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Bill

SB 25-242

Division Unemployment Insurance Funding Mechanism

2025 Regular Session Introduced by Judy Amabile and 6 co-sponsors

Creates a state unemployment insurance funding mechanism to safeguard the UI trust fund, potentially adjusting employer contributions and transfers to ensure solvency.

Governor Signed
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Bill Summary · SB 25-242

Summary — SB 25-242: Division Unemployment Insurance Funding Mechanism

Status: Governor Signed (signed 2025-04-28)
Introduced: 2025-03-31
Classification: Bill

Sponsors

  • Primary sponsors: Rick Taggart; Judy Amabile; Jeff Bridges; Emily Sirota
  • Cosponsors: S. Woodrow; S. Bird; B. Kirkmeyer

Legislative timeline (selected)

  • 2025-03-31: Introduced in Senate — assigned to Appropriations
  • 2025-04-01 to 04-03: Referred and passed in Senate (Appropriations → Committee of the Whole → Third Reading)
  • 2025-04-03 to 04-10: Referred and passed in House (Appropriations → Committee of the Whole → Second & Third Reading)
  • 2025-04-16: Signed by President of the Senate and Speaker of the House
  • 2025-04-17: Sent to Governor
  • 2025-04-28: Governor signed

Purpose and intent (based on bill title)

The title — "Division Unemployment Insurance Funding Mechanism" — indicates the bill addresses how the state Division of Unemployment Insurance (or equivalent agency) is funded or how the unemployment insurance (UI) trust fund’s solvency is managed. The bill’s intent is likely to establish or modify mechanisms to ensure sufficient funding for benefit payments, improve trust‑fund solvency, clarify assessment or employer contribution rules, or create administrative processes for managing UI finances.

Note: No bill text was provided. The specific statutory changes, dollar amounts, effective dates, and operative mechanics are not available in the materials supplied here. The items below describe commonly used approaches and the likely areas affected; they are not a substitute for the enacted bill language.

Key provisions likely covered (typical components for this subject)

  • Definitions and responsibilities for the state Division/agency that administers UI.
  • Changes to the funding mechanism for the UI trust fund (examples include adjustments to employer contribution rate formulas, reserve ratio triggers, or emergency assessment provisions).
  • Protocols for transfers between state general fund and UI trust fund, or repayment requirements for any advances/loans.
  • Procedures for notifying employers of rate changes and for calculating experience-rated employer contributions.
  • Temporary or ongoing mechanisms to address shortfalls (e.g., supplemental assessments, surtaxes, or use of federal loans).
  • Administrative requirements for reporting, auditing, and transparency of the UI trust fund balance and solvency status.

Who would be affected

  • Employers subject to state UI taxes (potentially seeing changed contribution rates or new assessments).
  • The state Division of Unemployment Insurance (administration and cash‑management procedures).
  • Current and future UI claimants indirectly (through the program’s solvency and benefit payment security).
  • State budget and fiscal officers if transfers or loans from the general fund are authorized.

Procedural and timing aspects

  • The bill has completed the legislative process and was signed by the Governor on April 28, 2025.
  • The bill’s effective date and any implementation timelines are specified in the enrolled bill text (not included here). Many revenue or funding provisions take effect on a specified date or at the start of a calendar/benefit quarter — check the enacted language for exact timing.

Where to find the full text and fiscal details

To understand precisely what SB 25-242 changes (statutory sections amended, exact formulas, dollar amounts, effective dates, and fiscal notes), consult:
- The official state legislature website or bill tracking page for SB 25-242 (enrolled bill / signed version).
- The bill’s fiscal note or appropriation analysis produced by the legislature (for estimated fiscal impact).
- Legislative counsel or the Division of Unemployment Insurance for administrative implementation guidance.

If you would like, I can locate and summarize the enrolled bill text and fiscal note once provided or by checking the state's legislative website.

Compiled from official sources — confirm details with the bill’s official record.

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