TITLE: CONCERNING THE CONFORMING OF CERTAIN PROVISIONS OF THE “COLORADO EMPLOYMENT SECURITY ACT” TO THE SCOPE OF COVERAGE OF PROVISIONS OF FEDERAL LAW.

The provisions of this bill would clarify that an “employing unit” under the “Colorado Employment Security Act” commonly known as unemployment insurance statutory provisions would include limited liability partnerships, limited liability companies, and limited liability limited partnerships. The bill would clarify occupations exempt from unemployment insurance provisions.

The bill also would clarify that the term “wages” does not include amounts paid to federal saving incentive match plans, as provided for in Section 26 U.S.C., for employees retirement plans or to medical savings accounts. It would relocate successor employer provisions to clarify that those provisions apply to all successor companies for the purpose of calculating the rate of unemployment taxes. The bill would become effective upon signature of the Governor, and would apply to acts committed on or after that date.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Unemployment Insurance Trust Fund	($48,600)	($50,500)
State Expenditures General Fund Other Fund
FTE Position Change	None	None
Local Government Impact — None.

The provisions of this bill would decrease the amount of cash fund revenue that is paid into the Unemployment Insurance Trust Fund by an estimated $48,600 in FY 1998/99 and $50,500 in FY 1999/2000. Under current law, Legislative Council Staff estimates, that for FY 1997/98, the Unemployment Insurance Trust Fund will have a fund balance of $593.1 million CF, revenues of $227.6 million CF, and expenditures of $160.9 CF million (plus $4.7 million CF in accrued expenditures). The following provisions would reduce the amount of revenue paid into the Unemployment Insurance Trust Fund:

• exempting alien agricultural workers from taxation for unemployment purposes;

• exempting services performed by certain newspaper distributors and carriers from the definition of employment for unemployment purposes, thereby reducing the number of individuals now covered by unemployment insurance with a corresponding reduction in tax revenues;

• exempting from the definition of employment services performed for elementary and secondary religious schools; and

• exempting from the definition of employment, services performed by election officials and election workers earning less than $1,000 in a calendar.

Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded.

The Colorado Employment Security Act is administered by the Division of Employment and Security, Department of Labor and Employment. The provisions of this bill would not have any significant impact on the Division of Employment and Training.

This fiscal note implies that the provisions of this bill would not have any impact on the spending authority of the Department of Labor and Employment.