1. (1) There is hereby created in the state treasury the family and medical leave insurance fund. The fund consists of premiums paid pursuant to section 8-13.3-507, revenues from revenue bonds issued in accordance with section 8-13.3-508 (2)(d), and money transferred pursuant to subsection (4) of this section. Money in the fund may be used only to pay revenue bonds; to repay the general fund loan provided in subsection (3) of this section; to reimburse employers who pay family and medical leave insurance benefits directly to employees in accordance with section 8-13.3-515 (1); and to pay benefits under, and to administer, the program pursuant to this part 5, including technology costs to administer the program and outreach services developed under section 8-13.3-520. Interest earned on the investment of money in the fund remains in the fund. Any money remaining in the fund at the end of a fiscal year remains in the fund and does not revert to the general fund or any other fund. State money in the fund is continuously appropriated to the division for the purpose of this section. The general assembly shall not appropriate money from the fund for the general expenses of the state.
2. (2) The division may seek, accept, and expend gifts, grants, and donations, including program-related investments and community reinvestment funds, to finance the costs of establishing and implementing the program.
3. (3) Repealed.

4. (4)

   1. (a) On May 17, 2022, or as soon as possible thereafter, and notwithstanding section 24-75-227 (3)(c), the state treasurer shall transfer fifty-seven million dollars from the revenue loss restoration cash fund to the fund. The money is an advance payment of premiums for state employee coverage that the state is required to pay under the family and medical leave insurance program established in section 8-13.3-516 and is not a grant for purposes of section 20 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7). Liabilities that are recorded in the fund but are not required to be paid in the current fiscal year shall not be considered when calculating sufficient statutory fund balance for purposes of section 24-75-109.
   2. (a.5) On June 24, 2024, the state treasurer shall transfer four hundred thousand dollars from the general fund to the fund. The money is an advance payment of premiums for state employee coverage that the state is required to pay under the family and medical leave insurance program established in section 8-13.3-516 and is not a grant for purposes of section 20 (2)(d) of article X of the state constitution or as defined in section 24-77-102 (7).

   3. (b)

      1. (I) On or before December 31, 2022, the division shall determine the manner in which the state will receive a credit for the advance payment of premiums it has paid pursuant to subsection (4)(a) of this section for premiums it is required to pay under the family and medical leave insurance program established in section 8-13.3-516. The credit shall be calculated by multiplying the credit balance on the state's employer account or accounts as of June 30, 2022, and as of June 30 of each year thereafter, by a rate equivalent to the rate per annum on the most recently issued ten-year United States treasury note, rounded to the nearest one-tenth of one percent, as reported by the Wall Street Journal, as of the date of the transfer required by subsection (4)(a) of this section. The state shall receive credit, calculated in this manner, until the amount of premiums the state is required to pay exceeds fifty-seven million dollars plus the amount of interest accrued as set forth in this subsection (4)(b)(I). On or before December 31, 2022, the division shall submit a report to the executive director of the department of personnel, the director of the office of state planning and budgeting, and the joint budget committee setting forth the manner in which it determines to credit the state pursuant to this subsection (4)(b)(I).
      2. (II) On July 1, 2023, and on July 1 of each year thereafter, the executive director of the department of labor and employment shall submit a report of the amount of remaining credit the state can receive for premiums it is required to pay to the executive director of the department of personnel, the state treasurer, the director of the office of state planning and budgeting, and the joint budget committee.
   4. (c) The advance payment of premiums by the state pursuant to this subsection (4) shall not constitute or become an indebtedness, a debt, or a liability of the state. The state shall not be liable on such advance payment, nor shall the advance payment constitute the giving, pledging, or loaning of the full faith and credit of the state. Advance payments shall be exempt from the state's fiscal rules.

   5. (d)

      1. (I) Notwithstanding any provision of this section to the contrary, the division shall cease to credit the money transferred to the fund from the revenue loss restoration cash fund pursuant to subsection (4)(a) of this section as an advance payment of premiums for state employee coverage that the state is required to pay under the family and medical leave insurance program at the end of state fiscal year 2023-24.
      2. (II) Notwithstanding any provision of this section to the contrary, on the date on which the fund balance meets or exceeds one hundred million dollars, or as soon as possible thereafter, the state treasurer shall transfer thirty-five million dollars from the fund back to the revenue loss restoration cash fund created in section 24-75-227 (2)(a) as repayment of the unexpended amount of the advance payment of premiums for state employee coverage made by the state pursuant to subsection (4)(a) of this section.

      3. (III)

         1. (A) On June 30, 2024, the state treasurer shall transfer one million one hundred thousand dollars from the fund to the American Rescue Plan Act of 2021 cash fund created in section 24-75-226. This amount is of the money that originated from the money the state received from the federal coronavirus state fiscal recovery fund that was transferred to the fund from the revenue loss restoration cash fund pursuant to subsection (4)(a) of this section.
         2. (B) Notwithstanding any provision of this section to the contrary, on or as soon as possible after the date the state controller publishes the comprehensive annual financial report of the state for state fiscal year 2023-24, the state treasurer shall transfer any remaining amount of the fifty-seven million dollars transferred to the fund from the revenue loss restoration cash fund pursuant to subsection (4)(a) of this section, in addition to the thirty-five million dollars to be transferred pursuant to subsection (4)(d)(II) of this section, to the American Rescue Plan Act of 2021 cash fund created in section 24-75-226 or to the general fund, as required in this subsection (4)(d)(III)(B), as repayment of the unexpended amount of the advance payment of premiums for state employee coverage made by the state pursuant to subsection (4)(a) of this section. The state treasurer shall transfer money pursuant to this subsection (4)(d)(III)(B) as follows: The state treasurer shall transfer money that originated from the money the state received from the federal coronavirus state fiscal recovery fund to the American Rescue Plan Act of 2021 cash fund created in section 24-75-226 and shall transfer money that originated from the general fund to the general fund.

Source: Initiated 2020: Entire part added, Proposition 118, L. 2021, p. 4240, effective upon proclamation of the Governor, December 31, 2020. L. 2021: (1) amended and (3) added, (SB 21-251), ch. 224, p. 1200, § 1, effective June 14. L. 2022: (1) amended and (4) added, (HB 22-1133), ch. 170, p. 1040, § 3, effective May 17. L. 2023: (4)(d) added, (SB 23-234), ch. 104, p. 377, § 1, effective April 24. L. 2024: (4)(a.5) added and (4)(d)(III) amended, (HB 24-1465), ch. 257, p. 1680, § 1, effective May 24.

Editor's note: (1) This section was originally numbered as 8-13.3-418 in Proposition 118 but was renumbered on revision for ease of location.

(2) Subsection (3)(c) provided for the repeal of subsection (3), effective December 1, 2024. (See L. 2021, p. 1200.)

Cross references: For the legislative declaration in HB 22-1133, see section 1 of chapter 170, Session Laws of Colorado 2022.