Colorado Legislative Council Staff



TABOR Refund Impact

No State General Fund Impact

State Cash Fund Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-510

Rep. Leyba

Sen. Matsunaka


Bill Status:

Fiscal Analyst:

January 16, 1998

House Finance

Will Meyer (866-4976)



Summary of Legislation

            The provisions of this bill would changed the definition of “employer”, for the purposes of unemployment insurance, to mirror the term under corresponding federal statutes. It would specify that, as of January 1, 1999, the term would include any employer that paid wages of $1,500 or more during any calendar quarter in the calendar year or the preceding calendar year or employed at least one individual in employment for some portion of the day on each of 20 days during the calendar year or during the preceding calendar year. The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

            The provisions would apply to employers newly subject to unemployment insurance requirements, on or after January 1, 1999, and would primarily affect small employers who employ workers on an intermittent or part-time basis. It would reduce revenues to the Unemployment Insurance Trust Fund and the benefit payments since certain workers’ services would no longer be covered for unemployment insurance (UI) purposes. The UI program is administered by the Division of Employment and Training, Department of Labor and Employment.


FY 1998/99

FY 1999/2000

State Revenues

General Fund

Unemployment Insurance Trust Fund

Employment Support Fund





State Expenditures

General Fund

Unemployment Insurance Trust Fund

( Reduction - see Expenditure Narrative)

FTE Position Change



Local Government Impact — None.

State Revenues

            Based on ES202 (unemployment insurance) data for the first quarter of 1997, the average contribution rates for relevant employers was computed. It is estimated that the revenues to the Unemployment Insurance Trust Fund would decrease by $33,300 a year and the contributions to the Employment Support Fund would decrease by $900 in FY 1998/99 and $1,350 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).

TABOR Refund Impact

            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.

State Expenditures

            The amount of benefits charges to these employer’s accounts are estimated to be $30,000. The UI claimant master file was tabulated for the specific pool fund account numbers associated with noncharging for under $1,000, the only data available. The breakouts could only tenuously be related to accounts with wages under $1,500, the threshold provided for in this bill. The amount of noncharged benefits (those benefits changed to the pool accounts) has not been determined. However, it is expected that they would be about the same as the imputed benefits charged to employer accounts of $30,000. The provisions in this bill would not affect the workload of the division.

Spending Authority

            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.

Departments Contacted

            Labor and Employment