On Wednesday, March 13, 2019, during a raging “bomb cyclone” of a blizzard that claimed at least one life, Colorado Democrats held a hearing on SB 19-188, the Family and Medical Leave Insurance program. I had planned to attend the hearing and provide testimony, but due to the unsafe conditions, I listened in from home.
The committee chair promised that people who were unable to attend could email in their testimony, which I was happy to do (for the second time – I had already emailed each committee member earlier in the day).
Despite the promise to read emailed testimony into the record, the committee chair instead just read names and stated the person’s opposition or support. I hope that each email becomes part of the official testimony, but in the end, this broken promise doesn’t matter. Passage of SB 19-188 was a foregone conclusion.
During testimony, supporters of this tax-funded government program (including the sponsor) told their stories of personal hardship. While I felt sympathy for them, I was reminded that I, too, have experienced personal times of crisis and financial difficulty.
Five months after my mother died of cancer in 2011, I was laid off from my job. Because I was the personal representative for her estate, I didn’t go back to work right away – I chose to take a couple months off in order to sell some property and manage the estate. I had to rely on my savings and some credit card debt in order to get by. At no time, did I want or expect the government to pay my expenses through forced takings from my fellow citizens. I never thought or felt that my personal plight gave me some sort of claim on other peoples’ property.
During testimony, I heard several other opponents voice their objections to this unconstitutional and immoral bill. The National Federation of Independent Business weighed in, saying:
“Small-business employers are not equipped to have an employee gone for up to 12 weeks and be required to hold the position open, which Senate Bill 188 would force them to do. They will be required to pay 50 percent of each employee’s premium [tax] in to run the state program. And most potentially onerous of all, employees will have the right to file a civil action against an employer and receive reimbursement for all costs associated with the claim, whether the claim has merit or not.
“NFIB members come from every sector of the economy and every industry imaginable with the average member having between 5 and 9 employees. How does a small business cope when a worker is absent for 12 weeks? If the business is technical in nature, it could be nearly impossible to find a temporary employee with the skills to perform the job. The sponsors of Senate bill 188 expect the owner to absorb the loss and pay the worker on top of it.
“Advocates insist that paid leave is good for business because workers will be happier and more productive. Advocates are assuming they know more than business owners, which is pretty silly. When our members, who are real business owners, tell us they can’t afford to offer the benefit, it is because they can’t afford the benefit.”
One of my Twitter friends – @colorado_watch – also pointed out some real problems with this bill that I thought merited a mention.
“SLUSH FUND PART 1. The FAMLI act allows money to be siphoned off to outside political activist groups for “outreach services” (to benefit Colorado Democrats, of course). 8-13.3-306(e). (This is like how ACORN electoral fraud was publicly financed.)
SLUSH FUND PART 2. The FAMLI act allows money to be gifted, granted, or donated to anybody based on the naked claim that it’s to fund or maintain the program. 8-13.3-309(1)(b) This further facilitates its use as a political slush fund.
NO NOTICE. The FAMLI program does NOT require notice to employers of foreseeable leave. It requires such notice at 8-13.3-306(1)(e)(II) but grants benefits anyway at 8-13.3-306(3)(b).
NO DOCUMENTATION REQUIRED. The FAMLI act does not require documentation for claims. It only provides that the division MAY request documentation (not SHALL or MUST). 8-13.3-306(2).
NO EMPLOYMENT REQUIREMENT. The FAMLI act allows paid leave even if you are UNEMPLOYED. 8-13.3-306(e)(1).”
There are some real concerns for small employers here – those who can’t afford to backfill a position or be without the person for several months. There is also a real risk that a person may not come back from a family leave. I myself have seen this several times over my years in the workforce. When that happens the business is out the costs of covering for that person and will subsequently have to hire somebody new.
The proposed Colorado FAMLI program is more generous than any other state’s program. It’s a taxpayer-funded Cadillac of a program compared to the few other states that offer a paid family leave program.
Lastly, let’s deal with some issues of morality and equity.
Businesses exist to create products and/or services that earn a profit for their owners. In the course of that mission, businesses sometimes employ human beings to work for them. In order to attract qualified candidates, they offer competitive wages and non-cash incentives called “benefits” such as health insurance, paid time off, personal leave, retirement help, and others. These benefits are voluntarily provided and represent an agreement freely made between a company and its employees.
It is not moral to force a business provide a certain benefit to its employees. And it is not moral, or fair, to take one person’s earnings through government force to give that money to others. In a moral and just world, I have no claim on other people’s property, and they have no claim on mine.
Politicians, especially Colorado Democrats, view businesses as a giant pile of cash they can plunder to fund their social programs that create dependency, and hopefully, votes in the next election keeping Democrats in power. This FAMLI bill isn’t about families. It’s about economic power and control.
This proposed law flies in face of economic sense and creates perverse incentives for people and the companies that employ them. It creates a giant new government entitlement that will never go away and will only grow in size until it becomes a drag on our economy and a killer of small businesses across the state.
Given the extreme radical agenda the Colorado Democrats are pursuing, I expect SB 19-188 to pass. And when it does, it will be time to challenge it in the courts on the grounds that it is an unconstitutional tax. In a world where Words Mean Things, it is.
The next action on SB 19-188 is a hearing before the Senate Finance Committee at 2:00 pm on Tuesday, March 19. 2019. Please email the senators on the committee to let them know of your opposition.
By Richard D. Turnquist
March 17, 2019
Top Eleven Reasons to Oppose FAMLI
- It is an illegal tax on employees and employers.
- The program will be able to issue debt (revenue bonds), possibly illegally, which will have to be repaid.
- These revenue bonds will carry debt issuance and interest costs which will have to be paid by taxpayers.
- The program will be run by an unelected bureaucrat (“the Director”) with no oversight, no accountability and vast discretionary powers to set the tax rates and levy fines.
- There is no provision to opt out or for an employer to provide a voluntary plan.
- The benefits are too lavish.
- The Colorado FAMLI program puts unreasonable and unrealistic demands on employers, especially small businesses.
- The claimant can still work multiple jobs and collect unemployment simultaneously with receiving FAMLI benefits.
- Employment is not a requirement to receive benefits.
- Citizenship or legal immigration status is not a requirement to receive benefits.
- FAMLI creates a political slush fund that will be a source of funding for other progressive organizations and causes.
Listen to Richard talk about FAMLI with Krista Kafer on 630 KHOW
