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HOUSE BILL 981067
BY REPRESENTATIVES Tate and Reeser;
also SENATORS Matsunaka, Hernandez, and Weddig.
CONCERNING THE CONFORMING OF CERTAIN PROVISIONS OF
THE "COLORADO EMPLOYMENT SECURITY ACT" TO THE SCOPE
OF COVERAGE OF PROVISIONS OF FEDERAL LAW.
Be it enacted by the General Assembly of the State
SECTION 1. 870114
(1), Colorado Revised Statutes, is amended to read:
870114. Employing unit
definition. (1) "Employing
unit" means any individual or type of organization, including
any partnership, LIMITED LIABILITY PARTNERSHIP, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY LIMITED PARTNERSHIP, association, trust,
estate, joint stock company, insurance company, or corporation,
whether domestic or foreign, or the receiver, trustee in bankruptcy,
trustee or successor thereof, or legal representative of a deceased
person, who employs one or more individuals performing services
within this state. All individuals performing services within
this state for any employing unit
THAT maintains two or more separate establishments within this
state shall be deemed to be employed by a single employing unit
for all the purposes of articles 70 to 82 of this title. Each
individual employed to perform or to assist in performing the
work of any agent or employee of an employing unit shall be deemed
to be employed by such employing unit for all the purposes of
articles 70 to 82 of this title, whether such individual was hired
or paid directly by such employing unit or by the agent or employee
if the employing unit had actual or constructive knowledge of
the work. Nothing in this section shall be construed to mean
that a common paymaster may be considered a single employing unit
for purposes of considering the services performed by another
employing unit subject to a single or common payroll.
SECTION 2. 870120
(1) (b), Colorado Revised Statutes, is amended to read:
agricultural labor. (1) (b) Such
service is not agricultural labor if performed
January 1, 1995, by an individual
who is an alien admitted to the United States to perform service
in agricultural labor pursuant to sections 214 (c) and 101 (a)
(15) (H) of the federal "Immigration and Nationality Act".
SECTION 3. The
introductory portion to 870136 (1), Colorado Revised
Statutes, is amended to read:
870136. Employment does
not include salespersons. (1) "Employment"
does not include services performed by an individual as a licensed
SALESPERSON or as a direct seller engaged in the trade or business
of selling, or soliciting the sale of, a consumer product in a
home or in an establishment other than a permanent retail establishment
OR AS AN INDIVIDUAL ENGAGED IN THE TRADE OR BUSINESS OF THE DELIVERING
OR DISTRIBUTION OF NEWSPAPERS OR SHOPPING NEWS, INCLUDING ANY
SERVICES DIRECTLY RELATED TO SUCH TRADE OR BUSINESS
SECTION 4. 870140
(1) (a) and the introductory portion to 870140 (1)
(c), Colorado Revised Statutes, are amended, and the said 870140
(1) (c) is further amended BY THE ADDITION OF A NEW SUBPARAGRAPH,
870140. Employment does
not include nonprofit organizations government entities.
(1) For the purposes of sections 870118
and 870119, "employment" does not include
(a) In the employ of a church OR A convention
or association of churches or in the employ of an organization
THAT is operated primarily for religious purposes and which
THAT is operated, supervised, controlled, or principally supported
by a church or convention or association of churches OR IN THE
EMPLOY OF AN ELEMENTARY OR SECONDARY SCHOOL THAT IS OPERATED PRIMARILY
FOR RELIGIOUS PURPOSES; or
(c) In the employ of a governmental entity
referred to in section 870119 if such service is performed
by an individual in the exercise of
SUCH INDIVIDUAL'S duties:
(VI) AS AN ELECTION OFFICIAL OR ELECTION
WORKER IF THE AMOUNT OF REMUNERATION RECEIVED BY THE INDIVIDUAL
DURING THE CALENDAR YEAR FOR SERVICES AS AN ELECTION OFFICIAL
OR ELECTION WORKER IS LESS THAN ONE THOUSAND DOLLARS.
SECTION 5. Article
70 of title 8, Colorado Revised Statutes, is amended BY THE ADDITION
OF A NEW SECTION to read:
870140.8. Employment does
not include owners. "EMPLOYMENT"
DOES NOT INCLUDE SERVICES PERFORMED BY MEMBERS OF A LIMITED LIABILITY
COMPANY, SOLE PROPRIETORS, OR PARTNERS IN A PARTNERSHIP.
SECTION 6. 870142
(1), Colorado Revised Statutes, is amended BY THE ADDITION OF
THE FOLLOWING NEW PARAGRAPHS to read:
870142. Wages remuneration
not included as wages. (1) "Wages"
does not include:
(n) ANY PAYMENT MADE TO OR ON BEHALF OF
AN EMPLOYEE OR SUCH EMPLOYEE'S BENEFICIARY UNDER AN ARRANGEMENT
TO WHICH SECTION 26 U.S.C. SEC. 408 (p) APPLIES, OTHER THAN ANY
ELECTIVE CONTRIBUTIONS UNDER SECTION 26 U.S.C. SEC. 408 (p)(2)(A)(I).
(o) ANY PAYMENT MADE TO OR FOR THE BENEFIT
OF AN EMPLOYEE IF, AT THE TIME OF SUCH PAYMENT, IT IS REASONABLE
TO BELIEVE THAT THE EMPLOYEE WILL BE ABLE TO EXCLUDE SUCH PAYMENT
FROM INCOME PURSUANT TO SECTION 26 U.S.C. SEC. 106 (b).
SECTION 7. 876104
(5) (g), (5) (h), and (5) (i), Colorado Revised Statutes, are
amended, and the said 876104 is further amended BY
THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:
876104. Successor employer.
(5) (g) The transfer of experience with respect
to a segregable unit shall be of no force and effect unless an
application for such transfer, signed by both the predecessor
employer and the successor, is filed with the division. Such
application shall be filed within
SIXTY days after the date of transfer
NOTICE OF EMPLOYER LIABILITY FROM THE DIVISION IS MAILED TO THE
SUCCESSOR EMPLOYER. SUCH NOTICE SHALL CONTAIN INFORMATION PERTAINING
TO SEGREGABLE UNIT TRANSFERS.
any part of the predecessor's trade or business utilizes the services
of ninety percent or more of the total number of employees in
covered employment on the payroll for each of the four pay periods
immediately preceding the transfer to a successor, the entire
separate account including the actual tax, benefit, and payroll
experience of the predecessor shall pass to the successor for
the purpose of the rate of computation of such successor.
division finds that no reasonable business purpose for the transfer
or acquisition exists, other than a more favorable rate of tax,
the experience and reserve account attributable to such unit shall
not be transferred to the successor employer and shall revert
to the predecessor employer.
(7) WHEN ANY PART OF THE PREDECESSOR'S
TRADE OR BUSINESS UTILIZES THE SERVICES OF NINETY PERCENT OR MORE
OF THE TOTAL NUMBER OF EMPLOYEES IN COVERED EMPLOYMENT ON THE
PAYROLL FOR EACH OF THE FOUR PAY PERIODS IMMEDIATELY PRECEDING
THE TRANSFER TO A SUCCESSOR, THE ENTIRE SEPARATE ACCOUNT, INCLUDING
THE ACTUAL TAX, BENEFIT, AND PAYROLL EXPERIENCE OF THE PREDECESSOR,
SHALL PASS TO THE SUCCESSOR FOR THE PURPOSE OF THE RATE OF COMPUTATION
OF SUCH SUCCESSOR.
(8) IF THE DIVISION FINDS THAT NO REASONABLE
BUSINESS PURPOSE FOR THE TRANSFER OR ACQUISITION EXISTS, OTHER
THAN A MORE FAVORABLE RATE OF TAX, THE EXPERIENCE AND RESERVE
ACCOUNT ATTRIBUTABLE TO SUCH UNIT SHALL NOT BE TRANSFERRED TO
THE SUCCESSOR EMPLOYER AND SHALL REVERT TO THE PREDECESSOR EMPLOYER.
SECTION 8. Effective date applicability.
This act shall take effect upon passage and shall apply to acts
committed on or after said date.
SECTION 9. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
Judith M. Rodrigue Patricia K. Dicks
CHIEF CLERK OF THE HOUSE ASSISTANT SECRETARY OF
OF REPRESENTATIVES THE SENATE
GOVERNOR OF THE STATE