Employment support fund - unemployment insurance program support fund - created - uses - repeal

8-77-109. Employment support fund - unemployment insurance program support fund - created - uses - repeal. (1) (a) Repealed. (b) There is established the employment support fund. The fund consists of eleven 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) and other money credited to the fund. (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 fifteen 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 2024-25 state fiscal year, and at the end of 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 three million five hundred thousand dollars, as adjusted annually by an amount equal to the change in the average weekly earnings prescribed in section 8-73-102, rounded to the nearest one hundred dollars and excluding any gifts, grants, or donations, to the unemployment compensation fund created in section 8-77-101 (1). (B) Repealed.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. (II) (A) The unemployment insurance program support 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 fifty-four percent of each employer's annual support surcharge rate under section 8-76-102.5 (3)(a)(IV) to the fund. At the end of the 2024-25 state fiscal year, and at the end of each state fiscal year thereafter, the state treasurer shall credit any money collected pursuant to this section that would cause the balance in the fund to exceed twenty-five million dollars, as adjusted annually by an amount equal to the change in the average weekly earnings prescribed in section 8-73-102, rounded to the nearest one hundred dollars and excluding any gifts, grants, or donations, to the unemployment compensation fund. Money in the fund shall be used for administrative costs of the division, including technology and staffing costs, and other costs to support the unemployment insurance program as determined 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 state fiscal year. The money in the fund is exempt from section 24-75-402. At any time, the money in the unemployment insurance program support 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 unemployment insurance program support 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 or credited from the employment support fund, the benefit recovery fund, the workforce development fund, the unemployment insurance program support fund, or support surcharge rate payments 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. Source: L. 90: Entire section added, p. 1766, � 7, effective June 8. L. 92: (3) amended, p. 1796, � 8, effective April 10. L. 96: (1) amended, p. 996, � 2, effective May 23; (4) repealed, p. 1229, � 47, effective August 7. L. 99: (1), (2), and (3) amended, p. 974, � 2, effective May 28. L. 2001: (2) amended, p. 1218, � 1, effective June 5. L. 2002: (2)(a.5) added, p. 151, � 3, effective March 27; (2)(a)(II) and (2)(d) amended, p. 207, � 1, effective August 7. L. 2003: (2)(a.7) added, p. 455, � 5, effective March 5; (2)(b) amended, p. 1540, � 2, effective May 1; (2)(a)(II)(B), (2)(a.5), and (2)(c) amended, p. 2181, � 1, effective June 3. L. 2009: (2)(a.8) added, (SB 09-208), ch. 149, p. 619, � 4, effective April 20; (1) amended and (2)(a.9) added, (SB 09-076), ch. 409, p. 2252, �� 2, 3, effective July 1; (1) and (2)(a.9) amended, (HB 09-1363), ch. 363, p. 1904, �� 25, 26, effective July 1. L. 2011: (1) and (2)(a.9) amended, (HB 11-1288), ch. 212, p. 929, � 14, effective July 1. L. 2012: IP(2)(a) and (2)(a)(I) amended, (HB 12-1120), ch. 27, p. 106, � 18, effective June 1. L. 2012, 1st Ex. Sess.: (1)(a)(II), (1)(b)(I), and (2)(a.9)(I)(B) amended, (HB 12S-1002), ch. 2, p. 2429, � 13, effective June 1. L. 2020: (2)(a)(II)(C) added, (HB 20-1415), ch. 276, p. 1356, � 2, effective July 11; (1)(b) amended and (2)(a.7) and (2)(a.8) repealed, (SB 20-207), ch. 296, p. 1474, � 8, effective July 14. L. 2021: (2)(a.9)(II) amended, (SB 21-218), ch. 62, p. 250, � 1, effective April 27. L. 2022: (1)(b) and IP(2)(a) amended and (5) added, (SB 22-234), ch. 224, p. 1621, � 10, effective May 25. L. 2023: (1)(b), (2)(a), and (2)(a.9)(II)(A) amended, (5) repealed, and (6) added, (SB 23-232), ch. 141, p. 601, � 4, effective May 1. L. 2024: (1)(b), (2)(a)(I)(B), (2)(a)(II)(A), (2)(a.9)(II)(A), IP(6)(a), and (6)(b) amended and (2)(a)(II)(B) repealed, (HB 24-1409), ch. 318, p. 2128, � 3, effective June 15. L. 2025: (1)(b), (2)(a)(I)(B), (2)(a)(II)(A), (2)(a.9)(II)(A), IP(6)(a), and (6)(b) amended, (SB 25-242), ch. 145, p. 546, � 3, effective April 28. Editor's note: (1) Amendments to subsection (1) by Senate Bill 09-076 and House Bill 09-1363 were harmonized. (2) The effective date for amendments to this section by House Bill 12-1120 (chapter 27, Session Laws of Colorado 2012) was changed from August 8, 2012, to June 1, 2012, by House Bill 12S-1002 (First Extraordinary Session, chapter 2, p. 2432, Session Laws of Colorado 2012). (3) Subsections (1)(a)(II) and (2)(a.9)(I)(B) provided for the repeal of subsections (1)(a) and (2)(a.9)(I), effective December 31, 2012. (See L. 2012, p. 2429.) (4) Subsection (2)(a.9)(II)(B) provided for the repeal of subsection (2)(a.9)(II)(B), effective December 31, 2021. (See L. 2021, p. 250.) (5) Subsection (2)(a)(II)(C) provided for the repeal of subsection (2)(a)(II)(C), effective July 1, 2022. (See L. 2020, p. 1356.) Cross references: For the legislative declaration contained in the 1996 act repealing subsection (4), see section 1 of chapter 237, Session Laws of Colorado 1996. For the legislative declaration in HB 24-1409, see section 1 of chapter 318, Session Laws of Colorado 2024.