties are present or reside in this state. SECTION 2. 10-16-102 (14) and (26) (d), Colorado Revised Statutes, are amended to read: 10-16-102. Definitions. As used in this article, unless the context otherwise requires: (14) "Dependent" means a spouse, an unmarried child under nineteen years of age, an unmarried child who is a full-time student under twenty-four years of age and who is financially dependent upon the parent, and an unmarried child of any age who is medically certified as disabled and dependent upon the parent. "Dependent" shall include a reciprocal beneficiary, as defined in section 14-15-101 (1), C.R.S., if an employer elects to cover a reciprocal beneficiary as a dependent. (26) "Late enrollee" means an eligible employee or dependent who requests enrollment in a group health benefit plan following the initial enrollment period for which such individual is entitled to enroll under the terms of the health benefit plan, if such initial enrollment period is a period of at least thirty days. An eligible employee or dependent shall not be considered a late enrollee if: (d) (I) A person becomes a dependent of a covered person through marriage, birth, adoption, or placement for adoption and requests enrollment no later than thirty days after becoming such a dependent. In such case, coverage shall commence on the date the person becomes a dependent if a request for enrollment is received in a timely fashion before such date. (II) A person becomes a dependent of a covered person through a reciprocal beneficiary agreement pursuant to article 15 of title 14, C.R.S., and requests enrollment no later than thirty days after becoming such a dependent, and the employer of the covered person elects to cover reciprocal beneficiaries as dependents. In such case, coverage shall commence on the date the person becomes a dependent if a request for enrollment is received in a timely fashion before the date. SECTION 3. Part 1 of article 16 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 10-16-103.7. Coverage for reciprocal beneficiaries. Notwithstanding any law to the contrary, carriers shall provide dependent coverage to reciprocal beneficiaries, as defined in section 14-15-101 (1), C.R.S., that is equivalent to that provided to dependents if an employer elects to cover reciprocal beneficiaries as dependents. An individual or group insurance policy that provides coverage for a family member of the insured shall also provide the equivalent coverage for a reciprocal beneficiary. SECTION 4. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution (August 9, 2006, if adjournment sine die is on May 10, 2006); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.