SB 23-234

Senate Bill 23-234 changes how Colorado pays for its employees' family and medical leave insurance. Previously, the state had prepaid $57 million into a special fund, but starting from the end of fiscal year 2023-24, it will no longer prepay these costs. Instead, when the family and medical leave insurance fund reaches $100 million, the state treasurer will return any unused portion of this initial payment to another fund called the revenue loss restoration cash fund. This bill affects state employees by altering how their insurance premiums are covered. The governor has signed it into law, so these changes are now in effect as of April 24, 2023.

Official Summary

The act terminates the state's prepayment of insurance premiums for state employee coverage under the paid family and medical leave insurance program based on the state's advance payment of $57 million to the family and medical leave insurance fund from the revenue loss restoration cash fund in May 2022. The act terminates such prepayment at the end of fiscal year 2023-24 and requires the state treasurer to transfer $35 million back to the revenue loss restoration cash fund on or as soon as possible after the date on which the balance of the family and medical leave insurance fund reaches $100 million. The act further requires that, on or as soon as possible after the date the state controller publishes the comprehensive annual financial report of the state for fiscal year 2023-24, the state treasurer shall transfer any actual additional unexpended amount of the state's $57 million advance payment from the family and medical leave insurance fund to the revenue loss restoration cash fund. The act makes a conforming amendment to the statute in which the revenue loss restoration cash fund is created. APPROVED by Governor April 24, 2023 EFFECTIVE April 24, 2023 (Note: This summary applies to this bill as enacted.)

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