House Bill 11-1288, sponsored by State Rep. Larry Liston, was introduced shortly after the state had to borrow more than $531 million from the federal government to maintain a positive Unemployment Insurance Trust Fund balance, as required by federal law. HB 11-1288 reforms the way that businesses pay into the fund and requires the Colorado Department of Labor and Employment to provide annual reports to the General Assembly on the status of the UI Trust.
“This is one of the most important laws for businesses this year, especially small businesses” said Liston, R-Colorado Springs. “This law will help the state maintain a responsible fund so that businesses can avoid seeing large spikes in their unemployment insurance costs.”
Several Colorado job creators are excited about the new law.
Peggy Falcon, office manager of Falcon Industries in La Junta, Colo. said:
“We were small to begin with but now we’re even smaller. In April 2009, we laid off six people. As a result of this, they drew unemployment. My unemployment rating went through the roof. I knew about the fees but in December, when you get the notification for the next year’s rates, I expected something, but I didn’t expect it quite that large. Our bottom line was affected. I’m hoping that we can get to a place where our rating is no longer at a negative and that our rates will adjust.”
Janet Berg, CEO and owner of DeBourgh Manufacturing also in La Junta, added:
“I’m really glad to see that they’re keeping the same rate for the next couple of years and capping the surcharge because that can be really devastating. They can gradually raise the rate and work within our means more gradually.”
House Bill 11-1005, sponsored by State Reps. Jerry Sonnenberg and Jon Becker also goes into effect on Friday. The law repeals HB 10-1195, which suspended a tax exemption on the purchase of essential products that farmers and ranchers use in porduction. HB 10-1195 was one of the “Dirty Dozen” tax increases passed by the Democrats last year.
“This law will help rural Colorado create jobs,” said Sonnenberg, R-Sterling. “I’m happy we were able to give a hand up to this important industry.”
Becker, R-Fort Morgan, added, “The ag tax put an undue burden on our farmers and ranchers during this economic recession. The repeal of the tax will help our state’s economy grow.”
Farmers and ranchers across Colorado hailed the new law.
Prospect Valley farmer Marc Arnush of Marc Arnush Farms, LLC. said:
“Whatever we can do to take the handcuffs off of productivity helps us to create more jobs and opportunities. Simply put, when these taxes came in, we had to tighten our belts. But the only thing that we could cut was payroll—we couldn’t cut the seed or chemicals. The repeal is a big step in the right direction.”
“I’m very proud of the work House Republicans did last session to help get our economy back on track,” said Speaker of the House Frank McNulty, R-Highlands Ranch.
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