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DENVER, CO - The House Business Affairs & Labor Committee today passed two bills that would require sellers to provide consumers with an opportunity to cancel automatic renewal contracts either online or in person and extend the paid Family and Medical Leave Insurance (FAMLI) program for families with newborns receiving inpatient care in the NICU.
“Coloradans shouldn’t have to jump through hoops just to be able to cancel a subscription,” said Rep. Mandy Lindsay, D-Aurora, sponsor of SB25-145. “When ‘free trials’ turn into unbreakable contracts, consumers suffer. This legislation would simplify the process for Coloradans to cancel subscriptions, including online options, to avoid unwanted charges and save Coloradans time and money.”
“Too many companies are using complicated cancellation processes to trap consumers into contracts with costly charges,” said Rep. Yara Zokaie, D-Fort Collins, sponsor of SB25-145 and SB25-144. “From Netflix and Amazon Prime to gym memberships, subscription services are prevalent in our daily lives. This legislation would make it a deceptive trade practice to purposefully make subscription cancellations difficult, saving Coloradans money on services they no longer find useful.”
SB25-145 would require sellers of goods and services to implement simple mechanisms for consumers to cancel automatic renewal contracts and trial periods either online or in person. Failure to do so would constitute a deceptive trade practice under the Colorado Consumer Protection Act. SB25-145 passed by a vote of 7-5.
“Having a child in the NICU is one of the most terrifying moments as a parent, and the last thing they should be worried about is having to choose between spending time with their child in the hospital and keeping their jobs,” continued Zokaie. “I got involved in politics to fight for a paid family leave, as I had to work from the hospital when my baby was sick in the NICU. Extending FAMLI for families in the NICU is a no-brainer, and I am proud to sponsor this bill to better support Colorado families.”
SB25-144, which passed by a vote of 9-3, would allow parents of children who are receiving inpatient care in a neonatal intensive care unit (NICU) to receive paid family and medical insurance benefits for up to an additional twelve weeks while the child is receiving care.
“The FAMLI Insurance program has given Colorado families much-needed time away from the office to take care of sick loved ones or bond with new additions to the family without worrying about how they’re going to pay the bills,” said Rep. Jenny Willford, D-Northglenn, sponsor of SB25-144. “We know that parent engagement while their newborn is in the NICU is crucial for development and attachment. This bill would extend FAMLI benefits up to 12 weeks for families in the NICU so they can focus on what matters most - the health of their child.”
The bill would also modify the premiums for the FAMLI program to reduce the current rate of 0.9 percent of wages per employee to 0.88 percent for the next calendar year. For each subsequent year, the FAMLI division director is required to set the premium rate to reflect the solvency of the program and create more stability for businesses.
Colorado voters approved Proposition 118 in the November 2020 election, creating the Paid Medical and Family Leave Initiative to provide Colorado families 12 weeks of paid leave. Some families are allowed up to 16 weeks of leave in certain cases. To date, the FAMLI program has paid out an average weekly benefit payment of $915 to cover 155,000 Coloradans for medical leave, parental leave, caretaking, safe leave for survivors of domestic violence and military family leave. The average leave duration is over 51 days.
A 2019 report found that parent presence in the NICU decreases stress and pain, strengthens parent-child attachment and improves brain development.