Advances from federal unemployment trust fund.

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(1) The division may apply for advances to the state of Colorado from its account in the federal unemployment trust fund and accept responsibility for repayment of advances in accordance with the conditions specified in Title XII of the "Social Security Act", as amended, in order to secure to this state the advantages available under the federal act.

(2) (a) Advances from the federal unemployment trust fund which are interest-bearing shall have such interest cost together with all associated administrative costs assessed against each employer subject to experience rating. This interest assessment shall not apply to the covered employers of state and local government nor to those nonprofit organizations that are reimbursable. This interest assessment shall not apply to the political subdivisions electing the special rate.

(a.1) The interest cost assessment provided for in paragraph (a) of this subsection (2) shall not apply to any employer whose benefit-charge account balance is zero or to any employer with a positive excess of plus seven percent or more.

  1. Using the most recently available data to the division, the total covered wages of allemployers subject to the interest assessment, as found for the calendar quarter nearest to the quarter in which a trust fund deficit occurred, shall be summed. This sum shall be divided into the amount of interest due on the advance. The percent resulting from this calculation shall contain four significant figures. The percent shall be applied by the employer to the total covered wages reported on the next contribution report received or that contribution report indicated in the notification of the percent sent to the employer by the division. The amount resulting shall be submitted in the same manner as normal contributions, but as a separate payment, to the division. Each interest-bearing advance may be treated separately.

  2. The amounts received as a result of paragraph (b) of this subsection (2) shall besegregated and collected in the federal advance interest repayment fund.

Source: L. 36, 3rd Ex. Sess.: p. 31, § 9. L. 37: p. 1262, § 7. CSA: C. 167A, § 9. L. 41:

p. 780, § 9. L. 51: p. 811, § 8. CRS 53: § 82-7-3. C.R.S. 1963: § 82-7-3. L. 73: p. 966, § 3. L. 82: Entire section amended, p. 239, § 9, effective July 1. L. 84: (2)(a) and (2)(a.1) amended, pp. 324, 330, § 4, effective July 1. L. 85: (2)(a) amended, p. 376, § 6, effective July 1; (2)(a) amended, p. 1359, § 5, effective July 1. L. 2012: (1) amended, (HB 12-1120), ch. 27, p. 106, § 17, effective June 1.

Editor's note: The effective date for amendments to this section by House Bill 12-1120 (chapter 27, Session Laws of Colorado 2012) was changed from August 8, 2012, to June 1, 2012, by House Bill 12S-1002 (First Extraordinary Session, chapter 2, p. 2432, Session Laws of Colorado 2012.)

Cross references: (1) For the federal advance interest repayment fund, see § 8-77-108.

(2) For Title XII of the "Social Security Act", see 42 U.S.C. §§ 1321 to 1324.


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