Summary of the Basis and Purpose of the Proposed Changes

The Unemployment Insurance Program is proposing new rules to address legislative changes made during the 2012 Colorado General Assembly.

Purpose and Scope (Part I) Amend references to the Unemployment Insurance Program to be the Division.

Definitions (Part I) Amend the definition of the division to conform to statute creating the Division of Unemployment Insurance.

Approved-Training Course (Part II) Amend references to the Unemployment Insurance Program to be the Division and extend the date by which enhanced benefits can be paid to June 30, 2014, to conform to the law.

Employer Premiums (Part VI) Amend rules on the application of delinquent payments to include nonprincipal-related bond payments.

Proposed Changes to the Regulations Concerning Employment Security

1.2 PURPOSE AND SCOPE

1.2.23 Basis and Purpose of the 2011 Amendments. - The rules adopted on November 14, 2011, are effective January 1, 2012 for the purpose of:

.1 Improving communication with claimants in regards to what defines an active work search.

.2 Amending the rules related to actively seeking work to add clear definitions of what represents a work search. Additionally, adding further explanation that a tangible record of contacts is required, what a tangible record is, and the length of time the record must be maintained by a claimant.

.3 Adding new rules allowing the DIVISIONProgram to issue a formal warning, at its discretion, to a claimant who unintentionally fails to meet the work-search requirements.

1.2.24 Basis and Purpose of the 2012 Amendments. - The rules adopted on November 22, 2011, are effective April 1, 2012 for the purpose of:

.1 Amending the rules related to unemployment insurance appeals and redeterminations for clarity.

.2 Amending the rules related to good cause for clarity.

.3 Adopting rules allowing the DIVISION Unemployment Insurance Program to fine an employer who is found to have willfully disregarded the law when misclassifying an employee as an independent contractor.

1.2.26 Basis and Purpose of the May 2012 Amendments. – The rules adopted on April 2, 2012, are effective May 30, 2012 for the purpose of amending the rules to allow the DIVISION Unemployment Insurance Program to take the postmark date into account when determining the timeliness of the receipt of a premium payment and quarterly report.

1.3 DEFINITIONS

As used in these regulations, the following words shall have the following meanings: .2 Division. - The word “division” shall mean the Division of Employment and Training UNEMPLOYMENT INSURANCE of the Department of Labor and Employment of the State of Colorado.

2.6 APPROVED-TRAINING COURSE

2.6.4 Enhanced Unemployment Insurance Compensation Benefits.

.1 Availability of Enhanced Benefits. Enhanced benefit payments will be made only until the total amount available to cover all costs to the state of Colorado under section 903(g) of the federal “Social Security Act” as specified in 8-73-114, C.R.S., are substantially exhausted or June 30, 2012 2014 whichever comes first.

.2 Authorization to Participate. A Colorado local workforce center will determine whether a claimant is authorized to participate and the DIVISION Unemployment Insurance Program will adjust and pay continued unemployment insurance claims to include the enhanced unemployment insurance compensation for authorized participants who are eligible.

.1 The authorization to participate made by workforce centers is not appealable within the DIVISION Unemployment Insurance Program.

.3 Eligibility Determinations. Eligibility determinations for the continuation of enhanced unemployment insurance compensation to the authorized participants will be issued by the DIVISION Unemployment Insurance Program to participants only after a claimant is subsequently deemed ineligible under 8-73-114 and only for reasons other than funds no longer being substantially available under the aforementioned acts. Eligibility determinations will not be issued when funds are no longer substantially available. The eligibility determinations issued by the DIVISION Unemployment Insurance Program are appealable as described in Part XI of the Regulations.

6.1.7 Application of Payments on Delinquent Accounts. Whenever a delinquency exists in the account of an employer and payment is submitted to the division upon said account, the division shall apply such payment in the following order of priority:

.1 Unpaid interest assessments from federal trust fund advances, starting with the earliest quarter in which premiums are due;

.2 UNPAID NONPRINCIPAL-RELATED BOND REPAYMENT ASSESSMENTS, STARTING WITH THE EARLIEST QUARTER IN WHICH PREMIUMS ARE DUE

.2.3 Penalties owed, starting with the earliest quarter in which such penalty was incurred;

.3.4 Interest already charged, commencing with the earliest quarter in which such interest is due;

.4.5 Interest accrued on unpaid premiums as of the date of the payment, commencing with the earliest quarter in which premiums are due;

.5.6 Unpaid premiums or unpaid regular unemployment insurance benefits charged, starting with the earliest quarter in which premiums or reimbursements are due.

.6.7 Unpaid reimbursements for extended benefits charged, starting with the earliest quarter in which amounts are due.