JOINT RELEASE: Democrats Save Coloradans Money with New Laws to Crack Down on Price Gouging, Expand Paid Family Leave
DENVER, CO - On August 6, legislation goes into effect to bring down costs for Coloradans by cracking down on corporate price gouging for everyday necessities like groceries and toiletries. Another law also goes into effect to expand the paid Family and Medical Leave Insurance (FAMLI) program for families with newborns receiving inpatient care in the NICU.
“Price gouging hurts hardworking Coloradans and mom-and-pop businesses, which is why I sponsored this law that will hold bad actors accountable,” said Rep. Yara Zokaie, D-Fort Collins, sponsor of HB25-1010 and SB25-144. “No one should have to choose between putting food on the table and paying rent, and as a mom to three young children, I have personally felt the pressure facing so many of our Colorado families. With this law going into effect today, Colorado Democrats are standing up against corporate price gouging to reduce the cost of everyday necessities.”
“This law is about putting public welfare and consumer protection ahead of corporate greed,” said Senator Mike Weissman, D-Aurora, sponsor of HB25-1010. “Time and time again, we have seen bad actors use disasters as an excuse to raise prices on necessities and line their own pockets. It’s time for us to step in and ensure that Colorado families can purchase the things they need – like groceries and diapers – at prices they can afford during times of crisis.”
“With corporate bad actors driving up prices on groceries and everyday necessities, Colorado Democrats are taking action to stop price gouging and save Coloradans money,” said Rep. Kyle Brown, D-Louisville, sponsor of HB25-1010. “While the COVID-19 pandemic, inflation and supply chain issues have impacted prices, bad-acting corporations have taken advantage of these factors to jack up prices just to increase their profits. While Republicans in the legislature sided with wealthy corporations, our majority passed this law to help tackle the rising cost of living, put an end to corporate price gouging and make Colorado a more affordable place to live for all.”
HB25-1010 prohibits price gouging of goods or services during a declared emergency. In this law, price gouging is defined as a price increase of 10 percent or above the average cost of the product or good that is not attributable to seasonal pricing. Necessities include goods and services essential for the health, safety, and welfare of the public, like groceries and toiletries.
A 2024 Federal Trade Commission report stated that the three largest grocers accelerated and distorted the negative effects associated with supply chain disruption due to the COVID-19 pandemic.
Colorado Democrats passed a 2024 law, also sponsored by Rep. Brown and Sen. Weissman, to prevent price gouging on rent after a natural disaster. The law was inspired after rents skyrocketed for Coloradans who lost their homes after the Marshall Fire, pricing vulnerable Coloradans out of their communities. Another law created the Prescription Drug Affordability Board to limit price gouging of life-saving prescription drugs, helping lower out-of-pocket prescription drug costs.
SB25-144 allows 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.
“When I was forced to juggle work to pay the bills and spend time with my newborn, who was receiving life-saving care, I knew we needed to reform Colorado’s paid family leave,” continued Zokaie. “Every parent should be able to be fully present with their child during life’s most difficult moments. By expanding FAMLI leave by up to twelve additional weeks, we ensure Coloradans no longer have to choose between a paycheck and their family."
“I know firsthand how terrifying and consuming it can be for a parent of a newborn in intensive care,” said Sen. Jeff Bridges, D-Arapahoe County, sponsor of SB25-144. “It is so important for a child's development to be with their parents in those first few months of life. We need to make it easier for parents with kids in the NICU to have access to that quality time, which is why we’re expanding FAMLI in a way that doesn’t raise premiums for employees or employers..”
“This law will support families so they have the time they need to prioritize their newborns who need extra care to ensure they have a long, healthy life,” said Rep. Jenny Willford, D-Northglenn, sponsor of SB25-144. “As a NICU baby myself, I want to ensure that families have the opportunity to be present with their newborn, something that is proven to have positive impacts on child development. By expanding the voter-approved FAMLI program, we’re being responsive to the needs of Colorado parents while also supporting Colorado businesses.”
“We know that children are more likely to come home faster from the NICU if their parents can be with them,” said Sen. Faith Winter, D-Broomfield, sponsor of SB25-144. “Because of the good work and the existing resources of the FAMLI Insurance program, expanding benefits for additional time allows the state to provide additional help to families going through incredibly taxing times.”
The law also modifies 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. Under the new premium amounts, the law will save Colorado businesses and employees nearly $17 million in FY2025-26 and over $35 million in FY2026-27.
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.