Unemployment Compensation and Revenue Funds

C.R.S. tit. 8, art. 77
in effect

C.R.S. § 8-77-101 Unemployment compensation fund - state treasurer custodian

8-77-101. Unemployment compensation fund - state treasurer custodian. (1) (a) There is hereby established the unemployment compensation fund, which is a special fund administered by the division exclusively for the purposes of articles 70 to 82 of this title. The state treasurer is the custodian of the fund and is liable under his or her official bond for the faithful performance of all his or her duties in connection with the fund. The state treasurer shall establish and maintain within the fund the accounts specified in this article and such other accounts as may be necessary to reflect the administration of the fund by the division. Notwithstanding any other law, in lieu of or in addition to the assessment described in section 29-4-710.7, C.R.S., the division may pay amounts necessary and appropriate from the unemployment compensation fund to the Colorado housing and finance authority for the repayment of the principal of bonds issued under section 29-4-710.7, C.R.S., and may apply amounts necessary and appropriate from the unemployment compensation fund to the repayment of principal of bonds issued under section 8-71-103 (2)(d). (b) The unrestricted year-end balance of the unemployment compensation fund, created pursuant to paragraph (a) of this subsection (1), for the 1991-92 fiscal year shall constitute a reserve, as defined in section 24-77-102 (12), C.R.S., and, for purposes of section 24-77-103, C.R.S.: (I) Any moneys credited to the unemployment compensation fund in any subsequent fiscal year shall be included in state fiscal year spending, as defined in section 24-77-102 (17), C.R.S., for such fiscal year; and (II) Any transfers or expenditures from the unemployment compensation fund in any subsequent fiscal year shall not be included in state fiscal year spending, as defined in section 24-77-102 (17), C.R.S., for such fiscal year. (2) The state treasurer, as treasurer and custodian of the unemployment compensation fund, is hereby authorized and directed to cancel of record and refuse to honor warrants or checks issued against any of the accounts established with the unemployment compensation fund which have not been presented for payment within one calendar year from the date of issue.

C.R.S. § 8-77-101.5 CARES act funds - administration - transfer - unemployment compensation fund - legislative declaration

8-77-101.5. CARES act funds - administration - transfer - unemployment compensation fund - legislative declaration. (1) The general assembly finds that: (a) On March 27, 2020, the federal government enacted the "Coronavirus Aid, Relief, and Economic Security Act" ("CARES Act"), Pub.L. 116-136, pursuant to which Colorado received approximately one billion six hundred seventy-four million dollars from the federal coronavirus relief fund to use for necessary expenditures incurred due to the current COVID-19 public health emergency; (b) The public health emergency caused by COVID-19 caused a historic increase in unemployment in the state and this has caused a dramatic increase in the number of claims for benefits from the unemployment compensation fund created in section 8-77-101; (c) As a result, it is estimated that the unemployment compensation fund, created in section 8-77-101, will have a deficit of approximately two billion dollars by the end of fiscal year 2020-21; (d) These costs will not be reimbursed by the federal government, nor are they accounted for in the budget approved as of March 27, 2020; (e) The United States department of treasury has stated that payments to the state unemployment compensation fund, created in section 8-77-101, are an allowable use of the money from the federal coronavirus relief fund, under section 42 U.S.C. sec. 801 (d); and (f) The transfer of money from the "CARES Act" to the state unemployment compensation fund, created in section 8-77-101, is a necessary expenditure incurred due to the public health emergency with respect to COVID-19. (2) If, as of December 30, 2020, there is any unexpended money that the state received through section 42 U.S.C. sec. 801 (d) of the "CARES Act", then just prior to the close of business on December 30, 2020, the state treasurer shall transfer the unexpended amount of federal funds to the unemployment compensation fund created in section 8-77-101.

C.R.S. § 8-77-102 Collection and transmittal of receipts - clearing account - refunds - transfers

8-77-102. Collection and transmittal of receipts - clearing account - refunds - transfers. (1) The division or its agent shall collect or receive all premiums, surcharges, payments in lieu of premiums, fines, and penalties provided for in articles 70 to 82 of this title, all interest on delinquent premiums and surcharges provided for in section 8-79-101, and all other moneys accruing to the fund from the federal government or any other source whatsoever and shall transmit all such moneys to the state treasurer, who shall cause the same to be deposited in a clearing account in his or her name in a state or national bank doing business in this state. (2) Repealed. (3) As instructed by the division, the state treasurer shall transfer from the clearing account to the employment security administration fund all amounts received pursuant to the provisions of section 8-72-110 (5). All interest collected by the division pursuant to the provisions of section 8-79-101, all penalties collected by the division pursuant to sections 8-79-104 (1)(a) and (1)(c) and 8-81-101 (4)(a)(II), and all investigative costs collected by the division pursuant to section 8-81-101 (4)(a)(III) shall be paid into the unemployment revenue fund. (4) All amounts remaining in the clearing account after payment of refunds and the transfers provided for in subsection (3) of this section shall be paid to the secretary of the treasury of the United States for credit to the account of the state of Colorado in the federal unemployment trust fund established and maintained pursuant to section 904 of the federal "Social Security Act", as amended.

C.R.S. § 8-77-103 Advances from federal unemployment trust fund - Title XII repayment fund

8-77-103. Advances from federal unemployment trust fund - Title XII repayment fund. (1) The division may apply for advances to the state of Colorado from its account in the federal unemployment trust fund and accept responsibility for repayment of advances in accordance with the conditions specified in Title XII of the "Social Security Act", as amended, in order to secure to this state the advantages available under the federal act. (2) (a) Advances from the federal unemployment trust fund which are interest-bearing shall have such interest cost together with all associated administrative costs assessed against each employer subject to experience rating. This interest assessment shall not apply to the covered employers of state and local government nor to those nonprofit organizations that are reimbursable. This interest assessment shall not apply to the political subdivisions electing the special rate. (a.1) The interest cost assessment provided for in paragraph (a) of this subsection (2) shall not apply to any employer whose benefit-charge account balance is zero or to any employer with a positive excess of plus seven percent or more. (b) Using the most recently available data to the division, the total covered wages of all employers subject to the interest assessment, as found for the calendar quarter nearest to the quarter in which a trust fund deficit occurred, shall be summed. This sum shall be divided into the amount of interest due on the advance. The percent resulting from this calculation shall contain four significant figures. The percent shall be applied by the employer to the total covered wages reported on the next contribution report received or that contribution report indicated in the notification of the percent sent to the employer by the division. The amount resulting shall be submitted in the same manner as normal contributions, but as a separate payment, to the division. Each interest-bearing advance may be treated separately. (c) The amounts received as a result of paragraph (b) of this subsection (2) shall be segregated and collected in the federal advance interest repayment fund. (3) (a) The Title XII repayment fund, referred to in this subsection (3) as the "fund", is hereby created in the state treasury. The fund consists of money transferred by the state treasurer pursuant to section 24-75-227 (3.7) and any other money that the general assembly may appropriate or transfer to the fund. (b) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. (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 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. (d) The repayment of federal advances, and interest on such advances, is an allowable use of the money received by the state under the federal "American Rescue Plan Act of 2021", Pub.L. 117-2, as specified in 31 CFR 35.6 (b)(3)(ii)(A)(10)(i) and 31 CFR 35.6 (b)(3)(ii)(A)(10)(ii). (e) The division shall comply with the compliance, reporting, record-keeping, and program evaluation requirements established by the office of state planning and budgeting and the state controller in accordance with section 24-75-226 (5).

C.R.S. § 8-77-103.5 Issuance of unemployment revenue bonds and notes - unemployment bond repayment account - creation

8-77-103.5. Issuance of unemployment revenue bonds and notes - unemployment bond repayment account - creation. (1) The executive director of the department of labor and employment is authorized to request the state treasurer to act as advisor to the division. The division may also request the Colorado housing and finance authority act as issuing manager, to issue such bonds and notes as are necessary to maintain adequate balances in the unemployment compensation fund or to repay money advanced to the state from the federal unemployment trust fund, or both. Such requests shall be made in accordance with the provisions of section 24-36-121 or 29-4-710.7. (2) There is hereby created the unemployment bond repayment account, which shall be credited with bond assessments for nonprincipal-related bond costs collected on behalf of the division under section 24-36-121 or the Colorado housing and finance authority under section 29-4-710.7 or by the division under section 8-71-103. After the division's costs have been deducted from the bond repayment account, money in the fund shall be paid to the account or accounts maintained by the state treasurer under section 24-36-121 or the Colorado housing and finance authority under section 29-4-710.7 or by the division with respect to bonds issued under section 8-71-103.

C.R.S. § 8-77-104 Benefit account - requisitions - payment of benefits

8-77-104. Benefit account - requisitions - payment of benefits. (1) The benefit account shall consist of moneys requisitioned by the division from the account of the state of Colorado in the federal unemployment trust fund. Expenditures from the benefit account shall be made by the division solely for payment of benefits provided in articles 70 to 82 of this title, in accordance with regulations prescribed by the director of the division. Such expenditures shall not be subject to any provisions of law requiring specific appropriations for payment thereof. (2) From time to time the division shall requisition from such account such amounts as it deems necessary to provide for payment of benefits for a reasonable future period of time. Upon receipt of such requisitioned amounts, the state treasurer shall cause the same to be deposited in an account in the name of the division in some state or national bank doing business in this state. (3) The division is authorized to make all lawful benefit payments by checks drawn against said bank account. The state treasurer shall have no responsibility whatsoever with respect to such benefit payments, nor shall he be responsible for any amounts requisitioned as provided in subsection (2) of this section other than to deposit the same in said bank account. (4) Any unexpended balance remaining in the benefit account after the expiration of the period of time for which amounts were requisitioned may be used by the division for payment of benefits during a subsequent period of time, or deducted from the amount of a subsequent requisition, or, at the discretion of the division, redeposited with the secretary of the treasury of the United States for credit to the account of the state of Colorado in the federal unemployment trust fund. (5) Benefits shall be deemed to be due and payable under the provisions of articles 70 to 82 of this title, only to the extent provided for in said articles, and only to the extent that moneys are available in the unemployment compensation fund, and neither the state nor the division shall be liable for payments in excess of the amount of such available moneys.

C.R.S. § 8-77-105 Discontinuance of unemployment trust fund

8-77-105. Discontinuance of unemployment trust fund. The provisions of sections 8-77-101 to 8-77-104, to the extent that they relate to the unemployment trust fund, shall be operative only so long as such unemployment trust fund continues to exist and so long as the secretary of the treasury of the United States of America continues to maintain for this state a separate book account of all funds deposited therein by this state for benefit purposes, together with this state's proportionate share of the earnings of such unemployment trust fund, from which no other state is permitted to make withdrawals. If such unemployment trust fund ceases to exist, or such separate book account is no longer maintained, all moneys, properties, or securities therein belonging to the unemployment compensation fund of this state shall be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release such moneys, properties, or securities in a manner approved by the director of the division in accordance with provisions of articles 70 to 82 of this title. Such moneys shall be invested in readily marketable classes of securities as now provided by law with respect to public moneys of the state. Such investment, at all times, shall be so made that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The treasurer shall dispose of securities or other properties belonging to the unemployment compensation fund only under the direction of the director of the division.

C.R.S. § 8-77-106 Unemployment revenue fund

8-77-106. Unemployment revenue fund. (1) There is hereby created the unemployment revenue fund, to which shall be credited all interest collected by the division on delinquent premiums or surcharges pursuant to the provisions of section 8-79-101, all penalties collected by the division pursuant to sections 8-79-104 (1)(a) and (1)(c) and 8-81-101 (4)(a)(II), all remaining moneys in the federal advance interest repayment fund after all known interest charges and associated administrative costs pursuant to section 8-77-103 have been paid pursuant to section 8-77-108 (3), and all investigative costs collected by the division pursuant to section 8-81-101 (4)(a)(III). (2) All moneys accruing to the unemployment revenue fund in any manner whatsoever shall be maintained in a separate account by the state treasurer and shall be annually appropriated by the general assembly to the division for the purpose of enforcing compliance with the "Colorado Employment Security Act". Moneys in the unemployment revenue fund shall first be used to make refunds of interest erroneously collected under the provisions of section 8-79-101. (3) and (4) Repealed. (5) Prior to the beginning of any fiscal year in which the department requests an allocation diversion from the unemployment revenue fund, the joint budget committee in conjunction with the state auditor shall certify that the department has met the goals and time lines established in the work plans submitted the previous year. No additional money shall be appropriated until all such prior conditions of the work plan are satisfied. (6) Of the moneys appropriated to the department for allocation to the division for administrative services, not less than fifty percent shall be used to fund enforcement activities. None of the remaining moneys shall be allocated to services which compete directly with services available in the private sector. (7) Repealed.

C.R.S. § 8-77-107 Appropriation of administrative costs

8-77-107. Appropriation of administrative costs. (1) Moneys credited to the account of the state of Colorado in the federal unemployment trust fund pursuant to section 903 of the federal "Social Security Act" may be requisitioned only for payment of the costs incurred by the division for administration of the provisions of articles 70 to 82 of this title, and for benefits. Such administrative costs shall be expended only pursuant to specific appropriations made by the general assembly and only if such costs are incurred and requisitions made therefor after enactment of an appropriation act. (2) Any appropriation act enacted shall: (a) Specify the amount of money appropriated and the purpose for which appropriated; and (b) (Deleted by amendment, L. 2003, p. 2047, § 1, effective May 22, 2003.) (c) Limit the amount which may be obligated during any twelve-month period beginning on July 1 and ending on the following June 30 to an amount which does not exceed the amount by which the aggregate of the amounts credited to such unemployment trust fund pursuant to section 903 of the federal "Social Security Act" during the same twelve-month period and the thirty-four preceding twelve-month periods exceeds the aggregate of the amounts paid out for benefits and obligated for administrative costs during such thirty-five twelve-month periods. (3) Amounts credited to the unemployment trust fund pursuant to section 903 of the federal "Social Security Act" which are obligated for payment of administrative costs or paid out for benefits shall be charged against equivalent amounts which were first credited and which are not already so charged; except that no amount obligated for administrative costs during any twelve-month period specified in subsection (2) of this section may be charged against any amount credited during any twelve-month period earlier than the thirty-fourth twelve-month period preceding such period. (4) Moneys appropriated as provided in subsection (2) of this section for payment of administrative costs shall be requisitioned from time to time by the division as required for payment of such costs as incurred, and upon receipt shall be credited to an appropriately designated account to which all payments shall be charged. Any unexpended portion of moneys appropriated for payment of administrative costs shall be returned for credit to the account of the state of Colorado in the federal unemployment trust fund.

C.R.S. § 8-77-108 Federal advance interest repayment fund

8-77-108. Federal advance interest repayment fund. (1) There is hereby created the federal advance interest repayment fund, to which shall be credited all assessments collected by the division on total wages pursuant to the provisions of section 8-77-103 (2). (2) All moneys accruing to the fund in any manner whatsoever shall be maintained in a separate account by the state treasurer; except that all funds in the fund are hereby appropriated to the division for use in repayment of interest due and associated administrative costs pursuant to section 8-77-103. (3) After all known interest charges and associated administrative costs pursuant to section 8-77-103 have been paid, any remaining moneys in the fund may be transferred to the unemployment revenue fund. Interest required to be paid under section 8-77-103 shall not be paid, directly or indirectly, from amounts in the unemployment compensation fund.

C.R.S. § 8-77-109 Employment support fund - employment and training technology fund - created - uses - repeal

8-77-109. Employment support fund - employment and training technology fund - created - uses - repeal. (1) (a) Repealed. (b) There is hereby established the employment support fund. The fund consists of thirty-five percent of the support surcharge rate assessed annually as part of each employer's 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) Except 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. (B) To the extent allowed by the United States department of labor employment and training administration, the state treasurer shall credit nineteen percent of each employer's annual support surcharge rate determined pursuant to section 8-76-102.5 (3)(a)(IV) to the benefit recovery fund, up to a maximum of fifteen million dollars each year. (II) (A) At the end of the 2023-24 state fiscal year and each state fiscal year thereafter, the state treasurer shall credit any money collected pursuant to this section that would cause the balance in the employment support fund to exceed seven million dollars, as adjusted annually for the United States department of labor's bureau of labor statistics consumer price index for Denver-Aurora-Lakewood or its successor index, excluding gifts, grants, or donations, to the employment and training technology fund created in subsection (2)(a.9)(II)(A) of this section. If the employment and training technology fund has reached the maximum allowable balance pursuant to subsection (2)(a.9)(II)(A) of this section, the treasurer shall instead credit the money to the workforce development fund created in section 8-83-107 (4). (B) Repealed. (C) Any 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: (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 8 and to further support programs to strengthen unemployment fund solvency; and (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 8 and section 26-2-716 (3)(b). (a.5) (Deleted by amendment, L. 2003, p. 2181, § 1, effective June 3, 2003.) (a.7) and (a.8) Repealed. (a.9) (I) Repealed. 8 and to further support programs to strengthen unemployment fund solvency; and (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 8 and section 26-2-716 (3)(b). (a.5) (Deleted by amendment, L. 2003, p. 2181, § 1, effective June 3, 2003.) (a.7) and (a.8) Repealed. (a.9) (I) Repealed. (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, the state treasurer shall credit thirty-two percent of each employer's 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 thirteen million two hundred thousand dollars under this subsection (2)(a.9)(II), as adjusted annually for the United States department of labor's bureau of labor statistics consumer price index for Denver-Aurora-Lakewood or its successor index, excluding gifts, grants, or donations, shall be credited to the fund and then credited 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. (B) Repealed. (C) This subsection (2)(a.9) is repealed, effective June 30, 2031. (b) The unexpended and unobligated moneys in the employment support fund shall not revert to the general fund at the end of any fiscal year, and any unobligated amounts remaining in the fund at the end of any fiscal year shall be retained in the employment support fund for purposes of this subsection (2). (c) On and after July 1, 2001, moneys from the statewide indirect cost allocation agreement with the federal government may be used to supplement moneys in the employment support fund, in a manner that is consistent with the provisions of this subsection (2). (d) (Deleted by amendment, L. 2002, p. 207, § 1, effective August 7, 2002.) (3) (Deleted by amendment, L. 99, p. 974, § 2, effective May 28, 1999.) (4) and (5) Repealed. (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 8-77-109 (1)(b), to the benefit recovery fund pursuant to section 8-73-116, to the workforce development fund pursuant to section 8-83-107, and to the employment and training technology fund pursuant to subsection (2)(a.9)(II)(A) of this section: (I) Is 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. , and to the employment and training technology fund pursuant to subsection (2)(a.9)(II)(A) of this section: (I) Is 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) Any money transferred from the employment support fund, the benefit recovery fund, the workforce development 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.

C.R.S. § 8-77-110 Office of future work - study - report

8-77-110. Office of future work - study - report. (Repealed)
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