2023 Colorado Revised Statutes › Title 8 - LABOR AND INDUSTRY (§§ 8-1-101 — 8-88-207) › LABOR I - DEPARTMENT OF LABOR AND EMPLOYMENT (§§ 8-1-101 — 8-20.5-401) › LABOR CONDITIONS (§§ 8-11-100.1 — 8-14.4-109) › Article 13.3 - FAMILY AND MEDICAL LEAVE (§§ 8-13.3-101 — 8-13.3-524) › Part 3 - FAMILY AND MEDICAL LEAVE IMPLEMENTATION (§§ 8-13.3-301 — 8-13.3-305) › Section 8-13.3-303 - Department to perform analyses

(1)
(a)
The department shall 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. In determining whether a third party should administer parts of a paid family and medical leave program, the department shall consider whether doing so would be cost-effective, in the short term and in the long term for both the state and covered individuals, and lead to more efficient program administration and benefit management while assuring quality, worker experience, affordability, coverage, and program accountability, as compared to if the state administers all aspects of the program.
(b)
In fulfilling the requirements of this subsection (1), the department shall make a request for information from third parties that may be willing to administer single or multiple parts of a paid family and medical leave program. The requests for information pursuant to this subsection (1)(b) must solicit information from third parties that includes, but is not limited to, the third party's:
(I)
Prior experience with paid family and medical leave insurance or providing monetary benefits in Colorado related to employees taking leave from work due to serious health conditions, parental bonding, or other family and medical leave purposes;
(II)
Commitment to affirmative action, diversity, equity, and inclusion policies;
(III)
Language access experience and cultural competency; and
(IV)
Current or expected employee pay rates and benefits.
(c)
Any study pursuant to this section must consider:
(I)
The estimated difference in administrative costs charged by third parties as compared to a state-run paid family and medical leave program;
(II)
The estimated difference in claims processing speeds;
(III)
The state's costs to oversee any third-party administration, including costs to conduct annual audits and review regular reports from the third party;
(IV)
The ability of a third party to satisfy necessary worker privacy and confidentiality requirements;
(V)
The ability of a third party to access existing state data or to effectively interface with the department's systems and information;
(VI)
The potential costs and challenges associated with terminating a third-party contract due to quality or compliance concerns following implementation of the program, as well as the feasibility of timely substituting administration by the state or a different third party without a disruption in benefits and administration; and
(VII)
A timeline that presumes a paid family and medical leave program that is established by July 1, 2020; begins public education and outreach on January 1, 2022; establishes the funding stream on January 1, 2023; and starts paying benefits on January 1, 2024.
(d)
The department's study must specifically address the effect of using a third-party administrator on the following aspects of a paid family and medical leave program:
(I)
Claims appeals and administrative enforcement;
(II)
Premium rate setting and collection of premiums;
(III)
Approval and oversight of private plans, if applicable; and
(IV)
Management of elective coverage of employees who may not be included in the program.
(2)
(a)
(I)
The department shall contract with at least three experts in the field of paid family and medical leave selected by the task force. The experts must be local and national experts:
(A)
With demonstrated experience studying the health, economic, and social benefits of access to paid leave; the cost and economic impact of paid leave; and the drafting and implementation of paid family and medical leave programs at the state level; and
(B)
Who have some familiarity with cross-state comparisons.
(II)
The department shall commission a report from the experts under contract with the department pursuant to this subsection (2)(a) on the establishment of a paid family and medical leave program for employees in the state. The recommendations must specify the parameters that ensure that a program:
(A)
Is affordable for the lowest-wage workers;
(B)
Is equitable across workers of all incomes and classifications;
(C)
Is accessible particularly to workers least likely to have access to paid leave today;
(D)
Is adequate; and
(E)
Includes a minimum duration of leave that meets evidence-based standards and wage replacement that is sufficient to allow the lowest-wage workers to participate.
(b)
The recommendations must review, evaluate, and assess at least the following elements, without limitation:
(I)
The purposes of the leave, including serious illness, caring for a loved one with a serious illness, bonding with a new child, and needs arising from military deployment and the effects of domestic violence, stalking, and sexual assault;
(II)
Self-employed workers' access to paid family and medical leave and a mechanism to allow self-employed workers to participate;
(III)
Eligibility to take leave;
(IV)
The definition of family or family member for whom an individual may take leave for purposes of providing care;
(V)
Job protection and other employment protections, including their effect on an individual's ability to take leave;
(VI)
The duration of leave;
(VII)
The amount of the wage replacement;
(VIII)
The maximum weekly wage replacement amount;
(IX)
The program funding structure;
(X)
Program implementation;
(XI)
The role of third-party vendors on program sustainability;
(XII)
The solvency of a paid family and medical leave fund under various models;
(XIII)
The portability of paid family and medical leave benefits;
(XIV)
The sustainability of a paid family and medical leave program;
(XV)
How a paid family and medical leave program would interact with other benefits; and
(XVI)
A timeline that presumes a paid family and medical leave program that is established by July 1, 2020; begins education and outreach on January 1, 2022; establishes the funding stream on January 1, 2023; and starts paying benefits on January 1, 2024.
(3)
No later than October 1, 2019:
(a)
The department shall provide the task force created in section
8-13.3-304
with:
(I)
The results of the third-party study conducted pursuant to subsection (1) of this section; and
(II)
The paid family and medical leave plan report from experts commissioned in accordance with subsection (2) of this section; and
(b)
The department of public health and environment shall provide the task force with a report detailing the health benefits related to paid family and medical leave.
(4)
The department shall contract for the services of a qualified private actuary to perform an actuarial study of the initial recommendation for a family and medical leave program created by the task force pursuant to section
8-13.3-304(8)(b)
. The actuarial study shall be provided to the task force no later than December 1, 2019.
Added by 2019 Ch. 352,§ 1, eff. 5/30/2019.
L. 2019: Entire part added, (SB 19-188), ch. 3248, p. 3248, § 1, effective May 30.