SB 25-242

Senate Bill 25-242 in Colorado updates how money is managed and spent by the state's unemployment insurance system. It changes the name of a specific fund and allows more money from that fund to be used for technology and administrative costs related to unemployment benefits. The bill also adjusts how much money goes into different funds, like reducing what goes to the employment support fund while increasing what goes to the unemployment insurance program support fund. This means employers will see changes in their contributions, with less going towards some programs and more towards others that help manage unemployment benefits. Since the status is "signed," this bill has been approved by lawmakers and signed into law by the governor, meaning these changes are now official.

Official Summary

The act updates the funding mechanism for the division of unemployment insurance (division) by changing the name of the "employment and training technology fund" to the "unemployment insurance program support fund" and expanding the use of the fund to include the information technology and administrative costs of the division. Colorado law specifies how the division must disburse money collected from the employer support surcharge. The act modifies the disbursement of this surcharge to: 11% for the employment support fund (decreased from 35%); 54% for the unemployment insurance program support fund (increased from 32%); 20% for the workforce development fund (increased from 14%); and 15% for the benefit recovery fund (decreased from 19%). The act requires all money collected in each fund that is in excess of the maximum balance amounts authorized for the fund to be credited to the unemployment compensation fund. The act ties the adjustments of the fund caps to the change in average weekly earnings instead of to the consumer price index. The act also adjusts the cap for the unemployment insurance program support fund. (Note: This summary applies to this bill as enacted.)

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