Date: 03/10/2009

Final
BILL SUMMARY for SB09-076

HOUSE COMMITTEE ON BUSINESS AFFAIRS AND LABOR

Votes: View--> Action Taken:
Moved to refer Senate Bill 09-076 to the CommitteePASS


11:45 AM -- Senate Bill 09-076

Representative Court, prime sponsor presented Senate Bill 09-076 concerning the appropriation of employer tax surcharge moneys to the employment and training technology fund for use by the Division of Employment and Training within the Department of Labor and Employment.

This bill creates the Employment and Training Technology Fund for automation initiatives at the Department of Labor and Employment. It diverts 20 percent of employer surcharge taxes to the Technology Fund which reduces to 30 percent the amount of taxes deposited into the Unemployment Compensation Trust Fund. The executive director may transfer money to the Trust Fund from the Technology Fund at any time but if the balance of the Trust Fund falls below $25 million, the executive director is required to transfer money to the Trust Fund from the Technology Fund. Moneys in the Technology Fund are subject to annual appropriation by the General Assembly and do not revert to the General Fund or any other fund at the end of any fiscal year. The moneys in the Technology Fund are not subject to the statutory limit on uncommitted reserve funds.

The Technology Fund is proposed as a savings account for future department technology projects. An audit of the department's existing technology resources determined that the department needs $75 million to pay for the replacement of its aging computer systems. The department will not have the authority to spend the money in the fund until it goes through the normal planning and approval process with the Office of Information Technology and the General Assembly approves the spending.

11:51 AM -- Mike Cullen, Director of the Unemployment Insurance Office within the Colorado Department of Labor and Employment, stated that the intent of the bill was to set aside money so that the office can begin to replace its antiquated computer systems. Mr. Cullen noted that the bill does not provide for maintenance, but that the bill gives the department a method of accumulating the money over time to replace the system. Mr. Cullen indicated that there is not currently adequate money within the Trust Fund to replace the systems. Mr. Cullen discussed the system currently in place, which was installed in 1985 and is very difficult to maintain and to change. Once the new system is in place, the department will go through the normal process of asking for money to maintain it.


11:56 PM

Mr. Cullen responded to a question from Representative Stephens about an on-line system for unemployment insurance benefits. Mr. Cullen talked about the internet self service program that is currently being developed. He also responded to additional questions from the committee about past and future computer systems.

11:58 AM -- Dara Hessee, Legislative Liaison for the Governor's Office of Information Technology (OIT), testified in support of the bill.
BILL:SB09-076
TIME: 12:02:21 PM
MOVED:Soper
MOTION:Moved to refer Senate Bill 09-076 to the Committee on Finance. The motion passed 9-1.
SECONDED:Stephens
VOTE
Balmer
Yes
Bradford
Yes
Gagliardi
No
Liston
Excused
Priola
Yes
Ryden
Yes
Scanlan
Yes
Soper
Yes
Stephens
Yes
Casso
Yes
Rice
Yes
Not Final YES: 9 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS



12:04 PM

Adjourned.