SENATE BILL 23-232
BY SENATOR(S) Zenzinger and Kirkmeyer, Bridges, Buckner, Coleman,
Cutter, Exum, Ginal, Gonzales, Hansen, Jaquez Lewis, Kolker, Moreno,
Priola, Sullivan;
also REPRESENTATIVE(S) Bird and Sirota, Bockenfeld, Jodeh, Kipp,
Lindsay, Michaelson Jenet, Snyder, Woodrow, McCluskie.
C
ONCERNING UNEMPLOYMENT COMPENSATION , AND, IN CONNECTION
THEREWITH
, REDUCING EMPLOYER PREMIUM RATES ; CREATING
SUPPORT SURCHARGE RATES
; AND ADJUSTING THE ALLOCATIONS OF
EMPLOYER PREMIUMS AND SUPPORT SURCHARGE PAYMENTS TO THE
UNEMPLOYMENT COMPENSATION FUND
, THE EMPLOYMENT SUPPORT
FUND
, THE EMPLOYMENT AND TRAINING TECHNOLOGY FUND , AND
THE BENEFIT RECOVERY FUND TO COMPLY WITH FEDERAL LAW
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 8-70-103, amend (13)
and (23.5); and add (2.7), (11.5), (12.3), and (24.5) as follows:
8-70-103. Definitions. As used in articles 70 to 82 of this title 8,
unless the context otherwise requires:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (2.7) "BENEFIT RECOVERY FUND" MEANS THE BENEFIT RECOVERY
FUND CREATED IN SECTION
8-73-116 (2).
(11.5) "E
MPLOYMENT AND TRAINING TECHNOLOGY FUND " MEANS
THE EMPLOYMENT AND TRAINING TECHNOLOGY FUND CREATED IN SECTION
8-77-109 (2)(a.9)(II)(A).
(12.3) "E
MPLOYMENT SUPPORT FUND " MEANS THE EMPLOYMENT
SUPPORT FUND CREATED IN SECTION
8-77-109 (1)(b).
(13) "Fund"
OR "UNEMPLOYMENT COMPENSATION FUND " means the
unemployment compensation fund, established in section 8-77-101 (1), to
which all premiums required and from which all benefits under articles 70
to 82 of this title
TITLE 8 and bonds issued under section 8-71-103 (2)(d) are
paid, and from which payments may be made to the Colorado housing and
finance authority under section 29-4-710.7. C.R.S.
(23.5) "Premiums" means the money payments to the unemployment
compensation fund,
AND THE PAYMENT AM OUNT INCLUDED IN THE
CALCULATION OF AN EMPLOYER
'S EXPERIENCE RATING, required by articles
70 to 82 of this title
TITLE 8.
(24.5) "S
UPPORT SURCHARGE RATE " MEANS AN EMPLOYER'S RATE
THAT IS USED TO CALCULATE THE MONEY PAYMENTS OWED TO THE
EMPLOYMENT SUPPORT FUND
, THE BENEFIT RECOVERY FUND , AND THE
EMPLOYMENT AND TRAINING TECHNOLOGY FUND
, CALCULATED IN
ACCORDANCE WITH SECTION
8-76-102.5 (3)(a)(IV) USING THE SAME
METHODOLOGY AS IS USED TO CALCULATE AN EMPLOYER
'S PERCENT OF
EXCESS IN ACCORDANCE WITH SECTION
8-76-102.5 (3)(a)(II)(A).
SECTION 2. In Colorado Revised Statutes, 8-76-102.5, amend
(3)(h) introductory portion and (3)(h)(I); and repeal and reenact, with
amendments, (3)(a) as follows:
8-76-102.5. Rates effective upon fund solvency - repeal of prior
rates - solvency surcharge - definitions - repeal. (3) (a) (I) E
ACH
EMPLOYER
'S RATE FOR THE TWELVE MONTHS COMMENCING JANUARY 1 OF
ANY CALENDAR YEAR IS D ETERMINED ON THE BASIS OF THE EMPLOYER
'S
RECORD PRIOR TO THE COMPUTATION DATE FOR THE YEAR
. THE
COMPUTATION DATE FOR ANY CALENDAR YEAR IS
JULY 1 OF THE YEAR
PAGE 2-SENATE BILL 23-232 PRECEDING THE CALENDAR YEAR FOR WHICH THE RATE IS COMPUTED .
(II) A
S USED IN THE STANDARD PREMIUM RATE SCHEDULE IN
SUBSECTION
(3)(a)(III)(B) OF THIS SECTION AND THE SUPPORT SURCHARGE
RATE SCHEDULE IN SUBSECTION
(3)(a)(IV) OF THIS SECTION:
(A) "P
ERCENT OF EXCESS" MEANS THE PERCENTAGE RESULTING
FROM DIVIDING THE EXCESS OF PREMIUMS PAID OVER BENEFITS CHARGED BY
THE AVERAGE CHARGEABLE PAYROLL
, COMPUTED TO THE NEAREST ONE
PERCENT
.
(B) "R
ESERVE RATIO" MEANS THE FUND BALANCE ON ANY JUNE 30
AS A PROPORTION OF TOTAL WAGES REPORTED BY EXPERIENCE -RATED
EMPLOYERS
.
(C) "T
O" IN THE COLUMN HEADINGS, WHICH MAKE REFERENCE TO
FUND BALANCES
(RESOURCES AVAILABLE FOR BENEFITS ), MEANS "NOT
INCLUDING
".
(III) (A) T
HE TOTAL OF AN EMPLOYER 'S PREMIUMS PAID,
DESIGNATED, AND DEPOSITED INTO THE UNEMPLOYMENT COMPENSATION
FUND ON THE EMPLOYER
'S OWN BEHALF ON OR BEFORE THIRTY -ONE DAYS
IMMEDIATELY AFTER THE COMPUTATION DATE AND THE TOTAL BENEFITS
THAT WERE CHARGEABLE TO THE EMPLOYER
'S ACCOUNT AND WERE PAID
BEFORE THE COMPUTATION DATE
, WITH RESPECT TO WEEKS , OR ANY
ESTABLISHED PAYROLL PERIOD OF UNEMPLOYMENT
, BEGINNING BEFORE THE
COMPUTATION DATE
, IS USED TO COMPUTE THE EMPLOYER 'S PREMIUM FOR
THE FOLLOWING CALENDAR YEAR
.
(B) T
HE FOLLOWING STANDARD PREMIUM RATE SCHEDULE REFLECTS
THE RATES APPLICABLE IN COMPUTING AN EMPLOYER
'S PREMIUM:
PAGE 3-SENATE BILL 23-232 Standard Premium Rate Schedule
Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio
0.014 or Greater 0.011 to 0.014 0.008 to 0.011 0.006 to 0.008 0.004 to 0.006 0.000 to 0.004 0.000 to Deficit
Eligible
Employers
Percent of Excess
+20 or more 0.0046 0.00500.0052 0.0056 0.0059 0.0064 0.0068
+18 to +19 0.0051 0.0056 0.0058 0.0062 0.0066 0.0070 0.0074
+16 to +17 0.0052 0.0057 0.0059 0.0063 0.0067 0.0071 0.0076
+14 to +15 0.0055 0.0060 0.0062 0.0068 0.0072 0.0077 0.0082
+12 to +13 0.0059 0.0065 0.0068 0.0074 0.0079 0.0086 0.0091
+10 to +11 0.0068 0.0075 0.0078 0.0085 0.0092 0.0099 0.0106
+8 to +9 0.0086 0.0095 0.0099 0.0108 0.0117 0.0126 0.0135
+6 to +7 0.0104 0.0116 0.0122 0.0133 0.0144 0.0156 0.0167
+4 to +5 0.0124 0.0139 0.0145 0.0159 0.0173 0.0186 0.0201
+2 to +3 0.0174 0.0193 0.0203 0.0222 0.0242 0.0262 0.0282
+0 to +1 0.0244 0.0272 0.0285 0.0313 0.0341 0.0369 0.0397
Unrated 0.0153 0.0153 0.0153 0.0153 0.0153 0.0153 0.0153
-0 to -1 0.0311 0.0347 0.0365 0.0402 0.0438 0.0474 0.0511
-2 to -3 0.0331 0.0371 0.0390 0.0428 0.0467 0.0506 0.0545
-4 to -5 0.0352 0.0393 0.0414 0.0455 0.0497 0.0538 0.0580
-6 to -7 0.0373 0.0416 0.0438 0.0482 0.0526 0.0570 0.0614
-8 to -9 0.0392 0.0439 0.0463 0.0509 0.0555 0.0601 0.0648
-10 to -11 0.0413 0.0462 0.0486 0.0536 0.0584 0.0633 0.0682
-12 to -13 0.0433 0.0485 0.0510 0.0562 0.0613 0.0664 0.0716
-14 to -15 0.0454 0.0508 0.0535 0.0589 0.0643 0.0697 0.0751
-16 to -17 0.0474 0.0530 0.0559 0.0615 0.0671 0.0728 0.0785
-18 to -19 0.0494 0.0554 0.0583 0.0642 0.0701 0.0760 0.0819
-20 to -21 0.0515 0.0576 0.0607 0.0669 0.0730 0.0791 0.0853
-22 to -23 0.0535 0.0599 0.0631 0.0695 0.0759 0.0823 0.0887
-24 to -25 0.0555 0.0621 0.0654 0.0721 0.0788 0.0854 0.0921
More than -25 0.0565 0.0633 0.0666 0.0734 0.0801 0.0868 0.0935
PAGE 4-SENATE BILL 23-232 (IV) THE SUPPORT SURCHARGE RATE , WHICH IS THE RATE
DEDICATED TO EMPLOYER SUPPORT SURCHARGE PAYMENTS DEPOSITED
INTO THE EMPLOYMENT SUPPORT FUND
, THE BENEFIT RECOVERY FUND ,
AND THE EMPLOYMENT AND TRAINING TECHNOLOGY FUND , IS
CALCULATED USING THE FOLLOWING SUPPORT SURCHARGE RATE
SCHEDULE
:
PAGE 5-SENATE BILL 23-232 -5- Support Surcharge Rate Schedule
Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio Reserve Ratio
0.014 or Greater 0.011 to 0.014 0.008 to 0.011 0.006 to 0.008 0.004 to 0.006 0.000 to 0.004 0.000 to Deficit
Eligible
Employers
Percent of Excess
+20 or more 0.0005 0.00060.0006 0.0006 0.0007 0.0007 0.0007
+18 to +19 0.0006 0.0006 0.0006 0.0007 0.0007 0.0008 0.0008
+16 to +17 0.0006 0.0006 0.0006 0.0007 0.0007 0.0008 0.0008
+14 to +15 0.0006 0.0007 0.0007 0.0007 0.0008 0.0009 0.0009
+12 to +13 0.0007 0.0007 0.0007 0.0008 0.0009 0.0009 0.0010
+10 to +11 0.0007 0.0008 0.0009 0.0009 0.0010 0.0011 0.0012
+8 to +9 0.0009 0.0010 0.0011 0.0012 0.0013 0.0014 0.0015
+6 to +7 0.0012 0.0013 0.0013 0.0015 0.0016 0.0017 0.0019
+4 to +5 0.0014 0.0015 0.0016 0.0018 0.0019 0.0021 0.0022
+2 to +3 0.0019 0.0021 0.0022 0.0025 0.0027 0.0029 0.0031
+0 to +1 0.0027 0.0030 0.0032 0.0035 0.0038 0.0041 0.0044
Unrated 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017 0.0017
-0 to -1 0.0035 0.0039 0.0041 0.0045 0.0049 0.0053 0.0057
-2 to -3 0.0037 0.0041 0.0043 0.0048 0.0052 0.0056 0.0061
-4 to -5 0.0039 0.0044 0.0046 0.0051 0.0055 0.0060 0.0064
-6 to -7 0.0041 0.0046 0.0049 0.0053 0.0058 0.0063 0.0068
-8 to -9 0.0044 0.0049 0.0051 0.0056 0.0062 0.0067 0.0072
-10 to -11 0.0046 0.0051 0.0054 0.0059 0.0065 0.0070 0.0076
-12 to -13 0.0048 0.0054 0.0057 0.0062 0.0068 0.0074 0.0080
-14 to -15 0.0050 0.0056 0.0059 0.0065 0.0071 0.0077 0.0083
-16 to -17 0.0053 0.0059 0.0062 0.0068 0.0075 0.0081 0.0087
-18 to -19 0.0055 0.0061 0.0065 0.0071 0.0078 0.0084 0.0091
-20 to -21 0.0057 0.0064 0.0067 0.0074 0.0081 0.0088 0.0095
-22 to -23 0.0059 0.0067 0.0070 0.0077 0.0084 0.0091 0.0099
-24 to -25 0.0062 0.0069 0.0073 0.0080 0.0087 0.0095 0.0102
More than -25 0.0063 0.0070 0.0074 0.0081 0.0089 0.0096 0.0104
PAGE 6-SENATE BILL 23-232-6- (h) No later than January 1, 2013, The division shall develop AND
MAINTAIN
an online computer application that allows employers to review
and manage account information. The online computer application shall
include at least the following:
(I) A method for employers to file premium
WAGE reports and
make premium payments;
SECTION 3. In Colorado Revised Statutes, 8-77-103, amend
(3)(c) as follows:
8-77-103. Advances from federal unemployment trust fund -
Title XII repayment fund. (3) (c) Money in the fund is continuously
appropriated to the division to repay federal advances received pursuant
to this section,
ANY COSTS ASSOCIATED WITH BONDS OR NOTES ISSUED
PURSUANT TO SECTION
8-71-103 OR 8-77-103.5, and any interest owing
on such
FEDERAL advances, BONDS, OR NOTES, AS PERMITTED BY THE
FEDERAL
"AMERICAN RESCUE PLAN ACT OF 2021", PUB.L. 117-2, AS THE
ACT MAY BE SUBSEQUENTLY AMENDED
, AND BY ANY OTHER APPLICABLE
FEDERAL LAW
.
SECTION 4. In Colorado Revised Statutes, 8-77-109, amend
(1)(b), (2)(a), and (2)(a.9)(II)(A); repeal (5); and add (6) as follows:
8-77-109. Employment support fund - employment and
training technology fund - created - uses - repeal. (1) (b) There is
hereby established the employment support fund. This fund consists of
the first 0.00145
59.46 PERCENT OF THE SUPPORT SURCHARGE RATE
assessed ANNUALLY as part of each employer's premium under section
8-76-102.5 (3)(a) SUPPORT SURCHARGE RATE PAYMENTS PAID AND
DEDICATED TO THE EMPLOYMENT SUPPORT FUND IN ACCORDANCE WITH
SECTION
8-76-102.5 (3)(a)(IV).
(2) (a) (I) (A) E
XCEPT AS SET FORTH IN SUBSECTION (2)(a)(II) OF
THIS SECTION AND EXCEPT AS PROVIDED IN SUBSECTION
(2)(a)(I)(B) OF
THIS SECTION
, the state treasurer shall credit the money collected pursuant
to this section to the employment support fund created in subsection (1)
of this section. except that,(B) To the extent allowed by the United States department of
labor employment training administration, the state treasurer shall credit
.00035
18.92 PERCENT of each employer's premium under section
PAGE 7-SENATE BILL 23-232 -7- 8-76-102.5 (3)(a) ANNUAL SUPPORT SURCHARGE RATE DETERMINED
PURSUANT TO SECTION
8-76-102.5 (3)(a)(IV) to the benefit recovery fund,
created in section 8-73-116,
up to a maximum of fifteen million dollars
each year.
(II) (A) At the end of the state fiscal year 2023-24 STATE FISCAL
YEAR
, THE STATE TREASURER SHALL CREDIT any money in theemployment support fund COLLECTED PURSUANT TO THIS SECTION that
exceeds the total of a .0011 assessed as part of each employer's premium
plus seventeen million WOULD CAUSE THE BALANCE IN THE EMPLOYMENT
SUPPORT FUND TO EXCEED THIRTY
-TWO MILLION FIVE HUNDRED
THOUSAND
dollars shall be transferred by the state treasurer
to the
unemployment compensation fund. created in section 8-77-101 (1).
(B) AT THE END OF THE 2024-25 STATE FISCAL YEAR AND EACH
STATE FISCAL YEAR THEREAFTER
, THE LIMIT ON THE AMOUNT OF MONEY
IN THE EMPLOYMENT SUPPORT FUND SPECIFIED IN SUBSECTION
(2)(a)(II)(A) OF THIS SECTION SHALL BE ADJUSTED BASED ON THE CHANGE
IN AVERAGE WEEKLY EARNINGS
, AS DETERMINED IN ACCORDANCE WITH
SECTION
8-73-102 (1), IN THE IMMEDIATELY PRECEDING STATE FISCAL
YEAR
, AND THE STATE TREASURER SHALL CREDIT ANY AMOUNT THAT
EXCEEDS THE AMOUNT SPECIFIED IN SUBSECTION
(2)(a)(II)(A) OF THIS
SECTION
, AS ADJUSTED PURSUANT TO THIS SUBSECTION (2)(a)(II)(B), TO
THE UNEMPLOYMENT COMPENSATION FUND
.
(C) A
NY AMOUNT CREDITED TO THE UNEMPLOYMENT
COMPENSATION FUND PURSUANT TO THIS SUBSECTION
(2)(a)(II) IS NOT
INCLUDED IN THE CALCULATION OF AN EMPLOYER
'S ANNUAL EXPERIENCE
RATE
.
(III) The general assembly shall appropriate the money in the
employment support fund annually to the department of labor and
employment:
(I)
(A) To be used to offset funding deficits for program
administration, including information technology initiatives, under the
provisions of articles 70 to 83 of this title
TITLE 8 and to further support
programs to strengthen unemployment fund solvency; and
(II) (A) (B) To fund labor standards, labor relations, and the
Colorado works grievance procedure under the provisions of articles 1 to
6, 9, 10, 12, and 13 of this title
TITLE 8 and section 26-2-716 (3)(b).
PAGE 8-SENATE BILL 23-232 -8- C.R.S.
(B) (Deleted by amendment, L. 2003, p. 2181, ยง 1, effective June
3, 2003.)
(C) Repealed.
(a.9) (II) (A) The employment and training technology fund,
referred to in this subsection (2)(a.9) as the "fund", is created in the state
treasury. Notwithstanding any provision of this subsection (2) to the
contrary, on and after April 27, 2021, 0.0004 assessed against
THE STATE
TREASURER SHALL CREDIT
21.62 PERCENT OF each employer's premiumunder section 8-76-102.5 (3)(a) shall be credited ANNUAL SUPPORT
SURCHARGE RATE UNDER SECTION
8-76-102.5 (3)(a)(IV) to the
employment and training technology fund. On and after April 27, 2021,
and on or before June 30, 2023, if cumulative revenue to the employment
and training technology fund equals thirty-one million dollars, less any
money transferred to the unemployment compensation fund, no additional
money shall be credited to the employment and training technology fund
but instead shall be allocated to the unemployment compensation fund.
On and after July 1, 2023, any amount collected in a fiscal year in excess
of seven million dollars under this subsection (2)(a.9)(II) shall be credited
TO THE FUND AND THEN TRANSFERRED to the unemployment
compensation fund. Money in the fund shall be used for employment and
training automation initiatives established by the director of the division.
Money in the fund is subject to annual appropriation by the general
assembly for the purposes of this subsection (2)(a.9) and shall not revert
to the general fund or any other fund at the end of any fiscal year. The
money in the fund is exempt from section 24-75-402. At any time, the
money in the employment and training technology fund may be
appropriated by the general assembly to the unemployment compensation
fund or allocated to the unemployment compensation fund at the
discretion of the executive director of the department of labor and
employment.
(5) The department shall conduct a study with the United States
department of labor and any relevant stakeholders to evaluate the
employment support fund and determine what steps may be necessary to
ensure the fund conforms with federal law. The department shall report
the findings of the study to the house committee on business affairs and
labor and the senate committee on business, labor, and technology by
December 15, 2022.
PAGE 9-SENATE BILL 23-232 -9- (6) (a) THE PORTION OF EACH EMPLOYER 'S SUPPORT SURCHARGE
RATE THAT THE EMPLOYER PAID AND THAT IS DEDICATED TO THE
EMPLOYMENT SUPPORT FUND PURSUANT TO SECTION
8-76-102.5
(3)(a)(IV),
TO THE BENEFIT RECOVERY FUND PURSUANT TO SECTION
8-73-116, AND TO THE EMPLOYMENT AND TRAINING TECHNOLOGY FUND
PURSUANT TO SUBSECTION
(2)(a.9)(II)(A) OF THIS SECTION:
(I) I
S NOT INCLUDED IN THE CALCULATION OF THE EMPLOYER 'S
ANNUAL EXPERIENCE RATE AND CREDIT UNDER THE
"FEDERAL
UNEMPLOYMENT TAX ACT", 26 U.S.C. SEC. 3301 ET SEQ.; AND
(II) MUST BE IMMEDIATELY DEPOSITED , UPON PAYMENT, INTO A
SEPARATE ACCOUNT
, UNRELATED TO THE UNEMPLOYMENT COMPENSATION
FUND
.
(b) A
NY MONEY TRANSFERRED FROM THE EMPLOYMENT SUPPORT
FUND
, THE BENEFIT RECOVERY FUND, OR THE EMPLOYMENT AND TRAINING
TECHNOLOGY FUND TO THE UNEMPLOYMENT COMPENSATION FUND
PURSUANT TO THIS SECTION IS NOT USED IN CALCULATING THE
EMPLOYER
'S EXPERIENCE RATE OR PERCENT OF EXCESS FOR THE
STANDARD PREMIUM RATE SCHEDULE
.
SECTION 5. In Colorado Revised Statutes, 8-79-104, amend
(1)(a)(II)(A) and (1)(d) as follows:
8-79-104. Failure to file true report - penalty. (1) (a) (II) (A) It
is the responsibility of each employer subject to articles 70 to 82 of this
title
TITLE 8 to file true and accurate reports, whether or not premiums or
surcharges are due, and to pay all premiums and surcharges when due.
Whenever an employer fails to furnish premium
WAGE reports required
by the division by the due date, the division shall assess against the
employer a penalty of fifty dollars for each occurrence; except that an
"employer newly subject" as defined by section 8-76-102.5 (4) shall be
assessed a penalty of ten dollars for each occurrence during the first four
quarters of coverage. Each subsequent quarter in which the employer
continues the failure to file the
WAGE reports shall be considered a
separate occurrence. Penalties collected by the division pursuant to this
sub-subparagraph (A)
SUBSECTION (1)(a)(II)(A) shall be paid into the
unemployment revenue fund.
(d) Any penalty imposed pursuant to this subsection (1) shall be
waived if good cause is shown for failing to pay the premiums or
PAGE 10-SENATE BILL 23-232 -10- surcharges or to make premium WAGE reports, as prescribed by rule of the
division. Penalties under this subsection (1) that are unpaid on the date on
which they are due shall bear interest at the same rate and in the same
manner as unpaid premiums and surcharges under articles 70 to 82 of this
title
TITLE 8. The provisions of section 13-80-108 (9) C.R.S., shall be
used for determining when an offense is committed for the purposes of
this subsection (1).
SECTION 6. Safety clause. The general assembly hereby finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Steve Fenberg
Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 11-SENATE BILL 23-232 -11-