SB 25-242: Division Unemployment Insurance Funding Mechanism - Colorado

Rerevised (04/10/2025) → Revised (04/09/2025) · 3 edits

MINOR

The bill was revised to update the versioning information and remove several House sponsors from the sponsorship list. A significant substantive change was added to Section 26, which modifies how the state treasurer credits employer support surcharge rates to the benefit recovery fund, changing the percentage from 19% to 15% and adjusting the fiscal year reference from 2023-24 to 2024-25.

Scope change

The bill's scope regarding employer support surcharge funding was modified to reduce the credit percentage and update the fiscal year reference.

TECHNICAL

Removed the '3rd Reading Unamended' date stamp and the House sponsors Sirota, Taggart, Bird, Woodrow from the sponsorship list.

FISCAL

Added a provision changing the employer support surcharge credit rate from 19% to 15% for the benefit recovery fund, with a $15 million annual cap.

TIMELINE

Modified the fiscal year reference for the surcharge credit calculation from the 2023-24 fiscal year to the 2024-25 fiscal year.

Final Act (04/16/2025) → Rerevised (04/10/2025) · 7 edits

MODERATE

This bill reorganizes how Colorado's unemployment insurance surcharge funds are allocated among different state funds, shifting percentages to prioritize the unemployment insurance program support fund while reducing contributions to the employment support fund. The bill also changes how fund balance caps are adjusted, switching from using the consumer price index to using changes in average weekly earnings.

Scope change

The bill applies to the Division of Unemployment Insurance funding structure and the allocation of employer support surcharge rates to various state funds.

FISCAL

Changed the allocation percentage for the employment support fund from 35% to 11% of employer support surcharge rates.

Increased the allocation percentage for the unemployment insurance program support fund from 32% to 54% of employer support surcharge rates.

Increased the allocation percentage for the workforce development fund from 14% to 20% of employer support surcharge rates.

Decreased the allocation percentage for the benefit recovery fund from 19% to 15% of employer support surcharge rates.

Adjusted the maximum balance cap for the unemployment insurance program support fund from $25 million to $13.2 million.

REQUIREMENT

Changed the method for adjusting fund balance caps from using the consumer price index to using changes in average weekly earnings.

DEFINITION

Renamed the 'employment and training technology fund' to the 'unemployment insurance program support fund' and updated its definition accordingly.

Signed Act (04/28/2025) → Final Act (04/16/2025) · 4 edits

MODERATE

This bill makes technical formatting corrections and clarifies the fiscal year dates for funding adjustments in Colorado's unemployment insurance system. The changes ensure the bill is properly formatted for official signatures and clarify that the state treasurer should credit excess funds to specific unemployment-related funds at the end of the 2023-24 and 2024-25 fiscal years, rather than just 2024-25.

Scope change

The bill's scope remains focused on unemployment insurance funding adjustments, but the timing for when excess funds are credited to various funds has been clarified to include the 2023-24 fiscal year.

TECHNICAL

Added a note indicating the bill is prepared for signatures and directing readers to check legislative status for Governor action.

Corrected formatting errors, typos, and inconsistent capitalization throughout the bill text for official publication.

TIMELINE

Changed the fiscal year reference from only 2024-25 to include both 2023-24 and 2024-25 state fiscal years for when the state treasurer credits excess funds.

FISCAL

Clarified that excess funds collected from the employment and training technology fund should be credited to the unemployment compensation fund at the end of the 2024-25 fiscal year and each fiscal year thereafter.

Reengrossed (04/03/2025) → Signed Act (04/28/2025) · 8 edits · Apr 28, 2025

MODERATE

This bill updates how Colorado funds its unemployment insurance program by changing the percentages of employer surcharge payments allocated to different funds and adjusting the maximum balance limits for those funds. The changes affect how much money goes to the employment support fund, unemployment insurance program support fund, workforce development fund, and benefit recovery fund.

Scope change

The bill's scope remains focused on unemployment insurance funding, but the specific allocation percentages and fund balance thresholds have been modified.

FISCAL

Changed the percentage of employer support surcharge payments allocated to the employment support fund from 35% to 11%.

Increased the percentage allocated to the unemployment insurance program support fund from 32% to 54%.

Increased the percentage allocated to the workforce development fund from 14% to 20%.

Decreased the percentage allocated to the benefit recovery fund from 19% to 15%.

Adjusted the maximum balance threshold for the employment support fund from $7,350,000 to $7,500,000.

Changed the unemployment insurance program support fund maximum balance threshold from $13,200,000 to $25,000,000.

Modified the adjustment mechanism for fund caps from using the consumer price index to using changes in average weekly earnings.

DEFINITION

Updated the definition of the unemployment insurance program support fund to clarify its creation and purpose.

Engrossed (04/02/2025) → Reengrossed (04/03/2025) · 3 edits · Apr 3, 2025

MINOR

The bill was reengrossed with updated formatting and a new bill summary indicating it is now in its 3rd Reading Unamended version. A significant substantive change involves the funding allocation mechanism, where the amount credited to the employment and training technology fund is now adjusted annually based on the Denver-Aurora-Lakewood consumer price index, with a provision to redirect funds to the workforce development fund if the first fund reaches its maximum balance.

Scope change

The bill's scope regarding funding allocation was modified to include an annual adjustment mechanism based on the consumer price index and a conditional redirect to the workforce development fund.

FISCAL

Added a provision to adjust the funding amount annually based on the Denver-Aurora-Lakewood consumer price index.

Added a condition that if the employment and training technology fund reaches its maximum allowable balance, funds will instead be credited to the workforce development fund.

TECHNICAL

Updated the bill status from 'Engrossed' to 'Reengrossed' and added a new bill summary indicating the 3rd Reading Unamended version.

Introduced (03/31/2025) → Engrossed (04/02/2025) · 3 edits · Apr 3, 2025

MINOR

The bill was amended from 'Introduced' to 'Engrossed' status, incorporating all House amendments adopted during second reading. The substantive changes involve renaming the 'employment and training technology fund' to the 'unemployment insurance program support fund' and adjusting the percentage of employer support surcharges credited to this fund from 32.54% to 19.15%, with the remainder going to the benefit recovery fund.

Scope change

The bill's scope remains focused on unemployment insurance funding mechanisms, but the fund name and allocation percentages have been modified.

DEFINITION

Renamed the 'employment and training technology fund' to the 'unemployment insurance program support fund' in the bill's definitions section.

Removed a definition that excluded gifts, grants, or donations from the unemployment compensation fund calculation, as this definition was associated with the old fund name.

FISCAL

Changed the percentage of employer support surcharges credited to the unemployment insurance program support fund from 32.54% to 19.15%, with the remaining amount now directed to the benefit recovery fund.

Division Unemployment Insurance Funding Mechanism

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