2022 - Final Session Legislative Report

2021 - 2022 General Assembly Legislative & Regulatory Update 

The Second Regular Session of Colorado’s 73rd General Assembly came to halt around midnight on Wednesday May 11, 2022. This was the first session not interrupted by COVID since March 2020, showing up with a very slow start and a dynamic sprint to the finish. Legislators dealt early on with redistricting, with many legislators moving into candidacy for Congress or negotiating with colleagues for the best match for new districts. The 2022 election will bring 23 new legislators to the Colorado General Assembly. 

The 2022 session introduced 657 pieces of legislation. Many bills spent hundreds of millions of ARPA (American Rescue Plan Act) dollars on workforce up-skilling, behavioral health, and COVID relief. Additional legislation provided tax relief, insured public safety, lowered health care costs, and secured funding for capital construction, roads, bridges, health care, and education. As of the writing of this report, a large percentage of bills are in the hands of the Governor to act either by vetoing, signing, or letting legislation go into effect without his signature.

NAIFA-Colorado was busy throughout the 2022 session, reviewing bills, taking positions, and hosting an in-person (although quite snowy) Day on the Hill in February. In addition to general business, the day featured State Treasurer Dave Young, Insurance Commissioner Mike Conway, and Department of Revenue Executive Director Mark Ferrandino. There we approximately 12 legislators in attendance. 

NAIFA-Colorado finished the legislative session testifying and advocating on bills. In total, NAIFA reviewed hundreds of bills and took active positions on 19 pieces of legislation. Below is a summary of the top seven bills NAIFA-Colorado supported, opposed, or amended.

529 Plans 

HB22-1310 Concerning the Alignment of State Income Tax Deduction For Contributions to a 529 Account that Allows Tax-Free Distributions For Eligible Apprenticeship Programs, sponsored by Representatives Cathy Kipp and Colin Larson and Senators Jeff Bridges and Rob Woodward, did one simple thing; it allowed for expenses for fees, books, supplies, and equipment required for participation in apprenticeship programs to be treated as a "qualified higher education expenses" thereby allowing a families a tax deduction. This bill has been sent to the Governor for signature.

HB22-1320 Concerning Achieving A Better Life Experience (ABLE) Savings Accounts for Individuals with Disabilities, sponsored by Representatives Cathy Kipp and Colin Larson and Senators Rachel Zenzinger and Rob Woodward. HB1320 modified the administration and operation of accounts under the Achieving a Better Life Experience (ABLE) savings program. First, the bill allowed a person other than the individual with a disability, to open an ABLE savings account, and to have signature authority over that account. Second, HB22-1320 prevented the state from filing claims against an ABLE program account upon the death of the designated beneficiary. And finally, the bill allowed taxpayers to deduct contributions to an ABLE savings account from their state taxable income contributions to be used for qualified disability expenses. This bill has been sent to the Governor for signature.

NAIFA-Colorado actively supported these bills and worked with sponsors on drafting, introduction, testimony in committee, and ensured the passage of both pieces of legislation.

Property, Casualty and Landowner Liability Insurance

HB22-1111 Concerning Insurance Coverage for Insured Losses Incurred as a Result of a Declared Fire Disaster, sponsored by Representative Judy Amabile, Senator Bob Rankin, and Senate President Steve Fenberg. HB22-1111 changed homeowner’s insurance coverage and claims handling in the event of a total loss of a home when that loss was a result of a wildfire disaster. The bill requires insurers to provide additional time and flexibility in rebuilding or replacing a home and contents, additional living expense coverage, building code upgrade costs, and a way to directly contact the insurer. The Division of Insurance must adopt rules to simplify the inventory process for policyholders. NAIFA Colorado had an “amend” position on the bill. This bill was heavily amended in the House and the Senate and has been sent to the Governor for signature.

 NAIFA-Colorado worked with stakeholders, supported amendments, and provided written testimony to guarantee the bill was operational and fair for both insurers and insureds.

SB22-115 Concerning Clarifying Terms Related to Landowner Liability sponsored by Senators Sonya Jaquez-Lewis and Bob Gardner and Representatives Kerry Tipper and Matt Soper. SB22-115 clarifies that the Colorado Premises Liability Act (CPLA) is intended to limit landowner liability and create clear standards landowners must satisfy. The bill declares that the Colorado Court of Appeals and Supreme Court decisions in Rocky Mountain Planned Parenthood. v. Wagner should not be relied upon concerning whether third-party criminal activity can be anticipated based on how controversial the landowner’s goods or services are, and that a landowner could not be liable for harm predominantly caused by third-party criminal activity. The bill does not alter or limit the availability of damages or the scope of claims that may be filed under the CPLA. Rather, it simply makes clear that Colorado organizations and businesses, regardless of the nature of their activities, do not have to build fortresses from which to operate if they are to avoid being held responsible by our courts for the actions of a criminal willing to randomly maim and kill.

NAIFA supported this bill and worked with stakeholders to ensure its passage.

 HB22-1357 Concerning Rate Increases for Homeowner's and Auto Insurance sponsored by Representative Mike Weissman, would have required the Commissioner of Insurance to approve rate increases for auto and homeowner’s insurance prior to using the rates. This bill was postponed indefinitely in its first committee.

SB22-094 Concerning Insurer Liability for Property and Casualty Claims sponsored by Senators Don Coram and Julie Gonzalas, would have required a first-party claimant in property and casualty insurance claims to be reimbursed for costs incurred to substantiate the claim. The bill would have allowed an unlimited number of third parties--such as auto body shops, public adjusters, or any other vendors--to collect additional fees from insurance companies for “reasonable” claims investigations. This bill was postponed indefinitely. 

 NAIFA-Colorado had an “oppose” position on both these bills, worked with stakeholders and provided written testimony to ensure the bills did not pass.

Health and Behavioral Care/Health Insurance

HB22-1278 Concerning the Creation of the Behavioral Health Administration sponsored by Representatives Mary Young, and Rod Pelton, and Senators Pete Lee and Cleave Simpson was a 230-page bill. Part one of the bill created the Behavioral Health Administration (BHA) who is charged with creating a coordinated, cohesive, and effective behavioral health system. Part one of the bill also establishes the role of the BHA commissioner, administration of existing programs, the formulation of a state plan, charges the BHA to get the federal designation necessary to administer block grant funding, and finally, creates a system wide behavioral health grievance program. Part two monitors the BHA system performance, tracks capacity of behavioral health providers, sets minimum performance standards for the treatment of children, youth, and adults, collaborates with other departments to align performance metrics and standards for providers, as well as establishes a data collection and reporting requirements. Part three of the bill charges the BHA to establish a state-wide behavioral health safety net system to ensure access to services. Part four charges the BHA with oversight for the Behavioral Health Administrative Services Organizations (BHASOs) and the establishment and maintenance of adequate networks of safety net services and care coordination. Part five oversees behavioral health entity licensing and penalties. Part six creates standards for community-based behavioral health and aligns all programs and networks. Part seven creates the BHA Advisory Council, to advise and assist the commissioner in the development and administration of the BHA. And finally, part eight establishes a pilot program to provide treatment plans and services for 700 veterans in El Paso County. This bill has gone to the Governor for signature.

NAIFA-Colorado supported HB22-1278 and the creation of the Behavioral Health Administration.

 SB22-1269 Concerning HealthCare Sharing Ministry Plan Reporting Requirements, sponsored by Representative Susan Lontine and Senator Chris Hansen, requires the Commissioner of Insurance to oversee individuals offering health care sharing plans. The bill requires the submission of certified information concerning the plan, including the current number of participants, the estimated number of participants in the next year, funds collected and the percentage retained for administration, the total dollar amount of requests submitted for reimbursement, the total dollar amount of requests qualified, denied, or yet-to-be reimbursed, specific counties and other states where the plan or arrangement is offered, copies of any consumer-facing and marketing materials, and contact information for the plan. This bill has been sent to the Governor for signature.

 NAIFA-Colorado monitored this bill.

NAIFA-Colorado Government Relations Committee provides a monthly update on public policy that we are supporting, seeking to amend, or have chosen to oppose. Please take time to read this information, ask questions and add your talents to the work.  

Thank you for your service to your clients, our industry, and your membership in NAIFA. 

Our best to you,

NAIFA-Colorado - Government Relations Committee