(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.
Source: L. 36, 3rd Ex. Sess.: p. 31, � 9. CSA: C. 167A, � 9. L. 41: p. 780, � 9. L. 43: p. 605, � 5. L. 51: p. 811, � 8. CRS 53: � 82-7-1. C.R.S. 1963: � 82-7-1. L. 73: p. 965, � 1. L. 86: Entire section amended, p. 546, � 11, effective May 28. L. 93: (1) amended, p. 1506, � 4, effective June 6. L. 2012: (1)(a) amended, (HB 12-1120), ch. 27, p. 105, � 16, effective June 1. L. 2012, 1st Ex. Sess.: (1)(a) amended, (HB 12S-1002), ch. 2, p. 2428, � 11, effective June 1.
Editor's note: 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).
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.
Source: L. 2020: Entire section added, (SB 20-207), ch. 296, p. 1475, � 10, effective July 14.
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.
Source: L. 36, 3rd Ex. Sess.: p. 31, � 9. L. 37: p. 1262, � 7. CSA: C. 167A, � 9. L. 41: p. 780, � 9. L. 43: p. 605, � 5. L. 51: p. 811, � 8. CRS 53: � 82-7-2. C.R.S. 1963: � 82-7-2. L. 71: p. 943, � 16. L. 73: p. 965, � 2. L. 80: (3) amended, p. 791, � 33, effective June 5. L. 81: (1) amended, p. 503, � 18, effective July 1. L. 85: (2) repealed, p. 376, � 8, effective July 1. L. 2000: (3) amended, p. 814, � 1, effective July 1. L. 2009: (1) amended, (HB 09-1363), ch. 363, p. 1904, � 23, effective July 1.
Cross references: For section 904 of the Social Security Act, see 42 U.S.C. � 1104.
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).
Source: L. 36, 3rd Ex. Sess.: p. 31, � 9. L. 37: p. 1262, � 7. CSA: C. 167A, � 9. L. 41: p. 780, � 9. L. 51: p. 811, � 8. CRS 53: � 82-7-3. C.R.S. 1963: � 82-7-3. L. 73: p. 966, � 3. L. 82: Entire section amended, p. 239, � 9, effective July 1. L. 84: (2)(a) and (2)(a.1) amended, pp. 324, 330, � 4, effective July 1. L. 85: (2)(a) amended, p. 376, � 6, effective July 1; (2)(a) amended, p. 1359, � 5, effective July 1. L. 2012: (1) amended, (HB 12-1120), ch. 27, p. 106, � 17, effective June 1. L. 2022: (3) added, (SB 22-234), ch. 224, p. 1620, � 8, effective May 25. L. 2023: (3)(c) amended, (SB 23-232), ch. 141, p. 601, � 3, effective May 1.
Editor's note: 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.)
Cross references: (1) For the federal advance interest repayment fund, see � 8-77-108.
(2) For Title XII of the Social Security Act, see 42 U.S.C. �� 1321 to 1324.
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.
Source: L. 91: Entire section added, p. 717, � 3, effective July 1. L. 2012, 1st Ex. Sess.: (2) amended, (HB 12S-1002), ch. 2, p. 2429, � 12, effective June 1. L. 2022: Entire section amended, (SB 22-234), ch. 224, p. 1620, � 9, effective May 25.