dIVISION  OF  EMPLOYMENT  AND  TRAINING
STATEMENT  OF  BASIS  AND  PURPOSE
FOR  PROPOSED  PERMaNENT  RULES
Effective  December  30,  2009

1.	Summary of the basis and purpose for the rule or rule change 

The basis and purpose for the proposed rules is to administer changes to the law.  The adoption of the proposed rules is necessary to comply with the law and for the economic welfare of the people of the state of Colorado.

House Bill 09-1363, Unemployment Compensation Enterprise

House Bill 09-1363 allows the Unemployment Insurance (UI) Program to operate as an enterprise as long as the section retains authority to issue revenue bonds and receives less than 10 percent of its total annual revenue from state and local grants.  As an enterprise, revenue collected by the section will not be subject to Section 20 of Article X Taxpayer Bill of Rights (TABOR) of the state constitution.  Employers are required to pay premiums, premium surcharges, and a solvency surcharge, when applicable, instead of taxes, to fund the UI Program.

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

Industrial Claims Appeals Office (ICAPO)

The proposed Appeals regulation changes shall be adopted pursuant to the Colorado Employment Security Act (CESA) as set forth by the Colorado Revised Statutes (CRS) 8-72-102.  The proposed changes will promote greater clarity and consistency in the administration of the appeals process.

The proposed amendments are to comply with the publication, A Guide to Unemployment Insurance Benefit Appeals Principles and Procedures, produced by the U.S. Department of Labor, Manpower Administration, Unemployment Insurance Service, Office of State Operations, and Division of Determinations and Hearings, updated February 1, 2009.  

2.	If emergency, give reasons

Not applicable for this rules promulgation.

3.	Authority for rule

Authority for amendments of the rules is in 8-72-102 CRS.

Rules.  (1) The director of the division has the power to adopt, amend, or rescind, in accordance with section 24-4-103, CRS, reasonable and necessary rules relating to the administration of the Colorado Employment Security Act and governing hearings and proceedings under such act.