Colorado Legislative Council Staff

STATE and LOCAL

CONDITIONAL FISCAL NOTE

No State General Fund Impact

State Cash Fund Revenue and Expenditure Impact

Local Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-359

Rep. T. Williams

Sen. Schroeder

Date:

Bill Status:

Fiscal Analyst:

January 29, 1998

House Business Affairs

Will Meyer (866-4976)

 

TITLE:            CONCERNING REQUIREMENTS RELATED TO THE PAYMENT OF UNEMPLOYMENT INSURANCE BENEFITS.



Summary of Legislation


            The provisions of this bill would amend the eligibility requirements for unemployment insurance benefits (UI). UI benefits are administered by the Division of Employment and Training, Department of Labor and Employment. The bill would restrict the eligibility for unemployment insurance benefits by:

 

               requiring a claimant to comply with provisions established by the division for written medical statements issued by a licensed practicing physician on any matters related to health;

               specifying that an employer would not be chargeable for unemployment insurance benefits paid because an employee quits a job for compelling personal reasons not attributable to the employment;

               specifying that an employer would not be chargeable for benefits if an employee does not work due to an authorized and approved leave of absence; and

               requiring that an employee, who is terminated due to a strike or labor dispute, unconditionally offer to return to work and be refused employment by the employer.


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/00

State Revenues

General Fund

Unemployment Insurance Cash Fund



Potential Reduction in UI Tax Revenues

State Expenditures

General Fund

Unemployment Insurance Cash Fund



Potential Reduction in UI Benefits

FTE Position Change

None

None

Local Government Impact Potential Reduction in UI insurance costs.




            The bill would become effective August 15, 1998, 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



State Revenues


            The provisions of this bill would decrease the amount of cash fund revenue that is paid into the Unemployment Insurance Trust Fund. The amount of the decrease is conditional on the number of employees who would have their benefits restricted by the provisions of the bill, and the resultant UI taxes paid by their employers. 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).



State Expenditures


            The provisions of this bill would have a minimal affect on the eligibility for unemployment insurance benefits. To the extent that fewer employees would be eligible to receive UI benefits because of the restrictions on eligibility contained in the bill, the amount of benefits paid out of the UI Fund would be reduced.


            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 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