C.R.S.
Section 8-76-116
Power to levy bond assessments
- definition
(1)
As used in this section, “fund” means the unemployment compensation fund created in section 8-77-101 (1).(2)
Upon receiving the certifications specified in section 8-71-103 (2), the division, in addition to the other powers granted by articles 70 to 82 of this title 8, has power to levy certain bond assessments as follows:(a)
All bonds and notes issued pursuant to this section are limited obligations of the division, payable solely from revenues generated through the levy by the authority of a bond assessment against each employer, as defined in section 8-70-113, subject to an experience rating under articles 70 to 82 of this title 8, in an aggregate amount sufficient to satisfy subsection (2)(c) of this section or from revenues generated through the levy by the division of a bond assessment under section 8-71-103 (2)(d); from payments from the division or money applied by the division under section 8-77-101 (1); from proceeds derived from the sale of bonds and notes issued under this section and from the earnings on those proceeds; and from all money and securities in all special accounts created by and under the control of the division under this section. The division shall collect and administer the bond assessment in substantially the same manner as other employer premiums and surcharges required under articles 70 to 82 of this title 8. Subject to articles 70 to 82 of this title 8, the assessment does not apply to the covered employers of the state and local governments, to those nonprofit organizations that are reimbursable employers, or to political subdivisions electing the special rate.(b)
The division may deposit all or any portion of money collected from assessments for principal-related bond repayment costs into the fund. The portion of these revenues deposited into the fund constitutes part of each employer’s unemployment insurance contributions, and the division shall pay amounts from these revenues for the repayment of the principal of bonds issued under this section or section 8-71-103 (2)(d).(c)
The levy must be at a rate or rates that, when applied against the taxable wages of those employers subject to the bond assessment, will produce an amount sufficient to pay all costs associated with or otherwise relating to bonds and notes issued pursuant to this subsection (2), including the principal of, and interest and premium, if any, on, the bonds and notes, the costs of bond issuance and administration, other related fees and costs of the division, and reserves therefor;(d)
Employers shall submit bond assessments described in this subsection (2) associated with nonprincipal-related bond repayment costs in a different manner than the employer’s normal premiums and surcharges paid under articles 70 to 82 of this title 8, as determined by the division, and the assessments are a lien upon the real and personal property of an employer in the manner and to the extent set forth in section 8-79-103. The division shall deposit the assessments into the unemployment bond repayment account created in section 8-77-103.5, and shall, after offsetting the division’s costs for collecting and administering the bond assessments, use this money only for payment from time to time to one or more special accounts created by and under the control of the issuer of the bonds. The issuer of the bonds shall use all money accruing in a special account only to pay nonprincipal-related bond repayment costs described in subsection (2)(c) of this section, and the issuer of the bonds shall pay any money remaining in such an account and not be required to pay nonprincipal-related bond repayment costs to the division for deposit in the fund.(e)
Employers shall submit bond assessments described in this subsection (2) associated with principal-related bond repayment costs in the same manner as the employer’s normal premiums and surcharges paid under articles 70 to 82 of this title 8, and the assessments are a lien upon the real and personal property of an employer in the manner and to the extent set forth in section 8-79-103. The division may deposit all or any portion of the assessments into the fund. The portion of the assessments deposited into the fund constitutes part of each employer’s unemployment insurance contributions. Bond assessments described in this subsection (2) associated with principal-related bond repayment costs are available for payment from time to time to one or more special accounts created by and under the control of the issuer of the bonds. All money accruing in a special account for principal-related bond repayment costs can be used by the issuer of the bonds only to pay the principal costs of the bonds.(3)
The division shall not issue its bonds and notes until the monthly balance in the fund is equal to or less than nine-tenths of one percent of the total wages reported by ratable employers for the calendar year, or the most recent available four consecutive quarters prior to the last computation date, and the governor, the state treasurer, and the executive director of the department of labor and employment have each certified in writing to the division:(a)
That other funding alternatives to the issuance of bonds and notes have been considered and that the issuance of such bonds and notes is the most cost-effective means for the division to maintain adequate balances in the fund or to repay money advanced to the state pursuant to 42 U.S.C. sec. 1321;(b)
The amount of money required to maintain adequate balances in the fund or to repay money advanced to the state pursuant to 42 U.S.C. sec. 1321, or both;(c)
The amount of bonds and notes required for the purposes described in subsection (2) of this section; and(d)
The bond assessment rate or rates, or a formula or other procedure for determining such rate or rates, that will produce an amount sufficient, together with any other money available or expected to be available, to pay all costs associated with or otherwise relating to bonds and notes issued pursuant to subsection (2) of this section, including the principal of, and interest and premium, if any, on, the bonds and notes, the costs of bond issuance and administration, and any other related fees and costs of the division, and reserves therefor.
Source:
Section 8-76-116 — Power to levy bond assessments - definition, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-08.pdf (accessed Oct. 20, 2023).
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