2013 Legislative Session Report

Colorado Nonprofit Association worked on several key bills for Colorado nonprofits during the 2013 Colorado regular legislative session. Aponté and Busam, a political consulting firm, represents us at the Capitol to advance our positions on legislation.

Enterprise Zone Projects

HB 13-1190 Contributions to Intermediary Organizations for Enterprise Zone Projects Actively Support 5/3/13 Signed by the Governor. Took effect with the Governor’s signature.

PRIMARY SPONSORS Representative (D-Commerce City); Senator (D–Boulder)

SUMMARY HB 13-1190 clarifies that donations passed through nonprofit intermediary organizations (for example, a United Way agency or an online giving website such as www.givingfirst.org) to nonprofits certified by the local Enterprise Zone (EZ) Administrator are eligible for the Enterprise Zone contribution project tax credit.

These intermediary organizations are required to distribute donations, as designated by the taxpayer, to a recipient nonprofit organization, program, or project that is certified by the local EZ Administrator. Both the recipient organization and intermediary organization must be 501(c)(3) charitable organizations.

RATIONALE FOR SUPPORT Nonprofit intermediaries already play a big role in facilitating donations to EZ contribution projects. HB 13- 1190 clarifies this role under state law. It also allows donors to take advantage of the various ways they can give through intermediaries including workplace giving, Colorado Gives Day, and other options provided by federated giving campaigns.

In 2011, about 32,000 donors donated nearly $44 million to contribution projects and their donations qualified for the tax credit, according to the Office of Economic Development and International Trade (OEDIT). That same year, donors gave $2.9 million to contribution projects through coloradogives.org and $450,000 through Mile High United Way in particular.

ASSOCIATION ACTIONS • Helped draft the language of the bill • Lobbied for the passage of the bill • Organized testimony on the bill • Testified in support of the bill • Sent out information in the member news bulletin • Posted a fact sheet on the website

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | , Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Links Governor Signs Nonprofit Enterprise Zone Bill Ed Sealover. Enterprise Zones Get a Little Boost. Denver Business Journal. Feb. 26, 2013.

Nonprofit Tax Exemptions

HB 13-1246 Modify Property Tax Exemptions for Nonprofit Organizations Actively Support 05/11/13 Signed by the Governor. Took effect with the Governor’s signature.

PRIME SPONSORS Representative (D-Denver); Senator (D-Denver)

SUMMARY This bill makes the following changes to property tax exemption laws affecting nonprofits: • Allows nonprofit housing providers to claim exemption for properties sold to low income households for construction or rehabilitation after the transfer of the property. The property tax-exempt status may continue for up to one year after the sale of the property. • The bill expands the definition of “low income applicant” to residents at 80 percent of the area’s median income rather than 60 percent previously. • If a nonprofit requests a waiver of deadline from the State Board of Equalization (SBOE), the SBOE must set a modified deadline of no fewer than thirty days from the date the waiver is granted. • If the SBOE finds that a nonprofit has paid property taxes as a result of an error or omission by a public official, then it may authorize the Property Tax Administrator to restore property tax exemption retroactively.

RATIONALE FOR SUPPORT This bill makes it easier for nonprofits to maintain their property tax exemption in three ways.

First, it clarifies that property tax exemption applies to properties sold by nonprofit housing providers to low- income applicants. The property must be rehabilitated or reconstructed into housing within a year of the sale.

Second, when the SBOE grants a deadline waiver for a nonprofit that misses the annual report filing deadline, it requires that the SBOE give a nonprofit at least thirty more days to complete its annual report. This allows the SBOE to hold the nonprofit accountable for meeting the extended deadline while having the option of setting a longer deadline where appropriate.

Third, if a nonprofit’s property is taxed in error due to an action by a public official, the nonprofit can appeal the decision to the SBOE. If the SBOE finds that the property was taxed in error, the SBOE may vote to restore exemption for up to two previous years. This allows the state to correct errors that occur as state and local government keep track of tax-exempt properties.

ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Testified in support of the bill

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

• Sent out information in the member news bulletin • Posted a fact sheet on the website Links Support HB 13-1246.

HB 13-1288 Establish Statewide Uniform Sales & Use Tax Base Actively Support 5/28/13 Signed by the Governor. Took effect with Governor’s signature.

PRIME SPONSORS Representative Kathleen Conti (R-Littleton), Representative Daniel Kagan (D-Englewood); Senator Pat Steadman (D-Denver), Senator (R-Colorado Springs)

SUMMARY This bill requires that the Colorado Department of Revenue (DOR) make recommendations to the General Assembly regarding establishment of a uniform sales and use tax base. The Department of Revenue, with the assistance of associations that represent counties and municipalities, will prepare a report that documents goods and services subject to sales and use tax and exemptions in effect for each local taxing jurisdiction across the state. The report will estimate revenue associated with each exemption, analyze how a revenue neutral uniform sales and use tax base can be established in the state, and make final recommendations to the General Assembly on how to establish a uniform sales and use tax base.

RATIONALE FOR SUPPORT This report will help inform efforts to clarify and simplify how Colorado’s multiple levels of sales and use taxation apply to nonprofits and businesses. Currently, when making purchases exempt from sales taxes, nonprofits must provide documentation that they are exempt from both state sales taxes and from any applicable local sales taxes. If nonprofits are unclear about which documents apply to the purchase or if retailers are unclear about which documents to collect, the nonprofit could end up paying taxes from which they are exempt or retailers could fail to collect taxes owed to the state or local taxing jurisdiction.

ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Testified in support of the bill • Posted a fact sheet on the website • Sent out information in the member news bulletin

LINKS Marianne Goodland. Colorado on its way to collect online sales tax. The Colorado Statesman. May 6, 2013.

Ed Sealover. Colorado moves into step with feds over online sales tax. Denver Business Journal. April 25, 2013.

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Medicaid Eligibility Expansion

SB 13-200 Expand Medicaid Eligibility Actively Support 5/13/13 Signed by Governor. Took effect with the Governor’s signature.

PRIME SPONSORS Senator Irene Aguilar (D-Denver), Senator John Kefalas (D-Fort Collins); Representative (D–Denver)

SUMMARY As part of the Patient Protection and Affordable Care Act (PPACA), signed by President Obama in 2010, states are required to expand Medicaid eligibility by 2014 from 100 percent to 133 percent of the Federal Poverty Level (FPL) for parents and caretaker relatives of Medicaid children, and for childless adults and adults without dependent children.

Although PPACA required expansion of Medicaid, a U.S. Supreme Court ruling prohibited Congress from reducing overall Medicaid funding for states refusing to expand Medicaid. As a consequence, states can receive additional Medicaid funding for expanding Medicaid but the federal government can’t require states to complete the expansion.

This bill allows Colorado to expand Medicaid eligibility to 133 FPL for the specific groups listed above, as authorized by federal law. The bill clarifies that childless adults or adults with dependent children must be between nineteen and sixty-five years old.

Between 2014 and 2017, the federal government will pay for 100 percent of expansion and then 90 percent after 2017. SB 13-200 also allows hospital provider fee cash funds to be used to pay the state’s share of the expansion.

RATIONALE FOR SUPPORT Expanding Medicaid eligibility is a critical step toward reducing the number of Colorado’s uninsured and is integral to the success of healthcare reform. This bill will provide health coverage to approximately 160,000 uninsured Coloradans. SB 13-200 will reduce the number of uninsured Coloradans and ensure overall health insurance costs are shared more equitably. When individuals lack health insurance and can’t afford to pay for healthcare, those uncompensated costs result in higher premiums for those with coverage through their employer, through individual plans, and other forms of health insurance. According to the Kaiser Commission on Medicaid and the Uninsured, Medicaid expansion could save over $275 million over ten years.

In addition to helping with access to the healthcare system, nonprofits help individuals and families secure good jobs, participate fully in the education system, and enjoy a high quality of life. By improving the overall health of Coloradans, SB 13-200 will support nonprofits’ efforts to ensure the prosperity of Colorado’s families.

ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Signed on in support of the bill Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

• Posted a fact sheet on the website • Sent out information in the member news bulletin

LINKS Ivan Moreno. Colorado Medicaid Expansion Signed into Law. The Denver Post. May 13, 2013. Peter Marcus. Expanded Medicaid could have $4 billion in impact. The Colorado Statesman. May 20, 2013.

Income Tax Credits for Working Families

SB 13-001 Colorado Working Families Economic Opportunity Act Actively Support 06/05/13 Signed by the Governor. The bill takes effect ninety days after adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Senator John Kefalas (D-Fort Collins), Senator John Morse (D-Colorado Springs); Representative Daniel Kagan (D–Englewood)

SUMMARY SB 13-001 creates a permanent state Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).

Previously, Colorado offered a refundable EITC at 10 percent of the amount of the federal EITC. But this credit was only available in years where state revenues exceeded the Taxpayer’s Bill of Rights (TABOR) limit. SB 13-001 makes the Colorado EITC permanent starting with the first year that revenues exceed the TABOR limit by more than $83 million. Legislative Council estimates that the average state credit would be $186 per family.

The federal CTC is nonrefundable and provides $1,000 to families for each qualifying child 16 years and younger. Taxpayers can claim this credit until they reach an income cap of $75,000 single filers/$110,000 joint filers. SB 13-001 restores the Colorado CTC for families with children 5 years old and younger. The credit starts at 30 percent of the federal CTC for families with annual incomes less than $25,000 and is reduced to 5 percent for families with incomes exceeding $75,000.

Since the state credit would be refundable, it can help families who have incomes low enough that they don’t file federal income taxes and can’t claim the federal CTC. Enactment of the state credit depends on passage of the federal “Marketplace Fairness Act of 2013” and HB 13-1295 simplifying collection of sales taxes from out of state.

RATIONALE FOR SUPPORT SB 13-001 makes the Colorado earned income tax credit (EITC) permanent and establishes a refundable Colorado Child Tax Credit (CTC) based on the federal CTC. By expanding these credits at the state level, SB 13-001 will help lift more families out of poverty, enhance their economic opportunities, and help reduce their reliance on public assistance programs and nonprofit services.

According to the Colorado Fiscal Institute, the federal EITC is the most effective policy for reducing poverty among working families. In 2010, it benefitted more than 360,000 Coloradans - 15% of the population- and Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

provided them with $700 million in benefits. Additionally, various studies show that increases in family income correlate with boosts in academic performance for elementary school students, lifetime family earnings, probability of going to college, and economic mobility. By allowing the state EITC to be permanent, Colorado will build off of the success of the federal EITC and lift many Coloradans out of poverty.

ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Sent action alerts to members • Signed on in support of the bill • Posted a fact sheet on the website • Sent out information in the member news bulletin

Links Tax Credits for Working Families Kurtis Lee. Bill creating Colorado earned income tax credits passes House panel. The Denver Post. April 29, 2013.

Employment Law

HB 13-1136 Job Protection Civil Rights Enforcement Act 2013 05/06/13 Signed by Governor. Takes effect ninety days after the adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Senator (D-Aurora), Senator Lucia Guzman (D-Denver); Representative Claire Levy (D– Boulder), Representative Joseph Salazar (D-Thornton)

SUMMARY Starting in 2015, HB 13-1136 would ensure that employees who work for a company with fewer than fifteen employees would have the same legal protections from intentional discrimination that employees of larger companies have under federal law. Federal law allows professionals who work for employers with fifteen or more employees to be awarded compensatory or punitive damages, or attorney fees or costs, if they have experienced intentional discrimination. HB 13-1136 also extends protections to all employees for claims of intentional discrimination based on age or sexual orientation.

Although employers should not engage in intentional discrimination, HB 13-1136 provides specific protections for employers subject to a complaint including the following: • Caps on overall damages of $25,000 for employers with five to fourteen employees and $10,000 for employers with one to four employees. Current federal caps start at $50,000 for employers with fifteen to one hundred employees. • Courts may award attorney fees to the employer if the complaint is found to be frivolous, groundless, or vexatious. • Courts must consider the assets of the employer and the severity of the offense when awarding damages. • For punitive damages to apply, the plaintiff must show by clear and convincing evidence that the Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

employer has engaged in discrimination with malice or reckless indifference to the plaintiff’s rights. • Punitive damages shall not be awarded if the employer demonstrates good faith efforts to comply with the law and to prevent discriminatory and unfair employment practices in the workplace.

HB 13-1136 also provides a two year phase-in period to ensure employers learn how to comply with these changes in the law. This includes appointing a working group of employers and employees to assist in education and outreach efforts.

RATIONALE FOR SUPPORT Nonprofit professionals’ value having good jobs that allow them to both make a living and make a difference for the communities they serve. For most nonprofit organizations, their employees are their most valued asset. These professionals deserve the full protection of the law if an employer has engaged in intentional discrimination or another unfair and unlawful employment practice. Prior to the passage of HB 13-1136, many nonprofit professionals did not have these protections because their companies have fewer than fifteen employees.

Colorado Nonprofit Association’s board voted to support HB 13-1136 because the legislation is consistent with the organization’s non-discrimination policy. However, promoting a diverse workforce and adopting a non- discrimination policy is insufficient in itself. All nonprofit professionals deserve equal protection of the law from intentional discrimination and unfair employment practices.

ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Signed on in support of the bill • Testified in support of the bill • Posted a fact sheet on the website • Sent out information in the member news bulletin

Links Andy Vuong. Hickenlooper Signs Job Protection and Civil Rights Enforcement Act. The Denver Post. May 6, 2013.

Ed Sealover. Hickenlooper Signs Small Business Discrimination Bill Despite Heavy Opposition. Denver Business Journal. May 6, 2013.

OTHER BILLS OF INTEREST

Tax Checkoffs

HB 13-1164 Extend Unwanted Horse Tax Checkoff 03/22/13 Signed by the Governor. Takes effect ninety days after the adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Representative Mike McLachlan ( D-Durango); Senator Gail Schwartz (D-Snowmass Village), Senator Lois Tochtrop (D-Thornton)

SUMMARY A nonprofit fund that provides support to abandoned and/or abused horses in Colorado, The Unwanted Horse Fund, first appeared on the income tax form in 2010. In the past two years that the fund has been on the form, total donations were $182,127. HB 13-1164 extends the voluntary contribution designation for the Unwanted Horse Fund from tax year 2013 to 2017 and all proceeds will be transferred to the Colorado Unwanted Horse Alliance.

HB 13-1237 Special Olympics Colorado Tax Checkoff 04/19/13 Signed by the Governor. Takes effect ninety days after the adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative Dave Young (D-Greeley), Representative John Buckner (D-Aurora); Senator (D- Brighton)

SUMMARY The Special Olympics Colorado Fund provides athletic programs for Colorado children and adults with developmental disabilities. Since 1997, the Special Olympics Colorado Fund has been a part of the tax checkoff program. However, due to 2011 legislation establishing a priority order for newly created checkoffs, current checkoffs not only have to raise at least $75,000 per year but also must be extended through legislation prior to their sunset date. The Special Olympics Colorado Fund sunset in 2011 and the General Assembly did not pass legislation in 2012 to extend the checkoff.

This bill re-establishes the Special Olympics Colorado Fund income tax return checkoff program. This bill also requires the Department of Revenue to electronically inform an organization if they are no longer on the state tax form one year prior. This checkoff will be added to the tax form in the next year that there is a space available on the form and when it is next in the queue.

SB 13-029 Habitat for Humanity of Colorado Tax Checkoff Creation 03/15/13 Signed by the Governor. Takes effect ninety days after the adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative Brian DelGrosso (R-Loveland); Senator Andy Kerr (D-Lakewood)

SUMMARY Habitat for Humanity is a Colorado nonprofit organization that provides housing and home-ownership to low- income families. SB 13-029 creates a new income tax return checkoff to collect donations which will be distributed to the organization’s Colorado affiliates. This checkoff will be added to the tax form in the next year that there is a space available on the form and when it is next in the queue.

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Bingo & Raffles

HB 13-1101 Progressive Raffles 05/03/13 Signed by the Governor. Takes effect on January 1, 2014.

PRIME SPONSORS Representative Jonathan Singer (D-Longmont); Senator Lois Tochtrop (D-Thornton)

SUMMARY This bill allows bingo-raffle licensees to offer progressive raffles where a jackpot may be carried over and increased from one drawing to another until it is awarded. It also allows bingo-raffle licensees to award consolation prizes.

The bill authorizes the Secretary of State to promulgate rules on how progressive raffles may be conducted including maximum jackpot amounts and limits on the amount of raffles that may be conducted simultaneously by a licensee.

HB 13-1260 Bingo Raffle Increase Games Occasions 05/28/13 Signed by the Governor. Takes effect ninety days after adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative Jonathan Singer (D-Longmont); Senator (R-Durango)

SUMMARY This bill eliminates specific statutory limits on bingo games in Colorado. The bill removes the annual limit on bingo occasions, which is 35 occasions per year currently, and allows bingo games to be played exclusively on an electronic device.

Conservation Easements

HB 13-1183 Extend Conservation Easement Tax Credit Cap 05/23/13 Signed by the Governor. Takes effect ninety days after adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative Claire Levy (D-Boulder), Representative Cheri Gerou (R-Evergreen); Senator (R- Colorado Springs)

SUMMARY Current law allows taxpayers to claim an income tax credit for donating land for conservation purposes (i.e. conservation easement). The amount of tax credits that the state can award is capped at $22 million for 2011 and 2012, and $34 million for 2013. Credits that exceed the cap are placed on a wait list and may be claimed

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

in a future year.

This bill extends the cap for 2014 onward and increases the amount of the cap to $45 million. The bill clarifies that tax credits will be applied against the limit in the order that completed tax credit certificate applications are received; tax credits in excess of the limit shall be applied to the limit for the next available year; and tax credit certificates shall be issued for use in the year in which the credit was applied to the annual limit.

SB 13-221 Conservation Easement Tax Credit Certification Application 05/23/13 Signed by the Governor. Takes effect on January 1, 2014.

PRIME SPONSORS Senator Steve King (R-Grand Junction); Representative Su Ryden (D-Aurora)

SUMMARY Recommended by the Legislative Audit Committee, this bill requires that the Division of Real Estate in the Department of Regulatory Agencies (DORA) create an application and certification process for landowners seeking to claim an income tax credit for a conservation easement. The owner of an easement continues to maintain the property in order to preserve its value for recreation, education, habitat, open space, or historical importance.

From 2014 on, the tax credit must be pre-certified by the division. This process will determine if the easement qualifies for the credit, has received a credible appraisal, and abides by all other legal requirements. This bill also allows landowners to seek a preliminary advisory opinion on an application and authorizes the Division to charge fees for application and advisory opinions.

Landowners may address deficiencies found in an application and are provided an appeals process if an application is denied. If neither the division nor the commission identifies deficiencies with an application, the landowner is issued a tax credit certificate which may then be used to claim the income tax credit from the Department of Revenue (DOR). Under current law, the DOR maintains a separate process to review gross conservation easements and may challenge in whole or in part the validity or amount of a conservation easement tax credit claimed by a taxpayer.

Authorize Public Benefit Corporations

HB 13-1138 Authorize Benefit Corporations 05/15/13 Signed by Governor. Sections 1 and 2 of this act take effect April 1, 2014, and the remainder of this act takes effect ninety days after adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative (D-Colorado Springs); Senator John Kefalas (D-Fort Collins)

SUMMARY HB 13-1138 enacts the “Colorado Benefit Corporation Act.” The bill establishes general requirements for Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

corporations to elect to be considered benefit corporations under Colorado law. This legislation applies only to benefit corporations. Existing corporate statutes apply to benefit corporations except where they are inconsistent with this law.

A public benefit corporation can be defined as having one or more positive effects or reduction of negative effects on others of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, and scientific or technical nature.

In order for an organization to become a public benefit corporation, as outlined in this bill, the organization must have approval of at least two-thirds of their shareholders. If a nonprofit wishes to become a public benefit corporation or a constituent in a merger, the nonprofit must convert to a for-profit organization prior to voting to become a public benefit corporation.

If a shareholder does not support the decision to become a public benefit corporation, that shareholder has a right to dissent and to receive payment for their outstanding shares. Shareholders also have the option to file a derivative lawsuit to enforce the public benefit corporation’s purposes if they own at least two percent of outstanding shares or $2 million in market value if the corporation is listed on the national securities exchange, whichever is less. This bill also requires that every public benefit corporation submit an annual report to all shareholders and post it online for public viewing.

Links Ed Sealover. Sides switch over Colorado benefit-corporations bill. Denver Business Journal. March 8, 2013. Ed Sealover. approves benefit-corporations bill, with changes. Denver Business Journal. April 30, 2013.

Health Care

HB 13-1245 Funding Colorado Health Benefit Exchange 05/25/13 Signed by Governor – effective upon the Governor’s signature.

PRIME SPONSORS Representative Beth McCann (D-Denver); Senator Pat Steadman (D-Denver)

SUMMARY As part of the Patient Protection and Affordable Care Act (PPACA), Health Benefit Exchanges (HBEs) were created to improve access and lower costs for individuals and small businesses when purchasing group health insurance.

Effective January 1, 2014, HB 13-1245 establishes various funding mechanisms for COHBE including: • Special fees against insurance carriers in an amount necessary to fund COHBE’s board-approved financial plan. These special fees shall not exceed $1.80 per individual plan per month and per policyholder per month for small group plan. • Premium tax credits for insurance companies that make a contribution to the exchange. • Allocation of fund balances from CoverColorado and the Unclaimed Property Fund. Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

HB 13-1266 Health Insurance Alignment Federal Law 05/13/13 Signed by Governor – takes effect on January 1, 2014

PRIME SPONSORS Representative Beth McCann (D-Denver), Representative (R-Colorado Springs); Senator Irene Aguilar (D-Denver)

SUMMARY HB 13-1266 aligns state health insurance laws with the rules and regulations of the federal health care reform, such as creating Colorado’s essential health benefits package, renewal of health insurance plans for all eligible individuals, and requiring health plans to cover dependents up until age 26.

HB 13-1290 Modernize Stop-loss Health Insurance 05/28/13 Signed by the Governor – sections 1 and 4 of this act take effect on July 1, 2013, and Section 2 of this act takes effect on January 1, 2014.

PRIME SPONSORS Representative Beth McCann (D-Denver); Senator Irene Aguilar (D-Denver)

HB 13-1290 aims to align the terminology used by the National Association of Insurance Commissioners from ‘excess loss’ to ‘stop-loss’. Stop-loss health insurance policies are typically used by employers in conjunction with a self-insured health plan. This specific policy protects employers from extremely high, catastrophic claims.

An employer who has a stop-loss health insurance policy pays claims up to a predetermined attachment point and the insurance company pays any claims that are higher than that point. HB 13-1290 prohibits insurers from issuing a policy to any employer with fifty or fewer employees with an annual attachment point for claims per individual of less than $20,000 (as adjusted for inflation) or an annual aggregate attachment point lower than the greater of 120% of expected claims or $20,000 (as adjusted for inflation). Policies also may not provide direct coverage of an individual’s healthcare expenses, vary the annual attachment point per individual by individual, or exclude any employee or eligible dependent from the stop-loss coverage.

From 2013-2018, this bill also requires insurers who sell stop-loss policies to submit an annual report on specific policy information such as breakdown of group sizes, number of covered lives for each group, the mean and median attachment points for each group and the source of prior health insurance coverage for each group to the commissioner of insurance.

Links Colorado Health Benefit Exchange. Ed Sealover. Hickenlooper Shifts Funds to Cover Health Exchange. Denver Business Journal. May 23, 2013. John Stanfield. Colorado Lawmakers Compromise on Key Health Care. Denver Business Journal. May 16, 2013.

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Employment Law

SB 13-018 Permissible Use of Credit Information by Employers 04/19/13 Signed by the Governor. Takes effect on July 1, 2013.

PRIME SPONSORS Representative Randy Fischer (D-Fort Collins); Senator (D-Denver)

SUMMARY SB 13-018 specifies how consumer credit information can be used by an employer or potential employer. It prohibits an employer's use of consumer credit information for employment purposes unless the information substantially- ‘substantially’ meaning that the credit information is related to the position because it is either an executive or management position, or staff supporting such position - relates to the job.

The bill also requires an employer to disclose to an employee or applicant for employment when the employer uses the employee's consumer credit information to take adverse action against him or her and the particular credit information upon which the employer relied. A person injured by a violation of this law may file a complaint with the Division of Labor and the division is required to investigate and issue findings within thirty days of a hearing. The division may award civil penalties not to exceed $2,500 to a prevailing party.

Links

Ed Sealover. Colorado House advances family leave, credit check measures. Denver Business Journal. March 25, 2013

HB 13-1222 Family Care Act Family Medical Leave Eligibility 05/03/13 Signed by the Governor. Takes effect ninety days after adjournment of the 2013 regular session of the Colorado General Assembly.

PRIME SPONSORS Representative Cherylin Peniston (D-Westminster); Senator Jessie Ulibarri (D-Denver)

SUMMARY HB 13-1222 expands unpaid leave under the federal Family Medical Leave Act (FMLA) in Colorado to include persons related to the employee through a civil union or a domestic partnership. The employee may be required to provide documentation of the family relationship in accordance with FMLA.

If an employee takes federal FMLA leave (12 weeks), they cannot take additional state FMLA leave within the same 12-month period unless the employer chooses to expand the period of leave.

Employees may recover damages and equitable relief in state court as specified in the federal FMLA if an employer prohibits use of leave to care for the additional extended family members as defined in the bill.

Links Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org

Ed Sealover. Hick Signs Family Leave Act Expansion. Denver Business Journal. May 3, 2013.

HB 13-1046 Employee User Name Password Privacy Protection 05/11/13 Signed by the Governor. Took effect with the Governor’s signature.

PRIME SPONSORS Representative Angela Williams (D-Denver); Senator Jessie Ulibarri (D-Denver)

SUMMARY This bill prohibits an employer from requiring an employee or job applicant to disclose a user name, password, or other means for accessing a personal account or service through an electronic communications device. Furthermore, an employer is prohibited from requiring an applicant or employee to add them on any social media outlets or change their privacy settings. The bill also prohibits an employer from discharging, disciplining, penalizing, or refusing to hire an employee or applicant who does not provide access to personal accounts or services. The bill clarifies that an employer may investigate an employee to ensure compliance with securities or financial law or for suspected unauthorized downloading of proprietary information based on the receipt of information about these activities. An employee who is actually injured by a violation of this law may file a complaint with the Department of Labor and Employment.

Link Ed Sealover. Hands-off-my-Facebook bill Gets Initial Ok in Legislature. Denver Business Journal. Feb. 12, 2013.

Ed Sealover. Lawmakers make changes that help advance social media, tax break bills. Denver Business Journal. Mar. 5, 2013.

Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org