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Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 26-0442.03 Brita Darling x2241 HOUSE BILL 26-1327
House Committees Senate Committees
Health & Human Services
A BILL FOR AN ACT
CONCERNING HEALTH -CARE SUPPORT FOR LARGE EMPLOYERS '101
WORKERS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill creates the large employer health-care support enterprise
(enterprise) to impose, assess, and collect the large employer health-care
support fee (enterprise fee) in the amount of $2,300 for each supported
worker for the calendar year. A worker who is receiving medical
assistance benefits under the state medical assistance program is a
supported worker (supported worker).
HOUSE SPONSORSHIP
Feret, Bacon, Brown, Clifford, Garcia, Lieder, Mauro, Rutinel, Rydin, Stewart R., Titone,
Velasco, Woodrow, Zokaie
SENATE SPONSORSHIP
Mullica,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
The business purpose of the enterprise is to help large employers
retain supported workers who are not provided employer-sponsored
affordable health coverage by using enterprise fee revenue to help finance
the costs for medical assistance benefits for large employers' workers.
This service reduces lost productivity due to worker illness and training
costs to replace workers who may otherwise seek employment that
provides affordable health coverage.
An employer is subject to the enterprise fee if the employer is a
large employer, which is defined in the bill as an employer that has 500
or more supported workers (large employer). An employer is exempted
from paying the enterprise fee if the employer:
! Provides affordable health coverage to all workers working
20 or more hours per week or 80 or more hours per month;
! Is a franchisee of the employer;
! Is a nonprofit employer;
! Is a public employer; or
! Has a collective bargaining agreement with its employees
that includes health-care coverage.
Starting with a review of the 2027 calendar year, the department
of health care policy and financing (HCPF) shall prepare a large employer
report by March of the following calendar year that identifies large
employers by their number of supported workers for the preceding
calendar year. An employer may contest the employer's identification as
a large employer. Once identified, a large employer shall either pay the
enterprise fee for each of the large employer's supported workers or
demonstrate that it provides affordable health coverage to all workers
working 20 or more hours per week or 80 or more hours per month. The
enterprise may adjust the amount of the enterprise fee to reflect the cost
of the services, for inflation, or for other reasons. A large employer
commits a petty offense and is subject to a civil penalty for failure to
provide information necessary to calculate the enterprise fee or to either
timely pay the enterprise fee or demonstrate that the large employer offers
affordable health coverage as specified in the bill.
Enterprise revenue is used to pay for medical assistance benefits
for working-age adults under the state medical assistance program and to
increase reimbursement rates for health-care providers providing medical
assistance program services to ensure worker access to medical services.
The enterprise is governed by the enterprise board, and the
enterprise board shall report annually to the general assembly on the
enterprise revenue and the enterprise's use of the enterprise revenue in
support of large employers.
If the enterprise determines that retaining additional enterprise fee
revenue would cause the enterprise to receive more than $100 million
dollars in its first 5 fiscal years, the state treasurer shall credit the
additional fee revenue to the large employer fee cash fund created in the
HB26-1327-2-
state treasury for administration by HCPF, and that fee revenue is subject
to the state fiscal year spending limit imposed by section 20 of article X
of the state constitution and the excess revenues cap. The money in the
large employer fee cash fund shall be used by HCPF to pay for costs for
medical assistance benefits to support large employers' supported
workers.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add part 12 to article2
1 of title 25.5 as follows:3
PART 124
LARGE EMPLOYER HEALTH-CARE5
SUPPORT ENTERPRISE6
25.5-1-1201. Short title.7
THE SHORT TITLE OF THIS PART 12 IS THE "LARGE EMPLOYER8
HEALTH-CARE SUPPORT ENTERPRISE ACT".9
25.5-1-1202. Legislative declaration.10
(1) THE GENERAL ASSEMBLY FINDS THAT:11
(a) L ARGE EMPLOYERS PROVIDE JOBS FOR THOUSANDS OF12
COLORADO WORKERS, BUT MANY LARGE EMPLOYERS DO NOT PROVIDE13
AFFORDABLE HEALTH-CARE COVERAGE FOR WORKERS WHO WORK FEWER14
THAN THIRTY HOURS PER WEEK OR ONE HUNDRED THIRTY HOURS PER15
MONTH;16
(b) M ANY WORKERS WHO EARN LOW WAGES WHO ARE NOT17
OFFERED EMPLOYER-SPONSORED AFFORDABLE HEALTH COVERAGE ARE18
ENROLLED IN AND RECEIVE STATE -SUBSIDIZED MEDICAL ASSISTANCE19
BENEFITS AT SIGNIFICANT COST TO THE STATE;20
(c) LARGE EMPLOYERS DIRECTLY BENEFIT FROM THEIR WORKERS'21
PARTICIPATION IN STATE -SUBSIDIZED MEDICAL ASSISTANCE BENEFITS ,22
HB26-1327-3-
WHICH PARTICIPATION KEEPS WORKERS HEALTHY AND REDUCES LOST1
PRODUCTIVITY DUE TO WORKER ILLNESS; AND2
(d) F URTHER, THE STATE 'S INVESTMENT IN HEALTH CARE FOR3
LARGE EMPLOYERS ' WORKERS BOTH REDUCES COSTS AND INCREASES4
PROFITS FOR LARGE EMPLOYERS BECAUSE:5
(I) LARGE EMPLOYERS ARE NOT PROVIDING HEALTH COVERAGE6
FOR MEDICAL CARE THAT EVERY WORKER NEEDS; AND7
(II) MEDICAL ASSISTANCE BENEFITS SUPPORT THE RETENTION OF8
WORKERS IN CERTAIN JOBS AND REDUCE LARGE EMPLOYERS ' TRAINING9
COSTS THAT ARISE WHEN REPLACING WORKERS WHO MAY OTHERWISE10
SEEK EMPLOYMENT THAT PROVIDES AFFORDABLE HEALTH COVERAGE.11
(2) THE GENERAL ASSEMBLY DECLARES THAT:12
(a) T HE LARGE EMPLOYER HEALTH -CARE SUPPORT ENTERPRISE13
PROVIDES VALUABLE BENEFITS AND BUSINESS SERVICES TO LARGE14
EMPLOYERS BY , IN EXCHANGE FOR PAYING THE LARGE EMPLOYER15
HEALTH-CARE SUPPORT FEE IMPOSED PURSUANT TO SECTION 25.5-1-1206,16
USING THE FEE REVENUE TO:17
(I) IMPROVE THE HEALTH AND PRODUCTIVITY OF WORKERS FOR18
WHOM A LARGE EMPLOYER DOES NOT PROVIDE AFFORDABLE HEALTH19
COVERAGE BY SUPPORTING THE COST OF MEDICAL ASSISTANCE BENEFITS20
FOR THE LARGE EMPLOYER'S WORKERS; AND21
(II) ENSURE ACCESS TO NECESSARY HEALTH-CARE SERVICES FOR22
A LARGE EMPLOYER'S WORKERS BY INCREASING HEALTH-CARE PROVIDER23
REIMBURSEMENT UNDER THE MEDICAL ASSISTANCE PROGRAM;24
(b) NO OTHER ENTERPRISE CREATED SIMULTANEOUSLY OR WITHIN25
THE PRECEDING FIVE YEARS SERVES PRIMARILY THE SAME PURPOSE AS THE26
LARGE EMPLOYER HEALTH -CARE SUPPORT ENTERPRISE AND THE27
HB26-1327-4-
ENTERPRISE DOES NOT REQUIRE VOTER APPROVAL PURSUANT TO SECTION1
24-77-108;2
(c) IT IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST OF3
THE STATE TO ACKNOWLEDGE THAT , BY PROVIDING THE BENEFITS AND4
SERVICES SPECIFIED IN THIS PART 12, THE LARGE EMPLOYER HEALTH-CARE5
SUPPORT ENTERPRISE ENGAGES IN ACTIVITIES CONDUCTED IN THE PURSUIT6
OF A BENEFIT , GAIN , OR LIVELIHOOD AND THEREFORE OPERATES AS A7
BUSINESS; AND8
(d) C ONSISTENT WITH THE DETERMINATION OF THE COLORADO9
SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 89610
P.2d 859 (COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS11
INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE12
X OF THE STATE CONSTITUTION , THE GENERAL ASSEMBLY CONCLUDES13
THAT THE REVENUE COLLECTED BY THE ENTERPRISE IS GENERATED BY A14
FEE, NOT A TAX, BECAUSE THE MONEY CREDITED TO THE ENTERPRISE IS:15
(I) I MPOSED FOR THE SPECIFIC PURPOSE OF ALLOWING THE16
ENTERPRISE TO DEFRAY THE COSTS OF PROVIDING THE BUSINESS SERVICES17
DESCRIBED IN THIS PART 12;18
(II) COLLECTED AT RATES THAT ARE REASONABLY CALCULATED19
BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE ENTERPRISE ;20
AND21
(III) NOT STATE FISCAL YEAR SPENDING, AS DEFINED IN SECTION22
24-77-102 (17), OR STATE REVENUES, AS DEFINED IN SECTION 24-77-103.623
(6)(c), AND DOES NOT COUNT AGAINST EITHER THE STATE FISCAL YEAR24
SPENDING LIMIT IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE25
CONSTITUTION OR THE EXCESS STATE REVENUES CAP , AS DEFINED IN26
SECTION 24-77-103.6 (6)(b), SO LONG AS THE ENTERPRISE QUALIFIES AS27
HB26-1327-5-
AN ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE1
CONSTITUTION.2
25.5-1-1203. Definitions.3
AS USED IN THIS PART 12, UNLESS THE CONTEXT OTHERWISE4
REQUIRES:5
(1) "AFFORDABLE HEALTH COVERAGE" MEANS HEALTH COVERAGE6
THAT IS EQUIVALENT TO THE MINIMUM ESSENTIAL COVERAGE REQUIRED7
UNDER THE FEDERAL ACT AND THAT IS AFFORDABLE AND PROVIDES8
MINIMUM VALUE, AS DETERMINED UNDER THE FEDERAL ACT AS IT EXISTED9
ON DECEMBER 31, 2025.10
(2) "BOARD" MEANS THE ENTERPRISE BOARD CREATED IN SECTION11
25.5-1-1205.12
(3) "D EPARTMENT OF REVENUE " MEANS THE DEPARTMENT OF13
REVENUE CREATED IN SECTION 24-1-117.14
(4) (a) "EMPLOYER" MEANS A PERSON THAT CONDUCTS BUSINESS15
IN THE STATE.16
(b) "EMPLOYER" DOES NOT INCLUDE A PERSON THAT:17
(I) PROVIDES AFFORDABLE HEALTH COVERAGE TO ALL WORKERS18
WORKING TWENTY OR MORE HOURS EACH WEEK OR EIGHTY OR MORE19
HOURS EACH MONTH;20
(II) IS A FRANCHISEE OF THE EMPLOYER;21
(III) IS A NONPROFIT EMPLOYER;22
(IV) IS A PUBLIC EMPLOYER , AS DEFINED IN SECTION 29-33-10323
(6); OR24
(V) H AS A COLLECTIVE BARGAINING AGREEMENT WITH ITS25
EMPLOYEES THAT INCLUDES HEALTH-CARE COVERAGE.26
(5) "E NTERPRISE" MEANS THE LARGE EMPLOYER HEALTH -CARE27
HB26-1327-6-
SUPPORT ENTERPRISE CREATED IN THIS PART 12.1
(6) "F EDERAL ACT " MEANS THE "PATIENT PROTECTION AND2
AFFORDABLE CARE ACT", PUB.L. 111-148, AS AMENDED BY THE FEDERAL3
"HEALTH CARE AND EDUCATION RECONCILIATION ACT OF 2010", PUB.L.4
111-152, AS AMENDED, INCLUDING ANY FEDERAL REGULATIONS ADOPTED5
UNDER THE FEDERAL ACT.6
(7) "FEE" MEANS THE LARGE EMPLOYER HEALTH -CARE SUPPORT7
FEE CREATED IN SECTION 25.5-1-1206.8
(8) "FUND" MEANS THE LARGE EMPLOYER HEALTH-CARE SUPPORT9
FUND CREATED IN SECTION 25.5-1-1207.10
(9) (a) "L ARGE EMPLOYER " MEANS AN EMPLOYER WITH FIVE11
HUNDRED OR MORE SUPPORTED WORKERS DURING THE IMMEDIATELY12
PRECEDING CALENDAR YEAR.13
(b) F OR PURPOSES OF SUBSECTION (9)(a) OF THIS SECTION , THE14
DETERMINATION OF THE AVERAGE NUMBER OF WORKERS WHO ARE15
RECEIVING MEDICAL ASSISTANCE BENEFITS IN THE PRECEDING CALENDER16
YEAR DOES NOT INCLUDE:17
(I) A WORKER WHO IS UNDER EIGHTEEN YEARS OLD; OR18
(II) A WORKER EMPLOYED AS A SEASONAL WORKER, AS DEFINED19
IN SECTION 8-70-103 (23.6).20
(10) "MEDICAL ASSISTANCE BENEFITS" MEANS BENEFITS PROVIDED21
UNDER THE MEDICAL ASSISTANCE PROGRAM TO WORKERS WHO ARE22
ELIGIBLE FOR BENEFITS PURSUANT TO SECTION 25.5-5-201 (1)(m) OR23
(1)(p).24
(11) "M EDICAL ASSISTANCE PROGRAM " MEANS THE STATE25
MEDICAL ASSISTANCE PROGRAM ESTABLISHED IN ARTICLES 4, 5, AND 6 OF26
THIS TITLE 25.5.27
HB26-1327-7-
(12) "SUPPORTED WORKERS" MEANS, FOR THE CALENDAR YEAR,1
THE AVERAGE OF THE NUMBER OF A LARGE EMPLOYER 'S WORKERS WHO2
RECEIVED MEDICAL ASSISTANCE BENEFITS FOR ANY MONTH IN THE3
CALENDAR YEAR BEGINNING AFTER THE FIRST SIXTY DAYS OF4
EMPLOYMENT.5
(13) "WORKER" MEANS:6
(a) AN EMPLOYEE, AS DEFINED IN SECTION 8-4-101 (5), OF A LARGE7
EMPLOYER; OR8
(b) AN INDIVIDUAL WHO WORKS FOR AN ENTITY THAT HAS FIVE OR9
MORE INDEPENDENT CONTRACTORS IN THE STATE EACH YEAR , WHICH10
ENTITY IS ENGAGED IN THE PRIMARY WORK OF THE LARGE EMPLOYER.11
25.5-1-1204. Large employer health-care support enterprise12
- creation - purpose - reporting - repeal.13
(1) T HERE IS CREATED THE LARGE EMPLOYER HEALTH -CARE14
SUPPORT ENTERPRISE . THE ENTERPRISE IS AND OPERATES AS A15
GOVERNMENT-OWNED BUSINESS WITHIN THE STATE DEPARTMENT FOR THE16
PURPOSE OF CONDUCTING THE BUSINESS ACTIVITIES DESCRIBED IN17
SUBSECTION (2) OF THIS SECTION. THE ENTERPRISE IS A TYPE 1 ENTITY, AS18
DEFINED IN SECTION 24-1-105, AND EXERCISES ITS POWERS AND PERFORMS19
ITS DUTIES AND FUNCTIONS UNDER THE STATE DEPARTMENT.20
(2) THE ENTERPRISE IS CREATED FOR THE BUSINESS PURPOSE OF21
IMPOSING, ASSESSING , AND COLLECTING THE LARGE EMPLOYER22
HEALTH-CARE SUPPORT FEE PURSUANT TO SECTION 25.5-1-1206 AND TO23
USE THE FEE REVENUE TO SUPPORT THE HEALTH , PRODUCTIVITY , AND24
RETENTION OF A LARGE EMPLOYER'S SUPPORTED WORKERS BY:25
(a) P ROVIDING AND MAINTAINING ELIGIBILITY FOR MEDICAL26
ASSISTANCE BENEFITS FOR WORKING-AGE ADULTS WHO ARE:27
HB26-1327-8-
(I) PARENTS OR CARETAKER RELATIVES AND WHO ARE ELIGIBLE1
FOR MEDICAL ASSISTANCE BENEFITS PURSUANT TO SECTION 25.5-5-2012
(1)(m); OR3
(II) A DULTS WHO ARE CHILDLESS OR WITHOUT A DEPENDENT4
CHILD IN THE HOME AND WHO ARE ELIGIBLE FOR MEDICAL ASSISTANCE5
BENEFITS PURSUANT TO SECTION 25.5-5-201 (1)(p); AND6
(b) MAINTAINING SUPPORTED WORKERS' ACCESS TO HEALTH-CARE7
SERVICES BY INCREASING HEALTH -CARE PROVIDER REIMBURSEMENT8
RATES UNDER THE MEDICAL ASSISTANCE PROGRAM.9
(3) THE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES10
OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT11
RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS12
THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS , AS DEFINED IN13
SECTION 24-77-102 (7), FROM ALL COLORADO STATE AND LOCAL14
GOVERNMENTS COMBINED. SO LONG AS IT CONSTITUTES AN ENTERPRISE,15
THE ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE16
STATE CONSTITUTION.17
(4) I N FURTHERANCE OF THE BUSINESS PURPOSES OF THE18
ENTERPRISE AND TO FULLY EXERCISE ITS POWERS AND DUTIES THROUGH19
THE BOARD, THE ENTERPRISE HAS THE POWER AND DUTY TO:20
(a) I MPOSE, ASSESS , AND COLLECT THE LARGE EMPLOYER21
HEALTH-CARE SUPPORT FEE PURSUANT TO SECTION 25.5-1-1206;22
(b) ISSUE REVENUE BONDS PAYABLE FROM THE REVENUE OF THE23
ENTERPRISE;24
(c) PAY THE REASONABLE, DIRECT, AND INDIRECT ADMINISTRATIVE25
COSTS OF THE ENTERPRISE, INCLUDING THE REASONABLE ADMINISTRATIVE26
COSTS OF THE STATE DEPARTMENT AND THE DEPARTMENT OF REVENUE IN27
HB26-1327-9-
CONNECTION WITH THEIR DUTIES RELATING TO THE FEE;1
(d) (I) ENTER INTO CONTRACTS WITH THIRD PARTIES, INCLUDING2
THE STATE DEPARTMENT, TO ENGAGE THE SERVICES OF PUBLIC OR PRIVATE3
ENTITIES, CONTRACTORS , OR CONSULTANTS FOR PROFESSIONAL AND4
TECHNICAL ASSISTANCE AND TO PROVIDE ADVICE AND OTHER SERVICES5
RELATED TO CONDUCTING THE AFFAIRS OF THE ENTERPRISE , WITHOUT6
REGARD TO THE "PROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE7
24. THE ENTERPRISE SHALL GENERALLY AVOID USING SINGLE -SOURCE8
BIDS.9
(II) THE STATE DEPARTMENT SHALL PROVIDE OFFICE SPACE AND10
ADMINISTRATIVE STAFF TO THE ENTERPRISE, AS NEEDED, AT FAIR MARKET11
RATES, PURSUANT TO A CONTRACT ENTERED INTO PURSUANT TO THIS12
SUBSECTION (4)(d).13
(e) A DOPT, AMEND , OR REPEAL RULES OR POLICIES FOR THE14
REGULATION OF THE ENTERPRISE 'S AFFAIRS AND THE CONDUCT OF THE15
ENTERPRISE'S BUSINESS CONSISTENT WITH THIS PART 12;16
(f) E NGAGE THE ATTORNEY GENERAL 'S OFFICE FOR LEGAL17
SERVICES;18
(g) E NFORCE THIS PART 12, INCLUDING ASSESSING CIVIL19
PENALTIES;20
(h) P REPARE AND SUBMIT AN ANNUAL REPORT OF THE21
ENTERPRISE'S ACTIVITIES AND FUNDING PURSUANT TO SUBSECTION (6) OF22
THIS SECTION;23
(i) SEEK, ACCEPT, AND EXPEND GRANTS OR OTHER MONEY FROM24
THE FEDERAL GOVERNMENT AND GIFTS , GRANTS , OR DONATIONS FROM25
OTHER PUBLIC AND PRIVATE SOURCES TO SUPPORT AND ENHANCE26
ENTERPRISE ACTIVITIES; EXCEPT THAT THE ENTERPRISE SHALL NOT ACCEPT27
HB26-1327-10-
GRANTS FROM THE STATE OR FROM LOCAL GOVERNMENTS UNLESS THE1
COMBINED TOTAL OF ALL GRANTS FROM SUCH SOURCES IS UNDER TEN2
PERCENT OF THE ENTERPRISE'S ANNUAL REVENUE; AND3
(j) EXERCISE ALL RIGHTS AND POWERS NECESSARY OR INCIDENTAL4
TO OR IMPLIED FROM THE SPECIFIC POWERS AND DUTIES GRANTED IN THIS5
PART 12.6
(5) (a) (I) ON OR AFTER THE EFFECTIVE DATE OF THIS PART 12, THE7
STATE TREASURER MAY TRANSFER UP TO NINETY -FIVE THOUSAND8
DOLLARS FROM THE GENERAL FUND TO THE F UND FOR THE PURPOSE OF9
DEFRAYING EXPENSES INCURRED BY THE ENTERPRISE BEFORE IT RECEIVES10
FEE REVENUE OR REVENUE BOND PROCEEDS . NOTWITHSTANDING ANY11
OTHER LAW, THE ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY SO12
TRANSFERRED, AND , NOTWITHSTANDING ANY STATE FISCAL RULE OR13
GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE14
BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION , THE TRANSFER15
IS A LOAN FROM THE STATE TREASURER TO THE ENTERPRISE THAT IS16
REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION17
20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN18
SECTION 24-77-102 (7). ALL MONEY TRANSFERRED AS A LOAN TO THE19
ENTERPRISE IS CREDITED TO THE FUND OR TO AN ACCOUNT WITHIN THE20
FUND. LOAN LIABILITIES THAT ARE RECORDED IN THE FUND BUT THAT ARE21
NOT REQUIRED TO BE PAID IN THE CURRENT FISCAL YEAR SHALL NOT BE22
CONSIDERED WHEN CALCULATING SUFFICIENT STATUTORY FUND BALANCE23
FOR PURPOSES OF SECTION 24-75-109.24
(II) NO LATER THAN JULY 1, 2029, THE ENTERPRISE SHALL REPAY25
THE LOAN RECEIVED PURSUANT TO SUBSECTION (5)(a)(I) OF THIS SECTION26
AND ACCUMULATED INTEREST . INTEREST ACCRUES ON THE MONEY27
HB26-1327-11-
BORROWED AT A RATE PER ANNUM ON THE MOST RECENTLY ISSUED1
TEN-YEAR UNITED STATES TREASURY NOTE, ROUNDED TO THE NEAREST2
ONE-TENTH OF ONE PERCENT , AS REPORTED BY THE "WALL STREET3
JOURNAL" AS OF THE DATE THE TRANSFER IS MADE, BEGINNING ON THAT4
DATE AND CONTINUING UNTIL THE DATE ON WHICH THE MONEY IS REPAID.5
(b) THIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2030.6
(6) T HE ENTERPRISE SHALL PREPARE AN ANNUAL REPORT7
REGARDING ITS ACTIVITIES AND FUNDING AND PRESENT THE REPORT TO8
THE HOUSE OF REPRESENTATIVES HEALTH AND HUMAN SERVICES9
COMMITTEE AND THE SENATE HEALTH AND HUMAN SERVICES COMMITTEE,10
OR THEIR SUCCESSOR COMMITTEES . THE ENTERPRISE SHALL ALSO POST11
THE ANNUAL REPORT ON A PUBLIC-FACING WEBSITE. NOTWITHSTANDING12
THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), THE REQUIREMENT TO13
SUBMIT A REPORT PURSUANT TO THIS SUBSECTION (6) CONTINUES14
INDEFINITELY.15
(7) (a) THE ENTERPRISE BOARD IS SUBJECT TO THE OPEN MEETINGS16
PROVISIONS OF THE "COLORADO SUNSHINE ACT OF 1972", CONTAINED IN17
PART 4 OF ARTICLE 6 OF TITLE 24. EXCEPT AS MAY OTHERWISE BE18
PROVIDED BY FEDERAL LAW OR STATE LAW , THE RECORDS OF THE19
ENTERPRISE ARE PUBLIC RECORDS, AS DEFINED IN SECTION 24-72-202 (6),20
AND ARE SUBJECT TO THE "COLORADO OPEN RECORDS ACT", PART 2 OF21
ARTICLE 72 OF TITLE 24.22
(b) NOTHING IN THIS PART 12 AUTHORIZES THE DISCLOSURE TO23
THE PUBLIC BY THE ENTERPRISE, THE BOARD, THE STATE, OR AN EMPLOYER24
OR ITS AGENT OF ANY INFORMATION THAT WOULD IDENTIFY A SPECIFIC25
WORKER OR A SPECIFIC WORKER 'S STATUS AS A RECIPIENT OF MEDICAL26
ASSISTANCE BENEFITS.27
HB26-1327-12-
(8) THE ENTERPRISE IS A PUBLIC ENTITY FOR PURPOSES OF PART 21
OF ARTICLE 57 OF TITLE 11.2
25.5-1-1205. Enterprise board of directors - creation -3
appointment - duties - rules - repeal.4
(1) THE LARGE EMPLOYER HEALTH-CARE SUPPORT ENTERPRISE IS5
GOVERNED BY THE ENTERPRISE BOARD OF DIRECTORS . THE BOARD6
CONSISTS OF THE FOLLOWING SEVEN VOTING MEMBERS:7
(a) T HE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR 'S8
DESIGNEE; AND9
(b) SIX MEMBERS APPOINTED BY THE GOVERNOR WITH THE ADVICE10
AND CONSENT OF THE SENATE, INCLUDING:11
(I) TWO MEMBERS WHO ARE HEALTH-CARE PROVIDERS WHO SERVE12
PATIENTS WHO RECEIVE MEDICAL ASSISTANCE BENEFITS;13
(II) O NE MEMBER WHO IS A WORKER WHO RECEIVES OR HAS14
RECEIVED MEDICAL ASSISTANCE BENEFITS WHILE EMPLOYED;15
(III) O NE MEMBER WHO REPRESENTS A LOCAL CHAMBER OF16
COMMERCE;17
(IV) ONE MEMBER WHO REPRESENTS A LARGE EMPLOYER; AND18
(V) ONE MEMBER WHO REPRESENTS A COUNTY DEPARTMENT OF19
HUMAN OR SOCIAL SERVICES.20
(2) (a) NOTWITHSTANDING SUBSECTION (4)(a) OF THIS SECTION, OF21
THE FIRST MEMBERS APPOINTED TO THE BOARD PURSUANT TO SUBSECTION22
(1)(b) OF THIS SECTION, TWO MEMBERS SHALL SERVE AN INITIAL TERM OF23
TWO YEARS.24
(b) THE GOVERNOR SHALL MAKE THE INITIAL APPOINTMENTS TO25
THE BOARD NO LATER THAN NOVEMBER 1, 2026.26
(c) THIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2027.27
HB26-1327-13-
(3) T HE EXECUTIVE DIRECTOR OR THE EXECUTIVE DIRECTOR 'S1
DESIGNEE IS THE CHAIR OF THE BOARD.2
(4) (a) M EMBERS OF THE BOARD APPOINTED BY THE GOVERNOR3
SERVE THREE -YEAR TERMS AND SERVE AT THE PLEASURE OF THE4
GOVERNOR AND MAY BE REMOVED BY THE GOVERNOR. A MEMBER OF THE5
BOARD MAY SERVE AN UNLIMITED NUMBER OF CONSECUTIVE TERMS.6
(b) A MEMBER APPOINTED TO FILL A VACANCY SERVES THE7
REMAINDER OF THE UNEXPIRED TERM OF THE MEMBER WHOSE VACANCY8
IS BEING FILLED.9
(c) MEMBERS OF THE BOARD SERVE WITHOUT COMPENSATION BUT10
MAY BE REIMBURSED FROM MONEY IN THE FUND FOR ACTUAL ,11
REASONABLE, AND NECESSARY EXPENSES, INCLUDING TRAVEL, FOOD, AND12
LODGING, INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES13
PURSUANT TO THIS PART 12.14
(5) THE BOARD SHALL MEET AS OFTEN AS NECESSARY TO CARRY15
OUT ITS DUTIES. THE BOARD IS AUTHORIZED TO:16
(a) IMPLEMENT AND ADMINISTER THE ENTERPRISE;17
(b) ESTABLISH BYLAWS, AS APPROPRIATE AND CONSISTENT WITH18
THIS PART 12, FOR THE BOARD'S EFFECTIVE OPERATION;19
(c) ESTABLISH ADMINISTRATIVE AND ACCOUNTING PROCEDURES20
FOR THE OPERATION OF THE ENTERPRISE;21
(d) ASSESS CIVIL PENALTIES PURSUANT TO SECTION 25.5-1-120622
(8); AND23
(e) ADOPT RULES OR POLICIES CONCERNING:24
(I) THE DETERMINATION AND CALC ULATION OF AN EMPLOYER 'S25
SUPPORTED WORKERS;26
(II) T HE DETERMINATION OF THE AMOUNT OF THE FEE PAID BY27
HB26-1327-14-
EACH LARGE EMPLOYER; AND1
(III) T HE USE OF ENTERPRISE REVENUE TO MAINTAIN MEDICAL2
ASSISTANCE BENEFITS FOR INDIVIDUALS WHO ARE SUPPORTED WORKERS3
AND TO INCREASE PROVIDER REIMBURSEMENT RATES FOR PROVIDERS OF4
MEDICAL ASSISTANCE BENEFITS WHO SERVE SUPPORTED WORKERS.5
25.5-1-1206. Large employer health-care support fee - annual6
large employer report - imposition and collection of enterprise fee -7
petty offense - civil penalty - rules.8
(1) F OR THE 2027 CALENDAR YEAR , AND CONTINUING EACH9
CALENDAR YEAR THEREAFTER, THE ENTERPRISE SHALL IMPOSE , ASSESS,10
AND COLLECT THE LARGE EMPLOYER HEALTH -CARE SUPPORT FEE FROM11
EACH LARGE EMPLOYER.12
(2) (a) IN FURTHERANCE OF THE ENTERPRISE IMPOSING, ASSESSING,13
AND COLLECTING THE FEE, THE STATE DEPARTMENT SHALL:14
(I) NO LATER THAN MARCH 1, 2028, AND NO LATER THAN EACH15
MARCH 1 THEREAFTER IN THE YEAR FOLLOWING THE APPLICABLE16
CALENDAR YEAR , PUBLISH , AND MAKE PUBLICLY AVAILABLE UPON17
REQUEST, A REPORT THAT IDENTIFIES EACH LARGE EMPLOYER FOR THE18
PRECEDING CALENDAR YEAR, INCLUDING:19
(A) THE LARGE EMPLOYER'S EMPLOYER IDENTIFICATION NUMBER;20
AND21
(B) THE NUMBER OF SUPPORTED WORKERS; AND22
(II) PERMIT AN EMPLOYER TO CONTEST THE STATE DEPARTMENT'S23
IDENTIFICATION OF THE EMPLOYER AS A LARGE EMPLOYER FOR THE24
PRECEDING CALENDAR YEAR BY JUNE 1 OF THE FOLLOWING CALENDAR25
YEAR; EXCEPT THAT , IF JUNE 1 FALLS ON A WEEKEND OR STATE OR26
FEDERAL HOLIDAY, AN EMPLOYER MAY CONTEST SUCH IDENTIFICATION BY27
HB26-1327-15-
THE NEXT BUSINESS DAY.1
(b) THE STATE DEPARTMENT SHALL DETERMINE THE NUMBER OF2
SUPPORTED WORKERS FOR EACH EMPLOYER USING AVAILABLE3
ADMINISTRATIVE DATA . THE STATE DEPARTMENT MAY ENTER INTO4
DATA-SHARING AGREEMENTS WITH OTHER STATE AGENCIES AS NECESSARY5
TO IMPLEMENT THIS SECTION.6
(3) (a) N O LATER THAN AUGUST 1, 2028, AND NO LATER THAN7
AUGUST 1 THEREAFTER IN THE YEAR FOLLOWING THE APPLICABLE8
CALENDAR YEAR, A LARGE EMPLOYER SHALL EITHER:9
(I) P AY THE FEE IN THE AMOUNT OF TWO THOUSAND THREE10
HUNDRED DOLLARS FOR EACH OF THE LARGE EMPLOYER 'S SUPPORTED11
WORKERS, WHICH FEE AMOUNT THE ENTERPRISE MAY ADJUST PURSUANT12
TO SUBSECTION (4) OF THIS SECTION; OR13
(II) (A) DEMONSTRATE THAT AFFORDABLE HEALTH COVERAGE IS14
OFFERED BY OR THROUGH THE LARGE EMPLOYER TO A WORKER WHO15
WORKS TWENTY OR MORE HOURS PER WEEK OR EIGHTY OR MORE HOURS16
PER MONTH.17
(B) N OTWITHSTANDING SUBSECTION (3)(a)(II)(A) OF THIS18
SECTION, THE OPTION DESCRIBED IN SUBSECTION (3)(a)(II)(A) OF THIS19
SECTION IS NOT AVAILABLE TO THE LARGE EMPLOYER IF THE LARGE20
EMPLOYER SELECTS THIS OPTION IN ANY YEAR AND THEN CEASES21
OFFERING AFFORDABLE HEALTH COVERAGE TO WORKERS IDENTIFIED IN22
SUBSECTION (3)(a)(II)(A) OF THIS SECTION IN ANY OF THE SUBSEQUENT23
THREE YEARS.24
(b) T HE DEPARTMENT OF REVENUE SHALL COLLECT THE LARGE25
EMPLOYER HEALTH -CARE SUPPORT FEE FROM LARGE EMPLOYERS ON26
BEHALF OF THE ENTERPRISE.27
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(c) M ONEY THAT THE DEPARTMENT OF REVENUE COLLECTS1
PURSUANT TO THIS SECTION IS CUSTODIAL MONEY HELD TEMPORARILY BY2
THE DEPARTMENT OF REVENUE AND THE STATE TREASURER SOLELY FOR3
THE PURPOSE OF TRANSFERRING THE MONEY TO:4
(I) THE LARGE EMPLOYER HEALTH-CARE SUPPORT FUND FOR USE5
BY THE ENTERPRISE; OR6
(II) THE LARGE EMPLOYER FEE CASH FUND CREATED IN SECTION7
25.5-4-217 FOR THE PURPOSES SPECIFIED IN SECTION 25.5-4-217.8
(d) BASED ON THE ENTERPRISE'S STATUS AS AN ENTERPRISE, THE9
MONEY COLLECTED AND TRANSFERRED TO THE LARGE EMPLOYER10
HEALTH-CARE SUPPORT FUND IS NOT SUBJECT TO SECTION 20 OF ARTICLE11
X OF THE STATE CONSTITUTION AT ANY TIME DURING THE MONEY 'S12
COLLECTION, TRANSFER, AND USE.13
(4) THE ENTERPRISE MAY ANNUALLY ADJUST THE FEE AMOUNT SET14
FORTH IN SUBSECTION (3)(a)(I) OF THIS SECTION FOR INFLATION , TO15
REFLECT THE COST OF SERVICES PROVIDED TO LARGE EMPLOYERS, OR FOR16
OTHER REASONS DETERMINED BY THE BOARD.17
(5) (a) I F THE ENTERPRISE DETERMINES THAT RETAINING18
ADDITIONAL ENTERPRISE FEE REVENUE WOULD CAUSE THE ENTERPRISE TO19
RECEIVE MORE THAN ONE HUNDRED MILLION DOLLARS IN TOTAL FEE20
REVENUE, FOR PURPOSES OF SECTION 24-77-108, IN ITS FIRST FIVE FISCAL21
YEARS, WHICH FIVE-YEAR PERIOD ENDS ON JULY 1, 2030, THE ENTERPRISE22
SHALL NOTIFY THE STATE TREASURER . UPON RECEIVING NOTIFICATION23
FROM THE ENTERPRISE , THE STATE TREASURER SHALL CREDIT ANY24
ADDITIONAL ENTERPRISE FEE REVENUE COLLECTED BY THE DEPARTMENT25
OF REVENUE BEFORE JULY 1, 2030, TO THE LARGE EMPLOYER FEE CASH26
FUND CREATED IN SECTION 25.5-4-217.27
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(b) AS A RESULT OF THE STATE TREASURER CREDITING A PORTION1
OF THE ENTERPRISE FEE REVENUE TO THE LARGE EMPLOYER FEE CASH2
FUND PURSUANT TO SUBSECTION (5)(a) OF THIS SECTION, THE ENTERPRISE3
DOES NOT RECEIVE MORE THAN ONE HUNDRED MILLION DOLLARS IN TOTAL4
FEE REVENUE IN ITS FIRST FIVE FISCAL YEARS FOR PURPOSES OF SECTION5
24-77-108, AND, THEREFORE, AS A RESULT OF IMPOSING THE ENTERPRISE6
FEE, THE ENTERPRISE DOES NOT REQUIRE VOTER APPROVAL AND IS NOT7
REQUIRED TO STOP COLLECTING FEES AND SURCHARGES PURSUANT TO8
SECTION 24-77-108.9
(6) T HE ENTERPRISE MAY PAY , FROM FEE REVENUE AND CIVIL10
PENALTIES RECEIVED BY THE ENTERPRISE, REASONABLE AND NECESSARY11
DIRECT AND INDIRECT EXPENSES RELATING TO:12
(a) THE STATE DEPARTMENT'S DUTIES SPECIFIED IN SUBSECTION (2)13
OF THIS SECTION , INCLUDING THE PREPARATION OF AN ANNUAL LARGE14
EMPLOYER REPORT AND , IF AN EMPLOYER CONTESTS THE EMPLOYER 'S15
IDENTIFICATION AS A LARGE EMPLOYER PURSUANT TO SUBSECTION (2)(a)16
OF THIS SECTION, AN EMPLOYER DATA REVIEW; AND17
(b) THE DEPARTMENT OF REVENUE'S COLLECTION OF THE FEE AND18
CIVIL PENALTIES FROM LARGE EMPLOYERS AND TRANSMITTAL OF THE FEE19
AND CIVIL PENALTIES TO THE STATE TREASURER PURSUANT TO20
SUBSECTIONS (3)(b) AND (8)(c) OF THIS SECTION.21
(7) FOR PURPOSES OF IMPOSING, ASSESSING, AND COLLECTING THE22
FEE, AN EMPLOYER SHALL COMPLY WITH REQUESTS FOR DATA FROM THE23
ENTERPRISE, THE STATE DEPARTMENT , AND THE DEPARTMENT OF24
REVENUE.25
(8) (a) A LARGE EMPLOYER THAT FAILS TO COMPLY WITH26
SUBSECTION (3) OR (7) OF THIS SECTION:27
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(I) C OMMITS A PETTY OFFENSE AND SHALL BE PUNISHED IN1
ACCORDANCE WITH SECTION 18-1.3-503; AND2
(II) SHALL BE ASSESSED A CIVIL PENALTY BY THE ENTERPRISE IN3
AN AMOUNT EQUAL TO THE FEE AMOUNT DESCRIBED IN SUBSECTION4
(3)(a)(I) OF THIS SECTION FOR EACH SUPPORTED WORKER.5
(b) NOTWITHSTANDING SUBSECTION (8)(a)(II) OF THIS SECTION,6
THE ENTERPRISE MAY WAIVE OR REDUCE THE CIVIL PENALTY IF A LARGE7
EMPLOYER'S FAILURE TO PAY THE FEE OR TO PROVIDE INFORMATION8
REQUIRED PURSUANT TO SUBSECTION (7) OF THIS SECTION IS DUE TO9
REASONABLE CAUSE AND NOT WILLFUL NEGLECT OR INTENT TO DEFRAUD.10
(c) A LARGE EMPLOYER ASSESSED A CIVIL PENALTY PURSUANT TO11
THIS SUBSECTION (8) SHALL PAY THE CIVIL PENALTY TO THE DEPARTMENT12
OF REVENUE. THE DEPARTMENT OF REVENUE SHALL TRANSMIT THE CIVIL13
PENALTY TO THE STATE TREASURER WHO SHALL CREDIT THE CIVIL14
PENALTY TO THE FUND.15
25.5-1-1207. Large employer he alth-care s upport fund -16
creation - use of money.17
(1) T HERE IS CREATED IN THE STATE TREASURY THE LARGE18
EMPLOYER HEALTH-CARE SUPPORT FUND. THE FUND CONSISTS OF:19
(a) MONEY RECEIVED FROM THE FEE;20
(b) MONEY RECEIVED FROM THE SALE OF REVENUE BONDS ISSUED21
BY THE ENTERPRISE;22
(c) C IVIL PENALTIES ASSESSED AND COLLECTED PURSUANT TO23
SECTION 25.5-1-1206 (8);24
(d) MONEY LOANED TO THE ENTERPRISE PURSUANT TO SECTION25
25.5-1-1204 (5);26
(e) ANY GIFTS, GRANTS, DONATIONS, OR OTHER MONEY RECEIVED27
HB26-1327-19-
BY THE ENTERPRISE;1
(f) M ONEY APPROPRIATED TO THE FUND BY THE GENERAL2
ASSEMBLY; AND3
(g) I NTEREST AND INCOME DERIVED FROM THE DEPOSIT AND4
INVESTMENT OF MONEY IN THE FUND.5
(2) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND6
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE7
FUND TO THE FUND.8
(3) S UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL9
ASSEMBLY, THE ENTERPRISE MAY EXPEND MONEY FROM THE FUND FOR:10
(a) THE PURPOSES SPECIFIED IN SECTION 25.5-1-1204 (4); AND11
(b) ANY OTHER PURPOSES SPECIFIED IN THIS PART 12.12
SECTION 2. In Colorado Revised Statutes, add 25.5-4-217 as13
follows:14
25.5-4-217. Large employer fee cash fund - created - use of15
money - reporting - definitions.16
(1) Definitions. AS USED IN THIS SECTION, UNLESS THE CONTEXT17
OTHERWISE REQUIRES:18
(a) "E NTERPRISE" MEANS THE LARGE EMPLOYER HEALTH -CARE19
SUPPORT ENTERPRISE CREATED IN SECTION 25.5-1-1204.20
(b) "ENTERPRISE FEE" MEANS THE LARGE EMPLOYER HEALTH-CARE21
SUPPORT FEE IMPOSED PURSUANT TO SECTION 25.5-1-1206.22
(c) "F UND" MEANS THE LARGE EMPLOYER FEE CASH FUND23
CREATED IN SUBSECTION (2) OF THIS SECTION.24
(2) (a) THE LARGE EMPLOYER FEE CASH FUND IS CREATED IN THE25
STATE TREASURY.26
(b) THE FUND CONSISTS OF ENTERPRISE FEE REVENUE CREDITED TO27
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THE FUND PURSUANT TO SECTION 25.5-1-1206 (5)(a) AND ANY OTHER1
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER2
TO THE FUND.3
(c) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND4
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE5
FUND TO THE FUND.6
(3) S UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL7
ASSEMBLY, THE STATE DEPARTMENT MAY EXPEND MONEY FROM THE FUND8
FOR THE PURPOSES SPECIFIED IN SECTION 25.5-1-1204 (2).9
(4) NOTHING IN THIS SECTION OR IN PART 12 OF ARTICLE 1 OF THIS10
TITLE 25.5 SHALL BE CONSTRUED TO ESTABLISH THE FUND AS AN11
ENTERPRISE FUND.12
SECTION 3. In Colorado Revised Statutes, 24-75-402, amend13
(5)(mmm) and (5)(nnn); and add (5)(ooo) as follows:14
24-75-402. Cash funds - limit on uncommitted reserves -15
reduction in the amount of fees - exclusions - definitions.16
(5) Notwithstanding any provision of this section to the contrary,17
the following cash funds are excluded from the limitations specified in18
this section:19
(mmm) The r eentry services for justice-involved individuals20
reinvestment cash fund created in section 25.5-4-505.7; and21
(nnn) The health-related social needs reinvestment cash fund22
created in section 25.5-5-340; AND23
(ooo) THE LARGE EMPLOYER FEE CASH FUND CREATED IN SECTION24
25.5-4-217.25
SECTION 4. In Colorado Revised Statutes, 39-21-113, add (40)26
as follows:27
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39-21-113. Reports and returns - rule - repeal.1
(40) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION , THE2
EXECUTIVE DIRECTOR MAY PROVIDE TO THE DEPARTMENT OF HEALTH3
CARE POLICY AND FINANCING SUCH DETAILED TAXPAYER INFORMATION4
PERTINENT TO IMPOSING , ASSESSING , AND COLLECTING THE LARGE5
EMPLOYER HEALTH -CARE SUPPORT FEE PURSUANT TO SECTION6
25.5-1-1206. ANY INFORMATION PROVIDED PURSUANT TO THIS7
SUBSECTION (40) MUST REMAIN CONFIDENTIAL , AND ALL PERSONS ARE8
SUBJECT TO THE LIMITATIONS SPECIFIED IN SUBSECTION (4) OF THIS9
SECTION AND THE PENALTIES SPECIFIED IN SUBSECTION (6) OF THIS10
SECTION.11
SECTION 5. Safety clause. The general assembly finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety or for appropriations for14
the support and maintenance of the departments of the state and state15
institutions.16
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