Proposed  Amendments  to  the
REGULATIONS  CONCERNING  EMPLOYMENT  SECURITY
Effective  February  1,  2009

STATEMENT  OF  BASIS  AND  PURPOSE

1.	Summary of the basis and purpose for the rule or rule change (state what the rule says or does and explain why the rule change is necessary).

Senate Bill 08-114, Employee Leasing Companies

Senate Bill 08-114, approved May 20, 2008, requires the department to promulgate rules to promote the efficient administration of this legislation.  The bill also provides certification requirements for employee leasing companies (ELCs) with the Colorado Department of Labor and Employment as follows:

•	Within 60 days of the bill becoming law, develop a process for the certification that includes fees not to exceed $500 per year.
•	Each ELC shall file an annual renewal of its certification on or before June 30 of each year.
•	ELCs must pay unemployment insurance (UI) taxes for all employees covered under an ELC contract.
•	Execute and file a surety bond or deposit with the division that could be money or a letter of credit equivalent to fifty percent of the average annual amount of UI tax assessed within the previous calendar year.
•	The executive director is authorized to take disciplinary action against ELCs for not complying with Senate Bill 08-114.
•	Revenues collected for noncompliance are deposited into the Fines Collection Cash Fund.

The amendment to relevant parts of the Regulations Concerning Employment Security (RCES) is necessary to implement the provisions of the new law.

House Bill 07-1285, Unemployment Insurance Determination of Timeliness

House Bill 07-1285, approved May 14, 2007, provides clarification to statutory amendments that extends the time to file an appeal from 15 to 20 calendar days.  The postmark date is no longer considered in determining the timeliness of an appeal filed by mail; timeliness is determined by the date of receipt.  This bill lengthens the time for receipt of such filings and requires the director of the division to adopt rules establishing a procedure for claimants, employers, and interested parties to dispute a determination that a claim, information, or appeal was not filed timely.  In addition, change the timeline for filing a request for new hearing from 15 days to 20 days, and to no longer allow the postmark date to be considered for determining whether a new hearing request is filed in a timely manner, making the timeline and procedure consistent with the timeline and procedure for filing an appeal.

The amendment to relevant parts of the RCES is necessary to implement the provisions of the new law.

Other Housekeeping and Procedure Changes are as Follows:

•	Increase the timeline for filing a continued claim from seven days to 14 days that will increase the efficiency and the effectiveness for filing a continued claim for unemployment insurance benefits.
•	To remove and update obsolete language or terminology from the Regulations Concerning Employment Security.

2.	If emergency, give reasons.

Senate Bill 08-114, House Bill 07-1285, and other updates, or policy changes are not emergency measures.  Not applicable.

3.	Authority for rule.

Authority for the rules is found in the Colorado Revised Statutes (CRS) 8-72-102:
Rules.  (1) The director of the division has the power to adopt, amend, or rescind, in accordance with section 24-4-103, C.R.S., reasonable and necessary rules relating to the administration of the “Colorado Employment Security Act” and governing hearings and proceedings under such act.
(2) The director shall adopt rules establishing a procedure for an individual or employer filing a petition for review pursuant to section 8-74-106 (1) (a) or (1) (b) or an appeal pursuant to section 8-73-107 (1) (c) (I) (A), 8-74-103 (1), 8-74-104 (1), 8-76-113 (1) or (2), or 8-81-101 (4) (c), or an interested party presenting additional information pursuant to section 8-74-102 (1), to contest a determination by the director that the individual, employer, or interested party failed to comply with a deadline set forth in the applicable section by providing proof that the petition for review, appeal, or additional information was timely mailed.

4.	Division, boards, councils, associations and other groups who have reviewed this rule.

•	Colorado AFL-CIO
•	Colorado Association of Commerce and Industry
•	Colorado Association of School Boards
•	Colorado Building and Construction Trades Council
•	Colorado Counties, Inc.
•	Colorado Hospital Association
•	Colorado Municipal League
•	Colorado Retail Council
•	TALX
•	ADP
•	NAPEO